MARKET WRAP: Sensex declines 369 pts, Nifty ends at 10,662 as banks plunge

On NSE, the benchmark Nifty50 index slipped below 10,700 level to settle at 10,662 with 36 components ending in the red and 14 in the green.

3:56 PM

Sectoral gainers and losers on NSE

3:55 PM

S&P BSE Sensex: Top gainers and losers

3:38 PM

Market at close

The S&P BSE Sensex lost 369 points or 1.02 per cent to end at 35,657 while NSE's Nifty50 index dropped 119 points or 1.10 per cent to close at 10,662.

3:18 PM

Rabobank International on US Fed rate hike

We no longer expect any rate hike this year. The Fed’s patience suggests that they are aiming for a summer hike. However, recent movements in the yield curve confirm our view that we are getting closer to a recession. Therefore, we doubt that the economic data will be strong enough to build a case for a restart of the hiking cycle.

We expect the Fed to put a halt to balance sheet normalization in the second half of the year, once the case for a summer hike has collapsed. In 2020 we expect the Fed to start cutting rates, but probably too late to avert a recession during the course of the year.

3:11 PM

HDFC Securities on Mphasis

We maintain positive outlook on Mphasis based on growth acceleration in Direct Core (highest ever sequential growth) supported by strong new client addition (including Blackstone portfolio), strategic partnership with DXC driving growth with core system transformation and cloud migration projects (currently <10% share of the USD 3.5bn addressable spend) and no negative impact seen from Luxoft, and continued improvement in operating efficiencies (G&A, pyramid rationalisation, utilisation) to improve profitability.

2:51 PM

Emkay Global on PVR's Q3 results

This quarter's financial performance is not comparable with the preceding quarters due to the consolidation of SPI Cinemas. However, operating performance was marginally better than expected. Standalone footfalls growth of 22.4% yoy was ahead of our estimates. We have aligned our estimates with the recent reduction in GST for ticket sales, and we continue to believe that exhibitors will pass on the entire benefits to viewers before they start implementing price hikes. We maintain our Hold rating on rich valuations, with a revised target price of Rs1,637 (12x FY21E EV/EBITDA)

2:41 PM

PM Modi's record debt sales before polls to pressure Indian bonds

After posting the best quarter in four years, Indian bonds are pitted against a familiar foe: likely record debt sales by the government to finance populist measures before national elections due by May. Prime Minister Narendra Modi’s administration may announce Friday plans to borrow Rs 6.4 trillion ($90 billion) for the next fiscal year in its budget, according to the median estimate of 15 strategists in a Bloomberg News survey. That compares with a revised Rs 5.35 trillion for the current year CLICK FOR MORE

2:39 PM

RESULTS CORNER RBL Bank Q3 net up 36% at Rs 225 crore on better interest margins

Private sector lender RBL Bank’s net profit rose by 36 per cent at Rs 225.2 crore for the third quarter ended December 2018, on the back of improvement in interest margins and robust other income READ MORE HERE

2:36 PM

Wockhardt plunges post December quarter results announcement

2:04 PM

HEG nears 52-week low; stock tanks 18%; down 31% in three sessions

Shares of graphite electrode manufacturer HEG continue to trade under pressure, falling 18 per cent to Rs 2,244 on the BSE on back of heavy volumes. The stock is currently trading close to its 52-week low of Rs 2,214 touched February 2, 2018 in intra-day trade.
 

In past three days, HEG tanked 31 per cent from level of Rs 3,275, as compared to 1 per cent decline in the S&P BSE Sensex. The stock corrected 55 per cent from its all-time high price of Rs 4,950 on October 16, 2018 in intra-day deal READ MORE HERE

1:55 PM

Pharma, bank stocks plunge

1:53 PM

Key index levels

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	35611.15	36025.54	-414.39	-1.15
	14066.07	14260.83	-194.76	-1.37
	14407.68	14681.82	-274.14	-1.87
	13725.00	14000.20	-275.20	-1.97
	4113.71	4165.35	-51.64	-1.24

1:34 PM

Elara Capital on Maruti Suzuki India

We reiterate Buy with a new TP of INR 7,827 from INR 9,128 based on 23x ([from 25x] and at a 12% discount to the past three-year average as growth slows) weighted average FY20-21E P/E as we roll forward. Key risks remain sustained industry slowdown and market share loss in PV.

