MARKET WRAP: Sensex gains 127 pts, Nifty ends at 11,624 on last day of FY19

All that happened in markets today.

3:39 PM

Sectoral gainers and losers on NSE

3:39 PM

Top gainers and losers on S&P BSE Sensex

3:37 PM

MARKET AT CLOSE

The S&P BSE Sensex ended at 38,673, up 127 points or 0.33 per cent while the NSE's Nifty50 index ended at 11,624, up 54 points or 0.47 per cent.  

3:19 PM

Bajaj Finance, ICICI Bank, Ipca Labs, Varun Beverages hit record high

Among the individual stocks, Varun Beverages (VBL) surged 6 per cent to Rs 857, surpassing its previous high of Rs 849 touched on September 21, 2018, on the BSE in intra-day trade. READ MORE

3:06 PM

ICICI Direct on Wabco India

At this juncture, we maintain our estimates and expect sales & PAT to grow at a CAGR of 16.3% and 21.5%, respectively, in FY18-20E. We value Wabco at Rs 7,000 i.e. 33x P/E on FY20E EPS of Rs 212.3 per share and retain our HOLD rating on the stock. We draw comfort from debt free, cash surplus balance sheet at Wabco with healthy return ratios matrix (20 %+) and healthy cash flow generation.

2:52 PM

ALERT :: Embassy Office Parks REIT to list on Monday, April 01

2:48 PM

Kotak Securities on IT Services

Accenture (ACN) impressed with strong 9% c/c revenue growth, record bookings and further increase in FY2019 (August year-end) revenue growth guidance. Growth was skewed towards resources and communications verticals while financial services and heath & public services verticals underperformed. Read-through for other IT names—demand environment is reasonable even as there are rough edges visible in weak financial services growth.

2:34 PM

Heatmap: S&P BSE Sensex

2:23 PM

Sebi asks mutual funds to disclose details of promoter funding

In an e-mail sent to MFs, the regulator has asked MFs to disclose the details so that it can assess how large is the quantum of such exposures held by MFs to these structures, which have come under pressure due to sharp erosion in value of the promoter shares. READ MORE

2:10 PM

IDBI Bank rises 6%

2:03 PM

NEWS ALERT | Govt keeps small savings interest rate uncharged for Q1FY20: TV

2:00 PM

Market check

1:44 PM

Stocks that hit 52-week low on BSE500

COMPANY	PRICE(rs)	52 WK LOW	CHG(rs)	CHG(%)
CENTRUM CAPITAL	32.50	27.00	-0.10	-0.31
TVS SRICHAKRA	2229.25	2170.00	-0.90	-0.04

1:28 PM

Stocks that hit 52-week high on BSE500

COMPANY	PRICE(rs)	52 WK HIGH	CHG(rs)	CHG(%)
ASIAN PAINTS	1489.00	1507.95	-5.50	-0.37
BAJAJ FIN.	3008.00	3023.40	18.35	0.61
DCB BANK	204.95	208.50	0.00	0.00
FUTURE LIFESTYLE	487.15	499.90	1.65	0.34
GODFREY PHILLIPS	1162.90	1176.50	25.80	2.27

1:17 PM

Power Finance Corporation extends rally on acquisition of REC

Power Finance Corporation (PFC) shares hit a fresh 52-week high of Rs 124, up 6 per cent, on the BSE, after the company concluded the acquisition of Rural Electrification Corporation (REC) by paying Rs 14,500 crore to the Central government. PFC surpassed its previous high of Rs 123 recorded on March 19, 2019 in intra-day trade. READ MORE

1:03 PM

Sectoral trends on NSE

12:51 PM

DLF hits 6-month high on successful QIP issue; stock surges 25% in a month

DLF shares hit an over six-month high of Rs 207, up 6.5 per cent, on the BSE after the real estate developer successfully raised Rs 3,173 crore through qualified institutional placement (QIP). The stock was trading at its highest level since September 18, 2018. READ MORE

12:41 PM

Market share focus to weigh on Dabur India's near-term profitability

Dabur India’s (Dabur) focus on market share gains at a time when demand is slowing, coupled with last year’s high base, could weigh on its March 2019 quarter (Q4) profitability. Dabur CFO Lalit Malik says consumer sentiment is a down, and overall consumer demand (rural as well as urban) has slowed down in Q4. There is also marginal inflationary pressure. READ MORE

