MARKET WRAP: Sensex ends 159 pts down, Nifty at 10,657; metals, realty slip

Among sectoral indices, the Nifty Metal index ended 1.8 per cent lower led by a fall in the shares of Jindal Steel & Power and National Aluminium Company.

3:47 PM

Nifty Metal index ends 1.79% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
JINDAL STEEL	206.95	223.05	-16.10	-7.22
JSW STEEL	313.40	326.80	-13.40	-4.10
NATL. ALUMINIUM	62.05	64.70	-2.65	-4.10
JINDAL STAIN .HI	129.35	134.25	-4.90	-3.65
S A I L	80.20	83.00	-2.80	-3.37

3:45 PM

Nifty sectoral losers of the day

3:43 PM

BSE Sensex: Bharti Airtel, NTPC among top losers of the day, Asian Paints top gainer

3:33 PM

Market at close

 

The S&P BSE Sensex ended at 35,264, down 159 points while the broader Nifty50 index settled at 10,657, down 57 points.

3:08 PM

Gold extends losses on global cues, low demand

Gold prices shed Rs 20 to Rs 31,400 per ten grams at the bullion market today amid a weak trend overseas and easing demand from local jewellers.

 

Silver also remained under selling pressure and lost Rs 250 at Rs 40,350 per kg owing to reduced offtake by industrial units and coin makers. READ MORE

3:01 PM

Bharat Hotels files Rs 1,200-cr IPO papers

Bharat Hotels, which runs five-star properties under 'The LaLiT' brand, has filed draft prospectus with capital markets regulator to garner Rs 1,200 crore through its initial share-sale.

 

The initial public offer (IPO) comprises sale of fresh equity shares to the tune of Rs 1,200 crore, according to the draft papers filed with the Securities and Exchange Board of India (Sebi). READ MORE

2:46 PM

Why Trump, Saudi bonhomie may not help oil prices stay down in long term

US President Donald Trump’s weekend of oil diplomacy offered mixed messages on supply, and conflicting responses from traders after prices fell even as analysts predicted any drop may be short-lived.

 

Crude fell in New York late Sunday after a Trump tweet over the weekend suggested that Saudi Arabia had agreed to pump 2 million more barrels a day. READ MORE

2:33 PM

Morgan Stanley upgrades Titan to overweight

Titan stock is down 16% from the recent peak and has underperformed the Sensex by 18% over the past three months). We think this offers a compelling entry point for long-term investors.

 

Risk reward now appears favorable at current valuations. We upgrade Titan to overweight (OW). We roll forward our residual income model to June 2019 to derive our revised target price of Rs1,080, implying an 29% upside from the current levels. Currently,F2020e P/E would be 37x for Titan. This should be viewed in the context of 29% F2018-20e earnings CAGRs, implyingF20e PEG of ~1.3x.

2:31 PM

25 years of MF: Despite shocks due to bad decisions, industry has done well

 

In the early 1990s, you wouldn't identify an Indian fund manager with a Leonardo DiCaprio in The Wolf of Wall Street. Mutual fund professionals of the time were mostly unknown bankers who ran the show with a handful of equity analysts.

 

More often than not, one landed the job because the bank had no other openings. As a leading mutual fund (MF) manager of the 1990s says: “I took a late decision to join a bank instead of the civil services. READ MORE

2:30 PM

COMMENT Arafat Saiyed, AVP-Research, Reliance Securities

After a flat debut of 3%, the stock price of RITES rose to Rs 218 per share in the morning trades. At 11:55 am, the stock was up 18% from its IPO price of Rs 185. Assuming moderate revenue CAGR of ~10% and PAT CAGR ~8% through FY17-20E, the stock at current price is valued at 10x FY20E earnings, which appears to be justified considering its unique business model, steady growth and healthy return ratios. Hence we continue to remain positive on the stock

2:29 PM

Index watch

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	35199.09	35423.48	-224.39	-0.63
	14421.69	14528.54	-106.85	-0.74
	15297.73	15450.90	-153.17	-0.99
	15882.88	16032.15	-149.27	-0.93
	4131.12	4158.60	-27.48	-0.66

