MARKET WRAP: Sensex snaps 8-day rally, falls 222 pts, Nifty ends at 11,457

All that happened in markets today

3:47 PM

Sectoral gainers and losers on NSE

3:46 PM

Top gainers and losers on S&P BSE Sensex

3:36 PM

MARKET AT CLOSE

The S&P BSE Sensex ended 222 points or 0.58 per cent lower at 38,165 while NSE's Nifty50 index dropped 64 points or 0.56 per cent to settle at 11,457. 

3:21 PM

Axis Bank jumps 20% this year, analysts see more upside ahead. Here's why

The bank recently hosted an analyst day where the management reiterated its objective of delivering an 18 per cent return on equity (RoE). ROE is a measure of a company’s annual return i.e. net income divided by the value of its total shareholders’ equity. It is expressed as a percentage. READ MORE

2:54 PM

Nifty PSU Bank index is trading 1.3% lower

2:52 PM

Indiabulls Real Estate trading 6% lower

2:42 PM

PFC acquires govt stake in REC for Rs 14,500 crore

State-owned Power Finance Corporation Limited (PFC) has acquired the Centre’s 52.63% paid-up share capital in Rural Electrification Corporation (REC) Limited for Rs 14,500 crore. READ MORE

2:36 PM

GVK to aquire ACSA's stake in Mumbai airport company

GVK Power and Infrastructure Limited (GVK PIL) on Friday informed stock exchanges that its step-down subsidiary GVK Airport Holdings Limited has initiated the process to acquire 120 million shares of Mumbai International Airport Limited (MIAL). READ MORE

2:22 PM

All the Nifty sectoral indices except Nifty Realty are trading in the red

2:04 PM

Market check

1:53 PM

ITC surpasses HUL to reclaim title of most valuable FMCG company in m-cap

ITC reclaimed the top stop in the list of India's most-valued fast moving consumer goods (FMCG) company in terms of market capitalistaion (market-cap) after a gap of five months by surpassing Hindustan Unilever (HUL). At 12:48 pm, ITC stood fourth with the market-cap of Rs 364,921 crore, while HUL took the fifth spot in the overall ranking with market-cap of Rs 364,466 crore, BSE data shows. READ MORE

1:43 PM

Brokerage upgrades, REIT IPO help Prestige Estates, Phoneix Mills gain

Prestige Estates and Phoenix Mills were among the key gainers in the realty pack over the last ten days appreciating in the range of 10-23 per cent. In addition to brokerage upgrades, recent steps taken by the Goods and Services Tax council, steady commercial real estate market and good response to the maiden real estate investment trust (REIT) public offering have helped players in the commercial segment. READ MORE

1:26 PM

New entrants 'disrupting' equity broking industry, says HDFC Securities

The equity broking industry is getting disrupted with the rapid rise of discount brokers such as Zerodha, says a note by HDFC Securities. The trend is likely to continue with the growing customer base of discount brokers and the announced entry plan of PayTM Money. READ MORE

1:14 PM

Sectoral trends on NSE

1:02 PM

Prestige Estates Projects gains over 9%

12:51 PM

Top losers on BSE500

COMPANY	PRICE(rs)	CHG(rs)	CHG(%)	VOLUME
NMDC	108.00	-5.70	-5.01	353040
VA TECH WABAG	338.20	-16.85	-4.75	25498
DILIP BUILDCON	643.00	-29.25	-4.35	62419
MAHINDRA HOLIDAY	241.70	-7.85	-3.15	2122
RELIANCE CAPITAL	184.00	-5.85	-3.08	830111

12:43 PM

Short duration schemes are seeing an uptick in investor inflows: Experts

The fall in short-term rates is helping debt schemes (non-liquid schemes) regain some of their sheen, with investors seeing opportunity in short duration schemes. According to mutual fund (MF) players, these schemes have seen an uptick in investor flows in the last couple of months as the Reserve Bank of India’s (RBI’s) recent measures are pointing to a 'dovish' stance. READ MORE

12:28 PM

Prabhudas Lilladher on NOCIL

Nocil is well placed to capitalise on this demand as completion of Phase 2 expansion will double its capacity (1,10,000 tons by October 2019, nearly 10% of global capacity) as global tyre players are eyeing more non-Chinese supplies. Nocil is confident of maintaining 25 per cent EBIDTA margins in the medium term despite removal of duty protection. Retain Buy with target price of Rs 252 based on 15x FY21E PER.

