MARKETS LIVE: Indices range-bound, Nifty near 10,550; Metal stocks rally

Catch all the market action here

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The markets are trading in a range on Thursday taking cues from their global peers.

However, stock-specific action will continue to impact sentiment during the day, given that we are in the middle of the March 2018 quarterly result season.

After Infosys lowered its Ebitda guidance, investors will now look to TCS quarterly results, due later today. Apart from TCS, corporate earnings of IndusInd Bank, Reliance Power, Bharat Seats and Cyient are also due later in the day. On Wednesday, ACC, HDFC Life, Mastek and Mindtree declared their Q4FY18 results.

Among the sectoral indices, the Nifty Metal index was nearly 4% higher led by a rise in shares of Hindustan Copper, National Aluminium Company and Hindalco Industries.

In the global markets, resource stocks were on a roll in Asia on Thursday as oil prices hit heights not seen since late 2014 and ignited a rally across commodities, though the potential boost to inflation globally also put some pressure on fixed-income assets.

Resource stocks were the big winners driving Australia’s main index up 0.6 per cent. Japan’s Nikkei gained 0.6 per cent, led by a 2.9 per cent rise in basic materials. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.8 per cent, with energy up over 2 per cent.
(with wire inputs)
  • 03:41 PM

    Nifty Metal Index ends 4.52% higher. Top gainers:

    COMPANY LATEST PREV CLOSE GAIN() GAIN(%)
    HIND.COPPER 80.00 71.40 8.60 12.04
    HINDALCO INDS. 264.50 242.80 21.70 8.94
    NATL. ALUMINIUM 87.10 80.15 6.95 8.67
    VEDANTA 310.45 291.10 19.35 6.65
    WELSPUN CORP 151.75 143.25 8.50 5.93
  • 03:37 PM

    Sectoral Performers

  • 03:36 PM

    BSE Sensex: Tata Steel, Yes Bank among top gainers, Axis Bank top loser

  • 03:32 PM

    Market at close
    The S&P BSE Sensex ended at 34,427, up 96 points while the broader Nifty50 index settled at 10,565, up 39 points.
  • 03:26 PM

    Idea Cellular hits 52-week low; stock falls 35% in 2018
    Idea Cellular hit a 52-week low of Rs 70, down 2% on the BSE, on concerns of delay in merger between the company and Vodafone India.
    The stock of telecom services provider trading at its lowest level since January 20, 2017, has fallen 35% thus far in the current calendar year 2018.
  • 03:15 PM

    Vedanta’s Electrosteel buy is value-accretive; move to buoy earnings
    Mining major Vedanta has taken a step towards adding steel to its armoury, which is expected to buoy its value and earnings.
    With the company’s resolution plan for acquisition of Electrosteel Steels being approved by the National Company Law Tribunal, Vedanta will be acquiring a 90 per cent stake in the latter.
  • 03:00 PM

    EARNINGS HDFC life Q4 PAT up 24% at Rs 11 billion in FY18; total premiums rise 21%
    HDFC Standard Life Insurance Company Ltd (HDFC Life) has posted net profit growth of 24 per cent for FY18 to Rs 11.1 billion, compared with Rs 8.9 billion in FY 17. New Business Premium for HDFC Life rose to Rs 113.5 billion for FY18, a 32 per cent increase from Rs 86.2 billion in FY17.
    For the fourth quarter ended March 31, 2018, the company’s net profit rose 40.4 per cent to Rs 3.5 billion as compared to the same quarter last fiscal. 

