MARKET WRAP: Sensex dips 61 pts, Nifty at 10,524; SBI up 4% post Q2 result

State Bank of India rose 3.8 per cent to Rs 296.10 after the country's largest PSU bank reported a net profit of Rs 944.87 crores in the September quarter

3:53 PM

SBI ends 3.77% up post declaration of Q2 results

3:50 PM

Sectoral performers on NSE

3:48 PM

BSE Sensex gainers and losers of the day

3:41 PM

Market at close

The S&P BSE Sensex ended at 34,951, down 61 points (-0.17 per cent), while the broader Nifty50 index settled at 10,524, down 29 points (-0.27 per cent).

3:25 PM

Stock Impact: SBI gains 4% after posting Q2 net profit at Rs 944.87 crores vs loss of 4875.85 crores in June quarter

3:20 PM

NEWS ALERT SBI's Net Profit comes in at Rs 944.9 crores

3:05 PM

NEWS ALERT IGL reports Q2 net profit at Rs 187.28 crores vs Rs 168.87 crores year-ago

2:57 PM

Cipla records sharpest fall in one year post Q2 results; stock down 8%

 

Shares of Cipla dipped 8% to Rs 558 on the BSE after the pharmaceutical company posted an 11% decline in its consolidated net profit at Rs 3.77 billion for the September quarter (Q2FY19). It had reported a profit of Rs 4.23 billion in the year-ago quarter. The stock recorded its sharpest intra-day fall in since November 7, 2017. Read more

2:42 PM

Devangshu Datta Vital to maintain GST numbers

 

Car sales are a good indicator of economic health. Buying a vehicle is a big-ticket expense. The auto industry has a very long value-chain. Automobile manufacturing drives demand for primary metal miners, plastics, electronics, forgings, cables, rubber, etc. Since manufacturers are basically assemblers, there is a large ecosystem of OEM suppliers. Read more 

2:30 PM

KEI Industries up 25% in three days on healthy Q2 results

Shares of KEI Industries have moved higher by 6% to Rs 384 per share, surging 25% in past three trading days, after the company reported a healthy 45% growth in net profit at Rs 414 million in September quarter (Q2FY19). It had a profit of Rs 285 million in the year-ago quarter.
 

The company’s net sales during the quarter under review grew 33% at Rs 9.97 billion, against Rs 7.49 billion in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortization) margin was stable at 10.2%. READ MORE

2:17 PM

NEWS ALERT GAIL reports better-than-expected September quarter result; natural gas EBIT rises 27.3% at Rs 894 cr Vs Rs 703 cr (QoQ)

2:14 PM

Market Check

S&P BSE Bharat 22 Index	3,464.97	-6.57	-0.19
S&P BSE 100	10,786.11	-39.19	-0.36
S&P BSE SENSEX Next 50	31,875.58	+9.78	+0.03
S&P BSE SENSEX 50	10,986.28	-47.62	-0.43
Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,888.10	-123.55	-0.35

2:09 PM

NEWS ALERT Jet Airways jumps 7% amid reports that Tata group aims to buy Jet's promoter's stake

2:00 PM

Earnings preview: SBI Q2 profit may fall 80%; provisions to remain elevated

State Bank of India (SBI) is scheduled to announce its September quarter results on Monday. After reporting a net loss of Rs 48.75 billion for Q1FY19 (April – June 2018), SBI is expected to post profit for the quarter under review. However, the numbers are likely to be lower on year-on-year (YoY) basis. Analysts at Sharekhan, for instance, see 81 per cent drop in net profit at Rs 3 billion. Emkay Global, too, expects the profit to come in at Rs 9.2 billion, down nearly 42 per cent YoY. READ MORE

1:45 PM

EARNINGS IMPACT

1:40 PM

NEWS ALERT Bosch India Q2: PAT at Rs 4.19 bn vs Rs 3.53 bn YoY

1:31 PM

Despite softening of 10-year G-secs, time not ripe for taking duration bets

The 10-year government bond yield has softened from its 52-week high of 8.23 per cent to 7.80 per cent currently. Many investors want to know if yields would soften further and whether it is time to increase duration bets.

 

A number of factors have brought about the recent softening of the 10-year benchmark yield. READ MORE

1:24 PM

Prabhudas Lilladher on GlaxoSmithKline Consumer Healthcare

 

Rating: HOLD  

CMP: Rs 7119 

TARGET PRICE: Rs 8520

 

We increase our FY19 and FY20 EPS estimates by 15% and 12.3% led by 1) double digit volume growth in 1H19 in core MFD business and 2) benign input costs (deflation of 5% in 2Q) and Mgt guidance to maintain gross margins at the current levels. We expect sales momentum to continue given 1) uptick in rural demand 2) success of Horlicks Protein Plus in fast growth protein segment 3) encouraging response of Boost RTD in TN and 4) 20%+ growth in Sachets (9% of sales). Though prices of Barley and wheat have firmed up, GSK expects only 2-3% input cost inflation in FY19 as it has forward covers till FY19.

1:13 PM

India Inc's Sept quarter earnings a mixed bag: Here're the hits and misses

India Inc’s second scorecard has been a mixed bag. Of the 34 Nifty companies that have announced results so far, 19 have met or exceeded profit estimates, shows Bloomberg data.

