Markets snap 8-session rally; Nifty settles below 10,150 ahead of Fed meet

All that happened in Tuesday's trade

4:04 PM

Vinod Nair, Head of Research, Geojit Financial Services

 

Market ended on a flat note as investors turned more cautious on account of the US Fed policy meeting. Also, the concern on valuation and lack of supportive cues to outpace the resistance influenced investors to book some profit.

3:53 PM

Sensex heatmap at close

Source: BSE

3:49 PM

Market breadth 

The market breadth, indicating the overall health of the market, turned negative. On the BSE, 1,310 shares declined and 1,295 shares rose. A total of 162 shares were unchanged.

3:47 PM

Broader markets outperform 

The BSE Smallcap gained 0.3%, while the BSE Midcap added 0.1%. 

3:38 PM

Markets at close

The Sensex settled at 32,402, down 21 points, while the broader Nifty50 closed at 10,147, down 5 points. 

3:27 PM

Volatility index

India VIX rises marginally (up 0.2%) to 11.46.

Source: NSE

3:16 PM

European markets 

European shares opened slightly lower as traders awaited clues from a Federal Reserve meeting on its plans to move towards unwinding its $4.2-trillion portfolio of Treasuries and mortgage-backed securities.

 

Despite Wall Street reaching new highs yet again, shares in Europe followed Asia’s overnight caution with the pan-European STOXX index down 0.2%, but still in range of six-week highs. German DAX traded lower by 0.09% at 12,546 levels, French CAC 40 slipped 0.16% at 5221 levels and IBEX 35 slipped 0.17% at 10,321 levels.

3:11 PM

Orient Bell, Asian Granito hit new high

 

Shares of ceramic tiles maker were in focus in an otherwise range-bound market. Orient Bell, Murudeshwar Ceramics, Asian Granito India, Nitco, Kajaria Ceramics and Somany Ceramics were up in the range of 4% to 14% on BSE. READ MORE

3:04 PM

Markets check 

At 3:00 pm, the Sensex was trading at 32,419, down 4 points, while the broader Nifty50 was ruling at 10,151, down 1 points. 

2:55 PM

ICICI Lombard IPO gets fully subscribed

 

Indian insurer ICICI Lombard's initial public offering of shares to raise as much as 57 billion rupees ($888.40 million) was fully subscribed early on the last day of the sale on Tuesday, stock exchange data showed. READ MORE

2:34 PM

Buzzing stocks 

Shares of four state-run gas transmission and distribution firms rose 1.13% to 2.33% at 12:55 IST on BSE after a global research firm reportedly presented a positive view on the sector. 

 

GAIL (India) rose 2.33% to Rs 410. Indraprastha Gas rose 2.02% to Rs 1,469.20. Petronet LNG rose 1.13% to Rs 236.75. Gujarat State Petronet rose 1.42% to Rs 200.10. READ FULL REPORT

2:15 PM

Top five gainers on Nifty

Source: NSE

2:01 PM

Reliance Securities on CDSL

 

CDSL’s business is characterised by a high degree of predictability and profitability, with the company earning >35% of revenue from annual issuer charges in FY17, which are likely to remain stable-to-growing.

 

The company has steadily gained market share in its core business vis-à-vis its lone competitor, NSDL and has enjoyed higher incremental market share 4 successive years on low operating cost, net worth criteria and technology investment. 

 

CDSL has also invested in new business initiatives to drive growth, including KYC services, National Academic Depository, insurance repository services, e-voting to corporates, online drafting solutions, KYC search assistance for Aadhaar holders and GST Suvidha Provider. 

 

At the CMP, the stock trades at a PE of 29.5x/26.4x FY19E/FY20E EPS, respectively.   

 

We have a BUY rating on CDSL with a Target Price of Rs 450, which implies a PE of 35x average of FY19E and FY20E EPS.

1:44 PM

Broader markets rebound

 

The BSE Midcap and the BSE Smallcap indices rebounded to add 0.3% and 0.5%, respectively. 

1:36 PM

Markets check 

 

At 1:30 pm, the Sensex was trading at 32,426, up 3 points, while the broader Nifty50 was ruling at 10,151, down 1 points. 

1:22 PM

Buzzing stocks 

Graphite India, Himachal Futuristic Communications (HFCL), Centrum Capital, Apex Frozen Foods and Liberty Shoes are among 19 stocks that beat the Sensex after institutional investors, mutual funds and high networth individuals (HNIs) bought shares. READ FULL REPORT

1:04 PM

Ideal portfolio mix by Mayuresh Joshi 

 

When the equity markets across the globe are at an all-time high, I am reminded of the old adage ‘Do not put all your eggs in one basket’ The dilemma surrounding the timing of making an investment in a complex, dynamic environment, clobbered by geo-political escalations but aided aptly by abundant liquidity makes decision-making even more onerous. READ FULL ARTICLE HERE 

12:47 PM

Is rupee depreciation a good idea to perk up economy?

