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
9:19 AM
LONG SHORT STRATEGY: Pair Trade – Long M&M & Short Escorts
Pair Trade: Buy M&M May Future @ 804 (1 lot) & Sell Escort May Future @ 974 (1 lot) for cash neutral Buy M&M 334 shares for delivery
Entry price ratio: 0.81 to 0.83 ratio range
Target price ratio: 0.94 Stop loss price ratio: 0.78
Ratio: Current M&M/Escorts ratio stands at 0.82 (i.e.804 (M&M)/974 (Escorts))
Rationale:
Despite the price ratio between M&M and Escorts recently touching its lower band 2 (i.e mean - 2SD), the correlation is improving (21-day correlation at 94%), which indicates the spread could revert, hinting at an impending mean reversal. A favorable risk reward ratio could hence yield decent returns in the short run. We recommend a pair trade.
(Source: IIFL)
(Source: IIFL)
9:18 AM
Sectoral Trend
9:18 AM
Emkay Global on insurance companies
We have used appraisal value (AV) methodology to value the Life Insurance companies in India. We strongly believe that bank-promoted insurance companies have an advantage owing to access to their parent’s strong distribution network. We thus initiate coverage with a ‘BUY’ rating on SBIL at 3.3x FY20E enterprise value (EV) and target price (TP) of Rs894 (+24% upside) and MAXF at 1.6x FY20E EV and TP of Rs628 (+44% upside). We assign ‘ACCUMULATE’ rating on IPRU at 2.8x FY20E EV and TP of Rs453 (+19% upside). We assign ‘REDUCE’ rating on HDFCSL at 4.2x FY20E EV and TP of Rs444 (-10% downside), given the positives already priced in the stock
We have used appraisal value (AV) methodology to value the Life Insurance companies in India. We strongly believe that bank-promoted insurance companies have an advantage owing to access to their parent’s strong distribution network. We thus initiate coverage with a ‘BUY’ rating on SBIL at 3.3x FY20E enterprise value (EV) and target price (TP) of Rs894 (+24% upside) and MAXF at 1.6x FY20E EV and TP of Rs628 (+44% upside). We assign ‘ACCUMULATE’ rating on IPRU at 2.8x FY20E EV and TP of Rs453 (+19% upside). We assign ‘REDUCE’ rating on HDFCSL at 4.2x FY20E EV and TP of Rs444 (-10% downside), given the positives already priced in the stock
9:17 AM
Top Sensex gainers and losers
9:16 AM
Markets at Open
At 9:16 am, the S&P BSE Sensex was trading at 34,443, up 112 points while the broader Nifty50 was ruling at 10,567, up 41 points
At 9:16 am, the S&P BSE Sensex was trading at 34,443, up 112 points while the broader Nifty50 was ruling at 10,567, up 41 points
9:15 AM
INTERVIEW OF THE DAY We see a big correction if BJP loses in 2019: Elara Capital's Raj Bhatt
Political uncertainty is the biggest risk for the market, said Raj Bhatt, vice-chairman and CEO, Elara Capital. The stocks could tank more than what it did after the United Progressive Alliance-1 (UPA-1) came to power in 2004, as the market has not yet priced in a Bharatiya Janata Party (BJP) defeat, Bhatt told Samie Modak READ MORE
Political uncertainty is the biggest risk for the market, said Raj Bhatt, vice-chairman and CEO, Elara Capital. The stocks could tank more than what it did after the United Progressive Alliance-1 (UPA-1) came to power in 2004, as the market has not yet priced in a Bharatiya Janata Party (BJP) defeat, Bhatt told Samie Modak READ MORE
Raj Bhatt
9:01 AM
Markets at pre-open
(Source: BSE)
| Index | Current | Pt. Change | % Change |
| S&P BSE SENSEX | 34,431.52 | +99.84 | +0.29 |
| S&P BSE SENSEX 50 | 11,022.71 | -16.44 | -0.15 |
| S&P BSE SENSEX Next 50 | 34,330.60 | -72.15 | -0.21 |
| S&P BSE 100 | 10,939.81 | -17.37 | -0.16 |
| S&P BSE Bharat 22 Index | 3,585.96 | +8.08 | +0.23 |
(Source: BSE)
8:57 AM
On the whole, the Reserve Bank of India Monetary Policy Review and other macro-economic data presents a picture of an improving economy. Inflation remained benign in March. The Consumer Price Index was up 4.3 per cent year-on-year.
