MARKET WRAP: Indices gain for 3rd straight session; IT stocks underperform
Benchmark indices gained on Monday as a sharp drop in crude prices and a recovery in the rupee boosted sentiment
 "Markets, Stocks, BSE, NSE, SENSEX")
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Benchmark indices gained for a third straight session on Monday as a sharp drop in crude prices and a recovery in the rupee boosted sentiment.
The S&P BSE Sensex ended at 35,165, up 241 points while the broader Nifty50 index settled at 10,689, up 84 points
The S&P BSE Sensex ended at 35,165, up 241 points while the broader Nifty50 index settled at 10,689, up 84 points
Oil prices fell on Monday, extending even steeper declines from Friday, as Saudi Arabia and Russia said they may increase supplies and as US production gains showed no signs of abating.
Among individual stocks, shares of Sun Pharmaceutical Industries saw their best day in over three years, up over 6% on strong fourth-quarter results.
The rupee firmed up against the dollar on Monday to its strongest level in two weeks. Shares of information technology companies fell, on worries that a stronger rupee could hit returns from the US market
Tata Consultancy Services fell 2.5% while Tech Mahindra shares posted their biggest intraday drop since May 29, 2017.
GLOBAL MARKETS
Japan’s Nikkei gained 0.3 per cent in early trade, while South Korea’s Kospi rose 0.5 per cent, buoyed by stocks which are seen as benefiting from a further thawing in tensions with Pyongyang. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat.
CRUDE OIL PRICES
Oil prices extended losses on Monday as Saudi Arabia and Russia said they may increase supplies while US production gains show no signs of slowing.
Brent crude futures stood at $75.35 a barrel, down $1.09 from the previous close and after touching a three-week low of $74.49 earlier in the session.
(with Reuters inputs)
3:45 PM
Sun Pharma ends 6.55% up on NSE
3:42 PM![]()
Nifty IT index ends 1.92% lower. Top losers:
| COMPANY | LATEST | PREV CLOSE |
LOSS( ) | LOSS(%) |
| TECH MAHINDRA | 675.25 | 702.75 | -27.50 | -3.91 |
| HCL TECHNOLOGIES | 894.50 | 916.00 | -21.50 | -2.35 |
| TCS | 3502.05 | 3585.80 | -83.75 | -2.34 |
| TATA ELXSI | 1208.30 | 1232.70 | -24.40 | -1.98 |
| MINDTREE | 1011.45 | 1023.60 | -12.15 | -1.19 |
3:38 PM
Nifty sectoral performers
3:36 PM
BSE Sensex: Sun Pharma gains 6.42% during the day, Power Grid, TCS among top losers
3:32 PM
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Market at close
The S&P BSE Sensex ended at 35,165, up 241 points while the broader Nifty50 index settled at 10,689, up 84 points.
3:28 PM
Shares of Nandan Denim and Lovable Lingerie have plunged over 10% in otherwise strong market after these companies reported a weak set of numbers for the quarter ended March 2018 (Q4FY18). READ MORE
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Nandan Denim, Lovable Lingerie fall over 10% on weak Q4 result
Shares of Nandan Denim and Lovable Lingerie have plunged over 10% in otherwise strong market after these companies reported a weak set of numbers for the quarter ended March 2018 (Q4FY18). READ MORE
3:12 PM
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EARNINGS NTPC Q4 profit jumps 46%, beats estimates
NTPC reported a 46% jump in fourth-quarter profit on Monday, marginally beating analysts’ estimates.
Profit after tax from continuing operations was Rs 26.26 billion ($389.59 million) in the three months ended March 31, compared with Rs 17.95 billion a year earlier, the state-controlled company said.
