MARKETS ON WEDNESDAY: Indices end flat; IT, metal stocks among top losers

Benchmark indices ended flat Wednesday after a choppy session dragged by losses in the metal and IT indices.

1:10 PM

Result update: Dabur

On the back of benign raw material prices, gross margins improved 167bps; this coupled with operating efficiencies and softer ad spend (down 24bps YoY) led to EBITDA margin expansion of 206bps YoY. Dabur’s stable to expanding market share, receding competition from herbal players and improving rural economy are positives. Maintain ‘BUY’. 

(Source: Edelweiss Securities)

1:08 PM

Antique Stock Broking on L&T

On expected lines, the L&T has divested its Electrical & Automation (E&A) business, a non-core business to Schneider Electric, for INR 140bn, after signing a definitive agreement on 1-May-18. The company has been on the spree of monetising its non-core assets and the sale of E&A business is a significant milestone in that direction.

The all-cash transaction is expected to aid balance sheet strengthening of the company through improved working capital position and return ratios. Also, this is expected to improve management bandwidth on its core business in addition to aiding future growth. We continue to like the stock given its multiple growth engines and thus maintain BUY with SoTP based target price of Rs 1,580

1:05 PM

FOMC preview: US Fed likely to keep rates unchanged, says Morgan Stanley

We look for no change in the target range of the federal funds rate, following the 25bp increase to 1.50%-1.75% at the March meeting. Since the March meeting, the incoming inflation data have confirmed the expected rebound as last year's telecom price reset rolled out of the 12-month window. We believe March data on core PCE inflation, released April 30, will show an annual rate of 2.0%—touching the Fed's 2% goal for the first time since spring 2012.

We expect the Fed to next hike rates at its June meeting, with little change in the "dots" and forecasts. We continue to look for a total of three hikes this year, followed by a pause, and two additional hikes in 2019 where we think the hiking cycle ends

1:00 PM

Buyback proposal fails to lift PC Jeweller; stock tanks 23% from day's high

Shares of PC Jeweller have dipped 18% to Rs 119 per share falling 23% from its intra-day high on the BSE, despite the company announcing a share buyback proposal. The stock was up 6% to Rs 154 in early morning trade.
 

PC Jeweller on Sunday, April 29, said that the board of directors of the company will meet on Friday, May 5, 2018 to consider the proposal for buy back of fully paid-up equity shares of the company. READ MORE

12:42 PM

SECTOR WATCH Why Indian refineries continue to attract investors with deep pockets

 

Today morning, the finance and petroleum ministries will open the bids for oil and gas exploration blocks under the Open Acerage Licensing Policy (OALP). Officials are hopeful the bids, coming after a lot of tweaks in the policy, will show up some interesting offers.

 

But the big news this morning is a reported offer by Kuwait Petroleum International to buy a 24 per cent stake in Bina refinery, a 50:50 joint venture between state-run Bharat Petroleum Corporation (BPCL) and Oman Oil Co. Last month, Saudi Aramco announced it plans to invest 50 per cent in a Rs 3 trillion refinery project floated by the three state run oil companies— Indian Oil Corporation, BPCL and Hindustan Petroleum Corporation.

12:24 PM

STOCKS NEAR ALL-TIME HIGH

COMPANY	LATEST	ALL TIME HIGH	PREV HIGH	PREV DATE	VOLUME
BERGER PAINTS	283.40	287.85	287.30	30-APR-2018	18951
BOMBAY DYEING	311.50	317.45	316.30	30-APR-2018	444310
BRITANNIA INDS.	5533.85	5560.35	5534.95	30-APR-2018	2859
DABUR INDIA	374.55	382.30	371.70	30-APR-2018	125743
ESCORTS	998.00	1018.50	1006.50	30-APR-2018	94502

12:09 PM

Bonds: Rising interest rates likely to hurt India's economic growth

 

Various estimates suggest that India could grow at 7.5 per cent this fiscal, but such a growth rate would likely be hampered if the interest rates remain at elevated levels. The 10-year yields on government bonds (G-secs) are a good gauge of the medium term interest rate trajectory, and those yields are on the rise.

