MARKET WRAP: Sensex settles 158 points lower at 35,876; YES Bank surges 32%

All that happened in markets today

3:37 PM

Sectoral gainers and losers of the day on NSE

3:36 PM

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

3:35 PM

Market at close

The S&P BSE Sensex ended at 35,158, down 158 points or 0.44 per cent, while the broader Nifty50 index settled at 10,746, down 48 points or 0.44 per cent.

3:22 PM

EARNINGS IMPACT

3:18 PM

NEWS ALERT

Ashok Leyland Q3 net profit at Rs 380.84 crores vs 484.86 crores year ago

3:02 PM

Why PNB's stock may not regain Street's confidence anytime soon

The December quarter (Q3) was a mixed bag for Punjab National Bank (PNB). The good news from the scam-hit public sector bank is that the impact of last year’s Nirav Modi fraud is fully captured. So, fresh pain from the incident is unlikely to arise.

 

Moreover, the bank has returned to its profit making ways after three quarters of losses. Improvement in headline asset quality numbers is another positive takeaway. READ MORE

2:48 PM

Reliance Securities on NCC

RATING: BUY

CMP: Rs 84

Target Price: Rs 165

 

Deterioration in working capital cycle – mainly led by higher working capital requirement due to mobilisation advances to sub-contractors for new projects – was a prime concern for NJCC. We expect its working capital requirement to remain high considering robust order book. Thus, marginally tweaking our one year EV/EBITDA target multiple to 7.5x (from 8x earlier), we maintain our BUY recommendation on the stock with a revised SOTP-based Target Price of Rs 165.

2:38 PM

Top losers on BSE500

COMPANY	PRICE(rs)	CHG(rs)	CHG(%)	VOLUME
ORACLE FIN.SERV.	3564.55	-254.25	-6.66	14118
RAIN INDUSTRIES	94.45	-6.15	-6.11	251789
NBCC	48.45	-3.10	-6.01	1820418
TAKE SOLUTIONS	113.00	-6.10	-5.12	21159
REL. COMM.	5.48	-0.29	-5.03	7627242

2:27 PM

DHFL shrugs off CEO Harshil Mehta's resignation; jumps 18% from day's low

Shares of Dewan Housing Finance Corporation Limited (DHFL) have moved higher by 11 per cent to Rs 123 apiece, bouncing back 18 per cent from their intra-day low and erasing their entire losses on the BSE. The stock opened 6 per cent lower at Rs 105 after DHFL’s Joint Managing Director (MD) and Chief Executive Officer (CEO) Harshil Mehta resigned on Wednesday with immediate effect. READ MORE

2:14 PM

Market check

1:58 PM

Commodity watch: Current consolidation in gold good for future uptrend

The consensus on gold is that interest is back. Market participants believe that sentiment on the precious metals has turned more bullish. With central banks like China buying gold for the first time in years and funds that were previously not interested in gold starting to add the metal to their portfolio, investors have been showing more confidence. READ MORE

 

1:52 PM

Web Exclusive | 98% board resolutions get nod in CY18 despite rise in shareholders' dissent

Nearly 98 per cent of proposals put up before the company boards got a green signal in calendar year 2018 (CY18), despite a greater level of institutional investors casting their vote against the decision, suggest a report by Prime Database.

 

Of 716 resolutions proposed during CY18, 700 (98 per cent) got the approval even as institutional shareholders voted against them, courtesy high promoter holding in the companies, the report says. READ MORE
 

1:36 PM

Web Exclusive | Prices of luxury homes in Mumbai likely to dip 5% in CY19: Knight Frank

Luxury homes in Mumbai could cost less by the end of the calendar year 2019 (CY19). A recent report by Knight Frank on real estate trends titled ‘Global Outlook 2019’ suggests growth in prices of luxury homes across the globe is slowing.

