Today's delivery picks:
Buy Nicholas@332
Buy ABB@724
Buy GAIL@329
Tuesday, August 4, 2009
NHPC - IPO
N H P C
Issue highlights
NHPC is the largest hydro power company in India with a
current total installed capacity of 5,175 MW. With 13
operating stations including Joint Ventures, it accounts for
14% of the Hydro power capacity in India.
NHPC plants are located in areas having good hydro
potential. This ensures ample availability of water
resources for power generation. This also results in
operational advantage.
NHPC has been awarded status of “Mini-Ratna” category-I
PSU in April 2008 in recognition of its performance.
This Issue has been graded by ICRA Limited and has been
assigned a Grade of 3/5 indicating average fundamentals.
Absence of fuel cost and attached fuel price volatility in
hydro power generation.
High operational efficiency as average capacity indices for
FY2008 & FY 2009 stood at 96.12% and 93.61% respectively,
being higher than required under CERC regulation.
Objects of the issue
Utilize the proceeds to part finance the construction and
development costs of certain of Identified Projects.
Amount utilized towards Issue Expenses
General corporate purposes.
BACKGROUND
Company and promoters
National Hydroelectric Power Corporation Limited (NHPC) was promoted by the
Government of India in November 1975.
The company has been designated as “Mini-Ratna” category-I public sector undertaking in
April 2008 in recognition of its performance. As a category-I company it has greater
autonomy to undertake new projects without government approval, subject to an
investment ceiling of Rs. 500 crore set by the government of India.
BUSINESS OVERVIEW
NHPC is a hydroelectric power generating company committed to the planning,
development and implementation of an integrated and efficient network of hydroelectric
projects in India. NHPC is involved in all the activities right from commencement to
development of hydroelectric projects.
NHPC has constructed and developed 13 hydroelectric power stations with a capacity of
5,175 MW. The current total generation capacity of the company is 5,134.2 MW, taking into
account total installed capacity of of the Loktak and Tanakpur power stations (combined
capacity of 1,520 MW) constructed and operated through its subsidiary NHDC.
The company’s power stations and hydroelectric projects are located predominantly in the
North and North East of India. IN FY09 the company and its subsidiary sold 14,587.88
MUs and 2,345.01 MUs of electricity, respectively.
Currently the company is involved in the construction of 11 hydroelectric projects, which
are expected to increase its total installed capacity by 4,622 MW. The company is also
awaiting the government approval of five projects with an anticipated capacity of 4,565
MW and for certain joint venture projects with an anticipated capacity of 2,166 MW.
The company has experience in the design, development, construction and operation of
hydroelectric projects, executing and managing all aspects of projects, from front-end
engineering design to commissioning, operation and maintenance.
NHPC has selective undertaken projects in alliance with state governments where there is
high hydro poetintial and thus tend to enjoy location and operational advantage
Strategy
Capitalizing on the power sector reforms and the Government of India’s vision of
“Power for All.”
Intend to enter into long term Long term power purchase agreements with its
customers.
Plans to invest expand its installed capacity through Joint Ventures and MoUs.
The company plans to continue to deliver advisory services to clients and
government entities in India and abroad and while taking advantage of
opportunities from changes in the Electricity Act, 2003, the Hydro Power Policy
2008, and other regulatory developments.
INDUSTRY OVERVIEW
Overview
India has emerged as one of the fastest growing economies in the world. The Government
of India has identified the power sector as a key sector of focus to promote sustained
industrial growth with a mission –“Power for All by 2012.
Indian Power Sector
Demand Supply scenario: The power industry in India has historically been
characterized by energy shortages. According to the 17th EPS, India's peak demand
will reach 152,746 MW with an energy requirement of 968 bn units (BUs) by FY 2011-
12. By the FY 2016-17, peak demand will reach 218,209 MW with an energy
requirement of 1,392 BUs.
Consumption levels: The per capita consumption of energy in India is extremely low
in comparison to most other parts of the world, in part due to unreliable supply and
inadequate distribution networks.
Installed generation capacity: According to the Ministry of Power, as on September
30 2007, India has an installed generation capacity of approximately 135,782 MW. The
power industry has not grown sufficiently to meet demand and the economy still
faces an acute shortage of power.
Installed generation capacity by sector: As of September 30, 2007, the state
government sector led installed capacity levels with 70,947 MW, or 52.3% of the total
installed capacity in India, followed by the central sector at 46,166 MW, or 34.0% of
the total installed capacity in India, and by the private sector at 18,669 MW, or 13.7%
of total installed capacity in India.
Capacity Additions: The tenth five-year plan for 2002 to 2007 targeted a capacity
addition of 41,110 MW. However, the actual capacity addition in the 10th five-year
plan was just 21,180 MW. The 11th five-year plan recommends generation planning
based on an estimated 9.5% growth in required energy each year.
Hydro Electricity
Hydropower is more economical, less polluting, less damaging to the environment and a
renewable source of energy. Developing hydropower enhances energy security and there
is no fuel cost during the life of the project. In hydroelectric power station, energy is
harnessed from water by running it from a higher height to a lower height. Hydropower
stations are capable of instantaneous starting and stopping and are able to accommodate
various loading alternatives. This helps to improve the reliability of power systems and is
ideal for meeting demand during peak times.
Hydropower Potential in India
India has enormous potential for hydroelectric generation, as per CEA the potential is
84,000 MW at 60% load factor, which translates to 148,700 MW in terms of installed
capacity.
As of May 31, 2009 the total installed capacity in the country was 149,392 MW and
hydropower accounts for 36,878 MW (24.7%). The estimated potential of all the rivers( at
60% load factor) is 84,044 MW and probable installed capacities is 147,701 MW.
Share of Hydropower
Despite the benefits of hydro power projects the share of hydropower has steadily
declined from around 37% in first five year plan to only 25% in FY2009. The hydro power
capacity addition was 7886 MW during the 10th plan which was 54.78% of the targeted
addition of 14,393.2 MW. In the 11th Plan the propsed capacity addition is 15,627 MW of
which only 3,392 MW has been commissioned and 12,235 MW is under construction.
