Sensex sheds 151 pts as nuclear deal
Global jitters weigh on sentiment; Sensex ends 150 points lower
Sensex ends 151 pts down in volatile trade
Index Value: 14,899.10
Trade Time: 3:58PM IST
Change: - 150.76 (1.00%)
Prev Close: 15,049.86
Open: 14,895.85
Day's Range: 14,766.01 - 14,994.15
52wk Range: 12,515.00 - 21,206.80
Tracking weak Asian markets, equities opened on a negative note on the major Indian bourses this morning. A few front line stocks managed to buck the trend but the premier indices Sensex and Nifty traded in the red right through the session as every small rally was followed by a strong round of selling.
Stockometer Top gainers Worst losers
Market participants appeared wary of building up positions ahead of release of inflation data and the outcome of the crucial Nuclear Suppliers Group meet today.
Realty and bank stocks bore the brunt of the onslaught this morning. Though bank stocks bounced back well and ended well off their morning lows, realty stocks found the going pretty tough today. Metal, FMCG, capital goods and power stocks also had a weak outing.
Select IT, pharma and oil stocks edged higher on stock specific support. As the mood remained quite lacklustre, there was not much action in midcap and smallcap segments today.
The Sensex, which opened with a negative gap of over 150 points at 14,895.85 and slipped to a low of 14,766.01, ended the day at 14,899.10 with a loss of 150.76 points or 1%. The barometer hit a high of 14,994.15 in early afternoon trade. The Nifty settled at 4447.75 with a loss of 56.25 points or 1.25%. In intra-day trades, the Nifty touched a high of 4514.60 and a low of 4419.45.
Maruti Suzuki (2.95%) topped the list of gainers from the Sensex. Hindalco moved up by 2.4%. Jaiprakash Associates and Tata Power advanced by around 1.75%. Grasim Industries, State Bank of India, Infosys Technologies, ICICI Bank and Ranbaxy Laboratories ended with modest gains.
BPCL, GAIL India, Cairn India, Tata Communications, Dr. Reddy's Laboratories, Hero Honda, Ambuja Cements, HCL Technologies and Punjab National Bank closed with notable gains. Nalco, ABB, Unitech, SAIL, Siemens, Power Grid Corporation, Idea Cellular, Sun Pharmaceuticals and Suzlon Energy ended with sharp losses.
KSK Energy, Akruti City, Aban Offshore, UCO Bank, Piramal Healthcare, Essar Shipping, Bank of India, Petronet LNG, Federal Bank, Century Textiles, Bombay Dyeing, Yes Bank, India Cements, EIH, Biocon, Financial Technologies and Oriental Bank of Commerce were among the prominent gainers from BSE 'A' Group.
Midcap stock Moser Baer shot up by nearly 9.5% to Rs 116.20 following global investors injecting Rs 411 crore in the company's solar photovoltaic business. Himadri Chemicals, Zee News, Mercator Lines, JM Financial Services, Dish TV, Karnataka Bank, MIC Electronics, Ballarpur Industries, Sun Pharma Advanced Research, Wockhardt, KEC International, Jagran Prakashan and Jindal Drilling were among the other major gainers in the midcap index.
The market breadth was marginally positive when traded ended today. Out of 2685 stocks traded on BSE, 1332 stocks closed with gains. 1259 stocks declined and 94 stocks ended flat.
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Inflation cools further to 12.34 per cent
Continuing its southward journey, inflation further slipped to 12.34 per cent for the week ended August 23 from 12.4 per cent recorded a week earlier. The nation’s annual inflation rate, however, was expected to have inched up in the third week of August to 12.44 per cent, driven by higher prices of some commodities and demand pressures in economy, a Reuters poll showed earlier. The decline in inflation last week was largely on account of the drop in the global crude prices and marginal easing of prices of essentials such as fruits, vegetables, eggs, meat and fish. Economists, however, cautioned that it may be too early to assume that the declining trend had set in. “While there has been some stability in the index since June, it may be too early to say that inflation has started declining,” said leading economist Saumitra Chaudhury.
DK Joshi, principal economist, Crisil, said, “It is essentially the impact of the global oil prices.” Lehman Brothers has already said in a report that they expect the final WPI inflation to peak in Oct/Nov at around 13.5-14.0 per cent, “but to stay in double-digit territory until February 2009. Based on our forecast of slower GDP growth of 7.3 per cent in FY09, our energy team’s forecast of the price of oil falling sharply to $90/bbl in Q1 2009, plus favorable base effects, our forecast is that WPI inflation will start turning down decisively in January 2009.”
Source: ET, SIfy
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04 September 2008
Bharti, RIL among 10 Indian cos in Forbes Asia's Fabulous 50
Bharti, RIL among 10 Indian cos in Forbes Asia's Fabulous 50
Ten Indian companies led by the likes of state-run Bharat Heavy Electricals, telecom major Bharti Airtel and Mukesh Ambani-led Reliance Industries have made their way into the Forbes' list of 50 best listed companies in the Asia-Pacific region. The 'Asian Fabulous 50' ranking is topped by Taiwan-based computer maker Acer, while BHEL and Bharti Airtel are the top ranked Indian companies at the overall fifth and sixth spots. Acer is followed by Chinese steel maker Angang Steel, Taiwan's Asustek Computer and Indonesia's Bank Rakyat Indonesia at the second, third and fourth spots, respectively. Among Indian firms, BHEL and Bharti Airtel are followed by private sector lender HDFC Bank (22), IT bellwether Infosys (25), diversified conglomerate ITC (27), engineering and infrastructure firm Larsen & Toubro (30), auto maker Mahindra & Mahindra (34), Reliance Industries (39), world's sixth largest steel maker Tata Steel (44) and software exporter Wipro (46).
