30 August 2012

Information Technology - Mid-size: Chipping ahead of leaders; sector update:: Edelweiss


Specialized offering, holistic client mining reward mid-caps richly
During the past couple of years, when some of the large cap players like Infosys and Wipro underperformed due to massive restructuring, client specific issues (BT in the telecom vertical) and the enduring global downturn, mid-cap and small cap players saw significant growth opportunities. In fact, such an outperformance by mid-cap players was ingrained in few internal as well as external factors; on the internal aspect, a clear approach to specialization and holistic client mining was the key driver while externally, division of large deals into smaller ones coupled with new business coming in from first time outsourcers (with small ticket sizes) pepped up the growth.
Most of the mid-cap companies have positioned themselves as specialized players in a vertical or a practice which enabled them to post a robust growth. Hexaware and NIIT Tech. made large inroads, riding on their travel and transportation expertise while MindTree and KPIT Cummins positioned themselves as specialised manufacturing and automobile players respectively. Moreover, the holistic approach to have separate teams for hunting and farming clients has reaped significant benefits post 2010 as seen by the massive revenue growth in top 10 clients for Hexaware, Geometric, Polaris and MindTree. Sustained addition to non-top 10 clients (under penetrated category) further creamed the scenario.

Daring Derivatives [For August 30, 2012] Sharekhan


Daring Derivatives
[For August 30, 2012]
 Summary of Contents
 
DARING DERIVATIVES
Derivatives Summary


Chances of US Fed QE3 dims for investors and economists:: ET

Investors and economists have become far more sceptical over the past two weeks that the U.S. Federal Reserve will announce a new round of bond purchases at its September meeting, according to Reuters polls over the last week. While hardly portraying a surging economy, U.S. economic data over the last two weeks have, for the most part, come in a little better than forecast.

All eyes on services sector in GDP data tomorrow ::Business Standard,

Services need to grow 7.8 per cent in order for India's GDP to expand by 5.3 per cent in the first quarter of this fiscal, the same as the previous quarter, assuming agriculture production rises by up to one per cent as most economists predict. Industrial output figures are already out with factory production falling 0.1 per cent in the first quarter. The GDP figures for the first quarter of 2012-13 would be out tomorrow.

Angel Broking - Derivatives Report - 30.08.2012

FII & DII trading activity across NSE and BSE 30-08-2012


Buy
SellNet
ValueValueValue
FII5167.922861.82
2306.1
DII1836.461508.35328.11

 


-- 

MosT -View-Point:Aug 30


View-Point:
- With negative cues emanating from overseas peers, native markets will trade under pressure for the day. Volatility could be rife as we tread through the August series derivatives expiry day.

-

Buy ICICI Bank (ICICIBC IN)
- After its period of consolidation (FY08-10), the bank is back into the growth mode.
- They have been posting back-to-back above estimate nos. with Q1 PAT rising 36%YoY to Rs. 18.2bn (est 17bn).
- Performance is robust on back of strong loan growth; stable margins and better asset quality, helping ROA to improve. (expect 1.7% by FY14).
- Asset quality will remain strong given the benign asset quality in retail segment, changing loan portfolio mix (unsecured retail forms only 1.3% v/s 9%+ in FY08), and better risk management practices.
- Overall, we expect FY12-14 NII CAGR of ~22%, compared with a loan CAGR ~17% and model margin improvement of 27bps for FY13 and stable for FY14.
- Stock looks attractively priced at 1.4x FY14 PBV. Our Top Pick in sector, maintain buy with SOTP target of Rs. 1,230

News:
-YC Deveshwar - chairman of ITC, has sold shares worth about Rs. 470mn through open market. In a regulatory filing on BSE, ITC said that Deveshwar has sold about 1.79mn shares on 23rd and 24th of August.
- The Rs. 11bn Agra inner circle road project, awarded to JP group company - Jaypee Infratech three years ago, has been shelved by the state govt. citing that the land-for-development model is not working out
- As per media reports, BT Group Plc. may sell about 5% stake in Tech Mahindra in a deal that is expected to raise $100mn. BT currently holds 23% in the tech firm. The deal is expected to go through at Rs. 735-790 a share, about 5-9% discount from its previous day's closing price of Rs 837.
- As per media reports, Lanco Infratech is engaged in talks with PE firms Bain Capital and Kohlberg Kravis Roberts (KKR) to sell stake in its power business. Company is known to have put 30% stake on block, in some of its projects.
- Fitch has downgraded enterprise communications service provider Tulip Telecom from junk to default status following its failure to redeem its $97mn outstanding Foreign Currency Convertible Bonds (FCCBs) by 26th August.
- Orchid Chemicals & Pharmaceuticals has sold its penicillin and penem API business to the US-based Hospira for $200mn.