    IMPACT

  • 02:46 PM

    EARNINGS IMPACT ACC climbs to 5-week high on strong Q4 earnings
    Shares of cement maker ACC climb as much as 3% to Rs 1,620, highest since March 14 in intra-day trade today on strong Q4 results.
    Company said on Wednesday its March-quarter profit rose 19% to Rs 2.5 billion. ACC reported better-than-expected quarter as cost pressure from high petroleum coke prices, higher freight was not fully reflected.
  • 02:33 PM

    EARNINGS IndusInd Bank Q4 profit jumps 27 per cent
    IndusInd Bank Ltd posted a nearly 27 per cent surge in its fourth-quarter net profit on Thursday, driven by higher interest income.
    Net profit climbed to Rs 9.53 billion ($144.9 million) in the quarter ended March 31, from Rs 7.52 billion a year ago, IndusInd Bank, the country’s sixth-largest private lender by assets, said.
  • 02:16 PM

    Midhani zooms 82% in 7 days post signing of 2 pacts in Defexpo India 2018
    Shares of Mishra Dhatu Nigam (Midhani) are locked in upper circuit of 10% for the second straight day, rising to Rs 169 per share on the BSE after the company said it has signed two pacts in Defexpo India-2018.
  • 02:00 PM

    Market Check

    S&P BSE Sensex 34,401.93 Up 0.20%
    Nifty 50 10,557.70 Up 0.30%
    S&P BSE 200 4,646.18 Up 0.34%
    Nifty 500 9,346.50 Up 0.37%
    S&P BSE Mid-Cap 16,847.26 Up 0.47%
    S&P BSE Small-Cap 18,141.58 Up 0.42%
  • 01:47 PM

    Gold gains as metals rally sparks inflation concerns
    Gold prices rose for a fifth straight session helped by a rally in base metals that has fuelled concerns of inflationary pressures, with lingering U.S.-China trade tensions lending further support to the yellow metal.
    Spot gold was up 0.2 percent to $1,351.51 per ounce at 0441 GMT, a day after it touched a one-week high of $1355.74.

  • 01:34 PM

    Unilever stands by outlook after first quarter meets expectations
    Unilever, the Anglo-Dutch consumer goods giant, reported first-quarter sales figures that met expectations, helped mainly by increases in the volume of products sold, and maintained its full-year outlook, Reuters reported.
    Unilever undertook a deep review of its business and structure last year after fending off an unwanted $143 billion takeover offer from Kraft-Heinz . The decision to sell its struggling spreads business also came from that review.
  • 01:16 PM

    Top gainers on BSE500

    COMPANY PRICE() CHG() CHG(%) VOLUME
    HIND.COPPER 81.10 9.65 13.51 2927544
    NATL. ALUMINIUM 87.45 7.25 9.04 3992564
    TAKE SOLUTIONS 211.05 16.75 8.62 197988
    MMTC 67.70 4.90 7.80 1162932
    BASF INDIA 2139.90 135.35 6.75 2596
  • 01:00 PM

    Fortis investors call meet, demand removal of four directors from its board

    In a new twist to the Fortis hospital takeover saga, two large portfolio investors have demanded replacement of the existing board. East Bridge Capital Master Fund and Jupiter India fund, which own over 12 per cent shares in Fortis Healthcare, served a notice on Wednesday for holding of an extraordinary general meeting to select new members
  • 12:50 PM

    COMPANY WATCH P&G to acquire consumer health unit of Germany’s Merck for about $4.21 bn

    Procter & Gamble Co said on Thursday it has signed an agreement to acquire the consumer health business of German pharmaceuticals company Merck KGaA for about $4.21 billion (3.4 billion euros)

  • 12:41 PM

    Damper for private oil firms as govt decides to retain higher profit share

    In what is likely to impact investment decisions of oil and gas companies in the exploration and production segment, such as Reliance Industries (RIL) and Vedanta Cairn, the Ministry of Petroleum and Natural Gas is insisting on a new clause in the work programme for 2018-19 that protects its profit share

  • 12:38 PM

    Anand Rathi Institutional Research on Mastek

    With $34.7 million in revenue, up 6.5% q/q (CC ~3.4% in dollar terms), Mastek had a sound Q4. The EBITDA margin at 12.4% was flattish as the company strengthened its sales team and hired talent at leadership roles. The tax rate is likely to move toward 25% and other income to be high on R&D investments. Consequently, we further raise our FY18/ 19e earnings 20%/13%, and our target PE to 15x to derive our target of Rs 650 (from Rs 520, at 13x FY20e EPS earlier). This reflects many quarters of consistent high growth and builds in a 100bp margin expansion by FY20

