Benchmark indices are trading marginally higher on Monday amid weakness in their key Asian peers. While the S&P BSE Sensex managed to sustain above 36,500 levels, the Nifty50 index is testing the 11,000 mark in late morning deals. Among sectoral indices, the Nifty FMCG index gained nearly 2%, led by an over 3.5% rise in the share prices of Procter & Gamble and ITC.
GST RATE CUT IMPACT
Shares of paint, consumer durables and footwear companies have rallied by up to 10 per cent on the BSE, after the GST Council on Saturday reduced tax rates from 28 per cent to 18 per cent on a range of daily use products and appliances.
Among items on which GST was reduced include footwear, small televisions, water heater, electric ironing machines, refrigerators, lithium ion batteries, hair dryers, vacuum cleaners, food appliances and ethanol.
RESULTS CALENDAR
Among key results, Asian Paints, Bharti Infratel, Hero MotoCorp, Larsen & Toubro, Maruti Suzuki, Bharti Airtel, ITC, HCL Technologies and Reliance Industries are likely to announce their June 2018 quarter earnings later this week.
GLOBAL MARKETS
Asian shares declined on Monday, with Japanese stocks pressured by weakness in the dollar after the currency dropped on US President Donald Trump's criticism of the Federal Reserve.
The Nikkei 225 dropped 0.98 per cent in morning trade as the dollar extended its losses against the Japanese currency and the Kospi slipped 0.27 percent as steep declines in blue chip tech stocks.
OIL PRICES
Oil prices fell on Monday because of increasing concerns about fuel demand after finance ministers and central bank governors from the G20 warned that global economic growth risks have increased amid rising trade and geopolitical tensions.
Brent crude dropped 10 cents, or 0.1 per cent, to $72.97 a barrel. US West Texas Intermediate (WTI) futures declined 8 cents, or 0.1 per cent, to $68.18 a barrel.
(with wire inputs)
Read our full coverage on Markets
CATCH ALL THE LIVE UPDATES
11:37 AM
Equirus Securities on DCB Bank
We expect DCBB to attain 14% RoE on a sustainable basis by FY21E assuming no further dilution. We cut FY19/FY20 PAT estimates by 5.5%/7.9% and roll over to a Sep’19 target price of Rs 185 (Mar’19 target price : Rs 205) at 2.1x/1.9x Sep’19/Sep’20 ABV of Rs 88/98. Retain ADD.
11:15 AM
TOP CONTRIBUTORS TO SENSEX'S GAIN
COMPANY LATEST CHG(RS) CHG(%) FREE FLOAT
MKT CAP
(RS CR) WEIGHT IN
INDEX (%)
ITC 284.65 11.20 4.10 347813.84 10.69
BHARTI AIRTEL 354.10 8.55 2.47 49541.78 1.83
ASIAN PAINTS 1428.00 31.10 2.23 64377.67 1.61
NTPC 158.50 3.20 2.06 32672.63 1.15
ADANI PORTS 377.45 7.55 2.04 34393.92 0.97
HIND. UNILEVER 1682.60 26.40 1.59 120191.15 2.49
CLICK HERE FOR MORE
11:13 AM
Market check
Index Current Pt. Change % Change
S&P BSE SENSEX 36,553.21 +56.84 +0.16
S&P BSE SENSEX 50 11,546.06 +16.61 +0.14
S&P BSE SENSEX Next 50 31,503.73 +127.17 +0.41
S&P BSE 100 11,233.73 +20.42 +0.18
S&P BSE Bharat 22 Index 3,351.81 +23.46 +0.70
11:00 AM
Motilal Oswal on Bajaj Auto
10:55 AM
Angel Broking on YES Bank
We expect YES Bank to grow its advances at CAGR of 32% over FY2018-20E. Improvement in CASA, rating up-gradation and in-house priority sector lending would support NIM going forward. At CMP, YES trades at 2.4x FY20E P/ABV, which we believe is attractive considering growth prospects, hence, we recommend BUY with a target price of Rs 435 over the next 12 months
10:54 AM
CHART CHECK Voltas
On a monthly chart, the stock has formed a Hammer Candlestick with the support of 490 level which is a 38.20% Fibonacci retracement level of its previous rally from 287.15 levels to 675.30 levels which is a classic reversal setup and shows a bullish reversal movement in the counter.
Apart from this, after giving a healthy correction from its 664.70 level, the stock has paused its downside movement near to its previous bottom from where the stock had witnessed a good upside movement.
