MARKETS ON THURSDAY: Indices end higher, Sensex up 96 points; metals rise
Benchmark indices ended higher on Thursday on the back of gains in metal stocks
 "Bonds, Stock markets, Shares, Trading")
Bonds, Stock markets, Shares, Trading
10:50 AM
Steel firms likely to see healthy growth in volumes, profitability in FY19
Steel companies are in the news for strong production numbers. In FY18, JSW Steel posted a 5 per cent increase in production and Tata Steel India (domestic operations) reported its highest ever output at 12.48 million tonnes (mt), an increase of 7 per cent.
Analysts expect to see healthy growth in volumes and profitability in FY19, too. Shares of Tata Steel and JSW Steel are up 7-9 per cent, while Steel Authority of India (SAIL) and Jindal Steel and Power (JSPL) have gained 12-17 per cent from their March-end lows. READ MORE
10:38 AM
Kotak Institutional Equities on HDFC Standard Life
High volume growth led by ULIPs, significant increase in share of protection business and an improving performance on mortality and persistency front led to solid (23.1%) VNB margins and (21.5%) operating RoEV during FY2018. Near-term moderation in volumes from ULIPs will reduce new business strain and provide an upside to earnings. While its performance remains best in class, rich valuations constrain our positive view on HDFC Life’s business. Post the recent rally, we revise rating to SELL from REDUCE with target price of Rs 405 (up from Rs 385).
10:36 AM
Investec Securities on Mindtree results
Mindtree reported a robust 5.5% QoQ growth in USD revenues (vs est of 4.6% QoQ) and 4.5% QoQ in constant currency (vs est of 4.1% QoQ). EBIT% also improved by 146bps QoQ. Management guided to FY19E seeing better revenue growth and margins than FY18. That said, this has limited impact on our FY19E and FY20E EPS estimates considering non-recurrence of Rs916m of provision write-backs (16% of PAT) and increase in effective tax rates (ETR) from 23% to 27-28%. Reiterate HOLD with TP of Rs935 (Rs695 earlier) based on a DCF implying a target P/E multiple of 18.5x (14x earlier).
Mindtree reported a robust 5.5% QoQ growth in USD revenues (vs est of 4.6% QoQ) and 4.5% QoQ in constant currency (vs est of 4.1% QoQ). EBIT% also improved by 146bps QoQ. Management guided to FY19E seeing better revenue growth and margins than FY18. That said, this has limited impact on our FY19E and FY20E EPS estimates considering non-recurrence of Rs916m of provision write-backs (16% of PAT) and increase in effective tax rates (ETR) from 23% to 27-28%. Reiterate HOLD with TP of Rs935 (Rs695 earlier) based on a DCF implying a target P/E multiple of 18.5x (14x earlier).
10:32 AM
Oil marketing companies slip 2% to 4%, HPCL, BPCL hit 52-week lows
Shares of oil marketing companies (OMCs) were trading lower in the range of 2% to 4% on the BSE in early morning trade on Thursday after global crude oil prices hit 3-year high on Wednesday.
Hindustan Petroleum Corporation or HPCL (down 4% at Rs 308), Bharat Petroleum Corporation or BPCL (down 3.7% at Rs 390) and Mangalore Refinery & Petrochemicals or MRPL (down 3% at Rs 104) have hit their respective 52-week lows on the BSE in intra-day trade today. READ MORE
10:31 AM
Upcoming Corporate Results / Board Meets (Source: BS Research Bureau)
| IndusInd Bank | 19-04-18 |
| TCS | 19-04-18 |
| HDFC Bank | 21-04-18 |
| Bharat Fin Incl | 23-04-18 |
| Bharti Infratel | 23-04-18 |
| Chola Inv | 23-04-18 |
| HDFC Bank | 23-04-18 |
| ICICI Prud Life | 24-04-18 |
| IDFC Bank | 24-04-18 |
| M & M Fin | 25-04-18 |
| Wipro | 25-04-18 |
| Axis Bank | 26-04-18 |
| Biocon | 26-04-18 |
| Tata Elxsi | 26-04-18 |
| Yes Bank | 26-04-18 |
| Axis Bank | 27-04-18 |
| IDFC | 27-04-18 |
| RBL Bank | 27-04-18 |
| Can Fin Home | 28-04-18 |
| Shree Cement | 28-04-18 |
| Containr Crp | 30-04-18 |
| HDFC | 30-04-18 |
| Kotak Mah Bank | 30-04-18 |
| Dabur India | 01-05-18 |
| ICICI Bank | 07-05-18 |
| Godrej Cons | 08-05-18 |
| Nestle India | 10-05-18 |
10:27 AM
CRUDE OIL IMPACT Oil marketing companies slip 2% to 4%, HPCL, BPCL hit 52-week lows
Shares of oil marketing companies (OMCs) were trading lower in the range of 2% to 4% on the BSE in early morning trade on Thursday after global crude oil prices hit 3-year high on Wednesday.
