MARKET WRAP: Sensex loses 156 pts on weak global cues; Nifty ends at 10,738

The S&P BSE Sensex shed 156 points or 0.43 per cent to settle at 35,854 amid heavy selling in select blue-chip counters such as L&T, ICICI Bank, TCS and HDFC twins.

3:42 PM

Sectoral gainers and losers of the day

3:39 PM

Gainers and losers of the day on BSE Sensex

3:36 PM

Market at close

 

The S&P BSE Sensex ended at 35,854, down 156 points or 0.44 per cent, while the broader Nifty50 index settled at 10,738, down 57 points or 0.53 per cent.

3:23 PM

Bharti Airtel in talks to buy Telkom Kenya: sources

India's Bharti Airtel is in talks to buy Telkom Kenya, the East African nation's smallest telecoms operator, to create a stronger challenger to market leader Safaricom, three industry sources told Reuters on Monday.

 

London-based Helios Investment, which owns a 60 percent stake in Telkom, is looking to partly cash out of the investment which it entered in 2015, the sources said. READ MORE

3:20 PM

Jet Airways shares jump after report chairman likely to step down

Shares in India's Jet Airways jumped over 18 percent on Monday after a report that founder and chairman Naresh Goyal was likely to step down from the board of the embattled company and give up majority control.

 

CNBC TV18, citing sources, reported on Monday that Jet was likely to finalise a resolution plan with its lenders this week, and that Goyal would trim his 51 percent stake to 20-25 percent and agree to voting rights on his stake being capped at 10 percent, in a bid to save the debt-laden carrier. READ MORE

3:16 PM

Earnings growth may help Indian equities in 2019, say foreign brokerages

Valuations remain stretched for Indian equities but foreign brokerages are optimistic that improved macros and the pick-up in corporate earnings growth may help Indian equities to end the year with gains. The elections might bring in volatility but are unlikely to bring sharp swings in the long run.
Here are factors, they say, could impact Indian equities in 2019

3:05 PM

NEWS ALERT | Ravneet Gill in race for YES Bank as Rana Kapoor's successor, reports ET Now

2:56 PM

GAIL hits three-month low; stock down 5%

Shares of GAIL (India) hit a three-month low of Rs 322 apiece, down 5 per cent on the National Stock Exchange (NSE) on Monday on concerns of weak December quarter earnings. The stock was trading at its lowest level since October 5, 2018, when it touched a 52-week low of Rs 295 in the intra-day trade.

Since November 5, post-September quarter (Q2FY19) results, GAIL has underperformed the market by falling 12 per cent. In comparison, the Nifty 50 index was up 2 per cent during the same period. Read more

2:39 PM

Top gainers and losers on S&P BSE Sensex

2:30 PM

Eveready Industries extends rally on reports of promoter stake sale plan

Shares of Eveready Industries India rose 7 per cent to Rs 219 apiece, bouncing back 8 per cent from their early morning low on the BSE on Monday amid reports that BM Khaitan - led Williamson Magor has rolled out sale plan for flagship company, a leader in dry cell batteries and flashlights. Eveready Industries, however, did not confirm or deny the said media report. “The Company has always been updating the Exchanges regularly with all the events, information, etc. are required to be intimated under Regulations 30 of SEBI (LODR) Regulations, 2015 concerning the Company as may be reasonably required,” Eveready Industries said on clarification on news report on Saturday, January 12, 2019. Read more

2:17 PM

Brick & mortar retailers to get a 150-200 bps topline boost: CRISIL Ratings

 

Revenue growth of brick & mortar (B&M) retailers could increase 150-200 basis points (bps) in fiscal 2020, as e-retailers re-engineer business models to conform to the revised – and more stringent – regulations, which would slow down their revenue growth.

2:05 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,773.62	-236.22	-0.66
S&P BSE SENSEX 50	11,210.78	-81.36	-0.72
S&P BSE SENSEX Next 50	32,427.64	-198.65	-0.61
S&P BSE 100	11,001.76	-78.07	-0.70
S&P BSE Bharat 22 Index	3,435.47	-50.68	-1.45

1:54 PM

Slowing growth? RBI needs to lower its FY19 projection to 7%, says SBICap

The Reserve Bank of India needs to soften its economic growth narrative and lower its projections for the current fiscal year. That’s the view of Mumbai-based SBICap Securities Ltd. after data released Jan. 11 showed industrial production in November grew 0.5 per cent from a year ago, much lower than the expected 3.6 per cent. READ MORE

1:45 PM

Soon, listed firms may not get to have chairmen, MDs from the same family

The Securities and Exchange Board of India (Sebi) may not allow family members, close relatives or related parties of the chairman of a listed firm from becoming managing director (MD), and vice versa, according to a source privy to the development.

 

At present, several companies have merged the two posts as CMD (chairman-cum-managing director). READ MORE

1:34 PM

Top losers on BSE500

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
AVENUE SUPER.	1434.40	-134.55	-8.58	263213
V-MART RETAIL	2249.00	-112.35	-4.76	491
FEDERAL BANK	91.15	-4.25	-4.45	1314186
GAIL (INDIA)	324.25	-14.85	-4.38	235922
L&T FIN.HOLDINGS	135.70	-5.90	-4.17	470244

1:24 PM

Jet Airways resolution plan likely to be finalised after lenders’ meet this week. Naresh Goyal to step down from board; give up majority control, according to the CNBC TV18 report

1:21 PM

PSU bank stocks set for a jump in 2019 after a three-year gap: Analysts

The public sector bank (PSB) stocks seem to have started off the year on a positive note. The government’s commitment to infuse capital, a strong trend visible on bad loan recoveries and favourable bond market conditions place PSBs in a better position to expand their financials more meaningfully. In other words, analysts say 2019 may be a year of growth for a majority of state-owned banks, particularly for the larger ones. They believe that after being favoured purely for their relatively low valuations since 2015, the current year may pan out differently. Read more