10:53 AM
Prabhudas Lilladher on HDFC Bank
HDFC Bank saw a marginal blip in earnings growing at only 18% YoY to Rs46.0bn (PLe: Rs47.1bn) mainly on back of margin pressure which fell by 20bps QoQ and MTM loss on investments. It has already raised capital of Rs85.0bn from its promoter bank HDFC Ltd and will shortly do Rs150bn preferential allotments, which help further augment capital for loan growth of 20-22% and improve liquidity for the bank.
We have factored the capital raise of Rs250.0bn in our estimates for FY19E, which has led to increase in ABV by 18/15% for FY19/FY20E. Retain BUY with increased target price of Rs2,492 (from Rs2,251) based on 4.2x Mar-20 ABV.
10:45 AM
Two wheeler stocks trade weak; Hero MotoCorp, TVS Motor hit 52-week low
Shares of two wheeler companies were under pressure with Hero MotoCorp and TVS Motor Company hitting their respective 52-week lows and Bajaj Auto trading close to its 52-week low, falling up to 7% on the BSE in early morning trade on Monday. READ MORE
10:31 AM
Emami's high dependence on rural sales may prove to be a boon this year
Considered as Emami’s bane last year, the company’s high dependence on rural sales may prove to be a boon this year. Rural sales of the fast-moving consumer goods (FMCG) major count for more than 50 per cent of its top line, the highest compared to its peers like HUL, Dabur and Marico, among others. READ MORE
10:17 AM
Strong start to the Q1 earnings season: Net profit of 113 companies up 20%
The earnings season for the first quarter (Q1) of 2018-19 has started on a strong note for Corporate India. The combined net profit of 113 companies that have declared their results for the April-June 2018 quarter was up 20.3 per cent on a year-on-year (YoY) basis, growing at the fastest pace in the last nine quarters. READ MORE
10:00 AM
Market Check
S&P BSE Sensex 36,607.68 Up 0.31%
Nifty 50 11,042.95 Up 0.30%
S&P BSE 200 4,711.71 Up 0.41%
Nifty 500 9,317.95 Up 0.34%
S&P BSE Mid-Cap 15,300.08 Up 0.68%
S&P BSE Small-Cap 15,795.90 Up 0.47%
09:46 AM
17 of the 30 Sensex stocks are now below their 200-day moving average
The benchmark Sensex is hovering around its lifetime high, but more than half of its components are trading below their long-term average prices. According to data, 17 of the 30 Sensex stocks are now below their 200-day moving average (200-DMA). This indicates that the index gains are driven by few stocks, while most others reel under pain. READ MORE
09:34 AM
MUST READ Is pharma sector worth the bet?
The pharma sector has been depressed for several years. One key reason for this is more stringent inspections by the US Food & Drug Administration (FDA) that has led to many Indian export facilities being debarred from exporting to the US. The FDA has a huge team doing Indian inspections and almost every pharma exporter has had problems passing the test. READ MORE
09:24 AM
Edelweiss on Wipro
Management’s commentary, yet again, bolsters our Most bullish demand environment stance. However, client-specific concerns, weakness in India and headwinds in HPS, utilities & communications will continue to weigh on growth. While we raise the sector’s multiple in light of the robust demand environment, we will wait for these issues to ebb before raising Wipro’s multiple. Maintain ‘HOLD’ with target price of Rs 330
09:21 AM
Nifty sectoral trend
09:20 AM
BSE Sensex gainers and losers
09:17 AM
Market at open
At 9:15 AM, the S&P BSE Sensex was trading at 36,541, up 45 points while the broader Nifty50 was ruling at 11,028, up 18 points.
09:15 AM
IDBI Capital on HDFC Bank
Loan growth is healthy at 22%, driven by retail segment. NII and PAT growth of 15% and 18% respectively is almost in line with our expectations. Fee income has grown by 23%. Bank did not avail RBI dispensation and made entire MTM depreciation of Rs3.9bn during the quarter.
