MARKET WRAP: Nifty ends firmly above 10800, Sensex up 257 pts; pharma gains

Markets edged up on Friday, even as broader global markets remained weak

3:38 PM

Top gainers from the Nifty Bank index

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
RBL BANK	552.80	538.95	13.85	2.57	933622
AXIS BANK	526.00	513.05	12.95	2.52	5562344
ST BK OF INDIA	272.95	268.65	4.30	1.60	19810021
HDFC BANK	2085.60	2057.60	28.00	1.36	1752984
ICICI BANK	300.15	297.95	2.20	0.74	16394212

3:37 PM

Nifty Pharma gains 1.8%; Top gainers in the pack

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
SUN PHARMA.INDS.	580.30	554.50	25.80	4.65	9380404
PIRAMAL ENTERP.	2591.60	2536.40	55.20	2.18	351260
CIPLA	615.50	603.50	12.00	1.99	3122103
BIOCON	629.10	620.35	8.75	1.41	1977618
DR REDDY'S LABS	2342.00	2316.40	25.60	1.11	1619254

3:36 PM

Sectoral Trend

3:34 PM

Top Sensex gainers and losers

3:33 PM

Markets at Close

The S&P BSE Sensex ended the day at 35,689, up 257 points while the broader Nifty50 index settled at 10,822, up 81 points

3:15 PM

Bajaj Finance surpasses Axis Bank in market-cap ranking

 

Bajaj Finance, which hit a new high of Rs 2,330, up 3% on the BSE in late noon deal on Friday, has surpasses private sector lender Axis Bank in market capitalisation (market-cap) ranking.

 

Thus far in the calendar year 2018 (CY18), Bajaj Finance has outperformed the market by surging 33% as compared to 4% rise in the S&P BSE Sensex. Axis Bank has underperformed the market by falling 8% during the period. READ MORE

3:00 PM

Opec meet in Vienna: Oil ministers back output hike despite Iran's walkout

 

Opec and its allies reached a preliminary agreement in the face of strong opposition from Iran to boost production by a theoretical 1 million barrels a day -- the actual increase will be smaller as several countries are unable to raise output.

 

In a night of drama in Vienna, the Joint Ministerial Monitoring Committee, which recommends policy to the group, reached an agreement despite Bijan Zanganeh, the Iranian oil minister, walking out of the meeting and predicting Opec won't reach a final deal when it meets formally on Friday. READ MORE

2:48 PM

Reliance Securities on Ahluwalia Contracts​​  (ACIL)

ACIL added orders worth Rs16.2bn in the first two months of FY19 taking its total order backlog to Rs47bn, which offers decent visibility. Further, Rs1.8bn of order is L1 and ACIL expects to add Rs5-6bn more in remaining 10 months of FY19.

 

We further believe that asset light business model, best in class ​​return ratios and healthy balance sheet augur well for ACIL. We expect the company to report revenue and earnings CAGR of 12% and 21%, respectively through FY18-20E. At the CMP, the stock trades at 16x and 14.2x for FY19E and FY20E earnings, respectively. ​​We have BUY recommendation on the stock with a Target Price of Rs450.

2:46 PM

SECTOR WATCH HDFC Securities on cooling products industry

We expect low single digit growth in 1QFY19 for Voltas (UCP) and Symphony (domestic) owing to a pickup in the second half of the quarter. We believe stock correction has been greater than the earnings cut since 4QFY18 for Voltas (17% vs. 7% EPS cut) and Symphony (25% vs. 12% EPS cut) implying a de-rating.
 

Based on our checks, we confirmed that both these players continue to maintain their leadership despite stiff competition. We believe low penetration of cooling products and their leadership position, along with a solid management track record warrants a great entry opportunity to play the structural story.

2:45 PM

PNB Housing Finance hits 52-week low of Rs 1,051

 

PNB Housing Finance hit its 52-week low of Rs 1,051, down 5% on the BSE. Shares of the housing finance arm of Punjab National Bank (PNB) are trading at its lowest level since March 15, 2017.

 

Since May 2, 2018, PNB Housing Finance has underperformed the market by falling 26% as compared to 1% rise in the S&P BSE Sensex. READ MORE

2:30 PM

Brokers change tack in run-up to universal trading platforms

 

The equity broking business in India is passing through a consolidation phase, ahead of the launch of universal trading platforms -- that is, permitting commodity trading on equity exchanges and vice versa. Last December, the Securities and Exchange Board of India (Sebi) said equity and commodity exchanges would be allowed to enter each other’s area from October 2018.

 

The BSE and National Stock Exchange have said they would be launching futures trading in commodities. READ MORE

2:15 PM

Fee does not matter in actively managed equity funds

 

The Securities and Exchange Board of India (Sebi) has been pushing reforms to lower mutual fund charges. Recently, it lowered the additional expense they can charge in place of exit loads from 20 basis points (bps) to 5 bps, a 15 bps reduction.

