MARKET WRAP: Sensex adds 234 pts, Nifty holds 11,650; YES Bank up 10%

Domestic indices ended higher on Tuesday lifted by broad-based gains led by sectors like financial, realty and FMCG sectors. The upside, however, was capped by losses in the information techology (IT) sector.

The benchmark S&P BSE Sensex settled 234 points, or 0.60 per cent, higher at 39,131 level with YES Bank, Tata Motors, Sun Pharma and NTPC being the top gainers. Among losers, TCS, Mahindra and Mahindra and HCL Technologies lost the most. The broader Nifty50, too, ended with gains of 73 points, or 0.63 per cent, at 11,661 level. 

The indices touched intra-day highs of 39,174 level at the Sensex and 11,670 level at the Nifty50.

In the broader market, S&P BSE MidCap ended 99 points, or 0.69 per cent, higher at 14,565 level while S&P BSE SmallCap added 37 points, or 0.27 per cent to close at 13,726 level. 

Sectorally, all the sectors ended in the green except IT and media. The Nifty realty index ended the day nearly 2 per cent higher, followed by Nifty PSU Bank index (up 1.37 per cent), Nifty FMCG index (up 1 per cent) and Nifty Metal index (up 0.69 per cent). Nifty IT index ended the day with a loss of 0.59 per cent.

GLOBAL CUES

Most Asian stock markets ended mixed on Tuesday as investors awaited US retail sales data and corporate earnings. 

Japan's Nikkei settled 0.7 per cent lower while South Korea's Kospi ended 0.45 per cent higher. China's Shanghai Composite slipped 0.16 per cent.

(With inputs from Reuters)

3:42 PM

Sectoral trends on NSE at close

3:42 PM

Top gainers and losers on S&P BSE Sensex at close

3:41 PM

Market at close

3:40 PM

Market at close

3:38 PM

Closing Bell

The benchmark S&P BSE Sensex settled 234 points, or 0.60 per cent, higher at 39,131 levels while the broader Nifty50, too, ended with gains of 74 points, or 0.64 per cent, at 11,663 levels. 

3:29 PM

Q1 results preview: Poor sales likely to dent earnings of auto companies

Earnings of automobile companies in the April-June quarter (Q1) of 2019-20 (FY20) are likely to be severely hit by poor sales volumes in the three months. The sales in this quarter are among the worst in over a decade.

 

A poll of five brokerages — Motilal Oswal, Edelweiss Securities, Antique Broking, Citi and Prabhudas Lilladher — estimate that the combined net profit of auto companies will drop by a third and net sales revenue will decline 10.5 per cent year on year (YoY) READ MORE

3:25 PM

Wipro Q1FY20 preview: Analysts see modest revenue growth, EBIT margin dip

Motilal Oswal Financial Services

 

The brokerage firm pegs profit after tax (PAT) at Rs 2500 crore, up 33 per cent from a profit of Rs 2,099 crore during the same quarter last year. On a sequential basis, however, MOFSL expects a flat growth in PAT of 1.5 per cent over as compared to Rs 2,483.5 crore clocked during the January-March 2019 quarter.
READ MORE

3:13 PM

IIFL on Infosys

Management sounded confident on deal pipeline, but cautious on parts of BFSI, Manufacturing and Life Sciences. INFO strengthened its capital allocation policy to return 85% of free cash flows (from 70%) going forward. We fine tune our estimates and maintain target price of Rs 780. Margin improvement and reduction in attrition remain key for further re-rating of the stock. Maintain BUY.

3:11 PM

Edelweiss on Vedanta

Our analysis of Vedanta’s (VEDL) FY19 annual report indicates that: 1) zinc and oil & gas divisions will drive growth; 2) balance sheet is strong to meet capital and debt commitments; and 3) dividend yield (10% plus) over the next two years is likely to sustain.

On the flip side, we see concerns arising from: 1) low importance to local hiring & content and public policy & advocacy in materiality matrix; 2) INR44bn contingent liability on tax disputes related to the oil & gas division; and 3) profit concentration in two divisions. At CMP, we believe risk-reward is balanced. Maintain ‘HOLD’ with target price of Rs 175. The stock is currently trading at 3.4x FY21E EBITDA

3:11 PM

Centrum on Karnataka Bank

We have revised our loan growth estimates over FY19-21E downward and FY21E provisons upwards which may negatively impact the FY21ABV by 7.8%. Hence we maintain a multiple of 0.9x FY21E ABV but reduce our TP to Rs131 from Rs142. Risks to our call include lower loan growth and stress in corporate / SME

3:09 PM

Motilal Oswal Securities on ICICI Prudential Life Insurance

We estimate earnings growth to turn positive at 9% CAGR over FY19-21 led by: (a) Protection business continuing to grow at a robust pace, thus driving margins, (b) improved operating leverage aided by increasing use of technology, and, (c) recovery in the core savings business. We estimate IPRU to report ~22% CAGR in VNB over FY19-21E  led by 17% CAGR in new business APE while operating RoEV is expected to sustain at ~19%. Maintain BUY with price target of Rs 475/share (2.3x Mar-21E EV).

3:08 PM

Kotak on consumer sector

The KIE consumer universe (ex-ITC) underperformed the broader markets, down 3% over the past one month. Fall in crude price augurs well; some inflation for agri-commodities. We noticed increased new product launch activity centered at leveraging the fast-growing e-commerce and modern trade channels. The sector remains expensive despite some recent underperformance; top picks: JUBI, ITC, CLGT and MRCO.

3:05 PM

NEWS ALERT | Moody's affirms ONGC's 'Baa1' rating; outlook stable: CNBC TV18

3:04 PM

Wipro trades flat

2:54 PM

Real estate developers at risk as stress in credit market dries up funding

India’s year-old credit woes that began after a shock default by the IL&FS Group continue to linger, with many mortgage lenders struggling to roll over debt amid downgrades in their credit ratings. Shadow banks that lent heavily to developers in recent years are among the worst hit, as the recovery in housing sales remains tepid amid a slowdown in the nation’s economic growth. READ MORE