Indices close at record highs; Sensex ends above 40k-mark for first time

All that happened in the stock market

1:16 PM

NEWS ALERT | ILC expected to suggest amendments to strengthen IBC: CNBC TV18

- Also suggest enforcement provision in IBC

1:14 PM

NEWS ALERT | Insolvency law committee to meet on June 12: CNBC TV18

1:12 PM

Anand Rathi Financial Services on Ahluwalia Contracts

Rating: Buy
 

Target Price: Rs 392
 

Share Price: Rs 334

Ahluwalia’s constrained FY19 revenue growth seems more a result of systemic/project-specific issues. Consequently, no change in sound fundamentals and a significantly augmented order backlog (owing to strong FY19 accretion) make us believe that revenues missed in FY19 would come true sooner than later. Besides, its continuing net-cash status speaks of its capacity to fund working capital and capex needs from internal accruals. On the appealing return ratios, net-cash status

and ample revenue assurance, we are positive about Ahluwalia and, thus, maintain our Buy on the stock.

1:10 PM

NEWS ALERT | Steel Strips May rim sales down 11.5% at 12.1 lakh units vs 13.7 lakh units YoY

1:05 PM

Stocks that hit 52-week high on S&P BSE Sensex

COMPANY	PRICE(rs)	52 WK HIGH	CHG(rs)	CHG(%)
ASTRAL POLY	1344.90	1349.00	23.30	1.76
ATUL	4004.00	4090.00	-43.05	-1.06
BLUE STAR	802.15	812.00	-4.15	-0.51
GUJARAT GAS	188.10	195.00	4.05	2.20
H D F C	2217.45	2217.50	35.25	1.62

12:53 PM

HDFC Securities on ONGC

Recommendation:  BUY

 

Target Price: Rs 191,

CMP:  Rs 172

 

Concerns over lack of crude oil production growth still persist. However, we expect re-rating of ONGC as fears of subsidy burden have allayed. Adjusting for its investments (OVL+ other) the stock is trading at 6.8x FY21E standalone EPS. This indicates strong pessimism and we expect re-rating of upstream companies. 

Upstream companies were out of flavour despite realizing market price for crude oil, mainly on account of lower provisioning of budgetary support in FY19 (Rs 248bn). The subsidy sharing concern allayed when the Govt. committed to settle Rs 430bn of subsidy from its own pocket. We do not foresee any subsidy sharing burden on upstream companies if crude oil prices remain below USD80/bbl. In the absence of overhang of subsidy sharing, upstream companies should be re-rated. Our TP is Rs 191/sh (8x Mar-21E standalone core EPS (adj. for dividend income), + OVL EPS and Rs 39 from other investments).

12:44 PM

Cesc Limited gains over 4%

12:33 PM

Heritage Foods hits 30-month low; stock down 5%

Shares of Heritage Foods hit a 30-month low of Rs 390, down 5 per cent in intra-day trade on the BSE on Monday, in an otherwise firm market. The stock was trading at its lowest level since November 11, 2016. In comparison, the S&P BSE Sensex was up 0.70 per cent at 39,991 points at 11:28 am. In the past seven trading days, the stock has tanked 19 per cent, as compared to a 3 per cent rise in the benchmark index. The market price of the packaged foods company nearly halved from its 52-week high level of Rs 720, touched on June 1, 2018. READ MORE

12:28 PM

MARKET CHECK | Top gainers on BSE

APOLLOHOSP	1,346.70	+107.10	+8.64
PAGEIND	20,790.00	+1,102.40	+5.60
HEROMOTOCO	2,826.55	+145.15	+5.41
SPICEJET	153.55	+7.60	+5.21
TRENT	410.50	+19.05	+4.87

12:25 PM

Nifty Metal index gains over 1%

12:24 PM

ICICI Securities on Trent

CMP: Rs 360 

 

Target: Rs 415 (15%) 

 

Target Period: 12 months

 

We expect the revenue growth momentum to sustain and expect consolidated revenues to grow at a CAGR of 20% in FY19-21E with EBITDA margin expansion of 150 bps to 10.1% by FY21E. Accelerated store addition in the Westside format, rightsizing of Star Bazaar stores coupled with consistent growth in Zara are further expected to accelerate Trent’s financial performance. Hence we maintain our BUY recommendation on the stock with SOTP based TP of Rs 415/share.

12:15 PM

Elara Capital on Bharti Airtel

Rating: BUY

 

Target Price: Rs 530

 

Upside: 52%

 

CMP: Rs 349 (as on 31 May 2019)

 

Management confirmed a bulk of capex over FY18-19 was toward optic fiber rollout to connect towers, and peak capex is behind it. We continue to expect elevated access charges, with the new minimum tariff strategy encouraging correction of traffic asymmetry, the positive effects of which will be visible only in FY21. We expect debt reduction to be pushed out, as monetization of Bharti Africa and Bharti Infratel is likely only toward 2HFY20 or later. We reiterate Buy with a new TP of Rs 530 from Rs 510 based on 6.5x (unchanged) FY21E EV/EBITDA adjusted for minority holding in Bharti Infratel.

12:14 PM

RBI Monetary Policy Preview | Lakshmi Iyer, Kotak Mahindra Asset Management

“Liquidity woes in banking system are far from over. The silver lining in this the expectation of government spending, this is likely to reduce the liquidity deficit in the system. Also, the currency in circulation which had shown sharp spikes due to elections, is also likely to gradually recede, impacting liquidity favourably. Given the global as also domestic scenario, the MPC may well choose to gratify the markets with a benchmark rate cut. What is more important for markets is the MPC guidance than the actual rate action.”

12:07 PM

May Auto Sales | TVS Motors

- Total sales at 3.07 lakh units

12:03 PM

Contribution to Sensex

COMPANY	LATEST	CHG(RS)	CHG(%)	FREE FLOAT MKT CAP (RS CR)	CONTRIBUTION (POINTS)
HDFC BANK	2449.70	24.80	1.02	522029.94	54.04
H D F C	2211.05	28.85	1.32	375774.83	50.30
INFOSYS	744.00	7.15	0.97	280075.05	27.48
TCS	2221.00	24.15	1.10	230816.87	25.70
RELIANCE INDS.	1337.15	7.40	0.56	455184.28	25.65