MARKETS ON TUESDAY: Indices end higher, Nifty holds 10,400; Axis Bank up 6%

All that happened in the markets on Tuesday

4:25 PM

MARKET COMMENT

The Nifty50 index is getting a bit tired after seeing a decent relief rally in last 4 – 5 days and importantly as it approaches the major resistance zone of 10,400 – 10,500 levels.  For the coming session, 10,430 – 10,478 would be seen as immediate hurdles; whereas on the downside, 10381 – 10350 is likely to act as a key support zone.

 

Today’s small range in the index does not depict the right picture. There was a perfect balancing act seen from the few index heavyweights. Couple of major Private banking names, ICICI and Axis Bank had a stellar move and on the other hand, HDFC twins restricted the Nifty from extending its move. Going forward, do watch out for these counters along with Larsen and Toubro

(Source: Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking)

3:39 PM

Nifty Realty index ends over 1% up. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
OBEROI REALTY	531.00	502.60	28.40	5.65
DLF	213.10	206.05	7.05	3.42
H D I L	42.80	41.80	1.00	2.39
UNITECH	6.75	6.65	0.10	1.50

3:37 PM

Nifty Metal index ends over 2% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
HINDALCO INDS.	230.60	221.35	9.25	4.18
NMDC	123.60	119.15	4.45	3.73
NATL. ALUMINIUM	72.55	70.35	2.20	3.13
TATA STEEL	602.90	586.15	16.75	2.86
WELSPUN CORP	146.05	142.10	3.95	2.78

3:35 PM

Sectoral Trend

3:33 PM

BSE Sensex: gainers and losers of the day

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 33,880, up 92 points while the broader Nifty50 index settled at 10,402, up 23 points.

3:28 PM

Nifty PSU Bank index up for fourth straight day

Shares of public sector banks continued trade higher with the Nifty PSU Bank index gaining for the fourth trading sessions after the Reserve Bank of India (RBI) announced its first bi-monthly monetary policy for the financial year 2018-19 (FY19) on April 4, 2018. READ MORE

3:20 PM

Emkay Global on NBFCs

We believe NBFC-AFCs are well poised to benefit from a cyclical upturn and early signs of recovery during H2FY18. Within the space, we like Shriram Transport as a preferred play, considering favorable risk-reward and improving demand. We continue to like Bajaj Finance’s differentiated business model and we believe the recent foray into Housing Finance further strengthens its current dominance as a retail lender. Magma Fincorp, L&T Finance Holding (LTFH)  and Mahindra Finance (MMFS) are also poised to benefit from the upturn in demand and declining credit costs

3:19 PM

Sharekhan on JSW Steel

We retain positive stance and estimates FY2019/ FY2020. JSW Steel is the fastest growing and most efficient steel producer in India, both in terms of conversion cost per tonne as well as capital cost per tonne and should be the biggest beneficiary of anticipated fall in global iron ore and coking coal prices being the least integrated amongst large steel manufacturers.

With limited capacity addition, that too by large steel manufacturers, domestic demand supply scenario should consolidate and turn favourable for existing players. We thus estimate consolidated EBITDA to compound at 13% annually during FY’17-’20 and continue with a positive outlook expecting 15-18% returns.

3:17 PM

COMMENT Q4 revenue growth seen at 9%, margin pain to ease: CRISIL Research

Growth in corporate revenue – excluding that of banking, financial services & insurance and oil companies – is likely to print at ~9% on-year for the fourth quarter of fiscal 2018, CRISIL Research’s analysis of over 400 companies, which account for 65% of the market capitalisation of the National Stock Exchange shows.

 

That’s slower than the 12-quarter high of 10.9% seen in the third quarter, which had benefited from low-base effect following demonetisation in the corresponding year-ago period. The slowdown is largely on account of higher base for consumption-linked sectors, which had partially recovered from demonetisation in fourth quarter of last year.

3:15 PM

IMPACT NOTE Kotak’s best chance to merge Axis Bank, says Nomura

Axis Bank CEO’s request to revise down her term to Dec-18 (earlier Jun-21) has been accepted by the board. Our assessment suggests that Axis Bank will have to look for an external CEO. We believe this presents a great opportunity for Kotak Bank (KMB IN, Buy) to acquire one of the largest liability/retail asset franchises. 