Derivatives:
- Nifty Futures OI decreased by 0.3m shs to 32.4m shs. Nifty Aug futures settled at a premium of 9 as against a premium of 11 in the previous session.
- Auto Stocks: Bajaj-Auto (CMP 1625, down 4%) has witnessed delivery of 0.5m shs (10d-avg 0.1m shs) and Hero MotoCo (CMP 1849, down 3%) has witnessed delivery of 0.4m shs (10d-avg 0.2m shs) indicating negative biasness.
- In Aug series for Nifty, Highest Call OI is at 5400 strike with 10m shs up 1.5m shs which has changed from 5500 (OI at 8.8m shs down 0.3m shs) and highest Put OI is at 5000 strike with 9.4m shs down 0.1m shs which has changed from 5300 (OI at 7.7m shs down 1.9m shs).

Key Statistics:
Market                       Sensex 17,491 down 141 & Nifty 5,288 down 47
Advance:Decline     1060 : 1720
F&O data   (29th)    Index Rs. (68)mn & Stock Rs (5.79)bn
Cash (prov 29th)     FIIs Rs 1.43bn & DIIs Rs. (2.4)bn
Cash          (28th)    FIIs Rs. 1.69bn & MFs Rs. (2.24)bn
Others                       Brent Oil $112.54 v 112.34 & INR 55.62 v 55.67

Angel Broking - Technical Report - 30.08.2012

Angel Broking - Market Summary - 30.08.2012

Angel Broking - Market Outlook - 30.08.2012

Derivatives Info Kit [For August 30, 2012] Sharekhan

Derivatives Info Kit
[For August 30, 2012]
 Summary of Contents
 
 
DERIVATIVES INFO KIT

Thematic report - IF I WERE - IDFC Sec


If I Were

·         FMCG companies cannot succeed in services!! The servicing model requires a different orientation and companies have lost (HUL), are losing (Dabur, Marico, HUL, ITC) and will continue to lose until they EXIT these businesses!!
·         ITC is not and will not be relevant in FMCG in spite of Rs45bn invested UNLESS it gets its focus right and leverages on its inherent strength… FOODS, FOODS, FOODS!!!
·         PRINT is a business that is structurally de-rating.  It will not generate shareholder returns. Indian companies should DE-LIST!!
·         It is time for PANTALOON to stop thinking like WALMART and think more like SHOPPERS STOP!!!

Edelweiss Technical Reflection (ETR) - August 30, 2012-EDEL


Edelweiss Technical Reflection (ETR)
    Ahead of the August series derivatives settlement day, Indian markets were seen under pressure with the benchmark index dropping below the crucial 5300 mark in its fourth straight losing session. The session was particularly bearish for the blue chips index with selling persistent throughout the day after the short-term momentum had rolled down the day earlier. Short-term support of 5220 (20-day SMA) has been violated and we now expect a test of the next support of 5260 (50-day EMA) in the immediate near term. Volumes were relatively lower but the overall breadth continues to remain weak, underlining the bearish structure. Volatility index, also known as ‘fear index’ has started to tick up signaling downside risks to the market. We expect Nifty to drop down to the 5260 area where multiple supports from 50-day EMA and the ‘bullish gap’ area should help a minor rebound rally, however the short-term down trend has been established. Any break of supports can extend the slide towards 5220, closing the bullish gap.

