Successfully reported this slideshow.
The World This Week
Dec 30, 2013 – Jan 03, 2014
Equity View:
There was a 1.6% correction in the Nifty last week esp. on the back of profit booking. In terms of major
dome...
News:
DOMESTIC MACRO:


Foreign direct investment (FDI) inflows into India declined by 36.6 percent in October to $1.23 b...
Indices:
Date

Sensex Midcap Auto Bankex

CD

CG

FMCG

HC

IT

Metals

O&G

Power Realty

Teck

30/12/2013 21,143 6,657 1...
Satadru Mitra

Varun Goel

Nupur Gupta

Jharna Agarwal

Kinjal Doshi

Disclaimer
The information and views presented here ...
Upcoming SlideShare
Loading in …5
×

The World this Week - December 30th to January 4th, 2014

347 views

Published on

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

The World this Week - December 30th to January 4th, 2014

  1. 1. The World This Week Dec 30, 2013 – Jan 03, 2014
  2. 2. Equity View: There was a 1.6% correction in the Nifty last week esp. on the back of profit booking. In terms of major domestic events, the earnings season is beginning in India. Infosys is expected to release its results on the 10th of this month. We are expecting IT as a whole to come up with decent numbers. We expect 3-5% QOQ USD revenue growth for most of the Tier-I IT companies. We also expect some margin expansion on the back of rupee depreciation that we had continued to see in the last quarter also. Considering the fact that the macro economic recovery in the US is significant, the demand environment continues to be robust. There are several new orders coming in therefore, we believe this trend of strong revenue dollar growth both in US & Europe should continue for some more time. Therefore we maintain a positive outlook in the IT space. Indusind Bank results are also coming by the end of this week. We expect a Net Interest Income growth of around 20-25% with a stable asset quality. We continue to like the Private sector banks esp. the Tier-I companies. We believe that these are the companies which are being well run and have managed their asset portfolios quite well as compared with some of the public sector peers. We believe that they will deliver an earnings growth in excess of 15% in the coming financial year and continue to maintain a positive stance. We expect the PSU Banks results to be muted with a stable asset quality and a single digit earnings growth. However their valuations are extremely attractive and we continue to like PSU Banks from valuations perspective. They are extremely cheap and have the potential to double from the current valuations in the next two-three years. A new development in Delhi is the announcement of electricity tariff cuts which would probably be followed with Haryana and Maharashtra. This reiterates our negative stance on the Power utility and generation space. If this populism spreads to other states, it would be a big negative for the power generation, transportation and transmission companies and we would continue to be away from this space in the foreseeable future.
  3. 3. News: DOMESTIC MACRO:  Foreign direct investment (FDI) inflows into India declined by 36.6 percent in October to $1.23 billion compared with $1.94 billion a year ago.  The output of India's key core infrastructure industries expanded by 1.7% in November.  CII Business Confidence Index for October-December surged to a six-quarter high at 54.9 from 45.7 in JulySeptember.  State Bank of India , the country's largest lender, raised 20 billion rupees ($323.34 million) through the sale of Tier 2 10-year bonds at 9.69 percent GLOBAL MACRO EURO  Corporate borrowing in the euro zone overall declined at the fastest pace on record, November's 3.9 percent drop comparing with a 3.8 percent decline on the year in the previous month.  Bank lending to Italian firms fell at an annual pace of 5.9 percent in November, the sharpest decline in the measure's 10-year history. That was also true for the euro zone's smallest economy, Malta, which recorded a 10.4 percent drop.  