F&O expiry: Nifty ends at 10,589, PSU banks fall; rupee hits record low

Among sectoral indices, the Nifty PSU Bank index ended nearly 2% lower led by a fall in the shares of Punjab National Bank, Bank of India and Syndicate Bank.

4:20 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking 

Nifty remained under pressure and lost over half a percent on the F&O expiry day. Participants were already in the cautious mood from the beginning and weak global cues combined with the news of rupee trading at new record low against the US dollar further worsened the sentiment. Almost all the sectoral indices traded in line with the benchmark and closed lower.

 

Continuous global pressure and deteriorating macroeconomic condition on local front are responsible for the recent correction. And, we may see further pressure in the days to come. However, oversold positions may result in some rebound in between. Traders should limit leveraged trades and wait for clarity

4:01 PM

Nifty PSU Bank index settled 1.95% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
PUNJAB NATL.BANK	72.80	76.75	-3.95	-5.15
SYNDICATE BANK	39.20	41.00	-1.80	-4.39
BANK OF INDIA	85.15	88.70	-3.55	-4.00
ORIENTAL BANK	71.70	73.90	-2.20	-2.98
UNION BANK (I)	79.80	81.35	-1.55	-1.91

3:59 PM

Nifty sectoral losers

3:57 PM

BSE Sensex: ICICI Bank, Tata Motors, RIL among top losers

3:31 PM

Market at close

 

The S&P BSE Sensex ended at 35,038, down 179 points while the broader Nifty50 index settled at 10,589, down 82 points.

3:16 PM

COMMODITY WATCH Crude oil

We have seen dramatic rise in the crude oil prices in the last couple of months due to geo-political concern. There are supply issues from Venezuela, Libya and Canada. US has asked countries to cut imports of Iranian oil from November. So the crude oil prices are moving higher in the international market.

On the other hand, the rupee has depreciated to all time low levels. As a result, crude oil prices touched Rs 5000 on the MCX yesterday. The rupee is expected to depreciate in coming sessions due to steady capital outflows and worsening macroeconomic conditions. Hence, we expect that crude oil prices might trade in a range of Rs 4800 to Rs 5200 on the MCX in coming sessions

(Source: Anand Rathi Commodities)

3:14 PM

BSE Smallcap index hits 9-month low; 111 stocks tank over 50% in CY18

Shares of smallcap companies continue to be under pressure with the S&P BSE Smallcap index hitting nine-month low, down for the fourth straight trading day on the BSE on Thursday. Thus far in calendar year 2018 (CY18), the S&P BSE Small-cap index has underperformed by falling 18%, as compared to 14% decline in the S&P BSE Midcap and 3% rise in the S&P BSE Sensex. READ MORE

3:13 PM

Where is the rupee headed?

The Indian rupee is set to weaken beyond 71 per dollar by June next year as the country’s current-account deficit widens on rising oil prices, said Taimur Baig, chief economist at DBS Group Holdings Ltd.

 

Rising US interest rates, a stronger dollar and fears of a trade war will spur flows into traditional safe-haven liquid currencies, Baig said in an interview. External funding pressures due to slowing capital flows will also keep the rupee under pressure, he added. READ MORE

3:02 PM

Top losers in BSE500:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
KRBL	308.50	348.75	-40.25	-11.54
M R P L	79.15	86.95	-7.80	-8.97
V-MART RETAIL	2336.00	2547.75	-211.75	-8.31
JAIN IRRIGATION	80.50	86.75	-6.25	-7.20
TECH MAHINDRA	668.95	714.00	-45.05	-6.31

2:46 PM

Oil price update

US oil prices steadied on Thursday, pulling back from 3-1/2-year highs, but supply remained tight with investors concerned by the prospect of a big fall in crude exports from Iran due to U.S. sanctions.
 

