MARKET WRAP: Nifty gains 1%, ends above 10,600; auto, metal stocks gain

Benchmark indices rose on Friday after rupee recovered from its a 16-month low against the dollar.

3:39 PM

Top gainers in the Nifty Auto index

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
EXIDE INDS.	257.35	243.35	14.00	5.75	1888498
TVS MOTOR CO.	565.10	542.55	22.55	4.16	1654489
BHARAT FORGE	666.20	642.50	23.70	3.69	1104923
MOTHERSON SUMI	312.45	301.60	10.85	3.60	5387805
APOLLO TYRES	282.00	272.60	9.40	3.45	1420758
EICHER MOTORS	30200.00	29515.40	684.60	2.32	31929

3:37 PM

Nifty Metal index gains over 2%: Top gainers in the pack

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
HINDALCO INDS.	245.05	234.10	10.95	4.68	15143154
WELSPUN CORP	136.70	130.80	5.90	4.51	206370
S A I L	72.65	69.90	2.75	3.93	8792139
JSW STEEL	326.00	314.15	11.85	3.77	5182029
TATA STEEL	567.75	548.20	19.55	3.57	8886184
JINDAL STEEL	235.60	227.65	7.95	3.49	7281781

3:35 PM

Sectoral Trend

3:34 PM

Top Sensex gainers and losers

3:32 PM

Market at Close

The S&P BSE Sensex ended at 34,925, up 262 points, while the broader Nifty50 index settled at 10,605, up 91 points

3:23 PM

Global Markets: Shares recover as North Korea's conciliatory stance calms nerves

 

Global shares were on the mend on Friday as Pyongyang’s measured response to US President Donald Trump’s announcement to call off a key summit with North Korea healed market sentiment, although investors remained cautious.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan managed to eke out 0.1% gains, while South Korea’s Kospi pared much of its earlier loss of 0.9% to last trade down 0.2%. Japan’s Nikkei was up 0.1%.

(With inputs from Reuters)

 

3:14 PM

Volume Toppers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
SUZLON ENERGY	9.10	0.04	0.44	17033321
REL. COMM.	14.35	0.20	1.41	8260940
IFCI	18.90	2.05	12.17	4348325
IDBI BANK	64.70	-2.50	-3.72	4063919
JP ASSOCIATES	15.85	0.20	1.28	3121064

3:06 PM

Stocks at 52-week high

COMPANY	PRICE( )	52 WK HIGH	CHG( )	CHG(%)
BAJAJ FINSERV	6047.40	6073.65	213.80	3.66
BERGER PAINTS	297.60	299.60	4.80	1.64
BRITANNIA INDS.	5825.55	5850.00	111.90	1.96
INFOSYS	1230.55	1248.00	8.70	0.71
JUBILANT FOOD.	2660.15	2694.50	9.65	0.36

3:00 PM

Gateway okays acquisition of Blackstone stake in arm; stock up 20%

 

Gateway Distriparks is locked in upper circuit of 20% at Rs 199 on the BSE after the company said its board approved the acquisition of entire shareholding held by Blackstone in Compulsorily Convertible Preference Shares (CCPS) and equity shares in Gateway Rail Freight for a total consideration of Rs 8.10 billion.

 

The acquisition of entire shareholding will take Gateway Distriparks holding in Gateway Rail Freight to 99.80%. READ MORE

2:44 PM

Europe Check

European stocks are trading higher, as market participants' fears were calmed by North Korea's response to President Donald Trump's decision to cancel a landmark summit. The pan-European Stoxx 600 was up around 0.4%, with almost all sectors and major bourses in positive territory

2:30 PM

IFCI recovers Rs 2.8 bn from Bhushan Steel, allotted over 579,000 shares

 

Infrastructure lender IFCI has recovered Rs 2.80 billion and has been allotted over 579000 equity shares of debt-ridden Bhushan Steel (BSL), which has been acquired by Tata Steel, under the insolvency process.

 

"IFCI as one of the financial creditors to BSL had filed its claim with the resolution professional which was duly accepted. Under the resolution plan (RP) envisaging payment of Rs 352 billion to all the financial creditors, IFCI has since received its share of Rs 2.80 billion," IFCI said in a BSE filing. READ MORE

2:16 PM

As Singapore and India fight over futures trading, investors' worries grow

 

A fight between Singapore Exchange and National Stock Exchange of India over derivatives contracts is threatening to end a popular way of hedging Indian shares.

 

The battle, which went to court in Mumbai this week, has left traders scrambling to find new ways to manage their exposure to the US$2.3 trillion market, one of Asia's biggest.

