MARKETS ON MONDAY: TCS market-cap hits $100 bn; Nifty ends below 10,600

Nifty closed at 10,585 levels. TCS market-cap hits $100 billion in intraday deals; but stock ends flat as investors book profit

3:37 PM

Nifty IT index up 0.7%; Top gainers from the pack

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
TATA ELXSI	1204.75	1142.75	62.00	5.43	3784333
HCL TECHNOLOGIES	1085.00	1062.35	22.65	2.13	4490123
MINDTREE	999.70	979.85	19.85	2.03	8921125
KPIT TECH.	246.60	243.10	3.50	1.44	3994887
INFOSYS	1189.30	1178.45	10.85	0.92	10738186

3:35 PM

Sectoral Trend

3:33 PM

Top Sensex gainers and losers

3:32 PM

Markets at Close

The S&P BSE Sensex ended the day at 34,450, up 35 points while the broader Nifty50 index settled at 10,584, up 20 points

3:15 PM

80 stocks gain over 25% in Sensex's 2,000 points rally in past one month

Shares of 80 companies have rallied more than 25% after the S&P BSE Sensex recovered more than 2,000 points in past one month. The S&P BSE Sensex hit an intra-day high of 34,664, rebounding 2,068 points or 6% from its recent low of 32,596 recorded on March 23, 2018. The Nifty 50 index too rose 6% to 10,638 from 9,998 levels one month ago. READ MORE

3:00 PM

Salasar Techno gains 8% on repeat order of Rs 350 million from Reliance Jio

 

Shares of Salasar Techno Engineering have moved 8% higher to Rs 385 per share, also their new high on the BSE, after the company said it has received new orders of Rs 490 million from leading telecom players in India and Nepal.

 

The company received an order of Rs 350 million from Reliance Jio to supply 300 telecom towers, Salasar Techno Engineering said in a press release.

 

The company also received export order of 100 telecom towers worth Rs 140 million to Nepal, it added. READ MORE

2:46 PM

Volume Toppers

COMPANY	PRICE( )	CHG( )	CHG(%)	VALUE(  CR)
TCS	3443.70	37.30	1.09	143.04
LAURUS LABS	504.20	-4.45	-0.87	89.97
MINDA CORP	202.50	27.30	15.58	75.07
AJANTA PHARMA	1383.00	16.60	1.21	55.26
INFOSYS	1188.00	9.75	0.83	54.06

2:33 PM

India tops emerging markets in foreign portfolio investor flows in 2018

The Indian markets have managed to attract the highest foreign portfolio investor (FPI) flows among the emerging markets (EMs) this year. According to data, overseas funds have net purchased equities to the tune of $1.5 billion in the Indian markets so far in 2018. In comparison, most other EM peers have seen overseas investors pulling out money. READ MORE

2:17 PM

Sebi proposed as regulator for spot commodity exchanges for gold, metals

Spot commodity exchanges for gold, metals and even energy products like natural gas could see the light of day under the Securities and Exchange Board of India (Sebi) as the regulator.

 

This has been recommended by a committee on the subject. It was appointed by the finance ministry under NITI Aayog member Ramesh Chand. The panel also suggests the “existing institutional infrastructure of commodity exchanges may also be utilised, to the extent possible, to create a spot exchange for commodities”. Regulation for spot commodity exchanges has been a contentious issue for some years. Especially after the National Spot Exchange fiasco, where a Rs 56-billion fraud was revealed in 2013. READ MORE

Photo: Reuters

2:00 PM

Market Check

 

S&P BSE Sensex	34,615.69		0.58%
Nifty 50	10,632.25		0.65%
S&P BSE 200	4,674.07		0.60%
Nifty 500	9,405.30		0.62%
S&P BSE Mid-Cap	16,877.13		0.47%
S&P BSE Small-Cap	18,325.64		0.81%

1:47 PM

Investors focus on long-dated options as 2019 election draw near

 

Prashasta Seth, chief executive officer at IIFL Asset Management, said he was hoping to raise around Rs 20 billion to Rs 30 billion in his new fund offer. However, not all of that money would be allocated to capturing market gains. The IIFL Capital Enhancer Fund will invest four to five per cent of its assets in put options, with an option of increasing this to up to 8 per cent.

 

"We will be investing in put options with an expiry of June 2019. There are many investors who would like to take exposure to equity. They are afraid of the uncertainty over the next year. This will allow them to do so while limiting their risk" he said. READ MORE

1:30 PM

Danone's loss is Parag's gain: Are dairy MNCs facing challenges in India?