Among countries, China has the maximum representation with 13 firms, while India comes second with its 10 companies. "Indian companies once again had a strong showing, with 10 making our cut. Infosys and Wipro, perennial top performers, are back for the fourth year. Reliance Industries, Bharat Heavy and Larsen & Toubro are back for the third year. "Consumer-oriented companies such as Bharti Airtel, HDFC Bank, Mahindra & Mahindra and ITC are growing with India's middle class," the magazine said in an accompanying report. The list is based on long-term profitability, sales and earnings growth, stock price appreciation and projected earnings for every company in the region with revenues or market capitalisation of at least five billion dollars.
BHEL which is country's largest energy equipment provider holds about 60-65 per cent market share of India's power capacity additions. However, the magazine said rising prices of commodities could put the company's margins under pressure in the next several years. On Bharti Airtel, the report said, as many as 10 million new subscribers sign up every month for wireless access in India. "One in 4 sign up with Bharti Airtel, not only to make calls but also to access the web, download cricket scores and send billions of text messages." The report added that the firm is maxing out its allotted airwaves and that more spectrum should help Bharti Airtel "steal more wireless Web customers." The magazine said RIL is India's largest private sector company, accounting for 3 per cent of the nation's GDP and 13 per cent of its exports. Forbes added that the firm is also entering into joint- venture with US office property developer Vornado. Each would shell out $250 million to open shopping centers throughout India. On Tata Steel, the magazine said that Ratan Tata transformed his steel company from a south Asian foundry into an enterprise also spanning the rest of Asia, Europe and the US with the USD 13-billion takeover of Anglo-Dutch Corus Group last year. There are 23 rookies making their first appearance in the list and most of them are from China. Japan and South Korea are represented by three and two companies, respectively. Chiyoda, Nintendo and Yahoo! Japan have made it to the league of 50 from Japan, while Doosan and LG are from South Korea, the magazine said.
Mukesh, Anil Ambani among world's most powerful people
Source:ET
Ten Indian companies led by the likes of state-run Bharat Heavy Electricals, telecom major Bharti Airtel and Mukesh Ambani-led Reliance Industries have made their way into the Forbes' list of 50 best listed companies in the Asia-Pacific region. The 'Asian Fabulous 50' ranking is topped by Taiwan-based computer maker Acer, while BHEL and Bharti Airtel are the top ranked Indian companies at the overall fifth and sixth spots. Acer is followed by Chinese steel maker Angang Steel, Taiwan's Asustek Computer and Indonesia's Bank Rakyat Indonesia at the second, third and fourth spots, respectively. Among Indian firms, BHEL and Bharti Airtel are followed by private sector lender HDFC Bank (22), IT bellwether Infosys (25), diversified conglomerate ITC (27), engineering and infrastructure firm Larsen & Toubro (30), auto maker Mahindra & Mahindra (34), Reliance Industries (39), world's sixth largest steel maker Tata Steel (44) and software exporter Wipro (46).
Among countries, China has the maximum representation with 13 firms, while India comes second with its 10 companies. "Indian companies once again had a strong showing, with 10 making our cut. Infosys and Wipro, perennial top performers, are back for the fourth year. Reliance Industries, Bharat Heavy and Larsen & Toubro are back for the third year. "Consumer-oriented companies such as Bharti Airtel, HDFC Bank, Mahindra & Mahindra and ITC are growing with India's middle class," the magazine said in an accompanying report. The list is based on long-term profitability, sales and earnings growth, stock price appreciation and projected earnings for every company in the region with revenues or market capitalisation of at least five billion dollars.
BHEL which is country's largest energy equipment provider holds about 60-65 per cent market share of India's power capacity additions. However, the magazine said rising prices of commodities could put the company's margins under pressure in the next several years. On Bharti Airtel, the report said, as many as 10 million new subscribers sign up every month for wireless access in India. "One in 4 sign up with Bharti Airtel, not only to make calls but also to access the web, download cricket scores and send billions of text messages." The report added that the firm is maxing out its allotted airwaves and that more spectrum should help Bharti Airtel "steal more wireless Web customers." The magazine said RIL is India's largest private sector company, accounting for 3 per cent of the nation's GDP and 13 per cent of its exports. Forbes added that the firm is also entering into joint- venture with US office property developer Vornado. Each would shell out $250 million to open shopping centers throughout India. On Tata Steel, the magazine said that Ratan Tata transformed his steel company from a south Asian foundry into an enterprise also spanning the rest of Asia, Europe and the US with the USD 13-billion takeover of Anglo-Dutch Corus Group last year. There are 23 rookies making their first appearance in the list and most of them are from China. Japan and South Korea are represented by three and two companies, respectively. Chiyoda, Nintendo and Yahoo! Japan have made it to the league of 50 from Japan, while Doosan and LG are from South Korea, the magazine said.