 

The proliferation of property market regulations, the rising cost of finance, uncertainty surrounding Brexit and in some markets and a high volume of new prime supply are the factors, it says, that are weighing on prime prices. More muted growth is the main story for 2019 forecast, the Knight Frank report says. READ MORE

Indian housing market is going through a rough patch for the last three years

1:20 PM

149 stocks from BSE SmallCap index fall over 25% since January

Shares of small-cap companies continued to be under pressure with the S&P BSE SmallCap index hitting a fresh 52-week low of 13,286 on the BSE in intra-day trade on Thursday. Thus far in the current calendar year 2019 (CY19), the BSE Smallcap index slipped 10 per cent, as compared to 9 per cent decline in the S&P BSE Midcap and a 0.42 per cent fall in the benchmark index S&P BSE Sensex. READ MORE

1:05 PM

Is it time to ditch China and look elsewhere? There's just one big problem

There’s an old Polish saying that when two people quarrel, a third will benefit. And so global investors are now looking for the country best positioned to gain from the US-China trade war.

 

China has been good to foreign investors over the past decade. Since the collapse of Lehman Brothers Holdings Inc. in 2008, the MSCI China Index has offered an annualized 8.6 percent return. READ MORE

12:57 PM

Nifty Metal index is trading over 1.5% lower

12:43 PM

WPI inflation hits 10-month low, drops to 2.76 pc in Jan

Inflation based on wholesale prices fell to a 10-month low of 2.76 per cent in January over the previous month on softening prices of fuel and some food items, according to government data released Thursday.

 

The Wholesale Price Index (WPI)-based inflation stood at 3.8 per cent in December, 2018, and 3.02 per cent in January 2018. WPI inflation stood at 2.74 per cent in March 2018. READ MORE

12:27 PM

SPECIAL REPORT :: Knight Frank Global Outlook 2019

Key findings

·         Bengaluru emerges amongst the top cities worldwide to witness a steep growth in office rentals at 6.6% for 2019.

 

·         Mumbai prime rental values to remain stable at 0.3% possible growth in 2019

 

·         Bengaluru (13.2%), Mumbai (11.5%)and Delhi (10.1%), to be Global Hotspots in terms of office rental growth with forecasts by 2021

 

·         Vacancy rate to improve in New Delhi and Mumbai with current 16.5% (2018) and 19.8% (2018) to 15% (2021) and 14% (2021), indicating an increase in employment generation, whereas Bengaluru remains the same at 3.2%.

Prime residential price growth forecast (Image source: Knight Frank report)

 

12:24 PM

Apollo Tyres upbeat on FY20 sales and investments; IL&FS overhang persists

Apollo Tyres plans to invest around Rs 2,500 crore-3,000 crore next year, primarily in its greenfield project in Andhra Pradesh.

 

Gaurav Kumar, chief financial officer (CFO) of Apollo Tyres, said the company has begun work on the Andhra plant. "While this year has seen significantly muted investments, next year will be better." The first phase of the plant will see an investment of Rs 3,800 crore. It is expected to start production in the last quarter of fiscal 2020, Kumar told analysts during a post-earnings conference call. READ MORE

12:07 PM

CG Power and Industrial Solutions is trading around 20% higher

12:03 PM

Market check

12:02 PM

NEWS ALERT

WPI inflation at 2.76% against 2.84% YoY; 3.80% MoM

11:48 AM

MARKET COMMENT :: Morgan Stanley

We continue to argue that US policy choices shifted from a US risk market tailwind in 2017 to a headwind in 2018, as the 'Downside of Fiscal Stimulus' emerged. This should dampen growth in 2019 while introducing procyclical risks to corporate behavior through shifting tax provisions. 

 

While a détente with China is helpful, it's not sufficient to offset this dynamic, and may have already contributed to some ongoing earnings downside by increasing supply chain costs. And although we expect any auto tariffs would be fleeting, the event would certainly create at least some near-term pressure on economic fundamentals and investor sentiment. 

 

Hence, our policy outlook continues to support our colleagues' views on US equities (range-bound and likely to test the lows again this year), credit (remains in a bear market), and rates (lower bias on yields into year-end).

