MARKET WRAP: Sensex declines 300 pts tracking global fall; IT, metals weigh

The Nifty Metal index, the top loser of the day, ended 2.8 per cent lower weighed by Jindal Steel & Power and Hindalco Industries

3:46 PM

Nifty Metal ends 2.83% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
HINDALCO INDS.	220.60	234.45	-13.85	-5.91	14748354
JINDAL STEEL	171.00	180.60	-9.60	-5.32	9297583
TATA STEEL	563.35	582.40	-19.05	-3.27	7632646
S A I L	62.35	64.30	-1.95	-3.03	8510468
VEDANTA	205.10	211.35	-6.25	-2.96	18612503

3:43 PM

Sectoral gainers and losers of the day on NSE

3:41 PM

BSE Sensex: gainers and losers of the day

3:33 PM

Market at close

 

The S&P BSE Sensex ended at 35,475, down 300 points or 0.8 per cent, while the broader Nifty50 index settled at 10,656, down 107 points or 1 per cent.

3:18 PM

Metal shares under pressure; Hindalco, JSPL fall 5%

Shares of metal companies were under pressure with Hindalco Industries and Jindal Steel & Power (JSPL) falling 5% each, while National Aluminum, Tata Steel, Vedanta, Steel Authority of India (SAIL) and JSW Steel were down 2% to 3% on the NSE, due to macro concerns. READ MORE
 

3:07 PM

India's gold demand to remain muted in October-December quarter

After a satisfactory 10 per cent jump in July–September quarter, India’s gold demand is likely to remain subdued in the fourth quarter of calendar 2018. Gold prices are quoted at a discount of Rs 50-100 per 10 grams in India for over a month now. READ MORE

2:50 PM

Stocks at 52-week low:

COMPANY	PRICE( )	52 WK LOW	CHG( )	CHG(%)
ASAHI INDIA GLAS	267.25	267.15	-4.05	-1.49
DEEPAK FERT.	167.60	167.00	-7.55	-4.31
GE T&D INDIA	222.60	222.15	-6.25	-2.73
JINDAL STAIN.	44.30	43.80	-2.40	-5.14
SECURITY & INTEL	783.05	780.00	-11.50	-1.45

2:45 PM

S&P BSE Sensex top gainers and losers

2:32 PM

Oil India bucks trend after board approves buyback

 

Oil India rose 0.82% to Rs 202.70 on BSE after the company said its board approved the proposal to buyback 5.04 crore shares at Rs 215 each. The announcement was made after market hours yesterday, 19 November 2018. Meanwhile, the S&P BSE Sensex was down 198.99 points, or 0.56% to 35,575.89. Read more

2:21 PM

Deepak Fertilizers hits two-year low; down 20% in 1-week on weak Q2 results

 

Shares of Deepak Fertilisers & Chemicals hit two year low of Rs 167, down 5% on the National Stock Exchange (NSE), falling 20% in past one week, after it reported a 56% drop in net profit at Rs 190 million in September 2018 quarter (Q2FY19). The stock was trading at its lowest level since August 19, 2016. It tanked 62% from its 52-week high of Rs 437 hit on January 5, 2018, on the BSE in intra-day trade. Read more

2:06 PM

DHFL is trading over 4% lower ahead of Q2 earnings

2:01 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,583.01	-191.87	-0.54
S&P BSE SENSEX 50	11,168.95	-75.81	-0.67
S&P BSE SENSEX Next 50	32,120.98	-289.14	-0.89
S&P BSE 100	10,950.79	-78.06	-0.71
S&P BSE Bharat 22 Index	3,468.73	-13.25	-0.38

1:43 PM

BSE-S&P Dow Jones split: Index business a laggard in Indian markets

 

The end of BSE’s joint venture with global index provider S&P Dow Jones Indices has thrown a spotlight on the index business in India. It has been less of a success than the segment’s traction in global markets might have indicated. Large global index providers took in over two billion in revenues in the previous year, according to Bloomberg. It is a fraction of that in India. Year-on-year growth has also been limited and contribution to exchanges' earnings is minimal, shows an analysis of financial statements. Read more

