MARKET WRAP: Indices off day's low, Sensex ends 161 pts lower; Infy up 1%

Topics Markets | MARKET WRAP

After falling over 440 points during the day, the S&P BSE Sensex witnessed sharp recovery in the last hour of the trade to end Tuesday's session at 40,894 levels, down 161 points or 0.39 per cent. IndusInd Bank (down 3 per cent) emerged as the biggest loser on the index while SBI (up over 1 per cent) ended as the top gainer.

On the NSE, the broader Nifty50 index ended below the crucial 12,000-mark at 11,992.50, down 53 points or 0.44 per cent. 

Telecom stocks remained under pressure due to adjusted gross revenue (AGR) issue. Bharti Infratel tumbled 11 per cent to Rs 210 while Bharti Airtel ended nearly 3 per cent lower. Vodafone Idea ended over 11 per cent lower at Rs 3.03 apiece on the BSE. 

In the broader market, the S&P BSE MidCap index fell 0.6 per cent to 15,425.51 levels while the S&P BSE SmallCap ended at 14,467.43, down 65 points or 0.45 per cent. 

GLOBAL MARKETS

World stocks markets were knocked off record highs on Tuesday as two of the world’s mega companies reported damage from the coronavirus outbreak. Apple’s stock fell almost 6% in Frankfurt and all Europe’s main markets fell after the iPhone maker warned it was unlikely to meet the March quarter sales guidance it had set just three weeks ago.

S&P 500 e-mini futures ESc1 slipped 0.4 per cent and Nasdaq futures fell 0.6 per cent.

In commodities, oil prices slipped on Tuesday on lingering concerns over the economic impact of the coronavirus outbreak in China and its effect on oil demand, tracking losses in financial markets.

(With inputs from Reuters)


3:56 PM IST

3:55 PM IST

3:44 PM IST The S&P BSE Sensex slipped 161 points or 0.39 per cent to end at 40,894 while NSE's Nifty ended at 11,992.50, down 53 points or 0.44 per cent.  

3:15 PM IST -- 38 lakh shares worth Rs 438 cr trade in 4 blocks on BSE at Rs 1,144.20/sh

3:01 PM IST The stock of pharmaceutical company surpassed its previous high of Rs 235 touched on May 30, 2019. In past three trading days, it zoomed 34 per cent as compared to 1.8 per cent decline in the S&P BSE Sensex. READ MORE  

2:55 PM IST The IPO comprises a fresh issue of shares worth Rs275 crore and an offer-for-sale of up to 98,22,947 equity shares, according to the draft papers filed with the Securities and Exchange Board of India (Sebi).   The company may consider a pre-IPO placement to the tune of Rs150 crore. READ MORE

2:26 PM IST European shares dropped on Tuesday as a revenue warning from iPhone maker Apple Inc (AAPL.O) sent shockwaves through the tech sector, highlighting the impact of the coronavirus outbreak on global demand and supply. The pan-European STOXX 600 index fell 0.8 per cent, having ended at a record high on Monday after China outlined fresh stimulus measures to mitigate the virus’ economic impact. Asian shares fell and Wall Street was poised to retreat from record highs on Tuesday after Apple Inc said it would miss its March quarter revenue guidance as the coronavirus slowed production and weakened demand in China. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1 per cent, while Tokyo’s Nikkei slid 1.4 per cent, dragged down by tech stocks.   China’s CSI300 blue chip shares gave up 0.5 per cent, following a strong rally that was fuelled by hopes Beijing would introduce more policy stimulus. Oil prices slipped on fresh concerns over the economic impact of the coronavirus outbreak in China. Brent crude fell 0.6 per cent to $57.30 a barrel, while US West Texas Intermediate (WTI) crude slipped 0.3 per cent to $51.90 a barrel.

