MARKET WRAP: Nifty ends May F&O expiry above 10,700, Sensex gains 416 pts

Benchmark indices gained on expectations that the domestic economy likely gained momentum in the first three months of 2018.

3:41 PM

Nifty Pharma fell over 1% 

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
SUN PHARMA.INDS.	480.35	494.55	-14.20	-2.87	18785199
DR REDDY'S LABS	1927.85	1961.80	-33.95	-1.73	1859410
CADILA HEALTH.	361.30	367.50	-6.20	-1.69	3115317
AUROBINDO PHARMA	556.30	565.65	-9.35	-1.65	4277149
BIOCON	665.40	674.90	-9.50	-1.41	5112021

3:38 PM

Nifty Bank index gains over 2%: Top gainers in the pack

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
HDFC BANK	2147.40	2048.35	99.05	4.84	9107110
INDUSIND BANK	1959.40	1884.85	74.55	3.96	3620127
ST BK OF INDIA	270.60	267.15	3.45	1.29	29605103
KOTAK MAH. BANK	1319.65	1303.25	16.40	1.26	6320209
IDFC BANK	40.55	40.05	0.50	1.25	138009862

3:36 PM

Nifty chart for the day

3:35 PM

Sectoral Trend

3:34 PM

Top Sensex gainers and losers

3:33 PM

Markets at Close

The S&P BSE Sensex ended the day at 35,322, up 416 points while the broader Nifty50 index settled at 10,736, up 121 points

3:18 PM

What is China's A-share MSCI inclusion on June 1?

 

Global market research and index company MSCI Inc will add roughly 230 China-listed shares to its emerging market benchmark in a two-step process starting on June 1, a move expected to drive a surge of foreign money into the country's stock markets.

 

MSCI's decision a year ago to include yuan-denominated Chinese stocks, or "A-shares", into its emerging market (EM) index triggered a rally in Chinese blue-chips in 2017, though the market has corrected this year amid rising borrowing costs and fears of a Sino-US trade war. READ MORE

3:08 PM

The quiet upheaval in Indian broking that's taking a bite out of revenues

 

The nearly 200-billion rupee Indian broking industry is going through a bit of turbulence. And its roots can be traced all the way to Europe.

 

The European Union has introduced new rules that are already taking a bite out of revenues and is changing how research and execution services are offered to some of India’s largest foreign investors. The resulting pressure on earnings is likely to mirror the tumult seen elsewhere in the world, according to experts. READ MORE

2:57 PM

ANALYSIS Debt-free firms make up 57% of all market cap; Why Dalal Street loves them

 

In a world awash with debt, Dalal Street shows special preference for companies that stay away from borrowings and fund their operations largely from internal accruals. Debt-free companies (on net debt basis) account for 57 per cent of all market capitalisation of listed non-financial companies even though they are in minority in terms of revenues, assets and net profits.

 

In all, 209 non-financial companies out of a total sample of 594 companies were debt-free at the end of FY18 and together they accounted for 25.6 per cent of the sample companies’ combined net sales, 22.7 per cent of all assets and 46.5 per cent of their net profit. The analysis is based on a common sample of companies that part of BSE 500, BSE Midcap and BSE Smallcap indices. READ MORE

2:44 PM

31 stocks from smallcap index fall over 25% in May

 

Manpasand Beverages, Jet Airways (India), Avanti Feeds, Atlanta, Hindustan Construction Company (HCC), Waterbase, Rolta India and Dilip Buildcon were among 31 stocks from the S&P BSE Smallcap index falling more than 25% in the month of May.

 

Mangalam Drugs, Asian Oilfield, Sunil Hitech, Tamil Nadu Petroproudcts, Kitex Garments, Nandan Denim, Bhansali Engineering Polymers, Rain Industries, Granules India and Thirumalai Chemicals too slipped an over 25% during the month. READ MORE

2:30 PM

Investors worried PM Modi may sacrifice fiscal prudence ahead of 2019 polls

 

The rupee is the worst performing currency in Asia this year, flirting with an all-time low on worries that India is headed for problems as rising oil prices rewrite the once-shining fundamentals of Asia’s third-largest economy.

 

India had been in a sweet spot since Prime Minister Narendra Modi came to power in 2014. Its economic expansion is outpacing even China’s, inflation is in check, its budget deficit seemed to be shrinking and its popular prime minister had looked unbeatable. It’s now the world’s fastest-growing large economy. READ MORE

2:15 PM

Coal India extends gain post Q4 results; stock hits three-month high

 

Coal India rallied 5% to Rs 303 in intra-day trade on Thursday, extending its Wednesday’s 2.3% gain on the BSE, after the company reported higher than expected 4.5% year on year growth in consolidated net sales at Rs 251 billion in March 2018 quarter (Q4FY18).

