MARKET WRAP: TCS up 5% in a flat market, HUL hits record, metal stocks slip

After a muted session, investors will now look out for inflation data on Thursday and Infosys results on Friday to fine-tune their trading strategy. Global developments, too, will impact sentiment

10:18 AM

Sebi launches proceedings against ICICI Prudential MF, to probe officials

The country’s largest mutual fund (MF) house ICICI Prudential Asset Management Company (AMC) may not escape simply by compensating its investors in the ICICI Securities fiasco. Sources say market regulator Securities and Exchange Board of India (Sebi) has launched adjudication proceedings against the fund house to further probe misuse of investors’ money. READ MORE

10:06 AM

Anand Rathi on IndusInd Bank
Rating: Buy

Target Price: Rs 2,248

(Image source: Anand Rathi report)

 

10:03 AM

Edelweiss on IndusInd Bank

IndusInd Bank’s Q1FY19 earnings were in-line with expectations and reaffirms our confidence that the bank is structurally poised to achieve Phase IV targets and achieve scale with quality. Loan growth momentum of 29% (more broad-based), sustained CASA (SA grew >50% YoY), and operating leverage supported 20% YoY NII and >27% YoY operating profit growth. MTM loss of INR860mn fed into softer PAT growth of 24%.

Asset quality was steady with slippages at 1.3%, credit cost at 14bps and GNPLs at 1.15%. Key monitorables will be: a) below trend core fee income growth; and b) merger update with BhaFin (likely conclusion in Q2FY19). Given strong track record, superior RoA and well-capitalised position, execution risks are minimal. Maintain ‘BUY’ with target price of Rs 2,080 (3.9x FY20E P/ABV)

10:01 AM

Market Check

 

S&P BSE Sensex	36,253.60		0.04%
Nifty 50	10,964.55		0.16%
S&P BSE 200	4,709.78		0.05%
Nifty 500	9,375.45		0.17%
S&P BSE Mid-Cap	15,739.92		0.01%
S&P BSE Small-Cap	16,509.78		0.16%

9:53 AM

TCS gains 3% as Q1 profit beats Street estimate

Shares of Tata Consultancy Services (TCS) rose 3% to Rs 1,928 per share on the BSE in early morning trade after the country’s biggest software services exporter posted a better-than-expected rise of about 23.5% year on year (YoY) and 6.3% quarter on quarter (QoQ) in first-quarter (Q1) net profit, helped by strong growth in its banking, financial services and insurance division (BFSI). READ MORE

9:40 AM

BS Special Consumer business to drive doubling of Reliance's size in the next 7 years

Reliance Industries’ annual general meetings (AGMs) are the most awaited investors’ event in the Indian stock market calendar. Like last year, the focus this time was on the businesses headed by Ambani gen-next and it was also an indication that they were settling down well in the saddle.

 

The group has been the harbinger of equity culture in India, creating wealth for millions of its investors. The importance of Reliance can be gauged from the data on the group’s consolidated tax payment for 2017-18 which exceeds the GDP of about 11 Indian states. READ MORE

9:30 AM

MARKET COMMENT Gautam Duggad, head of research, Motilal Oswal

As far as the 1QFY19 earnings season is concerned, it will benefit from the favorable base of 1QFY18, when pre-GST destocking by trade had impacted the performance of several sectors like Auto, FMCG, Retail, Healthcare and Cement. Global cyclicals like Metals and Oil & Gas will continue leading from the front and contribute more than half of the incremental profits for MOSL universe.

Our Nifty EPS estimates are largely stable for FY19 and FY20 at Rs 580 and Rs 694 v/s Rs 579 and Rs 693 earlier, respectively. We are building in Nifty EPS growth of 26%/20% for FY19/20.

9:26 AM

Nifty sectoral trend

9:26 AM

Sensex heat map

9:24 AM

RESULT IMPACT TCS rises over 2% as June quarter results beat expectations (Image souce: NSE)

9:18 AM

Market at open

 

At 9:16 AM, the S&P BSE Sensex was trading at 36,226, down 13 points while the broader Nifty50 was ruling at 10,938, down 9 points.

9:01 AM

Markets at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,266.70	+27.08	+0.07
S&P BSE SENSEX 50	11,496.03	+31.62	+0.28
S&P BSE SENSEX Next 50	32,556.62	0.00	0.00
S&P BSE 100	11,247.82	+28.45	+0.25
S&P BSE Bharat 22 Index	3,379.90	0.00	0.00

(Source: BSE)

8:56 AM

Technical calls by HDFC Securities for today: Buy ITC, Bajaj Electricals

Buy ITC (Rs 277)

Target: Rs 294

Stop loss: Rs 268

 

Most of the large-cap FMCG stocks hit new all-time highs during the last two months. However, in the case of ITC, it is still placed 25% below from the all-time high of 368 registered in July 2017. Recently ITC has taken support on the long-term trend line on the weekly charts and reversed northward. Stock price reclaimed a level above its 20 and 50 DMA, indicating a bullish trend reversal. We recommend buying ITC for the upside target of 294, keeping SL at 268.

 

Buy Bajaj Electric (Rs 551)

Target: Rs 590

Stop loss: Rs 523

 

The stock has been holding above its crucial support of 200 DMA, currently placed at 512. Stock Price has recently broken out from the consolidation range of 515-550, holding for last 5 weeks. On Tuesday, July 10, 2018, Stock surged more than 5%, with a significant jump in volumes. Oscillators and indicators have turned bullish on the short-term charts. We recommend buying Bajaj Electric for the upside target of 590, keeping SL at 523. READ MORE

8:54 AM

Stocks in news

·         Axis Bank board shortlisted three candidates for the position of Managing Director and Chief Executive Officer

 

·         Punjab National Bank and Carlyle Group to sell minimum 51% stake in PNB Housing Finance to potential buyers

 

·         Officials indicate that LIC-IDBI deal may trigger an open offer, according to Bloomberg

 

·         Glenmark Pharmaceuticals launched Helsinn’s Akynzeo drug in India and Nepal

 

·         Shalimar Paints approved issue of rights issue draft order up to Rs 240 crore and will re-establish its Nashik Plant

 

·         Tata Motors unit picked up 26% stake in freight aggregator company Truckeasy

 

·         KEC International secured multiple orders worth Rs 1,357 cr

 

·         BigBloc Construction to acquire Hilltop Concrete for Rs 20 cr

 

·         Kridhan Infra won order worth Rs 74.2 cr

 

·         MCX, NSE in talks to team up for bigger exchange play

 

·         Vedanta to team up with Anglo American to bid for Indian Coal Mines

(Source: IIFL report)

 

8:53 AM

MARKET COMMENT Amar Ambani, head of research, IIFL

The Sensex and Nifty saw some sunshine yesterday, as a strong upmove continued throughout the day, helping the markets close in the green. A surge in the last hour of trade, was supported by index heavyweights and midcap stocks. Auto, energy, metals and PSU banks joined the rally on Dalal Street.

The market capitalisation of HDFC group crossed Rs 1 trillion, the second Indian business to hit the mark after the Tata Group. Oil prices rose by over a dollar due to a strike in Norway and reduction of Libya's production.US to slap tariffs on extra $200 bn of Chinese imports. Asian markets are trading low. US markets ended higher. The outlook is a flat start