MARKET WRAP: Sensex ends 261 pts up, Nifty at 10,772; Banks, RIL rally

Nifty Bank index ended over 1% higher led by a rise in the shares of IDFC Bank and IndusInd Bank. Reliance Industries rose 2.3% on the National Stock Exchange.

3:44 PM

RIL rose 2.32% on the NSE. Stock quote:

3:40 PM

Nifty Bank index ended 1.11% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
INDUSIND BANK	1974.00	1931.50	42.50	2.20
IDFC BANK	42.05	41.15	0.90	2.19
KOTAK MAH. BANK	1326.00	1303.25	22.75	1.75
HDFC BANK	2056.00	2023.50	32.50	1.61
YES BANK	335.50	330.90	4.60	1.39

3:37 PM

Nifty sectoral gainers and losers of the day

3:34 PM

BSE Sensex: RIL, IndusInd Bank among top gainers of the day, Coal India top loser

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 35,547, up 261 points while the broader Nifty50 index settled at 10,772, up 62 points.

3:17 PM

Wheels India rallies 30% in two days as company mulls bonus issue plan

Shares of Wheels India hit a new high of Rs 2,690 per share, rising 11% from its previous close. The stock has surged 30% in past two trading sessions after the company announced that its board will consider a bonus issue proposal in their forthcoming board meeting on Friday, June 22, 2018. READ MORE

2:59 PM

Infra, realty firms face refinancing test of Rs 3-4 trillion: Ind-Ra

A number of companies in infrastructure and real estate sectors run the highest risk of not getting refinancing on their working capital and other loans, according to India Ratings and Research (Ind-Ra).

 

These companies are lower in the investment grade ratings, whereas their debt on books is also relatively high. Entities rated ‘BBB’ and below historically have faced challenges in raising funds. READ MORE

2:44 PM

Fuel prices to fall? Tough OPEC talks likely in Vienna on hiking oil output

OPEC ministers arrived in Vienna on Wednesday for crunch talks on whether to reverse a landmark pact curbing oil output, with Iran pushing back against Saudi and Russian calls to ramp up production again. 

 

The upcoming June 22-23 meetings of OPEC and non-OPEC energy ministers are set to be the most contentious in a while, with several countries bristling at the thought of reversing a deal that has been in place for 18 months and helped lift oil prices to multi-year highs. READ MORE

2:27 PM

Mahindra Lifespace, Mahindra Logistics, Mahindra CIE hit 52-week high

Shares of Mahindra Group were in focus with three companies - Mahindra Lifespace Developers, Mahindra Logistics, Mahindra CIE Automotive hit their respective 52-week highs on the BSE in intra-day trade on Wednesday. READ MORE

2:14 PM

FedEx orders Boeing freighters for $6.6 billion

FedEx Express, a unit of package delivery company FedEx Corp , has ordered 24 medium and large freighters from Boeing Co , the world's biggest planemaker said on Tuesday, as e-commerce demand boosts air freight business. READ MORE
 

1:55 PM

Morgan Stanley on Asian markets

We make further significant cuts to our index targets as macro pressure points build materially. We see downside from here for all our coverage markets near term with the Hang Seng particularly at risk.
 

Our new base case Target Prices imply 3% to 8% downside from current levels and that from the late Jan peaks, EM, HSCEI and CSI 300 should all enter bear market territory (drawdown > 20%) while Hang Seng, Topix, APxJ and MSCI China come close. We continue to favour MSCI China over MSCI EM, stay neutral EM versus Japan, are now also neutral CSI 300 versus MSCI China (previously preferred CSI 300) and neutral MSCI EM versus MSCI APxJ (previously preferred EM).

1:43 PM

MARKET CHECK

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,495.76	+209.02	+0.59
S&P BSE SENSEX 50	11,275.02	+55.18	+0.49
S&P BSE SENSEX Next 50	32,562.73	+23.39	+0.07
S&P BSE 100	11,061.88	+47.24	+0.43
S&P BSE Bharat 22 Index	3,425.33	-19.83	-0.58

1:43 PM

STOCK VIEW Bombay Burmah Trading Corp (BBTC)

Assuming 49% discount (which is at par to the industry average of around 49%), to the market value of investments it holds in Britannia and Bombay Dyeing, we arrive at a revised target price of around Rs.2,700 in the next 2-3 years for BBTC. 