1:30 PM

Derivatives strategies: A breakout above 10,800 would be a positive signal

 

The market continued to ride up. It is now testing resistance between 10,700 and 10,800. This zone is critical since the Nifty's 200-day moving average (200-DMA) is at these levels. A breakout above 10,800 would be a positive signal, with a possible upside till 11,000-plus. A crash would, on the other hand, have a downside till 10,300. Volumes have picked up with net institutional buying. FPIs are net positive while domestic institutions are selling. Breadth is negative, with advancing stocks outnumbered by declining stocks but it has improved. Read more

1:23 PM

Nissan shares fall on Carlos Ghosn's arrest over financial misconduct

Shares of Nissan Motor Co fell 6 per cent early on Tuesday, a day after the arrest of Chairman Carlos Ghosn sent shockwaves through the business world and threw into doubt the future of Japan's No.2 automaker and its global alliance.

 

Nissan said on Monday Ghosn was arrested for alleged financial misconduct and would be fired from the board this week. Ghosn is also chairman and chief executive of Nissan's French partner, Renault. READ MORE

1:11 PM

Morgan Stanley on NBFCs

Not all NBFCs/HFCs are equal, in our view. We divide them into those with strong parentage/long vintage and those with lesser vintage. The strong ones account for two-thirds of NBFCs/HFCs overall and have posted a 15% loan CAGR during F15-18. The latter grew at 26%, buoyed by easy and cheap liquidity.

We expect stronger entities collectively to sustain mid- to high-teens growth rates as they get a dis-proportionate share of the liquidity available to the group. The lesser-vintage entities will face sustained funding challenges (against a backdrop of higher global rates), causing a slowdown from the high growth rates of recent years.

1:09 PM

Dolat Capital on Britannia Industries

1:08 PM

Dolat Capital on Dalip Buildcon

We downgrade our revenue estimates by 10.2%/ 15.2% for FY19E/ FY20E due to delay in ‘appointed date’ for 12 HAM projects (EPC value Rs 111.5 bn). Our revenue growth of 18.1% in FY20E is still higher than management’s downward guidance of 10-15% vs. 25% earlier. We downgrade our EBITDA margin by 50bps/ 100bps for FY19E/ FY20E to factor in 1HFY19. We factor higher capex of Rs 6 bn for in FY19E vs Rs 4 bn earlier, which translates higher depreciation. Accordingly, we downgrade our Adj. PAT estimates by 16%/ 32.1% for FY19E/ FY20E.

1:06 PM

Prabhudas Lilladher on IPCA Labs

EBITDA margin is guided to improve by 200bps in FY19E due to the benefits operating leverage. We expect key fundamentals to improve gradually and set-off for bigger momentum once FDA issues resolves. IPCA trades at PER of 27x (FY19E) and 19x (FY20E). We maintain ‘Buy’ and retain target price at Rs 829.

1:04 PM

ICRA on RBI board meet outcome

With many banks struggling to meet the basic capital ratios, i.e. CRAR of 9%, the decision to extend the transition period for implementing the last tranche of Capital Conservation Buffer (CCB), by one year is likely to benefit only a few banks as most of the public sector banks (PSBs) are not maintaining the existing CCB requirement of 1.875%. The benefit will hence be limited to banks whose CCB is higher than 1.875% but lower than 2.5%, who can now purse credit growth without a worry of capital breach. While CCB is not a concern for most of the private banks, CCB deferment can increase their capital cushion over regulatory levels.

 

Further, the decision for RBI to retain the CRAR of banks at minimum 9% is positive for the banking system, given high unprovided losses against the existing stressed loans. The solvency ratio for PSBs (i.e. Net NPA / Net worth) stood weak at 84%. Lowering CRAR would have meant a further lowering of capital against unprovided losses.

