MARKET WRAP: Indices end a tad higher ahead of RIL, HUL Q3 results

Shares of Reliance Industries (RIL) ended flat at Rs 1,134 apiece on the BSE ahead of the December quarter (Q3FY19) result today. Fast-moving consumer goods (FMCG) major HUL fell 1.12 per cent.

3:53 PM

Sectoral gainers and losers of the day

3:50 PM

Gainers and losers of the day on BSE Sensex

3:35 PM

Market at close

The S&P BSE Sensex ended at 36,374, up 53 points or 0.15 per cent, while the broader Nifty50 index settled at 10,905, up 15 points or 0.14 per cent.

3:24 PM

Axis Bank hits record high; rallies 12% in two weeks

Shares of Axis Bank hit a record high of Rs 679 per share, up 2 per cent on the BSE, on expectations of a strong recovery in earnings, due to lower provisioning. The stock surpassed its previous high of Rs 677 recorded on September 10, 2018, in intra-day trade. In the past two weeks, Axis Bank has outperformed the market by surging 12 per cent, as compared to a 3 per cent rise in the S&P BSE Sensex. READ MORE

3:13 PM

Jet Airways turns volatile; up 15% from day's low on back of heavy volumes

Shares of Jet Airways turned volatile, rising 9 per cent to Rs 296 apiece in afternoon deals on the back of heavy volumes. The stock recovered 15 per cent from its early morning low of Rs 257.
 

Jet Airways opened 5 per cent lower, extending its 8 per cent decline in the previous day after the media report suggested Etihad Airways offered to invest in the debt-laden carrier at a discounted rate of Rs 150 per share. READ MORE

2:55 PM

Return on equity for Nifty firms slip to record low of 12.9% in January

The return on equity (RoE) ratio for top listed companies continues to deteriorate despite the uptick in earnings growth. The average RoE for the top 50 listed firms, which are a part of the Nifty, has declined to a record low of 12.9 per cent, against 13.6 per cent last year. The ratio was 15.5 per cent in January 2015 and 23.1 per cent in December 2007, on the eve of the big market correction of 2008. In the last one year, the index companies’ underlying earnings per share has risen 3.5 per cent from Rs 401 in January 2018 to around Rs 415 now. Read more

 

2:44 PM

Top gainers and losers on S&P BSE Sensex

2:31 PM

SBI says Jet's lenders discussing airline's restructuring plan

State Bank of India (SBI) on Thursday said lenders to Jet Airways Ltd are considering a plan toward resolving the airline's debt woes, amid increasing prospects of a bailout by major shareholder Etihad Airways. The statement elaborates on Jet comments made on Wednesday, in which the airline said a plan, involving a cash injection by stakeholders and board changes, was under discussion. Read more

2:24 PM

Federal Bank dips 5% post December quarter earnings

Shares of Federal Bank were trading 5 per cent lower at Rs 87 apiece, falling 7 per cent from the intra-day high of Rs 93 on BSE after it reported a mixed set of numbers for December 2018 quarter (Q3FY19). The stock was the largest loser among the Nifty Bank index. The private sector lender’s gross non-performing assets (NPA) as a percentage of total loans were 3.14 per cent at the end of December, compared with 3.11 per cent in the preceding quarter, and 2.52 per cent a year earlier. Read more

2:12 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,211.88	-109.41	-0.30
S&P BSE SENSEX 50	11,361.77	-30.64	-0.27
S&P BSE SENSEX Next 50	32,611.04	-120.25	-0.37
S&P BSE 100	11,137.64	-31.65	-0.28
S&P BSE Bharat 22 Index	3,449.57	-12.55	-0.36

1:59 PM

FPIs hike stake in gold loan companies Muthoot, Manappuram Finance in Q3

Foreign portfolio investors (FPIs) are accumulating equity shares of gold loan companies, as they increased their holdings in Muthoot Finance and Manappuram Finance for the second consecutive quarter on expectations of healthy growth going forward. In Manappuram Finance, FPIs bought an additional 1.26 percentage point stake to 39.44 per cent during the October-December quarter (Q3FY19). They hold 38.18 per cent stake in the company at the end of the September quarter (Q2FY19). Read more

