Benchmark indices slipped on Wednesday, as investors booked profit on the last trading day for financial year 2017-18 (FY18) that co-incided with the expiry of F&O contracts for the March 2018 series. That apart, weak global cues also weighed on the overall sentiment. Benchmark indices slipped on Wednesday, as investors booked profit on the last trading day for financial year 2017-18 (FY18) that co-incided with the expiry of F&O contracts for the March 2018 series. That apart, weak global cues also weighed on the overall sentiment.
The S&P BSE Sensex ended at 32,968, down 206 points while the broader Nifty50 index settled at 10,113, down 71 points. The indices posted a monthly loss of about 3.5 per cent, their steepest drop for the month of March since 2015. For FY18, the Nifty50 index gained around 10%.
"We expect the Indian equities to remain range bound in the coming sessions. Domestic macro data and global developments will dictate the further course of the market in the near term. In the coming week with the release of volume data for March, Auto stocks would remain in focus. Valuations at current levels are not cheap and India continues to trade at a premium to the other emerging markets. Hence, for this premium to sustain, continued reform implementation and revival in the corporate earnings is essential," said Jayant Manglik, President, Religare Broking.
Among sectoral indices, the Nifty Metal index closed 2.1% lower, led by a drop in shares of Tata Steel, SAIL and Jindal Steel & Power. The Nifty PSU bank index also fell over 2%.
"We expect the similar kind of returns from equity markets during the next fiscal too but with increased volatility due to large political events. While risk of higher yield may continue to persist in year ahead, we believe a healthy double digit growth in corporate earnings will aid markets to sustain high valuations," said Rakesh Tarway, Reserch Head at Reliance Securities in an emailed note.
Adding: "We do not find any solid reason for domestic savings to divert to other investment avenues and therefore benign domestic flow to equities is likely to support equity markets. Factors to watch during FY19 are hardening of USA Fed rates and movement of crude oil prices. Hardening of rates by USA Fed may impact flow of global liquidity to emerging markets."
TRUNCATED WEEK
Markets will remain closed on Thurday and Friday on account of Mahavir Jayanti and Good Friday, respectively. The bourses will now open on Monday, April 02. With effect from April 1, long-term capital gains— profits made on the sale of equity shares held for over 12 months—will be taxed at the rate of 10%.
GLOBAL MARKETS
Stocks toppled again on Wednesday, as jitters about a US-China trade war and regulatory crackdown on firms such as Facebook left investors facing their first quarterly fall in equity markets in two years.
Europe’s main bourses opened more than 1% weaker as the fifth sell-off in six days gathered momentum and sent risk-averse traders piling back to the safety of bond markets.
German bunds, seen as Europe’s most secure asset due to Berlin’s triple-A-rated finances, rallied hard to send 10-year yields back under 0.5% for the first time since early January.
(with Agency inputs)CATCH ALL THE LIVE UPDATES03:59 PMMARKET COMMENT Madan Sabnavis, chief economist at CARE Ratings
The Indian economy has displayed varying signs this year and while the general direction is towards a possible recovery in 2018-19, the issue of overhang of NPA resolution would be a fundamental factor affecting future growth as investment would require finance which will emanate mainly from banks. The focus next year will be on ensuring that the process of solution is on the right track.
