Todays Market from Equitymaster http://www.equitymaster.com/tm.asp The happenings in the stock markets, including a pre-open and closing commentary. Todays Market from Equitymaster http://www.equitymaster.com/icons/eqtm_small1.gif http://www.equitymaster.com/tm.asp http://blogs.law.harvard.edu/tech/rss Realty stocks lose out http://www.equitymaster.com/tm/tm.asp?date=8/27/2014&title=Realty-stocks-lose-out
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The Indian equity markets held on to their gains in the final hours of trade. While the BSE-Sensex today closed higher by 117 points, the NSE-Nifty closed higher by 31 points. Midcaps and Smallcaps too closed the day on a positive note. While the BSE Mid Cap index closed higher by 0.7%, the BSE Small Cap index closed the day higher by 0.8%. However, while most sectoral indices posted gains, Metals and realty stocks were the losers today.

As regards global markets, Asian indices closed on a positive note today, with the Taiwan and Singapore markets posting the biggest gains. The rupee was trading at Rs 60.46 to the dollar at the time of writing.

Mining stocks have ended the day on a mixed note, with Hindustan Zinc and Sesa Sterlite closing the day with the biggest declines. As per a leading business daily, the former employees of Coal India have put forth demands for their pensions to be revised. Their rationale for this being that the current pension scheme was implemented over 15 years ago. As per this old pension scheme, some of the retired employees have been drawing Rs 73 per month. In fact, as per the daily, even a former chairman was entitled to as low as Rs 2,344 per month. Any such revision, depending on its quantum, will increase the employee costs for the company.

Auto stocks have ended the day on a positive note. Ashok Leyland and Tata Motors were among the top gainers today while Eicher Motors was one of the few losers. As per a leading business daily, with an aim to increase its market share, two wheeler major TVS Motors is planning to launch a new motorcycle in the commuter segment within the next 6 month. This would then be followed with a new 'Apache' in the premium category. The company expects that these launches would bring in additional sales of about 60,000 units in FY15. It is also looking at these launches as a means to increase its share in the two wheeler segment to 14.5% from about 12% in the year gone by.

This article (Realty stocks lose out) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.]]>
Wed, 27 Aug 2014 10:30:00 GMT http://www.equitymaster.com/tm/tm.asp?date=8/27/2014&title=Realty-stocks-lose-out
Indian share markets remain buoyant http://www.equitymaster.com/tm/tm.asp?date=8/27/2014&title=Indian-share-markets-remain-buoyant
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Indian share markets continued to trade higher in the post-noon trading session. Barring power and metal stocks, all the sectoral indices are trading in the green with consumer durables and auto stocks being the biggest gainers.

BSE-Sensex is up 120 points and NSE-Nifty is trading 30 points up. BSE Mid Cap is trading 0.7% up and BSE Small Cap index is trading up by 0.9%. The rupee is trading at 60.43 to the US dollar.

Most of the steel stocks are trading in the green led by Maharashtra Seamless and Jindal Saw whereas Bhushan Steel and Gujarat Mineral Development Corporation are trading in the red. As per a leading financial daily, Steel Authority of India (SAIL) has earmarked a capital expenditure of Rs 90 bn in FY15. The company wants to expand its crude steel production capacity from 12.8 million tonnes per annum (mtpa) to 21.4 mtpa at a cost of Rs 720 bn. The expansion plan will be funded through a mix of debt and equity. SAIL's debt-to-equity ratio stood at 0.59 for FY14. To part-finance its capex plans for FY15, the company plans to raise funds to the tune of Rs 50 bn through private placement of secured non-convertible bonds/debentures. SAIL stock is currently trading down 0.6%.

