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
 "Markets, Stocks, Shares")
A share broker monitors market fluctuation
8:52 AM
INTERVIEW OF THE DAY Platts sees crude oil prices in $75 - $80 a barrel range for next 18 months
Rising prices are starting to threaten oil demand in Asia, especially in a country like India, which is starting to feel the pressure more than others. India could feel the pinch with both Venezuelan and Iranian crude, which is also of the heavier sourer variety, coming off the market, says London – based PAUL HICKIN, associate director at S&P Global Platts in an interview READ MORE HERE
Rising prices are starting to threaten oil demand in Asia, especially in a country like India, which is starting to feel the pressure more than others. India could feel the pinch with both Venezuelan and Iranian crude, which is also of the heavier sourer variety, coming off the market, says London – based PAUL HICKIN, associate director at S&P Global Platts in an interview READ MORE HERE
Paul Hickin, Platts
8:51 AM
RESULT ANALYSIS TCS back on double-digit growth path led by rebound in BFSI vertical
Led by a revival in the banking financial services and insurance (BFSI) vertical TCS is expected to post double-digit growth in FY19. The company’s annual revenue growth, which has been trending down from FY12 onwards, hit the trough in FY18 with a growth of 4.4 per cent. Financial year FY19 would be the first time in three years that the company will get back to the double-digit growth mark READ MORE
8:49 AM
IDBI Capital on TCS
We remain confident of TCS reporting the best improvement in FY19 revenue growth (organic) amongst IT large-caps. We factor Q1FY19 beat and FX assumption to Rs68 vs. Rs65.5 earlier for rest of FY19E and FY20E and increase our FY19/20E EPS by 7.8%/5.7%. We maintain ACCUMULATE with new target price of Rs 2,042 based on 22x FY20E vs. 20x earlier
We remain confident of TCS reporting the best improvement in FY19 revenue growth (organic) amongst IT large-caps. We factor Q1FY19 beat and FX assumption to Rs68 vs. Rs65.5 earlier for rest of FY19E and FY20E and increase our FY19/20E EPS by 7.8%/5.7%. We maintain ACCUMULATE with new target price of Rs 2,042 based on 22x FY20E vs. 20x earlier
8:49 AM
Nifty has given a breakout, as said earlier and is heading towards the significant level of 11,000 and the sentiment along with the bias has been maintained positive. Bank Nifty, too has reached near the 27,000 landmark which when breached would bring about a fresh breakout and we may see further fresh development. However, the support for the day is seen at 10,880 while the resistance would be at 11,020 levels. READ MORE
Nifty outlook and top trading ideas from Prabhudas Lilladher for today
Nifty has given a breakout, as said earlier and is heading towards the significant level of 11,000 and the sentiment along with the bias has been maintained positive. Bank Nifty, too has reached near the 27,000 landmark which when breached would bring about a fresh breakout and we may see further fresh development. However, the support for the day is seen at 10,880 while the resistance would be at 11,020 levels. READ MORE
8:46 AM
Emkay Global on Dish TV
■ Strong Q1FY19 performance sets positive momentum, as major benefits of cost synergies from merger would reflect in the coming quarters. We continue to highlight that consistency in performance is key due to past baggage of underperformance. We raise EBITDA estimates by 4%/2% for FY19/20E, driven by higher ARPU assumptions.
■ Cable TV distribution companies have corrected significantly with JIO’s announcement to launch JIO Fibre and JIO TV while Dish TV has been stable due to ongoing open offer. Pricing plans from JIO on for its fibre and TV offering would decide the level of disruption. We retain ACCUMULATE with unchanged target price of Rs 86 (8x FY20E EV/EBITDA)
■
■ Dish TV reported strong numbers after few quarters of dismal performance. Subscription revenue grew by 8.1% qoq to Rs14.9bn, driven by 6.4% qoq increase in ARPU.
■ Operating performance was better than expected, largely driven by higher revenue. Total opex declined by 2.9% qoq (up 2.5% qoq adjusted for one-time cost of Rs600mn in Q4FY18), but 6% higher than our estimate.
■ Strong Q1FY19 performance sets positive momentum, as major benefits of cost synergies from merger would reflect in the coming quarters. We continue to highlight that consistency in performance is key due to past baggage of underperformance. We raise EBITDA estimates by 4%/2% for FY19/20E, driven by higher ARPU assumptions.
