MARKETS ON WEDNESDAY: Indices snap 9 sessions of gains; banking stocks drag

Benchmark indices ended flat on Wednesday, snapping 9 session of gains, as investors remained cautious on quarterly results.

3:43 PM

Nifty PSU Bank index ends 1.10% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
BANK OF BARODA	141.65	147.85	-6.20	-4.19
INDIAN BANK	306.75	318.95	-12.20	-3.83
ANDHRA BANK	42.05	43.00	-0.95	-2.21
IDBI BANK	69.95	71.05	-1.10	-1.55
ORIENTAL BANK	94.60	95.85	-1.25	-1.30

3:39 PM

Nifty FMCG index ends 1.74% up. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
GODREJ CONSUMER	1134.30	1076.40	57.90	5.38
DABUR INDIA	356.20	343.75	12.45	3.62
GODREJ INDS.	595.00	577.60	17.40	3.01
ITC	275.45	267.60	7.85	2.93
TATA GLOBAL	285.45	280.95	4.50	1.60

3:36 PM

Sectoral performers

3:34 PM

BSE Sensex: ITC, Wipro among top gainers, Axi Bank top loser

3:31 PM

Market at close

 

The S&P BSE Sensex ended at 34,332, down 63 points while the broader Nifty50 index settled at 10,526, down 23 points.

3:21 PM

World stocks at four-week highs as earnings rekindle risk appetite

Global stocks climbed to their highest in nearly four weeks on Wednesday as strong US first-quarter earnings helped revive risk appetite, driving up equities and hauling the dollar out of its slump.

European stocks rose in early trading, pushing MSCI's index of world stocks up 0.2 per cent to its highest since March 22. The top index of euro zone stocks rose 0.4 per cent to its highest since Feb. 5, when a spike in volatility amplified a sell-off in global equity markets. READ MORE

3:00 PM

Gold rises on Akshaya Tritiya buying

Gold prices went up by Rs 30 to Rs 32,380 per ten grams at the bullion market today largely due to token buying by jewellers on the auspicious occasion of 'Akshaya Tritiya', but a subdued trend overseas capped the gains.

 

Silver strengthened by Rs 150 at Rs 40,450 per kg largely in step with gold.

 

Traders said, besides token purchases by consumers on the auspicious occasion of 'Akshaya Tritiya', depreciating rupee against the dollar helped gold prices to trade higher. READ MORE

2:50 PM

Hindustan Zinc plans to produce 1,000 tonnes of silver in next 3-4 years

Hindustan Zinc (HZL), India’s largest zinc and silver producer, is planning to increase production of silver from 556 tonnes in 2017-18 to 1,000 tonnes in the next 3-4 years.

 

On Tuesday, the company announced its silver refinery had been recognised by the London Bullion Market Association (LBMA) as its approved refinery on Monday, making it the only Indian private sector company achieving this status in India. READ MORE

2:35 PM

BSE FMCG index hits new high; Godrej Consumer, Dabur, ITC up over 3%

Shares of fast moving consumer goods (FMCG) companies were in focus with the S&P BSE Index up more than 2% hitting a new high on the BSE.

The FMCG index hit record high of 11,085 in intra-day trade surpassed its previous high of 11,047 recorded on February 1, 2018. READ MORE

2:18 PM

Fortis Healthcare suitors' list gets longer with Fosun's $350-million offer

 

Adding to the list of bidders for Fortis Healthcare, Fosun Health Holdings Ltd (FHHL), a wholly-owned subsidiary of the Hong Kong Stock Exchange-listed Fosun International, on Tuesday made a proposal for primary infusion at Rs 156 a share, up to a total investment of $350 million (Rs 22.75 billion), including a preliminary investment of Rs 1 billion. The unsolicited non-binding offer, however, is subject to due diligence, to be completed within three weeks. This will enable Fosun to own a 25 per cent or more stake in Fortis. READ MORE

2:00 PM

Market Check

S&P BSE Sensex	34,525.09		0.38%
Nifty 50	10,583.30		0.33%
S&P BSE 200	4,653.58		0.33%
Nifty 500	9,359.25		0.31%
S&P BSE Mid-Cap	16,835.98		0.33%
S&P BSE Small-Cap	18,182.31		0.28%

1:44 PM

Companies raise Rs 69 bn on BSE Bond platform under Sebi's new norm

Indian companies have raised Rs 69 billion by issuing bonds through private placement on BSE's electronic book mechanism since Sebi's new guidelines came into effect from April 1.

