MARKET WRAP: Indices end flat after 3-day rally; Sun Pharma gains 3%

All that happened in markets today

11:29 AM

IndusInd Bank hits 5-month high; regains Rs 1 trillion market cap mark

Shares of IndusInd Bank are trading higher for the third straight day, hitting five-month high of Rs 1,685, up 3 per cent on the BSE, in intra-day trade on Thursday in an otherwise range-bound market. The stock was trading at its highest level since October 16, 2018. READ MORE

11:17 AM

Nifty IT index is trading over 0.5% lower

11:07 AM

Heatmap: S&P BSE Sensex

10:57 AM

Market regulator Sebi plugs critical loophole in new delisting regulations

The Securities and Exchange Board of India (Sebi) has plugged a critical loophole in the new delisting regulations. On Wednesday, the market regulator amended delisting regulations to allow acquirers to make a ‘counter-offer’, in case price discovered through reverse book building (RBB) was not acceptable to them. READ MORE

10:46 AM

Muthoot Finance hits new high; surges 26% in five-weeks post Q3 results

Shares of Muthoot Finance continued their upward journey, hitting new high of Rs 612, up 3.3 per cent on the BSE in intra-day trade on Thursday on expectation of healthy growth going forward. READ MORE

10:37 AM

IPO WATCH :: MSTC

The initial public offering (IPO) of government-owned MSTC was subscribed 5 per cent on Day 1. So far, the issue has garnered bids for 810,180 shares against 17 million shares on offer. The IPO will remain open for subsc­rip­tion till Friday. The firm has set the price band at Rs 121-128 a share. MSTC offers a discount of Rs 5.5 per share on the allotment price to retail investors. READ MORE HERE

Illustration: Ajay Mohanty

10:35 AM

SECTOR WATCH :: Tyre stocks trade weak

COMPANY NAME	LATEST	HIGH	LOW	CHG (rs)	CHG(%)	VALUE (rs CR)	VOLUME
APOLLO TYRES	221.75	226.95	221.35	-3.70	-1.64	0.98	44130
JK TYRE & INDUST	95.15	96.80	95.15	-1.45	-1.50	0.31	32103
GOVIND RUBBER	4.07	4.07	4.07	-0.21	-4.91	0.00	8210
CEAT	1153.00	1167.80	1153.00	-4.00	-0.35	0.73	6305

10:33 AM

Reliance Securities on KEC International

We expect strong order intake traction to continue led by higher T&D spending by the SEBs, improved railways ordering and recovery in overseas markets. f We expect KEC’s earnings to clock 13% CAGR through FY18-21E on the back of strong order book, healthy outlook in non T&D and other emerging segments. f We maintain our BUY recommendation on the stock with an revised Target Price of Rs 383, valuing the stock at 15x FY21 earnings.

10:33 AM

Top gainers (BSE 500)

COMPANY	PRICE(rs)	CHG(rs)	CHG(%)	VOLUME
TATA COFFEE	97.20	5.20	5.65	114783
STAR CEMENT	105.55	5.45	5.44	10753
WESTLIFE DEVELOP	431.00	21.70	5.30	66441
JM FINANCIAL	88.20	4.05	4.81	115488
HSIL	268.25	12.05	4.70	15738

10:31 AM

Jefferies on Hindalco

We believe Al LME is bottoming out and may recover as smelter spreads are still thin, alumina prices are stabilizing and as Chinese downstream demand may improve. Novelis should continue to gain from scrap tailwinds. We believe concerns around re-pricing of auto contracts downwards may be overdone as US Al auto sheet markets are still tight. FCF generation should be strong. At 5.5x FY20E EBITDA valuations appear cheap. Buy.

10:30 AM

Jefferies on industrials

Industrial stocks looked lacklustre since a year with the overhang of an uncertain election outcome in May 2019. Recent India-Pakistan tensions have seen pre-election polls moving in favour of the ruling party forming the government again. 2009 and 2014 saw industrial stocks giving strong returns both pre and post-election. In that context even post the moves from recent lows, it points to further sentimental upside. Remain positive on L&T, Voltas, ABB and KEI.

10:30 AM

Edelweiss on Rallis India

Though the new management team remains confident of recouping growth driven by capex, we believe the loss in market share and heightened competitive intensity in domestic and export markets will be key challenges. We will keep an eye on the company’s execution plan and revisit our recommendation  & estimates once we get more comfort on the same. However, at current valuation, the stock trades at 15x FY20E EPS. We maintain ‘HOLD’.

10:29 AM

IIFL on Jindal Stainless

The adverse nickel price movement that has impacted JSL in the last two quarters is now trending up, which should boost the company’s profitability in the near term. Expected price rise in stainless steel will aid restocking as well. But elevated Indonesian imports and upcoming new capacity from Tsingshan in Gujarat are concerns.

Debt reduction continues, with net debt declining by Rs4.3bn to Rs42.7bn in 9MFY19; we expect it to reduce to Rs40bn by FY20. Almost 86% of the promoter holding is pledged, but only as secondary security to banks for loans to the company. Moreover, exit from CDR would be an upward trigger. BUY.

10:29 AM

IIFL on Cummins

We recently hosted the management of Cummins India (KKC) in Mumbai, with investors. Discussions elucidated the rationale for the weak export guidance despite a strong YTD performance and the reiterated healthy outlook for the domestic business, where KKC has further strengthened its market presence. Commodity impact is transient and competitive pressures should ease and aid a 100bps recovery in gross margin in FY20. We trim FY19-21ii EPS by 1-2%

10:28 AM

JM Financial on ABB India

Stake sale in Power Grids division to Hitachi through demerger process is unlikely to impact valuations and is the best route to protect interest of minority shareholders. In our view, continuing operations are likely to trade at a premium due to a) presence in fast growth areas of industrial automation, EVs, transportation (metro and railways) and renewable energy, b) higher share of services and exports (32-35%% of sales vs 26-28% earlier) and c) deteriorating fundamentals of Power Grids division due to completion of RP-800 order (65- 70% completed) and declining PGCIL capex. We change our valuation methodology to SOTP and arrive at target price of Rs 1,400, valuing the continuing operations at 45x CY20E EPS and ABB Power Products and Systems (APPSIL) at 30x CY20E EPS