India Daily, May 24, 2013
Total Page:16
File Type:pdf, Size:1020Kb
INDIA DAILY May 24, 2013 India 23-May 1-day1-mo 3-mo Sensex 19,674 (1.9) 2.6 1.8 Nifty 5,967 (2.1) 2.2 2.0 Contents Global/Regional indices Special Reports Dow Jones 15,295 (0.1) 4.2 9.2 Nasdaq Composite 3,459 (0.1) 5.8 9.4 Strategy FTSE 6,697 (2.1) 4.1 5.7 Strategy: E-governance Nikkie 14,922 3.0 7.8 31.1 Hang Seng 22,767 0.4 2.6 (0.1) Strategy: Rush to comply with MPS norms KOSPI 1,975 0.3 2.1 (2.2) Daily Alerts Value traded – India Cash (NSE+BSE) 173 127 129 Results Derivatives (NSE) 2,653 2,129 1,205 State Bank of India: Can growth solve key problems? Deri. open interest 1,668 1,570 1,576 Bharat Heavy Electricals: Ordering revival necessary for stock re-rating; not visible yet on sectoral issues Tata Steel: Excellent overall performance Forex/money market JSW Steel: Volume-led beat Change, basis points 23-May 1-day 1-mo 3-mo Thermax: Negative outlook on broader capex scenario; seeing few large Rs/US$ 55.7 (4) 135 163 enquiries 10yr govt bond, % 7.5 1 (36) (47) Net investment (US$mn) Results, Change in Reco 22-May MTD CYTD DishTV: Weak 4QFY13 on expected lines but operating metrics surprise yet FIIs 294 3,175 14,509 again MFs (38) (491) (2,061) Sector Top movers -3mo basis Change, % Cement: 4QFY13 - disappointing on volume and pricing Best performers 23-May 1-day 1-mo 3-mo RCOM IN Equity 106.0 (3.5) 12.1 50.4 UNSP IN Equity 2411.0 (3.0) 14.8 33.1 HUVR IN Equity 585.3 0.0 22.1 28.5 UNTP IN Equity 157.3 1.1 21.9 25.5 LPC IN Equity 747.8 (2.7) 10.0 24.5 Worst performers MMTC IN Equity 228.5 (7.0) 3.0 (57.7) WLCO IN Equity 47.8 (3.1) (5.9) (43.1) SUEL IN Equity 13.4 (4.3) (7.0) (42.5) EDSL IN Equity 63.6 (4.4) (3.4) (41.0) IVRC IN Equity 19.2 (7.7) (7.3) (35.0) For Private Circulation Only. FOR IMPORTANT INFORMATION ABOUT KOTAK SECURITIES’ RATING SYSTEM AND OTHER DISCLOSURES. REFER TO THE END OF THIS MATERIAL. Strategy.dot INDIA Strategy GameChanger MAY 24, 2013 NEW RELEASE BSE-30: 19,674 E-governance. Indian Government’s interaction with its citizens (G2C) and businesses (G2B) is increasingly going electronic. Proposed laws on time-bound delivery via electronic platforms are imparting speed, timeliness and accuracy in important areas: (1) land, civil and judicial records, (2) benefits transfer and tax compliance, (3) procurement, auctioning and corporate affairs, among others. Transparency, accountability will reduce corruption; increase speed of doing business. E-expressway: G2B and G2C interactions are increasingly electronic India, which works as the hub of global IT industry, has been a latecomer to leveraging IT for local governance. As India moves into an era of rights, Indians are waking up to a government that needs to be more accessible and accountable. These traits are difficult to obtain in a paper-based QUICK FACTS world; a virtual world where both interaction and money are digitized makes the task of making • Interactions the government accountable much easier. Most important, it dispenses with the regime of the ’maai-baap sarkaar‘ (a poor translation: paternalistic government). between Government and E-records of you, your rights and your fights citizens is now State governments now offer electronic registration and records of birth, citizenship, education, digital, increasing marriage and death, among other civil records. States are also implementing digitization of land speed and efficiency records with the ultimate aim of moving to a Torrens land record system. As revenue departments of business get digitized and property tax becomes an important source of revenue, records of land and property are becoming available online. Judicial records are now also online. The missing piece, • Big-data is helping thankfully (?), is the interaction between the various databases. government E-tax and e-cash: Government takes and gives the e-way enforce compliance whether in tax or in The digitization of direct and indirect tax functions has simplified the filing of records, maintaining land records compliance and getting refunds. Electronic filings also make it easier to track non-compliance and evasion by mixing and matching various databases. Considerable effort is being put in designing • More open data will the GST portal and its IT infrastructure. On the tax-spending side, the UID-Aadhar based payments lead to rigorous system is being created as a platform on which various applications of benefit transfer will rest. analysis – and E-marketplaces: India’s success stories better outcomes India has embraced the National e-governance plan, which aims to bring government services to the doorstep of its citizens. We study the model of top-down planning and execution and also detail a few case studies across various sectors where digitization has made a marked impact. A transparent