MARKETS ON TUESDAY: Indices end flat, Nifty holds 10700; ICICI Bank up 6.6%

Benchmark indices ended flat on Tuesday taking mixed cues from the Asian counterparts

4:23 PM

Market rundown by Vinod Nair, Head of Research, Geojit Financial Services

 

"Market turned volatile as investors’ are concerned on the movement of rupee and surge in oil price which could eventually lead to tight monetary policy. Albeit, banks outperformed as sentiment improved on account of early recognition of stressed assets. Continued outflow of foreign money will keep rupee on tenterhook while increasing GST collection and RBIs open market operation may soften the volatility. "

 

3:39 PM

Nifty Bank index up nearly 1%: Top gainers from the pack

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
ICICI BANK	308.50	289.80	18.70	6.45	87171264
FEDERAL BANK	103.70	101.20	2.50	2.47	15399268
ST BK OF INDIA	250.30	246.50	3.80	1.54	23278419
BANK OF BARODA	145.50	143.55	1.95	1.36	15825358
AXIS BANK	543.15	536.10	7.05	1.32	12027147

3:37 PM

ICICI Bank top gainer post Q4 results

3:36 PM

Sectoral Trend

3:35 PM

Top Sensex gainers and losers

3:32 PM

Markets at Close

The S&P BSE Sensex ended the day at 35,216 up 8 points while the broader Nifty50 index settled at 10,718 , up 2 points

3:15 PM

India's April gold imports plunge 39 per cent on weak demand: GFMS

India's gold imports fell for a fourth straight month in April from a year ago to 57 tonnes on subdued demand after local prices jumped to the highest level in nearly 21 months, provisional data from precious metals consultancy GFMS and bank dealers showed.

 

The drop in purchases by India, though, could weigh on global prices, which are still up nearly 6 percent from a mid-December trough, despite dropping back from a 17-month high hit at the end of January. READ MORE

Global gold jewellery demand was 685.6 tonnes during the September quarter

3:00 PM

Jubilant FoodWorks hits new high on good Q4 results; 1:1 bonus

Shares of Jubilant FoodWorks hit new high of Rs 2,668 per share, up 2% on the BSE, bouncing back 5% from their intra-day low after the company reported more than 10-fold jump in net profit at Rs 681 million in March 2018 quarter (Q4FY18). It had profit of Rs 67 million in a year ago quarter.
 

Revenue from operations during the quarter under review grew 27% year on year (y-o-y) at Rs 7,798 million against Rs 6,128 million in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortization) margin improved 650 bps to 16.4% in Q4FY18 from 9.9% in Q4FY17. READ MORE

2:46 PM

Investors pricing in Modi win in 2019; oil, rupee among key concerns: UBS

Investors have priced in a “Modi win in 2019” as the base case and expect India’s economic growth to gain momentum in financial year 2018 – 19 (FY19), albeit with widening macro stability risks (inflation, current account deficit and fiscal deficit), suggests a recent report by UBS.

 

The report, authored by Tanvee Gupta Jain, UBS’ economist, also highlights the key near-term risks investors are concerned about. Investors, it says, have also questioned the trends in household savings and the local flows in the backdrop of demonetisation. READ MORE

2:32 PM

Buffett slams bitcoin as thriving on mystique, favours US stocks over cypto

Billionaire investor Warren Buffett on Monday said buyers of bitcoin, which he has characterized as "rat poison squared," thrive on the hope they'll find other people who will pay more for it.

 

Likening bitcoin demand to the tulip bulb mania in 17th century Holland, Buffett, the chairman and chief executive of Berkshire Hathaway Inc, said the mystique behind the cryptocurrency has caused its price to surge. READ MORE

2:16 PM

MCX to launch crude oil, metals options; also gets nod for diamond futures

Multi Commodity Exchange (MCX) got permission, late last week, to launch options trading in crude oil, silver, copper and zinc. The exchange announced on Monday that crude oil (100 barrels) option and trading will start from May 15 and expire on June 15.

 

This follows its recent launch of options contracts in gold. After that successfully took off, the Securities and Exchange Board of India (Sebi) has allowed MCX, the country’s largest in commodities, to do so in zinc (5 tonnes), silver (30 kg) and copper (1 tonne), apart from crude oil. READ MORE

2:04 PM

Market Check

S&P BSE Sensex	35,189.87		-0.05%
Nifty 50	10,708.40		-0.07%
S&P BSE 200	4,684.46		-0.06%
Nifty 500	9,409.85		-0.10%
S&P BSE Mid-Cap	16,615.23		-0.22%
S&P BSE Small-Cap	18,087.88		-0.02%

1:45 PM

NEWS WATCH Fed to communicate clearly to avoid market disruptions - Powell

The Federal Reserve's interest rate hikes may not pose as big a risk for global financial markets and emerging market economies as many have thought, the US central bank's chairman said on Tuesday.