 

Based on the existing framework, almost 17 out of 21 PSBs would come under the PCA framework, even though only 11 of them are formally placed under PCA. With the PCA framework to now be examined by the Board for Financial Supervision (BFS) of RBI, one may explore scenarios for a faster exit of banks from PCA framework

1:00 PM

Top losers in BSE500

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
YES BANK	194.00	205.05	-11.05	-5.39	4381565
INDIABULLS VENT.	423.20	447.05	-23.85	-5.33	25900
HINDALCO INDS.	222.70	234.05	-11.35	-4.85	387826
BANK OF MAHA	14.15	14.78	-0.63	-4.26	71346
MAX INDIA	68.60	71.60	-3.00	-4.19	4505

12:45 PM

RBI decision to ease capital norms credit negative for banks: Moody's

The Reserve Bank of India's decision to allow lenders more time to adhere to additional capital buffer norms under Basel 3 is credit negative for the country's state-run banks, Moody's Investors Service said in a release on Tuesday. Read more

 

12:35 PM

WEB EXCLUSIVE PSU banks need more capital; don't rush to buy them now, say analysts

The resolution to look at capital requirements for banks and changes to the prompt and corrective (PCA) framework are not enough reasons for investors to rush and buy public sector banks right now, say analysts. After the Reserve Bank of India’s (RBI’s) day-long board meet on Monday, the central bank decided to consider relaxing lending norms for banks under the PCA and set up a committee to discuss the transfer of surplus reserves to the government. Read more

12:21 PM

Motilal Oswal on Bharti Airtel

 

CMP: Rs 334 

TARGET PRICE: Rs 390 

RATING: Buy

 

We maintain our positive stance on Bharti with a valuation of 10x each ascribed to the India/Africa business FY20E EBITDA and a TP of INR390. The Africa business has turned into a strong value-generating asset, thereby garnering healthy valuations. This, in turn, has improved its India valuation to ~8x despite its depressed EBITDA. Given Bharti’s strong network and product capabilities, we believe that the industry revival could drive a strong earnings recovery for the company.

12:15 PM

Newgen Software hits highest level since listing; zooms 35% in one week

 

Shares of Newgen Software Technologies have moved higher by 13% to Rs 346 per share on BSE in an otherwise weak market. The stock of IT consulting & software firm is trading at its highest level since listing on January 29 this year. In past one week, it has rallied 35%, as compared to a 1.4% rise in the S&P BSE Sensex. Read more

12:00 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,660.47	-114.41	-0.32
S&P BSE SENSEX 50	11,203.61	-41.15	-0.37
S&P BSE SENSEX Next 50	32,330.12	-80.00	-0.25
S&P BSE 100	10,990.46	-38.39	-0.35

11:45 AM

Motherson Sumi's FY19 earnings cut on margin pressure

The Motherson Sumi stock has shed about 12 per cent since the start of the month on weak September quarter results, and worries that muted volume outlook could hamper its future performance. Following the September-quarter results, analysts have cut the company's 2018-19 (FY19) earnings estimates by up to 20 per cent — the highest for any large auto company, with the exception of Tata Motors.

 

The immediate trigger for the earnings downgrades were the weak results in the quarter on the back of margin pressures. READ MORE

11:30 AM

HDFC raises Rs 5 billion by issuing masala bonds; stock up by 0.57%

 

HDFC said on Monday that it has issued masala bonds under its medium-term note (MTN) programme and raised Rs 5 billion. The rupee denominated bonds (RDBs), popularly known as masala bonds, are issued under the MTN programme, it said in a regulatory filing. The corporation has closed the said issue Monday with the issue size of Rs 5 billion," HDFC said. READ MORE

11:17 AM

State-run trading company MMTC does a rethink, to retain equity in ICEX

 

State run trading company MMTC Ltd has done a rethink on its equity status in the Indian Commodity Exchange Ltd (ICEX). MMTC had decided to offload its residual 9.5 per cent stake last year, marking its complete exit from the bourse. The exchange is a public private partnership with Reliance Exchange Next Ltd, MMTC, Indiabulls Housing Finance Ltd, Indian Potash Ltd, Kribhco and IDFC Bank as the major shareholders. Read more

 

11:07 AM

Nifty Auto index is trading marginally higher led by M&M