MARKET WRAP: Sensex drops 423 points from day's high to close at 35,353

All that happened in the market today

3:44 PM

MARKET COMMENT :: Vinod Nair, Head of Research, Geojit Financial Services

Market opened on a positive note as transfer of interim dividend from RBI to government helped the indices to rebound after many days of correction. However, the reversal was short lived due to mixed global market & investors’ strategy to book profit on every rally. Albeit, rate sensitive sectors stand positive due to the stimulus measures from RBI and reforms by government

3:39 PM

Sectoral gainers and losers of the day on NSE

3:37 PM

Gainers and losers of the day on S&P BSE Sensex

3:34 PM

Market at close

The S&P BSE Sensex ended at 35,353, down 146 points or 0.41 per cent, while the broader Nifty50 index settled at 10,605, down 36 points or 0.34 per cent.

3:12 PM

Top losers on BSE500

COMPANY	PRICE(rs)	CHG(rs)	CHG(%)	VOLUME
KAVERI SEED CO.	409.75	-58.25	-12.45	563983
S H KELKAR & CO.	141.75	-9.95	-6.56	4079
IFB INDS.	736.25	-39.25	-5.06	955
NAVKAR CORPORAT.	37.50	-1.70	-4.34	18063
INDIABULLS VENT.	260.00	-11.20	-4.13	72014

2:54 PM

Web Exclusive| SpiceJet offers valuation comfort; best play among aviation stocks: Experts

Airline companies did not have much to cheer about in financial year 2018 – 19 (FY19) as rise in aviation turbine fuel (ATF) prices, depreciation in rupee and intense fare competition hit their financials and stock prices hard. In addition, troubles in individual companies such as Jet Airways (acquisition talks) and pilot shortage at InterGlobe Aviation (IndiGo’s parent) also added to their woes. READ MORE

 

2:37 PM

Voltas, GSK Consumer: 5 stocks that can slip 10% from the current levels

With markets remaining volatile since the past few days, there are five stocks that are witnessing added selling pressure and may continue to see more downside over the next few sessions.

 

GlaxoSmithKline Consumer Healthcare Ltd (GSK Cons), Monsanto India Limited, Ge T&D India Ltd, Tata Elxsi and Voltas are among the few stocks in the S&P BSE 500 index can see more sell-off, their technical chart pattern suggests. READ MORE

2:20 PM

R&D spin-off may help Glenmark Pharma to cut investment risks, reduce debt

Glenmark Pharma plans to spin off its research unit into a separate US-based subsidiary to de-risk its investments, bring down debt, and improve its focus on the base business. The innovation subsidiary, which will house both the conventional as well as the biomolecules, research and development centres, and about 400 employees, is likely to start operations as an independent entity in 2019-20 (FY20). READ MORE

 

2:04 PM

Market check

1:49 PM

NPA woes: India beats Italy to be world's worst non-performing loan ratio

India holds the dubious distinction of having the worst non-performing loan ratio among the world’s major economies, having surpassed Italy. The Reserve Bank of India said in December that the ratio for banks fell for the first time since 2015, though it’s still “high for comfort.” READ MORE

1:36 PM

Kaveri Seed extends fall on weak Q3 results; slips 8% to hit 52-week low

Shares of Kaveri Seed Company (KSCL) slipped 8 per cent to hit a 52-week low of Rs 431 on the BSE, falling 16 per cent in past four sessions after the company reported a weak set of numbers for the quarter ended December 2018 (Q3FY19).

The company engaged in agriculture products business posted 33 per cent year-on-year (YoY) decline in net profit at Rs 3.65 crore in Q3FY19, on account of lower sales. It had a profit of Rs 5.43 crore in the year-ago quarter. Net sales decreased 5 per cent to Rs 67.18 crore from Rs 70.64 crore in the corresponding quarter of previous fiscal. READ MORE

1:25 PM

Top gainers and losers on S&P BSE Sensex

1:05 PM

OMCs extend gains

12:50 PM

Motilal Oswal on Kaveri Seed

CMP: Rs 468 

Target Price: Rs 582 

Rating: Buy

 

view: Management guidance for cotton volumes in FY20 was robust at 7.2m packets (our estimate: 6.9m). We, nevertheless, cut our FY21 cotton volume estimate by 3% (keeping it same as that of FY20) due to lower visibility, which translates into an 8% earnings cut for FY21. The downside to our estimate is the non-renewal of KSCL’s license by the Andhra Pradesh government (got suspended recently for a year), which can impact FY20 revenue by 6-7%. Given this uncertainty, which might restrict the company from taking advantage of a likely positive cotton season in FY20, we cut our multiple from 17x to 15x (~10% discount to its three-year average multiple). We, however, find comfort from the company’s reducing dependency on cotton business, with non-cotton share likely to rise up to 55% in FY21. Our TP of INR582 implies a 24% upside on FY21E EPS. Maintain Buy.

