MARKETS ON MONDAY: Nifty ends above 10,700, Sensex up 293 pts; metals gain
Markets gained ground on Monday, tracking Asian peers, after tepid US jobs data on Friday
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Markets gained ground on Monday, tracking Asian peers, after tepid US jobs data on Friday eased fears of faster rate hikes by the US Federal Reserve (US Federal Reserve).
The S&P BSE Sensex ended at 35,208, up 293 points while the broader Nifty50 index settled at 10,715, up 97 points.
The S&P BSE Sensex ended at 35,208, up 293 points while the broader Nifty50 index settled at 10,715, up 97 points.
The US jobs report for April showed unemployment dropping to a 17-1/2 year low of 3.9 per cent but wages barely improved, suggesting the US Fed would keep raising rates but at a gradual pace. However, analysts said crude oil prices and the rupee would be the other key factors affecting markets going ahead.
Among sectoral indices, the Nifty Metal index was up 1.5 per cent led by a rise in shares of Welspun Corp and Jindal Steel & Power. The Nifty Realty index also rose over one per cent, led by gains in Godrej Properties and DLF.
OIL PRICES
US oil rose above $70 a barrel for the first time since November 2014 as traders braced for a re-imposition of US sanctions on Middle East crude producer Iran.
Futures in New York and London jumped as much as 1.4 percent. While President Donald Trump has threatened he’ll pull out of a deal between Iran and world powers as a May 12 deadline nears, he’s signaled he’ll be open to negotiation. The 2015 accord eased sanctions on OPEC’s third-largest member in exchange for curbs on its nuclear program, and renewed American measures may stifle the Middle East nation’s crude exports.
GLOBAL MARKETS
Asian shares crept higher on Monday after a tame reading on US wages lowered the risk of faster rate hikes by the Federal Reserve, although Sino-US trade tensions and a looming deadline for the Iranian nuclear deal argued for caution.
The week ahead also has important readings on the health of the Chinese economy, and hence global demand, as well as the latest data on US consumer price inflation.
The MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 per cent, while Japan’s Nikkei was flat, and Australian stocks added 0.3 per cent.
(with inputs from Reuters)
(with inputs from Reuters)
3:40 PM
Nifty Metal index climbs 1.68%. Top gainers:
| COMPANY | LATEST | PREV CLOSE | GAIN() | GAIN(%) |
| WELSPUN CORP | 150.00 | 140.25 | 9.75 | 6.95 |
| JINDAL STEEL | 255.75 | 240.65 | 15.10 | 6.27 |
| S A I L | 74.95 | 72.35 | 2.60 | 3.59 |
| JSW STEEL | 326.70 | 317.40 | 9.30 | 2.93 |
| HINDALCO INDS. | 237.80 | 231.35 | 6.45 | 2.79 |
3:37 PM
Nifty PSU Bank index ends 2.18% higher. Top gainers:
| COMPANY | LATEST | PREV CLOSE | GAIN() | GAIN(%) |
| INDIAN BANK | 321.35 | 310.00 | 11.35 | 3.66 |
| BANK OF BARODA | 143.55 | 139.90 | 3.65 | 2.61 |
| CANARA BANK | 262.05 | 255.60 | 6.45 | 2.52 |
| PUNJAB NATL.BANK | 93.65 | 91.55 | 2.10 | 2.29 |
| ALLAHABAD BANK | 48.30 | 47.25 | 1.05 | 2.22 |
3:35 PM
Sectoral gainers and losers of the day
3:33 PM
BSE Sensex: M&M, ICICI Bank top gainers of the day, Coal India top loser
3:31 PM
Market at close
The S&P BSE Sensex ended at 35,208, up 293 points while the broader Nifty50 index settled at 10,715, up 97 points.
3:26 PM
Suven Life up 6% as Pashamylaram's unit completes USFDA inspection
Suven Life Sciences has moved higher by 6% to Rs 192 on the BSE in noon deal after the company’s Pashamylaram’s unit successfully completed the United States Food and Drug Administration (USFDA) inspection.