  • 12:36 PM

    Religare on Jamna Auto

    Jamna Auto reported robust revenue growth in Q3FY18 led by strong demand for commercial vehicles (volumes up 28% yoy). Net revenue and Net profit increased by 54.9% and 50.1% yoy respectively. We expect demand for Commercial vehicles to remain healthy in FY19E, given bright outlook for the Indian economy and rising infrastructure spending. Recommend Buy.
  • 12:35 PM

    TCS Result Expectation (Image source: Motilal Oswal Research)

  • 12:33 PM

    Motilal Oswal Research on Mindtree

    With business momentum back on track, we expect a CAGR of 14% in USD revenue and 29% in earnings over FY18-20. This brings Mindtree (MTCL) in the league of well-performing tier-II IT peers like L&T Infotech, MphasiS and Hexaware (their average multiples discount FY20E earnings by 18x). Pegging MTCL’s multiple at the same level, we upgrade our target price to Rs 1,000 (15% u pside). Maintain Buy.
  • 12:31 PM

    UltraTech Cement commissions new plant in Madhya Pradesh; stock up 4%
    Shares of UltraTech Cement have moved 4% higher to Rs 4,152 per share on the BSE, after the company announced commissioning of a greenfield clinker capacity of 2.5 million tonnes per annum capacity (mtpa) at Manawar, Dhar, Madhya Pradesh (MP).
    UltraTech has commissioned a cement grinding facility with a capacity of 1.75 mtpa along with an auto loading facility. Another cement grinding facility with a capacity of 1.75 mtpa as well as a waste heat recovery system of 13 MW capacity is under construction and both are expected to be completed before September, 2018.
  • 12:15 PM

    One-third of 148 SME stocks listed in FY18 in red; 7 lost half their value
    Nearly one-third of the 148 small and medium enterprise (SME) stocks that got listed last financial year are trading in the red despite the euphoria surrounding their public floats. Seven stocks have lost more than half of their value, with share prices of Nouritrans Exim and Ashoka Metcast sliding the most by 75 per cent and 62 per cent, respectively.
  • 12:01 PM

    Markets at Noon

    S&P BSE Sensex 34,384.04 Up 0.15%
    Nifty 50 10,557.90 Up 0.30%
    S&P BSE 200 4,644.61 Up 0.31%
    Nifty 500 9,343.75 Up 0.35%
    S&P BSE Mid-Cap 16,825.72 Up 0.34%
    S&P BSE Small-Cap 18,135.95 Up 0.39%
  • 11:45 AM

    Metal shares rally; Hindustan Copper, Hindalco, Vedanta up over 5%
    Shares of metal companies rallied by up to 13% in early morning trade on Thursday on higher global commodity prices. Hindustan Copper, National Aluminium Company (Nalco), Hindalco and Vedanta from the Nifty Metal index were up 5% to 13% on the National Stock Exchange (NSE) in intra-day trade. Steel Authority of India, JSW Steel, Hindustan Zinc, MMTC and Jindal Steel & Power were up 2% to 4%.
  • 11:30 AM

    Sebi revenues may remain flat in FY19; buyback activity can dent collection
    The Securities and Exchange Board of India (Sebi) is estimating that revenues in 2018-19 will remain largely the same as in the previous financial year.
    According to sources, the market regulator estimates total income at Rs 6.25 billion, 2.3 per cent more than Rs 6.11 billion in 2017-18. The reason for flattish growth is an expected moderation in initial public offerings (IPOs) and share buybacks.
  • 11:18 AM

    Stocks at 52-week high

    COMPANY PRICE() 52 WK HIGH CHG() CHG(%)
    AARTI INDS. 1314.00 1347.00 -11.70 -0.88
    FIRSTSOUR.SOLU. 59.40 59.70 1.10 1.89
    GODREJ CONSUMER 1125.30 1157.60 -5.95 -0.53
    JAMNA AUTO INDS. 93.15 93.90 4.80 5.43
    K E C INTL. 433.00 442.60 -4.90 -1.12
  • 11:08 AM