 

It had earlier mandated that any exit load charged should be deposited back in the scheme, and instead fund houses could charge extra 20 bps, but this provision was misused by fund houses. READ MORE

2:01 PM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	35506.78	35432.39	74.39	0.21
	14684.85	14654.16	30.69	0.21
	15800.39	15767.70	32.69	0.21
	16522.17	16528.17	-6.00	-0.04
	4184.16	4174.01	10.15	0.24

1:46 PM

After near three-year probe, Sebi action in NSE colo case in a 'few days'

 

The Securities and Exchange Board of India (Sebi) will soon initiate enforcement action against country's largest stock exchange the National Stock Exchange (NSE) and various other entities involved in an infamous co-location (colo) controversy.

 

The market regulator has been probing the case since early 2015 following multiple complaints that some brokers got preferential access at the exchange’s colo servers. “We have received investigation reports from the forensic auditors and also from the internal team. READ MORE

1:29 PM

Modi seeks double-digit growth for India's entry into $5-trn economy club

 

Prime Minister Narendra Modi on Friday spoke of targeting double-digit GDP growth for breaking into the $5 trillion economy club and said India's share in world trade has to be doubled to 3.4 per cent.

 

Speaking after laying the foundation stone of a new office complex of the Ministry of Commerce, he said his government has in four years taken steps to ease the process of doing business in India while maintaining macroeconomic indicators like current account deficit (CAD) within limits. READ MORE

1:15 PM

Top BSE500 gainers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
VAKRANGEE	52.50	2.50	5.00	4160399
MANPASAND BEVER.	149.45	7.10	4.99	399436
JET AIRWAYS	389.20	14.80	3.95	303850
INDIA CEMENTS	111.80	4.25	3.95	250613
FDC	240.00	8.85	3.83	703

1:00 PM

Sun TV Network: Rebound in viewership, market share unlikely in near term

 

Sun TV Network's stock has shed 12 per cent since its high earlier this month, as increased competition in its core markets have resulted in viewership hitting lifetime lows. The share of the company's flagship Tamil general entertainment channel continued to slide, from 44 per cent in April to 42.4 per cent in May and, to 40 per cent now.

 

This was closer to 55 per cent a year before. This has been eroded by higher competition in the segment from Zee (Zee Tamil), Star Vijay and Colors Tamil. READ MORE

12:45 PM

SRF hits four-month low; stock falls 25% post Q4 results

 

Shares of SRF hit a four month low of Rs 1,690, down 5% on the BSE, falling 11% thus far in the current week. The stock of textiles Company was trading at its lowest level since February 6, 2018.

 

Post January-March quarter (Q4FY18) results, SRF has fallen 25% from Rs 2,258 on May 16, as compared to a marginal 0.12% rise in the S&P BSE Sensex. READ MORE

12:30 PM

Physical settlement of stock derivatives: Some stocks may get squeezed

 

Bears in some Indian companies, including a supplier of gas to homes and cabs in Mumbai, risk getting caught out when exchanges move to physical settlement of stock derivatives next month, says Emkay Global Financial Services.

 

The brokerage sees a potential for a “short squeeze” in seven of 45 stocks whose contracts will be physically delivered July expiry onward. The companies have been analyzed based on valuations, open interest, institutional holding and price movement over past few months, Emkay said in a note this week. READ MORE

12:16 PM

AstraZeneca gains 5% on marketing nod to launch cancer drug in India

 

AstraZeneca Pharma India was up 5% to Rs 1,416 on the BSE in early morning trade after the company saidit has received approval from the Drug Controller General of India to market Durvalumab, a cancer treatment medicine.

 

“The company has received import & market permission for Durvalumab (ImfinziTM) in India by the Drug Controller General of India (DCGI). The receipt of this permission paves way for the launch of durvalumab (ImfinziTM) in India, subject to the receipt of further related statutory approvals and licenses,” AstraZeneca Pharma India said in a press release. READ MORE

12:01 PM

Markets at Noon

S&P BSE Sensex	35,413.01		-0.05%
Nifty 50	10,735.40		-0.05%
S&P BSE 200	4,634.03		-0.08%
Nifty 500	9,228.95		-0.12%
S&P BSE Mid-Cap	15,736.39		-0.20%
S&P BSE Small-Cap	16,485.04		-0.26%

11:55 AM

BoA ML downgrades FMCG stocks to 'underweight' from 'overweight'

 

Bank of America Merrill Lynch (BoA ML) has downgraded stocks in the fast moving consumer goods (FMCG) space from 'overweight' to 'underweight'. The foreign brokerage says valuations of Indian staples have soared, diverging from their global peers. "Multiples for Indian staples have defied gravity recently.

