MARKET WRAP: Sensex ends 318 pts higher, Nifty holds 10,500; IT stocks gain

Benchmark indices rose on Thursday, driven by IT stocks such as Infosys and TCS on the back of a weak rupee

3:44 PM

Top gainers in Nifty IT index:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
KPIT TECH.	270.85	258.25	12.60	4.88
TCS	3603.70	3495.10	108.60	3.11
INFOSYS	1221.00	1184.90	36.10	3.05
TECH MAHINDRA	711.35	697.45	13.90	1.99
HCL TECHNOLOGIES	911.70	894.35	17.35	1.94

3:40 PM

Top losers in BSE Oil & Gas:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
OIL INDIA	214.50	230.55	-16.05	-6.96
GAIL (INDIA)	305.00	323.15	-18.15	-5.62
O N G C	167.90	175.55	-7.65	-4.36
INDRAPRASTHA GAS	253.35	263.35	-10.00	-3.80
CASTROL INDIA	163.20	167.15	-3.95	-2.36

3:37 PM

Nifty sectoral performers of the day

3:35 PM

BSE Sensex: Gainers and losers of the day

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 34,663, up 318 points while the broader Nifty50 index settled at 10,514, up 84 points.

3:14 PM

Avenue Supermarts up 6% after block deals

Shares of Avenue Supermarts - the operators of retail chain D-Mart, have moved higher by 6% to Rs 1,437 on the BSE in noon deal trade on Thursday, after nearly one per cent or 5 million equity shares of the company changed hands through multiple block deals. READ MORE

 

3:00 PM

Crude oil price rise could moderate later, suggests Spanish survey

FocusEconomics, a Spain-based economic think tank, says after surveying economists and analysts: “We do not expect the current sweet spot in oil prices will be sustainable further down the road. Higher prices are allowing an increasing number of shale oil producers to ramp up production, especially in the United States. More, rising trade disputes and elevated political tensions across the globe are threatening to derail an otherwise promising global growth trajectory. Prices could be averaging $66.5 a barrel in Q4 (October to December) of 2018.” READ MORE

2:44 PM

Despite SBI reporting Rs 77-bn loss in Q4, worst is likely over for PSBs

 

Despite the country's largest lender, State Bank of India (SBI), reporting its biggest quarterly loss of Rs 77 billion and a worsening of asset quality during January-March 2018 (Q4) on Monday, the Nifty index of PSU banks surged 2.8 per cent on Tuesday. The gains came on a day the Nifty and the Sensex fell by almost 1 per cent each.

 

According to experts, even though the Q4 numbers of PSBs that have announced results so far are weaker than expected, earnings visibility is emerging and, in all probability, asset quality worries of PSBs have peaked. READ MORE

2:29 PM

Mid, small-caps outperform in four years of Narendra Modi government

 

Mid-and small-cap indices have outperformed large-caps in the four years of Narendra Modi – led National Democratic Alliance (NDA) at the centre. Between May 26, 2014 when the Modi government was sworn in and May 23, 2018, the S&P BSE Mid-cap and the S&P BSE Small-cap indices have rallied 86 per cent and 81 per cent respectively, as compared to around 39 per cent rise in the S&P BSE Sensex, ACE Equity data shows.

 

Analysts attribute this outperformance to the government’s proactive economic reform measures and low crude oil prices that translated into a better operational performance for the mid-and-small cap companies that eventually got translated into the stocks rallying at the bourses. Ample liquidity, especially from the mutual funds also aided sentiment, they said.