2:13 PM IST Ashok Leyland reported yet another weak quarter as EBITDA margin declined to 5.6% (-460/-20bps YoY/QoQ). The industry awaits the announcement of a scrappage scheme, which will aid demand in FY21. We reiterate NEUTRAL with a target price (TP) of Rs 75 (13x on Dec-21 EPS).

2:04 PM IST The contagion effect of the coronavirus (Covid-19) could soon bite the Indian aviation sector that is already dealing with a modest air-traffic growth due to the on-going economic slowdown. While the sector has seen limited impact thus far, failure to curb the virus till April could dent sentiment, experts say. Kapil Kaul, chief executive officer of CAPA’s South Asia unit says that the demand to East Asia and Southeast Asia could be affected, and outbound travel from April onwards will have to be watched, depending upon the severity of the situation in the next few weeks. READ MORE

2:03 PM IST

1:57 PM IST

LIVE UPDATES

SECTOR WATCH | Media and IT indices end in the green


MARKET AT CLOSE | Top losers and gainers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex slipped 161 points or 0.39 per cent to end at 40,894 while NSE's Nifty ended at 11,992.50, down 53 points or 0.44 per cent.  

BLOCK DEAL | 0.6% equity of IndusInd Bank changes hands

-- 38 lakh shares worth Rs 438 cr trade in 4 blocks on BSE at Rs 1,144.20/sh

IOL Chemicals hits record high in weak market, zooms 34% in 3 days

The stock of pharmaceutical company surpassed its previous high of Rs 235 touched on May 30, 2019. In past three trading days, it zoomed 34 per cent as compared to 1.8 per cent decline in the S&P BSE Sensex. READ MORE  

Barbeque Nation files IPO papers with Sebi to raise Rs 1,000-1,200 crore

The IPO comprises a fresh issue of shares worth Rs275 crore and an offer-for-sale of up to 98,22,947 equity shares, according to the draft papers filed with the Securities and Exchange Board of India (Sebi).
 
The company may consider a pre-IPO placement to the tune of Rs150 crore. READ MORE

Global Markets check

European shares dropped on Tuesday as a revenue warning from iPhone maker Apple Inc (AAPL.O) sent shockwaves through the tech sector, highlighting the impact of the coronavirus outbreak on global demand and supply. The pan-European STOXX 600 index fell 0.8 per cent, having ended at a record high on Monday after China outlined fresh stimulus measures to mitigate the virus’ economic impact.

Asian shares fell and Wall Street was poised to retreat from record highs on Tuesday after Apple Inc said it would miss its March quarter revenue guidance as the coronavirus slowed production and weakened demand in China. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1 per cent, while Tokyo’s Nikkei slid 1.4 per cent, dragged down by tech stocks.
 
China’s CSI300 blue chip shares gave up 0.5 per cent, following a strong rally that was fuelled by hopes Beijing would introduce more policy stimulus.

Oil prices slipped on fresh concerns over the economic impact of the coronavirus outbreak in China. Brent crude fell 0.6 per cent to $57.30 a barrel, while US West Texas Intermediate (WTI) crude slipped 0.3 per cent to $51.90 a barrel.

BROKERAGE RADAR | HDFC Securities on Ashok Leyland

Ashok Leyland reported yet another weak quarter as EBITDA margin declined to 5.6% (-460/-20bps YoY/QoQ). The industry awaits the announcement of a scrappage scheme, which will aid demand in FY21. We reiterate NEUTRAL with a target price (TP) of Rs 75 (13x on Dec-21 EPS).

