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India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
It was the Japanese quake that dictated
trading trends across the globe on Friday and
India was no different.
Sensex closed and Nifty closed down ~1.7%
doen on weekly basis. On sectotal front only
oil& gas and Realty closed positive ~1% and
all other sector closed in negative territory.
893 shares advanced 1985 shares declined
and 482 shares remained unchanged on BSE.
Market Outloo k
Market to open weak on reaction to
Earthquake & tsunami in Japan as in last
2days more information flow has been there
and 3nuclear plant meltdown is giving a
rethink in global power strategy. Yen
strengthened to 16years on expectation of
higher repatriation of local currency to rebuild
the country, this Japanese crisis can revive
yen carry trade also. Japan may take much
longer time to recover compared with 1995
Kobe earthquake.
MENA (Middle East & North African) crisis
coupled with sovereign debt crisis in the euro
zone and trade deficit in China are host geopolitical
risk along with Indian inflation and
this week we have advance tax numbers flow
and RBI credit policy meet on March 17 where
25basis point hike is expected as baby steps.
Our economist reports-
Indian IIP numbers where positive as these
numbers as it has come on larger base,
deepest fall in capital goods in almost two
decades. Capital goods production in Jan '11
declined 18.6%, the sharpest fall since Apr
'92. Excluding capital goods, the IIP grew
9.1% in Jan '11. Capital goods items such as
shipbuilding and repair (-55.5%), material
handling equipment (-44.7%) and insulated
cables/wires (-41.6%) sharply declined.
NEWS:
GAIL India, the state-owned gas transporter
and distributor, plans to borrow $225 million
(around Rs.1,000 crore) through the external
commercial borrowings (ECB) route to fund
expansion plans. Positive for GAIL.
Mahindra & Mahindra will begin work on its Rs
250-crore greenfield tractor plant at
Zaheerabad, 100 km from here, on March 23.
The new facility would have a capacity of
80,000 units a year and would be ready in 16
months, but declined to give further details.
Positive for M&M.
Canara Bank is in advanced stages of getting
banking licences to operate in Qatar, Johannes
burg and Frankfurt as it looks to ramp up its
overseas business. Positive for Canara Bank
TVS Motors is planning to re-enter the electric
scooters market in the next financial year. The
company has already developed an electric
variant of Scooty Teenz, along with another
new product for the domestic market. Positive
for TVS motors.
Hindustan Petroleum Corporation Ltd (HPCL) is
poised to merge Prize Petroleum Co Ltd (PPCL)
with itself after attempts to woo buyers for a
50% stake in its oil exploration firm did not
yield favourable response.
Lupin is looking to launch 10 products in the
Japanese market through its arm Kyowa
Pharma in the next fiscal as it eyes to cash in
on the recent Indo-Japan trade pact.Lupin
expects revenues from the Japanese market to
grow by 20-25 % in the next fiscal. Positive
for Lupin.
Arvind Ltd plans to use real estate proceeds to
cut debt Arvind plans to lower its currwent
Rs.2000 Cr. Debt by repaying long -term
borrowings through cash genearted from its
real estate business. Positive for Arvind
Ltd.
Allcargo Logistics is understood to be looking at
acquiring warehousing, third party logistics
(3PL) companies, container freight stations
(CFSs) and tactical acquisitions in the less tana-
container load (LCL) businesses. Positive for
Allcargo Logistics.
Japan Trembles, World Stable…
Stock impacts
Positive – Tyre Companies, Tata Motors, Suzlon, RIL, Essar oil
Negative – Maruti, Areva T&D and APIL
Past few weeks number of factors have disturbed the sentiments of the investors leading to the
volatility in the markets. Not only domestic but the overall global sentiments have also been very
mixed. Japan earthquake and Tsunami, again has may be for the short term added to the woes.
This event has directly indirectly hit various segments, especially commodities like oil as refineries
are shut, ports are closed, power shortages, natural gas prices have risen, metals impacted and
nuclear plant meltdown.
Japan earthquake and Tsunami has caused lot of destruction and devastation and the immediate
impact has been that most of the global markets including our markets had a knee jerk reaction
which corrected immediately but then recovered after. To quantify the destruction will take time
and we need to wait and watch as the outlook still seems to be unclear on that front.
Tough the first cut analyses suggest that…
Yen which strengthened to 16years on expectation of higher repatriation of local currency to rebuild
the country, as the money may flow in Japan in terms of aids and rebuilding of the destructed
infrastructure. This Japanese crisis can revive yen carry trade also. Japan may take much longer
time to recover compared with 1995 Kobe earthquake.
Particularly the companies who major importers of Japan will have a major impact like on stock
specific front Strong Yen is Negative for MARUTI while TATAMOTORS could benefit as many Japan
car manufacturer would take time to restart the operation. Stocks like AREVAT&D and APIL which
deals nuclear plant could face selling as sentiment dampens for Nuclear energy, on the other hand
Suzlon may be positive as alternative energy could gain importance. RELIANCE & ESSAROIL
benefit from high Diesel needs from Japan to resume Power supply as few refineries have been
shutdown which would improve GRM.
Rubber prices have also tumbled on trade suspensions especially for the car makers on raising
concerns on demand slump so Indian rubber companies like Apollo Tyres, CEAT, JK Tyres should
benefit.
The Japan economy may take longer for recovery but the impact on India would be minimum as
only ~2% of India’s total exports are from Japan. These natural disasters are temporary set backs
for the equity and the countries therefore any correction in these kind of markets one should
accumulate slowly for long term investments.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
It was the Japanese quake that dictated
trading trends across the globe on Friday and
India was no different.