Core PBT growth (excluding treasury) is 29%. Asset quality has been stable and has been one of the best in the sector. Given all regulatory approvals in place, we have factored equity issuance of Rs240bn. We retain our BUY rating with a target price of Rs2,600 valuing the stock at 4.25x (25% premium to mean) P/ABV FY20
09:13 AM
Stocks in news
· UPL Ltd. to acquire Arysta Lifescience in an all cash deal worth $4.2 billion
· Wipro guided for IT services revenues to be in range of $2,009 mn to $2,049 mn in the second quarter; will acquire U.S.-based Alight Solutions' India operations for $117 mn
· Just Dial approved buyback of 27.5 lakh shares, or 24.26% equity, at Rs 800 each. The buyback amount to not exceed Rs 220 cr
· Havells to merge all India-based subsidiaries with self
· Hathway Cable to raise Rs 100 cr via preferential allotment of equity shares to promoter
· Muthoot Finance received primary SEBI nod for AMC business
· IMP Powers started production of Kinetic Energy Turbine in Silvassa
· Sintex Plastics clarified that change in auditors has been effected only post audit and not abruptly
· Lyka Labs board accepted in-principle approval received from Dena Bank for compromise settlement of their account
· Alok Industries said that their liquidation application has been withdrawn
· Cadila Healthcare’s Zydus received final approval from the U.S. FDA for Acetylcysteine Injection
· BPCL’s board approved transfer of Gas Business Division to subsidiary Bharat Gas Resources Limited. The transaction is likely to be completed in three-four months
(Source: IIFL report)
09:12 AM
MARKET COMMENT Amar Ambani, head of research, IIFL
An eventful week saw the market clocking gains last week. Seven of 10 most valued companies added over Rs 53,799 cr in market capitalisation last week. IT, pharma, infra, banks and energy sectors boosted market sentiment. The outlook is a flat start. Select stocks will react to the GST Council's decision of rationalising tax rates on few items.
The F&O expiry later this week will keep market volatility high. The rupee is likely to remain under pressure. A host of companies will announce their quarterly results during the week. ACC and Hindustan Zinc numbers are slated today. US President Donald Trump's remarks about being ready to act on tariffs on USD 500 billion of Chinese imports will be closely watched. US shares closed flat on Friday. Asian markets are trading lower
09:02 AM
Markets at pre-open
Index Current Pt. Change % Change
S&P BSE SENSEX 36,517.68 +21.31 +0.06
S&P BSE SENSEX 50 11,537.04 +7.59 +0.07
S&P BSE SENSEX Next 50 31,506.70 +130.14 +0.41
S&P BSE 100 11,226.26 +12.95 +0.12
S&P BSE Bharat 22 Index 3,338.30 +9.95 +0.30
(Source: BSE)
09:02 AM
Elara Capital on Havell's India
We marginally raise our EPS by 1% in FY19E on higher revenue in switchgears partly offset by the decline in revenue from EESL. Accordingly, we raise our target price by 3% to Rs 630 on 40x (unchanged) P/E as we roll forward by a quarter to June 2020E. We reiterate Accumulate as we expect an earnings CAGR of 19% over FY18-21E with an average ROE of 21% and ROCE of 20% over FY19-21E
08:58 AM
GST meeting update
1. Quarterly Returns approved for taxpayers with turnover less than Rs 5cr ( tax payments to continue on monthly basis)
2. Sanitary Napkins exempted from GST going forward
3. No decision on 1% sugar cess
4. GST on bamboo flooring reduced to 12%
5. GST on hotels would now be on actual tariff & not declares tariff
6. Ethanol for Oil Marketing Companies now at 5% vs 18% earlier
7. 5% GST ceiling on footwear raised from Rs 500 to Rs 1000
8. GST on paints & varnishes, wall putty cut from 28% to 18%
9. GST on all leather items cut from 28% to 18%
10. GST on consumer electronics - TV (up to 27"), Washing Machine, Refrigerator, mixer, juicer, grinder cut from 28% to 18%
11. GST on special purpose vehicles, work truck, trailer cut from 28% to 18%
(Source: Nirmal Bang report)
08:56 AM
EVENT UPDATE UPL to acquire US-based Arysta Life Science Inc
We expect the deal to be EPS accretive from FY20E even though we do not consider any synergy benefits in that year. We raise our FY20E EPS by marginally 3% to Rs 52.8. However, due to high leverage and deterioration in return ratios, we reduce our P/E multiple to 14x from 18x earlier and revise our target price to Rs 739 from Rs 923. Retain BUY
(Source: Emkay Global report)
08:48 AM
SECTOR WATCH Is pharma sector worth the bet?