Last week, French food-products major Danone put its India dairy chapter to rest with the sale of its Haryana unit to local player Parag Milk Foods. Danone's exit, the second after New Zealand-based Fonterra Dairy in 2009, points to the challenges that global firms face in the world's largest milk-producing nation READ MORE

1:17 PM

TOP CONTRIBUTIORS TO SENSEX'S GAIN TODAY

COMPANY	LATEST	CHG(RS)	CHG(%)	CONTRIBUTION (POINTS)
TCS	3502.95	96.55	2.83	119.75
RELIANCE INDS.	935.70	7.65	0.82	33.18
H D F C	1839.80	8.15	0.44	31.32
INFOSYS	1183.00	4.75	0.40	23.12
SUN PHARMA.INDS.	514.15	8.75	1.73	23.08

1:15 PM

12 new IPOs to come up in June-quarter, analysts remain positive

After raising Rs 843.57 bn through IPOs in FY18, 12 new companies are planning to garner Rs 170 bn in the next two months including names like HDFC Asset Management READ THE FULL STORY HERE

1:14 PM

Bond investors dumbfounded after RBI's surprising tilt towards rate hike

A surprising hawkish tilt by India’s central bank in its April minutes has left money managers dumbfounded, prompting them to seek a higher risk premium for holding the nation’s bonds. The benchmark 10-year yield jumped as much as 17 basis points Friday, and ended last week 29 basis points higher, as minutes of the Reserve Bank of India’s April 4-5 meeting boosted speculation policy makers are moving toward raising interest rates. READ MORE

1:01 PM

Nifty IT index surges 13% in April; TCS soars 25% in 16 trading days

Shares of information technology (IT) companies were in focus with the Nifty IT index hitting new high on Monday, after the sector giant Tata Consultancy Services (TCS) reported a better than expected March quarter (Q4FY18) results.
 

Nifty IT index, the largest gainer among sectoral indices, was up 1.7% at 14,141, as compared to 0.39% rise in the Nifty 50 index. The index hit a new high of 14,245 in intra-day trade today, has outperformed the market by surging 13% thus far in the month of April. On comparison, the benchmark index was up 5% thus far in the current month. READ MORE

12:45 PM

SPECIAL REPORT  700% rally in 10 years and $100-bn m-cap, but TCS still lags among IT peers

Tata Consultancy Services (TCS) hit a record high of Rs 3,557 on the NSE in intra-day deals on Monday, sending its market-capitalisation (market-cap) above the $100 billion mark. It is the first time ever that an Indian company has achieved this feat.

 

Despite the surge and the fact that TCS is now the most valued Indian company basis its market-cap, the stock still lags its peers in the information technology sector in terms of absolute returns in the past decade. READ MORE

Photo: @TCS_News

12:31 PM

Lemon Tree Hotels hits new high since listing; stock soars 30% in 3 days

Lemon Tree Hotels rallied 7% to Rs 89.80, extending past two days 23% surge on BSE, after the company said its arm signed three management contracts in the state of Uttarakhand. The stock is trading at its highest level since listing on April 9, 2018. It zoomed 60% against its issue price of Rs 56 per share. READ MORE

12:21 PM

NEWS ALERT PPFAS Mutual Fund launches Parag Parikh Liquid Fund

PPFAS Mutual Fund, sponsored by Parag Parikh Financial Advisory Services Pvt. Ltd. today announced the launch of a new scheme ‘Parag Parikh Liquid Fund’. The Investment objective of the scheme is to generate reasonable return with lower risk and high liquidity through judicious investments in money market and debt instruments.

 

The scheme will invest 80-100 per cent in Money Market instruments (including cash, repo, CPs, CDs, Treasury Bills, CBLO and Government Securities with maturity/ residual maturity up to 91 days). It would further allocate 0-20 per cent in Debt Instruments (including Floating rate debt instruments and securitised debt with maturity/residual maturity up to 91 days

12:15 PM

BS SPECIAL What will be the impact of physical delivery of stock derivatives?

The Sebi's decision to make physical delivery of stock derivatives mandatory will have multiple knock-on effects across cash and derivatives segments. Many of those consequences would be negative.

 

India has an extremely active stock futures market, and a less-active but still-liquid stock options market, with all contracts cash-settled. High liquidity enables efficient price-discovery and leads to tight spreads between bids and asks. READ MORE

12:01 PM

Market at Noon

 

S&P BSE Sensex	34,516.14		0.29%
Nifty 50	10,606.55		0.40%
S&P BSE 200	4,664.66		0.40%
Nifty 500	9,388.45		0.44%
S&P BSE Mid-Cap	16,874.25		0.45%
S&P BSE Small-Cap	18,305.24		0.70%

11:58 AM

Prabhudas Lilladher on HDFC Bank

Loan growth trajectory should be strong ahead, liability franchise remains robust and stable margins to help better NII growth. Also, fees have started to contribute to income but credit cost to remain at 60-65bps of loans leading to an earnings CAGR of 20-21% with strong return ratios. Retain BUY with increased target price of Rs2,251 (up from Rs2,136) based on 4.3x Mar-20 ABV (rolled from Sep-20). Remains as one of our top  picks in a challenging environment.

