Sensex, Nifty end lower after choppy trade; PSU banks continue to slide

Catch all the market action here.

4:05 PM

Market rundown by Vinod Nair, Head of Research, Geojit Financial Services

 

Market continued to consolidate in a narrow range following mixed trend in global market. World Bank prediction of 7.3% growth in FY19 will give a positive long term sentiment but global trade concerns and skepticism on upcoming state election will refrain market for a decisive up move. Mid & small cap outperformed as investors started accumulating stock in the oversold levels.

4:05 PM

Top PSU Bank losers

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
BANK OF BARODA	143.75	145.75	-2.00	-1.37	13300362
ST BK OF INDIA	253.70	257.05	-3.35	-1.30	18337435
PUNJAB NATL.BANK	98.55	99.30	-0.75	-0.76	42910773
UNION BANK (I)	101.25	102.00	-0.75	-0.74	8989464
ORIENTAL BANK	100.85	101.15	-0.30	-0.30	6731559

 

3:47 PM

BSE Smallcap: MMTC top gainer, TPL Plastech top loser

3:44 PM

BSE Midcap: Central Bank of India top gainer of the day, Rajesh Exports top loser

3:37 PM

Sectoral Trend

3:34 PM

BSE Sensex gainers and losers for the day

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 33,686, down 150 points while the broader Nifty50 index settled at 10,360, down 51 points.

3:17 PM

Buzzing Stock

Birla Corporation rose 6.03% to Rs 796 on BSE on bargain hunting after a recent slide. On the BSE, 15,000 shares were traded in the counter so far compared with average daily volumes of 9,069 shares in the past two weeks. The stock had hit a high of Rs 824 and a low of Rs 752 so far during the day.

3:01 PM

HG Infra rises 8% after emerging as lowest bidder for EPC project

Shares of HG Infra Engineering have moved higher by 8% to Rs 294 per share on the BSE in noon deal in otherwise subdued market after the company said it has been declared, lowest bidder (L-1) for new EPC project under Ministry of Road Transportation & Highway (MORTH) for upgradation to two lane with paved shoulder configuration from Kundal to Jhadol in the state of Rajasthan. The completion period is 18 months. READ MORE

2:46 PM

IPO WATCH: HAL

 

Reco: Subscribe

 

Revenue CAGR of 5.5% over FY14-17 was led by robust growth of 13% CAGR in services business. During this period, share of service revenues jumped from 23% to 32%. With the upgrade of major fleets of the Indian Defence forces on the anvil, we believe this segment would continue to witness robust growth going forward. Growth would also be led by the execution of LCA (Tejas), Sukhoi, LCH, UAV and development of indigenous spares and engines. Orderbook of Rs.684bn provides strong revenue visibility for the company over the next five years.

 

We believe the stock is attractively priced given strong earnings potential and humungous domestic aero defence opportunities.

 

(Source: IIFL)

2:31 PM

Market check

S&P BSE Sensex	33,726.03		-0.32%
Nifty 50	10,368.90		-0.40%
S&P BSE 200	4,536.12		-0.19%
Nifty 500	9,136.35		-0.17%
S&P BSE Mid-Cap	16,396.33		0.50%
S&P BSE Small-Cap	17,738.05		0.71%

2:22 PM

MARKET STRATEGY Midcap, smallcap stocks rebound from CY18 lows. Analysts remain cautious

After tumbling 13 per cent and 14 per cent respectively when the frontline index, the S&P BSE Sensex, was at its peak level of 36,283 on January 29, 2018, the mid-and small-cap indices on the Bombay Stock Exchange (BSE) have staged a partial recovery.
 

Both indices moved up for the fourth straight session this week with a gain of 2.7% and 2.5% respectively, as compared to 1.4% rise in the S&P BSE Sensex. On a year-to-date basis, however, they still remain underperformers with a fall of eight per cent, as compared to less than one per cent fall in the S&P BSE Sensex. CLICK HERE TO READ MORE

Photo: Shutterstock.com

2:15 PM

IDBI Bank gains for a third straight session

 

IDBI Bank gained for a third straight session today. The stock is quoting at Rs 76.8, up 4.21% on the day as on 12:54 IST on the NSE. The benchmark Nifty is down around 0.2% on the day, quoting at 10390.45. The Sensex is at 33802.93, down 0.1%. IDBI Bank Ltd has gained around 24.27% in last one month.