The pharma sector has been depressed for several years. One key reason for this is more stringent inspections by the US Food & Drug Administration (FDA) that has led to many Indian export facilities being debarred from exporting to the US. The FDA has a huge team doing Indian inspections and almost every pharma exporter has had problems passing the test READ MORE
08:44 AM
TRADING IDEA
Top trading ideas from Prabhudas Lilladher: Buy IndusInd Bank
BUY INDUSINDBANK
CMP: Rs 1,902.55
TARGET: Rs 2,000
STOP LOSS: Rs 1,860
The stock has given a correction from the peak of 1990 to show signs of bottoming out at around 1880 levels and has currently indicated a positive candle pattern in the daily chart to signify strength for further upside movement in the coming days. The RSI also has shown a trend reversal from the oversold zone and has signaled a buy in this stock. With consistent decent volume participation witnessed, we recommend a buy in this stock for an upside target of 2000 keeping a stop loss of 1860. READ MORE
08:42 AM
Nifty outlook from Prabhudas Lilladher for today
Nifty has been moving a very range bound zone between the 10920 and 11070 levels while Bank Nifty also has been moving between 26650 and 27150 levels. A fresh development can only trigger a breach on either side of the indices. However, the support for the week is seen at 10820 while resistance is seen at 11160. Pharma sector looks attractive and is in a positive bias with stocks like Sun Pharma, Cipla and Auro Pharma looks promising for further upside.
08:41 AM
INTERVIEW OF THE DAY Profit of Nifty companies can double over next 5 yrs: Jyotivardhan Jaipuria
The Indian benchmark indices have rallied around 5 per cent thus far in CY18. Jyotivardhan Jaipuria, founder and managing director at Valentis Advisors, tells Puneet Wadhwa that he expects India to continue outperforming other emerging markets (EMs). READ MORE
jyotivardhan jaipuria Jyotivardhan Jaipuria, Founder and managing director, Valentis Advisors
08:39 AM
Commodity picks: Cardamom
Cardamom prices in Vandanmedu market are hovering at Rs1,080 per kg. Prices are expected to trade higher towards Rs1,120 per kg following reports over crop loss due to excess rainfall. There are reports over fungal infestation to the plants, which is expected to impact the yield READ MORE HERE
08:38 AM
STOCK IDEA
L&T- BUY
CLOSE– Rs 1,270
TARGET– Rs 1,315-1,350
L&T closed the weekly in negative territory. Its still trading near 20 DMA. Risk Reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs-1205 for the target of Rs-1315-1350 levels in short-term. READ MORE
GST RATE CUT IMPACT
Shares of paint, consumer durables and footwear companies have rallied by up to 10 per cent on the BSE, after the GST Council on Saturday reduced tax rates from 28 per cent to 18 per cent on a range of daily use products and appliances.
Among items on which GST was reduced include footwear, small televisions, water heater, electric ironing machines, refrigerators, lithium ion batteries, hair dryers, vacuum cleaners, food appliances and ethanol.
RESULTS CALENDAR
Among key results, Asian Paints, Bharti Infratel, Hero MotoCorp, Larsen & Toubro, Maruti Suzuki, Bharti Airtel, ITC, HCL Technologies and Reliance Industries are likely to announce their June 2018 quarter earnings later this week.
GLOBAL MARKETS
Asian shares declined on Monday, with Japanese stocks pressured by weakness in the dollar after the currency dropped on US President Donald Trump's criticism of the Federal Reserve.
The Nikkei 225 dropped 0.98 per cent in morning trade as the dollar extended its losses against the Japanese currency and the Kospi slipped 0.27 percent as steep declines in blue chip tech stocks.
OIL PRICES
Oil prices fell on Monday because of increasing concerns about fuel demand after finance ministers and central bank governors from the G20 warned that global economic growth risks have increased amid rising trade and geopolitical tensions.
Brent crude dropped 10 cents, or 0.1 per cent, to $72.97 a barrel. US West Texas Intermediate (WTI) futures declined 8 cents, or 0.1 per cent, to $68.18 a barrel.
(with wire inputs)
Read our full coverage on Markets
CATCH ALL THE LIVE UPDATES
11:37 AM
Equirus Securities on DCB Bank
We expect DCBB to attain 14% RoE on a sustainable basis by FY21E assuming no further dilution. We cut FY19/FY20 PAT estimates by 5.5%/7.9% and roll over to a Sep’19 target price of Rs 185 (Mar’19 target price : Rs 205) at 2.1x/1.9x Sep’19/Sep’20 ABV of Rs 88/98. Retain ADD.
