MARKET WRAP: Sensex jumps 404 pts, ends 9-day losing streak; IT, banks gain
All that happened in markets today
 "BSE, NSE, Markets, SENSEX")
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The frontline indices ended over 1 per cent higher, snapping their 9-day losing streak, led by gains in information technology (IT), financials and metal stocks.
Among sectors, the Nifty Metal index, which was the top gainer of the day, ended 2.99 per cent higher led by Jindal Steel and Tata Steel. The Nifty Bank index, too, rose 1.02 per cent led by IDFC First Bank and State Bank of India.
In the broader market, the S&P BSE MidCap ended 144 points, or 1.04 per cent higher at 14,010, while S&P BSE SmallCap settled at 13,281, up 119 points, or 0.91 per cent.
BUZZING STOCKS
Shares of Anil Dhirubhai Ambani Group (ADAG) companies tumbled by up to 11 per cent on the BSE in intra-day trade on Wednesday after an unfavorable Supreme Court (SC) verdict in Ericsson contempt case. In a big setback for Anil Ambani, the SC today held Reliance Group chairman and its two directors guilty of contempt in pleas filed by telecom equipment maker Ericsson for not clearing its dues of Rs 550 crore. Court asked Ambani to pay Rs 453 crore to Ericsson in four weeks, failing which he will have to serve three months of jail term. Shares of Reliance Capital ended 4.3 per cent lower at Rs 145.05 apiece on the BSE.
GLOBAL MARKETS
Asian stocks advanced to 4-1/2-month highs on Wednesday as investors bet that Chinese and US trade negotiators would be able to secure a deal to de-escalate their year-long tariff war.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose nearly 1.0 per cent to reach its highest levels since Oct. 2. Hong Kong’s Hang Seng gained 1.1 per cent to six-month highs, while Korea’s Kospi and Taiwan’s index recovered to levels last seen in early October. Japan’s Nikkei gained 0.75 per cent to two-month highs.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose nearly 1.0 per cent to reach its highest levels since Oct. 2. Hong Kong’s Hang Seng gained 1.1 per cent to six-month highs, while Korea’s Kospi and Taiwan’s index recovered to levels last seen in early October. Japan’s Nikkei gained 0.75 per cent to two-month highs.
(with Reuters input)
4:07 PM
COMMENT :: Sahaj Agrawal, Kotak Securities
Markets are in a consolidative move with the broader range seen at 10400-11100. We expect a lot of range bound activity going ahead with stock specific activity is expected for the near term. We expect the markets to bottom around the 10400 mark before resuming its uptrend. Investors can gradually accumulate select stocks for an expected breakout on the higher side
4:06 PM
MARKETS TODAY :: Jayant Manglik, President, Religare Broking
The Indian equity benchmark indices ended its nine-day losing streak amid supportive global cues today. The Nifty index opened in the green and traded with a positive bias throughout the session and touched an intra-day high of 10,753. It finally closed 131 points higher at 10,736 (up 1.2%). The broader market indices BSE Midcap and BSE-Smallcap too ended with healthy gains. All the sectoral indices witnessed strong buying interest with Metal, Oil & Gas and Power being the top gainers in the range of 1.5-3.0%.
Going forward, we expect markets to take cues from global developments in the absence of any key domestic triggers in the near term. Outcome of US-China trade talks, release of Federal Open Market Committee (FOMC) meeting minutes (to provide stance on monetary policy) as well as progress on Brexit deal will give further direction to the markets. Investors will also keep an eye on crude oil price and rupee/dollar movement. Meanwhile, we advise investors to focus on fundamentally sound stocks and maintain a stock specific approach, while traders should avoid risky leveraged positions
3:39 PM
Sectoral gainers of the day on NSE
3:35 PM
Gainers and losers of the day on S&P BSE Sensex
3:34 PM
Market at close
The S&P BSE Sensex ended at 35,756, up 404 points or 1.1 per cent, while the broader Nifty50 index settled at 10,735, up 131 points or 1.2 per cent.
3:20 PM
Silver futures rise 0.16% on global cues
Silver futures traded higher by 0.16 per cent to Rs 40,620 per kg Wednesday after speculators raised bets, driven by a firm trend overseas. Silver for delivery in March traded higher by Rs 63, or 0.16 per cent, to Rs 40,620 per kg in a business turnover of 1,234 lots at the Multi Commodity Exchange. READ MORE
3:02 PM
Karvy Stock Broking on Bajaj Electricals
Recommendation: BUY
CMP: Rs 442
Target Price: Rs 540
We expect the durable segment to post a growth of 20-25% on the back of strong volume pick up from Tier II and Tier III cities. Also the EPC segment to contribute 50% of total revenues and significantly degrow in the coming years due to absence of UP projects. We value the company at 22x for FY20 and arrive at a target price of Rs. 540 giving an upside of 26%.
