MARKET WRAP: Sensex ends 318 pts higher ahead of RBI board meet outcome

The Nifty PSU Bank index ended 0.75 per cent lower weighed by Oriental Bank of Commerce and State Bank of India (SBI).

11:32 AM

RBI net sells $18.66 bn of dollars between Apr-Sept in spot market

The Reserve Bank of India (RBI) net sold $18.662 billion of the greenback in the spot market, during the first seven months of the current financial year, according to RBI data.

 

In the same period last year, RBI was a net purchaser of the greenback, as it had bought $16.301 billion. In September, 2018, RBI sold $31 million of the US currency in the spot market on a net basis, as per the latest RBI data. READ MORE

11:26 AM

RBI board meet: S Gurumurthy stirs debate by chiding central bank

 

India’s monetary policy makers and government officials will meet Monday in a board meeting that promises to be anything but its usual dull affair.Locked in a power struggle over how much capital the central bank needs and how tough its lending rules should be, a trained accountant parachuted into the Reserve Bank of India’s board by the government in August may be key to whether a compromise can be found or whether the already public spat turns even uglier. READ MORE

11:18 AM

11:16 AM

Nifty PSU Bank down 0.5 per cent

11:12 AM

ANDY MUKHERJEE India's central bank dilemma: Here's why RBI's Urjit Patel should hold firm

An institution with money-printing powers should have no difficulty keeping the lights on. But could it continue to act effectively after depleting its net worth? READ MORE HERE

11:09 AM

11:07 AM

RBI may blink on PCA, not on NBFC window in today's board meeting

 

The Reserve Bank of India (RBI) may agree to bring some public sector banks (PSBs) out of the prompt corrective action framework (PCA), but it is not likely to accede to the government’s demand to set up a special refinance window for non-banking financial companies (NBFCs) at the board meeting of the central bank on Monday, sources said. Read more

 

10:59 AM

Even as realty sector lags, large listed developers are gaining share

 

The BSE Realty sector has been one of the biggest losers among sectoral indices in 2018 so far, down over 38 per cent. About half of that loss has come over the last couple of months due to the liquidity problems facing non-banking financial companies (NBFCs). Construction financing was helping sustain the real estate sector amid slow movement of inventory and muted cash flows. Read more

10:46 AM

Eicher Motors gains 16% in 1-week as strike called-off at Oragadam facility

 

Shares of Eicher Motors have been trading higher for the fifth straight day, up 2.4% at Rs 25,340 per share, gaining 16% in one week on National Stock Exchange (NSE), after the complete workforce at the Royal Enfield manufacturer’s Oragadam facility has called-off the strike. Read more

10:33 AM

India Inc Q2 earnings growth highest in 7 quarters, combined net up 16.2%

Corporate India reported a good set of numbers during the July-September 2018 quarter, thanks to gains from a low base during the corresponding quarter last fiscal year and a better-than-expected showing by metals and mining firms. The combined net profit of 1,889 companies across sectors was up 16.2 per cent year-on-year (YoY) during the second quarter (Q2) of 2018-19, growing at the fastest pace in the last seven quarters. Earnings were down 10.8 per cent YoY during Q2 of last fiscal year. READ MORE

10:22 AM

NEWS ALERT RBI board meeting begins in Mumbai

10:16 AM

Tata Investment surges 8% after board approves Rs 4.5 billion share buyback

Shares of Tata Investment Corporation have surged 8% to Rs 890 per share on BSE in early morning trade after its board approved a proposal to buyback 8.17% of the total paid-up equity share capital of the company through tender offer.
 

The buyback will be for an aggregate amount not exceeding Rs 4,500 million at Rs 1,000 per equity share. The buyback price is 22% higher as compared to Friday’s closing price of Rs 823 per share on BSE. It touched a 52-week high of Rs 955 on January 10, 2018. READ MORE

9:59 AM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,556.07	+98.91	+0.28
S&P BSE SENSEX 50	11,190.94	+32.46	+0.29
S&P BSE SENSEX Next 50	32,294.91	+92.71	+0.29
S&P BSE 100	10,978.20	+31.88	+0.29
S&P BSE Bharat 22 Index	3,465.41	+3.81	+0.11

9:52 AM

Edelweiss on Den Networks

Den Networks’ (Den) Q2FY19 revenue, EBITDA and PAT came in line with our estimates. Key highlights: i) consolidated revenue fell ~5% YoY (flat QoQ); ii) cable subscription revenue grew ~5% YoY led by 9% YoY growth (up ~3% QoQ) in ARPU; iii) content cost jumped ~12% YoY denting EBITDA margin by ~850bps YoY; and iv) EBITDA dipped ~38% YoY.

Factoring potential benefits from the Jio deal, TRAI’s tariff order and the digitisation push, we are revising up FY20E EV/EBITDA to 8x (from 4x) to arrive at revised target price of Rs 73 (Rs 50 earlier). We will keep tabs on developments post the Jio deal and the impact of TRAI’s tariff order implementation. Maintain ‘HOLD’

9:50 AM

IIFL on cement sector

The September-2018 quarter results for majority of the companies in our cement universe were weaker than estimated, largely due to higher than expected costs. While companies benefitted from decline in freight expenses due to change in axle load norms, all other costs increased more than anticipated and, hence, negated the benefit.

Overall like-to-like volume growth for our universe was 10% (in line); we estimate YoY industry growth of 10% for the quarter. We have downgraded Ebitda estimates up to 8% post the results, except for HeidelbergCement India (HCIL), for which we have upgraded Ebitda estimates by 15%/5% for FY19/FY20 to reflect strength in the central region.

While we expect costs to decline owing to the recent drop in crude oil/petcoke prices, producers’ retaining the benefit is key for earnings estimates to be met. We remain negative on the sector, as we expect demand growth to decelerate for the next 3-4 quarters on account of the low-base benefit waning and pricing pressure largely continuing, given the likely acceleration in capacity additions