STOCKS THAT

NIFTY OVERVIEW
M ADE NOISE

Gen sol En gin eer in g-

Gensol has 3.000 MW of
solar assets under its
management and Jaggi
expects it to grow to 10,000
MW in two years. Wind
assets under Gensol?s O&M
are as yet small, it
maintains the wind farm of
Brookfield in Karnataka, but
this business is expected to
grow too. The issue size is
1025600 shares at Rs.83
per share.

As for August , Indian equity markets ended in the red for the
third consecutive month , as intensifying economic slowdown,
reflected in the six-year low Q1 GDP print,
weaker-than-expected corporate earnings and sustained
global trade war concerns continued to dampen market
Bajaj Fin an ce: Recent entry sentiments. On the positive side, the measures announced by
in the elite club of Large
Market Cap and stellar
the government to revive the economy, particularly roll-back
profits in the last quarter of enhanced surcharge on capital gains, provided some
makes it stand out in the comfort.
troubled NBFCs space. The
total profit in the last
financial year was around
However , September saw stock markets finally reviving after
3890.34 Crore Rs. This has
been constantly increasing 3-4 months of slowdown.Indian shares surged nearly six per
year by year. cent on 20th September and were set for their best day in
more than a decade after the government announced deep
cuts in corporate taxes to revive the flagging growth. The Nifty
Indices has maintained its level since . Overall September was
a month which slightly restored the confidence among the
investors.

2 Month Overview:
M ar ico - Teasers of future
disruption in market by the Opening price of Nifty 50: 11060.2
top management and Closing price of Nifty 50: 11474.45
strong financial ratios with 2 month highest: 11694.85 ( 23rd September)
a 24.39% return on assets
percentage makes it quite a 2 month lowest: 10670.25 (19th September)
good pick.
By - Abhigyan Joshi snd Siddhar th Jain
YES Ban k - Seeing the
positive news about the
bank from last two days and COM M ODITY ANALYSIS - GOLD
the highest profit in 14 years
posted by the bank, the
stock prices are surely to go
up in the coming days. Investors purchase gold for a variety of reasons, but
Moreover, seeing the
condition of the economy,
the following are the most common ones:
we can expect government
involvement in reviving the - Hedge against inflation
bank. - Hedge against global instability (Safe Haven)
Although in the previous
- Speculate on demand growth
quarter, we saw a loss of
1506 Cr, but YES Bank - Portfolio diversification
gradually came back to a
profit of 113.7 Cr in the very Gold soared throughout the entire month of August
next quarter.
reaching its record peak of Rs. 40,300 per 10 gms
on September 4 after which price slowly started to
erode.
The uncertainty over US-China trade talks,
PVR: The introduction of a developments in the global market and talks
new premium D-Box
experience will be a major surrounding recession are some of the key reasons
factor in revenue increase in that had triggered a rise in prices of gold. Eventually
long term. For short term,
the hype around recent the record high prices led to low investment
releases War and Joker will
give a quick and big boost to
demands, and stronger rupee contributed in
revenue. decreasing the price. Gold prices lost safe-haven
appeal on improved investment sentiments with a
rally in global equity indices after the US reported
stronger factory orders and non-manufacturing
Purchasing Managers' Index (PMI) data. Analysts are
bullish on the metal?s prices due to increased
demand during the upcoming festive seasons.
Aven u e Su per m ar t -
Strong and stable
conditions of the stock
and increasing market
share of D-mart, with a
market capitalisation of Rs
1.18 lakh crore makes it a
stock to look for.
Aar t i In du st r ies: This
company has shown
decent profits in the last COM M ODITY ANALYSIS - SILVER
few years and has always
been a decently performing
stock. The current stock
price is 748.9 Rs and the In August, the price of silver saw a massive rally which went
ROE (Return on Equity) is on till the 4th of September. It opened on the 1st of August
nearly 23.56% which is a
decent return! at 41750 (per kg) and increased to 45000 at the end of the
first week of August. For the next two weeks, the price
remained relatively immobile with minor ups and downs
and closed at 45167 on the 21st of August. After this, the
price of this shiny metal went on to increase exponentially
until the 4th of September to a value of 51440 at the day?s
closing. One of the reasons for this rally of silver prices
Sask en Tech n ologies: The
stock seems fairly valued at could be the international market: depressing bond yields
the moment. It seems like had many investors taking off risk from bonds and equities
Sasken Technologies?s and heading into alternatives, like commodities.
share price is quite stable,
which means there may be After the 4th of September, silver prices dipped sharply for
fewer chances to buy low in 2 days closing at 47970 on the 6th of September and
the future because of it continued to decline further till 13th September to a price
being valued correctly at
of 45815. For the next few days, the price faced several ups
the moment . This is
because the stock is less and downs with an underlying increasing trend to a price of
volatile than the wider 48140 at the closing of 23rd September. The last week of
market given its low beta. September again showed a consistent dip in the price of
The current price being
silver, closing at 44140 on 30th September. The initial
near 600, this company
shows a ROE of nearly 13%. decrease in the price of silver was mostly due to the
It has always been in profit off-loading of position by investors to book profits. The
and the profit for the last later decrease was due to investors who trimmed down
financial year was around
90 Cr rupees.
their positions amid subdued demand and weak overseas
trends. This
fall in price
was largely in
line with the
weak position
of precious
By - metals in the
Akhil Dokhale and global market.
Shreyansh Sinha By - Par as Bodke
M ARKETS CHEERED
SECTOR ANALYSIS-IT
AS THE FINANCE
M INISTER
ANNOUNCED CUTS
IN EFFECTIVE
CORPORATE TAX
RATES

