MARKET WRAP: Banks push Sensex 277 pts higher; RIL up 2%, Infy gains 1%

Benchmark indices rose on Monday with heavyweights ASian Paints and Reliance Industries driving the indices highe

3:40 PM

Nifty PSU Bank index ends 1.55 per cent higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
SYNDICATE BANK	42.05	40.65	1.40	3.44
BANK OF INDIA	89.30	86.65	2.65	3.06
INDIAN BANK	348.50	342.55	5.95	1.74
ST BK OF INDIA	261.30	257.20	4.10	1.59
BANK OF BARODA	117.05	115.55	1.50	1.30

3:37 PM

Nifty sectoral performers of the day

3:35 PM

BSE Sensex: Yes Bank, Asian Paints, Reliance Industries among top gainers of the day

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 35,935, up 277 points while the broader Nifty50 index settled at 10,853, up 80 points.

3:25 PM

Auto, IT, consumption stocks lead in Sensex 1,063-point rally since June 5

 

Shares of automobiles, information technology (IT), private banks and consumption related companies have led to an over 1,000 points rally in the S&P BSE Sensex since June 5.

 

Maruti Suzuki India and Bajaj Auto from automobiles, Tata Consultancy Services (TCS) and Infosys from IT, YES Bank and Kotak Mahindra Bank and Hindustan Unilever (HUL) and Asian Paints from consumption sector have outperformed the Sensex by gaining 6% to 9% during this period. READ MORE

3:22 PM

COMMENT Q1FY19 Result expectations from Crisil Research

Growth in corporate revenue – excluding banking, financial services, insurance, and oil companies – is expected to print at a 12-quarter high of 12.8% on-year for the first quarter of fiscal 2019, CRISIL Research’s analysis of ~350 companies, which account for 50% of the market capitalisation (excluding banking, financial services, insurance, and oil companies) of the National Stock Exchange, indicates.

It would be the third consecutive quarter of double-digit growth. While the earlier two quarters had benefited from low-base effect following demonetisation in the corresponding year-ago period, this quarter will reaffirm a sustained pickup in demand in most consumption-linked sectors.

 

3:15 PM

Cyrus Mistry to appeal NCLT order dismissing his plea against Tata Sons

 

Ousted Tata Sons chairman Cyrus Mistry on Monday said he would appeal against the order of the National Company Law Tribunal (NCLT) that dismissed pleas challenging his removal.

 

A statement from Mistry's office described the NCLT, Mumbai, ruling as "disappointing although not surprising".

 

"We will continue to strive for ensuring good governance and protection of interests of minority shareholders and all stakeholders in Tata Sons from the wilful brute rule of the majority," the statement said. READ MORE

3:05 PM

New rules, trade war push some China funds to struggle for survival

 

It's already been a harsh year for Chinese funds, hit by new rules aimed at reining in debt in the country's financial system. Now, the sell-off in China stocks induced by trade war anxiety further threatens their health and for some, their survival.

 

Case in point: private fund house Nanjing Hu Yang Investment Co has seen its assets under management halve to 50 million yuan ($7.5 million) over the past year on redemptions and investment losses. READ MORE

2:55 PM

Sensex heat map

2:45 PM

Fund-raising via IPOs almost doubles in H1 2018: 18 firms raise Rs 236 bn

 

In a blockbuster performance, as many as 18 companies have raised a staggering Rs 236.7 billion through initial public offerings in the first half of this year, almost double from the year-ago period.

 

Moreover, the outlook appears to be bullish for the remaining part of 2018 as nearly 50 companies, including HDFC Mutual Fund, Lodha Developers and Rail Vikas Nigam are expected to launch their initial share-sale offers in the coming months. READ MORE

2:30 PM

WEB EXCLUSIVE Sectoral outlook for Q1FY19: Which are the five sectors to watch out for?

 

The upcoming results season of the first quarter in the current financial year 2018-19 (Q1FY19) has become more interesting because it is coming at the back of two years of sagging earnings growth. Will the market excuse another year of postponement in earnings recovery? Or will earnings growth finally begin to kick in at an aggregate level? Remember, the base quarter last year had a lot of business volume suppression owing to the goods and service tax (GST) transition. So it is only likely that we may see significant growth this time around in several sectors. 