Mukesh, Anil Ambani among world's most powerful people
Source:ET
03 September 2008
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02 September 2008
Biz Headlines (02.09.08)
Sensex ends up 551pts; banking, realty stocks rally
Tata Motors suspends work in Singur
NMDC to invest Rs 12,000 cr in Chhattisgarh steel plant
July trade deficit widens to $10.8 bn
30% of Wipro staff may soon work from home
Rupee weakens on trade data, RBI watched
Crude oil near $100
Sensex vaults 551 pts as bulls storm the ring; Bank, realty stocks flare up
Bosch board okays share buyback
Great Offshore buys 2 cos for Rs 160 cr
Post Session Commentary - Sep 2 2008
Tata to Singur
Tumbling oil lifts Sensex by 551 points
SEBI to review IPO grading concept
23% fall in debt pvt placements in Q1
Re at 17-month low despite RBI move
Nifty September premium widens
US stock futures jump on oil tumble
Annual inflation seen at 12.44%
Options outdo futures for first time in 8 years
Max New York Life plans to have 1,600 offices in next 3 years
atures
Quickies
Danger lurks in e-world portals
India's Top 10 Company Brands
E-banking safety checks
A roller coaster ride called market
India's top IT & Telecom brands
Old building: Get together and rebuild
How not to invest in stock market
The lost world of lakes
World's top 10 auto groups by sales
India's top Finance & Banking brands
Source: ET, Sify, DP blog, BS etc
Tata Motors suspends work in Singur
NMDC to invest Rs 12,000 cr in Chhattisgarh steel plant
July trade deficit widens to $10.8 bn
30% of Wipro staff may soon work from home
Rupee weakens on trade data, RBI watched
Crude oil near $100
Sensex vaults 551 pts as bulls storm the ring; Bank, realty stocks flare up
Bosch board okays share buyback
Great Offshore buys 2 cos for Rs 160 cr
Post Session Commentary - Sep 2 2008
Tata to Singur
Tumbling oil lifts Sensex by 551 points
SEBI to review IPO grading concept
23% fall in debt pvt placements in Q1
Re at 17-month low despite RBI move
Nifty September premium widens
US stock futures jump on oil tumble
Annual inflation seen at 12.44%
Options outdo futures for first time in 8 years
Max New York Life plans to have 1,600 offices in next 3 years
atures
Quickies
Danger lurks in e-world portals
India's Top 10 Company Brands
E-banking safety checks
A roller coaster ride called market
India's top IT & Telecom brands
Old building: Get together and rebuild
How not to invest in stock market
The lost world of lakes
World's top 10 auto groups by sales
India's top Finance & Banking brands
Source: ET, Sify, DP blog, BS etc
Exports sharply up, but no let-up in imports too
Exports sharply up, but no let-up in
India's exports accelerated to 31.2% in July and to almost 25% during the April-July 2008 period over their respective levels a year ago.
But, imports too maintained their unstoppable momentum, with a year-on-year surge of 48% during the latest month and by over 34% during the first four months of 2008-09.
In the event, trade deficit for July zoomed to $10,798 million from $5,879 million during the same month of the last fiscal; for the four-month period, the trade gap widened to $41,227 million from the preceding year's $27,352 million.
The export effort was partly facilitated by the depreciation of the Indian rupee vis-à-vis the dollar.
This provided an incentive to exporters whose realisation in our currency would thus go up.
Indications are that though the rough weather faced by the American economy has proved to be a dampener in our export performance, this setback has been more than made good by better showing in the Asean, South-east Asian and Latin American markets.
But, with crude prices on the boil for most of the period covered by the foreign trade data, the oil import bill till July 2008 rose by a whopping 54.9% and by a staggering 69.3% in July alone. Translated into simple terms, this means that we must brace for a steep rise in the value of crude imports during the current fiscal, as any softening trend in the months ahead may not adequately compensate the high cost of oil in the first four months.
Compounding the problem posed by high cost of oil imports, the first four months of 2008-09 also saw a strident increase in other imports —- mainly raw materials, capital goods and essential items. Non-oil imports during July were higher by nearly 39% and till July by 25%.
With imports outpacing exports by a sizeable margin, the trade gap remained disconcertingly vast in July 2008 as well as during the first four months.
In other words, there was a further deterioration in the ability of our exports to pay for our imports during this fiscal.
The import-purchasing power of exports fell to 58.9% from 63.5% during the comparable period of 2007-08.
With ample foreign currency assets at our disposal, the imbalance in our external trade ledger may not be a serious problem now but, it does impact on the current account.
But, the trend in exports thus far suggests that we are on course to hit the target of $200 billion set for 2008-09. Already, we have reached $59 billion; since the latter part of the year is usually a period of heightened tempo in the growth of exports, there is even a possibility of surpassing this target.
Source:Sify
India's exports accelerated to 31.2% in July and to almost 25% during the April-July 2008 period over their respective levels a year ago.
But, imports too maintained their unstoppable momentum, with a year-on-year surge of 48% during the latest month and by over 34% during the first four months of 2008-09.
In the event, trade deficit for July zoomed to $10,798 million from $5,879 million during the same month of the last fiscal; for the four-month period, the trade gap widened to $41,227 million from the preceding year's $27,352 million.
The export effort was partly facilitated by the depreciation of the Indian rupee vis-à-vis the dollar.
This provided an incentive to exporters whose realisation in our currency would thus go up.
Indications are that though the rough weather faced by the American economy has proved to be a dampener in our export performance, this setback has been more than made good by better showing in the Asean, South-east Asian and Latin American markets.
But, with crude prices on the boil for most of the period covered by the foreign trade data, the oil import bill till July 2008 rose by a whopping 54.9% and by a staggering 69.3% in July alone. Translated into simple terms, this means that we must brace for a steep rise in the value of crude imports during the current fiscal, as any softening trend in the months ahead may not adequately compensate the high cost of oil in the first four months.
Compounding the problem posed by high cost of oil imports, the first four months of 2008-09 also saw a strident increase in other imports —- mainly raw materials, capital goods and essential items. Non-oil imports during July were higher by nearly 39% and till July by 25%.
With imports outpacing exports by a sizeable margin, the trade gap remained disconcertingly vast in July 2008 as well as during the first four months.
In other words, there was a further deterioration in the ability of our exports to pay for our imports during this fiscal.
The import-purchasing power of exports fell to 58.9% from 63.5% during the comparable period of 2007-08.
With ample foreign currency assets at our disposal, the imbalance in our external trade ledger may not be a serious problem now but, it does impact on the current account.
But, the trend in exports thus far suggests that we are on course to hit the target of $200 billion set for 2008-09. Already, we have reached $59 billion; since the latter part of the year is usually a period of heightened tempo in the growth of exports, there is even a possibility of surpassing this target.
Source:Sify
Market cheers oil slide; Sensex closes 550 points up
Market cheers oil slide; Sensex closes 550 points up
Equities closed sharply higher on Tuesday led by surge in interest-rate sensitive sectors after international oil prices tumbled to a low of $105.46 per barrel.
Bombay Stock Exchange’s Sensex closed at 15,049.86, up 551.35 points or 3.80 per cent. It touched a high of 15,106.15 and low of 14,543.21. National Stock Exchange’s Nifty ended at 4504.00, up 155.35 points. The 50-share index touched an intra-day high of 4522.40 and intra-day low of 4343.10.
