MARKET WRAP: Sensex ends at record high of 36,985; hits 37k in intraday

Nifty, too, hits a record 11,185.85 in intraday trade before settling at 11,167 levels. SBI ralies over 6%.

5:02 PM

MARKET COMMENT Rahul Mishra, AVP (Derivatives), Emkay Global

This is the first expiry where unexpired future contracts will be physically settled (list of 45 such stocks is provided). Average rollover this time in these stocks is higher compared to their historical level (on an average 78% of the positions have been rolled compared to 52% last month). As a result of this Market wide roll over is also higher compared to historical level (61% v/s 53% last month). Nifty made a new intraday high of 11185 and we saw good buying on July Expiry

3:42 PM

Nifty PSU Bank settles 5.45 per cent higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
BANK OF INDIA	95.60	88.20	7.40	8.39
CANARA BANK	278.90	258.95	19.95	7.70
INDIAN BANK	354.25	331.90	22.35	6.73
SYNDICATE BANK	43.20	40.80	2.40	5.88
ST BK OF INDIA	287.70	271.85	15.85	5.83

3:39 PM

Nifty sectoral gainers and losers of the day

3:37 PM

BSE Sensex: SBI, ICICI Bank, Powergrid among top gainers of the day, Maruti top loser

3:34 PM

Market at close

The S&P BSE Sensex that breached 37,000 mark for the first time ever to hit an intra-day high of 37,027 levels, ended a tad lower at 36,985 levels, up 126 points. The broader Nifty50 index settled at 11,167, up 35 points. The 50-share index had surged to a high of 11,185 levels in intra-day deals.

3:16 PM

YES Bank falls 6% on profit booking post Q1 results

Shares of YES Bank have slipped 6% to Rs 359 per share on the BSE on profit bookings after the bank reported 30.5% year on year (yoy) jumped in net profit at Rs 12.6 billion in June quarter (Q1FY19) on the back of healthy growth in net interest income (NII) & other income. READ MORE

3:04 PM

Elara Capital on Sanofi India

We marginally increase our EPS by 4.5% in CY18E and by 2.2% in CY19E. At the CMP, the stock is trading at a valuation of 17x CY19E EV/EBITDA, which is at a discount to other MNC peers. Given the recent run-up in the stock price, we revise our rating to Accumulate from Buy with a new target price of Rs 6,130 from Rs 6,000 on 32x (unchanged) CY19E P/E. Any regulatory headwinds to drug pricing in domestic market is key risk to our call.

2:57 PM

COMMODITY WATCH: Sugar

Backed by Government measures, domestic sugar prices have recovered to around Rs. 33,500/MT (ex-mill UP) from a low of Rs. 26,500/MT in May. Recent Government measures such as creation of 3 million MT buffer stock and fixing of minimum selling price (MSP) for sugar at Rs. 29,000/MT, has helped the sugar industry.

However, as per an ICRA note, the sustainability of the same is uncertain, given the likelihood of another year of bumper production in SY2018-19. Further, the hike in FRP is likely to result in margin pressures and provide further impetus to farmers to sow sugarcane, which is likely to exacerbate the oversupply conditions

2:46 PM

Bank stocks trade mixed

COMPANY NAME	LATEST	HIGH	LOW	CHG ( )	CHG(%)
ICICI BANK	285.05	286.15	273.20	10.45	3.81
PUNJAB NATL.BANK	80.70	81.70	79.75	1.45	1.83
ST BK OF INDIA	283.80	285.75	273.55	12.35	4.55
KARUR VYSYA BANK	98.00	99.85	96.65	-1.00	-1.01
YES BANK	362.85	386.35	358.75	-20.60	-5.37

2:44 PM

TOP LOSERS ON THE BSE TODAY

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
INTELLECT DESIGN	193.05	-16.85	-8.03	142382
JAGRAN PRAKASHAN	125.00	-10.75	-7.92	50764
SECURITY & INTEL	1060.05	-76.70	-6.75	6277
YES BANK	361.10	-22.35	-5.83	1393947
AVANTI FEEDS	433.25	-26.15	-5.69	79263