 

The dispute broke into the open in February after NSE said it was axing licensing agreements with overseas bourses. READ MORE

2:01 PM

Market Check

S&P BSE Sensex	34,918.97		0.74%
Nifty 50	10,600.50		0.82%
S&P BSE 200	4,600.81		1.01%
Nifty 500	9,203.25		0.96%
S&P BSE Mid-Cap	15,867.68		1.32%
S&P BSE Small-Cap	17,120.59		0.98%

1:45 PM

Avenue Supermarts extends gain as founder RK Damani completes 1% stake sale

 

Shares of Avenue Supermarts that runs the D-Mart retail stores was trading higher by 5% at Rs 1,476, extending its Thursday’s 3.3% gain on the BSE, after the founder Radhakishan Damani completed sale of 6.24 million shares, or 1%, of total equity of the company for achieving minimum public share holding.

 

“Radhakishan Shivkishan Damani has completed sale of 6.24 million equity shares of the Company, constituting 1% of the paid-up equity share capital of the Company, between May 21, 2018 and May 24, 2018,” Avenue Supermarts said in a BSE filing. READ MORE

1:30 PM

From hope to happiness: Analysts find SBI's FY20 plan credible

 

State Bank of India (SBI) seems to be taking the Rs 77.18-billion loss in the March 2018 quarter in its stride with the bank’s chairman Rajnish Kumar expecting better days ahead. “The year gone by was one of despair, the current year is one of hope and 2019-20 will be the year of happiness,” Kumar said.

 

He expects gains from higher credit growth, robust financial profile and control on costs. READ MORE

1:20 PM

Anand Rathi on ENIL

On the 1% y/y drop in overall volumes and on the high base (Q4 FY17 revenue growth: 18.6% y/y), ENIL’s revenue was `1,574m (down 2.8% y/y, 3% below expectations).

The 21% EBITDA margin expanded 148bps y/y due to lower marketing and other expenses. Driven by economic tailwinds, the consequent higher utilisation, client-specific issue behind, price hikes at established stations, and as new stations start contributing, we expect the company to register strong growth ahead. We largely maintain our earnings estimates and our Buy rating with an unchanged target of `870. Our 19x target multiple is at a 10% discount to RadioCity

1:19 PM

Prabhudas Lilladher on Mahanagar Gas

Going forward, CNG volumes is likely to remain improve on the back addition of new three wheelers along with geographical expansion to Raigad and Karjat. Also, government’s push for PNG’s domestic connections will support volumes. Tailwinds of cheaper domestic gas, opportunities in two-wheeler space, along with favourable demand traction from new geography, will drive earnings.

We lower our earnings by 5% for FY19/20E to factor in lower margins. MGL remains a play on increased gas penetration from rising vehicle and PNG penetration. Reiterate BUY with a PT of Rs1,179 (Rs1,300 earlier)

1:18 PM

CLSA on Telecom sector

In FY18, the sector added 136m 3G/4G subscribers to 395m. Jio had a 57% share of incremental 3G/4G additions but Bharti Airtel too added 36m (10m in FY17) and Idea-Vodafone combined added 37m (12m in FY17). We forecast sector 3G/4G subscribers to grow over 60% to 640m by Mar-20. This should drive Arpu recovery as bundled plan tariffs are 2x incumbents’ voice Arpu (Rs70-80/p.m.). Bharti Airtel is our preferred sector pick.

1:16 PM

MARKET COMMENT

On analysis of the results announced so far of 298 of the BSE 500 stocks excluding financials, sales were up 10% YoY and 9% qoq, Operating profit were up 13% YoY and 4% QoQ, Tax outgo was up 35% YoY and contracted 2% QoQ, with PAT up 43% YoY and 15% QoQ. For the financials it had been a mixed bag, with some of the corporate banks being hit with large provisions leading to they seeing severe contraction in net profit.

(Source: Prabhudas Lilladher)

1:03 PM

Top BSE500 gainers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
SUDARSHAN CHEM.	504.45	56.95	12.73	97190
IFCI	18.85	2.00	11.87	2603957
J KUMAR INFRA	259.00	19.30	8.05	8598
MULTI COMM. EXC.	774.00	54.40	7.56	236216
JAIN IRRIGATION	104.75	6.85	7.00	788211

12:46 PM

National Peroxide hits record high on robust Q4 results, Rs 65 dividend

 

Shares of National Peroxide hit a record high of Rs 3,140, up 13% on the BSE in intra-day trade after the company reported a more than seven-fold jumped in its standalone net profit at Rs 373 million for the fourth quarter ended March 2018 (Q4FY18). The company engaged in manufacturing of hydrogen peroxide had profit of Rs 51.7 million in the same quarter last fiscal.

