MARKET WRAP: Sensex, Nifty end over 1% lower; Indiabulls Housing tanks 13%

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3:52 PM

Sectoral gainers & losers on NSE

3:52 PM

BSE Sensex: Top gainers & losers 

3:13 PM

Bharat Hotels, Spandana Sphoorty get Sebi's approval to float IPOs

 

With this, the total number of companies getting Sebi's clearance to launch initial share-sales has reached 60 so far this year. READ MORE

3:00 PM

FPIs dump banks, mutual funds lap up metals in September quarter

 

FPIs dumped banking shares, pouring money into utilities and NBFCs instead. MFs, on the other hand, were big buyers of metals and consumer discretionary shares, and were marginal sellers of media and utilities firms, shows an analysis by ICICI Securities. The value of holdings of FPIs and MFs dropped 9.4 per cent and 8.3 per cent, respectively, during the September quarter — more than 6.4 per cent drop in the benchmark Nifty. FPI outflows during stood at Rs 10 billion. Read More

2:45 PM

NIIT Technologies gains 6% on healthy Q2 results

 

Shares of NIIT Technologies has moved higher by 6% to Rs 1,214 on the BSE in an otherwise subdued market after the company reported a strong 29% sequential growth in its consolidated net profit at Rs 1,167 million in September quarter (Q2FY19). The information technology company had reported a profit of Rs 904 million in the same quarter last fiscal. Revenue during the quarter under review grew 10% at Rs 9,074 million over the previous quarter. Read More

2:30 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,002.87	-159.61	-0.45
S&P BSE SENSEX 50	10,997.87	-76.53	-0.69
S&P BSE SENSEX Next 50	30,737.00	-606.57	-1.94
S&P BSE 100	10,737.27	-94.94	-0.88
S&P BSE Bharat 22 Index	3,338.91	-32.60	-0.97

2:15 PM

WEB EXCLUSIVE TCS or Infosys: Which is a better bet post Q2 results?

 

Tata Consultancy Services (TCS) and Infosys have announced their respective September 2018 quarter results in the past few days. The numbers were aided by robust demand environment in BFSI and digital segments, a ramp-up in deal signings and rupee depreciation. While TCS maintained its broad-based performance across the segments and geographies, Infosys made a good comeback after a weak June 2018 quarter. The company reported deal wins of over $2 billion, which was one of the highlights of Q2 results. READ MORE

Parameter	TCS	YoY change (%)	Infosys	YoY change (%)
PAT	Rs 79.01 bn	23	41.10 bn	10
Revenue	Rs 368.54 bn	20.7	206.09 bn	17
Operating Margin	26.50%	up 1.4%	23.70%	down 2% YoY

2:00 PM

8K Miles, Dilip Buildcon, Finolex Industries hit 52-week lows

 

Shares of 8K Miles Software Services, Dilip Buildcon, Finolex Industries, Kwality, Essel Propack and Repco Home Finance from the S&P BSE 500 index hit their respective 52-week lows on the BSE in an otherwise firm market on Tuesday.

 

8K Miles Software Services was locked in the lower circuit for the third straight day, down 5% at Rs 112 on the BSE. There were pending sell orders for 474,478 equity shares on the NSE and BSE. READ MORE

1:45 PM

This is how the Modi govt is planning to meet the fiscal deficit target

 

Prime Minister Narendra Modi’s government asked state-run companies to buy back shares as it seeks to raise as much as Rs 200 billion ($2.7 billion) to meet the fiscal deficit target, according to people familiar with the matter. Oil & Natural Gas Corp. (ONGC), NMDC Ltd., Indian Oil Corp.(IOC) and Oil India Ltd.(OIL) are among companies that have been asked to repurchase shares, the people said asking not to be named as the information is not public. A decision on the pricing has been left to boards, they said. Read More

1:30 PM

Volatility singes market debutants in 2018; over 70% firms trading in red

 

The recent volatility in the markets has impacted the performance of companies that made a debut this year on the bourses. Seventeen, or a little over 70 per cent of the 24 companies that listed in 2018, are trading in the red, shows data collated from Prime Database, a primary market tracker. ICICI Securities and Apollo Micro Systems are the worst performers, with negative returns of 55 per cent and 59 per cent, respectively. Read More

