Sensex gains 353 points; metal stocks shine

14 Aug 2019

IDBI Bank Q1: IDBI Bank has posted net loss of Rs 3,800 crore in the quarter ended June 2019.

The company had recorded a loss of Rs 2,410 crore in a year ago period.

The net interest income (NII) of the company was down 11.1 percent at Rs 1,458 crore against Rs 1,639 crore.

Ajit Mishra Vice President, Research, Religare Broking:

The Indian equity benchmark indices rebounded in Wednesday’s session and ended positive amid supportive global cues. The Nifty index opened in the green and traded with positive bias throughout the session, touching an intra-day high of 11,078, before closing up 1% at 11,029 levels. Amongst the broader market indices, BSE Midcap and Smallcap ended higher by 0.9% and 0.5%, respectively. Barring Healthcare, which witnessed selling pressure, all the other sectoral indices ended in the green with Metals, Banks, Capital Goods and Oil & Gas being the top gainers, up 1-2.7%.

We expect the markets to remain volatile in the near term and maintain our cautious stance. Further, in the absence of any fresh domestic triggers as well as end of earnings season, investors will take cues from global developments. Market participants would keep a watch on movement of crude oil price and rupee/dollar. Besides positive progress on US-China trade talks would boost investor’s sentiments. Given the uncertainty, we advise investors and traders to maintain stock specific approach and avoid risky trades.

Market close: Benchmark indices ended higher but off day's high on August 14 with Nifty finished above 11,000 level helped by the metal, infra and banking stocks.

At close, the Sensex was up 353.37 points at 37,311.53, while Nifty was up 103.50 points at 11,029.40. About 1297 shares have advanced, 1148 shares declined, and 142 shares are unchanged.

UPL, Bajaj Finserv, Vedanta, Tata Steel and Zee Entertainment were among major gainers on the Nifty, while losers were Sun Pharma, Indiabulls Housing, Wipro, Dr Reddy’s Labs and Coal India.

On the sectoral front, the buying was seen in the metal (up 2.3 percent), infra (up 1.6 percent) followed by banks, FMCG, energy and IT, while pharma stocks remained under pressure. BSE Midcap index was up 0.8 percent and smallcap index was up 0.4 percent.

Buzzing: The shares of KNR Constructions slipped 5 percent on August 14 after company's consolidated net profit declined 40.8 percent at Rs 42.9 crore against Rs 72.4 crore, and revenue was down 10.3 percent at Rs 530.7 crore versus Rs 591.9 crore, YoY.

Market Update:

Indian indices are trading near day's high level with Nifty holding above 11,050 level.

The Sensex is up 467.13 points or 1.26% at 37425.29, and the Nifty up 138.60 points or 1.27% at 11064.50. About 1197 shares have advanced, 1041 shares declined, and 117 shares are unchanged.

SBI to divest its stake in SBI Cards & Payment Services: State Bank of India at its meeting held today has given in-principle approval to explore the possibility of diluting SBI's stake in SBI Cards & Payment Services Private Limited, a subsidiary company through IPO route, subject to the approval of RBI and other regulatory agencies.

Kora Management to invest USD 125 mn in Edelweiss:

Edelweiss Group, announced that US-based Kora Management will be investing up to USD 125 million (Rs 875 crore) in the Group.

Kora Management has committed to invest USD 75 million (Rs 525 crore) in the advisory business, Edelweiss Global Investment Advisors (EGIA) subject to structuring-related milestones.

Linde India to sale South region divestment biz:

Shares of Linde India surged 7 percent on August 14 after board approval for sale of its South region divestment business.

It comprised the business of producing, distributing and selling various industrial gases, viz. oxygen, nitrogen and argon from the company's 1800 tons per day onsite air separation plant located at Bellary, Karnataka and the company's cylinder filling stations located at Hyderabad and Chennai.

Market Update:

Benchmark indices are trading higher but off day's high with Nifty reclaimed 11,000 mark supported by metal, auto, bank, IT and infra stocks.

At 11:43 hrs IST, the Sensex is up 361.37 points at 37319.53, while Nifty is up 103 points at 11028.90. About 1045 shares have advanced, 937 shares declined, and 102 shares are unchanged.

Ahluwalia Contracts wins contract worth Rs 168 crore:

Ahluwalia Contracts (India) has secured new order aggregating to Rs 168 crore for construction of modern flower market for commission agent shops, cold storage facility including water supply, electrical, plumbing & firefighting services and other works at IFC Gazipur.

The total order inflow during the FY 2019-20 stands at Rs 430.23 crore as on June 30, 2019.

Glenmark Pharma declines 8%: Glenmark Pharma touched 52-week low of Rs 385.65, sheds 8 percent on August 14 after company registered fall in its June quarter net profit. The company's Q1FY20 (April-June) net profit declined 53 percent at Rs 109.3 crore against Rs 233 crore in the same quarter last fiscal.

Buzzing: Apollo Hospitals rallied over 9 percent on August 14, a day after it reported over two-fold jump in consolidated net profit at Rs 49.15 crore for the quarter ended June 30, 2019, mainly on account of robust growth in healthcare services and pharmacy verticals.

Bosch hits 52-week low: Shares of Bosch touched 52-week low of Rs 13,087.95, falling over 3 percent on August 14 after company reported weak set of number for the quarter ended June 2019.

The company has posted 35 percent fall in its Q1FY20 net profit at Rs 280 crore which include one-time loss at Rs 82.1 crore.

