F&O Expiry: Sensex falls 344 pts, Nifty at 10,125; Bharti Airtel slips 6%

Among the sectoral indices, the Nifty Bank index fell 1 per cent led by fall in the share prices of YES Bank, HDFC Bank and State Bank of India (SBI).

10:15 AM

Contest in the skies: IndiGo blames rival carriers for pricing pressure

 

India’s largest airline, IndiGo, on Wednesday posted its first-ever loss since its public listing. However, it vowed to aggressively participate in a price war that now threatens to saddle India’s airlines, faced with a high fuel price and a weaker rupee, with heavy losses. The airline blamed rivals for the prolonged low-fare environment, saying that it has no option but to match the fares in order to hold onto its market share. Read more

10:01 AM

MARKET ALERT Sensex breaches 33,700 for first time since April 9

10:00 AM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,696.18	-337.78	-0.99
S&P BSE SENSEX 50	10,599.09	-104.77	-0.98
S&P BSE SENSEX Next 50	29,879.29	-277.95	-0.92
S&P BSE 100	10,361.22	-101.47	-0.97
S&P BSE Bharat 22 Index	3,300.90	-26.38	-0.79

9:55 AM

Nifty Realty index trading 2% lower weighed by Godrej Properties

9:45 AM

Bharti Airtel Q2 results today; here's what top brokerages expect

 

Telecom major Bharti Airtel is scheduled to announce its September quarter earnings for FY19 on Thursday. The company had reported a 74 per cent drop in its net profit at Rs 973 million for the quarter ended June 30. Revenue had dipped about 9 per cent to Rs 200.80 billion during the same period. On a year-to-date (YTD) basis, the company's stock has surged around 11 per cent as compared to about half a per cent rise in S&P BSE Sensex. Read more

9:37 AM

Anand Rathi on Oberoi Realty

A change in stance a couple of quarters back (to focus on volumes), backed by the introduction of a subvention scheme, helped Oberoi start the year on a strong note. Momentum has persisted through Q2, helped by the release of further units at some of the projects.

We see the environment turning all the more conducive to disciplined players like Oberoi as some not-so-disciplined ones struggle (owing to the recent NBFC issue) and as Oberoi uses it to its benefit. Oberoi it would use its balance sheet and the challenging environment for some to further strengthen its position.

9:36 AM

Centrum Broking on GlaxoSmithKline Pharma

We maintain Sell rating on GlaxoSmithKline Pharma (GSK) and revise our target price to Rs950 (earlier Rs1,900 cum bonus) based on 24x March’20E EPS of Rs39.6. GSK’s Q2FY18 results were better than our estimates. GSK’s revenue declined by 2%YoY, EBIDTA margin dropped 280bps to 20.2% and net profit before EO item declined by 10% YoY on a higher base in Q2FY18 after GST implementation.

GSK’s major brands grew by high single digit to double digit during the quarter. That said, the company has a strong presence in the vaccines segment and derives ~20% revenues from the same. Key risks to our assumptions include faster-than-expected growth in the domestic market, re-structuring benefits and higher growth of its flagship brands. We recommend a switch to other pharma companies, Sanofi India or Pfizer, due to GSK’s rich valuations.

9:35 AM

Prabhudas Lilladher on Mahindra & Mahindra Financial Services

Being cautiously optimistic we build in 17% AUM growth into our FY19 estimates underpinned by stronger availability of funds on back of rich promoter backing, anticipated seasonally strong 2H and improving portfolio quality. With operating leverage already in place, bettering rural cash flows and therefore normalization of credit costs (expect steady1.8% over FY20-21, Q2FY19: 1.7%) should help deliver RoAs at 2.4% by FY21. We retain ACCUMULATE, introduce FY21 estimates & roll-over TP to Sep-21 ABV at Rs 516(earlier Rs 543) valuing at 3.1x inclusive of subsidiaries’ value Rs 80.

9:33 AM

Emkay Global on Hexaware Technologies

EBIT margins improved 140bps to 15.4% vs. our expectation of 14.6% in the quarter, on better utilization (up 70bps helped by OPM) and cross-currency benefits (95bps). However, management cautioned on profitability in the near term due to the furloughs factor, wage hikes, and other supply-side constraints.
 

While ~30% correction in the stock price in the quarter has met our target price on the stock, the renewed caution on business and profitability warrants a further cut on our target multiple on the stock. We now assign a Hold rating on the stock, with a target price of Rs360, valuing it at 15x Sep’20E EPS.

9:32 AM

Jefferies on Jubilant Foodworks

Rating  BUY

Price Target Rs 1,450

 

Q2FY19 revenue and EBITDA growth at 21.3% YoY and 44.4% YoY respectively came in-line with our estimates while PAT growth at 60.2% YoY was slightly lower due to higher than expected tax rate. SSSG at 20.5% YoY met expectations but sustainability needs to be seen as base catches up in Q3FY19. Despite increased competitive intensity and pressure in staff costs, management remains confident on SSSG and margins. Maintain Buy with PT of Rs 1450.

9:30 AM

Kerala floods, Re fall, higher input cost to dent Maruti's Q2 performance

 

India's biggest car manufacturer Maruti Suzuki India (MSIL) is expected to announce its September quarter earnings for FY19 on Thursday. The auto major is likely to report subdued numbers for July-September period owing to a host of headwinds such as commodity inflation, adverse currency movements, delayed festive season and Kerala floods. Read more

9:26 AM

Nifty Metal index slips over 1%

9:22 AM

Bharti Airtel among top losers on Nifty 50 in opening trade

9:19 AM

Sectoral trend on NSE

9:18 AM

Opening losers in BSE Sensex