MARKET WRAP: Sensex slips 214 pts, Nifty ends at 11,251; pharma, IT advance

All that happened in markets today

12:39 PM

BROKERAGE RADAR | Samco Securities on Marico

Outlook: Strong Upside | Investment Period: 5 years

 

Positives: Leverages on presence in limited categories - Marico believes in focusing on the hair oil, edible oil and Shampoo categories unlike its peers who have a diversified product portfolio. Parachute contributes 38% to its India business turnover with a  market volume share of 53%. Its foray into the male grooming and skin care space has been picking up pace.

The company is currently trading below its 200 EMA close to October  2018 levels giving it high margin of safety. On a valuation perspective too, Marico is undervalued since it is currently trading at a P/E of 32 xs while Nifty FMCG’s average P/E is close to 35x.

12:29 PM

Coronavirus Update | Have requested Delhi govt to prepare for potential isolation in hospitals: Harsh Vardhan, Health Min

12:24 PM

NEWS ALERT | HDFC Bank appoints Renu Karnad as additional non-executive Director

12:16 PM

Pharma stocks gain for second straight day; Sun Pharma surges 12% in 2 days

Shares of pharmaceutical companies were trading higher for the second straight day in an otherwise weak market. Sun Pharmaceutical Industries, Cipla, Dr Reddy’s Laboratories, Glenmark Pharmaceuticals, Aurobindo Pharma, Lupin, Indoco Remedies, FDC, Shilpa Medicare and Caplin Point Laboratories from the Nifty Pharma and S&P BSE Healthcare index were up in the range of 3 per cent to 6 per cent at the bourses. READ MORE

12:06 PM

NEWS ALERT | Board approves re-designations of Kishore Biyani, current MD, as Non-Ex Vice Chairperson: Future Lifestyle

>> He would not be able to hold position as Managing Director of the Company

>> Accordingly, with effect from 5 March 2020, Kishore Biyani would continue to serve the Board as a Vice-Chairperson (Non-Executive) of the Company. 

 

11:58 AM

AGR dues paid by telcos to reflect in FY20 revenue receipts: Report

Government had not accounted for this figure in the 2020-21 Budget as it was in dispute but since this part amount has been received in the current fiscal, it will be on a revenue receipt as these are actual receipts, and any futuristic projections from sub judice cases cannot be done. READ MORE

11:48 AM

BROKERAGE RADAR | Motilal Oswal Financial Services on GAIL

We expect GAIL to be a key beneficiary of the National Green Tribunal’s focus on reducing industrial pollution. The main concern on the stock is low spot LNG prices which may result in losses in the US LNG contracts. However, with start of new fertilizer plants on Jagdishpur-Haldia & Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) , the company expects all US contracts to be sold in India profitably.

 

GAIL is trading at 8.2x FY21 EPS of INR12.6 and 2.8x FY21 EV/EBITDA. It trades at ~40% discount to long term one-year forward PE. We value it at 8x adjusted FY22 EPS and add the value of investments to arrive at a target price of Rs150. Reiterate Buy.

11:48 AM

RUPEE CHECK | Rupee trades at 17-month low

11:45 AM

BROKERAGE RADAR | Emkay Global Financial Services initiates coverage on Bharat Forge

Target Price: Rs 550 | 12 months | Rating: BUY | Upside: 23.9 %

• We are initiating coverage on Bharat Forge, India's largest forging company, with a Buy rating and OW stance in EAP. Our strong investment rationale is underpinned on Bharat Forge's scale of operations, focus on diversification and the expected cyclical recovery in its core segments from FY21. We have a TP of Rs 550, which offers an upside of 24%.
• FY21 is expected to be a year of revenue recovery for the company, with 6% growth, supported by a gradual turnaround in the domestic MHCV segment (on cyclical recovery and content increase stemming from the BS6 transition), continued growth in PVs (with new customers and products), and a pick-up in the industrial segment.

11:33 AM

YES Bank trades lower for fourth straight day; stock nears 52-week low

Shares of YES Bank were trading lower for the fourth straight day, down 6.6 per cent at Rs 29.20 on the BSE on Wednesday on the back of heavy volumes. The private sector lender's stock is trading close to its 52-week low of Rs 29.05, touched on October 1, 2019 and also its lowest level since August 2009 on the BSE. In the past six trading days, the stock has slipped 21 per cent, as compared to 3.4 per cent decline in the S&P BSE Sensex. READ MORE

11:28 AM

NEWS ALERT | Cabinet likely to have approved foreign listing of domestic companies: CNBC TV18

>> Approves decriminalisation of 43 sections under Companies Act

>> Approves tweaks in FDI limit in aviation companies ahead of Air India divestment.

11:19 AM

HAL slides 5% after receiving notice from International Arbitration Court

Shares of Hindustan Aeronautics Limited (HAL) slid over 5 per cent to Rs 637.40 on the BSE on Wednesday after the state-run firm said it has received notice from International Court of Arbitration on request from RUAG Aerospace Services GMBH. In an exchange filing yesterday, HAL said it has initiated necessary action with regards to the arbitration process. READ MORE

11:15 AM

Tata Chemicals turns ex-date for spin off; opens at Rs 315 per share

Tata Chemicals has fixed Thursday, March 5, 2020 as the record date, for the purpose of determining the shareholders of the Company to whom equity shares of Tata Consumer Products (TCPL) shall be issued in consideration for the demerger of the consumer products business of the Company into TCPL.

 

At 10:27 am, the stock of Tata Chemicals was trading 1 per cent lower at Rs 312, while Tata Consumer Products was down 1.5 per cent at Rs 350 on the BSE. In comparison, the S&P BSE Sensex was down 0.30 per cent at 38,509 points. READ MORE

11:11 AM

Market check | Weakness continues in the markets

11:06 AM

NEWS ALERT | Cabinet approves merger proposal of 10 PSU banks: CNBC TV18

>> Cabinet approves changes to Companies Act