F&O expiry: Nifty ends at 10,589, PSU banks fall; rupee hits record low
Among sectoral indices, the Nifty PSU Bank index ended nearly 2% lower led by a fall in the shares of Punjab National Bank, Bank of India and Syndicate Bank.
 "Markets, Stocks, BSE, NSE, Trade")
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11:15 AM
Shoppers' Stop set for ratings upgrade on back of profitable private labels
After two years of muted growth in same-store sales (SSS), Shoppers’ Stop is expected to see a revival in fortunes. The year 2017-18 was challenging, with rollout of the goods and services tax (GST), store renovations and increased competitive intensity.
In FY19, the company is confident of achieving mid to high single digit SSS growth (this measures the increase in revenue from stores in operations for at least a year) and 100 basis point margin improvement. SSS growth was two to three per cent in the past two financial years; the margin was 5.7 per cent in FY18. READ MORE
11:00 AM
NCLAT stays order on appointment of govt nominated directors to 63 Moons
Staying a decision by the National Company Law Tribunal (NCLT), the National Company Law Appellate Tribunal (NCLAT) has ruled that government representatives on the board of 63 Moons Technologies Ltd (earlier FTIL) will continue to have veto powers on the company’s financial decisions. This has given the ministry of corporate affairs interim relief. READ MORE
10:46 AM
Shares of small companies witness fresh bout of selling on Wednesday
Shares of small companies witnessed a fresh bout of selling on Wednesday with the NSE Nifty Smallcap 100 index dropping 2.3 per cent even as the benchmark Nifty50 declined 0.9 per cent. The index of companies, with market capitalisation between Rs10 billion and Rs70 billion, has fallen more than a per cent in 33 of the 121 trading sessions this year — 28 per cent of the time. READ MORE
10:35 AM
Edelweiss Research on Somany Ceramics
Somany Ceramics’ (Somany) new CFO, Mr. Saikat Mukhopadhyay, pointed out during our interaction that industry demand remains weak (singledigit) and pricing continues to be under pressure from the unorganised sector due to lack of strict surveillance following the E-way bill implementation.
Management is confident of posting low double-digit volume growth in FY19 due to a low base; however, margin expansion will be governed by the improved product mix and rising contribution of the high-margin bathware segment.
Tile margins are likely to remain tight due to greater gas cost and stiff competition, which puts our FY19E at risk. That said, we maintain ‘BUY’ with target price of Rs 822 (27x FY20E) based on our thesis that a shift in favour of organised players would benefit Somany.
Management is confident of posting low double-digit volume growth in FY19 due to a low base; however, margin expansion will be governed by the improved product mix and rising contribution of the high-margin bathware segment.
Tile margins are likely to remain tight due to greater gas cost and stiff competition, which puts our FY19E at risk. That said, we maintain ‘BUY’ with target price of Rs 822 (27x FY20E) based on our thesis that a shift in favour of organised players would benefit Somany.
10:32 AM
Sebi panel to issue norms on handling unpublished price-sensitive info
The Securities and Exchange Board of India (Sebi)-appointed committee on fair market conduct will submit its report in the next two weeks. It will have a special chapter on handling of price-sensitive information, said sources. READ MORE
10:16 AM
Infosys hits new high; stock surges 25% so far in 2018
Shares of Infosys hit a new high of Rs 1,298 per share, up 2% on the BSE in early morning trade in an otherwise flat market. With Rs 2.83-trillion market capitalisation, Infosys is 6% or Rs 164 billion away to touch Rs 3-trillion mark. READ MORE
10:00 AM
Market Check
(Source: BSE)
| Index | Current | Pt. Change | % Change |
| S&P BSE SENSEX | 35,211.43 | -5.68 | -0.02 |
| S&P BSE SENSEX 50 | 11,171.59 | -10.28 | -0.09 |
| S&P BSE SENSEX Next 50 | 31,733.60 | -76.83 | -0.24 |
| S&P BSE 100 | 10,933.19 | -12.55 | -0.11 |
| S&P BSE Bharat 22 Index | 3,249.93 | -31.34 | -0.96 |
(Source: BSE)
9:56 AM
Rupee breaches 69/dollar level for first time
The rupee fell to an all-time low against the U.S. dollar in early trade on Thursday, tracking Asian peers with weakening macro-economic fundamentals on the domestic front also weighing on the currency.