 

However, this may still not ignite full-fledged hopes of earnings recovery as GST related restocking will kick up the base in the coming quarter. READ MORE

2:15 PM

Page Ind rallies 20% in less than one month after Jockey extends license

Shares of Page Industries hit a new high of Rs 29,277 per share, rising 3% and extending their gains in the past four weeks on the BSE after the company on June 12, 2018 announced extension of license agreement with Jockey International till December 31, 2040. READ MORE

2:00 PM

Market Check

 

S&P BSE Sensex	35,943.58		0.80%
Nifty 50	10,850.45		0.72%
S&P BSE 200	4,667.76		0.83%
Nifty 500	9,270.60		0.83%
S&P BSE Mid-Cap	15,574.91		1.19%
S&P BSE Small-Cap	16,280.92		1.38%

1:45 PM

Shriram group may merge two of its listed non-banking finance companies

 

Shriram group, the Rs 1,000-billion financial conglomerate, may consider merging two of its listed non-banking finance companies — Shriram Transport Finance Company (STFC) and Shriram City Union Finance (SCUF) — to pave the way for listing Shriram Capital, the holding company of the group’s financial businesses.

 

Talks between the group, now headed by billionaire Ajay Piramal, and IDFC Group, on a merger were called off last year after the two sides failed to agree on a swap ratio. READ MORE

1:31 PM

I-T sells Cairn's $216-mn shares in Vedanta over retrospective tax dues

Cairn Energy said on Monday it would write down the value of its investment in Vedanta Ltd after Indian tax authorities sold $216 million worth of its shares in the Indian mining company in a dispute over retrospective tax dues.

 

Cairn said it still holds about 3 per cent in Vedanta Ltd after the sale, while warning that it was possible that the Indian tax department might make further sales. READ MORE

1:15 PM

Paint stocks in focus; Asian Paints, Berger Paints hit new high

Shares of paint companies were in focus with Asian Paints and Berger Paints India hitting their respective new highs on the BSE on expectation of a healthy volume growth in April-June quarter (Q1FY19).
 

Berger Paints India has rallied 4% to Rs 307 on the BSE in intra-day trade, surpassing its previous high of Rs 305 recorded on May 29, 2018. READ MORE

1:03 PM

Top contributors to Sensex's gain

COMPANY	LATEST	CHG(RS)	CHG(%)	FREE FLOAT MKT CAP (RS CR)	CONTRIBUTION (POINTS)
AXIS BANK	527.45	13.20	2.57	73182.24	27.42
INFOSYS	1294.85	10.35	0.81	218668.11	25.81
HDFC BANK	2124.50	10.45	0.49	210795.90	25.61
ICICI BANK	273.50	3.50	1.30	149832.07	25.36
RELIANCE INDS.	987.00	10.50	1.08	176731.30	23.34
ST BK OF INDIA	261.80	4.35	1.69	71541.97	16.85

1:01 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,886.14	+228.28	+0.64
S&P BSE SENSEX 50	11,357.66	+72.05	+0.64
S&P BSE SENSEX Next 50	32,266.10	+316.16	+0.99
S&P BSE 100	11,115.62	+76.28	+0.69
S&P BSE Bharat 22 Index	3,341.78	+29.75	+0.90

1:00 PM

Edelweiss on home decor sector

Higher competitive intensity from unorganised players continued to impact performance of organised players in tiles segment in Q1FY19. Pricing pressure mainly in GVT segment is likely to restrict revenue growth for tile companies at 9%. The growth will be led by healthy increase in volumes and low base for Somany Ceramics (SAP implementation). In our view, growth in the wood panel category is likely to be higher at 17% YoY led by commissioning of MDF plant by Century Plyboards.

We expect growth rates to accelerate from H2FY19 riding improving macros. Further, the unorganised segment is likely to face challenges with stricter compliance led by Eway bill implementation. Gross margin expansion is likely to be soft since companies have deferred price hikes, but have effected price cuts (due to lower GST rate) and are facing higher gas cost. We believe, in the near term, plywood and PVC pipe segments will outperform as tile companies continue to face price pressure. Our top picks are Century Plyboards and kajaria Ceramics

1:00 PM

Market mind: 12 reasons to invest in Rajratan Global Wires

There are four reasons why one should not be investing in Rajratan Global Wires. The company is relatively unknown, growth was flat in 2017-18, the principal raw material (steel) is passing through a sectoral rebound, and the stock is quoted 15 times 2017-18 earnings. READ MORE

12:59 PM

Kotak Securities on Oberoi Realty

We upgrade Oberoi Realty to BUY (from REDUCE) and revise target price to Rs560/share (from Rs535/share). Cash flow generation in FY2018 was impacted by lower cash collection in 1HFY18 on RERA implementation, as well as advances paid for land acquisition in Thane.