03:46 PMNifty Metal index declines 2.09%. Top losers:
COMPANY LATEST PREV CLOSE LOSS() LOSS(%) VOLUMEJINDAL STEEL 219.10 229.75 -10.65 -4.64 9495220S A I L 70.20 73.20 -3.00 -4.10 10421653JSW STEEL 288.15 298.85 -10.70 -3.58 5121150TATA STEEL 571.05 590.00 -18.95 -3.21 18642014VEDANTA 277.85 287.00 -9.15 -3.19 1469739703:44 PMNifty PSU Bank index ends 2.13% lower. Top losers:
COMPANY LATEST PREV CLOSE LOSS() LOSS(%) VOLUMEIDBI BANK 72.20 76.25 -4.05 -5.31 43260112PUNJAB NATL.BANK 95.30 99.45 -4.15 -4.17 30081563ORIENTAL BANK 91.60 94.45 -2.85 -3.02 4417827SYNDICATE BANK 55.45 56.85 -1.40 -2.46 4885414INDIAN BANK 299.80 306.70 -6.90 -2.25 119836103:41 PMSectoral Trend
03:35 PMBSE Sensex gainers and losers of the day
03:32 PMMarket at close The S&P BSE Sensex ended at 32,968, down 206 points while the broader Nifty50 index settled at 10,113, down 71 points.03:22 PMDisappointed stock market bulls find comfort in India profit revival
In India, it’s becoming a ritual. Each year investors are assured that earnings are about to recover. Each year, they don’t. Anything that suggested that might change would be welcome news to stock bulls, who’ve watched last year’s rally hit a wall. Now there’s evidence it may, though you have to look pretty hard to see it. READ MORE
03:13 PMEight of 10 worst-performing US emerging-market ETFs are focused on India
Eight of this year’s 10 worst-performing U. S. emerging-market non-leveraged ETFs are focused on India. The biggest exchange-traded fund, BlackRock’s $5.2 billion iShares MSCI India ETF, lost more than 5 percent -- the least impressive start since its inception in 2012. READ MORE
02:55 PMStocks that hit 52-week low on BSE500
COMPANY LATEST 52 WEEK LOW PREVIOUS LOW PREVIOUS DATEBALRAMPUR CHINI 76.65 76.35 79.90 12-MAR-2018BLUE DART EXP. 3775.00 3754.50 3770.00 27-MAR-2018CARE RATINGS 1210.00 1207.70 1211.10 23-MAR-2018CUMMINS INDIA 699.40 670.95 696.00 26-MAR-2018DHANUKA AGRITECH 542.05 536.55 538.00 27-MAR-201802:43 PMEight of 10 worst-performing US emerging-market ETFs are focused on India
Eight of this year’s 10 worst-performing U. S. emerging-market non-leveraged ETFs are focused on India. The biggest exchange-traded fund, BlackRock’s $5.2 billion iShares MSCI India ETF, lost more than 5 percent -- the least impressive start since its inception in 2012. READ MORE HERE02:36 PMJefferies on EicherRating BUY (from HOLD)Price Target Rs 31,880.00 (from Rs 31,271.00) Eicher is in a transition phase with the waiting period going away for the first time in years. Reported growth is normalizing as it starts reflecting current demand vs. pent up demand. The stock has de-rated/underperformed over the last six months as a result. However, with underlying industry growth surprising positively and strong growth in low penetration states, which now account for 30% of sales, we expect the transition to be smoother02:29 PMTitan, D-Mart, Venky's among 24 stocks that gain over 100% in FY18 The consumer discretionary goods & services sector companies such as Avenue Supermarts (owner of D-Mart), Jubilant FoodWorks, Venkys’ India, Titan Company, Avanti Feeds, Radico Khaitan and V-Mart Retail were among 24 stocks from the S&P BSE 500 index become mutli-baggers and rallied over 100% during the financial year 2017-18 (FY18). HEG and Graphite India from graphite electrode manufacturers, Himadri Speciality Chemical, NOCIL and Philips Carbon Black from chemicals and Dilip Buildcon, Sunteck Realty and Indiabulls Real Estate from infrastructure too surged up to 1300% in FY18. On comparison, the S&P BSE Sensex and the S&P BSE 500 were up 12% during the fiscal. READ MORE02:17 PMVolume Toppers
COMPANY PRICE() CHG() CHG(%) VOLUMEGUJARAT GAS 831.85 -4.40 -0.53 14442897FORTIS HEALTH. 128.65 -13.80 -9.69 10522372JP ASSOCIATES 19.15 0.05 0.26 8147987IDBI BANK 74.15 -2.10 -2.75 6394054REL. COMM. 22.25 -1.50 -6.32 550807201:59 PMIDBI Bank discloses fraud of $119 million, shares fall
IDBI Bank Ltd said on Tuesday fraudulent loans of 7.72 billion rupees ($118.8 million) were issued from five of its branches in Andhra Pradesh and Telangana, sending its shares lower on Wednesday. READ MORE01:46 PMNew $100 million limit to give NSE the edge in currency derivatives
The Securities and Exchange Board of India (Sebi's) decision to raise the limit for currency derivatives to $100 million from the earlier $45 million is likely to boost the currency derivatives market and give the National Stock Exchange of India (NSE) an edge in the segment. Earlier, trading in currency derivatives had a limit of $15 million per exchange per client. This enabled trades to be spread across exchanges. The limit has now been raised to $100 million without any specified limit for each of these exchanges. READ MORE
01:32 PMIndex watch
Index Current Pt. Change % Change S&P BSE SENSEX 32,988.90 -185.49 -0.56 S&P BSE SENSEX 50 10,599.21 -51.98 -0.49 S&P BSE SENSEX Next 50 32,913.00 -141.00 -0.43 S&P BSE 100 10,514.59 -50.50 -0.48 S&P BSE Bharat 22 Index 3,456.02 -23.49 -0.68
(Source: BSE)01:31 PMSharekhan on Bajaj Holdings and Investment Limited (BHIL)
BHIL’s stock price has corrected sharply by around 14% in the past 3 months from its highs of Rs 3,036. Concerns around associate company Bajaj Auto's (BAL’s) performance has been the key reason for the decline. Increased competitive intensity in the two wheeler space coupled with margin pressures would impact BAL’s performance.
