MARKETS ON MONDAY: Nifty ends above 10,700, IT stocks gain, RIL down 3%

Benchmark indices hit a near three-month high on Monday, as technology shares gained.

3:43 PM

RIL ends 3.29% down on the NSE

3:41 PM

Nifty IT index rises 1.39%. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
KPIT TECH.	258.60	247.85	10.75	4.34
TATA ELXSI	1237.80	1198.65	39.15	3.27
MINDTREE	1084.60	1050.70	33.90	3.23
TCS	3532.10	3451.95	80.15	2.32
INFOSYS	1199.50	1185.20	14.30	1.21

3:36 PM

Sectoral performers

3:35 PM

BSE Sensex: Yes Bank, HUL among top gainers of the day, Axis Bank top loser

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 35,160, up 191 points while the broader Nifty50 index settled at 10,739, up 47 points.

3:14 PM

Gold falls Rs 120 on weak global cues, low demand

Gold prices fell by Rs 120 to Rs 32,200 per 10 gram at the bullion market today, tracking a weak trend overseas and muted demand from local jewellers.

 

Silver also dropped by Rs 150 to Rs 40,300 per kg due to reduced offtake by industrial units and coin makers. READ MORE

2:55 PM

Buy Interglobe Aviation only on a correction, say analysts

Interglobe Aviation, the parent company of IndiGo, lost ground in trade after a steady start. The stock hit a high of Rs 1,443 on the NSE before slipping to around 1,400 levels in intraday trade. By comparison, the Nifty50 index gained 0.6 per cent to 10,754 levels.

 

The weakness in the stock, analysts say, is a knee-jerk reaction to the news of its president, Aditya Ghosh, unexpectedly quitting on Friday. They believe the slide mostly factors in the development and stability – at last from a short-term perspective – should return once a successor is named CLICK HERE FOR MORE

2:54 PM

Buy Interglobe Aviation only on a correction, say analysts

Interglobe Aviation, the parent company of IndiGo, lost ground in trade after a steady start. The stock hit a high of Rs 1,443 on the NSE before slipping to around 1,400 levels in intraday trade. By comparison, the Nifty50 index gained 0.6 per cent to 10,754 levels.

 

The weakness in the stock, analysts say, is a knee-jerk reaction to the news of its president, Aditya Ghosh, unexpectedly quitting on Friday. They believe the slide mostly factors in the development and stability – at last from a short-term perspective – should return once a successor is named. Surprisingly the stock, as if anticipating the move, had lost over 6 per cent in trade ahead of the announcement on Friday. READ MORE

2:41 PM

Crude Update

Oil prices dipped after a rising rig count in the United States pointed to higher production there, but markets held near their highest in over three years and remained set for a second straight month of gains.

 

Oil prices were supported by supply concerns amid prospects that the United States could reimpose sanctions on Iran, while OPEC-led producers continue to withhold output.

 

Brent crude futures, the international benchmark, dipped 1.33 per cent, to $73.65 a barrel. Prices climbed as high as $75.47 last week, levels not seen since November, 2014.

2:34 PM

UBS ON REAL ESTATE SECTOR

Reports suggest that new Mumbai development plan 2034 has been approved, allowing for horizontal and vertical growth of developable area in Mumbai. Potential developable area caps for commercial real estate have been almost doubled (linked proportional to the road width) and for residential has been increased by ~10- 20%.

Developers/landowners would benefit from increase in developable value of their lands (providing some support to sluggish land prices), however availability of more potential supply could imply that property price appreciation over long term would be lower than earlier expected especially in areas where land has been opened up for development.

With property affordability at 15 year best levels, new regulations increasing customer confidence and favourable government policies, we think property volumes should recover over medium term and more for organised developers as they would gain share aided by new regulations

2:32 PM

MARKET COMMENT Ajay Bodke CEO & Chief Portfolio Manager PMS, Prabhudas Lilladher

The just concluded historic summit between the Presidents of two Koreas has rekindled global hopes of a lasting détente.  If a clearly agreed path between the two sides leads to a signing of an armistice and eventual denuclearization of the Korean peninsula, it has the potential to fuel heightened risk appetite and will be positive for risk assets.

 

Japanese Yen (JYP) in particular would be one of the biggest beneficiaries to reap this ‘Peace Dividend’. During times of heightened geo-political & security tensions global investors tend to rush to buy safe-haven assets like JPY creating headwinds for an export-dependent economy like Japan

 

2:15 PM

Indiabulls Ventures spurts on share issue plan

Indiabulls Ventures rose 7.01% to Rs 481.10 on BSE after the company said its board will meet on 4 May 2018 to consider preferential issue of equity shares.

