MARKET WRAP: Sensex dips 219 points; Tata Motors, ICICI Bank top losers

Among sectoral indices, the Nifty PSU Bank index ended around 2% lower led by a fall in the shares of Allahabad Bank, Union Bank of India and Canara Bank.

3:43 PM

Nifty PSU Bank index ended 2.09% lower today. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
ALLAHABAD BANK	41.40	44.90	-3.50	-7.80
UNION BANK (I)	82.35	85.75	-3.40	-3.97
CANARA BANK	249.10	259.40	-10.30	-3.97
BANK OF BARODA	116.70	121.50	-4.80	-3.95
ORIENTAL BANK	75.45	78.45	-3.00	-3.82

3:41 PM

Nifty sectoral losers of the day

3:39 PM

BSE Sensex: Infosys top gainer of the day, Tata Motors, ICICI Bank top losers

3:35 PM

Market at close

 

The S&P BSE Sensex ended at 35,470, down 219 points while the broader Nifty50 index settled at 10,762, down 59 points.

3:13 PM

Tata Motors falls 5% on concerns of auto tariff fears in US

Tata Motors dipped 5% to Rs 292 on the BSE in intra-day trade amid concerns of auto tariff threat by US on European Cars. The stock trading close to its 52-week low of Rs 582 touched on May 31, 2018 on the BSE in intra-day trade. READ MORE

3:06 PM

ICICI Securities on Heritage Foods

We came back positive after meeting management of Heritage Foods. The company’s all the initiatives such as 1) yoghurt plant, 2) Alpenvie premium ice creams and 3) animal feed business are on track. With fall in milk prices, we expect the company to report better margins in FY19. We expect Heritage to report revenue and PAT CAGR of 17.6% and 58.8% over FY18-20 with adjusted RoCE above cost of capital and retain BUY rating with target price of Rs 860 (29x FY20E).

3:05 PM

HDFC Securities on Bajaj Auto

The stock trades at 15x FY20E earnings, which is attractive. We recommend BUY on Bajaj Auto, at CMP of Rs 2,835, and add on dips to Rs 2,670 with a target price of Rs 3,350. We have assigned a target price of Rs 3,350 based on ~18x PE of FY20 earnings. Strong volume growth led by robust sales from the three-wheeler segment and exports, healthy return ratios and robust balance sheet supports our positive view on the stock.

3:00 PM

P-note investments dip to over 9-year low in May as Sebi tightens norms

Investments through participatory notes into Indian capital markets plunged to over 9-year low of more than Rs 930 billion at May-end amid stringent norms put in place by Sebi to check the misuse of these instruments.

 

P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock markets without registering themselves directly. They, however, need to go through a proper due diligence process. READ MORE

2:57 PM

Recently listed IPOs

IPO NAME	IPO PRICE( )	LATEST PRICE( )	LIST DATE
ACCURACY SHIPPI.	84	85.50	JUN 22,2018
PRITI INTERNATI.	75	84.00	JUN 21,2018
SHREEOSWAL SEEDS	26	28.10	JUN 20,2018
NAKODA GROUP	35	36.50	JUN 06,2018
LATTEYS INDUSTR.	66	58.00	JUN 05,2018

[*] IPO Price unadjusted> More Listed IPOs

2:50 PM

Stock Idea (Source: HDFC Securities)

2:45 PM

Nifty PSU Bank index dowm almost 2%; Top losers in the pack

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
ALLAHABAD BANK	41.95	44.90	-2.95	-6.57	4963430
UNION BANK (I)	82.80	85.75	-2.95	-3.44	4477334
SYNDICATE BANK	45.30	46.80	-1.50	-3.21	1921582
BANK OF BARODA	118.25	121.50	-3.25	-2.67	7365151
ORIENTAL BANK	76.45	78.45	-2.00	-2.55	1227638

2:43 PM

Edelweiss on metal sector

Off late, metals & mining stocks world-wide have been roiled by macro factors—ongoing trade brawls and strengthening USD. Moreover, after a prolonged resilience, underlying commodity prices too are under pressure with copper, aluminium and zinc coming off 5-8% in the previous week. In this situation, reminiscent of FY14, we expect earnings growth, but valuations to remain subdued.

