MARKET WRAP: Sensex ends 155 pts lower; SBI down 4% post Q1 results

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9:17 AM

Markets at Open

At 9:17 am, the S&P BSE Sensex was trading at 37,931, down 92 points while the broader Nifty50 index was ruling at 11,443, down 26 points

9:09 AM

Jefferies on PNB

PNB reported a lower than expected loss owing to several one-offs, viz. NPL recovery, MTM of investments and gratuity amortization. While GNPLs declined, new NPL formation (agri and small ticket) still remains elevated - key negative. CET 1 is below regulatory floor but the planned Govt infusion should bring it back up. Expect gradual pick up in business, while NPL recovery should aid valuation. Maintain Hold with revised price target of Rs 90

9:08 AM

Edelweiss on HPCL

Key takeaways from our management interaction: 1) all-round improvement seen in Q2FY19: refining and marketing margins are on an uptick as key product cracks (MS, Bitumen) have improved, while diesel gross retail margins have inched up to  Rs 1.8/litre levels; 2) expansions are on track: HPCL’s brown-field expansions are poised for commissioning by FY20-21, which will further enhance refining margins, and 3) proposed Vizag expansion will enhance higher-margin distillate yield and HPCL will benefit from upcoming IMO regulations in 2020. However, we maintain that in near term, rising international fuel prices and an election heavy year will weigh on OMCs. Maintain ‘HOLD’ with revised SoTP-based target of Rs 314 (INR302 earlier)

9:07 AM

Equinomics Research on MRF

At the current market price the stock trades at 18.9x its FY2019E EPS of Rs.4,000 and at 16.5x its FY2020E EPS of Rs.4,600. We expect MRF’s earnings to improve significantly in FY2019. Restrictions on imported tyres, improved domestic automobile sales and expansion plans are expected to help MRF to post better performance in FY2019. We recommend a BUY on the stock with a short term target price of Rs.83,000 (which is 20.7x its FY2019E EPS) and continue to maintain our long term (2 years) target price of Rs.1,00,000

9:06 AM

ICICI Securities on MphasiS buyback

MphasiS has announced the buyback of shares worth Rs 988 crore at a price of Rs 1350 per share on August 7, 2018. The public announcement regarding the process, timelines i.e. record date are yet to be announced and are subject to further approvals.

 

As per the MphasiS annual report (FY18) there are 13.56 lakh shares in 20840 accounts where number of shares held are in the range of 1-500 shares. To be considered as a retail category shareholder, total value of MphasiS shares should be less than Rs 2 lakh as on record date share price. From that perspective, one should not hold more than 150 shares to be eligible for retail category. Based on limited data, we believe the acceptance ratio for the retail category will be around 70-80%.

9:04 AM

MARKET COMMENT Amar Ambani, head of research, IIFL

The main indices are making headlines at regular intervals with the Sensex ripping past the psychological 38,000 level. The banking space too clocked in major gains. Realty, metal and power sectors contributed to the rally. The broader market has been in a consolidation mode even as a steady upside is creating record highs for Sensex and Nifty. Oil prices dropped as the trade spat between US-China escalated and Chinese crude imports declined.

The outlook is a cautious start. US stocks mostly closed lower but Nasdaq managed a winning streak of eight sessions perching itself to new highs. Asian markets are low for now. Alkem Laboratories, Andhra Bank, Apollo Hospitals, Bosch, DLF, GAIL India, Hindalco Industries, State Bank of India and Voltas are set to declare Q1 results

9:03 AM

Markets at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,988.22	-36.15	-0.10
S&P BSE SENSEX 50	11,999.75	-7.25	-0.06
S&P BSE SENSEX Next 50	34,071.44	+13.09	+0.04
S&P BSE 100	11,742.94	-5.36	-0.05
S&P BSE Bharat 22 Index	3,656.51	+7.81	+0.21

8:59 AM

Nifty outlook by Prabhudas Lilladher:

 

Nifty and Bank Nifty are at the highly overbought zone with a negative divergence in the daily chart. The Nifty rally has almost touched 1,000 points from the low made at 10557 levels and we maintain the positive bias however, with caution. The support for the day is seen at 11,400 while resistance is seen at 11,520.

8:55 AM

Today's picks

 

Bharti Airtel

Current price: Rs 367

Target price: Rs 373

 

Keep a stop at Rs 363 and go long. Add to the position between Rs 371 and Rs 372. Book profits at Rs 373

 

Power Grid

Current price: Rs 193

Target price: Rs 189

 

Keep a stop at Rs 195 and go short. Add to the position between Rs 190 and Rs 191. Book profits at Rs 189.

Click here for more

8:50 AM

Top trading ideas by Anand Rathi Research

 

ULTRATECH CEMENTS: BUY

TARGET: Rs 4,420

STOP LOSS: Rs 4,230

 

The stock has provided a clear breakout from the symmetrical triangular pattern and the target on the upside comes till the next downtrend line resistance i.e. 4420. The stock has started to form higher tops and higher bottoms with a buy crossover in its momentum indicators, hence we recommend buying this for the target of 4,420 with a stop loss of 4,230

8:45 AM

Nifty outlook by Anand Rathi Research

 

The Index has closed in the positive territory in the last trading session and with that the series of higher tops and higher bottoms continues. The momentum indicator is also well into buy mode both on the daily as well as hourly charts which is quite a positive sign, hence we continue to maintain our short term as well as medium term bias positive for the target of 11,565 with a reversal pegged below 11,414

8:40 AM

Oil slips as trade worries weigh on market

 

Crude prices settled slightly lower on Thursday, extending the previous session’s losses as the escalating China-US trade dispute casts doubt over the outlook for oil demand. Brent crude futures fell 21 cents to settle at $72.07 a barrel. US crude fell 13 cents to $66.81 a barrel.

8:35 AM

Mutual funds add 8.62 lakh folios in July

 

Driven by addition in liquid fund folios, the domestic mutual fund industry has registered a surge of 8.62 lakh investor accounts in July, taking the total tally to 7.55 crore, up 1.2 percent from June, according to the data available on the Securities and Exchange Board of India’s website. Liquid funds added 41,454 accounts last month. Fund managers attributed the addition in folios of liquid funds to a reversal of June outflows.

 

Among debt categories, gilt funds saw a drop of 2,365 folios accounts in July, while income funds witnessed an addition of 20,683.

8:30 AM

SGX Nifty

 

Trends on SGX Nifty indicate a flat opening for the broader index in India, a fall of 4.5 points or 0.04 per cent. Nifty futures were trading around 11,483-level on the Singaporean Exchange.

8:25 AM

Asian shares down on trade anxiety

 

Asian stock markets fell on Friday amid heightened global trade tensions, while currency markets were whipsawed by a searing selloff in Russia’s rouble after the United States slapped new sanctions, and as economic worries sent the Turkish lira tumbling.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3 per cent. Japan’s Nikkei stock index fell 0.5 per cent despite data showing that the country’s economy expanded at a faster-than-expected annualized rate of 1.9 per cent in the second quarter in a sign of improving momentum.