MARKET WRAP: Sensex slips 184 pts, Nifty ends at 12,022 ahead of RBI policy

All that happened in the markets today

4:02 PM

Top losers on BSE500

COMPANY	PRICE(rs)	CHG(rs)	CHG(%)	VOLUME
JUBILANT LIFE	461.00	-28.15	-5.75	96416
DILIP BUILDCON	551.55	-29.00	-5.00	55584
MANPASAND BEVER.	46.45	-2.40	-4.91	17195
INDIA CEMENTS	102.10	-5.20	-4.85	1063766
INDIAN BANK	274.20	-13.20	-4.59	363326

4:00 PM

Heatmap: S&P BSE Sensex

3:59 PM

Sectoral indices at close

3:59 PM

Market at close

3:32 PM

Market at close

The S&P BSE Sensex ended at 40,084, down 184 points while the broader Nifty50 index settled at 40,083, down 51 points.

3:19 PM

YES Bank rises 2.6%, top gainer in S&P BSE Sensex

2:59 PM

HEAT MAP :: BSE Sensex

2:58 PM

INTERVIEW OF THE DAY :: Naveen Kulkarni of Reliance Securities

The market is expensive now and will continue to remain so: Naveen Kulkarni

Which sectors will benefit in the near-term, now that elections and earnings are over? 

Banking, infrastructure, cement, and quality mid and small caps are expected to provide good returns to investors. Among small-caps, we expect Sonata Software to do well among the information technology (IT) pack. Under the infrastructure we are betting on HG Infra and among cement stocks we likeJK Lakshmi and JK Cements. READ MORE HERE

2:56 PM

Market check | Sudden fall in Sensex

2:56 PM

SECTOR WATCH :: TYRES

Tyre manufacturers in India have been gearing up for aggressive capacity expansions as demand has been robust across segments and tyre companies’ utilisation levels have already reached peak levels. As a large part of the capex would be debt-funded, India Ratings and Research (Ind-Ra) expects the credit metrics of tyre companies to remain high over FY19-FY21 (industry net leverage to stay above 2.5x-3.0x).

However, once the capex is completed, the metrics of tyre companies improve substantially over the subsequent two years, supported by the gradual ramp-up of the new capacities. Nonetheless, a prolonged slowdown in auto demand could delay the deleveraging process, thereby exacerbating the downside risks for tyre manufacturers

2:54 PM

Despite rate cuts, India's moribund housing market stuck in low gear: Poll

The outlook for India's moribund property market has brightened somewhat, with house prices this year expected to rise more than predicted three months ago, but those increases will still be the weakest in at least a decade, a Reuters poll found.

 

Until 2015, India's annual property price growth had typically been in the double digits. However, more recently a ban on high value currency notes and a liquidity shortage driven by bad debts on banks' balance sheets have led to a cooling in lending and a housing inventory pile-up READ MORE HERE

 

2:50 PM

Avadh Sugar & Energy hits 52-week high, jumps over 100% in four months

In the last one month, the stock has surged 64 per cent after the company announced 1:1 bonus and reported record quarterly profit of Rs 85 crore in March quarter of the financial year 2018-19 (Q4FY19). In comparison, the S&P BSE Sensex was up 3.3 per cent during the period. READ MORE

2:48 PM

IFIN violated RBI norms to help Sivasankaran pay off IFCI loan: SFIO

Senior management of Infrastructure Leasing & Financial Services (IL&FS) violated several Reserve Bank of India (RBI) norms laws to help Chennai-based C Sivasankaran pay off IFCI's loan when he was already a defaulter to IFIN (a subsidiary of IL&FS), the Serious Fraud Investigation Office (SFIO) has alleged. READ MORE

 

2:40 PM

Expectation from RBI Policy meeting | Elara Capital

We expect Monetary Policy Committee to cut repo rate by 50-75bp and CRR by 25-50bp in FY20E to address the growth slowdown while continuing to infuse liquidity through a mixture of open market bond purchases, cut in cash reserve ratio (CSR) and forex swaps.