Policy Initiatives
The government has set high priority for development of Hydropower power keeping in
mind the potential and availability of water resources.
The anticipated hydropower capacity additions in the 12th and 14th five year plans stands
at 31,000 MW and 36,494 MW respectively ,with a total hydropower capacity to reach
147,774 MW in the 14th Plan.
The GoI recently introduced a three-stage process for the development of new
hydroelectric projects in the central sector. The new stage-driven process aims to reduce
the time and cost overruns of hydroelectric projects.
Stage I: Survey and investigation of project site, and preparation of pre-feasibility report;
Stage II: Detailed investigation, preparation of a DPR and pre-construction activity
including land acquisition; and
Stage III: Execution of the project after investment decision through PIB/CCEA
Updated CERC regulations
Tariffs are determined by reference to AFC, which comprise primary energy charges and
capacity charges and are determined by return on equity, depreciation, interest on loan,
interest on working capital and operation and maintenance expenses.
Ultra Mega Power Projects
The threshold limit to obtain mega power project status is 500 MW for hydropower
projects. This threshold has been reduced to 350 MW certain states. The number of
incentives, including a 10 year income tax holiday help in generating more hydroelectricity
and the economies of scale in mega power projects help to substantially bring down power
tariffs.
Hydro Power Policy 2008
The Hydro Power Policy of 2008 lays emphasis on increasing private investment in the
development of hydroelectric projects. The policy aims at attracting private funds by
encouraging joint ventures with private developers and the use of IPP model besides
promoting power trading and speeding up the availability of statutory clearances
Future Outlook
The Ministry of Power has set a goal Mission 2012 - Power for All. Based on the 17th EPS,
the total energy requirement in India will increase to 968,659 GWh by FY 2012, and
1,392,066 GWh by FY 2017. The estimated the total investment potential of the sector is
around Rs 9,000 bn for a specified period up to fiscal year 2011. This presents a significant
opportunity for power generation companies, both in the public and the private sector.
ISSUE PROFILE
Investment positives
NHPC is one of the largest hydro power generator in India with a capacity of 5,175
MW accounting for around 14% of total hydro capacity in India
Its projects are strategically located nearing areas of high potential for generation of
hydro power. These locations also happen to be near energy deficit areas.
The company has got into long term power purchase agreements for major portion
of capacity under construction.
The company has strong operating efficiency as reflected in average capacity index
of 93.61% for 200-09.
Being a mini ratna the company can enter in to greater autonomy to undertake new
projects without GoI approval subject to investment ceiling of Rs 500 cr.
Risk factors
Long gestation period in term of project execution may depress return on equity in
the construction phase.
Potential upside is limited as the tariffs are regulated by the government. Any
change in tariff policy may adversely affect the revenues.
Particularly when projects are located in complex terrain and harsh climatic
conditions may delay and thus increase the cost of the projects.
The majority of NHPC’s revenues are derived from sales of power to the state
electricity entities, as per the directives of the GoI, and there is no assurance that
company will always be able to secure payment from state electricity entities.
Monday, August 3, 2009
Nifty closes at 14-month up ; realty,auto, metals lead: SENSEX UP 254 PTS
The Sensex and the Nifty surged smartly in the last one hour of the trade and closed at 14-month high. The Nifty closed above the 4,700 mark for the first time since June 6, 2008. The rally was led by auto, realty, metal and oil & gas stocks. Good buying was also seen in power, capital goods and pharma stocks.
Stocks like Reliance, Infosys, ICICI Bank, L&T, SBI, BHEL, Reliance Comm and ONGC were the positive contributors to the Sensex and the Nifty.
The BSE midcap and smallcap indices closed up 2.3% and 1.69% respectively.
The Sensex closed up 253.92 points or 1.62% at 15924.23, and the Nifty was up 74.95 points or 1.62% at 4711.40.
About 1801 shares advanced, 1034 shares declined, and 337 shares were unchanged.
The BSE auto index closed up 4.60% or 262.77 points at 5976.45. Stocks like Bharat Forge, Amtek Auto, Cummins, Mah and Mah and Bajaj Auto were up 6-18%.
The BSE realty index was up 4.19% or 163.73 points at 4072.49. Stocks like Phoenix Mills, Mahindra Life, Anant Raj Ind, Indiabulls Real and Peninsula Land were up 6-9%.
The BSE metal index was up 3.41% or 422.76 points at 12818.02. Stocks like Hindalco, JSW Steel, Hind Zinc, Jindal Saw and Tata Steel were up 4-8%.
The BSE power index was up 2.19% or 65.17 points at 3,035.63. Stocks like BHEL, Tata Power, Torrent Power, ABB and Lanco Infratech were up 2-5%.
The BSE oil & gas index was up 2.04% or 192.99 points at 9,673.08. Stocks like Aban Offshore, Cairn India, Reliance, Reliance Petro and ONGC were up 1-9%.
The BSE capital goods index was up 1.82% or 229.28 points 12,825.22. Stocks like Praj Industries, Usha Martin, BHEL, ABB and Alstom Projects were up 4-10%.
The BSE healthcare index was up 1.41% or 53.54 points 3,858.59. Stocks like Biocon, Aurobindo Pharma, Opto Circuits, Piramal Health and Bilcare were up 2-10%.
The BSE bankex was up 1.20% or 101.93 points at 8,567.69. Stocks like IOB, Karnataka Bank, Oriental Bank, IDBI Bank and Allahabad Bank closed up 2-3%.
The BSE IT index was up 0.99% or 39.37 points at 4,001.49. Stocks liek Mphasis, Patni Computer, Financial Tech, HCL Tech and Aptech were up 5-8%.
However, the BSE FMCG index was down 0.71% or 19.45 points at 2,718.70. Stocks like HUL, Nestle, Britannia, Marico and Colgate were down 1-2%.
Volumes were lower; total traded turnover stood at Rs 73090.81 crore. This included Rs 16687.11 crore from the NSE cash segment, Rs 50805.16 crore from the NSE F&O segment and the balance Rs 5598.54 crore from the BSE cash segment.
