MARKET WRAP: Sensex ends 115 pts lower, Nifty at 10,741; PSU banks slip

Among sectoral indices, the Nifty PSU Bank index ended nearly 2% lower led by a fall in the shares of Syndicate Bank, Union Bank of India and Punjab National Bank.

12:45 PM

Bank of Baroda hits over two-year low; falls 10% in one week

Shares of Bank of Baroda (BOB) hit an over two-year low of Rs 123 per share, down 2%, extending their 8% decline on the BSE in the past five days. The stock of state-owned bank was trading at its lowest level since February 2016. READ MORE

12:28 PM

Street bets on Torrent Pharma's domestic business

The Torrent Pharma stock has risen 20 per cent since its March lows and is currently trading near its 52-week high. Street sentiment remains strong on its domestic growth, as was seen in the March quarter performance.

 

With the pharma market growth crossing 10 per cent in May, sentiment for domestic-focused firms such as Torrent has improved further. READ MORE

12:15 PM

BSE seeks clarity from Sebi on licensing with Dubai, Deutsche exchanges

 

Leading bourse BSE will seek clarity from the Securities and Exchange Board of India (Sebi) over the expiry date for licensing of tie-ups. The exchange has tie-ups with the Dubai Gold and Commodity Exchange (DGCX) and Deutsche Börse for offshore derivatives trading in S&P BSE Sensex contracts. The agreements end in August.

 

A licensing agreement of the National Stock Exchange (NSE) with the Singapore Exchange (SGX) has got extended till April 2019, due to pending arbitration. READ MORE

12:04 PM

IPO WATCH RITES Limited IPO subscribed 0.60x at the EOD 1.

 

QIB: 0.02x, HNI 0.19x, Retail 1.64x  and Employees 0.23x

 

12:01 PM

Jefferies on Infosys

We expect a gradual acceleration in growth for Infosys over FY19-21E helped by stability in management and renewed focus on execution, especially around winning larger digital deals. Management has cut EBIT margin guidance for FY19E to 22-24% vs. 24.3% achieved in FY18, lowering expectations. News flow on large deal wins and better than expected growth/upward revision in guidance are key catalysts. Valuation is reasonable both in the context of its own historical range and relative to TCS, making risk-reward favorable.

12:00 PM

Prabhudas Lilladher on ITC

We reiterate BUY on ITC given that the stock is available at 22.4x FY20 EPS (50% discount to large cap consumer names) and offers 2% dividend yield due to FEAR related to cigarette tax increases. However, we expect relatively moderate increase in cigarette taxes in medium term given 1) Rs200bn surplus and robust compensation cess collections in April and May 2018 and 2) 18-40% advalorem component in cigarette GST. We estimate 3% volume growth and double digit EBIT growth in cigarettes given low base and improved product mix. (FY18, 6.6% EBIT growth on 3.3% volume decline).

12:00 PM

Markets at noon

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	35513.48	35547.33	-33.85	-0.10
	14689.46	14715.02	-25.56	-0.17
	15822.96	15851.90	-28.94	-0.18
	16600.00	16659.05	-59.05	-0.35
	4182.21	4188.42	-6.21	-0.15

11:59 AM

ICICI Securities on TCS

TCS board has approved a proposal to buy back shares for an aggregate amount not exceeding Rs 16,000 crore. TCS will repurchase upto 7.6 crore of shares (1.99% of its equity) at Rs 2,100/share. The buyback along dividend payout is broadly in line with management intention of pay out ~80-100% of FCF to shareholders. It should also improve its return ratio by 400-500 bps as buyback + dividend payout should utilise (~50% of its cash & investments).

We upgrade our EPS estimates by 3-5% on account of revision in exchange rate (Rs 67 for FY19E & FY20E). Nonetheless, we maintain our Hold recommendation

with revised price target of Rs 1850/share due to rich valuation.

11:56 AM

Edelweiss on RIL

Reliance Industries’ (RIL) FY18 annual report (AR) analysis highlights robust improvement in profitability, operating cash flow (OCF) and return ratios. This was led by commercialisation of several capex-heavy businesses—RJIO, ROGC & down-stream units and ethane project. Scale up of aforesaid capacity along with commissioning of pet coke gasification project is likely to yield significant operating leverage benefits. Trade and other payables significantly cushioned OCF.

While details of the pre-operative cost capitalised by RJIO in FY18 is unavailable, its opex costs are significantly lower compared to peers. Our calculations indicate that RJIOs depreciation cost stood at 3.0% and 2.5% on tangible and intangible assets versus peers’ ~9.0% and ~4.5%, respectively. The retail segment includes RJIO’s prepaid connection sales, adjusted for which retail segment’s revenue grew ~40% (ex- RJIO) versus ~105% (including-RJIO). Other income’s contribution to PBT declined further to 18% (FY17: 24%, FY16: 31%).

11:46 AM

Headwind for silver before outshining gold: Analysts

 

Bullion traders are waiting with bated breath for the bearish trend in gold to silver ratio to resume during which silver outperforms gold. They expect the gold to silver ratio to fall to 72 and then to 68 before it starts rising again. However, international experts suggest headwind for silver before it outperforms gold.

 

During the recent rout in base metals, following the trade war triggered by the US, ratio punters were proved wrong and silver price fell sharply compared to gold. As a result, the ratio of gold to silver price has also seen some increase in the last few days. READ MORE

11:31 AM

Tata Beverages eyes market share gains, cost control to improve revenues

A weak March-quarter performance led to a 12 per cent decline for the Tata Global Beverages stock. But prior to the recent fall, the stock had doubled in value on the back of the company’s restructuring exercises, which included divesting of loss-making units in its international operations, such as those in Russia and China. READ MORE

11:15 AM

Top BSE500 gainers

COMPANY	PRICE()	CHG()	CHG(%)	VOLUME
VAKRANGEE	50.00	2.35	4.93	40333
MPHASIS	1108.45	46.50	4.38	13359
PTC INDIA FIN	18.80	0.75	4.16	208054
FIRSTSOUR.SOLU.	74.75	2.60	3.60	1364140
CG POWER & INDU.	55.20	1.80	3.37	595939

10:59 AM

Reliance Industries hits new high; stock surges 50% from 52-week low

Shares of Reliance Industries (RIL) hit a new high of Rs 1,031, up 1% on the BSE in intra-day trade on Thursday. The market value of the Mukesh Ambani-led RIL appreciated by 50% from its 52-week low of Rs 686 recorded on July 3, 2017 in intra-day deal. READ MORE

10:45 AM

ICICI Prudential AMC's Iyengar to join Indiabulls AMC as chief executive

Raghav Iyengar, who had been heading the institutional and retail business at ICICI Prudential Asset Management Company (AMC), has resigned and is slated to join Indiabulls AMC as its chief executive officer (CEO). READ MORE

10:30 AM

Bank of Maharashtra hits record low as CMD gets arrested in DSK Group scam

Shares of Bank of Maharashtra hit a record low of Rs 12.50 per share, falling 7% on the BSE in early morning trade after a media report suggested that the Economic Offences Wing (EOW) arrested Ravindra P. Marathe, the Chairman and Managing Director (CMD) of the bank, in a case of Rs 30 billion fraudulent loans extended to Pune's DSK Group. READ MORE