Technology - BFSI: Size leaders turn growth laggards - 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),

4/08/2017 4:34:57 PM | Posted in Broking Firm Views - Sector Report read full news
Mired in mining mess: SC delivers knockout blow on Odisha mining - Emkay

Key highlights of Supreme Court verdict:

*  Pending show-cause notices issued by the Odisha Government should be decided by December 31, 2017 (if not already decided) after hearing the concerned offenders.

*  The Apex Court would like to hear JSPL, Sarda Mines Pvt Ltd, among others on the applications filed by them. For this purpos

3/08/2017 5:43:14 PM | Posted in Broking Firm Views - Sector Report read full news
Metallica Sector Update China continues to surprise in ferrous space - Emkay

Key observations

*  In Ferrous space, steel (CIS), iron ore and coking coal rose by 13% MoM, 10% MoM and 20% MoM, respectively. China HR sheet also rallied 7% MoM to US$626/tn on the back of better-than-expected traction in metal demand in China.

*  Coking coal continued its rally for the second consecutive month to US$180/tn (+20%

3/08/2017 12:31:12 PM | Posted in Broking Firm Views - Sector Report read full news
Retail Sector Update Uptick in growth; Importance of channel mix evident - Emkay

Key takeaways from FY17 annual reports

*  Indian Retail sector’s growth trajectory has remained intact despite macroeconomic challenges. Industry pegs retail sector size at Rs3.6tn and is expected to grow by 14%  Overall growth across our coverage improved in FY17 despite the adverse impact of demonetization (from 4.5% in FY16 to 11.9% i

3/08/2017 12:24:28 PM | Posted in Broking Firm Views - Sector Report read full news
NBFC Sector Update SBIN cuts SA deposits rate, other banks likely to follow suit - Motilal Oswal

SBIN cuts SA deposits rate, other banks likely to follow suit

Expect reduction in cost of deposits by ~15bp and higher PBT benefit

n The State Bank of India (SBIN) has lowered the rate on savings deposits up to INR10m by 50bp to 3.5% from the existing rate of 4%. According to management, savings accounts with balances of IN

1/08/2017 12:11:15 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector Update Generation remained flat as demand soften due to onset of monsoon - Emkay

Generation remained flat as demand soften due to onset of monsoon

* Generation remained flat in June 2017 at -0.1% YoY (excl. renewables) due to fall in overall demand from the onset of monsoon. Hydro segment witnessed 10.9% YoY rise in generation which was offset by 2.2% YoY decline in generation across the Coal segment.

* The overall i

31/07/2017 5:35:42 PM | Posted in Broking Firm Views - Sector Report read full news
NIFTY PHARMA has immediate support placed at 9380 levels - GEPL

Observation

* NIFTY PHARMA is one of the underperforming sectoral indices, as it closed down by a massive 3.78% at 9672.60, as against an up move of 1% 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 immediate trend line

31/07/2017 5:21:27 PM | Posted in Broking Firm Views - Sector Report read full news
NIFTY PSU Bank gave Positive breakout @ 3585 level - GEPL

Observation

* NIFTY PSU BANK is one of the outperforming sectors of last week. It showed an up move by 2.31%, as against an up move of 1% 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 can be seen in t

31/07/2017 5:17:20 PM | Posted in Broking Firm Views - Sector Report read full news
Power demand: improved by 3% yoy in June 2017, North sees weakness with 0.7% yoy growth - Kotak Sec

* Power demand: improved by 3% yoy in June 2017, North sees weakness with 0.7% yoy growth

All-India power demand grew by 3% yoy growth in June 2017, not materially different from the 2.7% yoy growth clocked in FY2017. Although the same should be seen in the context of an healthy base year growth (6.6.% yoy in June 2016). Uttar Pradesh accounting for 1

29/07/2017 4:13:25 PM | Posted in Broking Firm Views - Sector Report read full news
Consumer Goods Sector Update Month in review - June 2017 - Kotak Sec

Month in review – June 2017: GST-led price cuts getting rolled out.

KIE consumer universe underperformed the broader markets over the past month delivering flattish returns. RM trends have remained deflationary (similar trend over past few months) across most inputs (barring tea and paint inputs). We saw little incremental activity in June due t

25/07/2017 3:48:32 PM | Posted in Broking Firm Views - Sector Report read full news
IT Setor Update Earnings commentary, a likely reflection of wisdom - Equirus Sec

TCS/Infosys reported earnings late last week. Though reported $/CC growth was respectable in the current environment, vertical specific commentary was circumspect, especially related to BFSI/Retail vertical and large deals. ISG also reported deal activity last week and we thought it could be worthwhile to compare and contrast key takeaways with earnings commentary. As a general observation trad

24/07/2017 5:28:26 PM | Posted in Broking Firm Views - Sector Report read full news
Reliance Jio`s big-bang VoLTE feature phone launch to expand its target market - Motilal Oswal

RJio’s big-bang VoLTE feature phone launch to expand its target market

Device offerings and ARPU-accretive plans indicate limited market disruption

* In line with its previous strategy, RJio has launched VoLTE feature phone with ARPUaccretive plan at INR153 (unlimited voice and data). This, in our view, may expand the

24/07/2017 5:12:52 PM | Posted in Broking Firm Views - Sector Report read full news
NIFTY MEDIA holds strong Bullish momentum - GEPL

Observation

* NIFTY MEDIA is the best performing sectors amongst all the indices last week. It showed a good up move of 3.04%, as against an up move of 0.29% in benchmark NIFTY 50.