Coronavirus impact: Stay away from aviation stocks for now, say analysts

The contagion effect of the coronavirus (Covid-19) could soon bite the Indian aviation sector that is already dealing with a modest air-traffic growth due to the on-going economic slowdown. While the sector has seen limited impact thus far, failure to curb the virus till April could dent sentiment, experts say. Kapil Kaul, chief executive officer of CAPA’s South Asia unit says that the demand to East Asia and Southeast Asia could be affected, and outbound travel from April onwards will have to be watched, depending upon the severity of the situation in the next few weeks. READ MORE

Bharti Infratel tumbles 12%


MARKET CHECK


Whirlpool of India gains 4% in a weak market


MARKET CHECK | Sadbhav Engineering slips 7%


Bharti Airtel slides 4%, at day's low now


Broader markets underperform benchmarks


ITC continues decline, hits 3-year low; slips 15% so far in February

Thus far in February, ITC has underperformed the market by falling 15 per cent after the hike in the National Calamity Contingency Duty (NCCD) announced in the Union Budget this year. In comparison, the benchmark S&P BSE Sensex has slipped marginally by 0.22 per cent. READ MORE  

Photo: Reuters


Voda Idea: As threat of closure looms, Kumar Mangalam Birla meets DoT secy

Vodafone Idea Chairman Kumar Mangalam Birla, MD and CEO Ravinder Takkar on Tuesday called on Telecom Secretary Anshu Prakash amid concerns of its very survival if the government invokes bank guarantee over no payment of adjusted gross revenue (AGR). The company on Monday paid Rs 2,500 crore on account of its AGR dues and said that another Rs 1,000 crore will be paid by Friday. It is said that funds are being arranged to pay the remaining amount. READ MORE

Nifty PSU Bank index nears four-year low; six banks tumble to 5-year low

Shares of public sector banks (PSBs) continued to reel under pressure on Tuesday with the Nifty PSU Bank index nearing its four-year low level. The index hit intra-day low of 2,078.80, its lowest level since March 1, 2016, when it touched 2,053.60 levels in intra-day trade. It dipped below its previous low of 2113.05 levels hit on October 9, 2019. In past three trading days, Nifty PSU Bank index has slipped 7.9 per cent as against 2 per cent fall in the benchmark index. READ MORE  



BROKERAGE RADAR | ICICI Securities on Shree Pushkar Chemicals

We believe that given the Coronavirus situation prevailing in China, it is unlikely that China manufacturers would operate plant at higher utilisation in the near future. Further, given that majority of chemical producers hold inventories till April, there is a high probability that incremental order inquires for intermediates should flow to Indian companies. Wuhan is considered one of the most prominent places for dye intermediates production. Thus, incremental demand should benefit players like Shree Pushkar in the short-term. We value the company at 6x FY21E EV/EBITDA and arrive at a target price of Rs 145. We have a BUY rating on the stock.

MARKET CHECK | Bharti Airtel falls nearly 4%


MARKET CHECK | Sensex declines over 400 pts


MARKET CHECK | Varroc Engineering slips over 3%


MARKET UPDATE:: Indices at day's low; Sensex slips over 350 pts


BROKERAGE RADAR | Axis Securities on State Bank of India

In Q3FY20, Deposit growth increased to 10% YoY vs. 8% in Q2FY20. This was led by an increase in term deposit growth to 11/3% as CASA deposits grew ~8/1%. Overall, CASA formed 44.7% of the total deposits (45.2% last year). The uptick in deposit growth is a positive after sluggish growth in the trailing 5 quarters.
We have Buy with target price of Rs 357.

Market share loss, global trade hold-up to hit Concor's prospects

The ongoing domestic slowdown and lower global trade on account of the novel coronavirus is expected to weigh on the volume growth trend of Container Corporation (Concor) of India in the near term. While China’s share of India’s exports is slightly over 5 per cent, it accounts for 14 per cent of the country’s imports. Disruption in domestic production and further slowdown in the global economy could hit Concor’s export-import (exim) segment.  READ MORE

Heatmap: S&P BSE Sensex


Motherson Sumi slides 5%


Analysts see up to 45% upside in JSW Energy post GMR Kamalanga acquisition

Shares of JSW Energy jumped nearly 7 per cent on Tuesday, a day after the company said it has signed a share purchase agreement with GMR Energy Limited (GEL) to acquire 100 per cent stake in its subsidiary - GMR Kamalanga Energy (GKEL) - for a total consideration of up to Rs 5,321 crore. "Post-acquisition, the total installed power generation capacity of the Company will increase to 5,609 MW. READ MORE

