Sensex ends up 295 pts, Nifty above 10,500; Realty, Pharma, Metals gain

All that happened in markets today.

3:51 PM

MARKET COMMENT: Jayant Manglik, President, Religare Broking

 

Markets witnessed a breather today and gained nearly a percent, taking pause after the recent decline. Nifty opened gap-up, tracking firm global cues but profit taking at higher levels capped upside. Meanwhile, participants were busy in bargain hunting and almost all the sectoral contributed in the move.

 

We feel global cues will continue to dominate our market trend, in absence of any major event. Nifty may some bounce or consolidate further however sustainability at higher level seems difficult. Traders should use further recovery to reduce existing longs and creating fresh shorts. PSU banks are still weakest while others are seeing mixed trend

3:40 PM

Top Sectoral gainer: Nifty Realty

3:38 PM

Sectoral Trend

3:37 PM

Sensex losers and gainers

3:36 PM

Market at close

The S&P BSE Sensex ended at 34,300, up 295 points while the broader Nifty50 index settled at 10,540, up 85 points.

3:21 PM

Edelweiss Research on ONGC's Q3FY18 results

 

Key highlights: 1) gas production growth at 4% missed 6% estimate, due to delay in Vashista project, which will likely ramp up to 2.5mmscmd by Mar’18; 2) net realisation at USD61/bbl was inline, implying no oil subsidy; 3) cash cost/barrel at USD9/bbl came 4% higher on one-off depletion expense, which will normalise in Q4FY18. We expect ONGC’s Rs 800bn projects under implementation to significantly revive gas production (FY17-20E CAGR of 8%). 

 

We have trimmed FY19E gas production by 2%, factoring in slight delay in projects commissioning, and introduced contribution from OPAL (ONGC’s stake: 49%). Maintain ‘BUY’ with DCF-based target price of Rs 239

3:21 PM

Protectionism, again: Joint action by stock exchanges raises concerns

 

The joint statement issued by three stock exchanges on Friday — deciding to immediately terminate the agreements for licensing indices and prices of Indian securities to foreign exchanges — raises concerns on several fronts. The action constitutes protectionism, which harms a market (Singapore Stock Exchange, or SGX) that has served global investors well. READ MORE

3:19 PM

IPO watch: Aster DM (Source: Choice Research)

3:15 PM

Centrum Broking on Deccan Cements Limited (DCL)

 

Despite earnings decline seen during FY17/18 (on DCL’s  peak performance in FY16), we continue to like DCL owing to following: robust demand across south and Maharashtra markets will boost DCL’s earnings, DCL’s debt free balance sheet along with no near term capex requirement will bolster free cash generation. This should boost DCL’s capability to undertake future expansion (probably during FY20-22) without leveraging its balance sheet. We roll forward valuations to FY20E. Thus, we maintain BUY with a revised target price of Rs 720

3:12 PM

Centrum Broking on Sun TV Network

 

We maintain our BUY rating on Sun TV Network with revised target price of Rs1170 (28x FY20E EPS) as we roll forward our valuations to FY20E. We expect the ad growth momentum to continue going forward as witnessed in Q3FY18E where the company posted 22% YoY growth. Further investment in comissioned programming to bear fruits in medium term. Digitisation in TN could offer the company incrementally Rs3bn in reveneus and management is in advance stage to sign contract with Arasu Cable. Turnaround in IPL from FY19E would further aid margins and profitibility

3:09 PM

Gold funds losing sheen? Investors pull out Rs 6.79 bn in 10 months of FY18

 

Investors have pulled out Rs 1.1 billion from gold exchange-traded funds in January, taking the total outflow to Rs 6.79 billion in the first 10 months of the current fiscal, mainly on account of poor returns.

 

The outflow meant assets under management (AUM) of gold funds plunged by over 15% during the period under review to Rs 49.06 billion from Rs 56.70 billion in the year-ago period, latest update with the Association of Mutual Funds in India (Amfi) showed. READ MORE

2:59 PM

Here's why the new order by Indian bourses may spook foreign investors

 

A move by Indian exchanges to stop licensing its products and data to bourses abroad will likely force foreign investors into a tough option: migrate their trading onshore to India, with its uncertain regulatory environment and higher taxes, or give up their exposure to a hot emerging market.

