Oil & Gas Sector - Monthly round up – Dec’16 - Emkay Global

* Crude oil declines:

Brent Crude oil closed lower by 9.8% MoM to $45/bbl for the month of November’16 as doubts emerged on the confirmation of production cut at the month end summit of OPEC. Also increase in US inventory with sluggish product demand and certain geo-political factors contributed to the fall in crude oil prices. Light-Heavy (L-H)

8/12/2016 3:06:19 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Demonetisation starts taking a toll on MFIs - RCML

* ICRA places three MFIs under negative watch:

As per media reports, rating agency ICRA has put three small microfinance institutions (MFI) – Cashpor Micro Credit, Sambandh Finserve Private and S V Creditline – on watch with negative implications. ICRA stated that the rating downgrade follows the likely adverse impact of demonetisation on

7/12/2016 5:38:27 PM | Posted in Broking Firm Views - Sector Report read full news
Financials - Identifying structural winners - Motilal Oswal

Demonetization presents good buying opportunity; Reiterating our top picks

Demonetization – Benefits to accrue in the medium term

Following the Indian government’s demonetization announcement on 8th November 2016, NBFC sector stocks have corrected in the range of 10-30%. While demonetization could

7/12/2016 3:22:25 PM | Posted in Broking Firm Views - Sector Report read full news
Dealers Check: Demand Affected by Demonetization; Recovery Imminent - Reliance Sec

An abrupt decline in trade segment’s sales volume (down by ~20-50% m-o-m) in the backdrop of demonetization of Rs500 & Rs1,000 notes led to postponement of demand as less availability of cash in circulation brought the construction activities to standstill. However, the prices appear to be resilient with moderate correction in some of pockets, as all-India average cement prices correc

7/12/2016 3:14:42 PM | Posted in Broking Firm Views - Sector Report read full news
India Telecom - Industry growth flagging; Idea losing ground - RCML

Our Q2 revenue market share (RMS) analysis for the telecom sector reveals: (1) hyper competition amid weak growth across circles (4.3% YoY), (2) Bharti executing well with widespread RMS gains, and (3) Idea’s tariff hike strategy backfiring into RMS losses. While the recent correction in telco stocks factors in elevated competitive pressures, recovery in industry growth to 8-10% is the ke

7/12/2016 3:04:08 PM | Posted in Broking Firm Views - Sector Report read full news
Seasonal Impact; Demonetization an Added Woe - Reliance Sec

The auto sales were expected to remain subdued in Nov’16 due to seasonality considering decline in retail demand post festive season. However, the demonetization of high-value currencies and limited availability of newly introduced notes has affected the retail demand to a considerable extent.

 

* CV Segment –

Takes

7/12/2016 2:24:44 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Oct’16 non-food credit growth declines to 6.7% - RCML

Non-food credit growth declined to 6.7% YoY in Oct’16 (vs. 10.8% in Sep’16) as growth across segments and especially services moderated. Industry credit stayed weak, declining by 1.7%. The services/agriculture sectors grew at 9.3%/13% vs. 18.4%/15.9% in Sep’16. In addition, retail credit increased at a slower pace of 17% vs. 19.7% in the preceding month. Infrastructure loans d

5/12/2016 3:40:32 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - Robust natural gas consumption trend continues - RCML

* Robust gas consumption:

India’s gas consumption sustained at 140mmscmd in Oct’16. Decline in consumption from power and fertiliser sectors was made up by some improvement in other industrials. Consumption continues to be aided by LNG imports, surging to 2.3mmt (+18.6% YoY, ~51% of total net consumption). Key drivers are a) Dabhol LNG term

5/12/2016 3:38:08 PM | Posted in Broking Firm Views - Sector Report read full news
India Pharmaceuticals - Demonetisation – November tastes the bitter pill! - RCML

Our channel checks indicate that November sales for the Indian Pharma Market (IPM) have been subdued due to demonetisation. An AIOCD study also expects sales for the month to be 8-10% lower vs. the normal run-rate. As per the study, chronic sales have been resilient post demonetisation with prebuying of medicines due to acceptance of Rs 500 and Rs 1,000 denomination notes. However, the acute se

5/12/2016 3:34:13 PM | Posted in Broking Firm Views - Sector Report read full news
Metallica - Metal Prices on the move!! - Emkay

Key observations

* Steel prices across the globe surged further in November’16 led by cost push. China meanwhile achieved its monthly capacity cut target. Steel raw material prices too continued to rally.