LIC Housing Finance tumbles 6%


IndusInd Bank hits lowest level since January 2017, slips 16% in 8 days

Shares of IndusInd Bank slipped 5 per cent to hit a fresh over three-year low of Rs 1,118 on the BSE on Friday despite the bank’s clarification that its exposure to the telecom company is standard. The private sector lender's stock was trading at its lowest level since January 05, 2017. In the past eight trading days, IndusInd Bank's stock price has slipped 16 per cent, as compared to a 1 per cent decline in the benchmark S&P BSE Sensex. READ MORE

MARKET UPDATE:: Nifty slips below 11,950 level


MARKET UPDATE | NCC slips nearly 11%


MARKET UPDATE:: Sensex above 40,800


Vodafone Idea declines 15% on credit rating downgrade; tanks 44% in 7 days

“The downgrade inter-alia is on account of significant erosion in the overall risk profile of the company while taking into cognizance of the financial impact of no relief being granted on modification plea on 14th February 2020 of telecom companies (telcos) seeking new schedule of Adjusted Gross Revenues (AGR) dues by the Supreme Court and significant losses to the tune of Rs 6,453 crore in Q3FY20,” the company said in an exchange filing. READ MORE

Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 3.10 -9.36
YES BANK 34.95 -5.92
TATA CHEMICALS 752.80 0.07
RELIANCE POWER 1.74 -0.57
TV18 BROADCAST 28.60 13.72
» More on Most Active Volume

MARKET CHECK:: Sensex stays subdued


SECTOR WATCH:: Nifty PSU Bank index continues to reel under pressure


IndusInd Bank resumes downtrend, slips 4%


Hathway Cable, TV18 Broadcast surge 20% as RIL to consolidate media biz

Shares of Hathway Cable & Datacom Limited and TV18 Broadcast surged 20 per cent each to Rs 23.10 and Rs 30.10, respectively, on the BSE on Tuesday after Reliance Industries (RIL) announced consolidation of all its media and distribution businesses under one umbrella brand 'Network18'. Among other stocks, DEN Networks surged 10 per cent to Rs 59.5 and Network18 Media & Investments rose 4.89 per cent to Rs 30.05. On the other hand, Reliance Industries slipped 1 per cent to Rs 1,464. In comparison, the benchmark S&P BSE Sensex was down 0.54 per cent. READ MORE

Metal stocks crack; index down 2%


UTI, Nippon India MF create separate portfolios for Voda Idea AGR debt

The UTI Mutual Fund (MF) and Nippon India MF has decided to create side-pockets or separate portfolios in their schemes holding the stressed debt paper of Vodafone Idea, which was downgraded to below-investment grade on Monday by Care Rating. READ MORE  


ICICI Securities maintains SELL on Godrej Properties

Godrej Properties’ (GPL) has acquired a 27acre land parcel on outright basis in Ashok Vihar, New Delhi from the Railway Land Development Authority (RLDA). Against a reserve price of Rs12.8bn, GPL will pay Rs13.6bn for the land in a staggered manner over FY20-27E in equal instalments. GPL’s share of saleable area is 3.28msf which works out to a land cost of Rs4,143/psf.

Assuming a launch price of Rs15,000/psf, construction cost of Rs6,000/psf and development in two phase over FY21-29E, we arrive at post-tax project IRR of 23% and NPV of Rs4.1bn (Rs16/share) owing to the staggered land payment for this land. We retain our SELL rating with a target price of Rs772/share as we have already assigned a 30% business development premium to our NAV to arrive at our target price.

