MARKET WRAP: Sensex ends 155 pts lower; SBI down 4% post Q1 results
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 "SMEs, banks, foreign exchange, markets, forex, small and medium price industries,")
SMEs at large do not understand forex and the concept of hedging, which banks often exploit. (Photo: iStock)
11:00 AM
AU Small Finance Bank surges 10% after block deals
Shares of AU Small Finance Bank have surged 10% to Rs 711 on the BSE in early morning trade on huge volumes.
Till 09:46 am; around 27 million equity shares representing 9.3% of total equity of AU Small Finance Bank have changed hands on the BSE, the exchange data shows. On an average sub 40,000 shares were traded daily in past two weeks. READ MORE
10:45 AM
BSE Mid-cap gainers
| COMPANY | LATEST | CHG(RS) | CHG(%) |
FREE FLOAT MKT CAP (RS CR) |
WEIGHT IN INDEX (%) |
|---|---|---|---|---|---|
| SJVN | 27.75 | 0.85 | 3.16 | 1090.52 | 0.18 |
| EICHER MOTORS | 28306.25 | 822.00 | 2.99 | 34736.02 | 2.82 |
| YES BANK | 390.80 | 9.55 | 2.50 | 70303.08 | 3.40 |
| CUMMINS INDIA | 665.10 | 13.30 | 2.04 | 9033.92 | 2.02 |
| NLC INDIA | 77.20 | 1.50 | 1.98 | 1180.06 | 0.20 |
| M R P L | 85.20 | 1.60 | 1.91 | 1642.54 | 0.19 |
10:40 AM
Anand Rathi on Birla Corp
Stabilised operations at the high-margin RCCPL and the greater share of premium cement led to Birla Corp reporting firm revenue growth. The greater contribution from premium cement and the continuous focus on cost optimisation would help the operating performance improve. With capex announced, we expect debt to be high. However, given the company’s strong operations in the Central region, we retain our Buy rating on the stock, though with a revised target of Rs 1,091
Stabilised operations at the high-margin RCCPL and the greater share of premium cement led to Birla Corp reporting firm revenue growth. The greater contribution from premium cement and the continuous focus on cost optimisation would help the operating performance improve. With capex announced, we expect debt to be high. However, given the company’s strong operations in the Central region, we retain our Buy rating on the stock, though with a revised target of Rs 1,091
10:32 AM
Kotak Securities on PNC Infratech
We have marginally revised our FY19E & FY20E estimates factoring in strong order inflows, revised capex guidance and better execution in Q1FY19. The EPC business (adjusted for Rs 30 per share value of BOT) is available at a PE of 15x and 11.4x based on FY19E and FY20E EPS of Rs 9 and Rs 11.8 per share, respectively. We maintain our Buy rating on the stock with SOTP-based target price of Rs 219 (Vs Rs 218 earlier).
10:30 AM
TOP LOSERS ON THE BSE
» More on Top Losers
| COMPANY | PRICE() | CHG() | CHG(%) | VOLUME |
|---|---|---|---|---|
| JET AIRWAYS | 279.20 | -22.50 | -7.46 | 1086981 |
| KEI INDS. | 406.70 | -22.95 | -5.34 | 16297 |
| MANAPPURAM FIN. | 106.70 | -5.80 | -5.16 | 271228 |
| 8K MILES | 353.65 | -18.60 | -5.00 | 6300 |
| MANPASAND BEVER. | 131.80 | -6.90 | -4.97 | 13483 |
10:21 AM
Edelweiss on Minda Corporation
Minda Corporation (MCL) reported Q1FY19 EBITDA of Rs 731mn (up 65% YoY; 4% above estimate) by better-than-expected revenue. The company is on course to outgrow industry on the back of rising new order-wins (Rs 11bn in Q1FY19) as well as mining of existing clients. The BS VI emission norm would enable MCL to increase its content per vehicle in certain products in wiring harness, sensors, etc.
The recently raised funds (QIP) remain unutilsed. The primary objective of the QIP was to build a war chest to execute the acquisition strategy, primarily in the Driver Information System segment. Higher-than-expected interest cost and tax rate, and lower other income spur a ~10% cut in our FY19/20E EPS to Rs 8/10.6. Maintain ‘BUY’ with revised target price of Rs 190 (versus Rs 211)
Minda Corporation (MCL) reported Q1FY19 EBITDA of Rs 731mn (up 65% YoY; 4% above estimate) by better-than-expected revenue. The company is on course to outgrow industry on the back of rising new order-wins (Rs 11bn in Q1FY19) as well as mining of existing clients. The BS VI emission norm would enable MCL to increase its content per vehicle in certain products in wiring harness, sensors, etc.
