Sensex ends 284 points down, Nifty at 10,154; PSU bank index crack over 3%

All that happened in the markets today.

3:41 PM

BSE Smallcap: Teamlease, Sagar Cements top gainers for the day, NECC top loser

3:36 PM

Nifty PSU Bank index extends losses, ends over 3% lower

3:36 PM

BSE Midcap: Vakrangee, Central Bank of India among top gainers of the day, Adani Enterprises top loser

3:34 PM

Sectoral Trend

3:33 PM

Sensex Heatmap

3:31 PM

Markets at Close

Th S&P BSE Sensex ended the day at 33,033, down 284 points while the broader Nifty50 index settled at 10,154, down 95 points

3:14 PM

IIFL on Cement sector

 

Although dealers indicate scepticism on price increases in March, producers have increased prices in March every year following increased availability of labour after Holi since 2003.

 

While higher input costs, heightened competition, and increased stringency in overloading restrictions are likely to put some pressure on margins, higher-than-expected volume growth is likely to partially offset the same. 

 

We expect utilisation to cross the 70% mark in FY19 after a five-year gap and enhance pricing power of producers over the next two years. However, robust demand growth over the past two quarters has renewed optimism and led to producers considering capacity expansions. Utilisation crossing the 75% mark for the industry remains elusive

3:05 PM

FDC, V-Mart Retail hit record highs in weak market

 

FDC and V-Mart Retail have hit their respective record highs by surging up to 11% on the BSE in intra-day trade in otherwise weak market.

 

FDC has rallied 11% to Rs 319 in early morning trade on back of heavy volumes. The trading volumes on the counter jumped more than 10-fold with a combined 1.05 million shares changed hands on the BSE and NSE.

2:52 PM

TeamLease Services surges 17% as RBI raises FPI investment limit

 

TeamLease Services surged 17% to Rs 2,387 on the BSE in intra-day trade on Wednesday, in an otherwise weak market after the Reserve Bank of India (RBI) raised the investment limit for foreign portfolio investors (FPIs) in the company to 75% on Tuesday.

 

Currently, FPIs hold 24.64% stake in TeamLease Services, one of India’s leading human resource service companies in the organized segment.

 

“The Reserve Bank of India has notified that the Foreign Portfolios Investors (FPIs) investment limit under Portfolio Investment Scheme in TeamLease Services has increased from 24% to 75% of its paid up capital,” the RBI said in a press release.

2:40 PM

Edelweiss on GMR Infra

 

We have valued GMR at Rs 29/share, using SOTP approach. While near-term weakness in airport division’s performance is likely due to implementation of tariff order in Delhi airport, steady traffic spurt in airports and improving volumes in power/road assets are envisaged to boost the company’s fortunes. Regulatory upsides in existing airports, new airport wins in India and asset monetisation will be key stock drivers, in our view. We initiate coverage with ‘BUY’ recommendation.

2:27 PM

BSE 500 index: Top five losers

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
JP ASSOCIATES	14.85	16.15	-1.30	-8.05	12812392
ADVANCE. ENZYME.	215.00	233.75	-18.75	-8.02	50990
VA TECH WABAG	479.90	521.60	-41.70	-7.99	40998
DEEPAK NITRITE	240.35	259.10	-18.75	-7.24	48269
FORTIS HEALTH.	150.00	161.20	-11.20	-6.95	2998008

2:11 PM

NEWS WATCH Coal India misses production target again; imports likely to increase

The import of thermal coal is likely to increase in the coming months, as Coal India is set to miss its production target again – for an 11th straight month – causing a fuel shortage at the country’s thermal power plants. This is particularly worrisome as the demand for coal is likely to increase further as summer approaches. READ MORE
 

1:47 PM

PFC, REC may be close to bottom: Credit growth, asset quality may improve

Share prices of power sector financiers Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) have hit new lows this week after significantly underperforming on the S&P BSE Sensex for the last one year.

 

The Q3 results were bad, with the companies reporting a yoy decline in net interest income (difference between interest earned and expended) and a double-digit fall in net profit. READ MORE

1:39 PM

Market Check

 

S&P BSE Sensex	33,110.92		-0.62%
Nifty 50	10,185.95		-0.62%
S&P BSE 200	4,446.46		-0.74%
Nifty 500	8,964.05		-0.84%
S&P BSE Mid-Cap	15,971.73		-1.21%
S&P BSE Small-Cap	17,338.50		-1.78%

1:29 PM

Sebi's P-note derivative ban fails to dent Indian futures market volumes

It has been six months since market regulator Securities and Exchange Board of India’s (Sebi’s) diktat of not allowing participatory notes (p-notes) to take unhedged positions in Indian derivative markets took effect. Contrary to industry concerns at the time the decision was taken, however, the volumes in Indian futures market have only increased since August 2017. READ MORE

1:21 PM

UltraTech takes fight for Binani Cement to NCLT after bid rejection

The Aditya Birla group’s UltraTech Cement moved the National Company Law Tribunal (NCLT) in Kolkata on Tuesday against the resolution professional for Binani Cement after its bid for the cement company undergoing insolvency proceedings was rejected. READ MORE

| Photo: Reuters

1:15 PM

Kotak Institutional Equities on Zee Entertainment

 

We interviewed Zee’s MD & CEO on its digital strategy and ZEE5 (new OTT platform). ZEE5 aspires to be a key digital destination for Indian language entertainment, powered with a content library of 100,000 hours and a steady flow of originals (72+ series; 200+ hours/year) and new movies (100+ digital premieres). We believe ZEE5 has what it takes to be a key OTT player and even compete with the leader, Hotstar, on the entertainment side. The extent of success will be determined by its execution and competitive intensity (especially Jio).

