MARKET WRAP: Sensex ends 64 pts lower at 35,593, DHFL dips 6%; BoI jumps 8%

The domestic equity market ended lower for the third consecutive day on Tuesday.

The S&P BSE Sensex lost 64 points or 0.18 per cent to close at 35,593 while NSE's Nifty50 index ended above 10,650 level at 10,652, down 9 points or 0.088 per cent.

Shares of public sector undertaking (PSU) banks gained in an otherwise weak market with Nifty PSU Bank index ending over 0.50 per cent higher at 2,920. Pharma stocks, too, rallied in the trade pushing the Nifty Pharma index over 1 per cent higher at 8,757 levels.

BUZZING STOCKS

Among individual stocks, shares of Escorts slipped 6 per cent in the intra-day trade, after the management lowered its FY19 volume growth guidance for domestic tractor industry. The stock ended at Rs 644 apiece on BSE, down 4.49 per cent. 

Praj Industries ended nearly 15 per cent higher at Rs 129.05 apiece after its consolidated net profit rose 197.88 per cent to Rs 22.43 crore on 33.04 per cent increase in net sales at Rs 330.31 crore in Q3 December 2018 over Q3 December 2017.

Housing finance companies came under heavy selling pressure with DHFL plunging 8 per cent to Rs 170.05 apiece on BSE. 

On the other hand, Adani Ports rallied over 6 per cent to Rs 348 on BSE. 

In the broader market, S&P BSE MidCap index ended 57 points higher at 14,468 levels and S&P BSE SmallCap closed at 13,708, down 14 points.  

GLOBAL MARKETS

Asian shares stumbled on Tuesday and the dollar hovered near two-week lows as prospects for a long-awaited Sino-US trade deal were dealt another blow after the United States levelled sweeping criminal charges against China’s telecom giant Huawei. 

Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan was still down 0.2 per cent even after recouping some of its earlier losses. Japan’s Nikkei, down about 1 percent almost all day, turned around to end 0.1 percent higher.

OIL PRICES

Oil prices rose on Tuesday after Washington imposed sanctions on Venezuelan state-owned oil firm PDVSA in a move that may curb the OPEC member’s crude exports, but price rises were capped by ample global supply and signs of a slowing Asian economy.

(With inputs from Reuters)

3:46 PM

Index watch

3:45 PM

Markets at close

3:40 PM

Closing Bell

The S&P BSE Sensex lost 64 points, or 0.18 per cent, to close at 35,593 while NSE's Nifty50 index ended at 10,652, down 9 points

3:05 PM

ICICIdirect on Escorts

Escorts has a near debt free balance sheet with marginal short-term debt amounting to ~Rs 150 crore as of FY19E with consequent debt: equity at 0.05x. It has also successfully got transformed into a capital efficient player with resultant RoCE in excess of 20% in FY18-20E. Going forward, however, given the higher base we expect growth to taper in FY20E. Consequent net sales & PAT growth in FY20E are expected at ~8.5%. We build in ~40 bps improvement in EBITDA margins. We value Escorts at Rs 700 i.e. 16.0x P/E on FY20E EPS of Rs 44.1 with a HOLD rating on the stock.

2:48 PM

YES Bank extends fall; stock down 11% in two days

The stock has erased its almost entire 12 per cent gain recorded in two days after the private sector lender on Thursday, January 24, 2019 said that it has received the Reserve Bank of India (RBI) approval to select Ravneet Singh Gill as its new managing director and chief executive officer (MD & CEO). He is set to join on or before March 1, 2019. READ MORE

2:33 PM

Bajaj Fin stock falls over 1% post Q3 results announcement

2:31 PM

Bajaj Finance Q3 results

• Consolidated net profit jumps 53.5 per cent YoY to Rs 1,059.56 crore. 
• Revenue from operations came in at Rs 4,974.70 crore, up 47.5 per cent YoY.
• Basic earnings per share (EPS) at Rs 18.38 against Rs 12 3QFY18. 

2:24 PM

ICICIdirect on Pfizer

Buying Range: Rs 2,850-2,885

 

Target: Rs 3,280.00

 

Stop loss: Rs 2,610.00

 

Upside: 14%

 

Time Frame: 6 months

2:12 PM

Mid, small-cap indices tank 7% in January; analysts see more pain ahead

The underperformance comes amid liquidity concerns in the non-banking finance companies (NBFC) space and Essel Group default news. Despite the sharp fall, analysts say there more pain in store for these two segments over the next few months and suggest investors remain selective while investing. READ MORE

2:06 PM

HDFC PAT comes in at Rs 2113.80 cr against Rs 5,300 cr in the year-ago period; stock down 1%

1:57 PM

Housing Finance companies under pressure

1:46 PM

NEWS ALERT

SBI said to own 15% of Jet Airways post debt switch, CNBC-TV18 reports citing sources. 

1:30 PM

As many as 237 securities hit 52-week low so far in trade

Symbol	Security	New 52W/L	Prev. Low	Prev. Low Date	LTP	Prev. Close	Chng	% Chng
ABAN	Aban Offshore Limited	64.60	65.25	28-Jan-2019	65.20	66.80	-1.60	-2.40
ABCAPITAL	Aditya Birla Capital Limited	81.60	82.80	28-Jan-2019	83.00	83.85	-0.85	-1.01
ABGSHIP	ABG Shipyard Limited	1.75	1.80	28-Jan-2019	1.80	1.80	0.00	0.00
ADHUNIK	Adhunik Metaliks Limited	2.05	2.05	28-Dec-2018	2.05	2.15	-0.10	-4.65
AIFL	Ashapura Intimates Fashion Limited	17.40	18.30	28-Jan-2019	17.40	18.30	-0.90	-4.92

Source: NSE


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1:25 PM

IIFL on Godrej Properties

GPL reported a strong rebound in new bookings, driven by new launches and steady sustenance sales. The actual deal additions for 9MFY19 are significantly lower YoY and missed expectations; however, during the concall, management stressed that current outlook is the best ever in the history of the company, with a number of deals on the threshold of being announced. Operating cash flow contracted during the quarter, resulting in net debt rising Rs2.6bn QoQ. GPL stock has been up >50% in the last 4 months, since the tightening of liquidity, and premium valuations build-in a strong outlook on business development.

1:21 PM

Geojit on PVR

·         Reduction in GST rates on movie tickets expected to drive consumption and improve margins.

 

·         Q3FY19 revenue grew at a rate of ~51% on a YoY basis owing to higher box office collections while PAT witnessed 79% YoY growth.

 

·         Average Ticket Prices (ATP) witnessed a muted growth of 3.8% YoY while Food & Beverages spend per head de-grew by ~2% YoY.

 

·         Other income rose by 344% in Q3FY19 while ad revenue saw a healthy growth rate of 16% YoY.

 

·         We revise upward our FY19E & FY20E PAT estimates by 14% & 15% respectively, to factor synergy benefits from SPI acquisition and margin improvement from GST rate cut.

 

·         We value PVR at 30x FY21E EPS and upgrade our rating to Accumulate from Hold with a revised TP of Rs1,742.