Tuesday, April 20th, 2010
1. How will we differentiate between private and Govt. upstream companies and which one is better and why?
In India, retail fuel prices are regulated by Govt. If the crude oil prices are high, Oil Marketing Companies (OMCs) bear under recoveries on sale of fuel at lower prices. As per Govt., public upstream companies has [...]
Tuesday, April 20th, 2010
Bank Sector
Rating: Positive
In 3Q 2010, our coverage universe reported positive growth in Net interest income (NII) with decent growth in advances except ICICI Bank. Net interest margins has grown up on back of falling cost of deposit as banks have bolstered their CASA base. We continue to have bullish view on sector since IIP (Index [...]
Tuesday, April 20th, 2010
Historically, Oil India Ltd. (OIL) has grown reasonably well compared to its peers and has shown its competitive advantage in the exploration and development of deep-seated thin reservoirs. We expect crude oil prices to remain around US$80/ barrel in near future, which does not pose any financial risk despite its share in subsidy burden. On [...]
Friday, February 19th, 2010
The Union Budget FY10-11 is expected to come on 26 Feb’10 and will be the next major trigger for the market.
Finance Minister is expected to provide guidelines for the introduction of the direct and indirect tax reforms i.e. the direct tax code (DTC) and the Goods & Services Tax (GST).
FM may increase excise duties to [...]
Friday, February 19th, 2010
Upstream Co: Positive
Downstream Co: Neutral
Gas Co: Positive
Q3 FY10 review: almost in line with our expectations
The Q3 FY10 results were broadly in line with our expectations. The upstream companies posted good profits during the quarter on account of higher average crude oil prices on YoY basis and higher GRMs. Commencement of Rajasthan field (Cairn India) and [...]
Friday, February 19th, 2010
Currently, I am positive on Oil and Gas sector. Keeping in mind the common man’ interest, we anticipate the partial implementation of Mr. Kirit Parikh ’s recommendations, which could lead to a re-rating of the entire sector. We expect a midway approach to these recommendations would improve the earnings visibility of OMCs and could lead [...]
Friday, February 19th, 2010
The dollar index has been rising from the last one month and seems to be heading higher. The stock market is inversely correlated to the dollar index. If dollar index starts falling from here, then we can see a good really in the stock market.
Bharat Forge, a steel forging and general engineering company, posted good [...]
Friday, February 19th, 2010
ACC Limited is India ’s leading manufacturer of cement, mainly into Bulk Cement and Ready Mix Concrete. In CY09, the company?s improved operational efficiency helped to gain a decent performance, despite lower volumes and reported 33% jump in its net profit. The net sales were up by 10% and OPM improved by 230 bps to [...]
Monday, December 28th, 2009
For India, 2009 till now, been a great year with the return of a stable government at centre, good FII inflow, 72% increase in the Indian stock market and less terror attacks. But H1N1 influenza and a series of bankruptcy by some big international giants are some events, which we never want to happen again.
Some [...]
Thursday, December 24th, 2009
Crude Oil
I have a 15 years’ crude oil seasonal price chart. This chart says that from January to September, crude oil prices increase substantially, mainly because of the summer vacation-driving season. Then, in September- October, it becomes sluggish and then in the month of November- December, demand for crude oil weakens because of the reduction [...]
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