Sensex ends marginally lower, Nifty holds 10,400; PSU banks outperform

All that happened in the market today

3:44 PM

Nifty IT index ends 1.46% lower

3:39 PM

Nifty PSU Bank index ends 2.33% higher

3:36 PM

Sectoral Trend

3:35 PM

BSE Sensex gainers and losers

3:33 PM

Market at close

 

The S&P BSE Sensex ended at 33,857, down 61 points while the broader Nifty50 index settled at 10,427, up 5 points.

3:23 PM

Reliance Securities on Majesco Limited

 

The company reported strong 3QFY18 results, with revenue rising 4.7% QoQ in USD terms, led by strong order book growth seen in FY18 YTD; cloud revenue rose 5.1% QoQ, aided by investments made, while License revenue grew by a massive 127% QoQ led by new deal wins. 

 

Good revenue growth drove a 345bps QoQ rise in EBITDA margin to 4.5%. Industry fundamentals and the key IBM partnership will enable Majesco to boost revenue growth going forward.

 

Cloud offering - ‘Trump Card’: 60-70% of the deal pipeline in the past few months has been for cloud services. Of the addressable market of US$25bn for Majesco, around US$15-16bn relates to the L&A market, while US$9.25bn relates to the US P&C market. ​​We currently have a target price of Rs 730 on the stock.

3:12 PM

IPO WATCH

 

Bandhan Bank Limited - Subscribe

Issue Opens: 15-Mar-18, Issue Closes: 19-Mar-18, Price Band: Rs370-375

 

Bandhan Bank was able to ride the recent MFI crisis smoothly unlike NBFC-MFIs. So in the current form, it is a robust and resilient micro loan financier with great growth prospects. The bank would likely be able to sustain RoA and RoE near the 4% and 25% mark respectively. We believe long term investors would find post-money valuation at 4.8x P/BV reasonably attractive. A comparable benchmark for valuation would be the recent IndusInd Bank-Bharat Fin transaction wherein the former valued the latter at ~5.2x FY18 P/BV. 

 

(Source: IIFL Report)

3:01 PM

PSU banks surge. Don't rush to buy the shares on a bounce, caution analysts

Shares of public sector banks (PSBs) bounced back on Tuesday with Bank of India surging 14 per cent on reports of recovery of Rs 70 billion in non-performing assets (NPAs). The rub-off effect was seen across the board as Nifty PSU Bank index, the largest gainer among sectoral indices, gained five per cent compared to around 0.35 per cent rise in the Nifty 50 index in intra-day deals. READ MORE
 

2:53 PM

Emkay Global on HEG

 

We recently met the HEG Ltd management to understand the recent developments in the Graphite Electrode (GE) industry and to gain insights into the company. We foresee further scope for improvement.

 

HEG's debt has dropped to Rs2bn, which is likely to be NIL in Q4FY18 itself. The company has been evaluating capacity expansion by 20ktpa depending on Needle Coke availability. Growth and diversification are also options for cash usage.

 

Technology deterrence, physical set-up barrier and limited Needle Coke supply will restrict any new capacity addition at least for next 2-3 years. Therefore, we believe both offtake and realization will continue to be robust and sustainable for the next few years. 

2:44 PM

Buzzing stock

 

GAIL (India) Ltd is up 20.53% in last one year as compared to a 15.11% spurt in NIFTY and a 21.61% spurt in the Nifty Energy index.

2:31 PM

Bajaj Electricals hits record high; zooms 111% in one year

 

Bajaj Electricals hit a record high of Rs 624, up 8.6% on the BSE in noon deal, surpassing its previous high of Rs 585 recorded on January 5, 2018 in intra-day trade.

 

The company engaged in household appliances business has outperformed the market by surging 111% in past one year, as compared to 17.5% rise in the S&P BSE Sensex. Since February 7, 2018, after December quarter (Q3FY18) results, it rallied 28% against 0.18% decline in the benchmark index. READ MORE

2:22 PM

Europe Trade

European equities opened mixed, as investors monitored corporate earnings and awaited the release of US inflation data later in the day.

 

The pan-European Stoxx 600 was little changed from the previous session shortly after the opening bell, with sectors and major bourses pointing in opposite directions.

2:12 PM

InterGlobe Aviation skids on report DGCA grounds A320neo aircraft

 

InterGlobe Aviation fell 1.62% to Rs 1,256.45 on BSE after India's aviation regulator reportedly grounded the company's eight A320Neo planes with faulty Pratt & Whitney engines.

 

2:03 PM

Market Check

 

S&P BSE Sensex	33,900.85		-0.05%
Nifty 50	10,464.45		0.41%
S&P BSE 200	4,544.55		0.29%
Nifty 500	9,190.15		0.75%
S&P BSE Mid-Cap	16,247.24		0.86%
S&P BSE Small-Cap	17,603.18		1.15%

2:01 PM

MRF Ltd gained for a third straight session today

MRF Ltd gained for a third straight session today. The stock is quoting at Rs 71,960, up 1.22% on the NSE. READ MORE

1:46 PM

NEWS WATCH Input commodity inflation to keep Vedanta's aluminium making cost high

An uptrend in the prices of key ingredients is set to exert pressure on Vedanta’s cost of manufacturing aluminium. Though a tad lower than its Q3 cost of $1,945 per tonne, Vedanta’s aluminium manufacturing cost is expected to be in the band of $1,850-1,900 a tonne in the January-March quarter or Q4 of this fiscal.  READ MORE

1:29 PM

Easing inflation will give RBI room to hold rates, relieve bond investors

 

India’s inflation rate dropped below 5 per cent for the first time in three months, giving the central bank room to keep interest rates on hold for longer while providing relief to battered bond investors.