Majority of the food & tobacco stocks are trading in the green with Glaxo SmithKline Consumer Healthcare (GSKCH) and Tata Global Beverages being among major gainers. As per a leading financial daily, GSKCH has re-launched its health drink Horlicks in an instant form with a new packaging. The company claims the new HFD to be better miscible in hot and cold milk. GSKCH has been battling sluggish sales of HFDs. For the quarter ended June 2014, the company clocked a 10% domestic sales growth led by 7% higher realizations even as volume growth was muted at 3%. The company had made several innovative re-launches such as Mother's Horlicks, Horlicks Lite and Chocolate Horlicks in June 2014 quarter. GSKCH stock is currently trading up 1%.

This article (Indian share markets remain buoyant) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.]]>
Wed, 27 Aug 2014 08:00:00 GMT http://www.equitymaster.com/tm/tm.asp?date=8/27/2014&title=Indian-share-markets-remain-buoyant
Consumer durables lead the gains http://www.equitymaster.com/tm/tm.asp?date=8/27/2014&title=Consumer-durables-lead-the-gains
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After opening firm, the Indian Indices continued to trade above the dotted line during the morning trading session. Barring stocks from power and metal sectors, all sectoral indices are trading firm. Maximum buying interest is witnessed in stocks from consumer durables and IT sectors.

The BSE-Sensex is trading up by about 125 points. The NSE-Nifty is trading up by about 33 points. The BSE Mid Cap index is trading higher by 0.46% while the BSE Small Cap index is trading up by 0.85%. The rupee is trading at 60.49 to the US dollar.

Majority of Food and tobacco stocks are trading in the green with Britannia and Golden Tobacco being the top gainers. As per financial daily, Tata Global Beverages Ltd is planning to expand its drinking water portfolio. Reportedly, the company is having three brands under its drinking water portfolio, viz; mineral water brand 'Himalayan,' fortified drinking water 'Tata Water Plus,' and nutrient water brand 'Tata Gluco Plus'. These three brands currently contribute to about 1% to total sales. The company is now aiming to increase this segment's contribution to about 10% of revenues. In the recently held AGM, the company's chairman Cyrus Mistry, stated that the consumers are increasingly focusing towards healthy natural beverages. Thus the market size for such drinks is expected to move up going forward. The company is expected to leverage key consumer trends like health and wellness and develop market differentiated products in tea, coffee and water.

Majority of the automobile stocks are trading firm with TVS Motors and Tata Motors being the leading gainers. As per the financial daily, Hero Motorcorp is aiming to sell 12 m units by 2020. The company continues to remain the leading player in the global two-wheeler market with sales of over 6.2 million units during the last year. Reportedly, the company expects atleast 10% of the targeted volume for 2020 coming from overseas markets. In order to attain its target the company is building in new capacities. The company already has four plants and is further looking to add two more facilities to increase its output levels.

This article (Consumer durables lead the gains) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.]]>
Wed, 27 Aug 2014 06:00:00 GMT http://www.equitymaster.com/tm/tm.asp?date=8/27/2014&title=Consumer-durables-lead-the-gains
Indian share markets open firm http://www.equitymaster.com/tm/tm.asp?date=8/27/2014&title=Indian-share-markets-open-firm
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Asian stock markets have opened the day on a mixed note with stock markets in Hong Kong and Japan (down 0.3%) leading the losses. However, the stock markets in Taiwan(up 0.9%) and Singapore (up 0.5%) were leading the gains. The Indian share markets have opened the day on a firm note. All sectoral indices are trading in the green with consumer durables and realty indices leading the gains.

Both the BSE-Sensex and NSE-Nifty have opened on a positive note. The Sensex was trading higher by 126 points (0.5%) while Nifty was trading higher by 34 points (0.4%). Both mid and small cap indices have opened on a positive note. BSE Mid Cap index is up by around 0.8% and BSE Small Cap index is up by around 1.0%. The rupee is currently trading at Rs 60.46 to the US dollar.