    Merck zooms 19% on open offer by Procter & Gamble Overseas India
    Merck surged 19% to Rs 1,795, also its record high on the BSE in intra-day trade, after the Procter & Gamble Overseas India makes mandatory open offer to acquire 26% stake in the company at price of Rs 1,500.36 per share.
    Procter & Gamble Overseas India BV, together with The Procter & Gamble Company in its capacity as a person acting in concert made an open offer for acquisition of up to 4.32 million shares representing 26% of total equity of Merck at a price of Rs 1,500.36 per share, ICICI Securities, the manager of the open offer said in statement on behalf of Merck.
  • 10:58 AM

    Reliance Securities on JK Lakshmi Cement

    JK Lakshmi Cement (JKLC) gained 1% in yesterday’s trade on the expectations of likely improvement in its profitability led by firm demand and favourable realization in Eastern markets.

    We expect JKLC to report a growth over 60% in EBITDA in 4QFY18 owing to firm realizations in Eastern and Gujarat markets along with cost synergies. Notably, demand scenario in its key markets is likely to remain benign in FY19 led by sustained development in infrastructure activities and reviving rural economy, which bodes well to JKLC.
    Further, considering the initiatives undertaken to improve Eastern operations profitability by means of WHRS, CPPs, conveyor belt, railway siding and SGU in Orissa are likely to aid JKLC to improve its operational performance further in ensuing quarters. We maintain our fundamental BUY rating on the stock with a Target Price of Rs 550
  • 10:51 AM

    Antique Stock Broking on ACC

    Despite a good Q1, we trim our CY18/CY19 EBITDA estimates by 6% to factor weaker than expected pricing trend for industry. We built in a 6.5%/5.5% YoY volume growth for the next two years, reflecting constraint in capacity, which company would expectedly witness over next two years (except for the Southern region plants). We value the stock at price target of INR1,800 (earlier 1,880), based on 12x 2019 EV/EBITDA. We maintain HOLD rating on the stock. ACC remains lower in our pecking order in the large cap space due to (1) higher cost structure and (2) lower growth outlook

  • 10:50 AM

    Steel firms likely to see healthy growth in volumes, profitability in FY19
    Steel companies are in the news for strong production numbers. In FY18, JSW Steel posted a 5 per cent increase in production and Tata Steel India (domestic operations) reported its highest ever output at 12.48 million tonnes (mt), an increase of 7 per cent.
    Analysts expect to see healthy growth in volumes and profitability in FY19, too. Shares of Tata Steel and JSW Steel are up 7-9 per cent, while Steel Authority of India (SAIL) and Jindal Steel and Power (JSPL) have gained 12-17 per cent from their March-end lows.
  • 10:38 AM

    Kotak Institutional Equities on HDFC Standard Life

    High volume growth led by ULIPs, significant increase in share of protection business and an improving performance on mortality and persistency front led to solid (23.1%) VNB margins and (21.5%) operating RoEV during FY2018. Near-term moderation in volumes from ULIPs will reduce new business strain and provide an upside to earnings. While its performance remains best in class, rich valuations constrain our positive view on HDFC Life’s business. Post the recent rally, we revise rating to SELL from REDUCE with target price of Rs 405 (up from Rs 385).
  • 10:36 AM

    Investec Securities on Mindtree results

    Mindtree reported a robust 5.5% QoQ growth in USD revenues (vs est of 4.6% QoQ) and 4.5% QoQ in constant currency (vs est of 4.1% QoQ). EBIT% also improved by 146bps QoQ. Management guided to FY19E seeing better revenue growth and margins than FY18. That said, this has limited impact on our FY19E and FY20E EPS estimates considering non-recurrence of Rs916m of provision write-backs (16% of PAT) and increase in effective tax rates (ETR) from 23% to 27-28%. Reiterate HOLD with TP of Rs935 (Rs695 earlier) based on a DCF implying a target P/E multiple of 18.5x (14x earlier).

