Metal Sector - The exigencies of reducing costs - ICICI Sec

Reason for report: Aluminium Sector Thematic

We try to understand the comparative domestic and global cost dynamics for the Aluminium industry. What comes across (from a limited review of global majors) are i) Indian majors have been able to reduce costs over the past 6-8 quarters at a fast cliff – in some cases much higher than the global peers

24/06/2016 4:36:44 PM | Posted in Broking Firm Views - Sector Report read full news
India Automobiles: Model Watch - UVs blaze a strong trail in May - RCML

UVs blaze a strong trail in May

New launches propelled growth across UVs even as momentum in scooter sales continued in May’16. 2W sales were up 10% YoY helped by 25%/19% YoY growth in scooters/mopeds. Honda has regained 59% market share in scooters, last seen in Jul’15. UVs grew 36% YoY with six new launches contributing 43% of sales. Nota

23/06/2016 4:43:17 PM | Posted in Broking Firm Views - Sector Report read full news
Agri Input & Chemicals - Agri Digest – Despite delayed start monsoon expected to be normal - Emkay

Agri Digest – Despite delayed start monsoon expected to be normal

* After a shaky start, the south west monsoon has finally made in roads as heavy rains has started to hit most parts of central and west India. During the first fortnight of June, the country received 25% deficient rainfall prompting the farmers to delay sowing. However, peninsular

23/06/2016 4:35:07 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Credit growth dips to 8.7% - RCML

Credit growth dips to 8.7%

 As per RBI data, credit growth declined fortnight-on-fortnight from 9.8% to 8.7% for the fortnight ended 10 June. Food credit, which forms ~1.3% of total credit, declined by 17% YoY. Deposit growth remained steady at 9.6% YoY vs. 9.5% in the previous fortnight. Investment growth declined to 4.7%, while SLR increased to

23/06/2016 3:40:50 PM | Posted in Broking Firm Views - Sector Report read full news
MarketFresh: FMCG Tracker - Input cost inching up; pricing action limited - RCML

Input cost inching up; pricing action limited

The RCML RM index increased sequentially (+1.4% MoM) in May’16, with prices of both crude and agri baskets inching up. We saw fresh pricing action in detergents – Rin (-7.7% MoM), biscuits – Britannia Bourbon (+3.8%) and edible oils – Sundrop (+2.5%), in the backdrop of a weak macro

22/06/2016 3:39:14 PM | Posted in Broking Firm Views - Sector Report read full news
IT Services - Is the threat from GICs real? - Emkay

 The last 3 years have seen a steady increase in GIC (Global In-house centers)/Captive activities, with expansion of existing GIC setups as well as new players setting up own captive centres in India

 Historically, GICs have grown in ‘fits and starts’. Hence, while industry players acknowledge the increasing ‘‘insourcing’ trends, they see it as a cy

21/06/2016 5:07:41 PM | Posted in Broking Firm Views - Sector Report read full news
India Strategy - Ephemeral revival on reflationary steroids - Emkay

Ephemeral revival on reflationary steroids

As per our latest assessment India is headed for a reversal in inflation trajectory, contrasting the backdrop of a still subdued world inflation. This scenario will emanate from a combination of reflationary policies, government interventions in the agri sector, currency depreciation and uptick in global comm

21/06/2016 4:30:38 PM | Posted in Broking Firm Views - Sector Report read full news
Macro Chartbook - India in a nutshell - Religare Capital Markets Ltd

*Consumption demand:

Urban consumption demand in India remains healthy, with most high-frequency indicators growing at a robust pace in the last 3-4 months (i.e. sales of cars/UVs, air passenger traffic, credit card transactions, retail loan offtake, consumer durables production, petrol consumption). Key indicators of rural demand – two-wheeler

18/06/2016 5:29:47 PM | Posted in Broking Firm Views - Sector Report read full news
Telecom Sector - End of CDMA era in India; Bharti Airtel best play - ICICI Sec

As we approach the launch of 4G services by Reliance Jio (RJio), we believe it could likely mark the end of CDMA services. It is critical for RJio as completion of 850MHz spectrum refarming by RCom infers that RJio could use the spectrum (through sharing/trading route) for its 4G-850MHz pan-India launch. RCom has already vacated 850MHz in nine circles. Due to strong data card business, 55% of C

18/06/2016 5:17:50 PM | Posted in Broking Firm Views - Sector Report read full news
BoP Review - Risks emanating from lower capital flows to support Cad - Emkay

CAD unexpectedly came at -0.1% of GDP i.e. USD 0.3bn against our estimate of capital account surplus of USD 2.0bn. The divergence from our estimate is primary due to higher merchandise deficit reported by RBI. The capital account balance also slowed down to 0.6% of GDP i.e. USD 3.5bn thereby resulting in USD 3.3bn of net accretion to forex reserves. Firming up of crude prices could accentuate t

18/06/2016 5:14:32 PM | Posted in Broking Firm Views - Sector Report read full news
Equity market at crossroads - ICICI Securities

* Indian equities – a story of P/E multiple expansion since 2013:

Nifty rally since 2013 has been one of optimism driving P/E multiple expansion from ~11.7x to ~17x currently, while one year forward EPS remained flat at ~ 440 over the last three years. In comparison, 2003 – 07 Bull Run was a combination of earnings growth and P/E multiple

18/06/2016 5:01:00 PM | Posted in Broking Firm Views - Sector Report read full news
Transportation and Logistics Sector Update - ICICI Securities