Nifty @ 14-month high; RIL, BHEL, Rel Comm, ONGC surge
At 15.02 hrs IST, the Nifty touched 2009 high and was trading with over 1% gains at 4695. It was trading at 14-month high. The positive contributors to the Nifty were Reliance, BHEL, Reliance Comm, ONGC and Sterlite Ind. Good buying was seen in auto, realty, metal, power, oil & gas, capital goods and pharma stocks.
The BSE midcap and smallcap indices were up 2.27% and 1.62% respectively.
The Sensex was up 164.92 points or 1.05% at 15835.23, and the Nifty was up 59.10 points or 1.27% at 4695.55.
About 1682 shares have advanced, 1133 shares declined, and 357 shares are unchanged.
Top gainers on the bourses were Hindalco up 5.74% at Rs 105.95, Mah and Mah up 5.39% at Rs 903, BHEL up 4.56% at Rs 2,329.70, Tata Steel up 4.28% at Rs 482.50, Sterlite Ind up 4.19% at Rs 672, HCL Tech up 4.98% at Rs 253. and NALCO up 4.73% at Rs 323.20.
However, top losers on the bourses were HUL down 2.56% at Rs 283.75, HDFC Bank down 1.24% Rs 1,480.95, ITC down 0.98% at Rs 247.60, Bharti Airtel down 0.66% at Rs 407.85, Wipro down 0.28% at Rs 489.30, Suzlon Energy down 4.21% at Rs 95.60, BPCL down 1.76% at Rs 465.65, GAIL down 1.14% at Rs 328.15 and Ambuja Cements down 0.88% at Rs 107.55.
Sensex gains further; auto, realty, metal surge
At 13.55 hrs IST, the Sensex gained further and was inching towards the 15800 mark. Strong buying was seen in auto, realty, metal, power, capital goods, pharma and oil & gas stocks. RIL, L&T, Bharti Airtel, SBI and ONGC were positive contributors to the Sensex.
The Sensex was up 120.66 points or 0.77% at 15790.97, and the Nifty was up 39.45 points or 0.85% at 4675.90.
The advanced- declined ratio was in favour of advances; about 1608 shares advanced, 1182 shares declined, and 381 shares were unchanged.
The selling pressure was seen in the consumer durable, bank and FMCG space.
Hindalco, Tata Power, BHEL, Mahindra and Mahindra, Maruti Suzuki and NALCO were the top gainer on the indices, with 4-6% gain. However, top losers were HUL, IDFC Bank, Reliance Infra, HDFC, ITC, Suzlon Energy, BPCL, GAIL and HDFC Bank.
The midcap and smallcap indices were trading with 1.5% gain.
Nifty holds 4650; RIL, L&T, Bharti Airtel, SBI lead
At 13.00 hrs IST, the Sensex was trading with positive bias. Stocks like Reliance, L&T, Bharti Airtel, SBI and BHEL were the positive contributors to the Sensex. However, Infosys, ICICI Bank, ITC, HDFC and HDFC Bank were the negative contributors. The BSE auto index outperformed all the other sectoral indices, it was up nearly 3%.
The Sensex was up 63.95 points or 0.41% at 15734.26, and the Nifty was up 23.35 points or 0.50% at 4659.80.
About 1530 shares advanced, 1234 shares declined, and 407 shares were unchanged.
Sanjeev Prasad, Executive Director and Co-Head, Kotak Institutional Equities, didn't see significant re-rating of companies post the Q1 FY10 earnings. "We are looking at Sensex earnings per share of about Rs 1,075 for FY11." According to him, the market was trading at 17.7 and 15 times FY10 and FY11 earnings per share respectively. "We need serious upgrades for the market to sustain,” he added.
Good buying interest was seen in realty, metal, pharma, oil & gas and capital goods stocks while FMCG and banks stocks were trading weak.
Top gainers on the Sensex were BHEL at Rs 2,310.10 up 3.68%, Sterlite Ind at Rs 668.50 up 3.65%, Maruti Suzuki at Rs 1,463.30 up 3.54%, Hindalco at Rs 103.70 up 3.49% and Reliance Comm at Rs 284.35 up 3.16%.
However, top losers on the Sensex were HUL at Rs 283.65 down 2.59%, HDFC Bank at Rs 1,473.25 down 1.76%, HDFC at Rs 2,491 down 1.58%, Reliance Infra at Rs 1,190.20 down 1.24% and ITC at Rs 247 down 1.22%.
Top gainers on the BSE Midcap - Bharat Forge, Phoenix Mills, Bajaj Holdings, United Breweries and Anant Raj Ind were up 8-10%.
Top gainers on the BSE Smallcap - Empee Distiller, Allied Digital, Elgi Equipments, Sanghi Ind and CMI FPE were up 10-20%.
Nifty volatile; RIL, Rel Comm, BHEL up
At 11.53 am, the Nifty was volatile in tarde and was hovering around the 4650 mark. Auto, realty, metal oil & gas and pharma stocks were trading with some gains. Reliance, Reliance Comm, BHEL, Maruti Suzuki and Cairn India were the positive contributors to the Nifty. However, FMCG and consumer durable stocks were trading weak.
At 11.53 am, the Sensex was up 52 points at 15722, and the Nifty was up 18 points at 4654.60.
Top gainers on the Sensex were Reliance Communication, Maruti Suzuki, Hindalco, Sterlite Industries and Tata Steel.
The first quarter earning season just went by springing some pleasant and welcome surprises. Commenting on corporate India’s performance, Raamdeo Agrawal, Director and Co Founder of Motilal Oswal said that there were many positive surprises from the Q1 results, adding that he expected 2-3% earnings upgrades for FY10 results. He said that there was some uncertainty about the FY11 numbers due to Reliance Industries, which had unfortunately disappointed the street this quarter. Agarwal further said that the auto industry would sustain 12-15% of volume growth.
Reliance Comm, Maruti Suzuki, Cairn India, Unitech and Hindalco were the top gainers on the Nifty.
However, top losers on the Nifty were Suzlon Energy, HUL, Tata Comm, BPCL and HDFC Bank.