At current prices, the deal would be +40% accretive to EPS/BPS of Kotak Bank This should make it possible for Kotak Bank to offer some premium to Axis Bank shareholders to make the deal attractive to Axis Bank minority shareholders. The deal would be +25% accretive for Kotak Bank even after paying a 10-30% premium for Axis Bank

(Disclaimer: Kotak Mahindra and associates are significant shareholders in Business Standard Pvt Ltd)

3:11 PM

MARKET COMMENT Gautam Duggad, Head of Research, Motilal Oswal Securities

As we step into FY19, the clamor for an earnings recovery has become louder. This is particularly because the last three years were characterized by a muted earnings performance due to macro disruptions and several policy changes pertaining to asset quality in the banking sector. Although we expect Nifty earnings to grow by a decent 11% in FY18, it is much below our FY18-beginning estimate of +17% – this can be mainly attributed to the drag from corporate banks (ICICI Bank, Axis Bank and SBI, which together accounted for 62% of the cut in Nifty PAT estimate in a span of a year).

3:10 PM

BSE500 Gainers

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
SUDARSHAN CHEM.	505.00	466.05	38.95	8.36
NILKAMAL LTD	1740.65	1630.75	109.90	6.74
BALRAMPUR CHINI	81.00	75.90	5.10	6.72
PRAJ INDS.	97.60	91.75	5.85	6.38
BAJAJ HINDUSTHAN	10.07	9.47	0.60	6.34

2:56 PM

Stocks at 52-week high

COMPANY	LATEST	52 WK HIGH	PREV HIGH	PREV DATE	VOLUME
AVENUE SUPER.	1484.00	1494.80	1442.40	09-APR-2018	146392
BALKRISHNA INDS	1283.80	1296.45	1290.00	09-APR-2018	32871
CHOLAMAN.INV.&FN	1564.85	1573.95	1548.00	04-APR-2018	12620
DIVI'S LAB.	1149.35	1166.70	1141.75	27-DEC-2017	47686
INDUSIND BANK	1852.05	1869.60	1867.85	09-APR-2018	17302

2:47 PM

After IndiGo, Jet Airways not to participate in bid for stake in Air India

 

Jet Airways has decided not to participate in the bid for a stake in Air India, further denting the divestment process. The move comes four days after IndiGo’s decision to back out of bidding.

 

While Jet Airways had never formally announced its interest in Air India, the management had held discussions with its alliance partners Air France-KLM, Delta, and other investors to put up a proposal. But the airline has now decided to call off its efforts. READ MORE

2:30 PM

Buzzing Stock

 

Share price of Dilip Buildcon gained 1.7% intraday on execution of concession agreement with NHAI.

 

The company's wholly owned subsidiary DBL Chandikhole Bhadrak Highways has executed the concession agreement with the National Highways Authority of India (NHAI), Ministry of Road Transport and Highways.

2:16 PM

Want to invest in MFs? Compare costs of online direct investment portals

After receiving approval from the Securities and Exchange Board of India (SEBI) to become a registered investment advisor, Paytm will soon launch a new wealth management app, Paytm Money, which will allow investors to invest in mutual fund products of all categories. The app will offer mutual funds from the top 12 largest asset management companies (AMCs). READ MORE

2:01 PM

Market Check

 

S&P BSE Sensex	33,883.32		0.28%
Nifty 50	10,406.35		0.26%
S&P BSE 200	4,577.87		0.20%
Nifty 500	9,220.70		0.17%
S&P BSE Mid-Cap	16,646.27		0.14%
S&P BSE Small-Cap	17,953.75		0.01%

1:46 PM

Domino's delivers: Jubilant becomes best-performing mid-cap stock of 2018

Mid-cap stocks in India may not be having their best year, but there is one bright spot among these companies. After a stellar 106 per cent rally last year, the Indian operator of Domino’s Pizza - Jubilant Foodworks Ltd. - is the best-performing mid-cap stock so far in 2018. READ MORE

1:31 PM

Aramco IPO to be launched: Will this tiny Saudi exchange be able to manage?

Saudi Arabia’s meager stock exchange hosts around 191 companies whose value totals roughly $500 billion, or a little more than half the value of Apple Inc. With one more very important listing, it could balloon in size—or be overwhelmed. So far, Saudi Arabia’s Tadawul is the only confirmed listing exchange for Saudi Arabian Oil Co., the giant company better known as Aramco, which the kingdom estimates could be worth $2 trillion. While the world’s leading stock exchanges and governments have been busy lobbying Saudi Crown Prince Mohammed bin Salman to be able to list Aramco, the Tadawul has been scrambling to ready itself. READ MORE

1:17 PM

Avenue Supermarts hits new high; market-cap crosses Rs 900-billion

Avenue Supermarts, which owns and operates D-Mart stores, crossed Rs 900 billion in market capitalisation (market-cap) for the first time on Tuesday after the stock price of the company hit new high on the BSE.
 