1:44 PM

Top losers on BSE500

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
MOTIL.OSWAL.FIN.	646.70	-34.60	-5.08	11950
GATEWAY DISTR.	113.20	-6.05	-5.07	5787
RELIANCE INFRA.	299.55	-15.10	-4.80	289095
FEDERAL BANK	87.10	-4.30	-4.70	1738521
TV18 BROADCAST	36.35	-1.70	-4.47	286987

1:29 PM

Sebi allows mutual funds to write call options under certain conditions

The Securities and Exchange Board of India (Sebi), in a circular on Wednesday, said that mutual funds (MFs) may write call options under a covered call strategy.

 

Covered calls are a strategy in which an investor holds a long position in an asset and sells call options on that same asset to generate an income. A call option is a contract where the holder has the right, but not the obligation to buy the underlying asset. READ MORE

1:11 PM

Q3 results preview: RIL net seen rising a tad on higher petchem earnings

Mukesh Ambani-led Reliance Industries (RIL) is expected to take a further hit on its gross refining margins (GRM), which have touched a multi-year low for the quarter ended December 2018.

 

Overall profit of the company is expected to see a marginal year-on-year (Y-o-Y) growth with higher petrochemicals earnings. RIL will announce its results for the December 2018 ended quarter on Thursday. READ MORE

RIL is valued at $91 billion (Rs 6 lakh crore)

1:00 PM

After dull 2018, no silver lining in market cap for metals sector

Most metal and mining stocks saw significant erosion in their market capitalisation in 2018, with the representative index — the S&P BSE Metal — losing almost a fifth of its previous levels. Global trade uncertainty, volatility in the sector and a fall in base metal prices had hurt sentiments. So has increase in raw material prices, especially in the energy sector.

 

Fears of slowing demand from China led to lower prices in the October-December quarter (Q3). This will have a negative impact on the profitability of most players. READ MORE

12:40 PM

Federal Bank Q3 Net Interest Margin at 3.17% Vs 3.15% (QoQ); Vs 3.30% (YoY)

12:38 PM

Federal Bank Q3 Result:

Net Profit at Rs 333.63 crores (Q3FY19) vs 266.04 crore (Q2FY19)

12:32 PM

HUL Q3 preview: Performance of Lever Ayush, oral care, WIMI to be in focus

The company had said its well-established savings programme and leverage in other expenses had helped it mitigate material inflation and drive margin improvement. In the first week of December, Unilever had announced the merger of HUL with GSK Consumer Health in an all-stock deal.

 

Here is what top brokerages expect from HUL's December-quarter result on Thursday.

12:14 PM

Majestic Auto zooms over 50% in three trading sessions on healthy Q3 nos

Shares of Majestic Auto were trading at Rs 146 apiece, locked in upper circuit of 20 per cent for the second straight day on the BSE, after the company reported a consolidated net profit of Rs 19.21 crore in December 2018 quarter (Q3FY19). It had posted a loss of Rs 1.4 crore in year-ago quarter. The consolidated revenue from operations jumped 2.5 times to Rs 35.78 crore during the quarter under review, against Rs 13.83 crore in previous year quarter. Read more

 

12:01 PM

Market check

S&P BSE SENSEX	36,362.54	+41.25	+0.11
S&P BSE SENSEX 50	11,408.45	+16.04	+0.14
S&P BSE SENSEX Next 50	32,788.75	+57.46	+0.18
S&P BSE 100	11,185.50	+16.21	+0.15
S&P BSE Bharat 22 Index	3,461.26	-0.86	-0.02

11:48 AM

Reliance Securities on Mindtree 

 

Outlook Strong: Buy 

Target Price: Rs 1,050

 

Mindtree has delivered an in-line revenue performance in 3QFY19, which rose by 2% QoQ to US$251.5mn. From vertical perspective, while MFG, CPG & Retail clocked robust revenue growth of 4.6% QoQ, revenue from Travel & Hospitality and Technology, Media & Services grew by 2.2% QoQ and 2.3% QoQ, respectively. On the flip side, the BFSI vertical underperformed with revenue declining by 0.9% QoQ.

