F&O expiry: Sensex ends choppy trade on flat note, gains 6% in Aug series

Sectorally, the metals pack bled the most, down 1.3 per cent, followed by the PSB Index (down 0.8 per cent)

8:29 AM

IIFL on UltraTech Cement

UltraTech Cement (UTCEM), the largest cement player in India, highlighted in its FY21 AR that: 1) despite Covid-induced challenges, its results were a beat, given the V-shaped demand recovery and lower costs; 2) ahead, UTCEM will remain focussed on deleveraging without compromising on growth, and aim to improve ROEs – this would be achieved via low-cost expansion and improving utilisations; and 3) UTCEM would invest in green power to lower its carbon emissions along with optimising costs. We believe UTCEM is well placed to capitalise on the expected upcyle in the cement sector, given its pan-India presence, market leadership and strong brand. We re-iterate BUY.

8:28 AM

Sector watch

8:27 AM

Emkay Global on ICICI Bank

The RBI has approved the extension of MD and CEO Mr. Sandeep Bakhshi's term for two years to October 3, 2023. Mr. Bakhshi's age is 61 years and so he is eligible to hold the MD & CEO position till the age of 70 years, as per the companies' act/ RBI policies.. Thus, he would be eligible for at least two more term extensions beyond 2023, subject to his consent and board/shareholder approval. These term extensions will also be within the overall term cap of 15 years for non-promoter MD & CEO/WTD.

 ICICI remains our top pick in the sector. Retain Buy/OW in EAP with a TP of Rs825 (2.5x Sep'23E ABV + subs value of Rs170), given its solid growth trajectory, superior core profitability, healthy capital/provision buffers, and management credibility/stability unseen in the past.

8:26 AM

Edelweiss on Gujarat Gas

The company enjoys absolute margin leverage as its margins are nearly one-third that of Adani Gas and MGL, and competing product propane is 20%+ more expensive. Notably, quasi-monopoly for entire CGD has been recently reaffirmed through regulation. It enjoys very high sustainable profitability with RoE in excess of 25%, and in fact continues to aggressively invest to capture high-return opportunities. We retain ‘BUY/SO’ with DCF-based TP of INR942 at 27x FY23E PER led by strong Morbi-driven export volumes.

8:25 AM

BOBCAPS on power sector

8:23 AM

MOSL on Bajaj Finance, Bajaj Finserv

Bajaj Finserv has got an in-principle approval from SEBI for sponsoring a Mutual Fund (MF). While the opportunity is huge, given the under penetration and financialization of savings in the country, the competitive intensity in the industry is high with 44 players.

 

BAF's return ratios have been consistent and also the highest in our Coverage Universe (excluding gold Financiers). Given the strong recovery post relaxation of the lockdowns and the healthy progress made in its digital transformation program (including wallets and payments), we reiterate our Buy rating, with a TP of INR7,700 per share (8x 1HFY24E BV).

8:21 AM

Rupee check

Source: Bloomberg

8:20 AM

Oil Check

8:18 AM

SGX Nifty declines

>> At 8:17 AM, the index was down 21 points at 16,602 levels

8:14 AM

Wall Street on Wednesday

Overnight, the Dow Jones Industrial Average rose 39.24 points, or 0.1%, to 35,405.50. The S&P 500 added 0.2% to a new closing high of 4,496.19. The Nasdaq Composite gained 0.1% to 15,041.86, also a new closing high.

8:11 AM

Asian shares mixed as South Korea hikes rates

South Korea became the first country to raise interest rates in the pandemic era. The Bank of Korea raised its policy rate for the first time in almost three years, by 25 basis points to 0.75 per cent, earlier today to curb surging household debt.

Nikkei 225 in Japan traded flat, Australia's S&P/ASX 200 fell 0.50 per cent, and South Korea's Kospi eased 0.2 per cent.

8:03 AM

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