Metal Sector Weekly Update - Motilal Oswal

Aluminum and zinc prices increase on supply measures

* Indian Steel: Long product (TMT Mumbai) prices were up ~2% WoW. Sponge iron prices were up ~3% WoW, while domestic scrap prices were up ~1% WoW. Private iron ore mines raised prices by INR150/300 per ton for fines/lumps. Pellet prices were higher. Domestic HRC prices were up ~3% Wo

22/08/2017 4:04:29 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector Update - IIFL

Q1 FY18 turned out to be a disastrous quarter for pharma players marred by key headwinds like GST-related destocking and US price erosion. Sales at key coverage companies fell 7% qoq while profits declined 20% qoq adjusted for one-time Sun Pharma provision. Further management commentary on US business barring Aurobindo, remains negative in light of persistent price pressure. We have lowered est

22/08/2017 3:42:45 PM | Posted in Broking Firm Views - Sector Report read full news
Consumer Goods Sector Update - Kotak Sec

1QFY18 review – Muted quarter, but better than subdued expectations.

1QFY18 was a weak quarter due to GST-led disruption, but we saw more beats than misses due to a subdued set of expectations. Staples’ performance was relatively weak due to GST-led destocking while discretionary companies (ex-alcohol) fared better. RM headwinds, deferment

21/08/2017 5:28:53 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector Update Weak recovery in Indian pharma market - Emkay

Weak recovery in Indian pharma market

* The Indian Pharma Market’s (IPM) growth remained subdued in Jul’17, with a de-growth rate of 8%. We attribute the ongoing slowdown mainly to GST-led destocking with the restocking cycle playing out much slower than expected.

* Regular government intervention, including crackdown on FDCs (Fix

21/08/2017 5:22:16 PM | Posted in Broking Firm Views - Sector Report read full news
Aviation Sector Update Capacity deceleration continues, growth potential intact - ICICI Sec

Capacity deceleration continues, growth potential intact

Reason for report: Monthly update

The July 2017 preliminary monthly traffic data shows passenger growth of ~13% in July. Doubting Thomases would suspect a slowdown in domestic aviation. Our belief rests on the contrary; because the lower traffic growth is only a reflect

21/08/2017 5:04:08 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector Update IPM secondary sales decline in July - Motilal Oswal

IPM secondary sales decline in July

* Indian pharmaceutical market (IPM) exhibited deceleration in growth due to operational issues in software upgradation (billing-related) post GST. IPM declined 2.4% YoY in Jul-17, but grew 3.1% YoY during May-July 2017.

* The July-17 quarter witnessed volume decline of 0.4%, implying significant underperfo

21/08/2017 4:53:54 PM | Posted in Broking Firm Views - Sector Report read full news
Telecom Sector Update Gradual recovery in mobile broadband subs for top-3 operators - ICICI Sec

Gradual recovery in mobile broadband subs for top-3 operators

The regulator released monthly subscriber (subs) and MNP (mobile number portability) data for Jun’17. Industry-active (VLR) subs rose by 3.2mn as RJio’s net add stood at 4.3mn (vs a strong 8.7mn net add in May’17), while net adds for the top-3 operators slowed to 1.3mn. RJi

18/08/2017 4:20:19 PM | Posted in Broking Firm Views - Sector Report read full news
Oil and Gas Sector Update Inventory losses impact OMCs; Mid-stream benefits from volume growth - Sharekhan

Refining (downstream) dented by inventory losses suppressing refining margins; OMCs also lose market share in domestic HSD/MS sales:

Brent oil price declined by around 7% sequentially to $51/bbl in Q1FY2018, resulting in inventory loss of $2-3.4/ bbl to oil marketing companies (OMCs). As a result, Indian Oil (IOCL)/Bharat Petroleum (BPCL)/Hindustan Pe

18/08/2017 11:19:19 AM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector Update Seasonal price correction across most markets - Motilal Oswal

Seasonal price correction across most markets

* July and August 2017 have seen MoM cement price correction across most markets due to seasonal weakness and pass-through of rate differential in taxes following the implementation of Goods and Services Tax (GST).

* Price correction in July/August has been the highest (INR15-20/bag) in Pune/Nagpu

18/08/2017 11:11:02 AM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector Update Draft Pharmaceutical Policy; Devil is in the details - Emkay

Draft Pharmaceutical Policy; Devil is in the details

Key highlights

* The draft of the New Pharma Policy (Policy) shows significant policy changes for the Indian Pharmaceutical sector, but the proposals would need more clarifications (including execution details to assess impact on the sector).

* Some of the key hi

17/08/2017 4:11:47 PM | Posted in Broking Firm Views - Sector Report read full news
Banking sector Update Earnings recover off a low base led by stable provisions - Kotak Sec

No tailwinds as yet, for banks.

Bank earnings grew 22% yoy as provisions were flat yoy and revenues saw support from treasury income. A fresh negative surprise arose from NIM contraction due to shift to MCLR, high NPLs, abundant liquidity and low growth. Slippages on the corporate side were high but no new surprises even as debt-waiver and demonetizati

17/08/2017 3:58:51 PM | Posted in Broking Firm Views - Sector Report read full news
Insurance Sector Update - Kotak Sec

Widening the base.

Recent trends indicate that insurance companies are sustaining growth by adding new policies than mere ticket size increase; mutual funds are spreading themselves wider as well, driving stronger inflows. In 1QFY18, LIC and HDFC Life were among key drivers for industry-wide APE. While strong monthly insurance growth rates appear encou

17/08/2017 3:45:12 PM | Posted in Broking Firm Views - Sector Report read full news
Media and Entertainment Sector Rough Fridays; awaiting repeat content performance of FY16 - Emkay

* Over the last 12-15 months, the Multiplex sector has been struggling to register growth in underlying footfalls due to sub-par performance by Bollywood content at the Box Office. As per our database, net Bollywood Box Office collections have been hovering in the range of Rs27-30bn over the last 5 years, except FY16 when it was at Rs34bn.

