MARKET WRAP: Sensex jumps 551 pts as govt assures RBI autonomy; HDFC up 6%

Nifty IT index settled 4.2 per cent higher led by gains in Tech Mahindra and Infosys. The Nifty Financial Services index too rose 2.3 per cent led by Indiabulls Housing Finance and HDFC

1:08 PM

Anand Rathi on Majesco

 

CMP: Rs 468

Target Price: Rs 570

Rating: Buy

 

With $34m revenue, Majesco US (the underlying) had a steady Q2 (up 1.5% q/q, 12% y/y), as cloud-revenues (contributing 39% and growing 9% q/q, 41% y/y) displace traditional service revenues (down 3% q/q, 1% y/y). The transition hit the order book, at $73m (down 10% q/q, 5% y/y) leading to expectations of a slow H2. Majesco won its second deal through IBM, not yet in the order book, likely to benefit FY20. The EBITDA margin at 11%, up 272bps q/q, was driven by currency, higher offshore and SG&A discipline, and is likely to persist. We maintain our Buy, with a Rs 570 target (Rs 575 earlier) while moving to a PE-based valuation (from EV:Sales) reflecting profitability and scale.

1:02 PM

Anand Rathi on HIL

 

CMP: Rs 2,153

Target price: Rs 2,763

Rating: Buy

 

We believe that HIL, with its leading position, expansion in a high-growth market and its better operating performance, will post a sturdy performance. We, therefore, retain our Buy rating, with a target of Rs 2,763 at a 15x PE on FY20e. Risk: Higher input costs.

1:01 PM

Investors in ICICI Bank subsidiaries can look forward to better days

 

Sandeep Bakshi’s elevation to the head office has done a great deal of good to the ICICI Bank stock. For one, sentiment has improved, as uncertainty about the top management following the Chanda Kochhar controversy has subsided. The stock is now not far away from its all-time high. After Bakshi took over as MD and CEO, the bank's financials began looking up, thanks to the various measures taken by its management. Read more

12:51 PM

NEWS ALERT Govt says

Extensive consultations on many issues to take place between govt, RBI frequently

12:50 PM

NEWS ALERT Govt says

Autonomy of RBI within the framework of RBI act is essential

12:49 PM

NEWS ALERT Govt says

Will continbue to place assessments, suggestions post consultaion with RBI

12:43 PM

Finance ministry to shortly issue a statement on government-RBI rift

The government will soon issue a statement to address the growing differences between the finance ministry and the country's central bank, Economic Affairs Secretary Subhash Chandra Garg said on Wednesday.

 

Earlier in the day, television channels reported that Reserve Bank of India Governor Urjit Patel may consider resigning from his post given a breakdown in relations with the government, sparking a sell-off in the rupee and government bonds. READ MORE

12:28 PM

What ails Baba Ramdev's Patanjali?

 

After clocking in sales of Rs 120 billion in financial year 2017 – 18 (FY18), Baba Ramdev – led Patanjali Group could now enter the slow lane. According to a recent IIFL report co-authored by Percy Panthaki, Avi Mehta and Sameer Gupta, sales of Patanjali products have halved from two year earlier levels. The report, based on on-ground channel checks in Mumbai, suggests the development, could prove to be a boon for listed players like Dabur and Colgate Palmolive (India). Read more

12:17 PM

Tech Mahindra gains 8% as margins impress in Q2

 

Shares of Tech Mahindra have moved higher by 8% to Rs 741 per share on the BSE in intra-day trade after the company’s Ebitda (earnings before interest, tax, depreciation and amortization) margins in the September quarter (Q2FY19) expanded 240 bps sequentially at 18.8%, mainly led by operational efficiencies and currency tailwinds. On a year-on-year basis, Ebitda margins were improved by 430 bps. Read more

 

12:00 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,836.12	-55.01	-0.16
S&P BSE SENSEX 50	10,672.09	-7.57	-0.07
S&P BSE SENSEX Next 50	30,819.66	+42.96	+0.14
S&P BSE 100	10,470.25	-4.11	-0.04
S&P BSE Bharat 22 Index	3,326.44	-26.77	-0.80

11:44 AM

Nifty IT index up over 2.5% led by Tech Mahindra

11:30 AM

'Investors may get an opportunity to buy banks, NBFCs at lower levels'

 

Markets are trying to find their feet after a sharp fall. Saravana Kumar, chief investment officer at LIC Mutual Fund tells Puneet Wadhwa that investors should focus on large-cap schemes in these uncertain times. Markets, he says, will be watching what the outcome of the upcoming state polls have on economic reforms and pre-general election alliances. Click here to read full interview

Saravana Kumar, chief investment officer at LIC Mutual Fund

11:15 AM

RBI Guv Urjit Patel's exit will dent market sentiment again, say analysts

 

The ongoing spat between the government and the Reserve Bank of India (RBI), if not contained, will have dire consequences on the markets, feel Dalal Street experts. At this crucial juncture, when markets have started recovering after NBFC turmoil and supportive global cues, the resignation of the RBI Governor Urjit Patel will rattle investor sentiment, they say. Read more

11:00 AM

Cummins India surges 14% as Q2 earnings beat estimates

 

Shares of Cummins India have surged 14% to Rs 769 per share on the BSE after the company reported a better-than-expected 39% year-on-year (Y-o-Y) jumped in its net profit at Rs 2.12 billion in September quarter, on back of higher revenue. It had a profit of Rs 1.53 billion in the same quarter a year ago. The company achieved the highest ever sales of Rs 14.52 billion in Q2FY19, up 30%, as compared to Rs 11.18 billion recorded in the same quarter last year. Read more

10:56 AM

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