The partially convertible rupee was trading at a life low of 69.03/04 against the dollar. The unit closed at 68.65/66 per dollar on Wednesday. The rupee had touched its previous record low of 68.8650 per dollar on November 24, 2016. READ MORE
Rupee
9:51 AM
Nirmal Bang Institutional Desk on RBL Bank
We recently met Mr Jaideep Iyer, Head of Finance, Strategy and Investor Relations and Mr Ramesh Ramanathan, SVP, Investor Relations at RBL Bank (RBL), and gleaned incremental insight into the performance and outlook for RBL. (Also, see Detailed Management Meeting Takeways on page 2).
Given its FY19E/20E RoE profile of 13.1%/14.7% (offering RoE delta) and long-term scalability potential, RBL remains one of our top picks, currently trading at 2.5x FY20E P/BV. See our Initiating Coverage Report for full thesis. Find recent Result Note here. We retain Buy rating on RBL with a target price to Rs628, valuing the stock at 2.8x FY20E P/BV.
We recently met Mr Jaideep Iyer, Head of Finance, Strategy and Investor Relations and Mr Ramesh Ramanathan, SVP, Investor Relations at RBL Bank (RBL), and gleaned incremental insight into the performance and outlook for RBL. (Also, see Detailed Management Meeting Takeways on page 2).
Given its FY19E/20E RoE profile of 13.1%/14.7% (offering RoE delta) and long-term scalability potential, RBL remains one of our top picks, currently trading at 2.5x FY20E P/BV. See our Initiating Coverage Report for full thesis. Find recent Result Note here. We retain Buy rating on RBL with a target price to Rs628, valuing the stock at 2.8x FY20E P/BV.
9:50 AM
Edelweiss Research on M&M
We believe M&M is taking the right steps to address key investor concerns relating to capital allocation and UVs. We maintain ‘BUY/SO’ with a SoTP-based target price of Rs 1,040 (14x FY20E core EPS, Rs 115 cash/share and Rs 312 for listed subsidiaries). At CMP, the stock trades at FY19/20E PER of 16x/13.3x (ex subsidiaries)
We believe M&M is taking the right steps to address key investor concerns relating to capital allocation and UVs. We maintain ‘BUY/SO’ with a SoTP-based target price of Rs 1,040 (14x FY20E core EPS, Rs 115 cash/share and Rs 312 for listed subsidiaries). At CMP, the stock trades at FY19/20E PER of 16x/13.3x (ex subsidiaries)
9:38 AM
Derivatives Strategy: Nifty could fall further
The Nifty continues to be range bound but background signals suggest it is now more likely to head down, rather than up. The VIX is rising, indicating increasing nervousness among traders. Breadth is negative with advances outnumbered by declines. Volumes are middling to low. READ MORE
9:31 AM
MOTILAL OSWAL RESEARCH ON RUPEE
Rupee fell to the lowest level in 18-months against the US dollar following sharp surge in global crude oil prices and strength in the dollar against its major crosses. Post the OPEC announcement, last week, crude prices have been finding support on lower levels and subsequently keeping the currency under pressure.
Weakness in the Chinese Yuan and other emerging market currencies including the rupee are under pressure against the US dollar. On the domestic front, market participants will be keeping an eye on fiscal deficit number; lower-than-expected number could support the rupee that has been under pressure. Today, USDINR pair is expected to open higher at 69.05 and expected to quote in the range of 68.70 and 69.20
Rupee fell to the lowest level in 18-months against the US dollar following sharp surge in global crude oil prices and strength in the dollar against its major crosses. Post the OPEC announcement, last week, crude prices have been finding support on lower levels and subsequently keeping the currency under pressure.
Weakness in the Chinese Yuan and other emerging market currencies including the rupee are under pressure against the US dollar. On the domestic front, market participants will be keeping an eye on fiscal deficit number; lower-than-expected number could support the rupee that has been under pressure. Today, USDINR pair is expected to open higher at 69.05 and expected to quote in the range of 68.70 and 69.20
Illustration: Ajay Mohanty
9:26 AM
ALERT Rupee breaches 69 mark against the dollar
9:20 AM
Nifty sectoral trend
9:18 AM
BSE Sensex heatmap
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First Published: Jun 28 2018 | 8:15 AM IST
