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India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
India Equity Strategy: Pockets of value in uncertain times [Abhay Laijawala]
Following a sharp sell-off in equity markets on macroeconomic concerns, we
polled our analyst team to identify five stocks (not restricted only to our current
top picks) which satisfied following conditions: (i) which have fallen sharply over
past one month and are currently pricing in unwarranted stress (ii) where we see
reasonable visibility over medium-term catalysts to trigger outperformance and (iii)
where the risk reward appears favorable in a scenario which does not factor in a
recession in US/Europe. The following stocks passed the tests: Axis Bank, ICICI
Bank, JSPL, TCS and Tata Steel.
Tata Power: Delhi joins tariff hike bandwagon [Abhishek Puri]
Despite heightened media attention, it took 5 months after the new chairperson
was appointed at the Delhi regulatory board to approve a tariff hike in the capital
city of Delhi for the distribution companies NDPL (Tata Power’s 51% subs) and
BRPL/BYPL (Reliance Infra’s subs). While we are still to understand the exact
quantum of tariff increase as media report suggests 22%, but tariff order says
13%, we do have a sigh of relief as Delhi distribution circle- which could have
been projected as the circle benefitting out of virtuous cycle of efficiency, was on
a brink of collapse, thanks to the regulatory impasse for more than 5 years.
Banks: Power tariff increases – positive for PFC & REC [Manish Shukla]
The Delhi regulatory board has approved a tariff hike in the city of Delhi for the
distribution companies. While the tariff order pegs the increase at 13%, media
reports suggest an increase of 22%. (Please refer to “Tata Power: Delhi joins tariff
hike bandwagon”). This is 9th Indian State in current financial year to have taken
significant tariff increases. Such tariff hikes combined with other proposed reforms
– pass through of cost increases, upfront payment of subsidies – augur well for
the state utilities and should help in lowering their losses. These are very positive
developments for PFC and REC as it lowers the chances of potential NPLs.
Banks: RBI issues draft guidelines for new bank licences [Manish Shukla]
RBI on Monday issued draft guidelines for new bank licences in the private sector
and has invited comments on the same till October 31, 2011. The final guidelines
will be issued after receiving such comments and after certain vital amendments
are made to Banking Regulation Act. – Eligibility: Entities / groups in the pvt.
sector, with diversified ownership and having successful track record of at least 10
years will be eligible. Entities / groups having significant (10% or more) income or
assets or both from real estate construction and / or broking activities individually
or taken together in the last three years will not be eligible.
Fixed Income Special Report: The Greek Proposal Updated [Mohit Kumar]
We analyse the Greek exchange proposal in light of the additional details provided
on Friday 26 August. The exchange is likely to be completed in early October and
is proposed to be purely voluntary in nature. Bonds maturing till 2020 are eligible
for the exchange process.
US Daily Economic Notes: At the moment, output is running near +2%
[Joseph LaVorgna]
July data suggest the economy is on track to grow around 2%. Personal income
rose 0.3% in the month after rising a revised +0.2% in June from +0.1%
previously. Wages and salaries which account for more than half of total income
increased a modest 0.4%, consistent with what we have been seeing in employee
tax receipts—they are growing in the low single digits.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
India Equity Strategy: Pockets of value in uncertain times [Abhay Laijawala]
Following a sharp sell-off in equity markets on macroeconomic concerns, we
polled our analyst team to identify five stocks (not restricted only to our current
top picks) which satisfied following conditions: (i) which have fallen sharply over
past one month and are currently pricing in unwarranted stress (ii) where we see
reasonable visibility over medium-term catalysts to trigger outperformance and (iii)
where the risk reward appears favorable in a scenario which does not factor in a
recession in US/Europe. The following stocks passed the tests: Axis Bank, ICICI
Bank, JSPL, TCS and Tata Steel.
Tata Power: Delhi joins tariff hike bandwagon [Abhishek Puri]
Despite heightened media attention, it took 5 months after the new chairperson
was appointed at the Delhi regulatory board to approve a tariff hike in the capital
city of Delhi for the distribution companies NDPL (Tata Power’s 51% subs) and
BRPL/BYPL (Reliance Infra’s subs). While we are still to understand the exact
quantum of tariff increase as media report suggests 22%, but tariff order says
13%, we do have a sigh of relief as Delhi distribution circle- which could have
been projected as the circle benefitting out of virtuous cycle of efficiency, was on
a brink of collapse, thanks to the regulatory impasse for more than 5 years.
Banks: Power tariff increases – positive for PFC & REC [Manish Shukla]
The Delhi regulatory board has approved a tariff hike in the city of Delhi for the
distribution companies. While the tariff order pegs the increase at 13%, media
reports suggest an increase of 22%. (Please refer to “Tata Power: Delhi joins tariff
hike bandwagon”). This is 9th Indian State in current financial year to have taken
significant tariff increases. Such tariff hikes combined with other proposed reforms
– pass through of cost increases, upfront payment of subsidies – augur well for
the state utilities and should help in lowering their losses. These are very positive
developments for PFC and REC as it lowers the chances of potential NPLs.
Banks: RBI issues draft guidelines for new bank licences [Manish Shukla]
RBI on Monday issued draft guidelines for new bank licences in the private sector
and has invited comments on the same till October 31, 2011. The final guidelines
will be issued after receiving such comments and after certain vital amendments
are made to Banking Regulation Act. – Eligibility: Entities / groups in the pvt.
sector, with diversified ownership and having successful track record of at least 10
years will be eligible. Entities / groups having significant (10% or more) income or
assets or both from real estate construction and / or broking activities individually
or taken together in the last three years will not be eligible.
Fixed Income Special Report: The Greek Proposal Updated [Mohit Kumar]
We analyse the Greek exchange proposal in light of the additional details provided
on Friday 26 August. The exchange is likely to be completed in early October and
is proposed to be purely voluntary in nature. Bonds maturing till 2020 are eligible
for the exchange process.
US Daily Economic Notes: At the moment, output is running near +2%
[Joseph LaVorgna]
July data suggest the economy is on track to grow around 2%. Personal income
rose 0.3% in the month after rising a revised +0.2% in June from +0.1%
previously. Wages and salaries which account for more than half of total income
increased a modest 0.4%, consistent with what we have been seeing in employee
tax receipts—they are growing in the low single digits.
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