MARKETS ON MONDAY: Nifty ends above 10,700, Sensex up 293 pts; metals gain

Markets gained ground on Monday, tracking Asian peers, after tepid US jobs data on Friday

3:40 PM

Nifty Metal index climbs 1.68%. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
WELSPUN CORP	150.00	140.25	9.75	6.95
JINDAL STEEL	255.75	240.65	15.10	6.27
S A I L	74.95	72.35	2.60	3.59
JSW STEEL	326.70	317.40	9.30	2.93
HINDALCO INDS.	237.80	231.35	6.45	2.79

3:37 PM

Nifty PSU Bank index ends 2.18% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
INDIAN BANK	321.35	310.00	11.35	3.66
BANK OF BARODA	143.55	139.90	3.65	2.61
CANARA BANK	262.05	255.60	6.45	2.52
PUNJAB NATL.BANK	93.65	91.55	2.10	2.29
ALLAHABAD BANK	48.30	47.25	1.05	2.22

3:35 PM

Sectoral gainers and losers of the day

3:33 PM

BSE Sensex: M&M, ICICI Bank top gainers of the day, Coal India top loser

3:31 PM

Market at close

 

The S&P BSE Sensex ended at 35,208, up 293 points while the broader Nifty50 index settled at 10,715, up 97 points.

3:26 PM

Suven Life up 6% as Pashamylaram's unit completes USFDA inspection

Suven Life Sciences has moved higher by 6% to Rs 192 on the BSE in noon deal after the company’s Pashamylaram’s unit successfully completed the United States Food and Drug Administration (USFDA) inspection.
 

So far Suven Life Sciences has filed 19 DMF’s (Drug Master File) and 5 ANDA’s (Abbreviated New Drug Application) from this facility which is FDA complaint under Current Good Manufacturing Processes (cGMP) and continued after renewal inspection. READ MORE

3:15 PM

Reliance Infra surges 8% after bagging Versova-Bandra Sea Link contract

Shares of Anil Dhirubhai Ambani Group (ADAG) companies were in focus, trading higher by up to 8% on the BSE on back of heavy volumes.

Reliance Infrastructure, Reliance Power, Reliance Capital, Reliance Naval and Engineering and Reliance Communications were up in the range of 2% to 8% on the BSE. READ MORE

3:01 PM

Screen additions, ad growth, ticket prices bode well for PVR's FY19 show

 

India’s largest film exhibitor put out a strong March quarter performance, beating Street estimates on all counts. Revenues were up 19 per cent over the year-ago period. primarily on account of higher average ticket prices, which increased by 10 per cent, and 5 per cent more footfalls.

 

Footfalls on a comparable basis however fell by 2 per cent on account of a strike by South Indian film producers and issues concerning the release of Padmavat in certain states. Had it not been for the two issues, comparable footfalls would have been up 8 per cent. READ MORE

2:56 PM

INDEX WATCH

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,222.85	+307.47	+0.88
S&P BSE SENSEX 50	11,217.45	+96.88	+0.87
S&P BSE SENSEX Next 50	34,121.57	+261.63	+0.77
S&P BSE 100	11,092.14	+94.14	+0.86
S&P BSE Bharat 22 Index	3,599.08	+52.10	+1.47

(Source: BSE)

2:55 PM

BS SPECIAL Sebi order on extending derivative trading: Key takeaways and challenges

In a move aimed at attracting investors dealing in Indian products on foreign exchanges in Singapore and Dubai, the Securities and Exchange Board of India (Sebi) on Friday allowed domestic stock exchanges to extend equity derivatives trading until 11.55 pm. Deven Choksey, managing director of KR Choksey Investment Managers, looks at the Sebi order and explains the key takeaways. READ MORE

2:53 PM

Reliance Securities on CEAT

We expect CEAT to witness a healthy traction over next two years on account of new capacities, favourable product-mix, sound distribution reach and trengthening brand equity. On the flip side, likely spike in input prices from 1QFY19 (as guided by the Management) led by recent surge in crude prices along with addition of large debts in B/S due to high capex in FY19E may prove to be major headwinds for CEAT in term.

In view of healthy business prospects, good management capability and valuation comfort post recent price correction, we maintain our BUY recommendation on the stock with a revised Target Price of Rs1,750 (from Rs1,850 earlier).

2:51 PM

Prabhudas Lilladher on NIIT Technologies

NIIT Tech was our preferred midcap pick and stock was up 110% over past one year. The stock trades at 15.6x FY20E EPS (Mindtree/Hexaware trading at 21/17.5x FY20E EPS respectively). NIIT Tech has a robust vertical mix (Insurance, Travel and BFS) with marquee Top 20 clients. We believe increased aggression on sales can enable robust revenue momentum.  Revise target price upwards by 30% to Rs 1140/sh (17.5x FY20E EPS vs 14x FY20E EPS earlier). Retain BUY.

