MARKET WRAP: Sensex sheds 71 pts; Infy slips 4.4%, RIL falls 2.5% post AGM

Among sectoral indices, the Nifty Metal index settled 1.4% lower led by a fall in shares of National Aluminium Company and Vedanta.

9:17 AM

Stocks in news 

 

 

·         RIL to hold its annual general meeting today.

 

·         Titan said jewellery business will post muted growth in June-ended quarter

 

·         Biocon’s sterile drug product facility received EU GMP certification

 

·         Yes Bank received SEBI approval to launch mutual fund business

 

·         Force Motors June total sales up 8.2% to 2,669 units

 

·         Nath Bio Genes (India) promoters released pledge on shares held by ARCIL after clearing all outstanding loans

 

·         Intellect Design Arena in pact with Banco Santander for implementation of its digital transaction banking platform

 

·         FIEM Industries partnered with Toyodeso, Japan and Toyota Tsusho, Japan for manufacturing of bank angle sensor for motorcycles in the Indian market

 

·         Future Lifestyle to acquire up to 29.9% in Koovs for Rs 140 crore

 

·         Religare files plea under IBC against Bharat Road Network claiming a default of Rs 51.3 cr

 

·         Va Tech Wabag to consider fund raising proposal on July 9.

 

·         Seamec, in consortium with Kreuz Subsea, enters into $22 million deal with ONGC for charter hire of vessel.

 

·         Som Distilleries & Breweries proposed arm acquires brewery in Odisha for Rs 46 cr

(Source: IIFL report)

9:17 AM

Market at open

 

At 9:16 AM, the S&P BSE Sensex was trading at 35,631, down 14 points while the broader Nifty50 was ruling at 10,768, down 2 points.

9:02 AM

Market at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,652.53	+7.13	+0.02
S&P BSE SENSEX 50	11,289.48	+3.82	+0.03
S&P BSE SENSEX Next 50	32,048.35	+79.87	+0.25
S&P BSE 100	11,049.71	+9.38	+0.08
S&P BSE Bharat 22 Index	3,292.19	+2.14	+0.07

(Source: BSE)

8:55 AM

Top Picks: Bank Nifty 

 

Current: 26,425 (futures: 26,425) 

Target: NA 

Stop-long positions at 26,300. Stop-short positions at 26,550. Big moves could go till 26,750, 26,100. Resistance at 26,450-26,500. 

Click here for more

8:50 AM

Top trading ideas by Prabhudas Lilladher:

 

BUY APOLLO TYRES

CMP: Rs 253.30

TARGET: Rs 270

STOP LOSS: Rs 244

 

The stock has corrected well in recent times from the level of around 300 to bottom out at around 250 levels and has indicated a positive candle pattern in the daily chart to signify strength and potential to rise further in the coming days. The RSI also has bottomed out and has shown a trend reversal from the oversold zone to signal a buy and has moved to a positive bias zone. With good volume activity witnessed, we recommend a buy in this stock for an upside target of 270 keeping a stop loss of 244. Click here for more

8:46 AM

Future Lifestyle Fashions  (FLFL IN):  Acquires 29.9% Stake in Koovs in Online Foray

Rating  BUY

Price Target Rs 540

 

FLFL has acquired a 29.9% stake in Koovs (Koovs Plc) for approx. INR1.40bn, giving it access to an online fashion platform, something that had been missing from its portfolio. With this online foray, FLFL will be able to operate an omnichannel play along with its physical store network and push its own brand portfolio. We maintain our BUY recommendation with a price target of Rs 540

(Source: Jefferies)

8:43 AM

Nifty outlook for Prabhudas Lilladher:

 

Nifty gets its daily trend turned up after 7 days and Bank Nifty‘s daily trend has turned up after 5 days. Also Nifty has crossed & closed above the hurdle of 10,730-10,750 implying room for further upside to the target of 10,800-10,850. The support for the day is seen at 10,710 while resistance is seen at 10,830. Mid Cap sector as mentioned earlier looks promising from here on & also Pharma sector with stocks like Lupin, etc.

8:38 AM

Nomura on Tata Motors

For June-18, we expect ~3% growth in overall retails for JLR and ~1% growth in wholesales. In FY19F, we factor in 9% growth in overall JLR volumes driven by full impact of RR/RR-refresh, E-Pace, XE (Long Wheel Base) in China and launch of I-Pace in Sep-18.

