MARKETS ON TUESDAY: Sensex, Nifty gain in last leg of trade; PSU banks rise

All that happened in the markets

3:46 PM

Market round-up from Geojit Financial Services

 

Market traded range bound throughout the day due to volatility in the global market. But towards the close, pace picked up supported by moderation in yield and growth in core sector. Yield declined amid central bank allowing the banks to spread their bond trading losses which gave a positive sentiment to banking stocks. On the other hand, investors are gradually shifting focus to upcoming Q4 results and RBI policy outcome which will dictate the market outlook in the near term.

3:41 PM

Nifty PSU Bank index settles 1.65% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
BANK OF INDIA	108.15	104.65	3.50	3.34	10186387
SYNDICATE BANK	58.25	56.50	1.75	3.10	6535909
BANK OF BARODA	145.50	141.90	3.60	2.54	15023339
INDIAN BANK	309.20	302.10	7.10	2.35	1315036
ST BK OF INDIA	251.35	246.15	5.20	2.11	19247891

3:36 PM

Sectoral performers

3:34 PM

BSE Sensex: Top gainers and losers of the day

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 33,371, up 115 points while the broader Nifty50 index settled at 10,245, up 33 points.

3:25 PM

Motilal Oswal Research on Tata Chemicals

As Tata Chemicals scales up its growth businesses and deleverages its balance sheet, we expect its consolidated RoCE to improve considerably, in turn driving a stock re-rating. We believe it would be fair to assign ~30% premium to its five-year average EV/EBITDA of 7.5x. Our SOTP-based target price of Rs 940 (implied

EV/EBITDA of 9.7x FY20E) implies 36% upside. We initiate coverage with Buy.

3:23 PM

NEWS ALERT ICICI Securities to list tomorrow

3:21 PM

Buzzing Stock

 

Centrum Capital rose 9.76% to Rs 67.50 on BSE after the company said it signed agreement to sell its money exchange business to EBIX Inc for approximately Rs 1200 crore.

3:10 PM

Volume Toppers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
JP ASSOCIATES	19.75	0.15	0.77	5150817
IDBI BANK	72.20	1.10	1.55	4952496
REL. COMM.	22.55	0.00	0.00	4854496
SUZLON ENERGY	11.71	0.57	5.12	4551615
HIND.CONSTRUCT.	25.60	2.45	10.58	3677485

3:09 PM

Sector watch: Auto

March 2018 was a strong month for the domestic automotive industry with robust volume growth across segments. MHCV industry volumes increased by 16-18% yoy on a relatively high base last year. Demand in rural India climbs up, which is reflected in strong demand for two-wheelers and tractors. Industry volumes in these segments increased by 18-40% yoy; all major OEMs (except Bajaj Auto) reported strong double-digit yoy volume growth.

3:07 PM

Media Q4FY18 result preview - Ad recovers; margins soft due to investments

In Q4FY18, we estimate revenue and EBITDA of our media universe (excluding Hathway and Dish TV) to jump 10.4% (7.4% in Q3FY18) and 7.8% YoY (6.6% in Q3FY18), respectively. This is expected to be led by broad-based ad spends across categories and low base. We peg the overall ad industry to report low double-digit growth.

Generally, subscription deals are renegotiated during Q2 and Q3. We expect subscription revenues of TV broadcasters to clock mid teens growth YoY in Q4FY18 due to bunching up of deals pending clarity on the TV tariff order. Though Q4 is seasonally weak, we estimate Q4FY18 to be a very strong quarter for multiplexes aided by strong movies like Padmavat, Sonu ki Titu ki Sweety, Raid and screen expansion. Top picks: ZEE, Sun TV and PVR

(Source: Edelweiss Securities)

2:59 PM

IndiGo, IndusInd Bank, Bharat Financial, Apollo Tyres hit 52-week highs

 

Shares of InterGlobe Aviation, which operates no-frills carrier IndiGo, private sector lender IndusInd Bank, tyre Company Apollo Tyres and microfinance institution Bharat Financial Inclusion were among 11 stocks from the S&P BSE500 index hitting their respective 52-week highs in otherwise subdued market.

 

Britannia Industries, Dilip Buildcon, Firstsource Solutions, Lakshmi Machine Works, MRF, Nestle India and TV18 Broadcasting too hit 52-week highs in intra-day trade on the BSE on Tuesday.

2:44 PM

Stocks at 52-week low

COMPANY	PRICE( )	52 WK LOW	CHG( )	CHG(%)
BOMBAY RAYON	39.65	38.95	-1.30	-3.17
CARE RATINGS	1189.50	1189.50	-9.55	-0.80
GE SHIPPING CO	326.60	326.00	-2.10	-0.64
JBF INDS.	81.20	75.00	3.85	4.98
KWALITY	53.75	53.10	0.60	1.13

2:30 PM

Europe Check

 

European stocks tumbled on Tuesday as investors entered the second quarter in a febrile atmosphere of trade tensions and mounting pressure on big technology companies.