Consequently, we have downgraded our recommendation on BAL to HOLD. We believe BHIL’s stock correction adequately factors in the earnings slowdown for BAL. However, strong traction across BFS’s business is expected to sustain / improve further and this provides ample visibility for BHIL’s growth. At CMP, BHILoffers scope for ~30% gains. We have retained Buy rating on the stock.01:21 PMAt Rs 805 bn, fundraising via IPOs in FY18 double the previous best
Fund raising through initial public offers (IPOs) has hit an all-time high during the financial year 2017-18 (FY18). Thus far in FY18, 43 companies have raised a combined Rs 805 billion through IPOs, surpassing its previous high recorded nearly a decade ago. Back in FY08, 84 companies had raised Rs 413 billion via IPOs, data sourced from PRIME Database suggests. READ MORE
01:06 PMPersistent Systems falls 11% on weak March quarter outlook
Persistent Systems has dipped 11% to Rs 697 on the BSE after the information technology (IT) company said it is expecting a decline in IP revenues in fourth quarter of current fiscal (Q4FY18), which will impact revenue and EBIDTA (earnings before interest, taxes, depreciation, and amortization) margin for the quarter. READ MORE12:54 PMRBI policy preview: Morgan Stanley expects status quo With growth tracking in line and inflation tracking slightly below the RBI’s projections, we don’t expect any changes to policy rates and stance at the upcoming meeting. Confidence on the growth outlook (and its impact on inflation) will be key to assess how the MPC’s stance will evolve thereafter.
Looking at the details of the inflation data, volatile food prices continued to drive the swings in headline inflation while the core measures – in particular inflation ex-food, fuel and housing (core-core) inflation have held steady at 4.3% in the previous two months. In a nutshell, the incoming data on inflation are unlikely to give rise to any fresh concerns on the upside as regards the inflation outlook.
(Source: Morgan Stanley report)
RBI logo RBI logo12:51 PMMARKET COMMENT Sameet Chavan, chief analyst for technical and derivatives, Angel Broking
Last two day’s move has caught so many traders on the wrong foot that went short after breaking the psychological five digit mark of 10,000. Mostly, this is how market behaves when the consensus stat moving in the same direction. For this expiry, we were seeing 9950 – 9900 as a strong support zone, as a couple of key Fibonacci ratios were converging around it.
That said, the move does not change the broader picture for the markets and we expect the market to face some selling pressure if Nifty rebounds in the range of 10250 – 10350. Today being an expiry day, 10200 – 10230 would be seen as a strong hurdle for the index. A failure to surpass this would result in some profit booking towards 10160 – 10130 levels
12:48 PMTOP CONTRIBUTORS TO SENSEX TODAY
COMPANY LATEST CHG(RS) CHG(%) CONTRIBUTION(POINTS)MARUTI SUZUKI 9039.90 186.25 2.10 28.22TCS 2865.40 23.55 0.83 13.67HERO MOTOCORP 3518.50 52.65 1.52 7.79WIPRO 278.35 5.80 2.13 4.41COAL INDIA 276.75 1.35 0.49 1.94TATA MOTORS 331.75 0.70 0.21 1.5412:45 PMCD Equisearch on mayur Uniquoters
The stock currently trades at 23.3x FY18e EPS of Rs 20.46 and 18.7x FY19e EPS of Rs 25.50. With a current capacity utilization of 85%, significant increase in capacity utilization is anticipated on the backdrop of revival of demand in domestic economy, increasing population and rising disposable income and its potential admittance into the European markets.
