Friday, December 20, 2024 | 03:13 PM ISTEN Hindi

MARKET WRAP: Sensex slips 143 pts amid weak global cues; financials decline

All that happened in the markets today

SI Reporter New Delhi

((Photo credit: Kamlesh Pednekar)

10:52 AM

BROKERAGE VIEW:: Emkay Global Financial Services on Pharma sector

We expect the sector to continue to relatively outperform in the near term given the defensive earnings characteristics, but after a sharp run-up, we remain selective as valuations leave little room for execution misses. We prefer Aurobindo and Cipla in the large caps and Ipca and Granules in the mid and small cap space.
More than the earnings, we believe investors will keenly watch out for management commentaries on the pace of recovery, especially in India, as Street estimates still range between 5% and 7% for FY21. Key risks: DOJ penalties on price fixing, lower than expected growth in India and API disruption/price increases.

10:49 AM

BROKERAGE VIEW:: Prabhudas Lilladher on South Indian Bank

Rating: BUY | CMP: Rs 8 | TP: Rs 11

Earnings of Rs 817mn was better than expected on lower provisions and better treasury income. NII growth was muted at 10% YoY but was largely in-line with expectations, while other income was helped by better treasury income but fees were down 9% YoY/20% QoQ. Provisioning levels came off to trends levels but continued to help improvement in PCR with asset quality being marginally better. Bank moratorium remains high at 36% but SMA loan within that is quite low which displays comfort but the real picture will be visible post the moratorium ends. We retain BUY maintaining TP of Rs 11 based on 0.5x Mar-22 ABV as valuations remain undemanding.

10:46 AM

BROKERAGE VIEW:: Centrum Broking on Building Materials

The Covid-19 pandemic and the countrywide lockdown will have had an unprecedented impact on the tiles and ceramic companies (expectedly) in our coverage space (Kajaria Ceramics, KJC and Cera Sanitaryware, CRS). KJC/CRS are estimated to deliver EBITDA loss of Rs 179mn/Rs234mn due to the compete lull in the first half of 1QFY21. The topline loss is expected to be nearly 65-70% and will flow down to the EBITDA/PAT effectively leading to a loss in 1Q of Rs324mn/242mn. However, the gross margins are likely to be maintained with a minor decline. This is though factored in alongside the impact on FY21e earnings in our earlier estimates. The business revival is expected towards the end of FY21e and hence there will be a short term impact. Conserving the financial health will be a key challenge and KJC and CRS are well equipped for this with strong balance sheet health. helping these companies handle the current challenging situation and emerge successful. We maintain our FY22e earnings targets and continue with our BUY rating on KJC and CRS.

10:44 AM

BROKERAGE VIEW:: Edelweiss Securities on Tata Steel

Tata Steel’s (TSL) Q1FY21 operating performance was impacted by the ongoing covid-19 crisis. Key highlights: i) Profitable domestic segment fared worse compared to European operations (TSE). ii) High exports to impact blended realisation. iii) Activity improved in June on easing of lockdown. Going ahead, we expect performance to improve as economic activity picks up. However, we perceive risk-reward balanced on high leverage and stretched valuations. Higher-than-expected federal support in Europe is a key risk to our view. Maintain ‘HOLD’ with TP of Rs 330, implying 7.0x FY22E EBITDA.

10:43 AM

BROKERAGE VIEW:: ICICI Securities on TCS

In the near term, revenues, margins are expected to be under pressure leading to a washout FY21E. However, TCS has the ability to bounce back as seen in the 2008 global financial crisis. Further, we believe there are long term drivers for the company in terms of market share gains, acceleration in digital technologies and ability to win large deals based on company’s execution. Hence, we remain positive on the stock from a long-term perspective. However, the current valuation factors in most of the positives. Hence, we maintain HOLD on the stock with a revised target price of Rs 2,400.

10:31 AM

STOCK ALERT :: Britannia Industries hits record high

10:25 AM

Insurance stocks in focus; SBI Life, HDFC Life up 4%; ICICI Pru slips 3%

Shares of insurance companies were in focus at the bourses on Friday, with SBI Life Insurance and HDFC Life Insurance Company gaining up to 4 per cent on the BSE as their new business premiums (NBP) contracted by lesser margin on a year-on-year (YoY) basis in June as compared to April and May. The NBP of life insurance companies contracted 10.46 per cent year-on-year (YoY) in June, it is, however, indicative of recovery signs after the government decided to gradually unlock. Life insurers had seen their NBP decline 32.6 per cent and 25.4 per cent in April and May, respectively. READ MORE

Opting for EMI on health insurance premiums? You may end up paying more

10:17 AM

PNB reports fraud of Rs 3,688.58 cr in DHFL account; stock slumps 7%

Shares of state-owned Punjab National Bank slumped up to 6.7 per cent to Rs 34.6 on the BSE on Friday after the bank said it has reported loan extended to Dewan Housing Finance Ltd (DHFL), worth Rs 3,688.58 crore, as fraud. "The bank is reporting Borrowal Fraud of Rs 3,688.58 crore in NPA account of Dewan Housing Finance Ltd. (DHFL) at large corporate branch at Mumbai, Zonal Office," the bank said in a regulatory filing. READ MORE

10:12 AM

Rupee Opening

Rupee opens weaker at 75.15 per US dollar vs Thursday's close of 74.99/$

10:09 AM

TCS slips 1% post disappointing Q1FY21 results; here's what brokerages say

Shares of Tata Consultancy Services (TCS) slipped around 1 per cent on the BSE on Friday after the company reported a weak set of numbers for the quarter ended June 2020, owing to the supply and demand disruptions caused by the Covid-19-induced lockdown. For the quarter under review, TCS reported a profit before tax (PBT) of Rs 9,504 crore, which was 9.6 per cent lower than in the previous quarter and 10.65 per cent lower than the same period of the previous financial year. READ MORE