Avenue Supermarts with the m-cap of Rs 921.77 billion stands in at number 33rd position in overall m-cap ranking READ MORE

1:01 PM

ICICI Bank hits two-week high; stock up 11% in 6 days

ICICI Bank was up 3.7% to Rs 291 on the BSE in early morning trade on Tuesday, gaining 11% in past six trading sessions. On comparison, the S&P BSE Sensex was up 2% during the same period. The stock was trading at its highest level since March 21, 2018. READ MORE

12:47 PM

STOCK IDEA Shriram Transport Finance

 

After seven years of unchanged profits (INR12b-13b), we expect Shriram Transport Finance to report Rs 18 billion in PAT in FY18, and subsequently, Rs 25 billion / Rs 31 billion in FY19/FY20. RoA (on AUM)/RoE should improve from the lows of 1.7%/11.7% in FY17 to 2.7%/19% in FY20. At 2.0x FY20E BV, we believe the stock is attractively priced.

 

(Source: MOSL)

12:29 PM

Axis Bank rallies 230% under Shikha Sharma; markets see exit as positive

Axis Bank rallied 2.4 per cent at Rs 531 on Tuesday in intra-day deals, extending its Monday’s 3.4 per cent gain on the Bombay Stock Exchange (BSE), after Shikha Sharma, the bank’s managing director and chief executive officer (MD & CEO), decided to step down with effect from December 2018. Sharma took charge as the MD & CEO of the Bank on June 01, 2009, after her stints with ICICI Bank and ICICI Prudential Life Insurance. READ MORE

Shikha Sharma

12:15 PM

Traders have doubts about India's bond rally as banks remain net sellers

India’s bonds have roared back from a seven-month selloff. But traders looking for signs of the rally sustaining may have to wait longer. State-run lenders, the biggest holders of sovereign debt, remained net sellers in five of the past seven days despite the rebound, taking the average daily withdrawals so far this year to Rs 7.1 billion ($111 million), data from the Clearing Corp. of India show. READ MORE

12:08 PM

STOCK UPDATE Kansai Nerolac Paints Ltd – BUY – Target Price: Rs.600

 

We recently interacted with the management of Kansai Nerolac Paints (KNPL) to understand the developments in the company and in the sector. KNPL has been experiencing double digit volume YoY growth across segments since the last 12 quarters surpassing the performance of Asian Paints and Berger. The strong out-performance is on the back of: 1) Strong volume growth witnessed by the paint sector; 2) New and innovative product launches by the company; 3) Strong distribution network of the company (20000+ dealers and 102 depots);4) Heavy promotion through multiple media platforms and 5) Sales aggression exhibited by the company.

Management (and we agree) expect the growth momentum to continue in medium term as well with increasing disposable income, healthy GDP growth, strong automotive demand and private/public sector capex in the country. Recommend BUY with an unchanged TP of Rs 600 at 44x FY20E earnings

(Source: Kotak Securities)

12:06 PM

Kotak Securities on MOIL

We have tweaked estimates, factoring buy back of 8.8 mn shares (3.3% of outstanding equity) and increased capex. Our revised earnings stands at Rs16.3 (earlier Rs15.6), Rs16.9 (earlier Rs16.7) and Rs19.6 (earlier Rs19.3) for FY18E, FY19E and FY20E, respectively. Given its strong business model, robust balance sheet with strong liquidity positions and its dominant position in the domestic market and further improvement likely in the manganese ore realisation, supports our positive stance on the stock. The stock is trading at attractive valuation of 4.6x FY20E EV/EBITDA. We reiterate our BUY rating, with a target price of Rs260.

12:00 PM

Markets at Noon

 

S&P BSE Sensex	33,861.14		0.21%
Nifty 50	10,395.95		0.16%
S&P BSE 200	4,572.28		0.07%
Nifty 500	9,209.70		0.05%
S&P BSE Mid-Cap	16,597.76		-0.15%
S&P BSE Small-Cap	17,921.07		-0.17%

11:46 AM

Sugar Stocks gain

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
DWARIKESH SUGAR	28.60	25.70	2.90	11.28
RAJSHREE SUGARS	35.75	32.20	3.55	11.02
SAKTHI SUGARS	19.10	17.45	1.65	9.46
AVADH SUGAR	480.90	441.40	39.50	8.95
RANA SUGARS	5.58	5.13	0.45	8.77

11:30 AM

Shares worth over Rs 13 bn lie unclaimed in top 100 firms

 

More than 100,000 shareholders have unclaimed shares worth billions of rupees in some of India’s largest companies.

 

A Business Standard analysis of the shareholding records of the S&P BSE 100 firms shows that shares worth at least Rs 13.02 billion are lying unclaimed with companies. READ MORE