Nifty ends above 11,900, Sensex up 168 points; IT stocks gain

10 Jun 2019

Market at close: Benchmark indices ended higher but off day's high on May 10 with Nifty finished above 11,900 level.

At close, the Sensex was up 168.62 points at 39784.52, while Nifty is up 52 points at 11922.70. About 967 shares have advanced, 1619 shares declined, and 172 shares are unchanged.

Britannia Industries, Tech Mahindra, TCS, Infosys and Dr Reddy’s Labs were among major gainers on the Nifty, while losers were BPCL, Yes Bank, Coal India, GAIL and Tata Motors.

Among sectors, except energy and PSU bank all other indices ended higher led by IT, FMCG, pharma, metal and infra.

Cipla received EIR from USFDA: This is to inform you that following the inspection by the United States Food and Drug Administration (USFDA) at the Kurkumbh manufacturing facility from March 11, 2019 to March 20, 2019, the company has received the establishment inspection report (EIR), indicating closure of the inspection.

Market Update: Indian indices erased most of its morning gains as Nifty trading below 11,900 level.

The Sensex is up 76.07 points at 39691.97, while Nifty is up 20.70 points at 11891.40. About 835 shares have advanced, 1448 shares declined, and 143 shares are unchanged.

BHEL bags 3 orders: Bharat Heavy Electricals (BHEL) has won three major orders in quick succession, for setting up Solar Photovoltaic (SPV) Power Plants totaling to 135 MW, on engineering, procurement and construction (EPC) basis, in Maharashtra and Gujarat.

Market Update: The benchmark indices erased some of its morning gains but trading higher with Nifty around 11,950 level.

The Sensex is up 281.35 points at 39897.25, while Nifty is up 80.20 points at 11950.90. About 1031 shares have advanced, 784 shares declined, and 106 shares are unchanged.

Buzzing: Shares of Globus Spirits rose 4.6 percent in the early trade on Monday after upward revision of selling rates of country liquor in Rajasthan.

L&T bag orders: The construction arm of L&T has secured orders from prestigious clients across various Indian states for its varied businesses.

Crude Update: Oil prices rose on Monday after Saudi Arabia said producer club OPEC and Russia were likely to keep withholding supplies, and in relief that the United States and Mexico averted a trade war that would have damaged the global economy.

Market Opens: It is positive start for the benchmark indices on June 10 with Nifty above 11,900.

At 09:16 hrs IST, the Sensex is up 296.45 points at 39,912.35, while Nifty is up 86.10 points at 11,956.80. About 468 shares have advanced, 183 shares declined, and 46 shares are unchanged.

Indiabulls Housing, Vedanta, Tata Steel, Zee Entertainment, Yes Bank, IndusInd Bank, SBI, DHFL, Edelweiss Financial, Manappuram Finance, India Cements are among major gainers on the indices in the early trade, while losers are J&K Bank, Reliance Power, Reliance Capital , Reliance infra and PC Jeweller.

All the sectoral indices are trading in the green led by PSU bank, infra, IT, FMCG, auto, metal and pharma.

Market at pre-open: The benchmark indices are trading positive in the pre-opening session on June 10.

At 09:02 hrs IST, the Sensex is up 111.69 points or 0.28% at 39727.59, and the Nifty up 56.90 points or 0.48% at 11927.60

US markets end higher on Friday: Wall Street’s major indexes charged higher on Friday, as sharply slowing US job growth boosted hopes for Federal Reserve interest rate cuts while optimism about potential progress in US trade fights with China and Mexico added to risk appetites.

Asian markets update: US stock futures and Asian shares rose on Monday after the United States dropped its threat to impose tariffs on Mexico in a deal to combat illegal migration from Central America, while weak US jobs data raised hopes for US interest rate cuts.

Citi on Monsoon

Monsoon arrival delayed marginally, El Nino risk lingers on

44% of country’s area is under drought-like conditions vs 38% last year

CLSA on new NPA circular

RBI offers leeway to banks; Onus of resolutions now on them

New framework addresses banks’ concerns by giving four concessions

There is no rule-based reference to NCLT

Nomura on new NPA circular

Most changes to resolution for stressed assets are practical

Changes rightly incentivise banks to find a time-bound resolution

RBI has mandated additional provisions of 20-35% if lenders do not find resolution plan

Deutsche Bank on new NPA circular

New NPA norms to provide flexibility in the resolution process

Expect some pick-up in the pace of resolution

Credit Suisse on new NPA circular

RBI maintains its push towards IBC

Focus on IBC positive for resolution as well as disincentive for poor creditor behaviour

Recent slowdown in IBC process remains a bottleneck for faster recoveries

China data watch

May $-denominated exports up 1.1% YoY versus Reuters poll of 3.8% decline

May $-denominated imports down 8.5% YoY versus Reuters poll of 3.8% decline

May trade surplus at $41.65 billion vs Reuters poll of $20.5 billion surplus

Morgan Stanley on ITC

Overweight call, target raised to Rs 360 from Rs 320 per share

Investors remain worried about sharp unexpected tax increases

Cigarette volumes are tracking ahead of expectations

Citi on Dabur

Buy rating, target at Rs 455 per share

Trends in the last two months are slightly better vs slowdown in March

Credit Suisse on HUL

Maintain neutral call, target at Rs 1,850 per share

Co remains way ahead of the curve, but near-term growth may be muted

Jefferies on HUL

Hold rating, target at Rs 1,820 per share

Investor day highlighted company's superior execution & lead over peers

Citi on HUL

Neutral call, target at Rs 1,867 per share

Data & digital increasingly important for company

CLSA on HUL

Outperform call, target at Rs 1,950 per share

Analyst meeting built on last year’s theme of re-imagining HUL

Deutsche Bank on Tata Motors

Hold Rating, target at Rs 175 per share

JLR focussing on costs & cash flows

Deutsche Bank on Embassy REIT

Buy rating, target at Rs 370 per share

Indiabulls’ promoter stake sale in-line with its strategy to focus on fin services

Morgan Stanley on GSK Pharma

Underweight call, target raised to Rs 1,134 from Rs 1,102 per share

GSK India growth muted due to a recent industry slowdown

CLSA on Gas Sector

Weak gas consumption in April

Weak gas consumption suggests QoQ vol decline for GAIL, GSPL & Petronet LNG

Strong retail volume growth for CGDs will continue

Prefer CGDs in the gas space

Credit Suisse on IT Sector

Valuations reluctant to price in any slowdown risks

HCL Tech stands out with extremely low expectations

If US slowdown manifests, growth expectations could get reset downwards

SGX Nifty: Trends on SGX Nifty indicate a positive start for the broader indices in India, a gains of 59 points or 0.50 percent. Nifty futures were trading around 11,956-level on the Singaporean Exchange.