12:21 PM

NEWS ALERT | Former cricketer Gautam Gambhir joins BJP: TV reports

12:13 PM

Check out the top gainers on BSE

SPICEJET	99.05	+7.40	+8.07
JUSTDIAL	637.50	+29.05	+4.77
RCOM	5.07	+0.23	+4.75
TAKE	128.80	+5.70	+4.63
GODREJPROP	845.00	+34.15	+4.21

(Source: BSE)

11:58 AM

Reliance Securities on Apollo Tyres

• We foresee Apollo Tyre’s operating performance to improve further going forward with the likely improvement in volume and product-mix. Moreover, softening commodity price would benefit in coming quarters. The company is positive on replacement demand though OEM business would remain muted for a while. 
• Anti-dumping duty in Europe started benefitting ATL in Europe. Ramp-up at European operation and inter-transfer of production would improve its margins from the current level. 
• We expect double-digit earnings growth of 19 per cent CAGR over FY19EFY21E on positive outlook across segments in India operations. 
• Considering Apollo Tyres' (ATL) outperformance in tyre industry and improving market share, we maintain its P/E valuation multiple at 12x. 
• Post recent fall, the stock’s current valuation of ~11xFY21E appears attractive and we recommend BUY on Apollo Tyre with a Target Price of Rs 250, valuing the stock at 12x FY21E EPS. 

11:50 AM

Maruti Suzuki extends fall on production cut report; down 7% in four days

Shares of Maruti Suzuki (India) were trading lower for the fourth straight day, down 2 per cent at Rs 6,567 in intra-day trade on the National Stock Exchange (NSE). It was 4 per cent away from its 52-week low price of Rs 6,317, touched in January 28, 2019. READ MORE

11:46 AM

EXCLUSIVE :: CLSA's Wood remains 'double-overweight' on India; sees Modi return to power

There has been $3.3 billion of net buying of Indian equities by foreign investors since an opinion poll was released on March 4, showing a big increase in support for the Bharatiya Janata Party (BJP) following the airstrikes on February 26 in Balakot in Pakistan. The BJP is now expected to get 41 of the 80 seats in India’s most populous state of Uttar Pradesh (UP), compared with the 29 seats expected by the same opinion poll in January READ MORE HERE

Christopher Wood, Managing Director & Equity Strategist, CLSAChristopher Wood, Managing Director & Equity Strategist, CLSA

11:44 AM

Equirus Securities on Maruti Suzuki

MSIL’s volume growth has been tepid over the last eight months, and we don’t see any growth trigger for next year as well due to (a) the company’s weak model pipeline, and (b) new products from competition, which can impact hatchback and compact UV sales. Apart from Baleno (now seeing volume stabilization), other models sold through Nexa channel remains a challenge for the company.

Growth rates in North India — a significant booster in FY18 for the industry & MSIL alike — are normalizing and won’t make up for the slowdown in the South and West. We expect MSIL to deliver sub-5% volume growth in FY19 and merely 5% in FY20. We cut FY19/FY20 volumes estimates by 1%/2% and EPS by 1%/3% while revising our rating to SHORT (from REDUCE) with a Mar’20 target price of Rs 5,881 (Rs 6,065 earlier).

Maruti Suzuki Swift

 

11:42 AM

Prabhudas Lilladher on Aurobindo Pharma

We met Aurobindo Pharma at their Hyderabad office and came back confident on management initiatives to address quality control issues and de-risking product, operational and geographical risks.  ARBP's success in achieving resolution three times in past 18 months showcased commitment and cohesive organizational structure that professionally manages processes without dependence on key personnel.

The stock trades at PE 15x and 13x of FY20E and 21E, respectively and has a few inexpensive valuations among peers. With earnings growth of 19% in FY20E and 16% in FY21E, we believe that the prospect of the company in key markets along with visibility of pipeline (including acquired businesses/products) are not yet reflected in valuations, as compared to its peers. However, we believe that a large part of valuation gap was attributed due to lack in India formulations. Factoring lack of significant presence in India, we value ARBP at 20% discount to its peers and retain TP at Rs 952 (PE 16x of FY21E). We maintain 'Buy'.

11:41 AM

COMMENT :: Kotak Securities on US Fed meeting

Growth concerns and low inflation have prompted the Fed to signal status quo through 2019 and also fade the balance sheet contraction. While this could lead to some weakness in the dollar in the near term, sharp gains in EM currencies may be capped because of global growth uncertainties. With the Fed on hold, the RBI can focus solely on domestic factors. We continue to see scope for further 25-50 bps of rate cuts in CY2019 given the benign domestic growth-inflation dynamics.

11:40 AM

Heatmap: S&P BSE Sensex

11:27 AM

Hindustan Petroleum down over 2%

11:24 AM

NEWS ALERT | Alembic Pharma gets USFDA approval for Azelastine Hydrochloride Ophthalmic Solution, 0.05%

11:17 AM

MARKET COMMENT :: Ajay Bodke, CEO, PMS Prabhudas Lilladher

If global crude oil prices remain rangebound then a weakening USD, expectations of aggressive monetary easing by the RBI, end of the provisioning cycle for NPAs by the banking system & likely recoveries over the next 2 years aiding surge in profits as also revival in corporate earnings in high-teens on a conservative basis over FY 20 & FY21 will spur strong performance by Indian equities. A decisive mandate on 23rd May 2019 by the Indian electorate will strongly bolster the upward trajectory.