11:15 AM
TOP CONTRIBUTORS TO SENSEX'S GAIN
COMPANY LATEST CHG(RS) CHG(%) FREE FLOAT
MKT CAP
(RS CR) WEIGHT IN
INDEX (%)
ITC 284.65 11.20 4.10 347813.84 10.69
BHARTI AIRTEL 354.10 8.55 2.47 49541.78 1.83
ASIAN PAINTS 1428.00 31.10 2.23 64377.67 1.61
NTPC 158.50 3.20 2.06 32672.63 1.15
ADANI PORTS 377.45 7.55 2.04 34393.92 0.97
HIND. UNILEVER 1682.60 26.40 1.59 120191.15 2.49
CLICK HERE FOR MORE
11:13 AM
Market check
Index Current Pt. Change % Change
S&P BSE SENSEX 36,553.21 +56.84 +0.16
S&P BSE SENSEX 50 11,546.06 +16.61 +0.14
S&P BSE SENSEX Next 50 31,503.73 +127.17 +0.41
S&P BSE 100 11,233.73 +20.42 +0.18
S&P BSE Bharat 22 Index 3,351.81 +23.46 +0.70
11:00 AM
Motilal Oswal on Bajaj Auto
10:55 AM
Angel Broking on YES Bank
We expect YES Bank to grow its advances at CAGR of 32% over FY2018-20E. Improvement in CASA, rating up-gradation and in-house priority sector lending would support NIM going forward. At CMP, YES trades at 2.4x FY20E P/ABV, which we believe is attractive considering growth prospects, hence, we recommend BUY with a target price of Rs 435 over the next 12 months
10:54 AM
CHART CHECK Voltas
On a monthly chart, the stock has formed a Hammer Candlestick with the support of 490 level which is a 38.20% Fibonacci retracement level of its previous rally from 287.15 levels to 675.30 levels which is a classic reversal setup and shows a bullish reversal movement in the counter.
Apart from this, after giving a healthy correction from its 664.70 level, the stock has paused its downside movement near to its previous bottom from where the stock had witnessed a good upside movement.
10:53 AM
Prabhudas Lilladher on HDFC Bank
HDFC Bank saw a marginal blip in earnings growing at only 18% YoY to Rs46.0bn (PLe: Rs47.1bn) mainly on back of margin pressure which fell by 20bps QoQ and MTM loss on investments. It has already raised capital of Rs85.0bn from its promoter bank HDFC Ltd and will shortly do Rs150bn preferential allotments, which help further augment capital for loan growth of 20-22% and improve liquidity for the bank.
We have factored the capital raise of Rs250.0bn in our estimates for FY19E, which has led to increase in ABV by 18/15% for FY19/FY20E. Retain BUY with increased target price of Rs2,492 (from Rs2,251) based on 4.2x Mar-20 ABV.
10:45 AM
Two wheeler stocks trade weak; Hero MotoCorp, TVS Motor hit 52-week low
Shares of two wheeler companies were under pressure with Hero MotoCorp and TVS Motor Company hitting their respective 52-week lows and Bajaj Auto trading close to its 52-week low, falling up to 7% on the BSE in early morning trade on Monday. READ MORE
10:31 AM
Emami's high dependence on rural sales may prove to be a boon this year
Considered as Emami’s bane last year, the company’s high dependence on rural sales may prove to be a boon this year. Rural sales of the fast-moving consumer goods (FMCG) major count for more than 50 per cent of its top line, the highest compared to its peers like HUL, Dabur and Marico, among others. READ MORE
10:17 AM
Strong start to the Q1 earnings season: Net profit of 113 companies up 20%
The earnings season for the first quarter (Q1) of 2018-19 has started on a strong note for Corporate India. The combined net profit of 113 companies that have declared their results for the April-June 2018 quarter was up 20.3 per cent on a year-on-year (YoY) basis, growing at the fastest pace in the last nine quarters. READ MORE
10:00 AM
Market Check
S&P BSE Sensex 36,607.68 Up 0.31%
Nifty 50 11,042.95 Up 0.30%
S&P BSE 200 4,711.71 Up 0.41%
Nifty 500 9,317.95 Up 0.34%
S&P BSE Mid-Cap 15,300.08 Up 0.68%
S&P BSE Small-Cap 15,795.90 Up 0.47%
09:46 AM
17 of the 30 Sensex stocks are now below their 200-day moving average
The benchmark Sensex is hovering around its lifetime high, but more than half of its components are trading below their long-term average prices. According to data, 17 of the 30 Sensex stocks are now below their 200-day moving average (200-DMA). This indicates that the index gains are driven by few stocks, while most others reel under pain. READ MORE
09:34 AM
MUST READ Is pharma sector worth the bet?
