Anand James, Chief Market Strategist, Geojit Financial Services
Bargain hunting in the index heavy weights fueled a sharp surge in the domestic indices. Rapid pace of recapitalization process has kept the PSU bank stocks buoyant meanwhile the steadiness in oil prices on hopes of an extended output deal buoyed the global markets. Close to the end of the domestic earnings season, investors will now turn their focus on the US tax reform bill and other major global cues.
3:46 PM Sectoral trend: Nifty IT top gainer
3:43 PM Sensex heatmap at close
3:40 PM Markets at close
The S&P BSE Sensex ended at 33,106, up 346 points, while the broader Nifty50 close at 10,214, up 96 points.
HDFC Standard Life to make stock market debut tomorrow
HDFC Standard Life Insurance Company, which has recently concluded its Rs 8,695-crore initial public offering, will make a debut on stock exchanges tomorrow.
The shares will be listed on the BSE and the NSE, the company said. READ FULL REPORT
Liquor shares rally
Shares of liquor companies were in focus and rallied up to 18% on the BSE in intra-day trade on the back of heavy volumes.
Radico Khaitan, Globus Spirits, GM Breweries and Som Distilleries were up more than 5%, while Empee Distilleries, Tilaknagar Industries, Pioneer Distilleries, United Spirits and United Breweries were up in the range of 2% to 5%. READ MORE
3:05 PM Markets check at 3:00 pm
Edelweiss Securities on Grasim Industries
Grasim Industries’ (Grasim) standalone EBITDA of Rs 7.85bn (not comparable on YoY/QoQ basis due to merger with AB Nuvo) stood marginally ahead of INR7.67bn estimate. VSF margin expanded 310bps QoQ following restart of domestic pulp unit even as realisations dipped 3% QoQ. Comparable VSF volume rose 5% YoY, implying >100% capacity utilisation. Chemical margins expanded by 190bps QoQ on improved realisation for chlorine even as blended realisations dipped ~8% QoQ. Margin outlook for both these leading segments remain stable and planned capacity addition offers steady volume growth visibility. With outlook for key subsidiaries – UltraTech Cement (UTCL) and Aditya Birla Capital (ABCL), remaining robust, we maintain our positive stance on Grasim. Maintain ‘BUY’ with TP of Rs 1,297.
Infosys hits over two-month high
The stock of IT consulting & software Company is trading at its highest level since August 21, 2017, up 14% from its 52-week low of Rs 862, touched on August 22, in intra-day trade. Thus far in the month of November, Infosys outperformed the market by gaining 6.5% against 0.54% decline in the S&P BSE Sensex. READ MORE
2:05 PM Top five gainers on Nifty
2:01 PM How India Inc numbers on WhatsApp chats compared with actual results
Reuters has documented at least 12 cases of prescient messages about major Indian companies being posted in private WhatsApp groups.
Below are examples of the numbers being circulated with an explanation of local market abbreviations and terms.
The Securities and Exchange Board of India (SEBI) did not respond to requests for comment. WhatsApp responded to a request for comment by pointing to its terms of services, which state users can use the platform only for "legal, authorized, and acceptable purposes".
READ FULL REPORT
HDFC Securities on Britannia Industries
Britannia's revenue/EBITDA/PAT CAGR came in at 11%/32%/36% respectively during FY13-FY17. Given healthy earnings growth (21% EPS CAGR over FY17-20E), improving core RoCE and FCF generation of Rs 11-12 billion in FY19-20E, high valuations are justified.
With improving demand (especially in rural areas), benign RM and BRIT’s successful execution of various initiatives, we upgrade our target P/E multiple to 42x (40x earlier). We value BRIT based on P/E of 42x Sep-19EPS. Maintain BUY with a target price of Rs 5,226.
