MARKET WRAP: Sensex gains 197 pts; RIL pips TCS to become most valued firm

The Nifty PSU Bank index settled 2 per cent higher led by Oriental Bank of Commerce and Bank of India

3:41 PM

Top sectoral gainers and losers on NSE

3:41 PM

S&P BSE Sensex: Top gainers & losers

3:35 PM

Market at close

The S&P BSE Sensex gained 197 points or 0.56 per cent to end at 35,457 while NSE's Nifty50 index closed above the crucial 10,650 level at 10,682, up 66 points or 0.62 per cent.

3:28 PM

Deepak Fertilisers, Hexaware, Dixon Technologies hit 52-week lows

Shares of Rallis India, Deepak Fertilisers & Chemicals, Dixon Technologies (India), Hexaware Technologies, Take Solutions and BASF were among 22 stocks from the S&P BSE Allcap index hitting their respective 52-week lows on Friday in intra-day trade. READ MORE

3:12 PM

Gold prices rise by Rs 54 to Rs 30,875 per 10 g on positive global trends

Gold prices rose by Rs 54 to Rs 30,875 per 10 grams in futures trade Friday as speculators raised their bets, taking positive cues from global market. At the Multi Commodity Exchange, gold for delivery in December was trading higher by Rs 54, or 0.18 per cent, to Rs 30,875 per 10 grams in a business turnover of 198 lots. READ MORE

2:54 PM

EARNINGS IMPACT: SREI Infra up over 10%

2:39 PM

PSU Banks gain led by Oriental Bank of Commerce

2:31 PM

9 stocks that touched 52-week high in trade so far

2:15 PM

RBI board to consider surplus fund transfer, ease norms for weak bonds

 

The board of India’s central bank will meet on Monday to consider easing rules governing transfer of surplus funds to the government as well as liberalizing norms for weak banks to boost lending in the economy, people with knowledge of the matter said. The Reserve Bank of India will also review rules on capital and risk weight for Indian banks which are considered more stringent than the Basel guidelines. Read more

1:59 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,423.55	+163.01	+0.46
S&P BSE SENSEX 50	11,145.95	+54.16	+0.49
S&P BSE SENSEX Next 50	32,095.81	-47.43	-0.15
S&P BSE 100	10,930.47	+42.72	+0.39
S&P BSE Bharat 22 Index	3,460.92	-10.20	-0.29

1:57 PM

S&P BSE Oil & Gas index down due to rise in crude oil prices

1:50 PM

India's top hedge fund turns to state-run banks as bad loans wane

 

India’s top hedge fund is exploring opportunities in state-run banks, a sector shunned by most investors till now, as valuations turn attractive and the backlog of bad loans that have riddled lenders start to dwindle. State-run banks will also benefit if the economy continues to grow at about 7 per cent, Andrew Holland, chief executive of Avendus Capital Public Markets Alternate Strategies LLP, said at the Reuters Global Investment 2019 Outlook Summit. Read more

1:39 PM

S&P BSE Telecom index up over 4%, Vodafone Idea rallies 14%

1:32 PM

ICICI Bank, L&T, SBI, Axis Bank gain over 15% in Sensex's 2000-point rally

Shares of ICICI Bank, Larsen & Toubro (L&T), State Bank of India (SBI) and Axis Bank were among the S&P BSE Sensex index stocks, rising over 15% during benchmark index's over 2,000-point rally in three weeks. READ MORE

1:17 PM

Sebi asks listed firms to reveal commodity risks, hedging in annual report

Market regulator Securities and Exchange Board of India has asked all listed companies to disclose their commodity risk and hedging in their annual reports. The move is expected to improve risk management by companies and make their positions transparent as far as outstanding risks are concerned. It will also help all commodity derivatives to improve depth and width apart from generating liquidity. READ MORE

1:02 PM

Divi's Labs hits new high; soars 26% in three weeks on strong Q2 results

 