* Hard coking coal added another 19.5% on a MoM basis to reach to US$309/tn. CIS (FoB Black Sea) HRC prices rose 13.5% MoM to US$482

2/12/2016 2:42:31 PM | Posted in Broking Firm Views - Sector Report read full news
Paper Sector Writes Bullishness, Stocks follow the Lead - Dynamic Levels

The paper industry of the country witnessed huge surge on Wednesday. By the end of the day, the sector closed up by 2.59 per cent.

 

Raw Material

Pulp is one of the major raw materials used by the paper mill. This is where it gets interesting. Paper pulp price has dropped since June 2015. At the moment it is trading at its 7 ye

1/12/2016 3:20:04 PM | Posted in Broking Firm Views - Sector Report read full news
MarketFresh: FMCG Tracker - No material pricing action; promotions still elevated - RCML

The RCML RM index inched up 1.4% MoM in Oct’16, as lower prices of crude-related commodities were offset by inflation in the agri basket. There was no material pricing action across categories though promotional intensity remained elevated. Overall, we remain cautious on the consumer sector given that topline growth is likely to remain tepid in FY17 and margins are at peak levels. ITC is

1/12/2016 2:35:07 PM | Posted in Broking Firm Views - Sector Report read full news
Logistics Sector - Getting Future Prepared - Kotak Sec

Growth of the Logistics business is directly correlated with economic activity. Empirical evidence suggests that the Indian logistics industry grows at 1.5-2x the GDP. With the Indian economy estimated to grow at 6.5% to 7% in FY17 (revised consensus estimates) and at 7.5% to 8% in FY18 (RBI estimates), we believe that India's Logistics sector is poised for a healthy growth in medium term.

1/12/2016 2:26:13 PM | Posted in Broking Firm Views - Sector Report read full news
Building Materials - Could be too early to buy into the correction! - ICICI Sec

The building material space has seen significant re-rating over the last six years, initially led by a) impressive volume growth (FY11-FY15) aided by strong demand levers; b) superior operating performance (FY16-H1FY17), despite volume pressures, led by lower input costs and increasing premiumisation; and c) consequent debt reduction and rising return ratios. However , with the recent demonetis

30/11/2016 2:37:23 PM | Posted in Broking Firm Views - Sector Report read full news
Media Sector - Tariff order – Swords drawn; long drawn battle ahead - ICICI Sec

The comments from industry participants on the new tariff order clearly indicate negative stance by broadcasting networks and few DTH operators. Commentaries by broadcasters like Star, Sony and Zee have highlighted the tariff order is against the provisions of The Copyright Act, the regulator has not heeded to industry feedback, and calculations have not been supported by research/statistics, a

30/11/2016 2:32:27 PM | Posted in Broking Firm Views - Sector Report read full news
Metal Sector - Tactical beneficiaries – part II; throwing caution to the wind - ICICI Sec

The mad scramble of commodities continues globally with LME (Zinc/ Copper/ Aluminium) rising 18%/15%/5% over the past fortnight. The weakness witnessed in Chinese commodity markets have also course corrected and the two most tracked futures (Rebar and Iron ore) have increased 15% and 25% respectively over the past week. All this is happening as dollar index (DXY) tests highs last seen in 2003.

28/11/2016 4:33:31 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Auto has immediate support placed at 8450 levels - GEPL

NIFTY AUTO   Current Close: 8780.40   Trend : Negative

Observation

* NIFTY AUTO is one of the underperforming sectoral indices, as it closed down by around 2.26% at 8780.40, as against an up move of 0.50% in benchmark NIFTY 50.

