MARKETS ON WEDNESDAY: Indices end flat, Nifty holds 10,400; OMCs fall

All that happened in the markets on Wednesday

3:56 PM

Nifty Metal rises 1.59%. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
VEDANTA	296.80	284.10	12.70	4.47
NATL. ALUMINIUM	75.00	72.35	2.65	3.66
JINDAL STAIN .HI	177.70	172.15	5.55	3.22
HIND.COPPER	74.30	72.80	1.50	2.06
HINDALCO INDS.	234.20	230.00	4.20	1.83

3:51 PM

BSE Oil and Gas index slips 2.23%. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
H P C L	337.15	364.75	-27.60	-7.57
B P C L	417.50	450.95	-33.45	-7.42
I O C L	167.80	179.30	-11.50	-6.41
GAIL (INDIA)	326.75	331.95	-5.20	-1.57
CASTROL INDIA	206.50	208.00	-1.50	-0.72

3:36 PM

BSE Sensex: Top gainers and losers

3:33 PM

Market at close

 

The S&P BSE Sensex ended at 33,940, up 60 points while the broader Nifty50 index settled at 10,417, up 15 points.

3:27 PM

Dolly Khanna buys stake in Associates Alcohols in Q4; stock surges 12%

Associated Alcohols & Breweries hit a new high of Rs 340, up 12% on the BSE, after the breweries & distilleries company said that Chennai-based value investor Dolly Khanna bought stake in the company during March quarter. Dolly Khanna’s has purchased 187,279 equity shares representing 1.04% stake in Associated Alcohols & Breweries in January-March 2018 quarter, according to latest shareholding pattern filed by the company with the stock exchanges. READ MORE

3:14 PM

IRB Infra hits over 7-year high; stock surges 10%

IRB Infrastructure Developers hit an over seven-year high of Rs 281, up 10% on the BSE, recorded its sharpest single day gain since September 28, 2017, on back of heavy volumes. The stock of roads & highways company is trading at its highest level since August 24, 2010, when it touched a record high of Rs 313 during intra-day trade. READ MORE

3:01 PM

Stocks at 52-week high

COMPANY	LATEST	52 WK HIGH	PREV HIGH	PREV DATE	VOLUME
AARTI INDS.	1214.00	1222.20	1212.00	14-MAR-2018	5623
ASTRAL POLY	951.10	967.20	949.00	01-MAR-2018	5303
AVENUE SUPER.	1478.00	1515.00	1494.80	10-APR-2018	124427
BALKRISHNA INDS	1287.15	1314.15	1296.45	10-APR-2018	40336
DILIP BUILDCON	1188.50	1217.00	1209.15	09-APR-2018	67785

2:45 PM

Rising oil prices, political developments to keep OMC stocks under check

 

Oil marketing companies (OMCs) -- Hindustan Petroleum Corporation (HPCL), Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL) – lost up to 8% in trade on Wednesday after reports suggested that the government has asked these OMCs to absorb Rs 1 per litre oil price hike.

 

OMC stocks, analysts say, could remain under pressure for the next few months giving the outlook for crude oil prices, and especially ahead of the assembly elections scheduled all through calendar year 2018 (CY18) and the general election scheduled for May 2019. Given this backdrop, the government may not be willing to hike retail fuel prices given that oil is a politically sensitive subject. READ MORE

2:33 PM

Singapore Exchange to list Indian equity derivative products in June 2018

 

The Singapore Exchange on Wednesday said it would list Indian equity derivative products in June, nearly two months after India’s three main bourses announced they would stop licensing their indexes to overseas exchanges.

 

The announcement comes after the Singapore bourse said it would launch successor products to its flagship Indian equity index derivatives before the bourse’s license agreement with the National Stock Exchange of India expires in August 2018. READ MORE

2:15 PM

Hindustan Unilever hits new high;enters top-5 club of most valued companies

Hindustan Unilever (HUL), the fast moving consumer goods company (FMCG), entered into the list of the top-5 most valuable companies by market capitalisation (m-cap) as the stock price of the company hit a new high on Wednesday.

