Sensex adds 86 pts; GNFC, JK Paper surge 12% each, auto stocks slide
CLOSING BELL: Sectorally, the Nifty Pharma index was the best performing index, rising 2.5 per cent on the NSE. The Nifty Auto index, on the other hand, slipped 0.4 per cent
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1:00 PM
Sensex 30: Heatmap at 1 PM
12:54 PM
Russia-Ukraine crisis :: Hungarian Prime Minister says EU won't sanction Russian Gas & Oil
12:50 PM
Asian Markets Update: China rebounds, Japan, Hong Kong sag
China's benchmark index, the Shanghai Composite staged a dramatic rebound to end 0.4 per cent higher as against a loss of more than 2 per cent earlier in the day on Friday. However, Nikkei and Hang Seng were down sharply. Kospi and Taiwan too were down 0.7 per cent and 0.9 per cent, respectively.
Source: Yahoo.com
12:42 PM
NSE Advance Decline ratio fairly in favour of the bulls at 2:1
12:34 PM
Laurus Labs surges 6% to hit over 4-month high
Analysts remain optimistic on the company's outlook for FY23 & FY24 with new capacity addition for commercial usage for FDF and API segments, ARV business and robust growth expected in CS business. READ MORE
12:20 PM
BSE, CDSL, MCX: Exchange-related shares poised for 14% upside, charts show
Shares of BSE are decisively claiming new all-time highs; CDSL broke out of Double-Bottom formation, while IEX has witnessed an Inverse head and shoulder breakout. READ MORE
12:10 PM
Brokerage Call :: Kotak Institutional Equities on Consumer Staples
>> The sharp rise in RM inflation would weigh on profitability and volume growth (especially in view of softening demand) of most consumer companies in the near term.
>> We model part of the inflation, trim FY2023 estimates and broadly maintain FY2024E earnings. Short-term uncertainty aside, we expect recovery in margins as RM prices eventually normalize (as seen in the past cycles).
>> Select stocks have corrected sharply and offer decent upside from current levels. HUVR, GCPL, UBBL, JUBI and VBL are our preferred picks.
>> We model part of the inflation, trim FY2023 estimates and broadly maintain FY2024E earnings. Short-term uncertainty aside, we expect recovery in margins as RM prices eventually normalize (as seen in the past cycles).
>> Select stocks have corrected sharply and offer decent upside from current levels. HUVR, GCPL, UBBL, JUBI and VBL are our preferred picks.
12:08 PM
Brokerage Call :: Nirmal Bang on Cement sector
>> All-India cement prices are up by Rs2/bag on MoM basis (+0.7%) and Rs7/bag on YoY basis (+2%) at Rs358/bag.
>> Compared to 3QFY22, cement prices are just 2% higher in 4QFY22.
>> Key feedback on pricing was that the companies are trying to push volumes in the market to meet year-end targets and hence pricing is relatively weak.
>> Attempts to increase prices amid relatively moderate demand have not been successful and dealers do not expect further price hikes in March’22.
>> At current cement prices, given the elevated coal/petcoke prices, we believe that margin contraction can be substantial, and cement companies will not be able to breakeven even at the EBITDA level.
> We currently have a ‘positive’ outlook on the sector as we believe that desperate situations call for desperate measures and the industry will pass on the increased cost burden to consumers.
>> The recent fall in cement stocks have made valuations reasonable and risk-reward favorable.
>> We like Ultratech, Birla Corp, JK Cement, JK Lakshmi, Nuvoco Vistas and Sagar Cements as our top picks in the sector.
>> Compared to 3QFY22, cement prices are just 2% higher in 4QFY22.
>> Key feedback on pricing was that the companies are trying to push volumes in the market to meet year-end targets and hence pricing is relatively weak.
>> Attempts to increase prices amid relatively moderate demand have not been successful and dealers do not expect further price hikes in March’22.
>> At current cement prices, given the elevated coal/petcoke prices, we believe that margin contraction can be substantial, and cement companies will not be able to breakeven even at the EBITDA level.
> We currently have a ‘positive’ outlook on the sector as we believe that desperate situations call for desperate measures and the industry will pass on the increased cost burden to consumers.
>> The recent fall in cement stocks have made valuations reasonable and risk-reward favorable.
>> We like Ultratech, Birla Corp, JK Cement, JK Lakshmi, Nuvoco Vistas and Sagar Cements as our top picks in the sector.
12:04 PM
Brokerage Call :: JM Fin maintains 'Hold' on AU SFB
>> We believe AU SFB currently trades at premium valuations of 4.2x/3.5x FY23/24E BVPS, which adequately captures the positives - superior return profile and long runway to growth. We rate AU SFB as HOLD with a TP of INR 1,400 (valuing it at 4.3x FY24E BVPS).
12:02 PM
Nonetheless, the stock has corrected >10% in past one year and underperformed Nifty by ~20% and Bank Nifty by ~7%. It currently trades at <3x FY23E BV at ~2SD discount to 5-year average valuation. Maintain BUY with unchanged target price of Rs1,955.
