MARKET WRAP: Sensex hits new high; Nifty at highest level since February 01

Among sectoral indices, the Nifty FMCG index gained nearly 2.5%, led by a rise in the share prices of Godrej Consumer Products and ITC.

4:24 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

Nifty settled with decent gains today and inched closer to its record high. The news of GST Council reduced on list of over 100 items and simplification of return filing brings in some cheer. Selective index majors from FMCG, auto, realty and metal fuelled the rally which further supported by rebound in banking pack. Besides, some relief was also witnessed on broader front.

 

Both Nifty and Bank Nifty have reached closer to their immediate and crucial hurdle of 11100 and 27100 respectively and a decisive breakout will trigger fresh surge ahead. But, we're in expiry week so volatility tends to remain high. We suggest maintaining positive yet cautious approach in the key indices, considering the mixed sentiment. Traders should focus more on the money management aspects and avoid taking unnecessary risk

3:45 PM

Nifty FMCG index ends 2.46% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
GODREJ CONSUMER	1344.75	1287.05	57.70	4.48
ITC	284.15	274.00	10.15	3.70
GODREJ INDS.	605.00	591.85	13.15	2.22
HIND. UNILEVER	1690.90	1655.85	35.05	2.12
TATA GLOBAL	243.00	238.60	4.40	1.84

3:41 PM

Nifty sectoral gainers of the day

3:39 PM

BSE Sensex: ITC, Vedanta, Maruti Suzuki, Adani Ports among top gainers of the day

3:32 PM

Market at close

The S&P BSE Sensex ended at 36,719, up 222 points while the broader Nifty50 index settled at 11,085, up 75 points.

3:11 PM

Tobacco / Cigarette-related stocks surge

COMPANY NAME	LATEST	HIGH	LOW	CHG ( )	CHG(%)	VALUE (  CR)	VOLUME
ITC	283.80	286.50	276.00	10.35	3.78	37.09	1307010
GODFREY PHILLIPS	756.40	759.70	695.30	58.70	8.41	2.97	39290
VST INDS.	2817.00	2992.85	2616.15	319.10	12.77	5.89	20925
INDIAN WOOD PROD	705.00	705.00	695.00	5.00	0.71	0.05	646
NTC INDS.	32.50	32.50	30.50	0.65	2.04	0.00	216
GOLDEN TOBACCO	43.40	43.40	43.40	-2.25	-4.93	0.00	209

3:07 PM

LKP Securities on Bandhan Bank

Despite micro-loans being unsecured in nature, bank has maintained sound asset quality with the gross NPAs and net NPAs at 1.3% & 0.6% respectively (Q1FY19).

Strong NPA position is largely driven by its group-based lending model, focus on income generating loans, strong systems to track loan utilization, monitoring credit & ensuring collection, extensive risk management practices (such as lending progressively higher amounts only to members who have built up a track record of good repayment) which taken together have led to low rates of default. Going forward, with the strong growth in the assets we assume marginal increase in NPAs – gross NPAs to surge to 2.3% in FY20E from 1.3% in FY18

3:06 PM

Wall Street braces for tariff fallout as S&P 500 companies report

Tariffs are starting to bite big manufacturers and Wall Street could get another bout of caution and uncertainty from major industrial companies when a swath of reports comes in over the next week. READ MORE

3:05 PM

Motilal Oswal on Havell's India (HAVL)

We believe HAVL has built a strong business franchise, given its (a) successful development of brand, distribution and product portfolio, (b) demonstrated track record of accelerating growth via new launches, (c) healthy dividend payout and (d) robust return ratios. Maintain Buy and target price of Rs 645, with exit multiple of 38x Mar’20E EPS (10% premium to five-year average).

2:50 PM

RIL-ONGC dispute: Krishna-Godavari basin order likely in next 10 days

An international arbitration tribunal is likely to come out with its final award in the next 10 days on the dispute relating to production of migrated gas by Reliance Industries (RIL). RIL is in an arbitration dispute with the government over a penalty for allegedly drawing gas from ONGC's block in the Krishna-Godavari (K-G) basin. READ MORE

2:34 PM

Gold prices steady as U.S. dollar softens on Trump interest rate comments

Gold prices were steady on Monday near their highest since July 17 as the dollar eased to its lowest in nearly two weeks after US President Donald Trump criticised the Federal Reserve's interest rate tightening policy.

