Sensex slips 477 pts from day's high, ends 63 pts lower; IT stocks decline

All that happened in the markets today

10:51 AM

BROKERAGE RADAR:: Edelweiss Securities on agri inputs

We perceive the government’s recent draft notification to ban 27 generic products (contribute 25-30% to INR180bn domestic agrochem industry and ~20% to exports sales) as untimely (given the COVID-19 challenge) and likely to be strongly contested by the industry. In our view, if strictly implemented, this policy will negatively impact farmers and adversely affect domestic manufacturing. This will be contrary to the government’s Make in India and Aatmanirbhar Bharat vision. Hence, we expect the draft notification to undergo significant changes (as was the case in the past)--- many products to be taken off the list and exports to continue. Having said that, we believe the government’s agenda is clear in terms of moving towards new-age products in the future and companies (Dhanuka (BUY) and PI (HOLD)) with access to new age molecules  will benefit.

10:48 AM

BROKERAGE RADAR:: Prabhudas Lilladher on HDFC

Rating: ACCUMULATE | CMP: Rs 1,516 | TP: Rs 1,992

While steady spreads at 3.4% cushioned earnings, same could come under tad pressure with competition intensifying (lending rates pared down by 15bps vs 75bps by SBI). We, therefore, forecast NPA estimates higher to 2.45% (earlier 1.8%) but maintain growth estimates at 7%; EPS trim by 11% for FY21. We confide in HDFC’s customer quality (80% salaried), strong CAR (17%Tier I) and liquidity sufficiency. However, we buildin LRD/corporate loan stress into our growth estimates (14%YoY; earlier 17%) yet expect better operating profit for FY22. Our SOTP metrics value mortgage business at 2.3x PBV FY22e (earlier 2.4x); subsidiaries at Rs1116 arriving at TP of Rs 1,992 (earlier Rs 2,201). Maintain Accumulate.

10:46 AM

BROKERAGE RADAR:: ICICI Securities on IDFC First Bank

Restructuring of b/s underway has continued with rise in run rate of low cost deposits. Prudent approach providing adequately for lumpy stress adds to confidence. However, in current scenario, substantial exposure to SME segment makes it prone to near asset quality concerns. Capital raised provides improved ability to absorb any near term shocks but delays return ratio target. Revising earnings estimate by factoring the current scenario, we value the bank at ~0.75x FY22E ABV with a revised TP of Rs 23. Maintain BUY.

 

 

10:45 AM

BROKERAGE RADAR:: ICICI Securities on DCB Bank

Business momentum is expected to remain slow though the bank remains a beneficiary of the credit guarantee scheme announced by GoI. However, given substantial exposure to MSME & LAP, we remain cautious in the current environment. Focus on containing opex does provides cushion but lower business growth & expected asset quality woes are seen keeping RoE lower at 8-11% in FY20-22E. Hence, we maintain HOLD rating with a revised target price of Rs 59, valuing the business at ~0.5x FY22E ABV.

10:44 AM

BROKERAGE RADAR:: Anand Rathi Shares on JK Lakshmi Cement

With a dedicated 50% of the fleet of vehicles required, capacity utilisation has been ramped up to 65% currently. This would dip in Q2 FY21, management said, due to the expected acute shortage of labour and the monsoon starting. The per-bag price hikes in the East and North (of Rs 10) and of Rs 15 in the Central region post lockdown implementation is expected to keep realisation/ton firm, though the huge number of covid cases in the West (Gujarat, Maharashtra) would squeeze demand. We expect volumes to dip 8% in FY21, and grow 9% in FY22. We retain our Buy recommendation, with a target of Rs 325, on 7x FY22e EV/ EBITDA.

Risks: Extension of the lockdown; rise in fuel prices.

10:41 AM

BUZZING STOCK:: Eicher Motors shoots up 4%

10:35 AM

NEWS ALERT | Glenmark to commence trial on combination of Favipiravir and Umifenovir for Covid-19 treatment: Exchange filing

10:29 AM

Diversify your investments beyond bank FDs to counter declining rates

In the wake of the 40-basis-point rate cut by the central bank, which has brought the repo rate to 4 per cent, banks may slash their FD rates further. Within the banking space, park a part of your money with small finance banks (SFBs).  READ MORE

10:22 AM

Metal stocks advance, led by Jindal Steel and JSW Steel

10:18 AM

Gold Outlook | Hareesh V, Head Commodity Research at Geojit Financial Services

Lingering geopolitical tensions like the US - China cold war and Iran-Venezuela oil trade amid US sanctions are likely to boost the yellow metal prices. Meanwhile, reopening the global economy and gains in equities are likely to offset major rallies in the counter.

 

Technical Outlook (London spot): As long as prices stay above $1710 broad trend will remain on the positive side. However, a direct drop below $1665 is a signal of weakness.

10:13 AM

HDFC advances over 3% as Q4 earnings beat Street expectations

The profit before tax (PBT), meanwhile, came in at Rs 2,692 crore, dented by higher provisioning for uncertainties due to the Covid-19 pandemic. Its PBT was Rs 3,691 crore in the same period a year ago. After fair value adjustments, profit on sale of investment, dividend, and provisioning, the profit before tax for the quarter grew 15 per cent at Rs 3,535 crore, as against Rs 3,064 crore in the year-ago period, the lender said. READ MORE

10:12 AM

Bayer CropScience surges 10% on strong Q4 results; stock nears record high

Shares of Bayer CropScience surged 10 per cent to Rs 4,875, also its fresh 52-week high, on the BSE on Tuesday after the company reported profit before exceptional items and tax (PBET) of Rs 54.3 crore for the quarter ended March 2020 (Q4FY20), on the back of strong operational performance. The agrochemicals company had posted a loss before exceptional items and tax of Rs 95 crore in the corresponding quarter of the previous year. READ MORE

10:07 AM

Rupee opening

Rupee opens higher at 75.68/$ vs Friday's close of 75.95 against the US dollar

10:02 AM

ITC shares surge 5% as Co to acquire spice major Sunrise Foods for Rs 2K cr

Fast-moving consumer goods (FMCG) major ITC shares surged as much as 4.6 per cent to Rs 194.95 apiece on the BSE on Tuesday after the company announced it had entered into an agreement with the spice major Sunrise Foods to acquire a 100 per cent stake in the company. The share-purchase agreement was completed after the lockdown was enforced and the final deal is likely to be signed soon. READ MORE

9:55 AM

BUZZING STOCK:: JSW Steel leaps 5% post March quarter results announcement