The pharma sector has been depressed for several years. One key reason for this is more stringent inspections by the US Food & Drug Administration (FDA) that has led to many Indian export facilities being debarred from exporting to the US. The FDA has a huge team doing Indian inspections and almost every pharma exporter has had problems passing the test. READ MORE
09:24 AM
Edelweiss on Wipro
Management’s commentary, yet again, bolsters our Most bullish demand environment stance. However, client-specific concerns, weakness in India and headwinds in HPS, utilities & communications will continue to weigh on growth. While we raise the sector’s multiple in light of the robust demand environment, we will wait for these issues to ebb before raising Wipro’s multiple. Maintain ‘HOLD’ with target price of Rs 330
09:21 AM
Nifty sectoral trend
09:20 AM
BSE Sensex gainers and losers
09:17 AM
Market at open
At 9:15 AM, the S&P BSE Sensex was trading at 36,541, up 45 points while the broader Nifty50 was ruling at 11,028, up 18 points.
09:15 AM
IDBI Capital on HDFC Bank
Loan growth is healthy at 22%, driven by retail segment. NII and PAT growth of 15% and 18% respectively is almost in line with our expectations. Fee income has grown by 23%. Bank did not avail RBI dispensation and made entire MTM depreciation of Rs3.9bn during the quarter.
Core PBT growth (excluding treasury) is 29%. Asset quality has been stable and has been one of the best in the sector. Given all regulatory approvals in place, we have factored equity issuance of Rs240bn. We retain our BUY rating with a target price of Rs2,600 valuing the stock at 4.25x (25% premium to mean) P/ABV FY20
09:13 AM
Stocks in news
· UPL Ltd. to acquire Arysta Lifescience in an all cash deal worth $4.2 billion
· Wipro guided for IT services revenues to be in range of $2,009 mn to $2,049 mn in the second quarter; will acquire U.S.-based Alight Solutions' India operations for $117 mn
· Just Dial approved buyback of 27.5 lakh shares, or 24.26% equity, at Rs 800 each. The buyback amount to not exceed Rs 220 cr
· Havells to merge all India-based subsidiaries with self
· Hathway Cable to raise Rs 100 cr via preferential allotment of equity shares to promoter
· Muthoot Finance received primary SEBI nod for AMC business
· IMP Powers started production of Kinetic Energy Turbine in Silvassa
· Sintex Plastics clarified that change in auditors has been effected only post audit and not abruptly
· Lyka Labs board accepted in-principle approval received from Dena Bank for compromise settlement of their account
· Alok Industries said that their liquidation application has been withdrawn
· Cadila Healthcare’s Zydus received final approval from the U.S. FDA for Acetylcysteine Injection
· BPCL’s board approved transfer of Gas Business Division to subsidiary Bharat Gas Resources Limited. The transaction is likely to be completed in three-four months
(Source: IIFL report)
09:12 AM
MARKET COMMENT Amar Ambani, head of research, IIFL
An eventful week saw the market clocking gains last week. Seven of 10 most valued companies added over Rs 53,799 cr in market capitalisation last week. IT, pharma, infra, banks and energy sectors boosted market sentiment. The outlook is a flat start. Select stocks will react to the GST Council's decision of rationalising tax rates on few items.
