MARKET WRAP: Sensex ends 250 pts lower as RBI maintains status quo on rates

The Nifty Metal index settled 3.7 per cent lower weighed by Jindal Steel and Power Hindalco and Tata Steel. Nifty Auto index, too, slipped 2.3 per cent due to a fall in Bharat Forge and Tata Motors

12:39 PM

Policy Preview RBI likely to hold rates, keep liquidity easy to boost bank lending

 

Analysts expect India's central bank to support an economy that is losing momentum by leaving interest rates unchanged at a policy meeting on Wednesday when just over a month ago most of them had predicted a hike.

 

Having resisted any temptation to jack up rates in October when the rupee was sliding to a record low against the dollar, the Reserve Bank of India has been vindicated by the currency's subsequent recovery, and by waning inflationary pressures thanks to falling food and oil prices. READ MORE

12:23 PM

Metal stocks under pressure; JSPL, SAIL, Prakash Industries hit 52-week low

 

Shares of metal companies, mainly the steelmakers, were under pressure with Jindal Steel & Power (JSPL), Steel Authority of India (SAIL) and Prakash Industries hitting their 52-week lows on concerns of a slowdown in demand. Nifty Metal index, the largest loser among sectoral indices, was down 3.4% at 3,124 points, as compared to 0.77% decline in the Nifty 50 index. The metal index erased its entire 2% gain recorded in past two trading days after US and Chinese leaders brokered a truce in their trade conflict. Read more

12:11 PM

Prabhudas Lilladher on S Chand and Company

 

Rating: BUY 

CMP: Rs 221 

TARGET PRICE: Rs 400

 

In our recent interaction with S Chand Ltd (S Chand) management highlighted that 1) top-line growth guidance of 13-14% for FY19E remains intact 2) EBITDA margin expansion is on the cards as paper prices are locked in at just 4-5% increase over last sourcing cycle by preponing purchase contracts 3) working capital cycle is expected to ease out by 15-20 days on renegotiation of credit terms for certain best sellers and launch of dealer finance program 4) no incremental investment (Rs~1.43bn so far) in digital space is lined up with break-even expected in 3-4 years 5) collectively the company will have to shell out Rs~1-1.2bn in FY19E for Chetana’s acquisition and buying out balance 26% stake in Chhaya Prakashini 6) tax rate will be lower by 100-200bps in FY19E due to lower tax on few subsidiaries (<Rs2.5bn in revenues) and tax break in impending restructuring exercise.

12:01 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,909.58	-224.73	-0.62
S&P BSE SENSEX 50	11,291.28	-78.20	-0.69
S&P BSE SENSEX Next 50	31,850.69	-444.85	-1.38
S&P BSE 100	11,038.97	-87.88	-0.79
S&P BSE Bharat 22 Index	3,381.39	-49.84	-1.45

11:49 AM

Auto stocks skid ahead of RBI policy outcome, Nifty Auto index slips 1.6%

 

Shares of rate sensitive automobile stocks were in focus on Wednesday ahead of the outcome of Reserve Bank of India's (RBI) bi-monthly monetary policy, with the Nifty Auto index falling as much as 1.64 per cent to 9061 levels so far in intra-day trade, weighed by shares of Bharat Forge, Tata Motors and Ashok Leyland. Tata Motors fell as much as 3.15 per cent to Rs 170 in intra-day trade on the BSE after S&P Global Ratings lowered the credit rating of Tata Motors and its luxury car unit Jaguar Land Rover Automotive Plc (JLR), citing weaker-than-expected profitability at JLR. Read more

11:39 AM

Top losers in BSE500

COMPANY	PRICE()	CHG()	CHG(%)	VOLUME
BHARAT FORGE	532.00	-49.05	-8.44	393467
JINDAL STEEL	147.10	-9.55	-6.10	727874
RELIANCE INFRA.	309.85	-19.45	-5.91	301042
IFB INDS.	830.00	-48.10	-5.48	2083
INFIBEAM AVENUES	47.70	-2.75	-5.45	997007

11:28 AM

HUL presents good opportunity to GSK shareholders; to add value in long run

 

From the share-swap ratio angle, the Hindustan Unilever (HUL)-Glaxosmithkline Consumer Healthcare (GSKCH) deal augurs well for the latter’s shareholders. However, given the premium valuations of HUL, which may cap near-term returns from the stock, should GSKCH’s shareholders stay invested? Analysts believe that growth prospects for HUL opens up a good opportunity for GSKCH’s shareholders and they should check in to the country’s largest FMCG player. Read more

11:14 AM

Nifty Metal index is trading over 3% lower weighed by Jindal Steel and Power

11:09 AM

Bharat Forge hits 52-week low; stock falls 9%

 

Shares of Bharat Forge slipped 9.5% to Rs 526, also hit its 52-week low on the BSE on back of heavy volumes, on concerns of near-term demand challenges persisting for domestic commercial vehicles (CV) due to emerging concerns on tighter liquidity. The stock of a leading auto ancillary metal forging company was trading at its lowest level since May 24, 2017. Sales of medium and heavy commercial vehicles (MHCV) for most of the manufacturers fell sharply in November after advancing at a brisk pace for over a year, reflecting a sluggishness in the overall economy. Read more

10:52 AM

S&P BSE Sensex top gainers and losers

10:37 AM

NEWS ALERT :: PMI data

The seasonally adjusted Nikkei India Services Business Activity Index rose from 52.2 in October to 53.7 in November, signalling a solid upturn in output that was the strongest since July. Firms highlighted greater client numbers, favourable market conditions and sales growth as factors boosting activity. 

 

Not only did new business increase for the ninth month in a row, but also to the joint-strongest extent in over two years. Underlying data indicated that the upturn reflected robust demand in the domestic market, as newly-launched export business data showed a renewed decline in new work from abroad.

(Source: Nikkei PMI release)

10:36 AM

Motilal Oswal Financial Services on Titan Company

 

Jewelry business growth prospects remain robust, and now Watches and even Eyewear segments have raised their hands to contribute to growth. We believe that premium valuations are fully deserved for a business that has perhaps the best revenue growth potential in the large cap FMCG/retail space (20 per cent CAGR in Jewelry business over the next five years) and also operating leverage-led margins support. We maintain our Buy rating on the stock with a target price of Rs 1,105, based on 47x Dec’20 EPS (nearly 10 per cent premium to three-year average P/E). 

10:35 AM

NEWS ALERT India Nikkei/IHS Markit November services PMI at 53.7 vs 52.2 (MoM) 

10:31 AM

Equirus Securities on IndusInd Bank

 

Rating: Overweight

Price: Rs 1,661

Target Price: Rs 1960

 

As non-food credit growth has inched up to 15.6% yoy, IIB is set to be a key beneficiary given that NBFCs and select private peers likely go slow on incremental business growth. With banks like HDFC Bank, ICICI Bank, Axis Bank and SBIN likely to have good penetration in most large corporate accounts, we believe IndusInd Bank can further increase its wallet share in such accounts despite having 75bps-100bps higher MCLR rates. Maintain LONG.

10:15 AM

S&P cuts Tata Motors credit rating on weak JLR profit, stock falls 3%

 

Shares of Tata Motors fell as much as 3.15 per cent to Rs 170.15 apiece in early trade on BSE after S&P Global Ratings lowered the credit rating of Tata Motors and its luxury car unit Jaguar Land Rover Automotive Plc (JLR), citing weaker-than-expected profitability at JLR. On Tuesday, S&P cut its rating on Tata Motors’ issuer credit and senior unsecured notes to ‘BB-’ from ‘BB’. Read more