MARKET WRAP: Sensex falls 216 pts, Nifty fails to hold 10650; banks drag
Benchmark indices ended lower on global correction and weaker rupee
 "Markets, Up, Down, BSE, NSE, Stocks")
Photo: Shutterstock.com
10:32 AM
Warship maker Garden Reach Shipbuilders gets Sebi's go ahead for IPO
State-owned Garden Reach Shipbuilders and Engineers has received markets regulator Sebi's go ahead to float an initial public offering. The warship maker had filed its draft red herring prospectus (DRHP) with Sebi on March 26 and obtained its "observations" on May 22, according to the latest update with the markets watchdog. READ MORE
10:18 AM
Shares of Larsen & Toubro (L&T) were trading 3% higher at Rs 1,421 per share on the BSE in early morning trade, extending their 5% gain in the past one week, after the company reported better than expected operational performance in March 2018 (Q4FY18). The stock was 4% away from its all-time high of Rs 1,470 touched on February 1, 2018 on the BSE in intra-day trade. READ MORE
Larsen & Toubro extends gains on strong Q4 operational performance
Shares of Larsen & Toubro (L&T) were trading 3% higher at Rs 1,421 per share on the BSE in early morning trade, extending their 5% gain in the past one week, after the company reported better than expected operational performance in March 2018 (Q4FY18). The stock was 4% away from its all-time high of Rs 1,470 touched on February 1, 2018 on the BSE in intra-day trade. READ MORE
10:00 AM
Market Check
| S&P BSE Sensex | 35,185.07 | 0.06% | |
| Nifty 50 | 10,690.45 | 0.02% | |
| S&P BSE 200 | 4,652.60 | 0.07% | |
| Nifty 500 | 9,314.30 | 0.07% | |
| S&P BSE Mid-Cap | 16,134.17 | 0.09% | |
| S&P BSE Small-Cap | 17,476.88 | 0.29% | |
9:45 AM
Private placement of debt drops to Rs 6.5 trillion in FY18
The increasing reliance on private placement of debt seems to have reversed course. Private placements raised Rs 6.55 trillion in 2017-18 (FY18), or half a trillion lower than it raised the previous year, show numbers from market-tracker Prime Database.
This breaks a three-year trend which had seen the value of private placements more than double since FY14. Fewer issuers coming to the market, and rising interest rates are said to have contributed to the slowdown. READ MORE
9:30 AM
Sebi likely to allow futures trading in petrol and diesel
The Securities and Exchange Board of India (Sebi) is considering allowing futures trading in petrol and diesel, according to sources. The petroleum and natural gas ministry has already approved the proposal. Petrol and diesel are among the 90-plus commodities that have been approved by the government for derivatives trading.
Globally, petrol and diesel derivatives are traded on the Nymex and ICE exchanges. The proposal for trading in petrol and diesel derivatives was submitted by the Indian Commodity Exchange (ICEX) eight months ago. READ MORE
9:23 AM
EARNINGS L&T posts Rs 31.70 billion profit in Q4
Engineering conglomerate Larsen & Toubro (L&T) reported a 5 per cent year-on-year increase in its consolidated profit after tax (PAT) at Rs 31.70 billion for the quarter ended March 2018 on improved operational performance, surpassing the Bloomberg consensus estimate of Rs 29.95 billion. The company, which beat its revised guidance for order inflow in the last financial year, remains optimistic of a promising year ahead for new orders. READ MORE
EARNINGS IMPACT
9:19 AM
Sectoral Trend
9:17 AM
Top Sensex gainers and losers
9:16 AM
Markets at Open
At 9:16 am, the S&P BSE Sensex was trading at 35,135, down 30 points while the broader Nifty50 index was ruling at 10,668, down 20 points
At 9:16 am, the S&P BSE Sensex was trading at 35,135, down 30 points while the broader Nifty50 index was ruling at 10,668, down 20 points
9:13 AM
COMMENT
Considering the cheap valuation, opportunity for further consolidation in the OPSB space, we continue to recommend a BUY on the South Indian Bank with a target price of Rs.40 (which is 1.4x its FY2020E Adjusted Book Value of Rs.29.4) and Karnataka Bank with a target price of Rs.200 (which is 1.3x its FY2020E Adjusted Book Value of Rs.150).We believe that in the long-term (with around 3 years investment perspective), this stock can possibly become a multi-bagger if the anticipated consolidation in the OPSBs gathers momentum.