BSE Midcap Index closed 1.66 per cent higher at 5,837.01 and BSE Smallcap Index ended at 6,982.39, higher by 1.32 per cent. State Bank of India (7.44%), ICICI Bank (7.34%), DLF (7.14%), ONGC (6.97%), Jaiprakash Associates (6.83%) were amongst the major Sensex gainers. Ranbaxy Laboratories (-1.89%) and Tata Motors (-1.82%) were the only losers. Market breadth was positive on the BSE with 1675 advances against 986 declines. In Europe, oil prices rebounded to $108.24 per barrel after plunging to $105.46 per barrel on concerns of fall in global demand and as worries on hurricane Gustav eased.
Other Related:
Sensex regains 15K level; Nifty crosses another milestone
Investors cheer crude slide; banks, realty lead
BSE extends trading hours from September 24 on sun outage
Sensex ends up 551pts; banking, realty stocks rally
Sensex vaults 551 pts as bulls storm the
Source: ET, Sify, BS.
Equities closed sharply higher on Tuesday led by surge in interest-rate sensitive sectors after international oil prices tumbled to a low of $105.46 per barrel.
Bombay Stock Exchange’s Sensex closed at 15,049.86, up 551.35 points or 3.80 per cent. It touched a high of 15,106.15 and low of 14,543.21. National Stock Exchange’s Nifty ended at 4504.00, up 155.35 points. The 50-share index touched an intra-day high of 4522.40 and intra-day low of 4343.10.
BSE Midcap Index closed 1.66 per cent higher at 5,837.01 and BSE Smallcap Index ended at 6,982.39, higher by 1.32 per cent. State Bank of India (7.44%), ICICI Bank (7.34%), DLF (7.14%), ONGC (6.97%), Jaiprakash Associates (6.83%) were amongst the major Sensex gainers. Ranbaxy Laboratories (-1.89%) and Tata Motors (-1.82%) were the only losers. Market breadth was positive on the BSE with 1675 advances against 986 declines. In Europe, oil prices rebounded to $108.24 per barrel after plunging to $105.46 per barrel on concerns of fall in global demand and as worries on hurricane Gustav eased.
Other Related:
Sensex regains 15K level; Nifty crosses another milestone
Investors cheer crude slide; banks, realty lead
BSE extends trading hours from September 24 on sun outage
Sensex ends up 551pts; banking, realty stocks rally
Sensex vaults 551 pts as bulls storm the
Source: ET, Sify, BS.
Biz Headlines
Options outdo futures for first time in 8 yrs
Finance Secretary D Subbarao appointed RBI Governor
Ranbaxy Fine buys US co for $340m
RIL shelves stake transfer plan
Sensex closes down 66 points despite
Daughters of Mittal, Ambani and KP Singh follow them into Forbes list
Tata Steel, Jet Airways most powerful brands
Maruti Suzuki August sales falls by 9.19 pc
A biofuel-propelled car that can run at 84mph over snow, ice
Hyundai domestic sales up 34 pc in Aug
Hyundai sales soar 57.5% in August
Bajaj Auto motorcycle sales rise 5 per cent in August
TVS Motors logs 11 per cent volume growth in August
Reliance abandons stake transfer of gas-rich D-6 block
Aban Offshore arm's JV bags $271 mn order from Maersk Oil
Delay in starting of gas production in RIL's D6 field
IOC to import up to 0.9 mn T diesel this FY
ONGC says to start pumping coal seam gas
Reliance to pump D-6 gas from October-govt
Govt unlikely to penalise RIL for delaying gas production
RIL-RNRL KG gas dispute hearing to resume on Tuesday
Arbitration panel asks Tata to pay $19 million in damages to Reliance Communication
Oil drops $4 as Gustav hits US Gulf Coast
Resurgere Mines share double its issue price
Suzlon advances REpower stake buy
Sensex recovers on late buying, ends down 66pts
Source:ET,BS.
Brand Power: RIL king of brands at $6.8 bn
Brand Power: RIL king of brands at $6.8 bn
DELHI: India’s trillion-dollar plus stock markets boast of 20 companies with a brand value of over $1 billion, up from 16 last year. There are now a dozen (BSE-listed) companies with a brand value over $2 billion (vis-à-vis nine last year) and half-a-dozen with over $3 billion (up from four last year). Raise the cut-off to $6 billion, and it’s a club-of-one, India’s biggest private-sector company, Reliance Industries, with an end-2007 brand value of $6.81 billion (Rs 26,801 crore) vis-à-vis $5.8-billion in end-2006. Using the relief-from-royalty method of brand valuation, which assumes that a company does not own its brand and needs to licence it from a third party, a global leading brand valuation firm, London-headquartered Brand Finance India’s Top 50 Most Valuable (Company) Brands, 2008, presented exclusively by ET, studied only BSE-listed consumer-facing corporate brands (and not holding companies, such as Hindustan Unilever, which own a portfolio of branded businesses) to arrive at the BF Top 50 list.
Brand Power: RIL king of brands at $6.8 bn2 Sep, 2008, 0210 hrs IST,Shailesh Dobhal & Bhanu Pande, ET Bureau
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NEW DELHI: India’s trillion-dollar plus stock markets boast of 20 companies with a brand value of over $1 billion, up from 16 last year. There are now a dozen (BSE-listed) companies with a brand value over $2 billion (vis-à-vis nine last year) and half-a-dozen with over $3 billion (up from four last year). Raise the cut-off to $6 billion, and it’s a club-of-one, India’s biggest private-sector company, Reliance Industries, with an end-2007 brand value of $6.81 billion (Rs 26,801 crore) vis-à-vis $5.8-billion in end-2006. Using the relief-from-royalty method of brand valuation, which assumes that a company does not own its brand and needs to licence it from a third party, a global leading brand valuation firm, London-headquartered Brand Finance India’s Top 50 Most Valuable (Company) Brands, 2008, presented exclusively by ET, studied only BSE-listed consumer-facing corporate brands (and not holding companies, such as Hindustan Unilever, which own a portfolio of branded businesses) to arrive at the BF Top 50 list.
