MARKET WRAP: Indices end flat, Sensex slips 66 pts; Bharti Airtel falls 8%

All that happened in the markets today

12:45 PM

UPDATE :: Sensex sinks 190 pts

12:43 PM

NEWS ALERT :: Govt proposes to formulate national retail trade policy, Piyush Goyal tells Rajya Sabha

>> Stakeholder consultations are being held on the same

12:38 PM

NEWS ALERT :: Tech Mahindra's US arm divests stake in Altiostar Networks

12:33 PM

MARKET CHECK :: Indices erase gains, turns flat

12:24 PM

Telecom shares under pressure; Bharti Airtel, Vodafone Idea slip over 6%

Shares of telecom service providers, mainly Bharti Airtel and Vodafone Idea (VIL), dipped than 6 per cent on the BSE on Wednesday after rival Reliance Jio (RJio) announced a range of postpaid plans, including many firsts, such as in-flight mobile connectivity. Bharti Airtel declined 7 per cent to Rs 437, while Vodafone Idea slipped 8 per cent to Rs 9.47. In comparison, the S&P BSE Sensex was up 0.5 per cent at 37,926 points, at 11:45 am. READ MORE

12:19 PM

BROKERAGE VIEW | IDBI Capital on Rail Vikas Nigam

RATING: BUY | TARGET PRICE: Rs 25

We like RVNL for order book with near and long term execution visibility (capex plan of Indian Railways), pass though business model, experienced management, and valuation 5x FY22E EPS.

12:15 PM

BROKERAGE VIEW | ICICI Securities on Supreme Industries

RATING: BUY | TARGET PRICE: Rs 1,640 

Healthy balance sheet (driven by strict working capital management and high FCF generation), expected improvement in its asset turns (recent capex going into production over the next 2-3 quarters), incremental capex in higher RoCE generating (plastic piping and cross plastic film) segments and likely traction in earnings is expected to drive its overall RoCEs to 26.6% in FY22E and ~30% in FY23E. This, we believe, would lead to further rerating in the stock going forward.

12:13 PM

BROKERAGE VIEW | ICICI Securities on Titan Company

RATING: ADD | TARGET PRICE: Rs 1,250

We increase our FY22 earnings estimates by ~2%; modelling revenue / EBITDA / PAT CAGR of 14 / 13 / 16 (%) over FY20-22E. Upgrade to ADD (from Hold) with a DCF-based revised target price of Rs1,250 (was Rs1,100). At our target price, the stock will trade at 49x P/E multiple Sep-22E. Key downside risk is potential shift to fixed making charges that could limit long-term benefits from operating leverage.

12:08 PM

BROKERAGE VIEW | Motilal Oswal Financial Services on gold financiers

We have upgraded Muthoot Finance to ‘Buy’ with TP of Rs 1,300 (3.0x FY22E BVPS). Our target multiple is based on consistent performance on profitability over the past decade (lowest RoE of 15% and average RoE of 27% over the past decade). We are also initiating coverage on Manappuram Finance with a ‘Buy’ rating and TP of Rs 185 (1.8x FY22E BVPS). Our lower multiple for MGFL is on account of lower average RoA of 5.4% (v/s 6.8% for MUTH), and higher share of its business coming from non-gold lending at 33% (v/s 11% for MUTH in FY20), which is facing headwinds due to the pandemic.

12:04 PM

BROKERAGE VIEW | Emkay Global Financial Services on Telecommunications

Jio’s aggressive efforts should add to Bharti’s recent underperformance as it would raise questions on a potential tariff hike in the near term. As highlighted in our recent note, any postponement in tariff hike to FY22 will have an 8% negative impact on Bharti’s FY21 EBITDA. A lack of tariff hike visibility in the near term, the success of Jio’s renewed post-paid push, delayed reaction from Bharti to counter Jio and the ability of VIL to raise funds will be key factors for Bharti’s stock price performance. A lack of a tariff hike in FY21 or even beyond will have a meaningful negative impact on Jio’s operating performance as well. This is getting ignored now due to its strong balance sheet after a series of fundraising. Based on our calculations, the absence of a tariff hike will lead to a nearly 18 per cent cut in EBITDA estimates for Jio in FY21E.

11:53 AM

NEWS ALERT | Parliament's Monsoon session to end today: TV report

11:45 AM

RIL, TV18 Broadcast: How to trade Reliance group stocks post 2nd KKR deal

Shares of Reliance Industries (RIL) soared 3 per cent to Rs 2,276.50 on the BSE on Wednesday in intra-day trade, after the company announced that global investment firm KKR will invest Rs 5,550 crore in Reliance Retail Ventures (RRVL) for 1.28 per cent equity share. This marks the second investment by KKR in a Reliance subsidiary, following a Rs 11,367 crore investment in Jio Platforms announced earlier in 2020. READ MORE

11:35 AM

HDFC Bank: Class action suits may prove to be an interim dampener

Just when the HDFC Bank stock was beginning to regain momentum, three US-based law firms filing class-action suits against the lender dragged its share price down by over 5 per cent in a week. On a year-to-date (YTD) basis, the stock has shed 18 per cent. READ MORE

11:25 AM

Infosys hits fresh record high; market cap nears Rs 4.5-trillion mark

Shares of Infosys rose 3 per cent to hit a fresh record high of Rs 1,037 on the BSE on Wednesday, which saw the company's market capitalisation (market-cap) near Rs 4.5 trillion mark. The stock surpassed its previous high of Rs 1,030.80, touched on September 21, 2020. Since September 1, the information technology (IT) bellwether's stock outperformed the market by surging 13 per cent, as compared to 2.4 per cent decline in the S&P BSE Sensex. READ MORE

11:15 AM

NEWS ALERT :: PM Modi to hold Covid-19 review meeting with CMs of seven states today

>> Prime Minister Narendra Modi will chair a high-level virtual meeting with chief ministers and health ministers of seven most-affected states on Wednesday to review the coronavirus (Covid-19) situation.

>> The states with highest Covid-19 case-load are Maharashtra, Andhra Pradesh, Karnataka, Uttar Pradesh, Tamil Nadu, Delhi and Punjab