 

Under the new norms, Sebi has made electronic platform mandatory for all private placement issues on debt basis that have a threshold of Rs 2 billion, a move aimed at achieving better and transparent price discovery through the bidding process. READ MORE

1:29 PM

Pallid past, better future for paint firms; price hikes to support earnings

Consumer stocks, including paints, gained in Tuesday’s trade on account of India Meteorological Department’s (IMD) forecast of a normal monsoon. Stocks of the three major paint firms, Asian Paints, Berger Paints India and Kansai Nerolac Paints, were up 0.7-4 per cent on Tuesday.

 

Expectations of an uptick in demand owing to a revival in rural economy and a recovery from the aftermath demonetisation and the goods and services tax triggered the upmove. Demand in the March 2018 quarter (Q4) is projected to be muted because of seasonality factors. READ MORE

1:15 PM

Cryptocurrency by Cambridge Analytica? Controversial firm may raise $30 mn

Cambridge Analytica was planning to raise money by issuing a new type of digital currency before it became embroiled in a scandal surrounding the misuse of Facebook Inc personal data, sources familiar with the matter told Reuters on Tuesday. The British data analytics consultancy had approached a firm that advises companies on how to structure an initial coin offering, an increasingly popular online fundraising scheme involving the issue of a new digital currency, the sources said. READ MORE

1:02 PM

Stocks at 52-week high

COMPANY	PRICE( )	52 WK HIGH	CHG( )	CHG(%)
AARTI INDS.	1325.00	1327.45	36.90	2.86
DIVI'S LAB.	1179.80	1202.00	0.30	0.03
FIRSTSOUR.SOLU.	58.45	59.15	0.75	1.30
GODREJ CONSUMER	1129.35	1132.00	53.10	4.93
HEXAWARE TECH.	423.45	428.50	9.85	2.38

12:45 PM

Now is time to sacrifice margins for growth: Infosys CEO Salil Parekh

 

Salil Parekh didn’t get much time to settle in after taking over the helm of Infosys Ltd.

 

Since becoming chief executive officer in January, the 53-year-old has crisscrossed three continents to meet with customers and employees to get his hands around the challenges facing India’s iconic tech-services giant. He talked with 48 clients in his first three months -- and he’s determined to see every single one face to face in the next two quarters. READ FULL STORY HERE

Sahil Parekh

12:31 PM

ITC trading higher for third straight day; stock up 6% in three days

Shares of ITC were up 4% at Rs 278 per share on the BSE on Wednesday, trading higher for the third straight trading day, on back of heavy volumes. In past three days, the stock outperformed the market by gaining 6.5% from Rs 261 on Friday, April 13, 2018. READ MORE

12:16 PM

Biocon: Monetisation of drug pipeline in emerging markets to boost earnings

The news flow around Biocon’s biosimilar pipeline is gaining strength, helping its stock price outperform the markets. The stock has gained 6.6 per cent in the past month, compared to the Sensex’s 3.1 per cent rise.

 

If analysts are to be believed, it could only get better from here. A few days ago, Biocon announced that the company and its partner Mylan are accelerating the introduction of adalimumab biosimilar of brand Humira, used for treating arthritis, in Europe through Mylan’s in-licensing arrangement with Fujifilm Kyowa Kirin Biologics (FKB). READ MORE

12:00 PM

Markets at Noon

 

S&P BSE Sensex	34,478.39		0.24%
Nifty 50	10,570.50		0.21%
S&P BSE 200	4,648.54		0.22%
Nifty 500	9,349.25		0.20%
S&P BSE Mid-Cap	16,819.60		0.23%
S&P BSE Small-Cap	18,166.83		0.19%

11:45 AM

Retail investors miss rally in Midhani;stock zooms 74% against offer price

Retail investors have missed the rally in Mishra Dhatu Nigam (Midhani) as the stock of state-owned company hit a new high of Rs 151 in intra-day trade on Wednesday, rallying 73% against its offer price of Rs 87 per share. READ MORE

11:30 AM

TCS Q4FY18 result preview: Here's what brokerages expect

 

Infosys surprised the Street by lowering its EBIT guidance for FY19 while announcing its March quarter (Q4FY18) numbers on Friday. Will TCS follow suit? The Tata Group company is likely to announce its results for the March quarter and the full financial year 2017-18 (FY18) on April 19.

 

According to analysts, commentary on spends by BFSI and retail clients, level of outsourcing in Europe will be some of the key monitorables.

