Sensex rebounds 1,059 pts from day's low, ends 697 pts up; RIL leaps 2.5%

CLOSING BELL: Tech M, Tata Motors, BPCL, ITC, JSW Steel, PowerGrid, Bajaj Auto, Infosys, TCS, Bajaj Finserv, Bharti Airtel, Wipro and IndusInd Bank were the other gainers

4:05 PM

Market view: Vinod Nair, Head of Research at Geojit Financial Services

The domestic market started with a negative bias taking cues from rising crude prices and hawkish signals from Fed on aggressive policy tightening. However, the trend reversed as European markets opened on a positive note buoyed by hope that Ukraine may consider working towards a truce.

4:03 PM

European markets trade on a positive note

4:01 PM

US equity futures trade firm; Dow futures climbs over 100 points

3:59 PM

Index heavyweight Reliance Industries gains over 2%

3:55 PM

Rupee closes flat against US dollar

3:53 PM

Brent crude cools off to $114 a barrel

3:50 PM

Closing bell: Over 1,000 stocks declined whereas 962 advanced

3:44 PM

Closing bell: Broader markets firm; India Vix slips below 2%

3:42 PM

Closing bell: HUL, Nestle, Britannia lead Nifty 50 declines

3:40 PM

Closing bell: Tech Mahindra, BPCL, Tata Motors top gainers of Nifty 50

3:38 PM

Closing bell: Nifty Realty worst sectoral performer; Lodha tanks over 4%

3:36 PM

Closing bell: IT, auto stocks upbeat in trade

3:35 PM

Closing bell: 25 out of 30 Sensex stocks close in green

3:33 PM

Closing bell: Sensex closes over 650 points higher

3:32 PM

Closing bell: Terrific Tuesday! Nifty 50 closes above 17,300 levels

3:26 PM

Tobacco stocks advance mildly; ITC gains over 2%

3:23 PM

Expert take :: 'Focus on quality names where the earnings expectations are intact'

We believe that volatility will likely continue before we conclude the equilibrium. Investors should focus on the quality names where the earnings expectations are intact, and raw material inflation pressure is limited. 

 

Adding to that, we are seeing inflation as a big theme. Value focused sectors are more inflation proxies and tend to do well in rising inflationary scenarios, and we are likely to see a good amount of allocation happening in the next one to two years in value focused sectors.

Views by: Neeraj Chadawar, Head - Quantitative Equity Research, Axis Securities

3:17 PM

Zenotech Laboratories hits upper circuit as Sun Pharma buys more stake

3:13 PM

IT stocks in demand; Tech Mahindra zooms over 3%

3:06 PM

Tata Motors gains as auto maker plans to hike prices of CV range from April

2:55 PM

Equitas Holdings, Equitas SFB gain on board approval for merger plan

Shares of Equitas Holdings (EHL) and its subsidiary Equitas Small Finance Bank (ESFBL) gained up to 10 per cent on the BSE in Tuesday’s intra-day trade after their respective boards approved the merger of the two. READ MORE HERE

 

2:37 PM

Brokerage Call :: MOFSL sees input cost pressure for HUL

BUY | TP: Rs 2,500

>> The elevated input cost inflation led us to cut our FY23E/FY24E EPS for HUVR by 10.3%/8.4%. Nevertheless, the structural story for HUVR remains intact.

>> HUVR’s earnings have underperformed that of peers in recent quarters owing to: a) a higher proportion of the Discretionary/OOH portfolio at 15-20% of sales, and b) steep commodity cost inflation in its three largest categories – Soaps, Detergents, and Dish Wash. Both these negatives continue to be at play with further material cost increases and delayed recovery in the growth in premium products.

 

>> Earnings growth will bounce back to mid-teen levels once the above- mentioned worries ebb. However, uncertainty remains over the next couple of quarters.

>> We maintain our Buy rating with a TP of INR2,500 per share (55x Mar’24E EPS). However, HUVR does not feature among our top picks at present.

2:36 PM

Brokerage Call :: HDFC Securities upgrades BPCL to 'Buy'

>> We upgrade Bharat Petroleum Corporation (BPCL) to BUY, with a target price of Rs 420, given it has corrected ~30% from its peak over the last six months, owing to pressure on auto-fuel marketing margins and an increase in LPG under-recoveries.

>> We believe the recent correction is overdone, and see limited downside from current levels, led by: (1) improvements in refining margins, (2) resumption of daily auto-fuel price changes, and (3) a gradual reduction in LPG under-recoveries.

2:34 PM

Brokerage Call :: Hem Securities initiates coverage on Gravita India

>> In FY21 Gravita has posted a strong set of numbers with ROE and ROCE of 21% and 20% each which gives a set of belief in the strong fundamentals of the company.