3:00 PM
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Fortis Healthcare gets approval from Hero-Burman to re-open bidding
Fortis Healthcare rose 1% on Monday after it said the consortium of Hero Enterprise Investment Office and Burman Family Office, which won a five-way bidding war for the Indian firm, has permitted re-opening the bidding process, amid shareholder concerns over the board’s choice of the underdog. READ MORE
2:46 PM
Shares of public sector banks (PSBs) were trading higher for the sixth straight trading days with Nifty PSU Bank gaining more than 10% during the period on the back of expectations of an improvement in the asset quality going ahead. READ MORE
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PSBs extend rally; Nifty PSU bank surges 13% in six days
Shares of public sector banks (PSBs) were trading higher for the sixth straight trading days with Nifty PSU Bank gaining more than 10% during the period on the back of expectations of an improvement in the asset quality going ahead. READ MORE
2:32 PM
A troubled 2018 so far for billionaire Anil Agarwal’s Vedanta Ltd. may get worse amid concern that its key copper smelter in southern India could remain shut until 2019, further pressuring a stock that’s down 25 percent since the start of the year. READ MORE
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So far so bad: Vedanta slid 25% this year, and then Thoothukudi hit
A troubled 2018 so far for billionaire Anil Agarwal’s Vedanta Ltd. may get worse amid concern that its key copper smelter in southern India could remain shut until 2019, further pressuring a stock that’s down 25 percent since the start of the year. READ MORE
2:16 PM
Just Dial has rallied 23% to Rs 625, extending its past four day’s gain of over 20% on the BSE, after the company reported 53.6% year on year growth in its net profit at Rs 390 million in March 2018 quarter (Q4FY18). The operational revenue during the quarter under review grew 10% at Rs 2,005 million over the previous year quarter. READ MORE
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Just Dial zooms over 50% in one week post stellar Q4 results
Just Dial has rallied 23% to Rs 625, extending its past four day’s gain of over 20% on the BSE, after the company reported 53.6% year on year growth in its net profit at Rs 390 million in March 2018 quarter (Q4FY18). The operational revenue during the quarter under review grew 10% at Rs 2,005 million over the previous year quarter. READ MORE
2:02 PM![]()
Market Check
| S&P BSE Sensex | 35,181.14 |
 | 0.73% |
|---|---|---|---|
| Nifty 50 | 10,692.85 |
| 0.83% |
| S&P BSE 200 | 4,648.50 |
| 0.92% |
| Nifty 500 | 9,305.55 |
| 0.98% |
| S&P BSE Mid-Cap | 16,107.24 |
| 1.28% |
| S&P BSE Small-Cap | 17,397.57 |
| 1.44% |
1:43 PM![]()
Equirus on Triveni Turbine
Triveni Turbine (TRIV) delivered flat sales growth (+1%) yoy for FY18 while margins remained under pressure due to a higher share of domestic revenues. Order inflows rose 17% in FY18 to Rs 8.3bn, leading to a strong closing order book of Rs 7.1bn with a higher share of exports at ~48%. Domestic market declined by ~2% in FY18 even as enquiries improved. We expect the domestic market to remain under pressure in the near term while growth to be led by exports in FY19E/FY20E. With a healthy FY18 closing order book and a strong enquiries pipeline, we upgrade the stock to LONG
Triveni Turbine (TRIV) delivered flat sales growth (+1%) yoy for FY18 while margins remained under pressure due to a higher share of domestic revenues. Order inflows rose 17% in FY18 to Rs 8.3bn, leading to a strong closing order book of Rs 7.1bn with a higher share of exports at ~48%. Domestic market declined by ~2% in FY18 even as enquiries improved. We expect the domestic market to remain under pressure in the near term while growth to be led by exports in FY19E/FY20E. With a healthy FY18 closing order book and a strong enquiries pipeline, we upgrade the stock to LONG
(from ADD) with a Mar’19 TP of Rs 129 (Rs 134 earlier) set at 35x TTM EPS.
1:32 PM![]()
Edelweiss on Capacit’e Infraprojects
Capacit’e Infraprojects (Capacit’e) has etched a name for itself as a quality contractor in the buildings space since its inception in August 2012; today, it is working with almost all major real estate developers in the country. We believe it is in a sweet spot, due to: (1) RERA driven consolidation in the realty space; (2) improving work profile; (3) ability to bag repeat orders; and (4) better balance sheet (negative net debt) & leaner working capital cycle (~75 days) versus peers.
We expect robust order book (book-to-bill at 4.3x) and likely diversification into public sector space to translate into 31% EPS CAGR over FY18-20, along with improvement in return ratios. Initiate coverage with ‘BUY’ and target price of Rs 397.
Capacit’e Infraprojects (Capacit’e) has etched a name for itself as a quality contractor in the buildings space since its inception in August 2012; today, it is working with almost all major real estate developers in the country. We believe it is in a sweet spot, due to: (1) RERA driven consolidation in the realty space; (2) improving work profile; (3) ability to bag repeat orders; and (4) better balance sheet (negative net debt) & leaner working capital cycle (~75 days) versus peers.
We expect robust order book (book-to-bill at 4.3x) and likely diversification into public sector space to translate into 31% EPS CAGR over FY18-20, along with improvement in return ratios. Initiate coverage with ‘BUY’ and target price of Rs 397.
1:31 PM![]()
Rating action
ICRA has downgraded the long-term rating outstanding on the Rs. 2000.0 crore NCD programme and Rs.490 crore term loans of IL&FS Transportation Networks Limited (ITNL) to [ICRA]A- (pronounced ICRA A minus) from [ICRA]A. The rating is placed on watch with developing implications.
ICRA has also downgraded the short-term rating outstanding on the Rs. 320.0 crore fund-based bank facilities and Rs.1000 crore commercial paper programme of ITNL to [ICRA]A2+ (pronounced ICRA A two plus) from [ICRA]A1. The rating is placed on watch with developing implications.
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First Published: May 28 2018 | 3:30 PM IST