Also Read
→ India Inc's brand sheet: RIL most valuable brand
→ Brands: Value beyond the balance sheet
→ Brand value league table construct
→ Tata Steel, Jet Airways most powerful brandsPrima facie, the BF Top 50 study doesn’t show any dramatic shift in last year’s line-up. The top brands are evenly spread out across sectors pretty much like last year, reiterating the fact that brands can create significant value even outside the traditional consumer goods sector. As many as nine out of top 10 brands of last year have maintained their place in the roster, albeit with a minor reshuffle in positions. Hindustan Petroleum Corporation (HPCL) is the only one to have got nudged out by a newcomer, Bharti Airtel, from the Top 10 list.
And even though the total brand value of Top 50 at $68.25 billion looks impressive compared with last year’s figure of $50.8 billion, it’s largely the effect of rupee appreciation (at an average exchange rate of Rs 45.5 and Rs 39.3 to a dollar in calendar 2006 and 2007, respectively, for the purpose of this study) that reflects an over 34% jump in the dollar-denominated brand valuation. In rupee terms, the Top 50’s brand value has gone up by only 15%, Rs 2.67 lakh crore from Rs 2.32 lakh crore. However, a closer scrutiny of the Top 50 list highlights some twists in the tale. For one, it marks the debut for 11 new brands on the Top 50 list, United Breweries, Tata Tea, Dabur, Idea, Tata Communications, Pantaloon, DLF, Jaiprakash Associates, GMR, Reliance Infrastructure and Gail. Says Brand Finance India MD M Unni Krishnan: “These brands have swiftly grown in size through a combination of organic and inorganic growth and their ability to transform their business to offer a whole range value proposition to customers.
These brands have shown leadership in shaping their industries ahead of time and consequently strengthening their ability to retain and acquire new customers.” The cut-off for Top 50, which was a low Rs 172 crore (No. 50, Essar Oil’s brand value) last year, has moved up to Rs 645 crore this year (Gail at No. 50 this year). Equally, as many as one in five brands on the Top 50 list last year dropped out of the list this year, IDBI Bank, Canara Bank, Essar Steel, Cipla, Nicholas Piramal, Reliance Energy, Sun Pharmaceutical, Gujarat Ambuja, Reliance Capital, ACC and LIC Housing. “Whilst the IDBI brand remains valuable, we have not been able to complete the brand valuation analysis due to paucity of marketing, customer and people data/information in the public space,” explains Mr Krishnan.
Two, the emergence of infrastructure as a fresh force and the decline of banking & finance and manufacturing in the brand war for supremacy in valuation. Though RIL retains its top position this year too, the petrochem-to-retail giant has seen its brand value (in rupee terms) remain virtually static, it barely inched up 1.4% over the year.
Gainers in the top 10 include Bharti Airtel (brand value: Rs 9,798-crore), which rose three rungs to settle at rank 8 and ICICI Bank (Rs 11,533-crore) that moved two slots up to reach the No. 7 spot. More than scaling the chart, the two have seen a jaw-dropping change in their values. Bharti Airtel gained as high as 26% in (rupee) value while ICICI Bank followed with a increase of 24% in brand value. Interestingly, it’s been a lacklustre year for the oil navratnas in the public sector. They continue to be under pressure due to rising crude prices and steep under-realisation due to government price controls.
All three oil PSUs, IOC, BPCL and HPCL, not just slipped down in the chart, they saw a significant erosion in their brand value in 2007. IOC slid to the third position (from No. 2 last year) with a brand value of Rs 17,987 crore (a drop of 5.3%), BPCL dropped to No. 9 slot from No. 7 last year and saw its brand value erode by a whopping 17% and HPCL down by 15%. SBI at No. 4, is the only one amongst the PSUs to hold its own while showing a remarkable rise, close to 16%, in its brand value. Sectoral analysis shows that banking & finance rule the list with nine brands although their number has dwindled over the last year. Oil & gas and IT have sent in six brands each, followed by automobile (four brands) in the list. Amidst the construction boom and some big-ticket IPOs in that space, infrastructure brands made a grand entry in the study for the first time. These include highly-visible brands of 2007, DLF, Jaiprakash Associates, GMR and Reliance Infrastructure, at rank 43, 46, 48 and 49, respectively.
The entries from a new sector had an obvious impact on brand from other sectors. While FMCG and telecom added new brands to the list of Top 50, banking & finance, manufacturing (steel, cement, durables) and pharma saw brand representation from within the sector go down. Barring a handful of brands, there’s been relatively minor shifts in ranks. The steepest fall has come for the likes of Tata Power (No. 47 versus No. 38 last year), Bank of Baroda (No. 39 and No. 30) and Videocon (No. 35 and No. 27). Others that moved down sharply in the list include Taj (Indian Hotels) that fell from No. 26 to No. 33 and JSW Steel dropped from No. 37 to No. 42. The study in its second year still manages to say a lot about the rapidly transforming business landscape in India. It’s no longer about consumer goods alone. The dominance of banking, IT, oil & gas, et al, may pale as we go along and we could see a rise of brand from new sectors that get a boost in the emerging new economic paradigm.
