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.

10:08 AM

Nifty Auto index is trading 0.73 per cent higher

10:03 AM

Market check

9:54 AM

Goldman Sachs says 'laggard India is a large overweight' among Asian MFs

While Asian equities have risen to start 2019, the region’s funds may not be doing as well. Asian mutual funds have lagged behind their benchmarks due to conservative positioning, as well as concentrations in sectors and geographies that haven’t done as well to start this year, Goldman Sachs Group Inc. analysts led by Sunil Koul wrote in a Feb. 18 note with a quarterly update of regional fund flows and positioning. READ MORE

9:42 AM

S&P BSE Oil and Gas up over 0.5%

9:32 AM

Despite capital infusion, full turnaround two years away for PSBs: Moody's

The fresh round recapitalisation of 12 state-run banks is positive as it will help them improve their core capital but a complete turnaround is still away due to the large quantum of legacy bad loans, says report. On Wednesday, the government had announced Rs 48,239 crore capital infusion into 12 public sector banks in this fiscal to help them maintain regulatory capital requirements and finance growth plans. READ MORE

9:19 AM

Sectoral trend on NSE

9:18 AM

Opening gainers and losers on S&P BSE Sensex

9:16 AM

Market at open

At 9:15 AM, the S&P BSE Sensex was trading at 35,847, down 52 points, while the broader Nifty50 was ruling at 10,772, down 18 points.

9:13 AM

MARKET OUTLOOK :: Edelweiss

Overall, Street estimates are still optimistic with Q4FY19 EPS asking rate of 40% and FY20 EPS forecast forecast of 26% (Edelweiss FY18/FY19/FY20 estimates: Rs 443/513/652; consensus: Rs 443/506/637). This, along with high valuations, renders us cautious on the market. We see Nifty hovering in the 9,800-10,500 range till June and maintain a defensive bias in our model portfolio

9:11 AM

Emkay Global on Q3FY19 earnings

Q3FY19 results reflect a combination of steady sales growth after a deceleration from Q1FY19, rising cost pressures, depreciation in rupee and higher interest costs. These factors have impacted earnings growth of Indian companies. Earnings growth for benchmark indices (Sensex-Nifty companies) has been modest at 8-9% yoy for Q1-Q3FY19. Against this average, the full-year consensus growth estimate for FY19 at 18% and FY20 at 24% look very optimistic. Hence, even after 4.2% and 2% earnings cut for FY19E and FY20E, we believe that there is still scope for a steep downgrade in the coming quarters.

Earnings growth boosters include: 1) higher central and state government spending in the run up to the upcoming general election (boosting consumption in both urban and rural areas); 2) a relapse of INR/USD depreciation; and 3) the recent decline in commodity prices, which could improve Q4FY19 prospects. Challenges might emerge from the recent deceleration in global trade volumes, the relapse of tight liquidity, return of uptrend in global crude prices (recovered to 34% at USD67/bbl from recent lows), and the uncertainty surrounding the government's capital outlay

9:11 AM

MARKET COMMENT :: Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas

As we inch closer to the upcoming general elections one can except the volatility to increase further. Oil prices have inched to their highest levels in 2019  which continues to be a major concern for import dependent countries like India.

 

Going forward earnings will be the main catalyst for further market upside. We continue to remain selective and feel that consumption as a theme will do well in the coming quarters. With the government looking to boost rural income through various initiatives such as MSP, basic income schemes etc will help sustain demand growth in consumption stocks.

 

We continue to like consumption names such as Bata India and Titan. Expect consumption stocks to deliver Robust revenue growth and strong same store sales growth (SSSG) in the coming quarters

9:10 AM

MARKET COMMENT :: Chris Wood of CLSA

The base case remains that a US-China trade deal is coming, as negotiations have continued in Washington this week. This should continue to support stock markets for now, helped by the following wind provided by the “Powell Pivot”. Money market futures are now discounting no rate hike this year and one rate cut in 2020. This contrasts markedly with what was discounted just three months ago in early November 2018, when the Fed funds futures were discounting a 50bp rate hike in 2019 and no rate cut in 2020

Christopher Wood, CLSA

9:10 AM

PhilipCapital on India Banking

We continue to like state bank of India amongst public bank. Diminishing stressed pool of loans, aided by an expected recovery of bad loans under NCLT, will bring down GNPA/NNPA ahead. Credit costs would remain high due to higher coverage. We expect FY19 to stage a recovery led by an improvement in NIMs and a rebound in credit growth to c.11%, accentuated by portfolio acquisition from NBFCs. Increase in the CD ratio (from 63% in FY18) to aid NIMs. We expect RoA to improve to 0.2%/0.8% in FY19/20. SBIN is likely to report +13% RoE in FY20, which would warrant a premium over its book value to its core business. At CMP, the stock trades at 1.0x/0.9X FY20/21 core ABVPS of Rs 212/244 (subsidiaries at Rs 74 per share). We have buy rating with a TP of Rs 370.

9:05 AM

Market at pre-open

9:01 AM

Rupee opening

Rupee opens unchanged at 71.24 against the US dollar