MARKET WRAP: Indices end flat ahead of July F&O expiry; SBI up over 1%

Among sectoral indices, the Nifty PSU Bank index ended 1% higher led by a rise in Canara Bank, Indian Bank and State Bank of India.

3:51 PM

Nifty PSU Bank ends 1.38% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
CANARA BANK	258.95	252.80	6.15	2.43
INDIAN BANK	331.90	325.05	6.85	2.11
ST BK OF INDIA	271.85	266.85	5.00	1.87
UNION BANK (I)	81.85	81.25	0.60	0.74
BANK OF INDIA	88.00	87.85	0.15	0.17

3:47 PM

Nifty sectoral gainers and losers of the day

3:45 PM

BSE Sensex: SBI, Tata Steel, Vedanta among top gainers

3:31 PM

Market at close

 

The S&P BSE Sensex ended at 36,858, up 33 points while the broader Nifty50 index settled at 11,132, down 2 points.

3:15 PM

Info Edge (India) rallies 10% post Q1 results; stock hits new high

Info Edge (India) has moved higher to its record high of Rs 1,492, rising 10% and extending its 8% rally on the BSE in the past two days, after the company reported a standalone net profit of Rs 630 million in June quarter (Q1FY19). The profit included Rs 160 million relating to the diminution in the carrying value of Canvera. The company posted profit of Rs 642 million in year ago quarter. READ MORE

3:06 PM

INDEX WATCH

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	36889.88	36825.10	64.78	0.18
	15013.35	14994.47	18.88	0.13
	15663.27	15664.48	-1.21	-0.01
	16268.65	16218.54	50.11	0.31
	4319.25	4313.92	5.33	0.12

2:53 PM

IPO WATCH HDFC AMC IPO opens for subscription today. Should you invest?

The initial public offer (IPO) of HDFC Asset Management Company (AMC) opens today for subscription. The issue, which remains open till July 27, comprises of up to 25457555 equity shares of face value of Rs 5 each. The price band for the offer is fixed at Rs 1,095 - 1,100 per share. Bids can be made for a minimum lot of 13 equity shares and in multiples of 13 equity shares thereafter. HDFC AMC aims to raise Rs 27.87 billion at the lower end of this price band and Rs 28 billion at the higher end READ MORE

2:50 PM

EARNINGS ALERT Bhel Q1 net up 93% to Rs 1.55 bn, chairman stresses prudent strategies

Power equipment maker BHEL on Wednesday posted about 93 per cent jump in standalone net profit to Rs 1.55 billion in the first quarter of the current financial year on higher revenues. Its net profit was Rs 808.2 million in the April-June quarter of last financial year, 2017-18, the company said in BSE filing READ MORE

2:49 PM

Reliance Securities on Alkem Labs

We expect ALKEM’s domestic formulations biz (71% of sales) to clock 14% CAGR through FY18-20E driven by increasing focus on Chronic/OTC segments and new launches in the key therapeutic segments. The company generates over 85% of its total EBITDA margin from domestic business.

We expect EBITDA to clock 24% CAGR (EBITDA margin expansion by 320bps to 19%) through FY18-20E driven by better product-mix and improved field force productivity and positive operating leverage. We expect stock to command premium over its peers owing to healthy return ratios (RoCE at 20% and RoE at 18.0% by FY20E) and higher exposure to India business. Recommend BUY with a target price of Rs 2,360

2:30 PM

Gold prices edge up ahead of US-EU trade talks

Gold prices inched higher on Wednesday as the dollar held steady ahead of a meeting between the U.S. and European Commission presidents to discuss trade-related issues.

