MARKET: Sensex zooms 637 pts on possible roll-back of higher tax on FPIs

All that happened in markets today

4:01 PM

EXPERT COMMENT | Devang Mehta, Head – Equity Advisory, Centrum Wealth

Markets today started to sense some relief coming in for the Capital markets & clarification or rollback of surcharge on FPIs. The recent round of market correction was led by FII sell off post the budget and the selling intensified in the last few days, where evidence of our economic slowdown, poor earnings in certain sectors and global volatility as well as rhetoric of trade wars came to haunt. Some confidence boosting measures and steroids for the economy is expected as finance ministry seems to be engaging in extensive discussions with industry participants. However, it is too early to speculate on policy decisions, but a bounceback after such a huge fall was not entirely unexpected.

 

4:00 PM

MARKET COMMENT | Vinod Nair, HoR, Geojit Financial Services

Market gets a breather towards the close and reclaimed 11,000 level due to the expectation that the government is likely to be lenient on higher surcharge on FPIs which influenced bears to cover their short positions. Additionally, prospects of lower interest rate going forward and strength in rupee will ease liquidity crunch situation.

 

3:54 PM

Sectoral gainers and losers on the NSE

3:54 PM

Top gainers and losers on the S&P BSE Sensex

3:34 PM

CLOSING BELL

The S&P BSE Sensex jumped 637 points or 1.74 per cent to settle at 37,327.36 while the NSE's Nifty50 index ended at 11,032.45, up 177 points or 1.63 per cent.

3:16 PM

Govt looks to exempt foreign portfolio investors from higher taxes: Report

The Centre is likely to exempt foreign portfolio investors from an increase in taxes that was part of the Union Budget approved by Parliament but heavily criticised, a government official said on Thursday. The Budget provided for increased personal income taxes on those with annual income of more than Rs 2 crore ($283,045). READ MORE

3:01 PM

Centrum Broking on The Ramco Cements

We believe TRCL’s performance largely correlates with its home markets Tamil Nadu and Kerala which are reviving and will help improvement its performance. Further, TRCL is adding structural strength by focusing on regional diversification (in the East) and cost tightening measures. Assign an ADD rating. At our TP ( Rs773) the stock trades at an EV/EBITDA of 13.0x March 2021E earnings.

2:45 PM

Jindal Steel & Power hits over 2-year low; tanks 17% in two days

Shares of Jindal Steel & Power hit an over two-year low at Rs 95, down 7 per cent on Thursday. The stock has plunged 17 per cent in the last two sessions on the BSE, on rumors of payment default, which company categorically rejected. The stock was trading at its lowest level since February 2, 2017, when it touched a low of Rs 93 in the intra-day trade. READ MORE

 

2:30 PM

NEWS ALERT | PM Modi to address the nation at 8 pm: CNBC -TV18

2:29 PM

NEWS ALERT | Govt likely to roll-back recently imposed higher tax on FPIs, reports CNBC -TV18

2:17 PM

ICICI Securities on KEC International

Rating: Hold

 

CMP: Rs 290 

 

Target: Rs 330 (14%) 

 

Target Period: 12-15 months

 

We expect revenue and PAT CAGR of 15% and 19.1%, respectively, in FY19-21E. We expect strong order inflows in FY20 across sectors. We value KEC at 12x P/E on FY21E EPS to arrive at a fair value of | 330/ share. We maintain our HOLD rating. Key risks: Any slowdown in execution of T&D backlog and rise in interest costs, may impact profitability.

2:00 PM

Ultratech Cement falls over 1.50% post Q1 results announcement

1:53 PM

Earnings Alert | Ultratech Cement

- Consolidated net sales rises 15% YoY to Rs 10,027 crore;

 

- Consolidated Net profit up 91.4% YoY to Rs 1,208 cr

1:46 PM

MARKET CHECK | Top losers on the BSE at this hour

DHFL	46.40	-3.00	-6.07
CUMMINSIND	601.30	-51.35	-7.87
RELINFRA	45.30	-5.25	-10.39
ARVIND	53.35	-2.95	-5.24
BALRAMCHIN	122.70	-6.85	-5.29

1:45 PM

Renewable power firms stare at bleak cash flows, defaults in Andhra Pradesh

Renewable power project developers are staring at weak cash flows from their projects in Andhra Pradesh. Not paid by the state for a year already, these companies fear that payment will remain stalled till legal clarity emerges on the state's decision to renegotiate tariff of all renewable projects. Sector executives said that the unpaid dues total up to Rs 7,000 crore for the past year. READ MORE

1:32 PM

FII stats

DATE	BUY VALUE (rs CR)	SALE VALUE (rs CR)	NET VALUE (rs CR)
06-AUG-2019	5409.57	7273.75	-1864.18
05-AUG-2019	4736.41	6907.37	-2170.96
02-AUG-2019	4811.88	7701.39	-2889.51
01-AUG-2019	5265.89	6432.76	-1166.87
31-JUL-2019	5886.28	7351.99	-1465.71

1:30 PM

Most telecom stocks trade firm

COMPANY	LATEST(rs)	CHG(rs)	CHG(%)	VOLUME
VODAFONE IDEA	5.63	0.30	5.63	137621135
REL. COMM.	1.32	-0.06	-4.35	9161763
BHARTI AIRTEL	376.80	11.05	3.02	568564
TATA COMM	469.65	4.55	0.98	23154
TEJAS NETWORKS	90.00	0.20	0.22	4365

1:28 PM

Market check :: NSE

1:26 PM

Motilal Oswal Securities on Indian Hotels

Factoring in the impact of Ind-AS 116 into our model, we raise our FY20/21 EBITDA estimate by 18%/14%, but cut the PBT estimate by 3%/4%. We value the stock at 17x FY21E EV/EBITDA. On an SOTP basis, we arrive at a target price of Rs 178 (upside of 32%). Maintain Buy.

