MARKET WRAP: TCS up 5% in a flat market, HUL hits record, metal stocks slip

After a muted session, investors will now look out for inflation data on Thursday and Infosys results on Friday to fine-tune their trading strategy. Global developments, too, will impact sentiment

4:11 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

After a smart upmove over the past few sessions, some consolidation cannot be ruled out in the coming sessions. Key domestic macro events like May IIP, June CPI inflation data and corporate earnings season will provide further direction to the markets in the near term. Stock / sector specific volatility will remain high.

The progress of monsoon, movement of crude oil prices and global developments will continue to be monitored by the market participants. The rising trade tensions between US & China could induce high volatility across the indices globally. Traders should avoid risky leveraged positions

3:47 PM

Nifty IT index settled 2.21% higher today. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
TCS	1979.90	1875.10	104.80	5.59
TATA ELXSI	1445.00	1392.45	52.55	3.77
KPIT TECH.	291.30	286.80	4.50	1.57
INFOSYS	1320.45	1301.40	19.05	1.46
HCL TECHNOLOGIES	993.45	979.55	13.90	1.42

3:44 PM

Nifty sectoral performers

3:43 PM

BSE Sensex: TCS, Bajaj Auto among top gainers of the day, Coal India top loser

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 36,266, up 26 points while the broader Nifty50 index settled at 10,948, up 1 point.

3:14 PM

Metal shares witness selling pressure

Shares of 10 metal and mining companies fell by 1.58% to 4.04% on BSE after copper price edged lower in the global commodities markets. Jindal Steel & Power (down 4.04%), Hindalco Industries (down 3.84%), Vedanta (down 3.7%), Steel Authority of India (down 3.69%), Hindustan Zinc (down 3.29%), National Aluminium Company (down 2.69%), Tata Steel (down 2.08%), JSW Steel (down 1.78%), Hindustan Copper (down 1.77%) and NMDC (down 1.58%), edged lower. READ MORE

3:02 PM

Gold remains weak on global cues, muted demand

Gold prices fell further by Rs 30 to Rs 31,350 per 10 grams at the bullion market today largely due to a weak trend overseas amid tepid demand from local jewellers. Silver followed suit and lost another Rs 150 at Rs 40,500 per kg owing to reduced offtake by industrial units and coin makers. READ MORE

2:45 PM

Murdoch's Fox agrees $32.5 billion bid for Sky

Rupert Murdoch's 21st Century Fox said it had agreed a deal to buy Britain's Sky with an offer valuing the pay-TV group at $32.5 billion, trumping rival bidder Comcast.

 

Fox, which is expecting to get regulatory approval from Britain this week after striking an initial deal with Sky in December 2016, upped its offer to 14 pounds per share, from its earlier 10.75 pounds per share. READ MORE

2:30 PM

BS SPECIAL Consumer business to drive doubling of Reliance's size in the next 7 years, writes Ambareesh Baliga

Reliance Industries’ annual general meetings (AGMs) are the most awaited investors’ event in the Indian stock market calendar. Like last year, the focus this time was on the businesses headed by Ambani gen-next and it was also an indication that they were settling down well in the saddle.

 

The group has been the harbinger of equity culture in India, creating wealth for millions of its investors. The importance of Reliance can be gauged from the data on the group’s consolidated tax payment for 2017-18 which exceeds the GDP of about 11 Indian states READ MORE HERE

2:16 PM

UBS on rupee outlook

The worsening of India's external position amidst tightening global financial conditions and USD strength has resulted in the INR weakening to an all-time low of 69 against the USD recently. Looking at the INR on a Real Effective Exchange Rate (REER) basis and using the Harrod-Balassa-Samuelson (HBS) theorem to adjust for the productivity differential with trading partners, our model indicates the INR has overshot its equilibrium value and is undervalued at its current level. Our analysis suggests the fair value of the INR based on productivity-adjusted REER is in the 64-66 range.