The number of people unemployed in Spain fell by 2.24 percent in December, the biggest drop ever for that month, and the second biggest fall since the data series began. United States  U.S. unemployment has dropped from a post-recession high of 10 percent in 2009 to 7.0 percent in November, while inflation remains close to 1 percent.  Construction spending in increased 1 percent to an annual rate of $934.4 billion, the highest level since March 2009.It was the eighth straight month that construction spending increased.  U.S. Manufacturing PMI rose to 55.0 last month, beating November's 54.7 reading and an initial December estimate of 54.4. China  The HSBC/Markit Economics services Purchasing Managers' Index (PMI) dropped to 50.9 in December, its lowest since August 2011, from 52.5 in November.
  4. 4. Indices: Date Sensex Midcap Auto Bankex CD CG FMCG HC IT Metals O&G Power Realty Teck 30/12/2013 21,143 6,657 12,252 12,986 5,811 10,243 6,571 9,945 9,067 9,985 8,788 1,691 1,431 5,043 31/12/2013 21,171 6,706 12,259 13,002 5,821 10,264 6,567 9,966 9,082 9,964 8,834 1,701 1,433 5,051 01/01/2014 21,140 6,737 12,275 13,010 5,873 10,269 6,577 10,019 9,022 9,985 8,802 1,702 1,475 5,041 02/01/2014 20,888 6,618 12,170 12,774 5,772 9,978 6,463 9,032 9,837 8,650 1,667 1,430 5,020 03/01/2014 20,851 6,659 12,030 12,775 5,800 9,807 6,483 10,015 9,230 9,718 8,540 1,638 1,442 5,119 9,946 -1.38% 0.03% -1.82% -1.63% -0.19% -4.26% -1.34% 0.70% 1.79% -2.67% -2.82% -3.13% 0.76% 1.50% Commodities and Currency: Date USD GBP EURO YEN Crude (Rs. per BBL) Gold (Rs. Per 10gms) 1/1/2014 2/1/2014 3/1/2014 30/12/2013 31/12/2013 61.93 61.90 62.41 62.00 61.90 102.39 102.74 102.54 102.17 102.01 85.12 85.16 85.20 85.19 85.36 58.83 58.79 59.90 58.86 58.97 6962 6895 6858 6858 6672 29252 29075 29392 29570 29877 0.06% Rupee Appreciated 0.37% Rupee Appreciated -0.28% Rupee Depreciated -0.24% Rupee Depreciated 4.17% -2.14% Debt: Tenor Gilt Yield in % (Friday) Change in bps (Week) 1-Year 8.76 -14 2-Year 8.52 5 5-Year 8.93 5 10-Year 8.84 4
  5. 5. Satadru Mitra Varun Goel Nupur Gupta Jharna Agarwal Kinjal Doshi Disclaimer The information and views presented here are prepared by Karvy Private Wealth (a division of Karvy Stock Broking Limited) or other Karvy Group companies. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended here may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned here, investors may please note that neither Karvy nor any person connected with any associated companies of Karvy accepts any liability arising from the use of this information and views mentioned here. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the abovementioned companies from time to time. Every employee of Karvy and its associated companies are required to disclose their individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Stock Broking Ltd. The information given in this document on tax are for guidance only, and should not be construed as tax advice. Investors are advised to consult their respective tax advisers to understand the specific tax incidence applicable to them. We also expect significant changes in the tax laws once the new Direct Tax Code is in force – this could change the applicability and incidence of tax on investments Karvy Private Wealth (A division of Karvy Stock Broking Limited) operates from within India and is subject to Indian regulations. Karvy Stock Broking Ltd. is a SEBI registered stock broker, depository participant having its offices at: 702, Hallmark Business plaza, Sant Dnyaneshwar Marg, Bandra (East), off Bandra Kurla Complex, Mumbai 400 051 . (Registered office Address: Karvy Stock Broking Limited, “KARVY HOUSE”, 46, Avenue 4, Street No.1, Banjara Hills, Hyderabad 500 034) SEBI registration No’s:”NSE(CM):INB230770138, NSE(F&O): INF230770138, BSE: INB010770130, BSE(F&O): INF010770131,NCDEX(00236, NSE(CDS):INE230770138, NSDL – SEBI Registration No: IN-DP-NSDL-247-2005, CSDL-SEBI Registration No:IN-DP-CSDL-305-2005, PMS Registration No.: INP000001512”

×