1:25 PM

ICICI Securities on Zee Media

Rating: Buy

 

CMP: Rs 11 

 

Target: Rs 14 (25%) 

 

Target Period: 24-36 months

 

At the CMP, the stock is trading at an attractive valuation of ~6.5x FY20E EPS. While valuations appear to be cheap with operational performance being strong, it is largely on account of ongoing issues at promoter’s level and risk of advances wipe-off. While we await closure of stake sale deal of Zee Entertainment, we believe that continued weak performance at diligent media will impact their reported PAT with possible write-down in investment. However, on account of continued superior operational performance, we continue to remain constructive on the long term prospects of the stock. We maintain BUY with a revised target price of Rs 14/share (8x FY20E EPS) with a view of 24-36 months.

1:25 PM

Dolat Capital on ITC

Since FY14, ITC’s cigarette volumes have declined 13% overall, due to a continuous increase in duties and rise in the contribution of smuggled cigarettes in the market. After FY14, the frequency of duty hikes (at least once in a year) has fallen, compared to earlier period (once in two years).

In the last budget, the duty remained unchanged. We believe that the pace of duty increase has moderated, which should help volume growth to improve further (5% volume growth estimate for FY20E). We do not see FY19 base as a hurdle for growth as the long-term base remains favorable.

1:24 PM

Sharekhan on LIC Housing Finance (LICHF)

We believe, LICHF may be vulnerable to margin pressures going forward as well as developer loans tend to turn sour, which can affect profitability. Moreover, due to intensifying competition in the housing finance market, where both private as well as PSU banks vie for market share gains, the outlook becomes all the more challenging. Hence, we see little probability of a near-term expansion in NIMs, improvement in interest spread and return on assets (ROA).

Also, considering the present scenario, we believe that the developer loan segment warrants caution. Hence, we maintain our Hold recommendation with a revised price target of Rs. 500.

1:23 PM

ICICI Securities on Symphony

Despite a strong recovery in Q1FY20, we believe consolidated EBITDA margins in the medium term would be under stress due to rising competition and consolidation of low margin business (consolidated EBITDA margin around 23% vs. standalone EBITDA margin of ~30%). Hence, we maintain HOLD rating on the stock with a revised target price of | 1295 (valuing at 38x FY21E).

1:22 PM

ICICI Securities on Varun Beverages

As volume growth picks up in new territories and the company participates in the manufacturing segment of Tropicana, we expect revenue & earnings CAGR of 21.5% & 25.5% in CY18-21E respectively. However, the stock is richly valued at 12.5x EV/EBITDA on CY21E. Hence, we maintain HOLD with a target price of Rs 693/share.

1:21 PM

Elara Capital on JK Lakshmi Cement

The stock trades at an EV per tonne of $56 on FY21E capacity. While cement prices have softened across regions over the past two months, price rollbacks in JKLC’s key markets, such as North India and Gujarat, have been lower than the other markets and are expected to witness a gradual improvement post Monsoon, which would lead to healthy realization.

Further, the recently completed 20MW captive power plant (CPP) in Chhattisgarh would lead to cost savings. While we lower our earnings by ~6% for FY20E to factor in muted volume growth for the year, we largely retain our FY21 estimates. Therefore, we reiterate Buy with a revised target price of rs 508 from Rs 519 on EV per tonne of $80 on FY21E capacity

1:04 PM

Over 20 IPOs stare at SEBI approval lapses

The decline in secondary markets and economic downturn are likely to play spoilsport for over 20 companies looking to launch their initial public offerings (IPOs). . According to data by PRIME Database, the approval granted by markets regulator Securities and Exchange Board of India (Sebi) to nearly two dozen companies is set to expire over the next few weeks. READ MORE

12:58 PM

Mahindra & Mahindra warns of job losses in auto sector, seeks government's help

A lending crisis among the country's shadow banks, which fund nearly 55-60% of commercial vehicles and 30 per cent of passenger cars, has led to automakers, including M&M and its rivals Maruti Suzuki India Ltd and Tata Motors Ltd, to either cut production or temporarily close plants. A slump in sales is also triggering massive job cuts in the sector that employs 35 million people directly and indirectly. Reuters reported on Tuesday that initial estimates suggest automakers, parts manufacturers and dealers have laid off about 350,000 workers since April. READ MORE

12:57 PM

Top gainers on the BSE at this hour

NILKAMAL	1,045.00	+40.85	+4.07
MMTC	19.35	+1.05	+5.74
SIEMENS	1,154.00	+53.25	+4.84
IFCI	7.85	+0.30	+3.97
BLUESTARCO	726.95	+29.25	+4.19

12:34 PM

Indiabulls Real Estate up 6%

12:28 PM

From Khadim to S Chand & Co: 11 cos' market-cap slips below IPO issue size

The current weakness in the market, especially the mid-and small-cap segments, has dented the fortunes of nearly a dozen companies that raised funds via IPOs during last five years with their market-cap slipping below their respective issue size. READ MORE