Category: Economy, Markets and Macro Views

UltraTech Cement and Samruddhi Cement, a wholly owned subsidiary of Grasim Industries, approved Samruddhi’s merger with UltraTech. Samruddhi shareholders will receive 4 shares of UltraTech at a face value of Rs 10 each for every 7 shares of face value Rs 5 each The deal will make UltraTech, the largest cement company in India and the 10th largest in the world.

Proposed merger earnings – The given share ratio is modestly earnings accretive for Ultratech. (more…)

Yesterday we covered Global Fund Managers views on the Indian Macro. Today we will cover directly on the equity markets, which is probably more interesting to you. Major drivers for Indian equity markets in FY10 would be liquidity flows and change in earnings.

A majority of the fund managers [65%] feel that the markets are fairly valued at the current levels. 20% rated Indian markets as Overvalued however, there are some other 15% who said that they are undervalued. (more…)

In the past 18 months, we have already told you that Analysts & Fund Managers views have always followed markets but not lead them. However, with signs of stability if not growth, fund managers views become important. In the light of these developments, we have refined few dozen reports and here is what these wealth managers are of the opinion of Indian Macro Environment.

We will cover the opinion of all the Billion Dollar Fund Managers View on Equity Markets (more…)

GVKPIL announced that its board approved acquisition of a 12% stake in Bangalore International Airport Ltd for consideration of ~Rs4.846bn from Flughafen Zuerich AG. GVK intends to fund the acquisition via debt. The company has also recently raised ~$150mn through the QIP route.

Bangalore airport is the 4th largest airport in India in terms of passenger traffic handled – it handled 9.2mn passengers in 2008. The airport is spread over 4,000 acres of land; with 215 acres of land earmarked for commercial development. (more…)

MPSEZ 2QFY10 recurring PAT grew +22%YoY despite slow growth in port income +5%YoY on rebound in high margin SEZ income +41% & 30% lower tax on SEZ benefit on port income. Adani Power has scaled-up its Mundra Project by 70% to 7.9GW, which will drive long-term assured volume for MPSEZ’s new coal terminal.

Mundra Port was one of the few Asian ports to report 2QFY10 cargo volume growth of +9%YoY to 10.1mmT led by liquid cargo +55% and crude cargo +43%, Coal cargo +19% despite Minerals (more…)

State Bank of India, the largest bank and banker to every Indian reported a 2Q FY10 net profit of INR24.9bn, up 10% y-o-y and 7% q-o-q. Even though NII growth was muted on a y-o-y basis on a q-o-q basis it was encouraging. The net interest margin recovered by 25bp q-o-q to 2.6%, led by the retiring of high-cost bulk deposits.

Key positives: margins, fees and costs have moved in the right direction – together. Margins were up 25bps qoq (from a low 230bps), but management’s guidance of a 10bp per quarter expansion will likely disappoint possibly higher market expectations. (more…)