MARKET WRAP: Sensex slips 215 points, HDFC Bank falls 3%; Realty stocks hit
Catch all that happened during Monday's trade here
 "Photo: Shutterstock.com")
Photo: Shutterstock.com
Benchmark indices ended lower on Monday led by losses in banking sector and real estate sector.
The S&P BSE Sensex ended at 35,012, down 215 points while the broader Nifty50 index settled at 10,628, down 68 points. HDFC Bank was among the yop losers, slipping over 3 per cent to Rs 2,045 levels. Realty stocks came under selling pressure with the Nifty Realty index ended over 3 per cent lower. HDIL, Phoenix Limited, Prestige, Indiabulls Real Estate and Brigade Enterprises were among the top losers that slipped up to 4 per cent.
The S&P BSE Sensex ended at 35,012, down 215 points while the broader Nifty50 index settled at 10,628, down 68 points. HDFC Bank was among the yop losers, slipping over 3 per cent to Rs 2,045 levels. Realty stocks came under selling pressure with the Nifty Realty index ended over 3 per cent lower. HDIL, Phoenix Limited, Prestige, Indiabulls Real Estate and Brigade Enterprises were among the top losers that slipped up to 4 per cent.
Meanwhile, foreign investors pulled out a massive Rs 297.14 billion from the capital markets in May, making it the biggest outflow in 18 months, primarily due to a surge in global crude prices. This comes following an outflow of Rs 155.61 billion from the capital markets (equity and debt) in April. Prior to that, foreign investors had pumped in Rs 26.62 billion in March.
GLOBAL MARKETS
Asian shares rose to their highest in two-and-a-half-weeks on Monday as strong US jobs data offset worries that tariff wars between the United States and the rest of the world could retard global economic growth. MSCI's broadest index of Asia-Pacific shares outside Japan gained 1 per cent to a high last seen on May 17, while Japan's Nikkei rose 1.3 per cent.
RBI POLICY PREVIEW
RBI POLICY PREVIEW
The Reserve Bank of India (RBI) is getting poised to raise interest rates for the first time since January 2014, analysts say - the question is whether this will happen on Wednesday or in August.
The anticipated increase could put a dent in growth, which has recovered after blows from the November 2016 demonetisation and the bumpy July 2017 launch of a national goods and services tax. India reported stellar 7.7 annual per cent growth for the quarter ended March 31. But the key concern of the central bank, which has long kept the repo rate at 6 per cent, is the inflation rate, which is widely expected to climb further.
(with Reuters inputs)
3:44 PM
Nifty Bank index ends 1.63% lower. Top losers:
| COMPANY | LATEST | PREV CLOSE | LOSS() | LOSS(%) |
| BANK OF BARODA | 131.55 | 136.95 | -5.40 | -3.94 |
| IDFC BANK | 39.15 | 40.75 | -1.60 | -3.93 |
| HDFC BANK | 2046.20 | 2110.60 | -64.40 | -3.05 |
| FEDERAL BANK | 81.20 | 83.00 | -1.80 | -2.17 |
| ST BK OF INDIA | 263.00 | 266.70 | -3.70 | -1.39 |
3:39 PM
Nifty sectoral losers of the day
3:36 PM
BSE Sensex: Dr Reddy's, Infosys among top gainers of the day, HDFC Bank top loser
3:32 PM
Market at close
The S&P BSE Sensex ended at 35,012, down 215 points while the broader Nifty50 index settled at 10,628, down 68 points.
3:14 PM
Avanti Feeds, Waterbase extend fall on growth concerns
Shares of shrimp exporters Avanti Feeds and Waterbase have fallen more than 50% from their respective 52-week highs on concerns of decline in exports in the current financial year 2018-19 (FY19) due to prevailing un-favourable conditions. READ MORE
3:07 PM
With deal to close this week, Bayer to retire Monsanto name
Germany's Bayer will wrap up the $63 billion takeover of Monsanto on Thursday and also retire the U.S. seeds maker's 117 year-old name. The German drugmaker had received all required approvals from regulatory authorities, it said in a statement on Monday. READ MORE
2:59 PM
Gold steady as trade war concerns offset US rate hike prospects
Gold prices traded within a narrow range on Monday as lingering concerns about trade wars between the United States and the rest of the world offset expectations of a US interest rate hike this month.
Spot gold was nearly unchanged at $1,293.23 per ounce, after hitting its lowest since May 23 at $1,289.12 in the previous session. READ MORE
2:48 PM
Chinese smartphone maker Xiaomi plans to raise up to 30 percent of its blockbuster $10 billion IPO by selling shares in mainland China while offering the remainder in Hong Kong, people with knowledge of the matter told Reuters on Monday. READ MORE
China's Xiaomi eyes $3 billion CDRs in $10 billion July listing plan: sources
Chinese smartphone maker Xiaomi plans to raise up to 30 percent of its blockbuster $10 billion IPO by selling shares in mainland China while offering the remainder in Hong Kong, people with knowledge of the matter told Reuters on Monday. READ MORE
2:29 PM
Stocks at 52-week low
» More on 52 Week Low
| COMPANY | PRICE() | 52 WK LOW | CHG() | CHG(%) |
|---|---|---|---|---|
| ABAN OFFSHORE | 128.60 | 128.60 | -7.90 | -5.79 |
| ADANI POWER | 18.70 | 18.60 | -0.90 | -4.59 |
| AJANTA PHARMA | 933.45 | 925.05 | -7.25 | -0.77 |
| ALLCARGO LOGIST. | 112.40 | 112.00 | -5.25 | -4.46 |
| AMBUJA CEM. | 201.00 | 200.75 | -2.40 | -1.18 |
2:28 PM
Centrum on La Opala
We maintain our Buy on La Opala with target price of Rs353 and value the company on our conservative Adj. OCF/EV yield based methodology. We believe the company would continue to post strong double digit volume growth in the opalware segment on the back of affordable pricing and significant under penetration of the category.
