MARKET WRAP: Sensex ends 284 points higher, Nifty at 10,768; midcaps shine

Mid-cap, small-cap stocks outperform. Among sectoral indices, the Nifty Realty index surged nearly 3% on Thursday, led by Unitech and Prestige Estates Projects

3:42 PM

Nifty Realty index ends 2.97% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
UNITECH	4.95	4.15	0.80	19.28
PRESTIGE ESTATES	254.90	233.05	21.85	9.38
GODREJ PROPERT.	790.00	726.20	63.80	8.79
BRIGADE ENTERPR.	248.60	231.10	17.50	7.57
H D I L	22.20	20.70	1.50	7.25

3:40 PM

Nifty sectoral gainers of the day

3:35 PM

BSE Sensex gainers and losers of the day

3:31 PM

Market at close

 

The S&P BSE Sensex ended at 35,463, up 284 points while the broader Nifty50 index settled at 10,768, up 84 points.

3:20 PM

PSU banks extend gain; IDBI Bank, Canara Bank up over 4%

Shares of public sector undertaking (PSU) banks were trading higher for the second day in a row, gaining nearly 4%, after the Monetary Policy Committee (MPC) in its second bi-monthly policy for 2018-19 voted unanimously for a hike in policy repo rate of 25 bps, while retaining its neutral stance. READ MORE

 

3:00 PM

Gold inches up as euro gains against dollar

Gold prices inched up on Thursday as the euro rose to 2-week highs against the US dollar, with investors waiting for meetings of key central banks and the US-North Korea summit all due next week.

 

Spot gold was up 0.1 per cent at $1,297.46 per ounce, while US gold futures for August delivery were largely unchanged at $1,301.50 per ounce. READ MORE

2:46 PM

FDI inflows in India decline by 9% to $40 bn in 2017: UN report

Foreign Direct Investment to India decreased to $40 billion last year from $44 billion in 2016 while outflows from India, the main source of investment in South Asia, more than doubled, according to a new trade report by the UN. READ MORE
 

2:30 PM

Kwality extends fall despite board mulling bonus issue, share buyback

 

Shares of Kwality have dipped 5% to Rs 31.65 per share, extending their 30% fall in past seven trading days on the BSE, despite the company today saying that its board will consider share buyback or bonus issue proposal on June 20, 2018.

 

The meeting of the board of directors of the Company will be held on Wednesday, 20th June, 2018 to consider and approve the proposal for buyback of securities and/or bonus issue of securities; and recommendation of interim dividend. READ MORE

2:15 PM

Facing trouble, Indian public sector banks need leaders but are headless

 

India’s government-owned banks are becoming increasingly rudderless, just when they most need a firm hand at the top.

 

Four of the country’s 21 state banks have yet to appoint replacements for departed chief executive officers, and another has seen its CEO stripped of her powers due to fraud charges. Over the coming months, nine more of the lenders are due to lose their top executives, at a time when spiraling bad loans and an intensified crackdown on financial sector-corruption make the jobs less appealing than ever. READ MORE

2:01 PM

Market Check

 

S&P BSE Sensex	35,561.56		1.09%
Nifty 50	10,797.05		1.05%
S&P BSE 200	4,670.60		1.12%
Nifty 500	9,313.20		1.17%
S&P BSE Mid-Cap	15,938.61		1.30%
S&P BSE Small-Cap	16,778.43		1.89%

1:45 PM

ELSS: Smart way to save tax; here's how to pick a top performing one

Tax planning forms an indispensable part of one’s financial plans. Under Section 80C of the Income Tax Act 1961, you can claim deductions of upto Rs 1.5L and reduce your tax liability. So, to save on taxes, you just need to invest your money in investments eligible under 80C. Equity Linked Savings Scheme (ELSS) is eligible under section 80C.

 

Out of all these investments, ELSS tends to be the most popular and most efficient tax-saving instrument. READ MORE

 

1:30 PM

Analysts give thumbs-down to Rs 70 billion sugar bailout package

Markets have given a thumbs-down to the government’s Rs 70 billion intervention package (including Rs 4,440 crore in loans to mills to expand ethanol production) for the sugar industry to address the immediate liquidity problems of the industry.

