MARKETS ON MONDAY: Nifty ends above 10,700, IT stocks gain, RIL down 3%
Benchmark indices hit a near three-month high on Monday, as technology shares gained.
 "Markets, Stocks, BSE, NSE, Trade")
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10:03 AM
Antique Stock Broking on Bajaj Corp
We forecast Bajaj Corp's revenue to grow by 11% and 15% during FY19 and FY20e respectively driven by direct reach expansion, investment behind brands coupled with pick-up in rural demand. We value Bajaj Corp at 28x FY20e EPS, which is at a discount of ~30% to its peers. We maintain BUY with a target price of INR536.
We forecast Bajaj Corp's revenue to grow by 11% and 15% during FY19 and FY20e respectively driven by direct reach expansion, investment behind brands coupled with pick-up in rural demand. We value Bajaj Corp at 28x FY20e EPS, which is at a discount of ~30% to its peers. We maintain BUY with a target price of INR536.
10:01 AM
Jefferies on Idea Cellular
Idea reported muted 4Q18 with ARPU down 8% QoQ and sub. adds below expectation. Reported earnings had one-offs of Rs 4.4bn ex of which margins were down 240bps QoQ. With peers focusing aggressively on subscriber addition, we expect competitive intensity to remain high for another 12-18m. High leverage, integration woes and lack of ancillary business will lead to mkt share loss for Idea and recovery will also be gradual post FY20. Retain Underperform
Idea reported muted 4Q18 with ARPU down 8% QoQ and sub. adds below expectation. Reported earnings had one-offs of Rs 4.4bn ex of which margins were down 240bps QoQ. With peers focusing aggressively on subscriber addition, we expect competitive intensity to remain high for another 12-18m. High leverage, integration woes and lack of ancillary business will lead to mkt share loss for Idea and recovery will also be gradual post FY20. Retain Underperform
10:01 AM
Market Check
| S&P BSE Sensex | 35,125.18 | 0.44% | |
| Nifty 50 | 10,735.90 | 0.41% | |
| S&P BSE 200 | 4,718.66 | 0.45% | |
| Nifty 500 | 9,482.00 | 0.41% | |
| S&P BSE Mid-Cap | 16,963.35 | 0.27% | |
| S&P BSE Small-Cap | 18,349.64 | 0.60% | |
10:01 AM
IIFL on Reliance Industries (RIL)
Future outlook for refining and petrochemical segments look upbeat as the company ramps up off gas cracker and commences operations of petcoke gasifiers. We are raising estimates for retail and petrochemicals segment, while we maintain our forecasts for refining segment. Estimates for Jio have been trimmed to factor lower ARPUs. We retain our BUY rating with a two-year price target of Rs1,600 (Rs1,500 earlier). Top pick in the Oil & Gas sector.
Future outlook for refining and petrochemical segments look upbeat as the company ramps up off gas cracker and commences operations of petcoke gasifiers. We are raising estimates for retail and petrochemicals segment, while we maintain our forecasts for refining segment. Estimates for Jio have been trimmed to factor lower ARPUs. We retain our BUY rating with a two-year price target of Rs1,600 (Rs1,500 earlier). Top pick in the Oil & Gas sector.
10:00 AM
IIFL maintains BUY rating on Maruti Suzuki (MSIL)
MSIL is one of the best proxies to improving economic growth in India wherein consumer sentiment has been improving post demonetization and GST. Further, we believe that underlying demand growth for passenger car in India would remain strong as macro factors continue to improve.
MSIL, being capacity constrained, will be able to manage its production profile towards higher margin products resulting in FY18-20E earnings CAGR of 21%. We maintain our BUY rating on the stock with a revised one year target of Rs10,100 (earlier Rs10,800)
MSIL is one of the best proxies to improving economic growth in India wherein consumer sentiment has been improving post demonetization and GST. Further, we believe that underlying demand growth for passenger car in India would remain strong as macro factors continue to improve.
MSIL, being capacity constrained, will be able to manage its production profile towards higher margin products resulting in FY18-20E earnings CAGR of 21%. We maintain our BUY rating on the stock with a revised one year target of Rs10,100 (earlier Rs10,800)
9:58 AM
MARKET COMMENT
We feel with the result season reaching to its peak, the impact of good result will start diminishing as valuations are already at peak and fear of macro factors in addition to the result of Karnataka assembly election will dominate market. Hence, we may see a correction in the May series
(Source: Nirmal Bang report)
(Source: Nirmal Bang report)
9:47 AM
Lodha Developers IPO looks to defy poor scorecard of realty companies
Lodha Developers is aiming to defy the poor stock market scorecard of realty companies with its proposed Rs 55-billion initial public offering (IPO).