Hindustan Petroleum Corporation or HPCL (down 4% at Rs 308), Bharat Petroleum Corporation or BPCL (down 3.7% at Rs 390) and Mangalore Refinery & Petrochemicals or MRPL (down 3% at Rs 104) have hit their respective 52-week lows on the BSE in intra-day trade today READ MORE
Hindustan Petroleum Corporation or HPCL (down 4% at Rs 308), Bharat Petroleum Corporation or BPCL (down 3.7% at Rs 390) and Mangalore Refinery & Petrochemicals or MRPL (down 3% at Rs 104) have hit their respective 52-week lows on the BSE in intra-day trade today READ MORE
10:16 AM
ICICI Bank chairman meets MF heads over succession plan, if Kochhar quits
With investments of over Rs 300 billion riding on the stock, heads of mutual fund (MF) houses met ICICI Bank Chairman M K Sharma over the succession plan at the private sector lender. It is learnt that Sharma met top MF executives to provide clarifications on the Videocon loan controversy.
Sources said the Rs 21-trillion MF industry raised questions over the bank’s “back-up” or succession plan in case Chief Executive Officer and Managing Director (CEO & MD) Chanda Kochhar steps down. READ MORE
10:04 AM
Market Check
| S&P BSE Sensex | 34,410.79 | 0.23% | |
| Nifty 50 | 10,560.25 | 0.32% | |
| S&P BSE 200 | 4,644.17 | 0.30% | |
| Nifty 500 | 9,340.85 | 0.31% | |
| S&P BSE Mid-Cap | 16,816.99 | 0.29% | |
| S&P BSE Small-Cap | 18,116.85 | 0.28% | |
9:47 AM
Steel firms likely to see healthy growth in volumes, profitability in FY19
Steel companies are in the news for strong production numbers. In FY18, JSW Steel posted a 5 per cent increase in production and Tata Steel India (domestic operations) reported its highest ever output at 12.48 million tonnes (mt), an increase of 7 per cent.
Analysts expect to see healthy growth in volumes and profitability in FY19, too. Shares of Tata Steel and JSW Steel are up 7-9 per cent, while Steel Authority of India (SAIL) and Jindal Steel and Power (JSPL) have gained 12-17 per cent from their March-end lows. READ MORE
9:28 AM
SECTOR WATCH: Pharma
We initiate coverage with MNC pharma companies which we believe are “pure domestic players” in the pharma basket. These companies will continue to enjoy premium given 1) stability in the business, 2) high ROCEs, 3) strong balance-sheet, and 4) high dividend. We like Abbott India (BUY, 17% upside potential, target PER of 26x+Rs954/sh), Merck (ACCUMULATE, 5% upside potential, target PER of 19x+Rs298/sh) and Sanofi India (ACCUMULATE, 12% upside potential, target PER of 30x+Rs568/sh). We are cautious towards Glaxo Pharma (HOLD, 5% downside potential, target PER of 42.5x+Rs62/sh).
(Source: IDBI Capital)
(Source: IDBI Capital)
9:27 AM
VIL has seen time correction and remained flat with 6M/12M returns of -4%/5% in line with our hold stance. We like the inherently strong business model of VIL which is well placed to benefit from i) consolidation in domestic steel industry leading to higher market share for top few producers & VIL’s key clients like Tata Steel & JSW Steel, ii) recovery in domestic steel demand which would pave way for strong volume growth and iii) entry into new segments (cement) coupled with operational savings through productivity enhancement.
