MARKETS ON THURSDAY: Nifty ends at 10,717, Midcaps slip; Realty stocks hit

The S&P BSE Sensex ended at 35,246, down 73 points. Realty stocks were among the top losers, followed by pharma scrips.

10:25 AM

STOCK ANALYSIS After 956% surge in a year, analysts now turn cautious on HEG

China’s clamp down on polluting industrial plants that triggered a shut-down of nearly 30 per cent of graphite electrode capacity last year have proved to be a boon for HEG Ltd, which reported a turnaround performance in financial year 2017 – 18 (FY18).

 

The consolidated net profit for FY17 came in at Rs 10.99 billion, compared to a net loss of Rs 440 million. For the fourth quarter ended March 2018 (Q4FY18), HEG clocked a net profit of Rs 6.34 billion, as compared to a net loss of Rs 34 million in year ago period CLICK HERE FOR MORE

 

10:14 AM

Market Check

 

S&P BSE Sensex	35,407.35		0.25%
Nifty 50	10,768.10		0.25%
S&P BSE 200	4,692.41		0.09%
Nifty 500	9,432.75		0.15%
S&P BSE Mid-Cap	16,479.46		-0.31%
S&P BSE Small-Cap	18,096.67		0.06%

10:05 AM

Edelweiss on Whirlpool

We expect the company to extend market share improvement with product profile augmentation, aggressive marketing and distribution expansion, while maintaining strong control on costs thus posting 26% earnings CAGR (FY18-20). At CMP, the stock trades at 44/35x FY19/20E EPS. We maintain ‘BUY/Sector Outperformer’ with a revised target price of Rs 1,800

10:03 AM

Nomura on Jubilant FoodWorks

We believe that the growth momentum has been far sharper than what we had anticipated. However, we also believe the growth is now built into the stock price post the recent run-up. Hence, we consider the risk-reward to be evenly balanced.

Valuations at 50.1x FY20F EPS of INR51.1 are getting into expensive territory. We continue to value the stock based on P/E (50x, unchanged – backed by DCF). We downgrade the stock to Neutral with a target price of Rs 2,675, implying 4.5% potential upside from current levels. is our top pick in the sector.

9:32 AM

Sector watch: Pharma

There has been considerable deterioration in base US business of pharma companies under coverage since FY17 due to faster ANDA approvals, supply-side

consolidation, and increased competition in key products. We remain positive on the pharma sector, as companies under coverage are progressing well in complex generics, which should offset the decline in base business and/or drive growth in US generics. We have a Buy rating on Aurobindo Pharma, Cadila Healthcare and Lupin among large caps, and on Shilpa Medicare among midcaps

(Soure: Motilal Oswal Securities)

9:30 AM

INTERVIEW OF THE DAY Walmart-Flipkart deal: We are open to a strategic alliance, says Biyani

He is in many ways the king of modern retail. But Kishore Biyani, chief executive officer of the Future group has been fighting a tough battle with e-commerce giants like Flipkart and Walmart across various segments of the market. Biyani talks about the impact of Walmart-Flipkart deal on Indian retailers in this interview with Business Standard READ MORE

9:26 AM

MARKET COMMENT Indranil Sen Gupta of BofAML

 

We raise our FY19 CAD forecast to 2.4% of GDP with our oil strategists hiking their forecast to US$71.8/bbl from US$62.5/bbl; We continue to expect RBI to try to defend Rs66/USD and buy back FX reserves sold before allowing appreciation again; RBI should raise NRI bonds of, say, $30-35bn with higher oil prices cutting import cover to 9.6 months in FY19

9:21 AM

Sectoral Trend

9:19 AM

BSE Sensex: ONGC, Bharti Airtel among top gainers

9:17 AM

Market at open

 

At 9:16 AM, the S&P BSE Sensex was trading at 35,433, up 113 points while the broader Nifty50 was ruling at 10,774, up 32 points.

9:01 AM

Markets at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,391.98	+72.63	+0.21
S&P BSE SENSEX 50	11,241.63	+21.38	+0.19
S&P BSE SENSEX Next 50	33,837.88	-200.29	-0.59
S&P BSE 100	11,098.12	+7.82	+0.07
S&P BSE Bharat 22 Index	3,604.87	+2.16	+0.06

(Source: BSE)

8:56 AM

Centrum Broking on Pfizer

We maintain Buy rating for Pfizer and  revise our target price of Rs2,900 (earlier Rs2,740), based on 23x March’20E EPS of Rs126.1. Pfizer’s Q4FY18 results were in line with our estimates. The drug maker reported a 15% YoY growth in revenues, while margin improved by 570bps to 26.6% and net profit grew 54%YoY. We expect the company to deliver superior performance due to strong growth in its major brands.

Recently, the company  launched new line extension Corex-T and Corex LS. Pfizer has launched  Meronem and Neksium in India, which are acquired from Astra Zeneca Pharma. The key downside risk to our assumption is slowdown of domestic  pharma market  and  additional brands coming under price control

8:56 AM

Oil jumps 3 percent after US quits Iran deal, US stock drawdown

Oil prices rose about 3 percent on Wednesday and hit fresh 3-1/2 year highs after a bigger-than-expected drawdown in U.S. oil inventories extended gains from the United States' decision to quit a nuclear deal with Iran.

Brent crude futures rose $2.36, or3.2 per cent to settle at $77.21 a barrel. The global benchmark hit a session high of $77.43, the highest since November 2014. US West Texas Intermediate (WTI) crude futures rose $2.08 to settle at $71.14 a barrel, a 3-per cent gain.

 

Both contracts notched their biggest daily percentage gain in a month. READ MORE

8:56 AM

Centrum Wealth on Can Fin Homes

Since our last update (Outperformer; Rs443 on 25 Jan’18) the stock of CHFL has corrected ~9% on concerns of slowing growth, higher NPAs and delays in implementation of RERA in the company’s key market - Karnataka. However, during Q4, the improvement in sanctions and disbursements has resulted in a +18% loan growth thus giving comfort on growth revival.

Further, the management has guided improving recoveries in FY19 along with better loan growth of about 24% to Rs19,500 crore. Considering the management pedigree and focussed approach towards growth and better asset quality, we maintain Outperformer rating on the stock with target price of Rs475

8:55 AM

MARKET COMMENT Gaurav Ratnaparkhi, senior technical analyst, Sharekhan by BNP Paribas

The Nifty opened in red but ended the trading session on a positive note. In the near term, the index has support at 10,600 – 10,630 on the way down whereas on the way up, 10,785 will be a crucial resistance. The index is likely trade sideways within the range of 10,600 – 10,785 unless it does not breach either side of the range decisively. Once the index breaches above 10,785, it is likely to head higher towards 10,910 i.e. 78.6% retracement level of its previous fall. Overall, we have a bullish outlook on the index for the short term with a target 10,910 and reversal placed at 10,500