* Since last one month, the Sector formed a base at around 2900 level which is a 50% retracement level of the previous up move from 2847 (Dec 2016) to 3297 (Apr 20

24/07/2017 4:47:53 PM | Posted in Broking Firm Views - Sector Report read full news
Capital Goods Sector Update Period of volume decline over; expect 10% CAGR over FY17-20 - Motilal Oswal

Diesel Gensets – Firing up

Period of volume decline over; expect 10% CAGR over FY17-20

Diesel Generator (DG) industry to grow at 10% CAGR over FY17-20: After a subdued FY13-17, when industry volumes declined at a compounded annual rate of 5% (primarily due to a sharp fall in sales for telecom towers), we expect the ind

19/07/2017 1:53:16 PM | Posted in Broking Firm Views - Sector Report read full news
Banking Sector Update Gap between assets and liabilities at the lowest point in the past decade - Kotak Sec

One more risk fading away.

In FY2017 the gap between retirement assets and liabilities were at the lowest point in the past decade for public banks. Retirement costs contribute ~20% to overall staff costs. The sharp decline in interest rates only increased the present value of future liabilities by 12% yoy; employee payouts declining yoy, the decline

19/07/2017 1:36:38 PM | Posted in Broking Firm Views - Sector Report read full news
Capital Goods Sector Update Compelling growth story; technology leaders to gain foothold - ICICI Sec

Compelling growth story; technology leaders to gain foothold 

Reason for report: Sector initiation

Given the low penetration, increasing affordability and better availability of electricity, we believe the domestic room AC market is poised to witness secular growth over the next five years. Relatively higher energy consu

19/07/2017 1:31:33 PM | Posted in Broking Firm Views - Sector Report read full news
NIFTY ENERGY holds strong Bullish momentum - GEPL

Observation

* NIFTY ENERGY is one of the best performing sectors amongst all the indices last week. It showed a good up move of 3.22%, as against an up move of 2.28% in benchmark NIFTY 50.

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

18/07/2017 3:45:51 PM | Posted in Broking Firm Views - Sector Report read full news
Banking Sector Update Where is capital consumption in public banks - Kotak Sec

Where is capital consumption in public banks?

Overall tier-1 ratio improved by ~30bps yoy to 9.7% but core tier-1 ratio was broadly flat yoy at 8.8% of loans. Interestingly, despite NPLs increasing 55% since FY2015, RWA growth was muted at 2%. Public banks received a capital infusion of US$~4bn in FY2017 mostly from the Government. They need ~US$ 7bn t

18/07/2017 3:33:24 PM | Posted in Broking Firm Views - Sector Report read full news
Oil and Gas Sector update Petroleum consumption grows 0.4% in June after growing 3-5% in April and May - Kotak Sec

Slow and unsteady.

Petroleum consumption grew modestly by 0.4% yoy in June despite 6.5-12% growth in diesel and gasoline from a lower base, reflecting decline in off-take of industrial fuels, presumably impacted before the implementation of GST. 1QFY18 growth at 3% was better than 3% decline post-demonetization in 4QFY17; however, it still remains sub

18/07/2017 11:26:29 AM | Posted in Broking Firm Views - Sector Report read full news
Metals and Mining Sector Update 1QFY18 - a tad weak due to lower prices, one-offs - Kotak Sec

1QFY18—a tad weak due to lower prices, one-offs.

Domestic metal names will report sequential decline in earnings led by lower prices, increased input costs and lower volumes (a few cases of outages). We expect earnings of steel companies to decline sequentially due to lower steel realization (-3-4% qoq) and use of high cost coal inventory. Earnin

18/07/2017 10:23:11 AM | Posted in Broking Firm Views - Sector Report read full news
Banking and NBFC Sector Update IDFC-Shriram merger: An uphill task - Emkay

IDFC-Shriram merger: An uphill task

Last week, the IDFC and Shriram groups’ management announced their intent to merge the two groups to create a large financial services conglomerate. While both the groups have complementarity in terms of the current nature of their businesses, we observe that the proposed merger scheme is highly complex and gai

18/07/2017 9:42:26 AM | Posted in Broking Firm Views - Sector Report read full news
Real Estate Sector Update - Equirus Sec

Co-working space leasing in India to touch 10 million sq ft by 2020: CBRE

Co-Working space leasing in India is expected to touch 10 million after by 2020 with the concept of shared office space fast catching up in India. According to CBRE, demand more than tripled in 2016 to touch 0.7 million sq. ft. as compared to 2014. Further this year the leasing i

17/07/2017 5:06:10 PM | Posted in Broking Firm Views - Sector Report read full news