 

The pan-European STOXX 600 fell 0.7 per cent, while Germany's DAX declined 0.8 per cent, with industrials, consumer staples and financials the biggest weights.

2:15 PM

Stock in News

Galaxy Surfactants fell 2.20% to Rs 1,465.05 on BSE after the company said it received a total of 13 observations for two of its facilities in Maharashtra after USFDA audit. 

 

On the BSE, 3,085 shares were traded in the counter so far compared with average daily volumes of 3,315 shares in the past two weeks. The stock had hit a high of Rs 1,480 so far during the day. The stock had hit a low of Rs 1,430 so far during the day.

1:58 PM

Market Check

S&P BSE Sensex	33,187.87		-0.20%
Nifty 50	10,186.60		-0.25%
S&P BSE 200	4,478.05		-0.08%
Nifty 500	9,016.30		-0.08%
S&P BSE Mid-Cap	16,218.00		0.20%
S&P BSE Small-Cap	17,446.79		0.30%

1:46 PM

Point-by-point analysis of Sebi's new corporate governance framework

 

Capital market regulator Securities and Exchange Board of India (Sebi) has approved sweeping changes to the corporate governance framework for listed companies. The new measures are based on recommendations made by a 25-member committee headed by Uday Kotak, executive vice chairman and managing director of Kotak Mahindra Bank. The panel had suggested 81 key changes and new measures to improve the governance standards at India Inc.

 

Some of the proposals faced oppositions from industry and other regulators after the committee made its report public in October 2017. Sebi had to take all stakeholders on board to ensure implementation of the measures suggested the Kotak panel. As a result, the market regulator couldn't implement all the 80 recommendations in toto. READ MORE

1:30 PM

Lupin extends gain as UK MHRA completes inspection at Goa unit

 

Lupin was up 3% to Rs 798, extending its Monday’s 5% surge on the BSE, after the company announced the successful completion of the inspection by the UK MHRA at its Goa facility in March, 2018.

 

There were no critical or major observations in the inspection, Lupin said in a press release.

 

"We are committed to maintaining truly global quality standards at our manufacturing units. The successful inspection by UK MHRA is a meaningful development for our Goa plant,” said Nilesh Gupta, Managing Director, Lupin.READ MORE

1:15 PM

First quarter equity fund-raising off to best start in eight years

 

Equity issuances by domestic companies totalled $8.7 billion in the first quarter of 2018, a 2.2 times jump over the corresponding period of last year, data provided by Thomson Reuters showed.

 

The first quarter equity fund-raising was also the most since 2010, when $8.9 billion was raised. Initial public offerings (IPO) raised a total of $2.8 billion, a 4.5 times jump over the same period last year.

 

This was the best first quarter for IPOs since 2008, when $3.7 billion worth of IPOs had hit the market. READ MORE

12:58 PM

Asia Check

 

Asian shares slipped on Tuesday amid escalating trade tensions and concerns about tech firms, although regional index declines were modest compared with those of their Wall Street counterparts as investors focused on global growth prospects.

 

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.35 per cent on Tuesday, compared with losses of more than 2 per cent on each of the three Wall Street indices overnight.

12:44 PM

Tyre stocks in focus; MRF hits record high, up over 3%

 

Shares of tyre manufacturer were in focus in otherwise subdued market with MRF hitting new high of Rs 75,474, up 3.3% on the BSE on Tuesday. The tyre major has surpassed its previous high of Rs 74,499 recorded in December 26, 2017.

 

Among other tyre stocks, Ceat and Apollo Tyres were up 3%, TVS Srichakra, JK Tyre & Industries, Goodyear India, Govind Rubber and Balkrishna Industries up in the range of 1% to 2% on the BSE. READ MORE

12:33 PM

IT firms' revenue to get cross-currency boost, FY19 outlook key

 

We expect IT firms under our coverage universe to post a combined 3.1% QoQ rise in USD revenue in 4QFY18. We expect the Top-5 IT firms to post 1.9-3.5% QoQ USD revenue growth in reported terms, with Tech Mahindra to lead. Mid-sized firms will see variation, with Cyient and Mindtree likely lead (8.2%/4.1% QoQ USD revenue growth, respectively). 