world governed by rule of law The government, as part of its National e-governance Plan, proposes to digitize various facets of its interaction with its citizens and businesses. Bills like ‘Electronic Delivery of Service Bill, 2011’, ‘Right of Citizens for Time Bound Delivery of Goods and Services and Redressal of their Grievances Bill, 2011’ and ‘Public Procurement Bill, 2012’ are creating the legal framework for time-bound electronic service delivery. GameChangers: Increase bandwidth; free data; involve citizens Digitizing India has the potential of reducing bureaucratic hurdles in starting and running businesses in India. Making interfaces more customer friendly, introducing and publicizing penal actions taken and consolidating the data across platforms will make governing India easier and possibly a lot cheaper. More important, the data that is generated needs to be made public in a format that can be understood by both humans and machines: high-quality data coupled with in- depth analysis can lead to significantly improved outcomes. For private Circulation Only. FOR IMPORTANT INFORMATION ABOUT KOTAK SECURITIES’ RATING SYSTEM AND OTHER DISCLOSURES, REFER TO THE END OF THIS MATERIAL. Strategy India Exhibit 1: The digital interaction between the citizen/business and Government has improved meaningfully A digital device in the middle makes for a rule-based system Source: Kotak Institutional Equities KOTAK INSTITUTIONAL EQUITIES RESEARCH 3 India Strategy Exhibit 2: G2B and G2C interactions have changed meaningfully for the better Sample list of G2B and G2C interactions Interaction Portal or authority G2B interactions Starting a company Online process at Ministry of Corporate Affairs website to register a company, get www.mca21.gov.in a name, etc. Filing taxes Online tax filing for both direct and indirect taxes Different portals for direct and indirect taxes Resource auctions Auctions are now electronic and anonymous Various portals/systems for different ministries like coal, telecom Procurement Government procurement now takes place via online bidding www.eprocure.gov.in G2C interactions Voting Electronic voting machines (EVMs) mean quicker, more accurate and tamper-proof EVMs run by an independent Election Commission counting of votes Filing taxes Online filing of income tax; quicker processing and refund https://incometaxindiaefiling.gov.in Land records Digitized agri-land records including ownership, cropping patterns, encumbrances, Various state portals etc Railway tickets State of the art website with easy booking and cancellation options www.irctc.co.in LPG cylinders Online/IVR booking of LPG gas cylinders Transparency portals of the three leading PSUs: BPCL, HPCL, IOCL Passports Online application and appoitment management system www.passportindia.gov.in Various civil records Birth, residency, marriage, caste, etc certificate can now be applied for and paid Each state/city has a separate portal online Source: Kotak Institutional Equities Exhibit 3: Various state governments are progressing briskly towards land records digitization Status of land record digitization across Indian states Whether hand Whether legal sanctity Whether ROR Whether map written record given to computerized available on available on State name discontinued ROR web Website address web Date Assam Yes Yes Yes http://10.177.15.67/webdharitree No Jan 18, 2012 Bihar No No No No Jan 18, 2012 Chhattisgarh No Yes Yes http://cg.nic.in/cglrc Yes Mar 28, 2012 Goa Yes No Yes http://dslr.goa.nic.in No Jan 18, 2012 Gujarat Yes Yes No No Jan 18, 2012 Haryana No Yes Yes http://www.jamabandi.nic.in No Jan 18, 2012 Himachal Pradesh Yes Yes Yes http://admis.hp.nic.in/himbhoomilmk No Jan 09, 2012 Karnataka Yes Yes Yes http://bhoomi.karnataka.gov.in/landrecordsonweb No Jan 18, 2012 Kerala No No No No Jan 19, 2012 Maharashtra No Yes Yes http://mahabhulekh.maharashtra.gov.in No Jan 18, 2012 Sikkim Yes Yes No No Jan 18, 2012 Tamilnadu Yes Yes Yes http://taluk.tn.nic.in/eservicesnew/home.html No Jan 31, 2012 Tripura Yes Yes Yes tsu.trp.nic.in/jami No Feb 03, 2012 Uttarakhand Yes Yes Yes http://devbhoomi.uk.gov.in No May 26, 2012 Uttar Pradesh Yes Yes Yes http://bhulekh.up.nic.in No Jan 18, 2012 West Bengal Yes Yes No No Feb 16, 2012 Total 11 13 11 1 Source: National Land Records Modernization Programme, Department of Land Resources 4 KOTAK INSTITUTIONAL EQUITIES RESEARCH Strategy India Exhibit 4: Digitized land records are more legible - and also reduce the importance of the local patwari Land records before and after Bhoomi implementation in Karnataka Source: Bhoomi project, Karnataka Exhibit 5: Online tax filers have increased 10X over the past five years Number of online returns filed, March fiscal year-ends, 2008-13 (mn) 25 20 15 10 5 0 2008 2009 2010 2011 2012 2013 Source: Income