MARKET WRAP: Sensex ends 353 pts higher; metals shine, pharma stocks slip

Nifty metal was the top gainer, up over 2 per cent, followed by Nifty public sector bank index, up over 1 per cent.

9:01 AM

Rupee opening

Rupee opens higher at 71/$ vs Tuesday's close of 71.40 against the US dollar

8:59 AM

Sebi proposals to make portfolio management transparent, investor friendly

The Securities and Exchange Board of India (Sebi) recently came up with a set of proposals to make portfolio management services (PMS) more transparent, standardise the offerings and make them more investor-friendly.

 

While some significant changes have been recommended, the committee has partially touched upon the fee structure, a problematic area for investors to understand. READ MORE

8:57 AM

Banks to get two-year guarantee to purchase 'pooled assets' of NBFCs

Under the scheme, notified on August 10, public sector banks (PSBs) have been given a deadline of six months to purchase “pooled assets” of NBFCs at fair value. “One-time guarantee provided by the government on the pooled assets will be valid for 24 months from the date of purchase and can be invoked on the occurrence of default,” according to the notification. READ MORE

8:53 AM

Market Ahead, August 14: All you need to know before the Opening Bell

Global cues, rupee trajectory and the next leg of corporate earnings are expected to sway markets on Wednesday.

 

US President Donald Trump yesterday backed off his September 1 deadline for 10 per cent tariffs on remaining Chinese imports. On the other hand, political unrest in Hong Kong and market rout in Argentina continues. LISTEN TO PRE-MARKET PODCAST HERE

8:52 AM

Bosch reports subdued Q1 results as slowdown takes a toll on revenues

The largest auto component maker by market capitalization, Bosch reported a subdued April-June quarter results, which were below Street expectations. Revenues, 85 per cent of which comes from the automotive segment, were down 13.5 per cent over the year-ago quarter.

 

Higher commodity and foreign exchange costs on a weak revenue base impacted operating profit, which fell by 23 per cent, while margins were down 141 basis points over the March quarter to 17.4 per cent. READ MORE

8:49 AM

Trump backs off China tariff plan with delays for cellphones, laptops

President Donald Trump on Tuesday backed off his plan to impose 10 per cent tariffs on remaining Chinese imports on Sept. 1, delaying duties on cellphones, laptops and many other consumer goods in the hopes of blunting their impact on US holiday sales.

 

The move sent stocks sharply higher and drew cautious relief from retailers and technology groups. READ MORE

8:48 AM

63% banks report decline in NPA in infra sector in six months: Ficci-IBA

More banks are seeing a reduction in bad assets, especially in the sectors they had earlier quoted as high non-performing asset (NPA) sector, a recent survey by Ficci and IBA revealed.

 

The ninth Ficci-IBA survey in their report said the proportion of respondent banks citing a reduction in NPAs stood at 52 per cent as against 43 per cent in the previous round. About 55 per cent of reporting public sector banks (PSBs) have cited a reduction in NPA levels. READ MORE

8:45 AM

Silver at three-year high, hits Rs 44,000 a kg in Mumbai's spot market

Silver rose to a three-year high on Tuesday, crossing Rs 44,000 per kg in Mumbai’s spot market. The metal was a laggard for some time but it seems to have bounced back, with short positions in international exchanges getting covered. It closed Rs 1,205 higher, at Rs 44,280 per kg, a price last seen in November 2016. Standard gold closed Rs 600 higher at Rs 37,796 per 10 grams.

 

October gold on the MCX rose to Rs 35,600,, while September silver hit Rs 44,500 levels. Ajay Kedia, director Kedia Commodities said, “strong safe-haven demand amid political tensions in Hong Kong and a weak Indian Rupee, which dropped to test 71.3975 in futures, supported the bullion rally. Pro-democracy protests in Hong Kong continued, and China asked Western diplomats not to interfere in the territory. Experts fear that the protests could disrupt the markets and various industries in the region.” READ MORE

8:42 AM

Stocks to watch: Coal India, Future Retail, ONGC, Grasim Ind, IDBI Bank

Here's a look at the top counters that may trade actively in today's trading session -

 

Coal India: State-owned Coal India (CIL) on August 13 reported a 22.2 per cent increase in consolidated profit at Rs 4,629.87 crore for the quarter ended June 30, mainly on higher income. Coal production in April-June quarter stood at 136.94 million tonnes (MT) as compared with 136.85 MT in the year-ago period.

