MARKET WRAP: Sensex slips 107 pts ahead of RBI policy outcome; banks fall

Among the sectoral indices, the Nifty Bank index fell 0.61 per cent weighed by HDFC Bank and State Bank of India (SBI)

3:38 PM

Top sectoral gainers and losers on NSE

3:37 PM

S&P BSE Sensex: Top gainers and losers

3:33 PM

Market at close

 

The S&P BSE Sensex shed 107 points to settle at 36,134 while NSE's Nifty50 index dropped 14 points to end at 10,870.

3:15 PM

Sun Pharma extends fall despite clarification on corporate governance issue

Shares of Sun Pharmaceutical Industries moved down by 3% to Rs 442 per share, falling 5% from their early morning high of Rs 465 apiece on BSE, even though the company made a clarification related to corporate governance and whistleblower issues. The stock had ended 7.5% lower at Rs 455 yesterday.
 

It was trading close to its 52-week low price of Rs 435 touched on May 22, 2018, in the intra-day trade. READ MORE

3:01 PM

India seen holding rates steady as inflation, growth soften

 

Analysts expect the Reserve Bank of India (RBI) to support an economy that is losing momentum by leaving interest rates unchanged at a policy meeting on Wednesday, when just over a month ago most of them had predicted a hike. Read more

 

2:47 PM

S&P BSE Oil and Gas index up over 1%

2:41 PM

Stocks that hit 52-week low on BSE500

COMPANY	LATEST	52 WK LOW	PREV LOW	PREV DATE	VOLUME
HSIL	204.70	200.60	202.00	03-DEC-2018	5612
IL&FS TRANSPORT	14.20	14.20	14.90	03-DEC-2018	44994
NAVKAR CORPORAT.	59.40	58.00	58.00	03-DEC-2018	4239
SHANKARA BUILD.	563.55	563.55	626.15	03-DEC-2018	436251
SPARC	242.55	240.00	245.65	03-DEC-2018	45352
TEXMACO RAIL	54.35	53.75	54.00	08-OCT-2018	50112
TIME TECHNOPLAST	102.45	102.00	104.55	03-DEC-2018	7793

 

2:29 PM

Sebi extends deadline for transfer of shares in demat form to April 1

 

Market regulator Sebi on Monday extended the deadline for transfer of shares of listed companies only in demat form to April 1. The last date has been extended after taking into consideration representations from shareholders as the initial deadline was to end on December 5. Shares in the demat form will maintain a transparent record of shareholding at firms amid rising concerns over beneficial ownership of entities In March, Sebi's board decided that except in case of transmission or transposition of securities, requests for effecting transfer of securities will not be processed unless the securities are held in dematerialised form with a depository. Read more

2:16 PM

Domestic ETF assets jump 10-fold at Rs 895 billion in the past three years

 

The assets under management (AUM) of exchange-traded funds (ETFs) — both equity and debt — has seen a tenfold jump in the past three years. At the end of October, equity and debt ETF AUM in India stood at Rs 895 billion. Three years ago, it stood at Rs89 billion. Global ETF AUM recently crossed the $5-trillion mark. Read more

2:01 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,164.28	-76.72	-0.21
S&P BSE SENSEX 50	11,381.20	-8.57	-0.08
S&P BSE SENSEX Next 50	32,318.47	-24.91	-0.08
S&P BSE 100	11,138.03	-8.17	-0.07
S&P BSE Bharat 22 Index	3,434.04	+4.06	+0.12

1:46 PM

Sebi panel plans to allow direct listing of Indian cos on overseas bourses

 

A high-level panel on Tuesday recommended market regulator Sebi to allow direct listing of Indian companies on overseas bourses and of foreign firms on Indian exchanges. Currently, Indian companies can list their shares through depository receipts abroad, while foreign companies need to go through the Indian Depository Receipt route for listing of equities. Read more

1:32 PM

NEWS ALERT Government will not participate in open offer made by LIC for IDBI Bank 

1:28 PM

top losers in BSE500

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
SHANKARA BUILD.	563.55	-62.60	-10.00	433672
KWALITY	10.07	-0.52	-4.91	41649
IL&FS TRANSPORT	14.20	-0.70	-4.70	43838
J KUMAR INFRA	128.20	-5.20	-3.90	4664
QUESS CORP	704.35	-22.10	-3.04	3911

1:25 PM

Rattled nerves at India Inc lead to boom in overnight funds to Rs 123 bn

Corporate treasury departments in India have become so concerned about credit risk they’re increasingly parking their cash in securities maturing overnight.

 

Assets with overnight funds soared to 123 billion rupees ($1.8 billion) last month, from 39 billion rupees in September, as companies chose safety over returns in the wake of a rare debt default, data from Morningstar Investment Adviser India Pvt. show. Strong demand has seen five firms, including Reliance Nippon Life Asset Management Ltd., lining up new offerings. READ MORE

1:14 PM

Sun Pharma still not out of red; unsecured loan advances among key concerns

Dilip Shanghvi-led pharmaceutical major Sun Pharma denied allegations of insider trading and other lapses in corporate governance at a conference call on Monday to allay investor concerns. But brokerages point out that a few questions still remain unanswered. They say that until Sun Pharma re-evaluates some of its structures and transactions which weaken investor confidence, these issues will overshadow Sun Pharma's overall performance.