 

The announcement was made during trading hours today, 30 April 2018. Meanwhile, the S&P BSE Sensex was up 196.93 points, or 0.56% to 35,166.63. READ MORE

1:58 PM

Market Check

 

S&P BSE Sensex	35,160.25		0.54%
Nifty 50	10,738.80		0.43%
S&P BSE 200	4,722.98		0.54%
Nifty 500	9,489.85		0.49%
S&P BSE Mid-Cap	17,020.92		0.61%
S&P BSE Small-Cap	18,361.61		0.67%

1:47 PM

Govt seeks proposals for debt exchange traded fund by May 16

The government plans to launch its first debt exchange traded fund (ETF) early in the second half of 2018-19. The ETF’s basket is expected to contain debt offerings from 12-15 state-owned companies, including banks and central public sector enterprises (CPSE), Business Standard has learnt.

 

The Centre will also discuss how to attract more retail investors into corporate bond markets, with market regulator Securities and Exchange Board of India (Sebi), starting with the planned debt ETF. READ MORE

1:30 PM

Top BSE500 gainers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
REPCO HOME FIN	643.00	45.70	7.65	68974
INDIABULLS VENT.	482.00	32.40	7.21	633570
BOMBAY DYEING	308.00	17.90	6.17	1344376
LAK. MACH. WORKS	8410.00	450.85	5.66	3026
GATI	119.75	6.35	5.60	587271

1:16 PM

Has LTCG tipped the balance in favour of Ulips?

The introduction of long-term capital gains (LTCG) tax on equities seems to be harsh for retail investors. But it also seems to have made unit-linked insurance plans a better option than mutual funds. The tax, which will be levied at the rate of 10 per cent if equities are sold after one year, will be imposed without any indexation benefit. The relief: long-term capital gains up to Rs 100,000 will be exempt. Since there is no LTCG tax on Ulips, many mutual fund investors would wonder if the former is a better option after this recent tweak in taxation. Here's a comparison of these two products across various parameters to help investors decide. READ MORE

1:00 PM

Market Mind: Some interesting stories

These are interesting stories one has picked up across travels of the last month.

 

Somany Ceramics’ 2017-18 has been a washout of a year due to GST (goods and services tax). This intrigued; most companies had got over the GST-induced destocking pains by the second quarter. Somany explained how the unorganised trade in Gujarat has figured out a way to beat GST and the differential they enjoy (presently!) over the organised manufacturers (who pay taxes and are therefore priced higher) has increased after GST -- and that GST implementation could still take a year to stabilise. READ MORE

12:48 PM

Disaster recovery sites of exchanges under focus as NCDEX volumes fall

Volumes on the National Commodity & Derivatives Exchange (NCDEX) fell sharply after the bourse shifted trading to a disaster recovery (DR) site mid-April. A DR site is an alternative scaled-down trading facility that exchanges use when the primary set-up becomes dysfunctional.

 

The decision to migrate had to be taken after some cables were damaged in an accidental fire on April 16, in the building that houses the NCDEX office in Kanjurmarg, Mumbai. Trading operations were normalised a day after the exchange moved site. READ MORE

12:33 PM

Don't let doubts about blockchains close your mind

Many people, when they hear the word “blockchain,” think of Bitcoin and other cryptocurrencies. Yet there is another feature of the blockchain afoot, one which promises to bring a new and radical decentralisation to technology, including social media. Or as it was reported on Twitter: “Silicon Valley used to be a counterculture. It’s not anymore. It is the establishment. The crypto community is the new counterculture.”
 

The basic idea of a blockchain, in its purest form, is to set up a record-keeper and adjudicator that does not rely on any specific third party or outside institution. The details are complex, and I will put aside the cryptographic elements of the mechanism, but imagine paying caretakers who update or validate a public ledger for recording who owns what. READ MORE

12:16 PM

DSP Group, BlackRock may part ways in asset management venture

DSP Group and BlackRock, the world’s largest investment management firm, have entered into discussions to end their existing 60:40 joint venture (JV) in asset management company DSP BlackRock Investment Managers, said two people in the know.

DSP BlackRock is among the top 10 fund houses in the country and managed assets worth about Rs 860 billion as of March 2018. The DSP Group, headed by Hemendra Kothari, is one of the oldest financial services firms in India. BlackRock is the world’s largest asset manager with over $6 trillion in assets under management (AUM) as of December 2017. READ MORE

12:02 PM

Market Check

 

S&P BSE Sensex	35,197.47		0.65%
Nifty 50	10,751.00		0.55%
S&P BSE 200	4,727.31		0.63%
Nifty 500	9,496.75		0.56%
S&P BSE Mid-Cap	17,000.50		0.49%
S&P BSE Small-Cap	18,361.95		0.67%

11:51 AM

DBS Q1 profit jumps 26% to record on strong loans growth

 

DBS Group Holdings, Singapore's biggest lender, beat market estimates with a 26 percent rise in first-quarter net profit to a record high, powered by strong loan growth in a strengthening economy.