So far Suven Life Sciences has filed 19 DMF’s (Drug Master File) and 5 ANDA’s (Abbreviated New Drug Application) from this facility which is FDA complaint under Current Good Manufacturing Processes (cGMP) and continued after renewal inspection. READ MORE
3:15 PM
Reliance Infra surges 8% after bagging Versova-Bandra Sea Link contract
Shares of Anil Dhirubhai Ambani Group (ADAG) companies were in focus, trading higher by up to 8% on the BSE on back of heavy volumes.
Reliance Infrastructure, Reliance Power, Reliance Capital, Reliance Naval and Engineering and Reliance Communications were up in the range of 2% to 8% on the BSE. READ MORE
3:01 PM
Screen additions, ad growth, ticket prices bode well for PVR's FY19 show
India’s largest film exhibitor put out a strong March quarter performance, beating Street estimates on all counts. Revenues were up 19 per cent over the year-ago period. primarily on account of higher average ticket prices, which increased by 10 per cent, and 5 per cent more footfalls.
Footfalls on a comparable basis however fell by 2 per cent on account of a strike by South Indian film producers and issues concerning the release of Padmavat in certain states. Had it not been for the two issues, comparable footfalls would have been up 8 per cent. READ MORE
2:56 PM
INDEX WATCH
(Source: BSE)
| Index | Current | Pt. Change | % Change |
| S&P BSE SENSEX | 35,222.85 | +307.47 | +0.88 |
| S&P BSE SENSEX 50 | 11,217.45 | +96.88 | +0.87 |
| S&P BSE SENSEX Next 50 | 34,121.57 | +261.63 | +0.77 |
| S&P BSE 100 | 11,092.14 | +94.14 | +0.86 |
| S&P BSE Bharat 22 Index | 3,599.08 | +52.10 | +1.47 |
(Source: BSE)
2:55 PM
BS SPECIAL Sebi order on extending derivative trading: Key takeaways and challenges
In a move aimed at attracting investors dealing in Indian products on foreign exchanges in Singapore and Dubai, the Securities and Exchange Board of India (Sebi) on Friday allowed domestic stock exchanges to extend equity derivatives trading until 11.55 pm. Deven Choksey, managing director of KR Choksey Investment Managers, looks at the Sebi order and explains the key takeaways. READ MORE
In a move aimed at attracting investors dealing in Indian products on foreign exchanges in Singapore and Dubai, the Securities and Exchange Board of India (Sebi) on Friday allowed domestic stock exchanges to extend equity derivatives trading until 11.55 pm. Deven Choksey, managing director of KR Choksey Investment Managers, looks at the Sebi order and explains the key takeaways. READ MORE
2:53 PM
Reliance Securities on CEAT
We expect CEAT to witness a healthy traction over next two years on account of new capacities, favourable product-mix, sound distribution reach and trengthening brand equity. On the flip side, likely spike in input prices from 1QFY19 (as guided by the Management) led by recent surge in crude prices along with addition of large debts in B/S due to high capex in FY19E may prove to be major headwinds for CEAT in term.
In view of healthy business prospects, good management capability and valuation comfort post recent price correction, we maintain our BUY recommendation on the stock with a revised Target Price of Rs1,750 (from Rs1,850 earlier).
In view of healthy business prospects, good management capability and valuation comfort post recent price correction, we maintain our BUY recommendation on the stock with a revised Target Price of Rs1,750 (from Rs1,850 earlier).
2:51 PM
Prabhudas Lilladher on NIIT Technologies
NIIT Tech was our preferred midcap pick and stock was up 110% over past one year. The stock trades at 15.6x FY20E EPS (Mindtree/Hexaware trading at 21/17.5x FY20E EPS respectively). NIIT Tech has a robust vertical mix (Insurance, Travel and BFS) with marquee Top 20 clients. We believe increased aggression on sales can enable robust revenue momentum. Revise target price upwards by 30% to Rs 1140/sh (17.5x FY20E EPS vs 14x FY20E EPS earlier). Retain BUY.
NIIT Tech was our preferred midcap pick and stock was up 110% over past one year. The stock trades at 15.6x FY20E EPS (Mindtree/Hexaware trading at 21/17.5x FY20E EPS respectively). NIIT Tech has a robust vertical mix (Insurance, Travel and BFS) with marquee Top 20 clients. We believe increased aggression on sales can enable robust revenue momentum. Revise target price upwards by 30% to Rs 1140/sh (17.5x FY20E EPS vs 14x FY20E EPS earlier). Retain BUY.