1:23 PM

HDFC Securities on M&M Financial Services

M&M Financial Services' (MMFS) impressive performance appears even better when viewed contextually: 

 

(1) Disbursal growth sustained (in fact jumped QoQ) while fuel prices increased and auto OEMs reported sluggish growth (indicating mkt share gains); and

(2) NIMs were sequentially flat while CoFs rose as liquidity tightened for NBFCs. 

 

MMFS’ strong 3Q performance, corroborated by our ground check reinforces our constructive thesis. Maintain BUY with an SOTP of Rs 498 (2.75x Dec-20 ABV of Rs 174.5 + Rs 18 for MIBL). Given the healthy business traction and better asset quality performance, the stock should be buoyant.

1:16 PM

Top gainers (BSE 500)

COMPANY	PRICE (Rs)	CHG (rs)	CHG (%)	VOLUME
ZEE ENTERTAINMEN	350.95	31.60	9.90	9761342
ESSEL PROPACK	106.25	8.15	8.31	65810
SUNDARAM CLAYTON	3051.25	130.50	4.47	1399
DLF	164.00	6.95	4.43	566496
REDINGTON INDIA	71.70	2.25	3.24	7601

1:14 PM

Equirus Securities on Havells India

Given the 3Q beat and an encouraging demand scenario for HAVL, we raise our sales/EBIDTA estimates by 3%/0% for FY19E and 4%/4% for FY20E. Further, on the back of a promising demand environment for HAVL and encouraging prospects for LLOYD, our target multiple stands revised from 36x to 40x, giving us a Mar’20 target price of Rs 668 (553 earlier) on TTM EPS. However, we believe that most of the positives are factored in and accordingly reiterate a REDUCE on the stock.

1:13 PM

Morgan Stanley on banking sector

The NPL cycle is coming to its conclusion and we expect a sharp decline in credit costs. At the same time, large banks are gaining market share in assets, which should help drive >20% CAGR in core PPoP. l Our top picks in India are ICICI Bank and HDFC Bank.

1:11 PM

INTERVIEW OF THE DAY Cutting India exposure due to poll-related noise: Ashmore Group's Jan Dehn

The Interim Budget and the outcome of the general election are the two big events that the markets will keep a tab on over the next six months. London–based JAN DEHN, global head of research, Ashmore Group, tells Puneet Wadhwa that the small- and mid-caps should be a good place to invest over the next few years, but only if the government does not mess up on the macro CLICK HERE FOR MORE

Ashmore Group's Jan Dehn

1:10 PM

Jet Airways seeks shareholder approval for converting debt into shares

At a shareholder meeting scheduled for Feb. 21, the airline will also seek approval for their lenders to appoint a nominee director to the board, the debt-laden company said. READ MORE

1:09 PM

ICICI Bank, PNB, SBI, Axis Bank: Key support, resistance and target levels

Nifty Bank slipped over one per cent on Monday, breaching the 26,800 level in intra-day deals. The index has formed a “rising channel pattern” and has broken the support of lower rising trend line at 26,950 READ MORE HERE

1:01 PM

From inventory losses to higher interest costs, analysts cautious on OMCs

Earlier in October 2018, as crude oil prices hit a nearly four-year-high, the government asked OMCs to bear a subsidy of Rs 1 per litre on auto fuels, leading to worries of a return to the subsidy-sharing mechanism. READ MORE

12:45 PM

ICICIdirect on PVR

We believe the multiplex industry is staring at strong growth in the medium term as some of the major issues of higher GST for tickets and public outcry on higher F&B prices seems to be behind now. Furthermore, PVR remains a key beneficiary of a flourishing multiplex business, which is one of the proxies on rising urban discretionary consumption spends. The SPI deal is also an opportune move to capture favourable movie-viewing footfalls of southern India. We now roll over our valuations to FY21 and upgrade to BUY. We value it at 12x FY21E EV/EBITDA and arriving at a target price of Rs 1,750.

