MARKET WRAP: Sensex gains 71 pts, Nifty above 11,450; India VIX jumps 7%

All that happened in markets today.

3:57 PM

Market comment by Vinod Nair, Geojit Financial Services

Market failed to hold the opening momentum as profit booking emerged after the recent sharp rally. Liquidity situation in the market is improving and Indian rupee continued to gain strength over dollar while domestic 10-yr yield slid. Auto index dragged the most due to mixed demand and higher inventory levels. On the other hand, investors are awaiting FED policy later in the week to get more cues about global market movement.

3:40 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 added 71 points or 0.19 per cent to settle at 38,095 while the NSE's Nifty50 index ended at 11,462, up 35 points or 0.31 per cent. 

3:09 PM

NEWS ALERT

NCLAT grants conditional nod to ArcelorMittal's Rs 42,000 cr bid for Essar Steel, directs ArcelorMittal to deposit the amount with the Committee of Creditors (CoC)

3:00 PM

Rupee at over seven-month high of 68.65; further gains likely

Investors are bullish on the Indian rupee for the first time in nearly a year, a Reuters poll showed last week, as a recent surge in popularity of the country's ruling party is expected to bode well for its alliance in the upcoming national elections. READ MORE

2:47 PM

Top losers on BSE500

COMPANY	PRICE(rs)	CHG(rs)	CHG(%)	VOLUME
REL. COMM.	4.02	-0.39	-8.84	8809691
GAYATRI PROJECTS	151.40	-9.30	-5.79	8928
MANPASAND BEVER.	111.90	-6.65	-5.61	68758
STERLITE TECH.	218.70	-12.55	-5.43	736679
INDIABULLS INTEG	306.45	-16.10	-4.99	9538

2:41 PM

Anand Rathi on Star Cement

Its strong, ~22%, market share in its key, high-realisation, north-east region, along withgood demand, would continue to drive Star Cement’s performance, though profitability has suffered due tohigher costs. However, cost-rationalisation measures, receiving subsidies, the de-bottlenecking exercise and coming expansions on the increase in infrastructure spending in the north-east would add to benefits for the company. We are upbeat about its prospects and retain our Buy rating on the stock, with a target of Rs 130.

2:37 PM

Godfrey Phillips India gains over 4%

2:26 PM

Hedgers line up to gain from crash in forwards after RBI's swap facility

Importers and foreign currency loan borrowers have increased their hedging, taking advantage of the crash in forward premium after the Reserve Bank of India (RBI) offered $5-billion swap facility with banks, according to currency dealers. The one-year forward premium for dollar-rupee was 4.11 per cent a month back, and 4.05 per cent a week back, but is now at 3.57 per cent. READ MORE

2:16 PM

Heatmap: S&P BSE Sensex

2:15 PM

NEWS ALERT | Bharat Dynamics declares interim dividend of Rs 5.25 per share

2:05 PM

Reliance Securities bets on Persistent Systems

We believe Persistent’s long-term business direction remains on track, with focus on three key verticals - Healthcare, BFSI and MFG through 4 major services including Data, Artificial Intelligence (AI) & Machine Learning (ML), Cloud, Security and Internet of Things (IoT). We are enthused with renewed focus on specific growth areas and verticals, and upcoming appointment of new MD, which could be a key stock driver.  We have a BUY recommendation on the stock with a Target Price of Rs 745.

2:05 PM

Reliance Securities on Gail

The stock trades at 6.0x on FY20E EBITDA, which is discount to its long term average of 8.4x (over last 5 years).We arrived at an SOTP-based Target Price of Rs388. We valued GAIL’s segments using DCF, implied EV/EBITDA multiple to its gas transmission/LPG transmission/gas trading/Petrochemical/LPG & OLHC segments at 6.1x/5.9x/4.7x/7.5x/6.9x.  We expect GAIL to witness a strong FCF generation of Rs80bn over FY19-FY21. Hence, the stock offers high earnings visibility and healthy RoE/RoCE of 13%/9% over the next 3 years.

2:04 PM

Nirmal bang on TCS

After meeting the management, we have revised upwards our revenue estimates for FY20/FY21, but would like to highlight the no-growth-year-for-industry-in-FY21 call. We retain our Sell rating on TCS with a March 2020 target price of Rs1,607 (at a target P/E of 16.5x March 2020E EPS, -1SD over the mean P/E multiple for the past five years).

This target P/E multiple (highest in our coverage universe) is reflective of the strong position that TCS holds in the Indian IT service landscape by way of: (1) Its breadth in terms of service lines, geographies and verticals. (2) Ability to stitch together integrated offerings. (3) Significant lead in automation skills which will stand it in good stead in a likely slowdown that we are expecting in 2020. While it is an ‘absolute’ Sell, on a relative basis we prefer TCS (along with HCL Technologies and Infosys) within our coverage universe over the next 24 months as we believe it will be a beneficiary of vendor consolidation.

