Nifty ends below 10,500, Sensex down nearly 300 pts; PSU bank index dips 2%

All that happened in the markets today.

12:45 PM

Ending licences anti-competitive: Index provider MSCI slams Indian bourses

Global index provider MSCI has slammed Indian exchanges’ decision to terminate licensing and data-feed agreements with their global counterparts.
 

MSCI, whose indices, widely used by passive investors, help channel billions of dollars into Indian markets, said the concerted announcement by three domestic exchanges was “anti-completive” and would restrict access to the Indian market. READ MORE

12:19 PM

Motherson Sumi falls 12% in three days post December quarter results

Motherson Sumi Systems has fallen 6% to Rs 321 on BSE in intra-day trade, extending its past two days 6% decline after the auto ancillary company reported a weak operational performance in December 2017 (Q3FY18) quarter.
 

The company’s consolidated net profit grew 5% to Rs 4.37 billion due to higher depreciation and tax outgo. Total sales during the quarter rose 36% to Rs 143 billion over the previous year quarter. READ MORE

12:01 PM

Nifty PSU Banks crack: PNB slips nearly 6%

11:58 AM

Sensex gainers and losers

11:55 AM

Market Check

S&P BSE Sensex	34,288.26		-0.03%
Nifty 50	10,555.85		0.10%
S&P BSE 200	4,612.64		-0.11%
Nifty 500	9,321.20		-0.03%
S&P BSE Mid-Cap	16,735.44		-0.40%
S&P BSE Small-Cap	18,182.29		-0.42%

11:54 AM

PNB scam: How Nirav Modi, one of India's richest men executed a $2 bn fraud

On Valentine’s Day, one of India’s biggest banks disclosed an almost $2 billion fraud allegedly by one of the country’s richest men, who deals in pearls and diamonds.

Shares of the lender, Punjab National Bank, plunged on the news, dragging down other lenders when it said the scam may extend to multiple banks.

With several questions still unanswered, click here’s to know about the case

11:26 AM

Sectoral Watch: Nifty PSU Banks down over 1%

11:21 AM

Market Comment

 

The recent small correction in the market notwithstanding, valuations of the Indian market are still quite stiff. The Nifty-50 Index trades at 17.9X FY2019E ‘EPS’ (free-float basis) and we build in 25.6% growth in the net profits of the Nifty-50 Index in FY2019. Notwithstanding the usual issues regarding the quantum of earnings growth, the quality of earnings growth is also quite poor with 60% of the incremental profits of the Nifty-50 Index for FY2019 coming from sectors such as PSU banks, metals & mining, oil & gas and utilities, which should logically trade at low multiples

 

(Source: Kotak Securities)

11:15 AM

INTERVIEW OF THE DAY: I am cautious on public sector banks now: Saibal Ghosh

Public sector banks have been in the limelight once again with the country’s second-largest public sector bank, Punjab National Bank unearthing fraudulent transactions. SAIBAL GHOSH, chief investment officer at Aegon Life Insurance in conversation with Puneet Wadhwa says he is remains cautious on the banking sector. Nifty earnings should grow at around 17% - 18% in FY19, he says. READ MORE

Saibal Ghosh, CIO, Aegon Life Insurance

11:02 AM

Sebi suspects price rigging by PSBs, examines stock trading pattern

The Securities and Exchange Board of India (Sebi) is examining the trading pattern in the stocks of state-run banks, following the announcement of the government’s recapitalisation programme on January 25.According to sources, the market regulator suspects price rigging by a group of investors.
 

On January 25, the Nifty PSU Bank index, a gauge of the public sector bank (PSB) shares’ performance, had declined 6 per cent. Sources said the government raised the issue of declining share prices of top PSBs, despite providing capital to revive growth. READ MORE

10:45 AM

NSE keen to buy 25% stake in Dhaka stock exchange to rival China

India’s biggest stock exchange is keen to buy a 25 per cent stake in Dhaka Stock Exchange, rivaling an offer from a Chinese bourse. READ MORE

10:32 AM

8K Miles surges 10% on launch of Blockchain Platform - 8K Health Edge

8K Miles Software Services has surged 10% to Rs 867 on BSE in intra-day trade in otherwise subdued session after the company announced that it is launching 8K Health Edge, a proprietary Blockchain platform which, may translate into solutions for some of the most complex problems in global healthcare. READ MORE

10:19 AM

Emkay Global on auto sector

 

We believe that the stage is set for strong growth in automobile demand in FY19, led by: 1) increase in Government infrastructure spending and focus on rural economy, 2) strong rural demand and higher disposable income in view of 7th Pay Commission awards, and 3) new launches. Our top picks are Ashok Leyland, Mahindra & Mahindra, Hero MotoCorp, Tata Motors and Exide Industries

10:15 AM

Edelweiss on Apollo Hospitals

 

Apollo Hospitals’ (APHS) Q3FY18 consolidated revenue grew 12%, EBITDA rose 17% YoY and margin improved 40bps YoY. 

 

Key highlights of the quarter were: 1) 6% YTD growth in Tamil Nadu region, which includes the Chennai cluster, where growth was subdued last year; 2) capex intensity down to Rs 3.8bn, but debt jumped by Rs 2bn in 9mFY18 on Rs 1bn dividend payment; 3) started oncology centre at the Navi Mumbai hospital leading to one-time advertising spend of Rs 15mn; overall losses at Rs 105mn; and 4) AHLL’s losses remained at Rs 250mn. 

 

We believe, capex peaked in FY17 and is likely to decline 50% from FY18. This, we estimate, to lead to ~200bps margin improvement over FY18-20. Maintain ‘BUY’ with TP of Rs 1,700

10:14 AM

Market Check

S&P BSE Sensex	34,351.55		0.16%
Nifty 50	10,568.40		0.22%
S&P BSE 200	4,620.75		0.07%
Nifty 500	9,334.10		0.11%
S&P BSE Mid-Cap	16,770.98		-0.19%
S&P BSE Small-Cap	18,243.22		-0.08%