MARKET WRAP: Sensex slides 464 points; NBFCs plunge, India VIX surges 11%

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1:55 PM

HDFC Securities on MindTree

We  maintain  positive  view on Mindtree based on: Continued traction in Digital (48.1% of rev and 35% YoY) with larger deals (highest quarterly TCV in  Digital  at  $162mn, vs $426mn in FY18); Strong deal momentum and visibility in Travel & Hospitality, Retail & CPG (to recover in 3Q) and Technology and Media verticals; Stable top accounts (marginal pricing increase in top ac) with secular growth ahead across top-20 (vs top account skew  earlier); Margin accretion with pyramid rationalization (800 fresher intake in 2H) and delivery optimization (automation)

1:45 PM

MFs pump Rs 110 bn in equities in a fortnight, FPIs stance remains bearish

 

Mutual fund houses have made investments of over Rs 110 billion in domestic equities in the first two weeks of this month despite volatility in the stock markets, even as foreign investors pulled out a massive Rs 190 billion. This comes following a net infusion of Rs 116 billion in equities by the fund managers and a net withdrawal of Rs 108.25 billion from stocks by FPIs in September, latest data available with the markets regulator Securities and Exchange Board of India (Sebi) and depositories showed. Read more

1:30 PM

NEWS ALERT
Ratings agency downgraded us due delay in interest payment. Have good liquidity; cash flow of around Rs 400 cr in last qtr, says R K Arora of SuperTech to ET Now

1:29 PM

NEWS ALERT
No default to any banker or NBFC; only delayed interest payment by 15 days. Have asked rating agency to clarify as to why co rated as Default, says R K Arora of SuperTech to ET Now

1:27 PM

Indian banks now have the advantage over crisis-hit NBFCs, say analysts

 

For banks, one man’s loss may prove to be another’s gain. The liquidity crunch faced by the NBFC sector is expected to give banks an upper hand in terms of broad-basing their presence in the retail space and expanding their loan base. Analysts factor 15 -20 per cent loan growth for private banks and 8-10 per cent growth for public sector banks. However, the trend in other income could remain shaky for most of FY19. Read more

1:15 PM

Oil and gas stocks: High crude prices, weakening rupee pull down sentiment

 

Thanks to rising crude oil prices and rupee depreciation, public sector oil and gas companies have seen heightened concerns on profitability, leading to a 7-19 per cent fall in their stock prices. The government’s recent decision asking the OMCs to absorb a part of retail price reduction (Rs 1 a litre impact on marketing margins of OMCs) has been looked by the street as a reversal of its stand on free pricing mechanism for petrol and diesel. Read more

1:00 PM

FMCG stocks trip on high valuations; analysts see further correction

 

Usually, when markets fall, fast moving consumer goods (FMCG) stocks are seen as safe havens. However, this time around, FMCG stocks were among top losers as markets fell, mainly due to their pricey valuations. Being amongst the few attractive sectors, FMCG stocks had remained in the sweet spot. In just eight months ending August, the index had rallied over 19 per cent. Read more

12:45 PM

Cement stocks: Street hopeful of a better future driven by pricing gains

 

Cement stocks have taken a significant beating in a seasonally soft quarter affected by monsoon. Realisations have remained subdued, while cost pressures continue unabated.

 

The start of October, too has not seen significant uptick in prices with Kotak Institutional Equities’ channel checks suggesting that all India cement prices are down in the current month by Rs 2 per 50 kg bag compared to September as pricing weakness continued in FY19. The pressure on the cost front, however continues to rise. READ MORE

12:30 PM

Mindtree tanks 18% on revenue miss, cautious outlook; analysts mixed

 

Shares of the mid-tier IT company Mindtree tumbled as much as 17.6 per cent in the intra-day trade on Friday after the company reported subdued revenue growth for the September quarter. The sentiment was also hit on the cautious macro commentary by the management.

 

The IT firm on Wednesday posted a 65.4 per cent rise in its consolidated net profit at Rs 2.06 billion, on the back of sound growth in travel & hospitality and hi-tech & media verticals. However, it disappointed Street with muted constant-currency (CC) revenue growth of 2.4 per cent in a seasonally strong quarter. READ MORE

12:15 PM

NBFCs fall; DHFL, Indiabulls Housing, PNB Housing tank over 40% in 1-month

 

Shares of non-banking financial companies (NBFCs) including housing finance companies (HFCs) and select private banks were continued under pressure for the second straight day with Dewan Housing Finance Corporation (DHFL), Indiabulls Housing Finance and PNB Housing Finance falling more than 10% on Friday on concern of overall credit growth likely to suffer due to the liquidity crisis. Read More

 

12:00 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,455.48	-324.10	-0.93
S&P BSE SENSEX 50	10,826.10	-107.60	-0.98
S&P BSE SENSEX Next 50	30,351.08	-209.96	-0.69
S&P BSE 100	10,574.46	-100.31	-0.94
S&P BSE Bharat 22 Index	3,332.01	-0.46	-0.01

11:46 AM

Nifty IT index trading 2.62% lower weighed by Mindree

11:30 AM

Rupee fall, Kerala floods hit auto cos

 

Led by Maruti, the sector has lost about 20 per cent of its market value since the highs at the end of August. India's largest passenger vehicle (PV) maker is perhaps a good reflection of the problems that beset the sector. At the heart of the street’s worries is slowdown in volumes. Maruti, for example, reported flat volumes for September as compared to 10 per cent growth for the fiscal year-to-date period. READ MORE

11:15 AM

Non-bank MFs forge special ties with distributors to gain market share

 

Non-bank fund houses are looking to enter into special arrangements with distributors to expand their asset base. Essel Mutual Fund (MF) recently gave a token stake in its business to NJ India Invest, the country’s largest distributor in terms of commission.

 

Reliance MF and Vakrangee entered into a tie-up in July to distribute the former's mutual fund products in under-served areas. READ MORE

11:00 AM

Sebi, staffers at odds over transfers, promotions and external appointments

 

Dissatisfaction has arisen among staffers at the Securities and Exchange Board of India (Sebi) over recent transfer orders and the policy in this regard. A letter on Wednesday from the Sebi Employee Association (SEA) to chairman Ajay Tyagi says the staffers "are collectively feeling let down". A e-mail from this publication to the Sebi management was not answered. Read more