MARKET WRAP: Sensex ends 284 points higher, Nifty at 10,768; midcaps shine
Mid-cap, small-cap stocks outperform. Among sectoral indices, the Nifty Realty index surged nearly 3% on Thursday, led by Unitech and Prestige Estates Projects
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The markets ended higher on Thursday after the Reserve Bank of India's (RBI's) Monetary Policy Committee on Wednesday hiked repo rate by 25 bps to 6.25%, for the first time in four years, while maintaining a neutral stance.
The S&P BSE Sensex ended at 35,463, up 284 points while the broader Nifty50 index settled at 10,768, up 84 points.
The S&P BSE Midcap index rose 1.40% today led by a rise in shares of SAIL and IDBI Bank, while the BSE Smallcap index settled nearly 2% higher led by Unitech and Ramkey Infrastructures. Among sectoral indices, the Nifty Realty index surged nearly 3% on Thursday, led by Unitech and Prestige Estates Projects.
RBI's MONETARY POLICY
The six-member monetary policy committee (MPC) unanimously voted for a rate hike, citing the fear of inflation, partly flared by the recent spike in crude oil prices. The central bank’s April policy tone was dovish and it had actually lowered inflation forecasts for the first and second half of 2018-19.
"We had previously expected the start of the rate hike cycle in 4Q18. However, reflecting this earlier than expected move, we now expect the rate hikes to be front-loaded. Specifically, we expect rate hikes in the August and October meetings but that the total quantum of rate hikes will remain at 75bps for this cycle," analysts at Morgan Stanley said in a note on Thursday.
"We had previously expected the start of the rate hike cycle in 4Q18. However, reflecting this earlier than expected move, we now expect the rate hikes to be front-loaded. Specifically, we expect rate hikes in the August and October meetings but that the total quantum of rate hikes will remain at 75bps for this cycle," analysts at Morgan Stanley said in a note on Thursday.
GLOBAL MARKETS
Asian shares rose Thursday, with markets in Japan and South Korea notching convincing gains in early morning trade. That followed moves higher on Wall Street in the last session, which saw the Dow Jones industrial average close above 25,000.
The Nikkei 225 edged up by 0.69 perc ent in early morning trade. South Korean stocks saw similar gains, with the benchmark Kospi up 0.67 per cent.
(With inputs from agencies)
3:42 PM
Nifty Realty index ends 2.97% higher. Top gainers:
| COMPANY | LATEST | PREV CLOSE | GAIN() | GAIN(%) |
| UNITECH | 4.95 | 4.15 | 0.80 | 19.28 |
| PRESTIGE ESTATES | 254.90 | 233.05 | 21.85 | 9.38 |
| GODREJ PROPERT. | 790.00 | 726.20 | 63.80 | 8.79 |
| BRIGADE ENTERPR. | 248.60 | 231.10 | 17.50 | 7.57 |
| H D I L | 22.20 | 20.70 | 1.50 | 7.25 |
3:40 PM
Nifty sectoral gainers of the day
3:35 PM
BSE Sensex gainers and losers of the day
3:31 PM
Market at close
The S&P BSE Sensex ended at 35,463, up 284 points while the broader Nifty50 index settled at 10,768, up 84 points.
3:20 PM
PSU banks extend gain; IDBI Bank, Canara Bank up over 4%
Shares of public sector undertaking (PSU) banks were trading higher for the second day in a row, gaining nearly 4%, after the Monetary Policy Committee (MPC) in its second bi-monthly policy for 2018-19 voted unanimously for a hike in policy repo rate of 25 bps, while retaining its neutral stance. READ MORE
3:00 PM
Gold inches up as euro gains against dollar
Gold prices inched up on Thursday as the euro rose to 2-week highs against the US dollar, with investors waiting for meetings of key central banks and the US-North Korea summit all due next week.
Spot gold was up 0.1 per cent at $1,297.46 per ounce, while US gold futures for August delivery were largely unchanged at $1,301.50 per ounce. READ MORE
2:46 PM
Foreign Direct Investment to India decreased to $40 billion last year from $44 billion in 2016 while outflows from India, the main source of investment in South Asia, more than doubled, according to a new trade report by the UN. READ MORE
FDI inflows in India decline by 9% to $40 bn in 2017: UN report
Foreign Direct Investment to India decreased to $40 billion last year from $44 billion in 2016 while outflows from India, the main source of investment in South Asia, more than doubled, according to a new trade report by the UN. READ MORE
2:30 PM
Kwality extends fall despite board mulling bonus issue, share buyback
Shares of Kwality have dipped 5% to Rs 31.65 per share, extending their 30% fall in past seven trading days on the BSE, despite the company today saying that its board will consider share buyback or bonus issue proposal on June 20, 2018.