2:28 PM

Stocks near 52-week high

COMPANY	LATEST	52 WK HIGH	PREV HIGH	PREV DATE	VOLUME
BRITANNIA INDS.	6220.00	6237.05	6196.40	29-JUN-2018	2795
HIND. UNILEVER	1645.00	1655.00	1641.85	27-JUN-2018	30848
TATA ELXSI	1341.10	1357.50	1335.50	26-JUN-2018	46573
MONSANTO INDIA	2856.00	2899.00	2863.65	07-JUN-2018	95
TCS	1858.00	1886.20	1847.20	27-JUN-2018	109825

 

 

 

 

 

 

2:23 PM

HDFC Securities on Take Solutions

Take Solutions (TAKE) is a niche technology-led service provider for the Life Sciences industry (91% of revenue). The company provides IP-based solutions in clinical, regulatory, safety and consulting processes to global Life science companies across multiple therapeutic areas. TAKE will benefit from (1) Large addressable market (favourable global trends), (2) Broad and high-growth portfolio (therapeutic segments) within Life science, (3) Strong growth visibility (order book, pipeline), and (4) Marquee clients (9 of top 10 global pharma giants) with low client concentration risk.  

 

We expect TAKE’s USD revenue/EPS CAGR at 20/22% over FY18-20E, factoring 24/30% CAGR in Life Sciences revenues/order book (37/53% CAGR in the trailing three years). TAKE trades at 15.7/13x FY19/20E EPS. Based on 16x FY20E EPS, TAKE’s fair value is Rs 280, supported by (1) ~15% RoIC and 22% EPS CAGR, (2) Likely value unlocking (SCM business divestment), (3) Midcap-IT valuations at 16.5x FY20E and global Life science tech/CRO valuations at 16x. Working capital intensity (an industry phenomenon) is a concern.

2:21 PM

JM Financial on Havell's India

In its FY18 Annual Report, Havells has strongly focused on the role IT has played across the company (250-member team working on 200+ projects in sales and R&D) to boost not only its strategy to penetrate the home segment deeper but also its engagement with dealers and channel partners.

In FY18, it forayed into the white goods segment by acquiring the consumer durables business of Lloyd (reported strong margin performance) and expanded its existing consumer durables basket by launching water purifiers and personal grooming products. Havells continues to generate significant free cash flows (INR 10bn in FY18 vs. INR 5.8bn in FY17, adjusted for the Lloyd acquisition). We continue to remain bullish with a Mar’19 target price of Rs 650 (40x FY20E EPS). We maintain BUY

2:20 PM

Equirus Securities on Sterlite

We have highlighted earlier that China has been the main growth driver over the last decade and their big 3 telcos have deployed OFC of ~1bn fkm to increase the penetration of 4G and FTTH. With 4G and FTTH penetration largely done in China, these telcos have now started preparing to launch 5G network.

Though, 5G launch may continue to drive OF demand in the medium term, telcos may try to manage their capex at a gradual pace. Meanwhile, as ~2,750 tons of preform capacity is expected to come on stream by end of CY18, OF realisations may have peaked out, in our view. We tweak our FY19/FY20 EPS estimates by +1%/-4% to factor in pressure on margins in FY20 and roll over to Jun’19 target price of Rs 380 (from June’19 target price of Rs. 410) set at TTM P/E of 30x. Maintain LONG.

2:15 PM

Vedanta to delist from LSE, Agarwal's family trust makes cash buyout offer

Billionaire Anil Agarwal-led Vedanta Resources plc will delist from the London Stock Exchange after promoter group made a cash offer to buy out about 33 per cent of the public shareholding in the company.

 

Anil Agarwal's family trust has agreed to buy the rest of Vedanta in a deal that values the mining conglomerate at 2.3 billion pounds ($3.03 billion). READ MORE

2:00 PM

Market Check

 

S&P BSE Sensex	35,226.72		-0.56%
Nifty 50	10,633.80		-0.75%
S&P BSE 200	4,579.33		-0.63%
Nifty 500	9,086.55		-0.83%
S&P BSE Mid-Cap	15,307.12		-0.93%
S&P BSE Small-Cap	15,890.51		-0.88%

1:52 PM

MF sector: Excessive regulation reduces returns, under regulation up risks

In India, the concept of MF was introduced with the enactment of Unit Trust of India (UTI) Act in 1963. Subsequently, in 1987, public financial institutions, banks, Life Insurance Corporation and General Insurance Corporation were permitted to float MFs. In 1993, the private sector was allowed to join the industry. Kothari Pioneer was the first to float an MF scheme. READ MORE

1:34 PM

25 years of private sector MF: Many foreign players bite the dust in India

At a time when the private sector mutual fund industry is celebrating its 25 years, it is surprising that there are few foreign players who have made the cut. The first player in the private sector – Kothari Pioneer – was sold to Franklin Templeton within the first few years. READ MORE

1:17 PM

Bajaj Auto on the fast track as sales jump 65% to 4,04,429 units in June

Bajaj Auto on Monday reported a 65 per cent jump in total sales to 4,04,429 units for June. The company had sold 2,44,878 units in the same month a year ago.