Spot gold was up 0.2 per cent at $1,226.19 an ounce. US gold futures for August delivery were 0.1 per cent higher at $1,226.20 an ounce. READ MORE

Gold

2:15 PM

Infosys, Indiabulls Ventures, Relaxo Footwears hit new high

Shares of Infosys, Indiabulls Ventures, Relaxo Footwears, Bajaj Finserv, NIIT Technologies and VIP Industries were among 11 stocks from the S&P BSE500 index hitting their respective new highs on the BSE on Wednesday. READ MORE

2:01 PM

Market Check

 

S&P BSE Sensex	36,898.97		0.20%
Nifty 50	11,148.65		0.13%
S&P BSE 200	4,776.90		0.18%
Nifty 500	9,470.20		0.21%
S&P BSE Mid-Cap	15,714.61		0.32%
S&P BSE Small-Cap	16,310.19		0.57%

1:47 PM

Vodafone reports slowdown in quarterly growth

Vodafone reported a slowdown in first-quarter organic service revenue on Wednesday, with tough trading in Italy and Spain taking the shine off the final set of results delivered by outgoing boss Vittorio Colao.

 

For the quarter, organic service revenue grew by 0.3 percent under its new IAS 18 accounting basis, slightly ahead of consensus forecasts at 0.2 percent. Using the old IFRS 15 system, it grew by 1.1 percent, down on the 1.6 percent growth it recorded last year. READ MORE

Vodafone

1:31 PM

Redeeming investments partially is more tax-efficient than dividend option

Priyesh Patel approached his mutual fund distributor to change the dividend option in a balanced fund to the growth option. Patel, who has been investing in the fund for about four years, was advised to stay put. The distributor’s reason: Changing from dividend to growth option will amount to the redemption of old units, which will attract tax. READ MORE

12:59 PM

Ahead of LIC deal, Moody's places IDBI Bank's long-term ratings for upgrade

Rating agency Moody's has placed IDBI Bank's long-term ratings under review for upgrade following LIC's intent to acquire a 51 per cent controlling stake in the ailing public-sector lender.

 

The review would focus on the exact amount of fresh capital that Life Insurance Corporation of India (LIC) plans to infuse and its impact on the capital adequacy of IDBI. READ MORE

12:42 PM

Strong volumes add colour to Asian Paints: Top line up 15%, net profit 30%

Amid improved demand and implementation of the goods and services tax (GST), stocks of Asian Paints soared by 26 per cent in the past three months, outpacing the BSE FMCG index growth of six per cent. READ MORE

12:33 PM

In the fast lane: Despite speed bumps, M&M bullish on big trucks market

Mahindra and Mahindra (M&M) sees the high operating costs facing transporters as an opportunity to sell more of its high tonnage trucks as the latter boasts of better fuel and operational efficiency as well as lower cost of ownership. READ MORE

12:15 PM

Hexaware Technologies slips 9% post Q2 results

Shares of Hexaware Technologies have slipped 9% to Rs 453 per share on the BSE after the information technology (IT) company reported a flat EBITDA margin at 15.6% in June 2018 quarter (Q2CY18). The company has reported year on year (YoY) margin decline from 16.2% in Q2CY17. READ MORE

12:03 PM

Markets at Noon

 

S&P BSE Sensex	36,865.65		0.11%
Nifty 50	11,126.20		-0.07%
S&P BSE 200	4,773.17		0.10%
Nifty 500	9,451.75		0.01%
S&P BSE Mid-Cap	15,696.88		0.21%
S&P BSE Small-Cap	16,299.23		0.50%

11:47 AM

This Adani Group stock zooms 100% in 17 trading sessions

Adani Green Energy (AGEL), an Adani Group company, is locked in the upper circuit for the fourth straight day, rising 10% to Rs 51.20. The stock has rallied more than 100% in past 17 trading days on the BSE and is trading at its highest level since its debut on the bourses on June 18, 2018. READ MORE

11:35 AM

Top gainers in BSE 500:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
NAVIN FLUO.INTL.	691.00	600.05	90.95	15.16
MULTI COMM. EXC.	816.65	768.00	48.65	6.33
FUTURE CONSUMER	47.30	44.60	2.70	6.05
JINDAL STAIN.	64.35	60.90	3.45	5.67
REL. COMM.	14.35	13.65	0.70	5.13

