MARKET WRAP: Banks push Sensex 277 pts higher; RIL up 2%, Infy gains 1%
Benchmark indices rose on Monday with heavyweights ASian Paints and Reliance Industries driving the indices highe
 "MARKETS LIVE: Sensex up over 200 pts as bank stocks rally, RIL, Infy up 1%")
SMEs at large do not understand forex and the concept of hedging, which banks often exploit. (Photo: iStock)
10:58 AM
NCLT VERDICT
NCLT: Management is more accountavle to shareholders in present regime
NCLT: Management is more accountavle to shareholders in present regime
10:58 AM
NCLT VERDICT
NCLT: Mistry openly went gaainst board and directors
NCLT: Mistry openly went gaainst board and directors
10:57 AM
NCLT VERDICT
NCLT: Do not agree that Ratan Tata acted as shadow director
NCLT: Do not agree that Ratan Tata acted as shadow director
10:56 AM
NCLT VERDICT
NCLT: Have found no merit in legacy issues raised by Mistry
NCLT: Have found no merit in legacy issues raised by Mistry
10:56 AM
NCLT VERDICT
NCLT: Board of Directors are competent to remove Executive Chairman
NCLT: Board of Directors are competent to remove Executive Chairman
10:54 AM
NCLT VERDICT
NCLT dismisses Cyrus Mistry's plea against Tata Sons and others
Alert: Mistry had alleged operational mismanagemnet and opression of minority shareholders
NCLT dismisses Cyrus Mistry's plea against Tata Sons and others
Alert: Mistry had alleged operational mismanagemnet and opression of minority shareholders
10:46 AM
NCLT order on Tata-Mistry battle today: Key points about the bitter feud
The National Company Law Tribunal (NCLT) is expected to pronounce on Monday its judgement on a petition filed by Cyrus Mistry challenging his ouster as chairman of the Tata Sons group, bringing the 18-month-old Tata-Mistry battle to a possible end.
Earlier, NCLT Mumbai's Special Bench of B S V Prakash Kumar and V Nallasenapathy was expected to deliver its order in the case on July 4. However, it adjourned the pronouncement to July 9 as the judgement was not ready READ MORE HERE
Ratan Tata and Cyrus Mistry
10:38 AM
Jefferies on Yes Bank
Rating BUY
Price Target Rs 440
YES Bank has had two favorable developments - last night its credit rating was upgraded to 'AAA' for the first time by CARE Ratings, and a few days back it received a licence from SEBI to run a mutual fund. The former benefits incremental borrowing cost by about 30-40 bps and helps the bank compete on better terms and could be NIM-accretive, while the latter is another cog in the wheel in its retail journey. Retain Buy with a PT of Rs 440
10:37 AM
IIFL on FMCG sector
We expect Nestlé, Britannia and VBL to witness a strong 1QFY19, while results for JYL and Emami are expected to be weak. HUL too may post good results but this seems more than factored into the stock price. In fact, valuations for most stocks seem to have priced-in a large part of the earnings recovery and, to that extent, remain expensive. We reiterate preference for GSK Consumer in the current environment.
10:36 AM
We estimate our retail universe’s Q1FY19 revenue, EBITDA and PAT to grow 7.6%, 15.2% and 20.9% YoY, respectively (28%, 39% and 54% YoY in Q1FY18 respectively). In Q1FY19, there is a high base for most of the apparel retailers and Titan, thus growth this quarter will look muted. Also for most of the discretionary consumption (esp garments and jewellery), there was an impact due to inauspicious days (Adhik Mas).
