Indian IT sector The changing contours of growth:: HSBC Research

 Traditional outsourcing deals are unlikely
to drive the next industry up-cycle
 Newer growth areas are coming up, but
deals are small and cyclical in nature
 Despite higher valuations, we continue
to prefer TCS. We shave our PE-based
target price for Infosys modestly

Solar Industries - Explosive growth; initiating coverage; Buy : Edelweiss PDF link

Solar Industries (SOIL IN, INR 851, Buy)

Solar Industries (SIIL), market leader in the domestic industrial explosives segment and largest Indian exporter, is poised to sustain its fast-paced growth on back of its leadership position and high entry barriers in explosive industry. Moreover, with the company expanding geographically via exports as well as scaling up overseas manufacturing operations, surge in profitability is imminent. Its proposed defence project provides growth visibility even beyond next two-three years. Initiate coverage with ‘BUY’.

TK Prestige - conference call transcript-8-May-12 : Edelweiss PDF link

Please find enclosed the transcript of the conference call with TTK Prestige held on 8th May, 2012. TTK Prestige - conference call transcript-8-May-12

Regards,

Special Market Commentary . Sanjeev Zarbade- Senior Vice President, Kotak Research

Special Market Commentary . Sanjeev Zarbade- Senior Vice President, Research

.

The Sensex opened strongly on the back of positive Asian market cues. Reports indicated that the PM is meeting to discuss expediting infrastructure projects that have been delayed due to various reasons. Following this, Infrastructure stocks were among the major gainers. Apart from this, hopes of rate cut by the Reserve Bank of India has fuelled rally in bank and auto stocks. Market sentiment was further boosted by firm European markets. European equities are rallying today on hopes that policy makers at ECB will unveil fresh monetary stimulus measures when it meets today.

ICICI Prudential Capital Protection Oriented Fund II - Series X- 36 months plan

We are pleased to launch ICICI Prudential Capital Protection Oriented Fund II Series X - 36 Months Plan with following features:

Tenure	:	1100 days
NFO Period	:	6th June to 20th June 2012
MICR cheques	:	20th June 2012 MICR cheques
RTGS and transfer cheques	:	Till end of business day on 20th June 2012
Switches	:	Till cut off time(specified for switch outs in the source scheme) 20th June 2012
Tentative Date of Allotment	:	26-June-2012 (Ops to confirm)
Date of Maturity	:	30-Jun-15
Option to be launched	:	Cumulative and Dividend Payout- Default Sub Option - Cumulative
Entry / Exit Load	:	Nil
Minimum Application Amount	:	Rs.5000 and in multiples of Re.10 thereafter
Liquidity	:	To be listed
Benchmark	:	CRISIL MIP Blended Index.

Automobiles - Raising excise duty not a solution : Edelweiss PDF link

As per press reports, the Ministry of Finance is considering raising the excise duty on diesel vehicles. Our analysis suggests that the break-even kilometre (BKM) needed to recover higher acquisition cost of diesel vehicle has gone up by 10% in the last six months due to larger discounts on petrol models despite a sharp spike in petrol prices. However, the demand is ever more tilted towards diesel vehicles as buyers are more concerned about running cost than the acquisition cost. An incremental hike of 2% in state duties by Maharashtra in April also did not affect the demand. To restore the BKM to FY10 levels, the government would have to raise the excise duty by a steep 6% which seems highly improbable given the stand taken in the Budget and the recent fall in crude prices. An excise duty hike of 2%-3% is not likely to materially alter the demand.    

NSE, Bulk deals, 06-Jun-2012

Date Symbol Security Name Client Name Buy / Sell Quantity Traded Trade Price / Wght. Avg. Price Remarks 06-Jun-2012 JINDALSWHL Jindal SouthWest Hold Ltd SWISS FINANCE CORPORATION (MAURITIUS) LIMITED SELL 99,000 562.20 - 06-Jun-2012 KFA Kingfisher Airlines Ltd. TRANSGLOBAL SECURITIES LTD. BUY 51,46,363 11.43 - 06-Jun-2012 KFA Kingfisher Airlines Ltd. TRANSGLOBAL SECURITIES LTD. SELL 51,41,363 11.46 - 06-Jun-2012 LITL Lanco Infratech Limited SUNTECK WEALTHMAX CAPITAL PRIVATE LIMITED BUY 190,97,255 12.86 - 06-Jun-2012 LITL Lanco Infratech Limited SUNTECK WEALTHMAX CAPITAL PRIVATE LIMITED SELL 182,53,432 12.87 - 06-Jun-2012 MANGTIMBER Mangalam Timber Pro Ltd DEERGOLD AGENCIES PVT LTD BUY 1,50,000 31.50 -