 

Spot gold was at $1,231.87 an ounce, up 0.03 per cent. The yellow metal gained 0.7 per cent in the previous session. READ MORE

2:18 PM

PSU banks rebound from day's low post Vijaya Bank's Q1 results

Shares of public sector undertaking (PSU) banks have moved by up to 6% on the National Stock Exchange (NSE) after Vijay Bank said its assets quality improved in June 2018 (Q1FY19) quarter.
 

State Bank of India (SBI), Bank of Baroda, Vijaya Bank, Bank of India, Canara Bank, Union Bank of India, Oriental Bank of Commerce, Punjab National Bank (PNB), Indian Bank, Syndicate Bank and Allahabad Bank were up more than 1% on the NSE. READ MORE

2:00 PM

Market Check

 

S&P BSE Sensex	36,600.50		0.29%
Nifty 50	11,052.95		0.39%
S&P BSE 200	4,712.49		0.43%
Nifty 500	9,332.10		0.50%
S&P BSE Mid-Cap	15,317.76		0.80%
S&P BSE Small-Cap	15,807.54		0.55%

1:45 PM

Top gainers in BSE 500:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
PC JEWELLER	96.10	81.90	14.20	17.34
BAJAJ ELECTRICAL	620.85	543.60	77.25	14.21
VST INDS.	2850.00	2497.90	352.10	14.10
UPL	621.50	550.25	71.25	12.95
L&T FIN.HOLDINGS	169.00	155.30	13.70	8.82

1:24 PM

Havells: Good beginning to FY19 should excite investors

Havells has started the financial year on a strong note clocking 40 per cent revenue growth during the June quarter. This was primarily led by its electrical consumer durables (ECD) segment while the Lloyd's air-conditioners (AC) business also surprised positively and other segments too supported. READ MORE

1:17 PM

Asian Paints, Havells India, Bata India, Bajaj Finance, HEG hit new high

Shares of Asian Paints, Havells India, Bata India, Bajaj Finance and HEG were among 10 stocks from the S&P BSE 500 index hitting their respective new highs on the BSE on Monday. Bajaj Finserv, Berger Paints, Graphite India, Relaxo Footwear and Procter & Gamble Hygiene & Healthcare too hit record highs today. READ MORE

1:01 PM

UPL surges 15% after Arysta deal; analysts see more upside for the stock

UPL has surged 15% to Rs 631 on the BSE on heavy volumes in noon deals, after the company announced the acquisition of Arysta LifeScience – the agrochemical business of US-based Platform Chemicals – for a consideration of $4.2 billion.
 

UPL, on Friday, said that its wholly-owned subsidiary, UPL Corporation, has signed a definitive agreement with Platform Specialty Products Corporation to acquire Arysta LifeScience Inc. and its subsidiaries for a cash consideration of about $4.2 billion. READ MORE

12:45 PM

GST rate cut triggers rally in footwear, paint, consumer durable stocks

Shares of paint, consumer durables and footwear companies rallied by up to 10 per cent on the BSE on Monday after the GST Council reduced tax rates from 28 per cent to 18 per cent on a range of daily use products and appliances.

 

Among items on which GST was reduced on Saturday include footwear, small televisions, water heater, electric ironing machines, refrigerators, lithium-ion batteries, hair dryers, vacuum cleaners, food appliances and ethanol. READ MORE

12:24 PM

HDFC Bank slips after Q1 earnings

HDFC Bank fell 1.02% to Rs 2167.85 on BSE after net profit rose 18.17% to Rs 4601.44 crore on 18.85% increase in total income to Rs 26367.04 crore in Q1 June 2018 over Q1 June 2017. READ MORE

12:15 PM

Sebi norms: Infosys, TCS among 291 listed firms asked to split CMD post

Reliance Industries, Infosys, TCS and Bharti Airtel are among the 291 listed companies that will have to appoint a non-executive chairperson on their boards by April 1, 2020, to comply with regulator Sebi's directive and most of these firms will need to split the roles of chairman and managing director for compliance. READ MORE

