MARKETS ON FRIDAY: Sensex hits 35k intraday; trims gains to end 256 pts up

Sensex hits 35,000 levels in intraday trade, led by gains in banking stocks. In corporate results, Maruti reported FY18 net at Rs 77.21 billion. Stock ended 1.9% lower at Rs 8,778 levels

3:41 PM

Sectoral performers of the day

3:38 PM

BSE Sensex gainers and losers of the day

3:35 PM

Market at close

 

The S&P BSE Sensex ended at 34,970, up 256 points while the broader Nifty50 index settled at 10,692, up 75 points.

3:26 PM

Maruti Suzuki India falls 5% from day's high post Q4 results

Shares of Maruti Suzuki India have dipped 2.5% to Rs 8,721 per share, falling 5% from their intra-day high of Rs 9,142 per share on the BSE, after the automaker reported a lower than expected net profit of Rs 18.82 billion due to higher tax outgo in March quarter (Q4FY18). It had profit of Rs 17.11 billion in year ago quarter. READ MORE

3:18 PM

Sensex reclaims 35,000: IT, FMCG, auto, metal stocks shine in claw-back

The S&P BSE Sensex has regained nearly 2,400 points, or 7.4 per cent, from its recent low hit on March 23, 2018, to reclaim 35,000 levels in intra-day deals on Friday. Stocks from the metal, information technology (IT), fast moving consumer goods (FMCG) and automobiles sectors have been among the top performers during this rally.

 

While Hindustan Unilever, Nestle India, Dabur India and Britannia Industries from the FMCG sector have rallied in the range of 10 per cent to 16 per cent, as many as 18 stocks from the information technology (IT) sector such as Tata Consultancy Services (TCS), Mphasis, Mindtree, Sasken Technologies, Firstsource Solutions and NIIT Technologies have rallied between 20 per cent and 43 per cent during the period. READ MORE

3:07 PM

COMMENT ON MARUTI'S RESULTS Abhishek Jain, analyst at HDFC Securities

We remain positive on Maruti Suzuki's (MSIL’s) growth story based on: (1) steady volume growth plus increase in PV market share (2) Increasing ASP, led by expanding portfolio in the premium segment, (3) incremental volumes from the Gujarat facility (4) Ramp-up in rural demand and 5) healthy ROE/ROCE (25% in FY19/20E) and free cash flows. However, challenges persist in the form of: (1) increasing fuel prices, and (2) slowdown in demand from cab aggregators such as Ola and Uber owing to cut down in incentives for car owners/drivers.

We expect revenue/EPS growth of 13/17% CAGR over FY18-20E. The stock is fairly valued at 23x FY20E (5/10 yr median at 20/16x). Maintain NEUTRAL with target price of Rs 9525, 25x FY20E

3:05 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,964.88	+251.28	+0.72
S&P BSE SENSEX 50	11,187.55	+71.62	+0.64
S&P BSE SENSEX Next 50	34,718.44	+294.99	+0.86
S&P BSE 100	11,097.12	+74.70	+0.68
S&P BSE Bharat 22 Index	3,590.97	+61.63	+1.75

(Source: BSE)

2:57 PM

MUST READ Maruti Suzuki posts record Rs 77 bn profit in FY18 on 17% hike in revenue

Country’s largest car maker Maruti Suzuki has reported a record annual profit of Rs 77.21 billion for the year ended March 31, 2018, helped by a double-digit growth in volumes of cars sold.