* Content quality of movies starring marquee

16/08/2017 5:28:38 PM | Posted in Broking Firm Views - Sector Report read full news
Telecom Sector Update IUC reduction to enable Reliance Jio to intensify competition - Motilal Oswal

IUC reduction to enable RJio to intensify competition

Cut to INR0.10/minute to impact incumbents’ EBITDA by less than 4%

* Media reports indicate that TRAI is set to reduce interconnect usage cost (IUC) from the current INR0.14/minute. Though TRAI’s consultation paper released in the last fiscal year hints at &ls

16/08/2017 4:07:44 PM | Posted in Broking Firm Views - Sector Report read full news
NIFTY MEDIA has immediate support placed at 2700 levels - GEPL

Observation

* NIFTY MEDIA is the one of the underperforming sectoral indices, as it closed down by a massive 7.08% at 2872.80, as against a down move of 3.53% in benchmark NIFTY 50.

* The Sector had faced a strong resistance at Higher level which is placed @ 3200 - 3180 level since last three months and eventually breached the immediate supp

15/08/2017 9:49:13 AM | Posted in Broking Firm Views - Sector Report read full news
NIFTY METAL holds Bullish momentum - GEPL

Observation

* NIFTY METAL has remained an outperforming sector over the last few weeks, with a last week coming up as relative outperformance. It showed a down move by 2.59%, as against a down-move of 3.53% in benchmark NIFTY 50, which is the least amongst all the sectoral indices.

* The Sector is in long term Bullish Trend with the formatio

15/08/2017 9:44:15 AM | Posted in Broking Firm Views - Sector Report read full news
Aviation Sector Update International segment to offer value for domestic carriers - ICICI Sec

International segment to offer value for domestic carriers

Reason for report: Sector update Research Analysts: Ansuman Deb ansuman.deb@icicisecurities.com +91 22 6637 7312 The second edition of Economic Survey (ES) for 2016-17, one of the most important policy guidebook for India, released in August 2017 have given a special emphasis on Indian aviation

15/08/2017 9:27:47 AM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update - Motilal Oswal

BFSI: Size leaders turn growth laggards

Appended below is the performance of BFSI in the June quarter for the five biggies:

* Interestingly, the size of operations contrasts the YoY growth in constant currency. Note that BFSI was the fastest/second fastest growing vertical for the three smaller players (INFO, WPRO and HCLT), and was the key d

11/08/2017 3:39:11 PM | Posted in Broking Firm Views - Sector Report read full news
Technology Sector Update - Tactical margin levers exercised well - Kotak Sec

Tactical margin levers exercised well.

Indian IT reported weak growth. Margins were not as bad considering rupee headwinds and seasonal costs due to extreme cost optimization and increase in utilization (aggregate headcount of Tier-1 IT declined). Earnings were better courtesy Fx gains. Brace for weak growth in FY2018 as drag from legacy business excee

7/08/2017 5:47:39 PM | Posted in Broking Firm Views - Sector Report read full news
NIFTY PHARMA has immediate support placed at 9060 levels - GEPL

Observation

*  NIFTY PHARMA is the most underperforming sectoral indices, as it closed down by a massive 4.30% at 9256.85, as against an up move of 0.52% in benchmark NIFTY 50.

*  The Sector had faced a strong resistance at Higher level which is placed @ 10250 - 10300 level since last three months and eventually breached the immedi

7/08/2017 5:41:01 PM | Posted in Broking Firm Views - Sector Report read full news
Tyre Sector Update - ADD boost for domestic TBR players - ICICI Sec

‘ADD’ boost for domestic TBR players

Reason for report: Sector update

Directorate General of Anti-dumping & Allied Duties (DGAA) has recommended imposition of anti-dumping duty (‘ADD’) of US$245-452/MT on truck and bus radial tyres imported/produced from China, potentially minimising the threat of

7/08/2017 5:32:08 PM | Posted in Broking Firm Views - Sector Report read full news
NIFTY ENERGY sustains at All Time High level - GEPL

Observation

*  NIFTY ENERGY is the most outperforming sectors of last week. It showed an up move by 4.20%, as against a meager up-move of 0.52% in benchmark NIFTY 50.

*  The Sector is in long term Bullish Trend with the formation of Higher Top Higher Bottom sequences in all time frames charts as Daily, Weekly as well as Monthly, as

7/08/2017 5:18:14 PM | Posted in Broking Firm Views - Sector Report read full news
Metals Sector update - Tailwinds for steel and aluminum - Motilal Oswal

Tailwinds for steel and aluminum

SC order unlikely to affect near-term domestic iron ore supply

Indian steel prices inching up, driving margin expansion

Indian steel mills have increased prices of flat products by INR1,500/t from August 1, 2017, after a price hike of ~INR700/t in J

7/08/2017 12:34:06 PM | Posted in Broking Firm Views - Sector Report read full news
Domestic sales of passenger vehicles grew more than 10% in July - SPA Sec

Domestic sales of passenger vehicles grew more than 10% in July, the highest pace in the first seven months of this calendar year. This growth, however, comes after a decline of 11% in June, when companies regulated sales to reduce dealers' loss on pre GST inventory. MSIL, M&M and TAMO registered a growth of 22%, 21% and 10% respectively.

The industry is unlikely to sustain th

4/08/2017 5:11:20 PM | Posted in Broking Firm Views - Sector Report read full news