MARKET WRAP: Sensex dips 219 points; Tata Motors, ICICI Bank top losers

Among sectoral indices, the Nifty PSU Bank index ended around 2% lower led by a fall in the shares of Allahabad Bank, Union Bank of India and Canara Bank.

1:44 PM

HDFC Mutual Fund's perks to distributors make industry see red

 

The Rs 23-trillion mutual fund (MF) industry is seeing red over equity share allotment made by the country’s most profitable fund house HDFC MF to the distributor community, which continues to remain a vital link between investors and asset management companies (AMCs).

 

Ahead of its much-awaited initial public offering (IPO) — only second by an AMC so far — HDFC MF, which manages assets worth over Rs 3 trillion, has made a private placement of shares worth Rs 1.5 billion to 140 distributors. READ MORE

1:27 PM

NEWS ALERT  Monsoon session of the Parliament to be held from July 18 till August 10

1:17 PM

Nifty Auto falls over 1%; Top losers in the pack

COMPANY	LATEST	PREV CLOSE	LOSS()	LOSS(%)	VOLUME
TATA MOTORS-DVR	172.90	181.85	-8.95	-4.92	2130102
TATA MOTORS	295.60	308.00	-12.40	-4.03	8251370
MOTHERSON SUMI	294.30	303.75	-9.45	-3.11	3262070
ASHOK LEYLAND	134.05	136.40	-2.35	-1.72	6680890
AMARA RAJA BATT.	753.00	764.85	-11.85	-1.55	137746

1:00 PM

CARE Rating on Opec decision

We except the price of Brent to be range bound between $70-$75/bbl in the coming months. With OPEC pumping in additional supply after 18 months of adherence and US increasing its supply, price of oil will be less pressured.

It should be remembered that the increase in oil supply announced would still be lower than the cut decided on earlier. On the other side with the world demand of crude oil rising and with the uncertainty in the global political scenario we believe price of oil can rise despite of the increase in supply. Indian Basket of Crude will remain $2/bbl lower than the Brent prices on an average monthly basis.
 

India will get some relief as prices of oil will be lower than the highs of $78-$80, which will improve our import bill as India imports 80%-85% of its consumption requirements. This will have a positive effect on market sentiment affecting our exchange rate and reduce the headline inflation. The OPEC decision would also get factored by the MPC when it meets next for taking a call on interest rates.

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12:45 PM

IPO REVIEW With many growth engines, Varroc Engineering has opportunities to scale up

Given its presence in key growth areas, a low-cost manufacturing base and focus on driving up margins, the prospects for Varroc Engineering, one of India’s largest auto component companies, appear robust. The company, which ended FY18 with revenues of over Rs 100 billion, gets over 60 per cent of it by supplying lighting solutions to global car makers. READ MORE

12:33 PM

Three kids and a flute: How India and Singapore can end the NSE-SGX dispute

The path to ending the custody dispute between the National Stock Exchange of India Ltd. and Singapore Exchange Ltd. passes through a parable involving three kids and a flute. A minor domestic quarrel has turned into a major court battle over who gets to trade the benchmark Indian index. READ MORE

12:17 PM

FMCG stock: Nestle's growth trajectory will remain healthy, say experts

Not many would have placed a bet on Nestle three years ago, when it was in the midst of the Maggi fiasco that took a toll on its finances and on shareholder returns. Now, however, investors are seen lapping up Nestle.

 

Not only has it outperformed the prominent indices, though partly helped by the base effect on account of past under-performance, it is the second best performing stock in the fast moving consumer goods (FMCG) space in 2018 so far. And, despite the rise, the Street is still bullish on Nestle. READ MORE

12:07 PM

ICICI Securities on Avanti Feeds

We initiate coverage on Avanti Feeds (Avanti), market leader in shrimp feed and a growing player in shrimp exports. Avanti benefits from: 1) numerous moats such as strong brands, established distribution, multiple manufacturing units and sub-segmentation strategy; and 2) relationship with global sea food major, Thai Union.

We expect India’s shrimp exports (value) to grow in mid-teens and Avanti to be a major beneficiary of this trend. With strong financials (>35% return ratios and FCF/PAT of 66% over FY13-18), we expect Avanti’s earnings growth to resume in FY20E after a decline in FY19E due to lower margins. We initiate with a BUY rating and DCF based target price of Rs1,901 (implied target P/E 20x FY20E EPS).

12:06 PM

Motilal Oswal Research on Tata Motors

We have cut our consol EPS estimates by 7%/15% for FY19/20 to factor in for a) weaker volumes, b) GBP appreciation and c) lower capex guidance. The stock trades at 6.8x FY20E EPS, 2.3x EV/EBITDA and 0.8x BV. Buy with target price of Rs 431 (SOTP). Key risks to our thesis: a) persistent weakness in demand environment for JLR, b) trade barriers impacting competitive positioning of JLR and c) adverse FX movement.

12:00 PM

Markets at Noon

 

S&P BSE Sensex	35,633.50		-0.16%
Nifty 50	10,802.15		-0.18%
S&P BSE 200	4,663.76		-0.11%
Nifty 500	9,281.00		-0.17%
S&P BSE Mid-Cap	15,853.99		0.09%
S&P BSE Small-Cap	16,528.52		-0.07%

11:45 AM

Top Nifty50 losers

COMPANY	LATEST	PREV CLOSE	LOSS()	LOSS(%)	VOLUME
TATA MOTORS	296.60	308.00	-11.40	-3.70	6335030
B P C L	411.45	426.35	-14.90	-3.49	2409731
ICICI BANK	292.25	300.65	-8.40	-2.79	7303060
I O C L	165.90	170.00	-4.10	-2.41	3039060
H P C L	304.10	311.15	-7.05	-2.27	1683740

11:34 AM

China, India and South Korea see wealth erosion of $1.4 trillion in 2018

 

China, India and South Korea, which are the three biggest Asian markets, excluding Japan, have seen erosion in market capitalisation of $1.4 trillion this year, so far. On the other hand, developed markets such as the US, the UK and France have fared much better, signalling global funds could be shifting their preference away from riskier emerging markets.

 

While the bulk of the erosion in the Asian markets is on account of China, India and South Korea too have lost significant ground, particularly in dollar terms.READ MORE

11:14 AM

Graphite electrodes makers in focus; Graphite India, HEG up 5%

Shares of graphite electrodes manufacturers were in focus with HEG and Graphite India rising 5% each in otherwise weak market on expectation of rise in demand from steel companies. READ MORE

10:59 AM

Street signs: Manpasand stock falls, sibling rivalry at play, and more

Manpasand fall hits top PMS player The sharp fall in the stock price of Manpasand Beverages has hit a leading portfolio management services (PMS) player, say market operators. This PMS participant also has a mutual fund house.

 

According to industry players, the PMS owned almost 5-6 million shares of the company across its various products. Manpasand Beverages' share price fell from around Rs450 to Rs128, down 71 per cent, in less than a month. READ MORE

10:44 AM

Market Mind: Sugar may remain sour for long

 

The Prime Minister’s ambition of doubling farmer incomes was strengthened when the Uttar Pradesh (UP) government announced a Rs10 per quintal increase in the 2017-18 cane price that sugar manufacturers were required to pay farmers.

 

What the country had not reckoned was the extent of increased production: against an initial sugar production estimate of 25 million quintals in 2017-18 (October to September), India is estimated to have produced over 32 million quintals—a complete failure of intelligence gathering sources. READ MORE