Sensex ends 300 pts down, Nifty 1% lower; Metal, auto stocks decline

All that happened in the markets today.

3:37 PM

Nifty Auto falls over 1%

3:36 PM

Metal stocks lead fall, Nifty Metal index down over 3%

3:34 PM

Sectoral Trend

3:33 PM

Sensex heatmap

3:31 PM

Markets at Close

The S&P BSE Sensex ended at 33,747, down 300 pts while the broader Nifty50 index settled at 10,358, down 99 points

3:20 PM

Geojit on Larsen & Toubro

 

We project Sales/PAT CAGR of 12.2/17.5% over FY17-20E. Recovery in domestic business, strong order pipeline, sale of non-core assets, focus on improving RoE & working capital and healthy execution of large order backlog will drive the stock going forward. Hence, we upgrade the stock to BUY as we roll forward our valuation to FY20 with a SOTP based TP of Rs. 1,515.

3:11 PM

IDBI Bank bucks trend in weak market; zooms 51% in one month

 

IDBI Bank hit a fresh 52-week high of Rs 91.50, up 14% on the National Stock Exchange (NSE) in intra-day trade, extending its past one month rally, after the credit rating agencies revised the upwards outlook of the bank to stable from negative.

 

In past one month, the stock of state-owned bank has zoomed 51% from Rs 60.40, as compared to 2.8% decline in the Nifty 50 index. READ MORE

2:58 PM

US import tariff likely to have limited impact: Analysts

 

Metal stocks bore the brunt of US President Donald Trump’s plans of imposing 25 per cent import tariff on steel and 10 per cent on aluminium with the Nifty Metal index slipping 3.7 per cent in intra-day deals. By comparison, the Nifty 50 index lost 1.2 per cent.

 

Among individual stocks, NMDC, Jindal Steel, Jindal Stainless (Hisar), National Aluminium (NALCO), JSW Steel and SAIL slipped 4.6 per cent to 6.4 per cent during the day. READ MORE

2:43 PM

Sector watch: Infrastructure

 

We maintain our positive stance on the sector and see EPC companies delivering superior returns over the next 12-18 months, after a muted FY17. Our top picks are NCC, Ahluwalia Contracts, and Ashoka Buildcon. 

 

We also like PNC Infratech and KNR Construction but while PNC is likely to remain subdued in the near termdue to its stuck projects in UP/Bihar, KNR appears expensive on valuations. ITD Cementation appears expensive, especially with its execution track record of last few quarters and its unattractive positioning with respect to segments with maximum opportunity

 

(Source: Phillip Capital)

2:31 PM

Market Check

 

S&P BSE Sensex	33,793.93		-0.74%
Nifty 50	10,363.35		-0.91%
S&P BSE 200	4,531.86		-0.88%
Nifty 500	9,137.00		-0.96%
S&P BSE Mid-Cap	16,319.60		-0.86%
S&P BSE Small-Cap	17,884.87		-1.11%

2:26 PM

LTCG tax: Gold, real estate may see revival over the next year

The change in long-term capital gains (LTCG) tax on equity coupled to the related tax on equity-oriented funds could lead to significant changes in investment strategies for investors. To recap, the tax-meter starts ticking only from a base date of January 31, 2018 due to the ‘grandfathering’ concept. The price of a stock on January 31, 2018 is used for calculating LTCG. (A more complicated formula is used for mutual funds where systematic investment plans (SIPs) complicate the question of acquisition price). READ MORE

2:18 PM

Sugar shares hit 52-week lows; Balrampur Chini down 10%

 

Shares of most sugar companies were trading at their respective 52-week lows on concerns of renewed pressure on the sweetener prices, if the final production would be higher than the current estimates.

 

Balrampur Chini Mills, Dwarikesh Sugar Mills, Bannari Amman Sugars, Bajaj Hindustan, Mawana Sugars and Thiru Arooran Sugars are among 12 sugar stocks that hit their respective 52-week lows on the BSE in intra-day trade on Monday. READ MORE

2:08 PM

RInfra serves notice to Pipapav Defence promoters for Rs 54.40 bn claims

Reliance Infrastructure (RInfra), along with its subsidiary issued an arbitration notice against founder promoters of Pipapav Defence and Engineering for claims aggregating to Rs 54.40 billion for breach of warranties under the purchase agreement. READ MORE

1:59 PM

Merchandise exports must grow 27% CAGR to capture 5% world mkt: ex-advisor

While the average peak customs duty is 10 per cent, the effective rate is just 2.8 per cent due to various concessions and exemptions given to exports. This is a double-edged sword, since India is losing on negotiations in the World Trade Organisation because of its high tariff, whereas in practice the effective rate is very low. READ MORE

1:51 PM

Sectoral Trend

1:38 PM

InterGlobe stock to catch up: Premium valuation to continue, say analysts

The stock of InterGlobe Aviation, which operates the IndoGo airline, after lagging peers in the past, has gained 13 per cent in the last one month and been hitting new 52-week highs recently.