 

Aided by improved operational efficiency, EBITDA margin rose by 48bps QoQ to 15.9% (a marginal 13bps below our estimate). On YoY basis, margin rose by 80bps, with EBITDA in absolute terms up 36.6%. Owing to negative other income on forex loss, net profit declined by 7.3% QoQ to Rs1.9bn (11.6% below our estimate) Mindtree won deals worth US$256mn (-5.5% QoQ and +4.9% YoY).

11:38 AM

GE T&D India hits six month high; stock surges 41% in two months

Shares of electric utility company GE T&D India hit a six-month high of Rs 331, up 5 per cent on the BSE on Thursday. The stock was trading at its highest level since June 22, 2018. In the past two months, GE T&D India rallied 41 per cent on reports that the company has won Rs 162 crore contract from Power Grid Corp of India for a substation at Thoothukudi in Tamil Nadu and for extension of substation at Bhuj in Gujarat. The contract is likely to be completed by March 2020. Read more

11:24 AM

SBI-led consortium of lenders likely to bag biggest stake in Jet Airways

Even as the talks between Jet Airways and its lenders are learnt to have reached a stage of finality, the Naresh Goyal-led company issued an official statement to scotch any speculation around its foreign partner Etihad offering to raise its stake at a steep discount. READ MORE

11:14 AM

5paisa Capital shares locked in 5% upper circuit at Rs 279.30 

11:03 AM

S&P BSE Oil and Gas index is trading nearly 1% higher

10:59 AM

Top gainers and losers on S&P BSE Sensex

10:38 AM

Reliance Industries gains for third straight day ahead of Q3 results

Shares of Reliance Industries (RIL) were trading higher for the third straight trading session, gaining 1.2 per cent to Rs 1,148 apiece on the BSE on Thursday in an otherwise range-bound market ahead of its December quarter (Q3FY19) result today. In the past three trading sessions, RIL has risen 5 per cent, as compared to 1.3 per cent rise in the S&P BSE Sensex. Since October 17, 2018, after the September quarter (Q2FY19) results, RIL had underperformed the market by falling 4.5 per cent, against 3 per cent rise in the benchmark index till Monday. Read more

 

10:27 AM

Reliance Securities on TCS  

 

Rating:  Buy 

Target Price: Rs 2,190

 

TCS 3QFY19 revenue rose 1.8% QoQ in CC terms, while EBIT margin declined 90bps QoQ owing to higher wage costs and SG&A expenses. From a vertical perspective, Life Sciences & Healthcare (+2% QoQ), Energy & Utilities (+2.9%) and Regional Markets & Others (+2.3%) saw decent growth in USD terms. The IT major won US$5.9bn in TCV in 3QFY19, up by more than 20% QoQ, implying a book-to-bill ratio of 1.12x (0.94x in 2QFY19). Digital crossed 30% of total revenue in 3QFY19 (28.1% in 2QFY19), up 7.8% QoQ in CC terms. We expect the IT major to clock double digit growth in FY20E. High payouts (100% of FCF) in the form of share buybacks, plus improving business visibility will ensure the stock remains at elevated valuations. We have a BUY rating on TCS with a TP of Rs2,190.  

 

10:24 AM

Top gainers on BSE500

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
INDIABULLS INTEG	348.65	16.60	5.00	188
SOBHA	482.00	20.05	4.34	2406
RAJESH EXPORTS	609.00	18.95	3.21	19228
ASHOKA BUILDCON	134.55	4.00	3.06	8335
DR LAL PATHLABS	1043.50	29.20	2.88	2692

10:20 AM

Return on equity for Nifty firms slip to record low of 12.9% in January

The return on equity (RoE) ratio for top listed companies continues to deteriorate despite the uptick in earnings growth. The average RoE for the top 50 listed firms, which are a part of the Nifty, has declined to a record low of 12.9 per cent, against 13.6 per cent last year. The ratio was 15.5 per cent in January 2015 and 23.1 per cent in December 2007, on the eve of the big market correction of 2008. In the last one year, the index companies’ underlying earnings per share has risen 3.5 per cent from Rs 401 in January 2018 to around Rs 415 now. Read more