The recently raised funds (QIP) remain unutilsed. The primary objective of the QIP was to build a war chest to execute the acquisition strategy, primarily in the Driver Information System segment. Higher-than-expected interest cost and tax rate, and lower other income spur a ~10% cut in our FY19/20E EPS to Rs 8/10.6. Maintain ‘BUY’ with revised target price of Rs 190 (versus Rs 211)
10:17 AM
MARKET COMMENT Chris Wood of CLSA
The lack of stronger numbers last Friday has served to delay further a test of the 3% level on the US 10-year Treasury bond. Indeed the yield curve has only flattened further as short-term yields have risen as a consequence of increased certainty that the Fed will raise rates by a further 25bp at the September meeting following last week’s FOMC meeting.
The best reason to think that the dollar has peaked is if GREED & fear’s base case view is correct on the American economy, namely that cyclical momentum has peaked. For this would mean that monetary tightening expectations have probably peaked at the 75-100bp of further tightening projected by the money markets for this year and next. It would also suggest that real yield differentials between America and other countries would have peaked both in terms of short and long term interest rates. Still there are too many political crisis currents which make aggressive US dollar forecasting perilous.
(Source: Wood's weekly newsletter, GREED & fear)
(Source: Wood's weekly newsletter, GREED & fear)
Christopher Wood, Managing Director & Equity Strategist, CLSA
10:15 AM
Sebi should seek power to tap phone calls: Panel on fair market conduct
A committee on fair market conduct has suggested that market regulator, Securities and Exchange Board of India (Sebi), should seek powers to tap telephones and other electronic communication devices to check insider trading and other frauds.
Currently, Sebi has the power to only ask for call records, which includes numbers called and the duration of calls made. If the recommendation is implemented, Sebi will be able to listen in on the calls, as well as intercept other forms of electronic communication. READ MORE
10:14 AM
ICICI Securities on Page Industries
We tweak our numbers marginally and revise FY19/FY20E earnings upwards by 2.9%/2.6%. With recent sharp run-up in stock price, Page is currently trading at rich valuations of 59x FY20 PE. We downgrade Page to REDUCE from Hold with a revised DCF-based FY20 target price of Rs27,900 from Rs25,352.
10:00 AM
Market Check
> More on BSE Indices
| INDEX | LATEST | PREVIOUS | CHANGE | CHANGE(%) |
| BSE SENSEX | 37952.74 | 38024.37 | -71.63 | -0.19 |
| BSE 500 | 15487.38 | 15500.19 | -12.81 | -0.08 |
| BSE MID-CAP | 16361.60 | 16340.88 | 20.72 | 0.13 |
| BSE SMALL-CAP | 16933.90 | 16916.85 | 17.05 | 0.10 |
| S&P BSE LARGECAP | 4443.80 | 4450.44 | -6.64 | -0.15 |
9:45 AM
RESULT PREVIEW State Bank of India hopes to turn the tables in Q1 results on Friday
Country’s largest lender State Bank of India is expected to report signs of lesser asset quality pressures in the first quarter as resolutions to big-ticket stress loans get initiated. However, it may report a drag on profitability due to subdued contribution from treasury amid volatile bond markets.
The interest rate reversals for loans that slip into bad loan category and sluggish credit growth in early months of the next financial year FY19 may adversely impact interest income. READ MORE
9:30 AM
News Impact
Jet Airways board defers Q1 results as audit committee refuses approval
Facing financial headwinds, in a rare development, Jet Airways today deferred announcing the June quarter numbers to an unspecified late date.
In a BSE filing late in the evening, the Naresh Goyal-run airline, which had its AGM in earlier in the day, said the board of directors decided not to review the unaudited financial performance for the June quarter. READ MORE
News Impact
9:23 AM
PSU Bank index falls over 1%; top losers
9:19 AM
Sectoral Trend
9:18 AM
Top Sensex gainers and losers
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First Published: Aug 10 2018 | 8:15 AM IST