 

Earnings today: A total of 1,007 companies, including Grasim Industries, Indiabulls Real Estate, IDBI Bank, and Wockhardt are scheduled to announce their June quarter earnings today. READ MORE

8:40 AM

HDFC Securities on Cadila Healthcare

Recommendation: BUY

TP: Rs 265

CMP: Rs 230

We upgraded CDH recently as we believe that the impact of OAI on its key formulations facility at Moraiya, Gujrat is already priced-in. The sharp ~30% FYTD fall in the price makes it one of the cheapest among the large-cap pharma stocks at 15.7x on FY21E EPS. With ~100 pending approvals and 2/3rd of them being filed from Ex-Moraiya units, we believe US$ 800mn US revenues and Rs 14.6 EPS (ex-Asacol HD) are achievable. With the ability to generate Rs 8-10bn FCFs annually, net debt position remains comfortable at ~Rs 70bn (0.7x FY19).

8:39 AM

HDFC Securities on Ramkrishna Forgings

Recommendation: SELL

TP: Rs 380

CMP: Rs 440

We downgrade to SELL and lower our PE multiple to 12x (14x earlier) to factor in the challenging demand environment. (1) The domestic CV sales cycle is expected to remain weak, with the pre-buy having a limited impact over 2HFY20 (2) While the company’s expansion into new markets/segments is expected to contribute towards incremental volumes, the demand outlook in the US is softening as new order intake has been weak over the year. The export volumes will be increasingly at risk over FY21E.

 

8:38 AM

Kotak Securities on NCC

Recommendation: BUY

TP: Rs.81

We have factored in impact of weak execution as well as challenges related to AP projects along with higher working capital and finance cost in our estimates. We have cut our earnings estimates for FY20E/FY21E by 21%/28.5%, respectively. Based on FY20E/FY21E revised EPS of Rs 6.6/Rs 6.9, the stock is trading at PE of 10.4x/9.9x, respectively. We have maintained BUY on NCC as we see upside over our revised SoTP based target price of Rs 81 (vs Rs 132 earlier).

8:37 AM

Kotak Securities on Greaves Cotton

Recommendation: ADD

TP: Rs.125

GCL is currently trading at 14.5x and 13.2x FY20E and FY21E earnings respectively, which is at a discount to peers in the capital goods space. However, GCL's growth outlook has remained subdued as it has 3W engine sales have underperformed the Industry growth rate.
 

We now value the stock at 14x FY21E EPS (earlier 15x FY21E), thus arriving at a price target of Rs 125 (Earlier Rs 156). In view of the modest upside, we maintain "ADD" rating. Key positive trigger going forward will be ramping up of its 200cc BSVI compliant CREST CNG engine volume (currently undergoing field trials).

8:36 AM

Kotak Securities on Bajaj Electricals

Recommendation: REDUCE

TP: Rs.372

BEL is trading at 34.6x and 34.9x on FY20E/21E respectively. In view of the weak earnings outlook in the near term and premium valuations, we maintain our negative outlook on the stock.
 

We arrive at a SOTP based revised target price of Rs 372 (Rs 530 earlier); In our previous update, we had recommended "Sell" rating on the stock. Though the stock price has corrected sharply but it is yet to show meaningful improvement in performance to review our stance. Hence recommend "REDUCE".

 

8:36 AM

Kotak Securities on Allcargo Logistics

Recommendation: BUY

TP: Rs.120

 

Strong volume trend in Multimodal Transport Operations (MTO) and stable volumes in the Container Freight station (CFS) division with declining realizations has been the highlights of financial performance for ALL in FY19. The project engineering and solution division remains a drag, while the logistics park division is insignificant for the company. Overall performance in Q1FY20 was healthy, which make us believe that the performance would be stable in near term. Also, we believe that, most of negatives have got factored in the current price. Recommend BUY with an unchanged TP of Rs 120 at 10x FY21 earnings.