The Sensex and Nifty

recorded their biggest ever
two-day gain on 23rd
September after the
government's move to
reduce effective corporate
tax to 25.17% and GST rate Information technology (IT) sector stocks have
cuts on hotel tariffs. The remained mere witnesses to the greatest bull run
Sensex ended 1,075 points in the history of Indian equity market. In fact,
up to 39,090 while the Nifty
they have moved in the opposite direction in the
was trading above the
11,600-mark. L&T, ITC, last few trading days. The IT sector stocks have
IndusInd Bank, M&M were been falling since the day tax cut was announced.
the biggest gainers in
This maybe due to the fact that reduction in
Sensex. The nearly
corporate tax rate for the sector was insignificant.
3,000-point jump in Sensex
in two days pushed up Benefits of the tax cuts will be greater for
investor wealth by over ?10 companies which generate the majority of their
lakh crore. The Sensex
revenue at home and don't avail of many
closed 1,921 points higher
on 27th and 1,075 points
operational exemptions. However, the IT sector is
higher on the 30th to settle export driven and already enjoys lower tax
at 39,090, after the incidence due to exemptions. Subsequently, IT
government announced
indices slipped in comparison to a spectacular
corporate tax and GST rate
cuts. Banking, FMCG and equity market rally in last few trading sessions.
luxury hotel stocks
registered the most gains
among all others.
 AUTO INDUSTRY
SECTOR ANALYSIS-IT
SLOWDOWN SEES
NO RELIEF

Passenger vehicle sales

plunged 31.57% year-on-year
to 1,96,524 units in August,
falling for the 10th straight
month, while passenger car
sales fell 41.09% to 1,15,957
units. It's the worst-ever fall
since SIAM began recording
data in 1997-98.

As tax cut favoured a bit to the IT sector as well,

IRCTC IPO BECAM E Nifty IT went up a bit after tax cut for 2-3 days, but
THE M OST continued to struggle further. High was 16,218 and
SUBSCRIBED IPO IN low was 14,735 in last 2 months. IT companies
THE PAST 20 Infosys, Mindtree, L&T Technology Services,
M ONTHS Birlasoft, Sonata Software and Zensar
Technologies are likely to benefit from a reduction
Indian Railway Catering and
in corporate tax rates, analysts said. However, a
Tourism Corporation
majority of software services companies will not
(IRCTC), which manages
see any short-term gain.
ticket booking, tourism and
catering for Indian Railways
launched an IPO of Rs 645
Crores on 30th September .
It was received well within
all categories of investors
and was subscribed 112
times till 4th October to
become the most
subscribed IPO in the past
20 months
By - Ghugarkar Omkar Uttam and Shaunak Natuu
GOAIR TO FLOAT AN
IPO AND DILUTE ITS SECTOR ANALYSIS - BANKING
STAKE

