MARKET WRAP: Global cues, K'taka result drag Sensex 156 pts; PNB down 12%

Benchmark indices fell on Wednesday on doubts over the composition of the next government in Karnataka

10:16 AM

PSBs under pressure; PNB, Syndicate, Allahabad Bank, OBC hit 52-week low

Shares of public sector banks (PSBs) were under pressure, falling upto 12% in early morning trade of the National Stock Exchange (NSE) after most these banks reported weak set of numbers for the quarter ended March 2018 (Q4FY18).
 

Total nine PSBs- Allahabad Bank, Bank of Maharashtra, Corporation Bank, Dena Bank, Oriental Bank of Commerce, Punjab & Sindh Bank, Punjab Nation Bank (PNB), Syndicate Bank and United Bank of India - were hit their respective 52-week lows on the NSE in intra-day trade on Wednesday. READ MORE

9:59 AM

Market Check

 

S&P BSE Sensex	35,291.49		-0.71%
Nifty 50	10,716.20		-0.79%
S&P BSE 200	4,642.64		-0.76%
Nifty 500	9,291.50		-0.79%
S&P BSE Mid-Cap	15,927.53		-0.88%
S&P BSE Small-Cap	17,410.41		-0.66%

9:53 AM

Equities have not peaked yet and rally may continue beyond 2019: BofA-ML

A majority of the money managers are of the view that equity markets have not yet peaked and the rally may continue beyond 2019, reveals the Global Fund Manager Survey conducted by Bank of America Merrill Lynch (BofA-ML). Three-fourths of the responded said the equities have not peaked yet, while a fifth said January marked the top, the brokerage said. READ MORE

9:40 AM

MUST READ Caught between macro & economy, market wants comfort of political stability

Election results impact sentiment and market far more than corporate or economic fundamentals. General Election results have larger impact on sentiment and market than state elections. The last three general election years, viz 2004, 2009 and 2014 returns were impacted by election results.

 

As a fund manager picks up monthly data to sharpen their annual forecast of company performance, markets factor in available data point to forecast future. CLICK HERE TO READ MORE

9:30 AM

STOCKS IN NEWS NCLT admits RCom in insolvency

9:25 AM

EARNINGS IMPACT Punjab National Bank falls over 9% on poor Q4 results

9:18 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 35,412, down 121 points while the broader Nifty50 index was ruling at 10,752, down 50 points

9:08 AM

Lupin slips to a Rs 7.8 bn loss in Q4 on one-time impairment provisions

 

Drug maker Lupin aims to maintain 19-21 per cent Ebitda (earnings before interest, taxes, depreciation and amortisation) margin in FY19 on the back of cost optimisation and new product launches even as it reported a Rs 7.83 billion loss in the fourth quarter (Q4) of FY18.

 

A 21.1 per cent fall year-on-year in North American formulation sales was largely responsible for the company posting a 5.2 per cent decline in revenues in Q4. READ MORE

9:01 AM

Market at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,607.96	+64.02	+0.18
S&P BSE SENSEX 50	11,311.11	+4.30	+0.04
S&P BSE SENSEX Next 50	32,834.77	-41.47	-0.13
S&P BSE 100	11,106.86	+2.52	+0.02
S&P BSE Bharat 22 Index	3,587.61	+4.93	+0.14

(Source: BSE)

8:57 AM

Prabhudas Lilladher on HUL

We remain positive on the long term structural story; however, expect back ended returns post 53% returns in past one year. We retain Accumulate with a target price of Rs1555 at 43xSept20 EPS (Rs1387, 42xMarch 20EPS earlier).

8:57 AM

Bonds, rupee lose big as RBI decides to stay clear

 

The currency and bond markets lost sharply on Tuesday in the absence of support from the Reserve Bank of India (RBI).

 

Even as the Karnataka election outcome showed no clear victory for either the BJP or the Congress, market participants blamed the RBI’s inaction for the losses.

 

The rupee closed at 68.11 a dollar from its previous close of 67.52, and the 10-year bond yields rose for the fifth straight session to close at 7.90 per cent, from its Monday’s close of 7.83 per cent. READ MORE

8:55 AM

Fraud-hit PNB posts biggest ever quarterly loss of Rs 134.17 billion in Q4

 

Scam-hit Punjab National Bank’s (PNB’s) loss in the fourth quarter of 2017-18 has been the highest quarterly loss reported by any bank in India ever. This was owing to fraudulent loans worth Rs 143 billion issued to jewellery firms belonging to Nirav Modi and Mehul Choksi.

 

The Reserve Bank of India’s (RBI’s) new provisioning norms added to the bank’s woes as its net loss ballooned to Rs 134 billion in the March-ended quarter, compared to a net profit of Rs 2.6 billion in the year-ago period. READ MORE

8:55 AM

Fundamental view on HUL

The growth drivers for HUL are: (1) Drive penetration in Central India (growing at ~1.5x all India avg. growth), (2) Naturals segment (Lever Ayush and Indulekha) is growing ~2.5x HUL average, (3) Futuristic products like liquid wash, green tea etc. are growing ~2x of HUL average and (4) Premiumisation is playing out (only ~1/4th of portfolio is premium). 

Our thesis remains intact and we believe earnings growth will sustain driven by recovery in rural demand, premiumisation, new product launches, strong pricing power (pass on inflation) and strong brand investments. We upgrade our multiple to 45x (43x earlier) P/E on Mar-20EPS to arrive at a target price of Rs 1,615. We re-iterate BUY.

(Source: HDFC Securities)