MARKET WRAP: Sensex cracks 341 pts as banks, IT drag; YES Bank falls 9%

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3:54 PM

Nifty Bank index falls 1.6%. Top loser:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
YES BANK	180.70	198.35	-17.65	-8.90	95725292
AXIS BANK	537.70	561.05	-23.35	-4.16	9216939
INDUSIND BANK	1445.80	1491.10	-45.30	-3.04	2262994
KOTAK MAH. BANK	1158.60	1185.80	-27.20	-2.29	1841944
IDFC BANK	33.35	34.05	-0.70	-2.06	11684766

3:39 PM

Sectoral gainers & losers on NSE

3:38 PM

S&P BSE Sensex: Top gainers & losers

3:35 PM

Market at close

 

The S&P BSE Sensex shed 341 points or 1 per cent to settle at 33,349 while NSE's Nifty50 index slipped below 10,050 level to settle at 10,030, down 95 points or 1 per cent. 

3:26 PM

STOCK ALERT

Shares of Indian Overseas Bank (IOB) jump 11% after Q2 loss narrows to Rs 4.87 million against Rs 12,225 million in the year-ago period.

3:15 PM

ITC Q2FY19 profit up 12% at Rs 29.55 billion vs 26.40 billion

Diversified group ITC on Friday reported 11.92 per cent rise in standalone net profit to Rs 29.55 billion for the quarter ended September 30, 2018. The company had posted a net profit of Rs 26.40 billion in the second quarter of 2017-18, ITC said in BSE filing. READ MORE

3:01 PM

Oil prices fall as Saudis warn of looming oversupply, global markets slump

Oil prices fell on Friday and were heading for a third weekly loss, as Saudi Arabia warned of oversupply amid a slump in global equities and trade that clouds the outlook for fuel demand.

 

Brent crude futures were down 49 cents, or 0.6 per cent, at $76.40 a barrel. The global benchmark is on course for a weekly loss of over 4 per cent. US crude was down 59 cents, or 0.9 per cent, at $66.74. The US benchmark is set for a 3.5 per cent loss this week. READ MORE

2:46 PM

Reliance General Q2 profit up 20% at Rs 56 crore

Reliance General Insurance Company (RGI) Friday reported 20 per cent rise in profit at Rs 56 crore for the second quarter ended September 30, 2018. Gross written premium too surged 20 per cent to Rs 2,025 crore during the quarter, it said in a statement. READ MORE

2:27 PM

Nifty IT index hits four-month low; TCS, Infosys down 2%

 

Shares of frontline information technology (IT) companies were under pressure with the Nifty IT index hitting a four-month low on Friday. Tata Consultancy Services (TCS), Infosys and HCL Technologies from the Nifty IT index were trading lower in the range of 2% to 3% on the National Stock Exchange (NSE). READ MORE

2:15 PM

NEWS ALERT

ITC posts 11.9 per cent YoY rise in Q2 net profit at Rs 29.55 billion against Rs 28.19 billion in the year-ago period. Stock drops nearly 4 per cent. 

2:04 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,583.40	-106.69	-0.32
S&P BSE SENSEX 50	10,559.52	-33.48	-0.32
S&P BSE SENSEX Next 50	29,771.80	-52.16	-0.17
S&P BSE 100	10,322.69	-30.55	-0.30
S&P BSE Bharat 22 Index	3,274.67	-29.94	-0.91

(Source: BSE)

1:49 PM

Trade war drawing China, Japan into an embrace? A $30-bn pact offers clues

China and Japan on Friday pledged to forge closer ties as both countries stood together at an "historic turning point", signing a broad range of agreements including a $30 billion currency swap pact, amid rising trade tensions with Washington.

 

Japanese Prime Minister Shinzo Abe and Chinese Premier Li Keqiang also agreed the two countries would work together to achieve denuclearisation on the Korean Peninsula. READ MORE

1:34 PM

Gold prices hit six-year high on festive buzz and firm global cues

Gold prices rose on Thursday by '125 to trade at a six-year high of '32,625 per 10 gram. The prices were buoyed by a pick-up in festive and wedding season demand by local jewellers, amid firm global trends and a weakening rupee.

 

Silver, however, remained weak, and fell by Rs130 to Rs 39,600 per kg due to slackened demand from industrial units. Silver coins remained unaltered at Rs76,000 for buying and Rs 77,000 for selling of 100 pieces. READ MORE

1:21 PM

Board of Equitas SFB to meet in November to finalise listing steps

Boards of Equitas Holdings and Equitas Small Finance Bank (ESFBL) will meet next month to finalise steps to listing of the lender to meet the RBI regulations.