 

Most stocks, such as Dwarikesh Sugar, Dhampur Sugar, EID Parry, Kesar Enterprises and Thiru Aroon Sugar are trading lower in the range of 1 per cent to 5 per cent on the BSE on Thursday – extending their Wednesday’s fall of 3 per cent to 12 per cent. In comparison, the S&P BSE Sensex has gained around two per cent during this period READ MORE

1:15 PM

Volume gains to offset margin pressures for Maruti Suzuki

The Maruti Suzuki stock has gained about four per cent over the last week on strong sales in May, the expectation of higher growth for FY19 and plans to launch electric vehicles by 2020. While there are headwinds such as the higher raw material costs and weak rupee which makes imports costlier, analysts believe that these will be offset by the operating leverage (higher volumes), reduction in discounts as demand in the sector improves, as well as richer product mix. READ MORE

 

1:02 PM

Prabhudas Lilladher on Tata Motors

We welcome the increased disclosures and disinvestments from loss-making/non-core subsidiaries. Management's focus on improving the performance of the standalone entity is now clearly visible and we expect it to continue. The near-term outlook for JLR, however, remains muted both for volumes and profitability, EBIT margin target of ~7-9% (earlier 8-10%) mainly due to accelerated product development expenses.

With JLR's full product range available in EV/Hybrid variants from 2020 gives us further confidence. Given the attractive valuations and buoyant management guidance, we maintain "BUY" with a target price of Rs378, where we value JLR at 2.75x Mar'20E EV/EBITDA and Standalone entity at 10x Mar'20 EPS

12:47 PM

Tata Motors proposes to raise ECB up to USD 250 mn

Tata Motors announced that the Company will proposing to raise external commercial borrowing up to U.S.$250,000,000 from Lenders up to a maximum of U.S.$500,000,000. All proceeds from the facility will be fully used towards refinancing a part of the principal amount of the Borrower's Notes as permitted under the ECB Master Directions.

 

12:32 PM

Majesco gains after new contract win

Majesco rose 4.71% to Rs 489.75 on BSE after the company said it has secured a contract for Cloudlnsurer platform product. The announcement was made during market hours yesterday, 6 June 2018. READ MORE

12:16 PM

Foreign auditors have turned skittish after Satyam, says Shankar Sharma

Why did you tweet that you will not invest in a company audited by one of the big four auditors? The market does not pay a premium valuation for a company being audited by a foreign auditor. On the other hand, if they resign it becomes a huge stigma for the company.

 

So there is zero upside and 50 per cent downside. Doesn't a resignation signal problems in a company's books? Investors don't know if something is wrong with the books of accounts of those companies, because the auditors haven't given the proper reasons. READ MORE

12:01 PM

Markets at noon

S&P BSE Sensex	35,504.13		0.92%
Nifty 50	10,784.85		0.94%
S&P BSE 200	4,662.15		0.94%
Nifty 500	9,297.20		0.99%
S&P BSE Mid-Cap	15,900.75		1.06%
S&P BSE Small-Cap	16,759.92		1.78%

11:45 AM

INTERVIEW OF THE DAY

 

'Lack of earnings growth, high valuation are biggest challenges for market'

 

The Reserve Bank of India (RBI) surprised the markets with a hike in repo rate. Satish Menon, executive director, Geojit Financial Services says that he has a one-year target of 10,400 for the Nifty50 index. Consumption related stocks should do well going ahead, he says. Read Full interview Here

Satish Menon, executive director, Geojit Financial Services

11:30 AM

Sebi to probe leak of additional surveillance measures stock list

 

The Securities and Exchange Board of India (Sebi) on Wednesday ordered an inquiry into the leak of the names of stocks to be placed under additional surveillance measures (ASM) ahead of an official announcement.

 

On May 31, stock exchanges released a list of 109 stocks on which additional trading curbs were to be imposed. However, hectic trading was seen in some of the stocks even before exchange notification. READ MORE

11:15 AM

Top BSE500 gainers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
AVANTI FEEDS	1810.00	187.40	11.55	121226
UNITECH	4.64	0.46	11.00	1305489
PHILLIPS CARBON	241.60	23.65	10.85	359715
TIME TECHNOPLAST	146.45	13.35	10.03	46445
CAPLIN POINT LAB	436.55	39.65	9.99	21943

11:02 AM

High base not growth deterrent for Cadila, high launches may drive earning

 

Cadila Healthcare, unlike many of its peers, seems to be a bright spot in the pharma space. The company, which has been buzzing with news on approvals of drug launches, announced on Wednesday the USFDA’s approval for its Ahmedabad-based SEZ facility.

 

The unit, which manufactures oncology injectables for regulated markets, was inspected from 28 May to June 5 and has not received observations by the drug regulator. With this, Cadila, which resolved the FDA warning letter for its Moriaya plant last year, has no regulatory overhang. READ MORE

10:46 AM

Sebi lens on Rajiv Kochhar's Avista Advisory clients in ICICI loan case

 

Listed companies that availed of services from the Rajiv Kochhar-led Avista Advisory have come under regulatory glare. According to sources, the Securities and Exchange Board of India (Sebi) is likely to examine the end-use of funds and other securities law compliance by these companies -- including Suzlon, GTL Infra, Jindal Stainless and Sterling Biotech.

