MARKETS WRAP: Sensex snaps 3-day gaining streak, slips 194 pts; banks weigh

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3:43 PM

MARKET SUMMARY | Umesh Mehta, Head of Research, SAMCO Securities

Market is falling on its own weight given that there are no triggers for the markets to get any direction. Now, valuation is weighing on the bourses. Nifty50 is trading at a P/E multiple 29x which is highest in decades. Statistically, this high valuation sustains for less than 5% of the time in a bull cycle. FIIs too have scaled down their purchases after a euphoric Modi Government win. All these factors along with negative international news took the bourses down and across-the-board selling was witnessed in the market. A post-election victory range of 11,600-11,400 looks reasonable in reality for Nifty.

3:38 PM

Sectoral gainers and losers on NSE

3:38 PM

MARKET COMMENT :: Umesh Mehta, head of research, Samco Securities

Market is falling on its own weight given that there are no triggers, news for the markets to get any direction and therefore now valuation is what is weighing the bourses. Nifty50 is trading at a P/E multiple 29x which is highest in decades. Statistically, this high valuation sustains for less than 5% of the time in a bull cycle.

FIIs, too, have scaled down their purchases after a euphoric 'Modi-win' in the general election. All these factors along with negative international news took the bourses down and across the board selling was witnessed in the market. A post-election range of 11,600-11,400 looks reasonable in reality for Nifty

3:38 PM

Top gainers and losers on S&P BSE Sensex

3:36 PM

MARKETS AT CLOSE

The S&P BSE Sensex ended 194 points or 0.48 per cent lower at 39,757 while the broader Nifty50 index lost 59 points or 0.50 per cent to settle at 11,906. 

3:22 PM

Lakshmi Vilas, J&K Bank trade weak for second straight day; fall over 10%

J&K Bank slipped 13 per cent to Rs 42.30, plunging 29 per cent in three trading days, after the Anti-Corruption Bureau (ACB) alleged Parvez Ahmed, now-removed chairman-cum-managing director, of indulging in unlawful activities. CLICK HERE TO READ FULL REPORT

3:19 PM

Lakshmi Vilas, J&K Bank trade weak for second straight day; fall over 10%

Shares of Lakshmi Vilas Bank and Jammu & Kashmir (J&K) Bank were under pressure for the second straight day on Wednesday, falling by up to 13 per cent on the BSE, on the back of negative news flow.

 

J&K Bank slipped 13 per cent to Rs 42.30, plunging 29 per cent in three trading days, after the Anti-Corruption Bureau (ACB) alleged Parvez Ahmed, now-removed chairman-cum-managing director, of indulging in unlawful activities. READ MORE

3:01 PM

NEWS ALERT | UK High Court denies bail to Nirav Modi

2:56 PM

Neogen Chemicals hits highest level since listing; surges 31% in one month

Shares of newly-listed Neogen Chemicals hit a new high of Rs 337, up 10 per cent on the BSE in an otherwise weak market on Wednesday.

 

The stock, which got listed on the bourses on May 8, 2019, has rallied 57 per cent against its issue price of Rs 215 per share. In the past one-month, the scrip rallied 31 per cent, as compared to a 7 per cent rise in the S&P BSE Sensex. READ MORE

2:51 PM

NEWS ALERT | Bimal Jalan panel expected to finalise RBI capital framework report by the end of this month: CNBC TV18

2:46 PM

J&K Bank continues slide

2:39 PM

MARKET OUTLOOK | Sahaj Agrawal, Head of Derivatives, Kotak Securities

Nifty continues to consolidate in the range of 11,700-12,100. We expect the same to continue for the next few sessions. Trend support for the index is seen at 11,700; if the same is held, we expect a breakout of the mentioned trading range. If 11,700 is broken, significant selling pressure is expected. Broader market health weakened in the last week and we are yet to get a reversal confirmation on the same.

2:37 PM

Most active stocks in terms of volume

COMPANY	PRICE(rs)	CHG(rs)	CHG(%)	VOLUME
REL. COMM.	1.62	-0.05	-2.99	9165492
RELIANCE POWER	6.07	0.12	2.02	5432775
PC JEWELLER	61.85	-0.15	-0.24	3858551
YES BANK	134.90	-4.40	-3.16	3683675
SUZLON ENERGY	4.62	-0.16	-3.35	3110675

2:28 PM

NEWS ALERT | IDBI Bank cuts 1-3-year MCLR by 5-10 bps with immediate effect

2:26 PM

Why the buoyancy in g-Sec markets augurs well for public sector banks

Though the markets are worried about the banks’ inability to fully transmit the rate cuts, the latter is likely to boost earnings of public-sector banks (PSBs) with lower government bond (g-Sec) yields. Rate cuts in the last three consecutive monetary policy meetings and accommodative stance by the Reserve Bank of India in the recent policy announced on June 6 have cheered the g-Sec markets.