 

Given the resource crunch of the Centre and the states as well as the limitations of monetary policy tools, depreciating the rupee against the dollar to boost economic growth, which fell to 5.7 per cent in the April-June quarter, is an idea that has found favour among economists. The idea had been broached by former chief economic advisor Shankar Acharya.  However, the economists say it could be just a limited option. READ FULL ANALYSIS

12:31 PM

Buzzing stock

 

Tide Water Oil (India) hit a record high of Rs 6,809, up 5% on the National Stock Exchange (NSE) in intra-day trade, extending its previous day’s 16% rally after Standard Greases and Specialities Private Limited, a joint promoter acquired stake in the company through open market. READ MORE

12:16 PM

Infosys inks 7-yr service pact with CMA CGM Group

 

Infosys, India’s second largest IT services provider, has signed a technology outsourcing deal with French container shipping major CMA CGM Group that mandates it to open a local delivery centre at Marseille  ( the port city of France) for delivering services. READ FULL REPORT

12:00 PM

Top picks in a bull market

 

The scaling of a new high by a broader index, such as the Nifty 50 (the S&P BSE Sensex is not far from its all-time high) is a reflection of the elevated investor sentiment and confidence of the Street. While some market experts say the rally in the stock markets is liquidity-driven, others believe it is already factoring in strong earnings growth, moving forward. Many also believe that the markets are being complacent in assuming possible risks. In this backdrop, stock-picking has become even more important. CLICK HERE FOR STOCK PICKS 

11:42 AM

Buzzing stock 

Swan Energy gained nearly 5% to Rs 161 after the company executed agreement with Mitsui OSK Lines for its FSRU port project at Jafrabad, Gujarat.

11:24 AM

Edelweiss Securities on TCS

 

Key highlights of our recent interaction with Tata Consultancy Services’ (TCS) management are: 1) sustained softness in BFSI and retail stemming from lower discretionary spending by large banks and online transition by large retailers, respectively; and 2) strong growth in rest of business (RoB) spearheaded by broad-based spending. 

 

We believe, given substantial contribution of BFSI and retail segments (32.9% & 12.2%) to TCS’ revenue, overall growth in Q2FY18 is likely to remain subdued. Moreover, by virtue of traditionally being a first half revenue-driven company, overall FY18 growth too is likely to be muted. The anticipated soft revenue coupled with rupee strengthening is likely to lead to muted earnings growth in spite of strong execution and offerings. 

 

Maintain ‘HOLD’ with target price of Rs 2,315. 

11:13 AM

Buzzing stock 

 

Shares of Jaypee Group companies were under pressure with Jaiprakash (JP) Associates down more than 20% and Jaypee Infrastructure locked in lower circuit of 5% for the second straight day. CLICK HERE FOR DETAILS 

10:51 AM

Nitin Gadkari says NHAI IPO is 'in process'

 

The central government might decide to list the National Highways Authority of India (NHAI) on the stock exchanges, as a way to bypass the need for bank funding. And, perhaps also use the engineering, procurement and construction (EPC) model for financing road construction, said Nitin Gadkari, the minister in charge. READ FULL REPORT

10:39 AM

Broader markets turn flat

 

The BSE Midcap and the BSE Smallcap indices pared morning gains and were trading on a flat line. 

10:33 AM

Markets pare gains 

 

At 10:30 am, the Sensex was trading at 32,360, down 62 points, while the broader Nifty50 was ruling at 10,132, down 21 points. 

10:24 AM

Buzzing stock 

InterGlobe Aviation shed 2% to Rs 1,138 after a share sale by the company, which runs the IndiGo airline, raised Rs 3,790 crore ($591 million), based on the final issue price announced on Monday. 

10:16 AM

Equinomics on Balmer Lawrie Company Ltd (BLC)

 

We expect BLC to consistently improve its EPS consistently from Rs.14.95/ in FY2017 to Rs.17/ in FY2018 and further to Rs.19/ in FY2019 due to aggressive expansion plans and anticipated turnaround in the industrial economy. Considering its net cash position, which is 19% of its current market cap and company’s rich real estate asset base, we assign a PE of 15.2x on FY2019E EPS of Rs.19/ and arrive at a target price of Rs.289/, Hence, we recommend a BUY on the stock with a conservative target price of Rs.289/. In case, the company is divested completely, then the stock could become a multi-bagger in the long run

10:13 AM

Fundamental view: Tata Global Beverages

 

Tata Global Beverages Limited (TGBL) is world’s second largest branded Tea company with growing interest in Coffee and water. It has a global footprint and present in 40 countries.  The company posted muted topline growth in Q1FY18 with 2% drop however adjusting for adverse forex movement; there was actually an underlying growth of 1%. Despite, the muted topline, the company posted healthy profits on the back of softer raw material prices, efficient cost management.

 

The stock has underperformed the broader markets for long time however the management is bringing back focus into portfolio of business. Hence, given the restructuring activities taken by the company and improving business prospects the stock is likely to catch up the valuation gap with other consumer players. At Rs 212, the stock is trading at 24.8x FY19E as compared to 34.0x Dabur and 42.4x Britannia. The stock can be bought for 15-20% gain in the near term.

 

 

(Source: Nirmal Bang)