    Today’s session was broadly negative with big cuts seen in Realty (-3%), Metals (-1.8%) and Auto (-1.37%) indices. Traders continue to seek for safety in the defensive FMCG (+0.57%) and Healthcare (+0.27%) sectors. For the first time in many sessions, the broader markets fared relatively better than the blue-chips with Mid-cap index losing 0.54% and the Small-cap index losing 0.85% indicating and oversold state and perhaps a technical relief.

    Bullish Setups: INFO, TCS, HUVR, ITC, RBXY, APNT, DRRD
    Bearish Setups: CNXBANK, HDIL, HNDL, ONGC, JPA, STLT

Stocks in News - August 30, 2012-EDEL


Stocks in News
    BT to sell 5% of TechM for about $100 million (ET)
    Wipro to work on Obama’s education reforms (ET)
    Essar Steel bags new orders worth INR 4-bn (ET)
    US firm Hospira to buy several assets from Orchid in $ 200-m deal (ET)
    WPP moves NY Court, seeks dismissal of NDTV suit (ET)
    Fitch downgrades Tulip from junk to default (ET)
    Oilmin cancels Italian co Eni’s exploration deal in Rajasthan (ET)

How Long Will Indian Equities Stay Hot? WSJ


Despite many reasons for foreign investors to avoid India, they're pouring money in. What gives?
Overseas institutional investors bought $3 billion of Indian equities in the last two months. That compares with an outflow of $358 million last year.

BSE, Bulk deals, 30/8/2012

Deal DateScrip CodeCompanyClient NameDeal Type *QuantityPrice **
30/8/2012531519Ankush FinstockJAGRUT SAIDAS VANJARES4220714.38
30/8/2012531519Ankush FinstockANKIT PANKAJBHAI SHAHS5101614.38
30/8/2012524590Dinesh AllorgaSAFIYUDDIN NURMIYA SAIYADS2300030.25
30/8/2012524590Dinesh AllorgaGIRISH VEDPRAKASH AGRAWALS1804230.25
30/8/2012531252Farry IndsSATYANARAYAN RAMCHANDRA AGARWALB2500027.82
30/8/2012531252Farry IndsMARGDARSHAN TRADING COMPANY PRIVATE LIMITEDS2434726.99
30/8/2012531252Farry IndsPARKES MULTI TRADE PRIVATE LIMITEDS2327127.09
30/8/2012531252Farry IndsSTYLECHECK GARMENTS PRIVATE LIMITEDS4436628.67
30/8/2012530945Gangotri IronBHAVIN INDRAJITBHAI PARIKHB13500040.11
30/8/2012531419Goplee InfoVINODKUMAR TULSIANIS600004.78
30/8/2012526598Gujarat Narm FlyPATEL RAMJIBHAI PURSHOTTAMBHAI HUFS5000039.00
30/8/2012524314Gujarat TerceSHAMROCK CHEMIE PRIVATE LIMITEDS5000011.35
30/8/2012505982Hinduja Found-$AMAS INDIA INV MAURITIUS LTDS26000053.37
30/8/2012500189Hinduja VentINVEST INDIA MAURITIUS LTDS190000356.13
30/8/2012524103Linear PolyDAYARAM DEVSHI BHANUSHALIS57838.10
30/8/2012511734Pasupati FinPRIYA SHRIVASTAVAB10000015.00
30/8/2012511734Pasupati FinCHARISHMA ENGINEERING LIMITEDS10000015.00
30/8/2012511433SDFC FinanceHARSHADKUMAR THAKORDAS LAKKADS5900020.25
30/8/2012511754Shalibhadra FinSHAH ANILBHAI NAGINLALB3820053.15
30/8/2012511754Shalibhadra FinSANJAY BABULAL PANDYAB5816053.15
30/8/2012511754Shalibhadra FinSANJAY BABULAL PANDYAS5816053.15
30/8/2012511754Shalibhadra FinHINABEN ROMESHBHAI SHAHS5685753.15
30/8/2012531695SHREYCHEMHIMANSHU ASHOKBHAI BHARADHVAJB3750068.00
30/8/2012505729Singer IndiaSINGER (INDIA) B.V.S23000056.87
30/8/2012530867Suryanagri FinMASS INVESTMENTS & FINANCIAL SERVICES PVT LTDB1700049.15
30/8/2012530867Suryanagri FinBRIJ KISHOR GUPTAB2000049.15
30/8/2012530867Suryanagri FinSK KHEMKAS2100049.15
30/8/2012532755Tech MahindraBLACKROCK INDIA FUND (MAURITIUS) LIMITEDB2073775.00
30/8/2012532755Tech MahindraCOPTHALL MAURITIUS INVESTMENT LIMITEDB700000775.00
30/8/2012532755Tech MahindraMERRILL LYNCH INVESTMENT MANAGERS LTD A/C MERRILL LYNCH INDIA EQUB285131775.00
30/8/2012532755Tech MahindraNORGES BANK A/C GOVERNMENT PETROLEUM FUNDB252586775.00
30/8/2012532755Tech MahindraTHE MASTER TRUST BANK OF JAPAN LTD AS TRUSTEE OF MERRILL LYNCH INB128062775.00
30/8/2012532755Tech MahindraKUWAIT INVESTMENT AUTH FD 22B89148775.00
30/8/2012532755Tech MahindraRELIANCE LIFE INSURANCE CO LTDB86000775.00
30/8/2012532755Tech MahindraBRITISH TELECOMMUNICATIONS PLCS5655000777.89
30/8/2012526441Vision TechSRINIVAS KARROTHIB2588308.88
* B - Buy, S - Sell
** = Weighted Average Trade Price / Trade Price