■ Cable TV distribution companies have corrected significantly with JIO’s announcement to launch JIO Fibre and JIO TV while Dish TV has been stable due to ongoing open offer. Pricing plans from JIO on for its fibre and TV offering would decide the level of disruption. We retain ACCUMULATE with unchanged target price of Rs 86 (8x FY20E EV/EBITDA)
8:45 AM
Phillip Capital on IndusInd Bank June quarter results
IndusInd Bank will continue to report strong performance led by robust growth in advances and stable NIM. Merger with Bharat financial will enable the entity to realize synergies in funding cost and opportunity to drive revenues from cross selling. Growth in consumer finance loans will gain momentum and will subsidize the high-rated corporate business, thus allaying NIM and asset-quality concerns.
Risk adjusted RoA should continue to remain strong, driven by earnings CAGR of 25% in FY18-20. We maintain BUY with increased target price to Rs 2170 (previous Rs 2050) valuing the stock at 4x FY20 BVPS of Rs 542.
IndusInd Bank will continue to report strong performance led by robust growth in advances and stable NIM. Merger with Bharat financial will enable the entity to realize synergies in funding cost and opportunity to drive revenues from cross selling. Growth in consumer finance loans will gain momentum and will subsidize the high-rated corporate business, thus allaying NIM and asset-quality concerns.
Risk adjusted RoA should continue to remain strong, driven by earnings CAGR of 25% in FY18-20. We maintain BUY with increased target price to Rs 2170 (previous Rs 2050) valuing the stock at 4x FY20 BVPS of Rs 542.
8:44 AM
Edelweiss on TCS results
We continue to maintain that sector turnaround has just begun and revenue acceleration will continue as the proportion of low growth business (IMS/ADM) will keep declining while that of high-growth digital will rise. Accordingly, given our sector turnaround view, we raise the target multiples for our coverage universe.
We believe TCS’s current market price already factors in the aforementioned positives; thus, despite assigning the highest sector multiple of 22x FY20E EPS (20x earlier), we maintain ‘HOLD’ with a revised target price of Rs 1,943 based on better results and our USD/INR estimate revision to 69 from 66.
We believe TCS’s current market price already factors in the aforementioned positives; thus, despite assigning the highest sector multiple of 22x FY20E EPS (20x earlier), we maintain ‘HOLD’ with a revised target price of Rs 1,943 based on better results and our USD/INR estimate revision to 69 from 66.
8:44 AM
Today's picks: From Hindalco to Indiabulls, hot stocks to watch today
Hindalco
Current price: Rs 229
Target price: Rs 233
Keep a stop at Rs 227 and go long. Add to the position between Rs 231 and Rs 232. Book profits at Rs 233.
Indiabulls Housing
Current price: Rs 1,143
Target price: Rs 1,125
Keep a stop at Rs 1,152 and go short. Add to the position between Rs 1,129 and Rs 1,132. Book profits at Rs 1,125. READ MORE
8:36 AM
Markets on Tuesday
| S&P BSE Sensex | 36,239.62 | 0.85% | |
| Nifty 50 | 10,947.25 | 0.87% | |
| S&P BSE 200 | 4,707.41 | 0.86% | |
| Nifty 500 | 9,359.40 | 0.88% | |
| S&P BSE Mid-Cap | 15,737.77 | 1.01% | |
| S&P BSE Small-Cap | 16,483.58 | 1.04% | |
8:34 AM
SGX Nifty
The SGX Nifty was at 10,928, down 0.27 per cent from the previous close.
The SGX Nifty was at 10,928, down 0.27 per cent from the previous close.
8:31 AM
Asian Markets
Asian stocks retreated and perceived safe havens such as the yen and US Treasuries rose on Wednesday after the United States said it would impose tariffs on an extra 200 billion worth of Chinese imports, sharply escalating the trade war between the world’s two biggest economies.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4 per cent. The index had gained for the past two sessions, having enjoyed a lull from the trade war fears that lashed global markets last week. South Korea's KOSPI lost 1 per cent and Japan's Nikkei fell 1.2 per cent.
8:29 AM
Wall Street
The S&P 500 rose for a fourth session on Tuesday to post its highest close since Feb. 1, the day before the market began a sharp extended selloff, as strong results from PepsiCo boosted optimism about the earnings season.
The Dow Jones Industrial Average rose 143.07 points (0.58 per cent) to 24,919.66, the S&P 500 gained 9.67 points (0.35 per cent) to 2,793.84 and the Nasdaq Composite added 3.00 points (0.04 per cent) to 7,759.20.
8:26 AM
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First Published: Jul 11 2018 | 8:25 AM IST