  • 10:32 AM

    Oil marketing companies slip 2% to 4%, HPCL, BPCL hit 52-week lows
    Shares of oil marketing companies (OMCs) were trading lower in the range of 2% to 4% on the BSE in early morning trade on Thursday after global crude oil prices hit 3-year high on Wednesday.
    Hindustan Petroleum Corporation or HPCL (down 4% at Rs 308), Bharat Petroleum Corporation or BPCL (down 3.7% at Rs 390) and Mangalore Refinery & Petrochemicals or MRPL (down 3% at Rs 104) have hit their respective 52-week lows on the BSE in intra-day trade today.
  • 10:31 AM

    Upcoming Corporate Results / Board Meets (Source: BS Research Bureau)

    IndusInd Bank 19-04-18
    TCS 19-04-18
    HDFC Bank 21-04-18
    Bharat Fin Incl 23-04-18
    Bharti Infratel 23-04-18
    Chola Inv 23-04-18
    HDFC Bank 23-04-18
    ICICI Prud Life 24-04-18
    IDFC Bank 24-04-18
    M & M Fin 25-04-18
    Wipro 25-04-18
    Axis Bank 26-04-18
    Biocon 26-04-18
    Tata Elxsi 26-04-18
    Yes Bank 26-04-18
    Axis Bank 27-04-18
    IDFC 27-04-18
    RBL Bank 27-04-18
    Can Fin Home 28-04-18
    Shree Cement 28-04-18
    Containr Crp 30-04-18
    HDFC 30-04-18
    Kotak Mah Bank 30-04-18
    Dabur India 01-05-18
    ICICI Bank 07-05-18
    Godrej Cons 08-05-18
    Nestle India 10-05-18
  • 10:27 AM

    CRUDE OIL IMPACT Oil marketing companies slip 2% to 4%, HPCL, BPCL hit 52-week lows

    Shares of oil marketing companies (OMCs) were trading lower in the range of 2% to 4% on the BSE in early morning trade on Thursday after global crude oil prices hit 3-year high on Wednesday.

    Hindustan Petroleum Corporation or HPCL (down 4% at Rs 308), Bharat Petroleum Corporation or BPCL (down 3.7% at Rs 390) and Mangalore Refinery & Petrochemicals or MRPL (down 3% at Rs 104) have hit their respective 52-week lows on the BSE in intra-day trade today

  • 10:16 AM

    ICICI Bank chairman meets MF heads over succession plan, if Kochhar quits
    With investments of over Rs 300 billion riding on the stock, heads of mutual fund (MF) houses met ICICI Bank Chairman M K Sharma over the succession plan at the private sector lender. It is learnt that Sharma met top MF executives to provide clarifications on the Videocon loan controversy.
    Sources said the Rs 21-trillion MF industry raised questions over the bank’s “back-up” or succession plan in case Chief Executive Officer and Managing Director (CEO & MD) Chanda Kochhar steps down.
    ICICI, Videocon
  • 10:04 AM

    Market Check

    S&P BSE Sensex 34,410.79 Up 0.23%
    Nifty 50 10,560.25 Up 0.32%
    S&P BSE 200 4,644.17 Up 0.30%
    Nifty 500 9,340.85 Up 0.31%
    S&P BSE Mid-Cap 16,816.99 Up 0.29%
    S&P BSE Small-Cap 18,116.85 Up 0.28%
  • 09:47 AM

    Steel firms likely to see healthy growth in volumes, profitability in FY19
    Steel companies are in the news for strong production numbers. In FY18, JSW Steel posted a 5 per cent increase in production and Tata Steel India (domestic operations) reported its highest ever output at 12.48 million tonnes (mt), an increase of 7 per cent.
    Analysts expect to see healthy growth in volumes and profitability in FY19, too. Shares of Tata Steel and JSW Steel are up 7-9 per cent, while Steel Authority of India (SAIL) and Jindal Steel and Power (JSPL) have gained 12-17 per cent from their March-end lows.
  • 09:28 AM