 

The foreign portfolio investors (FPIs) are liquidating their fixed income portfolio, and at an increasing pace in the past three months, leaving the market at the hands of domestic money. READ MORE

12:01 PM

Markets at noon

S&P BSE Sensex	35,182.20		0.06%
Nifty 50	10,733.30		-0.06%
S&P BSE 200	4,718.66		-0.10%
Nifty 500	9,486.15		-0.11%
S&P BSE Mid-Cap	16,963.75		-0.28%
S&P BSE Small-Cap	18,390.28		-0.06%

11:45 AM

Top BSE500 gainers

COMPANY	PRICE()	CHG()	CHG(%)	VOLUME
SCHNEIDER ELECT.	130.30	17.10	15.11	445347
REL. COMM.	17.05	1.80	11.80	10057877
TRIVENI TURBINE	106.50	7.20	7.25	14567
ORIENT CEMENT	148.45	9.05	6.49	4962
WELSPUN INDIA	60.25	3.15	5.52	292797

11:29 AM

Breakout above 10,650 on Nifty is a positive

The Nifty has continued its northwards journey, pushing through resistance between 10,650 and 10,700. The index is well above the 200-day moving average (200-DMA) and there is a likely short-term target of 10,900. While the short-term and intermediate trends are up, the index will have to cross the all-time high of 11,170 to confirm that the big bull market remains alive. READ MORE

 

11:16 AM

Half of BSE 500, Sensex stocks are once again trading above 200-DMA

Half of Sensex and BSE 500 stocks are once again trading above their 200-day moving average (DMA) following last month’s broad-based rally in the market. This is a sharp reversal of trend compared to March, when three-fourths of the BSE 500 stocks had dipped below their long-term averages.

In April, the benchmark Sensex rallied 6.7 per cent, while the BSE Midcap, BSE Smallcap and BSE 500 indices surged 6.6 per cent, 8.3 per cent and 6.5 per cent, respectively. Experts say the rebound was triggered by a better-than-expected start to the March quarter earnings season, easing of geopolitical concerns and normal forecasts for the monsoon. READ MORE

11:00 AM

HCL Technologies falls 5% as Q4 profit misses estimates

HCL Technologies dipped 5% to Rs 1,002 on the BSE in early morning trade after the IT company reported a lower than expected 1.5% quarter on quarter rise in its net profit at Rs 22.27 billion in March quarter (Q4FY18). Revenue grew 2.9% at Rs 131.79 billion over the previous quarter. Analysts on an average had expected profit of Rs 22.88 billion on revenue of Rs 132.19 billion for the quarter. READ MORE

10:47 AM

Schneider Electric Infra surges 19% as parent co agrees to buy L&T unit

Schneider Electric Infrastructure has surged 19% to Rs 135 on the BSE on back of heavy volumes after parent company Schneider Electric entered into a definitive agreement with Larsen & Toubro (L&T) to buy its electrical & automation (E&A) business for an all-cash consideration of Rs 140 billion.

 

Schneider Electric Infrastructure is subsidiary of Schneider Electric, in which the French multinational owns a 75% stake. READ MORE

10:29 AM

BS Special Indian IT's big four: Will the next decade be as good as the previous one?

Last week TCS reached a historical landmark when its market cap hit the $100 billion mark. India's top four IT service companies viz., TCS, Infosys, WIPRO and HCL Technologies collectively built a revenue base of around $45 billion and created a market cap of around $183 billion (over Rs 12 trillion), which is significantly more than the overall BSE market cap at the start of this century! The combined annual wage bill of these four giants now stands at around $24 billion (Rs 1.60 trillion). READ MORE

 

10:14 AM

Tata Motors up 3% on strong domestic sales in April

Shares of Tata Motors were trading 3% higher at Rs 352 per share on the BSE in early morning trade after the company reported a rise of 86% in its domestic sales at 53,511 units for April 2018. It had sold 28,844 units in the same month last year.
 

In April 2018, the registered an impressive growth over last year due to the continued strong sales performance of its commercial and passenger vehicles business in the domestic market, Tata Motors said in a press release. READ MORE