F&O expiry: Sensex tanks 1,115 pts on global sell-off; Nifty ends at 10,806
All that happened in the markets today
 "F&O expiry: Sensex tanks 1,115 pts on global sell-off; Nifty ends at 10,806")
In the broader market, the S&P BSE MidCap index dropped 2.14 per cent to 13,933 levels.
8:30 AM
BROKERAGE VIEW :: HDFC Securities on Cement sector
>> We believe the north and central cement markets in India are in a sweet spot. Despite muted demand, cement prices in these regions have been buoyant, driven by troika of considerable regional consolidation, high clinker utilisation, and a limited influx of new entrants.
8:27 AM
BROKERAGE VIEW :: MOFSL on Oil & Gas sector
Gujarat Gas (Buy at Rs 360)
>> With ~400 CNG outlets, GUJGA sells only 1.5mmscmd of CNG v/s 4.5mmscmd that IGL sells in NCR alone. GUJGA is expected to establish ~100 CNG stations over the next 2 years, increasing its penetration in the CNG segment.
>> We believe the company should see a major volume boost at ~10% CAGR over the medium term on the highest volume base among peers.
>> Capex plans for FY21 stand at INR6–7b v/s INR5.8b in FY20 (GUJGA plans to fund capex through internal accruals only)
IGL (Neutral at Rs 470)
>> Management remains confident of achieving double-digit growth from next year. For FY22, we build-in volume growth of 14% over FY20 levels to 7.6mmscmd (v/s 6.4/4.6mmscmd in FY20/FY21).
MGL (Buy at Rs 1,200)
>> MAHGL has gas pipeline connectivity in three of the four GAs classified by NGT under polluted areas (and is prepared to supply gas in the fourth GA via a virtual
>> With ~400 CNG outlets, GUJGA sells only 1.5mmscmd of CNG v/s 4.5mmscmd that IGL sells in NCR alone. GUJGA is expected to establish ~100 CNG stations over the next 2 years, increasing its penetration in the CNG segment.
>> We believe the company should see a major volume boost at ~10% CAGR over the medium term on the highest volume base among peers.
>> Capex plans for FY21 stand at INR6–7b v/s INR5.8b in FY20 (GUJGA plans to fund capex through internal accruals only)
IGL (Neutral at Rs 470)
>> Management remains confident of achieving double-digit growth from next year. For FY22, we build-in volume growth of 14% over FY20 levels to 7.6mmscmd (v/s 6.4/4.6mmscmd in FY20/FY21).
MGL (Buy at Rs 1,200)
>> MAHGL has gas pipeline connectivity in three of the four GAs classified by NGT under polluted areas (and is prepared to supply gas in the fourth GA via a virtual
pipeline).
8:23 AM
BROKERAGE VIEW :: MOFSL on Gold Financiers
>> We believe gold financiers are currently in a sweet spot. This is because customers whose cash flows were disrupted during the pandemic are looking to leverage their gold holdings. With more than 80% of the business coming from repeat customers and LTV declining below ~55%, there is significant headroom for growth. We do not see any major impact of the RBI’s allowance of higher LTV cap of 90% to banks on growth of gold financing NBFCs.
>> Gold financiers, led by their strong performance, have outperformed their NBFC peers over the past 1-2 years. This is expected to continue in the near-to-medium term with low asset quality risk, high return ratios and tailwinds to growth. We expect MUTH/MGFL to generate 6.8%/5.4% RoA and 25%/24% RoE over the medium term. We have upgraded MUTH to ‘Buy’ with TP of INR1,300 (3.0x FY22E BVPS). Our target multiple is based on consistent performance on profitability over the past decade (lowest RoE of 15% and average RoE of 27% over the past decade). We are also initiating coverage on MGFL with a ‘Buy’ rating and TP of INR185 (1.8x FY22E BVPS). Our lower multiple for MGFL is on account of lower average RoA of 5.4% (v/s 6.8% for MUTH), and higher share of its business coming from non-gold lending at 33% (v/s 11% for MUTH in FY20), which is facing headwinds due to the pandemic.
>> Gold financiers, led by their strong performance, have outperformed their NBFC peers over the past 1-2 years. This is expected to continue in the near-to-medium term with low asset quality risk, high return ratios and tailwinds to growth. We expect MUTH/MGFL to generate 6.8%/5.4% RoA and 25%/24% RoE over the medium term. We have upgraded MUTH to ‘Buy’ with TP of INR1,300 (3.0x FY22E BVPS). Our target multiple is based on consistent performance on profitability over the past decade (lowest RoE of 15% and average RoE of 27% over the past decade). We are also initiating coverage on MGFL with a ‘Buy’ rating and TP of INR185 (1.8x FY22E BVPS). Our lower multiple for MGFL is on account of lower average RoA of 5.4% (v/s 6.8% for MUTH), and higher share of its business coming from non-gold lending at 33% (v/s 11% for MUTH in FY20), which is facing headwinds due to the pandemic.
8:08 AM
FIIs/FPIs see net outflow of Rs 3,900 cr on Wednesday
8:06 AM
Rupee check
Source: Bloomberg
8:03 AM
Oil falls on fuel demand growth concerns as coronavirus lingers
>> Oil futures fell on Thursday on concerns the economic recovery in the United States, the world’s biggest oil consumer, is slowing as the coronavirus outbreak lingers and a resurgence in European cases led to new travel restrictions there.
>> US West Texas Intermediate (WTI) crude CLc1 futures fell 36 cents, or 0.9%, to $39.57 a barrel, while Brent crude LCOc1 futures fell 28 cents, or 0.7%, to $41.49 a barrel.
(Source: Reuters)
>> US West Texas Intermediate (WTI) crude CLc1 futures fell 36 cents, or 0.9%, to $39.57 a barrel, while Brent crude LCOc1 futures fell 28 cents, or 0.7%, to $41.49 a barrel.
(Source: Reuters)
8:00 AM
SGX Nifty update
>> At 7:57 am, the index was at 11,009 level, down 125 points or 1.12 per cent
7:57 AM
Asian stocks open lower
Source: Reuters
7:55 AM
Wall Street closes lower on fears of a slowing economy
Source: Reuters
7:51 AM
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First Published: Sep 24 2020 | 7:34 AM IST