3:02 PM
Karvy Stock Broking on Bajaj Electricals
Recommendation: BUY
CMP: Rs 442
Target Price: Rs 540
We expect the durable segment to post a growth of 20-25% on the back of strong volume pick up from Tier II and Tier III cities. Also the EPC segment to contribute 50% of total revenues and significantly degrow in the coming years due to absence of UP projects. We value the company at 22x for FY20 and arrive at a target price of Rs. 540 giving an upside of 26%.
2:59 PM
FDI equity inflows fall 7% to $33.5 bn in first nine months of FY19
In some bad news for the Modi government, Foreign Direct Investment (FDI) equity inflows to India from April to December 2018 have declined by seven per cent. Latest figures released by the Department for Promotion of Industry and Internal Trade (DPIIT) shows that India managed to attract almost $33.5 billion from April to December 2018. In the same period in 2017, India’s FDI equity flows stood at almost $36 billion. READ MORE
2:49 PM
Centrum on Ambuja Cements
We value ACEM using SOTP: standalone ACEM at 11x CY20E EBITDA and its 50% holding in ACC at a 20% discount to our ACC target valuation, leading to a revised SOTP target price of Rs220 (Rs230 earlier). We maintain Buy on the stock, as the recent corrections of 13%/23% over the past 6/12 months, keeps valuation attractive. ACEM trades at 11.2x/9.7x CY19/20E EBITDA and at a replacement cost of Rs7.8bn/MT.
2:49 PM
ICICI Securities on Tata Motors
Going forward, challenging times may persist for TML and we would await the commentary of global OEM as well as closely watch Brexit developments before any meaningful upgrade in our estimates. We value TML on SOTP basis with domestic operations contributing Rs 108 (6x EV/EBITDA), JLR contributing Rs 13/share (2.2x EV/EBITDA) and others at Rs 24. We arrive at a target price of Rs 145 and maintain our HOLD rating.
2:48 PM
ICICI Securities on V Guard
Company has initiated price hikes (~2-5%) to combat high input costs that would benefit it in coming quarters. Further, ad spends returning to normal 4-4.5% level vs. ~5% would help drive EBITDA margins. We introduce FY21E estimates & model revenue, earning CAGR of ~14%, 18%, respectively, in FY18-21E. We believe key trigger for topline growth would be sales improvement of its flagship products while profitability would be driven by gross margin recovery
2:46 PM
HDFC Securities on IT sector
Key positives for the sector include (1) Rapid pivot to digital (32% YoY in 3Q), (2) Robust deal trends (hitting new highs in deal bookings and pipeline), (3) Strong hiring momentum indicative of demand buoyancy, and (4) Revival in core vertical (BFSI), albeit captive pressure looms. While positives outweigh concerns, potential risks lurk in the form of (1) Slowdown in core geography (US) and worsening macros impacting tech spend (digital becoming non-discretionary is an offset), (2) Brexit repercussions, (3) Margin challenge from talent supply crunch and captives driving up wages and sub-contracting spike, and (4) Regulatory policy changes in visas (mitigated by higher localisation)
2:43 PM
Click here to see full list
Most active stocks by volume (BSE500)
| COMPANY NAME | LATEST | HIGH | LOW |
CHG (rs) | CHG(%) |
VALUE (rs CR) | VOLUME |
| REL. COMM. | 5.59 | 6.17 | 5.45 | -0.43 | -7.14 | 4.03 | 7206488 |
| RELIANCE POWER | 10.75 | 11.15 | 10.25 | -0.10 | -0.92 | 5.51 | 5123492 |
| JP ASSOCIATES | 5.12 | 5.25 | 5.02 | 0.11 | 2.20 | 2.38 | 4650006 |
| SUZLON ENERGY | 3.57 | 3.65 | 3.55 | 0.05 | 1.42 | 1.17 | 3274351 |
| VIJAYA BANK | 39.75 | 40.55 | 39.70 | 0.05 | 0.13 | 12.49 | 3142225 |
Click here to see full list
2:35 PM
» More on Top Gainers
Top gainers on BSE500
| COMPANY | PRICE(rs) | CHG(rs) | CHG(%) | VOLUME |
| MINDA INDS. | 326.00 | 39.20 | 13.67 | 104051 |
| TEJAS NETWORKS | 143.65 | 16.80 | 13.24 | 40324 |
| PTC INDIA | 79.20 | 5.15 | 6.95 | 57048 |
| NAVKAR CORPORAT. | 39.60 | 2.30 | 6.17 | 37359 |
| JINDAL STEEL | 149.20 | 7.95 | 5.63 | 1718331 |
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First Published: Feb 20 2019 | 8:09 AM IST