 

Meanwhile, Nifty PSU Bank index of which IDBI Bank Ltd is a constituent, has gained around 7.48% in last one month and is currently quoting at 2961.75, down 0.37% on the day. The volume in the stock stood at 645.39 lakh shares today, compared to the daily average of 519.67 lakh shares in last one month.

2:14 PM

Kotak Securities on NBCC

In the last 4 years (FY15-18E), the company has grown its order book by ~4x to ~Rs 800 bn which gives strong revenue growth visibility for the next 5 years. On the other hand, the revenue has grown less than 1.5x in the same period. The company is focusing on execution and expects strong revenue growth in FY19E as most of the redevelopment projects would contribute meaningfully in the year.

It has strong pipeline of new projects from development of railways land, armed forces land, Dharavi, etc which would support its future order book. We believe that the company’s top management getting clean chit would be sentimentally positive and ends the overhang of corruption changes on stock performance. The stock is presently trading at PE of 34.7x and 23.3x based on FY19E & FY20E EPS of Rs 5.6 and Rs 8.4 respectively. We upgrade our rating on the stock to BUY (from Accumulate earlier).

2:01 PM

Shakti Pumps up 6% on stake hike by promoter

Shakti Pumps has moved higher by 6% to Rs 552 on the BSE in noon deal after the company announced that one its promoter bought more than 10,000 equity shares of the company through open market today. READ MORE

1:46 PM

HAL IPO Analysis: Clear skies ahead for this public-sector defence major

India’s largest defence public-sector company Hindustan Aeronautics (HAL) has many things going for it. The maker of the indigenous light combat aircraft or the Tejas will be the biggest beneficiary of rising defence budgets and the ‘Make in India’ programme, as 60 per cent of India’s defence-related requirements are currently met through imports. READ MORE

1:30 PM

SECTOR WATCH Lack of rail rakes, higher diesel prices to weigh on cement margins

Despite the projection of an increase in cement prices over the next few months, the profitability of producers might stay under stress, with diesel prices projected to remain firm and lack of railway rakes to carry the finished product. Also, higher cost. READ MORE

1:16 PM

Govt to raise Rs 4.4 billion through Midhani's IPO by divesting 26% stake

State-owned Mishra Dhatu Nigam (Midhani) will be launching its Rs 4.4 billion initial public offering(IPO) next week. Through the IPO, government will be divesting 26 per cent stake in the company. The price band for the offering has been fixed in the range of Rs 87-90 apiece. At the upper price band, Midhani will be valued at Rs 16.86 billion. READ MORE

1:00 PM

Market Check

 

S&P BSE Sensex	33,784.17		-0.15%
Nifty 50	10,394.20		-0.16%
S&P BSE 200	4,543.10		-0.04%
Nifty 500	9,156.00		0.05%
S&P BSE Mid-Cap	16,418.22		0.63%
S&P BSE Small-Cap	17,754.59		0.80%

12:55 PM

IT, FMCG stocks could help overcome PNB-driven market volatility

In the past month, a post-Budget correction turned into a rout for the banking sector after the PNB (Punjab National Bank) scam emerged and other scams were unearthed in its wake. The PSU Bank index is down by about 11 per cent in the last one month, while the Private Bank index is down 1.3 per cent and the Nifty Bank (which combines private and PSU banks) is down 2.4 per cent. READ MORE

12:40 PM

Future Retail extends gain on pact with Oman-based Khimji Ramdas LLC

Future Retail has rallied 9% to Rs 560 in intra-day trade, extending its past two days 3% gain on the BSE, after the Future Group Company said that it will form a joint venture with Oman-based Khimji Ramdas LLC to take its 'fbb' brand fashion outlets to Oman and other Gulf Cooperation Council (GCC) countries. READ MORE

12:26 PM

As copra prices stablise, cost pressures likely to ease for Marico

Shares of Marico underperformed the S&P BSE FMCG index and the S&P BSE Sensex in the last six months as sentiment turned sour due to input cost pressure. The cost pressure marred the December 2017 quarter (Q3) performance of the country’s largest hair oil company. READ MORE

12:11 PM

Bandhan Bank's Rs 44-billion IPO opens today: Should you subscribe?