Avenue Supermarts holds gains

>> The retail portion of Avenue Supermarts' offer for sale (OFS) was almost fully subscribed on Monday. The offer got bids for 1.45 million shares or 0.98 per cent from retail investors on Monday as against 1.48 million shares on offer.


Market check | Nifty gives up 12,000-mark


Market check | Sentiment dampens at D-Street


YES Bank tanks over 5% on exposure to telcos


Vodafone Idea extends decline


JSW Energy jumps over 6%

>> Company will buy 1,050 MW GMR Kamalanga Energy for Rs 5,321 crore.


SBI dips as sentiment weakens in the market


RIL slips in trade


BLOCK DEAL | 1.2% equity of Tata Chemicals changes hands


Den Networks zooms 10% on RIL's media biz consolidation


Sectoral trends at NSE during Opening trade


Market at the moment


Opening Bell


First Trade


Top gainers and losers on S&P BSE Sensex during Pre-open


Market at Pre-open


Market at Pre-open


Rupee opening

Rupee opens lower at 71.38/$ vs Monday's close of 71.30 against the US dollar

HDFC Securities on Hero MotoCorp

Maintain BUY on Hero as (1) Hero has successfully defended market share in the 2W segment in the current downturn (2) The stock is trading at an attractive valuation of 15/14x FY20/21E; however, the extent of price hikes on BS-VI will delay the recovery in our view. We lower our target P/E multiple to 16x (vs. 18x earlier), which is in-line with its average historic trading multiple, to factor in a delayed recovery (2HFY21) and a slower than expected ramp up in the premium segment

Narnolia Financial Advisors on Nestle India

NESTLEIND has posted sales growth of 9% despite challenging general demand scenario is key positive for the quarter. Lower provisioning of taxes and improvement in EBITDA margin helped the company in posting a PAT growth of 38% YoY. Going forward, better traction from newly launched products, deeper penetration led by focused marketing and emphasis on expanding rural reach are expected to drive revenue growth.

While change in product mix and judicious pricing will help in negating the impact of input inflation. We continue to maintain positive view on NESTLEIND and value stock at 62x of CY21e’s eps with the target price of Rs 17236 .We maintain Hold rating.

Anand Rathi on Dixon Technologies

Post-Q3 FY20 results, we have revised our estimates and retain our Buy rating, with a target of Rs 5,899 (25x FY22e EPS of Rs 236), earlier Rs 5,822. Despite the recent run-up in the stock, we maintain a very positive stance as strategic growth levers are in place and could propel the growth momentum in FY21 and FY22. Key Risks to our positive stance on the stock would include supply-chain disruptions from China because of the corona virus, which could impact the Q4 FY20 and Q1 FY21 performances

MARKET OUTLOOK :: SMC Global

The market is likely to open at a flat note taking cues from the global sentiments. Asian stocks were trading lower today, after Apple Inc. said quarterly sales would miss forecasts, illustrating the blow to corporate earnings and economic growth from the deadly coronavirus. US Market remained closed for holiday on Monday in
observance of Presidents Day.

Indian shares ended lower on Monday to extend losses for a third straight session after Moody's Investors Service cut its 2020 growth projection for India to 5.4 percent from 6.6 percent forecast earlier, citing growing concerns over the economic fallout of the novel coronavirus outbreak.

As per provisional figures, foreign institutional investors (FIIs)/ Foreign Portfolio Investors (FPIs) sold shares worth net 374.06 Crore on 17th February 2020. Domestic institutional investors sold shares worth Rs. 154.25 Crore on that day.

Nomura on Ashok Leyland

Our EV/EBITDA multiple remains 10x FY22F as we expect the stock to re-rate to its long-term average due to MHCV cycle recovery. We roll-forward from Sep-21F to Mar-22F and add Rs 7/share for AL’s investments to arrive at our Rs 102 target price.

Stocks to watch

SBI: SBI Cards and Payment Services, the credit card unit of the country's largest lender State Bank of India (SBI), has received markets regulator Sebi's go ahead to float an initial public offering.
 
