MARKETS ON WEDNESDAY: Nifty ends at 10,742, Sensex up 103 pts; IT cos gain

The Nifty IT index ended higher led by a rise in the shares of Tata Consultancy Services, Tata Elxsi and HCL Technologies.

4:08 PM

MARKET COMMENT Mustafa Nadeem, CEO, Epic Research

Nifty50 may continue to trade in the range of 10780 to 10600 for next couple of days. Any upside breakout of 10780 on a closing basis will give us further direction and higher levels of 10900. Traders and investors are suggested to have positions being hedged since the increase in volatility is expected ahead of the event

3:45 PM

Nifty IT index ends 0.55% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
TCS	3489.30	3441.20	48.10	1.40
TATA ELXSI	1192.45	1179.10	13.35	1.13
ORACLE FIN.SERV.	4269.50	4225.20	44.30	1.05
HCL TECHNOLOGIES	927.50	920.10	7.40	0.80
INFOSYS	1170.70	1165.55	5.15	0.44

3:37 PM

Sectoral Trend

3:36 PM

BSE Sensex: gainers and losers of the day

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 35,319, up 103 points while the broader Nifty50 index settled at 10,742, up 24 points.

3:15 PM

EID Parry hits 52-week low on disappointing Q4 results

Shares of EID Parry hit 52-week low of Rs 251 per share, down 7% on the BSE, after the company reported a sharp 87% year-on-year (y-o-y) drop in consolidated net profit at Rs 405 million for the quarter ended March 2018 (Q4FY18), on account of poor performance by sugar and nutrient and allied business. It had profit a of Rs 3 billion in year ago quarter. READ MORE

3:01 PM

Enkei Wheels surges 14% on stake buys by Blue Lotus Capital

Shares of Enkei Wheels (India) have surged 14% to Rs 475 per share on the BSE, after Blue Lotus Capital Multibagger Fund bought 0.55% stake in auto ancillary company through open market. On Tuesday, Blue Lotus Capital Multibagger Fund had purchased 85,000 equity shares representing 0.55% stake in Enkei Wheels (India) at price of Rs 421 per share, the BSE bulk deal data shows. READ MORE

2:40 PM

Edelweiss on Godrej Consumer

Godrej Consumer Products’ (GCPL) Q4FY18 consolidated revenue, EBITDA and PAT growth of 5.8%, 9.4% and 10.0% YoY, respectively, came in line with our estimates. Domestic volume growth was soft at 6% YoY, an outcome of 5% YoY revenue decline in HI segment and 3% YoY revenue growth for hair care segment (against run-rate of 14% over last 4 quarters).

International business segment logged constant currency (CCY) growth of 6% YoY with Indonesia (-6% CCY) and Africa (7% CCY) both on slightly weaker footing. To support new launches, ad spends expanded 70bps YoY, a right strategy in our view. Going ahead, we believe the building blocks are in place in terms of innovation and new launches pipeline, which will bolster the company’s positioning and spur market share gains too. Maintain ‘BUY

2:29 PM

Zenith Exports, SORIL Holdings, Sadhana Nitrochem zoom up to 400% in a month

Three stocks – Zenith Exports, SORIL Holdings and Ventures and Sadhana Nitrochem – have seen their market price surge up to 400% in the past one month. While Zenith Exports has gained 376% from Rs 39 to Rs 186 levels, SORIL Holdings and Ventures has surged 138% to Rs 559 (Rs 235) and Sadhana Nitrochem is up by 100% at Rs 458 (Rs 229) on the BSE. READ MORE

2:16 PM

Global shocks likely to spike gold prices this year, says GFMS report

GFMS Thomson Reuters has painted a bullish outlook for the global price of gold this year. The average so far has been $1,360 an ounce, it said, and could “potentially briefly approach a 2018 peak towards $1,500/oz on any exogenous shocks later in the year”.

 

The price at present is $1,312 an ounce. The agency sees the geopolitical climate and equity markets as supportive for gold’s role as a risk hedge. Then, political uncertainty such as on Britain’s exit talks from the European Union, beside tensions in West Asia and North Africa. America is set to announce sanctions on Iran, further stoking the price of crude oil. READ MORE

2:01 PM

Market Check

 

S&P BSE Sensex	35,367.81		0.43%
Nifty 50	10,751.75		0.32%
S&P BSE 200	4,695.86		0.18%
Nifty 500	9,429.60		0.10%
S&P BSE Mid-Cap	16,564.36		-0.43%
S&P BSE Small-Cap	18,124.34		0.08%

1:48 PM

Bond yields up 7.65% after RBI revises open market purchase securities list

India’s benchmark 10-year bond yield jumped in early trade on Wednesday after the central bank revised the list of securities it plans to buy back from the market at its open market purchase of debt on May 17.

