MARKETS ON WEDNESDAY: Indices end flat, Nifty holds 10,400; OMCs fall

All that happened in the markets on Wednesday

12:45 PM

Can Fin stock: Benefits of RERA, subsidy scheme should help credit growth

 

The Homes (CFH) stock took a hit following Canara Bank’s decision to call off a divestment process of its entire stake in the housing finance arm. As a part of its plans to sell non-core assets to improve the balance sheet, Canara Bank had decided to sell its entire 30.4 per cent stake in CFH, which buoyed investor sentiment despite the latter’s tepid performance, in terms of credit growth, during the December 2017 quarter (Q3). READ MORE

12:38 PM

Oil slip for India? Eye on west coast refinery, Saudi aiming for $80 price

Oil’s rally to $70 a barrel is threatening to clip India’s economic wings at a time when Saudi Arabia is looking to join a $30 billion refinery project in the world’s fastest growing market. India wants to see prices at about $50 a barrel in order to manage its finances better, Oil Minister Dharmendra Pradhan said in an interview. CLICK HERE FOR MORE

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12:16 PM

Q4 earnings preview: How key sectors of the economy may have performed

The results season for the fourth quarter and the full fiscal year is about to begin in the second week of April. While the actual numbers are awaited, it will be interesting to see how these numbers could pan out sector-wise. READ MORE

12:01 PM

Market Check

 

S&P BSE Sensex	33,854.65		-0.08%
Nifty 50	10,383.15		-0.18%
S&P BSE 200	4,568.94		-0.17%
Nifty 500	9,203.65		-0.17%
S&P BSE Mid-Cap	16,602.98		-0.30%
S&P BSE Small-Cap	17,943.12		-0.03%

11:46 AM

IT stocks outrun markets for three consecutive quarters; midcaps shine

The Nifty IT index has outperformed the benchmark Nifty50 for the three consecutive quarters, rallying 23 per cent since June 30, 2017 as against six per cent rise in the Nifty50 index. Even on a calendar year basis, IT stocks have done well at the bourses, with the gauge of IT stocks on the NSE rallying seven per cent in CY18, as compared to 1.4 per cent fall in the Nifty50 index. READ MORE

11:32 AM

Aban Offshore, Oil India up over 3%; HPCL, BPCL, IOC down over 5%

Shares of oil exploration, equipment and services companies were trading higher on the bourses by up to 7% on Wednesday in otherwise subdued market after on higher crude oil prices. Oil and Natural Gas Corporation (ONGC), Oil India, Aban Offshore, Jindal Drilling & Industries, Hindustan Oil Exploration and Deep Industries were up in the range of 3% to 7% on the BSE. READ MORE

11:17 AM

After mostly subdued FY18 output, FY19 could be better for Coal India

The 9.4 per cent production growth at Coal India for the month of March is encouraging, after the subdued output in much of 2017-18. It was helped by higher demand from thermal power plants, which had seen stocks fall to 10 days. Rising electricity demand with the early onset of summer and the coming peak season, coupled with subdued production of hydropower due to low reservoir levels, should ensure the demand for coal remains healthy. Similarly, the firm realisation will help offset cost pressure and sustain profitability. READ MORE

10:59 AM

Agri input firms expect double-digit growth in sales, net profit in FY19

Companies manufacturing farm input such as seeds, fertilisers and agrochemicals are likely to post double-digit growth in sales and net profit in 2018-19 on the back of an anticipated normal monsoon and possibility of increases in minimum support prices (MSPs) for kharif crops in 2018. Equity brokerage firm Elara Securities has forecast agri chemicals companies such as Dhanuka Agritech, Insecticides India, PI Industries, Rallis India and UPL may post 10-17 per cent and 14-18 per cent jump in their revenue and net profit, respectively, in 2018-19. READ MORE

10:41 AM

COMMENT: Earnings getting into better shape

Q4FY18 results are expected to be an extension of early signs of growth revival that was witnessed in the preceding quarter.  Auto, metals, media and NBFC space have gained further ground whereas banks continue to drag. With buoyancy in industry-wide auto volumes, we expect our auto-ancillary universe to report strong earnings growth. We expect yet another quarter of strong earnings performance from our metals & mining universe, led by strong uptick in realisations supported by steady volumes partially negated by higher RM costs.

Within the media space, broadcasters are set to report strong double digit ad growth; print companies, however will continue to disappoint. Our banking universe is set to report dismal quarter (both revenue and earnings); NBFC’s remain in a solid footing. Pharma sector is expected to report strong quarter following the recovery in domestic market and with no major threat of price control. Cement demand has remained buoyant across all regions; pricing, however was muted QoQ and hence fallen short of the rising cost inflation

(Source: Centrum Broking)

10:38 AM

Currency Strategy

(Source: Nirmal Bang)

10:35 AM

RESULTS PREVIEW Motilal Oswal Research on Consumer Sector

For our Consumer Universe, we expect aggregate revenue to grow 8.2% YoY and aggregate PAT to grow 11% YoY in 4QFY18. Flat sales expected from ITC, as a result of unusually high base quarter, net sales growth of 21% in cigarettes (due to extremely low excise duty in 4QFY17), are likely to drag down overall sector sales growth, which otherwise would have been in double digits.

With all three components of sales –volumes, realization and premiumization – now firing in tandem, overall sales growth, barring ITC, is on a recovery path. Aggregate EBITDA is likely to grow 10.9% YoY, with sales growth revival leading to better absorption of costs. EBITDA margin is likely to be 60bp higher YoY.

10:33 AM

Sector watch: Telecom (Image source: Nomura report)

10:27 AM

IDBI Capital on Uflex

We have valued the company on EV/EBITDA basis, as we believe that packaging business should get higher multiple than the commoditized film business. We have valued Packaging business including Aseptic at 6x EV/EBITDA on FY19E EBITDA. For Film business, we have assigned an EV/EBITDA multiple of 4.8x on FY19E earnings and arrived at a target of INR 504, which implies 45% upside from current levels. We recommend a “BUY” on the stock.

10:25 AM

Mahanagar Gas extends fall after huge block deal; stock dips 11% in 3 days

Mahanagar Gas dipped 4% to Rs 905 on the National Stock Exchange (NSE) in early morning trade, extending its 6.7% decline in past two trading days, after a more than 9% of total equity of auto and kitchen fuel distributor changed hands through block deals. READ MORE

 

10:15 AM

Volume Toppers

COMPANY NAME	LATEST	HIGH	LOW	CHG ()	CHG(%)	VALUE ( CR)	VOLUME
IDBI BANK	72.20	74.20	71.35	-2.00	-2.70	9.57	1325101
JP ASSOCIATES	20.20	20.75	20.00	-0.20	-0.98	2.54	1259397
REL. COMM.	23.10	23.30	22.85	-0.15	-0.65	2.13	920210
H F C L	28.20	28.25	27.50	1.20	4.44	2.54	900163
UNITECH	6.52	6.84	6.46	-0.24	-3.55	0.53	805398