 

These companies had employed Avista Advisory—owned by Rajiv Kochhar, brother-in-law of ICICI Bank managing editor Chanda Kochhar—for loan restructuring and other corporate needs. READ MORE

10:30 AM

Bajaj Finance shares hit new high; Infosys nears record high

 

Shares of Bajaj Finance hit a new high of Rs 2,190 per share, up 1.6% on the BSE in early morning trade. The stock of finance company surpassed its previous high of Rs 2,177 recorded on May 22, 2018 in intra-day trade.

 

Shares of information technology (IT) bellwether Infosys touched a fresh 52-week high of Rs 1,257, up 1.7%, trading close to its all-time high of Rs 1,278 hit on June 3, 2016 in intra-day trade. READ MORE

10:15 AM

RBI policy review: Investment recovery positive, headwinds remain

Key market indices such as the Sensex and Nifty, which initially reacted negatively after the Reserve Bank of India (RBI) raised its policy rates by 25 basis points (bps), recovered soon to close the day about a per cent higher. The neutral stance (unlike general Street estimates of a hawkish one) of RBI and the regulator’s expectation of improvement in investment activity propped up investor sentiment. READ MORE

 

10:01 AM

Market Check

 

S&P BSE Sensex	35,418.60		0.68%
Nifty 50	10,758.65		0.69%
S&P BSE 200	4,651.55		0.71%
Nifty 500	9,278.65		0.79%
S&P BSE Mid-Cap	15,866.78		0.84%
S&P BSE Small-Cap	16,688.11		1.34%

9:46 AM

INTERVIEW OF THE DAY Probability of 10-12% return on Nifty over 12 months: Mahesh Patil

MAHESH PATIL, co-chief investment officer, Aditya Birla Sun Life Asset Management Co, spoke to Ashley Coutinho on the economy and the share market. CLICK HERE TO READ MORE

Mahesh Patil, co-chief investment officer, Aditya Birla Sun Life Asset Management Co

9:32 AM

Stocks in news

McLeod Russel to sell some tea estates of the company in Assam to Luxmi Tea Company for Rs 141 crore.

Lemon Tree Hotels signs agreement for 104 room property in Madhya Pradesh.

Sadbhav Infrastructure board approves raising of fund upto Rs 3,000 crore via issue of securities.

Bhansali Engineering Polymers resumes commercial production at plant in MP following fire incident.

C&C Constructions joint venture wins contract worth Rs 145 crore from Govt of Bihar.

Aksh Optifibre receives show cause notice from SEBI in relation to GDR issue.

NCLT admits Videocon Industries under insolvency and bankruptcy code.

HCL Infosystems says deal with Apple India to distribute iPhone and other Apple products to end in Mar 2019.

Majesco gets contract for cloudinsurer platform product.

Hatsun Agro rights issue to open on June 14. Issue price fixed at Rs 555 per share.

Goldstone Infratech launches first full electric feeder bus – “eBuzz K6”, to be exported to Nepal.

Dollar Industries receives approval from BSE to list 5.67 crore equity shares with effect from June 7.

Syndicate Bank plans to raise Rs 5K cr via securities

Quess Corp approved sale of 74% equity shareholding held in Inticore VJP Advance Systems

Essel Propack - Record date for bonus issue is June 21

Hindustan Construction: Company wins Rs737 crore contract for Bangladesh nuclear power plant

Bajaj Auto cuts prices of some models to grow market

(Source: Nirmal Bang report)

9:29 AM

Opportunities on Nifty Bank after rate hike

The immediate impact of the Reserve Bank of India (RBI) Monetary Policy Review has not been negative. The market was braced for a 25 basis hike. The policy statement projects somewhat heightened inflation, but is otherwise positive in its outlook. The central bank expects growth to stay on track. Inflation is still at acceptable levels.

 

But it is climbing. Crude oil prices are volatile and likely to rise. The rupee is taking a beating. The fact that several banks had chosen to hike rates ahead of the review tells us that the cycle has switched. READ MORE

9:27 AM

Nomura on HUL

We attended Hindustan Unilever’s (HUL) latest post-FY18 results annual analyst meet hosted by its top management. Management’s message was quite clear that focus remains on sustaining the current growth momentum through innovation, premiumisation and new category development. The company, however, does not appear to be moving its focus away from profitability. Overall, the company’s medium- to long-term vision is now firmly in place, and it appears all set to deliver on the same.
 

We maintain our Neutral rating and target price of Rs 1,430, which implies ~8.5% downside from current levels. We value HUL on a PE multiple of 38x (unchanged) on our one-year-forward earnings estimate of Rs 37, which is in line with HUVR's historical two-year average.