Pre-budget correction playing out – Merrill
January 31, 2010
A pre-budget correction in the Indian equities market is playing out with the rise of CRR. Analysts expect a market consensus on increased excise duties in the budget in February end as the Government scales back its fiscal stimulus program. Bofa-Merrill sees a weakness in the markets over next few weeks in the run up to the budget that may offer a better buying opportunity. Read more
CRR Hike and Impact on Indian Banks
January 29, 2010
The Reserve Bank of India (RBI) often likes to spring a small surprise, and today’s meeting was no exception. Contrary to market expectations, the RBI raised the CRR by 75bps v/s expectations of 50bps. RBI has raised its growth estimate for FY10 from 6% with an upward bias, to 7.5%.
The RBI raised its inflation projection, it has stated that inflation expectations are on the rise and warned of further upside risks emanating from: oil, below average monsoons in 2010, and capital flows. Read more
Credit Suisse Downgrades India to Underweight
January 29, 2010
In a somewhat very surprising move, Credit Suisse Research has sent tremors with FIIs and other P-Note account holders by downgrading India Directly to Underweight from Overweight.
Credit Suisse in a research note said that on P/BV versus ROE valuation model, Read more
Vascon Engineers + Aqua Logistics and Other Reviews
January 28, 2010
Due to some personal work and migration of the blog to new publishing platform, we have posted the reviews of IPOs on the Forum.
You can read the review of Syncom Healthcare, Vascon Engineers, and Aqua Logistics . WE hope to be back to publishing individual reviews soon. Brokerage / Analyst reviews will continue on the Forum.
Big Monetary Policy Coming this Friday
January 25, 2010
Ahead of RBI’s monetary policy on Friday, 29 Jan, the domestic Macro scenario has improved with industrial production at 10-11% growth, inflation with the Dec reading crossing the RBI’s Mar 10 target of 6.5% and Loan growth returning to the double-digit range.
The street expects the RBI to begin normalizing rates with a 25-50bp increase in the CRR and 25bp increase in repo and reverse repo rates. Surprise could also be a withdrawal/roll-back of some of the liquidity injection measures taken during the crisis. Read more
Bharti Airtel Impressive Q3 FY2010 – Buy
January 25, 2010
Some of they things to observe from Bharti Airtel’s Q3 FY 2010 results are – RPM declined 8% qoq to Rs0.52 vs. our estimate of 11%,
implying lower than estimated impact of tariff cuts in 3QFY10, Capex
declined 26% qoq to Rs16.9 bn. Enterprise/ Telemedia revenues declined 4% QoQ.
Continued increase in Network Operation expenses poses downside risk to margins. Continued increase in SG&A expenses poses downside risk to margins. Airtel DTH segment results reported for the first time and EBITDA loss of Rs2.5bn in 3Q. Read more