 

Government data on Monday showed inflation at 4.44 per cent in February, lower than the 5.07 per cent pace in January and below the 4.7 per cent estimate of economists polled by Bloomberg News. The easing for the second straight month offers bond investors in India -- the worst performing market among major Asian economies -- something of a temporary cheer. The benchmark 10-year bond yield fell three basis points to 7.60 per cent. READ MORE

1:18 PM

Nifty PSU Bank index up nearly 5%

1:01 PM

Bharat Dynamics IPO opens at Rs 413-428 a share: Should you subscribe?

State-owned Bharat Dynamics has opened its initial public offering for subscription on Tuesday, with a price band of Rs 413-428 per share. The IPO of 22,451,953 equity shares is an an offer for sale by the promoter, The President of India, acting through the Ministry of Defence.
 

The company has reserved a portion of 458,203 equity shares for allotment to eligible employees. The issue will close on March 15. Employees and retail investors will get shares at a discount of Rs 10 per share on offer price. READ MORE

12:46 PM

Easing inflation will give RBI room to hold rates, relieve bond investors

India’s inflation rate dropped below 5 per cent for the first time in three months, giving the central bank room to keep interest rates on hold for longer while providing relief to battered bond investors. READ MORE

12:33 PM

Graphite India, HEG rise for second straight day, up 5%

Shares of graphite electrode (GE) manufactures such as Graphite India and HEG were trading higher for the second straight day on expectations of a strong demand which is likely to push up GE prices for at least 2-3 years.
 

Graphite India is locked in upper circuit for the second straight day, up 5% at Rs 709 on the BSE. HEG too up 5% at Rs 2,813, extending its previous day’s 4.5% gain. READ MORE

12:16 PM

Fund managers buy 1.7 mn PNB shares in Feb despite 40% slump in price

Many mutual fund (MF) managers added shares of fraud-hit Punjab National Bank (PNB) to their portfolios in February, amid a 40 per cent slide in the counter. A total of 1.7 million shares of the state-owned bank were added by equity MFs, data shows.
 

Put together, the number of shares in fund managers’ holdings, by end-February was 233.8 million, against 232.1 million at end-January. READ MORE

12:05 PM

Shares of sugar companies fall by up to 75% due to a sharp fall in prices

Shares of sugar companies have fallen by up to 75 per cent over the past year, due to a sharp fall in prices of the commodity in physical markets.

Mills have been making distress sales since the beginning of the current season in October 2017 to clear farmers' cane payment arrears. A minimum storage limit and lack of export initiatives have been other problems in coping with overproduction. READ MORE

12:00 PM

Market Check

 

S&P BSE Sensex	34,018.69		0.30%
Nifty 50	10,450.70		0.28%
S&P BSE 200	4,557.11		0.57%
Nifty 500	9,166.50		0.49%
S&P BSE Mid-Cap	16,260.89		0.95%
S&P BSE Small-Cap	17,596.47		1.11%

11:46 AM

Paytm to launch mutual funds, insurance, banking services via payments bank

Mobile-first fintech major Paytm is planning a major push in the financial services sector. In the next few months, the Vijay Shekhar Sharma-led company is planning to launch services including mutual funds, general insurance, life insurance and a number of banking services via its payments bank. READ MORE

11:33 AM

NEWS IMPACT IndiGo, GoAir cancel 70 flights today over DGCA's aircraft grounding order

IndiGo and Go Air cancelled around 70 flights on Tuesday as the two airlines grapple with aircraft grounding by aviation regulator Directorate General of Civil Aviation (DGCA). IndiGo cancelled around 50 flights, whereas Go Air cancelled 20 flights. The airlines said the affected passengers will be accommodated in other aircraft but there will be a change in their schedule READ MORE

11:25 AM

BS SPECIAL LTCG: Should investors re-look at their equity investing strategy in FY19?

The domestic equity market is known for solid wealth creation in the long term, spanning over one to three years. In the past, those equity investors who picked up stocks successfully and also waited beyond a year got not only the opportunity for a significant wealth creation but also complete tax exemption on long-term capital gains. There was a significant incentive to hold the equities beyond a year as that would help avoid short-term capital gains tax at a 15 per cent rate READ MORE

11:19 AM

Bank of India gains 11% on reports of Rs 70-billion recovery worth SLOCs

 

Bank of India has gained 11% to Rs 105 on the BSE in early morning trade on reports of the state-owned bank recovered Rs 70-billion worth Standby Letters of Credit (SLOCs) in the last two months.

 

The balance of Rs 20-billion would be recovered in another two months. The total recovery will substantially improve the Bank's balance sheet; the PTI report suggested quoting Bank of India Executive Director N Damodharan. READ MORE

10:49 AM

Bond market outlook

Improved macro-economic conditions have nudged 10Y India yields off highs, but we suspect that the rally in bonds may not have much further to go. With appetite subdued from domestic (particularly public-sector banks) and foreign players (further increases in debt limits appear unlikely), 10Y yields are likely to find some support at 7.5%. We maintain that yields are likely to edge higher in the new fiscal year - when the centre’s borrowing plans become clearer and fiscal costs get factored in

(Source: Radhika Rao, India Economist, DBS Bank)

10:48 AM

Sebi is doing a rethink on its trading plans and may even scrap them

 

The Securities and Exchange Board India (Sebi) is doing a rethink on its trading plans that were introduced under the Sebi (Prohibition of Insider Trading) Regulations, 2015. One of the options being considered is to scrap the plans altogether. The concept has not taken off in earnest, with few companies stepping forward to formulate these plans since it was introduced more than two-and-a-half years ago. There are several guidelines that have made these plans unpopular. For instance, the trading plan has to cover a period of at least 12 months and cannot be altered once disclosed. READ MORE