Photo: Shutterstock

2:13 PM

COMMENT Kotak Securities on rupee

Fragile global risk sentiments and increasing domestic vulnerabilities have continued to weigh on INR in CY2018 after a stellar performance in CY2017. The unrelenting capital outflow from EMs is a reflection of the increasing global risks as DM monetary policies normalize and trade war threatens to derail the global economic recovery. Adverse global backdrop, deteriorating domestic macro scenario and domestic political uncertainty could continue to keep the INR under pressure. We expect USD-INR to range 67.5-71.0 for the rest of FY201

2:01 PM

Market Check

 

S&P BSE Sensex	36,290.81		0.14%
Nifty 50	10,953.60		0.06%
S&P BSE 200	4,702.05		-0.11%
Nifty 500	9,349.10		-0.11%
S&P BSE Mid-Cap	15,633.83		-0.66%
S&P BSE Small-Cap	16,433.48		-0.30%

1:51 PM

Top gainers in BSE500:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
ADANI POWER	20.05	17.35	2.70	15.56
SHILPA MEDICARE	423.80	383.50	40.30	10.51
BLUE STAR	701.85	657.45	44.40	6.75
IDBI BANK	56.70	53.20	3.50	6.58
TCS	1982.95	1877.00	105.95	5.64

1:44 PM

TCS hits new high as Q1 profit beats Street estimate; stock surges 6%

Shares of Tata Consultancy Services (TCS) rose by 6% at Rs 1,990 per share, also their new high on the BSE in noon trade after the country’s biggest software services exporter posted a better-than-expected rise of about 23.5% year on year (YoY) and 6.3% quarter on quarter (QoQ) in first-quarter (Q1) net profit, helped by strong growth in its banking, financial services and insurance division (BFSI). READ MORE

1:38 PM

Adani Group shares in focus; Adani Power, Adani Enterprises up over 8%

Shares of the Gautam Adani-led Adani Group companies have rallied by up to 16% on the BSE in intra-day trade in an otherwise subdued market. Adani Power (up 16% at Rs 20.15), Adani Enterprises (10% at Rs 125), Adani Green Energy (7% at Rs 33.20), Adani Transmission (5% at Rs 167) and Adani Ports and Special Economic Zone (2% at Rs 378) have surged up to 16% on Wednesday. READ MORE

1:16 PM

Equirus on Gujarat Ambuja Exports

We analyzed Gujarat Ambuja Exports’ (GAEX) FY18 Annual Report and following were the key takeaways: (1) Demand for corn starch in the export market has increased and GAEX’s new Chalisgaon plant is primarily focussing on exports. (2) A 300bps EBITDAM expansion in the agro segment was mainly driven by a reduction in trading activities. (3) Focus remains on the maize business in terms of capital allocation. (4) Capacity utilization in the agro business is set to pick up as domestic demand for de-oiled cakes is improving. We broadly maintain our FY19/FY20 estimates and maintain our SoTP-based June’19 target price of Rs 320. Maintain Long rating.

12:58 PM

FMCG index hits new high; HUL, Godrej Consumer at record levels

Shares of fast moving consumer goods (FMCG) companies continued at their upward march on Wednesday with the Nifty FMCG index hitting a new high of 29,958 on the National Stock Exchange (NSE), fuelled by expectations of a healthy performance in June quarter, aided by a low base and a healthy underlying demand scenario. READ MORE

12:44 PM

Mukesh Ambani's aim to more than double RIL's size looks achievable

Last Thursday, Reliance Industries' chairman Mukesh Ambani exuded confidence that the company will more than double in the next seven years. At the company's annual general meeting of shareholders, Ambani said, "As India starts on its high growth journey to double the size of its economy by 2025, I assure you that the size of Reliance will more than double in the same period."  READ MORE

12:36 PM

MARKET COMMENT R Sreesankar, Co-Head - Insitutional Equities, Prabhudas Lilladher

We had reduced our trading range for the market to be between estimated the trading range for the market to be between 9640-10000 and maintaining the trading range for the near term. With the country getting into an election mode in the next nine months from both the state elections as well as the general elections, the uncertainty is likely to set in. This in our view should result into a contraction of market PERs.

With crude remaining at an elevated level, the under performance of the OMCs is a case point as the market expects any further increase in crude prices may not be passed onto the consumers ahead of elections. On the contrary, there is an expectation of subsidy increases leading to an increase on overall government borrowings. In anticipation, we have already seen the bond yields moving up and interest rates inching up. With both crude as well as most global commodity prices remaining firm, it is also expected to see a commodity led inflationary pressure building up. The mid cap and small cap companies continue to see pressure

12:35 PM

Motilal Oswal Research on Ipca Labs

We have assumed strong 13.5%/44% CAGR in sales and PAT over FY18-20. We raise our target P/E multiple to 21x (from 20x earlier) on back of enhanced visibility of regulatory resolution based on remediation work done by the company, revival in DF and anti-malaria business. Accordingly, we value IPCA at 21x FY20E EPS of Rs 39 to arrive at a price target of Rs 825 (v/s INR785; 20x FY20E EPS earlier). Reiterate Buy.