JSW Energy: JSW Energy will acquire GMR’s Kamalanga power project (1,050 Mw) in Odisha for Rs 5,321 crore. In a notice to exchanges, JSW said it had entered into a ‘share purchase agreement’ with GMR Energy for acquiring 100 per cent shares in its subsidiary GMR Kamalanga Energy. READ MORE

AGR dues: Vodafone Idea on the brink as DoT may revoke bank guarantees

In a day of twists and turns, the government received Rs 14,697 crore from three companies out of the telecom sector’s total dues linked to adjusted gross revenue (AGR) estimated at Rs 1.47 trillion, even as the Supreme Court dismissed Vodafone Idea’s plea seeking relief from revocation of its bank guarantee. Not leaving anything to chance, the Department of Telecommunications (DoT) has sought legal opinion including that of Solicitor General Tushar Mehta on whether to revoke bank guarantees of companies in case they fail to pay their full AGR dues before the next date of hearing on March 17. READ MORE

Reliance Industries to merge media, distribution businesses into Network18

Reliance Industries on Monday announced consolidation of its all media and distribution businesses under one umbrella brand 'Network18'. Under the scheme of arrangement, TV18 Broadcast, Hathway Cable & Datacom and Den Networks will merge into Network18 Media & Investments, which will be an integrated media and distribution company with a revenue of Rs 8,000 crore. READ MORE

Market share loss, global trade hold-up to hit Concor's prospects

The ongoing domestic slowdown and lower global trade on account of the novel coronavirus is expected to weigh on the volume growth trend of Container Corporation (Concor) of India in the near term. While China’s share of India’s exports is slightly over 5 per cent, it accounts for 14 per cent of the country’s imports. READ MORE

Nifty view & stock recos by Anand Rathi

SONATA SOFTWARE: BUY | TGT: Rs 360 | SL: Rs 328
 
The stock has been forming a symmetrical triangular pattern and it is expected to provide a breakout on the upside. The daily and weekly momentum indicators are well in the buy mode which will eventually help the stock to provide a breakout on the upside. READ MORE

BROKERAGE RADAR :: HDFC Securities on Sadbhav Engineering Ltd

>> SEL 3QFY20 performance was a disappointment as funding constraints limited execution of projects. With conclusion of InfInfravit deal funding issues will get resolved. Group standalone debt reduction by 50% will augur well for reinstating financial markets confidence in the group. Whilst it will take time for SEL to revert to historical levels of quarterly execution, we believe 3QFY21E onwards things should normalize. We maintain BUY. Key risks (1) Delay in new order inflows; and (2) Further delay in execution ramp-up.

>> We maintain BUY on SEL with a reduced TP of Rs 175sh (vs. Rs 241/sh earlier). We value SEL’s EPC business at 15x FY21E EPS and assign a 20% hold co discount to SIPL stake’s market cap. TP reduction is owing to FY20/21E EPS cut by 43/24%.

BROKERAGE RADAR :: HDFC Securities on Shree Cement

>> We value standalone cement biz at 15x EV/EBITDA (in-line industry leader UltraTech’s target valuation) - for SRCM’s industry leadership in cost & return ratios and strong capex management - leading to SOTP value of Rs 19,900. As the stock currently trades at an expensive 19.8/18.4x FY21/22E EBITDA, and at an EV of USD 280/MT.

>> We downgrade Shree Cement (SRCM) to SELL. Our TP implies cement EV of USD 222/MT. In 3QFY20, SRCM reported strong results (Rev/EBITDA in-line our est).