PSU Bank stocks have opened the day mixed with UCO Bank and Central Bank leading the losses. However, Indian Bank and State Bank of India were leading the gains. As per a leading financial daily, in order to capture a larger share of the big-ticket loan market in large cities, three of the country's key lenders - State Bank of India, ICICI Bank and Punjab National Bank (PNB) - have cut the home loan rate. SBI has reduced the interest rate on home loans above Rs 75 lakh by 15 basis points to 10.15 %. Now that the slab system has been done away with, the bank will now offer home loans at a uniform interest rate, irrespective of the loan amount. ICICI Bank has also removed the different interest rate slabs on its home loans. The bank recently started offering loans of up to Rs 50 m to salaried individuals on a flat interest rate of 10.15 %. This offer is currently for loans availed till the end of this month but is likely to be extended. PNB is also now offering home loans of up to Rs 20 m at 10.25 %. For those above this, customers will be charged 10.5%. Earlier, the bank charged 10.25 % interest for loans of up to Rs 7.5 m and 10.50 % for the loans above that amount.

Energy stocks have opened the day mainly in the green with Oil India Ltd and Oil and Natural Gas Corporation (ONGC) leading the gains. However, GAIL(India) Ltd and Petronet LNG have opened in the red. As per a leading financial daily, the oil ministry will seek Cabinet nod for freeing diesel prices, now that the retail rates achieve parity with global levels. Also, the ministry has proposed to cut subsidy payout by upstream firm like Oil and Natural Gas Corporation (ONGC) by half. One must note here that a phased deregulation of diesel rates was started in January last year with up to 50 paise a litre increase in rate every month. As such, the under recovery on diesel now stands at Rs 1.78 per litre. By the end of October, the pump rates could come at par with international price. Before that, the ministry will approach Cabinet Committee on Political Affairs (CCPA) to change the under recovery burden sharing by oil firms. The ministry is proposing to split under recovery burden equally between the Government and upstream firms.

This article (Indian share markets open firm) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.]]>
Wed, 27 Aug 2014 04:00:00 GMT http://www.equitymaster.com/tm/tm.asp?date=8/27/2014&title=Indian-share-markets-open-firm
Will land acquisition become easier? http://www.equitymaster.com/tm/tm.asp?date=8/27/2014&title=Will-land-acquisition-become-easier
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Indian corporates are plagued by many problems at the moment. While they blamed the UPA government of policy paralysis many of the wounds were self inflicted. After the change in government, corporate India had high hopes. However, things have not proceeded in the way that they wanted. While showing the right intent, the government has been slow to push for decisive reforms. One of the most important issues that corporate India has raised is the Land Acquisition Bill.

This bill was passed in 2013 and was roundly denounced by corporate India. However, if the new Finance Minister is to be believed, some changes to the bill could be on the cards. As per him, even Congress state governments are opposed to the highly restrictive nature of this bill and have petitioned for changes. While the new law did add to the cost of land acquisition and it added an extra level of bureaucracy to the whole process (in terms of rehabilitating project affected people); it did have some positive aspects as well. For one thing, it brought about much needed clarity to the process. Secondly, it provided for sufficient remuneration for land holders and finally it made the process time-bound. However, India Inc was not happy and made no secret about it.

Now they might get a bit of a reprieve from the Modi government. What is interesting to note is that the FM has not stated what the changes might be or when the amendments will be brought in. The next Parliament session is three months away and the government clearly does not want to reveal its cards on this issue right now. The land acquisition bill quite literally stalled the process of land acquisition last year because corporates wanted to see what changes the new government might bring to the law. We will know the government's decision only when the amendments are cleared by the Union Cabinet. Until then large infra projects and manufacturing plants may remain stuck in bureaucratic red tape.

Do you think the government should make decisive changes to the Land Acquisition Bill? Do share your views on the Equitymaster Club.

This article (Will land acquisition become easier?) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.]]>
Wed, 27 Aug 2014 03:00:00 GMT http://www.equitymaster.com/tm/tm.asp?date=8/27/2014&title=Will-land-acquisition-become-easier