2:14 PM

ONGC falls 10%

 

Oil and Natural Gas Corporation (ONGC) dipped 10% to Rs 157, extending its previous day’s nearly 5% fall on BSE, after the media report suggested that the government may ask the company to share the burden to reduce fuel price. READ MORE

2:03 PM

Market Check

 

S&P BSE Sensex	34,594.49		0.73%
Nifty 50	10,495.25		0.62%
S&P BSE 200	4,545.17		0.37%
Nifty 500	9,104.60		0.38%
S&P BSE Mid-Cap	15,639.87		-0.38%
S&P BSE Small-Cap	16,955.58		-0.13%

1:45 PM

Three-fourths of BSE 500 stocks see downward revision in price targets

Deteriorating macroeconomic conditions and lacklustre earnings have prompted brokerages to cut their price targets for mid- and small-cap stocks. Over three-fourths of the BSE 500 stocks saw their price targets cut in the last three months, with 98 stocks witnessing a downgrade of more than 10 per cent. READ MORE
 

1:30 PM

Stocks at 52-week high

COMPANY	PRICE( )	52 WK HIGH	CHG( )	CHG(%)
BRITANNIA INDS.	5760.45	5790.00	48.95	0.86
INFOSYS	1223.40	1224.90	38.15	3.22
KPIT TECH.	270.40	271.70	11.60	4.48
TCS	3596.00	3607.50	98.95	2.83
ZENSAR TECH.	1296.40	1345.35	24.85	1.95

1:18 PM

IT shares gain on weak rupee; Infosys nears 52-week high

Shares of information technology (IT) companies were trading higher as rupee extended weakness against the dollar. The frontline IT stocks such as Infosys, Tata Consultancy Services, HCL Technologies and Tech Mahindra were up in the range of 1% to 2% on the National Stock Exchange (NSE).
 

Persistent Systems, Larsen & Toubro Infotech, Intellect Design Arena, Zensar Technologies, Firstsource Solutions, Hexaware Technologies, SQS India BFSI, Sasken Technologies, Sonata Software and NIIT Technologies were up between 1% and 4% on the BSE. READ MORE

1:00 PM

Welspun Enterprises up for 11th straight trading day post Q4 results

 

Shares of Welspun Enterprises were trading higher for the 11th straight session, rising 5% to Rs 202 per share on the BSE after the company reported a nearly four-fold jump in its consolidated net profit at Rs 253 million in March quarter. It had profit of Rs 67 million in the same quarter last fiscal.

 

The stock of construction & engineering company was trading at its new high rallying 32% from Rs 153 on May 9, 2018. On comparison, the S&P BSE Sensex has dipped 2.4% during the same period. READ MORE

12:46 PM

Emerging markets staring at debt crisis? Paul Krugman, Mark Mobius think so

 

Paul Krugman is joining a growing contingent of economists and money managers from Carmen Reinhart to Mark Mobius in warning of a meltdown in emerging markets.

 

The Nobel Prize-winning economist said the current episode bears some resemblance to the Asian financial crisis in the late 1990s, when developing-nation stocks slid 59 per cent and governments raised interest rates to exceptionally high levels. READ MORE
 

12:33 PM

Tata Motors hits lowest level since February 2016 on weak Q4 results

 

Tata Motors plunged 8% to Rs 286, its lowest level since February 2, 2016 on the BSE in early morning trade, after the Tata Group Company reported a consolidated net profit of Rs 21.75 billion against an average analysts estimates of Rs 42.30 billion for the March quarter (Q4FY18). The company’s profits for the March quarter nearly halved from Rs 43.36 billion in year ago quarter, due to higher expenses and a one-time impairment charge. READ MORE

 

12:15 PM

Market Check

 

S&P BSE Sensex	34,481.90		0.40%
Nifty 50	10,467.45		0.36%
S&P BSE 200	4,537.48		0.20%
Nifty 500	9,089.40		0.22%
S&P BSE Mid-Cap	15,659.02		-0.26%
S&P BSE Small-Cap	16,965.04		-0.07%

12:00 PM

OMCs extend losses

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
H P C L	281.10	286.95	-5.85	-2.04	846835
B P C L	367.00	373.45	-6.45	-1.73	224985
OIL INDIA	228.50	230.55	-2.05	-0.89	6657

11:48 AM

India business, steady margins for JLR mainstay of Tata Motors' Q4 show

 

Tata Motors posted broadly in line March-quarter performance on the back of strong performance of its India business and steady margins for its British subsidiary Jaguar Land Rover (JLR). Consolidated revenues rose 18 per cent due to a 34 per cent increase in India volumes, while JLR, which accounts for three quarters of consolidated revenue, reported a 2.2 per cent increase.

