MARKET WRAP: Indices rebound, Sensex climbs 239 pts, Nifty ends at 11,672

All that happened in markets today.

3:41 PM

Sectoral gainers and losers on NSE

3:41 PM

Top gainers and losers on S&P BSE Sensex

3:38 PM

MARKET AT CLOSE

The S&P BSE Sensex added 238 points or 0.62 per cent to end at 38,939 while the NSE's Nifty50 index ended above the 11,650 level at 11,672, up 67 points or 0.58 per cent.

3:10 PM

Centrum Broking on NIIT Tech

We believe measures taken by Mr Sudhir Singh have yielded positive results. NIIT Tech’s revenue growth would be at the upper end of midcap IT peers. NIIT Tech is growing at 2x the pace of Tier 1 IT vendors. We estimate NIIT Tech’s US dollar revenue growth at 17/15.4 per cent for FY19/FY20E, respectively. LTI/Mindtree and NIIT Tech could be the fastest-growing midcaps in FY19E. Retain BUY.

2:57 PM

YES Bank advances 4% after announcement of fund raising plan

YES Bank shares rose 4 per cent to Rs 270 in intra-day trade on the BSE on Tuesday after the private lender announced fundraising plan by way of issuance of equity shares. READ MORE

2:45 PM

Canara Bank gains almost 4%

2:26 PM

Q4 preview of IT sector by Reliance Securities

In our view, while revenue growth prospects for FY20E appear to be positive led by digital transformation, margin prospects assume critical importance in light of major cost headwinds in the form of wage inflation owing to talent shortage. Levers for margin defence are steadily eroding, with utilisation at reasonably high levels, INR tailwind receding and investments in the business likely to remain a constant need to scale-up digital growth. Thus, we would watch the margin picture in FY20E, and believe growth, increasing automation and higher digital pricing owing to high demand are the key levers for margin defence. Return of cash to shareholders is a theme that continues to play out, with TCS, Infosys, Wipro, HCLT, Tech Mahindra, Hexaware, Mindtree and eClerx all resorting to share buy-backs to make better usage of their cash balances. Infosys and Tech Mahindra are our Top Picks in large-cap space, while Hexaware & Sonata Software are our preferred picks in mid-cap space.

2:23 PM

NEWS ALERT | Suzlon Energy initiates stake sale in Shreyas & Aalok to Ostro

2:15 PM

Chart Check: 41 Nifty F&O stocks indicate negative divergence on RSI

Technical indicator Relative Strength Index (RSI) helps to measure the momentum of the stock. The price direction is ascertained by tracking its movement. Normally, when the prices go higher, an equal amount of rise can be seen on the indicator. When it does so, the momentum seems favorable to the stock price. READ MORE

2:10 PM

Market Check: Top gainers on BSE

IBREALEST	108.30	+11.80	+12.23
LINDEINDIA	509.20	+36.90	+7.81
ITI	104.15	+6.25	+6.38
FSL	50.90	+2.35	+4.84
MERCK	3,954.85	+146.50	+3.85

2:01 PM

Merck climbs 5% to hit a new high; zooms 161% in one year

Shares of Merck hit a new high of Rs 3,990, up 5 per cent on the BSE in the intra-day trade on Tuesday. The stock has surged 37 per cent in the past six weeks after the company announced a dividend of Rs 440 per share. In comparison, the benchmark S&P BSE Sensex has risen 7.5 per cent during the same period. READ MORE

 

1:37 PM

Ashok Leyland climbs 2.5%

1:26 PM

Asian Paints lower for third straight day; stock down 4% to Rs 1,440

Asian Paints shares were trading lower for the third straight day, down 4 per cent, at Rs 1,440 in intra-day trade on Tuesday due to higher crude oil prices, one of the key raw materials in paint manufacturing. Meanwhile, in a regulatory filing, Asian Paints said that a fire broke out at the company's paint manufacturing facility in Vishakhapatnam, Andhra Pradesh, on Tuesday afternoon. READ MORE

1:14 PM

Top losers on BSE500

COMPANY	PRICE(rs)	CHG(rs)	CHG(%)	VOLUME
STERLITE TECH.	196.00	-19.95	-9.24	458836
LAK. VILAS BANK	92.50	-4.85	-4.98	1484200
REL. COMM.	2.96	-0.15	-4.82	3521966
RELIANCE POWER	9.77	-0.44	-4.31	5321405
RAIN INDUSTRIES	99.25	-4.40	-4.25	70280

1:05 PM

Motilal Oswal Financial Services on Ambuja Cement

We expect Ambuja to witness muted volumes over CY18-20 with a CAGR of 5- 6% due to capacity constraints. The grinding unit of 1.8mt at Marwar Mundwa will be fully operational only in CY21. We expect EBITDA/t to improve at CAGR of 5% over CY18-20; this is after building in an improvement in industry pricing

and cost measures undertaken by the company. We value ACEM at 10x March’20 EV/EBITDA and its stake in ACC at 20% discount to market value (holding company discount) to arrive at a target price of Rs 206. Maintain Neutral. 