2:50 PM

Edelweiss on Greaves Cotton

Greaves Cotton’s (GCL) Q4FY18 revenue and EBITDA surpassed our estimates 12% and 14%, respectively. However, PAT came in line. Key highlights: a) revenue grew 24% YoY led by spurt in the engines segment (volume up 30%); b) higher commodity prices continued to impact gross margin—down 160bps YoY. However, stringent cost control measures resulted in EBITDA margin expanding 70bps YoY; and c) net working capital to sales improved to 8%—best since FY10—largely led by bill discounting.

GCL continues to focus on transforming itself into a solution provider by pruning dependence on the engines business (currently 50% of revenue). However, most of the tie ups and initiatives are at a nascent stage and we continue to remain watchful w.r.t. ramp up of these businesses. Maintain ‘HOLD’ with target price of Rs 135

2:49 PM

Edelweiss on Godrej Properties

Godrej Properties (GPL) continued its strong run with Q4FY18 revenue growing 21% YoY and new sales, at INR10.5bn, surging 210% YoY. FY18 new sales at ~Rs 51bn surged ~152% YoY and were the highest ever for GPL. Project addition in FY18 also remained healthy (23.5msf vs. 18.1msf in FY17), while debt fell YoY on strong cash flows.

In light of robust growth momentum and increasing growth opportunities due to RERA driven consolidation in industry, GPL has entered into an agreement to raise ~Rs 10bn equity from an investor. Building in higher new project additions as well as dilution, our revised target price is Rs 857 (Rs 817 earlier). Maintain ‘HOLD’ due to limited near term upside

2:48 PM

Centrum Wealth on KPR Mill

We anticipate revenue and PAT CAGR of 13.9% and 25.1%, respectively, over FY18P-20E (vs earlier 15.7% and 25.4%). Given the certain stability in the raw material prices and better contribution from the garment division, we expect better operational performance (~20% FY19/20) to boost profitability. At the CMP, KPR trades at a P/E of 13.1x/10.6x on FY19E/20E basis. We maintain our view that KPR is a good long term portfolio stock. We value the stock at 14x FY20E EPS giving a target price of Rs 877

2:45 PM

Nestle to pay $7.15 billion to Starbucks in coffee tie-up

 

Nestle will pay Starbucks $7.15 billion as part of a global coffee alliance in which the Swiss-based food giant is getting the rights to market the U.S. coffee company's products around the world outside Starbucks' coffee shops.

 

"This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestle," said Starbucks Chief Executive Kevin Johnson. READ MORE

Photo: Shutterstock

2:30 PM

Reliance to invest Rs 600 bn in Jio this year, may borrow Rs 1 trn more

 

Mukesh Ambani-led Reliance Industries Ltd (RIL) is likely to invest another Rs 600 billion this year in its telecom business Reliance Jio Infocomm with an emphasis on faster rollout of broadband services and wireless expansion, Livemint reported, quoting anonymous company sources.

 

The sources have also been quoted as saying that Reliance Jio might borrow up to Rs 1 trillion in addition to the above-mentioned investment. Jio and RIL spokespersons did not comment on queries about the investment. READ MORE

2:17 PM

Vakrangee hits 22-month low, stock tanks 84% from 52-week high

Shares of Vakrangee are locked in lower circuit of 5% at Rs 81.50 per share, falling for the 10th straight trading sessions on the BSE as the media report suggested that the company comes under market regulator and government scanner.
 

The stock is trading at its lowest level since June 14, 2016, crashing 84% from its 52-week high of Rs 515 touched on January 24, 2018 in intra-day trade. Currently, Vakrangee has market capitalisation of Rs 86 billion have seen erosion of Rs 449 billion during the period. READ MORE

1:58 PM

Market Check

 

S&P BSE Sensex	35,111.84		0.56%
Nifty 50	10,678.95		0.57%
S&P BSE 200	4,676.07		0.57%
Nifty 500	9,390.45		0.54%
S&P BSE Mid-Cap	16,610.75		0.30%
S&P BSE Small-Cap	18,080.47		0.49%

1:46 PM

Stocks at 52-week high

COMPANY	PRICE( )	52 WK HIGH	CHG( )	CHG(%)
BOMBAY DYEING	309.75	318.45	9.40	3.13
CYIENT	833.70	864.00	27.25	3.38
DIVI'S LAB.	1200.65	1212.00	9.90	0.83
INTELLECT DESIGN	208.80	217.30	12.50	6.37
JUBILANT FOOD.	2607.00	2629.00	40.20	1.57