12:36 PM

Web Exclusive: Interim Budget 2019: What's in store for investors, taxpayers, economy?

With barely a few days left for the NDA (National Democratic Alliance) government to present the Interim Budget 2019, most domestic and foreign brokerages expect the measures to have a populist undertone ahead of the general elections scheduled for April / May 2019.

 

From doling out sops for the farm sector and providing some relief to the individual income-tax payers, here’s what leading brokerages expect. READ MORE

12:21 PM

M&M, Hero MotoCorp, Maruti, Adani Ports and JSW Steel hit 52-week low

Shares of three automobile companies – Mahindra & Mahindra (M&M), Hero MotoCorp and Maruti Suzuki India – along with Adani Ports and Special Economic Zone and nine stocks from the Nifty 50 index Cipla, Coal India, Grasim Industries, JSW Steel and Tata Steel hit their respective 52-week lows on Monday.

Reliance Capital, Reliance Home Finance and Reliance Infrastructure from Anil Ambani-led Reliance Group were among 70 stocks from the Nifty 500 index that touched 52-week lows. READ MORE

12:03 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,759.43	-266.11	-0.74
S&P BSE SENSEX 50	11,187.55	-91.27	-0.81
S&P BSE SENSEX Next 50	31,176.42	-453.66	-1.43
S&P BSE 100	10,921.60	-98.88	-0.90
S&P BSE Bharat 22 Index	3,331.09	-19.75	-0.59

11:48 AM

PhilipCapital on Larsen & Toubro

L&T managed the liquidity crisis in 3Q without compromising on execution. Even as new orders declined yoy but they were still higher than consensus estimates as the surprise came from unreported orders. With a decent pipeline in 4Q, L&T should be able to see through the period of uncertainty around elections. We maintain our Buy rating on L&T as we believe (1) incrementally, the environment for execution has improved and L&T’s strong order book (2.7x TTM sales) and controlled working capital allow it headroom to push for execution; and (2) we expect L&T to gain market share as complexity of projects increase over next three years coupled with pickup in ordering from the Middle East could offset the temporary slowdown in domestic orders.

 

11:36 AM

Top gainers and losers on S&P BSE Sensex

11:31 AM

Dish TV India hits 10-year low; stock tanks 43% in two sessions

Shares of Dish TV India hit a 10-year low of Rs 19.10 apiece, down 15 per cent on the National Stock Exchange (NSE) in the intra-day trade on Monday, despite clarification that the company had no dealings whatsoever with Nityank Infrapower and Multiventures Ltd, as per the media reports. Read more

11:14 AM

ICICIdirect on Maruti Suzuki India (MSIL)

We expect volume growth to be muted at MSIL with FY18-20E overall volume CAGR growth pegged at 6.7%. Consequent net sales & PAT CAGR is expected at 8.0% & 5.5%, respectively. We value MSIL at | 6000 i.e. 21x P/E on FY20E EPS of | 284 and maintain our HOLD rating on the stock. We draw comfort from healthy cash flow generation at MSIL with average CFO yield at ~6% and consequent FCF yield at ~4%.

11:04 AM

Subhash Chandra's Essel Group, lenders reach agreement over debt servicing

The Subhash Chandra-led Essel Group on Sunday said it had reached an agreement with lenders on servicing its debt. The move came following fears of a likely invocation of pledged shares by lenders on Monday after a steep fall in the stock price of Zee Entertainment Enterprises and DishTV, both key firms of the Essel Group, on Friday. The agreement includes lenders, comprising banks, mutual funds, and NBFC firms, not invoking their pledge on promoter shares of ZEEL, DishTV, and other listed group firms, which had been pledged for the loans promoters had taken for their privately owned infrastructure firms. READ MORE