MARKET WRAP: Indices slip as financials weigh; Rupee hits new low of 70.3/$

The Nifty Bank index ended lower, slipping 0.70 per cent lower weighed by Bank of Baroda and Yes Bank.

12:44 PM

Pharma stocks gain. Sun Pharma, Dr Reddy's, Cipla among top gainers (Image source: NSE)

12:41 PM

Elara Capital on SpiceJet

We lower FY19E EPS by 13% after incorporating lower Q1FY19 PAT and subsequently lower target price to Rs 194 from Rs 202. We maintain SpiceJet as top pick in aviation and reiterate BUY rating. We value SpiceJet by ascribing 8.0x FY20 EV/EBITDAR multiple. We maintain our bullish stance on regional market growth, where it has highest capacity. Addition of fuel efficient Boeing-737-8Max would help reduce fuel cost

12:28 PM

With higher equity cap in NPS, young investors should increase exposure

The Pension Fund Regulatory and Development Authority (PFRDA) chairman, Hemant Contractor, recently announced that the option to invest up to 75 per cent in equities under the active choice option of the National Pension Scheme (NPS) will become available to investors by the end of this month. In NPS, investors can spread their investments across four asset classes: C (corporate debt), G (government securities), A (alternate assets) and E (equities). READ MORE

12:13 PM

GAIL, Infosys, Bajaj Finance, Bajaj Finserv from Nifty 50 hit new highs

Shares of four companies – Bajaj Finance, Bajaj Finserv, GAIL (India) and Infosys – from the Nifty 50 index hit their respective new high on the National Stock Exchange (NSE) on Thursday in otherwise range-bound market. READ MORE

12:00 PM

Markets at noon

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,848.15	-3.85	-0.01
S&P BSE SENSEX 50	11,969.30	+4.24	+0.04
S&P BSE SENSEX Next 50	33,818.05	+9.41	+0.03
S&P BSE 100	11,704.56	+4.03	+0.03
S&P BSE Bharat 22 Index	3,598.94	+14.94	+0.42

11:55 AM

Centrum Broking on Graphite India Limited (GIL)

The stock has seen a relentless up move and is up ~700% since our note dated 20 June 2017. We continue to value GIL on our conservative AOCF/EV yield methodology using five year average adj. cash flows (FY16-20E) to arrive at our revised target orice of Rs1165. Maintain Hold. Key downside risk is margin pressure due to raw material volatility while upside risk is continuation of high spreads into FY20E/21E as that of FY19E.

11:54 AM

Dolat Financial on MRF

MRF is expected to bounce back on the revenue growth front with new product offerings and increased marketing efforts. Although lower top-line growth is expected to put some pressure on the stock, the higher comparative margins will help protect the downside.

Leadership position in the high margins segments will enable MRF to protect valuations. We reiterate our Accumulate rating with a target price of Rs 81,712.

11:53 AM

Edelweiss on Berger Paints

Berger Paints' (Berger) Q1FY19 revenue and EBITDA growth of 18.9% and 22.6% YoY, respectively, came in line with our estimates. Domestic volume growth remained strong at ~15% YoY on a base of 5%, in line with our estimate (Asian Paints: ~11% YoY spurt). Consolidated gross margin contracted 110bps YoY owing to spike in input cost, though price hikes (blended ~3.0-3.5% YoY) have brought some relief.

We believe, Berger has gained some market share considering its volume growth surpassed the industry’s. With overall macro revival, we envisage bounce back in decorative volumes and price hikes to aid overall revenue and earnings spurt.  Hence, we raise our target multiple from 42x to 47x FY20E EPS and arrive at revised target price of Rs 371 (earlier Rs 332). Maintain ‘BUY’

11:49 AM

NEWS ALERT Vajpayee's health continues to remain critical, on life support: AIIMS

Former prime minister Atal Bihari Vajpayee's condition continues to remain critical, All India Institute of Medical Sciences (AIIMS) said in a statement on Thursday. Vajpayee's health worsened on Wednesday and he is on life support system. "Former Prime Minister Atal Bihari Vajpayee's condition continues to remain the same. He is critical and on life support systems," the statement by the hospital read READ MORE

Atal Bihari Vajpayee

11:47 AM

COMMENT IndiaRatings on economy

At a disaggregated level, Ind-Ra expects private final consumption expenditure to grow 7.6% in FY19 compared to 6.6% in FY18. The thrust for growth is coming from the (i) waning impact of demonetisation (ii) rise in rural consumption due to two consecutive favourable monsoons and (iii) reduction in the goods and services tax rate on several items.

However, investment expenditure as measured by gross fixed capital formation is unlikely to significantly improve over FY18. It is expected to grow at 8.0% in FY19. Ind-Ra believes the government capex alone will be insufficient to revive the capex cycle, as its share in the total capex of the economy was only 11.1% during FY12-FY17.

11:45 AM

BS Fund Cafe 'The linkage of markets with elections is very weak'

 

Six of India’s leading money managers say broad market valuations are looking better after the correction and they are bullish on export businesses, corporate banks and select capital goods companies Are markets expensive at current valuations? Mahesh Patil: If you look at the valuations on a trailing basis, the markets are expensive.

 

But, you need to keep in mind that the index composition has changed in the past 10 year. READ MORE

11:30 AM

Pharma sector index gains as rupee falls

11:15 AM

Sun Pharma hits 52-week high on USFDA approval, good Q1 results

 

Shares of Sun Pharmaceutical Industries hit its 52-week high of Rs 618, up 3% on the BSE in intra-day trade on Thursday, after the company announced that it has received approval for CEQUA from the U.S. Food and Drug Administration (FDA).

 

CEQUA is indicated to increase tear production in patients with keratoconjunctivitis sicca (dry eye). READ MORE

11:00 AM

Aluminium, Copper twin triggers for Hindalco, Novelis a key positive

 

After a strong show by Hindalco’s US subsidiary Novelis, its domestic operations too put up a robust performance. Though revenues from operations grew just 2.4 per cent year-on-year (sequentially flat), it was the smart jump in profitability of aluminium segment that aided a sharp 17.5 per cent y-o-y jump in operating profits.

 

The good performance by the aluminium segment was on account of better realisations and stable plant operations, helping profits grow 35 per cent y-o-y, while the same on a sequential basis was 21 per cent. READ MORE

10:45 AM

WPIL, Roto Pumps zoom 20% on robust Q1 result

 

Shares of WPIL and Roto Pumps are locked in upper circuit of 20% each on the BSE after these companies reported a robust set of numbers for the quarter ended June 2018 (Q1FY19).

 

WPIL has zoomed of 20% at Rs 873, also its 52-week high on the BSE, after the company reported a more than four-fold jump in net profit at Rs 242 million in June quarter (Q1FY19). READ MORE