>> Going forward , we expect Gravita to grow at decent CAGR of 25% in topline while bottom-line is expected to grow at 35% CAGR from FY22 to FY24E. Hence we are initiating coverage on the stock.

>> Currently stock is trading at 18.54x of FY22E EPS while it is trading reasonably at 10.36x of FY23E EPS & 9.27x of FY24E EPS. Hence, we initiate “BUY” on the stock and value the stock at 15.79x FY24 earnings to arrive at the target of Rs 600/- per share.

2:32 PM

Brokerage Call :: IIFL Securities cuts earnings estimate for Auto pack

>> We cut EPS estimates for the Auto OEM pack to factor in three risks: i) impact on volume growth from higher vehicle prices, higher fuel prices, lower economic growth, ii) impact on margins due to rise in global commodity prices, iii) potential impact of supply-side issues and higher overheads on vehicle production in Europe (JLR).

>> As regards supply of chips, there does not seem to be any disruption yet.

>> However, if the current geopolitical scenario continues, some impact cannot be ruled out – this is not baked into our estimates.

>> Thematically, we expect higher impact on margins of 2W OEMs than 4Ws. 4Q results may not reflect margin pressure as it would flow through with a quarter’s lag.

>> However, we expect OEMs to exercise caution on the margin outlook for 1QFY23 and beyond. Needless to say, low margin companies have seen higher EPS cuts.

2:31 PM

Brokerage Call :: IIFL Securities on Persistent Systems

BUY | TP: Rs 5,020

Persistent Systems (PSYS) has made deep investments in the past 18 months, to build a robust cloud partner ecosystem with key cloud providers globally. Via a series of acquisitions worth $220m, PSYS has one of the most potent cloud capabilities now among mid-cap peers that would ensure that its go-to-market strategy revolving around cloud & product engineering is aligned with its customers’ transformation journey. We now forecast 28% USD revenue/EPS Cagr over FY22ii-24ii. 

2:29 PM

Brokerage Call :: Edelweiss Securities initiates coverage on Nykaa

>> Nykaa is a rare new age platform company which has achieved profitability and is also management controlled and driven (promoter share: 53%) giving visibility on execution.

>> Given the opportunity size and Nykaa’s moats, we bake-in a 4x/14x increase in GMV in BPC/Fashion, respectively over FY21-26. This translates into a 37%/48% revenue/EBITDA CAGR with RoCE improving from 14% to 37%, a reflection of the asset-light scalability of the business.

>> We value the business on a two stage DCF (explicit forecast till FY41 and achieving gradual maturity by FY50), which gives us a TP of INR1,859 at a WACC of 10.8%. Initiate with ‘BUY/SN’.

>> Key business risks, for us, remains the possibility of a much lower than estimated TAM and emerging competition disrupting the profitable unit economics in BPC. Rise in cost of capital is a risk on the implied value of the business.

2:26 PM

Brokerage Call :: JPMorgan initiates coverage on Adani Wilmar

We initiate coverage on Adani Wilmar (AWL) at Neutral with a Mar-23 PT of Rs 367. AWL enjoys market-leading positions across kitchen essentials: branded edible oil, wheat flour, rice, etc., with a large household reach. Its growth strategy is premised on scaling up market share in existing categories, diversification into more FMCG segments, the pursuit of strategic acquisitions (widening product/geographic reach) and an improved margin/return profile over the medium term.

We forecast a revenue/EBITDA CAGR of 19%/24% over FY21-24. The stock has rallied 65% since listing (vs. NIFTY ~flat), and valuations at a 46x/39x FY23E/24E P/E adequately price in the franchise strength, in our view. Key share price catalysts include edible oil price moves, the scale-up of non-oil staples and potential M&A activity.

2:14 PM

Analyst's take :: KR Choksey on Ruchi Soya's FPO

Issue Opens On- Mar 24, 2022

 

Issue Closes On- Mar 28, 2022

 

FPO:  615-650 price range ~ discount of 40% 

 

Issue Size: Rs 4,300 crore

Valuation: We believe Ruchi soya’s foray into other FMCG and FMHG products including oleochemicals, biscuits, rusks, wheat flour, honey and nutraceuticals bodes well for the company’s mid to long term business growth. 

 

Ruchi soya post its acquisition by Patanjali, is drawing synergies which has led to favourable changes in the company’s business model. 

 

At the upper price band of INR 650/share, the FPO is available at 40% discount to the company’s current market price of INR 910/share.  

 

The industry is valued at TTM PE of 31.5x and Ruchi Soya's TTM PE multiple is 33.5x while the FPO is valued at a multiple of 21x. Hence, we recommend ‘SUBSCRIBE’ for the listing and long term gains for this FPO.

2:10 PM

MARKET CHECK :: Top BSE gainers at this hour