 

The stock on Tuesday remained stable in morning trade after falling 7.5 per cent in the previous session after Sebi sources said during the weekend that they were planning to reopen an insider trading case against the company that was settled in 2017. READ MORE

12:58 PM

Kesoram Industries extends rally on talk of demerger; zooms 65% in 3-weeks

 

Shares of Kesoram Industries has moved higher by 8% to Rs 99, extending its past three weeks rally on the BSE after media report suggest that the company may demerge its loss-making tyre unit by the end of December. Since November 13, post-September quarter results (Q2FY19), the stock zoomed 65% from Rs 60, as compared to a 2.6% rise in the S&P BSE Sensex. Kesoram Industries had reported a net loss of Rs 963 million in Q2FY19 against loss of Rs 1,396 million in the same quarter previous fiscal. It posted a net loss of Rs 634 million in Q1FY19. Read more

12:44 PM

WEB EXCLUSIVE From Jefferies to Edelweiss, here's how brokerages interpret HUL-GSK deal

 

A day after Hindustan Unilever (HUL) said it was merging GlaxoSmithKline (GSK) Consumer Healthcare with itself in a transaction worth Rs 317 billion that triggered a rally in both counters on Monday, HUL and GSK Consumer gave up some of the gains on Tuesday. While HUL slipped nearly a per cent lower at Rs 1,811 levels on the NSE, GSK Consumer Healthcare, too, is trading marginally lower at Rs 7,524 levels. Read more

12:38 PM

NEWS ALERT Responsive Industries defers proposed buyback

12:35 PM

Sharekhan on Marico

Marico will be one of the key beneficiaries of correcting copra prices in the coming years. Though there is threat of inflation in other input prices, improvement in volume growth of the domestic business, recovery in the international business and operating efficiencies would mitigate the impact of hike in the other input prices in the coming years.

We expect Marico’s earnings to generate a CAGR of 18% over FY2018-FY2021E (introduced FY2021E earnings in this note). The stock is currently trading at around 35x its FY2021E earnings. With strong earnings growth visibility in the near term, we maintain our Buy recommendation on the stock with a revised price target (PT) of Rs. 425 (rolling it over to FY2021E earnings).

12:34 PM

Commodity watch (Source: Reliance Securities)

12:34 PM

S&P BSE Sensex top gainers and losers

12:32 PM

ICICI Securities on Century Plyboards

We expect the company to report significantly better H2 as compared to muted H1 which was impacted by steep fall in laminate and MDF margins and forex loss.

We expect CPBI to report revenue and PAT CAGRs of 15.6% and 25.7% over FY18- FY20, respectively. We maintain BUY on CPBI with a target price of Rs232 valuing it at 20x FY20E earnings.

12:31 PM

ICICI Securities on Bharti Infratel

We downgrade Bharti Infratel one notch to ADD (from Buy) with a revised target price of Rs290 (from Rs325). We have cut our EBITDA estimates for Bharti Infratel by 2-8% over FY19-FY21E as we incorporate incremental tenancy exits by VIL. We have not included any penalties receivable, and the company has already stated it would potentially receive Rs15bn (3.2% of market cap) from earlier tenancy exits. We expect pro forma EBITDA for Bharti Infratel (including 100% of Indus Towers) likely to dip by 21% in FY20E vis-à-vis FY18.

12:17 PM

As Opec-Russia meet in Vienna this week, here are some possible outcomes

OPEC and its allies gather in Vienna this week to discuss production cuts after the biggest monthly drop in oil prices in a decade. They have the broad outlines of a deal after Russia and Saudi Arabia agreed over the weekend to extend their cooperation into 2019, but details are lacking. READ MORE

12:02 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,090.32	-150.68	-0.42
S&P BSE SENSEX 50	11,352.90	-36.87	-0.32
S&P BSE SENSEX Next 50	32,303.44	-39.94	-0.12
S&P BSE 100	11,113.47	-32.73	-0.29
S&P BSE Bharat 22 Index	3,426.44	-3.54	-0.10

11:40 AM

Elara Capital on Hindustan Unilever

 

RATING: Accumulate

CMP: Rs 1,826

TARGET PRICE: Rs 1,732

 

Unilever Plc announced acquisition of HFD major Horlicks (GSKCHIndia) for total equity value of Rs 317bn for sales of Rs 45bn/ EBITDA of INR 8.8bn (FY18) pegging the valuation of the deal at EV/Sales of 6.5x & EV/EBITDA of 32x – much lower than its own valuation of 11x/ 52.2x respectively. It’s an all equity deal with share swap ratio of 4.39 shares of Hindustan Unilever for each share of GSKCH. Total dilution will be 8% and Glaxo will have 5.7% stake in Hindustan Unilever post the merger. The transaction is EPS accretive as merged entity’s EPS would be 3% higher (FY18) than current levels even without any synergies. Since book value of GSKCH excluding cash is “negative”.

11:23 AM

Nifty IT index is trading around 1.5% higher led by Infibeam

 

11:14 AM

Info Edge hits new high; up 22% in seven days

 

Shares of Info Edge (India), owner of one of the leading job portals naukri.com, were trading higher for the seventh straight trading day on Tuesday. The stock was up 5% to Rs 1,695 on the BSE in early morning trade in an otherwise subdued market. The company is a leading provider of various portals related to online recruitment, matrimonial, real estate and education classifieds and related services in India. Read more

 

11:06 AM

Uflex rises 7% as global arm FlexFilms gets US patent for film packaging

Shares of Uflex rose as much as 6.8 per cent to Rs 297 apiece on BSE in the intra-day trade on Tuesday, after the company announced that its global film manufacturing arm, FlexFilms has been granted United States Patent covering entire categories of formable films that include one or more BOPET layers used in Alu Alu blister packaging. READ MORE

 

10:47 AM

Deal with GSK Consumer Healthcare earnings accretive for Hindustan Unilever

Hindustan Unilever's (HUL's) merger with GlaxoSmithKline Consumer Healthcare (GSKCH) is not only attractive for the latter's shareholders, given the share swap, but also accretive for HUL in the medium term. For every share of GSKCH, shareholders of the company will get 4.39 shares of HUL. READ MORE