1:15 PM

S&P BSE Sensex top gainers and losers

1:00 PM

Hero MotoCorp banking on festive season, rural demand to boost growth

 

While it has not been a great start to the festive season, Hero MotoCorp indicated that demand is reviving. The company expects sales growth in the festive season to be in the 8-10 per cent range. Hero, which posted volume growth of 5.5 per cent year-on-year in the September quarter, is banking on higher rural growth and new launches to improve volumes. Read More

12:45 PM

Prabhudas Lilladher Report on Infosys

 

Rating: BUY  

CMP: Rs 695  

TARGET PRICE: Rs 790

 

Led by solid revenue growth in 2QFY19, we raise Infosys USD revenue growth assumptions to 7.6/9.5% for FY19/FY20E (vs 6.7/8.5% modeled earlier)). To achieve 7.6% USD revenue growth for FY19E, Infosys would need to achieve 2% CQGR over the remaining two quarters. Infosys showed record TCV signing of USD2029mn in 2QFY19 (vs USD731mn in 2QFY18) led by large deal wins. We believe Infosys could be back on revenue momentum and narrow growth differential with TCS (We modeled 10% USD revenue growth for TCS for FY19E).

 

12:30 PM

Prabhudas Lilladher Report on South Indian Bank

 

Rating: BUY 

CMP: Rs 15  

TARGET PRICE: Rs 22

 

SIB’s earnings were relatively better in light of Kerala floods with flat NII growth on back of sustained loan growth of 15-16% YoY and controlled opex. Lower trading income continues to impact other income & PPOP, while MTM dispensation over four quarters has been also keeping provisions on higher side. Floods in Kerala did not hurt asset quality as was envisaged earlier with slippages of Rs 2.13bn coming in lower than expectations but in-line with trends.

12:15 PM

Infosys: Lower cost pressure, digital business may aid profit margins

 

The September quarter (Q2) results of Infosys indicate the company may be seeing a turnaround in its growth trajectory. While this is a positive, Infosys will need to do a lot more to win back investor confidence. After three quarters of dismal performance as compared to TCS, Infosys reported healthy revenue growth of 4.2 per cent in constant currency (CC) terms on a sequential basis on Tuesday, after market hours, ahead of TCS’ 3.7 per cent. Read More

12:01 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,258.20	+95.72	+0.27
S&P BSE SENSEX 50	11,090.71	+16.31	+0.15
S&P BSE SENSEX Next 50	31,102.51	-241.06	-0.77
S&P BSE 100	10,833.25	+1.04	+0.01
S&P BSE Bharat 22 Index	3,374.46	+2.95	+0.09

11:45 AM

Sebi may dial Centre to intercept calls for checking insider trading

 

The Securities and Exchange Board of India (Sebi) wishes to intercept telephone calls and electronic communications of those it suspects of offences in the markets it monitors, such as insider trading. Acting on recommendations made by a committee on fair market conduct, headed by former law secretary T K Vishwanathan, it has approached other law enforcement agencies for details of a needed legal framework, said a source. He adds that a proposal in this regard would be going to the Union ministries of finance and home. Read More

11:30 AM

NBFCs under pressure; Repco Home, DHFL, Indiabulls Housing down over 5%

 

Shares of non-banking financial companies (NBFCs) mainly housing finance companies (HFCs) were under pressure with Repco Home Finance, Dewan Housing Finance Corporation (DHFL), Indiabulls Housing Finance and Edelweiss Financial Services falling more than 5% on the BSE in an otherwise firm market. Can Fin Homes, PNB Housing Finance, Cholamandalam Investment and Finance Company, Mahindra & Mahindra Financial Services, Shriram Transport Finance Company, Ujjivan Financial Services, Reliance Capital and Centrum Capital were down in the range of 2% to 4%. Read More

11:15 AM

Prabhudas Lilladher Report on Federal Bank

Rating: BUY 

CMP: Rs 82 

TARGET PRICE: Rs 102

 

FB’s earnings of Rs 2.66bn (PLe: Rs2.37bn) was better than expected mainly on beat from strong PPOP growth of 20% YoY. Operating performance was helped by better NII growth of 14% YoY, supported by 12% growth in other income and controlled opex growth of 8% YoY. We retain 'BUY' with revised TP of Rs 102 (from Rs 119) based on 1.5x Sep-20 ABV as we lower our estimates on margins and increase credit cost, while also increase cost of equity assumptions.