 

The stock hit a three-month high in early morning deal today, was less than 5% away from its 52-week high of Rs 317 touched on February 27, 2018 in intra-day trade. READ MORE

2:00 PM

Market Check

S&P BSE Sensex	35,103.25		0.56%
Nifty 50	10,672.15		0.54%
S&P BSE 200	4,636.84		0.39%
Nifty 500	9,280.90		0.28%
S&P BSE Mid-Cap	16,014.66		-0.24%
S&P BSE Small-Cap	17,280.12		-0.39%

1:51 PM

Sebi sets up review panel to hear disputes between rating agencies & firms

 

The Securities and Exchange Board of India (Sebi) on Wednesday directed rating agencies to set up committees to hear the appeals of issuers aggrieved by the ratings assigned to them. Currently, there is no stipulated mechanism to review such issues.

 

“To ensure transparency and fairness, it has been decided that requests by issuers for review of the ratings will be reviewed by a rating committee that shall comprise a majority of independent members,” Sebi said. READ MORE

1:38 PM

Orient Cement calls off deal with Jaypee Group; stock gains 15%

 

Orient Cement has moved higher by 15% to Rs 140 on the BSE in intra-day trade, after the company announced the termination of an agreement with Jaypee Group companies to acquire Nigrie cement grinding unit and Bhilai Jaypee Cements due to its inability to complete the deal within the stipulated timeframe.

 

Orient Cement on May 31, 2017 had executed share purchase agreement entered into between the Company and Jaiprakash Associates for the acquisition by the Company of 74% equity shares of Bhilai Jaypee Cement from Jaiprakash Associates; and business transfer agreement entered into between the Company, Jaiprakash Power Ventures and Jaiprakash Associates, for the acquisition by the Company of the Nigrie Cement Grinding Unit, as going concern from Jaiprakash Power Ventures. READ MORE

1:24 PM

MSCI weighs placing India on notice over investor access

 

Morgan Stanley Capital International (MSCI), one of the world's biggest index compilers, is placing emerging markets, including India and Brazil, on notice for limiting investor access.

 

The two countries, along with Turkey and South Korea, are “potential future examples” of markets whose weights could be capped on MSCI indices, the New York-based company said in a presentation on its website on Wednesday. READ MORE

1:10 PM

Volume Toppers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
REL. COMM.	18.60	1.10	6.29	26721147
RELIANCE NAV.ENG	16.25	0.60	3.83	6141446
SUZLON ENERGY	9.03	-0.40	-4.24	3288323
JP ASSOCIATES	15.40	-0.35	-2.22	2157913
RELIANCE INDS.	921.30	3.95	0.43	1789782

12:55 PM

SECTOR WATCH Telecom stocks trade mixed. RCom up 6%

COMPANY NAME	LATEST	HIGH	LOW	CHG ( )	CHG(%)	VALUE (  CR)	VOLUME
REL. COMM.	18.60	20.85	18.05	1.10	6.29	49.13	26413227
IDEA CELLULAR	61.60	62.90	61.35	-0.15	-0.24	1.98	321728
TATA TELE. MAH.	5.32	5.45	5.27	-0.23	-4.14	0.10	178819
M T N L	16.45	16.60	16.30	-0.20	-1.20	0.14	87835
BHARTI AIRTEL	375.00	383.20	374.00	-0.90	-0.24	2.73	72906

12:45 PM

Sebi shuts FII-to-FII trades; huge demand seen for HDFC Bank stock on Jun 1

 

Market regulator the Securities and Exchange board of India (Sebi) has scrapped the special window meant for inter-se trading between foreign institutional investors (FIIs).

 

The move would hurt foreign institutional investors (FIIs) who used to avail this window to deal in stocks such as HDFC Bank, where FII investment limits are often fully utilized. READ MORE

12:29 PM

HDFC Bank, M&M from S&P BSE Sensex hit new high

 

Three companies – HDFC Bank, Kotak Mahindra Bank and Mahindra & Mahindra (M&M) – from the S&P BSE Sensex hit their respective new highs, on the BSE in intra-day trade on Thursday in otherwise range-bound market.

 

HDFC Bank hit a new high of Rs 2,127, up 4% on the BSE in early morning trade, after its American Depository Receipts (ADR) surged nearly 9% on Wednesday. The stock surpassed its previous high of Rs 2,065 recorded on May 15, 2018 on the BSE in intra-day trade. READ MORE

12:15 PM

US price erosion: Pressure on Glenmark's business to continue

 

Glenmark is exploring if it should spin off its consumer health and Active Pharmaceutical Ingredients (API) businesses, the drug maker indicated after its March quarter results.

 

The consumer health business, with sales of Rs 1.5 billion in FY18, is about six per cent of domestic sales and growing at a robust rate. “Glenmark has appointed a committee to assess the feasibility of housing the API and consumer care businesses into separate subsidiaries.READ MORE

11:59 AM

Markets at noon

S&P BSE Sensex	35,040.40		0.38%
Nifty 50	10,651.10		0.35%
S&P BSE 200	4,629.41		0.23%
Nifty 500	9,267.65		0.14%
S&P BSE Mid-Cap	16,019.27		-0.21%
S&P BSE Small-Cap	17,311.41		-0.21%

11:49 AM

IIFL on Cox and Kings

Operating performance across the various businesses is seen remaining steady, and management also expects debt reduction in FY19, driven by normalization of GST-related working capital.

