Sensex ends Samvat 2073 with 17% gain, Nifty up 18%

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2:32 PM

Nifty PSU Bank top sectoral loser 

Source: NSE

2:22 PM

From Diwali picks to Muhurat trading tips, market outlook for Samvat 2074

 

The new Samvat 2074 is likely to take the market through a path of uncharted territory as the curtain calls to an eventful Samvat 2073. From Narendra Modi-led demonetisation drive to the implementation of goods and services tax (GST) bill, the markets went through jitters, yet the Nifty 50 notched up gains of around 17 per cent. READ MORE

2:16 PM

Edelweiss Securities on Wipro

 

Wipro’s Q2FY18 performance was better than Street’s estimates with IT services revenue at $2,014 mn (up 2.1% QoQ, estimate 1.7%) and EBIT margin at 16.8% (up 80bps QoQ, estimate 15.8%). Key highlights: 1) Revenue grew 0.3% QoQ CC; 2) Muted revenue growth guidance of 0-2% for Q3FY18; 3) Positive commentary on BFSI and consumer verticals; 4) From Q4FY18 management expects industry-level growth; and 5) FY18E margins to remain at FY17 levels. 

 

We believe that with key verticals facing challenges, FY19E revenue growth will at best be at industry levels. In the past one year, the stock has given ~22% returns and is currently trading at 14.5x FY19E EPS. With revenue/EPS CAGR estimated at 6.8%/6.9% over FY17-19, the stock trades expensive. Hence, we downgrade to ‘HOLD’ with a revised target price of Rs 280 (earlier Rs 290).

1:55 PM

14 stocks that rallied over 50% each in last three Samvat years

 

Bajaj Finance, Dwarikesh Sugar Industries, V2 Retail, Motilal Oswal Financial Services and Caplin Point Laboratories are among 14 stocks from the BSE Smallcap and BSE-500 index that rallied over 50% each in last three Samvat years between 2071 and 2073. READ MORE DETAILS 

1:25 PM

IIFL on Axis Bank

 

We slash FY18/19 ABV estimates by 5‐10% factoring increased operational challenges and a larger deterioration in NPL situation. This credit cycle for Axis Bank is turning out to be deeper and stickier. We expect operational profitability and credit performance to stabilize only from H2FY19. Some of the ongoing favorable franchise trends would resonate fully in core profitability from FY20. 

 

The stock may extend its underperformance considering that RoA/RoE could remained depressed in the near‐to‐medium term and that valuation is not cheap at 2.1x FY19 P/ABV. While retaining Accumulate rating, we lower the 12‐month price target on Axis Bank to Rs 562.

1:05 PM

Broader markets little changed 

The BSE Midcap was trading flat at 16,114 levels, while the BSE Smallcap was up 0.1% at 17,085. 

1:04 PM

Markets check 

At 1:00 pm, the S&P BSE Sensex was trading at 32,556, down 52 points, while the broader Nifty50 was ruling at 10,208, down 26 points.

1:03 PM

Edelweiss Securities on Bajaj Finserv

 

We are enthused by improvement in operating variables across businesses. Bajaj Finserv is going strong with 35% plus asset and earnings surge. There has also been significant value discovery in life and general insurance businesses over past couple of quarters. Incorporating this in our target multiples for BALIC & BAGIC and also factoring in strong performance and capital raising at BFL, we revise our SOTP-based TP to Rs 5,337 (Rs 4,892 earlier). However, recent stock outperformance limits upside; hence, we maintain ‘HOLD/SP’.

12:37 PM

Markets in noon deals

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	32,506.65	-102.51	-0.31
S&P BSE SENSEX 50	10,576.44	-44.56	-0.42
S&P BSE SENSEX Next 50	34,870.12	-110.70	-0.32
S&P BSE 100	10,593.48	-42.78	-0.40
S&P BSE MidCap	16,105.49	-9.01	-0.06

(Source: BSE)

12:35 PM

Nirmal Bang Institutional Equities on Wipro Q2

 

Wipro has reiterated its guidance of FY18 margins being in a ‘narrow band’ vis-à-vis FY17 on constant-currency basis. We believe if that happens a large part would have been played by better INR/USD realisation on its revenues - quite unlike most of its peers - and benefits from automation. We have kept our USD revenue estimates constant but increased EBIT margins estimates by 60-100bps across the forecast period leading to improvement of EPS by ~5%. 

 

We have retained Sell rating on Wipro with a September 2018 target price of Rs244 (down 16% from CMP. Rs228 previously) based on 11.0x September 19E earnings. 11.0x P/E is at a 20% discount to the target P/E multiple assigned to Infosys/TCS. We believe our target P/E multiple is justified on a poor run in organic growth and poor return ratios. 

 

We believe it is also justified on the basis of lack of turnaround in business metrics and the fact that Wipro possibly has the worst RoIC in the industry because of poor organic growth and returns-dilutive acquisitions. We believe the stock is currently supported by the ongoing buyback (7% of outstanding equity)

12:27 PM

Buzzing stock

 

JBF Industries soared almost 20% to Rs 237 on the BSE in early morning trade after the media report suggested that the company is in discussions with potential buyers for a stake sale. READ MORE

12:09 PM

Interview of the day

 

Markets regulator Securities and Exchange Board of India (Sebi) has said a mutual fund house can have only one scheme per category. The move will impact a number of fund houses, particularly the larger ones that operate as many as a dozen schemes in some categories. Anthony Serhan, managing director, research strategy, Asia-Pacific at Morningstar, says the new rule is harsh. READ FULL INTERVIEW

Anthony Serhan, MD, research strategy (Asia-Pacific), Morningstar

11:57 AM

Nifty extends losses; top five losers on the index 

Source: NSE

11:33 AM

Buzzing stock 

 

Nucleus Software Exports surged 19% to Rs 389, also its 52-week high on the BSE in intra-day trade, after the company reported 36% quarter on quarter (q-o-q) growth in its consolidated net profit at Rs 15.66 crore in September quarter (Q2FY18). The IT software products company had reported profit of Rs 11.51 crore in the June quarter (Q1FY18). READ MORE

 

11:17 AM

Markets check

At 11:15 am, the S&P BSE Sensex was trading at 32,522, down 86 points, while the broader Nifty50 was ruling at 10,195, down 38 points.