 

India's three main stock exchanges - the National Stock Exchange, BSE Ltd and Metropolitan Stock Exchange - said Friday they would stop licensing products and data to foreign exchanges to prevent trading from migrating overseas. READ MORE

2:46 PM

Robust IIP seen in December, though a tad lower than November's 17-mth high

 

After registering the highest growth in 17 months in November, the index of industrial production (IIP) may remain robust in December, lead indicators point out. This is largely due to the low base effect a year ago, which was brought about by demonetisation. Consumer price index (CPI)-based inflation also hit a 17-month high in December, but may cool down a bit in January.

 

IIP data for December, out in this evening along with CPI for January, will be crucial for the second advance estimates of GDP for 2017-18, which will be released by the end of this month. IIP constitutes only a fourth of the data for industry in GDP these days, with the bulk taken from corporate results filed with MCA 21 or the stock exchanges. Also, price deflators in GDP are different from CPI inflation or even WPI inflation, but may correspond to broad movements. CLICK HERE FOR FULL STORY

2:30 PM

Flight of risk capital: GVA growth likely to fall in second half of 2018-19

 

Inflation worries prompted the Reserve Bank of India to maintain status quo in the latest Monetary Policy Review. While five Monetary Policy Committee members voted to hold rates, one wanted a hike. The central bank thinks growth is rebounding.

 

But it sees multiple threats on the inflation front, including an inflationary Budget. Strong job growth in America makes it likely that the US Federal Reserve will accelerate normalisation, by hiking interest rates faster and selling off excess bonds acquired during the taper years. READ MORE

2:17 PM

Tata Steel surges 5% on strong Q3 results

 

Tata Steel has moved higher by 5% to Rs 718 on BSE in noon deal, extending its Friday’s nearly 2% gain after the company reported nearly five-fold jump in a consolidated net profit of Rs 11.35 billion for the third quarter ended December 2017 (Q3FY18), on the back of higher revenues mainly from domestic operations.

 

The company had reported a net profit of Rs 2.31 billion in the third quarter of 2016-17. CLICK HERE FOR FULL STORY

2:00 PM

Market Check

S&P BSE Sensex	34,198.65		0.57%
Nifty 50	10,508.20		0.51%
S&P BSE 200	4,616.74		0.73%
Nifty 500	9,329.30		0.85%
S&P BSE Mid-Cap	16,853.85		1.32%
S&P BSE Small-Cap	18,481.87		1.70%

1:45 PM

2018 will be a roller-coaster ride, it's time to say Dow-Wow to Sensex

 

The over 6% fall in the Bombay Stock Exchange Sensex, and the commensurate fall in the Nifty had almost nothing to do with what Arun Jaitley did – or did not do – in his 1 February budget. You can yell and scream about the long-term capital gains tax on shares, or the slight slippage in the fiscal deficit this fiscal, blaming both for the market crash, but just look at the Dow and you will get some sense of schadenfreude. The Dow fell more than 10% between 26 January and 8 February. READ MORE

1:34 PM

SBI's $3.6 bn in hidden bad loans shows how deep India's banking rot runs

 

India’s regulator unearthed about $3.6 billion of bad loans in the books of the country’s biggest bank, amplifying questions about distress in the financial sector given underreporting by some rivals as well.

 

State Bank of India on Friday said an audit by the central bank showed soured debt was about Rs 232 billion ($3.6 billion) higher than what the state-run lender reported for the end of March 2017. The biggest private lender HDFC Bank Ltd. had a Rs 20.5 billion divergence, while ICICI Bank Ltd. said -- without elaborating -- that it isn’t required to make disclosures on the topic even as provisions for bad loans climbed. It had reported a divergence in the previous year. READ MORE

1:12 PM

Indian market shows grit amid global collapse, slides least in sell-off

 

For years now, India equities have marched in lockstep with global equities. If we go back a decade, our benchmark indices slumped in sync with other global indices in the aftermath of the Lehman Brothers collapse. Then again, they rallied with other global indices when a stimulus package was announced in the US in 2009.

