Markets shake off Korea tensions: Sensex ends 107 pts higher, Nifty at 9952

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1:20 PM

BUZZING STOCK

D-Link (India) rose 3.16% to Rs 93.05 on BSE, with the stock recovering on bargain hunting after Monday's slide triggered by company's weak Q1 results.

 

It reported net loss of Rs 10.59 crore in Q1 June 2017 as against net profit of Rs 0.51 crore in Q1 June 2016. Net sales declined 39% to Rs 92.17 crore in Q1 June 2017 over Q1 June 2016.

1:00 PM

Over 200 BSE-500 stocks under-perform since August

 

As the markets remain in a consolidation mode after the S&P BSE Sensex fell 2.6% (873 points) from its closing high of 32,575, hit on August 1, 2017, there are over 200 stocks in the BSE500 index that underperformed the indices and fell up to 58% during this period. Meanwhile, Nifty50 index also cracked 1.9% (201 points) from its closing high of 10,114. READ FULL REPORT HERE

1:00 PM

IPO Review: Bharat Road Network Ltd

 

Incorporated in 2006, BRNL is a BOT company focused on development, operation & maintenance of road projects. Currently, it has six BOT projects. Out of these, five are complete/partially complete. Residual concession period for its BOT projects is 18.5 years. 

 

Key concerns for BRNL:- i) all subsidiaries, associates companies made losses in last two years ii) delay in project construction may lead to cost overrun for under construction/new projects and ii) it has pledged a portion of its shares in subsidiaries and associates. 

 

The company is looking to raise around Rs 601 crore (at Rs 205/share) with a fresh issue of nearly 2.93 crore shares. Post IPO, promoter & promoter group’s stake would be reduced to 65.1%.

 

At the higher end of IPO price band of Rs 205, the stock is valued at 1.4x FY17 P/BV (post issue), which appears to be at par with other established player such as IRB Infrastructure (1.4x FY17 P/BV). Looking at the quality of projects (most projects commissioned in the past few years), we believe it should be at a discount to IRB

 

 

Source: ICICI Securities

12:56 PM

Reliance Securities on Coal India

 

We believe that CIL’s current stock price has discounted decline in e-auction coal prices. We expect volume and realisations to recover in FY18E. Moreover, valuations of 11.5x FY19E EPS seem to be inexpensive.

 

Improvement in the policy environment and infrastructure spend coupled with manufacturing activities will aid in reviving the demand environment for the power sector thereby higher coal demand. Reiterate our BUY recommendation on the stock with a Target Price of Rs 301

12:43 PM

Nifty nears 9,900 

Top five losers on the index 

12:30 PM

Markets turn flat

 

At 12:30 pm, the Sensex was trading at 31,702, down 0.24 points, while the Nifty50 was ruling at 9,911, down 1 points. 

12:05 PM

Jaypee Infratech erases gains, slips 5%

 

After witnessing a relief rally on Monday post Supreme Court stayed National Company Law Tribunal's (NCLT) order initiating insolvency proceedings against Jaypee Infratech, the company erased all its gains to fall as much as 4.8% to Rs 17.60 in intra-day on Tuesday. The stock gained 4.8% on Monday after the Apex Court ruling came out. READ MORE

11:57 AM

Japan Aug services PMI 

 

Japan's services sector expanded in August at the slowest rate in six months as the pace of new orders eased, a private survey showed on Tuesday in a sign the economy is losing some momentum after this year's solid gains.

 

The Markit/Nikkei Japan Services Purchasing Managers Index (PMI) fell to a seasonally adjusted 51.6 from 52.0 in July.

11:41 AM

Edelweiss Securities on Sun TV

 

Star India has bagged the Indian Premier League’s (IPL) digital and television media rights for the next five years for a whopping Rs 16300 crore. Moreover, Vivo also retained the IPL title sponsorship at bid price of Rs 2200 crore for 5 years. It is debatable whether IPL will be profitable for Star India (media rights), Sun TV (owner of Sunrisers Hyderabad) has emerged clear winner as higher media and sponsorship rights will bolster its revenues. Sun TV also stands to benefit from decline in franchise cost with the change in fee structure from fixed (Rs 85. 5 crore) to 20% of revenues (lower cost during bad years), leading to upside of Rs 50 crore (pari passu). Maintain ‘BUY’.

11:20 AM

Buzzing stock

Hotel Leelaventure rallied over 8% to Rs 25, its highest level in three months, following news reports that US private equity fund Marigold Capital & Investments is looking to buy company’s hotel in Chennai. BSE has sought clarification from the company with reference to the same news. The reply is awaited.  

11:05 AM

Coal India: There's good news finally

 

For Coal India, which has lost almost a third of its market value from the highs seen in August last year and having touched its all-time intra-day low of Rs 234 on August 11, 2017, things may be turning around. READ MORE

10:42 AM

Consumer stocks and premium valuations

 

The reality is that disruption is underway even in the consumer space. Be it packaged food or consumer products, the moats around these businesses are under threat. Current valuations and investor thinking do not seem to be adjusting for this oncoming disruption. READ FULL VIEW HERE

10:38 AM

Morgan Stanley on ECB meeting

 

The ECB is unlikely to announce QE tapering at this week's meeting. We think that it'll likely do so at the following one in late October. The upcoming meeting should see a change in the QE easing bias. We expect the inflation projections to come down, but to still show an upward trend in core

10:36 AM

EDELWEISS ON AUTO SECTOR

 

The robust growth momentum seen in July extended across segments in August as well. Inventory re-stocking post GST rollout and early festive season lent impetus to PVs, 2Ws and tractors, while  M&HCVs sprung biggest surprise. We attribute the zest to normalising production post BS-IV and replacement led demand. We expect tonnage growth in M&HCVs to sustain higher than volumes (similar to July – refer chart 2). 

 

Key takeaways: a) YoY PVs grew 17%, 2W volumes moved up 14% (scooter led) and M&HCV grew 34% YoY; b) higher ticket segments (PVs and premium bikes) maintained strong demand traction; c) Maruti Suzuki (MSIL) and Tata Motors (TTMT) gained share in PVs and M&HCVs, respectively, while Hero MotoCorp (HMCL) lost share in 2Ws. 

 

Our pecking order in auto space remains - Ashok Leyland (AL; profitable market share gains), Eicher Motors (EIM; structural premiumisation play) and MSIL (widening gap with peers)

10:35 AM

Nikkei India Services PMI

 

Registering 47.5 in August, the seasonally adjusted Nikkei India Services PMI Business Activity Index pointed to a second successive decline in output. Rising from 45.9 in July, however, the latest figure was indicative of a softer rate of reduction that was moderate overall. The downturn was often associated with the implementation of the GST, though there were also mentions of shortages of inputs