MARKETS ON FRIDAY: Sensex hits 35k intraday; trims gains to end 256 pts up

Sensex hits 35,000 levels in intraday trade, led by gains in banking stocks. In corporate results, Maruti reported FY18 net at Rs 77.21 billion. Stock ended 1.9% lower at Rs 8,778 levels

1:46 PM

Jewellers see 10% export growth in FY19 after 5% decline in FY18

After a five per cent decline in FY18, jewellers believe there would be a 10 per cent jump in India’s gem and jewellery export for the current financial year. They point to demand from new markets, depreciation in the rupee against the dollar and increases in diamond prices. READ MORE

1:30 PM

PSU banks rally; Nifty PSU Bank index up 5%

Shares of public sector undertaking (PSU) banks were in focus with Nifty PSU Bank index gaining 5%, its sharpest intra-day gain during past one month on the National Stock Exchange (NSE). READ MORE

1:16 PM

Sebi puts plans to allow MFs to be sold via passporting on the back-burner

The Securities and Exchange Board of India (Sebi) has put its plans to allow Indian mutual funds (MFs) to be sold through ‘passporting’ on the back-burner. Passporting would have allowed domestic schemes to be sold in Asian countries without the need for regulatory clearance in the host country.

 

The regulator is worried about excessive inflows into MFs and fears that being part of such an agreement will bring in additional foreign money into Indian mutual fund schemes, making them more susceptible to sudden outflows, sources said. READ MORE

1:00 PM

Lodha Developers files DRHP for IPO, aims to raise Rs 53 billion

Mumbai based property developer Lodha has filed draft red herring prospectus for its IPO. The IPO aims to raise between Rs 50 billion to Rs 53.50 billion, sources said. The issue comprises issue of fresh shares worth Rs 37.50 billion and an offer for sale (OFS) of 18 million shares by the promoters. READ MORE

12:47 PM

FOMC meeting—key expectations by Morgan Stanley

 

We look for no change in the target range of the federal funds rate in its May 01 - 02 meeting, following the 25bp increase to 1.50%-1.75% at the March meeting.

By the time of its May meeting, the FOMC will have the 1Q GDP data in hand.

Despite a weak start to the year, GDP has clearly been held down by transitory factors and we believe a rebound is in the cards. Since the March meeting, the incoming inflation data have confirmed the expected rebound as last year's telecom price reset rolled out of the 12-month window. We believe March data on core PCE inflation, released April 30, will show an annual rate of 2.0%—touching the Fed's 2% goal for the first time since spring 2012.

12:45 PM

Trader's guide to India elections says it is time to buy equities

Indian stocks have been roughed up along with most markets in recent months, but there could soon be reason to cheer. National elections are due by 2019, and modern history shows that tends to be a good thing for investors.

 

While Prime Minister Narendra Modi faces an uphill battle to sustain his party’s majority in the key lower house of parliament, the past six elections show positive returns for Indian equities over the two years that straddle the vote — regardless of whether power changed hands. READ MORE

12:30 PM

Indian Hotels stock: Lower debt, higher room revenues to aid margin

The Indian Hotels stock has gained 20 per cent over the past month on expectations that demand growth, presence in the higher growth premium segment, improving margins and debt reduction will reflect on operational performance. Given the improving industry dynamics and strong outlook, brokerages are positive on the prospects. The reason for the positive stance is the improving demand-supply situation, reflected in higher occupancy levels. READ MORE

12:19 PM

Emerging markets performance tied to oil price surge, says Nomura

If the crude oil prices continue to go up, there could be variations in the performance of emerging markets (EMs). Markets such as Saudi Arabia, Brazil and Russia could gain at the expense of oil importers such as India, the Philippines and Indonesia. READ MORE

12:05 PM

Market Check

 

S&P BSE Sensex	34,933.49		0.63%
Nifty 50	10,678.85		0.57%
S&P BSE 200	4,693.83		0.59%
Nifty 500	9,435.30		0.58%
S&P BSE Mid-Cap	16,889.19		0.62%
S&P BSE Small-Cap	18,280.01		0.64%

11:44 AM

TOP CONTRIBUTORS TO SENSEX'S GAIN TODAY

COMPANY	LATEST	CHG(RS)	CHG(%)	FREE FLOAT MKT CAP (RS CR)	CONTRIBUTION (POINTS)
ICICI BANK	289.15	10.40	3.73	149832.07	72.63
AXIS BANK	519.00	24.45	4.94	73182.24	48.94
ST BK OF INDIA	245.05	11.70	5.01	71541.97	43.69
RELIANCE INDS.	994.95	19.60	2.01	176731.30	41.98
MARUTI SUZUKI	9125.00	177.20	1.98	61497.20	28.32

11:35 AM

STOCK WATCH Axis Bank rises 5% despite weak Q4 results

Shares of Axis Bank were up 5% at Rs 522 per share on the BSE despite the private sector lender reporting its first net loss of Rs 21.8 billion for the quarter ended March 2018 (Q4FY18), as non-performing assets (NPAs) soared and provisions for bad loans surged three times over the corresponding quarter last year CLICK HERE FOR MORE

11:28 AM

IIFL on Sterlite Technologies Limited (STL)

Going forward, the rising capex from telecom companies to improve network infrastructure, Government’ BharatNet program and smart city projects would be the key growth drivers for STL. With order book driven by high margin products, blended operating margins are likely to remain elevated at >20% levels over next few years. Post the recent correction in share price, the stock is trading at attractive valuations. We upgrade our rating to BUY for target price of Rs.406 (15x FY20E EV/EBITDA)

11:26 AM

Morgan Stanley on YES Bank

Our price target of Rs400 is derived using a base case residual income model with three phases: a five-year high-growth period, a 10-year maturity period, and a declining period. We use a cost of equity of 13.6% assuming a risk-free rate of 7.25%, a market risk premium of 5.5% and a beta of 1.15 respectively. We use a terminal growth rate of 6.0%.

Downside risks : Slower-than-expected loan and fee income growth, sharp compression in NIM, poor macro conditions, which would impair asset quality, higher-than-expected second-order impact from RBI actions , structural increase in provisioning due to the RBI’s dynamic provisioning policy .

11:23 AM

Rupee outlook by Elara Capital

With US 10 year yield hovering around 3%, and US Dollar Index at 91.56 level compared to calendar year low of 88.39, Rupee is likely to remain under pressure in the near term with a possibility of USDINR touching 68 if the US yields jump higher from the current levels and oil prices sustain.

However, we continue to believe that the recent weakness in the Rupee is getting amplified by the developments in the global space and hence there would be some respite in store in the medium term supporting a retracement of Rupee to a level closer to 66 to the US Dollar by Q2FY19

11:22 AM

Edelweiss on Tajas Networks

Although the company has maintained its FY17-20 revenue CAGR guidance of 20%, we are building in 14.4% CAGR due to low visibility and potential demand challenges in overseas business. Accordingly, we cut FY19/20E revenue and earnings by 17.2%/14.6% and 20.7%/15.7%, respectively.

We also lower our target multiple to 20x (from 23x) to factor in volatility in revenue. However, we believe that the company’s business model is well suited to benefit from strong order flow led by increasing fibre investments. Maintain ‘BUY’ with revised target price of Rs 396