MARKET WRAP: Sensex ends 115 pts lower, Nifty at 10,741; PSU banks slip

Among sectoral indices, the Nifty PSU Bank index ended nearly 2% lower led by a fall in the shares of Syndicate Bank, Union Bank of India and Punjab National Bank.

3:54 PM

MARKET COMMENT Mustafa Nadeem, CEO, Epic Research 

Indecisiveness, Bank Nifty expiry along with negative global cues saw Nifty drift below 10,800 and lose marginal points to make a 'Bearish belt hold' pattern. A bearish belt hold is a one candle bearish formation which has a Shaven head; The high and Open for the day is identical while the close is just a tad higher from the days low. A shaven head indicates the selling pressure on the upside which persists as it was heavy since the open of the day. A close near to the day low indicates the further bearish sentiment. 

 

It has been the sixth consecutive day where we have seen Nifty trading between the range of 10850. It was bank Nifty weekly expiry that called in writers to take advantage. We expect the market to remain positive while the time may further test the patience of bulls. We maintain the 'buy on a dip' strategy though all eyes will be on the OPEC meet and price of crude oil. 

 

3:51 PM

COMMENT Indranil Sen Gupta, economist, AsiaPac, India, Bank of America Merrill Lynch

 

Dovish Reserve Bank of India (RBI) minutes support our call that the RBI Monetary policy committee (MPC) will be on hold if rains are normal. We would have preferred that the RBI MPC wait out growth/inflation base effects rather than hike rates on 6 June at this stage of recovery. Still, this puts policy uncertainty out of the way. ‎That said, markets do need to calm down and stop wishing rate hikes on itself (and the RBI).  In fact, the retention of neutral stance should indicate that this is not a tightening cycle. 

3:37 PM

Nifty sectoral losers of the day

3:34 PM

BSE Sensex: ICICI Bank, Reliance among top gainers of the day, M&M, ONGC top losers

3:31 PM

Market at close

 

The S&P BSE Sensex ended at 35,432, down 115 points while the broader Nifty50 index settled at 10,741, down 31 points.

3:11 PM

Jubilant FoodWorks, Emami turn ex-bonus in ratio of 1:1

Shares of restaurant company Jubilant FoodWorks and personal products firm Emami have turned ex-bonus in the ratio of 1:1 today.

The board of directors of Jubilant FoodWorks and Emami at their respective board meetings, have announced issue of bonus shares in the ratio of 1:1 i.e. 1 equity share for every 1 equity share held as on the record date. READ MORE

3:03 PM

Gold prices drop to six-month low on strong dollar, US rate outlook

Gold prices posted a six-month low on Thursday, weighed down by a firm dollar and as the US Federal Reserve Chair kept its outlook for higher interest rates. Spot gold fell 0.4 per cent to $1,262.88 an ounce. It hit its lowest since Dec. 20 at $1,261.36 earlier, having lost about 3 per cent over the last five sessions. READ MORE

2:45 PM

Manpasand Beverages rebounds from record low; stock tanks 70% in one month

 

Shares of Manpasand Beverages are locked in upper circuit of 5% at Rs 142 per share, bouncing back 9.5% from their intra-day low on the BSE, after the company said that its board will meet on June 27, to consider audited financial results for the quarter and year ended March 31, 2018 and to recommend dividend.

 

The stock of the fruit juice maker hit a record low of Rs 129 in intra-day trade earlier today, and has tanked 70% in past one month, as compared to 4.4% rise in the S&P BSE Sensex. The stock hit an all-time high of Rs 512 on September 15, 2017 on the BSE in intra-day deal. READ MORE

2:30 PM

Crude Update: 

 

Oil prices dipped as Iran signaled it could be won over to a small rise in OPEC crude output, likely paving the road for the producer cartel to agree on a supply increase during a meeting on June 22.

 

However, prices were prevented from falling further by record refinery runs in the United States and a large decline in US crude inventories, a sign of strong fuel demand in the world's biggest economy.