Suzlon Energy extends fall post Q2 results
Suzlon Energy hit a 52-week low of Rs 12.80, down 6%, extending its 12% decline of the past three trading sessions, after the company reported Rs 374 crore consolidated loss before exceptional items and tax in September quarter (Q2FY18). It had reported profit of Rs 251 crore before exceptional items and tax in a year ago quarter. READ MORE
1:00 PM Markets check at 1:00 pm
At 1:00 pm, the S&P BSE Sensex was trading at 33,038, up 277 points, while the broader Nifty50 was ruling at 10,196, up 78 points.
HDFC Securities on Idea Cellular
Ideation in progress Idea’s 2QFY18 numbers came in weak, as expected. Sequentially, revenue declined 8.6%, EBITDA 19.9%, subscribers 3.5% and ARPU 6.4%. Yet, healthy growth in data usage and strict cost control measures were key positives. Our positive thesis on Idea is premised on the proposed merger with Vodafone, and delivery on guided synergies of Rs 140bn, with ~60% in opex from the fifth year of merged operations.
BUY with a target price of Rs 120: Our target price is based on pro-forma financials of the merged entities, and factors in modest synergies. In the medium-term, Idea could deliver superior returns, as its merger consummates in 2HCY18, and EBITDA rebounds in a broadly three-player market.
MFs cash in as public sector banks rally
Fund managers turned net sellers in State Bank of India, Punjab National Bank and Bank of Baroda as the government's move to recapitalise public sector banks hoisted their stock prices by as much as 40 per cent. Fund managers sold shares worth Rs 1,660 crore in October in these three banks in order to book profits upon the announcement of a Rs 2.11 lakh crore bank recapitalisation programme. Instead, they turned their attention to private banks. READ FULL REPORT
Page Industries hits new high
Page Industries hits new high of Rs 24,678, up 8% on the BSE in early morning deal, gaining 20% or Rs 4,098 in the past six trading sessions after the company reported financial results for the quarter ended September 2017 (Q2FY18). The stock hit a record high of Rs 24,691 on the National Stock Exchange (NSE) in intra-day trade. READ FULL REPORT
12:00 PM Markets at Noon
11:56 AM Co-location controversy: I-T searches on NSE officials, brokers in Mumbai
The Income-tax department is conducting a massive search operation on former and present employees of the National Stock Exchange ( NSE), including a few brokers in the co-location controversy. Confirming the development, a senior income-tax department told Business Standard that searches were being carried out by the Delhi income-tax department in coordination with the Mumbai team. READ MORE HERE
11:55 AM 20 stocks that have eroded shareholder wealth in CY17
Besides RCom that has eroded shareholder wealth in CY17, shares of Videocon Industries, Religare Enterprises, Sintex, Lupin and Glenmark are some of the names in the BSE A group that have seen negative return thus far in CY17. By comparison, the benchmark indices – S&P BSE Sensex and Nifty50 – have gained around 25% CLICK HERE FOR THE FULL STORY
Can BoB spearhead a recovery among PSBs?
After several quarters of dilly-dallying on whether the worst is behind Bank of Baroda (BoB), September quarter (Q2) results offer some respite. With gross non-performing assets (NPA) ratio settling at 11.16 per cent and more importantly, gross NPAs restricted at Rs 46,307 crore — almost at par with June quarter levels, it gives investors a ray of hope that BoB is nearing the end of bad loan recognition process. READ MORE
Edelweiss Securities on NBCC
Pick up in execution key; maintain ‘HOLD’
NBCC’s order book has risen sharply over the past couple of years. The design/engineering work on many of these projects is now over and tendering is underway. We expect the company to commence work on these projects over the next couple of quarters and hence revenue growth to step-up starting Q4FY18. Pace of work on these redevelopment projects will determine stock performance, in our view. We maintain ‘HOLD’ with target price of INR270, based on 40x FY19E EPS.
Stay away, lot of froth in IPO mkt, warns Jhunjhunwala
Major Indian share investor Rakesh Jhunjhunwala said he is steering clear of all initial public offerings for now as valuations have skyrocketed amid strong inflows and exuberance in equity markets.