2:03 PM

Phillip Capital on Lupin

Factoring the warning letter in its Goa and Pithampur Units coupled with ongoing intense generic competition in the US market, we estimates muted growth of 3%/8%/9% in LPC’s US sales/consolidated sales/profit over FY18-21E. Our estimates could be at risk given the OAI for two more plants (Somerset and Mandideeep unit-1). We believe gRanexa and Levothyroxine to provide the most needed support to its US generics business temporarily but there are no great visible product opportunities in the near future. 

Given the moderated visible growth in US and regulatory as well profitability challenge, we maintain our concerns over its earnings growth. In addition to growth concerns, rising material costs, increasing R&D spend, building up of specialty sales force, and weak revenue mix will certainly hurt operating efficiency.

2:02 PM

MUST READ :: Embassy Office Parks REIT IPO opens today: Should you invest?

Bengaluru-based Embassy Property Developments Pvt Ltd, plans to raise Rs 4,750 crore from initial public offering (IPO) that opens today (March 18). The price band for the Embassy Office Parks REIT IPO is Rs 299-300 apiece.

 

The interest range for the issue could also widen to 9.5 – 9.75 per cent as the final pricing is yet to be fixed, reports suggest. On Friday, Embassy Office Parks Reit allotted units worth Rs 1,743 crore to anchor investors. The trust’s portfolio comprises about 33 million square feet of office space across four Indian cities, Bengaluru, Pune, Mumbai and Noida. READ MORE HERE

1:59 PM

Jefferies maintains BUY rating on L&T

Since January 2019, there have been media reports of a possible MindTree takeover by L&T InfoTech. However, according to recent media reports, L&T has been speculated to be the acquirer. We will be surprised if L&T is the entity involved vs L&T InfoTech, as it is not core for L&T operations. From a consolidated B/S and P&L perspective impact, it is negligible for L&T. It might lead to near-term pressure until core fundamentals become the focus again.

1:56 PM

Franklin India Credit Risk Fund: Ahead of peers on the returns front

Launched in December 2011 as Franklin India Corporate Bond Opportunities Fund, the scheme was renamed Franklin India Credit Risk Fund in June 2018 and repositioned as a credit risk fund after the reclassification and rationalisation of mutual fund schemes by the Securities and Exchange Board of India (Sebi). READ MORE

1:45 PM

Sectoral trends on NSE

1:32 PM

Stocks that hit 52-week high on BSE500

COMPANY	PRICE(rs)	52 WK HIGH	CHG(rs)	CHG(%)
AXIS BANK	744.05	753.90	8.35	1.13
GODFREY PHILLIPS	1118.00	1122.05	38.35	3.55
HDFC BANK	2258.00	2290.90	6.50	0.29
ICICI BANK	396.00	399.80	0.30	0.08
IDFC FIRST BANK	52.25	52.85	0.15	0.29

1:25 PM

NEWS ALERT | SBI board to meet on March 22 to consider raising equity capital of up to Rs 20,000 cr from market

1:14 PM

Reliance Communications is trading 8% lower

1:04 PM

Bharti Infratel trades firm after block deals

Shares of Bharti Infratel were trading firm, up 1 per cent, at Rs 318 in intra-day trade on the BSE after nearly one per cent of the total equity of the company changed hands via block deals. READ MORE

12:52 PM

NIIF yet to take a call on investment in cash-strapped Jet Airways

While lenders to Jet Airways are looking for a faster resolution to the crisis, the National Investment and Infrastructure Fund (NIIF) is yet to decide if it will invest in the distressed carrier. Sources said the board of the sovereign fund held two meetings over investment but did not approve any plan. “The board meetings were inconclusive. READ MORE

12:40 PM

Telecom's weak performance

COMPANY	LATEST(rs)	CHG(rs)	CHG(%)	VOLUME
REL. COMM.	4.07	-0.34	-7.71	6211434
VODAFONE IDEA	32.85	-1.00	-2.95	1090189
BHARTI AIRTEL	335.25	-1.75	-0.52	98238
TATA COMM	605.40	-3.20	-0.53	11664
TEJAS NETWORKS	174.95	-2.70	-1.52	1080

12:31 PM

SPML Infra gains over 16% on bagging orders worth over Rs 883 cr

12:21 PM

PVR hits new high of Rs 1,686; stock up 17% in one month

Shares of multiplex chain PVR hit a new high of Rs 1,686, up 3 per cent, on the BSE on the expectation of healthy earnings growth in the March quarter. The stock has outperformed the market by gaining 17 per cent in the past one month, as compared to a 7 per cent rise in the S&P BSE Sensex. READ MORE

12:11 PM

Market check

12:01 PM

SBI, Bank of Baroda, PNB: Here's how you can make money in PSU bank stocks

The benchmark indices witnessed a sharp rally, rising over 3 per cent in the last week. The S&P BSE Sensex rose 1353 points, or 3.65 per cent, to close at 38,024, hile the Nifty50 rose 391 points, or 3.54 per cent, to end at 11,246. READ MORE