RIL most valuable brand
Brand value league table construct
Tata Steel, Jet most powerful brands
Indian flection brands
-------------------------------------
DELHI: India’s trillion-dollar plus stock markets boast of 20 companies with a brand value of over $1 billion, up from 16 last year. There are now a dozen (BSE-listed) companies with a brand value over $2 billion (vis-à-vis nine last year) and half-a-dozen with over $3 billion (up from four last year). Raise the cut-off to $6 billion, and it’s a club-of-one, India’s biggest private-sector company, Reliance Industries, with an end-2007 brand value of $6.81 billion (Rs 26,801 crore) vis-à-vis $5.8-billion in end-2006. Using the relief-from-royalty method of brand valuation, which assumes that a company does not own its brand and needs to licence it from a third party, a global leading brand valuation firm, London-headquartered Brand Finance India’s Top 50 Most Valuable (Company) Brands, 2008, presented exclusively by ET, studied only BSE-listed consumer-facing corporate brands (and not holding companies, such as Hindustan Unilever, which own a portfolio of branded businesses) to arrive at the BF Top 50 list.
Brand Power: RIL king of brands at $6.8 bn2 Sep, 2008, 0210 hrs IST,Shailesh Dobhal & Bhanu Pande, ET Bureau
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NEW DELHI: India’s trillion-dollar plus stock markets boast of 20 companies with a brand value of over $1 billion, up from 16 last year. There are now a dozen (BSE-listed) companies with a brand value over $2 billion (vis-à-vis nine last year) and half-a-dozen with over $3 billion (up from four last year). Raise the cut-off to $6 billion, and it’s a club-of-one, India’s biggest private-sector company, Reliance Industries, with an end-2007 brand value of $6.81 billion (Rs 26,801 crore) vis-à-vis $5.8-billion in end-2006. Using the relief-from-royalty method of brand valuation, which assumes that a company does not own its brand and needs to licence it from a third party, a global leading brand valuation firm, London-headquartered Brand Finance India’s Top 50 Most Valuable (Company) Brands, 2008, presented exclusively by ET, studied only BSE-listed consumer-facing corporate brands (and not holding companies, such as Hindustan Unilever, which own a portfolio of branded businesses) to arrive at the BF Top 50 list.
Also Read
→ India Inc's brand sheet: RIL most valuable brand
→ Brands: Value beyond the balance sheet
→ Brand value league table construct
→ Tata Steel, Jet Airways most powerful brandsPrima facie, the BF Top 50 study doesn’t show any dramatic shift in last year’s line-up. The top brands are evenly spread out across sectors pretty much like last year, reiterating the fact that brands can create significant value even outside the traditional consumer goods sector. As many as nine out of top 10 brands of last year have maintained their place in the roster, albeit with a minor reshuffle in positions. Hindustan Petroleum Corporation (HPCL) is the only one to have got nudged out by a newcomer, Bharti Airtel, from the Top 10 list.
And even though the total brand value of Top 50 at $68.25 billion looks impressive compared with last year’s figure of $50.8 billion, it’s largely the effect of rupee appreciation (at an average exchange rate of Rs 45.5 and Rs 39.3 to a dollar in calendar 2006 and 2007, respectively, for the purpose of this study) that reflects an over 34% jump in the dollar-denominated brand valuation. In rupee terms, the Top 50’s brand value has gone up by only 15%, Rs 2.67 lakh crore from Rs 2.32 lakh crore. However, a closer scrutiny of the Top 50 list highlights some twists in the tale. For one, it marks the debut for 11 new brands on the Top 50 list, United Breweries, Tata Tea, Dabur, Idea, Tata Communications, Pantaloon, DLF, Jaiprakash Associates, GMR, Reliance Infrastructure and Gail. Says Brand Finance India MD M Unni Krishnan: “These brands have swiftly grown in size through a combination of organic and inorganic growth and their ability to transform their business to offer a whole range value proposition to customers.
These brands have shown leadership in shaping their industries ahead of time and consequently strengthening their ability to retain and acquire new customers.” The cut-off for Top 50, which was a low Rs 172 crore (No. 50, Essar Oil’s brand value) last year, has moved up to Rs 645 crore this year (Gail at No. 50 this year). Equally, as many as one in five brands on the Top 50 list last year dropped out of the list this year, IDBI Bank, Canara Bank, Essar Steel, Cipla, Nicholas Piramal, Reliance Energy, Sun Pharmaceutical, Gujarat Ambuja, Reliance Capital, ACC and LIC Housing. “Whilst the IDBI brand remains valuable, we have not been able to complete the brand valuation analysis due to paucity of marketing, customer and people data/information in the public space,” explains Mr Krishnan.
Two, the emergence of infrastructure as a fresh force and the decline of banking & finance and manufacturing in the brand war for supremacy in valuation. Though RIL retains its top position this year too, the petrochem-to-retail giant has seen its brand value (in rupee terms) remain virtually static, it barely inched up 1.4% over the year.
Gainers in the top 10 include Bharti Airtel (brand value: Rs 9,798-crore), which rose three rungs to settle at rank 8 and ICICI Bank (Rs 11,533-crore) that moved two slots up to reach the No. 7 spot. More than scaling the chart, the two have seen a jaw-dropping change in their values. Bharti Airtel gained as high as 26% in (rupee) value while ICICI Bank followed with a increase of 24% in brand value. Interestingly, it’s been a lacklustre year for the oil navratnas in the public sector. They continue to be under pressure due to rising crude prices and steep under-realisation due to government price controls.
All three oil PSUs, IOC, BPCL and HPCL, not just slipped down in the chart, they saw a significant erosion in their brand value in 2007. IOC slid to the third position (from No. 2 last year) with a brand value of Rs 17,987 crore (a drop of 5.3%), BPCL dropped to No. 9 slot from No. 7 last year and saw its brand value erode by a whopping 17% and HPCL down by 15%. SBI at No. 4, is the only one amongst the PSUs to hold its own while showing a remarkable rise, close to 16%, in its brand value. Sectoral analysis shows that banking & finance rule the list with nine brands although their number has dwindled over the last year. Oil & gas and IT have sent in six brands each, followed by automobile (four brands) in the list. Amidst the construction boom and some big-ticket IPOs in that space, infrastructure brands made a grand entry in the study for the first time. These include highly-visible brands of 2007, DLF, Jaiprakash Associates, GMR and Reliance Infrastructure, at rank 43, 46, 48 and 49, respectively.
