MARKET WRAP: Sensex gains 131 pts, Nifty ends at 10,802; banks, pharma rise

The S&P BSE Sensex gained 131 points or 0.36 per cent to settle at 35,981 with Sun Pharma (up 4 per cent) being the top gainer and Kotak Mahindra Bank (down over 1 per cent) the worst performer.

3:53 PM

Top sectoral gainers and losers on NSE

3:52 PM

Top gainers and losers on S&P BSE Sensex

3:34 PM

Market at close
 

The S&P BSE Sensex added 131 points or 0.36 per cent to settle at 35,981 while the broader Nifty50 index of NSE closed at 10,802, up 30 points or 0.28 per cent. 

3:16 PM

EARNINGS PREVIEW | Motilal Oswal Financial Services on Auto

 

Auto Universe is expected to report a 9% YoY PAT decline on a strong base (44% YoY growth in base quarter) – a third consecutive quarter of PAT decline. Excluding Tata Motors, the Auto Universe is expected to post flattish profits. We expect EBITDA margin to shrink by 100bp YoY to 12%, impacted by weak operating leverage (volumes softened across the board in 3QFY19), a weak INR and heightened competitive intensity in two-wheelers. 

2:55 PM

Nifty PSU Bank index hits 4-month high; SBI, Canara Bank up 3%

Shares of public sector undertaking (PSU) banks continued their upward journey with Nifty PSU Bank index hitting a four-month high on Tuesday on the expectation of decline in bad loans. Nifty PSU Bank index, the largest sectoral gainer, was up 2.6% at 3,192 levels, trading at its highest level since September 6, 2018, on the National Stock Exchange (NSE). In comparison, the Nifty Bank and Nifty Private Bank index were up 0.6% each, while the benchmark Nifty 50 index was up 0.32% at 02:19 pm. Read more

2:39 PM

CLSA on Cement sector

 

Over the past decade, the cement industry has witnessed a decline in utilisation rates, despite which, cement prices have held up fairly well. FY19 is likely to end with near double-digit demand growth, which will also take up utilisation. This much-anticipated event, however, has been a big disappointer as prices did not see any benefit and in fact, unit Ebitda margins contracted in FY19. 

 

Lower energy prices are a relief but cement prices are the key, and uncertainty prevails here, which is quite counter-intuitive in the context of rising utilisation rates. We yet again trim our FY19-21 EPS estimates for the major players by 3%-15%. We now have a SELL rating on UltraTech, Grasim, India Cements (downgraded from BUY), and downgrade Shree & Ambuja from BUY to O-PF and Dalmia from BUY to U-PF. Ramco and ACC remain BUYs.

2:29 PM

YES Securities on Roads sector

 

The Roads sector has faced rough weather in FY19 owing to:  

a) overall weakness in project awarding; 

b) delays in financial closure for Hybrid Annuity projects; and 

c) poor response to second bundle of Toll Operate Transfer (TOT) projects. 

 

Although most decent-sized road contractors have achieved financial closure for their projects, other issues yet remain as industry woes. FY18 ended on a strong note of hope with order awards aggregating a whopping 17,055 kms and construction of 9,829 kms. FY19 thus promised a lot, especially being the pre-election year. However, only 2,105 kms have been awarded in first eight months of FY19 with construction of 5,759 kms. With FY19 targets of awards set at 20,000 kms, there’s too much for the Ministry to catch up in the last four months.

2:26 PM

Oil prices steady on trade talk hopes and OPEC cuts, but slowdown looms

Oil prices were stable on Tuesday, supported by hopes that talks in Beijing between US and Chinese officials might defuse trade disputes between the world's biggest economies, while OPEC-led supply cuts also tightened markets. International Brent crude futures were at $57.42 per barrel, up 9 cents, or 0.2 per cent from their last close. Read more

2:16 PM

Top gainers on BSE500

COMPANY	PRICE()	CHG()	CHG(%)	VOLUME
H F C L	23.20	1.95	9.18	2411912
TEJAS NETWORKS	216.00	15.20	7.57	5771
SREI INFRA. FIN.	35.10	2.00	6.04	361896
ASHOKA BUILDCON	133.00	6.35	5.01	16440
SYNDICATE BANK	41.20	1.45	3.65	198665

2:07 PM

Ashoka Buildcon, Sadbhav Engineering gain up to 6% in range-bound market

Shares of infrastructure companies – Ashok Buildcon and Sadbhav Engineering rallied by up to 6% on BSE in an otherwise range-bound market on Tuesday.

Sadbhav Engineering soared 6% to Rs 230 apiece, after the company said it received an appointment letter dated January 5, 2019 for road contract worth of Rs 1,620 crore of Maharashtra Samruddhi Mahamarg. The stock was trading at its highest level since October 22, 2018 on the BSE. Read more

 

2:00 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,921.34	+71.18	+0.20
S&P BSE SENSEX 50	11,281.61	+24.15	+0.21
S&P BSE SENSEX Next 50	32,615.91	+35.97	+0.11
S&P BSE 100	11,070.41	+22.01	+0.20
S&P BSE Bharat 22 Index	3,472.65	+4.31	+0.12

1:45 PM

JM Financial Securities on aviation sector

 

In a low PLF (passenger load factor) scenario, movement in yields will be a key monitorable to maintain a sustainable revenue per available seat-kilometer (RASK). Decline in crude oil (USD 57/bbl) and INR appreciation (INR/USD below 70) in the past month are a welcome relief. Sensitivity of EBITDAR and fair value for Indigo/SpiceJet are outlined in this report (exhibits 26 to 29). We currently have a BUY rating on SpiceJet and a HOLD rating on Indigo. 

1:30 PM

Derivatives and Quantitative Outlook by ICICI Direct Research

 

• In the ongoing market consolidation, banking stocks have taken the lead. The Bank Nifty/Nifty price ratio has moved to lifetime high levels also indicating the same. Apart from sectoral heavyweights, the midcap banking space is also witnessing buying traction. We believe that while the Nifty may continue its consolidation in the range of 10500-11000, midcap banking stocks like DCB Bank may witness good upsides on the back of fresh long additions.
• The open interest in DCB Bank has remained muted since August 2018 as the stock remained under pressure along with the market. However, a sharp increase of almost 30% in open interest was seen in the stock in the last couple of sessions as it moved to four-month high levels. This activity suggests fresh long accumulation in the stock

1:11 PM

IT services firms likely to show strong Q3 growth on deal momentum

Investors would be looking forward to the final guidance for FY19, as IT major Tata Consultancy Services (TCS) kick-starts the December quarter earnings season for the IT industry this Thursday, and Infosys follows suit on Friday. They would also be keenly watching the macroeconomic outlook, especially on the US economy, Brexit, and the deteriorating US-China relationship and its impact. Read more

 

1:04 PM

NEWS ALERT | Tata Elxsi Q3 net profit falls around 20 per cent on quarter-on-quarter basis.