NSE, Bulk deals, 30-Aug-2012

DateSymbolSecurity NameClient NameBuy / SellQuantity TradedTrade Price /
Wght. Avg.
Price
Remarks
30-Aug-2012ALOKTEXTAlok Industries LimitedBARCLAYS CAPITAL MAURITIUS LIMITEDSELL45,00,00011.53-
30-Aug-2012EDUCOMPEducomp Solutions LimitedPACE STOCK BROKING SERVICES PRIVATE LIMITEDBUY2,74,079138.78-
30-Aug-2012EDUCOMPEducomp Solutions LimitedPACE STOCK BROKING SERVICES PRIVATE LIMITEDSELL6,41,868139.43-
30-Aug-2012HINDUJAFOHinduja Foundries LimitedAMAS INDIA INVESTMENTS MAURITIUS LTDSELL2,63,07653.00-
30-Aug-2012HINDUJAVENHinduja Ventures LimitedINVEST INDIA MAURITIUS LIMITEDSELL1,93,147357.55-
30-Aug-2012IFCIIFCI Ltd.ADROIT SHARE & STOCK BROKER PVT. LTD.BUY41,68,15426.97-
30-Aug-2012IFCIIFCI Ltd.ADROIT SHARE & STOCK BROKER PVT. LTD.SELL40,16,15426.72-
30-Aug-2012IVRCLINFRAIVRCL LimitedGOLDMAN SACHS INVESTMENTS MAURITIUS I LTDSELL13,45,40837.54-
30-Aug-2012MTNLMaha Tel Nigam Ltd.ANS PVT. LTD.BUY60,00,00044.24-
30-Aug-2012MTNLMaha Tel Nigam Ltd.ANS PVT. LTD.SELL57,83,33644.13-
30-Aug-2012MTNLMaha Tel Nigam Ltd.ANURAG S SABOOBUY42,83,23744.23-
30-Aug-2012MTNLMaha Tel Nigam Ltd.ANURAG S SABOOSELL35,86,25944.02-
30-Aug-2012MTNLMaha Tel Nigam Ltd.CROSSEAS CAPITAL SERVICES PVT. LTD.BUY25,29,42440.80-
30-Aug-2012MTNLMaha Tel Nigam Ltd.CROSSEAS CAPITAL SERVICES PVT. LTD.SELL25,29,44040.34-
30-Aug-2012MTNLMaha Tel Nigam Ltd.GOLDEN GOENKA FINCORP LIMITEDBUY40,00,00044.49-
30-Aug-2012MTNLMaha Tel Nigam Ltd.GOLDEN GOENKA FINCORP LIMITEDSELL40,00,00043.96-
30-Aug-2012MTNLMaha Tel Nigam Ltd.GOLDMAN SACHS AND COMPANYBUY31,00,00035.97-
30-Aug-2012MTNLMaha Tel Nigam Ltd.JM FINANCIAL SERVICES PRIVATE LIMITEDBUY5,04,00144.82-
30-Aug-2012MTNLMaha Tel Nigam Ltd.JM FINANCIAL SERVICES PRIVATE LIMITEDSELL32,80,00138.05-
30-Aug-2012MTNLMaha Tel Nigam Ltd.KALASH SHARES & SECURITIES PRIVATE LIMITEDBUY21,16,09339.20-
30-Aug-2012MTNLMaha Tel Nigam Ltd.KALASH SHARES & SECURITIES PRIVATE LIMITEDSELL19,76,48040.33-