The company is confident of getting approvals for orders by Mercedes Benz in FY19 and has been modifying its process to grab such approvals. This would doubtlessly accentuate greater exposure to other prospective customers in the European market. However, product obsolesce as a result of continuous technological innovation and government regulations pertaining to the harmful environmental effects of processing PVC may serve as major restraints for the market.
In view of vigorous recovery of sales in Q2 and Q3, we revise our FY19e EPS by 14.9% and assign ‘accumulate’ rating on the stock with a revised target of Rs 561 (previous target: Rs 444) based on 22x FY19e EPS (peg ratio: 1) over a period of 9-12 months
12:31 PMKwality hits 32-month low; stock tanks 27% in two days
Shares of dairy firm Kwality continued to be under pressure for the second day in a row, falling to 32-month low of Rs 60.35, down 20% on BSE. The stock is trading at its lowest level since July 6, 2015. In past two trading sessions the market value of Kwality shares tanked 27% from Rs 82.15 on Monday, March 26, 2018, despite the company clarifying that there is no strategically significant development within the organisation and business. On Tuesday, the stock slipped 20% to Rs 65.65 in intra-day trade, settled 8% lower at Rs 75.40 on the BSE. READ MORE
12:16 PMGovernment's inflation bonds 2.0 pique interest among banks, investors
The government’s plan to reintroduce inflation-indexed bonds is being seen with some interest as previous issuances were not successful for a wide variety of reasons. The most recent case in hand was the wholesale price index (WPI)-based bonds that failed miserably in the market after inflation rapidly started sliding, and the Reserve Bank of India (RBI) adopted consumer price index (CPI)-based inflation for its policy formulation. The government had to buy back Rs 65 billion of bonds two years down the line after they were issued in 2013. The original maturity of the bonds was 10 years. READ MORE
12:00 PMMarket Check
S&P BSE Sensex 33,038.55 Up -0.41% Nifty 50 10,140.45 Up -0.43% S&P BSE 200 4,448.27 Up -0.26% Nifty 500 8,945.75 Up -0.36% S&P BSE Mid-Cap 16,028.08 Up -0.13% S&P BSE Small-Cap 17,082.76 Up -0.41%11:45 AMTop BSE500 losers
COMPANY PRICE() CHG() CHG(%) VOLUMEKWALITY 60.35 -15.05 -19.96 113229DELTA CORP 266.60 -31.65 -10.61 785460PERSISTENT SYS 700.85 -81.80 -10.45 94070FORTIS HEALTH. 131.50 -10.95 -7.69 3932890GLAXOSMITH C H L 6295.00 -356.65 -5.36 269711:29 AMGovt's lower-than-expected borrowing will be positive for PSBs and NBFCs
The government’s lower-than-expected borrowing programme for the first half of FY19 (H1FY19, or April-September 2018) will be positive for public sector banks (PSBs) and non-banking finance companies (NBFCs). Not surprising then, the Nifty PSU Bank Index surged about 3 per cent on Tuesday, while shares of some NBFCs were up over 1 per cent. Investors reacted positively on account of expected benefits for these companies owing to a 29-basis point-(bps) decline in 10-year government bond (gilts) yields at 7.33 per cent. READ MORE
11:08 AMHindalco, Vedanta trading at discount; firm outlook for base metal prices
Non-ferrous majors such as Vedanta and Hindalco have been in focus after tariff hike talks by the US on aluminum, and consequently, the volatility in global base metal prices. Correction in the markets added to the woes. The share prices of Vedanta and Hindalco have dropped 19-23 per cent from their highs in January. READ MORE10:55 AMFortis Healthcare falls on board nod to demerge hospital biz into Manipal
Fortis Healthcare has dipped 10% to Rs 128, extending its Tuesday’s 4% decline on the BSE, after the company said that it has decided to demerge hospital business into Manipal Hospitals, promoted by Dr Ranjan Pai and backed by TPG. Fortis Healthcare shareholders will receive 10.83 shares of Manipal Hospitals for every 100 shares held in the company. READ MORE
The S&P BSE Sensex ended at 32,968, down 206 points while the broader Nifty50 index settled at 10,113, down 71 points. The indices posted a monthly loss of about 3.5 per cent, their steepest drop for the month of March since 2015. For FY18, the Nifty50 index gained around 10%.