The Mumbai-based developer known for its tall residential buildings has filed its offer document with Securities and Exchange Board of India. Its IPO will be the first by a real estate company in eight years and only the sixth Rs10-billion-plus offering by a home developer. It is no secret that Dalal Street has been averse to real estate IPOs given their poor show amid stagnation in realty prices. READ MORE
9:33 AM
Interview of the day Earnings will take markets higher, probability of a 35% upside: Bhatnagar
Apart from global cues and corporate results, the markets are eyeing the outcome of the Karnataka Assembly polls to gauge political mood in the run-up to the 2019 general elections, VINEET BHATNAGAR, managing director and chief executive officer, Phillip Capital (India), tells that BJP loss in Karnataka will be a short-term sentiment dampener, from which markets should recover. CLICK HERE TO READ MORE
Apart from global cues and corporate results, the markets are eyeing the outcome of the Karnataka Assembly polls to gauge political mood in the run-up to the 2019 general elections, VINEET BHATNAGAR, managing director and chief executive officer, Phillip Capital (India), tells that BJP loss in Karnataka will be a short-term sentiment dampener, from which markets should recover. CLICK HERE TO READ MORE
VINEET BHATNAGAR Managing director and chief executive officer, Phillip Capital (India)
9:22 AM
EARNINGS IMPACT: RIL
9:18 AM
Sectoral Trend
9:17 AM
Top gainers and losers
9:16 AM
Markets at open
At 9:16 am, the S&P BSE Sensex was trading at 35,064, up 95 points while the broader Nifty50 index was ruling at 10,739, up 47 points
At 9:16 am, the S&P BSE Sensex was trading at 35,064, up 95 points while the broader Nifty50 index was ruling at 10,739, up 47 points
9:01 AM
Markets at pre-open
(Source: BSE)
| Index | Current | Pt. Change | % Change |
| S&P BSE SENSEX | 35,147.49 | +177.79 | +0.51 |
| S&P BSE SENSEX 50 | 11,222.57 | +33.94 | +0.30 |
| S&P BSE SENSEX Next 50 | 34,739.44 | +38.53 | +0.11 |
| S&P BSE 100 | 11,127.04 | +29.91 | +0.27 |
| S&P BSE Bharat 22 Index | 3,605.25 | +13.76 | +0.38 |
(Source: BSE)
8:51 AM
Street signs: Was Aditya Ghosh's exit from IndiGo expected?
On Friday evening, Interglobe Enterprises, the company that runs IndiGo, informed the stock exchanges that the company’s president Aditya Ghosh was quitting the firm. However, the company’s stock price had reacted to the possibility of this news earlier. On a day, when the Bombay Stock Exchange Sensitive Index, or Sensex, rose 250 points to close just short of 35,000 points, Interglobe shares fell 6.31 per cent. In the past month, the stock had risen by 16 per cent to Rs 1,498 – before taking the knock on Friday to close at Rs1,404 . Market players say there was some anticipation of change in management. READ MORE
On Friday evening, Interglobe Enterprises, the company that runs IndiGo, informed the stock exchanges that the company’s president Aditya Ghosh was quitting the firm. However, the company’s stock price had reacted to the possibility of this news earlier. On a day, when the Bombay Stock Exchange Sensitive Index, or Sensex, rose 250 points to close just short of 35,000 points, Interglobe shares fell 6.31 per cent. In the past month, the stock had risen by 16 per cent to Rs 1,498 – before taking the knock on Friday to close at Rs1,404 . Market players say there was some anticipation of change in management. READ MORE
8:47 AM
Commodity Picks: 30 April 2018
Sugar
Sugar is trading at Rs 2,700 per quintal at the Rajkot market. In the coming days, prices are expected to fall to Rs 2,650 per quintal. Distress sales by mills due to higher sugar output, and poor off-take from stockists and bulk consumer are keeping prices under pressure. Storage problems due to record output will further weigh on prices. READ MORE
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First Published: Apr 30 2018 | 3:30 PM IST