The most active shares on NSE were Aban Offshore, Suzlon Energy, Unitech, DLF and Tata Steel.
Top percentage gainers on the NSE were Empee Distiller at Rs 117.55 up 20.01%, TVS Srichakra at Rs 118.80 up 20.00%, Tips Industries at Rs 48.90 up 18.26%, Wanbury at Rs 69.50 up 17.40% and Bharat Gears at Rs 37.05 up 15.24%.
Sensex hovers around 15700; auto, metal, oil & gas up
At 10.40 am, the Sensex was volatile and was hovering around the 15700 mark. Buying interest was seen in auto, metal, oil & gas, pharma and capital goods stocks. However, FMCG, realty and banking stocks were witnessing selling pressure. The BSE midcap and smallcap indices were trading with half a percent gain.
At 10.40 am, the Sensex was down 13 points at 15656.31, and the Nifty was down 1 point at 4635.
Jagdish Malkani, Taib India, said the market undertone continued to be positive and the Nifty could go up to 4800 levels. "But the run has been too fast & I expect bouts of volatility. Valuations look expensive at current levels," he added.
HUL, DLF, HDFC Bank, JP Associates, Reliance Infra, HDFC were the top losers on the Sensex.
However, Sterlite Industries, Hindalco, Reliance Comm, Tata Steel and M&M were the top gainers on the Sensex.
Sensex choppy in early trade; Suzlon crashes on bad nos
The Sensex opened higher and continued Friday's rally further. However, the markets were volatile in trade. Metal and oil & gas exploration and pharma were the gainers in the early trade.
At 9:58 hours IST, the Nifty rose 13 points, to 4,649 and the Sensex was up 45 points at 15,715. The CNX Midcap was up 11 points at 5,961 and the BSE Smallcap Index rose 30 points, to 6,236. About 488 shares advanced while 196 shares declined on the NSE.
Among the frontliners, Cairn, Tata Power, Hindalco Industries, Reliance Power, Maruti, HCL Tech, Sterlite, Ranbaxy Labs, Reliance Communication, ONGC, Sun Pharma and Bharti Airtel were the gainers.
However, Suzlon Energy lost 7%, as the company reported loss of Rs 453 crore. Reliance Capital was down 2.25% on weak numbers.
BPCL, Tata Motors, HUL and ICICI Bank were the other losers.
Midcap space
Excel Infoways listed at Rs 86 on the NSE and Rs 93.05 on the BSE.
GMR Infra lost 3%. Hotel Leela and Indian Hotel were down 2%.
Divis Labs lost 6.7% on bad results. Maytas Infra lost 5%.
Rolta was down 1.5% ahead of numbers. However, Aban Offshore was up 3% on the back of better-than-expectations numbers.
Global Cues:
Asian markets were trading mixed. Shanghai, Hang Seng, Jakarta and Kospi were up 0.5-1.1%. However, Taiwan Weighted fell 0.4% and Straits Times down 0.25%. Nikkei was flat.
Market cues:
-FIIs net buy USD 244 million on July 30
-DIIs net sell Rs 49.2 crore July 30
-Total F&O Open Interest up by Rs 3,258 crore to Rs 59,893 crore
-FIIs net buy Rs 582 crore in Cash on July 31 (Prov)
-DIIs net buy Rs 316 crore in Cash July 31 (Prov)
-FIIs ney by Rs 660 crore in F&O July 31
F&O cues:
-Total Futures Open Int up by Rs 1372 crore and Total Options Open Int up by Rs 1886 crore
-Nifty up 1.4%, Futures Open Int up 4%
-Nifty August Futures traded at 1- pt premium
-Nifty IVs at 34-36%
-Nifty Open Int Put Call Ratio up from 0.95 to 0.98
-Nifty Puts add 18.9 lakh shares
-Nifty Calls add 10.9 lakh shares
-Nifty 4600 Puts add 6 lakh shares in Open Int
-Nifty 4800 Calls add 3.6 lakh shares in Open Int
-Nifty 4900 Calls add 3.54 lakh shares in Open Int
-Nifty 4600 Call sheds 2.9 lakh shares in Open Int
-Stock Futures add 3.3 cr shares in Open Interest
Stocks like Reliance, Infosys, ICICI Bank, L&T, SBI, BHEL, Reliance Comm and ONGC were the positive contributors to the Sensex and the Nifty.
The BSE midcap and smallcap indices closed up 2.3% and 1.69% respectively.
The Sensex closed up 253.92 points or 1.62% at 15924.23, and the Nifty was up 74.95 points or 1.62% at 4711.40.
About 1801 shares advanced, 1034 shares declined, and 337 shares were unchanged.
The BSE auto index closed up 4.60% or 262.77 points at 5976.45. Stocks like Bharat Forge, Amtek Auto, Cummins, Mah and Mah and Bajaj Auto were up 6-18%.
The BSE realty index was up 4.19% or 163.73 points at 4072.49. Stocks like Phoenix Mills, Mahindra Life, Anant Raj Ind, Indiabulls Real and Peninsula Land were up 6-9%.
The BSE metal index was up 3.41% or 422.76 points at 12818.02. Stocks like Hindalco, JSW Steel, Hind Zinc, Jindal Saw and Tata Steel were up 4-8%.
The BSE power index was up 2.19% or 65.17 points at 3,035.63. Stocks like BHEL, Tata Power, Torrent Power, ABB and Lanco Infratech were up 2-5%.
The BSE oil & gas index was up 2.04% or 192.99 points at 9,673.08. Stocks like Aban Offshore, Cairn India, Reliance, Reliance Petro and ONGC were up 1-9%.
The BSE capital goods index was up 1.82% or 229.28 points 12,825.22. Stocks like Praj Industries, Usha Martin, BHEL, ABB and Alstom Projects were up 4-10%.
The BSE healthcare index was up 1.41% or 53.54 points 3,858.59. Stocks like Biocon, Aurobindo Pharma, Opto Circuits, Piramal Health and Bilcare were up 2-10%.