 

The Reserve Bank of India on Tuesday removed the 6.84 per cent 2022 bonds from the list of government securities that it had announced it would buy at the OMO. This particular paper had been selected for a sale on May 11 as well and was seen by traders as a signal to support the government’s sovereign borrowing programme. READ MORE

1:34 PM

Tata Motors up 4% after rise in JLR April retail sales

Shares of Tata Motors have moved higher by 4.4% to Rs 347 per share on the BSE after the company owned car-maker in UK, Jaguar Land Rover (JLR) reported 11.9% year on year (y-o-y) growth in total retail sales of 45,180 vehicles in April 2018.
 

Sales were primarily driven by the introduction of new models including the Range Rover Velar (winner of the 2018 World Car Design of the Year award), Land Rover Discovery and the Jaguar E-PACE, the company said in a press release. READ MORE

1:20 PM

MARKET CHECK

12:45 PM

Rupee at fresh 15-month low, plunges 37 paise to 67.45 against US dollar

The rupee plunged by 37 paise to 67.45 against the US dollar in early trade today following surging demand for the greenback as crude oil prices zoomed past USD 76 per barrel level amid foreign capital outflows.

 

Forex dealers said the dollar strengthened against major global currencies overseas as crude oil prices rallied and pushed Treasury yields higher after US President Donald Trump pulled out from the international nuclear deal with Iran. READ MORE

12:33 PM

Value offers spice up growth at Jubilant FoodWorks

 

Jubilant FoodWorks ended 2017-18 on a strong note, with its March quarter numbers beating estimates on all counts. Despite a lower base from the year-ago quarter, it reported 27.3 per cent increase in revenue, aided by a strong 26.5 per cent growth in same-store sales (SSS), its highest in six years for its core Domino’s Pizza business.

 

After a muted 0.6 per cent average SSS growth over FY14-17, things have improved since the beginning of FY18. Growth improved 6.5 per cent at the start of the year and increased to 18 per cent in the December quarter. READ MORE
 

12:20 PM

MUST READ Asian emerging markets are open for business but the terms may be tough

Asia’s biggest emerging markets are flinging open their doors to court overseas investors, but there’s a catch -- and it’s a big one. China, India and Malaysia have pledged to open up channels for foreign money to flow through their markets, with policy makers and heads of state publicly proclaiming their wish to be full-fledged members of the global financial system READ MORE

12:17 PM

Prabhudas Lilladher on Exide

Continued growth in the automotive and industrial segment has been impressive and further gains in the unorganized and replacement market post GST implementation has helped Exide lower its dependence on the declining inverter/UPS segment. Introduction of the cheaper brand Dynex has helped increase market share in the LCV and Tractor segment.

Increased traction in the e-Rickshaw and solar batteries will further aid revenues in the near-to-medium term. Management's focus on cost control and technology upgradation to improve performance has impacted margins positively and coupled with now softening lead prices (down 7% in Q1FY19TD over Q4FY18) will boost margins in the near term. We increase our margin estimates for FY19/20E by 80bps/110bps, respectively and maintain "Accumulate" with a price target of Rs281, based on 20xMar'20E standalone EPS plus value of investments.

12:15 PM

Market Check

 

S&P BSE Sensex	35,264.95		0.14%
Nifty 50	10,726.35		0.08%
S&P BSE 200	4,686.71		-0.02%
Nifty 500	9,416.70		-0.03%
S&P BSE Mid-Cap	16,574.30		-0.37%
S&P BSE Small-Cap	18,123.43		0.08%

12:00 PM

HEG surges 9% on robust Q4 results

Shares of HEG have moved higher by 9% to Rs 3,198 per share, extending their past three days 5% gain on the BSE, after the company reported net profit of Rs 6.34 billion in March quarter (Q4FY18), on back of strong operational income. It had posted net loss of Rs 34 million in year ago quarter. The company engaged in graphite electrodes business has seen its operational revenues grow nearly five-fold at Rs 12.92 billion in Q4FY18 as against Rs 2.67 billion in Q4FY17. READ MORE

11:45 AM

Deccan Gold Mines zooms 20% after Supreme Court verdict on Hutti gold mines

Shares of Deccan Gold Mines were locked in upper circuit of 20% at Rs 62 per share, also its 52-week high on the BSE, after the positive verdict from the Supreme Court on Hutti gold mines. In past three trading sessions, the stock has outperformed the market by surging 43% from Rs 43.35 on Friday, May 4, 2018, as compared to 1% rise in the S&P BSE Sensex. READ MORE

11:30 AM

Lack of Wall Street back-office deters crypto investments

Mundane back-office concerns are giving pause to potential investors in digital currency hedge funds who have otherwise warmed up to the volatile asset class.

