MARKET WRAP: Sensex up 342 points, Nifty settles at 10,880 led by IT stocks

All that happened in markets on Monday

3:38 PM

Sectoral gainers and losers of the day

3:36 PM

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

3:34 PM

Market at close

The S&P BSE Sensex ended at 36,213, up 342 points or 0.95 per cent, while the broader Nifty50 index settled at 10,880, up 88 points or 0.81 per cent.

3:14 PM

Neuland Labs soars 54% in two weeks post December quarter results

Shares of Neuland Laboratories rallied 18 per cent to Rs 760 apiece on Monday, soaring 54 per cent in past two weeks on the BSE, after the company reported an over six-fold jump in net profit at Rs 4.6 crore in December 2018 quarter (Q3FY19). The pharmaceutical company had a profit of Rs 0.74 lakh in the year-ago quarter. In comparison, the S&P BSE Sensex was down 1 per cent during the same period. READ MORE

2:52 PM

SECTOR WATCH :: Emkay Global on FMCG companies

We continue to believe that consumer companies are poised to show improvement in earnings growth, going ahead. This will be led by a healthy volume growth and cost-control exercises initiated by companies. We believe that, during FY18-21e, consumer companies are to record double-digit growth in earnings. We maintain our positive stance on the sector. Our top picks within the sector are Marico, ITC and Asian Paints.

2:50 PM

ICICI Securities on LIC Housing Finance

LICHF’s core individual book has been witnessing a moderation in growth due to increasing competition. However, given the liquidity pressure faced by other HFCs, LICHF is poised to gain market share. As we remain slightly concerned on the home loan growth across industry we have factored 14.6% loan CAGR for LICHF. In the near term, rise in cost of funds is seen to impart pressure.

2:49 PM

Edelweiss on Adani Ports & SEZ

While we retain ‘BUY’ on the stock, we do see near-term pressure and overhang on the stock given the current market environment, which is sensitive to pledging, leveraging and related-party transactions. Our FY21E EPS could suffer potential downside of 2%. We remain confident on APSEZ’s long-term prospects given its strong positioning among shipping lines and strong cash flow from the existing ports business.

2:49 PM

Motilal Oswal Securities on Tech Mahindra

The stock has nearly doubled over the past 18 months led by strong margin execution, and we believe that further upside will be a function of continued acceleration in Communications vertical revenue. Near-term upside will be limited, given that there is still time for impetus from 5G to play out, and earnings growth should settle down after the margins’ run. Our TP of INR860 (15% upside) discounts forward earnings by 14.5x, the average multiple over the last five years. Maintain Buy.

2:37 PM

Top gainers and losers on S&P BSE Sensex

2:18 PM

GVK Power extends rally on stake hike in Mumbai Airport; up 61% in one week

Shares of GVK Power & Infrastructure rallied 16 per cent to Rs 8.59 apiece on the BSE in intra-day trade on Monday, after the company announced that GVK Airport Holdings will acquire an additional 13.5 per cent stake in Mumbai International Airport Ltd (MIAL) from South Africa's Bidvest Group for Rs 1,247.40 crore ($175 million). GVK Airport Holdings, a step down subsidiary of GVK Power & Infrastructure, has exercised its right, under “Right of First Refusal” in terms of the shareholders agreement dated 4th April 2006. READ MORE

2:18 PM

Stock impact

2:16 PM

NEWS ALERT | Mauritius arm of Thomas Cook to acquire 51% stake in DEI Holdings

2:02 PM

MARKET CHECK

1:55 PM

Top losers on BSE500

COMPANY	PRICE(rs)	CHG(rs)	CHG(%)	VOLUME
REL. COMM.	6.02	-0.52	-7.95	8607984
ADANI PORTS	328.30	-25.80	-7.29	882526
JP ASSOCIATES	5.91	-0.26	-4.21	2346165
MOTIL.OSWAL.FIN.	591.55	-20.75	-3.39	24233
GATEWAY DISTR.	108.05	-3.70	-3.31	1906

1:37 PM

NEWS ALERT | Mild el-nino conditions seen: agencies

1:35 PM

NEWS ALERT | Winter likely to extend till first week of March: agencies

1:32 PM

From the best to worst, India's stock market sets off alarm bells

Two months ago, it was Asia’s hottest stock market. Now, investors are shunning it. India has wiped out $113 billion in value this year after winning the regional equity crown in 2018. Uncertainty surrounding upcoming elections, an ongoing debt issue, a government that’s making greater demands on the central bank and high valuations have kept investors on the sidelines. READ MORE

1:18 PM

Motilal Oswal on Castrol India

CMP: Rs 154 

Target Price: Rs 215 

RATING: Buy

 

The stock trades at 21x CY20E EPS of Rs7.2. Castrol India's more than 80% payout policy, RoE/RoCE of nearly 60% and FCF to PAT conversion at around 75% reflect its superior balance sheet and high-quality cash flows, which warrant higher valuation multiples, in our view. To factor in intensifying competition and the threat to long-term growth/margins, we revise our CY20 P/E multiple to 30x EPS of 7.2 (applying nearly 50% premium v/s global peers). We arrive at a fair value of Rs 215, implying 39% upside. Maintain Buy.

