Knowledge plus series i 240813
14
From Research Desk VALUE PLUS - The Family Office KNOWLEDGE PLUS For Wealth Plus 24 th August - 2013
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Dear Sir, 'Knowledge Plus for Wealth + ' will give you the overview of the recent happenings in the financial market. In this issue, we would be discussing on 'Outlook on Metal Sector. Which gives you idea about Global steel production, raw material and its prices and opportunity for Indian Investor in Metal sector. Kindly download the details from following Link : http://www.youtube.com/watch?v=OhnZptiyyvw Kindly share your valuable feedback at [email protected] to help us serve you better. Regards, Value Plus - The Family Office GF 4-8, Productivity House, Productivity Road, Alkapuri, Vadodara - 390 007 Tel. : +91-265-2324600, 6629800 Web: www.valueplusinv.com, E-mail: [email protected] www.valueplusinv.com
Transcript of Knowledge plus series i 240813
FromResearch Desk
VALUE PLUS - The Family OfficeKNOWLEDGE PLUSFor Wealth
Plus
24th August - 2013
Last week at the Financial Markets!!!
• SENSEX fell by 78.74 points (-0.42%) and closed to 18519 at end of the week.
• (FIIs) remained net sellers in equity and debt segment with net outflow of Rs. 3269.80 crore and Rs 201.90 crore respectively.
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News Impact
RBI announced Rs 8,000 crore bond buyback programme, an attempt to improve the liquidity
Liquidity deficit situation for bank will improve.
Reduction in mark to market loss of existing bond portfolio as bond yield reduced.
India's services exports declined by 3.5% and stood at $12.35 billion in June
Current account deficit may widen furtherRupee may depreciate further.
Last week at the Financial Markets!!!
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Price Performance of Different Asset Class
Next Week in the Financial Markets...?
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• Expiry of derivatives contracts on August 29, 2013.
• India’s Q1 GDP data will be released on 30th August 2013.
• Federal Reserve's three-day annual monetary conference On tapering of the Fed's bond purchases will begin on Friday, 23 August 2013 .
Hot Topic of the Week
Metal Sector Outlook
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Global Production
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•
Global steel production in 1st Qtr of 2013
was up by almost 2.3%.
Demand Outlook
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Due to recovery in global economy, it is projected that steel demand will increase by almost 2.9% across the globe.
Source : World Steel Association
Steel Raw Materials- Price
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Source : MOSL
As a result of restocking by
China, iron ore prices shoot up.
Steel Raw Materials- Iron ore Inventory Chine
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Source : MOSL
Sharp fall in inventories due to
strict finance norms by Central bank of
China
Growth in Industrial Production
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Developed countries like UK and US are also showing recovery which again can give rise to industrial production.
Source : MOSL
Vehicle Production in India
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Although Indian GDP grew at slow pace and auto sector faced hard time, underlying growth will continue.
Valuation Parameter On the basis of forward price to earning valuation India’s top 5 steel companies are trading at average FY14PE of 7.18x vs CY17.88x of top 5 global steel companies.
Indian steel companies average P/BV is 0.88x vs 1.06x of global steel companies.
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Conclusion• We believe, recovery in global economy has started which
will support global metal sector.
• Also low inventory pileup on raw material will support higher metal prices.
• On valuation parameter Indian steel companies are available at cheaper valuation than global company which could create good opportunities for Indian Investors.
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Knowledge Plus for Wealth +
Research Desk
VALUE PLUS - The Family Office
Office: (0265 -2324600,6629800)Email: [email protected]: www.valueplusinv.com