(Source: Equinomics Research)
Considering the cheap valuation, opportunity for further consolidation in the OPSB space, we continue to recommend a BUY on the South Indian Bank with a target price of Rs.40 (which is 1.4x its FY2020E Adjusted Book Value of Rs.29.4) and Karnataka Bank with a target price of Rs.200 (which is 1.3x its FY2020E Adjusted Book Value of Rs.150).We believe that in the long-term (with around 3 years investment perspective), this stock can possibly become a multi-bagger if the anticipated consolidation in the OPSBs gathers momentum.
(Source: Equinomics Research)
9:12 AM
IIFL on L&T
For FY19, management has guided growth of 10-12% in order inflow and 12-15% in revenues, coupled with 25bps of margin expansion. The management expects infrastructure and hydrocarbon to drive growth, both in order inflow and execution. The company targets end-FY19 working capital as a % of sales to decline towards 18% from 19.2%. Divestment of Electrical & Automation segment to take 12-18 months for completion.
Recent transfer of road assets through the InvIT route would enable IDPL to explore new growth opportunities in BOT/HAM projects. LT plans to achieve its RoE target of 18% by FY21 on the back of higher execution, margin improvement and sale of non-core assets. We upgrade our rating to BUY with a revised target price of Rs.1,590.
For FY19, management has guided growth of 10-12% in order inflow and 12-15% in revenues, coupled with 25bps of margin expansion. The management expects infrastructure and hydrocarbon to drive growth, both in order inflow and execution. The company targets end-FY19 working capital as a % of sales to decline towards 18% from 19.2%. Divestment of Electrical & Automation segment to take 12-18 months for completion.
Recent transfer of road assets through the InvIT route would enable IDPL to explore new growth opportunities in BOT/HAM projects. LT plans to achieve its RoE target of 18% by FY21 on the back of higher execution, margin improvement and sale of non-core assets. We upgrade our rating to BUY with a revised target price of Rs.1,590.
9:01 AM
Markets at pre-open
(Source: BSE)
| Index | Current | Pt. Change | % Change |
| S&P BSE SENSEX | 35,178.91 | +13.43 | +0.04 |
| S&P BSE SENSEX 50 | 11,177.44 | -7.61 | -0.07 |
| S&P BSE SENSEX Next 50 | 33,280.82 | -0.01 | 0.00 |
| S&P BSE 100 | 11,016.48 | -6.36 | -0.06 |
| S&P BSE Bharat 22 Index | 3,590.27 | +8.73 | +0.24 |
(Source: BSE)
8:52 AM
Top stock ideas from Anand Rathi Research for today's trade
Buy BSE
Target: Rs 920
Stop Loss: Rs 810
BSE has provided a breakout from the sideways channel/rectangle pattern with a buy crossover in its momentum indicator MACD from the zero reference line which is something positive for the bulls. The rise prior to this was a five waves rising structure, hence the probability of next impulse on the way up is quite high. So, we recommend to buy this for the target of 920 with a stop loss of 810. READ MORE
8:48 AM
Today's picks: From L&T to BPCL, hot stocks to watch on Tuesday
L & T
Current price: Rs 1,376
Target price: Rs 1,400
Keep a stop at Rs 449 and go short. Add to the position between Rs 438 and Rs 440. Book profits at Rs 436.
BPCL
Current price: Rs 402
Target price: Rs 410
Keep a stop at 396 and go long. Add to the position between 407-409. Book profits at 410. READ MORE
8:45 AM
Nifty has crossed the hurdle of 10,650 levels decisively which gives a further upward potential target of 10,750-10,800 levels, however a one way move of around 270 points, we can see some profit booking to consolidation with volatility as we are approaching the expiry day. The support for the day is seen at 10,640 levels while the resistance would be at 10,740 levels. READ MORE
Nifty outlook from Prabhudas Lilladher for today
Nifty has crossed the hurdle of 10,650 levels decisively which gives a further upward potential target of 10,750-10,800 levels, however a one way move of around 270 points, we can see some profit booking to consolidation with volatility as we are approaching the expiry day. The support for the day is seen at 10,640 levels while the resistance would be at 10,740 levels. READ MORE
Topics :
Don't miss the most important news and views of the day. Get them on our Telegram channel
First Published: May 29 2018 | 3:30 PM IST
