MARKET WRAP: Nifty at new high, Sensex up 284 pts; banks, FMCG stocks rally

Among key stocks, the fast moving consumer goods (FMCG) major ITC rose over 2 per cent to end at Rs 313 levels on the BSE. The stock hit a fresh 52-week high of Rs 315 earlier today.

12:27 PM

COMMENT Morgan Stanley on global currencies

We expect JPY to gain as global liquidity conditions tighten, undermining risk markets and pushing volatility higher. We continue to favor JPY-bullish cross-trades. We believe EM will stay under selling pressure. Idiosyncratic risks have led to volatility spikes, and while more bad news seems to be in store, we underscore the importance of liquidity.

Not only has global liquidity tightened, but we also see increasing liquidity redistribution benefiting the US. Cross-border lending statistics have put our focus on Asia, where credit tightening meets highly indebted economies. Our results suggest selling IDR, INR, PHP, and MYR, given these economies' exposures to USD wholesale funding flows, which loo k poised to continue falling.

The corporate logo of financial firm Morgan Stanley is pictured on the company's world headquarters in New York, New York January 20, 2015. REUTERS

12:19 PM

RITES hits new high; zooms 70% against issue price

Shares of railways consultancy firm RITES hit a new high of Rs 315 per share on the BSE, rising 10% on the back of heavy volumes. The state-owned firm was trading at its highest level since listing on July 2, 2018. It has rallied 70% against its issue price Rs 185 per share. READ MORE

12:19 PM

COMMENT MPC minutes signal a pause, says Kotak Securities report

The minutes seem to have been broadly in line with the August policy statement signaling a pause in the near term, especially given the moderation in the recent inflation readings. Easing growth momentum in 2HFY19 on the back of tighter financial conditions and adverse global growth is expected to begin dragging core inflation lower. Additionally, stable crude oil prices and partial pass-through of MSP on inflation (25-30 bps) seem less of a concern in FY2019. The weekly improvement in sowing pattern and reservoir levels should further keep a lid on food prices.

While the growth-inflation dynamics and the assessment of monetary policy transmission may keep the MPC on hold through rest of FY2019, we remain watchful of the INR depreciation on the back of ongoing EM meltdown in financial assets. Persistence of global risk-off and a consequent runaway depreciation in INR may warrant unconventional measures by the RBI, including further rate hikes.

12:15 PM

MUST READ Reforms and growth: GDP to inflation, Vajpayee govt's economic report card

Former prime minister Atal Bihari Vajpayee scripted path-breaking reforms in telecom, road, power, and taxes. Despite sanctions following Pokharan-II in 1998 and the Kargil War in 1999, the government managed to keep economic growth above 6 per cent till 1999-2000. Growth slowed in 2002-03, with drought, but recovered soon CLICK HERE FOR MORE

12:13 PM

TOP BSE 500 GAINERS

COMPANY	LATEST	PREV CLOSE	GAIN()	GAIN(%)	VOLUME
IL&FS TRANSPORT	35.65	33.00	2.65	8.03	80670
H D I L	33.10	30.75	2.35	7.64	3649153
REDINGTON INDIA	99.55	92.90	6.65	7.16	20171
EDELWEISS.FIN.	292.70	275.05	17.65	6.42	278877
H F C L	25.75	24.35	1.40	5.75	1647507

12:12 PM

Prabhudas Lilladher on Ashoka Buildcon

The stock is trading at 8.5x FY20E core earnings. We expect EPC segment to deliver Sales and PAT CAGR of 28% and 15%, respectively, over FY18-20E. We believe improving visibility/macro environment, both in Road and T&D sector, should enhance visibility in the EPC segment. Falling interest rates and improving traffic growth should augur well for BOT assets. Maintain 'BUY' with target price of Rs191

12:11 PM

HDFC Securities on Ahluwalia Contracts (AHLU)

AHLU envisages further opportunities in the commercial realty segment. Balance sheet remains robust with gross debt of Rs 340mn and a net cash of ~Rs 0.6bn. AHLU may outperform its annual order inflow guidance. We maintain BUY with a SOTP of Rs 489/sh (EPC segment at 476sh (EPC segment at 10x Mar-20E EV/EBITDA, Kota BOT – 1x P/BV).

12:00 PM

Market at Noon

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,960.51	+296.95	+0.79
S&P BSE SENSEX 50	12,012.02	+98.07	+0.82
S&P BSE SENSEX Next 50	33,936.56	+307.92	+0.92
S&P BSE 100	11,746.22	+97.51	+0.84
S&P BSE Bharat 22 Index	3,592.40	+21.52	+0.60

(Source: BSE)

11:49 AM

Anand Rathi on Cadila Healthcare

On the lower-than-expected revenue in the US and a higher depreciation charge, we trim our FY19 and FY20 estimates: revenue by ~3% each year, EBITDA by 6% each and PAT by 9% each. We maintain a Buy, with a revised price target of Rs 444 (earlier Rs 489), based on 21x FY20e EPS. Risks: Delay in product approvals; regulatory issues on any plant.

11:48 AM

Reliance Securities on Sun Pharma

Looking ahead, we expect strong traction in US business to continue led by launch of specialty products along with healthy growth in India business and we upgrade our recommendation on the stock to BUY from HOLD with a revised Target Price of Rs685 (from Rs545 earlier).

11:46 AM

Heat Map (Sensex)

11:42 AM

Motilal Oswal Securities on Crompton

We like CROMPTON for its strong product portfolio, established brand, market leadership, wide distribution network and a robust RoE/RoCE profile. We maintain

our Buy rating, with a target price of Rs 305 (38x FY20E EPS, in line with Havells)

11:30 AM

EMs on cusp of a bear market; investors cautious amid global headwinds

 

Turkey may have helped buoy the lira, but the rest of the developing world is reeling — with stocks on the verge of a bear market.

 

The MSCI Emerging Markets Index has tumbled almost 20 per cent from a January peak, while a currency measure slipped to the lowest since May 2017. South Africa’s rand was battered by a downbeat assessment by Moody's Investors Service, while a surprise rate hike by Indonesia failed to lift the rupiah for long. A rout in Chinese technology shares spiraled into a broad selloff, with the yuan weakening past 6.9 per dollar. The lira climbed as Turkey took its boldest steps to ward off a financial crisis. READ MORE

11:15 AM

Nifty Pharma index hits over six-month high; Sun Pharma at 14-month high

 

Shares of pharmaceutical companies in focus with Nifty Pharma index was trading higher for the fourth straight day, hitting an over six-month high on the National Stock Exchange (NSE).

 

Sun Pharmaceutical Industries, Dr Reddy’s Laboratories, Glenmark Pharmaceuticals, Lupin, Aurobindo Pharma and Cadila Healthcare from the index, were up in the range of 1% to 4% on the NSE. READ MORE

11:00 AM

Sebi cuts timeline for listing of debt securities to six days from 12

 

Markets regulator Sebi on Thursday drastically cut the timeline for listing of debt securities to six days from 12 at present, in order to make the existing process of issuance of such securities simpler and cost effective.

 

Besides, the Securities and Exchange Board of India (Sebi) has made ASBA (Application Supported by Blocked Amount) mandatory for all investors for making payment, while applying in a public issue of debt securities. READ MORE