Its motorcycle sales also increased by 65 per cent to 3,37,752 units as against 2,04,667 in June last year, Bajaj Auto said in a BSE filing. READ MORE

Stock quote (Source: NSE)
 

1:03 PM

Stocks at 52-week low

COMPANY	PRICE( )	52 WK LOW	CHG( )	CHG(%)
ADANI POWER	15.50	15.20	-0.65	-4.02
BANK OF BARODA	110.45	109.60	-2.35	-2.08
BANK OF INDIA	85.20	84.60	-2.30	-2.63
CAN FIN HOMES	333.55	328.15	-5.85	-1.72
CAPITAL FIRST	511.95	510.60	-4.70	-0.91

12:48 PM

LIC-IDBI deal: Premium money of citizens can't be used to fill fiscal gaps

A dangerous narrative being peddled by the Centre is that LIC has so much cash – it gets about Rs 2 trillion premium money from customers every year – that it is a mere drop in the ocean if it buys a 51 per cent stake (about Rs 130 billion) in IDBI Bank. There is also talk of LIC rescuing Air India by taking a 24 per cent stake after the government’s failed attempt to invite bidders to acquire the ailing airline. READ MORE

12:30 PM

IPOs have valuation, information risks: Wait for some time after listing

 

Over the past year, 39 initial public offers (IPOs) of more than Rs 1 billion have hit the markets (we have deliberately ignored the smaller-sized IPOs, where the companies tend to be less well known, and hence riskier). Of these, 21 have given positive returns while 18 have given negative returns (see table).

 

Only 14 of these 39 IPOs, or around 36 per cent, have managed to beat the returns that an investor could have earned by simply investing in a Nifty-based exchange-traded fund (average return 13 per cent over past one year). READ MORE

12:17 PM

Maruti Suzuki gains after good monthly sales

Maruti Suzuki India rose 0.84% to Rs 8,895 at 09:25 IST on BSE after the company said that its total sales rose 36.3% to 1.44 lakh units in June 2018 over June 2017. The announcement was made on Sunday, 1 July 2018. READ MORE

12:00 PM

Markets at noon

S&P BSE Sensex	35,165.28		-0.73%
Nifty 50	10,640.85		-0.69%
S&P BSE 200	4,572.44		-0.78%
Nifty 500	9,092.10		-0.77%
S&P BSE Mid-Cap	15,293.99		-1.02%
S&P BSE Small-Cap	15,897.30		-0.84%

11:47 AM

Top Nifty50 losers

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
NTPC	152.70	159.65	-6.95	-4.35	4135004
HINDALCO INDS.	223.60	230.50	-6.90	-2.99	2303461
ADANI PORTS	363.85	373.15	-9.30	-2.49	526604
INDIABULLS HOUS.	1114.00	1142.50	-28.50	-2.49	414083
O N G C	154.50	158.40	-3.90	-2.46	2491344

11:31 AM

Devangshu Dutta Tough times for leveraged firms

 

The latest Financial Stability Report from the Reserve Bank of India (RBI) suggests that the banking sector continues to be deep in crisis. In the previous report, in December 2017, the central bank had estimated that, in its ‘baseline scenario non-performing assets’ (NPAs) would peak in September 2018 at 11. 1 per cent of all advances, after hitting 10.8 per cent in March 2018. READ MORE

11:15 AM

No pre-IPO placement for HDFC Mutual Fund distributors

The Securities and Exchange Board of India (Sebi) has directed HDFC Asset Management Company (AMC) to cancel the shares allotted to distributors ahead of its much-awaited initial public offering (IPO), according to sources. Sebi wants the money repaid to the distributors at the rate of 12 per cent interest per annum. READ MORE

11:00 AM

ALERT PNB FRAUD CASE: Interpol issues red corner notice against Nirav Modi

10:57 AM

Rupee watch (Image source: Religare report)