GoAir is reportedly planning

to raise about ? 5,000 crore
through Initial Public Offering
(IPO) and seeking to dilute
around 25% of its stake. In
August, GoAir hired ICICI
Securities, Morgan Stanley,
Citibank and JM Financial as
merchant bankers. The
The banking sector observed many ups and
prospectus is expected to be
downs in the previous two months, a
filed before November end
predominantly bearish trend due to the effects of
and it is aiming for a listing
the budget still putting a significant impact on the
between February and March
sector. The corporate tax cut was a major boost
2020.
for the banking sector in particular which would
help the banks to increase that PAT resulting in
BUFFET?S DURACELL TO the increase in the adjusted book value. The
ACQUIRE EVEREADY merger of the 10 PSU banks into 4 has also
brought a bit of joy for the public banks as it
Warren Buffett's Berkshire
would lead to enhanced capacity to credit and
Hathaway-owned Duracell is
set to acquire BM Khaitan's reduce the lending cost.
Eveready Industries' battery
and flashlight business for
?1,600-1,700 crore in an
all-cash deal. The deal
reportedly includes Eveready's
manufacturing plants,
distribution networks and
brand name. The deal is said
to be in the final stages of
negotiation.
 FRAUDS IN PUBLIC
SECTOR BANKS ARE SECTOR ANALYSIS - BANKING
SOARING

Eighteen Public Sector Banks

(PSB) have recorded fraud
worth about ?31,898 crore
with the total number of cases
reported at 2,480 in the first
quarter of this fiscal, an RTI
query revealed. The maximum
number of frauds were
reported at India's largest
lender State Bank of India
(SBI), with as many as 1,197 Towards the end of September however, there
cases worth about ?12,012
has been a negative sentiment, which has been
crore.
driven majorly by the growing fear of Banks?
TRADE TIES BETWEEN exposure to real estate and NBFCs in the wake of
INDIA AND RUSSIA the recent PMC bank incident and Indiabulls
STRENGTHENED Housing Finance incident,(IBHF plunged by about
38%-their highest since delisting- after the Delhi
India and Russia will target High Court agreed to examine the allegations of
$30 billion of annual trade by financial irregularities against the company
2025 and have decided to promoters) and estimation of another bout of
work on industrial cooperation
fresh NPA?s coming from these sectors.
and create technological and
investment partnerships. PM
Modi and Russian President Overall, the last couple of months have been
Vladimir Putin met at Eastern rather disappointing for the banking sector which
Economic Forum in can be verified by the bearish trend in the Nifty
Vladivostok and announced Bank Index, which started at 28, 367 at the start
deals in sectors including of the month of August, dipping to a low of
energy, defense etc. They seek 26,757 on 19th Sept and most recently closing at
to boost bilateral trade from 28,414 on October 3.
its current $11 billion.
By - Sahil Sawant By - Chaitanya Sakhare and Kanishka Wasnik
 SECTOR ANALYSIS - NBFC

The country's NBFC sector has been

witnessing a slowdown since the past
year. The slew of measures taken by the
government and the Reserve Bank of
India (RBI) have not brought any respite
from the stress yet. The measures include
increasing the ticket size of loans for
priority sector status for onward lending affordable housing and micro SME
loans, partial credit guarantee for securitisation transactions and allowing
companies to access external commercial borrowings to repay rupee loans
taken for capex or on-lending. Analysts expect these measures to play only in
the medium to long run.

