MARKETS ON MONDAY: TCS market-cap hits $100 bn; Nifty ends below 10,600

Nifty closed at 10,585 levels. TCS market-cap hits $100 billion in intraday deals; but stock ends flat as investors book profit

10:30 AM

TCS becomes first Indian company to cross $100 bn in market-cap

Tata Consultancy Services (TCS) has become the first Indian $100 billion- dollar company in terms of market capitalisation (market-cap), after the stock of the IT bellwether hit a new high on Monday.

 

The stock hit a new high of Rs 3,499, up 2.7% in intra-day trade, extending its Friday’s 6.7% surge, as the company reported better-than-expected March quarter earnings in post market hours on Thursday. TCS also announced 1:1 bonus shares i.e. one bonus shares of Rs 1 face value each for every share held in the company to its investors. READ MORE

Tata Consultancy Services (TCS) Chief Executive Officer Rajesh Gopinathan (Photo: Reuters)

10:10 AM

TCS stock up nearly 3%

10:04 AM

NEWS ALERT TCS' market-capitalisation (m-cap) hits $100 billion. Only Indian company to achieve this feat. Stock trades higer by 2%

10:03 AM

Market Check

 

S&P BSE Sensex	34,412.46		-0.01%
Nifty 50	10,566.70		0.03%
S&P BSE 200	4,651.84		0.12%
Nifty 500	9,358.50		0.12%
S&P BSE Mid-Cap	16,819.26		0.12%
S&P BSE Small-Cap	18,244.89		0.37%

9:53 AM

Unichem Labs up 9% as USFDA completes Ghaziabad plant with no observations

Shares of Unichem Laboratories have surged 9% to Rs 283 per share on the BSE in early morning trade after the pharmaceutical company said it has not received any observations from US health regulator following completion of inspection of the company’s facility in Ghaziabad, Uttar Pradesh. READ MORE

9:41 AM

Nomura on TCS

We retain Reduce as we find valuations expensive at ~20x FY20F and see risk to street expectations of ~double-digit constant currency (CC) revenue growth and flattish margins. Our caution stems from: 1) large segments US/BFSI remaining weak, growing at low- to mid-single digits y-y, with clarity on BFSI still a quarter away amid risks from insourcing at large US Banks.

We look for CC revenue growth of 8.5%/7% over FY19/20F; and 2) margins missed expectations despite revenue beat and risks remain from wage hikes, impact of large insurance deals with takeover of ~5,200 people (~4,500 onsite), legacy pricing pressure and need to realign onsite staff in view of US immigration tightening.

9:35 AM

Interview of the Day Markets can correct up to 15% from current level: IIFL chairman Nirmal Jain

Besides global developments, markets are now eyeing the outcome of the Assembly election in Karnataka scheduled for May 2018. Nirmal Jain, founder and chairman of IIFL Group, in conversation with Puneet Wadhwa and Vishal Chhabriasaid he expected the markets to remain volatile, as they have the curiosity to assess election outcomes in advance.

Nirmal Jain, founder and chairman of IIFL Group

9:21 AM

Sectoral Trend

9:19 AM

BSE Sensex gainers and losers

9:17 AM

Market at open

 

At 9:16 AM, the S&P BSE Sensex was trading at 34,424, up 9 points while the broader Nifty50 was ruling at 10,572, up 8 points.

9:12 AM

CIMB on TCS results

We raise FY19F-20F EPS by 3% for improving demand, margin management and currency. We think TCS deserves premium valuation over its peers given its expected higher organic US$ sales/earnings growth in FY19F. However, we believe the recent runup in share price has factored this in. Maintain Hold, with a higher target price of Rs 3240, based on one-year forward P/E of 19x (5-year mean) vs. 17x earlier for improving sales/earnings growth. 

9:10 AM

IDBI Capital on HDFC Bank

HDFC Bank delivered another stable performance, with its numbers largely in line with our expectations. GNPAs are around 1% consecutively for each of the past eight years, whereas restructured loans were miniscule. It has marginal exposure to only two accounts of the forty accounts mentioned by the RBI. Its CASA deposit franchise is strongest among peers. We are structurally positive on HDFCB considering its healthy asset quality, superior deposit franchise and credit underwriting, structurally better NIM and the ability to maintain RoA at ~2.0% and RoRWA at ~2.5% in the long run.

 

In times of gigantic deterioration in asset quality for corporate peer bank, preference toward high quality retail banks will continue to remain. As a result premium valuation for HDFCB is fairly justified in our opinion. We value HDFC Bank at 4.4x P/ABV FY19E (30% premium to mean valuations) deriving a target price of Rs2,400 with a BUY rating.

 

9:09 AM

Corporate News 

 

·         Cipla's Pithampur plant gets three observations from U.S. FDA

 

·         U.S. FDA concludes the inspection of Unichem Labs’ Ghaziabad facility with no observations

 

·         Coal India plans 41.5 million tons forward coal auctions in the current financial year

 

·         Axis Bank commenced succession process for a new CEO and MD. Appoints Egon Zehnder to for process

 

·         SJVN signs accord with power ministry and aims to achieve 9,200 million units in financial year 2019

 

·         RIL says it is not aware of any further investigation undertaken by the I-T department regarding the Rs 6,500-crore foreign direct investment by Biometrix in the company’s group entities

 

·         Adani Enterprises forms a joint venture with Prakash Asphaltings for Bilaspur Pathrapali Road Private Ltd. in the ratio of 74:26

 

·         Indian Hume Pipe Company secures Rs 578.50 crore order from Madhya Pradesh Jal Nigam Maryadit

 

·         Kitex Garments Board to meet on April 25, 2018 to consider proposal for further investments

 

·         India Ratings upgrades HEG Limited's Long-Term Issuer Rating to 'IND AA' from 'IND A+'. The Outlook is Stable

 

·         Orchid Pharma says committee of creditors have rejected all three bids for the company

 

·         Morepen Labs appeals to NCLAT against the order passed by NCLT, Chandigarh bench.

 

·         Electrosteel Steels says steering committee was set up as per resolution plan

 

·         Lenders of Nagarjuna Oil Corporation decide that the company should go for liquidation

 

 

(Source: IIFL report)

9:04 AM

Markets at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,679.93	+264.35	+0.77
S&P BSE SENSEX 50	11,194.38	+131.51	+1.19
S&P BSE SENSEX Next 50	34,516.67	+67.04	+0.19
S&P BSE 100	11,093.98	+114.61	+1.04
S&P BSE Bharat 22 Index	3,602.25	+29.18	+0.82

9:01 AM

Real GDP growth may expand to 7.4% in 2018-19: RBI Governor

 

Reserve Bank of India (RBI) Governor, Urjit Patel, has said the country’s growth is expected to accelerate next fiscal. Although the real GDP growth was moderated to 6.6 percent from 7.1 percent a year ago, there was a strong rebound in the second half of the year on the back of a turnaround in investment demand, he said. READ MORE