MARKET WRAP: Sensex falls 336 points as ITC slips 5% following Q3 results

Among sectors, the Nifty FMCG index was the top loser of the day, falling 1.69 per cent weighed by ITC and United Spirits.

3:38 PM

Sectoral gainers and losers on NSE

3:38 PM

S&P BSE Sensex: Top gainers and losers

3:35 PM

Market at close

 

The S&P BSE Sensex falls 336 points or 0.92 per cent to settle at 36,108 while NSE's Nifty50 index ended below 10,850 level at 10,831.50, down 91 points or 0.84 per cent.

3:18 PM

Focus on limiting losses than chasing large gains, CLSA cautions investors

Investors should focus on "limiting losses rather than chasing large gains" in the Year of the Pig, which will be a roller-coaster year for Hong Kong's stock market, according to brokerage CLSA.

 

The Year of the Pig, which symbolises hard work and affection, will be upset by "small quarrels and pesky spirits", CSLA said on Wednesday in its annual Feng Shui Index, a tongue-in-cheek financial forecast. READ MORE

3:00 PM

ITC Q3 net profit rises 4% YoY to Rs 3,209.07 crore

FMCG major ITC posted a 3.84 per cent YoY rise in its net profit at Rs 3,209.07 crore for the quarter ended December 31, 2018. It had posted PAT of Rs 3,090.20 crore in the corresponding quarter of last financial year. For the nine months ended on December 31, 2018, the figures stood at Rs 8982.42 crore. Total income from operations for the quarter under review came in at Rs 12,267.65 crore, up 15.79 per cent against Rs 10,594.55 crore in the year-ago period. Read more

 

2:46 PM

BSE Sensex down over 0.5%. Top gainers and losers:

2:30 PM

Stock impact: ITC falls over 1% post Q3 results

2:29 PM

COMMENT Kotak Securities sees a rate cut soon

We expect the RBI to cut rates by 50 bps in 1HCY19 given the muted growth-inflation outlook. The RBI will probably first change its stance to ‘neutral’ in February and follow it up with rate cuts as inflation is expected to stay below 4% until August 2019. The RBI, however, will be watchful of DM monetary policies and crude price movements. While volatile crude oil prices and concerns on fiscal slippage may warrant some caution, the seemingly structurally benign food inflation along with softening growth (in 2HFY19) should help in capping the upside pressures, thereby creating space for the RBI to cut rates by 50 bps in 1HCY19.

2:21 PM

NEWS ALERT ITC Q3 net profit at Rs 3,209.07 crores vs Rs 3090.20 crores year ago

2:15 PM

Stocks that touched 52-week low

COMPANY	PRICE( )	52 WK LOW	CHG( )	CHG(%)
ADITYA BIRLA CAP	89.15	89.10	-1.80	-1.98
DEEPAK FERT.	115.25	113.10	-4.40	-3.68
DILIP BUILDCON	358.85	358.85	-8.80	-2.39
FDC	165.55	161.85	-5.30	-3.10
FORCE MOTORS	1515.00	1503.00	-8.70	-0.57

2:03 PM

INTERIM BUDGET EXPECTATIONS Motilal Oswal Institutional Equities

Although the full budget later this year will hold more significance (as the numbers may change with the new government), the forthcoming interim budget may well offer a glimpse of what lies ahead as market participants seek answers to some crucial questions: Will the government increase rural spending and turn populist? Will such populist spending be an annual occurrence or a one-time event? Will the salaried class enjoy any relaxation or will the large companies see lower corporate tax rates at 25%? What would happen to the capital spending of the central government? Will politics of the day allow the center to follow the path of fiscal consolidation?

2:00 PM

Prabhudas Lilladher on Asian Paints

 

We increase our FY19 and FY20 EPS by 6.9-6.7% as APNT has posted ~24% volume growth in domestic decorative business, first 20% growth number after 3QFY11. Although sustenance of the same is yet to be tested given benefit of low base and late Diwali this year and GST rate reduction in 3Q. APNT has given a cautiously optimistic outlook as sales growth will remain sensitive to overall demand and elections. Margins in the near term will be a function of USD/INR, crude price volatility, sales mix and stabilization of production in new units at Mysore and Vizag.

We remain positive in the structural growth story due to 

1) likely benefits of GST rate reduction given ability to straddle through price points and deep distribution 

2) strong pricing power given 7.4% price increase in the calendar year and 

3) lower share of Automotive/ Industrial paints (5% of Consol sales) which will face more demand and margin pressure in near term.

1:52 PM

IBM beats Q4 expectations, reports full-year revenue growth; shares jump 7%

 

IBM Corp beat Wall Street quarterly earnings estimates and also forecast 2019 profit above expectations on Tuesday, in the latest indication that Chief Executive Officer Ginni Rometty's efforts to turn around the technology services company were gaining traction.