 

They have increased even as multiples for staples in the emerging markets (EM) are flat to falling. This is not typical," Sanjay Mookim and Nafeesa Gupta, analysts at BoA ML, wrote in a note. READ MORE

11:46 AM

NEWSMAKER Sandeep Bakhshi: The last man standing or a turnaround banker?

Five days ago ICICI Bank’s board made an announcement that put to rest a number of theories floating around ICICI Bank-Chanda Kochhar saga that has been making the news for the last couple months.

 

In a notice to stock exchanges, the board announced that Sandeep Bakhshi, the 57-year-old ICICI employee who had been managing director and CEO of ICICI Prudential Life Insurance since 2010, was now promoted to Chief Operating Officer for the bank with a line of reporting that led straight to Kochhar READ MORE

11:44 AM

MARKET COMMENT Rabobank International on Turkey elections

On June 24, Turks will vote in probably the most important elections in Turkey’s modern history. Parliamentary and presidential elections will mark the beginning of a new political system based on the executive presidency. The outcome will have profound implications for Turkish financial markets and the real economy. 

It is difficult to predict how the lira and local assets may react. Erdogan’s victory accompanied by a strong mandate obtained by his AKP will be interpreted by some investors as a source of political stability. For others such a result will be negative mainly due to concerns that the central bank could be under political pressure to lower interest rates to maintain robust GDP growth at the time when the economy is already overheated as reflected in a double digit inflation and a wider current account deficit.
 

Volatility is likely to rise after the elections, but once the dust settles the lira should stabilise and may even trim its substantial losses should pragmatism prevail (at least in the first half of Mr Erdogan’s presidency). In our view the incentive to maintain robust growth at all costs should weaken if the AKP and Erdogan win. Allowing the economy to slow down would lead to lower inflation and a narrower C/A gap which would ease concerns about Turkey’s reliance on volatile capital inflows.

11:41 AM

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,415.75	-16.64	-0.05
S&P BSE SENSEX 50	11,244.91	-2.31	-0.02
S&P BSE SENSEX Next 50	32,376.99	-75.56	-0.23
S&P BSE 100	11,027.23	-5.79	-0.05
S&P BSE Bharat 22 Index	3,395.45	+6.05	+0.18

11:41 AM

Angel Broking on Amber Enterprises

We expect Amber to report consolidated revenue/PAT CAGR of 28%/51% respectively over FY2018-20E. It is currently trading at 21x FY 2020 earnings which is at 25-30% discount than its closest peer - Dixon Technologies.

The recent correction has provided a very good entry point for the investors to take a bet on the booming AC space. Hence, we initiate coverage on the stock with a BUY recommendation and Target Price of `1272 (28x FY2020E EPS), an upside of 32% from the current levels.

11:39 AM

Sharekhan on Maruti

Marginally lower estimates on JPY appreciation; Maintain Buy with a revised price target of Rs. 10,500: In view of the recent JPY appreciation and its impact on profitability, we have trimmed our OPM estimates by 50 BPS for FY2019 and FY2020. Consequently, we have lowered our earnings estimates by 4% each for FY2019 and FY2020. Retain Buy rating on the stock with a revised price target of Rs. 10,500 (earlier Rs. 11,085).

11:38 AM

Nirmal Bang on S Chand & Co

We expect margins to improve by 74.5 bps in FY19E and remain stable in FY20E. S Chand is likely to do PAT of Rs 122.2cr & Rs 144.4cr in FY19E & FY20E respectively. At CMP, the share is trading at EV/Ebitda of 5.7x and PE of10.0x FY19E EPS of Rs 34.9. We recommend a BUY on S. Chand with a target price of Rs 524, based on 15x FY19E EPS (49.7% return)

11:36 AM

COMMODITY WATCH India, top buyer of US almonds, hits back with 120% duty on import

India, the world's biggest buyer of U.S. almonds, raised import duties on the commodity by 20 per cent, a government order said, joining the European Union and China in retaliating against President Donald Trump's tariff hikes on steel and aluminium.

 

New Delhi, incensed by Washington's refusal to exempt it from the new tariffs, also imposed a 120 per cent duty on the import of walnuts in the strongest action yet against the United States READ MORE

11:15 AM

Firms to approach forensic experts for curbing instances of insider trading

 

Recent regulatory action has prompted a host of top listed firms to approach forensic auditors to curb instances of insider trading within their organisations.

 

The misuse of unpublished price sensitive information, or UPSI, came into the limelight after financial results of companies circulated through WhatsApp messages caught the attention of market regulator Securities and Exchange Board of India late last year. READ MORE