The Bandhan Bank initial public offering (IPO) opened for subscription on Thursday, at a price band of Rs 370-375 a share. The issue will close on March 19. The private sector lender is expected to raise Rs 44.13 billion at the lower and Rs 44.73 billion at the upper end of the price band. The bank has put on offer up to 119,280,494 equity shares, including a fresh issue of up to 97,663,910 equity shares. READ MORE

11:55 AM

Road infrastructure firms witness surge in order inflow in current quarter

Road infrastructure companies are headed for a brighter future, given the surge in order inflow. IRB Infrastructure bagged two Hybrid Annuity Model (HAM) projects in Tamil Nadu worth Rs 34.9 billion on Wednesday. Dilip Buildcon, Sadbhav Infrastructure Projects, KNR Constructions and Ashoka Buildcon have also seen good order inflow. READ MORE

11:45 AM

Indian Hotels gain after Tata Sons acquire stake from promoter entities

Indian Hotels Company was up 5% to Rs 137 on BSE in intra-day trade after Tata Sons acquired more than 6% stake in the company from three promoter entities as part of restructuring the investment portfolio. READ MORE

11:34 AM

Moody's raises crude oil price forecast to $45-65/barrel on global demand

Moody's Investors Service on Wednesday raised its medium-term price band for crude oil to $45-65 per barrel from $40-60 as continued OPEC-led production restraint and strong global demand growth have contributed to declining global inventories, offsetting rapid increases in US shale production. READ MORE
 

11:30 AM

Market Check

 

S&P BSE Sensex	33,764.70		-0.21%
Nifty 50	10,383.95		-0.26%
S&P BSE 200	4,541.05		-0.08%
Nifty 500	9,146.50		-0.06%
S&P BSE Mid-Cap	16,420.80		0.65%
S&P BSE Small-Cap	17,720.28		0.61%

11:24 AM

Motilal Oswal Research on Strides Shasun (STR)

We remain positive on STR, given its healthy ANDA pipeline, aggressive filings, sound compliance track record, vertical manufacturing integration, value accretion in Australia business, and outperformance in the branded generics business in emerging markets. We value STR based on sum-of-the-parts (SOTP), valuing the pharma business at 18x 12M forward earnings (industry average P/E multiple for midcap pharma) and Solara at an EV of 8x FY19E EBITDA to arrive at a price target of INR989. Re-iterate Buy

11:21 AM

IPO WATCH Hindustan Aeronautics Limited (HAL)

In the absence any direct peer in India and with its unique business model along with Navratna status, HAL is on firm footing to exploit the upcoming opportunities in defence space in India led by Make in India initiative and higher defence expenditures. At upper price band, stock is available at 15.8x FY17 EPS and 9.6x of FY17 EBITDA, which appears to be reasonable considering its strong order book, healthy financials and return ratios.

Further, considering the absence of any peer, we do not expect it to trade at a wider discount. Given its current order book, HAL can potentially grow in low teen range in next 2-3 years. Hence, we recommend SUBSCRIBING to the Issue.

(Source: Reliance Securities)

11:20 AM

Fertiliser shares in focus; National Fertilizers, RCF up 5%

 

Shares of fertilizers companies were trading higher by up to 10% on the BSE in early morning trade after the government approved a proposal to extend urea subsidy till 2020.

 

Rashtriya Chemicals & Fertilisers (RCF), Nagarjuna Fertilizers and Chemicals, National Fertilisers, Fertilizers & Chemicals Travancore (FACT) and Madras Fertilisers were up in the range of 5% to 8% on the BSE. READ MORE