12:40 PM

Web Exclusive | IL&FS Engineering, Punj Lloyd among 314 stocks trading below face value

A sharp fall in small-cap segment has seen the number of stocks trading below their face value rise to 314 at the bourses from 132 a year ago and 269 at the beginning of calendar year 2019 (CY19). Reliance Naval and Engineering, IL&FS Transportation Networks, Essar Shipping, Punj Lloyd and Shriram EPC are among the 51 stocks that have slipped below their face value in past one-and-a-half months alone. READ MORE

Illustration by Binay Sinha

12:21 PM

Nifty Realty index is trading over 2% higher

12:06 PM

Top gainers on BSE500

COMPANY	PRICE(rs)	CHG(rs)	CHG(%)	VOLUME
EMAMI	405.90	50.85	14.32	588472
WELSPUN CORP	99.00	8.70	9.63	165480
PRESTIGE ESTATES	216.65	11.35	5.53	45476
TEJAS NETWORKS	126.00	6.45	5.40	17223
INOX LEISURE	279.00	13.70	5.16	5257

12:02 PM

MARKET CHECK

11:46 AM

Investors' concerns over PFC's acquisition of REC may finally end

With Power Finance Corporation (PFC) acquiring the government’s entire stake of 52.85 per cent in REC, many investors were worried. The concerns were over the capital position of PFC, which would weigh on its loan book growth and profitability. READ MORE

 

11:30 AM

Emami surges 15% after promoters sell 10% stake to pare debt

Shares of Emami surged 15 per cent to Rs 407 apiece on the BSE after the promoters of the personal products company divested 10 per cent stake in the company for Rs 1,600 crore to reduce the debt. The sale was executed in the stock exchanges on Monday and was sold to SBI Mutual Fund, Premji Invest, Amundi, IDFC, L&T Mutual Fund and others. READ MORE

 

11:17 AM

Voltas misses Street estimates on slack sales of cooling products

The sales of Voltas’ unitary cooling products, especially air conditioners (ACs), continued to disappoint, resulting in the company missing estimates in the December quarter (Q3). With the weather conditions remaining pleasant and the sales of ACs not picking up during the first half of FY19, high-channel inventories impacted its sales in the December quarter, too, say analysts. READ MORE

 

11:13 AM

NEWS ALERT | Care Ratings revises debt rating of Tata Motors to AA from AA+; outlook stable, according to TV reports

11:00 AM

Tata Sons increases stake in Tata Motors to restore investor faith

Tata Sons has bought 11.8 million shares of Tata Motors in tranches from last Monday to Friday, according to block deal data. The transaction — the second one in less than a year — is seen as an effort to restore investor faith in the company following a dismal performance by its UK subsidiary, Jaguar Land Rover Automotive. READ MORE

 

10:47 AM

Web Exclusive| 9 Nifty500 stocks that can rally from the current levels as per MACD levels

Despite the sharp fall of nearly 4.4 per cent in the Nifty50 index from its recent peak of 11,118 levels, there are nine stocks that are still showing a positive trend as per the MACD (moving average convergence and divergence) indicators.

 

Dilip Buildcon (DBL), Oberoi Realty, Bandhan Bank, YES Bank, SUN TV, Muthoot Finance, DCM Shriram, Future Consumer and Phoenix Ltd can gain ground over the next few sessions, charts indicate. READ MORE

10:31 AM

Valuations attractive: JP Morgan paints rosy outlook for emerging markets

With the chances growing that the US and China will resolve their trade dispute and the dollar likely to weaken as the Federal Reserve stays on hold, the outlook for emerging-markets stocks is looking rosier. That’s the conclusion that JPMorgan Asset Management reached in a report published this month, adding that emerging markets are still in mid-cycle, despite a slowing economic momentum globally. Another point in their favor: valuations have become “quite attractive” after last year’s rout. READ MORE

10:22 AM

Nifty PSU index is trading over 1% higher

10:14 AM

Balrampur Chini extends gain on strong Q3 result; stock hits 52-week high

Shares of Balrampur Chini Mills hit a 52-week high of Rs 124 apiece, up 3 per cent, gaining 22 per cent in the past two weeks on the BSE, after it reported strong earnings for the quarter ended December 2018 (Q3FY19).

 

The company posted 96 per cent year-on-year (YoY) growth in net profit at Rs 120 crore in Q3FY19, on back of healthy performance by distillery and cogeneration segment. It had reported a profit of Rs 61.42 crore in the same quarter last year. Operational revenue however, declined 6 per cent at Rs 941 crore on YoY basis. READ MORE

9:58 AM

Market check

9:51 AM

Antique Stock Broking on Ashok Leyland

Rating: BUY

CMP: Rs 80

Target Price: Rs 98

 

We have reduced our EBITDA estimates by 4%/13%/20% for FY19/20/21 due to a weaker volume outlook and increasing cost pressures. We have a BUY on AL with a revised price target at INR98 (earlier INR 148), factoring in 10x FY21e core EV/EBITDA (earlier 12x FY21e core EV/EBITDA).

9:46 AM

Rise in pledged shares by promoters puts Dalal Street on the edge

Promoters of India Inc continue to rely heavily on share pledging to raise debt for funding their core and non-core business activities. According to the data analysed from Capitaline, the promoters pledged more than Rs 1.2 trillion worth of shares in 2018-19, 60 per cent higher than the previous year’s tally.

 

So far in 2019, more than Rs 16,000 crore worth of shares has been pledged by the promoters. The data analysis takes into account the value of shares reported by the listed companies to the exchange as part of their pledge creation disclosures. READ MORE