US light crude was 15 cents lower at $72.61 per barrel, after hitting $73.06 on Wednesday, its highest since November 2014. Benchmark Brent was unchanged at $77.62 a barrel. READ MORE

2:32 PM

COMMENT Nitasha Shankar, Sr. Vice President and Head of Research at YES Securities on rupee

The sectors that are looking good due to the fall in the rupee are of course the export oriented ones including IT and Pharma. However we believe this could mean further weakness for the oil marketing companies which have already been languishing under the pressure of higher crude prices

2:23 PM

Vietnam's loss is India's gain as US regulates illegal shrimp imports

The US’s move to introduce measures to prevent illegal, unreported and unregulated (IUU) fishing and misrepresented seafood from entering the country is likely to help Indian shrimp exports because new regulations will hurt exports from Vietnam, India's main competitor. READ MORE

2:14 PM

Rupee breaches 69/dollar level; mild intervention from RBI seen

The rupee fell to its lowest ever against the U.S. dollar on Thursday on the back of weak macro-economic fundamentals, broad dollar strength overnight and declining Asian peers, but mild intervention from the central bank helped stem losses. READ MORE

2:10 PM

IndusInd Bank buys IL&FS Securities; capital market deal to boost growth

IndusInd Bank was one of the few large private banks without a major presence in the capital market business. With Tuesday’s announcement of acquiring IL&FS Securities Services (ILFS), it has partly bridged this gap. READ MORE

2:00 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,098.94	-118.17	-0.34
S&P BSE SENSEX 50	11,127.45	-54.42	-0.49
S&P BSE SENSEX Next 50	31,537.55	-272.88	-0.86
S&P BSE 100	10,886.44	-59.30	-0.54
S&P BSE Bharat 22 Index	3,266.30	-14.97	-0.46

(Source: BSE)

1:50 PM

Lupin rises 2% on partnership with Mylan for Enbrel Biosimilar

Shares of Lupin were up 2% at Rs 910 per share on the BSE in noon deal after the company said it has partnered with Mylan to commercialize Enbrel (Etanercept) biosimilar.
 

Under the terms of the agreement, Lupin will receive an up-front payment of $15 million and potential commercial milestones together with an equal share in net profits of the product. READ MORE

1:40 PM

US-China trade war drives investors to pull $5 bn from equity funds: ICI

US-China trade tensions drove investors to pull $5.16 billion from equity exchange-traded funds and mutual funds in favour of bonds for the week ended June 20, the Investment Company Institute said on Wednesday.

 

Cash outflows from equities were led by domestic long-term mutual funds, which ceded $3.11 billion after $1.15 billion the prior week. Equity ETFs had negative net outflows of $3.59 billion, seven days after reporting $7.54 billion of inflows. READ MORE

1:23 PM

Reliance Securities on Aurobindo Pharma

Aurobindo Pharma's US biz likely to clock 11% CAGR over FY18-20E led by new launches and ramp-up in injectable portfolio. With double-digit margin in European business, we expect further improvement in margin led by transfer of products from Europe to Indian units for manufacturing (transferred 83 products out of planned 112).

 

Led by strong US product pipeline (117 ANDAs pending for approvals), comfortable leverage position, healthy return ratios (RoE/RoCE seen at 17%/19% by FY20E) and attractive valuation (>20% discount to its peers),  we maintain our fundamental BUY recommendation on the stock with target price of Rs 712

1:16 PM

India seeks bids from consultants for state insurance firms' merger

Three Indian state-owned non-life insurance companies, which the government plans to merge into a single company, sought interest on Thursday from consultants to advice them on the deal, according to a public notice. READ MORE

1:00 PM

BSE Smallcap index hits 9-month low; 111 stocks tank over 50% in CY18

Shares of smallcap companies continues to be under pressure with the S&P BSE Smallcap index hitting nine-month low, down for the fourth straight trading day on the BSE on Thursday. READ MORE

12:54 PM

Kotak Securities on Mahagar Gas (MGL)

We believe there exists a meaningful growth potential for MGL due to anticipated growth in the number of CNG operated vehicles considering cost effectiveness of CNG as a fuel, potential growth in the number of households in the areas of operation and gas supply to consumers in the Raigad district.

We expect an EPS of Rs.51.6 for FY19E and an EPS of Rs.53.5 for FY20E (earlier Rs. 53.2). Based on our estimates, at CMP is trading at 7.7x EV/EBIDTA and 15.5x P/E on FY20E earnings. We maintain BUY on MGL with an unchanged DCF based price target of Rs.948

12:32 PM

Sugar export norms relaxed: 1 milllion tonnes outflow likely by September

The Centre issued a notification on Tuesday relaxing sugar exports norms. Sugar exports was subject to a subsidy of Rs 55 per tonne of sugar cane payable to cane farmers. However, in the earlier notification, the ministry of consumer affairs had linked the compliance of all past conditions by mills to avail subsidy on exports. READ MORE

12:17 PM

Hiring to drive Info Edge stock performance; realty vertical to aid growth

The Info Edge stock has been under pressure due to stress on its classified jobs vertical, Naukri, which accounts for 70 per cent of the company’s revenue. The stock has lost 13 per cent since the beginning of the year.