2:15 PM

Shares in PNB fall after internal probe finds widespread lapses

Shares in India's Punjab National Bank fell as much as 3 percent on Thursday, a day after Reuters reported the bank's internal investigation into its $2 billion fraud had found widespread risk-control and monitoring lapses in many areas of the bank. READ MORE

2:00 PM

Market Check

 

S&P BSE Sensex	35,562.21		0.04%
Nifty 50	10,774.05		0.02%
S&P BSE 200	4,651.43		-0.07%
Nifty 500	9,269.15		-0.08%
S&P BSE Mid-Cap	15,822.90		-0.18%
S&P BSE Small-Cap	16,596.01		-0.38%

1:46 PM

China's stock market staring at a nightmare, thanks to trade war with US

The nightmare is returning, three years after China’s last futile attempt to save its stock market. On Tuesday, 1,023 companies fell by the daily 10 per cent limit amid concerns over escalating trade conflict with the U.S. Already among the worst performers in Asia this year, the benchmark Shanghai Composite Index plunged 3.8 per cent to bring its 2018 loss to about 11 per cent. READ MORE

1:31 PM

Headwind for silver before outshining gold: Analysts

Bullion traders are waiting with bated breath for the bearish trend in gold to silver ratio to resume during which silver outperforms gold. They expect the gold to silver ratio to fall to 72 and then to 68 before it starts rising again. However, international experts suggest headwind for silver before it outperforms gold.

 

During the recent rout in base metals, following the trade war triggered by the US, ratio punters were proved wrong and silver price fell sharply compared to gold. As a result, the ratio of gold to silver price has also seen some increase in the last few days. READ MORE

1:16 PM

Cement companies under pressure; UltraTech Cement, Ambuja hit 52-week low

Shares of cement companies were under pressure with most of the frontline stocks hitting 52-week lows on concerns of a delay in the pickup of demand trends, lower-than-expected pricing realizations and higher-than-expected increases in costs.

 

UltraTech Cement, Ambuja Cement, ACC, JK Cements, Shree Cement, India Cements and Panyam Cement have hit their respective 52-week lows on the BSE in intra-day trade on Thursday. READ MORE

1:00 PM

Volume Toppers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
ADANI PORTS	371.25	5.25	1.43	55352942
INFIBEAM INCORP.	155.00	-0.30	-0.19	6676787
JP ASSOCIATES	17.00	0.05	0.29	3021342
REL. COMM.	15.05	-0.25	-1.63	2952624
H F C L	32.30	-1.65	-4.86	1994333

12:45 PM

Bank of Baroda hits over two-year low; falls 10% in one week

Shares of Bank of Baroda (BOB) hit an over two-year low of Rs 123 per share, down 2%, extending their 8% decline on the BSE in the past five days. The stock of state-owned bank was trading at its lowest level since February 2016. READ MORE

12:28 PM

Street bets on Torrent Pharma's domestic business

The Torrent Pharma stock has risen 20 per cent since its March lows and is currently trading near its 52-week high. Street sentiment remains strong on its domestic growth, as was seen in the March quarter performance.

 

With the pharma market growth crossing 10 per cent in May, sentiment for domestic-focused firms such as Torrent has improved further. READ MORE

12:15 PM

BSE seeks clarity from Sebi on licensing with Dubai, Deutsche exchanges

 

Leading bourse BSE will seek clarity from the Securities and Exchange Board of India (Sebi) over the expiry date for licensing of tie-ups. The exchange has tie-ups with the Dubai Gold and Commodity Exchange (DGCX) and Deutsche Börse for offshore derivatives trading in S&P BSE Sensex contracts. The agreements end in August.

 

A licensing agreement of the National Stock Exchange (NSE) with the Singapore Exchange (SGX) has got extended till April 2019, due to pending arbitration. READ MORE

12:04 PM

IPO WATCH RITES Limited IPO subscribed 0.60x at the EOD 1.

 

QIB: 0.02x, HNI 0.19x, Retail 1.64x  and Employees 0.23x

 

12:01 PM

Jefferies on Infosys

We expect a gradual acceleration in growth for Infosys over FY19-21E helped by stability in management and renewed focus on execution, especially around winning larger digital deals. Management has cut EBIT margin guidance for FY19E to 22-24% vs. 24.3% achieved in FY18, lowering expectations. News flow on large deal wins and better than expected growth/upward revision in guidance are key catalysts. Valuation is reasonable both in the context of its own historical range and relative to TCS, making risk-reward favorable.

12:00 PM

Prabhudas Lilladher on ITC

We reiterate BUY on ITC given that the stock is available at 22.4x FY20 EPS (50% discount to large cap consumer names) and offers 2% dividend yield due to FEAR related to cigarette tax increases. However, we expect relatively moderate increase in cigarette taxes in medium term given 1) Rs200bn surplus and robust compensation cess collections in April and May 2018 and 2) 18-40% advalorem component in cigarette GST. We estimate 3% volume growth and double digit EBIT growth in cigarettes given low base and improved product mix. (FY18, 6.6% EBIT growth on 3.3% volume decline).