The entries from a new sector had an obvious impact on brand from other sectors. While FMCG and telecom added new brands to the list of Top 50, banking & finance, manufacturing (steel, cement, durables) and pharma saw brand representation from within the sector go down. Barring a handful of brands, there’s been relatively minor shifts in ranks. The steepest fall has come for the likes of Tata Power (No. 47 versus No. 38 last year), Bank of Baroda (No. 39 and No. 30) and Videocon (No. 35 and No. 27). Others that moved down sharply in the list include Taj (Indian Hotels) that fell from No. 26 to No. 33 and JSW Steel dropped from No. 37 to No. 42. The study in its second year still manages to say a lot about the rapidly transforming business landscape in India. It’s no longer about consumer goods alone. The dominance of banking, IT, oil & gas, et al, may pale as we go along and we could see a rise of brand from new sectors that get a boost in the emerging new economic paradigm.
RIL most valuable brand
Brand value league table construct
Tata Steel, Jet most powerful brands
Indian flection brands
-------------------------------------
01 September 2008
Buy RIL stock when it falls, Investors Guide from ET
Buy RIL's stock when it falls
Beta: 0.37
Institutional Holding: 25.98%
Dividend Yield: 0.6%
P/E: 15.6
M-Cap: Rs 3,10,444 cr
CMP: Rs 2,136
Reliance Industries (RIL) ranks among the country’s largest companies in the private sector on various parameters. It is on the verge of commissioning two of its biggest projects in September ’08.
At full utilisation levels, these projects are expected to add nearly Rs 80,000 crore to RIL’s consolidated revenues, further strengthening its numero uno position in India Inc. Its current market valuation appears to have taken into account the immediate gains from these two projects.
However, going forward, the stock may witness stagnation as its future outlook is getting cloudy due to the build-up of several negative factors. Nevertheless, there remains a possibility that given its strong cash flows, presence across industries and forward and backward linkages, RIL can spring positive surprises. Long-term investors can accumulate the stock at dips.
RIL has invested nearly $8.8 billion in its Krishna-Godavari (KG) basin gas fields since their discovery in ’02. Production from these fields is expected to start by the end of September at the rate of 25 million cubic metres a day (mcmd), which will be gradually scaled up to 80 mcmd.
The second mega-project, which will commence operations this month, is Reliance Petroleum’s 29 million tonne per annum (mtpa) high-complexity petroleum refinery in Jamnagar special economic zone (SEZ).
Latest media reports and comments from government quarters suggest that RIL will be able to stick to its initial schedule of completion by September ’08 and commence commercial production by December ’08. This Jamnagar plant will make RIL not just India’s largest petroleum refiner, but also the world’s largest single location refiner.
However, RIL is facing some imminent woes. The natural gas project is embroiled in two major lawsuits with Reliance Natural Resources (RNRL) and NTPC, both of which are claiming a huge chunk of gas supply at low prices.
This has disabled the company from selling gas to any third party. Any adverse outcome of these court cases can have a major impact on RIL’s future profitability, as well as its return on capital.
Similarly, the RPL refinery project, which was conceived when globally refinery margins were on the rise, is getting commissioned just when the rally has waned. The benchmark Singapore refining margins have fallen sharply to around $4 per barrel as of end August ’08 from $12 at the start of July ’08.
In view of several other refineries coming up in West Asia and China, the refining industry is expected to remain in a downward trend for the next 3-4 years. Over the past couple of years, RIL has aggressively entered the organised retail sector, opening around 735 stores across 13 states. This is another industry which is witnessing the entry of too many players, putting a big question mark on its profitability.
Initially, RIL’s valuation had got a boost from the potential growth prospects of its two mega projects. However, as the problems became more apparent, valuations plummeted. The scrip’s price-to-earnings (P/E) multiple, which had crossed 31 in January ’08, has halved to around 15.5 now, as the stock price fell from Rs 3,200 to Rs 2,150.
Still, the company commands one of the highest valuations among global peers such as Exxon Mobil, Royal Dutch Shell or PetroChina. And since current valuations have already factored in higher profitability of the new businesses, there is every reason that the valuations can weaken further.
Despite all these negatives, there are a few positive factors, which will help add some shine to the company’s performance. Being fully integrated in the petroleum value chain, the lower profitability of its refining business can be compensated to a certain extent by future improvement in profits of its petrochemicals business.
Secondly, the recent weakening of the rupee bodes well for RIL, which is increasingly focusing on exports, while its domestic revenues are also linked to the rupee-dollar exchange rate.
RIL operates in a capital-intensive commodity business, which is subject to business cycles. Against this background, it is creditable for the company to have maintained a return on capital above 18% over the past five years. But this has necessitated the company to plough back most of its profits into the business and pay just around 10% as dividends.
This will continue in future too and RIL’s dividend payouts, as well as dividend yields will remain very low. In the long term, several other projects that RIL is pursuing should help boost its growth momentum. The company is developing special economic zones in Haryana, Gujarat and Maharashtra.
It is also investing in exploration blocks in India, as well as abroad, and has bagged coal-bed methane (CBM) blocks. The potential hydrocarbon reserves from these blocks will also add value to the company. Hence, long-term investors can buy into the scrip when it falls, but they should not expect much upside in the near term from the commissioning of RIL’s two mega projects.
--------------------------------------
Derivatives Diary: The action is hotting up 1 Sep, 2008, 0033 hrs IST, Shakti Shankar Patra
Both the Dow and the Nifty found support at the lower ends of their respective ranges and bounced back sharply late in the week.
Beta: 0.37
Institutional Holding: 25.98%
Dividend Yield: 0.6%
P/E: 15.6
M-Cap: Rs 3,10,444 cr
CMP: Rs 2,136
Reliance Industries (RIL) ranks among the country’s largest companies in the private sector on various parameters. It is on the verge of commissioning two of its biggest projects in September ’08.