However, we expect a more promising FY2019E on account of launch at Thane (possibly 2HFY19) as well as cash generation from Three Sixty West. Improving pace of execution and sales at Mulund will further bolster investor sentiment.

12:45 PM

Xiaomi down 2.9% after raising $4.9 bn in biggest tech float in four years

 

Chinese smartphone maker Xiaomi Corp's shares dropped 2.9 per cent on debut in Hong Kong on Monday, in a blow to investor sentiment for the tech sector as a raft of peers line up their own listings in the city.

 

Xiaomi priced its Hong Kong initial public offering (IPO) at HK$17 per share, the bottom of an indicative range, raising $4.72 billion in the world's biggest technology float in four years. READ MORE

12:30 PM

Mahindra & Mahindra gains for fifth straight session, hits new high

 

Shares of Mahindra & Mahindra (M&M) were quoting higher for the fifth straight trading days, hitting new high of Rs 940, up 2% on the BSE, after the government last week increased the minimum support price (MSP) of kharif crops for 2018-19.

 

In past six trading sessions, M&M has rallied 6% as compared to 1.5% rise in the S&P BSE Sensex. In past four months, it surged 29% against 7.5% rise in the benchmark index. READ MORE

12:15 PM

With a drop of 46%, India Inc's QIP issue stands at Rs 10 billion in May

Indian firms mobilised a little over Rs 10 billion through issuance of shares to institutional investors during May this year, witnessing a drop of 46 per cent over the previous month. During April 2018, the firms had mopped up Rs 18.62 billion.

 

As per the latest data available with the Securities and Exchange Board of India (Sebi), the capital garnered by the listed companies through the qualified institutional placement (QIP) route stood at Rs 10.08 billion in May 2018. READ MORE

12:00 PM

Markets at noon

S&P BSE Sensex	35,870.32		0.60%
Nifty 50	10,830.75		0.54%
S&P BSE 200	4,659.92		0.66%
Nifty 500	9,255.70		0.67%
S&P BSE Mid-Cap	15,542.04		0.98%
S&P BSE Small-Cap	16,239.64		1.12%

11:45 AM

Top Nifty50 gainers

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
VEDANTA	225.95	219.10	6.85	3.13	4256842
DR REDDY'S LABS	2326.60	2269.05	57.55	2.54	359347
AXIS BANK	526.00	513.70	12.30	2.39	3222286
SUN PHARMA.INDS.	568.90	558.10	10.80	1.94	1700689
TATA MOTORS	275.95	270.85	5.10	1.88	5532026

11:31 AM

As govt bond yields dry up, central banks ramp up their risk taking

 

Central banks are ramping up their risk taking. The days of plain old bonds and gold are over as central banks bet some of their trillions of dollars of foreign reserves on mortgage-backed securities, corporate debt, equities and emerging-market debt.

 

“Central bank reserve managers typically wake up in the morning figuring out how to avoid losing money,” said Alex Millar, head of EMEA sovereign and institutional sales at Invesco Ltd. But now, "the requirement for return is creeping up.” READ MORE

11:15 AM

From RIL, TCS to Jubilant FoodWorks, here are 10 cool stocks to consider

 

As interest returns to large-caps and well-known mid-caps, stocks with demonstrated earnings capabilities, some of which have broken out from a prolonged phase of underperformance, are now the season’s favourites. Although any correction in equities could also have some impact on these stocks, most of the companies have a prove-track record and are in a better position to withstand any pressure that may be ahead. READ MORE

11:02 AM

Tata Companies gain post NCLT verdict

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
TATA INV.CORPN.	874.00	840.20	33.80	4.02	5381
TATA METALIKS	715.40	692.65	22.75	3.28	4128
VOLTAS	532.60	519.55	13.05	2.51	9146
TATA CHEMICALS	715.70	701.30	14.40	2.05	5605
TATA GLOBAL	272.00	266.85	5.15	1.93	24307

10:59 AM

NCLT VERDICT

NCLT: Do not agree that Ratan Tata's conduct was prejudicial to company