11:56 AM

MUST READ TCS Q4FY18 results review: What leading brokerages say

Thus far in calendar year 2018 (CY18), TCS has outperformed the markets with a gain of over 18 per cent. In comparison, the Nifty IT and the Nifty 50 indices have moved up 13 per cent and 0.3 per cent respectively, ACE Equity data shows.

 

Given the outperformance and the stellar Q4FY18 results, is it a good time to buy the stock? Here’s what leading brokerages and research houses suggest READ MORE HERE

11:55 AM

Motilal Oswal Research on HDFC Bank

HDFC Bank has been consistently gaining market share across most products in the retail segment (personal loans, business banking, credit cards and auto loans), and the upcoming capital raise will enable it to sustain this growth momentum. Operating expenses have been under control, and significant digital initiatives have led to a consistent decline in the C/I ratio to ~40%. We have built in Rs 240 billion of capital raise in FY19 and arrive at a target price of Rs 2,400 at 4.0x Mar-20E ABV for the bank. Maintain Buy.

11:54 AM

Edelweiss on HDFC Bank

HDFC Bank’s Q4FY18 earnings sustained 20% YoY growth momentum but core operating profit growth was softer—up <25% versus 30% plus over the past couple of quarters. The miss was due to sharp moderation in loan growth (sub-20% YoY); surprising given better market opportunities in corporate segment (PSU fallout). Meanwhile, deposits grew a strong 13% QoQ, which along with capital raising will provide growth runway to the bank.

Asset quality held in good stead amidst concerns over RBI’s recent recognition norms. Key monitorables: a) loan growth returning to ~25% driving core NII growth; and b) sustenance of NIMs at ~4.3% with recent dip in CD ratio. Best-in-class franchise, marginal stress baggage and proposed equity raising (pending government approval) place HDFC Bank in a sweet spot to capitalise on emerging opportunities. Maintain ‘BUY’

11:45 AM

Is Bharat-22 ETF a good bet? Here is a look at its pros and cons

 

The government is planning a follow-on offer of the Bharat-22 Exchange Traded Fund (ETF). ICICI Prudential Mutual Fund has filed draft papers. Click here for more

11:30 AM

Stocks at 52-week high

COMPANY	LATEST	52 WK HIGH	PREV HIGH	PREV DATE	VOLUME
ASHOK LEYLAND	156.80	157.55	155.50	20-APR-2018	445980
FIRSTSOUR.SOLU.	60.70	61.00	60.50	20-APR-2018	529195
HCL TECHNOLOGIES	1090.95	1099.60	1073.35	20-APR-2018	63209
HEXAWARE TECH.	440.60	444.00	438.60	20-APR-2018	67373
HIND. UNILEVER	1453.80	1470.00	1469.80	20-APR-2018	4556

11:15 AM

Rupee more sensitive to FPI inflow as FDI falls: Michael Sneyd, BN Paribas

Michael Sneyd, global head of foreign exchange strategy and cross-asset strategist at BNP Paribas, the Paris-based financial group, tells Indivjal Dhasmana the rupee has depreciated three per cent in 2018 and the 10-year bond in value by four per cent. This has wiped out one year’s yield of the bond. Even then, he says, foreign investors have more favourable views of bonds than equities in India. READ MORE

11:01 AM

Sasken Technologies shares hit record high on strong Q4 results

Shares of Sasken Technologies hit a record high of Rs 860 per share, up 14% on the BSE in early morning trade, after the company reported a strong 27.5% sequential growth in consolidated net profit at Rs 259 million in March 2018 quarter (Q4FY18), on back of healthy operational performance. Consolidated revenues during the quarter under review declined 2.4% at Rs 1,287 million over the December 2017 quarter (Q3FY18). READ MORE

10:45 AM

Metal headache: Commodity rally will put pressure on operating margins

The recent rally in metal prices would prove expensive for India Inc, which is still recovering from the demand shock and economic disruption caused by demonetisation and the roll-out of the goods and services tax. Analysts expect cuts in corporate margins in the forthcoming quarters, given the negative correlation between metal prices and operating margins of domestic manufacturers. READ MORE