MARKET WRAP: Sensex ends 187 pts up, reclaims 34,000 mark; Airtel rises 10%

Among the sectoral indices, Nifty Financial Service index settled 1.4 per cent higher led by Bajaj Finance and IIFL.

10:29 AM

Emkay Global on TVS Motor Company

We reduce FY19/20E EPS by 8% each to Rs15.6/Rs22.1 on lower operating margin and other income. Despite the cut, EPS is expected to grow at 26% over FY18-20E. Although management has indicated that it would not participate in any price war, pricing power could remain under pressure due to competition and commodity inflation.

 

We build in revenue/EPS CAGR of 19%/26% over FY18-20E, with a ROE of ~26% and average free cash flow of ~Rs6bn. Maintain Accumulate with a target pirce of Rs590 (Rs630 earlier), based on 25x FY20E EPS and the value of TVS Credit Services at Rs33/share.

10:27 AM

Elara Capital on Oberoi Realty

Oberoi scores high on operational transparency and disclosures — key differentiators in the sector. The near-complete residential unsold inventory of +INR 35bn along with net cash balance will enable it to invest aggressively in growth. Regulatory headwinds like RERA and liquidity issues at the NBFC level augur well for Oberoi with a strong brand, quality assets and timely execution track record. We believe the company has multiple triggers over the next 12 months, such as the launch of Thane and subsequent phases at Borivali & Goregaon projects. Post the recent correction in the stock price, we revise our rating to Buy from Accumulate with a TP of INR 550 based on 1x one-year forward NAV

10:26 AM

Prabhudas Lilladher on HCL Tech

Post 2QFY19, we model HCL Tech’s USD revenue growth assumptions to 9.1/9.6% for FY19/FY20E (vs8.7/9.5% modeled earlier). We build HCL Tech’ organic growth at 4.1% for FY19E and rest is owing to acquisitions (C3I, Actain , H&D, full impact of Urban Fulfillment and IP deal). Hence, FY19 would continue to remain a year of transition for the company. Slowdown in IMS owing to technology shifts has led HCL to explore a slew of inorganic initiatives over the past two and half years. HCL Tech has deployed ~USD1.9bn over the past two years for a slew of acquisitions (Large quantum went for IBM IP deals).

Hence, these inorganic initiatives have weighed on medium term FCF trajectory and constraining P/E multiple expansion. However, potential for turnaround in organic growth from 2HFY19 and cheap valuations leads us to retain positive stance. We retain our EPS estimates at Rs74/82/sh for FY19/FY20E. Stock trades at 11.7x FY20E EPS (TCS/ Infosys trading at 19.1/15.6x FY20E EPS. Retain BUY with target price retained at Rs1255/sh (14.5x Sep20E EPS).

10:20 AM

Bajaj Finance bracing for tougher times, to raise share of deposits to 25%

 

The eye-catching takeaway from Bajaj Finance’s September quarter (Q2) results is the spike deposits. At Rs 110 billion, deposits surged by 41 per cent year-on-year in Q2, taking its share in overall liabilities to 15 per cent from 10 per cent in year-ago period. “By 2020, we plan to increase the share of deposits to 20 – 25 per cent,” says Rajeev Jain, managing director, Bajaj Finance. Read more

10:10 AM

Bajaj Finance gains 7% post September quarter results

 

Shares of Bajaj Finance were up 7% at Rs 2,230 on the BSE on Wednesday in early morning trade, after the company reported strong earnings in the September-quarter and the management remains confident of robust growth in the coming quarters. The stock has recovered 11% from its Tuesday’s low of Rs 2,001 after the announcements of results. Read more

10:00 AM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,057.25	+210.02	+0.62
S&P BSE SENSEX 50	10,691.35	+71.23	+0.67
S&P BSE SENSEX Next 50	30,022.97	+100.90	+0.34
S&P BSE 100	10,445.43	+64.56	+0.62
S&P BSE Bharat 22 Index	3,336.86	+33.46	+1.01

9:45 AM

Sebi mulls standardisation for PMS schemes by setting up industry body

 

The Securities and Exchange Board of India (Sebi) plans to create an industry body to draw up best practices for portfolio managers and introduce a template to bring uniformity in the way they market their schemes. At present, portfolio management service (PMS) providers file offer documents with the capital markets regulator and release quarterly statements to existing clients. Read more

9:31 AM

INTERVIEW OF THE DAY Redemption pressure for the industry could increase: Taher Badshah

 

A steady fall in markets since the past few weeks has left investors wondering what the eventual bottom could be. TAHER BADSHAH, chief investment officer for equities at Invesco Mutual Fund tells Swati Verma that frontline indices could potentially dip another 5 – 7 per cent from the current levels. Click here to read full interview

TAHER BADSHAH

9:23 AM

HCL Tech trading 2.40% higher after Q2 results

9:19 AM

Sectoral trend on NSE

9:18 AM

Opening gainers in BSE Sensex

9:16 AM

Market at open

 

At 9:15 AM, the S&P BSE Sensex was trading at 34,274, up 427 points while the broader Nifty50 was ruling at 10,280, up 133 points.

9:01 AM

Pre-market open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,254.26	+407.03	+1.20
S&P BSE SENSEX 50	10,671.88	+51.76	+0.49
S&P BSE SENSEX Next 50	29,944.08	+22.01	+0.07
S&P BSE 100	10,425.64	+44.77	+0.43
S&P BSE Bharat 22 Index	3,324.02	+20.62	+0.62

9:00 AM

Rupee opening
 

Rupee opens at 73.16/$ vs its previous close of 73.57 per dollar

8:55 AM

HCL Tech Q2 PAT rises 5.7% QoQ to Rs 25.40 billion

 

Leading IT services firm HCL Technologies reported a 5.7 per cent quarter-on-quarter (Q-o-Q) rise in its consolidated net profit at Rs 25.40 billion. Revenues for the period came in at Rs 148.61 billion, up 7.1 per cent Q-o-Q and 19.5 per cent on year-on-year (Y-o-Y) basis. Earnings before interest & tax (EBIT) stood at Rs 29.66 billion, up 8.7 per cent on Q-o-Q basis and 21 per cent Y-o-Y. Read more