MARKET WRAP: Indices end flat, Sensex slips 27 pts; Suzlon Energy gains 31%

In the broader market, the S&P BSE MidCap index gained 54 points, or 0.38 per cent to 14,170, while S&P BSE SmallCap index settled at 13,518, up 104 points, or 0.77 per cent.

1:37 PM

Nomura on banking sector

The government has announced its final tranche of Rs 48,000 crore of capital infusion into PSU banks, taking the total capital infusion to ~ Rs 95,000 crore for FY19 vs. the initial plan of Rs 65000 crore for FY19. Of the amount infused in 2HFY19, 75%+ has gone to PCA (prompt corrective action) banks and that largely addresses capital issues of PCA banks but will lead to massive dilution in these banks (2HFY19 infusion is ~80% of current market cap of PSU banks in PCA). Pricing power remains strong and the credit cycle is normalising and, hence, we are positive on corporate banks and prefer corporate private banks (ICICI Bank [ICICIBC IN, Buy] and Axis Bank [AXSB IN, Buy]) followed by SBI (SBIN IN, Buy).

1:10 PM

Web Exclusive | RCom, Reliance Capital: Here's how ADAG stocks look on the technical charts

Reliance Nippon Asset Management (RNAM): The weekly formation shows a double-bottom pattern, and needs to hold current levels of Rs 180 for another two - three sessions to gain further ground. It is well poised above 100-day moving average located at Rs 150, which is a key support for the stock as per the chart pattern.

 

Reliance Capital (RCap): The stock is trading with MACD (moving average convergence and divergence) below zero line. However, it has made a positive crossover and now needs to cross Rs 170 level, its immediate resistance, to gain ground. The RSI (Relative Strength Index) has already crossed 50. READ MORE

12:44 PM

This shipping stock gains over 70% in two months; trades near all-time high

Shares of Seamec hit a 52-week high of Rs 347 apiece, up 7 per cent on the BSE in an otherwise subdued market. In the past two months, the stock of shipping company zoomed 73 per cent from the level of Rs 201, after it reported a strong set of numbers for December 2018 quarter (Q3FY19). In comparison, the S&P BSE Sensex was up 1 per cent during the same period. Seamec is trading close to its all-time high of Rs 385 touched on February 18, 2000, on the BSE in the intra-day deal. READ MORE

 

12:29 PM

Lack of new launches in near term a worry for Natco Pharma stock

Prior to January 2018, shareholders of Natco Pharma had little reason to complain. The stock had risen 40 times over the past decade. However, since the last year, it has corrected 26 per cent as outlook for earnings growth remains subdued. Natco has, over the past few years, successfully penetrated the US market with niche product launches via tie-ups with established players in the generic space. READ MORE

12:09 PM

Nifty Metal index is trading over 1 per cent higher

12:03 PM

Market check

11:55 AM

Motilal Oswal on Tech Mahindra buyback proposal

Post buyback, adjustment to net cash position by Rs 1,956 crore implies a total treasury income reduction of Rs 1.1/150 crore for FY20/21. Total share count post

buyback will be 86.7 crore. Factoring in this, our EPS estimate for FY20/21 has marginally increased by 30bp/10bp.

11:43 AM

Lower growth capital remains a key challenge for banks under PCA

In a move to take some more public sector banks (PSBs) out of the Reserve Bank of India’s (RBI’s) prompt corrective action (PCA) framework, over 59 per cent of the approved Rs 48,239-crore capital infusion was allocated to a few PCA banks by the government on Wednesday. Having got the highest capital allocation, Corporation Bank and Allahabad Bank, which were allocated highest recap amout, are potential candidates that could come out of PCA.

 

Not surprising that shares of these banks surged 5 per cent and 19 per cent, respectively, on Thursday. READ MORE

11:28 AM

Top gainers and losers on S&P BSE Sensex

11:13 AM

Bata India hits record high; stock zooms 50% in 4-months

Shares of Bata India hit a new high of Rs 1,301 apiece, up 1 per cent on the BSE, surging 50 per cent in past four months after it reported a strong earnings growth in December 2018 (Q3FY19) quarter and foreign portfolio investors buying. In comparison, the S&P BSE Sensex was up 6 per cent during the same period.

Thus far in the calendar year 2019 (CY19), Bata India has outperformed the market by gaining 15 per cent, against unchanged benchmark index. In CY2018, it soared 52 per cent, as compared to a 6 per cent rise in the Sensex. READ MORE

10:58 AM

Top gainers on BSE500

COMPANY	PRICE(rs)	CHG(rs)	CHG(%)	VOLUME
SUZLON ENERGY	4.99	0.56	12.64	6499453
REL. COMM.	6.98	0.65	10.27	9660572
RELIANCE INFRA.	133.80	9.40	7.56	1171677
TAKE SOLUTIONS	106.25	7.25	7.32	29700
RELIANCE NIP.LIF	199.30	12.25	6.55	336909

10:44 AM

Reliance Nippon Life extends rally; stock zooms 44% in two days

Shares of Reliance Nippon Life Asset Management have surged 20 per cent to Rs 224 on Friday in intra-day trade, zooming 44 per cent in past two trading days on the BSE, after Reliance Capital decided to put its stake in the company up for grabs. On Thursday, Reliance Capital said it had invited equal joint venture partner Nippon Life Insurance of Japan to acquire its 42.88 per cent stake in the asset manager. Nippon Life Insurance Company currently holds 42.88 stake in Reliance Nippon Life Asset Management. READ MORE

10:32 AM

Reliance Nippon Life extends rally; stock zooms 44% in two days

Shares of Reliance Nippon Life Asset Management have surged 20 per cent to Rs 224 on Friday in intra-day trade, zooming 44 per cent in past two trading days on the BSE, after Reliance Capital decided to put its stake in the company up for grabs.

On Thursday, Reliance Capital said it had invited equal joint venture partner Nippon Life Insurance of Japan to acquire its 42.88 per cent stake in the asset manager. Nippon Life Insurance Company currently holds 42.88 stake in Reliance Nippon Life Asset Management. READ MORE

10:13 AM

Axis Securities on Aarti Industries

We expect revenues to increase at 23% CAGR over FY18-21E; earnings to grow at 27% CAGR to be driven by
-- Growth in the specialty chemical (SC) sector, both globally & domestically, to aid demand for AIL’s products

-- Growth in the cash cow SC business from increasing utilization and expanding capacities

-- Higher utilization in the recently started Toluene derivative business (very few domestic manufacturers) as the demand for these products, mostly fulfilled by imports, remains high

-- Three Multi year deals which provide a long term & sustainable visibility for future revenues & margin growth

-- Growth in the pharma business on account of revival in global pharma industry, better regulatory/compliance framework and AIL’s strong & in-depth R&D

 

We initiate coverage with BUY rating and a target price of Rs. 1599 i.e. nearly 22% upside (implies nearly 19x FY21E)

10:10 AM

Standard Chartered on Mahindra CIE

The stock has made a double top around Rs 300 and has started moving down. The supports are placed at Rs 204 and Rs 168.The resistances are placed at Rs 268 and Rs 300, respectively. The RSI is trading below the 40 mark and is in bearish mode. The short-term and medium-term trends for the stock are weak.