MARKET WRAP: Sensex ends 155 pts lower; SBI down 4% post Q1 results

Catch all live market action here

3:50 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

The Indian benchmark indices ended Friday’s session with losses tracking weak global cues. The Nifty Index ended lower by 0.4% to close at 11,430 levels. The broader markets underperformed the benchmark with BSE Midcap and BSE Smallcap ending the day with losses of 0.9% each. On the sectoral front, Consumer Durables, Autos and IT were the outperformers ending in green, whereas Metals, Capital Goods and Banking were the top losers. Amongst the global markets, both Asian and European Indices traded on a weak note.

With headline index trading at record highs, some consolidation cannot be ruled out. Key macro data (WPI & CPI) scheduled next week would be keenly watched by the investors. We expect stock specific volatility to continue with more corporate earnings scheduled in the next 1-2 weeks. Further, market participants would keep an eye on global developments especially the US-China trade war, progress of monsoon, currency and crude oil price movement

3:41 PM

PSU Banks slip over 3% as SBI falls post Q1 results

3:36 PM

Sectoral Trend

3:35 PM

Top Sensex gainers and losers

3:32 PM

Markets at close

The S&P BSE Sensex ended the day at 37,869 down 155 while the Nifty50 index settled at 11,429 down 41 points

3:18 PM

Top 52-week losers

COMPANY	PRICE( )	52 WK LOW	CHG( )	CHG(%)
CAN FIN HOMES	320.65	318.45	-5.60	-1.72
JET AIRWAYS	276.50	261.60	-25.20	-8.35
REDINGTON INDIA	102.00	101.80	-1.55	-1.50
S H KELKAR & CO.	195.00	193.05	-6.85	-3.39

3:04 PM

Reliance Securities on HeidelbergCement

 

Rating: Buy 

Target Price: Rs 210

 

HCIL has consistently been increasing its premium cement sales volume, which accounted for 11% of total sales volume in 1QFY19. As premium cement commands Rs8-10/bag higher than standard cement, further improvement in premium cement sales is expected to aid its profitability. While capacity constraint seems to the key hurdle for HCIL as of now to get re-rated, we are hopeful it to get addressed in ensuing months.

 

Looking ahead, we expect visible de-leveraging of balance-sheet (repaid ECB of Rs750mn in 1QFY19) and healthy operating efficiencies are expected to result in improvement in return ratios. We maintain our fundamental BUY recommendation on the stock with a Target Price of Rs210

 

2:55 PM

M&M, Berger Paints, Bata India, Exide Industries hit new highs

 

Shares of Mahindra & Mahindra (M&M), Berger Paints India, Bata India and Exide Industries were among eight companies from the S&P BSE500 index hit their respective new highs on the BSE in otherwise range-bound market.

 

Indiabulls Ventures, Graphite India, Nestle India and Sanofi India, too, touched record highs today. READ MORE

2:41 PM

Are mutual funds now less inclined to be activists?

 

Swraj Paul’s sweeping moves to snap up shares in Indian companies and move to ‘clean them up’ are seen by some to be one of the rare occasions that promoters had reason to fear their shareholders in India. This happened in the 1980s.

 

More than three decades later, large institutional players seem less willing to rock the boat. READ MORE

2:24 PM

SBI Q1 results

 

Corporate slippage at Rs 37.01 billion vs Rs 290.37 cr billion

Domestic NIM at 2.95% vs 2.67% QoQ

Wholebank NIM at 2.8% vs 2.5% QoQ

2:18 PM

SBI Q1 Results 

Fresh slippages at Rs 99.85 billion

2:15 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,991.18	-33.19	-0.09
S&P BSE SENSEX 50	11,993.36	-13.64	-0.11
S&P BSE SENSEX Next 50	33,966.20	-92.15	-0.27
S&P BSE 100	11,732.10	-16.20	-0.14
S&P BSE Bharat 22 Index	3,651.51	+2.81	+0.08

2:14 PM

SBI Q1 Results

 

Gross NPA at 10.69% vs 10.91% QoQ 

Provisions at Rs 192.28 billion vs Rs 280.96 billion QoQ

Recognised entire MTM losses of Rs 58.90 billion in Q1

2:13 PM

Earnings Impact

2:12 PM

SBI Q1 Results

Net interest income at Rs 217.98 billion in Q1

2:12 PM

SBI Q1 results

SBI says recognised entire net mark-to-market on investments of Rs 58.93 billion. Made provision of Rs 26.55 billion on arrears of wages due for revision

2:09 PM

SBI Q1 Results

Absolute gross NPA at Rs 2.13 trillion vs Rs 2.23 trillion QoQ

2:07 PM

SBI Q1 results

Loss of Rs 48.76 billion vs loss of Rs 77.18 billion QoQ (vs profit of Rs 20.05 billion YoY)

2:00 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,922.87	-101.50	-0.27
S&P BSE SENSEX 50	11,976.66	-30.34	-0.25
S&P BSE SENSEX Next 50	33,911.95	-146.40	-0.43
S&P BSE 100	11,715.53	-32.77	-0.28
S&P BSE Bharat 22 Index	3,632.30	-16.40	-0.45

1:45 PM

Eicher Motors gains 5% on good Q1 results

 

Eicher Motors has moved higher by 5% to Rs 28,975 on the BSE after the company reported 25% year-on-year (YoY) growth in its consolidated net profit at Rs 5.76 billion in June quarter (Q1FY19). It had profit of Rs 4.60 billion in the same quarter last fiscal.

