MARKET WRAP: Sensex ends at new closing high of 37,337; ITC up 5% post Q1

The benchmark indices are trading at record high on Friday on strong quarterly results

10:48 AM

Hindalco gains 7% as arm Novelis to buy Aleris

Shares of Hindalco Industries were up 7% at Rs 220 per share on the BSE in early morning trade after the company announced the acquisition of a global aluminium rolled products major Aleris at an enterprise value of US $ 2.58 billion.

The acquisition will be made through the Hindalco’s wholly owned subsidiary, Novelis Inc. Aleris has a global footprint with manufacturing facilities in Europe, the US and Asia. READ MORE

10:33 AM

Sebi refutes MSCI's claim of India being a 'restrictive' market

The Securities and Exchange Board of India (Sebi) has refuted global index provider MSCI’s claim of India being a “restrictive” market for offshore investors. MSCI had, in May, put India on notice for limiting access to investors using offshore platforms.

 

The move came after domestic exchanges snapped licensing and data-sharing arrangements with global bourses to put an end to offshore trading in domestic products. READ MORE

10:31 AM

Antique Stock Broking on ITC

In the next three quarters, we expect volume growth to accelerate further on a low base led by continued recovery in the king size segment. Additionally, the paper business is expected to witness improvement in performance led by a new capacity of high realization paper from 2QFY19.

We believe that majority of the pressure on earnings due to sharp rise in cigarette duties is already in the performance and will have a receding impact going ahead. This will lead to a re-rating of the stock from the current levels. We maintain our earnings forecast. We re-iterate BUY recommendation on the stock with a target price of Rs 341 (at PER of 30x FY20E)

10:30 AM

Edelweiss on ITC Q1FY19 results

ITC’s Q1FY19 revenue, EBITDA and PAT growth of 7.6%, 12.2% and 10.1% YoY, respectively, came in line with our estimates. After four quarters, cigarette volumes were encouraging—1.5% YoY volume growth versus our and Street’s expectations of 1-2% YoY dip.

The stock is trading at 24.6x FY20E EPS versus HUL’s 48.2x FY20E EPS. This 50% discount is at the higher end and during good times it has shrunk to ~20%. However, with cigarette still contributing ~85% to EBIT, reliance on regulated business remains high. Hence, we maintain ‘HOLD/SP’ and value ITC on SOTP on FY20E to arrive at target price of Rs 328. 

10:15 AM

Why Hindalco's Aleris deal details should calm nerves in the market

The Street’s nervousness over Hindalco’s expected acquisition of US-based Aleris was reflecting in its stock price volatility during the last one week. Though Hindalco’s intension to acquire Aleris through its US-subsidiary Novelis were known ever since it had bid for the business, and the enterprise value of close to $2.5 billion too was expected — the Street was worried over the deal valuation. READ MORE

10:03 AM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	37229.36	36984.64	244.72	0.66
	15146.73	15059.90	86.83	0.58
	15833.51	15763.22	70.29	0.45
	16393.39	16306.02	87.37	0.54
	4357.19	4330.95	26.24	0.61

9:56 AM

RESULT IMPACT ITC hits 52-week high as Q1 profit beats estimates; stock surges 5%

Shares of ITC surged 5% to Rs 302 per share on the BSE on Friday after the company reported a better-than-expected 10% year-on-year jump in net profit at Rs 28.19 billion in June quarter (Q1FY19). The net profit growth during the quarter was driven by robust performance across most segments. Analysts on average had expected net profit of around Rs 28 billion for the quarter. READ MORE

9:46 AM

With rising bond yields, India to outdo emerging market peers: Nomura Asset

After seeing India’s benchmark bond yields rise more than 40 basis points this year, Nomura Asset Management Co.’s Takashi Mishima is seeing a “good entry point” into the market now. READ MORE

9:32 AM

Colgate-Palmolive woes deepen with market share decay; stock falls 3.6%

Shares of Colgate-Palmolive (Colgate), which were down 10.5 per cent in the past two months until Wednesday, slid another 3.6 per cent to Rs 1,083.90 on Thursday, despite the company posting better-than-expected profit for the June 2018 quarter (Q1). Investors are worried about the persistent decline in Colgate’s toothpaste market share, which may keep the stock under pressure. READ MORE

9:21 AM

ITC Q1 net profit rises 10.07% at Rs 28.19 billion, beats estimates

 

Beating street estimates, diversified conglomerate ITC Ltd posted a 10.07 per cent jump in its net profit at Rs 28.19 billion for the quarter ended June 30, 2018 with its total revenue, inclusive of other income, registered at Rs 112.78 billion.

 

The net profit during the similar quarter of the last fiscal year stood at Rs 25.61 billion while the revenue was registered at Rs. 142.77 billion. READ MORE

 

EARNINGS IMPACT

9:19 AM

Sectoral Trend

9:18 AM

Top Sensex gainers and losers

9:17 AM

Markets open at record high

At 9:17 am, the S&P BSE Sensex was trading at 37253.8, up 269 points while the broader Nifty50 index was ruling at 11,227, up 60 points

9:02 AM

Markets at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,087.05	+102.41	+0.28
S&P BSE SENSEX 50	11,747.85	+60.30	+0.52
S&P BSE SENSEX Next 50	33,080.53	+131.29	+0.40
S&P BSE 100	11,483.68	+58.25	+0.51
S&P BSE Bharat 22 Index	3,478.24	+32.51	+0.94

(Source: BSE)

8:58 AM

Top trading ideas from Prabhudas Lilladher

 

BUY M&M FINANCIAL SERVICE 

CMP: Rs 512 

TARGET: Rs 550 

STOP LOSS: Rs 492

 

The stock has been maintaining a good support around the significant 200 DMA moving average which was recently at around 462 levels and currently has given a good bounce with a positive bullish candle pattern in the daily chart to signify strength and potential to rise further in the coming days. The stock has actually given a breakout above the previous resistance of 500 levels and has come into a new zone. With the RSI on the rise and increasing volume participation witnessed, we recommend a buy in this stock for an upside target of 550 keeping a stop loss of 492. Click here for more