Despite risks to global growth and demand slowdown in China dampening stocks’ near-term performance, we believe supply discipline and robust trade flows will prevent the situation from snowballing into a FY16 like crisis. Maintain Vedanta (VEDL), Hindalco and Tata Steel as our top picks—trading at five-year low EV/EBITDA

2:30 PM

Market cap of Bajaj Finserv crosses Rs 1 trillion mark; stock hits new high

 

Shares of Bajaj Finserv entered the elite club of Rs 1 trillion market capitalisation (market-cap) after the stock price of the company hit a new high on the National Stock Exchange (NSE) in intra-day trade on Monday. The market-cap of the company touched Rs 1,002 billion (Rs 1-trillion mark) on the NSE.

 

Thus far in the current calendar year 2018 (CY18), Bajaj Finserv has outperformed the market by surging 20% as compared to 4.5% rise in the S&P BSE Sensex. READ MORE

2:15 PM

BSE PSU index hits 18-month low; Bank of Baroda, NTPC touches 52-week low

Shares of public sector undertaking (PSU) organisations were under pressure with the S&P BSE PSU index hitting its 18-month low on the BSE on Monday, after a fall in oil & gas and banking stocks. READ MORE

1:59 PM

Market Check

 

S&P BSE Sensex	35,608.62		-0.23%
Nifty 50	10,810.45		-0.11%
S&P BSE 200	4,660.76		-0.17%
Nifty 500	9,285.20		-0.12%
S&P BSE Mid-Cap	15,832.89		-0.04%
S&P BSE Small-Cap	16,496.50		-0.26%

1:44 PM

HDFC Mutual Fund's perks to distributors make industry see red

 

The Rs 23-trillion mutual fund (MF) industry is seeing red over equity share allotment made by the country’s most profitable fund house HDFC MF to the distributor community, which continues to remain a vital link between investors and asset management companies (AMCs).

 

Ahead of its much-awaited initial public offering (IPO) — only second by an AMC so far — HDFC MF, which manages assets worth over Rs 3 trillion, has made a private placement of shares worth Rs 1.5 billion to 140 distributors. READ MORE

1:27 PM

NEWS ALERT  Monsoon session of the Parliament to be held from July 18 till August 10

1:17 PM

Nifty Auto falls over 1%; Top losers in the pack

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
TATA MOTORS-DVR	172.90	181.85	-8.95	-4.92	2130102
TATA MOTORS	295.60	308.00	-12.40	-4.03	8251370
MOTHERSON SUMI	294.30	303.75	-9.45	-3.11	3262070
ASHOK LEYLAND	134.05	136.40	-2.35	-1.72	6680890
AMARA RAJA BATT.	753.00	764.85	-11.85	-1.55	137746

1:00 PM

CARE Rating on Opec decision

We except the price of Brent to be range bound between $70-$75/bbl in the coming months. With OPEC pumping in additional supply after 18 months of adherence and US increasing its supply, price of oil will be less pressured.

It should be remembered that the increase in oil supply announced would still be lower than the cut decided on earlier. On the other side with the world demand of crude oil rising and with the uncertainty in the global political scenario we believe price of oil can rise despite of the increase in supply. Indian Basket of Crude will remain $2/bbl lower than the Brent prices on an average monthly basis.
 

India will get some relief as prices of oil will be lower than the highs of $78-$80, which will improve our import bill as India imports 80%-85% of its consumption requirements. This will have a positive effect on market sentiment affecting our exchange rate and reduce the headline inflation. The OPEC decision would also get factored by the MPC when it meets next for taking a call on interest rates.

Representative Image

12:45 PM

IPO REVIEW With many growth engines, Varroc Engineering has opportunities to scale up

Given its presence in key growth areas, a low-cost manufacturing base and focus on driving up margins, the prospects for Varroc Engineering, one of India’s largest auto component companies, appear robust. The company, which ended FY18 with revenues of over Rs 100 billion, gets over 60 per cent of it by supplying lighting solutions to global car makers. READ MORE

12:33 PM

Three kids and a flute: How India and Singapore can end the NSE-SGX dispute

The path to ending the custody dispute between the National Stock Exchange of India Ltd. and Singapore Exchange Ltd. passes through a parable involving three kids and a flute. A minor domestic quarrel has turned into a major court battle over who gets to trade the benchmark Indian index. READ MORE

12:17 PM

FMCG stock: Nestle's growth trajectory will remain healthy, say experts

Not many would have placed a bet on Nestle three years ago, when it was in the midst of the Maggi fiasco that took a toll on its finances and on shareholder returns. Now, however, investors are seen lapping up Nestle.