1:16 PM

Motilal Oswal on Infosys

 

CMP: Rs 684 

TARGET PRICE: Rs 800  

RATING: Buy

 

Driven by INFO’s robust show on revenue growth, deal wins and upgraded guidance, we increase our FY19/20/21 revenue estimate by 0.6/1.1/2.0%. However, given the cost challenges, we trim our FY19/20/21 EBIT margin estimate by 42/62/44bp to 23.3/22.8/23%. Our earnings estimates are down by 0.3-1.6% as a consequence. INFO’s impressive catch up on revenue growth with industry leaders is encouraging, while challenges on the margins are secular. 3QFY19 performance will make a case for the narrowing of the valuation gap with leading peers such as TCS, in line with our thesis. Our price target of Rs 800 discounts forward earnings by 18x, implying a 17% upside. Maintain Buy.

12:59 PM

Web Exclusive Banking preview: Q3 could be a better quarter, asset quality to stay stable

The quarter gone by has been an eventful one for the financial services sector (BFSI). The sudden exit of the Reserve Bank of India (RBI) Governor, default by one of the largest corporate entities in India (IL&FS) bringing the eminence of the Lehman moment in the country, a subsequent sharp decline in bond yields and substantial rise in incremental capital infusion (recapitalisation of public sector banks), among other things, were important developments during the period. Read more

12:53 PM

Top gainers and losers on S&P BSE Sensex

12:37 PM

WPI inflation falls to 8-month low of 3.8% in Dec on easing food prices

Inflation based on wholesale prices fell to a 8-month low of 3.80 per cent in December, 2018, on softening prices of fuel and some food items. The Wholesale Price Index (WPI)-based inflation stood at 4.64 per cent in November, 2018, and 3.58 per cent in December 2017. READ MORE

12:22 PM

Devangshu Datta | Rely on auto sector

Sluggish car sales through the festive season were followed by flat sales in November and declines in December. Various reasons for the downturn have been cited, ranging from poor rural demand, to high fuel prices, to high equated monthly instalments. But there is consensus that the industry is facing “challenging” times.

 

Note that the base effects are hard to adjust for, because automobile manufacturers faced extreme sales volatility in 2017 due to the GST launch. The industry has a long value chain — probably the longest overall. READ MORE

12:11 PM

NEWS ALERT | December Food inflation comes at 0.07% Vs -1.96% (MoM)

12:10 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,715.62	-294.22	-0.82
S&P BSE SENSEX 50	11,195.63	-96.51	-0.85
S&P BSE SENSEX Next 50	32,385.49	-240.80	-0.74
S&P BSE 100	10,986.97	-92.86	-0.84
S&P BSE Bharat 22 Index	3,431.11	-55.04	-1.58

12:07 PM

NEWS ALERT | December WPI inflation at 8-month low

12:06 PM

NEWS ALERT | WPI inflation comes at 3.80% vs 4.64% in November  

11:48 AM

Federal Bank executive director Ganesh Sankaran resigns; stock falls 7%

Shares of Federal Bank fell 7 per cent to Rs 89 per share on the National Stock Exchange (NSE) in intra-day trade, after Ganesh Sankaran, the executive director of the bank, announced that he will step down with effect from February 15, 2019. The stock was the largest loser among the Nifty Bank index. “Ganesh Sankaran, executive director on the board of the Bank has informed of his desire to take up other opportunities in the financial services sector and thereby step down from the board of the Bank with effect from 15th February 2019,” Federal Bank said in a regulatory filing on Saturday, January 12, 2019. Read more

11:39 AM

Derivatives Trategy by ICICIdirect

 

Sell Nifty January 10,900 Call at Rs 72-77

 

Target Rs 5

 

Stop Loss Rs 140

 

Time frame: Till January expiry

 

Options build-up is gradually pointing towards a consolidation in the range of 10600-11000, with 11000 Call now commanding the highest option base and Put writers moving to lower strike of 10,600. Hence, we recommend selling Call option near the upper band of 10,900.

11:27 AM

Rupee to ride on the coattails of revival in EM pack

 

Flattening structure on US yield curve and recent indications of Fed tilting towards a relatively dovish side has reinvigorated various EM currencies Although, rupee ended 2018 lower by 10% against the greenback, there has been considerable stability in the currency for past few weeks. Moreover, INR is also deriving strength from lower trajectory of crude price, low inflation regime and softening of global sovereign yields. On broader numbers, India’s Central Statistics Office (CSO) project GDP for the current fiscal year to expand 7.2%, marginally lower than RBI and government estimates. CSO projections imply some degree of slowdown in the second half of this fiscal given the stress in the banking system and agricultural economy. The recent flow of macro numbers and new governor at RBI’s helm of affairs has reinforced the perception that central bank will soon revert to neutral stance when compared with the current stance of calibrated tightening.

11:25 AM

Infosys | Bites the bullet with margin hit: Elara Capital

 

Rating: Accumulate

Target Price: Rs 790

Upside: 16%

CMP: Rs 684 (as on 11 January 2019)

 

We change USD-INR assumptions to 70.1, 71.9 and 73.8 for FY19E, FY20E and FY21E, respectively (from 71.0, 74.3 and 75.5). We maintain our revenue estimates for FY19 and FY20, but reduce them by 0.8% for FY21E and lower EBITDA margin estimate by 94bp, 138bp and 63bp for FY19, FY20 and FY21, respectively. We arrive at a new TP of INR 790 from INR 850 based on 20x (unchanged) March 2020E P/E. We revise to Accumulate from Buy, due to lower EPS estimates with our revised USD-INR assumptions.