Stocks in News : 6 June: Edelweiss

Stocks in News

EGoM calls for auction of 13.75 MHz spectrum (ET)

RBI directs banks to end pre – payment charges on floating rate home loans (ET)

Reliance Gas, GAIL may lose licences for D6 gas pipelines (ET)

Australia defers nod to GVK`s coal project (ET)

Elder Pharma launches anti – fungal drug in India (ET)

Eicher – Volvo venture mergers three units (ET)

Lupin gets US FDA nod (DNA)

Essar Oil raises Vadinar capacity to 20 mtpa (DNA)

HPCL keen on oil refinery at Barmer (BS)

GAIL raises INR 7.5bn from bonds (BS)

Pipavav Port board approves expansion plan entailing an investment INR 109.72bn (BS)

Edelweiss Technical Reflection (ETR) 6 June

Edelweiss Technical Reflection (ETR)

Nifty was unable to build onto the gains of Monday as it faltered at the 4900 mark and ended the previous session on a flat note. The index traded in a narrow range of 52 points, gaining in the first half and shedding the gains by the close of day. The lack of bullish follow through and the resultant ‘doji’ candlestick pattern indicates doubt among the participants regarding the short-term direction of the market and could keep the trade lackluster. Volumes continue to be lethargic and the market breadth improved marginally in favour of advances. Momentum indicators have turned sideways and thus are unable to give a directional cue. In the near term we expect Nifty to oscillate within a trading range of 4945 (21 DEMA) and 4770, before a clear break is achieved. The underline trend however remains down and rallies to resistance should be used to create short positions.

Sectroal trends continued to remain mixed with gains coming from Cap Goods (+2%), Banking (+0.82%) and Power (+0.80%) indices, whereas losses were witnessed in stocks from Realty (-1.37%), FMCG (-1.10%) and Metals (-0.27%) indexes. The Mid-cap and Small-cap indices closed the session with gains of 0.33% and 0.21% respectively.

Bullish Setups: LT, HPCL, BPCL, DLF

Bearish Setups: DRRD, LICHF, APTY

Regards,

FII DERIVATIVES STATISTICS FOR 06-Jun-2012

FII DERIVATIVES STATISTICS FOR 06-Jun-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	74342	1778.36	74334	1818.63	319438	7776.56	-40.26
INDEX OPTIONS	712585	17404.74	679981	16491.02	1508261	37672.82	913.72
STOCK FUTURES	75976	1856.06	55204	1277.78	907961	21664.07	578.29
STOCK OPTIONS	33654	847.35	34448	865.18	33259	829.76	-17.83
						Total	1433.91

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FII & DII trading activity across NSE and BSE 06-06-2012

Category	Buy	Sell	Net
	Value	Value	Value
FII	3310.26	3041.05	269.21
DII	1411.75	922.61	489.14

 

 

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Sovereign Rating Implications Of A Possible Greek Withdrawal From The Eurozone - S&P

In 13 days Greece returns to the polls in another attempt to elect a viable government. The fate of Greece's position within the European Economic and Monetary Union (eurozone) could hang on the outcome. But if Greece were to exit, what would be the impact on the country, its creditors, including the European Central Bank (ECB, AAA/Stable/A-1+), and the eurozone as a whole?

Here, Standard & Poor's Ratings Services provides its views on questions investors and others have asked on the potential implications should Greece indeed abandon the euro.