BROKERAGE RADAR :: HDFC Securities on Future Retail

Our previous BUY recommendation on Future Retail (FRL) was predicated on our belief that the retailer finally seems to have zeroed-in on its core after rummaging through multiple formats. However, we must admit its constant strategic flip-flops in assigning a core growth engine in a short span of time has left us stumped and certainly can be un-nerving for an investor. Ergo, we downgrade the stock to NEUTRAL (earlier BUY) with a revised TP of Rs. 370/sh (Implying 11x FY22 EV/EBITDA)

BROKERAGE RADAR :: Anand Rathi Shares and Stock Brokers on Jubilant Life Sciences

>> JLS revenue from operations came in at Rs.23,152 million in Q3-FY20, down by 2.6% YoY. This was on account of decline in Life Science Ingredients (LSI) business partially offset by slight improvement in Pharmaceuticals business.

>> On profitability front, the EBITDA from operations for the quarter improved by 2.9% year-on-year to Rs.5,074 million. EBITDA margins expanded by 117 bps yoy to 21.9%. Margin expansion was mainly on account of increase in share of high margin pharma segment revenue.

>> We have factored in the latest information and continue to remain positive on the company on a medium to longer term perspective and maintain our BUY rating on the stock with a target price of Rs.867 per share.

BROKERAGE RADAR :: Motilal Oswal Financial Services on Lemon Tree Hotels

>> Stabilization of recently launched hotels in Pune, Mumbai, Chandigarh, Udaipur and Dehradun is likely to drive operating profit in the near term.

>> For FY21/22, we largely maintain our revenue/EBITDA/PAT estimates. We expect revenue/EBITDA CAGR of 26%/36% over FY20-22. We value the stock
at 18x FY22E EV/EBITDA and arrive at a target price of INR72. Maintain Buy (CMP: Rs 60, TP: Rs 72).

BROKERAGE RADAR :: Motilal Oswal Financial Services on Glenmark Pharma

>> We expect 8% earnings CAGR over FY19-22, led by sales CAGR of 13.5% in India and 10% in API/LATAM/Europe. We continue valuing GNP at 12x 12M
forward earnings to arrive at a price target of INR330 (prior: INR341).

>> Maintain Neutral (CMP: Rs 310, TP: Rs 330) on limited upside from current levels.

BROKERAGE RADAR :: Motilal Oswal Financial Services on SAIL

>> We expect sales volume CAGR of 6% over FY20-22 as demand improves and capacity ramps up. Employee cost remains under control. Headcount has been declining led by natural attrition and VRS.
 
>> Better steel prices are likely to lead to improved margins. However, leverage remains elevated at ~8x net debt/EBITDA, which is a key concern and exposes the company to any volatility in steel prices.

>> We value the stock at 6.5x FY21E EV/EVITDA at INR43/sh. Maintain Neutral (CMP: Rs 43, TP: Rs 43)

BROKERAGE RADAR :: Motilal Oswal Financial Services on Ashok Leyland

>> Valuations at 13x/8.8x FY21/22E EV/EBITDA are at early recovery cycle and do not fully reflect for AL’s focus on adding new revenue and profit pool.
 
>> Maintain Buy (CMP: Rs 82, TP: Rs 95) with a TP of ~INR95 (INR11/share of HLFL + 10x Dec’21E EV/EBITDA compared to ~11x 10-year median EV/EBITDA

Bulk deals on NSE as on Monday

Bulk deals on BSE as on Monday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee Check

Source: Bloomberg


Oil Check

>> At 8:00 am, Brent Crude Futures were at $57.18 per barrel-mark.

Nifty view & stock recos by Anand Rathi: Buy Sonata Software, PNC Infra

SONATA SOFTWARE: BUY | TGT: Rs 360 | SL: Rs 328
 
The stock has been forming a symmetrical triangular pattern and it is expected to provide a breakout on the upside. The daily and weekly momentum indicators are well in the buy mode which will eventually help the stock to provide a breakout on the upside. READ MORE

SGX Nifty

> At 7:52 am, the Singaporean Exchange for Nifty Futures was at 12,043.50, down 29 points.

Asian Market Check

Source: Reuters


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