The meeting of the board of directors of the Company will be held on Wednesday, 20th June, 2018 to consider and approve the proposal for buyback of securities and/or bonus issue of securities; and recommendation of interim dividend. READ MORE
2:15 PM
Facing trouble, Indian public sector banks need leaders but are headless
India’s government-owned banks are becoming increasingly rudderless, just when they most need a firm hand at the top.
Four of the country’s 21 state banks have yet to appoint replacements for departed chief executive officers, and another has seen its CEO stripped of her powers due to fraud charges. Over the coming months, nine more of the lenders are due to lose their top executives, at a time when spiraling bad loans and an intensified crackdown on financial sector-corruption make the jobs less appealing than ever. READ MORE
2:01 PM
Market Check
| S&P BSE Sensex | 35,561.56 | 1.09% | |
| Nifty 50 | 10,797.05 | 1.05% | |
| S&P BSE 200 | 4,670.60 | 1.12% | |
| Nifty 500 | 9,313.20 | 1.17% | |
| S&P BSE Mid-Cap | 15,938.61 | 1.30% | |
| S&P BSE Small-Cap | 16,778.43 | 1.89% | |
1:45 PM
ELSS: Smart way to save tax; here's how to pick a top performing one
Tax planning forms an indispensable part of one’s financial plans. Under Section 80C of the Income Tax Act 1961, you can claim deductions of upto Rs 1.5L and reduce your tax liability. So, to save on taxes, you just need to invest your money in investments eligible under 80C. Equity Linked Savings Scheme (ELSS) is eligible under section 80C.
Out of all these investments, ELSS tends to be the most popular and most efficient tax-saving instrument. READ MORE
1:30 PM
Analysts give thumbs-down to Rs 70 billion sugar bailout package
Markets have given a thumbs-down to the government’s Rs 70 billion intervention package (including Rs 4,440 crore in loans to mills to expand ethanol production) for the sugar industry to address the immediate liquidity problems of the industry.
Most stocks, such as Dwarikesh Sugar, Dhampur Sugar, EID Parry, Kesar Enterprises and Thiru Aroon Sugar are trading lower in the range of 1 per cent to 5 per cent on the BSE on Thursday – extending their Wednesday’s fall of 3 per cent to 12 per cent. In comparison, the S&P BSE Sensex has gained around two per cent during this period READ MORE
1:15 PM
Volume gains to offset margin pressures for Maruti Suzuki
The Maruti Suzuki stock has gained about four per cent over the last week on strong sales in May, the expectation of higher growth for FY19 and plans to launch electric vehicles by 2020. While there are headwinds such as the higher raw material costs and weak rupee which makes imports costlier, analysts believe that these will be offset by the operating leverage (higher volumes), reduction in discounts as demand in the sector improves, as well as richer product mix. READ MORE
1:02 PM
Prabhudas Lilladher on Tata Motors
We welcome the increased disclosures and disinvestments from loss-making/non-core subsidiaries. Management's focus on improving the performance of the standalone entity is now clearly visible and we expect it to continue. The near-term outlook for JLR, however, remains muted both for volumes and profitability, EBIT margin target of ~7-9% (earlier 8-10%) mainly due to accelerated product development expenses.
With JLR's full product range available in EV/Hybrid variants from 2020 gives us further confidence. Given the attractive valuations and buoyant management guidance, we maintain "BUY" with a target price of Rs378, where we value JLR at 2.75x Mar'20E EV/EBITDA and Standalone entity at 10x Mar'20 EPS
We welcome the increased disclosures and disinvestments from loss-making/non-core subsidiaries. Management's focus on improving the performance of the standalone entity is now clearly visible and we expect it to continue. The near-term outlook for JLR, however, remains muted both for volumes and profitability, EBIT margin target of ~7-9% (earlier 8-10%) mainly due to accelerated product development expenses.
With JLR's full product range available in EV/Hybrid variants from 2020 gives us further confidence. Given the attractive valuations and buoyant management guidance, we maintain "BUY" with a target price of Rs378, where we value JLR at 2.75x Mar'20E EV/EBITDA and Standalone entity at 10x Mar'20 EPS
12:47 PM
Tata Motors proposes to raise ECB up to USD 250 mn
Tata Motors announced that the Company will proposing to raise external commercial borrowing up to U.S.$250,000,000 from Lenders up to a maximum of U.S.$500,000,000. All proceeds from the facility will be fully used towards refinancing a part of the principal amount of the Borrower's Notes as permitted under the ECB Master Directions.
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First Published: Jun 07 2018 | 3:30 PM IST