MARKET WRAP: Indices settle at record high led by L&T, Infosys, HDFC

Among sectoral indices, the Nifty Metal index settled 3% higher led by a sharp rise in the shares of Hindalco Industries and Jindal Steel & Power.

11:03 AM

INTERVIEW Wealth management industry is likely to grow at 10-15% over next 5 years, says Nitiin Rao, CEO, Reliance Wealth Management

How have the investing trends among the wealthy changed over the last two-three years? What is the road ahead?

 

Customers have become more aware of investment avenues in general and mature investors have also understood the correlation between distribution costs and the degree of complications in normal investment products. Coupled with the emergence of direct mutual fund investments and investment advisory practices, a trend has been seen where mature investors have moved towards low-cost investment or advisory/transaction fee-based investment practices READ MORE HERE

Nitin Rao, CEO at Reliance Wealth Management

11:01 AM

L&T Technology Services rallies 14% on strong Q1 results

Shares of L&T Technology Services (LTTS) have rallied 14% to Rs 1,485 per share on the BSE in early morning trade after the company reported a more-than-double net profit of Rs 1,981 million in June quarter (Q1FY19). The L&T group company had profit of Rs 980 million in the year ago quarter. READ MORE

10:45 AM

Cement shares rally as ACC June quarter earnings beat estimates

Shares of cement companies have rallied up to 13% on the BSE in early morning trade after ACC reported a better-than-expected consolidated net profit of Rs 3.29 billion for the June 2018 quarter. The company had profit of Rs 3.26 billion in year ago quarter. READ MORE

10:17 AM

Telecom stocks on a roll

COMPANY	LATEST()	CHG()	CHG(%)	VOLUME
REL. COMM.	13.55	0.32	2.42	1917448
IDEA CELLULAR	56.10	3.45	6.55	907429
TEJAS NETWORKS	276.00	21.30	8.36	51801
BHARTI AIRTEL	363.05	5.45	1.52	23743
TATA COMM	569.10	3.55	0.63	1158

10:14 AM

Anand Rathi on Page Industries

Driven by product launches, network expansion and operating-cost controls, strong ~20% revenue growth and ~30% PAT growth emerge from Page Industries’ FY18 annual report analysis. The company continued to generate positive operating cashflow and its OCF/ EBITDA grew to ~85% in FY18, from ~73% the year prior, driven by greater profit growth and better working-capital management.

10:10 AM

Sensex heat map

10:07 AM

DERIVATIVE WATCH

NIFTY OPTIONS WATCH

·         Additions in OI were seen in 11100, 11000 strike Puts while liquidation was seen at 11000, 11100 strike Calls indicating market is likely to remain positive in the near term.

 

·         Highest OI build-up is seen at 11100 strike Calls and 10800 strike Puts, to the tune of 3.42mn and 5.76mn respectively.

 

FII AND VIX

 

·         FIIs were net buyers in Cash to the tune of 259.37 Cr. and were net sellers in Index Futures to the tune of 603.54 Cr.

 

·         India VIX decreased by 3.92% to close at 13.00 touching an intraday high of 13.62.

(Source: Nirmal Bang)

10:05 AM

Edelweiss on ACC

With current cement prices being higher than Q2CY18 average, we see limited risk to our CY18E EBITDA. We believe, the pan-India player will benefit from the imminent rise in the industry’s clinker utilisation and, hence, retain CY19 estimates. Maintain ‘BUY’ with target price of Rs 1,817 (12x CY19E EV/EBITDA). Any effort by ACC to increase capacity (organic or inorganic expansion) will boost sentiments further.

10:04 AM

Edelweiss on Bajaj Auto

We remain concerned about the price war spreading to other segments (especially premium) where players like Hero do not have much to lose. We prune BJAUT’s FY20E EPS ~7% to account for lower realisation and margin. We also cut our valuation multiple to 16.0x (5% premium to long-term historical average) from 17.5x to factor in the price war risk. Maintain ‘HOLD’ with revised target price of Rs 2,899 (Rs 3,300 earlier).

9:47 AM

Street cheers L&T Finance's clean-up act; net interest income up 51%

Shares of L&T Finance on Monday recovered the entire 10 per cent it had lost in the past six months, on Monday following strong June 2018 quarter (Q1) results announced late-Friday. Yet, analysts see further upside as its balance sheet clean-up will support earnings growth. READ MORE

9:47 AM

Stocks in news

·         Syngene International extended R&D Agreement with Baxter Healthcare till 2024.

 

·         PNB received Rs 2,816 crore capital infusion from Indian government.

 

·         Allahabad Bank received Rs 1,790 crore capital infusion from Indian government.

 

·         Fitch revised UPL outlook from stable to negative.

 

·         Essel Propack started first phase of commercial production of laminated tubes in Assam.

 

·         Indian Energy Exchange to consider stock-split on Aug. 9.

 

·         Vedanta: Ground water around the company’s copper plant contaminated

(Source: IIFL report)

9:46 AM

IIFL on Hindustan Zinc

It has maintained its guidance of higher mined metal output for FY19 and also maintained its CoP target of US$950-975/ton despite the increase in employee costs. The management mentioned that they are on track to increase output to 1.2mtpa on mined metal in FY20.

Costs pressures have not eased as linkage coal supply has been lower than contracted and carbon costs have remained high. We expect zinc prices to bounce back from current levels due to dwindling inventory levels. Post the sharp correction we upgrade our rating to Buy with a revised target price of Rs.318

9:44 AM

TOP CONTRIBUTORS TO SENSEX'S GAIN TODAY

COMPANY	LATEST	CHG(RS)	CHG(%)	FREE FLOAT MKT CAP (RS CR)	CONTRIBUTION (POINTS)
HDFC BANK	2167.90	10.15	0.47	210795.90	24.74
MARUTI SUZUKI	9846.55	149.40	1.54	61497.20	24.64
HIND. UNILEVER	1705.20	18.60	1.10	60825.93	16.48
H D F C	1974.00	7.40	0.38	193778.42	14.49
INFOSYS	1361.00	5.25	0.39	218668.11	13.02

9:35 AM

Sebi warns heads of asset management companies against 25 malpractices

The Securities and Exchange Board of India (Sebi) has written to the heads of asset management companies (AMCs), warning against 25 malpractices committed by the Rs 23-trillion industry. The regulator, in a four-page letter dated July 9, has also warned fund houses against breaches and demanded corrective measures. READ MORE

9:22 AM

Nifty sectoral trend