MARKET WRAP: Nifty ends May F&O expiry above 10,700, Sensex gains 416 pts

Benchmark indices gained on expectations that the domestic economy likely gained momentum in the first three months of 2018.

11:00 AM

Stocks at 52-week high

COMPANY	PRICE()	52 WK HIGH	CHG()	CHG(%)
AVENUE SUPER.	1567.50	1575.00	3.50	0.22
GODREJ CONSUMER	1156.65	1161.00	26.35	2.33
GRUH FINANCE	727.00	736.00	24.60	3.50
HATSUN AGROPROD.	720.00	732.35	7.68	1.08
HDFC BANK	2088.00	2126.65	41.15	2.01

10:49 AM

Atlanta tanks 20% as auditor Price Waterhouse resigns

 

Shares of Atlanta are locked in lower circuit of 20% at Rs 51.10, also its fresh 52-week low on the BSE, after the Price Waterhouse resigned as auditor of the company with effect from May 29, 2018.

 

“Price Waterhouse Chartered Accountants LLP, Statutory Auditors of the Company, vide their letter dated May 29, 2018 have resigned from their position as the Statutory Auditors of the Company for F.Y.-2017-18 with immediate effect,” Atlanta said in a regulatory filing. READ MORE

10:38 AM

ANALYSIS BSE Midcap index set for worst monthly fall in 18 months

 

The adage – Sell in May and go away – has proven correct this time around for stocks in the mid-cap segment with the S&P BSE Midcap index set to post its worst monthly fall in past 18 months. The performance comes on the back of sharp decline automobiles, pharmaceutical, capital goods and financial sector stocks.

 

Out of 100 stocks from the index, 78 per cent scrips have recorded a negative return during May. Of these 78 stocks, 44 scrips have underperformed by falling up to 62 per cent till Tuesday. READ MORE

Photo: Shutterstock.com

10:23 AM

Power Grid: Strong order book to drive earnings in FY18-22, say analysts

 

Power Grid’s March quarter (Q4) performance, announced after market hours on Tuesday, saw earnings grow at a moderate pace, partly due to exceptional items. Yet, its share price gained 1.1 per cent on Wednesday. The optimism stems from analyst expectations of a pick-up in asset capitalisation and capital expenditure (capex) by India’s largest power transmission company.

 

Capitalisation refers to commercial start of a project. Fear of slow growth in capitalisation was one reason for the stock lagging in the second half of 2017-18. READ MORE

10:10 AM

NIFTY OPTIONS WATCH
 
·         Addition in OI were seen in 10600 strike call and at 10500 strike Put indicating range bound session in the market for the day.
 
·         Highest OI build-up is seen at 10800 strike Calls and 10500 strike Puts, to the tune of 5.10mn and 5.79mn respectively.
 
FII AND VIX
 
·         FIIs were net sellers in Cash to the tune of 1287 Cr. and were net sellers in Index Futures to the tune of 832.28 Cr.
 
·         India VIX increased by 2.60% to close at 13.41 touching an intraday high of 13.85.

(Source: Nirmal Bang report)

10:00 AM

Market Check

S&P BSE Sensex	35,004.87		0.28%
Nifty 50	10,639.20		0.23%
S&P BSE 200	4,629.12		0.23%
Nifty 500	9,272.30		0.19%
S&P BSE Mid-Cap	16,077.06		0.15%
S&P BSE Small-Cap	17,374.88		0.16%

9:45 AM

RCom gains 15% on settlement agreement with Ericsson

 

Reliance Communications (RCom) was up 15% to Rs 20.10 on the BSE in early morning trade after the National Company Law Appellate Tribunal (NCLAT) stayed the May 15 order of the National Company Law Tribunal (NCLT) in Mumbai, which had admitted the RCom and two of its subsidiaries for insolvency proceedings.

