MARKET WRAP: Sensex slips 79 pts, Nifty ends at 10,585; IT stocks weigh

The Nifty IT index fell 0.8 per cent weighed by Infosys and Tata Consultancy Services (TCS) and the Nifty Metal index slipped 0.9 per cent due to a decline in NMDC

11:17 AM

Anand Rathi on Dishman Pharma

An integrated CRAMS operator, Dishman's products are APIs, high-potent APIs, intermediates, vitamin-D and cholesterol analogues, lanolin-related products, antiseptic and disinfectant formulations. Better churning of capacities, focusing on low-volume high-value orders, more revenue from high-margin HiPo APIs and sale of low-volume, high-margin vitamin-D analogues would result in margin expansion, leading to greater profitability. Thus, we expect a ~26% earnings CAGR over FY18-21. We retain our Buy rating, with a target price of Rs 385 (previously Rs 380)

11:16 AM

Anand Rathi in Cadila

We believe a pick-up in market share of gToprol, launches and the launched Asacol HD (own version) would help maintain Cadila’s margins and earnings ahead. On the high base, we expect 8% and 9% CAGRs over FY18-21 in revenue and earnings respectively. We retain our Buy recommendation, with a revised target of Rs 435 (earlier Rs 444)

11:15 AM

Oil check

 

Oil markets on Friday remained weak as rising supply and concerns of an economic slowdown pressured prices, with U.S. crude now down by around 20 percent since early October. US West Texas Intermediate (WTI) crude oil futures were at $65.60 per barrel, down 4 cents, or 0.1 per cent from their last settlement. WTI is set to fall for a fifth week, down 4.1 per cent so far this week. Front-month Brent crude oil futures were at $70.69 a barrel, 4 cents above their last close. Brent is set for a 2.9 per cent drop for the week, its fifth straight week of declines.

11:06 AM

Green shoots of liquidity for NBFCs, HFCs in commercial paper market

 

The worst may be over for non-banking finance companies (NBFCs) and housing finance companies (HFCs) as far as raising funds from the commercial paper (CP) market is concerned. After the liquidity squeeze following the default by the IL&FS group in September, there are early signs of a recovery in the CP market with non-bank lenders (NBFCs and HFCs) raising Rs 300 billion in October. Read more

10:58 AM

Edelweiss on Aditya Birla Capital (ABCL)

ABCL, amidst prevailing liquidity tightness, is relatively better positioned to navigate the challenges given its: a) strong parentage; b) robust risk management framework; and c) adequate liquidity (positive ALM). However, we will monitor systemic risk to construction financing and LAP, and anticipate likely moderation in growth. Assigning lower growth premium, we prune target multiple for ABFL with a revised target price of Rs 160 (Rs 199 earlier). Maintain ‘BUY’.

10:56 AM

Asian Paints is trading over 4% higher as crude oil prices soften

10:55 AM

MARKET COMMENT Philip Marey, Senior US Strategist, Rabobank International

Monetary policy remains unchanged. The FOMC statement acknowledged the decline in unemployment and the slowdown in business investment. The midterm election outcome is not likely to have changed the Fed’s outlook, nor has it changed our Fed view. Our baseline scenario is a federal funds rate hike in December, another hike in March 2019, followed by an inversion of the curve in Q2. The latter would lead to a pause in the Fed’s hiking cycle. We would not be surprised to see the minutes, to be published on November 29, contain a signal for another technical adjustment to the IOER rate in December

10:50 AM

Emkay Global on Voltas

Voltas (VOLT) reported better-than-expected Q2 results, driven by strong operational performance (+151% yoy) in Electro-Mechanical Projects and Services (EMPS). However, the Unitary Cooling Products (UCP) segment disappointed with a 45% yoy decline in operational results due to weaker sales and margin erosion in Room Air Conditioners (RAC).

We maintain our FY19/20 EPS estimates. We introduce FY21 estimates, factoring in revenue growth of 14% over FY20 and EBITDAM of 11.4%. We recommend a Hold rating, with a target price of Rs 525 (SoTP).

10:45 AM

HPCL surges 1.68%

 

Hindustan Petroleum Corporation Ltd has added 29.37% over last one month compared to 8.35% gain in S&P BSE Oil&Gas index and 0.88% rise in the SENSEX. Hindustan Petroleum Corporation Ltd gained 1.68% today to trade at Rs 233.65. The S&P BSE Oil&Gas index is up 0.33% to quote at 13564.73. The index is up 8.35 % over last one month. Among the other constituents of the index, Indian Oil Corporation Ltd increased 1.65% and Bharat Petroleum Corporation Ltd added 1.37% on the day. Read more

10:31 AM

Crisis-hit NBFC sector sees private equity investments growing 88% in 2018

 

Private Equity (PE) investments in India’s non-banking financial companies (NBFCs) in the January-November period of this year has reached $2.041 billion — 88 per cent more than full 12 months of 2017 and the highest in four years. The increase in overall PE investment value has been despite the number of deals this year being lower than last year, and the sector facing a liquidity crisis. Read more

10:22 AM

NEWS ALERT HDFC Bank hikes lending rate by 5 bps

10:15 AM

10 of 15 newly-listed firms trade below IPO price in FY19, plunge up to 53%

 

More than half of 15 companies that made their stock market debut this fiscal are trading below their issue price, plunging as much as 53 per cent. A total of 15 companies have been listed on the bourses this fiscal after completing their respective initial public offers. Dinesh Engineers, a passive communication infrastructure provider, withdrew its initial public offer early last month due to sluggish investors' response. Read more

10:00 AM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,101.01	-136.67	-0.39
S&P BSE SENSEX 50	11,050.71	-28.11	-0.25
S&P BSE SENSEX Next 50	32,166.02	+88.37	+0.28
S&P BSE 100	10,854.70	-18.88	-0.17
S&P BSE Bharat 22 Index	3,468.72	+1.55	+0.04

9:46 AM

Bharti Airtel dips 5% as Moody's places co's rating on review for downgrade

 

Shares of telecom major Bharti Airtel on Friday dropped as much as 5.21 per cent to Rs 290 apiece on BSE after Moody's Investors Service placed the company's rating on review for downgrade, following low levels of profitability and expectation of weak cash flow. Read more

 

9:37 AM

Nifty IT index is trading lower weighed by Wipro