MARKET WRAP: Sensex falls 425 pts, Nifty settles at 10,944 weighed by autos

All that happened in the markets today

3:44 PM

Sectoral losers on NSE

3:38 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 36,546, down 425 points or 1.15 per cent, while the broader Nifty50 index settled at 10,944, down 126 points or 1.14 per cent.

3:20 PM

EARNINGS IMPACT

3:18 PM

NEWS ALERT

Dilip Buildcon Q3 net profit at Rs 208.6 crore vs Rs 165 crore year on year (YoY)

3:12 PM

Top gainers and losers on S&P BSE Sensex

2:59 PM

Sony stock jumps after first-ever share buyback announcement

Sony Corp announced its first-ever major share buyback on Friday, worth 100 billion yen ($910 million), helping its stock recover from a hammering days earlier when investors freaked over lacklustre earnings.

 

The announcement marked Japan's second major buyback this week after tech investor SoftBank Group Corp scheduled the repurchase of 600 billion yen in shares using proceeds from the IPO of its telecoms unit, sending its stock price soaring. READ MORE

2:48 PM

Anand Rathi Financial Services on Century Plyboards

We like Century Plyboards for its diversified product portfolio, leadership positions in key productsegments and disciplined balance sheet. At the CMP, the stock is attractivelyvalued (12.5x, 8.4x FY21e P/E, EV/EBITDA), considering a 24% PAT CAGR overFY18-21 and RoE crossing 20%. We maintain our Buy rating on it. Risks: Rising input costs, currency fluctuations.

2:31 PM

Motilal Oswal on Vodafone Idea

CMP: Rs 32 

TARGET RICE: Rs 40  

RATING: Buy

 

Network integration remains a gigantic task. But, we believe its proven execution capabilities with strong promoter backing should assist IDEA to sail through near-term headwinds through asset sale and fund raise. Maintain Buy, with a reduced TP of Rs 40 (prior: Rs 43), ascribing 11x to FY21E EBITDA of Rs 13,500 cr.

2:20 PM

Nifty Realty index is trading over 1% higher

2:12 PM

Motilal Oswal on Axis Bank

CMP: Rs 729 

TARGET PRICE: Rs 850  

RATING :Buy

 

Axis Bank has delivered a strong performance with multi-quarter high earnings. With a capable management team in place and an improving credit cost/margins outlook, we believe the bank is likely to see earnings acceleration in the coming years. Axis Bank has already increased PCR to 75%, which should curb incremental provisioning requirement. We, thus, expect RoA/RoE to improve to 1.3%/16.1% by FY21. We roll forward our estimates to FY21 and revise our target price to INR850 (2.5x FY21E ABV for the bank + Rs 44 per share for subsidiaries). We reiterate AXSB as one of our top Buys in the banking sector.

1:59 PM

M&M and MVML Q3 net profit jumps 60% to Rs 1,476 cr, operating margin falls

Mahindra & Mahindra and its subsidiary Mahindra Vehicle Manufacturers reported a 60 per cent YoY rise in their consolidated net profit at Rs 1,476 crore for third quarter (October-December) of FY19. Revenue for the quarter rose 14 per cent to Rs 13,235 crore, against Rs 11,594 crore in the year-ago quarter. Operating margin stood at 13.2 per cent against 14.7 per cent reported in the corresponding quarter last fiscal. READ MORE

1:52 PM

STOCK IMPACT

M&M slips over 2% post Q3 results

1:48 PM

NEWS ALERT

Mahindra & Mahindra Q3 Profit after tax at Rs.1,476 crore up by 60% from Rs 920 crores year ago

1:45 PM

Nifty Metal index is trading 2% lower

1:37 PM

Siemens India impresses with growth; cheap valuations make stock attractive

Siemens India seems to have benefitted from earlier setbacks. The engineering major announced its December quarter (Q1; fiscal year starts from October) on Wednesday and made it public that the European Commission (EC) has rejected the proposed merger of the mobility businesses of its German parent, Siemens AG and France’s Alstom SA. READ MORE

1:21 PM

Khadim India tanks 15% on weak Q3 results; falls 49% from issue price

Shares of Khadim India hit a new low of Rs 382 apiece, down 15 per cent on the BSE in intra-day trade on Friday, after the footwear company reported a weak set of numbers for the quarter ended December 2018 (Q3FY19). The stock was trading at its lowest level since its listing on November 14, 2017. It plunged 49 per cent from its issue price of Rs 750. READ MORE

1:10 PM

JLR to revamp Chinese retail network after 35% sales slump hits Tata Motors

Jaguar Land Rover owner Tata Motors Ltd. shocked investors on Thursday by writing down the value of its investment in the British carmaker by $3.9 billion -- mainly because of problems in its Chinese business.

 

Things haven’t gone well in the world’s biggest automobile market, based on an investor presentation posted to the JLR website. Sales dropped by 35 percent in the country for the nine months ended in December, sending Tata Motors shares down as much as 30 percent. READ MORE

12:50 PM

Too little, too late: Why experts not happy with RBI's rate cut gift to PM?

The Reserve Bank of India's (RBI) surprise decision to cut interest rates for the first time in 18 months on Thursday is a pre-election stimulus gift from a compliant central bank for Prime Minister Narendra Modi.

