MARKET WRAP: Sensex falls 241 pts; banks, FMCG, IT stocks among top losers

All that happened in markets today

4:09 PM

MARKET COMMENT :: Jayant Manglik, President, Religare Broking

In the absence of any major domestic and global triggers selling pressure could continue in the coming sessions, hence we maintain our cautious stance on the Indian markets in near term. The focus of investors would be on last leg of Q3FY19 earnings season. Further, market participants would closely monitor the progress of trade talks between US-China, behaviour of crude oil prices and fluctuation in currency as it would further induce volatility in the markets. We would advise Investors to stay focused on selective blue chip companies. However, considering the near term uncertainty, traders should strictly hedge their leveraged positions

3:39 PM

Sectoral gainers and losers of the day on NSE

3:35 PM

Gainers and losers of the day on S&P BSE Sensex

3:33 PM

Market at close

The S&P BSE Sensex ended at 36,154, down 241 points or 0.66 per cent, while the broader Nifty50 index settled at 10,831, down 57 points or 0.53 per cent.

3:21 PM

Top losers on BSE500

COMPANY	PRICE(rupees)	CHG(rupees)	CHG(%)	VOLUME
G N F C	274.40	-33.80	-10.97	385707
MEGHMANI ORGAN.	51.90	-3.65	-6.57	255016
SOMANY CERAMICS	318.30	-19.75	-5.84	2025
TEJAS NETWORKS	142.00	-8.25	-5.49	2498
T N NEWSPRINT	192.00	-10.90	-5.37	50161

3:10 PM

Hindalco third-quarter profit plunges on higher input costs

Aluminium producer Hindalco Industries Ltd posted a 34.4 percent drop in third-quarter profit on Tuesday, hurt by increase in input costs, mainly of coal and furnace oil.

 

Standalone net profit after tax was 2.47 billion rupees ($34.87 million)in the quarter ended Dec.31, compared with 3.77 billion rupees a year ago READ MORE

3:04 PM

Reliance Home Finance Q3 profit up 38% at Rs 55 cr, stock down 6%

Reliance Home Finance, the housing finance arm of Reliance Capital, reported a net profit of Rs 55 crore in the quarter ended December 2018. Profits were up 37.5 per cent in the third quarter of 2018-19 over the same period last fiscal. READ MORE

2:46 PM

JM Financial on SpiceJet

SpiceJet has aggressively stepped up fleet expansion plan with addition of 12 aircraft in 3Q and plans to add eight Boeings in 4Q. The arbitration award disallowing issue of warrants to the erstwhile promoters and fixing the maximum liability for the company has been challenged before the court by all the parties on various aspects of the award.

The Company has been recently awarded 36 new sectors under UDAN III. Aggressive utilisation levels – PLF 90%+ backed by strong regional presence and variety of aircraft to size up demand in regional routes remains key strength. We ascribe an EV/EBITDAR multiple of 6.5x to arrive at a fair value of Rs 106.

Maintain BUY.

2:28 PM

Top gainers and losers on S&P BSE Sensex

2:18 PM

BSE SmallCap index hits 52-week low

The S&P BSE SmallCap index hit a 52-week low of 13,390 on Tuesday, on the back of sharp declines in fertiliser, graphite electrode, paper and auto ancillary stocks after they reported a weak set of numbers for the quarter ended December 2018 (Q3FY19).

The index has fallen below its previous low of 13,397 touched on October 9, 2018, in the intra-day trade. With today’s fall, the small index slipped 28 per cent from its 52-week high level of 18,672 on February 14, 2018. In comparison, the S&P MidCap index and the benchmark index S&P BSE Sensex were down 17 per cent and 7 per cent, respectively, from their 52-week high levels. READ MORE

2:04 PM

Earnings Impact

2:02 PM

NEWS ALERT

Hindalco: PAT at Rs 713 crore, up by 47%, for Hindalco Standalone plus Utkal Alumina 

1:44 PM

Bharat-22 ETF additional sale on Feb 14, govt looks to raise Rs 3,500 cr

The government will launch an additional offering of Bharat-22 Exchange Traded Fund (ETF) on February 14 to raise at least Rs 3,500 crore, officials said Tuesday. This ETF sale would be for a single day, in which both institutions and retail investors can participate, they said. READ MORE

1:32 PM

STOCK IMPACT

HEG trades nearly 3.5% down post December quarter results

1:30 PM

NEWS ALERT

HEG reports net profit at Rs 866.83 crore vs Rs 342.11 crore year ago

1:26 PM

NEWS ALERT

1:20 PM

Top losers on BSE500

COMPANY	PRICE(rupees)	CHG(rupees)	CHG(%)	VOLUME
G N F C	276.50	-31.70	-10.29	298801
GRAPHITE INDIA	403.20	-32.80	-7.52	379162
HEG	2064.90	-146.20	-6.61	49049
T N NEWSPRINT	191.00	-11.90	-5.86	46582
KAVERI SEED CO.	506.75	-30.40	-5.66	50801

1:04 PM

How a small Tamil Nadu bank beat India's largest banks in the stock market

A policy of cautious lending to the silk weavers and shopkeepers of Tamil Nadu has allowed a small local bank to outpace the largest Indian banks in terms of share price performance.