FREQUENTLY ASKED QUESTIONS (see below)

Indian Telecoms More spectrum likely, change in reserve price unlikely  HSBC Research

Indian Telecoms
More spectrum likely, change in reserve price unlikely
 Spectrum reserve price unlikely to be revised downwards
 Don’t expect meaningful participation from incumbent telcos,
RIL participation debatable
 Retain OW on Bharti and TP of INR406

Unitech Ltd (UT IN) UW (V): From bad to worse  HSBC Research

Unitech Ltd (UT IN)
UW (V): From bad to worse
 4Q earnings were c97-98% below HSBCe and consensus as
execution and EBITDA margin disappoint once again
 A lack of new launches hurt contracted sales (-17% q-o-q);
we cut our earnings forecasts by 12-15% in FY13-14
 We retain our UW(V) with a revised TP of INR20 (from
INR25); we think any re-rating would need more visibility on
execution and new launches

Pharmaceuticals - Q4FY12 Result Review - Decent growth momentum: Edelweiss PDF link

Our pharma universe’s Q4FY12 results were skewed on account of FTF sales of a few higher value opportunities (Lipitor, Doxil, among others), higher other income, MTM gain and year-end adjustments, which impacted performance versus our expectation. Overall reported revenue growth was 34%YoY. While EBITDA margins jumped 442bps YoY, PAT grew 54% YoY. Adjusted for one-offs, recurring revenue grew 22% YoY and PAT rose 19% YoY, in line with our expectation. Core EBITDA margins soared 285bps YoY, however, dipped 172bps QoQ due to lower gross realizations. We highlight that despite margin expansion, PAT growth was lower due to higher tax provision during the quarter. We believe that earnings growth maintained a decent double-digit trend and owing to lower risk appetite, the pharma universe outperformed the market.

Spain: The cost of doubt ::BNP Paribas

Spain: The cost of doubt
Uncertainties surrounding banks’ bailout are costly for Spain. Spain’s
10-year spread over Germany exceeds 500 basis points, compared
with half that a year ago. Above all, it is the lack of visibility that
undermines investors’ confidence. They are clearly reluctant to fund a
recapitalisation if they don’t know the extent of the whole problem.
Yet, even if the government undertook the complete recapitalisation
of the banking sector, and assuming it amounted to €100bn, that
would represent 10% of GDP, far short of the 45% of GDP needed in
Ireland. It would be definitely better to get an accurate and final
estimation from an independent body of the total bill for bailing out
Spanish banks than getting gradual and partial news.

Fixed Deposit @ 12.50 % to 15.07 % p.a. - J P Associates Ltd

Now as the RBI has already started reducing the interest rates and another cut is expected in next policy review on 16th June, the high interest rates may soon be a thing of past. We have observed that all the banks & most of the corporate have already reduced the Fixed Deposit Rates but in few FD schemes the rate cut is expected in next few days..

How to change bank mandate in Mutual Funds : Economic Times

At the time of investing in a mutual fund, it is mandatory to provide bank account details. While mutual funds provide investors the option to register multiple bank accounts, one can choose to give the details of only one account.

If there is a change in the bank account details, it is essential for the investor to register it with the mutual fund to ensure that dividends and redemption proceeds are credited to the new operational account. Investors can change the details by submitting a change of bank mandate form, along with supporting documents, at the mutual fund office or investor service centre.

Procedure: Details of the new bank account, including the type of account, branch details, magnetic ink character recognition ( MICR) code, and the Indian financial system code ( IFSC), if available, have to be provided.

Signature: The form has to be signed by all the holders of the folio according to the mode of holding.

Documents: The investor needs to submit any one of the following documents as evidence of the registration of details-cancelled original cheque leaf, letter from the bank on its letterhead certifying that the unit holder maintains an account with the bank, or a copy of the bank pass book, or a statement of bank account certified by the bank manager.

Points to note

The first holder of the folio should be one of the holders of the new account.

One should submit the request for change in bank details and ensure that it has been processed at least seven days before submitting any redemption request. If the change in bank mandate has not been processed, the payment is made to the existing bank account.

The change in bank mandate will apply to all the schemes held under a folio.

6 June: Sales Traders Commentary: Edelweiss

Sales Traders Commentary

On Tuesday, the Indian equity market ended a volatile session on a flat note with positive bias, amid ongoing worries over euro zone and volatility in rupee. Both Sensex and Nifty gained marginally by 0.15% each. Capital goods, financial, power, & oil&gas stocks traded higher while realty, FMCG and consumer durables stocks suffered selling pressure.  

While the Sensex closed at 16020, up 33 points, the Nifty jumped 16 points to end the day at 4863.

Major gainers were Larsen & Toubro (3.08%), NTPC (1.98%), State Bank Of India (1.66%), Hindalco Industries (1.60%), Bharat Heavy Electricals (1.47%), and H D F C Bank (1.45%).