2:50 PM
Edelweiss on Greaves Cotton
Greaves Cotton’s (GCL) Q4FY18 revenue and EBITDA surpassed our estimates 12% and 14%, respectively. However, PAT came in line. Key highlights: a) revenue grew 24% YoY led by spurt in the engines segment (volume up 30%); b) higher commodity prices continued to impact gross margin—down 160bps YoY. However, stringent cost control measures resulted in EBITDA margin expanding 70bps YoY; and c) net working capital to sales improved to 8%—best since FY10—largely led by bill discounting.
GCL continues to focus on transforming itself into a solution provider by pruning dependence on the engines business (currently 50% of revenue). However, most of the tie ups and initiatives are at a nascent stage and we continue to remain watchful w.r.t. ramp up of these businesses. Maintain ‘HOLD’ with target price of Rs 135
Greaves Cotton’s (GCL) Q4FY18 revenue and EBITDA surpassed our estimates 12% and 14%, respectively. However, PAT came in line. Key highlights: a) revenue grew 24% YoY led by spurt in the engines segment (volume up 30%); b) higher commodity prices continued to impact gross margin—down 160bps YoY. However, stringent cost control measures resulted in EBITDA margin expanding 70bps YoY; and c) net working capital to sales improved to 8%—best since FY10—largely led by bill discounting.
GCL continues to focus on transforming itself into a solution provider by pruning dependence on the engines business (currently 50% of revenue). However, most of the tie ups and initiatives are at a nascent stage and we continue to remain watchful w.r.t. ramp up of these businesses. Maintain ‘HOLD’ with target price of Rs 135
2:49 PM
Edelweiss on Godrej Properties
Godrej Properties (GPL) continued its strong run with Q4FY18 revenue growing 21% YoY and new sales, at INR10.5bn, surging 210% YoY. FY18 new sales at ~Rs 51bn surged ~152% YoY and were the highest ever for GPL. Project addition in FY18 also remained healthy (23.5msf vs. 18.1msf in FY17), while debt fell YoY on strong cash flows.
In light of robust growth momentum and increasing growth opportunities due to RERA driven consolidation in industry, GPL has entered into an agreement to raise ~Rs 10bn equity from an investor. Building in higher new project additions as well as dilution, our revised target price is Rs 857 (Rs 817 earlier). Maintain ‘HOLD’ due to limited near term upside
Godrej Properties (GPL) continued its strong run with Q4FY18 revenue growing 21% YoY and new sales, at INR10.5bn, surging 210% YoY. FY18 new sales at ~Rs 51bn surged ~152% YoY and were the highest ever for GPL. Project addition in FY18 also remained healthy (23.5msf vs. 18.1msf in FY17), while debt fell YoY on strong cash flows.
In light of robust growth momentum and increasing growth opportunities due to RERA driven consolidation in industry, GPL has entered into an agreement to raise ~Rs 10bn equity from an investor. Building in higher new project additions as well as dilution, our revised target price is Rs 857 (Rs 817 earlier). Maintain ‘HOLD’ due to limited near term upside
2:48 PM
Centrum Wealth on KPR Mill
We anticipate revenue and PAT CAGR of 13.9% and 25.1%, respectively, over FY18P-20E (vs earlier 15.7% and 25.4%). Given the certain stability in the raw material prices and better contribution from the garment division, we expect better operational performance (~20% FY19/20) to boost profitability. At the CMP, KPR trades at a P/E of 13.1x/10.6x on FY19E/20E basis. We maintain our view that KPR is a good long term portfolio stock. We value the stock at 14x FY20E EPS giving a target price of Rs 877
We anticipate revenue and PAT CAGR of 13.9% and 25.1%, respectively, over FY18P-20E (vs earlier 15.7% and 25.4%). Given the certain stability in the raw material prices and better contribution from the garment division, we expect better operational performance (~20% FY19/20) to boost profitability. At the CMP, KPR trades at a P/E of 13.1x/10.6x on FY19E/20E basis. We maintain our view that KPR is a good long term portfolio stock. We value the stock at 14x FY20E EPS giving a target price of Rs 877
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First Published: May 07 2018 | 3:30 PM IST