The corporate logo of financial firm Morgan Stanley is pictured on the company's world headquarters in New York, New York January 20, 2015. REUTERS

11:38 AM

Top gainers and losers on S&P BSE Sensex

11:26 AM

Prabhudas Lilladher on Hindalco Industries

Rating: ACCUMULATE 
CMP: Rs 198 
TP: Rs 245

 

Hindalco (HNDL) reported Q3FY19 earnings in line with estimates. Aluminium (AL) operations posted earnings ahead of expectation on the back of better than expected realisations. In the midst of depressed LME prices and severe shortage of domestic coal, AL operations posted 8% YoY (↓5% QoQ) growth in EBITDA against our estimate of flat growth YoY (↓12% QoQ). While, Copper (Cu) operations disappointed due to weaker than expected premiums and lower by-product volumes/realisations. We expect improved margins in Cu operations with the ramp-up of high margin CC rods capacity. Outlook on Novelis remained stable on the back of firm demand outlook and strong product mix. With the increased investments in conversion business model of Novelis and expansion of downstream capacity of domestic operations, the combined share of conversion (including copper) business and value added products would increase by ~500bps to 75% (in EBITDA) by FY20e. Backed by strong business model and attractive valuations, we maintain Accumulate with TP of Rs245, EV/EBITDA of 6x FY20E.

 

11:21 AM

Prabhudas Lilladher on Sun Pharma

Rating: REDUCE
CMP: Rs 442
TP: Rs427

 

Management maintained guidance significant cost push (promotion, marketing and employee) of launching branded specialty products going forward. Expecting continuation of headwinds in US generics, SUNP guided for launch of generics with limited competition. The SUNP valuation remains challenging and one of the highest among its peers as it trades at PE of 21.7x and 20.4x of FY20E and FY21E. we expect concerned over corporate governance to remain hangover over the valuation of SUNP and eliminate premium PEx vs peers. With rolling forward our earnings estimates to FY21E, we downgrade our assigned PE to 20x (from 22x) of FY21E and derive new target price  at Rs427. We maintain ‘Reduce’

 

11:11 AM

RSWM hits 52-week low, slips 17% on Rs 28.5 crore loss in December quarter

Shares of RSWM slipped 17 per cent to Rs 148 apiece, also their 52-week low on the BSE in early trade after the company reported a net loss of Rs 28.53 crore in December 2018 quarter (Q3FY19) on lower sales. The textile company had posted a profit of Rs 9.21 crore during the same quarter last fiscal. The company’s operational revenue during the quarter under review declined 12 per cent to Rs 689 crore against Rs 787 crore in the corresponding quarter of previous fiscal. READ MORE

11:04 AM

RBI imposes Rs 5 cr penalty on four PSU banks

The Reserve Bank on Wednesday imposed penalties of Rs 5 crore on four public sector banks including SBI and Corporation Bank for violation of various banking norms. The monetary penalty on the banks has been imposed for non-compliance with various directions issued by RBI on monitoring of end use of funds, exchange of information with other banks, classification and reporting of frauds, and on restructuring of accounts, RBI said in a statement. READ MORE

10:59 AM

NEWS ALERT

Larsen & Toubro Infotech Ltd. has signed a definitive agreement to acquire NIELSEN+PARTNER (N+P), an independent Temenos WealthSuite specialist, headquartered in Hamburg, Germany. This acquisition is synergistic to Syncordis acquisition that LTI announced in 2017. Syncordis is the leading Temenos T24 Core Banking Platform specialist with widespread presence in Europe, whereas N+P has built comprehensive expertise in the front office of Temenos WealthSuite.

Together with Syncordis, N+P strengthens LTI’s capabilities as a global expert of Temenos suite of products and enriches company’s offerings to Banking clients. Upon integration, N+P’s Temenos business will be consolidated under the brand of Syncordis, while software engineering business will operate and expand as part of LTI Germany

(Source: Company release)

10:54 AM

Top losers on BSE500

COMPANY	PRICE(rs)	CHG(rs)	CHG(%)	VOLUME
REPCO HOME FIN	331.80	-33.85	-9.26	94325
RAIN INDUSTRIES	92.70	-7.90	-7.85	101748
ORACLE FIN.SERV.	3548.75	-270.05	-7.07	5598
NATL. ALUMINIUM	47.10	-2.80	-5.61	697934
NBCC	48.70	-2.85	-5.53	830238