1:04 PM

Near-term worries for Maruti stock, even as product demand remains strong

The Maruti Suzuki stock has shed about 12 per cent from its all-time intra-day high of Rs 10,000, recorded in mid-December 2017. That is due to the correction in broader markets and softer demand expectation for the industry, especially in the urban segment. READ MORE

12:50 PM

BSE Sensex: HDFC, Bajaj Auto among top gainers, SBI top loser

12:42 PM

Oracle Financial Services Software
Rating: BUY
 

We upgrade Oracle Financial Services Software (OFSS) to BUY on a 19% upside. The stock’s participation in the broader IT sector rally over the last two months has been restricted by muted 3QFY18 results; it has also under-performed global peers over this period. However, given management’s commentary of a robust deal pipeline + a seasonally stronger period ahead, we find current levels attractive to play to its structural strengths. We also raise our FY19/FY20E EPS by 6.6%/6.8% on superior margin management. Our revised Rs 4,480 target price (Rs 4,020 earlier) is on a 20x implied target PER (unchanged)

(Source: JM Financial Report)

 

12:34 PM

Harrisons Malayalam hits the roof after bulk deal

Harrisons Malayalam was locked in 5% upper circuit at Rs 82.40 at 11:31 IST on BSE after a bulk deal of 13.02 lakh shares was executed on the scrip at Rs 81.05 per share at 09:15 IST on BSE. READ MORE
 

12:24 PM

Stock-split proposal boosts Lumax Auto Tech

Lumax Auto Technologies rose 1.47% to Rs 886 at 09:28 IST on BSE after the company scheduled a board meeting on 23 March 2018 to consider stock-split of equity shares. READ MORE

12:16 PM

Sectoral Trend

12:11 PM

Nifty PSU Bank index hits 19-month low, down 7% in two days

 

Shares of public sector undertaking (PSU) banks continued to be under pressure with the Nifty PSU Bank index hitting 19-month low as investigation deepened in the Punjab National Bank (PNB) fraud case.

 

Canara Bank, Andhra Bank, Allahabad Bank, Bank of India, Oriental Bank of Commerce, Bank of Baroda and Union Bank of India from the Nifty PSU Bank index touched their respective fresh 52-week lows on the NSE today. READ MORE

11:55 AM

Market Check

S&P BSE Sensex	33,120.82		-0.59%
Nifty 50	10,184.30		-0.63%
S&P BSE 200	4,445.71		-0.75%
Nifty 500	8,960.80		-0.87%
S&P BSE Mid-Cap	15,967.13		-1.24%
S&P BSE Small-Cap	17,342.19		-1.76%

11:50 AM

Sector watch: Hotels

 

Leisure industry, primarily represented by large asset owners, has suffered the wrath of a persistent decline in average room rates (ARRs) post the sharp fall triggered by the 2008 financial crisis. However, things have begun to look up in 2017, with a marginal 3% ARR rise in the premium segments that endured the maximum pain. 

 

All this while, sustained pressure on room rates was a function of snowballing supply offsetting the steady rise in occupancy. However, as per data extrapolation on branded room additions over the next 5 years, supply is likely to be capped at 4% yoy in most cities while demand should grow much faster on back of buoyant business & leisure travel and translating into faster ARR growth. Indian Hotels, the largest listed play on the cyclical upswing underway, could engineer a sharp turnaround in profitability over the next one-two years.

 

(Source: IIFL)

11:39 AM

Kotak Institutional Equities on Gail (India)

 

The recent sharp correction in the GAIL stock, 12% over past two months since the news of unbundling, offers an opportunity to BUY as we see limited impact on GAIL’s profitability from separation of gas marketing business from the gas transmission segment. On the contrary, it may lead to value unlocking with the stock trading at a low 11.4X FY2019E business EPS, adjusted for investments—inexpensive in the context of 8-10% sustainable earnings growth and higher adjusted RoEs of 14%.

11:27 AM

TeamLease Services surges 17% as RBI raises FPI investment limit

 

TeamLease Services surged 17% to Rs 2,387 on the BSE in intra-day trade on Wednesday, in an otherwise weak market after the Reserve Bank of India (RBI) raised the investment limit for foreign portfolio investors (FPIs) in the company to 75% on Tuesday.

 

Currently, FPIs hold 24.64% stake in TeamLease Services, one of India’s leading human resource service companies in the organized segment.

 

“The Reserve Bank of India has notified that the Foreign Portfolios Investors (FPIs) investment limit under Portfolio Investment Scheme in TeamLease Services has increased from 24% to 75% of its paid up capital,” the RBI said in a press release. READ MORE

11:16 AM

MUST READ Fear of foreign capital: Why is India turning away bond buyers?

Hoping to jump-start its "Make in India" manufacturing push, India's government has rolled out the welcome mat for foreign investors. It should consider doing the same for global bond buyers. Indian bonds are, at the moment, suffering a full-scale rout. On Monday, yields on benchmark 10-year government debt -- called the “G-sec” rate in India -- continued their slow creep upwards to 7.78 percent. Many expect them to cross eight percent at some point in the next few months. CLICK HERE FOR MORE

11:06 AM

Mega telecom deal between Ambani brothers faces legal hurdle

Billionaire Anil Ambani’s plan to dig his telecom unit out of a debt hole, via an asset sale to his brother’s firm, is facing a fresh hurdle that threatens to delay the deal past a March deadline.
 

A local arbitration tribunal on March 5 barred Reliance Communications, or RCom, from selling assets as the court examines a dispute over unpaid dues with the Indian unit of Ericsson AB. READ MORE

RCom slips nearly 1%