Indian Equity Research and Investment Strategy
How to Get More Returns in Mutual Fund SIP with Swing Strategy ?
Max Life Insurance – Revised Deal, Positive for Max Financial
Will the Digital Neo Banking Platforms Succeed in India ?
Should you own the Life Insurance Business ?
Does HDFC AMC deserve High Valuation ? Review
Valuation of Indian Markets & Relentless FII Selling
Why Indian StockMarket Quoting at High P-E ?
Why Value Investing Does not Work in India ?
RBI has reduced the Repo and Reverse repo rate under LAF window by 50 bps each to 5.0% and 3.5%, respectively with immediate effect.
The cut in policy rates by 50 bps each is likely to signal the banks to reduce their lending rates. The reverse repo rate 3.5% would make it less attractive for banks to park money with the RBI.
Now question arises – Can we expect rates to come down dramatically?
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Goldman Sachs in a report reiterates a SELL on ONGC primarily due to 5 main reasons – overseas growth strategy has not been very effective, unexciting execution track record in domestic business, limited focus on cost control, corporate governance issues with cash withdrawals by promoter [Government], and ONGC being structurally unattractive with downside from lower oil price but limited upside from price rebound. (more…)
Morgan in a report released just minutes ago has upgraded Marico Ltd to OVERWEIGHT with target price revised upwards.
Copra prices (Marico’s key input cost) have declined 10% in recent days. Similarly, Safflower oil prices, a key input for its edible oil business, have fallen 25% over the past couple of weeks. We believe this sharp fall in key input costs improves the probability for margin expansion in Marico’s hair care business and higher volume growth in its edible oil business. (more…)
Strong farming income, especially in northern India, and the ongoing wedding season boosted “two-wheeler” (motorcycles, scooters) sales. Hero Honda was the key beneficiary – sales volumes in February were up 24% y-o-y. We expect sales to be aided by elections, which will be held during April-May. However, the outlook remains bleak on exports; Bajaj Auto saw its exports decline 20% y-o-y.
Car makers also benefited from implementation of the Sixth Pay Commission recommendations in October 2008. Maruti Suzuki was the key gainer; the central government employees’ contribution doubled to 15% of its sales in January 2009. (more…)
We decided to run a Status Check of the Home Loan Market in India and found that the Growth Rate market has been continuously declining in the past 6 quarters. YoY Growth peaked in Q2 FY07 to a whopping 80% and fell for the next 2 quarters to touch 25% in Q1 FY08 and saw a momentary rise to 32% in Q2 FY08 and since then began its downward journey and is now recording a growth of mere 10% YoY. The following Chart shows the Home Loan Outstanding Vs Growth in Home Loan Disbursal.
Home Loan Lending Data for the Past 2 Months:
Top 5 Banks are as follows – No of Loan Accounts + Amount in Rs mn
SBI & Associates 6,970 2,605.7
Oriental Bank of Commerce 993 375.9
Syndicate Bank 1,528 336.8
Union Bank of India 1,228 301.5
Bank of Baroda 710 255.7
India Real Estate has mentioned from various research reports that the Realty market in India is headed for a deeper and longer correction. Historically, it is proved that Equity is a better investment over Real Estate as proved by Kotak Research.
Post Merger of Reliance Petroleum with Reliance Industries Ltd, here is what various brokerage house expect and recommend to investors.
ABN Amro:
RPET assets are likely to be taken over at their current book value. Expect minimal cost savings arising from the merger given that key cost elements like crude sourcing will have been optimised. Proforma post-merger EPS for FY10/11F drops by 1-3% due to the rise in RPET’s project costs rather than because of the merger itself.
Finally, ABN Amro recommends a (more…)