"We expect the Indian equities to remain range bound in the coming sessions. Domestic macro data and global developments will dictate the further course of the market in the near term. In the coming week with the release of volume data for March, Auto stocks would remain in focus. Valuations at current levels are not cheap and India continues to trade at a premium to the other emerging markets. Hence, for this premium to sustain, continued reform implementation and revival in the corporate earnings is essential," said Jayant Manglik, President, Religare Broking.
Among sectoral indices, the Nifty Metal index closed 2.1% lower, led by a drop in shares of Tata Steel, SAIL and Jindal Steel & Power. The Nifty PSU bank index also fell over 2%.
"We expect the similar kind of returns from equity markets during the next fiscal too but with increased volatility due to large political events. While risk of higher yield may continue to persist in year ahead, we believe a healthy double digit growth in corporate earnings will aid markets to sustain high valuations," said Rakesh Tarway, Reserch Head at Reliance Securities in an emailed note.
Adding: "We do not find any solid reason for domestic savings to divert to other investment avenues and therefore benign domestic flow to equities is likely to support equity markets. Factors to watch during FY19 are hardening of USA Fed rates and movement of crude oil prices. Hardening of rates by USA Fed may impact flow of global liquidity to emerging markets."
TRUNCATED WEEK
Markets will remain closed on Thurday and Friday on account of Mahavir Jayanti and Good Friday, respectively. The bourses will now open on Monday, April 02. With effect from April 1, long-term capital gains— profits made on the sale of equity shares held for over 12 months—will be taxed at the rate of 10%.
GLOBAL MARKETS
Stocks toppled again on Wednesday, as jitters about a US-China trade war and regulatory crackdown on firms such as Facebook left investors facing their first quarterly fall in equity markets in two years.
Europe’s main bourses opened more than 1% weaker as the fifth sell-off in six days gathered momentum and sent risk-averse traders piling back to the safety of bond markets.
German bunds, seen as Europe’s most secure asset due to Berlin’s triple-A-rated finances, rallied hard to send 10-year yields back under 0.5% for the first time since early January.
(with Agency inputs)CATCH ALL THE LIVE UPDATES03:59 PMMARKET COMMENT Madan Sabnavis, chief economist at CARE Ratings
The Indian economy has displayed varying signs this year and while the general direction is towards a possible recovery in 2018-19, the issue of overhang of NPA resolution would be a fundamental factor affecting future growth as investment would require finance which will emanate mainly from banks. The focus next year will be on ensuring that the process of solution is on the right track.