 

City Union Bank Ltd., a small lender based in Kumbakonam, has risen more than 27 percent over the last twelve months, the best performance of any Indian lender in the Bankex index after Axis Bank Ltd. It has beaten out larger rivals such as HDFC Bank Ltd. and State Bank of India thanks to its successful record in lending to small and medium sized enterprises, or SME sector, while keeping a lid on bad loans. READ MORE

12:52 PM

SBI Caps Securities on SpiceJet

With the domestic market growth moderating from the earlier highs there seems to be some pricing discipline coming back into the system. This, coupled with efforts to reduce cost should drive improvement in profitability, going ahead. We maintain BUY with a target price of Rs109/share valuing the company at 8.5x FY20e EV/EBITDAR

12:51 PM

Elara Capital on SpiceJet

We lower FY20E EPS by 8% and FY21E EPS by 11% on a lower PLF at 88% (from 92%) for FY20E and at 87% (from 89%) for FY21E on sizeable capacity addition, offset by lower fuel CASK at Rs 1.3 per seat-km from Rs 1.4 per seat-km. We lower our target price to Rs 144 from Rs 158 on 8.0x (unchanged) FY21E EV/EBITDAR. We reiterate Buy on improving fuel efficiency, falling non-fuel cost with new fleet addition, and short-haul international market opportunity with Boeing-737-8Max.

12:49 PM

Govt push for rural consumption should help Britannia Industries stock

The share price of Britannia Industries (valued at 52 times FY20 earnings and among the highest in the FMCG segment) shed about three per cent in just two trading sessions compared to a 1.6 per cent fall in the Sensex. Despite Q3 numbers being almost in line with analysts’ expectations, the lower volume growth impacted investor sentiment.

 

While net sales grew by 10.5 per cent year-on-year to Rs 2,827.4 crore against analyst expectations of Rs 2879 crore, net profit was up 13.8 per cent to Rs 300.1 crore but lower than Street estimates of Rs 312 crore. READ MORE

12:40 PM

Top gainers and losers on S&P BSE Sensex

12:22 PM

Inter-scheme transfers likely to cross Rs 2-trillion mark in FY19

The practice of transferring corporate debt papers from one scheme to another (dubbed inter-scheme transfers) is poised to cross the Rs 2-trillion mark in FY19. This will be the highest figure since the data has been available.

 

At the end of January, the figure stood at Rs 1.9 trillion, which is 12 per cent higher than the previous fiscal year. Experts tracking the industry are of the opinion that there may have been instances of some fund houses transferring riskier debt papers from institutional-driven products to retail products in anticipation of stress in these papers. READ MORE

12:14 PM

Prabhudas Lilladher on Tata Motors

Rating: BUY 

CMP: Rs 153 

TP: Rs 207

 

Concerns over sales in China are expected to persist over the near term with further dealer inventory correction expected in Q4 to reach 1.5 months of dealer inventory levels. EBIT guidance over FY20-22 also has been reduced to 3-6% (earlier 4-7%). Standalone performance for the company remains on track. We currently factor in ~5.5% volume growth for JLR over FY19-20 and maintain “BUY” with the target price of Rs207, where we value JLR at 1.5x Sept’21E EV/EBITDA and Standalone entity at 9x Sep’21E EPS.

12:09 PM

Motilal Oswal on Motherson Sumi

CMP: Rs 133 

TP: Rs 170 

RATING: Buy

 

We cut consol. EPS estimate by 11% for FY20 and by 14% for FY21 to factor in the weak outlook for the luxury car market and the weak ordering data on US Class 8 trucks. However, with limited capex, execution of the strong order book of SMPBV and continued traction in the wiring harness business in BS6, MSS is expected to be a prime beneficiary. The stock trades at 17.6x/15.6x FY20E/21E consol. EPS. Maintain Buy with a target price of Rs 170 (20x Mar’21E consol. EPS).

12:01 PM

Market check

11:58 AM

Motilal Oswal on Britannia Industries

CMP: Rs 3,113 

TP: Rs 3,630 

RATING: Buy

 

Changes to the model have resulted in a 0.9%/1.2% cut in our FY19/20E EPS. We are enthused about healthy volume growth (despite a high base), rapid distribution expansion, sustained strong growth in the erstwhile weak-performing states and the rapid pace of new launches in biscuits/other packaged F&B products. Continuing premiumization, significant incremental cost savings and a moderate commodity cost outlook relative to earlier years signify bright EBITDA margin prospects. We maintain Buy with a TP of Rs 3,630 – 52x FY21E EPS, a 10% premium to three-year average, with EPS expected to grow faster (CAGR: 20.1%) over FY19-21 than over FY16-19 (12.1%).

11:44 AM

HEG falls 20% in four trading sessions ahead of December quarter earnings

Shares of HEG were down 8 per cent to Rs 2,025 apiece on BSE in the intra-day trade on Tuesday, ahead of October-December quarter (Q3FY19) result today.

The stock of graphite electrode (GE) maker had declined 20 per cent in the past four trading days, as compared to a 1.5 per cent fall in the S&P BSE Sensex. It touched a 52-week low of Rs 1,975 on January 29, in intra-day trade. READ MORE

11:29 AM

Nifty Metal index is trading firm led by gains in Jindal Steel & Power

11:22 AM

Investors still fear NBFCs: 2 Indian funds' assets fell 50% in Dec quarter

Indiabulls Asset Management and DHFL Pramerica Mutual Fund have seen their assets plunge by more than half in the December quarter. That shows fears of India’s non-bank finance companies still linger. The dwindling in assets is the most among any mutual-fund company in India during the period, data compiled by Bloomberg show. While flows to the industry have slowed recently because of heightened market volatility and political uncertainty ahead of elections due by May, it also suggests investors continue to shun risk months after defaults by an infrastructure lender shocked India’s non-bank finance companies. READ MORE