MARKET WRAP: Sensex slips 151 points weighed by auto, pharma stocks

The Nifty Auto index fell 1.19 per cent weighed by Mahindra & Mahindra (M&M) and Ashok Leyland. The Nifty Pharma index declined 1.63 per cent dragged down by Dr. Reddy's Laboratories.

3:40 PM

Sectoral gainers and losers of the day on NSE

3:35 PM

Gainers and losers of the day on S&P BSE Sensex

3:33 PM

Market at close

The S&P BSE Sensex ended at 36,395, down 151 points or 0.41 per cent, while the broader Nifty50 index settled at 10,889, down 55 points or 0.50 per cent.

3:26 PM

India Cements Q3 profit falls 79.46% to Rs 3.13 cr

India Cements Monday reported a 79.46 per cent decrease in its standalone net profit at Rs 3.13 crore for the third quarter ended on December 2018. The company has reported a net sales of Rs 15.24 crore for the October-December quarter a year ago, India Cements said in a BSE filing. READ MORE

3:10 PM

STOCK IMPACT

Eicher Motors down 1% post Q3 results

3:09 PM

NEWS ALERT

Eicher Motors reports Q3 consolidated net profit at Rs 532.95 crore vs Rs 520.50 crore year ago

3:02 PM

Finance ministry seeks Rs 27,380 cr from RBI's risks, reserves fund

The finance ministry has sought from the Reserve Bank of India (RBI) Rs 27,380 crore that was withheld by the central bank towards risks and reserves in the previous years, said sources.

 

The RBI had retained Rs 13,190 crore towards risks and reserves during 2016-17. It increased to Rs 14,190 crore in 2017-18. Together, retained amount is Rs 27,380 crore. READ MORE

2:41 PM

Apollo Hospitals tumbles on share pledge concerns

2:31 PM

Rate cut, RCom bankruptcy: Investor worries go beyond Modi's election angst

Japan’s shut, most other Asian equity markets aren’t doing much. So we’re going to use this opportunity to talk about India, where an unpredictable election looms. Even before the ballot takes place, a host of worries is raising questions about whether the country’s benchmark stock index can repeat last year’s outperformance. READ MORE

 

2:15 PM

Sun TV Network surges 11% post December quarter results

Shares of Sun TV Network have rallied 11 per cent to Rs 577 per share on the BSE on Monday in an otherwise weak market after the company reported net profit growth of 32 per cent at Rs 351 crore in December 2018 quarter (Q3FY19), on back of healthy revenue growth. The company’s revenue was up 32 per cent at Rs 904 crore over the previous year quarter. READ MORE

 

2:00 PM

MARKET CHECK

1:40 PM

Elara Capital on Aurobindo Pharma

Strong US business and an emerging EU (transitioning from negative OPM into the double digits) show drivers are in place. Further, the Sandoz acquisition seems to be transacted at attractive valuations (1x sales and 5x EBITDA), which will give Aurobindo higher scale (USD 2.3bn of consolidated US sales) and diversification in the US (derma portfolio). The incorporation of Sandoz business will increase our FY20E EPS by 15-20 per cent. We retain Buy with a target price (TP) of Rs 925.

1:25 PM

WEB EXCLUSIVE | Analysts see robust demand, margin squeeze for IT firms; prefer large-caps

Despite being a seasonally weak quarter due to furloghs and lower billing days on account of holidays, most companies in the information technology (IT) sector reported a strong set of numbers for the October – December 2018 period of financial year 2018-19 (Q3FY19). READ MORE

1:17 PM

HDFC Securities on Dilip Buildcon

Even though the newer hybrid annuity model (HAMs) are facing some challenges before moving into execution, DBL continues to demonstrate its superior execution capabilities on its existing projects (with ~Rs 500 million bonus expected on the Lucknow Sultanpur stretch, nearly 8 months before time). We remain constructive.

1:15 PM

Top losers in BSE 500:

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
APOLLO HOSPITALS	1130.85	-128.10	-10.18	102650
GRAPHITE INDIA	436.00	-48.40	-9.99	212581
INDIABULLS VENT.	272.80	-29.55	-9.77	158780
PC JEWELLER	69.20	-7.20	-9.42	2829096
KRBL	327.50	-32.85	-9.12	18250

1:14 PM

COMMENT | ICICI Securities on Tata Steel

Tata Steel reported a steady Q3FY19 performance. However, on account of softness likely to be witnessed in steel prices during Q4FY19, we downward revise our EBITDA/tonne for FY19E to Rs 15,500/tonne (from Rs 16,500/tonne earlier) and FY20E to Rs 14,000/tonne (from Rs 15,000/tonne earlier). We continue to value the company on SOTP basis and arrive at a target price of Rs 550. We maintain our BUY recommendation on the stock. Tata Steel benefits from its integrated operations (100 per cent iron ore and nearly 35 per cent coking coal) clocking higher EBITDA/tonne vis-à-vis its domestic peers.