* The Sector had created an all time high @ 10466.90 in the month of Sep 2016

28/11/2016 4:21:43 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Metal holds Bullish momentum - GEPL

NIFTY METAL   Current Close: 2757.45    Trend : Positive

Observation

* NIFTY METAL is one of the most outperforming sector amongst all the indices last week. It moved up a good 5.01%, as against an up move of 0.50% in benchmark NIFTY 50.

* In the last to last week, the Sector created a Fresh 52 Week

28/11/2016 4:17:43 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Focus shifts to the demonetisation risk cascade - RCML

Our interactions with financial sector stakeholders suggest that demonetisation will have a three-stage impact on NBFCs – the first will be immediate but shortlived due to a transitory cash crunch, while the second will be due to a general economic slowdown and bleeding of the parallel economy as shadow borrowers lose their competitive edge – this second-order impact is of most conc

28/11/2016 2:24:37 PM | Posted in Broking Firm Views - Sector Report read full news
Metal Stocks Trade Higher, Extend gain, Nalco soars 7% - Dynamic Levels

Metal stocks were trading higher in the afternoon trade on Friday on firm global cues. Amidst optimism that demand will accelerate, sentiments improved after a report displayed orders for business equipment hiked in the US, strengthening the outlook for the metal sector. Among the ten components in the BSE Metal index, Nalco was trading close to 7 per cent up at Rs.56.55, followed by JSW Steel

26/11/2016 5:55:40 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Deposit growth rises to 11.7% – much more to come - RCML

As per RBI data, deposit growth for the fortnight ended 11 November increased to 11.7% YoY – note that the data includes deposits collected by banks for only two days post-demonetisation. As per the RBI, banks have received deposits worth Rs 5.1tn up to 18 November (~Rs 6n to date as per media reports). Credit growth weakened further to 7.9% while investment growth declined to 8.1% YoY. W

26/11/2016 3:36:38 PM | Posted in Broking Firm Views - Sector Report read full news
India Automobiles - Uncertainty looms, expect pain till Q4FY17: FADA - RCML

We hosted a conference call with the Federation of Automobile Dealers Association (FADA) to discuss the impact of demonetisation on India’s automobile industry. John K Paul, President, and Nikunj Sanghi, Director – International Affairs & Global Relations, represented FADA. The following are key takeaways from the interaction:

 

Boo

26/11/2016 3:18:29 PM | Posted in Broking Firm Views - Sector Report read full news
Pharmaceuticals - Back to struggling days - Emkay

India Pharma Market- Monthly Checkup

* Indian Pharma Market (IPM) subsided in October’16 with overall growth rate at 5.9%, well below the past two quarters’ monthly average growth of over 10%. Growth in Oct’16 is the lowest in the past three years, ie since September 2013. 

* There’s clearly been a slowdown in the s

26/11/2016 12:17:15 PM | Posted in Broking Firm Views - Sector Report read full news
Indian Equities Sector Wrap - Adviser India Pvt. Ltd

Morningstar India is pleased to publish the inaugural edition of the Indian Equities Sector Wrap, an annual publication that aims to showcase insights and observations on the Indian Equity Mutual Funds. Please find a brief synopsis of the report below:

•    Despite witnessing a lower level of flows during the first half of 2014, the year ended on a positive note wi

26/11/2016 12:10:44 PM | Posted in Broking Firm Views - Sector Report read full news
IT Index gives Breakout, Turns out to be the Best Bets - Dynamic Levels

IT stocks had been all time favorite investment area for many investors for a long time at it had the potential to yield high returns.

In February 2009, the Index was trading at approximately 2000 level. Till December 2010, it had rallied almost 275 per cent to trade at 7500 level. In 2011, the Index corrected and slipped by almost 33 per cent to 5000 level. Then again, in March 2015,

25/11/2016 5:24:15 PM | Posted in Broking Firm Views - Sector Report read full news