Major losers were Tata Motors (3.15%), Bharti Airtel (2.58%), I T C (1.89%), D L F (1.48%), Coal India (1.09%), and Hindustan Unilever (1.07%).

The Capital Goods index was up 2.00%. Major gainers were Havell`S India (3.51%), Crompton Greaves (2.53%), Alstom Projects India (2.01%), Bharat Heavy Electricals (1.47%) and Lakshmi Machine Works (1.42%).

The Bankex jumped 0.82%. Major gainers were Canara Bank(3.16%), Bank Of Baroda (1.8%), H D F C Bank (1.45%), Bank Of India (0.94%), and Federal Bank (0.59%).

The Power index gained 0.80%. Major gainers were Crompton Greaves (2.53%), Reliance Infrastructure (2.43%), Bharat Heavy Electricals (1.47%), Lanco Infratech (1.4%), and JSW Energy (1.28%).

The Realty index was down 1.37%. Major losers were D B Realty (3.37%), Housing Development and Infrastructure (1.77%), D L F (1.48%), Oberoi Realty (1.35%), and Sunteck Realty (0.79%).

Major gainers in the mid-cap space were Bajaj Corp. (2.61%), Alstom Projects (2.01%), Apollo Hosp. (1.83%), Bajaj Elect. (1.77%),EID Perry (1.14%), and  Bank of Maharashtra (0.91%).

Major gainers among small caps were AP Paper (5.28%), Dishman Pharma (4.59%), Bharat Bijlee (2.53%), Bilcare (2.52%), Elder Pharma (2.25%), Aarti Inds (1.93%), and Elgi Equipments (1.17%).

  

Globally, Asian indices ended on a higher note while European indices were trading mixed.

TVS Motors: Hold: Business Line

Front-running and bulk deals in India: Senior Researcher, Centre for Investment, Indian School of Business, Hyderabad in Business Line

6 June: Business News Tablet (click on link to read article): IFCI Financial Services Limited

Business News Tablet (click on link to read article)

Economic Times		Business Standard
Ø  FDI in aviation to be revived soon: Ajit Singh Ø  Global coal prices cool, but weak rupee worries importers Ø  Spectrum auction: 8 slots, min 10 Mhz to be sold Ø  Euro zone: Spain says no need for bailout despite mkt woes Ø  Gujarat Pipavav Port board approves expansion plan Ø  Hudco plans to raise Rs 10K cr through tax-free bonds		Ø  Rupee near 56-level on euro, oil firms Ø  Oil near $100 still a threat to global economy: IEA Ø  Gold rises on fresh buying support Ø  India has institutional capacity to become world power: Blake Ø  Suzlon announces new turbine with up to 29% more output Ø  Morgan Stanley's infra PE fund in talks to buy Lanco's road assets
Business Line		Mint
Ø  Airtel, Voda, Idea write to FM against refarming move Ø  Jet Airways to begin Mumbai-Kuwait 2nd service Ø  Steel cos profit margin to remain under stress: Fitch Ø  GAIL issues Rs 750 cr bonds; oversubscribed 5 times Ø  TV18, Viacom18 form jt venture to consolidate distribution functions Ø  Elder Pharma launches anti-fungal drug		Ø  ONGC may bid for $5 bn Conoco oil sands assets: source Ø  Australia delays approval of $9.7 bn coal project by GVK Ø  Essar Oil completes Vadinar refinery expansion Ø  Govt mulling divestment in RCF, NFL Ø  Markets gain on banks; rate cut hopes continue Ø  Govt unveils seven-point strategy to boost exports
Financial Express		Financial Chronicle
Ø  Spain sends market access SOS as G7 ministers meet Ø  India's growth forecast slashed to 5.8% Ø  Stop home loan prepayment penalty: RBI Ø  RINL defers IPO on volatile market Ø  Govt to revive SEZ, issue new guidelines		Ø  Lupin receives USFDA approval for antibiotic capsules Ø  Lenovo says rupee fall bleeding hardware industry Ø  India prepares contingency plan for euro zone meltdown Ø  Bajaj Hindustan posts net loss of Rs 35.65 cr in H1 of FY12 Ø  Qualcomm challenges lesser validity period for its spectrum

   (Click on link to view article)

Thanks and Regards

IFIN: IFCI Financial Services Limited