MARKET WRAP: Sensex settles over 37,600 ahead of RBI rate meet; RIL up 3%

Among sectoral indices, the Nifty IT index ended over 1% higher led by a rise in Tech Mahindra and MindTree.

11:12 AM

Anand Rathi on Century Plyboards

Century reported in-line operating performance in Q1 FY19 while PAT was boosted 33% y/y on the lower depreciation (policy changed to SLM vs. WDV earlier). The higher plywood margin (due to lower core veneer costs) more than offset the impact of lower margins in laminate (rising input costs) and MDF (price cut).

We expect CAGRs over FY18-20 of 16%, 21% and 31% in respectively revenue, EBITDA and PAT. While short-term challenges are visible, we are optimistic about long-term structural growth. We maintain our Buy rating on the stock

11:02 AM

Top Nifty50 losers

COMPANY	LATEST	PREV CLOSE	LOSS()	LOSS(%)	VOLUME
INDIABULLS HOUS.	1299.70	1340.75	-41.05	-3.06	462252
AXIS BANK	556.85	569.65	-12.80	-2.25	12012432
B P C L	387.90	395.75	-7.85	-1.98	1640142
H P C L	282.25	287.60	-5.35	-1.86	1249936
VEDANTA	220.90	224.90	-4.00	-1.78	3089288

10:45 AM

Monetary Policy preview: Will the RBI hike interest rates tomorrow?

 

The Reserve Bank of India's (RBI’s) Monetary Policy Committee (MPC) will release its policy statement on Wednesday, August 1, 2018. Currently, the repo and reverse repo rates stand at 6.25 per cent and 6 per cent, respectively.

 

The policy comes amid rising inflation and a falling rupee. The widening current account deficit in an election year is also a key monitorable for the policymakers. So, will the RBI raise interest rates in its upcoming monetary policy review tomorrow? Click here to know what top research houses and brokerages expect.

Reserve Bank of India

10:40 AM

Equinomics recommends HPCL

 

HPCL trades at an attractive valuation of 7.6x its standalone FY2019E EPS of Rs.37.8 and at 6.6x its FY2020E EPS of Rs.43.3. We believe that HPCL will gain more from the expected oil price fall as it derives a larger chunk of its margins from the oil marketing operations. Hence, we continue to recommend a BUY call on HPCL with a target price of Rs.450, which is 10.4x FY2020E EPS of Rs 43.3

10:36 AM

Anand Rathi on Dishman Pharma

 

An integrated CRAMS operator, Dishman’s products include APIs, high-potent APIs, intermediates, vitamin-D analogues and cholesterol, lanolin-related products, antiseptic and disinfectant formulations. With its focus on improving profitability through a ramp-up in its CRAMS and vitamin-D businesses, we expect a ~26% earnings CAGR over FY18-20. On the recent fall in the stock price, we upgrade our rating to a Buy, with a price target of Rs 380.

10:29 AM

IIFL on Bharti Airtel

In our view, Bharti’s capacity can rise significantly this year if it deploys 2300MHz on a majority of its 4G sites that still run only on 1800. Bharti’s pan India VoLTE deployment after finishing network retuning is also a positive. We maintain our steady state RMS estimates, marginally raise Bharti target price to Rs 456 due to Africa (retain BUY) and raise JIO’s EV by US$3bn to US$61bn based on higher valuation for FTTH. Vodafone-Idea’s financial stress may result in upsides for JIO and to some extent for Bharti.

10:28 AM

Emkay Global on Bank of Baroda

Slippages during the quarter cooled of sequentially to Rs28.7bn against ~Rs117.7bn during last quarter. Credit cost also eased to ~154bps against ~658bps last quarter. Though overall slippage trend may ease, credit costs to stay elevated in near term.

 

Consistency in credit is certain; however, provisioning remains ambiguous. Reducing our earnings estimates by ~53%/24% for FY19/20E respectively. Maintain ACCUMULATE with revised price target of Rs149, 1.3x P/Adjusted FY20E (0.8x P/B FY20), ~9.4x FY20 earnings.

10:27 AM

RESULT IMPACT InterGlobe Aviation skids 11% on weak June quarter results

 

InterGlobe Aviation (owner of airline IndiGo) has dipped 11% to Rs 891, also its 52-week low on the BSE in early morning trade, after the company reported a 96% year on year (yoy) decline in net profit at Rs 278 million in June 2018 (Q1FY19) quarter. The analysts on an average had expected a profit of Rs 5 billion. READ MORE

10:15 AM

IndiGo Q1 net profit plunges 96% to Rs 278 million, more trouble ahead

 

If the March quarter numbers were disappointing, with a 73 per cent year-on-year fall in net profit, the June quarter performance at InterGlobe Aviation (owner of airline IndiGo) was worse. With a spurt in fuel cost and pricing pressure, the company reported a 96 per cent decline in net profit over the year ago quarter to Rs 278 million — analysts had expected Rs 5 billion.

 

Compounding matters for it was foreign exchange (forex) losses, given the depreciating rupee and unusually high maintenance cost, due to an older fleet of aircraft. READ MORE

10:00 AM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	11294.40	11319.55	-25.15	-0.22
	9607.10	9618.70	-11.60	-0.12
	18874.20	18801.85	72.35	0.38
	7451.45	7437.85	13.60	0.18
	12.74	12.59	0.15	1.19

9:49 AM

Crypto blues! Bitcoin falls below $8,000 as investors shy away from risks

 

Bitcoin briefly fell below $8,000 on Monday as investors scaled back their exposure to cryptocurrenices, after a sell-off in shares of technology and internet companies spilled over into other risky assets.

 

"It looks like the entire market is in a risk-off mood today. It started with the (FAANG) stocks, but the mood seems to be dragging down crypto markets as well at the moment," said Mati Greenspan, senior market analyst at eToro. READ MORE

9:39 AM

NEWS ALERT BoJ cuts inflation forecast for current year, FY19, FY20

9:39 AM

NEWS ALERT Bank of Japan maintains policy balance rate at -0.1%

9:30 AM

Interview of the day BlackRock will not be back in foreseeable future in India: Kalpen Parekh

 

In the first interview after DSP bought out BlackRock’s 40 per cent stake in DSP BlackRock Investment Managers, Kalpen Parekh, president of the mutual fund house,talks about strategy changes and related matters. Click here for full interview

President of DSP BlackRock Kalpen Parekh

9:20 AM

Nifty sectoral trend