VIL’s 5Y average P/E stands at ~20x and we value VIL on 22x P/E (10% premium to 5Y average). We value the stock at CY19E EPS and ascribe 22x P/E to arrive at a fair value of Rs1500. Upgrade to Buy. Key risks are extreme stress in the steel industry and higher raw material costs
(Source: Centrum Broking)
STOCK IDEA Vesuvius India Limited (VIL)
Rating: Buy; Target Price: Rs1,500
VIL’s 5Y average P/E stands at ~20x and we value VIL on 22x P/E (10% premium to 5Y average). We value the stock at CY19E EPS and ascribe 22x P/E to arrive at a fair value of Rs1500. Upgrade to Buy. Key risks are extreme stress in the steel industry and higher raw material costs
(Source: Centrum Broking)
9:25 AM
Nifty Metal index up over 1%: Top gainers in the pack
| COMPANY | LATEST | PREV CLOSE | GAIN() | GAIN(%) | VOLUME |
|---|---|---|---|---|---|
| NATL. ALUMINIUM | 83.90 | 80.15 | 3.75 | 4.68 | 175226 |
| HINDALCO INDS. | 250.00 | 242.80 | 7.20 | 2.97 | 88989 |
| HIND.COPPER | 72.90 | 71.40 | 1.50 | 2.10 | 29120 |
| VEDANTA | 296.75 | 291.10 | 5.65 | 1.94 | 93243 |
| HIND.ZINC | 328.10 | 323.40 | 4.70 | 1.45 | 16031 |
9:24 AM
MARKET COMMENT Amar Ambani, head of research, IIFL
The market finally saw a correction after rallying for 9 consecutive sessions. Indices tumbled suddenly after a flat start due to a sharp fall seen in private and PSU banks. In its Fiscal Monitor report, the International Monetary Fund said that in India, 'full and smooth implementation of the new goods and services tax is necessary to avoid tax revenue underperformance resulting in cuts to capital expenditure.
US shares ended mixed with the S&P500 closing in the green, while the Dow fell. Asian markets are higher for now. Wall Street didn’t react much to the Beige Book report, which stated that economic activity remained at “a modest to moderate pace” in March and early April. The outlook is a flat start with a positive bias. TCS, IndusInd Bank and Reliance Power are set to announce their numbers today
The market finally saw a correction after rallying for 9 consecutive sessions. Indices tumbled suddenly after a flat start due to a sharp fall seen in private and PSU banks. In its Fiscal Monitor report, the International Monetary Fund said that in India, 'full and smooth implementation of the new goods and services tax is necessary to avoid tax revenue underperformance resulting in cuts to capital expenditure.
US shares ended mixed with the S&P500 closing in the green, while the Dow fell. Asian markets are higher for now. Wall Street didn’t react much to the Beige Book report, which stated that economic activity remained at “a modest to moderate pace” in March and early April. The outlook is a flat start with a positive bias. TCS, IndusInd Bank and Reliance Power are set to announce their numbers today
9:23 AM
Sector Watch: Aviation
(Source: Nirmal Bang)
| Market share |
Mar-18
|
Feb-18
|
Mar-17
|
| Air India |
13.4%
|
13.2%
|
13.0%
|
| Jet Airways |
16.6%
|
16.8%
|
18.0%
|
| Spicejet |
12.7%
|
12.4%
|
13.2%
|
| Go Air |
9.0%
|
9.5%
|
8.9%
|
| Indigo |
39.5%
|
39.9%
|
39.9%
|
| Others |
8.7%
|
8.1%
|
7.0%
|
(Source: Nirmal Bang)
9:21 AM
News Rover
(Source: IIFL report)
· Infibeam received online marketplace contract from NSDC
· Infosys clarified it has not received any anonymous whistleblower complaint
· NMDC cuts prices of lump ore and fines by Rs 100 each to Rs 2,900 per tonne and Rs 2,560 per tonne with effect from April 18
· Sun Pharmaceuticals unit hiked stake in Ranbaxy Malaysia by 4.93%
· GE Shipping takes delivery of second-hand very large gas carrier; committed to buy one second-hand medium gas carrier
· Bharti Airtel announced 30GB free data for users upgrading to 4G
· ABG Shipyard IRP invited fresh bids for the company
· Container Corp to consider stock split on April 30
· Jain Irrigation board approved plan to raise Rs 260 crore loan from World Bank arm
· Magma Fincorp raised Rs 500 crore at a price of Rs 155 per share through a QIP
· Mercator says coal mining operations in Indonesia have attained near optimum levels
· Dynamatic Technologies signed MoU with France’s Daher Aerospace
· Mishra Dhatu Nigam signed two pacts in DefExpo India 2018
· GEE to enter into pact with Avion Investments for development of IT Pak Project at Thane Plant
· Dynemic Products Ltd. gets closure notice for Gujarat unit from Gujarat Pollution Control Board
· Bharat Dynamics signed licensing agreement with DRDO for Astra MK-1 Weapon System
· Lemon Tree Hotels signed three management contract for a hotel each in Rishikesh, Neelkanth and Mussoorie
· Trigyn Technologies received three IT services contract in U.S
(Source: IIFL report)
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First Published: Apr 19 2018 | 3:30 PM IST
