Category: Economy, Markets and Macro Views

In 2008-09 budget, excise duty on non-filter cigarettes has been increased – for non filter plains, excise has gone up from Rs0.562/stick to Rs1.323/stick, whereas that for micros has gone up from Rs0.168/stick to Rs0.819/stick. Excise on filter cigarettes has not been increased; however, the overall weighted excise duty increase for ITC works out to 16%.

Micros and plains constitute 20% of ITC’s revenues. (more…)

This is one bit of very interesting data that our analyst pulled off and thought we share with all our readers here. If you are an investor using the Mutual Fund route, then very likely your fund managers has churned his portfolio depending on the table below. If you are wondering why your funds are under performing, then the reason is obvious, your Fund Manager failed to ride these sectors.

The data is being benchmarked against BSE 200 [Our recommended HDFC Top 200 Fund follows the same benchmark] (more…)

In a report released just a while ago, Kotak Securities has retained BUY on Mumbai’s Real Estate Giant – HDIL and also on Delhi based DLF. Kotak maintains a Neutral opinion on the overall sector.

DLF: Mid Income Housing – Zindabad
Excerpts after talking to the DLF management. Investors appear concerned about (1) the delay in the DLF Offices Trust (DOT) listing on commercial business, (2) DLF’s financial leverage, (3) DLF’s ability to ramp up its residential segment, and (4) financial estimates. (more…)

The highly uncertain external environment and risk aversion amongst global fund managers may keep Indian markets volatile for next few months.

We knew it for long that sub-prime loss will be booked on P&L, US economy was slowing down, food inflation is rising, European growth slowing down a tad, higher inflation is forcing central bankers in most growing economies to tighten monetary policy stance and valuations are unsustainably high in some emerging markets. Ameicans and FIIs just waited too long to accept this. (more…)

Infosys Technologies Ltd has proposed exit its holding in OnMobile said a report released just a while ago by HDFC Sec. The stock at 32x FY09E earnings estimates is expensive, considering that the only comparable peer listed, Tanla solutions is at 14x FY09E earnings. (more…)

In a report released just a while ago, Deutsche Bank [DB] AG has downgraded Bharti Airtel to HOLD from buy. DB is bullish on the long-term sector growth compared to the street and believe that the sector’s period of sustained out-performance is behind us. Bharti led to an exponential growth and a large revenue base (c18bn wireless revenues in 6-7 years) – a feat unmatched by any other sector in the last five years. However, both growth and margins are likely to be impacted as operators move deeper into the rural areas in search of revenues. A look back on Hindustan Unilever’s past performance reflects a similar dynamic. (more…)