Sensex ends 71 pts down, Nifty at 10,360 levels; PSU Bank Index up 0.8%

Catch all the market action here.

10:58 AM

Market Check

S&P BSE Sensex	33,859.37		0.25%
Nifty 50	10,409.05		0.30%
S&P BSE 200	4,547.02		0.22%
Nifty 500	9,186.30		0.29%
S&P BSE Mid-Cap	16,451.71		0.14%
S&P BSE Small-Cap	17,884.95		0.16%

10:39 AM

Gitanjali Gems downfalls continue; stock tanks 52% in one week

Gitanjali Gems  is locked in lower circuit for the fourth straight trading sessions, down 10% at Rs 30.45 on the BSE and Rs 30.40 on the National Stock Exchange (NSE) with no buyers were seen on the counter. READ MORE

10:32 AM

Reliance Securities on Torrent Pharma

 

We trim down our earnings estimates by 35% and 12.9% for FY18E and FY19E, respectively to factor in the impact of acquisition, higher interest cost, depreciation and amortisation charges. Rolling over our estimates to FY20E, we maintain our BUY recommendation on the stock with a revised Target Price of Rs1,570 (from Rs1,450 earlier), valuing the stock at 20x of FY20E EPS.

10:26 AM

51% rise in SIP contribution to mutual funds so far this financial year

There is a 51% rise in systematic investment plan (SIP) contribution to mutual funds (MFs) so far this financial year. At a time the markets are facing headwinds and stocks have corrected over 10%, the inflows through the SIP mode has hit an all-time high of Rs 66.4 billion in January. This is over the 62% rise in the corresponding previous month. Total number of SIP accounts is nearly 20 million. READ MORE

10:14 AM

PNB scam and NPA crisis: Are we looking at a long-term bear market?

The Rs 14 billion scam at Punjab National Bank (PNB) has dominated headlines and shaped sentiment through the last week. Nobody is clear as to what the final damage across the banking system would be, since we don’t yet know which banks are exposed to the Letter of Undertakings (LoUs). There is some political fallout and there could be more, given the absconding jewellers’ connections with the high-and-mighty. It’s no secret that Indian banking is in dreadful shape. The Q3 results indicate that losses, as well as Non Performing Assets (NPAs), are still rising. READ MORE

10:13 AM

Commodity watch; Copper

 

Copper prices have traded firm over the past few months, with values hitting multi-month highs in the wake of relatively steady Chinese macros and slower growth in mine output. Most importantly, markets are bracing for a multitude of labor negotiations at Chilean mines which account for around 3-4mn tons of output. Threat of supply disruption along with signals of synchronized global economic recovery can potentially lift prices this year. 

 

Fondly known as Doctor Copper for its revered bellwether status, the reddish brown metal reflects a fairly healthy industrial & manufacturing activity across various geographies. While the evolving Electric Vehicles narrative would also provide impetus to the red metal, there's a consensus of tighter balance sheet over next few years. 

 

We sense markets would start factoring in a wider deficit later this year, with an expected price range of US$6,800-7,600/ton during 2018 first half, followed by an upside till US$7,900/ton by the year end.

 

(Source: IIFL)

10:11 AM

MARKET COMMENT: Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking

 

We may continue to expect Nifty retesting 10200 – 10033 in near future. Meanwhile, any bounce back towards 10456 – 10550 is likely to get sold into. Thus, short term traders should ideally avoid taking positions in the opposite direction as we generally see sharper corrective moves than rallies in a falling market. It’s a prudent strategy to stay light and remain stock specific for a time being

10:08 AM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,926.41	+151.75	+0.45
S&P BSE SENSEX 50	10,878.95	+54.47	+0.50
S&P BSE SENSEX Next 50	33,984.48	+139.96	+0.41
S&P BSE 100	10,802.20	+52.57	+0.49
S&P BSE Bharat 22 Index	3,588.78	+8.11	+0.23

10:06 AM

IT stocks gain ground (Image source: NSE)

9:50 AM

Nomura on Zee Entertainment

 

We believe the initial content library of Zee5 looks promising as it caters to the entire gamut of subscribers in both regional and English entertainment segment. Initial pricing is also competitive, at par with Amazon Prime (~Rs 999 per year), lower than Netflix (Rs 500 per month) or Hotstar (Rs 199 per month) and higher than AltBalaji (~Rs 33 per month). Going ahead, continuous addition of new content would be important to keep subscribers hooked on to the platform and is a key thing to watch out for

9:48 AM

Edelweiss on Crisil

 

CRISIL’s Q4CY17 results came below estimates with revenue growth of ~3% YoY and EBITDA declining by 6% YoY. Revenue fell in the rating segment by 1.6% YoY (grew ~3% for CY17) as credit growth in bank loans and SME segments remained weak, which offset the buoyancy in bond ratings. Revenue growth in research segment remained subdued at 3.6% YoY (up ~8% for CY17) due to adverse currency movement (USDINR appreciated by ~4% YoY during the quarter). 

 

While credit growth is picking up and bond market developments are positive, SME segment being stalled is weighing on ratings segment. Further, research is yet to show broad-based uptick, making us trim our CY18E EPS by ~7%. Maintain ‘HOLD’ with DCF-based target price of Rs 1,868

9:47 AM

Vakrangee extends fall on FPI selling

Varkangee is locked in lower circuit for the second straight day, down 5% at Rs 221 on the National Stock Exchange (NSE) in early morning trade, after the foreign portfolio investors (FPIs) sold equity shares of the company through open market. READ MORE

9:36 AM

BSE smallcap: Aptech, Amtek Auto among top gainers, Gitanjali top loser

9:33 AM

BSE midcap: 3M India, SAIL top gainers, Vakrangee top loser

9:29 AM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,813.21	+38.55	+0.11
S&P BSE SENSEX 50	10,838.83	+14.35	+0.13
S&P BSE SENSEX Next 50	33,857.50	+12.98	+0.04
S&P BSE 100	10,762.26	+12.63	+0.12
S&P BSE Bharat 22 Index	3,578.12	-2.55	-0.07

(Source: BSE)