Nifty ends March F&O expiry at 10,113, up a little over 10% in FY18

All that happened in the market today

1:32 PM

Index watch

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	32,988.90	-185.49	-0.56
S&P BSE SENSEX 50	10,599.21	-51.98	-0.49
S&P BSE SENSEX Next 50	32,913.00	-141.00	-0.43
S&P BSE 100	10,514.59	-50.50	-0.48
S&P BSE Bharat 22 Index	3,456.02	-23.49	-0.68

(Source: BSE)

1:31 PM

Sharekhan on Bajaj Holdings and Investment Limited (BHIL)

BHIL’s stock price has corrected sharply by around 14% in the past 3 months from its highs of Rs 3,036. Concerns around associate company Bajaj Auto's (BAL’s) performance has been the key reason for the decline. Increased competitive intensity in the two wheeler space coupled with margin pressures would impact BAL’s performance.

Consequently, we have downgraded our recommendation on BAL to HOLD. We believe BHIL’s stock correction adequately factors in the earnings slowdown for BAL. However, strong traction across BFS’s business is expected to sustain / improve further and this provides ample visibility for BHIL’s growth. At CMP, BHIL

offers scope for ~30% gains. We have retained Buy rating on the stock.

1:21 PM

At Rs 805 bn, fundraising via IPOs in FY18 double the previous best

Fund raising through initial public offers (IPOs) has hit an all-time high during the financial year 2017-18 (FY18). Thus far in FY18, 43 companies have raised a combined Rs 805 billion through IPOs, surpassing its previous high recorded nearly a decade ago. Back in FY08, 84 companies had raised Rs 413 billion via IPOs, data sourced from PRIME Database suggests. READ MORE

1:06 PM

Persistent Systems falls 11% on weak March quarter outlook

Persistent Systems has dipped 11% to Rs 697 on the BSE after the information technology (IT) company said it is expecting a decline in IP revenues in fourth quarter of current fiscal (Q4FY18), which will impact revenue and EBIDTA (earnings before interest, taxes, depreciation, and amortization) margin for the quarter. READ MORE

12:54 PM

RBI policy preview: Morgan Stanley expects status quo
 

With growth tracking in line and inflation tracking slightly below the RBI’s projections, we don’t expect any changes to policy rates and stance at the upcoming meeting. Confidence on the growth outlook (and its impact on inflation) will be key to assess how the MPC’s stance will evolve thereafter.

Looking at the details of the inflation data, volatile food prices continued to drive the swings in headline inflation while the core measures – in particular inflation ex-food, fuel and housing (core-core) inflation have held steady at 4.3% in the previous two months. In a nutshell, the incoming data on inflation are unlikely to give rise to any fresh concerns on the upside as regards the inflation outlook.

(Source: Morgan Stanley report)

RBI logo

12:51 PM

MARKET COMMENT Sameet Chavan, chief analyst for technical and derivatives, Angel Broking

Last two day’s move has caught so many traders on the wrong foot that went short after breaking the psychological five digit mark of 10,000.  Mostly, this is how market behaves when the consensus stat moving in the same direction. For this expiry, we were seeing 9950 – 9900 as a strong support zone, as a couple of key Fibonacci ratios were converging around it.

That said, the move does not change the broader picture for the markets and we expect the market to face some selling pressure if Nifty rebounds in the range of 10250 – 10350. Today being an expiry day, 10200 – 10230 would be seen as a strong hurdle for the index. A failure to surpass this would result in some profit booking towards 10160 – 10130 levels

12:48 PM

TOP CONTRIBUTORS TO SENSEX TODAY

COMPANY	LATEST	CHG(RS)	CHG(%)	CONTRIBUTION (POINTS)
MARUTI SUZUKI	9039.90	186.25	2.10	28.22
TCS	2865.40	23.55	0.83	13.67
HERO MOTOCORP	3518.50	52.65	1.52	7.79
WIPRO	278.35	5.80	2.13	4.41
COAL INDIA	276.75	1.35	0.49	1.94
TATA MOTORS	331.75	0.70	0.21	1.54

12:45 PM

CD Equisearch on mayur Uniquoters

The stock currently trades at 23.3x FY18e EPS of Rs 20.46 and 18.7x FY19e EPS of Rs 25.50. With a current capacity utilization of 85%, significant increase in capacity utilization is anticipated on the backdrop of revival of demand in domestic economy, increasing population and rising disposable income and its potential admittance into the European markets.

