RIL, IT stocks help Sensex settle 195 pts higher; Nifty ends above 12,900

All that happened in the markets today

10:17 AM

Ujjivan Small Fin, IDFC First: Financials rally on RBI's ownership proposal

Shares of financials including, banks, non-banking finance companies (NBFCs) and microfinance institutions (MFIs) were in focus amid up to 20 per cent rally on the BSE in the early morning trade on Monday as the Reserve Bank of India's (RBI's) internal working group, which reviewed ownership guidelines, proposed sweeping changes in the corporate structure of Indian private sector banks. READ MORE

10:09 AM

Rupee opening

Rupee opens higher at 74.13/$ vs Friday's close of 74.16 against the US dollar

10:04 AM

BROKERAGE VIEW | ICICI Securities on Dalmia Bharat Sugar

RATING: BUY | TARGET PRICE: Rs 180

With significant reduction of sugar inventory through export & sacrifice towards B-heavy ethanol, DBSL would be able to generate cash from operations to the tune of Rs 607 crore and Rs 444 crore in FY21E & FY22E, respectively. We expect debt reduction of | 790 crore by FY22E. With new addition in distillery capacities, the visibility of revenues and earnings growth has extended for next five years. We revise our target price to Rs 180 (from earlier target price of Rs160) and maintain our BUY recommendation.

10:03 AM

MARKET UPDATE:: Sensex pares gains, slips into red

10:00 AM

BROKERAGE VIEW | Prabhudas Lilladher on Motherson Sumi

RATING: BUY | TARGET PRICE: Rs 165 

In our view, their target of USD36bn revenue by 2025 (v/s ~USD9bn in FY20) is aggressive and it will be pre-loaded by acquisitions both in auto and non-auto segment. It has hinted on several mid/large scale opportunities available in auto/non-auto space globally. While we remain constructive on MSS ability in automotive segment, growth in unchartered non-auto verticals (backed by wiring harness) is already seen. We maintain BUY with revised TP of Rs 165 (vs Rs 147) at 20x Mar-23 consol EPS (v/s Sep-22), with unchanged earnings. Inorganic opportunities and growth in non-auto space remain key rating catalyst going forward.

9:58 AM

BROKERAGE VIEW | Centrum Broking on JK Cement

RATING: ADD | TARGET PRICE: Rs 1,855 

Given the strong 1HFY21 performance we have revised our FY21e/22e earnings to Rs71.7/84.7 (earlier Rs49.9/Rs70.3). We have also assigned a higher EV/EBITDA multiple of 11.5x (earlier 10x) sighting better earnings quality helping balance sheet improvement, capacity expansion in stronger markets and white segment guarding earnings. We revise our rating to ADD from Reduce earlier with a target price of Rs 1,855 (earlier 1,310/sh) At our TP the stock trades at a replacement cost of Rs11.6bn/mn tonnes FY22e capacities.

9:56 AM

BROKERAGE VIEW | Nirmal Bang Securities on Embassy Office Parks REIT

RATING: ACCUMULATE | TARGET PRICE: Rs 362

 

As per disclosures made by the company, Embassy Office Parks REIT (EOPR) has approved acquisition of Embassy Tech Village (ETV) for a total enterprise value of Rs 97,824 mn (subject to adjustments in relation to net debt, working capital and other adjustments as agreed among the parties). In our view, the acquisition cost is based on the current market to market rentals, which is near/at the peak of the real estate cycle. Real estate is a cyclical sector and trough to peak period ranges from 5-10 years. The current cyclical upswing started in ~CY12, clearly indicating that the cycle is at it’s peak/near peak. Further, we remain concerned about the current softness in the office market. A meager discount of 4.5% to the pricing of the valuers indicates that there is virtually no moat if the current softness gets extended into a cyclical downswing in the sector.

Therefore, in our view, the ETV acquisition is overpriced and leaves absolutely no safety margin in case of a cyclical downswing in the real estate sector. 

 

 

9:53 AM

BROKERAGE VIEW | ICICI Securities on Banking and Financial Services

The RBI had constituted an internal working group on June 12 to review extant ownership guidelines and corporate structure of Indian private sector banks. Terms of reference included review of the eligibility criteria for individuals/entities to apply for banking license; examination of preferred corporate structure for banks and, review of norms for long-term shareholding in banks by promoters and other shareholders. These steps are in right direction and beneficial for the sector in the long-term but we believe these measures have played out in the recent price rally.

9:50 AM

Most active stocks by volume

COMPANY	PRICE(rs)	CHG(%)
VODAFONE IDEA	10.18	1.39
J & K BANK	22.16	7.99
EQUITAS HOLDINGS	63.40	19.96
CONTAINER CORPN.	411.10	0.28
UJJIVAN SMALL	37.75	12.02

9:45 AM

Tinplate zooms 7%

9:43 AM

HDFC slips into red

9:40 AM

IIFL Securities trade in the red

>> The Board of IIFL Securities at its meeting held on 20 November 2020 has approved buyback of company's shares at a price not exceeding Rs 54 per share for an aggregate cash consideration of Rs 90 crore.

9:36 AM

Mishra Dhatu Nigam slips 1.7%

>>  According to reports, the government is planning to sell up to 10 per cent stake in defence PSU Mishra Dhatu Nigam Ltd (MIDHANI) in the current fiscal ending March.

9:34 AM

CG Power gains 5%

>> Lenders to CG Power and Industrial Solutions have agreed to a one-time loan restructuring to pave way for the Chennai-based Murugappa Group taking over the scam-hit equipment maker. CG Power had total debt of Rs 2,161 crore, out of which a consortium of 14 banks have taken a haircut of Rs 1,100 crore and restructured the remaining.

9:32 AM

Pfizer up 1%

>> Britain could give regulatory approval to Pfizer-BioNTech's COVID-19 vaccine this week, even before the United States authorises it, the Telegraph news site reported on Sunday.