 

The management attributed 10-11 per cent of the increase to the volume and product mix, and the rest to translation gains. READ MORE

11:34 AM

Top BSE500 gainers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
EROS INTL.MEDIA	135.80	16.25	13.59	401568
KAVERI SEED CO.	505.00	32.90	6.97	107125
MINDA CORP	184.05	9.05	5.17	32731
PNC INFRATECH	172.00	7.60	4.62	26475
L & T INFOTECH	1660.80	69.50	4.37	19418

11:20 AM

Stable realisations, volume expansion to drive Grasim's FY19 growth

 

Grasim continued its strong show in the March quarter (Q4), with its core businesses viscose staple fibre (VSF), chemicals and pulp as well as fibre reporting an improved profitability. In fact, its standalone operating profit and adjusted net profit (excluding exceptional items — loss of Rs 2.19 billion) saw growth of 70 per cent and 67 per cent, respectively.

 

Revenue growth of 60 per cent came ahead of analysts’ estimates. After an initial fall, the Grasim stock closed higher on Wednesday. READ MORE

11:03 AM

Jet Airways hits fresh 52-week low on net loss of Rs 10-billion in Q4

 

Shares of Jet Airways have slipped by 8% to Rs 386 per share, their fresh 52-week low on the BSE in early morning trade, after the airline company reported a standalone net loss of Rs 10.36 billion in March quarter (Q4FY18), due to higher fuel cost. It had posted a net profit of Rs 6.02 billion in the same quarter last fiscal. READ MORE

10:46 AM

Mark Mobius sees more pain ahead for emerging markets

 

Even the normally bullish Mark Mobius says there's worse to come for emerging markets. There's a danger of contagion from the deteriorating situation in Turkey, and Argentina and Brazil aren't doing well, said the veteran developing-nation investor, who left Franklin Templeton Investments earlier this year and set up Mobius Capital Partners LLP. READ MORE

10:28 AM

ICICI Securities on Bajaj Electricals

Management expects strong top-line growth in FY19 given robust EPC order book and 10-15% growth in CD segment. Due to sharp decline in CFL demand and poor outlook, company booked one-time write down of Rs894mn in value of its investment and loans to Starlite Lighting Ltd. We maintain SELL with revised target price of Rs375 (Rs290 earlier), valuing CD and EPC businesses at 30x and 10x FY20 EPS, respectively.

10:24 AM

ICICI Securities on Just Dial

Though we expect JD to provide capital return of ~5% on the CMP in FY19 (likely through a buyback), we see no reason for the company to not return a higher proportion of annual free cash flow back to investors than it has in recent years. Existing cash balances are already large enough to take care of any incremental business investments in adjacencies and acquisitions.

10:23 AM

BSE Heatmap

10:16 AM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,500.01	+155.10	+0.45
S&P BSE SENSEX 50	10,944.41	+25.73	+0.24
S&P BSE SENSEX Next 50	32,122.23	-37.27	-0.12
S&P BSE 100	10,763.51	+19.68	+0.18
S&P BSE Bharat 22 Index	3,477.45	-0.63	-0.02

10:00 AM

EARNINGS

 

Tata Motors’ profits for the March quarter halved, as higher expenses and a one-time impairment charge singed earnings, the Tata group flagship said on Wednesday.

 

For the three months to March, net profit fell to Rs 21.76 billion — way below Street estimates. A Bloomberg poll of 16 analysts estimated a net profit of Rs 37.48 billion on net sales of Rs 881.96 billion. The carmaker reported a net profit of Rs 43.36 billion in the same quarter a year earlier. READ MORE

 

EARNINGS IMPACT
 

9:44 AM

Sharekhan on Grasim

We have fine-tuned our standalone earnings estimates for FY2019-FY2020. On a consolidated level, we see an improvement in the growth outlook of UltraTech, while AB Capital is expected to maintain a strong growth momentum due to its leading position in key verticals such as insurance, asset management and retail lending. Consequently, we maintain our Buy recommendation with unchanged price target of Rs 1,480.