30-Aug-2012MTNLMaha Tel Nigam Ltd.KHANDWALA TRADELINK COBUY25,89,19744.21-
30-Aug-2012MTNLMaha Tel Nigam Ltd.KHANDWALA TRADELINK COSELL25,91,19739.22-
30-Aug-2012MTNLMaha Tel Nigam Ltd.MACQUARIE BANK LIMITED A/C DRSELL20,21,90438.16-
30-Aug-2012MTNLMaha Tel Nigam Ltd.NIKHIL SECURITIES LIMITEDBUY17,93,53338.85-
30-Aug-2012MTNLMaha Tel Nigam Ltd.NIKHIL SECURITIES LIMITEDSELL17,93,53338.85-
30-Aug-2012MTNLMaha Tel Nigam Ltd.PASHUPATI CAPITAL SERVICES PVT. LTD.BUY42,79,22637.63-
30-Aug-2012MTNLMaha Tel Nigam Ltd.PASHUPATI CAPITAL SERVICES PVT. LTD.SELL32,78,82939.63-
30-Aug-2012MTNLMaha Tel Nigam Ltd.QUANT BROKING PRIVATE LIMITEDBUY17,71,40244.40-
30-Aug-2012MTNLMaha Tel Nigam Ltd.QUANT BROKING PRIVATE LIMITEDSELL16,91,40238.23-
30-Aug-2012MTNLMaha Tel Nigam Ltd.RAJESH BAHETIBUY13,02,47944.62-
30-Aug-2012MTNLMaha Tel Nigam Ltd.RAJESH BAHETISELL15,64,43244.13-
30-Aug-2012MTNLMaha Tel Nigam Ltd.SMC GLOBAL SECURITIES LTD.BUY13,49,46843.93-
30-Aug-2012MTNLMaha Tel Nigam Ltd.SMC GLOBAL SECURITIES LTD.SELL13,89,46843.59-
30-Aug-2012MTNLMaha Tel Nigam Ltd.SUR MANGAL HOLDINGS PRIVATE LIMITEDBUY125,00,00043.90-
30-Aug-2012MTNLMaha Tel Nigam Ltd.SUR MANGAL HOLDINGS PRIVATE LIMITEDSELL121,07,08344.41-
30-Aug-2012MTNLMaha Tel Nigam Ltd.TRANSGLOBAL SECURITIES LTD.BUY28,64,80142.46-
30-Aug-2012MTNLMaha Tel Nigam Ltd.TRANSGLOBAL SECURITIES LTD.SELL28,65,80042.64-
30-Aug-2012TECHMTech Mahindra LimitedBIRLA MFBUY7,50,000775.00-
30-Aug-2012TECHMTech Mahindra LimitedBRITISH TELECOMMUNICATIONS PLCSELL29,75,000785.98-
30-Aug-2012TECHMTech Mahindra LimitedBRITISH TELECOMMUNICATIONS PLCSELL122,80,484777.66-
30-Aug-2012TECHMTech Mahindra LimitedHSBC GLOBALBUY16,50,484775.00-
30-Aug-2012TECHMTech Mahindra LimitedICICI PRU MFBUY29,00,000775.00-
30-Aug-2012TECHMTech Mahindra LimitedRELIANCE MFBUY12,00,000775.00-
30-Aug-2012TECHMTech Mahindra LimitedSBI MFBUY16,00,000775.00-
30-Aug-2012WELCORPWelspun Corp LimitedBNP PARIBAS ARBITRAGEBUY12,00,00091.39-