12:21 PM

Paisa Bazaar under Sebi scanner over Akshay Kumar ad promoting MFs

Popular online distribution portal Paisa Bazaar's latest advertisements featuring Akshay Kumar to promote mutual funds have come under regulatory glare.

 

Sources said industry body Association of Mutual Funds in India (AMFI) had directed Paisa Bazaar to seek an approval from markets regulator Securities and Exchange Board of India (Sebi) for commercials featuring celebrities. However, the ads have already gone live on popular social media platforms. READ MORE

12:08 PM

Market Check

 

S&P BSE Sensex	36,265.10		0.07%
Nifty 50	10,946.90		-0.00%
S&P BSE 200	4,704.63		-0.06%
Nifty 500	9,346.75		-0.14%
S&P BSE Mid-Cap	15,672.35		-0.42%
S&P BSE Small-Cap	16,454.71		-0.18%

11:50 AM

Emkay Global on pharma sector

Recent price rise in the US Pharma industry has drawn a sharp reaction from the US President Donald Trump with a pledge to respond with various appropriate measures. The Trump administration blames high US drug prices on lower prices as well as pricing caps in other countries, leading to Americans subsidizing the high R&D costs. Given this US stance, the recent attempts by the Indian government to rein in drug prices could now become a bone of contention between the two governments. Recent attempts by the US generic drug industry to push back against severe price erosion by hiking prices could also come under scrutiny. 

11:35 AM

Choice Research on Asian Paints

11:30 AM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,190.11	-49.51	-0.14
S&P BSE SENSEX 50	11,453.63	-10.78	-0.09
S&P BSE SENSEX Next 50	32,335.60	-221.02	-0.68
S&P BSE 100	11,199.10	-20.27	-0.18
S&P BSE Bharat 22 Index	3,356.61	-23.29	-0.69

11:23 AM

MUST READ As auto sector continues to grow, Nano's failure stands in stark contrast

A moment of silence, please, for the world’s cheapest car, which has all but died in India. It was almost 10 years old. The Nano’s death was confirmed by production numbers: Tata Motors Ltd. produced 1 unit in June, down from 275 in the same month last year. Exports were zero, versus 25 in June 2017. The company acknowledged that the car in its “present form cannot continue beyond 2019. READ MORE HERE

11:11 AM

COMMODITY WATCH US says import of Iranian oil sanctionable from Nov 4; India may get relief

US Secretary of State Mike Pompeo said on Tuesday that the import of oil from Iran beginning November 4 will be a sanctionable activity but the US would consider the request for relief from a handful of countries, in an apparent reference to India which is the second largest buyer of Iranian crude. READ MORE

11:01 AM

PNB Housing rises 6% as PNB, Carlyle Group plan to offload 51% stake

Shares of PNB Housing Finance were up by 6% at Rs 1,269 per share on Wednesday in intra-day trade, extending their 2% rise in the previous day on the BSE, after the company said that Punjab National Bank (PNB) and the Carlyle Group proposed to sell their stake to the potential acquirers. READ MORE

10:45 AM

Emerging-Market rally pits Morgan Stanley against Goldman Sachs

Signs of stabilization in emerging markets since the start of the month are splitting some of Wall Street’s biggest banks on the outlook for the asset class. Morgan Stanley strategists dubbed the recent recovery a “head fake” and recommended selling on gains in stocks and bonds. Their counterparts at Goldman Sachs Group say that developing nations “now offer relative value” and are keeping their long call on the MSCI Emerging Markets Index of equities. READ MORE

10:29 AM

Shilpa Medicare surges 13% after receiving EIR from USFDA

Shares of Shilpa Medicare have surged by 13% to Rs 434 per share on the BSE in morning trade after the company said that it has received Establishment Inspection Report (EIR) from the US health regulator for both of its facilities located at Raichur, Karnataka. READ MORE