03:46 PMNifty Metal index declines 2.09%. Top losers:
COMPANY LATEST PREV CLOSE LOSS() LOSS(%) VOLUMEJINDAL STEEL 219.10 229.75 -10.65 -4.64 9495220S A I L 70.20 73.20 -3.00 -4.10 10421653JSW STEEL 288.15 298.85 -10.70 -3.58 5121150TATA STEEL 571.05 590.00 -18.95 -3.21 18642014VEDANTA 277.85 287.00 -9.15 -3.19 1469739703:44 PMNifty PSU Bank index ends 2.13% lower. Top losers:
COMPANY LATEST PREV CLOSE LOSS() LOSS(%) VOLUMEIDBI BANK 72.20 76.25 -4.05 -5.31 43260112PUNJAB NATL.BANK 95.30 99.45 -4.15 -4.17 30081563ORIENTAL BANK 91.60 94.45 -2.85 -3.02 4417827SYNDICATE BANK 55.45 56.85 -1.40 -2.46 4885414INDIAN BANK 299.80 306.70 -6.90 -2.25 119836103:41 PMSectoral Trend
03:35 PMBSE Sensex gainers and losers of the day
03:32 PMMarket at close The S&P BSE Sensex ended at 32,968, down 206 points while the broader Nifty50 index settled at 10,113, down 71 points.03:22 PMDisappointed stock market bulls find comfort in India profit revival
In India, it’s becoming a ritual. Each year investors are assured that earnings are about to recover. Each year, they don’t. Anything that suggested that might change would be welcome news to stock bulls, who’ve watched last year’s rally hit a wall. Now there’s evidence it may, though you have to look pretty hard to see it. READ MORE
03:13 PMEight of 10 worst-performing US emerging-market ETFs are focused on India
Eight of this year’s 10 worst-performing U. S. emerging-market non-leveraged ETFs are focused on India. The biggest exchange-traded fund, BlackRock’s $5.2 billion iShares MSCI India ETF, lost more than 5 percent -- the least impressive start since its inception in 2012. READ MORE
02:55 PMStocks that hit 52-week low on BSE500
COMPANY LATEST 52 WEEK LOW PREVIOUS LOW PREVIOUS DATEBALRAMPUR CHINI 76.65 76.35 79.90 12-MAR-2018BLUE DART EXP. 3775.00 3754.50 3770.00 27-MAR-2018CARE RATINGS 1210.00 1207.70 1211.10 23-MAR-2018CUMMINS INDIA 699.40 670.95 696.00 26-MAR-2018DHANUKA AGRITECH 542.05 536.55 538.00 27-MAR-201802:43 PMEight of 10 worst-performing US emerging-market ETFs are focused on India
Eight of this year’s 10 worst-performing U. S. emerging-market non-leveraged ETFs are focused on India. The biggest exchange-traded fund, BlackRock’s $5.2 billion iShares MSCI India ETF, lost more than 5 percent -- the least impressive start since its inception in 2012. READ MORE HERE02:36 PMJefferies on EicherRating BUY (from HOLD)Price Target Rs 31,880.00 (from Rs 31,271.00) Eicher is in a transition phase with the waiting period going away for the first time in years. Reported growth is normalizing as it starts reflecting current demand vs. pent up demand. The stock has de-rated/underperformed over the last six months as a result. However, with underlying industry growth surprising positively and strong growth in low penetration states, which now account for 30% of sales, we expect the transition to be smoother02:29 PMTitan, D-Mart, Venky's among 24 stocks that gain over 100% in FY18 The consumer discretionary goods & services sector companies such as Avenue Supermarts (owner of D-Mart), Jubilant FoodWorks, Venkys’ India, Titan Company, Avanti Feeds, Radico Khaitan and V-Mart Retail were among 24 stocks from the S&P BSE 500 index become mutli-baggers and rallied over 100% during the financial year 2017-18 (FY18). HEG and Graphite India from graphite electrode manufacturers, Himadri Speciality Chemical, NOCIL and Philips Carbon Black from chemicals and Dilip Buildcon, Sunteck Realty and Indiabulls Real Estate from infrastructure too surged up to 1300% in FY18. On comparison, the S&P BSE Sensex and the S&P BSE 500 were up 12% during the fiscal. READ MORE02:17 PMVolume Toppers
COMPANY PRICE() CHG() CHG(%) VOLUMEGUJARAT GAS 831.85 -4.40 -0.53 14442897FORTIS HEALTH. 128.65 -13.80 -9.69 10522372JP ASSOCIATES 19.15 0.05 0.26 8147987IDBI BANK 74.15 -2.10 -2.75 6394054REL. COMM. 22.25 -1.50 -6.32 550807201:59 PMIDBI Bank discloses fraud of $119 million, shares fall
IDBI Bank Ltd said on Tuesday fraudulent loans of 7.72 billion rupees ($118.8 million) were issued from five of its branches in Andhra Pradesh and Telangana, sending its shares lower on Wednesday. READ MORE01:46 PMNew $100 million limit to give NSE the edge in currency derivatives
The Securities and Exchange Board of India (Sebi's) decision to raise the limit for currency derivatives to $100 million from the earlier $45 million is likely to boost the currency derivatives market and give the National Stock Exchange of India (NSE) an edge in the segment. Earlier, trading in currency derivatives had a limit of $15 million per exchange per client. This enabled trades to be spread across exchanges. The limit has now been raised to $100 million without any specified limit for each of these exchanges. READ MORE
01:32 PMIndex watch
Index Current Pt. Change % Change S&P BSE SENSEX 32,988.90 -185.49 -0.56 S&P BSE SENSEX 50 10,599.21 -51.98 -0.49 S&P BSE SENSEX Next 50 32,913.00 -141.00 -0.43 S&P BSE 100 10,514.59 -50.50 -0.48 S&P BSE Bharat 22 Index 3,456.02 -23.49 -0.68
(Source: BSE)01:31 PMSharekhan on Bajaj Holdings and Investment Limited (BHIL)
BHIL’s stock price has corrected sharply by around 14% in the past 3 months from its highs of Rs 3,036. Concerns around associate company Bajaj Auto's (BAL’s) performance has been the key reason for the decline. Increased competitive intensity in the two wheeler space coupled with margin pressures would impact BAL’s performance.