    SECTOR WATCH: Pharma

    We initiate coverage with MNC pharma companies which we believe are “pure domestic players” in the pharma basket. These companies will continue to enjoy premium given 1) stability in the business, 2) high ROCEs, 3) strong balance-sheet, and 4) high dividend. We like Abbott India (BUY, 17% upside potential, target PER of 26x+Rs954/sh), Merck (ACCUMULATE, 5% upside potential, target PER of 19x+Rs298/sh) and Sanofi India (ACCUMULATE, 12% upside potential, target PER of 30x+Rs568/sh). We are cautious towards Glaxo Pharma (HOLD, 5% downside potential, target PER of 42.5x+Rs62/sh).

    (Source: IDBI Capital)

  • 09:27 AM

    STOCK IDEA Vesuvius India Limited (VIL)
    Rating: Buy; Target Price: Rs1,500

    VIL has seen time correction and remained flat with 6M/12M returns of -4%/5% in line with our hold stance. We like the inherently strong business model of VIL which is well placed to benefit from i) consolidation in domestic steel industry leading to higher market share for top few producers & VIL’s key clients like Tata Steel & JSW Steel, ii) recovery in domestic steel demand which would pave way for strong volume growth and iii) entry into new segments (cement) coupled with operational savings through productivity enhancement.

    VIL’s 5Y average P/E stands at ~20x and we value VIL on 22x P/E (10% premium to 5Y average). We value the stock at CY19E EPS and ascribe 22x P/E to arrive at a fair value of Rs1500. Upgrade to Buy. Key risks are extreme stress in the steel industry and higher raw material costs

    (Source: Centrum Broking)

  • 09:25 AM

    Nifty Metal index up over 1%: Top gainers in the pack

    COMPANY LATEST PREV CLOSE GAIN() GAIN(%) VOLUME
    NATL. ALUMINIUM 83.90 80.15 3.75 4.68 175226
    HINDALCO INDS. 250.00 242.80 7.20 2.97 88989
    HIND.COPPER 72.90 71.40 1.50 2.10 29120
    VEDANTA 296.75 291.10 5.65 1.94 93243
    HIND.ZINC 328.10 323.40 4.70 1.45 16031
  • 09:24 AM

    MARKET COMMENT Amar Ambani, head of research, IIFL

    The market finally saw a correction after rallying for 9 consecutive sessions. Indices tumbled suddenly after a flat start due to a sharp fall seen in private and PSU banks. In its Fiscal Monitor report, the International Monetary Fund said that in India, ‘full and smooth implementation of the new goods and services tax is necessary to avoid tax revenue underperformance resulting in cuts to capital expenditure.

    US shares ended mixed with the S&P500 closing in the green, while the Dow fell. Asian markets are higher for now. Wall Street didn’t react much to the Beige Book report, which stated that economic activity remained at “a modest to moderate pace” in March and early April. The outlook is a flat start with a positive bias. TCS, IndusInd Bank and Reliance Power are set to announce their numbers today

  • 09:23 AM

    Sector Watch: Aviation

    Market share
    Mar-18
    Feb-18
    Mar-17
    Air India
    13.4%
    13.2%
    13.0%
    Jet Airways
    16.6%
    16.8%
    18.0%
    Spicejet
    12.7%
    12.4%
    13.2%
    Go Air
    9.0%
    9.5%
    8.9%
    Indigo
    39.5%
    39.9%
    39.9%
    Others
    8.7%
    8.1%
    7.0%
    (Source: Nirmal Bang)
  • 09:21 AM

