MARKET WRAP: Indices end flat, Sensex up 60 pts; ITC, TCS rise nearly 2%

All that happened in the markets today

12:47 PM

BROKERAGE VIEW:: Emkay Global on BPCL

RATING: BUY | TARGET PRICE: Rs 480

• Our deep-dive analysis of BPCL is through the lens of a strategic buyer who will give due consideration to 1) significant capital locked in ongoing projects and thus long-term normalized earnings 2) operational autonomy enabling deep sweating of assets and cost optimization and critically 3) financial autonomy driving superior capital allocation.
• BPCL's Rs330bn of downstream capex (45-50% of gross block) presently delivers little. If flawlessly executed, we estimate a USD1.5/bbl GRM upswing by (a) substituting high-margin propylene over LPG (b) optimizing gasoline yield and (c) prioritizing a similar PRFCCU in Mumbai. Petchem will separately add Rs26bn in EBITDA through FY25.
• Operational autonomy of a PSU asset will give significant scope to drive productivity improvements. We expect revenue enhancement tools, outlet rationalization strategies and opex optimization - all put together could add over Rs10bn in EBIDTA. Likewise, capex can be more targeted and rationalized, thereby realizing 10% savings.
• Private ownership with these levers could generate Rs240bn in mid-cycle EBIDTA through FY25. This implies a 30% earnings CAGR vs FY20 and puts BPCL's FV at Rs900/sh in FY24 or Rs640 discounted back. This is Rs160/sh higher than our existing TP of Rs480 and reflects the strategic premium or management alpha. Reiterate BUY/OW.

12:43 PM

IPO Alert :: Happiest Minds subscribed 99% till 12:30 pm

12:33 PM

Telecom, automobile companies lead earning downgrades, shows data

Analysts have downgraded earnings estimates for FY21 by 22 per cent. Firms in the telecom and automobile space have seen maximum downgrades, while health care is the only sector to have seen upgrades, according to the data analysed by Deutsche Bank Wealth Management. READ MORE

12:32 PM

Vi is We: Two yrs after merger Voda Idea integrates to create new identity

Just when everyone had written Vodafone off in India, its joint venture telecom business in the country has sent out a strong signal that it’s going to be around, possibly for years to come. At a virtual roundtable called to announce a strategic decision by Vodafone Idea, the telco, saddled with huge losses and high debt, launched a new identity for itself Monday morning. It's the final step in the biggest integration of two telecom brands, top executives said. READ MORE

12:21 PM

BofA Securities bets on RIL's 'layer of commerce', maintains 'BUY'

The note, co-authored by wrote Sachin Salgaonkar, Sukriti Bansal and Nafeesa Gupta, suggests that though there could be intermittent corrections in the stock in the near-term, the risk-reward is favorable from a 12-month perspective. Hence, it maintains a 'Buy' with the target price of Rs 2,355. READ MORE  

12:10 PM

NEWS ALERT | Vodafone & Idea launch new brand name 'Vi'

11:56 AM

Sebi's new margin norm may nudge trading towards buy-and-hold investing

Earlier, the concept of margin collection existed in derivatives, but not in the equity segment. Now a minimum margin of 20 per cent of trade value has to be collected on every transaction in the equity segment. This rule has been effective since January 1, 2020. But if there was a shortfall in margin collection, exchanges did not levy a penalty. They were going to begin doing so from September 1 but have now deferred it to September 16. READ MORE

11:47 AM

Vodafone Idea trades higher ahead of the company's strategic announcement

11:38 AM

Dixon Technologies hits record high, crosses Rs 10,000-crore in m-cap

Shares of Dixon Technologies continued their northward run, gaining 4 per cent on the BSE on Monday to hit a record high of Rs 8,935 on expectation of higher demand of consumer electronics. The company's market capitalisation crossed Rs 10,000 crore today after five straight day of gains. The stock surpassed its previous high of Rs 8,822, touched on August 28, 2020, on the BSE. With 10 per cent rally in the past week, the stock has rallied 208 per cent from its recent low of Rs 2,900, hit on March 24, 2020. READ MORE

11:30 AM

More pain in store? Reality check for stock markets after a dream run

After a relentless run, stocks are set for a reality check as investors evaluate how much the markets can be devoid of economic fundamentals. On Friday, equities posted their biggest weekly drop since May, with the benchmark Sensex and Nifty dropping nearly 3 per cent amid a sharp sell-off in technology stocks in the US. READ MORE

11:27 AM

Agri-related stocks decline

COMPANY	LATEST(rs)	CHG(%)
UPL	491.85	-3.26
MEGHMANI ORGAN.	69.25	-1.56
RALLIS INDIA	302.60	-1.30
P I INDUSTRIES	1849.00	-1.81
DHANUKA AGRITECH	751.15	-2.71

11:21 AM

India Inc mirrors GDP contraction in Q1: Revenues of 2,170 firms dip 24.3%

It’s not often that the macroeconomy and microeconomy move together and mirror each other. Mostly the latter reacts with some lag. In the April-June quarter (Q1), however, India Inc numbers have perfectly mirrored the country’s macroeconomic headline. READ MORE

11:05 AM

Stock picking has become more interesting in these times: Samir Arora

Pace of recovery in markets worldwide has been unprecedented and no one could have anticipated the extent. It has generally been said that investors should not time markets and stay invested, but still this rally has been absolutely staggering. Next few triggers have to be related to opening up the economy and the strength or otherwise of the underlying recovery. We also need that there not be a strong second wave and that somewhere in the horizon there be prospects of an effective vaccine. READ MORE

10:56 AM

Marico, Tata Motors: 5 Nifty50 stocks that can to do well in a weak market

Marico Limited (MARICO): After conquering the 200-days moving average (DMA), the counter has successfully managed to trade above the 50-DMA with “Higher High, Higher Low” formation. This reflects a strong upward momentum with price absorbing selling pressure at higher levels. Going forward, a decisive close above Rs 380 levels may open the doors for a further upside. It can hit Rs 410 and then Rs 418 levels over the next few sessions. However, the stock needs to defend Rs 360 on a closing basis to maintain its upward bias. READ MORE

10:48 AM

VST Tillers rallies 18% in 5 days on strong power tillers sales in August

The company sold 2,638 power tillers in August 2020 as against 1,437 in August 2019, registering 83.57 per cent year-on-year (YoY) growth. It had sold 897 tractors during last month, as compared to 813 in the corresponding month of the previous year. READ MORE