Yields on 10-year g-Sec have dropped by 35 basis points since March 2019 levels to 7 per cent currently. Yields are inversely related to bond prices, thus, lower yields indicate improvement in bond prices and PSBs are major investors in the g-Sec markets. READ MORE

2:12 PM

NEWS ALERT | Will hear PIL alleging fund siphoning by Indiabulls Housing Fin in July: Supreme Court

2:01 PM

NEWS ALERT | Discussions held on funds needed, HR and staff requirement to resume operations

2:00 PM

NEWS ALERT | Officials from Etihad Airways, Hindujas likely present for the meeting: CNBC TV18

1:58 PM

NEWS ALERT | Jet Airways officials met bankers today: CNBC TV18

1:57 PM

L&T's open offer price at Rs 980/share fair: Mindtree independent directors

On June 7, the infrastructure major Larsen & Toubro announced a Rs 5,030-crore open offer to acquire an additional 31 per cent stake in mid-tier IT company Mindtree at a price of Rs 980 per share. L&T has so far acquired 28.90 per cent stake in Mindtree and the open offer, if fully subscribed, will take its shareholding in the IT company to about 60 per cent. CLICK TO READ FULL ARTICLE

1:54 PM

MARKET CHECK | Top losers on BSE at this hour

IBULISL	205.85	-22.85	-9.99
J&KBANK	43.95	-4.75	-9.75
IBULHSGFIN	616.10	-58.55	-8.68
JISLJALEQS	37.80	-3.00	-7.35
LAKSHVILAS	63.50	-4.70	-6.89

1:53 PM

NEWS ALERT | IndiGo launches maiden flight to China w.e.f. Sept 2019: CNBC-TV18

1:50 PM

AMFI's MF categorisation rejig: PNB, Embassy REIT may get large-cap berth

As mandated by market regulator Securities and Exchange Board of India (Sebi), the amended list of categorisation of large, mid-and small-caps will be released by AMFI by the first week of July 2019 and will be effective for the second half of calendar year 2019 (H2CY19). Mutual funds will have to re-align the schemes within one month. CLICK TO READ FULL ARTICLE

1:27 PM

Rupee check

Source: Bloomberg

1:25 PM

India well-placed to attract emerging market flows: Jonathan Garner

For India, we have recommended a 150 basis points-overweight stance (against the MSCI Emerging Market Index weights), which is our largest overweight alongside Brazil. While clients are overweight on India, their overweight is much lower than what it has been on an average over the last five years. CLICK HERE TO READ FULL INTERVIEW

Jonathan Garner

1:09 PM

AMFI's MF categorisation rejig: PNB, Embassy REIT may get large-cap berth

As mandated by market regulator Securities and Exchange Board of India (Sebi), the amended list of categorisation of large, mid-and small-caps will be released by AMFI by the first week of July 2019 and will be effective for the second half of calendar year 2019 (H2CY19). Mutual funds will have to re-align the schemes within one month. READ MORE

12:57 PM

NEWS ALERT | Suzlon Energy may sell 49% of O&M biz to Brookfield for Rs 30,000 cr: CNBC TV18

12:57 PM

ICICI Securities on Berger Paints

Buy Berger Paints in range of Rs 327-334

 

Target: Rs 390

 

Stop Loss: Rs 298

 

Time frame: Three months

 

Consumer discretionary stocks, especially from the paint space, have shown significant resilience in the recent market weakness. At the same time, weakening crude prices are likely to help the sector to continue its resilience in coming weeks. Berger Paint is trading in the vicinity of its life-time highs made in August 2018 while the midcap index is still down almost 18% from its highs. We believe the current outperformance may continue in the stock.

12:51 PM

IIFL on Dr Lal Path Labs

We downgrade Dr. Lal PathLabs (DLPL) to ADD from BUY, as we believe that a) the company will find it difficult to log overall patient volume Cagr of >15%, as its mature Delhi-NCR market is growing merely at a high single-digit rate, and b) ramp-up at the Kolkata Reference Lab (KRL) will only be gradual. Accordingly, we cut our volume growth for FY20/21ii, from 17% to 15%.

Changing business mix and limited price increases have also led to pressure on average realisations, which lead us to reduce our Ebitda margin estimates by 150-200bps. Although we downgrade FY20/21ii EPS by 7%/13%, DLPL remains our preferred pick in the Indian diagnostics space, driven by its high share of B2C sales and focussed efforts on brand building to drive organic growth.

12:50 PM

IIFL on Asian Paints

The tone of an uncertain demand outlook continued in Asian Paints’ (APNT) FY19 AR, despite sharp pickup in sales growth in the fiscal. APNT pointed to uncertainty around the election outcome, monsoons, early festive season and construction/auto recovery weighing on FY20.

APNT’s investments in accelerating the pace of new launches, reducing titanium dioxide consumption and use of technology to improve customer experience should support 18% FY19-22 EPS Cagr. This along with moderating capex (Rs14bn in FY19) would back 800bps RoIC expansion to 36%. Recent correction in crude prices and tailwinds from market share gains in distemper remain upside risks to our estimates. BUY.