 

Risk to View: Only possible risk to our view is if there is any possible governance issue in terms of divestment of holdings in Britannia in favour of any promoters or other Group entities. However, considering the track record of promoters and also the India’s regulatory environment, we firmly believe that such risk is too low.

(Source: Equinomics Research)

1:40 PM

GLOBAL MARKETS Asian stocks pick up steam as hopes of policy support lift China

Asian stock markets picked up steam in afternoon trade on Wednesday after a wobbly morning session, highlighting the lingering anxiety and uncertainty surrounding a heated trade dispute between China and the United States. S&P 500 futures turned higher, rising 0.3 percent and pointing to possible gains on Wall Street after major U.S. indexes closed lower Tuesday READ MORE HERE

1:24 PM

Centrum on Exide

We initiate coverage on Exide Industries (EXIDE) with BUY rating and target price of Rs 322. Our exhaustive channel check with 125+ dealers pan India across the company’s three major brands (Exide, SF Sonic and Dynex) indicates the management’s significant efforts to address ground level issues in the replacement market (which is critical for overall demand and remains the major revenue and profitability driver).

The company’s efforts have translated into positive material difference and a pick-up in momentum across the brands. Further, the meaningful transition expected in commercial vehicle segment towards organized players post GST implementation will prove beneficial for EXIDE

1:19 PM

COMMODITIES As Opec braces for Vienna talks this week, India hopes for fair oil pricing

India, the world’s third-largest oil consumer, expects a “responsible” approach from its suppliers as speculation mounts over whether OPEC and its allies will reach a deal to boost output at a meeting in Vienna this week.

 

India welcomes a proposal made by top producers Saudi Arabia and Russia to gradually ease the group’s supply curbs after prices rose to hit $80 a barrel last month, the South Asian nation’s oil minister, Dharmendra Pradhan, said in an interview at the Austrian capital. The Organization of the Petroleum Exporting Countries is heading into a contentious meeting on Friday, with Iran promising to block any decision to increase output READ MORE

1:15 PM

Top Sensex gainers (Image source: BSE)

1:00 PM

Emami stock: Margin pressure could persist, given high input costs

Emami is among the few consumer companies to be trading close to its 52-week low, at a time when investors have been lapping up shares in the segment. Concern over volume growth and margins are keeping the Street sceptical about the company's performance in the coming quarters.

 

After a muted volume growth in the March 2018 quarter (around 9 per cent despite last year's low base, when volumes fell by 1.5 per cent), some analysts expect a revival in the rural economy to help improve Emami's volume performance. READ MORE

12:45 PM

Airlines stocks trade weak as air passenger traffic growth slows in May

Shares of all three listed airlines companies InterGlobe Aviation, SpiceJet and Jet Airways were trading lower by up to 4% on the BSE after the air passenger traffic growth slows in the month of May.
 

Domestic air passenger traffic grew 16.53% to 11.86 million in May this year over the same period a year ago, according to data released by the Directorate General of Civil Aviation (DGCA) on Tuesday. The growth rate was lowest since September 2017, when airlines in India carried 9.58 million passengers, up 16.34% from last September. READ MORE

12:43 PM

GLOBAL MARKETS

INDEX	DATE	LATEST	PREV CLOSE	CHG(PTS)	CHG(%)
SHANGHAI COMPOSITE	19-06-2018	2907.82	3021.90	-114.08	-3.78
HANG SENG	19-06-2018	29468.15	30309.49	-841.34	-2.78
SET	19-06-2018	1639.54	1679.68	-40.14	-2.39
NIKKEI 225	19-06-2018	22278.48	22680.33	-401.85	-1.77
TAIWAN WEIGHTED	19-06-2018	10904.19	11087.47	-183.28	-1.65

Click here for more indices

12:41 PM

What are the mistakes investors need to avoid in US-China trade war

Investors may be mispricing the trade war by dumping Chinese shares more aggressively than those in Taiwan, Malaysia and South Korea, according to Bloomberg Economics’ Fielding Chen and Tom Orlik.
 

China’s benchmark Shanghai Composite Index slumped 3.8 per cent Tuesday, the biggest decline in Asia, even though many of its neighbours are more exposed to trade skirmishes, the economists wrote in a June 20 note. The index was down a further 1 per cent Wednesday CLICK HERE FOR MORE

12:39 PM

RITES IPO opens for subscription today. Should you invest?