12:00 PM

Markets at noon

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	35513.48	35547.33	-33.85	-0.10
	14689.46	14715.02	-25.56	-0.17
	15822.96	15851.90	-28.94	-0.18
	16600.00	16659.05	-59.05	-0.35
	4182.21	4188.42	-6.21	-0.15

11:59 AM

ICICI Securities on TCS

TCS board has approved a proposal to buy back shares for an aggregate amount not exceeding Rs 16,000 crore. TCS will repurchase upto 7.6 crore of shares (1.99% of its equity) at Rs 2,100/share. The buyback along dividend payout is broadly in line with management intention of pay out ~80-100% of FCF to shareholders. It should also improve its return ratio by 400-500 bps as buyback + dividend payout should utilise (~50% of its cash & investments).

We upgrade our EPS estimates by 3-5% on account of revision in exchange rate (Rs 67 for FY19E & FY20E). Nonetheless, we maintain our Hold recommendation

with revised price target of Rs 1850/share due to rich valuation.

11:56 AM

Edelweiss on RIL

Reliance Industries’ (RIL) FY18 annual report (AR) analysis highlights robust improvement in profitability, operating cash flow (OCF) and return ratios. This was led by commercialisation of several capex-heavy businesses—RJIO, ROGC & down-stream units and ethane project. Scale up of aforesaid capacity along with commissioning of pet coke gasification project is likely to yield significant operating leverage benefits. Trade and other payables significantly cushioned OCF.

While details of the pre-operative cost capitalised by RJIO in FY18 is unavailable, its opex costs are significantly lower compared to peers. Our calculations indicate that RJIOs depreciation cost stood at 3.0% and 2.5% on tangible and intangible assets versus peers’ ~9.0% and ~4.5%, respectively. The retail segment includes RJIO’s prepaid connection sales, adjusted for which retail segment’s revenue grew ~40% (ex- RJIO) versus ~105% (including-RJIO). Other income’s contribution to PBT declined further to 18% (FY17: 24%, FY16: 31%).

11:46 AM

Headwind for silver before outshining gold: Analysts

 

Bullion traders are waiting with bated breath for the bearish trend in gold to silver ratio to resume during which silver outperforms gold. They expect the gold to silver ratio to fall to 72 and then to 68 before it starts rising again. However, international experts suggest headwind for silver before it outperforms gold.

 

During the recent rout in base metals, following the trade war triggered by the US, ratio punters were proved wrong and silver price fell sharply compared to gold. As a result, the ratio of gold to silver price has also seen some increase in the last few days. READ MORE

11:31 AM

Tata Beverages eyes market share gains, cost control to improve revenues

A weak March-quarter performance led to a 12 per cent decline for the Tata Global Beverages stock. But prior to the recent fall, the stock had doubled in value on the back of the company’s restructuring exercises, which included divesting of loss-making units in its international operations, such as those in Russia and China. READ MORE

11:15 AM

Top BSE500 gainers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
VAKRANGEE	50.00	2.35	4.93	40333
MPHASIS	1108.45	46.50	4.38	13359
PTC INDIA FIN	18.80	0.75	4.16	208054
FIRSTSOUR.SOLU.	74.75	2.60	3.60	1364140
CG POWER & INDU.	55.20	1.80	3.37	595939

10:59 AM

Reliance Industries hits new high; stock surges 50% from 52-week low

Shares of Reliance Industries (RIL) hit a new high of Rs 1,031, up 1% on the BSE in intra-day trade on Thursday. The market value of the Mukesh Ambani-led RIL appreciated by 50% from its 52-week low of Rs 686 recorded on July 3, 2017 in intra-day deal. READ MORE

10:45 AM

ICICI Prudential AMC's Iyengar to join Indiabulls AMC as chief executive

Raghav Iyengar, who had been heading the institutional and retail business at ICICI Prudential Asset Management Company (AMC), has resigned and is slated to join Indiabulls AMC as its chief executive officer (CEO). READ MORE

10:30 AM

Bank of Maharashtra hits record low as CMD gets arrested in DSK Group scam

Shares of Bank of Maharashtra hit a record low of Rs 12.50 per share, falling 7% on the BSE in early morning trade after a media report suggested that the Economic Offences Wing (EOW) arrested Ravindra P. Marathe, the Chairman and Managing Director (CMD) of the bank, in a case of Rs 30 billion fraudulent loans extended to Pune's DSK Group. READ MORE