Shares of Divi’s Laboratories hit a new high of Rs 1,574 per share, up 3% in intra-day trade on the BSE, extending their rally in the past three weeks, after the pharmaceutical company reported a healthy 92% year-on-year (Y-o-Y) jump in its net profit at Rs 3.98 billion in the September quarter (Q2FY19). It had a profit of Rs 2.07 billion in the year-ago quarter. The company’s revenue from operations during the quarter grew 45% at Rs 12.85 billion against Rs 8.88 billion in the corresponding quarter of previous fiscal. Read more

12:37 PM

Top gainers in BSE 500

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
SREI INFRA. FIN.	38.70	3.90	11.21	1490548
SWAN ENERGY	112.00	11.05	10.95	86511
VENKY'S (INDIA)	2465.70	202.20	8.93	42286
GATEWAY DISTR.	168.25	10.40	6.59	14455
JET AIRWAYS	341.65	20.70	6.45	6842177

12:29 PM

MARKET COMMENT Gautam Chhaochharia, head of India research, UBS Securities

Markets have de-rated from 19x one-year forward PE to 16x – perhaps the above bearish sentiment suggests a potential bottoming out? In our view, one of the major factors behind the fall in markets (recent liquidity squeeze) would not turn into a prolonged credit crunch (link) although we believe the easy money seen over the past three to four years is behind us.

The worst of INR depreciation against GEM currencies may be behind us too. However, two key risks remain for the markets, in our view: 1) whether Modi will win in 2019 (link); and 2) retail flows (link). H2FY19 growth may also not enthuse markets, as the base effect wears off and the impact of tight liquidity is felt. Our Nifty scenarios (link) – base case of 9,500 for Mar-19 and upside/downside scenarios of 11,100/8,300 – imply unattractive risk-reward

(Source: UBS report)

GAUTAM CHHAOCHHARIA

12:19 PM

Market share loss fears priced in for Max Financial, stock falls over 35%

 

The lack of its own banking distribution channel has weighed on Max Financial Services’ (Max) stock price, amidst fears of market share loss. Firstly, since its merger with HDFC Life Insurance was called off (July last year), the stock has fallen over 35 per cent on worries that growth may slow down. Secondly, uncertainty regarding the continuation of distribution tie-up with Axis Bank after FY21 too kept valuation (price to embedded value) around 50 per cent below the industry average of close to three times, on growth worries. Read more

12:09 PM

Antique Stock Broking on Thermax

Despite weak operating performance, sharp jump in other income (up 51%) and lower interest expense (down 24%) aided PAT growth at 31% YoY to INR 745mn, ahead of our estimate. With significant capex broadly over, the company is looking at uptick in the business along with improving profitability. It has already seen selective green shoots. However, given the near-term challenges, including macro challenges, we continue to remain neutral on the stock and maintain HOLD rating with a revised target price of Rs 960 (Rs 1,015 earlier), based on 25x its revised FY20E earnings.

12:08 PM

MARKET COMMENT

The recent steep decline in crude oil prices is a big positive for India’s macroeconomic position assuming oil prices stay at current levels. Also, 2QFY19 results provided more evidence about earnings recovery with net profits of the Nifty-50 Index growing 10% yoy, 4% above our estimates. However, valuations are full for the broader market and the Indian stock market faces domestic (upcoming state elections) and global (tighter global monetary conditions and China slowdown) headwinds

The Indian market valuations are still on the higher side relative to history and bond yields despite the correction over the past few months. Also, the valuations already factor in 15% and 26% growth in net profits of the Nifty-50 Index for FY2019 and FY2020. We find decent value in a few sectors and stocks in financials, energy, metals & mining and power utilities but do not find value in the ‘quality’ stocks. Also, it remains to be seen if their high multiples will hold up in the event of tighter global monetary conditions and higher bond yields

(Source: Kotak Securities)

11:58 AM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,432.41	+171.87	+0.49
S&P BSE SENSEX 50	11,147.22	+55.43	+0.50
S&P BSE SENSEX Next 50	32,059.61	-83.63	-0.26
S&P BSE 100	10,929.81	+42.06	+0.39
S&P BSE Bharat 22 Index	3,462.03	-9.09	-0.26

