MARKET WRAP: Sensex ends 276 points higher; RBI hikes repo rate by 25 bps

Markets ended higher after the RBI maintained neutral stance in its second policy decision of FY19

12:15 PM

Select stocks under ASM framework recover after falling for two days

 

Shares of select companies which are under additional surveillance measures (ASM) recover from their respective intra-day lows after declining in past two straight trading sessions on the BSE.

 

The BSE on Monday decided to bring 109 companies, including HEG, Graphite India, Reliance Naval and Engineering, Amtek Auto, GVK Power & Infrastructure under enhanced surveillance measures. READ MORE

12:00 PM

Markets at noon

S&P BSE Sensex	35,103.67		0.57%
Nifty 50	10,656.00		0.59%
S&P BSE 200	4,602.61		0.66%
Nifty 500	9,168.10		0.63%
S&P BSE Mid-Cap	15,639.16		0.67%
S&P BSE Small-Cap	16,355.09		0.84%

11:45 AM

Renuka Sugars to use network of Adani Wilmar to revive Madhur brand

 

After taking over the management of Shree Renuka Sugars (SRSL), multinational company Wilmar International plans to utilise the distribution network of Adani Wilmar Ltd (AWL) to make ‘Madhur’ a leading sugar brand.

 

Wilmar has a joint venture (JV) with Adani Enterprises in AWL, which makes and distributes the ‘Fortune’ brand of edible oil — it has 21 per cent of market share in the branded segment. Recently, it hired actress and beauty queen Lara Dutta to promote its rice bran edible oil. Despite increasing consumer demand for quality products, branded sugar has so far failed to gain a large market share. READ MORE

11:30 AM

Europe's new market rules to pinch Rs 200-billion Indian broking industry

 

The nearly Rs 200-billion Indian broking industry is feeling the heat and its roots can be traced all the way to Europe. The European Union (EU) has introduced new rules, which are already taking a bite into the revenues.

 

This, in turn, is changing how research and execution services are offered to some of India’s largest foreign investors. The resulting pressure on earnings for the domestic market is likely to mirror the tumult that has been seen across the world, according to experts. READ MORE

11:15 AM

Gruh Finance trades ex-bonus today; stock up 3%

 

Shares of Gruh Finance, a subsidiary of HDFC, was up 3% to Rs 351 on the BSE in early morning trade after the stock turned ex-bonus on Wednesday.

 

The board of housing finance company at their meeting held on April 14, 2018 had announced a 1:1 bonus i.e. one new bonus equity share of Rs 2 each for every one existing equity share of Rs 2 each for its shareholders. It has set June 7 as the record date for determining the entitlement of members to receive bonus equity shares of the Company. READ MORE

11:02 AM

Anand Rathi on Mirza International

In FY18 branded footwear revenue grew 38% and its share in Mirza’s revenue rose to ~42% in FY18 (from ~31% the year before). An export slowdown, however, constrained revenue growth. Ahead, we expect the growth momentum to persist. We expect revenue growth to recover as the share of the non-branded footwear dips and the share of the faster-growing branded footwear rises. We maintain our Buy rating on the stock, with a target price of Rs 148.

11:00 AM

Nomura sees Nifty at 11,380 by December 2018; HDFC Bank, RIL among top bets

Global research house Nomura sees a limited upside for the markets from here on. Their recent India Strategy report co-authored by Saion Mukherjee, Neelotpal Sahu and Sanjay Kadam, pegs the Nifty50 target at 11,380 levels by December 2018 READ MORE

10:45 AM

MUST READ Rout on in small, mid caps: Experts blame negative news flow, Q3 earnings

 

Small- and mid-cap stocks are witnessing a carnage due to unwinding of speculative bets amid regulatory curbs. On Tuesday, the Nifty Smallcap 100 and Nifty Midcap 100 indices extended their sixth day of declines to 8 per cent and 4.5 per cent, respectively.

 

The widely tracked Nifty50 index was down just 1 per cent, hiding the pain the broader market is going through. In absolute terms, the decline in market cap of small and mid cap stocks, listed on the National Stock Exchange, during this period is Rs 2.88 trillion. READ MORE

10:31 AM

Top BSE500 Gainers

COMPANY	PRICE()	CHG()	CHG(%)	VOLUME
AVANTI FEEDS	1480.75	127.05	9.39	42621
SOLAR INDS.	1156.30	69.40	6.39	189
MINDA INDS.	1198.10	66.85	5.91	9025
PARAG MILK FOODS	312.10	16.65	5.64	39393
PRAJ INDS.	89.80	4.75	5.58	96655

10:16 AM

RBI monetary policy: Calm bond market suggests status quo on rates

 

The bond market seems to be expecting interest rates to remain unchanged in the Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC) meeting on Wednesday as the yield on benchmark 10-year paper softened by 5 basis points (bps) to close at 7.83 per cent.

 

Economists said the panel may wait till the next policy review in August for any decision on rate hike, awaiting data on spread of monsoon. READ MORE

10:00 AM

Market Check

S&P BSE Sensex	35,026.24		0.35%
Nifty 50	10,619.40		0.25%
S&P BSE 200	4,594.78		0.49%
Nifty 500	9,141.95		0.35%
S&P BSE Mid-Cap	15,651.33		0.75%
S&P BSE Small-Cap	16,370.30		0.93%

9:50 AM

INTERVIEW OF THE DAY

 

Unfair to blame RBI for missing forecast, says Chetan Ahya

 

CHETAN AHYA, global co-head of economics and chief Asia economist at multinational financial services entity Morgan Stanley, answers questions on the Reserve Bank’s (RBI’s) ongoing review of monetary policy and allied issues. Click here for full interview

9:38 AM

Motilal Oswal Currency Report on RBI policy deciion

 

The brokerage expects the central bank would maintain a status quo approach as it has many things to monitor in the backdrop. Starting with rising crude oil prices, fund outflows by FIIs from equity and debt segment, balance sheet normalization by the Federal Reserve, strength in the dollar against its major crosses and rising 10-year yields.

9:31 AM

Tata Motors: Long way ahead for domestic business – BUY

CMP (Rs) 285, 12-mts Target (Rs) 400, Upside 40%

 

Tata Motors at its Investor Day for its India business laid out a roadmap for increasing market share in both passenger car and CV segments, improve profitability through various measures, plans to adopt electric vehicle technology across both divisions, alternate fuel technologies and many more initiatives. The company shared its aspiration of becoming the third largest player in the domestic passenger car market and regain its lost market share in the CV segment.

The company is aiming for a profitable growth and maintained its guidance of 3-5% EBIT margins for the standalone entity during FY19-21 and 5-7% over the longer term. Also, the company has lined up its divestment plan for exit out of non-core investments. The company has named the overall plan as Turnaround 2.0. Considering the successful implementation of Turnaround 1.0, we believe there exists high probability of company achieving the set goals in the new plan. We retain our estimates and maintain our BUY rating on the stock.

(Source: IIFL report)

 

9:29 AM

Nomura on SBI

We maintain our positive outlook on corporate banks (with adequate capital levels) with the asset quality cycle nearing its end now, and within PSUs SBI remains our preferred pick given management stability, its strong liability franchise and adequate capital levels. Current valuations at 0.7x FY20F adjusted book seems reasonable for a 12-13% normalised ROE by FY20F and hence we maintain Buy with a price target of Rs 350/share implying 1x FY20F adjusted book.