Consequently, we have downgraded our recommendation on BAL to HOLD. We believe BHIL’s stock correction adequately factors in the earnings slowdown for BAL. However, strong traction across BFS’s business is expected to sustain / improve further and this provides ample visibility for BHIL’s growth. At CMP, BHILoffers scope for ~30% gains. We have retained Buy rating on the stock.01:21 PMAt Rs 805 bn, fundraising via IPOs in FY18 double the previous best
Fund raising through initial public offers (IPOs) has hit an all-time high during the financial year 2017-18 (FY18). Thus far in FY18, 43 companies have raised a combined Rs 805 billion through IPOs, surpassing its previous high recorded nearly a decade ago. Back in FY08, 84 companies had raised Rs 413 billion via IPOs, data sourced from PRIME Database suggests. READ MORE
01:06 PMPersistent Systems falls 11% on weak March quarter outlook
Persistent Systems has dipped 11% to Rs 697 on the BSE after the information technology (IT) company said it is expecting a decline in IP revenues in fourth quarter of current fiscal (Q4FY18), which will impact revenue and EBIDTA (earnings before interest, taxes, depreciation, and amortization) margin for the quarter. READ MORE12:54 PMRBI policy preview: Morgan Stanley expects status quo With growth tracking in line and inflation tracking slightly below the RBI’s projections, we don’t expect any changes to policy rates and stance at the upcoming meeting. Confidence on the growth outlook (and its impact on inflation) will be key to assess how the MPC’s stance will evolve thereafter.
Looking at the details of the inflation data, volatile food prices continued to drive the swings in headline inflation while the core measures – in particular inflation ex-food, fuel and housing (core-core) inflation have held steady at 4.3% in the previous two months. In a nutshell, the incoming data on inflation are unlikely to give rise to any fresh concerns on the upside as regards the inflation outlook.
(Source: Morgan Stanley report)
RBI logo RBI logo12:51 PMMARKET COMMENT Sameet Chavan, chief analyst for technical and derivatives, Angel Broking
Last two day’s move has caught so many traders on the wrong foot that went short after breaking the psychological five digit mark of 10,000. Mostly, this is how market behaves when the consensus stat moving in the same direction. For this expiry, we were seeing 9950 – 9900 as a strong support zone, as a couple of key Fibonacci ratios were converging around it.
That said, the move does not change the broader picture for the markets and we expect the market to face some selling pressure if Nifty rebounds in the range of 10250 – 10350. Today being an expiry day, 10200 – 10230 would be seen as a strong hurdle for the index. A failure to surpass this would result in some profit booking towards 10160 – 10130 levels
12:48 PMTOP CONTRIBUTORS TO SENSEX TODAY
COMPANY LATEST CHG(RS) CHG(%) CONTRIBUTION(POINTS)MARUTI SUZUKI 9039.90 186.25 2.10 28.22TCS 2865.40 23.55 0.83 13.67HERO MOTOCORP 3518.50 52.65 1.52 7.79WIPRO 278.35 5.80 2.13 4.41COAL INDIA 276.75 1.35 0.49 1.94TATA MOTORS 331.75 0.70 0.21 1.5412:45 PMCD Equisearch on mayur Uniquoters
The stock currently trades at 23.3x FY18e EPS of Rs 20.46 and 18.7x FY19e EPS of Rs 25.50. With a current capacity utilization of 85%, significant increase in capacity utilization is anticipated on the backdrop of revival of demand in domestic economy, increasing population and rising disposable income and its potential admittance into the European markets.