At full utilisation levels, these projects are expected to add nearly Rs 80,000 crore to RIL’s consolidated revenues, further strengthening its numero uno position in India Inc. Its current market valuation appears to have taken into account the immediate gains from these two projects.
However, going forward, the stock may witness stagnation as its future outlook is getting cloudy due to the build-up of several negative factors. Nevertheless, there remains a possibility that given its strong cash flows, presence across industries and forward and backward linkages, RIL can spring positive surprises. Long-term investors can accumulate the stock at dips.
RIL has invested nearly $8.8 billion in its Krishna-Godavari (KG) basin gas fields since their discovery in ’02. Production from these fields is expected to start by the end of September at the rate of 25 million cubic metres a day (mcmd), which will be gradually scaled up to 80 mcmd.
The second mega-project, which will commence operations this month, is Reliance Petroleum’s 29 million tonne per annum (mtpa) high-complexity petroleum refinery in Jamnagar special economic zone (SEZ).
Latest media reports and comments from government quarters suggest that RIL will be able to stick to its initial schedule of completion by September ’08 and commence commercial production by December ’08. This Jamnagar plant will make RIL not just India’s largest petroleum refiner, but also the world’s largest single location refiner.
However, RIL is facing some imminent woes. The natural gas project is embroiled in two major lawsuits with Reliance Natural Resources (RNRL) and NTPC, both of which are claiming a huge chunk of gas supply at low prices.
This has disabled the company from selling gas to any third party. Any adverse outcome of these court cases can have a major impact on RIL’s future profitability, as well as its return on capital.
Similarly, the RPL refinery project, which was conceived when globally refinery margins were on the rise, is getting commissioned just when the rally has waned. The benchmark Singapore refining margins have fallen sharply to around $4 per barrel as of end August ’08 from $12 at the start of July ’08.
In view of several other refineries coming up in West Asia and China, the refining industry is expected to remain in a downward trend for the next 3-4 years. Over the past couple of years, RIL has aggressively entered the organised retail sector, opening around 735 stores across 13 states. This is another industry which is witnessing the entry of too many players, putting a big question mark on its profitability.
Initially, RIL’s valuation had got a boost from the potential growth prospects of its two mega projects. However, as the problems became more apparent, valuations plummeted. The scrip’s price-to-earnings (P/E) multiple, which had crossed 31 in January ’08, has halved to around 15.5 now, as the stock price fell from Rs 3,200 to Rs 2,150.
Still, the company commands one of the highest valuations among global peers such as Exxon Mobil, Royal Dutch Shell or PetroChina. And since current valuations have already factored in higher profitability of the new businesses, there is every reason that the valuations can weaken further.
Despite all these negatives, there are a few positive factors, which will help add some shine to the company’s performance. Being fully integrated in the petroleum value chain, the lower profitability of its refining business can be compensated to a certain extent by future improvement in profits of its petrochemicals business.
Secondly, the recent weakening of the rupee bodes well for RIL, which is increasingly focusing on exports, while its domestic revenues are also linked to the rupee-dollar exchange rate.
RIL operates in a capital-intensive commodity business, which is subject to business cycles. Against this background, it is creditable for the company to have maintained a return on capital above 18% over the past five years. But this has necessitated the company to plough back most of its profits into the business and pay just around 10% as dividends.
This will continue in future too and RIL’s dividend payouts, as well as dividend yields will remain very low. In the long term, several other projects that RIL is pursuing should help boost its growth momentum. The company is developing special economic zones in Haryana, Gujarat and Maharashtra.
It is also investing in exploration blocks in India, as well as abroad, and has bagged coal-bed methane (CBM) blocks. The potential hydrocarbon reserves from these blocks will also add value to the company. Hence, long-term investors can buy into the scrip when it falls, but they should not expect much upside in the near term from the commissioning of RIL’s two mega projects.
--------------------------------------
Derivatives Diary: The action is hotting up 1 Sep, 2008, 0033 hrs IST, Shakti Shankar Patra
Both the Dow and the Nifty found support at the lower ends of their respective ranges and bounced back sharply late in the week.
'Committee to Save the Dollar' ain't needed 1 Sep, 2008, 0030 hrs IST
The dollar isn’t doing better because the US outlook is brightening. Rather, economies, such as Japan’s and those in the euro area, that were forecast to hold their ground are losing pace.
Investors can accumulate Opto stock on dips 1 Sep, 2008, 0027 hrs IST, Kiran Kabtta
Opto Circuits offers the right mix of high growth and dividends. Though the company seems fairly valued, investors can accumulate the stock on dips.
HDIL's financial viability looks positive 1 Sep, 2008, 0023 hrs IST, Supriya Verma
Given its proven ability to complete slum rehabilitation projects, HDIL’s financial viability seems positive. The company is also set to withstand the slump in realty sector.
Stocks to buy: L&T, Areva, HCL, Ansal Properties 1 Sep, 2008, 0020 hrs IST
Here is a list of stocks you can buy this week.
Buy RIL's stock when it falls 1 Sep, 2008, 0018 hrs IST, Ramkrishna Kashelkar
Long-term investors can buy Reliance Industries’ stock when it falls, but they should not expect much upside in the near term from the commissioning of the company’s two mega projects.
Goa Carbon's stock attractively priced 1 Sep, 2008, 0017 hrs IST, Amit Jain
Goa Carbon’s stock is attractively priced and offers significant upside potential for investors in the medium term.
Adhunik Metaliks provides good investment opportunity 1
Sep, 2008, 0015 hrs IST, Santanu Mishra
Backward integration plans, higher margins and investments in allied segments will drive Adhunik Metaliks’ growth. Investors with a horizon of 3-4 years can consider the stock.
How the deals stack up for India Inc in UK 1 Sep, 2008, 0011 hrs IST
While OVL agreed to buy Imperial Energy, Infosys gobbled up Axon. ETIG ploughed through the numbers to see how the deals stack up for Corporate India.
Week Ahead: Short term trend is bullish
Source:Economic Times, Business Standard.
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