The stock is trading at 3.5x/2.7x FY19/20F EV/EBITDA, which is at the lowest end of the historical trading band even with EBIT margin assumptions (JLR 3.8-4.9%, Standalone 2.8%/3.5% in FY19/20F) much more conservative than guidance (JLR 4-7%, Standalone 3-5%). Maintain Buy.

8:36 AM

Kotak Securities on Adani Ports & SEZ

FY18 performance for Adani Port (APSEZ) reflect (1) strong growth in volumes across segments backed by expansion of capacity; (2) healthy contribution from subsidiary ports; (3) healthy consolidated EBITDA margin, (4) higher non-recurring income and rationalization of interest cost that boosted PAT. The company’s good FY19 volume growth guidance, led by commissioning of new ports, new cargo sourcing and market share gains, is a positive.

 

Stake dilution by the promoters of 4% gives us more comfort for addressing group level debt servicing. We estimate the consolidated entity to report volume CAGR of 11% over FY18 to FY20E with the new ports of Dhamra, Hazira, Dahej, Kattupalli and the container volume at Mundra contributing the maximum.

 

Our target price is based on SOTP valuation with a weighted average cost of capital (WACC) of 12.0% and book values for other investments. Maintain BUY with an unchanged target price of Rs 485.

8:35 AM

EVENT TO TRACK TODAY RIL to host 41st AGM today

 

The last two annual general meetings of Reliance Industries were nothing short of fun fare — announcing telecom venture Jio in the first and launch of JioPhones in the second. At the 41st AGM on Thursday, Jio may take the centre stage again.

 

According to RIL’s AGM notice, among other resolutions, RIL looks to seek shareholder approval to raise up to Rs 200 billion through non-convertible debentures (NCD). READ MORE

8:34 AM

COMMENT Dhananjay Sinha, Head, Institutional Research, Economist and Strategist, Emkay Global

A steep rise in average Minimum Support Price (MSP) by 15% for the ongoing summer crops (kharif) marks a lagged attempt to reverse the faltering farm sector fortunes and bolster the continuing rural upliftment focus of the government ahead of the upcoming elections.

These developments corroborate our overweight (OW) position on Rural Consumption and Agri sectors we have held since 2016. We maintain that RBI will hike policy repo rate by an additional 50bps during the rest of FY19; 10-year G-Sec fair value is estimated at 8.4% (8% currently). We maintain our “underweight” position on PSU Banks and remain selective on the NBFC sector plays

8:32 AM

Nomura on MSP hike

On monetary policy, the decision to raise MSP (without an effective procurement) is, at the margin, negative for inflation. With rising inflationary pressures due to strong demand, currency depreciation and higher oil prices, we continue to expect a 25bp repo rate hike in August. Beyond this, we see the current growth recovery as unsustainable; hence we see rates on hold thereafter. If MSPs are made effective, then the higher inflationary impulse could result in a more significant policy tightening,

8:29 AM

SGX Nifty

 

Trends on SGX Nifty indicate a flat opening for the broader index in India, a fall of 5.5 points or 0.05 per cent. Nifty futures were trading around 10,767-level on the Singaporean Exchange.

8:25 AM

Markets on Wednesday

S&P BSE Sensex	35,645.40		0.75%
Nifty 50	10,769.90		0.65%
S&P BSE 200	4,628.55		0.49%
Nifty 500	9,194.55		0.49%
S&P BSE Mid-Cap	15,415.26		-0.17%
S&P BSE Small-Cap	16,050.59		0.38%

8:20 AM

Asian stocks wobbly before tariff deadline in Sino-US trade row

 

Asian stocks were shaky while major currencies barely budged in early trade on Thursday, as financial markets remained in a state of anxious uncertainty on the eve of a US deadline to slap tariffs on Chinese imports.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1 per cent, having moved in and out of the red in early trade. The index has lost 1.6 per cent this week, during which it plumbed a nine-month low.

 

Asia was bereft of the usual leads as the US markets were closed on Wednesday for the Independence Day holiday. Japan’s Nikkei lost 0.15 per cent, South Korea’s KOSPI slipped 0.2 per cent, Hong Kong’s Hang Seng was off 0.2 per cent and the Shanghai Composite Index edged down 0.1 per cent.