 

Shares rose 7 per cent in extended trading after IBM also posted its first annual revenue growth since 2011. READ MORE

1:37 PM

Gold steady as slowing economy, US-China trade war raise safe-haven demand

Gold prices stood firm on Wednesday, after gaining the most since Jan. 9 the day before, on higher demand for safe-haven assets over concerns of slowing global economy and uncertainties about the US-China trade row. Spot gold was little changed at $1,284.50 per ounce, while US gold futures were up 0.1 per cent at $1,284 per ounce. Spot gold rose 0.4 per cent on Tuesday as global stock markets fell. Asian stocks edged down on Wednesday. Read more

1:22 PM

Top gainers on BSE500

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
ADANI TRANSMISSI	219.60	9.80	4.67	22321
JUBILANT LIFE	761.80	30.00	4.10	37483
BOMBAY BURMAH	1268.40	48.05	3.94	390796
GRANULES INDIA	89.95	3.30	3.81	32507
INDBULL.REALEST.	80.60	2.90	3.73	241743

1:09 PM

EARNINGS IMPACT

1:06 PM

NEWS ALERT | Vijaya Bank reports 80.2% YoY jump in Q3 net profit at Rs 143.4 cr against Rs 79.6 cr in the year-ago period

1:04 PM

Top gainers and losers on S&P BSE Sensex

12:53 PM

ITC Q3 preview: Profit may grow 14% YoY, govt's rural push to boost volumes

FMCG major ITC is scheduled to report its December quarter results on Wednesday. The result will be watched for trends in cigarette volumes and the demand outlook for FMCG categories and segmental profitability. The company had posted 11.9 per cent growth in its net profit for the quarter ended September 31, 2018, at Rs 2,955 crore. The same during the corresponding quarter of the previous financial year stood at Rs 2,640 crore. Read more
 

12:36 PM

Stock impact: Indoco slips post weak Q3 numbers

12:30 PM

NEWS ALERT Indoco Remedies Q3 profit at Rs 5.34 crores vs Rs 22.66 crores year ago.

12:16 PM

Web Exclusive Q3 auto preview: Another dull quarter likely; Maruti among top picks

It has been a tough third quarter (Q3FY18) for companies in the automobile segment. The second quarter of FY19 saw demand tapering off for most of the companies, thanks to a host of headwinds faced by the sector. Unexpected change in insurance policy and rising fuel prices led to a lackluster festive season. However, adding insult to the injury is the current liquidity crunch, which has slowed down loan disposals and, in turn, the demand for the automobile sector.

Two-wheeler companies have been fighting hard while competition among them has been quite brutal, with Bajaj Auto Ltd entering low-end segment by offering five years of service, warranty and insurance.  Read more

12:06 PM

COMMENT | Prabhudas Lilladher on Asian Paints

 

Rating: ACCUMULATE | CMP: Rs1,407 | TP: Rs 1,460

 

We increase our FY19 and FY20 EPS by 6.9-6.7% as Asian Paints (APNT) has posted ~24% volume growth in domestic decorative business, first 20% growth number after 3QFY11. Although sustenance of the same is yet to be tested given benefit of low base and late Diwali this year and GST rate reduction in 3Q. APNT has given a cautiously optimistic outlook as sales growth will remain sensitive to overall demand and elections. Margins in the near term will be a function of USD/INR, crude price volatility, sales mix and stabilization of production in new units at Mysore and Vizag.

11:52 AM

Kilitch Drugs hits new high; stock zooms 51% in January

Shares of Kilitch Drugs (India) hit a new high of Rs 242 apiece, up 3 per cent on BSE in an otherwise subdued market, on expectations of strong earnings growth.

The stock of pharmaceuticals company has rallied 51 per cent thus in the month of January, 2019. In comparison, the S&P BSE Sensex was up 1 per cent in past 17 trading days. Read more

11:39 AM

INTERVIEW OF THE DAY This year will be all about stock-picking: ICICI Pru MF's Nimesh Shah

Election years have historically proved to be volatile, providing investors with intermittent investment opportunities, says Nimesh Shah, managing director & chief executive officer of ICICI Prudential Mutual Fund. In an interaction with Ashley Coutinho, he says the best way to accumulate equities in these times is to opt for the systematic investment route. READ MORE HERE

11:36 AM

Motilal Oswal Securities on RIL

On FY20 basis, the stock trades at 15.3x and EV/EBITDA of 8.4x. In 9MFY19, the company has clocked consolidated PAT of INR294b v/s our FY19 estimate of Rs 385b. Our SOTP-based fair value stands at Rs 1,426/share. Maintain Buy.

11:34 AM

Centrum Broking on Aurobindo Pharma

We maintain our Buy rating on Aurobindo Pharma (APL) and revise target price to Rs1,300 (earlier Rs1,270) based on 18x March’20E EPS of Rs72.4. APL’s US subsidiary has acquired seven branded oncology injectable products. The acquisition cost is $160mn (Rs11.36bn) upfront payment and $140mn (Rs9.94bn) on achieving regulatory and sales milestones.

Revenues from this business are expected to commence from FY20 onwards. We are positive on this development as APL can launch other oncology products through this channel. APL has developed a robust pipeline of 510 ANDAs for the US market through differentiated products. APL is among our top picks in the pharma sector.

11:33 AM

SECTOR WATCH Ambit Capital on retail sector

Long stints by key management personnel (Noel Tata for Trent, Bhaskar Bhat for Titan) provide long-term view on business alongside ability to recruit/retain bright talent under Tata brand, helping fine-tune supply chain and products. This also makes Tata a preferred JV partner of large global retail successes in India like Starbucks, Zara and potentially Tesco. Titan (25% upside) and Trent (27% upside) are our top picks in Indian Retail.

11:31 AM

Anand Rathi on Atul Ltd

One of thelargest integrated manufacturers in Indian specialty chemicals, Atul would, weestimate, have sales of ~`50bn by FY21 through optimalcapacity utilisation and capitalising on latent revenue potential. Further,backward integration and its focus on high-margin products would help improvethe EBITDA margin and profitability. We maintain our Buy rating, with a pricetarget of Rs 4,000

11:29 AM

S&P BSE MidCap index is trading 0.25% higher