 

The Suzuki promoted firm clocked a near 17 per cent jump in sales revenue for the year to Rs 781 billion. Profit, however, grew by just five per cent. An increase in effective tax rates and lower non-operating income due to mark-to-market impact on the invested surplus, compared to last year impacted net profit, the company said. READ MORE

2:48 PM

Earnings impact: Maruti Suzuki shares slip 1.8% on NSE

2:36 PM

Maruti Suzuki Q4FY18: EBITDA margin at 14.2% vs 14% (YoY), reports CNBC TV18

2:35 PM

Maruti Suzuki Q4FY18: Realisation up 3.6% at Rs 4.58 Lk vs Rs 4.42 Lk (YoY), reports CNBC TV18

2:33 PM

Maruti Suzuki Q4FY18: Revenue up 15.4% at Rs 21,165.6 vs Rs 18,333 (YoY), reports CNBC TV18

2:29 PM

Maruti Suzuki Q4FY18: EBITDA up 17.8% at Rs 3,015 cr vs Rs 2,560 cr (YoY), reports CNBC TV18

2:24 PM

Maruti Suzuki Q4FY18: Profit up 10.1% at Rs 1,882 cr vs Rs 1,710 cr (YoY), reports CNBC TV18

2:01 PM

Market Check

 

S&P BSE Sensex	35,013.14		0.86%
Nifty 50	10,701.05		0.78%
S&P BSE 200	4,703.67		0.80%
Nifty 500	9,452.85		0.76%
S&P BSE Mid-Cap	16,932.15		0.88%
S&P BSE Small-Cap	18,290.14		0.69%

1:46 PM

Jewellers see 10% export growth in FY19 after 5% decline in FY18

After a five per cent decline in FY18, jewellers believe there would be a 10 per cent jump in India’s gem and jewellery export for the current financial year. They point to demand from new markets, depreciation in the rupee against the dollar and increases in diamond prices. READ MORE

1:30 PM

PSU banks rally; Nifty PSU Bank index up 5%

Shares of public sector undertaking (PSU) banks were in focus with Nifty PSU Bank index gaining 5%, its sharpest intra-day gain during past one month on the National Stock Exchange (NSE). READ MORE

1:16 PM

Sebi puts plans to allow MFs to be sold via passporting on the back-burner

The Securities and Exchange Board of India (Sebi) has put its plans to allow Indian mutual funds (MFs) to be sold through ‘passporting’ on the back-burner. Passporting would have allowed domestic schemes to be sold in Asian countries without the need for regulatory clearance in the host country.

 

The regulator is worried about excessive inflows into MFs and fears that being part of such an agreement will bring in additional foreign money into Indian mutual fund schemes, making them more susceptible to sudden outflows, sources said. READ MORE

1:00 PM

Lodha Developers files DRHP for IPO, aims to raise Rs 53 billion

Mumbai based property developer Lodha has filed draft red herring prospectus for its IPO. The IPO aims to raise between Rs 50 billion to Rs 53.50 billion, sources said. The issue comprises issue of fresh shares worth Rs 37.50 billion and an offer for sale (OFS) of 18 million shares by the promoters. READ MORE

12:47 PM

FOMC meeting—key expectations by Morgan Stanley

 

We look for no change in the target range of the federal funds rate in its May 01 - 02 meeting, following the 25bp increase to 1.50%-1.75% at the March meeting.

By the time of its May meeting, the FOMC will have the 1Q GDP data in hand.

Despite a weak start to the year, GDP has clearly been held down by transitory factors and we believe a rebound is in the cards. Since the March meeting, the incoming inflation data have confirmed the expected rebound as last year's telecom price reset rolled out of the 12-month window. We believe March data on core PCE inflation, released April 30, will show an annual rate of 2.0%—touching the Fed's 2% goal for the first time since spring 2012.

12:45 PM

Trader's guide to India elections says it is time to buy equities

Indian stocks have been roughed up along with most markets in recent months, but there could soon be reason to cheer. National elections are due by 2019, and modern history shows that tends to be a good thing for investors.