Jefferies on Coal India

Buy rating, target cut to Rs 275 from Rs 309 per share

EBITDA Ex-OBR up 14.8%YoY, 12% beat due to better ASP & lower costs

Improved supply would weigh on prices

Cut FY20-21 EPS estimates by 3.4-4%

Jefferies on Oil India

Buy rating, target at Rs 280 per share

Q1 earnings below estimates on higher costs

Maintain positive stance on an inexpensive valuations

CLSA on ONGC

Buy rating, target cut to Rs 240 from Rs 285 per share

In-line core performance

Standalone profit 7% below estimate on one-off provisions & higher interest cost

Core EBITDA 4% higher but in-line when adjusted for IndAS 116 impact

Cut FY20-21 EPS estimates by 12%

Jefferies on ONGC

Buy rating, target cut to Rs 180 from Rs 185 per share

Q1 standalone earnings fell 4% YoY, missing estimate by 20% on higher exploration costs

EBITDA 7% lighter on lower sales volumes & higher opex

Trim FY20-21 EPS estimates by 2-4%

CLSA on Dr Lal Pathlab

Maintain buy rating, target raised to Rs 1,330 from Rs 1,320 per share

Results largely in-line with our estimates

Largely retain our FY20-21 EPS estimates

Citi on Dr Reddy’s Lab

Sell rating, target cut to Rs 2,375 from Rs 2,540 per share

Fresh CRL for Nuvaring, more delay likely

Nuvaring launch before mid CY20 unlikely; further delay can’t be ruled out

Ambit on Info Edge

Maintain buy rating, target at Rs 2,565 per share

Q1 revenue exceeded our steep expectations

Dominant position underscored by its robust billing growth

High likelihood of rev momentum continuation & shows efficacy of its brand investments

Operating losses in 99Acres reduced but remained elevated in Jeevansathi

Jefferies on Info Edge

Maintain hold rating target raised to Rs 1,985 from Rs 1,715 per share

Q1 revenue/EBITDA largely in-line with expectations

Growth strong in recruitment solutions

Cons results pointed to higher losses in Zomato

HSBC on Info Edge

Maintain buy rating, target at Rs 2,309 per share

Recruitment business growth has continued higher

Match making segment is facing tough competition

HSBC on Sun Pharma

Hold rating, target At Rs 400 per share

Q1 results largely in-line at operating levels

Execution of specialty launches remain key for sustainable earnings growth

Credit Suisse on Sun Pharma

Neutral rating, target at Rs 470 per share

Ilumya ramp-up key for upside; US sales to normalise from Q2

Q1 results in-line with estimates

CLSA on Sun Pharma

Maintain buy rating, target raised to Rs 540 from Rs 520 per share

Getting back on track gradually

Specialty product portfolio ramp-up a key catalyst

Strong execution could drive a re-rating

Credit Suisse on Bosch

FY20/21 EPS estimates cut by 15/17%

Maintain outperform, target cut to Rs 17,500 per share

Preferred pick to play changing regulatory & tech landscape

Macquarie on Apollo Hospital

Maintain outperform rating, target at Rs 1,636 per share

Operating performance continues to improve

Steps taken by promoters to resolve leverage situation provides relief

Citi on Bharat Forge

Neutral call, target cut to Rs 430 from Rs 520 per share

Global demand slowdown takes its toll

Slash revenue & margin estimates for both standalone biz & subsidiaries

Credit Suisse on Bharat Forge

Outperform rating, target cut to Rs 470 per share

Cut our India CV & US shale gas estimates

FY20/FY21 estimates cut by 20%/15%

Ambit Bharat Forge

Sell rating, target cut to Rs 322 from Rs 385 per share

Co yet to see the bottom of the present down cycle

Weakness in demand adding on to the potential cut in earnings

Cut FY20/FY21 cons revenue/earnings estimates by 8%/17%

CLSA on Bharat Forge

Sell rating, target cut to Rs 350 from Rs 390 per share

Risk of simultaneous slowdown in three key segments

Cut FY19-22 EPS estimates by 13-16%

Market Opens: It is positive start for the Indian Indices with Nifty above 10,950 level.

The Sensex is up 87.71 points or 0.24% at 37045.87, and the Nifty up 24.70 points or 0.23% at 10950.60. About 479 shares have advanced, 301 shares declined, and 21 shares are unchanged.

Manappuram Finance, Cholamandalam Investment, L&T Finance, Indiabulls Housing, Zee Entertainment, JSW Steel, UIPL, Bajaj Finserv, Bajaj Finance , RIL, IndusInd Bank, Gail, Eicher Motors are among major gainers on the indices, while losers are Dr Reddy's Lab, Power Grid, Titan, Glenmark, HUL, Sun Pharma, and Maruti Suzuki.

Among sectors, except IT, FMCG and pharma other indices are trading higher led by the metal, auto, bank, energy and infra.

Rupee Opens: The Indian rupee gained in the early trade on Wednesday. It opened higher by 40 paise at 71 per dollar against previous close 71.40.

Market at pre-opening: Benchmark indices are trading strong in the pre-opening session.

At 09:01 hrs IST, the Sensex is up 239.25 points or 0.65% at 37197.41, and the Nifty up 83.80 points or 0.77% at 11009.70.

Crude Update: Oil prices fell on Wednesday after industry data showed US crude inventories unexpectedly rose last week, erasing some gains from the last session that were stoked after Washington said it would delay tariffs on some Chinese goods.

SGX Nifty: Trends on SGX Nifty indicate a flat to positive start for the broader indices in India, a gain of 12.50 points or 0.11 percent. Nifty futures were trading around 10,933-level on the Singaporean Exchange.

Wall Street ends higher: US stocks closed higher on Tuesday after an announced delay of planned tariffs on some Chinese imports brought buyers back to the equities market in a broad-based rally.

Asian markets trade higher: Asian shares joined a global equities rally and safe-haven government bonds pulled back on Wednesday, after Washington delayed tariffs on some Chinese imports in much-needed relief for markets gripped by political and economic turmoil.