2:43 PM

Centrum on Glaxo SmithKline Pharma

We maintain Sell rating on GlaxoSmithKline Pharma (GSK) and revise our TP to Rs1,900 (earlier Rs1,650) based on 24x March’20E EPS of Rs79.1. GSK’s Q1FY18 results were in-line with our estimates. GSK revenue grew by 21%YoY, EBIDTA margin improved 1,590bps to 19.1% and net profit before EO item grew 596% YoY on a lower base.

GSK’s major brands grew by high single digit to double digit during the quarter. That said, the company has a strong presence in the vaccines segment and launched Infanrix Hexa during Q1FY19

2:30 PM

Crowd thins at the last place to trade shares of RSE-listed companies

The herd is thinning at the last place you could buy and sell shares of companies that were previously listed only on regional stock exchanges (RSEs). The latter began to shut down over the past few years. By now, firms transferred from there to the dissemination board of established exchanges have seen a number of exits. READ MORE

2:13 PM

Macro economy gives confusing signals to MPC on policy rate front

The Monetary Policy Committee (MPC) will gauge weakening macroeconomic parameters like surging inflation, subdued industrial growth, and widening trade deficit to take a call on the policy rate in its three-day meeting commencing July 30. READ MORE

2:00 PM

Kesoram Industries refutes allegation of short-changing public shareholders

Basant Kumar Birla-promoted Kesoram Industries on Thursday refuted all allegations of "short-changing" public shareholders and listed the steps taken by the management to save the company from becoming sick or potentially sick over the past few years. READ MORE

1:44 PM

Maruti Suzuki dips 4% post Q1 results

Shares of Maruti Suzuki India (MSIL) have slipped 4% to Rs 9,391 per share on the BSE after the company reported lower-than-expected 26.9% growth in net profit at Rs 19.75 billion in June quarter (Q1FY19). The country’s largest car maker had profit of Rs 15.56 billion in year ago quarter. READ MORE

1:28 PM

RESULT IMPACT Maruti slips 2.7% post Q1FY19 numbers on the NSE

1:26 PM

EARNINGS ALERT (Image source: Company release)

Maruti Q1FY19 performance (yoy change)

1:23 PM

EARNINGS ALERT: Maruti says: While the operating profit increased by 59.7%, the net profit increased by 26.9% on account of lower non-operating income due to mark-to-market impact on the invested surplus, compared to last year

1:22 PM

InterGlobe Aviation down for seventh straight day; hits 52-week low

Shares of InterGlobe Aviation, operator of IndiGo, are trading lower for the seventh straight day, down 2% at Rs 1,002, in otherwise firm market. The stock is quoting at its 52-week low level, and has dipped 11% from Rs 1,122 on July 17 as media reports suggested that the company has grounded five A320 aircraft in Delhi. READ MORE

1:22 PM

EARNINGS ALERT: Maruti Suzuki's net profit in Q1 (2018-19) at Rs 19,753 million, up 26.9% compared to the same period last year.

1:06 PM

Facebook stock falls 24 percent on forecast for slowing growth, rising expenses

Facebook Inc's stock fell as much as 24 percent after hours on Wednesday over concerns about the impact of privacy issues on the social media company's business, with executives warning that revenue growth would slow and expenses would rise. The plummeting stock price wiped out about $150 billion in market capitalization in under two hours. READ MORE

12:51 PM

COMPANY UPDATE Kesoram Industries refutes allegation of short-changing public shareholders

Basant Kumar Birla-promoted Kesoram Industries on Thursday refuted all allegations of "short-changing" public shareholders and listed the steps taken by the management to save the company from becoming sick or potentially sick over the past few years.