The BSE bankex was up 1.20% or 101.93 points at 8,567.69. Stocks like IOB, Karnataka Bank, Oriental Bank, IDBI Bank and Allahabad Bank closed up 2-3%.
The BSE IT index was up 0.99% or 39.37 points at 4,001.49. Stocks liek Mphasis, Patni Computer, Financial Tech, HCL Tech and Aptech were up 5-8%.
However, the BSE FMCG index was down 0.71% or 19.45 points at 2,718.70. Stocks like HUL, Nestle, Britannia, Marico and Colgate were down 1-2%.
Volumes were lower; total traded turnover stood at Rs 73090.81 crore. This included Rs 16687.11 crore from the NSE cash segment, Rs 50805.16 crore from the NSE F&O segment and the balance Rs 5598.54 crore from the BSE cash segment.
Nifty @ 14-month high; RIL, BHEL, Rel Comm, ONGC surge
At 15.02 hrs IST, the Nifty touched 2009 high and was trading with over 1% gains at 4695. It was trading at 14-month high. The positive contributors to the Nifty were Reliance, BHEL, Reliance Comm, ONGC and Sterlite Ind. Good buying was seen in auto, realty, metal, power, oil & gas, capital goods and pharma stocks.
The BSE midcap and smallcap indices were up 2.27% and 1.62% respectively.
The Sensex was up 164.92 points or 1.05% at 15835.23, and the Nifty was up 59.10 points or 1.27% at 4695.55.
About 1682 shares have advanced, 1133 shares declined, and 357 shares are unchanged.
Top gainers on the bourses were Hindalco up 5.74% at Rs 105.95, Mah and Mah up 5.39% at Rs 903, BHEL up 4.56% at Rs 2,329.70, Tata Steel up 4.28% at Rs 482.50, Sterlite Ind up 4.19% at Rs 672, HCL Tech up 4.98% at Rs 253. and NALCO up 4.73% at Rs 323.20.
However, top losers on the bourses were HUL down 2.56% at Rs 283.75, HDFC Bank down 1.24% Rs 1,480.95, ITC down 0.98% at Rs 247.60, Bharti Airtel down 0.66% at Rs 407.85, Wipro down 0.28% at Rs 489.30, Suzlon Energy down 4.21% at Rs 95.60, BPCL down 1.76% at Rs 465.65, GAIL down 1.14% at Rs 328.15 and Ambuja Cements down 0.88% at Rs 107.55.
Sensex gains further; auto, realty, metal surge
At 13.55 hrs IST, the Sensex gained further and was inching towards the 15800 mark. Strong buying was seen in auto, realty, metal, power, capital goods, pharma and oil & gas stocks. RIL, L&T, Bharti Airtel, SBI and ONGC were positive contributors to the Sensex.
The Sensex was up 120.66 points or 0.77% at 15790.97, and the Nifty was up 39.45 points or 0.85% at 4675.90.
The advanced- declined ratio was in favour of advances; about 1608 shares advanced, 1182 shares declined, and 381 shares were unchanged.
The selling pressure was seen in the consumer durable, bank and FMCG space.
Hindalco, Tata Power, BHEL, Mahindra and Mahindra, Maruti Suzuki and NALCO were the top gainer on the indices, with 4-6% gain. However, top losers were HUL, IDFC Bank, Reliance Infra, HDFC, ITC, Suzlon Energy, BPCL, GAIL and HDFC Bank.
The midcap and smallcap indices were trading with 1.5% gain.
Nifty holds 4650; RIL, L&T, Bharti Airtel, SBI lead
At 13.00 hrs IST, the Sensex was trading with positive bias. Stocks like Reliance, L&T, Bharti Airtel, SBI and BHEL were the positive contributors to the Sensex. However, Infosys, ICICI Bank, ITC, HDFC and HDFC Bank were the negative contributors. The BSE auto index outperformed all the other sectoral indices, it was up nearly 3%.
The Sensex was up 63.95 points or 0.41% at 15734.26, and the Nifty was up 23.35 points or 0.50% at 4659.80.
About 1530 shares advanced, 1234 shares declined, and 407 shares were unchanged.
Sanjeev Prasad, Executive Director and Co-Head, Kotak Institutional Equities, didn't see significant re-rating of companies post the Q1 FY10 earnings. "We are looking at Sensex earnings per share of about Rs 1,075 for FY11." According to him, the market was trading at 17.7 and 15 times FY10 and FY11 earnings per share respectively. "We need serious upgrades for the market to sustain,” he added.
Good buying interest was seen in realty, metal, pharma, oil & gas and capital goods stocks while FMCG and banks stocks were trading weak.
Top gainers on the Sensex were BHEL at Rs 2,310.10 up 3.68%, Sterlite Ind at Rs 668.50 up 3.65%, Maruti Suzuki at Rs 1,463.30 up 3.54%, Hindalco at Rs 103.70 up 3.49% and Reliance Comm at Rs 284.35 up 3.16%.
However, top losers on the Sensex were HUL at Rs 283.65 down 2.59%, HDFC Bank at Rs 1,473.25 down 1.76%, HDFC at Rs 2,491 down 1.58%, Reliance Infra at Rs 1,190.20 down 1.24% and ITC at Rs 247 down 1.22%.
Top gainers on the BSE Midcap - Bharat Forge, Phoenix Mills, Bajaj Holdings, United Breweries and Anant Raj Ind were up 8-10%.
Top gainers on the BSE Smallcap - Empee Distiller, Allied Digital, Elgi Equipments, Sanghi Ind and CMI FPE were up 10-20%.
Nifty volatile; RIL, Rel Comm, BHEL up
At 11.53 am, the Nifty was volatile in tarde and was hovering around the 4650 mark. Auto, realty, metal oil & gas and pharma stocks were trading with some gains. Reliance, Reliance Comm, BHEL, Maruti Suzuki and Cairn India were the positive contributors to the Nifty. However, FMCG and consumer durable stocks were trading weak.
At 11.53 am, the Sensex was up 52 points at 15722, and the Nifty was up 18 points at 4654.60.