1:12 PM

Top gainers on BSE500

COMPANY	PRICE(Rs)	CHG(rs)	CHG(%)	VOLUME
SWAN ENERGY	116.60	19.20	19.71	93991
TAKE SOLUTIONS	133.90	19.50	17.05	188198
CAPLIN POINT LAB	400.00	46.00	12.99	23955
MOTHERSON SUMI	157.70	14.85	10.40	1426523
MAGMA FINCORP	107.85	9.50	9.66	28946

12:59 PM

Sharda Motor up 16% ahead of board meet to consider demerger

Shares of Sharda Motor Industries (SMIL) moved higher by 16 per cent to Rs 1,429 apiece on the BSE in intra-day trade on Monday, ahead of the board meeting today to consider the matter of demerger of automobile seating business through scheme of arrangement. SMIL said that it has received information from the promoter(s) / director(s) of the company that they have entered into a Memorandum of Family Settlement (MOFS). READ MORE

12:36 PM

NEWS ALERT | GE T&D India awarded Rs 162 crore contract by Power Grid Corporation

12:27 PM

Devangshu Datta | Invest more as SIP closure ratio rises

In the last two fiscals, mutual funds have made a huge contribution to equity markets. The lion’s share of fund inflows has come from retail investors. As a result, lukewarm and negative foreign institutional investor (FII) contributions have been more than counter-balanced. In 2017-18, foreign portfolio investors (FPIs) put Rs 256.35 billion (bn) into equities. An impressive sum in itself. But it was less than half of the Rs 557.03 bn FPIs invested in 2016-17. In 2018-19 (April 2018-Feb 21, 2019), FPIs have pulled out Rs 489.11 bn. READ MORE

12:15 PM

India's debt-to-GDP ratio second-worst among emerging markets: Report

Government debt as a percentage of gross domestic product (GDP) for India is one of the highest among emerging markets (EMs), making the domestic economy vulnerable to foreign flows and global uncertainties. According to an analysis by Motilal Oswal, India’s government debt-to-GDP ratio is 68.4 per cent, second only to Brazil. Asian peers such as Indonesia, Thailand and China have much lower government debt-to-GDP. READ MORE

12:03 PM

MARKET CHECK

11:50 AM

More defaults on cards? Realty cash crunch threatens stressed shadow banks

India’s property developers are finding it hard to borrow money, raising the prospect of a wave of debt defaults from the sector hitting shadow lenders that are trying to survive a funding crunch of their own. Developers have to repay about Rs 1.29 trillion a year on outstanding debt but generate less than half the amount in income that can be used for repayments, according to an analysis of about 11,000 companies by research firm Liases Foras. Rolling over loans and tapping private-equity funds will be a struggle for all but the established names, like Oberoi Realty Ltd. and Godrej Properties Ltd., said Niraj Rathi, an analyst at India Ratings and Research. READ MORE

11:40 AM

Reliance Securities on Ambuja Cements

Ambuja Cements (ACL) surged nearly 1 per cent in last trade on the anticipation of likely improvement in margins, mainly, led by recent price improvement in the western region from the beginning of February 2019. ACL has strong presence in the Western and Northern markets with strong brand equity. Sustained demand in Northern and likely pick up demand momentum in the Western markets are expected to ensure better volume growth, going forward. We believe that recent spike in realisation in Western markets and spill-over favourable impact of reduction in fuel prices are likely to aid ACEM’s operational performance from the current quarter. Further, overhang of capacity constraint has also ease with the recent announcement of capacity expansion programme. We maintain our fundamental BUY rating on the stock with a Price Target of Rs 242. 

11:32 AM

Wipro sets March 7 as record date for 1:3 bonus; stock hits 19-year high

Shares of Wipro hit 19-year high of Rs 383.35 apiece, up 1 per cent on the BSE, after the company fixed March 7, 2019, as the record date to determine eligible shareholders entitled to receive the bonus equity shares. The stock of IT services firm was trading at its highest level since February 24, 2000, on the BSE.

The board of directors of Wipro at their meeting held on January 18, had recommended issue of bonus equity shares in the proportion of 1:3 (one equity share for every three equity shares held). READ MORE

11:22 AM

Top gainers and losers on S&P BSE Sensex

11:14 AM

Flow to Indian markets may be skewed later this year, says Jigar Shah

Foreign investors are concerned about a stable government at the Centre, control over twin deficits and continued reforms in the banking sector, says Jigar Shah, chief executive officer at Maybank Kim Eng Securities, in an interview with Puneet Wadhwa. Edited excerpts: What is your return expectations? Our Nifty50 target for 6–12 months is 10,500. In the event of an untested leader becoming prime minister (PM) with a thinly stitched coalition, the index could go as low as 9,200.

Jigar Shah

11:04 AM

MOFSL, IIFL fall as Sebi declares commodity arms unfit to undertake trading

Shares of Motilal Oswal Financial Services (MOFSL) and IIFL Holdings slipped as much as 5.11 per cent and 8.99 per cent, respectively in intra-day trade on BSE after the market regulator Securities and Exchange Board of India (Sebi) in an order on Friday declared that the commodity broking arms of Motilal Oswal and India Infoline (IIFL) are not ‘fit and proper’ to undertake commodities derivative trading, as part of an ongoing investigation into the NSEL case. The market regulator is probing a Rs 5,600 crore payment default which broke out at the spot commodity trading platform NSEL in 2013 in which broking firms like Motilal Oswal Commodities Broker are alleged to have involved in misselling of NSEL contracts without having underlying commodities in the warehouses. READ MORE