The company is confident of getting approvals for orders by Mercedes Benz in FY19 and has been modifying its process to grab such approvals. This would doubtlessly accentuate greater exposure to other prospective customers in the European market. However, product obsolesce as a result of continuous technological innovation and government regulations pertaining to the harmful environmental effects of processing PVC may serve as major restraints for the market.
In view of vigorous recovery of sales in Q2 and Q3, we revise our FY19e EPS by 14.9% and assign ‘accumulate’ rating on the stock with a revised target of Rs 561 (previous target: Rs 444) based on 22x FY19e EPS (peg ratio: 1) over a period of 9-12 months
12:31 PMKwality hits 32-month low; stock tanks 27% in two days
Shares of dairy firm Kwality continued to be under pressure for the second day in a row, falling to 32-month low of Rs 60.35, down 20% on BSE. The stock is trading at its lowest level since July 6, 2015. In past two trading sessions the market value of Kwality shares tanked 27% from Rs 82.15 on Monday, March 26, 2018, despite the company clarifying that there is no strategically significant development within the organisation and business. On Tuesday, the stock slipped 20% to Rs 65.65 in intra-day trade, settled 8% lower at Rs 75.40 on the BSE. READ MORE
12:16 PMGovernment's inflation bonds 2.0 pique interest among banks, investors
The government’s plan to reintroduce inflation-indexed bonds is being seen with some interest as previous issuances were not successful for a wide variety of reasons. The most recent case in hand was the wholesale price index (WPI)-based bonds that failed miserably in the market after inflation rapidly started sliding, and the Reserve Bank of India (RBI) adopted consumer price index (CPI)-based inflation for its policy formulation. The government had to buy back Rs 65 billion of bonds two years down the line after they were issued in 2013. The original maturity of the bonds was 10 years. READ MORE
12:00 PMMarket Check
S&P BSE Sensex 33,038.55 Up -0.41% Nifty 50 10,140.45 Up -0.43% S&P BSE 200 4,448.27 Up -0.26% Nifty 500 8,945.75 Up -0.36% S&P BSE Mid-Cap 16,028.08 Up -0.13% S&P BSE Small-Cap 17,082.76 Up -0.41%11:45 AMTop BSE500 losers
COMPANY PRICE() CHG() CHG(%) VOLUMEKWALITY 60.35 -15.05 -19.96 113229DELTA CORP 266.60 -31.65 -10.61 785460PERSISTENT SYS 700.85 -81.80 -10.45 94070FORTIS HEALTH. 131.50 -10.95 -7.69 3932890GLAXOSMITH C H L 6295.00 -356.65 -5.36 269711:29 AMGovt's lower-than-expected borrowing will be positive for PSBs and NBFCs
The government’s lower-than-expected borrowing programme for the first half of FY19 (H1FY19, or April-September 2018) will be positive for public sector banks (PSBs) and non-banking finance companies (NBFCs). Not surprising then, the Nifty PSU Bank Index surged about 3 per cent on Tuesday, while shares of some NBFCs were up over 1 per cent. Investors reacted positively on account of expected benefits for these companies owing to a 29-basis point-(bps) decline in 10-year government bond (gilts) yields at 7.33 per cent. READ MORE
11:08 AMHindalco, Vedanta trading at discount; firm outlook for base metal prices
Non-ferrous majors such as Vedanta and Hindalco have been in focus after tariff hike talks by the US on aluminum, and consequently, the volatility in global base metal prices. Correction in the markets added to the woes. The share prices of Vedanta and Hindalco have dropped 19-23 per cent from their highs in January. READ MORE10:55 AMFortis Healthcare falls on board nod to demerge hospital biz into Manipal
Fortis Healthcare has dipped 10% to Rs 128, extending its Tuesday’s 4% decline on the BSE, after the company said that it has decided to demerge hospital business into Manipal Hospitals, promoted by Dr Ranjan Pai and backed by TPG. Fortis Healthcare shareholders will receive 10.83 shares of Manipal Hospitals for every 100 shares held in the company. READ MORE
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