India Equity Insights A good start but more needs to be done ::HSBC Research

India Equity Insights
A good start but more needs to be done
 A flurry of policy announcements sparked a rerating in Indian
stocks, with foreign institutional flows surging in September
 We raise our Sensex targets to 18,700 (from 18,000) for CY12 and
20,000 (from 19,000) for CY13 on improved sentiment, but remain
underweight India in a regional context due to the rich valuation
 Our three key themes for the final quarter are: resilient
earnings, domestic consumption and domestic investment

FII DERIVATIVES STATISTICS FOR 16-Nov-2012

FII DERIVATIVES STATISTICS FOR 16-Nov-2012
	BUY		SELL		OPEN INTEREST AT THE END OF THE DAY
	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores
INDEX FUTURES	37104	1026.439	64647	1752.258	338053	8207.348	-725.818
INDEX OPTIONS	521977	14596.59	467350	13107.92	1869440	52132.53	1488.675
STOCK FUTURES	58171	1608.5	49219	1330.788	1095512	29386.5	277.7126
STOCK OPTIONS	66604	1820.257	70855	1940.405	99180	2671.153	-120.148
						Total	920.4213

 

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FII & DII trading activity on NSE and BSE 16-11-2012

Category		Buy	Sell	Net
		Value	Value	Value
FII		2992.05	2482.34	509.71
DII		919.18	1293.9	-374.72

 

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Tata Motors (CMP Rs272, BUY):: BRICS

Tata Motors (CMP Rs272, BUY)
YTDFY13 JLR sales up 21% yoy

Tata  Motors’  JLR  sales  (wholesale)  for  October  2012  were lower that
estimated  at  27,897  units,  up  7%  yoy (up 5% mom). Land Rover sales of
24,558  units  —  up  17%  yoy (up 4% mom) — partially offset the impact of
decline  of  37% yoy (up 19% mom) in Jaguar sales to 3,339 units on overall
sales.

Monthly volume in line with expectation: Over the last three years, average
sales  in  Q3 have contributed ~27% of JLR’s annual volume, as against ~31%
in  Q4.  Based  on  this  trend  as a guideline, JLR’s monthly sales can be
estimated  to be ~31,500 units in Q3. JLR’s sales for October 2012 improved
mom, but were lower than the estimated run-rate for the quarter.

Maintenance shutdown and model change impact sales

   US - JLR’s sales down 20% yoy

   UK – JLR posts slower than average growth in luxury cars; up 15% yoy

   Russia – JLR's sales growth slows down to 22% yoy

Daring Derivatives [For November 16, 2012] Sharekhan

Daring Derivatives [For November 16, 2012] Sharekhan www.sharekhan.com

Summary of Contents   DARING DERIVATIVES Derivatives Summary The Nifty (November) futures' premium has increased from 13.75 points to 18.15 points. The total open interest in the market was Rs147,054 crore and Rs566 crore was reduced in the open interest. The Nifty call options added 20.10 lakh shares in open interest, whereas the Nifty put options underwent reduction by 13.28 lakh shares in open interest. Click here to read report: Daring Derivatives

Meaningful Minutes - November 16th 2012: Kotak Sec

Economic Data: Three things to note on inflation, factory outputDuring the Diwali festivities, the Indian government announced two sets of key economic data. If you are a stock market investor, you will often read pundits speaking about the slow economic growth and the rising inflation. The two data releases are used by the Reserve Bank of India as indicators for setting borrowing and lending rates. Money could become expensive or cheap based on the trend in these two indicators. Here are three things to note from the week’s key data releases: 1) Industrial output weak: India’s industrial output, represented by the index of industrial output or IIP, fell by 0.4 per cent in September 2012 after rising 2.3 per cent in August 2012. The Reserve Bank of India plots the monthly data on a graph. It will note that the industrial output weakened in September 2012. While mining and electricity sectors reported a growth, the manufacturing sector reported a fall. The manufacturing sector accounts for 76 per cent of the index. Hence, a fall in the manufacturing sector growth is a point of concern. 2) Slow recovery likely: An important aspect of this data release is the outlook for growth. Analysts do not expect a sharp spurt in manufacturing or mining or in electricity generation. A key trend to observe could be a revival in India’s investment cycle. This means businesses deploying capital for growth and expansion of capacity. Credit Suisse, a foreign brokerage, believes that India could take three to four years to revive the investment cycle. Credit Lyonnais, another influential foreign brokerage, expects the creation of the National Investment Board as a significant development. “The idea is that the NIB will be an expediting body which will have the power to overrule ministers and fast track approvals of big-ticket investment projects,” says the brokerage in a note. This means a lot depends on policy initiatives taken by the government in the future. 3) Wholesale prices ease: Wholesale price inflation or WPI, a key inflation indicator, rose an annual 7.45 per cent. This is the slowest pace of growth since February 2012. In September 2012, it was 7.8 per cent. The Reserve Bank of India plots the trajectory or the path of this data point each month. RBI has clearly stated that it is not comfortable with the inflation rate hovering around the 7.5 per cent mark. The Reserve Bank of India’s main priority is to fight the inflation in the economy. If inflation remains high, it eats into the growth of an economy. RBI is unlikely to lower borrowing rates if it feels that inflation is likely to remain high. .

The detailed government press release on WPI inflation. The release gives in detail the break-up of the index and factors that contribute to the index. Read More    The economic worries due to a slowdown in India were indicated by the IIP and trade data. Read More

9.75%The consumer price inflation or CPI for October 2012 stood at 9.75 per cent against September 2012 figure of 9.73 per cent. This means, for people like you and me, prices continue to rise. All over the world, the main index of inflation is the consumer price inflation index. In India, RBI follows the wholesale price inflation index trajectory. If it were to follow the CPI, it would take longer to cut key interest rates.

Strong margin improvement Dishman Pharma :: Centrum

Strong margin improvement
Dishman Pharma & Chemicals (DPCL) results for Q2FY13 were lower than our
expectations. The company reported 12%YoY growth in revenues, 580bps
improvement in EBIDTA margin and strong growth in net profit. The
company’s EBIDTA margin improved due to the 830bps YoY reduction in
material cost. The company has resumed the supply of Eprosartan Mesylate
(EM) API to Abbott in Q2FY13. DPCL has commenced generic API business to
reduce quarterly fluctuation in revenues. We have revised our EPS estimates
upwards by 11% and 12% for FY13 and FY14 respectively. We have a Buy
rating for the scrip with a revised target price of Rs113 (based on 7x FY14E
EPS).
Moderate revenue growth: DPCL reported 12%YoY growth in revenues from Rs2.65bn
to Rs2.97bn. The CRAMS segment (65% of revenues) grew by 12%YoY from Rs1.69bn to
Rs1.88bn. The others segment (35% of revenues) was flat at Rs1.00bn. The PBIT margin
of CRAMS improved from 5.5% to 11.9%YoY whereas for the others segment it
improved from 15.3% to 24.2%YoY.
Excellent margin improvement: DPCL’s EBIDTA margin improved by 580bpsYoY from
16.4% to 22.2% due to the decline in material cost. Material cost declined by 830bps
from 37.5% to 29.2% of revenues due to higher growth of CRAMS. Personnel expenses
increased by 220bpsYoY from 26.3% to 28.5% due to the new recruitments for the
generic API business.