 

We continue to see value in the stock, although we acknowledge that the company will need to execute on its deleveraging plans for concerns to abate. Our SOTP-based March-19 target price stands at Rs 310

11:48 AM

HDFC Securities on ONGC

Stock  has corrected by ~15% post the budget despite of rising 12% increase in  crude  oil  prices, mainly because of the concern over possible subsidy burden  on  upstream  companies. This has resulted in de-rating of these companies.

We believe, any clarity on subsidy sharing mechanism will result in earning visibility and this will lead to re-rating of these companies. Our target price is Rs 279/share (10x  Mar-20E standalone + OVL EPS and Rs 41 from investments). Maintain BUY

11:45 AM

MFs net buyers of stocks for 22 months in a row, mop up Rs 94 bn in May

 

Mutual funds (MFs) have purchased stocks worth nearly Rs 94 billion in May. This is the 22nd consecutive month of straight net buying in the sector. The buying comes despite choppiness in the market, which saw the benchmark Sensex swing 1,200 points from a high of 35,536 to a low of 34,344.

 

Foreign portfolio investors (FPIs), on the other hand, have been net sellers in the market this month, having pulled out Rs 86 billion. Fund managers are advising investors not to panic when markets turn volatile. Instead, they should use corrections before investing more. READ MORE

11:32 AM

Gruh Finance hits record high ahead of 1:1 bonus issue

 

Gruh Finance hit a record high of Rs 736, up 5% on the BSE in intra-day trade on Thursday ahead of 1:1 bonus issue. The Company has fixed Thursday, June 7, 2018 as the record date for determining the entitlement of members to receive bonus equity shares of the Company in the ratio of 1:1 i.e. one new bonus equity share of Rs 2 each for every one existing equity share of Rs 2 each.

 

The stock will turn ex-bonus on Wednesday, June 6, 2018. READ MORE

11:30 AM

Bypoll results 2018 LIVE: BJP trails united Opposition in UP's Kairana

The Lok Sabha seats that went to polls are Palghar and Bhandara-Gondiya in Maharashtra, the politically-crucial Kairana Lok Sabha constituency in Uttar Pradesh, and the Nagaland parliamentary constituency.

 

Further, by-elections were held in the Legislative Assemblies of Shahkot (Punjab), Tharali (Uttarakhand), Ampati (Meghalaya), Chengannur (Kerala), Jokihat (Bihar), Gomia (Jharkhand), Silli (Jharkhand), Maheshtala (West Bengal), Noorpur (Uttar Pradesh), and Palus Kadegaon (Maharashtra). GET ALL UPDATES HERE

Bhandara: Voters stand in a queue to cast their vote at a polling station during Bhandara-Gondia Loksabha by-elections, in Bhandara district of Maharashtra, Wednesday, May 30, 2018. (PTI Photo)

11:28 AM

Edelweiss on Dish TV

Dish TV India’s (Dish) Q4FY18 sales and EBITDA declined 5.1% and 19.5% QoQ due to lower subscription revenue and one-time merger expense, respectively (YoY numbers are not comparable because of the merger). Key highlights: (i) 4.6% QoQ dip in subscription revenue due to focus on quality customers & merger related uncertainty during the quarter; (ii) net additions fell QoQ to 0.2mn versus 0.25mn in Q3FY18; and (iii) EBITDA margin slipped 469bps QoQ to 26.1% due to INR600mn one-time merger expense. Adjusting for the same, EBITDA margin would have come at 30.1%.

Potent catalysts: 1) we perceive cost synergies from the Videocon D2H merger (management guidance: INR5.1bn in FY19); and 2) level playing field in the TV space on implementation of TRAI’s tariff order. Maintain ‘BUY’. However, likely JIO entry, ARPU growth and loss of incremental net subscribers remain key concerns

11:27 AM

MARKET COMMENT

The IMD maintained its forecast for the 2018 southwest monsoon at 97% of the LPA implying that it continues to expect a normal monsoon. The spatial and temporal distribution forecasts bode well for major crops though the forecast for August rainfall and rainfall in Eastern India are seemingly on the lower side. We remain positive on crop production volumes—should be beneficial for the rural sector. Over the next few months we will watch for the MSP announcement, kharif sowing pattern and rainfall pattern in July and August.

We maintain our FY2019 GVA growth at 7.1% from 6.4% in FY2018. However, we expect FY2019 agriculture GVA growth at 2.9% in line with 3% in FY2018. We will have actual data for FY2018 with the May 31 release

(Source: Kotak Securities note)

11:14 AM

Sebi slaps Rs 200,000 on Geojit Financial for violating stock brokers' norm

 

Markets regulator Sebi today imposed a fine of Rs 2 lakh on Geojit Financial Services for violating stock brokers' norm.

 

It was alleged that Geojit had delayed in filing statement transaction report (STR) with government's Financial Intelligence Unit (FIU) of its clients. Besides, Geojit allegedly failed to exercise proper due-diligence while dealing with client. READ MORE