The company is confident of getting approvals for orders by Mercedes Benz in FY19 and has been modifying its process to grab such approvals. This would doubtlessly accentuate greater exposure to other prospective customers in the European market. However, product obsolesce as a result of continuous technological innovation and government regulations pertaining to the harmful environmental effects of processing PVC may serve as major restraints for the market.

In view of vigorous recovery of sales in Q2 and Q3, we revise our FY19e EPS by 14.9% and assign ‘accumulate’ rating on the stock with a revised target of Rs 561 (previous target: Rs 444) based on 22x FY19e EPS (peg ratio: 1) over a period of 9-12 months

12:31 PM

Kwality hits 32-month low; stock tanks 27% in two days

Shares of dairy firm Kwality continued to be under pressure for the second day in a row, falling to 32-month low of Rs 60.35, down 20% on BSE. The stock is trading at its lowest level since July 6, 2015. In past two trading sessions the market value of Kwality shares tanked 27% from Rs 82.15 on Monday, March 26, 2018, despite the company clarifying that there is no strategically significant development within the organisation and business. On Tuesday, the stock slipped 20% to Rs 65.65 in intra-day trade, settled 8% lower at Rs 75.40 on the BSE. READ MORE

12:16 PM

Government's inflation bonds 2.0 pique interest among banks, investors

The government’s plan to reintroduce inflation-indexed bonds is being seen with some interest as previous issuances were not successful for a wide variety of reasons.
 

The most recent case in hand was the wholesale price index (WPI)-based bonds that failed miserably in the market after inflation rapidly started sliding, and the Reserve Bank of India (RBI) adopted consumer price index (CPI)-based inflation for its policy formulation. The government had to buy back Rs 65 billion of bonds two years down the line after they were issued in 2013. The original maturity of the bonds was 10 years. READ MORE

12:00 PM

Market Check

S&P BSE Sensex	33,038.55		-0.41%
Nifty 50	10,140.45		-0.43%
S&P BSE 200	4,448.27		-0.26%
Nifty 500	8,945.75		-0.36%
S&P BSE Mid-Cap	16,028.08		-0.13%
S&P BSE Small-Cap	17,082.76		-0.41%

11:45 AM

Top BSE500 losers

COMPANY	PRICE()	CHG()	CHG(%)	VOLUME
KWALITY	60.35	-15.05	-19.96	113229
DELTA CORP	266.60	-31.65	-10.61	785460
PERSISTENT SYS	700.85	-81.80	-10.45	94070
FORTIS HEALTH.	131.50	-10.95	-7.69	3932890
GLAXOSMITH C H L	6295.00	-356.65	-5.36	2697

11:29 AM

Govt's lower-than-expected borrowing will be positive for PSBs and NBFCs

The government’s lower-than-expected borrowing programme for the first half of FY19 (H1FY19, or April-September 2018) will be positive for public sector banks (PSBs) and non-banking finance companies (NBFCs). Not surprising then, the Nifty PSU Bank Index surged about 3 per cent on Tuesday, while shares of some NBFCs were up over 1 per cent.

 

Investors reacted positively on account of expected benefits for these companies owing to a 29-basis point-(bps) decline in 10-year government bond (gilts) yields at 7.33 per cent. READ MORE

11:08 AM

Hindalco, Vedanta trading at discount; firm outlook for base metal prices

Non-ferrous majors such as Vedanta and Hindalco have been in focus after tariff hike talks by the US on aluminum, and consequently, the volatility in global base metal prices. Correction in the markets added to the woes. The share prices of Vedanta and Hindalco have dropped 19-23 per cent from their highs in January. READ MORE

10:55 AM

Fortis Healthcare falls on board nod to demerge hospital biz into Manipal

Fortis Healthcare has dipped 10% to Rs 128, extending its Tuesday’s 4% decline on the BSE, after the company said that it has decided to demerge hospital business into Manipal Hospitals, promoted by Dr Ranjan Pai and backed by TPG.
 

Fortis Healthcare shareholders will receive 10.83 shares of Manipal Hospitals for every 100 shares held in the company. READ MORE