The automobile sector also has a very long and complex value chain, starting with mining at one end and ending with high-end marketing and advertising services. It is also a barometer of consumption demand. The Q4 results in the auto industry could offer signals about trends across the entire economy. READ MORE
Automobile sector's Q4 show could offer signals about entire economy
On the whole, the Reserve Bank of India Monetary Policy Review and other macro-economic data presents a picture of an improving economy. Inflation remained benign in March. The Consumer Price Index was up 4.3 per cent year-on-year.
The automobile sector also has a very long and complex value chain, starting with mining at one end and ending with high-end marketing and advertising services. It is also a barometer of consumption demand. The Q4 results in the auto industry could offer signals about trends across the entire economy. READ MORE
8:53 AM
EARNINGS Mindtree's Q4 net profit up 87.5%
Global technology services company Mindtree on Wednesday reported a rise of 87.5 per cent in its consolidated net profit for the fourth quarter to Rs 182.2 crore.
"We ended the year on a strong note, and seeing that momentum creating a healthy start to our new fiscal year. It's especially heartening that our client satisfaction ratings reached an all-time high, setting the benchmark in our industry," said Rostow Ravanan, CEO and Managing Director, Mindtree.READ MORE
8:52 AM
EARNINGS ACC Q1 consolidated net profit up 18%
Cement and ready mixed concrete manufacturer ACC on Wednesday reported an increase of 18.48 per cent in its consolidated net profit for the quarter ended March 31, 2018.
According to the company, its net profit during the quarter under review rose to Rs 250 crore from Rs 211 crore reported for the corresponding period of the previous fiscal. READ MORE
8:49 AM
Oil rises 2% as Saudi Arabia aims at $100/bbl, US stockpiles fall
Oil extended gains on Wednesday, rising more than $1 on a reported decline in US crude inventories and after sources signalled top exporter Saudi Arabia wants to see the crude price closer to $100 a barrel.
Top oil exporter Saudi Arabia would be happy for crude to rise to $80 or even $100, three industry sources said, a sign Riyadh will seek no changes to a supply-cutting deal even though the agreement's original target is within sight. READ MORE
8:47 AM
TCS Q4FY18 result preview: Here's what brokerages expect
Infosys surprised the Street by lowering its EBIT guidance for FY19 while announcing its March quarter (Q4FY18) numbers on Friday. Will TCS follow suit? The Tata Group company is likely to announce its results for the March quarter and the full financial year 2017-18 (FY18) on April 19.
On a year-to-date basis, the stock has rallied around 17% and has outperformed the Nifty IT index that gained over 12% during this period. By comparison, the Nifty50 index is down 0.1% YTD, ACE Equity data showed. READ MORE
8:45 AM
Today's picks: From HPCL to Tech Mahindra, stocks to watch on Thursday
HPCL
Current price: Rs 319.5
Target price: Rs 314
Keep a stop at Rs 323 and go short. Add to the position between Rs 315 and Rs 316. Book profits at Rs 314. READ MORE
8:43 AM
Report on Federal Bank by Reliance Securities
Reco: Buy
The Bank is expected to deliver further improvement in operational performance led by improving loan book growth and improving assets liability mix. Advances grew by 5.3% QoQ to Rs850bn in 3QFY18, as SME, Wholesale and Retail (including Agri) book grew by 13.3%, 4.4% and 6.85% QoQ respectively.
Further, continued moderation in SMA-2 balance clearly suggests fresh slippage will show declining trend in FY19. Notably, the Bank is gradually coming out of the scenario marked with higher provisioning and continued stress on asset quality for last few quarters. Management expects credit cost to remain in comfortable level of 60-70bps in FY19.
8:42 AM
Nifty has shown signs of exhaustion near the 10600 level which was anticipated and the chances of a downward movement in the coming days cannot be ruled out. BankNifty has turned down its trend after 15 days and the sentiment has turned little bit shaky. However, the support for the day is seen at 10470 while the resistance would be at 10570 levels. READ MORE
Nifty outlook and top trading ideas from Prabhudas Lilladher for today
Nifty has shown signs of exhaustion near the 10600 level which was anticipated and the chances of a downward movement in the coming days cannot be ruled out. BankNifty has turned down its trend after 15 days and the sentiment has turned little bit shaky. However, the support for the day is seen at 10470 while the resistance would be at 10570 levels. READ MORE
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First Published: Apr 19 2018 | 3:30 PM IST