Revenue from the recruitment segment in the March quarter was up only 3.6 per cent on a sequential basis (12 per cent over a year). The segment level margins fell 243-413 basis points (bps) to 51.8 per cent on a sequential and on year-on-year (y-o-y) basis. READ MORE

12:04 PM

BofA's market outlook

An improvement in the NIFTY’s breadth would require not just absolute earnings growth, but also earnings beats. These seem unlikely in the near term due to elevated expectations (MSCI India FY19 EPS currently forecast to grow 25% YoY). India is relatively devoid of domestic catalysts now, though uncertainties around elections in 2019 are likely to increase through the year. combination of external shocks (accelerating foreign selling), volatile domestic inflows and strong issuance can drive downside. December 2018 Sensex fair value of 32,000. Stay Cautious

Bank of America

12:00 PM

Market at Noon

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,135.76	-81.35	-0.23
S&P BSE SENSEX 50	11,146.05	-35.82	-0.32
S&P BSE SENSEX Next 50	31,680.88	-129.55	-0.41
S&P BSE 100	10,909.24	-36.50	-0.33
S&P BSE Bharat 22 Index	3,274.50	-6.77	-0.21

(Source: BSE)

11:52 AM

F&O WATCH Open interest gainers

COMPANY	LAST PRICE( )	OPEN INTEREST	PREVIOUS OPEN INTEREST	CHG(%)	CONTRACTS	PREVIOUS CONTRACTS
EQUITAS HOLDINGS	136.90	13545600	9180800	47.54	1720	2669
SHREE CEMENT	15948.75	52500	41450	26.66	409	789
NATL. ALUMINIUM	62.90	29464000	23672000	24.47	2920	4624
M & M	911.75	8053000	6538000	23.17	4425	7472
SHRIRAM TRANS.	1324.00	1152600	953400	20.89	1931	4894

Click here for more

11:50 AM

GLOBAL MARKETS

INDEX	DATE	LATEST	PREV CLOSE	CHG(PTS)	CHG(%)
MERVAL	28-06-2018	25921.08	28473.48	-2552.40	-8.96
HANG SENG	27-06-2018	28356.26	28881.40	-525.14	-1.82
NASDAQ	28-06-2018	7445.09	7561.63	-116.54	-1.54
NASDAQ 100	28-06-2018	6969.68	7068.20	-98.52	-1.39
BOVESPA	28-06-2018	70609.00	71404.59	-795.59	-1.11
SHANGHAI COMPOSITE	27-06-2018	2813.18	2844.51	-31.33	-1.10
S&P 500	28-06-2018	2699.63	2723.06	-23.43	-0.86

11:47 AM

Prabhudas Lilladher on Cyient

We estimate a gradual margin expansion over FY18-FY20E led by improvement in profitability of DLM business. We expect 15.5% earnings CAGR over FY18-FY20E. Stock trades at 15.5x FY20E EPS (L&T Technology Services trades at 22x FY20E EPS). Peer L&T Technologies trades at substantial premium to Cyient owing to larger vertical footprint and diversified portfolio in Engineering Design Services. We value Cyient at 18x FY20E EPS which yields a target price of Rs 880/share.  Resume coverage with "BUY"

11:46 AM

Prabhudas Lilladher on oil & gas sector

Indian oil PSUs have underperformed broader index for the last one year though the core operating performance has been strong. We view this underperformance from the general investor perception as whenever there has been an increase in global crude prices in the past, the Indian governments then have absorbed the increased cost as subsidies as well as under recoveries impacting the profit potential of both upstream and downstream companies.

We beleive recent correction offers attractive entry points. IOCL, BPCL remain our preferred picks. ONGC will also benefit from the volume growth due to new gas production coming on stream. 

11:44 AM

ICICI Bank extends fall; stock down 11% in four days

Shares of ICICI Bank have dipped nearly 4% to Rs 268 in intra-day trade, extending its 7% decline in past three trading sessions on the BSE. The private sector lender’s market capitalisation has eroded by Rs 209-billion in four trading sessions, after the bank said another whistle-blower had accused it of having lax controls over operation READ MORE