 

Still, Jerome Powell said global risk sentiment bears watching as the Fed carries out its well-telegraphed gradual policy-rate increases. READ MORE

1:32 PM

Sebi writes to govt urging tax parity between cash and derivatives

The Securities and Exchange Board of India (Sebi) intends to have tax parity in the futures and options (F&O) segment. Sebi is of the view that the differentiating tax structure, particularly the securities transaction tax (STT), is incentivising participation in the derivatives segment.

 

The market regulator has written to the government—which sets the tax rate for the capital market—on bringing tax parity between the cash and the derivatives segment. READ MORE

1:18 PM

PSBs extend gains; Indian Bank, Bank of India up over 3%

Shares of public sector banks (PSBs) were trading higher for the second straight day in a row amid softening of the yield on the 10-year gilt, following the Reserve Bank of India (RBI’s) open market operation announcement on Friday.

 

Indian Bank surged 7% to Rs 344, extending its previous day’s 3.5% gain on the National Stock Exchange (NSE). Bank of India up 4%, while IDBI Bank, Andhra Bank, Union Bank of India, Bank of Baroda, Canara Bank, Syndicate Bank, Oriental Bank of Commerce and State Bank of India (SBI) were up 2% to 3% on the NSE. READ MORE

1:01 PM

Godrej Properties extends rally on robust Q4 results; stock hits new high

Godrej Properties hit a new high of Rs 917, up 8%, extending past two days' gain of 8% on the BSE, after the realty firm on Friday reported an over two-fold jump in its consolidated net profit at Rs 1.41 billion for the quarter ended March 2018 (Q4FY18) on higher sales. Its net profit stood at Rs 626 million in the year-ago period.
 

Total income also rose sharply by 84% to Rs 8.48 billion from in the fourth quarter of the last financial year from Rs 4.62 billion in the corresponding period of the previous year. READ MORE

12:45 PM

Binani Cement lenders to meet on Wednesday to mull UltraTech revised offer

 

The Committee of Creditors (CoC) of Binani Cement is likely to meet on Wednesday this week to consider the revised offer of Rs 79.60 billion from UltraTech Cement for acquisition of the stressed assets of Binani Cement. The company is currently undergoing insolvency proceedings in the Kolkata bench of NCLT.

 

This follows the NCLT’s order which directed the CoC to consider the Aditya Birla Group company’s proposal despite it being termed as the “unsuccessful bidder” by the CoC. The Tribunal had ordered Binani Cement’s resolution professional (RP) to submit the revised proposal from UltraTech to the CoC and also accommodated any modifications to the proposal if necessary. READ MORE

12:30 PM

Devangshu Datta: Most signals positive, but VIX indicates nervousness

 

The Nifty looks set to push North, but it could run into heavy resistance above 10,750-10,800. The index is well above the 200-day moving average (200-DMA), which is now between 10,250 and 10,300. There is a possible short-term target of 10,900.

 

The index will have to cross the all-time high of 11,170 to confirm the big bull market remains alive. There are successive supports between 10,600 and 10,700, and then at 10,300-10,400. The 10,600 support held during a brief sell-off last week. READ MORE

12:16 PM

PNB Housing Finance falls 7% after huge block deals

 

Shares of PNB Housing Finance have fallen 7% to Rs 1,271 per share on the BSE in intra-day trade after nearly nine per cent of total equity of the housing finance company changed hands through multiple block deals.

 

On the BSE around 8 million shares changed hands, while on the NSE 6.52 million shares were traded so far. Currently, the stock was trading 6.5% lower at Rs 1,284 on the BSE, as compared to 0.23% rise in the S&P BSE Sensex. READ MORE

12:00 PM

Stocks at 52-week high

COMPANY	PRICE( )	52 WK HIGH	CHG( )	CHG(%)
ASHOK LEYLAND	166.70	167.50	1.65	1.00
ASTRAL POLY	969.00	970.95	12.00	1.25
BOMBAY DYEING	315.00	320.65	4.95	1.60
DIVI'S LAB.	1213.95	1219.55	8.75	0.73
GODREJ PROPERT.	891.25	917.00	39.90	4.69

11:46 AM

Brokers urge Sebi to review 'harsh' 100% penalty on margin reporting

 

Brokers have urged Securities and Exchange board of India (Sebi) to review the penalty structure on margin reporting. The market regulator has directed exchanges to levy stringent penalty of up to 100 per cent, along with suspension of trading, on false reporting of client margins by brokers.