 

During the quarter under review, Royal Enfield posted its best ever performance. Revenue from operations rose 27% YoY to a record Rs 25.48 billion in the quarter. The Ebitda (earnings before interest, tax, depreciation and amortization) margin increased to 31.8% in Q1FY19 from 31% in Q1FY18. READ MORE

1:30 PM

With good steel demand, SAIL's profitability improvement continues

 

SAIL continues to build on the gains it has seen during the past one year led by regular improvement in its performance as its much-delayed expansions started getting commissioned. The company’s reported EBITDA (operating profit) per tonne at Rs 7,877 during the June 2018 quarter (Q1) is a significant improvement over Rs 86 in the year-ago quarter and an increase of 13 per cent sequentially.

 

It was also higher than Rs 7,400-7,600 levels anticipated by brokerages. This is also at the highest levels since March 2010 quarter. READ MORE

1:15 PM

Top Sensex gainers and losers

1:00 PM

UTI MF identifies Rahman as interim chief if Puri doesn't get extension

 

UTI MF has identified Imtaiyazur Rahman to take over as the interim chief if current managing director Leo Puri doesn’t get an extension, said two people with direct knowledge of the development. Rahman is currently working at UTI MF in the capacity of chief financial officer and is responsible for global operations.

 

UTI MF couldn't be reached immediately. “We have no comment on the report about Mr. Rahman,” said a T Rowe Price spokesperson. READ MORE

12:45 PM

Devangshu Dutta Auto index signalling a correction in markets

 

“Deseasonalising” the impact of the goods and services tax (GST) launch last year will be a difficult task. Typically manufacturers cut back manufacturing in June and then pushed out massive volumes to dealers in July.

 

There were also the usual glitches with moving to a totally new system, so sales glitches were seen across August-September. As a result, sales data is skewed in both directions for several months due to unusual base effects. READ MORE

12:30 PM

Axis vs ICICI Bank: Both have similar risk profile in asset quality terms

 

With the benchmark indices scaling new heights every other day, the two competing private banks, Axis and ICICI, are among the major gainers. Their shares have, in fact, outperformed the indices by a big margin in the past month, with Axis up 17 per cent and ICICI up 23 per cent in the period.

 

The debate among investors, especially after the June quarter (Q1) results, is about which of the two stocks is a better 'buy'. This is because Axis outperformed ICICI in the past six-month and 12-month periods but the latter seems to be catching up. READ MORE

12:15 PM

Exports power Bharat Forge's Q1 show; defence segment may scale up

 

Led by strong export revenues, Bharat Forge reported its seventh consecutive quarter of sequential growth for the June quarter. Exports, which, account for 57 per cent of standalone revenues, was up 26 per cent over the year-ago quarter, helping overall revenues grow 23 per cent in the quarter.

 

Though domestic revenues were strong, gaining 19 per cent y-o-y, they fell 3 per cent on a sequential basis. The lower growth was largely on account of the industrial segment, which has been pegged back by delays in finalisation of tenders and also saw revenue decline 12 per cent. READ MORE

12:00 PM

Markets at noon

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	11437.85	11470.70	-32.85	-0.29
	9740.95	9769.10	-28.15	-0.29
	19223.10	19236.70	-13.60	-0.07
	7578.95	7623.85	-44.90	-0.59
	12.92	12.68	0.24	1.89

11:45 AM

Indiabulls Ventures hits new high on fund raising plan; soars 48% in 1 month

 

Shares of Indiabulls Ventures are locked in upper circuit of 5% at Rs 713 on the BSE, extending its last one month's rally, after the company announced that its board will meet on Tuesday, August 14, to consider fundraising plans. The stock currently trading at its new high has rallied 48% as compared to 5% rise in the S&P BSE Sensex.

 

“A meeting of the board of directors of the Company would be held on Tuesday, August 14, 2018, to consider and approve convening of the ensuing Annual General Meeting of the Company including agenda thereof, raising of funds by way of issue of bonds /debentures /equity shares/other eligible securities etc. of the Company, on private placement / public issue basis to any class of investors including qualified institutional buyers,” Indiabulls Ventures said in a regulatory filing. READ MORE

11:30 AM

Sebi allows custodians to draw up their own high-risk jurisdictions lists

 

In a retreat from its earlier stance, the Securities and Exchange Board of India (Sebi) has asked the custodians to draw up their own lists of high-risk jurisdictions in lieu of a single, common list as envisaged earlier.

 

In a meeting with custodians last week, the regulator told them that they could follow their own processes to identify high-risk jurisdictions, provided the list is reviewed periodically and the regulator is kept in the loop regarding the same. READ MORE

11:15 AM

Page Industries profits driven by cost management

 

Investors cheered the stellar June 2018 quarter (Q1) numbers of Page Industries on Thursday, with the stock rising over seven per cent to close at Rs 32,391 after hitting an all-time high of Rs 32,750.

 

Though the company’s revenue of Rs 8.2 billion (17.1 per cent up year-on-year) was tad below the Street’s expectations of Rs 8.3 billion (as per Bloomberg consensus), its reported net profit of Rs 1.24 billion (up 45.9 per cent year-on-year) was well above the estimations of around Rs 1.14 billion. READ MORE