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 Small caps shine today http://www.equitymaster.com/tm/tm.asp?date=9/19/2014&title=Small-caps-shine-today
Posted by Equitymaster
Facebook  Twitter  Visit Equitymaster on Google Plus!  More...

The Indian equity markets lost ground in the final hours of trade. While the BSE Sensex today closed lower by 22 points, the NSE-Nifty closed higher by just 7 points. Midcaps and Smallcaps outperformed the benchmark indices today. While the BSE Mid Cap index closed almost flat, the BSE Small Cap index closed the day higher by 0.6%. Sectoral indices closed the day on a mixed note, with IT stocks being the top gainers today.

As regards global markets, Asian indices closed on a mixed note today. The rupee was trading at Rs 60.80 to the dollar at the time of writing.

Auto stocks have closed the day on a mixed note led by the stocks of Escorts and Maharashtra Scooters. As per a leading business daily, Maruti Suzuki has announced that voting by minority shareholders with regards to its move to let its parent company Suzuki Motor Corp own and operate the Gujarat plant is likely to happen in November. This is as opposed to it happening in the month of October as planned for earlier. The company's management has expressed that because it is a long procedure, the company has not yet been able to put all the things in place. And thus the delay by a month.

Tata group stocks have closed the day on a strong note after leading ratings agency Moody's upgraded the rating of several group entities. Tata Sponge and Tata Elxsi were the biggest gainers today. Moody cited that a support from the parent, Tats Sons, has been critical factor in raising the ratings. A rise in rating is beneficial for the group companies. A higher rating reflects better financial strength and thus reduces the cost of debt if the company ever needs to borrow in future.

This article (Small caps shine today) 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.]]>
Fri, 19 Sep 2014 10:30:00 GMT http://www.equitymaster.com/tm/tm.asp?date=9/19/2014&title=Small-caps-shine-today
Indian stock markets remain buoyant http://www.equitymaster.com/tm/tm.asp?date=9/19/2014&title=Indian-stock-markets-remain-buoyant
Posted by Equitymaster
Facebook  Twitter  Visit Equitymaster on Google Plus!  More...

Indian share markets pared gains but continued to trade above the dotted line in the post-noon trading session. Barring IT and pharma stocks, all the sectoral indices are trading in the red with capital good and realty stocks being the biggest losers.

BSE-Sensex is up 34 points and NSE-Nifty is trading 17 points up. BSE Mid Cap is trading 0.2% up and BSE Small Cap index is trading up by 0.6%. The rupee is trading at 60.81 to the US dollar.

Most of the automobile stocks are trading in the red with Hero MotoCorp and Ashok Leyland being the biggest losers whereas Escorts and Force Motors are trading in the green. As per a leading financial daily Hero MotoCorp has signed an agreement with the Andhra Pradesh government for the set up of a manufacturing plant. The two-wheeler manufacturing plant will be set up in the Chittoor district. As per the Memorandum of Understanding, the main plant with a capacity of 1.8 million two wheelers will be set up at Satyaveedu at a cost of Rs 16 bn. The plant will come on-stream in a phased manner. In addition, the company will be investing Rs 15 bn in ancillary units.

Food & tobacco stocks are trading mixed today. Tata Global Beverages is trading higher, while Britannia is trading in the red. As per a leading business daily, ITC is planning to enter into Rs 60 - 70 bn home workship or pooja market with incense products. The market is natural extension to the company's agarbatti business brand Mangaldeep. In a soft launch, the company has brought out packaged sambrani/dhuno, dhoops and combo packs of agarbatti stands, diyas and candles, along with its line of Mangaldeep agarbattis. ITC is also evaluating other associated product categories such as kumkum and haldi. The company considers the market as a big potential area as it has already been operating in the agarbatti space for the last 10 years with a ready supply chain, including supplies to temples, specialty pooja stores and grocery stores. ITC is trading down by 0.4% today.

This article (Indian stock 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.]]>
Fri, 19 Sep 2014 08:00:00 GMT http://www.equitymaster.com/tm/tm.asp?date=9/19/2014&title=Indian-stock-markets-remain-buoyant
IT stocks in favour today http://www.equitymaster.com/tm/tm.asp?date=9/19/2014&title=IT-stocks-in-favour-today
Posted by Equitymaster
Facebook  Twitter  Visit Equitymaster on Google Plus!  More...

After opening firm, the benchmark Indian Indices have continued to trade above the dotted line in the morning trading session. The software and realty stocks are the leading gainers in the pack. Stocks from FMCG, Capital goods sector are in red today.

The BSE-Sensex is trading up 30 points. The NSE-Nifty is trading up 16 points. The BSE Mid Cap index is trading up 0.4% and BSE Small Cap index is trading up 0.6%. The rupee is trading at 60.85 to the US dollar.

Most of the automobile stocks are trading higher today. Escorts Ltd and Eicher motors are leading the gainers. As per a leading business daily, automobile major Mahindra and Mahindra (M&M) has entered into deal with snapdeal for selling the new variant of Scorpio. This is a new trend seen in e-commerce site in India. Snapdeal has started accepting pre bookings for Scorpio. Reportedly, the new version of Scorpio will be unveiled on September 25. And this attempt by M&M's to use of an online channel will be viewed as an endorsement of the potential of e-commerce sites to drive sales volumes. After prebooking the new Scorpio on Snapdeal by paying Rs 20,000, customers can go to a dealer to make the full payment and take delivery.