 

Click here for a quick compilation of what leading brokerages and research houses expect from TCS:

11:16 AM

Volume Toppers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
VAKRANGEE	125.30	5.60	4.68	13706216
NATL. ALUMINIUM	80.00	2.00	2.56	3330281
REL. COMM.	21.10	0.00	0.00	1618567
JP ASSOCIATES	19.75	0.05	0.25	1343138
TEXMACO RAIL	87.45	1.00	1.16	1014862

 

11:03 AM

SECTOR WATCH: Metals & Mining

We expect integrated aluminium (Al) players such as Hindalco, South32 & Alcoa and US-based convertors like Novelis & Kaiser to outperform in the near term. Our conviction is based on: i) benefits of LME Al price surge likely to be meager for non-integrated players due to an (almost) equivalent rise in alumina price; ii) cascading effect of Rusal sanctions exacerbating Al supply chain uncertainties; and iii) 2.2x jump in US MidWest premiums in CY18 & Al-scrap spread at a three-year high.

In the medium term, however, we perceive risks to current LME Al price upswing from burgeoning Chinese supply and potential roll back of 50% production cut at Alunorte refinery. Maintain ‘BUY’ on Hindalco and Vedanta.

(Source: Edelweiss Research)

11:02 AM

IMF maintains India's FY19 growth at 7.4%; cautions govt on fiscal deficit

 

The International Monetary Fund (IMF) has maintained its forecast for India’s economic growth at 7.4% in 2018-19, which will again make the country the fastest-growing large economy after losing this tag to China by a close margin in 2017-18. For 2019-20, the IMF has projected India to grow at 7.8%. By comparison, the Chinese economy is expected to slow down to 6.4% in 2019, down from 6.6% in 2018.

 

India is likely to have grown 6.7% in 2017-18, the IMF said. In fact, the IMF projection for 2017-18 is a tad higher than 6.6%, pegged by the second Advance Estimates by the Central Statistics Office. China grew 6.9% in 2017. READ MORE

10:47 AM

PSBs' share of NII estimated to rise to three-year high of 39.3% in FY18

After consistently losing market share to private sector banks and non-banking finance companies (NBFCs) for nearly a decade now, top public sector banks (PSBs) are expected turn the corner and report a year-on-year (y-o-y) improvement in their share of overall lending market. PSBs’ combined share of the total net interest income (NII) of the banking sector is estimated to increase by nearly 300 basis points (bps) to a three-year high of 39.3 per cent in FY18 from a record low of 36.4 per cent a year ago, brokerage estimates said. READ MORE

10:29 AM

Jagran Prakashan rebounds from 52-week low on share buyback plan

Shares of Jagran Prakashan, publishers of ‘Dainik Jagran’ newspaper, have opened 5% higher at Rs 164 per share on the BSE on Wednesday after the company announced a share buyback plan. The stock closed at a 52-week low of Rs 156 on Tuesday. READ MORE
 

10:15 AM

Craftsman, backed by Standard Chartered PE, IFC, plans IPO

Standard Chartered PE and IFC-backed precision automobile and industrial components maker Craftsman Automation Pvt (Craftsman) is planning to go in for an initial public offering (IPO). Ahead of listing, the company is raising around $30 million (around Rs 2 billion) to set up satellite factories and on expansions in various parts of the country. IFC will invest up to $30.7 million as a loan to part finance the project. It would provide long-term debt funding with sufficient grace period, to finance the company's expansion, the World Bank’s investment arm said. READ MORE

10:00 AM

Market Check

 

S&P BSE Sensex	34,371.81		-0.07%
Nifty 50	10,544.35		-0.04%
S&P BSE 200	4,637.73		-0.01%
Nifty 500	9,330.40		0.00%
S&P BSE Mid-Cap	16,793.43		0.08%
S&P BSE Small-Cap	18,147.55		0.09%

9:44 AM

INTERVIEW OF THE DAY We have been deploying money at every correction, says Jyoti Vaswani

The sharp drop in the market from the 2018 highs provided an opportunity to buy good quality stocks at reasonable valuations, says Jyoti Vaswani, chief investment officer, Future Generali India Life Insurance. In an interview to Samie Modak, Vaswani says 2018 will be a stock-pickers’ market and one should buy high-quality stocks with earnings visibility. READ MORE

Jyoti Vaswani

9:28 AM

FMCG stocks gain on monsoon hopes

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
UNITED BREWERIES	1099.40	1084.25	15.15	1.40
DABUR INDIA	347.55	343.75	3.80	1.11
GODREJ INDS.	583.00	577.60	5.40	0.93
EMAMI	1148.50	1138.55	9.95	0.87
UNITED SPIRITS	3512.00	3487.80	24.20	0.69