 

Cross-currency movements were positive in 4QFY18, with the USD depreciating against all major currencies including the EUR (4.1% QoQ depreciation on the quarterly average rate), GBP (4.5% QoQ) and the AUD (2.4% QoQ). The INR saw slight appreciation of 0.6% QoQ vs the USD. READ MORE

12:14 PM

ICICI Bank: Analysts remain bullish despite near-term challenges

 

The recent turn of events at ICICI Bank has dented sentiment with most analysts turning cautious on the stock from a near-term perspective. Also, with investigative agencies entering the picture, they believe, the loan disbursement process at the bank can also come under scrutiny. All this, they feel, will remain a near-term overhang for the stock.

 

The scrip tumbled nearly six per cent on Monday to Rs 262 levels, its biggest single-day drop in three years amid Central Bureau of Investigation (CBI) initiating a preliminary enquiry into alleged links between the bank’s Chief Executive Officer (CEO) Chanda Kochhar and the Videocon group. READ MORE

12:00 PM

Market Check

S&P BSE Sensex	33,187.87		-0.20%
Nifty 50	10,186.60		-0.25%
S&P BSE 200	4,478.05		-0.08%
Nifty 500	9,016.30		-0.08%
S&P BSE Mid-Cap	16,218.00		0.20%
S&P BSE Small-Cap	17,446.79		0.30%

11:49 AM

Kotak Securities on Infotmation Technology (IT) sector

The March 2018 quarter will be better than the March 2017 quarter. Depreciation of USD against other currencies will provide cross-currency tailwind of 60-130 bps and 20-50 bps for margins. We expect companies to start off on a conservative note for FY2019E revenue growth guidance. Expect 6-8% c/c revenue growth guidance from Infosys and 8-10% from HCLT with no change in operating margin guidance band. We maintain our constructive view on Infosys and Tech Mahindra

11:49 AM

MARKET COMMENT Kunal Shah, CFA, Fund Manager - Debt, Kotak Mahindra Life Insurance

The MPC policy statement should continue to be on a neutral side as inflation has surprised on the lower side with average Q4 CPI Inflation seen at 4.5% compared to RBIs projection of 5.1%. On the other hand growth prospects are improving and monetary supports for growth are not vehemently called for. We think MPC will only be able to adopt hawkish stance if inflation surprises towards 5.5% by year end and likelihood of which are minimal today. 

 

RBI will also announce the roadmap for FPI limit hikes and its specifications. Currently, markets are expecting FPI limit hikes of 1-2% with government calling for 2% hike and RBI favouring 1% (% of outstanding government bonds)

11:48 AM

Emkay Global on fertiliser sector

Government has increased subsidy on Phosphorous (P) and Sulphur (S) by 27% and 20%, respectively on the back of rising prices of Phosphoric Acid and Sulphur. However, subsidy on Potash (K) has been cut by 10%. Subsidy on Nitrogen (N) has been kept unchanged. We remain positive on companies that are backward integrated in phosphoric acid and have higher revenue share from NPK fertilisers, as they enjoy brand equity and less competition compared to DAP/MOP. Our preferred picks are Coromandel International and Deepak Fertilisers.​

11:45 AM

Prabhudas Lilladher on banks

Spreading of provisioning for MTM losses over four quarters is a positive step as Q4FY18 will see reversal of provisions and postpone half in H1FY19. We believe, reactions on stocks will be mildly positive especially for PSBs but NPA provisions and asset quality to weigh higher compared to MTM provisions, which has seen its reaction in fundamentals in Q3FY18 itself and further visibility on asset quality in Q4FY18 & FY19 will be crucial

11:45 AM

More pain ahead for drug makers in FY19 after a challenging FY18

 

If FY18 was a forgettable year for the pharma sector, FY19 might not be any better. This is on account of improved pace of approvals from April 1, 2018 as well as competition even for drugs, which are difficult to make. New guidelines from the US Food and Drug Administration had led to the slowing down in drug approvals over the last couple of months as companies took time to adjust. 

 

However, as companies comply with the new guidelines, the approval time for drugs from April is expected to come down further increasing competitive pressures. Anubhav Aggarwal and Chunky Shah of Credit Suisse believe that as first cycle approvals (after the first inspection) increase further, the period of high profits on few drugs should shorten and impact industry profitability significantly. They expect a 50 per cent increase in ANDA approvals over the next two years and price erosion to be high in double digits. READ MORE

11:30 AM

HDFC Life joins Rs 1-trillion market cap league

 

HDFC Standard Life Insurance Company (HDFC Life) entered the elite club of Rs 1-trillion market capitalization (market-cap) on the BSE, as its share price hit a new high of Rs 508 on the BSE in early morning trade on Tuesday.

 

The stock of HDFC Group Company rallied 20% in last seven trading sessions as compared to a marginal 0.46% rise in the S&P BSE Sensex. HDFC Life trading at its highest level since listing on November 17, 2017, up 75% against issue price of Rs 290 per share. It surpassed its previous high of Rs 493.75 recorded on January 1, 2018 in intra-day deal. READ MORE