28 November 2017
Market snapshot
Equities - India
Close
Chg .%
Sensex
33,724
0.1
Nifty-50
10,400
0.1
Nifty-M 100
20,085
0.5
Equities-Global
Close
Chg .%
S&P 500
2,601
0.0
Nasdaq
6,879
-0.2
FTSE 100
7,384
-0.3
DAX
13,000
-0.5
Hang Seng
11,772
-1.1
Nikkei 225
22,496
-0.2
Commodities
Close
Chg .%
Brent (US$/Bbl)
63
0.0
Gold ($/OZ)
1,294
0.4
Cu (US$/MT)
6,916
-0.9
Almn (US$/MT)
2,120
0.1
Currency
Close
Chg .%
USD/INR
64.6
-0.2
USD/EUR
1.2
0.6
USD/JPY
111.3
-0.1
YIELD (%)
Close
1MChg
10 Yrs G-Sec
7.1
0.1
10 Yrs AAA Corp
7.8
0.0
Flows (USD b)
27-Nov
MTD
FIIs
-0.1
2.5
DIIs
0.0
1.2
Volumes (INRb)
27-Nov
MTD*
Cash
312
386
F&O
5,718
6,612
Note: YTD is calendar year, *Avg
YTD.%
26.7
27.0
40.0
YTD.%
16.2
27.8
3.4
13.2
25.3
17.7
YTD.%
14.6
11.6
25.2
24.4
YTD.%
-4.9
13.2
-5.0
YTDchg
0.5
0.3
YTD
8.0
12.5
YTD*
306
5,623
Today’s top research theme
Oil & Gas (Thematic) – Expanding horizons
Green corridors, BS-VI, and new cities to drive growth
The first wave of volume growth came in when the government granted top
priority to city gas distribution companies (CGDs) for allocation of cheaper
domestic gas in 2014. The second wave came with increased emphasis on
cutting vehicular pollution through restrictions on diesel vehicles and plying of
vehicles with odd/even registration plates on alternate days.
We believe that green corridors, intercity travel, inorganic growth through new
areas, and residential usage would drive growth of CGDs, going forward. With
the implementation of BS-VI emission norms, economics would be even more
against diesel usage and would aid volume growth for IGL, MAHGL and GUJGA.
Global peers trade at 10.5x FY19E EV/EBITDA and 17.3x FY19E P/E, while Indian
CGDs trade at 13.5x FY19E EV/EBITDA and 24.4x FY19E P/E. Indian CGDs remain
in a sweet spot considering increased emphasis on usage of gas, firm supply of
cheaper domestic gas, and penetration of gas in newer geographies driving
usage of CNG for intercity travel.
Research covered
Cos/Sector
Motherson Sumi
Whirlpool
Metals Weekly
Key Highlights
On track to attain Vision 2020
Focus on premium segment and bridging product gaps
Iron ore and coking coal prices increase ~8% WoW
Oil & Gas (Thematic) Expanding horizons - Green corridors, BS-VI, and new cities to drive growth
Piping hot news
Trai to issue suggestions on net neutrality today
After over one year of consultations and heated debate, the Telecom Regulatory
Authority of India (Trai) will issue its much-awaited recommendations on net
neutrality. “We will issue the recommendations on net neutrality tomorrow,” Trai
chairman R.S. Sharma told reporters on Monday…
Chart of the Day: OIL & GAS (THEMATIC) – Expanding horizons
Strong volume growth in the past - Good saving potential
for vehicles
BS-VI could result in conversion of LCVs
Research Team (Gautam.Duggad@MotilalOswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.