 

However, there have been more earnings downgrades than upgrades. In other words, the number of companies where analysts have revised lower full-year 2018-19 earnings estimates has been more than the number of companies where earnings estimates have been upgraded. Overall, the aggregate Nifty companies’ earnings estimates for 2018-19 has been lowered by around 3 per cent to Rs 528. READ MORE

1:00 PM

S&P BSE Sensex top gainers and losers

12:52 PM

MUST READ Stocks that could add sparkle to your portfolio in Samvat 2075

In the past one year, though Nifty 50 has given a return of around 3 per cent, BSE Midcap and BSE Smallcap have plummeted 8 and 15 per cent, respectively. The positive returns of Nifty50 were largely driven by just 5 stocks i.e. Infosys, TCS, Reliance Industries, ICICI Bank and HDFC Bank. The carnage in mid-and small-cap stocks was caused mainly by mutual funds’ selling owing to new categorization of MF schemes, GSM/ASM circular of SEBI and change in equity taxation. In addition, liquidity crisis led by IL&FS default, was extended to other NBFCs, which were already reeling under increasing interest rate environment CLICK HERE FOR MORE

12:50 PM

Venky's India slips 10% on disappointing Q2 results

 

Shares of Venky’s India has slipped 10% to Rs 2,541 per share on the BSE in afternoon deals after the company reported 80% year-on-year (Y-o-Y) drop in its net profit at Rs 55 million in September quarter (Q2FY19). It had a profit of Rs 271 million in the year-ago quarter and Rs 710 million in the previous quarter.The net profit during the quarter was the lowest in the past two years. Read more

12:48 PM

Edelweiss on Coal India Limited (CIL)

The October production was significant as for the first time in FY19 production has caught up with off take volumes. YTDFY19, MCL’s volume has remained static; however, with operational disruptions out of the way, we expect volume uptick.

We expect this to benefit non-regulated sectors on one hand and CIL on the other as e-auction sales volume (more profitable) is also likely to rise. Q1FY19 e-auction sales volume was fairly low at 13% (compared to 17-20%) and we expect Q2FY19 to follow suit. However, production uptick will help CIL get e-auction volume back on track.

We expect CIL to reap operating leverage benefits from sustained volume uptick as operating issues at key subsidiaries subside. Going by past, H2 is expected to be even better.  We maintain ‘BUY/SO’ with target price of INR325 (exit multiple of 11.7x EPS)

12:47 PM

Anand Rathi on Kewal Kiran Clothing

In H1 FY19 Kewal Kiran’s net revenue grew ~4% y/y, to `2,582m. The EBITDA margin expanded 417bps to 26.8%. The RoCE improved 386bps to 30% up from 26% last year. However, due to vigorous expansion in LFS and e-commerce, the cash-conversion cycle lengthened to 144 days, from 103 in FY18. The recent fall in the stock price lead us to upgrade our rating to a Buy, with a revised target of Rs 1,704.

12:46 PM

Emkay Global on Aditya Birla Fashion and Retail

We remain positive on management's initiatives for improving product offering and profitability in existing formats and leveraging its brands in new categories. We estimate a 30% EBITDA CAGR over FY19-21 and believe that new categories can potentially provide more upside. Maintain Accumulate with a target price  of Rs200 (from Rs190), rolling forward to Sep'20E EV/EBITDA.

12:45 PM

Currency watch (Image source: Religare report)

12:32 PM

Worst rout of sovereign bonds in 7 years may end with RBI's Rs 860 bn binge

With India’s central bank emerging as the biggest buyer of government debt, some traders are calling time on a rout that’s lasted more than a year and sent benchmark yields soaring to a four-year high.

 

The Reserve Bank of India bought 860 billion rupees ($11.8 billion) of bonds between May and October, and plans to inject 400 billion rupees this month to replenish liquidity drained by its currency defense and a seasonal cash crunch. The purchases will help shrink the supply of paper for the fiscal second-half by 80 percent from a year earlier, according to estimates by Nomura Holdings Inc. READ MORE

12:17 PM

Top losers in BSE 500:

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
VENKY'S (INDIA)	2602.00	-218.95	-7.76	58975
DEWAN HSG. FIN.	213.10	-17.40	-7.55	2370022
SUN TV NETWORK	617.00	-46.40	-6.99	210843
INDIABULLS HOUS.	813.55	-57.65	-6.62	529186
T.V. TODAY NETW.	375.00	-23.20	-5.83	53184

12:02 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,878.72	-132.93	-0.38
S&P BSE SENSEX 50	10,985.30	-48.60	-0.44
S&P BSE SENSEX Next 50	31,775.27	-90.53	-0.28
S&P BSE 100	10,780.17	-45.13	-0.42
S&P BSE Bharat 22 Index	3,463.97	-7.57	-0.22

11:54 AM

Motilal Oswal on Cadila Healthcare

 

CMP: Rs 359 

TARGET PRICE: Rs 430 

RATING: Buy

 

We cut our FY19/20 EPS estimate by 2%/6% to Rs 17.5/Rs 18.3 to factor in incremental competition in potential molecules in US market and increased interest cost associated to the Heinz brand acquisition. We continue valuing CDH at a P/E multiple of 22x, at a 10% discount to its three-year average to factor in a higher base and ongoing price erosion in US business. We roll our target to 12M forward earnings to arrive at a price target of Rs 430 (prior: Rs 440). We remain positive on CDH, considering its robust ANDA pipeline for US market, minimal regulatory hurdles, and outperformance versus industry in DF market. Maintain Buy.