 

ESFBL, wholly-owned subsidiary of Equitas Holdings, was granted licence to operate as small finance bank. Under the licensing norms, the bank has get listed within three years from the date of commencement of operations -- by September 4, 2019. READ MORE

1:01 PM

Sterlite Technologies extends gain on strong Q2 results

Shares of Sterlite Technologies have moved higher by 6% to Rs 346 per share, extending their 2% gain in the past two days in an otherwise weak market, after the company reported a strong 84% growth in net profit at Rs 1,310 million in September quarter (Q2FY19). It had a profit of Rs 710 million in the previous year quarter.
 

Revenues during the quarter review grew 39% at Rs 10.84 billion against Rs 7.79 billion in the corresponding quarter of last fiscal. EBITDA (earnings before interest, tax, depreciation and amortization) margin improved to 25.7% from 23% in the previous year quarter. READ MORE

12:42 PM

IT stocks trade mixed

COMPANY	LATEST( )	CHG( )	CHG(%)	VOLUME
INFIBEAM AVENUES	29.50	-1.45	-4.68	1768006
INTELLECT DESIGN	230.80	17.75	8.33	279579
WIPRO	318.15	-1.20	-0.38	248301
FIRSTSOUR.SOLU.	59.40	1.85	3.21	233082
INFOSYS	636.70	-12.60	-1.94	175606

12:39 PM

Anand Rathi on Bajaj Corp

Factoring in the extension into newer categories, and assuming a steady rise in overall demand (rural and urban), we expect an 11.5% CAGR each in revenue and earnings over FY18-21. On the restrained volume-growth expectation and steady margins, we lower our target multiple to 22x (from 25x earlier) and roll forward our price target to Sep. FY20. Hence, we retain our Hold recommendation with a revised target of Rs 415, based on 22x Sep.FY20e EPS. Risks: Keener competition and a slow consumer shift to light hair oils.

12:39 PM

Sector watch: CEMENT

Post Competition Commission of India’s ban on publication of cement industry data by Cement Manufacturing Association in 2012, authentic granular data on cement industry is not available, atleast in public domain. In the past few months we are increasingly hearing about clinker utilisation being substantially higher compared to cement utilisation for the industry and also upcoming cement capacity additions are not backed entirely by clinker expansion, which is likely to result in substantially improved clinker utilisation and improvement in pricing power. We maintain our negative stance on the sector as we expect YoY volume growth to decelerate from 3QFY19 and capacity additions to accelerate after remaining low for the past 2 years

(Source: IIFL report)

12:37 PM

IDBI Capital on YES Bank

While loan growth of 61% YoY is in line with its disclosed provisional numbers, GNPA sequential increase of 29bps to 1.6% is higher than provisional numbers of 1.35%. Increase in GNPA is attributable to one large account of Rs6.3bn slipping post finalization of provisional numbers. NIMs are steady on sequential basis at 3.3%.

PAT has de-grown by 4%, largely on account of adverse treasury impact, excluding that PAT has grown by 26%. We have cut our FY19/20 estimates by 11%/7%. Accordingly we have cut our TP to Rs290, valuing at 2.0x (15% discount to mean) P/ABV FY20 and retained our BUY rating.

12:37 PM

Prabhudas Lilladher on JSW Steel

Exports remain a cause of concern for the Indian steel sector. However, we believe that firm domestic demand and positive outlook on global steel prices would offset the shrink in export volumes. Underpinned by favorable outlook on sector and strong capacity addition pipeline (~40% increase in capacity by FY20e), we reiterate BUY rating with target price of Rs 450, EV/EBITDA of 6.5x FY20e.

12:36 PM

Prabhudas Lilladher on Maruti Suzuki

Key takeaways from the con-call: (1) Management has stated that festive season so far has been flat for MSIL owing to the increased insurance costs (although no financing issues). (2) Over Q2FY19, margins were impacted by commodity inflation, adverse forex movement & higher discounts to the tune of 120bps, 120bps & 110bps YoY, respectively.

(3) RM costs are expected to rise further in H2FY19 mainly on account of steel price rise. (4) The management expects exports to see some de-growth over FY19 owing to currency devaluation & import restrictions issues in key markets. (5) Waiting period for Brezza is currently at ~6 weeks (7-10 days as per our channel checks). (6) Average discounts over Q2FY19 were at Rs18,750 (higher by ~Rs3,589/unit sequentially). (7) Royalty rate for the quarter stood at 5.7% of sales v/s 5.5% over Q1FY19.

