Sensex ends marginally lower, Nifty holds 10,400; PSU banks outperform

All that happened in the market today

3:44 PM

Nifty IT index ends 1.46% lower

3:39 PM

Nifty PSU Bank index ends 2.33% higher

3:36 PM

Sectoral Trend

3:35 PM

BSE Sensex gainers and losers

3:33 PM

Market at close

 

The S&P BSE Sensex ended at 33,857, down 61 points while the broader Nifty50 index settled at 10,427, up 5 points.

3:23 PM

Reliance Securities on Majesco Limited

 

The company reported strong 3QFY18 results, with revenue rising 4.7% QoQ in USD terms, led by strong order book growth seen in FY18 YTD; cloud revenue rose 5.1% QoQ, aided by investments made, while License revenue grew by a massive 127% QoQ led by new deal wins. 

 

Good revenue growth drove a 345bps QoQ rise in EBITDA margin to 4.5%. Industry fundamentals and the key IBM partnership will enable Majesco to boost revenue growth going forward.

 

Cloud offering - ‘Trump Card’: 60-70% of the deal pipeline in the past few months has been for cloud services. Of the addressable market of US$25bn for Majesco, around US$15-16bn relates to the L&A market, while US$9.25bn relates to the US P&C market. ​​We currently have a target price of Rs 730 on the stock.

3:12 PM

IPO WATCH

 

Bandhan Bank Limited - Subscribe

Issue Opens: 15-Mar-18, Issue Closes: 19-Mar-18, Price Band: Rs370-375

 

Bandhan Bank was able to ride the recent MFI crisis smoothly unlike NBFC-MFIs. So in the current form, it is a robust and resilient micro loan financier with great growth prospects. The bank would likely be able to sustain RoA and RoE near the 4% and 25% mark respectively. We believe long term investors would find post-money valuation at 4.8x P/BV reasonably attractive. A comparable benchmark for valuation would be the recent IndusInd Bank-Bharat Fin transaction wherein the former valued the latter at ~5.2x FY18 P/BV. 

 

(Source: IIFL Report)

3:01 PM

PSU banks surge. Don't rush to buy the shares on a bounce, caution analysts

Shares of public sector banks (PSBs) bounced back on Tuesday with Bank of India surging 14 per cent on reports of recovery of Rs 70 billion in non-performing assets (NPAs). The rub-off effect was seen across the board as Nifty PSU Bank index, the largest gainer among sectoral indices, gained five per cent compared to around 0.35 per cent rise in the Nifty 50 index in intra-day deals. READ MORE
 

2:53 PM

Emkay Global on HEG

 

We recently met the HEG Ltd management to understand the recent developments in the Graphite Electrode (GE) industry and to gain insights into the company. We foresee further scope for improvement.

 

HEG's debt has dropped to Rs2bn, which is likely to be NIL in Q4FY18 itself. The company has been evaluating capacity expansion by 20ktpa depending on Needle Coke availability. Growth and diversification are also options for cash usage.

 

Technology deterrence, physical set-up barrier and limited Needle Coke supply will restrict any new capacity addition at least for next 2-3 years. Therefore, we believe both offtake and realization will continue to be robust and sustainable for the next few years. 

2:44 PM

Buzzing stock

 

GAIL (India) Ltd is up 20.53% in last one year as compared to a 15.11% spurt in NIFTY and a 21.61% spurt in the Nifty Energy index.

2:31 PM

Bajaj Electricals hits record high; zooms 111% in one year

 

Bajaj Electricals hit a record high of Rs 624, up 8.6% on the BSE in noon deal, surpassing its previous high of Rs 585 recorded on January 5, 2018 in intra-day trade.

 

The company engaged in household appliances business has outperformed the market by surging 111% in past one year, as compared to 17.5% rise in the S&P BSE Sensex. Since February 7, 2018, after December quarter (Q3FY18) results, it rallied 28% against 0.18% decline in the benchmark index. READ MORE

2:22 PM

Europe Trade

European equities opened mixed, as investors monitored corporate earnings and awaited the release of US inflation data later in the day.

 

The pan-European Stoxx 600 was little changed from the previous session shortly after the opening bell, with sectors and major bourses pointing in opposite directions.

2:12 PM

InterGlobe Aviation skids on report DGCA grounds A320neo aircraft

 

InterGlobe Aviation fell 1.62% to Rs 1,256.45 on BSE after India's aviation regulator reportedly grounded the company's eight A320Neo planes with faulty Pratt & Whitney engines.

 

2:03 PM

Market Check

 

S&P BSE Sensex	33,900.85		-0.05%
Nifty 50	10,464.45		0.41%
S&P BSE 200	4,544.55		0.29%
Nifty 500	9,190.15		0.75%
S&P BSE Mid-Cap	16,247.24		0.86%
S&P BSE Small-Cap	17,603.18		1.15%

2:01 PM

MRF Ltd gained for a third straight session today

MRF Ltd gained for a third straight session today. The stock is quoting at Rs 71,960, up 1.22% on the NSE. READ MORE