 

While Prime Minister Narendra Modi faces an uphill battle to sustain his party’s majority in the key lower house of parliament, the past six elections show positive returns for Indian equities over the two years that straddle the vote — regardless of whether power changed hands. READ MORE

12:30 PM

Indian Hotels stock: Lower debt, higher room revenues to aid margin

The Indian Hotels stock has gained 20 per cent over the past month on expectations that demand growth, presence in the higher growth premium segment, improving margins and debt reduction will reflect on operational performance. Given the improving industry dynamics and strong outlook, brokerages are positive on the prospects. The reason for the positive stance is the improving demand-supply situation, reflected in higher occupancy levels. READ MORE

12:19 PM

Emerging markets performance tied to oil price surge, says Nomura

If the crude oil prices continue to go up, there could be variations in the performance of emerging markets (EMs). Markets such as Saudi Arabia, Brazil and Russia could gain at the expense of oil importers such as India, the Philippines and Indonesia. READ MORE

12:05 PM

Market Check

 

S&P BSE Sensex	34,933.49		0.63%
Nifty 50	10,678.85		0.57%
S&P BSE 200	4,693.83		0.59%
Nifty 500	9,435.30		0.58%
S&P BSE Mid-Cap	16,889.19		0.62%
S&P BSE Small-Cap	18,280.01		0.64%

11:44 AM

TOP CONTRIBUTORS TO SENSEX'S GAIN TODAY

COMPANY	LATEST	CHG(RS)	CHG(%)	FREE FLOAT MKT CAP (RS CR)	CONTRIBUTION (POINTS)
ICICI BANK	289.15	10.40	3.73	149832.07	72.63
AXIS BANK	519.00	24.45	4.94	73182.24	48.94
ST BK OF INDIA	245.05	11.70	5.01	71541.97	43.69
RELIANCE INDS.	994.95	19.60	2.01	176731.30	41.98
MARUTI SUZUKI	9125.00	177.20	1.98	61497.20	28.32

11:35 AM

STOCK WATCH Axis Bank rises 5% despite weak Q4 results

Shares of Axis Bank were up 5% at Rs 522 per share on the BSE despite the private sector lender reporting its first 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 CLICK HERE FOR MORE

11:28 AM

IIFL on Sterlite Technologies Limited (STL)

Going forward, the rising capex from telecom companies to improve network infrastructure, Government’ BharatNet program and smart city projects would be the key growth drivers for STL. With order book driven by high margin products, blended operating margins are likely to remain elevated at >20% levels over next few years. Post the recent correction in share price, the stock is trading at attractive valuations. We upgrade our rating to BUY for target price of Rs.406 (15x FY20E EV/EBITDA)

11:26 AM

Morgan Stanley on YES Bank

Our price target of Rs400 is derived using a base case residual income model with three phases: a five-year high-growth period, a 10-year maturity period, and a declining period. We use a cost of equity of 13.6% assuming a risk-free rate of 7.25%, a market risk premium of 5.5% and a beta of 1.15 respectively. We use a terminal growth rate of 6.0%.

Downside risks : Slower-than-expected loan and fee income growth, sharp compression in NIM, poor macro conditions, which would impair asset quality, higher-than-expected second-order impact from RBI actions , structural increase in provisioning due to the RBI’s dynamic provisioning policy .

11:23 AM

Rupee outlook by Elara Capital

With US 10 year yield hovering around 3%, and US Dollar Index at 91.56 level compared to calendar year low of 88.39, Rupee is likely to remain under pressure in the near term with a possibility of USDINR touching 68 if the US yields jump higher from the current levels and oil prices sustain.

However, we continue to believe that the recent weakness in the Rupee is getting amplified by the developments in the global space and hence there would be some respite in store in the medium term supporting a retracement of Rupee to a level closer to 66 to the US Dollar by Q2FY19

11:22 AM

Edelweiss on Tajas Networks

Although the company has maintained its FY17-20 revenue CAGR guidance of 20%, we are building in 14.4% CAGR due to low visibility and potential demand challenges in overseas business. Accordingly, we cut FY19/20E revenue and earnings by 17.2%/14.6% and 20.7%/15.7%, respectively.

We also lower our target multiple to 20x (from 23x) to factor in volatility in revenue. However, we believe that the company’s business model is well suited to benefit from strong order flow led by increasing fibre investments. Maintain ‘BUY’ with revised target price of Rs 396