12:35 PM

Elara Capital on Bajaj Auto

We believe Bajaj's renewed aggression, led by brand and volume, will pay off significantly over the the next 2-3 years with a lot of volume and margin tailwinds despite fully acknowledging near-term profitability challenges. While the industry leaders are likely to suffer both in terms of volume and margin post BSVI, we believe BJAUT stands to gain both in terms of revenue and profit market share, given the lack of threat in cash-cows (3W & exports) and its premium portfolio (Pulsar and global brand portfolio like KTM, Triumph, etc.).

We believe street's concern on pricing/promotional actions and the resultant margin erosion will evaporate over the next 4-6 quarters with high probability of large volume/revenue gains along with multi-dimensional profitability levers paying off. We upgrade BJAUT to BUY with a revised price target of Rs 3,070

12:15 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,606.31	-83.78	-0.25
S&P BSE SENSEX 50	10,568.72	-24.28	-0.23
S&P BSE SENSEX Next 50	29,966.35	+142.39	+0.48
S&P BSE 100	10,340.42	-12.82	-0.12
S&P BSE Bharat 22 Index	3,285.91	-18.70	-0.57

(Source: BSE)

12:03 PM

Bharti Airtel India ops need recovery, Africa stake sale will cut debt: S&P

S&P Global Ratings said on Thursday Bharti Airtel's sale of a minority stake in its Africa subsidiary will ease some pressure on the rating of the India-based telecom company.

 

Six global investors, including Warburg Pincus, Temasek, Singtel and SoftBank Group International, have agreed to invest  $1.25 billion through a primary equity issuance in Airtel Africa. READ MORE

11:54 AM

NEWS ALERT Indiabulls Housing Finance to raise funds via 3-month commercial paper at 8.8% coupon, according to Reuters

Stock reacts:

11:47 AM

Why buyers should choose lenders that are unlikely to face fund crunch

A recent report from Nomura warns the current liquidity crisis non-banking financial companies (NBFCs) are facing will lead to them disbursing fewer loans in the near future. Developers dependent on their loans could face trouble. NBFCs may also go slow on giving home loans.

 

The trend of NBFCs gaining market share over banks is expected to reverse. Price recovery within the housing market could get further delayed. With banks facing non-performing asset (NPA) issues, NBFCs/housing finance companies (HFCs) had become an important source of funding for developers. READ MORE

11:32 AM

Maruti Suzuki may see margin decline in Q3 due to volume, cost headwinds

With sales volumes disappointing at the start of the festival season, Maruti Suzuki, the country's largest passenger vehicle company, could be facing a difficult December quarter.

 

This is on account of both lacklustre demand and higher input costs. The company is hopeful of a recovery closer to the Diwali season, led by rural demand. However, flooding in Kerala and higher insurance, financing and fuel costs have derailed demand. READ MORE

11:22 AM

ICICI Bank Q2 preview: Slippages to remain elevated, PAT may drop over 70%

Key things to watch out for in today's results include movement of watch-list accounts, outlook on asset quality and trend on further relapse from restructured loans and resolution of power assets. READ MORE

11:05 AM

Check out the most active stocks in terms of volume

COMPANY NAME	LATEST	HIGH	LOW	CHG ( )	CHG(%)	VALUE (  CR)	VOLUME
YES BANK	190.15	191.40	168.60	-8.20	-4.13	94.40	4964597
JP ASSOCIATES	5.88	6.15	5.79	-0.21	-3.45	2.70	4587156
REL. COMM.	10.19	10.50	9.95	-0.14	-1.36	3.32	3261006
ADANI POWER	33.10	33.35	32.30	0.10	0.30	6.10	1841965
DEWAN HSG. FIN.	192.00	195.00	177.35	10.15	5.58	35.05	1825262

10:52 AM

As many as 179 stocks hit 52-week lows in today's trade

Symbol	Security	New 52W/L	Prev. Low	Prev. Low Date	LTP	Prev. Close	Chng	% Chng
21STCENMGM	21st Century Management Services Limited	24.05	24.50	25-Oct-2018	24.05	24.50	-0.45	-1.84
3IINFOTECH	3i Infotech Limited	3.10	3.15	25-Oct-2018	3.15	3.15	0.00	0.00
8KMILES	8K Miles Software Services Limited	84.00	88.40	25-Oct-2018	84.00	88.40	-4.40	-4.98
ABAN	Aban Offshore Limited	71.20	71.75	25-Oct-2018	71.90	72.50	-0.60	-0.83
ABGSHIP	ABG Shipyard Limited	3.20	3.30	25-Oct-2018	3.45	3.30	0.15	4.55

(Source: www.nseindia.com)