11:01 AM

Nifty FMCG index up 1.31% led by Dabur

10:55 AM

Prabhudas Lilladher Report on Hero Motocorp

 

Rating: ACCUMULATE  

CMP: Rs 2,895  

TARGET PRICE: Rs 3,385

 

Hero MotoCorp’s (HMCL) Q2FY19 operating margins stood at 15.2%, lower 220bps YoY and 40bps QoQ (marginally missing PLe of 15.4%), owing to gross margin decline of 110bps YoY, staff cost as a % of sales rising 20bps YoY as well as other expenses as a % of sales increasing 100bps YoY. Revenue growth for the quarter stood at 8.6% YoY to Rs 90.9bn (PLe:Rs89.8bn), on the back of volume growth of 5.4% YoY and realisations inching up 1.6% YoY. We maintain ‘Accumulate’ with a price target of Rs 3,385 based on 17x Mar’20 EPS. At the current price, the stock is trading at 16.2x FY19E and 14.5x FY20E EPS.

10:45 AM

More embarrassment for crippled IL&FS as Ind-Ra downgrades its MF schemes

 

Crippled IL&FS group on Tuesday faced more embarrassments after India Ratings downgraded its various mutual fund schemes and placed them on a rating watch negative (RWN).  

 

The agency downgraded three series-1, three series- 2 and two series -3 mutual fund schemes of the group "due to the deterioration in the underlying portfolio quality of the schemes due to its exposure to IL&FS group entities". READ MORE

10:31 AM

Markets likely to slip; not the right time to bottom fish in NBFCs

 

Rising oil prices amid a sliding rupee are some of the headwinds that the markets have been facing off-late. Jitendra Gohil, head of India equity research at Credit Suisse Wealth Management tells Puneet Wadhwa that compared to the other emerging markets (EMs), they have underperform view on India.

 

Investors, he says, should also stay away from equities for the next three – four months. Read full interview here

10:15 AM

Infosys gains 3% post September quarter earnings

 

Shares of Infosys was up 3.5% to Rs 721 on the BSE in early morning trade after the company reported a mixed performance with a strong revenue beat but disappointing margin performance for the second quarter of the current financial year 2018-19 (FY19). Read more

10:00 AM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,382.96	+220.48	+0.63
S&P BSE SENSEX 50	11,120.60	+46.20	+0.42
S&P BSE SENSEX Next 50	31,247.25	-96.32	-0.31
S&P BSE 100	10,865.65	+33.44	+0.31
S&P BSE Bharat 22 Index	3,381.80	+10.29	+0.31

9:45 AM

PSBs facing another muted quarter due to NPA provisioning, funding costs

 

After every quarter of disappointing performance in the past, investors had hoped that the worst may be behind for bad loan-ridden public-sector banks (PSBs). But, it seems they may have to wait for another quarter, at least. Despite some expected moderation in slippages, the September 2018 quarter (Q2) is also expected to be relatively muted thanks to sustained provisioning pain and high funding costs. Read More

9:31 AM

Infosys Q2 results: EBIT, status quo on guidance for FY19 worry analysts

IT bellwether Infosys on Tuesday reported Q2 results mostly in line with Street expectations with PAT (profit after tax) coming in at Rs 41.10 billion, up 10 per cent on YoY basis and 13 per cent on QoQ. Revenues for the period rose 17.3 per cent YoY to Rs 206.09 billion. In constant currency (CC) terms, the revenue growth was 8.1 per cent. Sequentially, revenue grew 7.7 per cent in rupee terms and 4.2 per cent in CC terms. Read More

9:23 AM

Sectoral trend on NSE

9:21 AM

S&P BSE Sensex top gainers and losers

9:18 AM

Markets at open

At 9:18 am, the S&P BSE Sensex was trading at 35,544, up 382 while the broader Nifty50 index was ruling at 10,6969, up 111 points