 

But businesses and farmers - and even some of his own supporters - say it may be too little, too late to help the economy ahead of voting, which must be held by early May. READ MORE

12:49 PM

Top losers on BSE500

COMPANY	PRICE(rupees)	CHG(rupees)	CHG(%)	VOLUME
TATA MOTORS	149.00	-33.90	-18.53	5786823
TATA MOTORS-DVR	80.30	-14.10	-14.94	1015833
VODAFONE IDEA	30.30	-1.95	-6.05	1128980
UNION BANK (I)	74.10	-4.65	-5.90	700803
INDIABULLS INTEG	236.90	-13.85	-5.52	5942

12:27 PM

Nifty Auto index is trading over 3% lower

12:17 PM

Reliance Securities on Cadila Healthcare

RATING: BUY

CMP: Rs 323

Target Price: Rs 400

 

We believe that Cadila Healthcare's long-term fundamentals continue to remain intact on the back of rich pending product pipeline (including high-value products in the US). Looking ahead, we expect ramp-up in CDH’s US business led by new product launches (including trandermal products). We are triming down our earning estimates by 11% for FY20E to factor in lower India sales. We maintain our BUY recommendation on the stock with a revised Target Price of Rs 400 (from Rs 450 earlier).

12:15 PM

Reliance Securities on Majesco

CMP: Rs 501

RATING: BUY

Target Price: Rs 675

 

Majesco’s organic growth was un-enthusing in 3QFY19 with the entire revenue growth being acquisition-led. A positive is continued traction in Cloud revenue, which now contributes 41.7% to total revenue including implementation and subscription. A near-term risk would be the IBM Metlife deal going live in the next two quarters, which would lead to a drop in implementation revenue, even as subscription revenue will take time to scale-up to offset loss in the former. Nonetheless, we believe Majesco is building a strong Cloud business offering long-term revenue visibility along with potential for operating leverage, which is getting reflected in adjusted EBITDA margin. We continue to believe industry fundamentals including greater third- party software adoption by insurers remain on track. We maintain our BUY recommendation on the stock with an unchanged Target Price of Rs 675.

12:03 PM

Market check

11:53 AM

MRF hits 52-week low on disappointing December quarter earnings

Shares of MRF slipped 4 per cent to Rs 57,097 apiece on BSE in the intra-day trade on Friday after the company posted 18 per cent decline in net profit at Rs 279 crore for December quarter (Q3FY19), due to higher other expenses. It had reported a profit of Rs 341 crore in a year-ago quarter. Operational revenue grew 6 per cent at Rs 4,034 crore against Rs 3,799 crore during the corresponding quarter of previous fiscal. READ MORE

11:39 AM

Bata India, Titan, Tech Mahindra, Divis's Lab hit new highs in weak market

Shares of Bata India, Titan Company, Tech Mahindra and Divi’s Laboratories from the S&P BSE 500 index hitting their respective new highs on the BSE in an otherwise weak market. The benchmark S&P BSE Sensex was trading 0.67 per cent lower at 36,724 points at 10:42 am. Bata India was up 2 per cent to Rs 1,216 ahead of the board meeting on Tuesday, February 12, 2019, to consider December 2018 (Q3FY19) results. READ MORE

11:27 AM

Top gainers and losers on S&P BSE Sensex

11:08 AM

Top losers on BSE500

COMPANY	PRICE(rupees)	CHG(rupees)	CHG(%)	VOLUME
TATA MOTORS	151.20	-31.70	-17.33	3963462
TATA MOTORS-DVR	79.85	-14.55	-15.41	765471
VODAFONE IDEA	30.00	-2.25	-6.98	749634
SUZLON ENERGY	3.73	-0.27	-6.75	2041587
DEWAN HSG. FIN.	108.00	-7.10	-6.17	2197357

11:03 AM

Prabhudas Lilladher on Indraprastha Gas

Rating: BUY 

CMP: Rs 300

TP: Rs360

 

We maintain our FY19/20E earnings. IGL remains a play on rising pollution concerns. Expanding geographical reach coupled with increased cars/taxis conversion and new bus addition in Delhi will drive earnings. Also, report of ban on competing industrial fuel is a major positive. Reiterate “BUY” with a three-year DCF-based PT of Rs 360.

11:00 AM

Prabhudas Lilladher on JSW Steel

Rating: BUY 

CMP: Rs 279 

TP: Rs 360

 

JSW Steel (JSTL) reported Q3FY19 earnings in line with our expectations. Due to tepid exports (down 70% YoY), overall sales volume fell 7.3% YoY/7.1% QoQ to 3.68mn (PLe:3.95mn) tonnes (t). Share of exports fell to 10% against 30%/17% in Q3FY18/Q2FY19. However, weaker than expected volumes were offset by better than expected realisations and lower costs. Exports continued to remain a cause of concern for the Indian steel sector. However, we believe that firm domestic demand and positive outlook on global steel prices would offset the shrink in export volumes. The recent fall in steel prices do not drive us to change our structural bullish call on the sector and we rather see it short term blip to correct abnormal margins. We reiterate our structural theme of Chinese discipline focused on profitability that will help to gain price momentum in FY20e. Led by strong earnings growth and efficient operations, we continue to like JSTL.