 

“The NCLAT vide its orders dated May 30, 2018 stayed, with immediate effect, all the three orders dated May 15, 2018 whereby NCLT had admitted the Company and its subsidiaries Reliance Infratel Limited and Reliance Telecom Limited to Corporate Insolvency Resolution Process (CIRP) under Insolvency and Bankruptcy Code, 2016,” RCom said in a statement. READ MORE

9:44 AM

IIFL on Coal India

The company has guided for production and sales volume of 630mn tons in FY19 from 567.4mn tons of production and 580.3mn tons of sales in FY18. We believe most of the negatives are already built into the price. Evacuation charges coupled with price hikes would add Rs.89bn to the company’s topline. This is in addition to the volume growth expected during the year.

Employee costs would also be lower on a yoy basis as the company will not have any on-offs and prior period items (Rs.80bn). We believe a combination of the above would lead to operating profit more than doubling on a yoy basis. We believe valuations at 5.3x FY20 EV/EBIDTA, is quite attractive considering the above tailwinds. We upgrade the stock to Buy with a revised price target of Rs.369

9:37 AM

Stocks in News

Power Grid to offer up to 20% of tower assets to telecom firms

Ultratech says Binani Cement lenders panel approved resolution plan.

Granules India launched generic Methylergonovine tablets in partnership with Hikma.

Jamna Auto in pact with U.K.’s Tinsley Bridge Ltd. for technology and technical assistance.

Can Fin Homes to consider fund raising proposals on June 2.

Eicher Motors’ Royal Enfield launches special edition of Classic 500 Pegasus

KNR Construction wins HAM order worth Rs 1,144.5 crore.

Infibeam approves raising up to Rs 2,000 crore.

Punj Lloyd approves restructuring of outstanding credit facilities.

Atlanta says statutory auditor PWC resigned with immediate effect.

(Source: Nirmal Bang report)

9:35 AM

Edelweiss on BPCL

Despite better marketing margins, rising international fuel prices in an election-heavy calendar continue to weigh on OMCs’ marketing business. Factoring in lower marketing margin, we cut FY19/20E earnings by 7%/4%. Maintain ‘BUY’ with a revised SoTP-based target price of Rs 520 (Rs 582 earlier), as we lower EV/EBITDA multiple for marketing (5x FY20E vs. 6x earlier) due to perceived risk to free pricing. 

9:34 AM

Edelweiss on Sadbhav Engineering

Sadbhav Engineering's (SEL) Q4FY18 revenue grew 7% YoY to Rs 11bn, while EBITDA margin expanded ~60bps to 11.2%. Lower other income (down 82% YoY) restricted PAT to Rs 699mn (up ~2% YoY). The company’s BOT portfolio witnessed healthy ~10% YoY growth in toll collection.

Robust order inflows which have boosted order book to ~Rs 132bn (book-to-bill at 3.7x) and improving margin trajectory are key positives. With a bid pipeline of ~Rs 800bn, we expect the company to win substantial orders going ahead, which will lend impetus to execution growth. Maintain ‘BUY’ with SoTP-based target price of Rs 530.

9:30 AM

Stocks under Rs 10 that have zoomed up to 720% in a year

 

A rising tide lifts all boats. The market rally over the past one year has seen 23 stocks that traded at Rs 10 or below on the BSE, zoom over 100 per cent during this period.

 

New Delhi – based Bampsl Securities tops the table with a gain of 718 per cent, followed by Daman & Diu – based Dolat Investments Ltd that has surged 602 per cent to Rs 17.5 levels, ACE Equity data shows. These stocks traded at Rs 0.23 and Rs 2.5 levels, respectively a year ago. In comparison, the S&P BSE Mid-cap and S&P BSE Small-cap indices have moved up around 12 per cent and 17 per cent, respectively during this period. READ MORE

9:23 AM

Sectoral Trend

9:21 AM

Top Sensex gainers and losers

9:17 AM

Markets at open

At 9:17 am, the S&P BSE Sensex was trading at 35,048, up 142 points while the broader Nifty50 index was ruling at 10,672, up 58 points