 

The industry body Association of National Exchanges Members of India (Anmi) has written to the regulator asking for leeway. READ MORE

11:32 AM

DSP parts ways with BlackRock, to buy 40% stake in MF venture

 

US-based BlackRock and Hemendra Kothari-led DSP group have ended their mutual fund (MF) joint venture DSP BlackRock Investment Managers. Under an agreement announced on Monday, the DSP Group will buy the 40 per cent stake held by BlackRock in the venture, which manages and markets a range of co-branded MFs in India.

 

“The sale is expected to complete, subject to regulatory approval, once naming transfers and investment scheme unit holder communications are finalised,” BlackRock said in a release. READ MORE

11:16 AM

Tata Coffee down 7% on disappointing Q4 results

 

Tata Coffee dipped 7% to Rs 124 on the BSE after the company reported a sharp 63% year on year (y-o-y) decline in its consolidated net profit at Rs 224 million in March quarter. It had profit of Rs 598 million in a year ago quarter.

 

Revenue from operations during the quarter grew 9% to Rs 4.4 billion against Rs 4.03 billion in the corresponding quarter of previous fiscal. READ MORE

11:09 AM

MARKET WATCH

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,271.51	+63.37	+0.18
S&P BSE SENSEX 50	11,231.88	+18.98	+0.17
S&P BSE SENSEX Next 50	34,151.18	-1.52	0.00
S&P BSE 100	11,105.66	+15.76	+0.14
S&P BSE Bharat 22 Index	3,601.75	+4.07	+0.11

(SOURCE: BSE)

11:00 AM

No sluggishness in realty, suggest Godrej Properties' Q4 results

 

The Godrej Properties stock is showing an uptick of 5.2 per cent in trade riding on strong sales in the March quarter, as the company plans to raise additional funds for expansion. While the company reported a strong revenue growth of 21 per cent year-on-year in the March quarter, new booking value in the quarter crossed the Rs 10 billion-mark for the fourth consecutive quarter.

 

New sales in FY18 more than doubled to hit Rs 50 billion - the highest annual sales so far. However, barring the top line, operating performance was impacted by a number of one-offs. READ MORE

10:52 AM

Motilal Oswal Securities on March 2018 quarter results

The 4QFY18 earnings season has so far been broadly in line with expectations in terms of revenue. However, profits have missed estimates, largely dragged by Axis Bank, which reported a significant jump in slippages and provisions. We expect the performance of corporate-focused private banks and PSU Banks to drag the aggregates in 4QFY18.

Of the 20 Nifty companies that have declared their earnings results, 13 have either met or exceeded our estimates. The earnings upgrade/downgrade ratio stands > 1, with 22 MOSL Universe companies witnessing upgrades of 3% and 17 witnessing downgrades of 3%.

10:50 AM

ICICI Securities on Adani Power

Downgrade to REDUCE with a revised SoTP-based target price of Rs24/share given the following concerns: i) Mundra PPAs have become unviable post Supreme

Court’s adverse ruling, ii) the company’s balance sheet is stretched post CT write-off, and iii) APL’s aggressive inorganic expansion plans. Risks of INR depreciation, lower merchant utilisation, and increasing coal prices could impact financials. However, resolution or demerger of Mundra could be a potential rerating catalyst.

10:49 AM

COMMENT ICICI Securities on March 2018 quarter results

Although we have limited Q4FY18 corporate results (197 Cos.) for the manufacturing sector so far, early birds from companies in sectors such as Cement, Auto, Oil & Gas, Metals etc. indicate robust sales growth of ~ 17% and stable capacity utilisation.

10:48 AM

Flipkart campus on a Walmart high; employees await stock option riches

 

The Flipkart board last week gave its approval to Walmart’s proposal to acquire around 75 per cent in the company for around $15 billion, sources said. The term sheet is expected to be signed in the next few days, giving a closure to the much talked about deal in the Indian e-commerce sector.

 

‘’Walmart will bring its years of experience to Flipkart and that will help us hone our skills and bring us closer to the global best practices,’’ said one of the techies at the campus. READ MORE

10:30 AM

ICICI Bank surges 7% post Q4 results

ICICI Bank surged 7% to Rs 309 on the BSE after the private sector lender reported better than expected core operating performance. The net profit of the bank almost halved to Rs 10.2 billion for the quarter ended March 2018, as it set aside cash to cover a surge in bad loans, a fallout of the central bank’s revised scheme on resolution of stressed assets. It had profit of Rs 20.2 billion a year ago quarter. READ MORE