11:23 AM

Sebi bans Nava Diganta, 9 directors from markets for at least 4 years

Sebi has banned Nava Diganta Capital Services as also its nine current and former directors from the securities market for at least four years for illegally raising money, and directed them to refund it to the investors. READ MORE

11:12 AM

5 out of 8 insurance, MF IPOs trade 23% below issue price in aggregate

Investors who subscribed to the shares of companies engaged in insurance and mutual fund businesses through initial public offering (IPO) have lost their money, with five out of eight stocks underperforming the market since their listing. These five companies collectively raised Rs 344 billion through IPOs, which is currently valued 23 per cent lower at Rs 264 billion. READ MORE

11:00 AM

India to remain fastest-growing major economy, but oil poses risk: Poll

India will remain the fastest-growing major economy this year supported by increased government spending ahead of next year's general election, but rising oil prices pose the biggest downside risk, a Reuters poll of economists showed. READ MORE

10:46 AM

Sebi proposes three-phase process for re-classification of promoters

The Sebi on Tuesday proposed a three-phase process for re-classification of promoters as public shareholders. In the first stage, the concerned promoter shareholder or the company will have to file an application to the stock exchange requesting re-classification. In the next stage, the request will go to the board of directors. READ MORE

10:28 AM

Nifty Metal index up over 1.5 per cent

10:16 AM

HDFC Bank likely to take fund raising plan from Dalal Street to Wall Street

HDFC Bank is likely to take its fund raising plan from Dalal Street here to Wall Street. Sources say the bank prefers an issue of American Depository Receipts (ADR) over Qualified Institutional Placement (QIP) for its Rs 15.5-billion ($2.2 billion) equity raising exercise.

 

Attractive valuations and greater investor appetite is prompting the country’s highest-valued bank to go for overseas issuance. However, the foreign institutional investment ceiling could force it to also do a fourth of its fund raising in the domestic market. READ MORE

10:11 AM

CIMB on MindTree

We raise FY19F-21F EPS by 2-5% to factor in better revenues and change in currency assumptions. We maintain Reduce given the unfavourable risk-reward at current valuations, in our view. Our higher target price is based on 17.5x forward P/E (up from 16.5x for improving sales/margins and ROE), close to its mean of 1-year and 5-year average 1-year forward P/E. Higher-than-expected EBIT margins are a key upside risk.

10:10 AM

TOP CONTRIBUTORS TO SENSEX TODAY

COMPANY	LATEST	CHG(RS)	CHG(%)	FREE FLOAT MKT CAP (RS CR)	WEIGHT IN INDEX (%)
ADANI PORTS	399.55	8.05	2.06	36407.72	0.97
TATA STEEL	533.90	7.20	1.37	41503.30	0.71
HERO MOTOCORP	3141.85	40.40	1.30	40782.78	1.42
H D F C	2001.25	22.05	1.11	338261.27	7.92
BAJAJ AUTO	2673.80	23.00	0.87	39459.59	1.50

10:08 AM

Edelweiss on Symphony

Symphony (SYML) reported a lower-than-expected Q1FY19 top line, suggesting high sensitivity of volumes/profitability to the subdued air coolers business (due to a bad summer).

Key highlights: a) High stock levels with dealers coupled with weak demand sentiment led to a double-digit drop in revenue at Symphony (40% drop was a surprise that translated to a sharper reduction in bottom line) and the industry at large. b) While management is enthused by current month booking advances, we estimate overall domestic growth in FY19 will be lower given back-ended channel stocking and nil new offerings by SYML this year.

We are trimming FY19/20E earnings by 10/6% building in lower industry numbers, which tests our long-term growth thesis on SYML. However, we maintain ‘BUY/SO’ with a revised target price of Rs 1,605 (versus Rs 1,870) lowering our premium to sector from 50% to 35% factoring in rising business volatility