With an m-cap of Rs 3.06 trillion, HUL now features at fifth position in the list by replacing India’s largest mortgage financier, Housing Development Finance Corporation (HDFC) in this prestigious club. HDFC reported m-cap of Rs 3.03 trillion at 01:20 pm. HUL is now 6% away to surpass FMCG gait ITC, which have m-cap of Rs 3.24 trillion, the BSE data shows. READ MORE

2:00 PM

Market Check

 

S&P BSE Sensex	33,944.40		0.19%
Nifty 50	10,411.45		0.09%
S&P BSE 200	4,579.36		0.06%
Nifty 500	9,226.80		0.08%
S&P BSE Mid-Cap	16,627.51		-0.15%
S&P BSE Small-Cap	17,978.75		0.17%

1:45 PM

Interview of the day This is another tough period, but markets will make newer highs: Damani

Despite the headwinds both on the domestic and global fronts, Ramesh S Damani, member, BSE and a prominent investor, says India will weather a global trade war better than a lot of other Asian countries. In an interview to Vishal Chhabria, he says earnings will pick up soon, and the fear that earnings will not come is misplaced. While markets could see some pain in the near-term, there is value emerging in certain sectors. Damani talks on the sectors he likes, and says he wouldn’t let political fear stop him from investing. READ MORE

1:32 PM

Dilip Buildcon, Balkrishna Industries, Shakti Pumps hit new highs

Shares of highway builder Dilip Buildcon, tyre company Balkrishna Industries and industrial machinery manufacturer Shakti Pumps (India) have hit their respective new highs, gaining more than 20% in last one month on the BSE in otherwise range-bound market. READ MORE

1:17 PM

India inflation likely slowed further in March, but above target: Reuters poll

Indian retail inflation was expected to have eased to a five-month low in March as increases in food prices slowed once again but remained above the central bank's medium-term target, a Reuters poll found. That, coupled with the latest data which showed Asia's third-largest economy beat China to regain top spot as the fastest growing major economy. That should give policymakers some relief as they seek to keep inflation under control without hurting growth. READ MORE

12:59 PM

Commercial vehicle and tractor demand key triggers for Bosch stock

The Bosch stock has gained about 15 per cent over the fortnight on strong outlook for commercial vehicle and tractor sales, higher demand on transition to BS VI norms and lower effect of the emerging electric vehicle (EV) threat. Prior to this, the stock has been underperforming the broader indices. The auto index fell over 31 per cent from a 52-week high to its lowest level a couple of weeks ago.

 

The downtrend was due to lacklustre revenue and earnings growth over the past few quarters led by stalling of certain trading activities as well as loss of business from Tata Motors during the transition from BS III to BS IV. READ MORE

12:45 PM

Can Fin stock: Benefits of RERA, subsidy scheme should help credit growth

 

The Homes (CFH) stock took a hit following Canara Bank’s decision to call off a divestment process of its entire stake in the housing finance arm. As a part of its plans to sell non-core assets to improve the balance sheet, Canara Bank had decided to sell its entire 30.4 per cent stake in CFH, which buoyed investor sentiment despite the latter’s tepid performance, in terms of credit growth, during the December 2017 quarter (Q3). READ MORE

12:38 PM

Oil slip for India? Eye on west coast refinery, Saudi aiming for $80 price

Oil’s rally to $70 a barrel is threatening to clip India’s economic wings at a time when Saudi Arabia is looking to join a $30 billion refinery project in the world’s fastest growing market. India wants to see prices at about $50 a barrel in order to manage its finances better, Oil Minister Dharmendra Pradhan said in an interview. CLICK HERE FOR MORE

Representative Image

12:16 PM

Q4 earnings preview: How key sectors of the economy may have performed

The results season for the fourth quarter and the full fiscal year is about to begin in the second week of April. While the actual numbers are awaited, it will be interesting to see how these numbers could pan out sector-wise. READ MORE

12:01 PM

Market Check

 

S&P BSE Sensex	33,854.65		-0.08%
Nifty 50	10,383.15		-0.18%
S&P BSE 200	4,568.94		-0.17%
Nifty 500	9,203.65		-0.17%
S&P BSE Mid-Cap	16,602.98		-0.30%
S&P BSE Small-Cap	17,943.12		-0.03%

11:46 AM

IT stocks outrun markets for three consecutive quarters; midcaps shine

The Nifty IT index has outperformed the benchmark Nifty50 for the three consecutive quarters, rallying 23 per cent since June 30, 2017 as against six per cent rise in the Nifty50 index. Even on a calendar year basis, IT stocks have done well at the bourses, with the gauge of IT stocks on the NSE rallying seven per cent in CY18, as compared to 1.4 per cent fall in the Nifty50 index. READ MORE

11:32 AM

Aban Offshore, Oil India up over 3%; HPCL, BPCL, IOC down over 5%

Shares of oil exploration, equipment and services companies were trading higher on the bourses by up to 7% on Wednesday in otherwise subdued market after on higher crude oil prices. Oil and Natural Gas Corporation (ONGC), Oil India, Aban Offshore, Jindal Drilling & Industries, Hindustan Oil Exploration and Deep Industries were up in the range of 3% to 7% on the BSE. READ MORE