 

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2:38 PM

Sobha Limited gains 5.6%

2:36 PM

Gold check

Source: Bloomberg

2:25 PM

Crude check

Source: oilprice.com

2:19 PM

NEWS ALERT | Markets to remain shut on June 5 on account of Eid-ul-Fitr

2:15 PM

Elara Capital on Shalby

Rating: BUY

 

Target Price : Rs 180

We cut our EBITDA by ~9% each for FY20E and FY21E. The company has one of the most scalable healthcare models, with focus on orthopedics, which draws ~60% of revenue. Steady growth across its two flagship hospitals along with scalability in new hospitals should result in an 18% sales CAGR and a 27% EBITDA CAGR over FY19-21E. Moreover, zero net debt would bolster growth. It currently trades at 10x FY21E EV/EBITDA, which we believe is compelling. We reiterate Buy with a TP of INR 180 from 200 on 15x (unchanged) FY21E EV/EBITDA. 

 

 

2:14 PM

Sectoral trend on NSE

2:02 PM

India Cements slips over 4%

1:42 PM

COMMENT :: Shishir Baijal, chairman & managing director, Knight Frank India

With the recent Q1 2019 GDP growth rate numbers, announced on May 31, 2019, being at a 5-year low of 5.8%, unemployment rate inching up over 6%  and the inflation rates being under 2.5%, Monetary Policy Committee (MPC) has a clear opportunity to lower policy rates to stimulate growth in the Indian economy. The beleaguered real estate sector will look forward to these relaxations in the key policy rates with the hopes that these will provide the needed fillip to end user demand.

 

We, therefore, hope that the MPC takes the decision to further reduce the REPO and reverse REPO rate by 50 BPS bringing it down to 5.5% and 5.25% respectively. This will help in liquidity injection in the economy and help revive the currently stalled credit cycle, increase broad-based investments, give a fillip to consumption expenditure, and the benefit will likely percolate from banks to the Non-Banking Financial Companies (NBFC). In turn, stalled sectors like real estate may be able to get better credit access

1:39 PM

NEWS ALERT | Adani Ports board approves share buyback at Rs 500/share

1:38 PM

Religare Enterprises gains 5.6%

1:33 PM

Mutual Fund snapshot

In May 2019, Focussed Funds led the list of Mutual Fund categories with a AUM-weighted return of 3.05%, followed by Small Cap Funds with a return of 2.52%. Large Cap Funds delivered a return of 2.15%.

 

Out of the 205 open-ended equity diversified funds, about 62% of the funds (or 127 schemes) were able to outperform their respective benchmarks over the past one month, ended May 31, 2019. This again was an improvement over the previous month, where only 51% of the schemes were able to beat their benchmarks. Out of the 29 Large Cap Funds, as many as 20 schemes outperformed the S&P BSE 100 – TRI. 

 

On a 1-year basis, many equity schemes were found struggling against the benchmark. Just 28% or 57 schemes out of 205 equity funds were able to beat their benchmark over the past year. Just four schemes (or 11%) out of the 36 Equity Linked Savings Schemes managed to outperform their benchmark – the S&P BSE 200-TRI.

(Source: Prabhudas Lilladher report)

 

1:27 PM

FPI inflows into equity markets till May 2019 is the best in six years

Foreign portfolio investor (FPI) flows to the equity market till May 2019 have been the best in the past six years. Till May 2019, FPIs have pumped in nearly $11 billion on expectation of more business-friendly measures and continuity in ongoing policies post the outcome of the general elections. And their bet proved correct with the Narendra Modi – led National Democratic Alliance (NDA) winning the 2019 general election with a thumping majority. FPIs remained net buyers for the fourth straight month in May. READ MORE

1:06 PM

Sectoral trends on NSE

1:05 PM

Top gainers and losers on S&P BSE Sensex

1:03 PM

Market check

1:03 PM

Market check | Sensex sees recovery