 

Operational revenue during the quarter under review grew 41% to Rs 974 million against Rs 691 million in the corresponding quarter of previous fiscal. READ MORE

12:30 PM

BSE joins hands with Brink's India to support bullion and commodities trade

 

Leading stock exchange BSE on Thursday said it has joined hands with Brink's India Pvt Ltd for supporting its much-awaited launch of bullion - gold and silver - commodities trading.

 

Under the agreement, Brink's would provide vaulting and logistics services to BSE for the purpose of storage of gold and silver commodities at various places in India, the exchange said in a statement. READ MORE

12:15 PM

Markets at noon

S&P BSE Sensex	34,836.91		0.50%
Nifty 50	10,558.40		0.42%
S&P BSE 200	4,584.86		0.66%
Nifty 500	9,163.65		0.53%
S&P BSE Mid-Cap	15,806.60		0.93%
S&P BSE Small-Cap	17,062.78		0.64%

12:00 PM

Q4 results: Market share concern weighs on Bata India

 

In spite of a strong set of numbers for the March quarter (Q4), shares of Bata India have declined 0.4 per cent over two days. In fact, the stock has underperformed the benchmark BSE Sensex and peers in the past month (down four per cent), due to concerns over loss of market share.

 

In a note after the results, analysts at Dolat Capital said their channel checks revealed despite no demand hiccups and Bata faced store-level inventory management issues, like unavailability of sizes for its key brand, Hush Puppies. READ MORE

11:44 AM

Buzzing Stock

Shares of Pidilite Industries touched 52-week high of Rs 1,136.35, rising more than 5% on the back of strong March quarter numbers.

 

The company's Q4 net profit rose 57.4% at Rs 2.47 billion against Rs 1.57 billion in a year ago period. Revenue of the company rose 5% at Rs 14.85 billion versus Rs 14.04 billion.

11:30 AM

Liquor shares rally on good Q4 show

 

Shares of liquor companies were in focus with frontline stocks like United Breweries (UBL), United Spirits and Radico Khaitan rallying between 5% and 7% on the BSE after reporting good set of numbers in the fourth quarter ended March 2018 (Q4FY18).

 

UBL (up 7% to Rs 1,258) and Radico Khaitan (up 7% at Rs 456) have hit their respective new highs on the BSE in intra-day trade on Friday. READ MORE

11:15 AM

Motherson Sumi's future hinges on foreign arms

 

The Motherson Sumi stock shed nearly 5 per cent on Thursday on muted margins, new order growth and higher valuations. Consolidated margins at 9.7 per cent in the March quarter (Q4) was 130 basis points (bps) lower year-on-year (y-o-y) because of higher start-up costs due to a new plant, as well as the lag effect of passing on higher raw material costs.

 

The India business, which is its most profitable, saw a margin decline of 201 bps y-o-y to 18.5 per cent while the SMP (Samvardhana Motherson Peguform) business, too, saw a decline of 30 bps over the year-ago quarter. READ MORE

11:00 AM

MCX rallies 8% on merger talks with NSE

 

Shares of Multi Commodity Exchange of India (MCX) have rallied 8% to Rs 775 per share on the BSE in early morning trade after reports suggested that the commodity exchange has entered into merger talks with the National Stock Exchange (NSE) ahead of the implementation of the universal exchange framework in October. READ MORE

 

10:54 AM

S&P BSE Auto index up over 1% in late morning deals. Here are the top gainers:

COMPANY	LATEST	CHG(RS)	CHG(%)	WEIGHT IN INDEX (%)
MOTHERSON SUMI	308.85	7.20	2.39	3.41
TATA MOTORS	293.60	4.65	1.61	19.41
EICHER MOTORS	29945.45	462.10	1.57	5.18
BHARAT FORGE	654.00	9.75	1.51	2.79
HERO MOTOCORP	3533.50	47.25	1.36	9.22

10:52 AM

Anand Rathi on Music Broadcast

FY18 revenue grew 10% y/y to Rs 2,982 million, helpedby 8% volume growth (outpacing the industry’s 5%), indicating its market-sharegain. The company is seeing a greater emphasis in advertisements from thegovernment, BFSI, auto and real estate. Ahead, greater utilisation in oldstations (in FY18, ~70%) as well as new stations, and yield improvement inlegacy stations augur well for the company. We expect 15.5% revenue CAGR in thenext two years. 

Greater utilisation and the earlier break-even thanexpected for new stations, coupled with revival in volumes augur well for thecompany. We retain our Buy rating with a new target price of Rs 530. Risk: Macro pressures on key advertising sectors.