India Morning Report: Market forgets Hero hit in Reliance comebacks

Image representing Panasonic as depicted in Cr...
Image via CrunchBase

Hero is a forgotten brand today haemorrhaeging 5% market share from August 2012 to 36% in September even as Bajaj Auto maintains its key following of the brand and generates interest in new export markets. While the idle October till now sa markets reacting with aa dropin consumer Discretionary and non discretionary performance on the bourses in almost a synchronous reaction, the consumer brands including unlisted Sony, Panasonic, LG and Samsung with new lasting promotions and discount melas to save the festive season as consumers have not said they do not want to spend.

Financial markets in the meantime were roused appropriately by Axis Bank’s good enough showing though as promised Axis booked another INR 5 B in provisions on top of 2.5B in the year ago quarter, maintaining its 20% growth in Profits and a NII jump of only 16% to INR 23.2  B Both are nearly 10-20% lower than that of HDFC Bank and the bank is expected to lose higher NPAs than the industry in the coming few quarters. Non Interest income is stuck at INR16 B for the quarter. It seems credit growth has plateaued at the bank

Image representing Sony as depicted in CrunchBase
Image via CrunchBase

concurrent to losing restructuring battles and exponentially rising provisions. But as of now ‘like Citi’ this was expected for the bank.

The highlight of the day and probably all week was the jump in refining revenue for Reliance at a new $9.5 GRM for the company. Its other two businesses hasd petchemh holding to its share of revenues of nearly INR10000 Crores or INR100B, overall topline slowing to INR 90.3B down 6% sequentially instead of the usual larger drops due to the continuing reduction in E&P revenues as E&P slows down at KG D6. RIL revenues are up 15% over prior year and the stock has finally got a new range perhaps still redefining ruling Sensex levels after any correction as it moves up smartly from 821


RIL Logo
RIL Logo (Photo credit: Wikipedia)




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