11:17 AM

After mostly subdued FY18 output, FY19 could be better for Coal India

The 9.4 per cent production growth at Coal India for the month of March is encouraging, after the subdued output in much of 2017-18. It was helped by higher demand from thermal power plants, which had seen stocks fall to 10 days. Rising electricity demand with the early onset of summer and the coming peak season, coupled with subdued production of hydropower due to low reservoir levels, should ensure the demand for coal remains healthy. Similarly, the firm realisation will help offset cost pressure and sustain profitability. READ MORE

10:59 AM

Agri input firms expect double-digit growth in sales, net profit in FY19

Companies manufacturing farm input such as seeds, fertilisers and agrochemicals are likely to post double-digit growth in sales and net profit in 2018-19 on the back of an anticipated normal monsoon and possibility of increases in minimum support prices (MSPs) for kharif crops in 2018. Equity brokerage firm Elara Securities has forecast agri chemicals companies such as Dhanuka Agritech, Insecticides India, PI Industries, Rallis India and UPL may post 10-17 per cent and 14-18 per cent jump in their revenue and net profit, respectively, in 2018-19. READ MORE

10:41 AM

COMMENT: Earnings getting into better shape

Q4FY18 results are expected to be an extension of early signs of growth revival that was witnessed in the preceding quarter.  Auto, metals, media and NBFC space have gained further ground whereas banks continue to drag. With buoyancy in industry-wide auto volumes, we expect our auto-ancillary universe to report strong earnings growth. We expect yet another quarter of strong earnings performance from our metals & mining universe, led by strong uptick in realisations supported by steady volumes partially negated by higher RM costs.

Within the media space, broadcasters are set to report strong double digit ad growth; print companies, however will continue to disappoint. Our banking universe is set to report dismal quarter (both revenue and earnings); NBFC’s remain in a solid footing. Pharma sector is expected to report strong quarter following the recovery in domestic market and with no major threat of price control. Cement demand has remained buoyant across all regions; pricing, however was muted QoQ and hence fallen short of the rising cost inflation

(Source: Centrum Broking)

10:38 AM

Currency Strategy

(Source: Nirmal Bang)

10:35 AM

RESULTS PREVIEW Motilal Oswal Research on Consumer Sector

For our Consumer Universe, we expect aggregate revenue to grow 8.2% YoY and aggregate PAT to grow 11% YoY in 4QFY18. Flat sales expected from ITC, as a result of unusually high base quarter, net sales growth of 21% in cigarettes (due to extremely low excise duty in 4QFY17), are likely to drag down overall sector sales growth, which otherwise would have been in double digits.

With all three components of sales –volumes, realization and premiumization – now firing in tandem, overall sales growth, barring ITC, is on a recovery path. Aggregate EBITDA is likely to grow 10.9% YoY, with sales growth revival leading to better absorption of costs. EBITDA margin is likely to be 60bp higher YoY.

10:33 AM

Sector watch: Telecom (Image source: Nomura report)

10:27 AM

IDBI Capital on Uflex

We have valued the company on EV/EBITDA basis, as we believe that packaging business should get higher multiple than the commoditized film business. We have valued Packaging business including Aseptic at 6x EV/EBITDA on FY19E EBITDA. For Film business, we have assigned an EV/EBITDA multiple of 4.8x on FY19E earnings and arrived at a target of INR 504, which implies 45% upside from current levels. We recommend a “BUY” on the stock.

10:25 AM

Mahanagar Gas extends fall after huge block deal; stock dips 11% in 3 days

Mahanagar Gas dipped 4% to Rs 905 on the National Stock Exchange (NSE) in early morning trade, extending its 6.7% decline in past two trading days, after a more than 9% of total equity of auto and kitchen fuel distributor changed hands through block deals. READ MORE

 

10:15 AM

Volume Toppers

COMPANY NAME	LATEST	HIGH	LOW	CHG ( )	CHG(%)	VALUE (  CR)	VOLUME
IDBI BANK	72.20	74.20	71.35	-2.00	-2.70	9.57	1325101
JP ASSOCIATES	20.20	20.75	20.00	-0.20	-0.98	2.54	1259397
REL. COMM.	23.10	23.30	22.85	-0.15	-0.65	2.13	920210
H F C L	28.20	28.25	27.50	1.20	4.44	2.54	900163
UNITECH	6.52	6.84	6.46	-0.24	-3.55	0.53	805398