11:51 AM

Sundaram MF starts filling product gaps; launches equity savings fund

 

Sundaram MF on Thursday announced the launch of new fund offer (NFO) -- Sundaram Equity Savings Fund. This will be an open-ended scheme that will invest in a mix of equity, debt and arbitrage. Sunil Subramaniam, managing director of Sundaram MF, expressed that with upfront commission recently getting scrapped, the NFO collection may be limited. Read more

11:25 AM

Motilal Oswal on United Breweries

 

CMP: Rs 1,311 

TP: Rs 1,520 

RATING: Buy

 

The better-than-expected performance prompts us to raise our FY19/20 EPS estimate by 14.7%/7.8%. Long-term volume and earnings growth opportunity (FY18 PAT at USD 55m) is immense for India’s largest beer player with strong barriers to entry in the form of distribution, brewery reach, scale and brands. Operating environment appears to be improving at a healthy pace, market share gains continue and profitability is increasing (indicating continuing strong pace of earnings growth). The anti-trust issue, however, will remain an overhang, leading us to now value UBBL in line with peer multiples (instead of 10% premium earlier). Valuing UBBL at 27x Sep’20E EV/EBITDA, we arrive at a target price of INR1,520. Maintain Buy.

11:21 AM

S&P BSE Sensex top gainers and losers

11:04 AM

Shankara Building slips on weak Q2 nos; down 64% from 52-week high

 

Shares of Shankara Building Products hit a 52-week low of Rs 858, down 4%, extending their past four days decline in otherwise firm market after the company reported a weak set of numbers for the quarter ended September 2018 (Q2FY19). In the past one week, the stock has underperformed the market by falling 17%, as compared to 1% rise in the S&P BSE Sensex. Read more

10:50 AM

NEWS ALERT RIL's m-cap surges past TCS'; stock trades at Rs 1,122.30, up over 2% 

10:46 AM

Prabhudas Lilladher Motherson Sumi Systems

 

Rating: ACCUMULATE 

CMP: Rs 144

TP: Rs 179

 

Motherson Sumi Systems’ (MSS) Q2FY19 performance missed our estimates, particularly on account of weak operating performance by its key subsidiary, SMP, owing to temporary demand issues in Germany along with higher start- up costs for the new plants. Given that all the major capex for all new major facilities for SMR & SMP are behind us, MSS remains on track over its long- term 3CX15 for FY20E to attain USD 18bn revenue in addition to the standard RoCE expectation of 40% and a dividend payout ratio of 40%. Given the company’s track record in terms of accomplishing its published targets, revenue targets seem plausible. We marginally tweak our margins downwards, given higher ramp-up costs associated with the new plants at SMP and arrive at a target price of Rs 179 (earlier Rs 232), based upon 20x (earlier 24x) Mar’20E EPS. At current market price, the stock trades at 25.5x FY19E & 16.8x FY20E Consol EPS.

10:34 AM

Anand Rathi on Apollo Tyres

We expect revenue to clock a 19% CAGR over FY18-20 to Rs 211bn and expect a 12.5% margin in FY20. Accordingly, we expect earnings of Rs 12.22bn, leading to an EPS of Rs 21.2. We maintain our Buy rating, at a target price of Rs 299 (14x FY20e EPS). The stock is trading at a historical mean multiple of around 10x and we believe it should quote higher given the better prospects in its India business as well as in Europe. Risk: Higher rubber costs

10:31 AM

Street wary of Grasim's investment in arms despite good standalone Q2 show

Despite clocking strong growth in revenue and operating profit on a standalone basis for the September 2018 quarter (Q2), Grasim reported a net loss due to one–offs or exceptional items. The Q2 results were declared post market hours on Wednesday.

 

But, the bigger concern pertains to Grasim's rising investment in its group companies. READ MORE