Titan’s jewellery segment had strong base of 54% growth and hence growth would look soft. SSSG for most of the apparel retailers is likely to be soft, except Trent. For grocery retailers, SSSG run-rate will continue to remain buoyant. For QSR companies, we expect strong SSSG trend to sustain. For Wonderla, we expect slight growth in ARPU across parks led by non F&B revenues
(Source: Edelweiss Research)
Retail - Q1FY19 result preview - Consumption buoyancy evident
Titan’s jewellery segment had strong base of 54% growth and hence growth would look soft. SSSG for most of the apparel retailers is likely to be soft, except Trent. For grocery retailers, SSSG run-rate will continue to remain buoyant. For QSR companies, we expect strong SSSG trend to sustain. For Wonderla, we expect slight growth in ARPU across parks led by non F&B revenues
(Source: Edelweiss Research)
10:28 AM
Nifty firms set for blockbuster quarter; commodity prices to boost top line
Corporate earnings for 2018-19 (FY19) are expected to start on a strong wicket for India’s top listed companies, driven by higher commodity and energy prices and a low base last year as companies were recovering from demonetisation and also preparing for the new regime of goods and services tax (GST) from July 1.
The combined net profit of India’s top 50 listed companies that are part of the Nifty50 index is estimated to rise by 14.2 per cent on a year-on-year (YoY) basis during April-June 2018, the best in the last nine quarters. READ MORE
10:14 AM
MUST READ This stock zoomed 104% in 2018 after surging 220% in 2017 on FPI buying
Shares of V-Mart Retail hit a new high of Rs 3,036 per share, surging by 7% and extending their 14% gain in past three trading sessions on the BSE, after the company said that foreign portfolio investors (FPIs) have increased their stake by nearly one percentage points in April-June quarter (Q1FY19).
Thus far in the current calendar year 2018, V-Mart Retail has outperformed the market by surging 104% from Rs 1,488 on December 29, 2017 as compared to 5% rise in the S&P BSE Sensex. READ MORE
10:00 AM
Market Check
| S&P BSE Sensex | 35,858.35 | 0.56% | |
| Nifty 50 | 10,828.40 | 0.52% | |
| S&P BSE 200 | 4,658.05 | 0.62% | |
| Nifty 500 | 9,247.50 | 0.58% | |
| S&P BSE Mid-Cap | 15,524.66 | 0.86% | |
| S&P BSE Small-Cap | 16,218.34 | 0.99% | |
9:45 AM
EVENT UPDATE Edelweiss Securities on Sterlite Technologies
Sterlite Technologies (Sterlite) has acquired a 100% stake in Italian optical fiber cable (OFC) manufacturer Metallurgica Bresciana (Metallurgica) at an EV of EUR57mn. Metallurgica has 3mn fkm cabling capacity, which can be ramped up to 5mn fkm at minimal capex. The acquisition will help Sterlite expand its market presence in Europe, tap new tier-1 customers, augment product portfolio, and improve prospects due to customer proximity.
We believe that this acquisition is attractive given: 1) 10.8x P/E /7.7x EV/EBITDA TTM valuations; 2) potential operational synergies on account of efficient sourcing and financing; 3) over 20% IRR and a payback of less than five years; 4) ~9% EPS accretion. We believe that the acquisition with proximity to customers will create a stickier customer base; maintain ‘BUY’ with a target price of Rs 425
We believe that this acquisition is attractive given: 1) 10.8x P/E /7.7x EV/EBITDA TTM valuations; 2) potential operational synergies on account of efficient sourcing and financing; 3) over 20% IRR and a payback of less than five years; 4) ~9% EPS accretion. We believe that the acquisition with proximity to customers will create a stickier customer base; maintain ‘BUY’ with a target price of Rs 425
9:44 AM
MARKET COMMENT G Chokkalingam, founder & managing director, Equinomics Research
We remain optimistic on the long-term market outlook especially for the value stocks. We continue to advise investors to keep bringing in investments in a phased manner till December.
The risk to our outlook is that if the next government at the Centre becomes like the previous NDA regime which ran the government with support of 28 political parties with lot of pressures, then the domestic equity market can through longer bearish space. We believe that such political instability is most unlikely and also it is too early to panic on the same.
We remain optimistic on the long-term market outlook especially for the value stocks. We continue to advise investors to keep bringing in investments in a phased manner till December.
The risk to our outlook is that if the next government at the Centre becomes like the previous NDA regime which ran the government with support of 28 political parties with lot of pressures, then the domestic equity market can through longer bearish space. We believe that such political instability is most unlikely and also it is too early to panic on the same.
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First Published: Jul 09 2018 | 8:15 AM IST
