MARKETS ON THURSDAY: Crude at $80/bbl, K'taka verdict keep indices on edge

Benchmark indices slipped on Thursday, hurt by financial stocks

Benchmark indices slipped on Thursday as oil prices hit their highest level since November 2014 on Thursday, with Brent crude touching $80 per barrel as supplies tighten and tensions with Iran simmer.

The S&P BSE Sensex ended at 35,149, down 239 points while the broader Nifty50 index settled at 10,683, down 58 points.

Back home, doubts whether the Bharatiya Janata Party (BJP) could prove its majority in the southern state of Karnataka also weighed on investor sentiment.

State BJP president B S Yeddyurappa was sworn in as chief minister on Thursday morning even though his party fell short of an outright majority. He has now 15 days to prove his majority in the state legislative assembly.

Among individual stocks, Reliance Communications (RCom) surged 57% to Rs 16.55 per share on the BSE after a media report suggested that the Anil Ambani-led telecom services company and Ericsson inform National Company Law Tribunal (NCLT) in Mumbai that they are in settlement talks. RCom erased its entire 30% decline past one week.

On macro front, India’s retail inflation accelerated for the first time in four months in April, suggesting the central bank may turn hawkish at its policy meeting next month.
 

In the global markets, Asian shares held steady on Thursday, while the euro struggled near five-month lows set a day earlier following a report that Italian populist parties trying to form a coalition could ask the European Central Bank to forgive 250 billion euros of debt.

MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed, while Japan’s Nikkei gained 0.4 per cent and South Korea’s KOSPI rose 0.4 per cent.

(with Reuters inputs)

3:43 PM

Nifty FMCG index ends 1.28% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
ITC	278.95	285.85	-6.90	-2.41
P & G HYGIENE	9206.30	9396.55	-190.25	-2.02
BRITANNIA INDS.	5476.75	5542.20	-65.45	-1.18
GODREJ CONSUMER	1081.05	1093.55	-12.50	-1.14
DABUR INDIA	371.35	373.85	-2.50	-0.67

3:38 PM

Nifty Sectoral gainers and losers

3:35 PM

BSE Sensex: Top gainers and losers of the day

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 35,149, down 239 points while the broader Nifty50 index settled at 10,683, down 58 points.

3:27 PM

HUL surpasses ITC in market cap ranking first time since February 2005

Hindustan Unilever (HUL), the fast moving consumer goods (FMCG) company, has surpassed ITC, the cigarettes major, in market capitalisation (market-cap) ranking after a gap of more than one decade.
 

HUL with Rs 3,424 billion market-cap overtook ITC, which have market-cap of Rs 3,415 billion at 02:59 pm; the BSE data shows. Earlier, on February 22, 2005, HUL had market-cap of Rs 319.72 billion and ITC had market-cap of Rs 318.74 billion, CapitalinePlus data shows. READ MORE

3:22 PM

JUST NOW Brent crude above $80/bbl for the first time since November 2014

3:20 PM

Equirus Securities on Jubilant FoodWorks

 

With the new strategy yielding strong growth over the past one year, the platform is set for the next phase of growth, which would be sustainable in our view. Accordingly, we raise our FY19/FY20 sales estimates by 3%/7%; we also upgrade our EBITDA estimates by 10%/18% to factor in the higher-than-expected new store additions. Reiterate ADD with a Jun’19 target price of Rs 2,738 (vs. Rs 2,330 earlier) set at a 60x TTM EPS of Rs 45.6

3:16 PM

IIFL on JSW Steel

 

We have upgraded our estimates factoring in stronger than expected steel prices in the domestic market and benign raw material costs. We believe domestic prices would remain strong as demand has picked up and production from some companies remain impacted. The impact on this on our target price is marginally offset by the impact of the huge capex plan announced by the company. We maintain our Accumulate rating on the stock with a target price of Rs.360

3:11 PM

Bajaj Finance hits record high as Q4 profit beats estimates;stock surges 7%

 

Bajaj Finance has moved higher by 7% to Rs 2,045, also its record high on the BSE, after the company reported a better than expected 60% year on year (YoY) jumped in its standalone net profit at Rs 7.21 billion in March quarter (Q4FY18). The stock surpassed its previous high of Rs 1,989 recorded on September 8, 2017 in intra-day trade.

 

Net revenue from operations grew 40% at Rs 23.43 billion against Rs 16.78 billion in the corresponding quarter of previous fiscal. READ MORE

3:00 PM

Equirus on Exide Industries

 

We raise our FY19/FY20E standalone EPS by ~5% on expectations of higher growth and margin expansion driven by lower lead prices and operating leverage. While we remain positive on EXID, we revise our rating to ADD (from LONG) post the stock run-up over last three months. Our Jun’19 target price stands at Rs 281 (Mar’19 target of Rs 248 earlier) as we value the battery business at 22x Jun’19 EPS and insurance at Rs 46/share.

2:56 PM

RBI to the rescue with likely $15 billion bond-purchase to cap yields

 

Embattled investors in India’s government bond market are hoping to see the light at the end of the tunnel as the central bank comes to their rescue.

 

The RBI is likely to buy 1 trillion rupees ($15 billion) of securities in the current fiscal year, the survey showed, as authorities seek to cool yields and ensure a smooth passage for the government’s borrowing program. The first tranche is due Thursday. READ MORE

2:50 PM

RCom surges 48% intra-day on buzz of settlement talks with Ericsson

 

Shares of Reliance Communications (RCom) have surged 48% to Rs 15.65 per share on the BSE in intra-day trade after a media report suggested that the Anil Ambani-led telecom services company and Ericsson inform National Company Law Tribunal (NCLT) in Mumbai that they are in settlement talks. RCom erases its entire 30% decline past one week. READ MORE

2:40 PM

IIFL on Tata Steel

 

We have marginally upgraded our standalone estimates factoring stronger steel prices for H2 FY18.  JV with ThyssenKrupp will enable the company to focus on growth opportunities in India. Debt levels are expected to decline led by selling of non-core assets, lower cash burn in Europe, strong cash flows in the domestic operations and equity raising through rights issue.

 

Bhushan Steel acquisition would be earnings dilutive in the near term. The company mentioned that setting up such capacities would be 15-20% costlier and would take 3-4 years. We believe this would boost earnings as the company fully ramps up. We maintain our Buy recommendation with a target price of Rs.835

2:30 PM

Jyothy Labs extends rally on strong Q4 operational performance; 1:1 bonus

Shares of Jyothy Laboratories have moved higher by 11% to Rs 437 per share, extending their previous day's 5% rally on the BSE after the board has recommended issue of bonus shares in the ratio of 1:1 i.e. one bonus share for every one share held on the record date. READ MORE
 

2:15 PM

Asia oil thirst tab $1 trillion a year as crude rises to $80

Oil prices are poised to break through $80 per barrel and Asia's demand is at a record, pushing the cost of the region's thirst for crude to $1 trillion this year, about twice what it was during the market lull of 2015-2016. Oil prices have gained 20 percent since January to just shy of $80 per barrel, a level not seen since 2014. READ MORE