Now with this change, NIFTY 50 is left with three NBFC's viz. HDFC, Bajaj
Finance, and Bajaj Finserv. Soon after removal, Indiabulls has plunged by more
than 40% in one week. The leader in the sector, Bajaj Finance overtook India?s
largest bank by assets State Bank of India in market value, becoming the fifth
most valued in the country?s BFSI (Banking, Financial Services and Insurance)
basket.
Investors should look out for events of
tie -ups of NBFCs with banks because
with lack of avenues to raise funds,
NBFCs are likely to resort to
co-origination model with banks. A
number of lenders, including Bank of
Baroda and State Bank of India have
announced such tie-ups with multiple
NBFCs.
By - Har shit Bar anwal and Pushkar Shar ma
 SECTOR ANALYSIS - AUTO

The data points in August for the Auto industry shows that sector ?s slowdown
has worsened further as compared to last month?s data. The sales of passenger
vehicles stood at 196,524 units in August 2019 which is 31.6 percent less than
August 2018. This is said to be the worst dip in sales in the auto sector in
almost two decades. However, unlike the last month, Nifty Auto index didn?t
show a downward trend, instead the index went marginally up by the end of
the month.
According to the industry estimates, passenger vehicle sales fell by around
24%, to 223000 units, in September ?19 compared to September ?18. However,
good monsoons and increased liquidity in the market helped the industry fare
better than the previous month, with sales rising by around 13% over August
?19. The Nifty Auto index showed a positive trend for the month and
considerable rise by the end of the month. However, most of the gains of the
entire month took place on 19th September, the day on which corporate
tax-rate cut was announced.
The automobile industry contributes roughly 7.5 percent to the country?s GDP
and has certainly played a part in the weakening of GDP growth
numbers.Overall consumption slowdown in the economy, uncertainty over
whether the GST will be slashed or not, BS-VI norms, possibility of shifting to
electric vehicles are the major contributors for the slump in Auto industry.

By - Nir anjan Her wadkar and Abhigyan Joshi

 SECTOR ANALYSIS - FM CG

Fast moving consumer goods (FMCG)

are the 4th largest sector in the Indian
economy. There are three main
segments in the sector ? food and
beverages which accounts for 19 per
cent of the sector, healthcare which
accounts for 31 per cent and
household and personal care which
accounts for the remaining 50 per cent.
FMCG was the last bastion standing because they were low value and low
involvement ticket purchases and hence they were still tiding over the
consumption slowdown that was visible across the economy. Growth in the
fast-moving consumer goods (FMCG) sector has slumped in the past four
quarters in a row since July-September 2018, both by value and volume, as
consumers shifted to cheaper daily essential brands in the urban markets and
rural growth slowed.In Q2 (April-June) 2019, value growth in the FMCG space
dropped to 10 percent, inching towards a slowdown.
Like a bolt from the blue, the government announced a reduction in the
corporate tax rate from close to 35 per cent to 25.17 percent thereby fulfilling
its key agenda of implementing the Direct tax Code (DTC). This is a massive
trigger for revving up growth and, more importantly, resurrecting sentiments
that were down in the dumps. FMCG companies are expected to witness 5-12
per cent increase in earnings on the back of corporate tax reduction. More
importantly, the possibility of passing on this benefits and propelling the
volume growth would be on the cards. FMCG companies would be passing on
the benefit in terms of price reduction, which would result in an increase in
demand specifically in rural India.
By - Kashyap Sanjaybhai Joshi
 KNOW LEDGE SECTION- DU PONT ANALYSIS

The DuPont analysis also called the

DuPont model is a financial ratio
based on the Return on Equity ratio
that is used to analyze a company?s
ability to increase its return on
equity. In other words, this model
breaks down the return on equity
ratio to explain how companies can This model was developed to
increase their return for investors. analyze ROE and the effects

The DuPont Analysis looks at three different business performance

main factors of the ROE ratio:- measures have on this ratio. So

investors are not looking for large
- Profit Margin
or small output numbers from this
- Total Asset Turnover
model. Instead, they are looking to
- Financial Leverage
analyze what is causing the current
ROE. For instance, if investors are
unsatisfied with a low ROE, the
management can use this formula
to pinpoint the problem area
whether it is a lower profit margin,
Every one of these accounts can asset turnover, or poor financial
easily be found on the financial leveraging.
statements. Net income and sales Once the problem area is found,
appear on the income statement, management can attempt to
while total assets and total equity correct it or address it with
appear on the balance sheet. shareholders.

By - Adit Daftar y
You can su bm i t y ou r con tr i bu ti on s f or Fi n Str eak at :-
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Con tact :- Sh r ey a A gar w al ( 96430 37893)
D h eer aj A gar w al (6350 541522)

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