Latest data on core EXIM trade growth (defined as total exports plus total imports minus petroleum exports, and oil and gold imports in USD) continues to indicate weakness, with core imports remaining soft, while core exports showed marginal improvement post the trough levels in December 2015. The core trade deficit (in USD), which had widened significantly in FY15, has narrowed in last three m

18/06/2016 4:57:21 PM | Posted in Broking Firm Views - Sector Report read full news
Metal Sector Weekly Updated - Motilal Oswal

Domestic long product prices down 3% WoW; Zinc up 4%

* Indian steel market:

Long product (TMT Mumbai) prices were down 3% WoW. Trade segment reported that SAIL has cut long product prices by ~INR500/t in June, amid weak buying activity. Sponge iron and domestic scarp prices were marginally lower WoW. Pellet p

17/06/2016 2:46:24 PM | Posted in Broking Firm Views - Sector Report read full news
Aviation Sector - Flying high amid good times - ICICI Sec

Reason for Report: Sector thematic and initiating coverage

benefit all the incumbent players, particularly on a benign crude price outlook. Our supply-demand model for domestic air traffic implies 14% growth in passengers as evidenced from firm aircraft orders and latest delivery schedules. With yield management becoming the singular strategy lever for

17/06/2016 2:39:50 PM | Posted in Broking Firm Views - Sector Report read full news
Insurance Sector Update - Kotak Securities Ltd

Business bounces back. After a subdued April, yoy APE growth bounced back to 26% for private players (translating to 19% yoy growth FYTD); this was largely led by higher ticket size of the business. LIC reported 22% growth on the back of higher volumes. Equity market inflows to equity mutual funds continue to remain strong; this may be driving growth in ULIPs as

17/06/2016 1:02:07 PM | Posted in Broking Firm Views - Sector Report read full news
Banking Sector - Promoters get legroom on stressed assets as RBI tweaks norms - ICICI Sec

Reason for report: Sector update

The Reserve Bank of India (RBI) has introduced a ‘Scheme for Sustainable Structuring of Stressed Assets’ (SSSA) as an enhancement to its earlier Strategic Debt Restructuring (SDR) mechanism in order to ensure that adequate deep financial restructuring is done to ensure that projects have a chance of sustaine

16/06/2016 6:12:47 PM | Posted in Broking Firm Views - Sector Report read full news
Right time to ‘buy’ the T&D capex story - ICICI Sec

Reason for report: Sector update

Our thesis on continued power T&D capex and SEBs as one of the growth drivers of the T&D equipment business is further corroborated by ground feedback obtained by our Utilities team, which visited seven major SEBs. While the team expects a few resets before growth starts kicking-in for the power sector as a whol

16/06/2016 4:34:45 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - New norms on stressed assets – not a game changer - RCML

New norms on stressed assets – not a game changer

The RBI has issued guidelines on sustainable restructuring of stressed assets, which would be applicable to accounts where projects have commenced operations with more than Rs 5bn debt. Existing debt will be divided into Part A and B.

 

* Part A loans, i.e.

14/06/2016 4:27:55 PM | Posted in Broking Firm Views - Sector Report read full news
Strong AGR market share prints for Bharti Airtel and Idea - ICICI Sec

Reason for report: Q4FY16 revenue market share

Research Analyst: Sanjesh Jain sanjesh.jain@icicisecurities.com +91 22 6637 7153 INDIA In Q4FY16, the top-3 operators’ AGR market share rose to 74.6% (up 220bps YoY) driven by robust incremental AGR market share of 93.7% YoY. Bharti Airtel’s incremental AGR market share (YoY) came in strong at

14/06/2016 3:44:26 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Bank watchlists: A numbers game - RCML

Bank watchlists: A numbers game

Given the wide divergence in asset watchlist calculations, we endeavoured to streamline the lists disclosed by the top 3 banks to derive a more plausible yardstick for asset quality. Baking in our assumptions of the missing components, we arrived at stressed asset figures far in excess of those disclosed, i.e. 35% higher

14/06/2016 3:12:51 PM | Posted in Broking Firm Views - Sector Report read full news
Media Sector - ZEEL slips in Hindi GEC; Regional strong - ICICI Sec

ZEEL slips in Hindi GEC; Regional strong

Reason for report: Sector update Research Analysts: Vikash Mantri vikash.mantri@icicisecurities.com +91 22 6637 7161 Jayant Dongre jayant.dongre@icicisecurities.com +91 22 6637 7339 INDIA In the past few weeks, ZEEL’s Hindi GEC channels (Zee TV and &TV channels) have been losing market share to Colors

14/06/2016 3:04:18 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Painful quarter at net level: Tale of Two halves - Prabhudas

PL banking coverage universe continued to be a story of two halves with retail focus banks continuing to fare well, while corporate banks from both private and PSBs continuing to face head winds led by asset quality and weak loan growth. PPoP growth for our coverage marked slight improvement to ~13% YoY from 10% YoY in Q3FY16, mainly backed by better other income trends and better NII (higher i

14/06/2016 2:25:49 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Pharma continues its down trend with support only around 10300 - GEPL

NIFTY PHARMA    Current Close: 10657.60    Trend : Negative

Observation

* NIFTY PHARMA is one of the underperforming amongst the sectoral indices, as it closed down by 1.39% at 10657.60, as against a 0.62% down-move in benchmark NIFTY 50.

* Sector has been facing a strong resistance of medium ter

14/06/2016 12:32:31 PM | Posted in Broking Firm Views - Sector Report read full news