    News Rover

    ·         Infibeam received online marketplace contract from NSDC
    ·         Infosys clarified it has not received any anonymous whistleblower complaint
    ·         NMDC cuts prices of lump ore and fines by Rs 100 each to Rs 2,900 per tonne and Rs 2,560 per tonne with effect from April 18
    ·         Sun Pharmaceuticals unit hiked stake in Ranbaxy Malaysia by 4.93%
    ·         GE Shipping takes delivery of second-hand very large gas carrier; committed to buy one second-hand medium gas carrier
    ·         Bharti Airtel announced 30GB free data for users upgrading to 4G
    ·         ABG Shipyard IRP invited fresh bids for the company
    ·         Container Corp to consider stock split on April 30
    ·         Jain Irrigation board approved plan to raise Rs 260 crore loan from World Bank arm
    ·         Magma Fincorp raised Rs 500 crore at a price of Rs 155 per share through a QIP
    ·         Mercator says coal mining operations in Indonesia have attained near optimum levels
    ·         Dynamatic Technologies signed MoU with France’s Daher Aerospace
    ·         Mishra Dhatu Nigam signed two pacts in DefExpo India 2018
    ·         GEE to enter into pact with Avion Investments for development of IT Pak Project at Thane Plant
    ·         Dynemic Products Ltd. gets closure notice for Gujarat unit from Gujarat Pollution Control Board
    ·         Bharat Dynamics signed licensing agreement with DRDO for Astra MK-1 Weapon System
    ·         Lemon Tree Hotels signed three management contract for a hotel each in Rishikesh, Neelkanth and Mussoorie
    ·         Trigyn Technologies received three IT services contract in U.S
    (Source: IIFL report)
  • 09:19 AM

    LONG SHORT STRATEGY: Pair Trade – Long M&M & Short Escorts
    Pair Trade: Buy M&M May Future @ 804 (1 lot) & Sell Escort May Future @ 974 (1 lot) for cash neutral Buy M&M 334 shares for delivery
    Entry price ratio: 0.81 to 0.83 ratio range
    Target price ratio: 0.94   Stop loss price ratio: 0.78
    Ratio: Current M&M/Escorts ratio stands at 0.82 (i.e.804 (M&M)/974 (Escorts))
    Rationale:
    Despite the price ratio between M&M and Escorts recently touching its lower band 2 (i.e mean – 2SD), the correlation is improving (21-day correlation at 94%), which indicates the spread could revert, hinting at an impending mean reversal. A favorable risk reward ratio could hence yield decent returns in the short run. We recommend a pair trade.

    (Source: IIFL)

  • 09:18 AM

    Sectoral Trend

  • 09:18 AM

    Emkay Global on insurance companies

    We have used appraisal value (AV) methodology to value the Life Insurance companies in India. We strongly believe that bank-promoted insurance companies have an advantage owing to access to their parent’s strong distribution network. We thus initiate coverage with a ‘BUY’ rating on SBIL at 3.3x FY20E enterprise value (EV) and target price (TP) of Rs894 (+24% upside) and MAXF at 1.6x FY20E EV and TP of Rs628 (+44% upside). We assign ‘ACCUMULATE’ rating on IPRU at 2.8x FY20E EV and TP of Rs453 (+19% upside). We assign ‘REDUCE’ rating on HDFCSL at 4.2x FY20E EV and TP of Rs444 (-10% downside), given the positives already priced in the stock

  • 09:17 AM

    Top Sensex gainers and losers

  • 09:16 AM

    Markets at Open

    At 9:16 am, the S&P BSE Sensex was trading at 34,443, up 112 points while the broader Nifty50 was ruling at 10,567, up 41 points

  • 09:15 AM

    INTERVIEW OF THE DAY We see a big correction if BJP loses in 2019: Elara Capital’s Raj Bhatt

    Political uncertainty is the biggest risk for the market, said Raj Bhatt, vice-chairman and CEO, Elara Capital. The stocks could tank more than what it did after the United Progressive Alliance-1 (UPA-1) came to power in 2004, as the market has not yet priced in a Bharatiya Janata Party (BJP) defeat, Bhatt told Samie Modak

    raj bhatt, elara capital

    Raj Bhatt
  • 09:01 AM

    Markets at pre-open

    Index Current Pt. Change % Change
    S&P BSE SENSEX 34,431.52 +99.84 +0.29
    S&P BSE SENSEX 50 11,022.71 -16.44 -0.15
    S&P BSE SENSEX Next 50 34,330.60 -72.15 -0.21
    S&P BSE 100 10,939.81 -17.37 -0.16
    S&P BSE Bharat 22 Index 3,585.96 +8.08 +0.23

    (Source: BSE)

  • 08:57 AM

    Automobile sector’s Q4 show could offer signals about entire economy
    On the whole, the Reserve Bank of India Monetary Policy Review and other macro-economic data presents a picture of an improving economy. Inflation remained benign in March. The Consumer Price Index was up 4.3 per cent year-on-year.

