MARKET WRAP: Sensex up 288 pts, ends above 39K; mid, small-caps outperform

All that happened in the markets today

12:25 PM

Glenmark: Domestic sales performance, low

Glenmark Pharmaceuticals reported the best sales performance among Indian companies in the domestic market for August. Sales were up 32 per cent for the month on the back of higher sales of Covid treatment drug, favipiravir. The drug was the sixth largest molecule in the pharma market in August and is used in treating mild-to-moderate symptoms of Covid-19. READ MORE

12:12 PM

LIC IPO unlikely this fiscal year due to delay in valuation process

The much-awaited initial public offering (IPO) of Life Insurance Corporation of India (LIC) is unlikely to happen this financial year, primarily due to an expected delay in the valuation process. There is a growing realisation in the government and LIC about this. “The appointment of the asset valuer, which is perhaps the most crucial part of the pre-IPO process, is still pending. READ MORE

12:01 PM

MARKET UPDATE:: Sensex restores early morning gains

11:52 AM

Radico Khaitan rallies 16% in 3 days, hits fresh 52-week high

Shares of Radico Khaitan hit a fresh 52-week high of Rs 445 after rising 7 per cent on the BSE on Tuesday amid expectation of improvement in operational performance. The breweries & distilleries maker's stock was trading higher for the third straight day and has rallied 16 per cent during this period. It hit a lifetime high of Rs 500 on September 3, 2018. READ MORE 

11:46 AM

SBI, Indian Bank: These PSB stocks are likely to rise, show charts

Most public sector bank (PSB) stocks were trading in the red in the morning deals on Tuesday, a day after reports said that the government may infuse Rs 20,000 crore through recapitalisation of bonds into state-owned banks in the fourth quarter of the current fiscal year. Nifty PSU Bank index traded nearly 0.5 per cent lower at 1,429 levels with 7 out of 12 constituents trading in the red. READ MORE

11:36 AM

Govt to infuse Rs 20,000 crore in PSBs via recap bonds; should you buy?

Shares of public sector banks including State Bank of India (SBI) and Canara Bank were largely trading higher on Tuesday on hopes that the government could infuse up to Rs 20,000 crore through recapitalisation of bonds by the fourth quarter of the current fiscal. Individually, Indian Overseas Bank, Central Bank of India, Bank of Maharashtra gained 1.5 per cent each on the National Stock Exchange (NSE), followed by gains in Union Bank of India (1.4 per cent), and SBI and Canara Bank (1 per cent each). READ MORE

11:24 AM

Look past the near-term pain in IRCTC for its monopoly in Railways

The Indian Railway Catering and Tourism Corporation (IRCTC) stock has declined around 4 per cent in the past three months, as against a 15 per cent rise in the Sensex. Earnings pressure and the government’s stake sale plans are some near-term factors weighing on investor sentiment. READ MORE

11:17 AM

Indian economy to shrink by 9% this fiscal: Asian Development Bank

India's economy is expected to contract by 9 per cent this year -- worse than the 4 per cent contraction it had forecast three months ago, the Asian Development Bank (ADB) said on Tuesday. However, it expects India to bounce back with 8 per cent growth next year as the country begins to emerge from the economic devastation caused by coronavirus (Covid-19) pandemic.READ MORE

11:07 AM

Nifty Pharma index trades 2% up in an otherwise flat market

10:52 AM

Bajaj Healthcare zooms 20%, hits new high on strong June quarter results

Shares of Bajaj Healthcare zoomed 20 per cent to a new high of Rs 498.35 on the BSE on Tuesday after the company reported a five-fold jump in net profit at Rs 15.29 crore in the June quarter (Q1FY21), on the back of strong revenue growth. The pharmaceutical company had posted profit of Rs 3.24 crore in the year-ago quarter. READ MORE 

10:43 AM

BROKERAGE VIEW | ICICI Securities on Solar Industries

RATING: REDUCE | TARGET PRICE: Rs 924

As we factor-in higher margin possibility from overseas business, the key execution challenge for the company will be to offset the weakness in coal (structural) and trade and infra (GoI budget-driven) segments. We value SOIL at 26x FY22E P/E.

10:40 AM

BROKERAGE VIEW | ICICI Securities on KPR Mill

RATING: BUY | TARGET PRICE: Rs 735

KPR’s strategy of focusing on high asset turnover garmenting segment for future growth provides scope for improvement in return ratios over the medium to longer term. We like KPR as a structural long term story to play the apparel export space. We continue to remain positive on KPR due to its competitive advantages due to lower power and labour cost, vertically integrated operations, focus on value-added products and robust balance sheet. The recent ethanol capacity addition is likely to reduce volatility in the sugar business. We ascribe a BUY rating to the stock with a target price of Rs 735 (10.0x FY23E EPS).

10:37 AM

BROKERAGE VIEW | Prabhudas Lilladher on IRCTC

Rating: BUY | CMP: Rs 1,368 | TP: Rs 1,645

We believe IRCTC is a perfect play on the unlocking theme as lockdown restrictions are gradually being relaxed. Valuations at 27x FY22E and 24x FY23E look challenging but will sustain given 1) monopolistic nature of the business 2) clear growth traction (20% PAT CAGR over 3 years) and 3) strong return ratios & healthy BS. We thus upgrade our rating to BUY (earlier ACCUMULATE) with a TP of Rs 1,645 and raise our target P/E multiple to 28.5x (earlier 26.5x) as we roll forward to FY23E estimates. 

10:35 AM

BROKERAGE VIEW | Edelweiss Securities on Ashok Leyland

RATING: BUY | TARGET PRICE: Rs 75

We continue to like Ashok Leyland's efficient manufacturing and sound balance sheet (ex-vehicle financing business). We are currently building in a modest volume recovery, which provides adequate room for a surprise.  We are also enthused to note that early data indicators such as E-Way bills (84% of pre-lockdown), fleet utilisation (at ~50-55%), jump in trucks’ resale value (due to limited repossessions; moratorium also playing a role) and already stringent financing norms indicate the worst is behind. We maintain ‘BUY/SO’ with SOTP-based TP of Rs 75 (12.5x March2022E EV/EBITDA and INR7/share for the financing business). The stock is trading at FY21/22E EV/EBITDA of 33.6x/12.4x.

10:34 AM

BROKERAGE VIEW | Edelweiss Securities on Voltas

RATING: BUY | TARGET PRICE: Rs 730

Rising competitive intensity, growing tail of industry participants and unforeseen supply-chain challenges seem counter-intuitive for Voltas’s North-bound market share, operating margin and cash flows in RACs. The company’s ability to position widely targeted SKUs across customer tiers and demand centres makes it a formidable scale player in the $8bn concentrated white goods market. As the JV chases its 10% market share target (FY25E), for us key milestones remain: a) SKU roll out across key categories; and b) brand campaigns & their efficacy, especially around the festival/demand season. We maintain ‘BUY/SO’ with SOTP-based target price of Rs 730.