MARKET WRAP: Sensex falls 336 points as ITC slips 5% following Q3 results

Among sectors, the Nifty FMCG index was the top loser of the day, falling 1.69 per cent weighed by ITC and United Spirits.

11:22 AM

Reliance Securities on Petronet LNG 

 

Rating: BUY 

Target Price: Rs 263

 

We initiate coverage on Petronet LNG (PLNG) with a BUY recommendation and a DCF-based Target Price of Rs 263, which implies 21% upside to CMP, which along with nearly 3% dividend yield would be significantly higher than its cost of equity (13%). We expect PLNG to witness 12% earnings CAGR through FY18-FY21E backed by volume growth post commissioning of Kochi-Mangalore pipeline. Further, waning investors’ concerns over new investment in Bangladesh and no competition from new terminals augur well for PLNG. As at CMP, the stock trades at 13x on FY20E EPS, which is a discount to its long term average of 15x (last 5 years).

11:15 AM

Web Exclusive Chart Check: How to trade Tata Steel, SAIL and Jindal Steel

Metal stocks took a heavy beating on Tuesday sending the Nifty Metal index tumbling. However, the stocks recovered on Wednesday with Tata Steel and Vedanta among the gainers on the S&P BSE Sensex.

 

Here's a look at how the Nifty Metal index and select metal stocks look on technical charts -

 

Nifty Metal: The weekly and monthly charts indicate bearish sentiment for the index. Both the time frames have “Head and Shoulder” patterns with clear breakdown. It has formed “Lower High and Lower low" pattern, indicating every rise has been capitalised for selling ambitions. Click here to read more

11:01 AM

Reliance Securities on HDFC Bank

 

Rating:BUY 

Target Price: Rs 2,560

 

HDFC Bank has reported a stable performance across all core metrics with 22% YoY and 20% YoY growth in NII and net profit, respectively. Core fee income continued to show strong traction led by healthy performance in payments and cash management businesses. Despite rising cost of funds, its Margin remained sequentially stable aided by a large equity base and increased lending towards high-yielding segments. Cost to income ratio continued to decline both on QoQ and YoY basis, even after excluding the impact of treasury gains during the quarter. Personal loans, credit cards and home loans witnessed a strong QoQ and YoY growth. Slowdown in auto loans (2-wheeler and 4-wheeler) was owing to lower sales volume.  On LAP front, the Bank witnessed some comeback of pricing power.

10:55 AM

Stocks that have touched 52-week low on BSE500

COMPANY	PRICE()	52 WK LOW	CHG()	CHG(%)
ADITYA BIRLA CAP	90.25	90.00	-0.70	-0.77
DEEPAK FERT.	115.00	115.00	-4.65	-3.89
DILIP BUILDCON	364.50	364.05	-3.15	-0.86
FORCE MOTORS	1506.55	1505.00	-17.15	-1.13
JINDAL STAIN.	29.65	29.15	0.00	0.00

10:44 AM

Top gainers and losers on S&P BSE Sensex

10:30 AM

Wipro hits highest level since March 2000; jumps 12% in seven days

Shares of Wipro hit a near two-decade high of Rs 353 apiece, gaining 2 per cent on the BSE, as analysts expect the company to post better revenue growth in FY20 led by continued momentum in large deal wins, robust digital growth and continued growth in BFSI (banking, financial services and insurance) and other verticals. The stock of IT services firm was trading at its highest level since March 8, 2000. In the past seven trading days, Wipro has outperformed the market by surging 12 per cent after the company on January 14, 2019, announced that its board will consider a proposal for issue of bonus shares. Read more

10:22 AM

ICICI Prudential slumps 9% after weak Q3 results

Shares of ICICI Prudential Life Insurance Company slumped as much as 9.09 per cent to Rs 312.70 apiece in the morning trade on BSE after the company's net profit dropped 34.36 per cent  YoY to Rs 296.77 crore on 35.26 per cent fall in total income to Rs 8,786.70 crore in third quarter (Octobber- December) of FY19. The result was announced after market hours on Tuesday. Meanwhile, the S&P BSE Sensex was down 43 points or 0.12 per cent at 36,401.58. The stock hit a high of Rs 336.30 and a low of Rs 312.70 so far during the day. Read more

 

10:13 AM

Go defensive as few catalysts for Indian stocks, says Jefferies

After last year’s lacklustre gains in India’s key equity indexes, the outlook is expected to be more of the same — clouded by political uncertainty and economic concerns, says Jefferies. To make money, look at large firms, banks and defensive stocks such as software exporters and utilities, they say. Read more

10:01 AM

Market Check

S&P BSE Bharat 22 Index	3,417.45	+17.33	+0.51
S&P BSE 100	11,187.94	+13.46	+0.12
S&P BSE SENSEX Next 50	32,456.34	+107.14	+0.33
S&P BSE SENSEX 50	11,430.21	+9.70	+0.08
Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,440.55	-4.09	-0.01

9:58 AM

Elara Capital on TVS Motor Company

 

We are impressed by the fact that even in 9MFY19, despite increasing commodity pressures and heightened competitive intensity TVS has reported a 20bp YoY increase in EBITDA margins. Other expenses/ vehicle has also been under control and commodity prices softening should benefit gross margins in coming quarters. We largely retain our FY19-21E EBITDA for TVS. With an expected EPS CAGR of 27% over FY18-21E, TVS remains one of highest earnings growth company in listed Auto OEMs. We reiterate Buy with a new TP of INR 685 (earlier INR 663) based on 25x weighted avg FY20-21E P/E as we roll forward.

9:52 AM

Union Budget 2019-20 preview by Motilal Oswal Financial Services

 

Given the current political milieu, we believe that some incentives to the rural sector are likely, indicating that the government’s capital spending could decline again in FY19. We expect the fiscal deficit to be 3.5% of the GDP for the third consecutive year in FY19; however, the government may show high growth for FY20 in its budget with another deficit target of 3.3%.

9:49 AM

MOFSL on Sun Pharma | Clarification on corporate governance to allay investor concerns

 

 Plagued by increasing concerns about corporate governance, Sun Pharma (SUNP) has now extended clarification on this matter. The company has announced (a) some alterations to domestic formulation distribution, (b) unwinding of a transaction with Atlas Global Trading (Atlas), (c) appointment of a new auditor in subsidiary companies and (d) clarity on loans/guarantees to Suraksha Realty.

 

 Although we like SUNP given its promising specialty portfolio/increased traction from Halol and healthy growth in the domestic formulation business, efforts toward resolving the corporate governance issues will be closely monitored. We have a Buy rating on the stock with a target price of INR560, based on 22x 12M forward earnings.

9:45 AM

Momentum picks by ICICIdirect

9:43 AM

ICICI Prudential Life Insurance is trading over 8% lower 

9:41 AM

COMMENT | Elara Capital on Zensar Technologies

 

Management expects EBITDA margin to return to ~15% in the medium term as it expects offshore execution to pick up. As part of its exit from its non-core business, Zensar announced divesture of its RoW business except for four contracts with government entities in India that are non-transferable and will be completed in two quarters. After factoring in the decline in lower margin in the non-core business, we increase EBITDA margin by 73bp for FY20E and 14bp for FY21E, but decrease it by 22bp for FY19E, given the miss in 3QFY19. We lower revenue by 0.6%, 2.8% and 2.2% for FY19E, FY20E and FY21E, respectively. We retain Buy with a TP of Rs 280 on 15x FY20E P/E.