Further announcement of setting of new plant at a cost of Rs1.35bn would help the company increase capacity from current 25K MT to 37K MT which we believe would be utilised over ~2.5 years and the commercial production would start from Sep’19. Further the management would aggressively spend on advertising in FY19 with a budget of Rs120-150mn against spend of mere Rs40mn in FY18 which would help the brand given aggressive competition.
We maintain our Buy on La Opala with target price of Rs353 and value the company on our conservative Adj. OCF/EV yield based methodology. We believe the company would continue to post strong double digit volume growth in the opalware segment on the back of affordable pricing and significant under penetration of the category.
Further announcement of setting of new plant at a cost of Rs1.35bn would help the company increase capacity from current 25K MT to 37K MT which we believe would be utilised over ~2.5 years and the commercial production would start from Sep’19. Further the management would aggressively spend on advertising in FY19 with a budget of Rs120-150mn against spend of mere Rs40mn in FY18 which would help the brand given aggressive competition.
2:27 PM
Centrum on Sun Pharma
We maintain our Hold rating on Sun Pharma (SPIL) with TP of Rs530 (earlier Rs520) based on 26x March’20E EPS of Rs20.4. SPIL’s Q4FY18 revenues were in-line with our expectations. EBIDTA margin and net profit exceeded our expectations. The drug maker’s revenue declined 2% YoY, margins improved by 240bps to 24.1%, and net profit grew 10% YoY.
The company is facing supply constraints at its Halol facility. Key upside risks to our assumption include higher revenues from the US market and key downside risk includes regulatory risks for its manufacturing facilities catering to the global markets. We recommend a switch to Aurobindo or Cipla
We maintain our Hold rating on Sun Pharma (SPIL) with TP of Rs530 (earlier Rs520) based on 26x March’20E EPS of Rs20.4. SPIL’s Q4FY18 revenues were in-line with our expectations. EBIDTA margin and net profit exceeded our expectations. The drug maker’s revenue declined 2% YoY, margins improved by 240bps to 24.1%, and net profit grew 10% YoY.
The company is facing supply constraints at its Halol facility. Key upside risks to our assumption include higher revenues from the US market and key downside risk includes regulatory risks for its manufacturing facilities catering to the global markets. We recommend a switch to Aurobindo or Cipla
2:15 PM
Keep a close eye on credit quality, financials of NBFCs before investing
With non-bank financial companies (NBFCs) finding it difficult to raise funds from banks, the total issuance of non-convertible debentures (NCDs) from them is expected to cross the previous high this financial year, according to ICRA Ratings. In 2013-14, they had raised a record Rs 423.83 billion. With many of the recent issuances offering returns of above 9 per cent, investors are likely to be attracted to them. However, they should do proper due diligence before investing in these instruments. READ MORE
2:00 PM
Market Check
| S&P BSE Sensex | 35,127.71 | -0.28% | |
| Nifty 50 | 10,668.70 | -0.26% | |
| S&P BSE 200 | 4,610.86 | -0.41% | |
| Nifty 500 | 9,210.95 | -0.48% | |
| S&P BSE Mid-Cap | 15,759.03 | -0.59% | |
| S&P BSE Small-Cap | 16,705.12 | -1.61% | |
1:41 PM
Edelweiss on GMR Infrastructure
GMR Infrastructure (GMR) reported Rs 49mn profit for Q4FY18, aided by: (a) recognition of additional ~Rs 6.3 bn revenue in Kamalanga and EMCO, post a favourable CERC order; and (b) higher profits at Hyderabad Airport (HIAL) and Indonesian coal mine (PT GEMS). On operational front, traffic improved 12-25% YoY on the company’s three operational airports; also, the Kamalanga and EMCO plants are witnessing higher PLFs and lower interest costs.
Delhi Airport (DIAL) also saw favourable regulatory actions, which are likely to significantly enhance long term value. Improvement in cash flow trajectory, finalisation of tariff orders for airports and asset monetisation will be key stock drivers, in our view. Maintain 'BUY' with SoTP-based target price of Rs 29
GMR Infrastructure (GMR) reported Rs 49mn profit for Q4FY18, aided by: (a) recognition of additional ~Rs 6.3 bn revenue in Kamalanga and EMCO, post a favourable CERC order; and (b) higher profits at Hyderabad Airport (HIAL) and Indonesian coal mine (PT GEMS). On operational front, traffic improved 12-25% YoY on the company’s three operational airports; also, the Kamalanga and EMCO plants are witnessing higher PLFs and lower interest costs.
Delhi Airport (DIAL) also saw favourable regulatory actions, which are likely to significantly enhance long term value. Improvement in cash flow trajectory, finalisation of tariff orders for airports and asset monetisation will be key stock drivers, in our view. Maintain 'BUY' with SoTP-based target price of Rs 29
1:40 PM
NEWS ALERT MK Jain appointed deputy governor of RBI; he is currently the MD & CEO of IDBI Bank: TV reports
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First Published: Jun 04 2018 | 3:30 PM IST