Top gainers on the Sensex were Reliance Communication, Maruti Suzuki, Hindalco, Sterlite Industries and Tata Steel.
The first quarter earning season just went by springing some pleasant and welcome surprises. Commenting on corporate India’s performance, Raamdeo Agrawal, Director and Co Founder of Motilal Oswal said that there were many positive surprises from the Q1 results, adding that he expected 2-3% earnings upgrades for FY10 results. He said that there was some uncertainty about the FY11 numbers due to Reliance Industries, which had unfortunately disappointed the street this quarter. Agarwal further said that the auto industry would sustain 12-15% of volume growth.
Reliance Comm, Maruti Suzuki, Cairn India, Unitech and Hindalco were the top gainers on the Nifty.
However, top losers on the Nifty were Suzlon Energy, HUL, Tata Comm, BPCL and HDFC Bank.
The most active shares on NSE were Aban Offshore, Suzlon Energy, Unitech, DLF and Tata Steel.
Top percentage gainers on the NSE were Empee Distiller at Rs 117.55 up 20.01%, TVS Srichakra at Rs 118.80 up 20.00%, Tips Industries at Rs 48.90 up 18.26%, Wanbury at Rs 69.50 up 17.40% and Bharat Gears at Rs 37.05 up 15.24%.
Sensex hovers around 15700; auto, metal, oil & gas up
At 10.40 am, the Sensex was volatile and was hovering around the 15700 mark. Buying interest was seen in auto, metal, oil & gas, pharma and capital goods stocks. However, FMCG, realty and banking stocks were witnessing selling pressure. The BSE midcap and smallcap indices were trading with half a percent gain.
At 10.40 am, the Sensex was down 13 points at 15656.31, and the Nifty was down 1 point at 4635.
Jagdish Malkani, Taib India, said the market undertone continued to be positive and the Nifty could go up to 4800 levels. "But the run has been too fast & I expect bouts of volatility. Valuations look expensive at current levels," he added.
HUL, DLF, HDFC Bank, JP Associates, Reliance Infra, HDFC were the top losers on the Sensex.
However, Sterlite Industries, Hindalco, Reliance Comm, Tata Steel and M&M were the top gainers on the Sensex.
Sensex choppy in early trade; Suzlon crashes on bad nos
The Sensex opened higher and continued Friday's rally further. However, the markets were volatile in trade. Metal and oil & gas exploration and pharma were the gainers in the early trade.
At 9:58 hours IST, the Nifty rose 13 points, to 4,649 and the Sensex was up 45 points at 15,715. The CNX Midcap was up 11 points at 5,961 and the BSE Smallcap Index rose 30 points, to 6,236. About 488 shares advanced while 196 shares declined on the NSE.
Among the frontliners, Cairn, Tata Power, Hindalco Industries, Reliance Power, Maruti, HCL Tech, Sterlite, Ranbaxy Labs, Reliance Communication, ONGC, Sun Pharma and Bharti Airtel were the gainers.
However, Suzlon Energy lost 7%, as the company reported loss of Rs 453 crore. Reliance Capital was down 2.25% on weak numbers.
BPCL, Tata Motors, HUL and ICICI Bank were the other losers.
Midcap space
Excel Infoways listed at Rs 86 on the NSE and Rs 93.05 on the BSE.
GMR Infra lost 3%. Hotel Leela and Indian Hotel were down 2%.
Divis Labs lost 6.7% on bad results. Maytas Infra lost 5%.
Rolta was down 1.5% ahead of numbers. However, Aban Offshore was up 3% on the back of better-than-expectations numbers.
Global Cues:
Asian markets were trading mixed. Shanghai, Hang Seng, Jakarta and Kospi were up 0.5-1.1%. However, Taiwan Weighted fell 0.4% and Straits Times down 0.25%. Nikkei was flat.
Market cues:
-FIIs net buy USD 244 million on July 30
-DIIs net sell Rs 49.2 crore July 30
-Total F&O Open Interest up by Rs 3,258 crore to Rs 59,893 crore
-FIIs net buy Rs 582 crore in Cash on July 31 (Prov)
-DIIs net buy Rs 316 crore in Cash July 31 (Prov)
-FIIs ney by Rs 660 crore in F&O July 31
F&O cues:
-Total Futures Open Int up by Rs 1372 crore and Total Options Open Int up by Rs 1886 crore
-Nifty up 1.4%, Futures Open Int up 4%
-Nifty August Futures traded at 1- pt premium
-Nifty IVs at 34-36%
-Nifty Open Int Put Call Ratio up from 0.95 to 0.98
-Nifty Puts add 18.9 lakh shares
-Nifty Calls add 10.9 lakh shares
-Nifty 4600 Puts add 6 lakh shares in Open Int
-Nifty 4800 Calls add 3.6 lakh shares in Open Int
-Nifty 4900 Calls add 3.54 lakh shares in Open Int
-Nifty 4600 Call sheds 2.9 lakh shares in Open Int
-Stock Futures add 3.3 cr shares in Open Interest
Result Update-Suzlon Energy Ltd
Investment Highlights
Latest quarter sales performance: Suzlon’s consolidated net sales
increased by 33% to Rs.4152.68 crore (YoY) as against Rs.3117.80
crore (YoY). The company reported growth in revenues at a
consolidated level, where as at the stand-alone basis quantity of sales
decreased.
Reported net loss in Q1FY10: The Company posted consolidated net
loss of Rs.462.55 Crs in the Q1FY10 as against net profit of Rs.54.80
crore (YoY).
Decrease in EBITDA margin: EBITDA margin of the company
decreased to 0.30% for Q1FY10 from 12.21% (YoY). The margins of the
company declined due to low volume in Suzlon’s wind energy business.
Technical Outlook
CMP R1 R2 S1 S2 Buy/Sell
94.35 97 104 87 78 Sell
Industry: Electric Equipment
Price Data
Current Price (Rs) 94.35
52 wk range (Rs) 33 - 253
Stock Data
Mkt Cap (Rs Cr) 14136
No. of shares o/s(Cr) 149.83
Free float (%) 40.18
Latest quarter sales performance: Suzlon’s consolidated net sales
increased by 33% to Rs.4152.68 crore (YoY) as against Rs.3117.80
crore (YoY). The company reported growth in revenues at a
consolidated level, where as at the stand-alone basis quantity of sales
decreased.