India has had a boom in IPOs, with a record $11 billion raised this year. However, high valuations — especially for some recent insurance IPOs —have produced some weak secondary market debuts and weighed on investor sentiment in recent weeks. READ MORE
20 stocks that have eroded shareholder wealth in CY17
Shares of Anil Ambani-owned Reliance Communications (RCom) came under selling pressure again on Thursday and lost around 4.4% to Rs 9.75 levels, after the company recently defaulted on its interest payment obligation. On a year-to-date (YTD) basis, the stock has plummeted over 70%. READ FULL REPORT
10:31 AM Markets at 10:30 am
5paisa Capital hits 5% lower circuit on listing
5paisa Capital, a part of the IIFL Group, was locked in lower circuit of 5% at Rs 380 on the National Stock Exchange (NSE) on first of its debut. The stock opened at Rs 400 on the NSE. READ FULL STORY
Life's complicated for telecom investors
The September quarter (Q2) results indicate that it’s hard going for telecom services. The industry will soon be down to three major private service providers with two loss-making PSUs limping on. RComm has defaulted on debt and registered a loss of over Rs 2,700 crore, with revenues dropping 45 per cent in Q2.
Idea Cellular also saw falling revenues and a loss of Rs 1,100 crore. Idea also sold its portfolio of 10,000 towers for 30 per cent less than expected. Bharti Airtel has also seen sustained pressure on revenues and margins. READ FULL ANALYSIS
JPMorgan, Morgan Stanley put India realty investments on hold
At a time when US-based KKR and Blackstone are pouring millions of dollars in Indian properties, JPMorgan and Morgan Stanley, two of the biggest American banks, have put on hold their private equity (PE) investments in Indian real estate.
Though PE funds of most global investors such as Wachovia, Merrill Lynch, Citigroup either exited or became dormant in Indian real estate after Lehman Brothers crisis in 2008, JPMorgan and Morgan Stanley continued and were looking to raise new property funds. READ FULL REPORT
9:33 AM Sectoral trend: All but Nifty IT were trading in green
9:22 AM Sensex heatmap at open
9:20 AM Markets at open
At 9:18 am, the S&P BSE Sensex was trading at 32,895, up 135 points, while the broader Nifty50 was ruling at 10,160, up 42 points.
9:13 AM Stocks in news
Reliance Communications, Cadila Healthcare, PVR, Rural Electrification Corp, Dixon, Tata Motors, Vedanta and more
Nifty outlook by Prabhudas Lilladher
Nifty has been correcting since seven days after making a high of 10,490 to now a low of 10,094. At this juncture, we may see some bounce coming in. However, the near term resistance would be at around 10,250-10,260 levels. The support for the day is seen at 10,060 while resistance is seen at 10,160.
BUY KOTAK BANK
CMP: Rs 1011.50
TARGET: Rs 1090
STOP LOSS: Rs 970
Asian markets cautious
Asian shares got off to a cautious start on Thursday after Wall Street stumbled despite upbeat US economic news and the Treasury yield curve hit its flattest in a decade as investors priced in more US rate hikes.
Concerns over the prospects for a massive US tax cut also showed no sign of abating as two Republican lawmakers on Wednesday criticised the Senate’s latest proposal.
MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.1% in early trade, while Australian stocks were a fraction weaker.
Japan's Nikkei dithered either side of flat, while EMini futures for the S&P 500 ESc1 eased 0.03%.
Wall Street on Wednesday
US stocks fell on Wednesday as energy sector shares dropped for a fourth straight session, tracking crude oil prices, while tech, the best performing sector this year, weighed the most on the S&P 500.
The Dow Jones Industrial Average fell 136.4 points, or 0.58 percent, to 23,273.07, the S&P 500 lost 14.17 points, or 0.55 percent, to 2,564.7 and the Nasdaq Composite dropped 31.66 points, or 0.47 percent, to 6,706.21. READ MORE
At 8:45 am, SGX Nifty was trading at 10,165, up 19 points or 0.19%.
8:46 AM Good Morning!
Welcome to Business Standard's market liveblog.
First Published: Thu, November 16 2017. 15:37 IST