12:54 PM

New expense norms reduce costs of large mutual funds schemes

A number of large schemes have significantly reduced their total expense ratios (TERs) after April 1, in keeping with the regulatory diktat of slab-wise reduction in scheme expenses — a move that is set to benefit investors. Of the 25 largest schemes taken into consideration by way of assets they manage, half have seen a reduction in TER of greater than 20 basis points (bps), the data collated from Value Research shows. READ MORE

12:43 PM

ITI Limited gains 6.4%

12:24 PM

Indiabulls Real Estate zooms 12%

12:14 PM

Here's how you can trade TCS, Infosys, Wipro, HCL Tech ahead of Q4 results

Wipro Ltd (Wipro): The stock witnessed a gap down closing, resulting in negative sentiment. Thereafter, the has been consolidating in the range of Rs 265 – RS 255. Closing chart patterns reveals formation of 'Inverse Head and Shoulder' pattern with a breakout above Rs 265 – Rs 267 range. The its 50-DMA as per daily chart is at Rs 270. A major breakout above this level will see a rally towards Rs 277 and Rs 279, which is also the next hurdle for a further upside. READ MORE

12:05 PM

Market check

12:03 PM

HDFC Securities on Dilip Buildcon

DBL is trading at an attractive valuation of 9.4x FY21E P/E. We maintain BUY with Rs 833/sh TP (13.5x FY21E EPS and Build–operate–transfer (BOT) at 1x equity invested equity. With likely Rs 20 billion advance receipt, debt may have peaked.

11:56 AM

Bajaj Auto climbs 1.4%

11:41 AM

Tyres stocks under pressure

COMPANY NAME	LATEST	HIGH	LOW	CHG (rs)	CHG(%)	VALUE (rs CR)	VOLUME
APOLLO TYRES	215.10	219.55	214.85	-5.10	-2.32	1.18	54762
JK TYRE & INDUST	91.05	92.30	90.55	-1.65	-1.78	0.26	28310
KRYPTON INDS.	16.75	16.90	16.00	0.59	3.65	0.02	14869
CEAT	1082.00	1100.00	1075.45	-25.25	-2.28	1.32	12163
BALKRISHNA INDS	961.95	977.25	961.90	-14.45	-1.48	0.65	6712
PTL ENTERPRISES	40.05	41.25	39.70	0.00	0.00	0.00	455
GOODYEAR INDIA	937.55	941.15	937.55	-12.80	-1.35	0.03	345

11:39 AM

Result preview :: Engineering & capital goods

On strong order books, earnings growth in EPC companies (KEC, Kalpataru) and pumps sector is likely to show strong growth. A pick-up in industrial production is likely to have led to healthy growth for consumables companies. Government investment in capex has slowed; so, sluggish order inflows are likely in order-book oriented companies. AIA Engineering, Grindwell Norton, Voltamp Transformers are the top picks

(Source: Anand Rathi Research)

11:35 AM

Jefferies on power finance companies

Both Power Finance (POWF) & REC Limited (RECL) have had a phenomenal outperformance from their 2018 lows (+74% and +64% respectively) but devoid of any fundamental improvement, barring valuations as highlighted earlier. Post the run up, we believe the downside risks are wider now as DISCOM metrics have only worsened viz. rising payables, limited improvement in ACS/ARR gap and AT&C losses. Retain UNPF on both POWF & RECL

11:34 AM

Emkay Global on Shriram Transport Finance (SHTF)

We downgrade SHTF to Hold rating from Buy earlier due to moderation in disbursement growth (with rising competition in the UV segment) and tight liquidity conditions. We expect a stagnant growth phase (~10-12%) to begin over the mid to long term.  We reduce our earnings estimate for FY20 by ~14.2% due to disbursements decline, pressure on margins and rise in credit costs. We revise our target price to Rs1,181 from Rs1,368 earlier (~1.5x P/B FY20E). Maintain our UW stance on SHTF in our EAP - NBFCs

11:32 AM

Result preview :: Aviation sector

Despite Q4FY19 being seasonally weak, we expect profits to remain on an upward trajectory at both Indigo and SpiceJet (SJET). Jet Airways (JAL) should continue to face elevated losses as its PAX decline would overwhelm higher yields. Key highlights: 1) Yields are likely to surge 15%-plus YoY as airlines have hiked fares in light of sharp capacity-cutbacks at JAL. 2) ATF prices have inched down 1% YoY. 3) Indigo and SJET continue to grow 3x industry with market share gains at JAL’s expense. 4) PLFs though are expected to fall for Indigo/SJET by 3%/6% YoY, which should partially offset higher yields; We are raising the target price for Indigo/SJET by 13%/25% and cutting JAL’s by 22% to INR176 while downgrading it to ‘REDUCE’. We also recommend a switch from JAL to Indigo and SJET.

(Source: Edelweiss Research)

11:31 AM

Prabhudas Lilladher on NIIT Tech

We believe Barings can help NIIT Tech in improving its capital allocation (NIIT Tech dividend payout ~40% in FY18). We see no major change in deal wins and revenue momentum, but margin levers are stretched, leaving limited room for upgrade.

Barings have earlier acquired Hexaware at inexpensive valuations(10.2x) & then then they improved its capital allocation, offered access to portfolio companies, revenue growth accelerated which helped in re-rating the P/E of Hexaware.

We expect 14.9% & 17.5% USD revenue & EPS CAGR for FY19E-FY21E respectively & value NIIT Tech at 17x Mar-21 earnings with unchanged target price of Rs.1539. Maintain Buy 

11:31 AM

Firstsource Solutions gains 7% on stake hike by Rakesh Jhunjhunwala

Shares of Firstsource Solutions (FSL) were up 7 per cent at Rs 51.80 in intra-day trade on Tuesday, extending its previous day’s 1 per cent gain on the BSE, after ace stock-market investor Rakesh Jhunjhunwala purchased an additional 2.5 million shares of the business process outsourcing (BPO) services provider during the March quarter. READ MORE

11:19 AM

Torrent Pharma climbs 2.7%