Reported net loss in Q1FY10: The Company posted consolidated net
loss of Rs.462.55 Crs in the Q1FY10 as against net profit of Rs.54.80
crore (YoY).
Decrease in EBITDA margin: EBITDA margin of the company
decreased to 0.30% for Q1FY10 from 12.21% (YoY). The margins of the
company declined due to low volume in Suzlon’s wind energy business.
Technical Outlook
CMP R1 R2 S1 S2 Buy/Sell
94.35 97 104 87 78 Sell
Industry: Electric Equipment
Price Data
Current Price (Rs) 94.35
52 wk range (Rs) 33 - 253
Stock Data
Mkt Cap (Rs Cr) 14136
No. of shares o/s(Cr) 149.83
Free float (%) 40.18
MONEY MORNING - 3-Aug-09
Wall Street stayed in the green for much of the day after the Q2 GDP
showed a less than expected contraction. The key benchmark indices
Dow Jones was up by 0.19% and NASDAQ was down by 0.29%. The
Asian bourses are trading positive with Nikkei up by 0.03%, Hang Seng
up by 0.88% and Singapore Nifty up by 0.13%.
Considering Global cues, the domestic bourses are likely to trade range
bound. Technically spot nifty may take resistance at 4680/4725/4820
levels and support at 4580/4525/4430 levels.
POST-MARKET ANALYSIS:
Recovery in IT, FMCG, banks and real estate stocks helped Indian
markets to show positive close yesterday. However, the key benchmark
indices pared gains in mid-afternoon trade as European stocks
declined. Sensex and Nifty were up by 1.83% and 1.42% respectively.
FIIs’ were net buyers both in equity and derivatives.
ADRs: Tata comm. (-4.68%), MTNL (-3.66%), Satyam Computers (-
2.33%) and Patni Computers (+2.35%).
NEWS TO USE:
ONGC has begun an ambitious exploration programme in the Kerala–
Konkan basin from today, engaging an ultra-deepwater drill ship. With a
Rs 400-crore investment outlay, the company has charted an
exploration programme to be completed within 100 days.
RELIANCE INFRASTRUCTURE order-book position was all set to
cross the Rs 50,000-crore mark.
JAIPRAKASH ASSOCIATES will invest Rs. 1,050 crore for setting up a
greenfield cement plant in Assam.
M&M has opened its new 3-S (sales, service and spare parts)
infrastructure facility in Hyderabad.
SAIL has registered 14% growth in production of steel to over 1 million
tonnes during July over the year-ago period.
TATA MOTORS will deliver up to 60,000 units of the Nano, which is touted as the world's cheapest car, by July
next year while remaining committed to handing over the first one lakh cars by 2010 once its mother plant in
Sanand goes on stream.
RCOM consolidated Net profit increased by 8.23% (YoY) to Rs 1636.61 crore as against Rs 1512.15 crore in
Q1FY10. Net Sales increased by 5.28% (YoY) to Rs 5505.49 crore as against Rs 5229.47 crore.
NEUTRAL
TATA STEEL has prepared a plan to produce half the iron ore and coking coal — the raw materials used to
make steel — for Corus, its European subsidiary, by 2012.
TATA MOTORS edged closer to signing a financial aid package with the British government for its struggling
UK subsidiary Jaguar Land Rover.
PFC will soon approach banks and financial institutions to raise Rs 90,000 crore as part of the National
Electricity Fund, which was set up for the development of the power sector.
BAJAJ AUTO will launch its second new motorcycle for the year.
The government may soon levy a 10% royalty on iron ore on ad valorem basis as the mines ministry has sent a
proposal in this regard to the Union Cabinet for its approval.
BHARTI AIRTEL and South Africa's MTN are likely to announce the status this week of the proposed merger to
create a $23-billion entity as period for exclusive talks between them expired on July 31.
KOTAK MAHINDRA BANK has decided to reduce its unsecured loans in the months ahead but has ruled out
the possibility of winding up the portfolio completely.
ALLAHABAD BANK has raised Rs 450-crore worth tier-II capital with a view to fund its growth needs and
shore up its capital adequacy ratio.
TCS and WIPRO, apart from several others, are in pursuit of up to Rs 2,500-crore outsourcing contract at
Indian Railways.
JK TYRE could soon join the bandwagon of radial tyre companies setting up shops near Chennai.
GAMMON INDIA standalone Net profit decreased by 52.20% (YoY) to Rs 25.06 crore as against Rs 52.43
crore in Q1FY10. Net Sales increased by 45.32% (YoY) to Rs 850.45 crore as against Rs 585.24 crore.
NEGATIVE
ORCHID CHEM reported standalone Net loss of Rs 29.76 crore as against Net loss of Rs 31.65 crore in
Q1FY10. Net Sales increased by 6.31% (YoY) to Rs 305.82 crore as against Rs 287.66 crore.
PURAVANKARA PROJECT consolidated Net profit decreased by 83.45% (YoY) to Rs 10.24 crore as against
Rs 61.89 crore in Q1FY10. Net Sales decreased by 64.48% (YoY) to Rs 55.97 crore as against Rs 157.58
crore.
ADLABSFILM reported standalone Net loss of Rs 63.70 (YoY) crore as against Rs 2.32 crore in Q1FY10. Net
Sales decreased by 54.84% (YoY) to Rs 103.41 crore as against Rs 228.97 crore.
showed a less than expected contraction. The key benchmark indices
Dow Jones was up by 0.19% and NASDAQ was down by 0.29%. The
Asian bourses are trading positive with Nikkei up by 0.03%, Hang Seng
up by 0.88% and Singapore Nifty up by 0.13%.
Considering Global cues, the domestic bourses are likely to trade range
bound. Technically spot nifty may take resistance at 4680/4725/4820
levels and support at 4580/4525/4430 levels.