 

The fall in the past week, too, was in line with global equities. What's surprising, however, was that the slide was not to the extent expected. CLICK HERE FOR FULL STORY

12:58 PM

Vakrangee up 5% as board approves capital allocation for buyback, dividend

Vakrangee is locked in upper circuit for the second straight day, up 5% at Rs 212 on BSE after the company said its board approved the current one time capital allocation policy with Rs 13.72 billion to be utilized through share buyback, dividend payout and re-invest in business. READ MORE

12:39 PM

Kitex Garments falls 15% on weak Q3 results

Kitex Garments has dipped 15% to Rs 246 on BSE in noon deal trade in otherwise firm market after the company reported 45% year-on-year (YoY) decline in its net profit at Rs 176 million for the quarter ended December 2017 (Q3FY18), due to higher expenses. The textiles company had profit of Rs 318 million in a year ago quarter.
 

Operational revenue during the quarter under review rose 3.4% to Rs 1,473 million from Rs 1,424 million in the corresponding quarter of previous fiscal. READ MORE

12:26 PM

Here's why the new order by Indian bourses may spook foreign investors

 

A move by Indian exchanges to stop licensing its products and data to bourses abroad will likely force foreign investors into a tough option: migrate their trading onshore to India, with its uncertain regulatory environment and higher taxes, or give up their exposure to a hot emerging market.

 

India's three main stock exchanges - the National Stock Exchange, BSE Ltd and Metropolitan Stock Exchange - said Friday they would stop licensing products and data to foreign exchanges to prevent trading from migrating overseas READ MORE HERE

A road sign is seen next to Bombay Stock Exchange (BSE) building in Mumbai, India | Photo: Reuters

12:18 PM

Morgan Stanley on India inflation

 

We expect headline CPI inflation to moderate to 5.0% y-o-y in January from 5.2% previously, after rising consecutively for five months. High frequency indicators suggest that food prices have fallen sequentially, largely driven by a seasonal dip in vegetable prices – implying that food inflation would also moderate on a y-o-y basis to 4.5% y-o-y versus 5.0% y-o-y in December. We expect core (ex food and fuel) inflation to record a slight dip and reach 5.0% y-o-y from 5.1% y-o-y in December, with core-core (ex food, fuel and housing) inflation remaining largely steady at 4.3% y-o-y

12:17 PM

Sectoral Trend

12:14 PM

Loan slippage mars quarterly profit for Bank of Baroda: IDBI Capital

 

Bank of Baroda (BoB) reported its 3QFY18 results with the key strategic pointers being: (1) Three large corporate accounts slipped, thereby depressing profit. (2) Loan growth seems optically high as 3QFY17 was a multi-quarter low for the loan book. Per se, on the results front, BoB posted NII growth of 40% YoY to Rs 43.9bn, PPOP growth of 41% YoY to Rs36.5bn and PAT decline of 56% YoY to Rs1.1bn. We have marginally modified our legacy estimates for FY18/FY19 and retained Sell rating on BoB, decreasing our target price to Rs146 (from Rs152 earlier), valuing the stock at 1.3x FY20E P/ABV

 

12:13 PM

Sensex losers and gainers

12:09 PM

Edelweiss on HPCL

 

HPCL declared interim dividend of Rs 14.5/share, implying attractive 4% interim yield. We expect HPCL’s EPS growth to lag peers in the absence of near term refining expansions (projects to commission in FY20). Maintain ‘HOLD’ with SoTP based target price of Rs 440 (on FY20E earnings). 

12:06 PM

Markets at noon

S&P BSE Sensex	34,228.33		0.65%
Nifty 50	10,515.20		0.58%
S&P BSE 200	4,620.48		0.82%
Nifty 500	9,335.90		0.92%
S&P BSE Mid-Cap	16,867.78		1.40%
S&P BSE Small-Cap	18,477.10		1.67%

12:05 PM

HDFC Securities on Alkem Lab

 

We expect some correction in the stock price owing to higher tax rate guidance and very conservative margin commentary from the mgt going into FY19E. While we have lowered our estimates for FY19/20E to factor in these changes, we believe that the long-term story for ALKEM remains on-track and investors should consider any dip in the stock price as an opportunity to add. Maintain BUY with a revised target price of Rs 2,435 (25x Dec-19E EPS).

12:03 PM

BS Special: 2018 will be a roller-coaster ride, it's time to say Dow-Wow to Sensex

 

The prediction for 2018 is thus high volatility in prices, a shift to large-cap stocks by all investors seeking safety, and a Sensex range of 30,000-40,000, depending on news flows READ MORE