Market snaps 9-day losing streak; Sensex jumps 227 pts, Nifty over 11,200

All that happened in the markets today

8:39 AM

Kotak Securities on Kajaria Ceramics

Last close: Rs 583

Target price: Rs 653

Recommendarion: Buy

Revenue growth of 8.7% YoY was led largely by volume growth of 11.2% YoY. Realizations declined by 2.3% YoY which impacted the margins. Operating margins stood at 15.1% vs 16% same period last year due to higher branding spend and slightly lower realizations. Net profit performance on YoY basis was impacted by fall in margins and stood lower than our estimates.

8:37 AM

HDFC Securities on Star Cement

Last close: Rs 109

Target price: Rs 150

Recommendation: Buy

During 4QFY19, STRCEM’s consolidated EBITDA/PAT declined 12/17% YoY, led by higher fuel cost amid NSR decline YoY (on higher base). Overhead cost control and increased blending ratio, however reduced the margin impact. Thus, unitary EBITDA fell 17% YoY to Rs 1501/MT (industry leading margin, despite the fall).

 

Total sales volume growth slowed to 5% YoY to 0.89mn MT. While cement sales grew 9% YoY, clinker sales fell 25% YoY. Owing to maintenance shut downs in Q4, cement sales growth in NE region slowed to 10% vs 18% in the preceding four qtrs.

8:33 AM

Hero bets on premium 125 cc segment for scooters despite slowdown in market

Despite a slowdown in the market due to poor demand, Hero is betting on the premium 125 cc segment to take a leadership position in the scooter segment. Hero launched on Monday two new scooters to cater to both, domestic as well as international markets. It introduced Maestro Edge 125 with fuel injection technology priced at Rs 62,700. READ MORE

8:30 AM

MSEI, ICEX initiate merger talks; Sebi may give nod to move, say sources

The Metropolitan Stock Exchange (MSEI) and Anil Ambani’s Reliance Capital-anchored Indian Commodity Exchange (ICEX) have initiated a merger talk, people in the knowledge of the development said. READ MORE

8:27 AM

Relief for TCS as US court rejects CSC's restraining order demand

A US court on Monday denied Computer Sciences Corp’s (CSC’s) application for a temporary restraining order against Tata Consultancy Services (TCS). CSC, a US-based insurance platform provider to a client of TCS, filed for a temporary restraining order against TCS last month, after accusing it of misappropriating its trade secrets. TCS, in turn, said CSC was trying to disrupt its $2-billion deal with their common client Transamerica. READ MORE

8:24 AM

WGC nudges govt to enforce its norms for buyers and sellers of digital gold

The World Gold Council (WGC) has developed a set of guidelines for digital gold, which includes norms for both, investors and service providers in this space. The standards, which have been designed to protect investors and promote best practices, highlight the fact that there is a need to provide for investors’ safety when they buy gold on the internet, especially in a prominent market for the metal like India. With this guidelines, the council has also nudged the government to issue regulatory norms for buying and selling digital gold in the country. READ MORE

8:20 AM

FY20 may belong to mid-and small-caps, says Anand Rathi's Pradeep Gupta

I feel that the economy will start growing and corporate earnings will accelerate and grow more than the earlier years. The reform process being implemented in the past four - five years is going to yield some positive results from the second half of this year. READ MORE

8:16 AM

Iran may offer the Farzad-B gas bloc to India on easier terms

Iran is expected to offer the Farzad-B gas bloc to India on easier terms during talks between External Affairs Minister Sushma Swaraj and her Iranian counterpart Javed Zarif, here on Tuesday. READ MORE 

8:14 AM

US antitrust probe singes India's pharmaceutical firms; Sun Pharma falls 9%

Share prices of some leading domestic pharmaceutical companies, led by Sun Pharmaceutical Industries, fell 4-9 per cent on Monday, after being named in a price-fixing lawsuit in the US.

 

The biggest loser was Sun Pharma, whose stock tanked as much as 20 per cent intraday in late afternoon trades, but recovered to close 9.4 per cent lower on the BSE. Sun Pharma, which is India’s largest pharma company by sales, is already under a cloud over corporate governance issues and is facing Sebi probe on charges of funds diversion. READ MORE

8:12 AM

US-China trade talk to be very successful: Donald Trump

- Trump was speaking at a White House Dinner meeting

Alert: US has hiked tariff on $200 bn worth of Chinese imports

        : China has retaliated by imposing tariff hike on $60 bn worth of Us goods.

 

8:08 AM

Trump and Xi to meet after defiant China hits U.S. with new tariffs: Reuters

- US President Donald Trump said on Monday he would meet Chinese President Xi Jinping next month at G20 Summit.

- The US Trade Representative’s office said it planned to hold a public hearing next month on the possibility of imposing duties of up to 25% on a further $300 billion worth of imports from China.

- Trump said it should be clear in “three or four weeks” if a US trade delegation’s trip to Beijing two weeks ago was successful.

8:04 AM

Jet Airways revival: Etihad offer hinges on Rs 9,000-cr debt write-down

Etihad Airways has put in stiff conditions, which include a substantial write down of the Rs 9,000-crore loans, as a prerequisite to run Jet Airways. The Abu Dhabi-based airline has also put the onus of finding a majority investment partner on the Jet lenders.

 

Etihad, which holds 24 per cent stake in Jet, submitted its offer last Friday just before the window closed for binding bids. SBI Capital Markets, the merchant banker for the transaction, opened the offer on Monday to find there’s no binding bid, and only a letter of interest, sources in the know said. READ MORE

8:03 AM

Nifty outlook by HDFC Securities

Carrying on from last week, markets corrected further on Monday as the Nifty ended in the red for the ninth consecutive session (nine consecutive down days for the first time in more than 8 years). The weakness came on the back of negative global markets as investors are concerned about global economic growth after trade negotiations between the US and China failed to avoid raising tariffs on $200 bn of Chinese imports into the US wef from May 10. The Nifty index ended 130.7 points or 1.16% lower at 11,148.2, a more than 2 month closing low.

 

Technically, with the Nifty moving down further, the short term trend remains down. The Nifty could now head towards the next major supports of 11024, which corresponds to the 200-day EMA. Any pullback rallies could find resistance at 11300.

 

 

8:02 AM

Sebi issues notices to Kotak MF, HDFC MF over exposure to Essel

The Securities and Exchange Board of India (Sebi) has sent show-cause notices to Kotak Mut­ual Fund and HDFC Mutual Fund, seeking details about their investments in the debt instruments of Essel Group companies. Essel Group promoters have sought time to repay their lenders. READ MORE

8:00 AM

ACC, UltraTech, Ambuja Cement: Is it a good time to buy cement stocks?

Financial results for the fourth quarter ended March 2018 (Q4FY19) has been a mixed bag with some companies across the sectors disappointing Street with their below-than-expected numbers for as well as cautious guidance. READ MORE