POST-MARKET ANALYSIS:
Recovery in IT, FMCG, banks and real estate stocks helped Indian
markets to show positive close yesterday. However, the key benchmark
indices pared gains in mid-afternoon trade as European stocks
declined. Sensex and Nifty were up by 1.83% and 1.42% respectively.
FIIs’ were net buyers both in equity and derivatives.
ADRs: Tata comm. (-4.68%), MTNL (-3.66%), Satyam Computers (-
2.33%) and Patni Computers (+2.35%).
NEWS TO USE:
ONGC has begun an ambitious exploration programme in the Kerala–
Konkan basin from today, engaging an ultra-deepwater drill ship. With a
Rs 400-crore investment outlay, the company has charted an
exploration programme to be completed within 100 days.
RELIANCE INFRASTRUCTURE order-book position was all set to
cross the Rs 50,000-crore mark.
JAIPRAKASH ASSOCIATES will invest Rs. 1,050 crore for setting up a
greenfield cement plant in Assam.
M&M has opened its new 3-S (sales, service and spare parts)
infrastructure facility in Hyderabad.
SAIL has registered 14% growth in production of steel to over 1 million
tonnes during July over the year-ago period.
TATA MOTORS will deliver up to 60,000 units of the Nano, which is touted as the world's cheapest car, by July
next year while remaining committed to handing over the first one lakh cars by 2010 once its mother plant in
Sanand goes on stream.
RCOM consolidated Net profit increased by 8.23% (YoY) to Rs 1636.61 crore as against Rs 1512.15 crore in
Q1FY10. Net Sales increased by 5.28% (YoY) to Rs 5505.49 crore as against Rs 5229.47 crore.
NEUTRAL
TATA STEEL has prepared a plan to produce half the iron ore and coking coal — the raw materials used to
make steel — for Corus, its European subsidiary, by 2012.
TATA MOTORS edged closer to signing a financial aid package with the British government for its struggling
UK subsidiary Jaguar Land Rover.
PFC will soon approach banks and financial institutions to raise Rs 90,000 crore as part of the National
Electricity Fund, which was set up for the development of the power sector.
BAJAJ AUTO will launch its second new motorcycle for the year.
The government may soon levy a 10% royalty on iron ore on ad valorem basis as the mines ministry has sent a
proposal in this regard to the Union Cabinet for its approval.
BHARTI AIRTEL and South Africa's MTN are likely to announce the status this week of the proposed merger to
create a $23-billion entity as period for exclusive talks between them expired on July 31.
KOTAK MAHINDRA BANK has decided to reduce its unsecured loans in the months ahead but has ruled out
the possibility of winding up the portfolio completely.
ALLAHABAD BANK has raised Rs 450-crore worth tier-II capital with a view to fund its growth needs and
shore up its capital adequacy ratio.
TCS and WIPRO, apart from several others, are in pursuit of up to Rs 2,500-crore outsourcing contract at
Indian Railways.
JK TYRE could soon join the bandwagon of radial tyre companies setting up shops near Chennai.
GAMMON INDIA standalone Net profit decreased by 52.20% (YoY) to Rs 25.06 crore as against Rs 52.43
crore in Q1FY10. Net Sales increased by 45.32% (YoY) to Rs 850.45 crore as against Rs 585.24 crore.
NEGATIVE
ORCHID CHEM reported standalone Net loss of Rs 29.76 crore as against Net loss of Rs 31.65 crore in
Q1FY10. Net Sales increased by 6.31% (YoY) to Rs 305.82 crore as against Rs 287.66 crore.
PURAVANKARA PROJECT consolidated Net profit decreased by 83.45% (YoY) to Rs 10.24 crore as against
Rs 61.89 crore in Q1FY10. Net Sales decreased by 64.48% (YoY) to Rs 55.97 crore as against Rs 157.58
crore.
ADLABSFILM reported standalone Net loss of Rs 63.70 (YoY) crore as against Rs 2.32 crore in Q1FY10. Net
Sales decreased by 54.84% (YoY) to Rs 103.41 crore as against Rs 228.97 crore.
Calls for the 3rd August
RESEARCH: MARKET OUTLOOK: With the help of Firm trend in global markets, short covering in F&O segment and better than expected quarterly earnings, NIFTY extended gains of 1.76 percent in the preceding week. Q1 earning announcement for most of the heavy weight index stocks are almost over. Technically, the short-term sentiment would remain bullish and if NIFTY sustains above 4693 levels we may see the rally upto 4910 levels. The intraday key support is likely to be seen at 4573 and 4513 levels.
11:26 AM 8/3 RESEARCH - INTRADAY CALL ( CASH ) : SHORT SELL WIPRO BELOW 488 TGT 473 SL 495
(8/3/2009 12:41:47 PM): RESEARCH: EUROPEAN MARKET UPDATE : FTSE(-0.7%), DAX (-0.2%), CAC (-0.3%)
(8/3/2009 12:55:28 PM): RESEARCH - INTRADAY CALL ( CASH ) : BUY ZEEL ABOVE 190 TGT 197 SL 187
2:17 PM 8/3 RESEARCH : INTRADAY CALL (CASH) : BOOK PROFITS IN TATASTEEL
3:16 PM 8/3 RESEARCH:MONEY MORNING FUNDAMENTAL CALL:GITANJALI GEMS ACHIEVED TARGET
11:26 AM 8/3 RESEARCH - INTRADAY CALL ( CASH ) : SHORT SELL WIPRO BELOW 488 TGT 473 SL 495
(8/3/2009 12:41:47 PM): RESEARCH: EUROPEAN MARKET UPDATE : FTSE(-0.7%), DAX (-0.2%), CAC (-0.3%)
(8/3/2009 12:55:28 PM): RESEARCH - INTRADAY CALL ( CASH ) : BUY ZEEL ABOVE 190 TGT 197 SL 187
2:17 PM 8/3 RESEARCH : INTRADAY CALL (CASH) : BOOK PROFITS IN TATASTEEL
3:16 PM 8/3 RESEARCH:MONEY MORNING FUNDAMENTAL CALL:GITANJALI GEMS ACHIEVED TARGET
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