The F&O expiry later this week will keep market volatility high. The rupee is likely to remain under pressure. A host of companies will announce their quarterly results during the week. ACC and Hindustan Zinc numbers are slated today. US President Donald Trump's remarks about being ready to act on tariffs on USD 500 billion of Chinese imports will be closely watched. US shares closed flat on Friday. Asian markets are trading lower
09:02 AM
Markets at pre-open
Index Current Pt. Change % Change
S&P BSE SENSEX 36,517.68 +21.31 +0.06
S&P BSE SENSEX 50 11,537.04 +7.59 +0.07
S&P BSE SENSEX Next 50 31,506.70 +130.14 +0.41
S&P BSE 100 11,226.26 +12.95 +0.12
S&P BSE Bharat 22 Index 3,338.30 +9.95 +0.30
(Source: BSE)
09:02 AM
Elara Capital on Havell's India
We marginally raise our EPS by 1% in FY19E on higher revenue in switchgears partly offset by the decline in revenue from EESL. Accordingly, we raise our target price by 3% to Rs 630 on 40x (unchanged) P/E as we roll forward by a quarter to June 2020E. We reiterate Accumulate as we expect an earnings CAGR of 19% over FY18-21E with an average ROE of 21% and ROCE of 20% over FY19-21E
08:58 AM
GST meeting update
1. Quarterly Returns approved for taxpayers with turnover less than Rs 5cr ( tax payments to continue on monthly basis)
2. Sanitary Napkins exempted from GST going forward
3. No decision on 1% sugar cess
4. GST on bamboo flooring reduced to 12%
5. GST on hotels would now be on actual tariff & not declares tariff
6. Ethanol for Oil Marketing Companies now at 5% vs 18% earlier
7. 5% GST ceiling on footwear raised from Rs 500 to Rs 1000
8. GST on paints & varnishes, wall putty cut from 28% to 18%
9. GST on all leather items cut from 28% to 18%
10. GST on consumer electronics - TV (up to 27"), Washing Machine, Refrigerator, mixer, juicer, grinder cut from 28% to 18%
11. GST on special purpose vehicles, work truck, trailer cut from 28% to 18%
(Source: Nirmal Bang report)
08:56 AM
EVENT UPDATE UPL to acquire US-based Arysta Life Science Inc
We expect the deal to be EPS accretive from FY20E even though we do not consider any synergy benefits in that year. We raise our FY20E EPS by marginally 3% to Rs 52.8. However, due to high leverage and deterioration in return ratios, we reduce our P/E multiple to 14x from 18x earlier and revise our target price to Rs 739 from Rs 923. Retain BUY
(Source: Emkay Global report)
08:48 AM
SECTOR WATCH Is pharma sector worth the bet?
The pharma sector has been depressed for several years. One key reason for this is more stringent inspections by the US Food & Drug Administration (FDA) that has led to many Indian export facilities being debarred from exporting to the US. The FDA has a huge team doing Indian inspections and almost every pharma exporter has had problems passing the test READ MORE
08:44 AM
TRADING IDEA
Top trading ideas from Prabhudas Lilladher: Buy IndusInd Bank
BUY INDUSINDBANK
CMP: Rs 1,902.55
TARGET: Rs 2,000
STOP LOSS: Rs 1,860
The stock has given a correction from the peak of 1990 to show signs of bottoming out at around 1880 levels and has currently indicated a positive candle pattern in the daily chart to signify strength for further upside movement in the coming days. The RSI also has shown a trend reversal from the oversold zone and has signaled a buy in this stock. With consistent decent volume participation witnessed, we recommend a buy in this stock for an upside target of 2000 keeping a stop loss of 1860. READ MORE
08:42 AM
Nifty outlook from Prabhudas Lilladher for today
Nifty has been moving a very range bound zone between the 10920 and 11070 levels while Bank Nifty also has been moving between 26650 and 27150 levels. A fresh development can only trigger a breach on either side of the indices. However, the support for the week is seen at 10820 while resistance is seen at 11160. Pharma sector looks attractive and is in a positive bias with stocks like Sun Pharma, Cipla and Auro Pharma looks promising for further upside.
08:41 AM
INTERVIEW OF THE DAY Profit of Nifty companies can double over next 5 yrs: Jyotivardhan Jaipuria
The Indian benchmark indices have rallied around 5 per cent thus far in CY18. Jyotivardhan Jaipuria, founder and managing director at Valentis Advisors, tells Puneet Wadhwa that he expects India to continue outperforming other emerging markets (EMs). READ MORE
jyotivardhan jaipuria Jyotivardhan Jaipuria, Founder and managing director, Valentis Advisors
08:39 AM
Commodity picks: Cardamom
Cardamom prices in Vandanmedu market are hovering at Rs1,080 per kg. Prices are expected to trade higher towards Rs1,120 per kg following reports over crop loss due to excess rainfall. There are reports over fungal infestation to the plants, which is expected to impact the yield READ MORE HERE
08:38 AM
STOCK IDEA
L&T- BUY
CLOSE– Rs 1,270
TARGET– Rs 1,315-1,350
L&T closed the weekly in negative territory. Its still trading near 20 DMA. Risk Reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs-1205 for the target of Rs-1315-1350 levels in short-term. READ MORE
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