In terms of valuation, pre-issue price-to-earnings (PE) works out to 12x of annualised FY18 earnings per share (EPS) of Rs 17 (at the upper end of the issue price band), which is reasonably priced considering: (a) 3.5x of order book with execution capability and experienced management, (b) maintaining the RoE level in the range of 17- 18%, (c) diversified client base and (d) increasing opportunity of revenue from Railways due to new investment in electrification and infrastructure READ MORE

12:34 PM

SECTOR WATCH Cement

Sector reported Q4FY18 earnings above our expectation. Beat in earnings was led by lower than expected costs. Sales volume for our coverage universe (65% share in aggregate volumes of the listed cos) grew 15.8% YoY (on a base of +3.7%), ahead of 13.6% growth (on a base of +7%) posted by the sector. Led by increased Govt spending on infrastructure development and affordable housing, demand would grow at 7-8% in FY19e.

However, cement prices would remain muted due to depressed demand from IHB and real estate sector, intense competition and continuous capacity addition. Given the weak outlook on prices and hardening energy prices, we continue to maintain Underweight stance on the sector. However, we like Heidelberg cement (HIEM) on the back of its strong outlook on central region and attractive valuations

(Source: Prabhudas Lilladher)

12:16 PM

28 companies announce buyback plans aggregating Rs 213 billion

The first six months of calendar year 2018 (CY18) has seen 28 companies announce buyback plans aggregating Rs 213 billion with Tata Consultancy Services (TCS), Kaveri Seed Company and Jagran Prakashan planning a buyback of their shares for the second consecutive year.

 

Besides these three, 11 companies – Aarti Drugs, Balrampur Chini Mills, Bharat Electronics, eClerx Services, Indiabulls Real Estate, KPR Mill and MOIL – have approved share buyback proposal in two out of the last three years. READ MORE

12:01 PM

Markets at Noon

 

S&P BSE Sensex	35,476.48		0.54%
Nifty 50	10,755.95		0.42%
S&P BSE 200	4,648.97		0.36%
Nifty 500	9,263.60		0.32%
S&P BSE Mid-Cap	15,839.68		0.15%
S&P BSE Small-Cap	16,658.70		0.27%

11:46 AM

Emerging Asia hit by biggest foreign investor exodus since 2008

A falling tide lowers all boats, it seems. Amid an exodus from emerging markets, investors are pulling out of even Asian economies with solid prospects for growth and debt financing.

 

Overseas funds are pulling out of six major Asian emerging equity markets at a pace unseen since the global financial crisis of 2008 — withdrawing $19 billion from India, Indonesia, the Philippines, South Korea, Taiwan and Thailand so far this year READ MORE

11:31 AM

Sales growth to double Jubilant FoodWorks, Westlife Development margins

Despite their better performance over the last year, India’s largest, listed quick service restaurant (QSR) stocks — Jubilant FoodWorks (Jubilant) and Westlife Development (Westlife) — still have more legs to run. While Jubilant (which operates the Domino’s franchise) has tripled in value, Westlife (which runs the McDonalds stores) has added 55 per cent to its shareholder wealth. READ MORE

 

11:15 AM

Sebi bans Asoka Life Science, directors from securities market for 4 years

Sebi on Tuesday banned Kolkata-based Asoka Life Science and its four former and present directors from the securities market for at least four years and directed them to refund the money the company had collected without complying with public issue norms.

 

According to a Sebi order, Asoka had offered redeemable preference shares to 6,842 investors during the financial years 2007-08 to 2011-12 and raised approximately Rs 62.2 million. READ MORE

11:04 AM

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,473.61	+186.87	+0.53
S&P BSE SENSEX 50	11,270.27	+50.43	+0.45
S&P BSE SENSEX Next 50	32,629.80	+90.46	+0.28
S&P BSE 100	11,061.34	+46.70	+0.42
S&P BSE Bharat 22 Index	3,431.35	-13.81	-0.40

11:02 AM

Phillip Capital on Voltas

Even as there are no changes in the long-term demand drivers for AC sales, in the near term (1QFY19), the AC industry and Voltas would both be negatively affected by subdued demand due to erratic weather conditions. Voltas’ MEP business should be a beneficiary of building and metro capex in the domestic market and infrastructure capex in the Middle East as oil prices rebound. However, current valuations at 24x FY20 PE are rich for 13% earnings CAGR over FY18-20.

 

We maintain our neutral rating with an SOTP-based target price of Rs 510 – we ascribe a 30x PE for its UCP segment, valuing it at Rs 370/share, 15x PE for its MEP/EPS segments, valuing them at Rs 89/39 per share, and we add another Rs 10/share for unallocated income