12:11 PM

Kotak Securities on Asian Paints

GST rate cuts should be a meaningful earnings kicker for the paints companies in our view, anti-profiteering guidelines notwithstanding. Earnings upside would flow from the indirect benefits of these rate cuts in the form of accelerated (a) share gains from the unorganized players, and (b) premiumization. Prima facie, we believe this rate cut would drive a 10-15% earnings upside for the paints companies on an annualized basis; FY2019 impact would be lower, given part-year benefits accrual

12:00 PM

Markets at Noon

 

S&P BSE Sensex	36,592.93		0.26%
Nifty 50	11,042.55		0.29%
S&P BSE 200	4,708.16		0.34%
Nifty 500	9,313.00		0.29%
S&P BSE Mid-Cap	15,260.84		0.42%
S&P BSE Small-Cap	15,772.26		0.32%

11:52 AM

South Indian Bank tanks 18% on weak Q1 results

Shares of South Indian Bank have tanked 18% to Rs 18.45 per share, also their 52-week low on the BSE, after the private sector lender reported a sharp 77% year on year decline in its net profit at Rs 230 million in June quarter (Q1FY19). The bank had profit of Rs 1.01 billion in the corresponding quarter in the previous fiscal. READ MORE

11:37 AM

Equirus Securities on DCB Bank

We expect DCBB to attain 14% RoE on a sustainable basis by FY21E assuming no further dilution. We cut FY19/FY20 PAT estimates by 5.5%/7.9% and roll over to a Sep’19 target price of Rs 185 (Mar’19 target price : Rs 205) at 2.1x/1.9x Sep’19/Sep’20 ABV of Rs 88/98. Retain ADD.

11:15 AM

TOP CONTRIBUTORS TO SENSEX'S GAIN

COMPANY	LATEST	CHG(RS)	CHG(%)	FREE FLOAT MKT CAP (RS CR)	WEIGHT IN INDEX (%)
ITC	284.65	11.20	4.10	347813.84	10.69
BHARTI AIRTEL	354.10	8.55	2.47	49541.78	1.83
ASIAN PAINTS	1428.00	31.10	2.23	64377.67	1.61
NTPC	158.50	3.20	2.06	32672.63	1.15
ADANI PORTS	377.45	7.55	2.04	34393.92	0.97
HIND. UNILEVER	1682.60	26.40	1.59	120191.15	2.49

11:13 AM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,553.21	+56.84	+0.16
S&P BSE SENSEX 50	11,546.06	+16.61	+0.14
S&P BSE SENSEX Next 50	31,503.73	+127.17	+0.41
S&P BSE 100	11,233.73	+20.42	+0.18
S&P BSE Bharat 22 Index	3,351.81	+23.46	+0.70

11:00 AM

Motilal Oswal on Bajaj Auto

10:55 AM

Angel Broking on YES Bank

We expect YES Bank to grow its advances at CAGR of 32% over FY2018-20E. Improvement in CASA, rating up-gradation and in-house priority sector lending would support NIM going forward. At CMP, YES trades at 2.4x FY20E P/ABV, which we believe is attractive considering growth prospects, hence, we recommend BUY with a target price of Rs 435 over the next 12 months

10:54 AM

CHART CHECK Voltas

On a monthly chart, the stock has formed a Hammer Candlestick with the support of 490 level which is a 38.20% Fibonacci retracement level of its previous rally from 287.15 levels to 675.30 levels which is a classic reversal setup and shows a bullish reversal movement in the counter.
 

Apart from this, after giving a healthy correction from its 664.70 level, the stock has paused its downside movement near to its previous bottom from where the stock had witnessed a good upside movement.

10:53 AM

Prabhudas Lilladher on HDFC Bank

HDFC Bank saw a marginal blip in earnings growing at only 18% YoY to Rs46.0bn (PLe: Rs47.1bn) mainly on back of margin pressure which fell by 20bps QoQ and MTM loss on investments. It has already raised capital of Rs85.0bn from its promoter bank HDFC Ltd and will shortly do Rs150bn preferential allotments, which help further augment capital for loan growth of 20-22% and improve liquidity for the bank.

We have factored the capital raise of Rs250.0bn in our estimates for FY19E, which has led to increase in ABV by 18/15% for FY19/FY20E. Retain BUY with increased target price of Rs2,492 (from Rs2,251) based on 4.2x Mar-20 ABV.