1:32 PM

Buffett steers clear of controversy as 'politics' shows up at Nebraska bash

Even Warren Buffett can’t escape the political and social debates that have spilled over into the corporate world. Tens of thousands of investors descended on Omaha, Nebraska, over the weekend to hear him speak about business and the economy at the annual meeting of Berkshire Hathaway Inc., the conglomerate he’s been building for five decades. But many also wanted to hear the famous investors take stances on some of the most-divisive issues of the day. READ MORE

1:15 PM

Bond yields rise after RBI announces it will buy Rs 100-billion govt debt

Sovereign bonds in India rallied after the central bank said it will purchase debt to meet the cash needs of the banking system. The Reserve Bank of India will buy Rs 100 billion ($1.5 billion) of securities across the yield curve from 2020 to 2033 maturities on May 17, it said late Friday. The purchases come after the shortest bond on sale Friday was rescued by underwriters for a third straight auction. READ MORE

1:03 PM

Timeline: Fortis Healthcare bidding war - The story so far

Fortis Healthcare Ltd (FHL), which runs about 30 hospitals in India, has become a target of a heated takeover battle, with five entities bidding for the embattled company.

 

Fortis has set up an advisory committee to evaluate binding offers from suitors vying to acquire the company, or take a stake in it. READ MORE

12:48 PM

Avenue Supermarts falls 4% post Q4 results

Avenue Supermarts , which operates the chain of D-Mart stores, has dipped 4% to Rs 1,433 on the BSE on profit booking despite the company reported a 72.9% year-on-year (y-o-y) growth in its net profit to Rs 1.67 billion in the fourth quarter of FY18. Total Revenue during the period was up 22.4% y-o-y to Rs 38.10 billion. Analysts on an average had expected profit of Rs 1.86 billion on revenue of Rs 37.77 billion for the quarter. READ MORE

12:33 PM

Pfizer hits an over two-year high ahead of March quarter results

Shares of Pfizer hit an over two year high of Rs 2,434 per share, up 5% on the BSE in intra-day trade on Monday, ahead of its January-March quarter (Q4FY18) results today. The stock was trading at its highest level since January 4, 2016. READ MORE

12:14 PM

Intellect Design Arena hits 52-week high on strong Q4 results

Intellect Design Arena hit 52-week high of Rs 217, up 11% on the BSE in early morning trade, after the company reported 27.7% quarter on quarter growth in dollar revenue for the quarter ended March 2018 (Q4FY18).
 

In rupee terms, the company reported 13.3% QoQ growth in revenue at Rs 3,070 million as against Rs 2,710 million in Q3FY17. Net profit during the quarter under review more than doubled to Rs 274 million against Rs 135 million in a previous quarter. READ MORE

12:00 PM

Markets at Noon 

 

S&P BSE Sensex	35,033.23		0.34%
Nifty 50	10,654.20		0.34%
S&P BSE 200	4,665.44		0.35%
Nifty 500	9,371.95		0.34%
S&P BSE Mid-Cap	16,598.90		0.23%
S&P BSE Small-Cap	18,077.83		0.48%

11:44 AM

From Hero MotoCorp to TVS Motor, rural gains ahead for two-wheeler stocks

 

After ending FY18 on a strong note, listed two-wheeler majors are looking at a second consecutive year of double-digit growth in sales volume. The sector recorded a growth of 15 per cent in FY18 after two years of muted performance. The trend is expected to continue in FY19 if April numbers are anything to go by.

 

Volumes of most two-wheeler majors were up 20 per cent year on year on higher rural demand. Bharat Gianani of Sharekhan expects 10 per cent growth in two-wheeler sales in FY19. READ MORE

11:30 AM

Rupee becomes Asia's worst-carry trade after $70 a bbl 'crude' shock

 

Oil’s advance to the highest since 2014 is squeezing the carry-trade returns on the Indian rupee to a point where they are the worst in Asia.

 

While the nation’s nominal yields are the second-highest in Asia, rupee weakness is making the trade unprofitable. Borrowing in dollars to invest in India would yield a negative 3 per cent for the year so far, according to data compiled by Bloomberg. That trade garnered a carry return of 12 per cent in 2017. READ MORE

11:15 AM

ICICI Bank Q4FY18 result preview: Will higher provisions dent profitability?

 

ICICI Bank is likely to announce its results for the March 2018 quarter (Q4FY18) results today. In the previous quarter, the bank’s net profit fell 32% in the quarter ended December 2017 due to lower income from treasury even as provisions for non-performing assets (NPAs) remained elevated.

 

Investors will keep a tab on the provisions the bank makes for non-performing loans (NPLs). This assumes significance as another private sector banking major, Axis Bank, reported a net loss of Rs 21.8 billion for the quarter ended March 2018 (Q4FY18), as non-performing assets (NPAs) soared and provisions for bad loans surged three times over the corresponding quarter last year. READ MORE