MARKET WRAP: Sensex ends 40 pts up, Nifty at 10,787 ahead of US-Korea meet

Bharti Airtel gained 3.5% on the BSE today, while Sun Pharma rose 1.1%. Tata Steel lost 2.1%

1:31 PM

Nifty Consumption index nears record high; Nestle India shares cross Rs 10k

Shares of consumption related companies are in focus with Nifty Consumption index trading close to its all-time high after more than 1% gain in stocks like United Breweries, ITC, Marico and Titan Company. READ MORE
 

1:16 PM

Videocon case: Sebi can't demand Chanda Kochhar's resignation, says report

 

ICICI Bank chief Chanda Kochhar, who is under the lens of several Indian and foreign agencies for alleged irregularities in her dealing with certain borrowers, faces a maximum penalty of Rs 250 million from Securities and Exchange Board of India (SEBI) if found guilty, according to a report.

 

The market regulator is probing if she and her bank violated its disclosure norms. READ MORE

1:12 PM

Maruti Suzuki speeds up to claim 55% share in the Indian car market

If you thought Maruti Suzuki’s 50 per cent share in the Indian car market is abnormally high, more surprise is in store for you. After expanding its share from 45 per cent in 2014-15 to 50 per cent in 2017-18, the car major has not lost speed. The recent numbers show that the Suzuki-owned company is now inching towards a 55 per cent share as rivals struggle to keep pace READ MORE

1:03 PM

MUST READ For loss-making companies, 2017-18 was the worst year in a decade

 

Even as 1,794 companies reported a combined net profit of Rs 4.42 trillion in financial year 2017-18, India Inc’s performance was pulled down by loss-making companies. In FY18, 344 companies reported a combined loss of Rs 1.8 trillion – more than double the number in FY17, and the highest in at least a decade.

 

Loss-making companies have now cumulatively lost Rs 4.85 trillion in the past five years, and 76 per cent of that has come in the past three years. READ MORE

Photo: Shutterstock

12:44 PM

Top BSE500 gainers

COMPANY	PRICE()	CHG()	CHG(%)	VOLUME
ALEMBIC PHARMA	521.80	86.95	20.00	49262
PC JEWELLER	148.70	11.95	8.74	3197319
TIMKEN INDIA	784.00	62.80	8.71	21429
CORPORATION BANK	32.50	2.55	8.51	35825
GATEWAY DISTR.	186.00	11.25	6.44	17019

12:31 PM

SECTOR RESEARCH Ferrous - Best yet to come

 

Q4 FY18 proved remarkable for the steel sector as companies thrived on strong domestic steel prices and domestic demand. Blended steel realisations sequentially rose 10-14% during the quarter led by an outperformance in long products. Revenue growth was impacted by shutdown of plants at SAIL and Tata Steel. For all players, margins expanded following higher spreads but were impacted by the jump in one-off costs. Combined operating profit of four large players touched decade-high levels.

Our expectations of lower Q4 operating profit was negated by six consecutive price hikes by domestic players. We believe the coming Q1 would outdo Q4 as the complete impact of price hikes during Q4 would come about only then. With benign raw material prices in Q1, margins would expand sequentially by Rs.1,500-2,500/ton in Q1. Though we expect spreads to shrink from Q2 levels given the onset of a seasonally weak quarter and expected surge in Chinese output, FY19 spreads should remain healthy given relatively steady domestic demand.

Domestic demand-supply balance is improving with the gradual recovery in steel demand. We reckon the recent correction in stock prices provides a good opportunity given the sustained triumphs on the earnings front. Maintaining our positive stance on the sector, we pick Tata Steel as our best bet

(Source: IIFL report)

 

12:31 PM

Sharp recovery ahead for SBI, Sun Pharma, Tata Motors, Apollo Hospitals

 

In a year when the S&P BSE Sensex has gained 13 per cent, four sector leaders have underperformed the markets as well as their peer indices. In fact, barring the State Bank of India (SBI), which has been a laggard in recent times, all other sector leaders such as Sun Pharma, Apollo Hospitals, and Tata Motors have been wealth destroyers every year over the last five years.