    The automobile sector also has a very long and complex value chain, starting with mining at one end and ending with high-end marketing and advertising services. It is also a barometer of consumption demand. The Q4 results in the auto industry could offer signals about trends across the entire economy.

  • 08:53 AM

    EARNINGS Mindtree’s Q4 net profit up 87.5%
    Global technology services company Mindtree on Wednesday reported a rise of 87.5 per cent in its consolidated net profit for the fourth quarter to Rs 182.2 crore.
    “We ended the year on a strong note, and seeing that momentum creating a healthy start to our new fiscal year. It’s especially heartening that our client satisfaction ratings reached an all-time high, setting the benchmark in our industry,” said Rostow Ravanan, CEO and Managing Director, Mindtree.
  • 08:52 AM

    EARNINGS ACC Q1 consolidated net profit up 18%

    Cement and ready mixed concrete manufacturer ACC on Wednesday reported an increase of 18.48 per cent in its consolidated net profit for the quarter ended March 31, 2018.
    According to the company, its net profit during the quarter under review rose to Rs 250 crore from Rs 211 crore reported for the corresponding period of the previous fiscal.

  • 08:49 AM

    Oil rises 2% as Saudi Arabia aims at $100/bbl, US stockpiles fall
    Oil extended gains on Wednesday, rising more than $1 on a reported decline in US crude inventories and after sources signalled top exporter Saudi Arabia wants to see the crude price closer to $100 a barrel.
    Top oil exporter Saudi Arabia would be happy for crude to rise to $80 or even $100, three industry sources said, a sign Riyadh will seek no changes to a supply-cutting deal even though the agreement’s original target is within sight.
  • 08:47 AM

    TCS Q4FY18 result preview: Here’s what brokerages expect
    Infosys surprised the Street by lowering its EBIT guidance for FY19 while announcing its March quarter (Q4FY18) numbers on Friday. Will TCS follow suit? The Tata Group company is likely to announce its results for the March quarter and the full financial year 2017-18 (FY18) on April 19.
    On a year-to-date basis, the stock has rallied around 17% and has outperformed the Nifty IT index that gained over 12% during this period. By comparison, the Nifty50 index is down 0.1% YTD, ACE Equity data showed.
  • 08:45 AM

    Today’s picks: From HPCL to Tech Mahindra, stocks to watch on Thursday
    HPCL
    Current price: Rs 319.5
    Target price: Rs 314
    Keep a stop at Rs 323 and go short. Add to the position between Rs 315 and Rs 316. Book profits at Rs 314.
  • 08:43 AM

    Report on Federal Bank by Reliance Securities
    Reco: Buy 
    The Bank is expected to deliver further improvement in operational performance led by improving loan book growth and improving assets liability mix. Advances grew by 5.3% QoQ to Rs850bn in 3QFY18, as SME, Wholesale and Retail (including Agri) book grew by 13.3%, 4.4% and 6.85% QoQ respectively.
    Further, continued moderation in SMA-2 balance clearly suggests fresh slippage will show declining trend in FY19. Notably, the Bank is gradually coming out of the scenario marked with higher provisioning and continued stress on asset quality for last few quarters. Management expects credit cost to remain in comfortable level of 60-70bps in FY19.
  • 08:42 AM

    Nifty outlook and top trading ideas from Prabhudas Lilladher for today
    Nifty has shown signs of exhaustion near the 10600 level which was anticipated and the chances of a downward movement in the coming days cannot be ruled out. BankNifty has turned down its trend after 15 days and the sentiment has turned little bit shaky. However, the support for the day is seen at 10470 while the resistance would be at 10570 levels.
Source business-standard.com
Via business-standard.com

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