Majority of Indian pharma stocks are trading firm with Panacea Biotech and Piramal Enterprises being among the leading gainers in the pack. As per the financial daily, the national pharmaceutical pricing authority (NPPA) has capped the prices of 19 medicines and their 43 different drug packs, including anti-infectives, gastro-intestinal drugs and vaccines. This move is expected to impact various Indian and MNC pharma companies like; Ranbaxy, Cipla, Cadila, Lupin. And among the MNC pharma companies Pfizer, and Sanofi. The latest tranche of price control includes key medicines such as ciprofloxacin, cefotaxime, BCG vaccine and rifampicin. Recently, the NPPA had brought all diabetes and cardiac medicines under indirect price control. The regulator is likely to extend the move to other categories, such as oncology, soon.

This article (IT stocks in favour today) 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.]]>
Fri, 19 Sep 2014 06:00:00 GMT http://www.equitymaster.com/tm/tm.asp?date=9/19/2014&title=IT-stocks-in-favour-today
Indian share markets open in the green http://www.equitymaster.com/tm/tm.asp?date=9/19/2014&title=Indian-share-markets-open-in-the-green
Posted by Equitymaster
Facebook  Twitter  Visit Equitymaster on Google Plus!  More...

Barring China (down 0.2%), all major Asian stock markets have opened the day on a firm note with the markets in Japan (up 1.5%) and South Korea (up 0.4%) leading the gains. The Indian share markets have also opened the day on a positive note. Barring the consumer durables and FMCG indices, all sectoral indices are trading firm with power and realty indices leading the gains.

The Sensex today is up by around 72 points (0.3%), while the NSE-Nifty is up by about 27 points (0.3%). The mid and small cap stocks are also trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.85% each. The rupee is currently trading at Rs 61.06 to the US dollar.

Information technology stocks have opened the day in the green with Info Edge Ltd and Mphasis Ltd leading the gains. As per a leading financial daily, India's second largest software exporter Infosys has announced new partnerships with Microsoft, Hitachi Data Systems (HDS) and Huawei. The aim of these partnerships is to deepen its product offerings in new disruptive areas, including cloud and big data analytics, communication, infrastructure and data centre transformation segments. It must be noted that Infosys is already a systems integration partner of Microsoft. It will now establish a global 'centre of excellence' for Microsoft Azure Machine Learning that will train over 1,000 engineers by the end of financial year 2014-15. Its partnership with HDS, a subsidiary of Japan's Hitachi, will offer enterprises infrastructure and data centre transformation solutions. It will also set up a centre of excellence for 'pay-per-use' solutions. Lastly, the company's partnership with Huawei is to help the Chinese firm expand its solutions in cloud, big data and communication space.

Indian Pharma stocks have opened the day on a firm note with Panacea Biotech and Biocon Ltd leading the gains. As per a leading financial daily, Bangalore-based biotechnology firm Biocon has stated that Silver Leaf Oak (Mauritius), an investment vehicle advised by India Value Fund Advisors, has agreed to acquire a minority stake of 10% in its research services arm, Syngene International Ltd, for Rs 3,800 million. It must be noted that the stake purchase comes a week after GE Capital exited from its 7.69% stake in Syngene, which was bought by Biocon Research (BRL), another subsidiary of Biocon, for Rs 2,153.8 million. Now, Biocon and BRL will jointly hold 85.54% stake in Syngene, while Silver Leaf Oak will hold 10%. The balance 4.46% shareholding is held by some entities such as trusts and employees stock options. It is worth noting that Biocon has been looking to list Syngene International on the Indian bourses. However, the timeline for an IPO has not been indicated so far. The research services arm reported revenue of Rs 7,150 million in FY14, reporting a growth of 28%.

The stake purchase by Silver Leaf Oak gives Syngene a higher valuation at R3,800 crore compared to around R2,800 crore at the time of GE Capital's exit on September 9.

This article (Indian share markets open in the green) 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.]]>
Fri, 19 Sep 2014 04:00:00 GMT http://www.equitymaster.com/tm/tm.asp?date=9/19/2014&title=Indian-share-markets-open-in-the-green
Lowest credit growth disproves economic recovery claims http://www.equitymaster.com/tm/tm.asp?date=9/19/2014&title=Lowest-credit-growth-disproves-economic-recovery-claims
Posted by Equitymaster
Facebook  Twitter  Visit Equitymaster on Google Plus!  More...

It's a favorable change of season for Indian equity markets... from almost a hopeless scenario to Sensex touching new highs. Much of this turn in sentiments can be attributed to the confidence Modi Government has instilled in people. People expect reforms, development and a turn around in the Indian economy now.

But has anything really changed on the ground level? Some of the key economic indicators do not suggest so. As highlighted by The Hindu Business Line, banking credit growth of 10.9% has hit the lowest level in last five years; lower than even the worst phases in the Indian economy. The sector itself has been a victim of the prolonged slow down in the Indian economy. During the slowdown, investment activity by companies has taken a back seat. Lot of projects are still stalled due to the issues like lack of clarity on policies, land availability, power and labour issues. Unless strong action is taken regarding these aspects, new projects are unlikely to be undertaken, leaving less hope for revival in the credit growth rate.

And it's not just the lack of demand that is in play here. The increase in bad assets in the banking sector and focus on better risk management has made banks wary of extending loans. High inflation is another reason why credit growth is likely to remain low. Unless inflation levels in the economy come down, interest rates are unlikely to be lowered, thus impeding the growth rate in credit offtake.

In such scenario, can we really claim that an economic recovery is in sight? We don't think so. Unless Government takes some tangible and quick actions. to revive the investment cycle! And while there is a lot of optimism in this regard, the actions seem to be lagging far behind.

This article (Lowest credit growth disproves economic recovery claims) 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.]]>
Fri, 19 Sep 2014 03:00:00 GMT http://www.equitymaster.com/tm/tm.asp?date=9/19/2014&title=Lowest-credit-growth-disproves-economic-recovery-claims