 

Minority shareholder Janardan Kothari had made the allegations at the company's annual general meeting. Subsequently, stock exchanges had sought a clarification based on reports READ MORE HERE

12:50 PM

BS SPECIAL Nifty50 index may be on course for the 11,400 level

The markets opened in positive territory on Thursday, with the Sensex breaching the 37,000 mark for the first time ever in early trade. On the National Stock Exchange (NSE), the Nifty50 index, too crossed its previous record high to scale a fresh high of 11,179.60 levels in intra-day trade. We had stuck our neck out at the beginning of the month and said that the markets will reach a new high before the Independence Day READ MORE HERE

12:39 PM

Equirus Securities on L&T Finance Holdings

With Rs 18bn of provisions for wholesale stressed assets adjusted in opening reserves, 1QFY19 and subsequent results will be a true reflection of the company’s operations. With books cleaned, we revise estimates to factor in IND-AS based assumptions, leading to FY19E/FY20E RoEs of 19.5%/19.3% with NIM/Loan growth of 4.8%/21% in each year. We UPGRADE to LONG (from ADD) with a revised SOTP-based Sep’19 target of Rs 215 (Rs 205 earlier) at 2.9x Sep’19 BV.

12:36 PM

Edelweiss on Bhel

We retain ‘BUY’ on account of improved P/L and balance sheet potential over the ensuing two-three years given sustained operating margin improvement from current lows and reasonable rise in cash flow. However, we revise down our DCF-based target price to Rs 90 (Rs 110 earlier) as we prune our thermal market size estimate given government’s sharpened focus on renewable and a higher risk-free rate of 8%, in line with our house call.

11:58 AM

TOP CONTRIBUTORS TO SENSEX'S GAIN TODAY

COMPANY	LATEST	CHG(RS)	CHG(%)	FREE FLOAT MKT CAP (RS CR)	CONTRIBUTION (POINTS)
ICICI BANK	282.55	7.95	2.90	149832.07	39.68
ST BK OF INDIA	283.75	12.30	4.53	71541.97	32.82
HDFC BANK	2188.30	14.60	0.67	210795.90	24.64
ITC	288.40	2.35	0.82	261575.10	16.21
H D F C	2007.00	6.60	0.33	193778.42	8.95
TATA MOTORS	261.75	4.45	1.73	73217.95	7.40

11:56 AM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	36984.40	36858.23	126.17	0.34
	15055.45	14996.19	59.26	0.40
	15754.29	15644.91	109.38	0.70
	16309.59	16255.43	54.16	0.33
	4329.93	4314.39	15.54	0.36

11:56 AM

Prabhudas Lilladher on Kansai Nerolac

We estimate CAGR of 14% in volumes, 17.7% in revenues and 16.9% in PAT over FY18-20. Kansai is currently trading at 36.7xFY20 EPS. We rollover and value the stock at 40xJune20 EPS of Rs13.7 and arrive at a target price of Rs549 (Rs526 earlier). We believe current input cost scenario provides an opportunity to accumulate stock for medium to long term gains. Retain Accumulate.

11:55 AM

Motilal Oswal on Hero MotoCorp

We cut FY19/20E EPS by 4-5% to factor in lower spare sales, higher RM cost and a higher tax rate. The stock trades at 16.1x/14.2x FY19/20E EPS. We lower our valuation multiple to 15x (v/s 16x earlier), a 10% discount to 10-year average P/E, to factor in higher competitive intensity in the 2W industry. Maintain Neutral with a target price of Rs 3,442.

 

11:54 AM

Larsen & Toubro: Concall takeaways from Motilal Oswal

Key highlights: (a) Private sector capex is still muted – a revival is at least two years away. (b) Order opportunity of INR5.4t for the 9MFY19 period. (c) NWC to sustain at ~20% of sales. (d) Domestic tendering activity remains strong; overseas tendering improving as well. Valuation view: Maintain Buy with an SOTP-based target price of Rs 1,540 (E&C business at 22x FY20E EPS, at the higher end of the five-year trading band, to which we add Rs 530 for subsidiaries)