12:30 PM

Market check

12:19 PM

Oil prices set for biggest Q1 gain since 2009 on US sanctions, OPEC cuts

Oil prices rose on Friday, pushed up by ongoing supply cuts led by producer club OPEC and US sanctions against Iran and Venezuela, putting the crude markets on pace to post their biggest first quarter gain since 2009. READ MORE

12:01 PM

Top gainers on BSE at this hour

11:50 AM

Q4 should see the slowest earnings growth in FY19: Crisil to CNBC-TV18

11:49 AM

Revenue growth to halve in Q4: Crisil to CNBC-TV18

11:47 AM

NEWS ALERT | Big pressure points in Q4 will be auto and auto ancillary sectors: Crisil to CNBC-TV18

11:34 AM

MARKET COMMENT :: Chris Wood of CLSA

Tactically, GREED & fear would still give the benefit of the doubt to the resumption of the stock market rally in the US and a re-test of last year’s double top in the S&P500. That is despite the seemingly negative signal of last Friday’s inversion of the yield curve. The 10-year Treasury bond yield fell below the three-month T-bill yield last Friday for the first time since 2007 and is now 7bp below the three-month yield. The base case here remains that a Sino-US trade deal will be agreed and the positive news here is that the two sides continue to talk. GREED & fear also remains hopeful that a deal will lead to the dropping of existing tariffs.

(Source: Wood's weekly newsletter, GREED & fear)

Christopher Wood, Managing Director & Equity Strategist, CLSAChristopher Wood, Managing Director & Equity Strategist, CLSA

11:31 AM

CD Equisearch on Vanati Organics Limited (VOL)

The stock currently trades at 31.7x FY19e EPS of Rs 51.30 and 28.9x FY20e EPS of Rs 56.22. Going forward, positive outlook of the global speciality chemical industry, the rising demand for VOL’s key products owing to its diverse applications and the unveiling of new speciality chemical products would enable VOL to report revenue growth of over 40% in FY19 and 20% in FY20. Yet, delay in commercialisation of its product pipeline could hinder its growth trajectory.

VOL’s technical association with Institut Francais du Petrole (IFP), France, Saipem, Italy and National Chemical Laboratories (NCL), Pune assists it to maintain its market leadership and integrate its business model. Therefore, weighing odds, we advise buying the stock with a target of Rs 1799 (previous target: Rs 1209) based on 32x FY20e earnings over a period of 9-12 months

11:30 AM

Kotak Securities on banks

As per RBI’s latest release on system-wide average lending and deposit rates, fresh lending rates increased 15 bps MoM in January 2019 to 9.9% driven by 20 bps hike for private banks. Term deposits maintained a slow upward movement; weighted term deposit rates increased 5 bps MoM. The gap between outstanding loan and fresh loan rates decreased to 45 bps. As such, NIM compression is arrested and is expected to improve further going ahead.

11:29 AM

Elara capital on banks

We interacted with management of 10 banks (private, regional private & public sector) as well as industry veterans from South India to get a clearer view of the banking industry’s dynamics. Although banks are following different strategies, focus areas are external benchmarking of loans, constraints on term deposit mobilization, excess statutory liquidity ratio (SLR) securities with public sector banks (PSB) and credit expansion in retail segments on balance sheet-side. And, margin expansion in FY20 would be led by lower net slippages and interest reversals on the profitability front

11:29 AM

Reliance Securities on Orient Cement

We believe Orient Cement is currently in Catch-22 situation considering the urgency of capacity expansion and financial constraints, which could be similar with India Cements. Further, sustainability of recent price hikes in its key markets may improve its unitary EBITDA from Rs251 to Rs750-850 in ensuing quarters, which bodes well for higher cash flow.

Though the stock has witnessed a decent rebound after the price hike announcements in its key markets, valuations appears to be comfortable. However, ambiguity over capacity expansion will remain an overhang in the medium-term, in our view. We have no rating on the stock

11:28 AM

Reliance Securities on NBCC

We continue to view NBCC as a robust growth story owing to its PWO status and niche presence in redevelopment of government’s old colonies. Further, a debt-free balance-sheet and superior return ratios augur well for the Company. Therefore, we continue to believe that NBCC should trade at premium to its peers.

Stock has gained ~30% since our last update in Feb’19 post result. However, considering the ambiguity over the progress on redevelopment projects and overhang on Jaypee Infra deal there is no scope for further re-rating. Hence, considering limited upside hereon, we downgrade our recommendation on the stock to HOLD from BUY with an unrevised SOTP-based Target Price of Rs 62 (20x EPS FY21E).