Sensex closed and Nifty closed down ~1.7%
doen on weekly basis. On sectotal front only
oil& gas and Realty closed positive ~1% and
all other sector closed in negative territory.
893 shares advanced 1985 shares declined
and 482 shares remained unchanged on BSE.
Market Outloo k
Market to open weak on reaction to
Earthquake & tsunami in Japan as in last
2days more information flow has been there
and 3nuclear plant meltdown is giving a
rethink in global power strategy. Yen
strengthened to 16years on expectation of
higher repatriation of local currency to rebuild
the country, this Japanese crisis can revive
yen carry trade also. Japan may take much
longer time to recover compared with 1995
Kobe earthquake.
MENA (Middle East & North African) crisis
coupled with sovereign debt crisis in the euro
zone and trade deficit in China are host geopolitical
risk along with Indian inflation and
this week we have advance tax numbers flow
and RBI credit policy meet on March 17 where
25basis point hike is expected as baby steps.
Our economist reports-
Indian IIP numbers where positive as these
numbers as it has come on larger base,
deepest fall in capital goods in almost two
decades. Capital goods production in Jan '11
declined 18.6%, the sharpest fall since Apr
'92. Excluding capital goods, the IIP grew
9.1% in Jan '11. Capital goods items such as
shipbuilding and repair (-55.5%), material
handling equipment (-44.7%) and insulated
cables/wires (-41.6%) sharply declined.
NEWS:
GAIL India, the state-owned gas transporter
and distributor, plans to borrow $225 million
(around Rs.1,000 crore) through the external
commercial borrowings (ECB) route to fund
expansion plans. Positive for GAIL.
Mahindra & Mahindra will begin work on its Rs
250-crore greenfield tractor plant at
Zaheerabad, 100 km from here, on March 23.
The new facility would have a capacity of
80,000 units a year and would be ready in 16
months, but declined to give further details.
Positive for M&M.
Canara Bank is in advanced stages of getting
banking licences to operate in Qatar, Johannes
burg and Frankfurt as it looks to ramp up its
overseas business. Positive for Canara Bank
TVS Motors is planning to re-enter the electric
scooters market in the next financial year. The
company has already developed an electric
variant of Scooty Teenz, along with another
new product for the domestic market. Positive
for TVS motors.
Hindustan Petroleum Corporation Ltd (HPCL) is
poised to merge Prize Petroleum Co Ltd (PPCL)
with itself after attempts to woo buyers for a
50% stake in its oil exploration firm did not
yield favourable response.
Lupin is looking to launch 10 products in the
Japanese market through its arm Kyowa
Pharma in the next fiscal as it eyes to cash in
on the recent Indo-Japan trade pact.Lupin
expects revenues from the Japanese market to
grow by 20-25 % in the next fiscal. Positive
for Lupin.
Arvind Ltd plans to use real estate proceeds to
cut debt Arvind plans to lower its currwent
Rs.2000 Cr. Debt by repaying long -term
borrowings through cash genearted from its
real estate business. Positive for Arvind
Ltd.
Allcargo Logistics is understood to be looking at
acquiring warehousing, third party logistics
(3PL) companies, container freight stations
(CFSs) and tactical acquisitions in the less tana-
container load (LCL) businesses. Positive for
Allcargo Logistics.
Japan Trembles, World Stable…
Stock impacts
Positive – Tyre Companies, Tata Motors, Suzlon, RIL, Essar oil
Negative – Maruti, Areva T&D and APIL
Past few weeks number of factors have disturbed the sentiments of the investors leading to the
volatility in the markets. Not only domestic but the overall global sentiments have also been very
mixed. Japan earthquake and Tsunami, again has may be for the short term added to the woes.
This event has directly indirectly hit various segments, especially commodities like oil as refineries
are shut, ports are closed, power shortages, natural gas prices have risen, metals impacted and
nuclear plant meltdown.
Japan earthquake and Tsunami has caused lot of destruction and devastation and the immediate
impact has been that most of the global markets including our markets had a knee jerk reaction
which corrected immediately but then recovered after. To quantify the destruction will take time
and we need to wait and watch as the outlook still seems to be unclear on that front.
Tough the first cut analyses suggest that…
Yen which strengthened to 16years on expectation of higher repatriation of local currency to rebuild
the country, as the money may flow in Japan in terms of aids and rebuilding of the destructed
infrastructure. This Japanese crisis can revive yen carry trade also. Japan may take much longer
time to recover compared with 1995 Kobe earthquake.
Particularly the companies who major importers of Japan will have a major impact like on stock
specific front Strong Yen is Negative for MARUTI while TATAMOTORS could benefit as many Japan
car manufacturer would take time to restart the operation. Stocks like AREVAT&D and APIL which
deals nuclear plant could face selling as sentiment dampens for Nuclear energy, on the other hand
Suzlon may be positive as alternative energy could gain importance. RELIANCE & ESSAROIL
benefit from high Diesel needs from Japan to resume Power supply as few refineries have been
shutdown which would improve GRM.
Rubber prices have also tumbled on trade suspensions especially for the car makers on raising
concerns on demand slump so Indian rubber companies like Apollo Tyres, CEAT, JK Tyres should
benefit.
The Japan economy may take longer for recovery but the impact on India would be minimum as
only ~2% of India’s total exports are from Japan. These natural disasters are temporary set backs
for the equity and the countries therefore any correction in these kind of markets one should
accumulate slowly for long term investments.
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