 

The robust showing by DBS, which kicked off results for the sector, comes after the bank and its peers OCBC and United Overseas Bank posted record profits last year on broad-based growth in businesses such as wealth management. READ MORE

11:30 AM

RBI removes minimum maturity cap for FPI investment in bond market

 

The Reserve Bank of India (RBI), in an attempt to keep foreign investors invested in the local bond market, late on Friday said they could invest in any maturity they wished for instead of the restrictive clause earlier that the investment must be in paper that had at least three years left to mature.

 

“The minimum residual maturity requirement for central government securities and state development loan categories stands withdrawn, subject to the condition that investment in securities with residual maturity below one year by an FPI under either category shall not exceed, at any point of time, 20 per cent of the total investment of that FPI in that category,” the RBI said in a notification on its website. READ MORE

11:15 AM

Stocks at 52-week high

COMPANY	PRICE( )	52 WK HIGH	CHG( )	CHG(%)
ASHOKA BUILDCON	285.00	294.95	9.85	3.58
AVENUE SUPER.	1523.90	1534.00	40.15	2.71
BERGER PAINTS	283.15	287.30	3.55	1.27
BOMBAY DYEING	305.25	310.05	15.15	5.22
BRITANNIA INDS.	5495.40	5532.00	38.55	0.71

11:01 AM

RBI's days of heavy currency intervention may have started

The Reserve Bank of India (RBI) has started intervening in the currency market, a move, many players say, would be a one-way street because the rupee is expected to remain volatile and weaken further.

 

The RBI’s official stand is that it doesn’t target a level for the rupee but irons out volatility. The volatility in the currency market increased recently. READ MORE
 

10:43 AM

Aditya Ghosh quits as IndiGo prez; stock rebounds after 6% fall on Friday

Shares of Interglobe Aviation rebounded, gaining 1% on Monday after falling over 6% on Friday after IndiGo announced today that Aditya Ghosh will step down as President and is likely to be replaced by one of its former executives Gregory Taylor. It said Rahul Bhatia, a promoter of the company, has been appointed as the interim CEO. READ MORE

10:26 AM

MUST READ Party in mid-cap IT stocks to continue: MindTree, Zensar gain of over 35%

Mid-cap IT stocks have been in the limelight, gaining 20-40 per cent over the last month with a large chunk of the gains coming over the last couple of weeks driven by improving deal pipeline, growing digital business and rupee depreciation. While MindTree and Zensar Technologies posted gains of over 35 per cent, Mphasis, NIIT Tech and the L&T software twins gained upwards of 19 per cent CLICK HERE FOR MORE

10:20 AM

Anand Rathi on Indoco Remidies

We believe that the recent non-compliance certificate from the UK MHRA would hurt Indoco’s revenue from Europe (EU) for 3-4 months. Also, delay in supply to the US from its Goa plant II would drag down overall revenue and earnings. Considering the sharp fall in the stock price, we retain our Hold on the stock, with a revised target price of Rs 227

10:18 AM

Reliance Industries falls over 2% post Q4 earnings results

Reliance Indutries (RIL) fell over 2% after the company’s consolidated finance cost jump to Rs 25.66 billion as against Rs 5.56 billion in the last quarter of 2016-17, and Rs 21 billion in the December 2017 quarter.

 

The company reported a consolidated net profit of Rs 94.35 billion for the quarter ending March 31 (Q4) on the back of improved performance of its petrochemical and retail businesses. The profit was largely in line with the estimates and represents a 17.3 per cent increase over Rs 80.46 billion reported in the year ago quarter. READ MORE

10:04 AM

Elara Capital on SAIL

Domestic demand is expected to improve on the back of the government thrust on infrastructure and improvement in economic activities. We believe higher volume and realization, aided by improving macro, will bolster earnings. Since our Q3FY18 quarterly update, we have reduced our volume estimates to 18mn tonnes from 19mn tonnes for FY20 and increase our tax outflow estimates by 120%, given no clarification from the company on deferred tax assets. 

Reiterate Buy with a revised target price of Rs 107 from Rs 114 based on 1.1x (unchanged) FY20E P/B, given expected improvement in operational performance and favorable macros.