MARKET WRAP: Sensex jumps 332 pts; Allahabad Bank tanks 10% on weak Q2 no

The domestic benchmark indices ended with sharp gains on Tuesday, amid recovery in Asian markets, dip in oil prices and buying in energy and banking stocks.

The S&P BSE Sensex gained 332 points or 1 per cent to settle at 35,144 while NSE's Nifty50 index gained 100 points or 1 per cent to close at 10,583. 

Among sectoral indices, Nifty Pharma index ended 1 per cent lower, weighed by Sun Pharma and Aurobindo Pharma. Realty stocks, too, lost ground in the trade with the Nifty Realty index ending at 221.40, down 0.61 per cent. 

TODAY'S GAINERS

Among individual stocks, Radico Khaitan rallied 8 per cent to Rs 441, extending their last four weeks' gain on the BSE, after the company reported a strong 73 per cent year-on-year (Y-o-Y) jump in net profit at Rs 495 million in September quarter (Q2FY19). The liquor firm had reported a profit of Rs 286 million in the year-ago quarter.
 

Operational revenue grew 28 per cent to Rs 19.06 billion on Y-o-Y basis. EBITDA margin expanded 300 basis points (bps) Y-o-Y to 17.71 per cent in Q2FY19 from 14.65 per cent in Q2FY18. READ MORE HERE

On the contrary, shares of Allahabad Bank tumbled 10 per cent to Rs 37.45 on BSE after reporting a net loss of Rs 18.23 billion in September quarter (Q2FY19), due to higher provisioning for bad loans and lower interest income. The state-owned bank posted net profit of Rs 702 million in the year-ago quarter. It reported a net loss of Rs 19.44 billion in June quarter.

GLOBAL MARKETS
 

Asian shares pared losses as hopes for a de-escalation in the Sino-U.S. tariff war rose on a report that China’s top trade negotiator was preparing to visit the United States ahead of a meeting between the two countries’ leaders.

Spreadbetters pointed to a positive start for Europe and US with E-minis for the S&P 500 and the Dow up 0.5 per cent each. FTSE futures were up 0.2 per cent.

Chinese shares reversed earlier losses with the blue-chip index climbing about 1 per cent.

(with Reuters input)

4:07 PM

Top sectoral gainers & losers on NSE

4:07 PM

S&P BSE Sensex: Top gainers & losers

3:42 PM

Market at close

 

The S&P BSE Sensex gained 332 points or 1 per cent to settle at 35,144 while NSE's Nifty50 index gained 100 points or 1 per cent to close at 10,583.

3:02 PM

Allahabad Bank tumbles 15% on weak Q2 results

 

Shares of Allahabad Bank tanked 15 per cent to Rs 35.40 on BSE after reporting a net loss of Rs 18.23 billion in September quarter (Q2FY19), due to higher provisioning for bad loans and lower interest income. The state-owned bank posted net profit of Rs 702 million in the year-ago quarter. It reported a net loss of Rs 19.44 billion in June quarter. Read more

2:51 PM

NEWS ALERT According to TV reports, Fortis Health board has approved issuing 235 mn equity shares at Rs 170 per share to Northern TK

2:47 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,054.32	+241.33	+0.69
S&P BSE SENSEX 50	11,035.37	+82.27	+0.75
S&P BSE SENSEX Next 50	31,968.61	+97.41	+0.31
S&P BSE 100	10,831.90	+73.63	+0.68
S&P BSE Bharat 22 Index	3,446.45	+21.18	+0.62

2:43 PM

EARNINGS IMPACT

2:41 PM

NEWS ALERT Apollo Tyres Q2: Cons net profit up 4.1% at Rs 1.46 bn Vs Rs 1.40 bn (YoY)

2:29 PM

Eicher Motors trading over 5% higher

2:16 PM

Results impact: Allahabad Bank tanks over 12% as it reports a net loss of Rs 18.22 billion for September quarter Vs profit of Rs 702 million (YoY). 

2:08 PM

Anand Rathi Financial Services on KEC International

 

Modest order inflows are expected due to lower domestic T&D capex. International T&D orders are expected to continue at a robust pace. With the sharp focus on execution, sales are expected to register a 17 per cent CAGR over the next two years. After the recent price drop, the stock looks attractive at present valuations. Cash-flows are expected to improve from current levels. Risks: Keener competition; slowdown in ordering.

1:56 PM

Elara Capital on HDFC
 

We expect a 17% loanbook CAGR over FY18-20E, which assumes a demand revival post the current mayhem and higher volume growth, given management’s increased focus on affordable housing. Margin is likely to soften incrementally, as higher COF more than offset increase in yields. Income on loans sold and ESOP expensing under INDAS will keep earnings volatile. We reiterate Accumulate with a new TP of Rs 1,999 as we incorporate warrant conversion and valuation in other subsidiaries basis current Mcap. 

1:51 PM

Check out the stocks that hit 52-week high in today's trade

Symbol	Security	New 52W/H	Prev. High	Prev. High Date	LTP	Prev. Close	Chng	% Chng
ELECTROSL	ELECTROSTEEL STEELS LIMITED	23.65	23.50	26-Sep-2018	23.65	22.55	1.10	4.88
GALLANTT	Gallantt Metal Limited	66.00	65.60	18-Sep-2018	62.15	61.15	1.00	1.64
LIQUIDETF	DSP LIQUID ETF	1,000.01	1,000.01	12-Nov-2018	999.99	999.99	0.00	0.00
SAKUMA	Sakuma Exports Limited	29.80	25.80	13-Nov-2017	28.95	24.90	4.05	16.27
SMSLIFE	SMS Lifesciences India Limited	549.90	487.30	12-Nov-2018	521.95	487.30	34.65	7.11
VINDHYATEL	Vindhya Telelinks Limited	1,912.00	1,830.00	09-Nov-2018	1,875.05	1784.40	90.65	5.08

(Source: NSE)

1:42 PM

Motilal Oswal on Coal India

 

CMP: Rs 264 

TARGET PRICE: Rs 358 

RATING: Buy

 

COAL is supplying higher share of production on a priority basis to the less-remunerative power sector, which is the reason behind the miss in FSA realization. Demand for domestic coal increases when imports are expensive, as is the case now. However, COAL is benefitting from higher e-auction prices and operating leverage. We lower our e-auction volume estimate by 20mt to 82mt, raise our e-auction price estimate by INR800/t to INR2,500/t and increase our adj. EBITDA

estimate by 1% to INR254b for FY19. We expect PAT CAGR (FY18-20) of ~27%, led by the full benefit of price hikes and evacuation charges, higher volumes and operating leverage. The stock trades attractively at 5x FY20E EV/adj. EBITDA. We value the stock on 6.5x FY20E EV/EBITDA at INR358/share. Maintain Buy.

1:34 PM

JSPL trading lower ahead of its September quarter results