 

Not only has it outperformed the prominent indices, though partly helped by the base effect on account of past under-performance, it is the second best performing stock in the fast moving consumer goods (FMCG) space in 2018 so far. And, despite the rise, the Street is still bullish on Nestle. READ MORE

12:07 PM

ICICI Securities on Avanti Feeds

We initiate coverage on Avanti Feeds (Avanti), market leader in shrimp feed and a growing player in shrimp exports. Avanti benefits from: 1) numerous moats such as strong brands, established distribution, multiple manufacturing units and sub-segmentation strategy; and 2) relationship with global sea food major, Thai Union.

We expect India’s shrimp exports (value) to grow in mid-teens and Avanti to be a major beneficiary of this trend. With strong financials (>35% return ratios and FCF/PAT of 66% over FY13-18), we expect Avanti’s earnings growth to resume in FY20E after a decline in FY19E due to lower margins. We initiate with a BUY rating and DCF based target price of Rs1,901 (implied target P/E 20x FY20E EPS).

12:06 PM

Motilal Oswal Research on Tata Motors

We have cut our consol EPS estimates by 7%/15% for FY19/20 to factor in for a) weaker volumes, b) GBP appreciation and c) lower capex guidance. The stock trades at 6.8x FY20E EPS, 2.3x EV/EBITDA and 0.8x BV. Buy with target price of Rs 431 (SOTP). Key risks to our thesis: a) persistent weakness in demand environment for JLR, b) trade barriers impacting competitive positioning of JLR and c) adverse FX movement.

12:00 PM

Markets at Noon

 

S&P BSE Sensex	35,633.50		-0.16%
Nifty 50	10,802.15		-0.18%
S&P BSE 200	4,663.76		-0.11%
Nifty 500	9,281.00		-0.17%
S&P BSE Mid-Cap	15,853.99		0.09%
S&P BSE Small-Cap	16,528.52		-0.07%

11:45 AM

Top Nifty50 losers

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
TATA MOTORS	296.60	308.00	-11.40	-3.70	6335030
B P C L	411.45	426.35	-14.90	-3.49	2409731
ICICI BANK	292.25	300.65	-8.40	-2.79	7303060
I O C L	165.90	170.00	-4.10	-2.41	3039060
H P C L	304.10	311.15	-7.05	-2.27	1683740

11:34 AM

China, India and South Korea see wealth erosion of $1.4 trillion in 2018

 

China, India and South Korea, which are the three biggest Asian markets, excluding Japan, have seen erosion in market capitalisation of $1.4 trillion this year, so far. On the other hand, developed markets such as the US, the UK and France have fared much better, signalling global funds could be shifting their preference away from riskier emerging markets.

 

While the bulk of the erosion in the Asian markets is on account of China, India and South Korea too have lost significant ground, particularly in dollar terms.READ MORE

11:14 AM

Graphite electrodes makers in focus; Graphite India, HEG up 5%

Shares of graphite electrodes manufacturers were in focus with HEG and Graphite India rising 5% each in otherwise weak market on expectation of rise in demand from steel companies. READ MORE

10:59 AM

Street signs: Manpasand stock falls, sibling rivalry at play, and more

Manpasand fall hits top PMS player The sharp fall in the stock price of Manpasand Beverages has hit a leading portfolio management services (PMS) player, say market operators. This PMS participant also has a mutual fund house.

 

According to industry players, the PMS owned almost 5-6 million shares of the company across its various products. Manpasand Beverages' share price fell from around Rs450 to Rs128, down 71 per cent, in less than a month. READ MORE

10:44 AM

Market Mind: Sugar may remain sour for long

 

The Prime Minister’s ambition of doubling farmer incomes was strengthened when the Uttar Pradesh (UP) government announced a Rs10 per quintal increase in the 2017-18 cane price that sugar manufacturers were required to pay farmers.

 

What the country had not reckoned was the extent of increased production: against an initial sugar production estimate of 25 million quintals in 2017-18 (October to September), India is estimated to have produced over 32 million quintals—a complete failure of intelligence gathering sources. READ MORE