 

Traditional custodian banks such as Bank of New York Mellon Corp and State Street Corp do not yet handle crypto assets like bitcoin. That means hedge funds have been forced far from Wall Street to places like Springfield, Pennsylvania, or Murray, Kentucky, to find auditors, custodians and record-keepers, according to fund disclosures and executives. READ MORE

11:14 AM

Nomura on ICICI Bank

ICICI’s 4QFY18 performance was better than weak expectations, driven by: 1) ~90% of the corporate slippages coming from the declared stress book; and 2) core PPOP trends holding up in spite of large slippages.

With Rs 130bn of non-NPA stress (2.5% of FY18 loans), we believe we are getting closer to the end of the recognition cycle and, with some provisioning catch-up in FY19F, we expect the bank to get to normalised ROEs (excluding subs) of 13-14% by FY20F. FY19F earnings are cut by 33% (ramp-up in coverage) but FY20F earnings are up 4.5%.

We increase our TP to Rs 400/share (implying 1.7x Jun-20F book, 38% potential upside) with subsidiaries valued at Rs 130/share (holding discount of 15%). The current valuation, at 1.1x Mar-20F book, is undemanding.

11:09 AM

Delivery-based volumes hit over eight - year low

Average monthly stock delivery volumes on the BSE and NSE have dipped to 35.6 per cent in April, the lowest since November 2009. In April 2018, a little over one-third of the total traded quantity was converted into delivery, as compared to over half of the traded shares converted into delivery in March 2017.

 

According to the month-wise data compiled by Business Standard Research Bureau, the delivery ratio---the percentage of shares actually changing hands in relation to the total traded quantity — was about 35.6 per cent in April, the lowest in nearly eight years. READ MORE

10:56 AM

Mutual fund equity assets top Rs 8 trillion, shows Amfi data

ssets under management (AUM) for equity mutual funds (MFs) went past Rs 8 trillion for the first time in April, shows data released by the Association of Mutual Funds in India (Amfi). Assets for equity schemes, which include arbitrage funds and equity-linked savings schemes (ELSS), have soared 40 per cent in the past one year.

 

Overall, AUM for the industry has grown 20 per cent in the past year, to a record high of Rs 23.3 trillion. Equity schemes have been able to grow at a much faster clip, thanks to robust net inflow and the up-move in the market. READ MORE

10:43 AM

OMCs under pressure as Trump dumps Iran nuclear deal; HPCL falls 5%

Shares of oil marketing companies (OMCs) were under pressure falling by up to 5% on the BSE in early morning trade as crude oil prices jumped back to near 3 1/2-year highs on Wednesday.
 

OMCs like Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) were down between 3% and 5%, while Chennai Petroleum Corporation (CPCL) and Mangalore Refinery & Petroleum were down 1% to 3% on the BSE. READ MORE

10:30 AM

Be selective while investing in metal stocks, say analysts

After witnessing a rally of 13.4 per cent in financial year 2017-18 (FY18), the Nifty Metal index has added another 5.2 per cent thus far in FY19. The up move in metal counters, analysts say, has been fueled by an upswing in base metal prices and crude oil, which they believe is likely to continue. From an investment perspective, they do caution against the steep valuation at which some of these stocks are trading at. READ MORE

10:15 AM

Sebi rejects Kotak panel's data sharing norms, governance proposals

The Securities and Exchange Board of India (Sebi) rejected a key proposal made by the Uday Kotak committee for sharing of unpublished and price-sensitive information (UPSI) with controlling shareholders, reveal its board meeting agenda papers. “It is felt that giving any shareholder preferential treatment compared to other shareholders for getting access to information would have far-reaching implications and therefore may not be desirable. READ MORE

10:00 AM

Market Check

 

S&P BSE Sensex	35,227.65		0.03%
Nifty 50	10,719.80		0.02%
S&P BSE 200	4,687.66		0.00%
Nifty 500	9,418.35		-0.02%
S&P BSE Mid-Cap	16,596.95		-0.23%
S&P BSE Small-Cap	18,147.00		0.21%

9:47 AM

Interview of the Day It's not synergy, but entrepreneurship, says Shree Renuka Sugars MD

Eighteen years after dedicated work to bring Shree Renuka Sugars (SRSL) to the level of India’s largest sugar refiner, promoter and managing director Narendra Murkumbi is moving out of the company and selling his controlling stake to global multinational Wilmar International. He looks back and talks of the future in an interview with Dilip Kumar Jha. CLICK HERE TO READ MORE

Narendra Murkumbi