Key risks: i) adverse behaviour of restructured pool; ii) lower core fee and higher opex may drag earnings.
Brokerage Call :: ICICI Securities says HDFC Bank has enough levers to absorb global shocks
CMP: Rs 1,393 | TP: Rs 1,955 | Reco: Buy
Interaction with senior management of HDFC Bank suggests the bank is well geared to sustain high-teen growth in loans and advances. Visibility continues to be high on its consistent earnings delivery and >2% RoA / >18% RoE for FY23E/FY24E.
Interaction with senior management of HDFC Bank suggests the bank is well geared to sustain high-teen growth in loans and advances. Visibility continues to be high on its consistent earnings delivery and >2% RoA / >18% RoE for FY23E/FY24E.
Nonetheless, the stock has corrected >10% in past one year and underperformed Nifty by ~20% and Bank Nifty by ~7%. It currently trades at <3x FY23E BV at ~2SD discount to 5-year average valuation. Maintain BUY with unchanged target price of Rs1,955.
Key risks: i) adverse behaviour of restructured pool; ii) lower core fee and higher opex may drag earnings.
11:59 AM
Brokerage Call :: ICICI Securities initiates coverage on Star Health with "Buy"
CMP: Rs 631 | TP: Rs 806 | Reco: Buy
While FY21/FY22 have been impacted by covid, we see good prospects for >20% premium CAGR in Indian health insurance space till FY30 on the back of: 1) structural under-penetration, 2) increasing consumer awareness and 3) rising affordability. We see STAR well placed to be one of the biggest beneficiaries of the same.
Star Health Insurance (STAR) is the leading health insurance player in India with 14%/32% market share in total/retail health insurance segment as of 10MFY22. A strong network of 0.53mn agents, >12,000 hospitals and 737 branches as of 9MFY22 makes STAR a dominant franchise in Indian health insurance with significant entry barriers.
This is further complemented by healthy financials (18% PAT CAGR over FY16-FY20 and average RoE of 15.5% over FY18-FY20) and strong management.
This is further complemented by healthy financials (18% PAT CAGR over FY16-FY20 and average RoE of 15.5% over FY18-FY20) and strong management.
While FY21/FY22 have been impacted by covid, we see good prospects for >20% premium CAGR in Indian health insurance space till FY30 on the back of: 1) structural under-penetration, 2) increasing consumer awareness and 3) rising affordability. We see STAR well placed to be one of the biggest beneficiaries of the same.
11:55 AM
Brokerage Call :: MOFSL sees 33% upside in AU Small Finance Bank
CMP: Rs 1,162 | TP: Rs 1,550 (+33%) | Reco: Buy
AUBANK has been reporting a strong operating performance and robust business growth while asset quality has been particularly resilient amid a challenging economic environment. With an improvement in economic activity, the bank appears on track to deliver superior growth while retail deposit mix continues to improve supporting the margin profile.
Collection efficiency stands healthy at 106% and the bank carries contingent reserves of INR3b (75bp of loans), which provides further comfort.
We estimate AUBANK to deliver ~35% earnings CAGR over FY22-24, while RoA/RoE improves to 2.1%/20.4% in FY24E.
Collection efficiency stands healthy at 106% and the bank carries contingent reserves of INR3b (75bp of loans), which provides further comfort.
We estimate AUBANK to deliver ~35% earnings CAGR over FY22-24, while RoA/RoE improves to 2.1%/20.4% in FY24E.
11:48 AM
Cipla gains 3%, hits record high; trades higher for 5th straight day
Shares of Cipla hit a record high of Rs 1,014, up 3 per cent on the BSE in Friday’s intra-day trade and surpassed its previous high of Rs 1,005 touched on September 29, 2021. The stock of pharmaceutical company traded higher for the fifth straight day, up 6 per cent during this period. READ MORE
11:37 AM
Inflation expected to average 5.4% in FY23, says CRISIL's DK Joshi
In an interview with Business Standard's Arup Roychoudhury, chief economist at CRISIL, DK Joshi, reiterated his company's stand that India's real GDP will grow at 7.8% in FY23. READ FULL INTERVIEW
11:27 AM
NEWS ALERT :: Citi increases India’s FY23 CPI forecast by 70 bps to 5.7%
>> CPI could rise to 6.3% in FY23 is oil stays above $110-120/bbl
>> Real GDP growth forecast cut by 50 bps to 7.5% for FY23
>> GDP growth could be 7% if oil stays elevated
>> Citi sees Brent avg at $84/bbl in FY23 vs $67 earlier
>> Real GDP growth forecast cut by 50 bps to 7.5% for FY23
>> GDP growth could be 7% if oil stays elevated
>> Citi sees Brent avg at $84/bbl in FY23 vs $67 earlier
Topics : Sensex MARKET LIVE MARKET WRAP Markets Nifty BSE NSE Brent crude Oil Prices Crude Oil Prices Russia Ukraine Conflict US Inflation SGX Nifty stock markets Dalal Street
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First Published: Mar 11 2022 | 8:05 AM IST