1:06 PM

BSE Smallcap index nears one-year low; 130 stocks hit 52-week lows

The S&P BSE Smallcap index was trading 1.5 per cent down at 13,455 levels on Monday, near its 52-week low, on the back of strong correction in paper, graphite electrodes, consumer discretionary goods & services, metals, pharmaceutical and real estate stocks after reporting weak financial results for December quarter of FY19. The BSE SmallCap index is just 58 points away from its 52-week low of 13,397 touched on October 9, 2018 in the intra-day trade. READ MORE

12:50 PM

Amazon puts on hold plans to buy stake in Kishore Biyani's Future Group

Global online marketplace giant Amazon has indefinitely put on hold its plans to buy stake in Kishore Biyani’s Future Group, it is learnt. According to sources in the know, Amazon is also reassessing the More retail chain stake buy, as it is at the moment unsure of India’s retail climate.

 

The investment arm of Amazon had set aside close to $2 billion to invest in various retail chains, to expand its offline footprint. READ MORE

12:36 PM

Kotak Securities on VIP Industries

We consider Q3FY19 to be an exceptional quarter for VIP and won't read it as change in trend or structural changes in the business. We estimate the company to be a major beneficiary of increasing penetration of luggage bags and back packs in the country, improving living standards leading to increased air and rail travel and also the desire for travelers to have branded luggage.

Under the current circumstances, for VIP, we continue to estimate a revenue CAGR of 18% and earnings CAGR of 21% over FY18 to FY20E with strong operating margins and return ratios. The stock has run-up by more than 6% since our last update. Recommend ADD (from BUY) with an unchanged price target of Rs 515 valuing the stock at 39X FY20E earnings

vip

12:35 PM

Kotak Securities on Phoenix Mills

During Q3FY19, consolidated revenues were up by 5.7% YoY with strong margins of 50.5% led by healthy improvement in consumption levels and rental income. Retail segment revenues are likely to remain strong going forward too with rental renegotiations and consumption improvement. Debt on operational portfolio is coming down with steady annuity income while debt on under-construction portfolio is moving up with improved pace of execution.

At current price of Rs 587, stock is trading at 32.7x and 28.5x P/E and 14.1x and 13.2x EV/EBITDA on FY19/20 consolidated estimates respectively. We continue to remain positive on the company and maintain our price target of Rs 707 on FY20 estimates. Maintain BUY

12:34 PM

Elara Capital on Aurobindo Pharma

Strong US business and an emerging EU (transitioning from negative OPM into the double digits) show drivers are in place. Further, the Sandoz acquisition seems to be transacted at attractive valuations (1x sales and 5x EBITDA), which will give Aurobindo higher scale (USD 2.3bn of consolidated US sales) and diversification in the US (derma portfolio). The incorporation of Sandoz business will increase our FY20E EPS by 15-20%. We retain Buy with a targetb price of Rs 925

12:33 PM

Rich or poor, everyone is at risk from the crisis in Indian shadow banks

It’s time India’s policy makers acknowledged the real problem facing the country’s shadow banks. What they are experiencing is no longer a vanilla liquidity shortage; the entire industry has crashed against a wall of mistrust.

 

On the other side of that wall are a clutch of wealthy property developers and their middle-class customers, as well as teeming multitudes of poor. Everyone is at risk. CLICK HERE TO READ

12:18 PM

STOCK IMPACT

Motherson Sumi up 0.5% post Q3 results

12:16 PM

NEWS ALERT

Motherson Sumi Q3 net profit at Rs 389.06 crore vs Rs 364.49 crore year ago

12:03 PM

MARKET CHECK

11:48 AM

Edelweiss slips 4% after R-Power asks Sebi to ban it from trading

Shares of Edelweiss Financial Services fell as much as 4 per cent to Rs 133.65 apiece in intra-day trade on Monday, after Reliance Power asked the capital markets regulator Securities and Exchange Board of India (Sebi) to prohibit the firm from trading in the securities market. READ MORE

 

11:30 AM

Boost in US sales likely to drive re-rating of Indian pharma companies

The performance of top Indian pharma companies in the US market for the December quarter (Q3) indicates that their generics business in the world’s largest drug market might be turning the corner. Among companies that have reported their numbers, Cadila Healthcare registered its highest-ever sales in the US market with a growth of 46 per cent over the year-ago quarter. READ MORE

 

11:16 AM

Dr Reddy's falls 8% as USFDA issues 11 observations for Hyderabad facility

Shares of Dr. Reddy’s Laboratories have slipped 8 per cent to Rs 2,556 per share on the BSE in early morning trade on Monday after the company said the US Food and Drug Administration (USFDA) has issued form 483 with 11 observations for its manufacturing facility in Hyderabad. READ MORE

 

11:03 AM

YES Securities on Tata Steel

Debt levels are expected to decline further from current levels as the company finalizes its European JV and the proposal to sell stake in SEA concludes. Domestic operations are expected to report strong performance as volumes rampup and the company achieves its targeted synergies at BSL. We expect steel prices to remain around current levels as international prices have bounced back. We have a positive view on the company.

10:57 AM

Graphite India hits 14-month low on weak Q3 nos

Graphite India reported a consolidated net profit of Rs 764 crore (up 113 per cent YoY, down 31 per cent QoQ). Revenue was at Rs 1,855 crore (up 81 per cent YoY, down 21 per cent QoQ). Ebitda (earnings before interest, taxation, depreciation and ammortisation) margin was down 100 basis points sequentially at 62 per cent. READ MORE