 

However, things could change in FY19 for shareholders as these companies have chalked out strategies to improve their performance. READ MORE

12:23 PM

HDFC Securities on PNC Infratech

We have derived SOTP based target of Rs 248. We value the (1) Standalone EPC business at Rs 192 (10x one‐year forward Mar‐20E EBIDTA), (2) BOT projects at Rs 33/share, and (3) HAM FY18-20E cumulative equity investment at Rs 23/share. We recommend PNC Infratech as BUY at a CMP of Rs. 172 add on a decline of Rs 150 or the Target Price of Rs. 250 in a time frame of five - six quarters.

12:21 PM

COMMENT Edelweiss on healthcare sector

Lately, there has been lot of noise in the media about heightened government sensitivity towards healthcare and pharma practices, both at the centre and in states. This implies an imminent risk of: i) price control or cap on medicines, diagnostic tests and procedures in the short term; and ii) a shift from branded to generic medicines over the long term. In our view, the government is trying to impose regulatory controls to raise the quality of healthcare and bring transparency in pricing to bring in affordability.

Though the process will be a challenging in the short term and can impact the earnings and valuations, in the long term this will accelerate the shift from the unorganized to organized. Healthcare providers, especially hospitals, will thus shift towards a service led model, while pharma companies reduce their sales and marketing spends. We believe these reforms will drive consolidation in long term.

12:19 PM

NEW LAUNCH Mirae Asset Global Investments (India) launches Mirae Asset Healthcare Fund

Mirae Asset Healthcare Fund is an open ended equity scheme investing in healthcare and allied sectors. The Scheme will be investing in Indian equities and equity related securities of companies that are likely to benefit either directly or indirectly from Healthcare and allied sectors.

The investment strategy of this scheme endeavors to maintain a concentrated portfolio of 30-40 stocks.Healthcare is a broad secular theme that includes Pharma, Hospitals, Diagnostics, Insurance and other allied sectors. The fund will have the flexibility to invest across markets capitalization and style in selecting investment opportunities within this theme. Mr.Vrijesh Kasera will be managing this fund along with Mr. Neelesh Surana.

12:17 PM

Reliance Securities on Aurobindo Pharma

We expect US business to clock 11% CAGR over FY18-20E led by new launches (30-40 in FY19 including few niche products) and ramp-up in injectable biz. With double-digit margin in European business, we expect further improvement in margin led by transfer of products from Europe to Indian units for manufacturing (transferred 83 products out of planned 112).

Led by strong US product pipeline (117 ANDAs pending for approvals), comfortable leverage position, healthy return ratios (RoE/ RoCE at 17%/19% by FY20E) and attractive valuation (>20% discount to its peers), ​​we maintain our fundamental BUY recommendation on the stock with Target Price of Rs712

12:15 PM

PSU banks extend gain; PNB, Corporation Bank up over 4%

 

Shares of public sector undertaking (PSU) banks were quoting higher for the fourth straight trading sessions with Nifty Bank surging 6.5% as compared to 2% rise in the benchmark Nifty 50 index.

 

State Bank of India (SBI), Punjab National Bank (PNB), Bank of India, Bank of Baroda, Oriental Bank of Commerce, Canara Bank, Corporation Bank, Uco Bank, Dena Bank and Vijaya Bank were up 2% to 6% on the National Stock Exchange (NSE). READ MORE

12:01 PM

Markets at noon

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	35593.53	35443.67	149.86	0.42
	14851.68	14768.92	82.76	0.56
	16130.95	16022.37	108.58	0.68
	17037.31	16887.13	150.18	0.89
	4212.61	4191.25	21.36	0.51

11:45 AM

Investor wealth of Rs 15.8 billion riding on stocks under Sebi lens

 

Sebi's decision to move over 100 stocks to additional surveillance measure (ASM) is being termed as harsh by market players. Investors' wealth amounting to Rs 15.8 billion is riding on these stocks.

 

Among individual stocks, mutual funds (MFs) have high stakes in names like Graphite India, Dilip Buildcon and Radico Khaitan. ALSO READ: GVK Group may file DHRP with SEBI for its airport vertical IPO next month. READ MORE

11:30 AM

Monsoon effect: Farm input companies seen improving performance

 

The financial performance of agri input companies is likely to improve during the first half of 2018-19 owing to forecasts that the monsoon this year will be normal.

 

Their sales and profits were under pressure in the fourth quarter of 2017-18 because of a sharp increase in the prices of raw material and weak lean season demand.

 

Companies such as Dhanuka Agritech, PI Industries and Rallis India posted declines in their sales and profits during January-March 2017-18. READ MORE