 

This is on expectation of strong double-digit growth in passenger traffic, gradual pick-up in capacity and improving yields, in line with the performance seen in the December 2017 quarter. READ MORE

1:24 PM

Loan defaults: Sebi plans to push for disclosures by listed firms in a day

Seeking to join forces with other agencies to check financial frauds, regulator Sebi plans to make it mandatory for listed companies to make urgent disclosure about all major loan defaults. READ MORE

1:15 PM

Steel Strips Wheels extends gain post February sales

Steel Strips Wheels (SSWL) was trading 3% higher at Rs 1,060, extending Thursday’s 1% gain on the BSE in an otherwise weak market, after the company reported 12% year on year (YoY) growth in total wheel rim sales of 1.3 million units in February 2018. It had sold total 1.17 million units during the same month last year. READ MORE

1:00 PM

Market Check

 

S&P BSE Sensex	33,692.70		-1.04%
Nifty 50	10,340.80		-1.12%
S&P BSE 200	4,518.77		-1.16%
Nifty 500	9,118.60		-1.16%
S&P BSE Mid-Cap	16,278.80		-1.11%
S&P BSE Small-Cap	17,853.85		-1.28%

12:56 PM

IPO watch: Arihant Capital on Sarveshvar Foods

 

Sarveshwar Foods Limited primarily engaged in the business of processing and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets. Company operations are based in the Jammu Region in the State of Jammu and Kashmir.

 

Company has shown strong financialperformance this year with improving organic product mix in the revenue. The issue has been offeredat a price band of Rs 83-85 per equity share. At the upper price band of Rs 85, the stock is available at adjusted P/E of 15.9 x its FY17 EPS of Rs5.33 (adjusted for equity shares outstanding after the issue). We have “3 star” rating for the

issue.

 

12:55 PM

FinMin likely to share details of 80:20 gold import scheme with PAC

Finance Ministry officials are likely to share all details related to the 80:20 gold import scheme with Parliament's Public Accounts Committee, sources said on Monday.
 

The move comes after BJP members of the panel alleged it was misused by jewellers including Mehul Choksi for money laundering. READ MORE

12:47 PM

Phillip Capital on ITD Cementation

 

ITDC delivered weak results yet again, with 16% yoy decline in topline. This was the sixth consecutive quarter of yoy decline for ITDC a testimony of its weak and highly volatile performance. With 30% yoy decline in CY17 revenues, the company has now reported 6% revenues CAGR over CY14-17. 

 

Also, with the company having a weak presence in roads, buildings and irrigation segments where the focus of the present govt appears to be the future growth potential appears bleak. All along, the stock remains one of the most expensive stock in the infrastructure space trading at 17x CY19 P/E. We maintain SELL.

12:40 PM

In 2018, China sets a GDP growth target of 6.5%, same as last year

China aims to expand its economy by around 6.5 percent this year, the same as in 2017, while pressing ahead with its campaign to reduce risks in the financial system, Premier Li Keqiang said Monday.

 

The goal was kept unchanged even though the economy grew 6.9 percent last year and exceeded the government's target. Sources previously told Reuters that China will maintain its growth target at "around 6.5 percent". READ MORE

12:33 PM

Proxy advisory firm questions exemptions in Rs 369-bn ONGC-HPCL deal

Proxy advisory firm IiAS has questioned state-owned ONGC seeking exemption from taking shareholders' nod for acquisition of the government's stake in HPCL, saying such leniency with regard to public votes is not warranted.
 

Oil and Natural Gas Corp (ONGC) bought the government's 51.11 per cent stake in Hindustan Petroleum Corp Ltd (HPCL) for Rs 369.16 billion. READ MORE

12:23 PM

BSE Smallcap: The Phoenix Mills, Thomas Cook (India) among top gainers, Sunflag Iron & Steel top loser

12:14 PM

Thomas Cook (India) rallies 10%; Quess Corp falls nearly 10% in intra-day

 

Shares of Thomas Cook (India) rallied 10% to Rs 266 on the BSE in intra-day trade in otherwise weak market after the company said that the board of directors has given consent to the management to explore the possibility of an internal corporate restructuring exercise.

 

“The restructuring exercise that would enable the company to focus on travel related business. The management would also look at providing shareholders of the company direct exposure and shareholding in the business of Quess Corp and enhance the stakeholders value,” Thomas Cook (India) said in a regulatory filing. READ MORE

12:04 PM

Prabhudas Lilladher on Voltas

We recently met Voltas’ management and came back confident about the medium / long term opportunities for the company. Management highlighted that: (a) the Carillion bankruptcy is not another Sidra‐like episode in the making as the main contractor is the major partner is a local well‐to‐do business house and the customer is also keen to complete the project at a fast pace, (b) strong margin performance in the MEP segment is an outcome of prudent risk management and discipline of taking good quality orders which Voltas has maintained over the last few years and (c) the company continues to see improved traction in order pipeline in the MEP segment, both in domestic and overseas markets.

12:01 PM

Motilal Oswal Research on HDFC Bank

We expect HDFC Bank to record 23% loan book CAGR and 24% PAT CAGR over FY18 - 20E, with RoA/RoE of 1.96%/17.4% in FY20E (RoE is suppressed as we have built in capital raise of Rs 240 billion in our numbers). While margins may contract slightly due to intensifying competition, its robust fee income profile and strong control on operating leverage will continue driving a steady improvement in the return ratios (12bp improvement in RoA over FY18-20E). We arrive at a target price of Rs 2,400 (3.9x Mar’20E ABV and INR103 for subs) and maintain our Buy rating.

11:55 AM

Lupin stock in 2017 global worst-performer list, says Evaluate report

Lupin was among the five worst-performing mid-cap pharma stocks globally in 2017, according to a report by Evaluate — an UK-based market intelligence firm. The drug major’s stock price fell 40 per cent and its market capitalisation declined $3.9 billion to $6.1 billion in 2017. READ MORE

11:45 AM

BSE Midcap: Jindal Steel, SAIL among top losers, Vakrangee top gainer