MARKET WRAP: Sensex zooms 489 pts, Nifty over 11,800; Jet Airways soars 90%

Indian shares recouped early losses to end Thursday's session with over 1 per cent gain as financial stocks, following Fed’s rate-cut hints, offset losses in IT counters triggered by a report of U.S. move to cap H1-B work visas.

That apart, reports of monsoon hitting drought hit Maharashtra also boosted sentiment. As per a Reuters report, India’s annual monsoon has covered some parts of the western state of Maharashtra and conditions are becoming favourable for further advancement into the southern part of the country.

The benchmark S&P BSE Sensex zoomed 489 points, or 1.25 per cent, to 39,602, with YES Bank, IndusInd Bank, Sun Pharma, Larsen & Toubro, and ICICI Bank leading the list of gainers. Out of the 30 BSE Sensex scrips, only NTPC, ITC, HDFC Bank, and Hindustan Unilever ended Thursday's session with losses.

The broader Nifty50 index ended higher. Nifty Pharma gained the most 3.06 per cent, while Nifty Auto and Nifty PSU Bank indices also climbed over 2 per cent each.

In the broader market, the S&P BSE MidCap index added 237 points, or 1.6 per cent, to settle at 14,680, while the S&P BSE SmallCap index rose 146 points, or 1.05 per cent, to 14,065.

BUZZING STOCKS

YES Bank shares tumbled to a double-digit value of Rs 98.75 per share, down 4.6 per cent intra-day, for the first time in almost half a decade as investors’ sentiment eroded due to the bank’s exposure to debt-laden companies. However, the stock ended the day 11 per cent higher at Rs 114.55. READ MORE

Shares of Adani Green rallied 3.66 per cent to Rs 41.10 on Thursday, a day after the company announced that its wholly-owned subsidiary Adani Renewable Energy Park (Gujarat) has bagged 600 MW wind-solar hybrid projects in an auction conducted by state-run Solar Energy Corporation of India (SECI). READ MORE

 

4:07 PM IST

4:07 PM IST

4:06 PM IST

4:05 PM IST The S&P BSE Sensex ended at 39,602, up 489 points while the broader Nifty50 index settled at 11,832, up 140 points.

3:29 PM IST

3:13 PM IST

3:10 PM IST We hosted Mr. Pirojshaw Sarkari, CEO, Mahindra Logistics (MLL), at the Edelweiss Logistics Conference held on June 18, 2019. According to Mr. Sarkari, though the general slowdown in the economy, particularly in the auto sector, will have some impact, he pegged the 3PL category’s medium to long term revenue CAGR at 15-16%. He also expects margin to improve due to rapid growth in the warehousing segment. Hence, EPS growth is estimated at 20% each in FY20 and FY21 despite much lower sales growth. Maintain ‘BUY’ with DCF-based target price of Rs 610

3:09 PM IST

3:07 PM IST Current valuations of just 7.6x FY21E EPS/ 3.7x EV/EBITDA and the higher consol EPS via HPCL/MRPL/OPAL contribution by FY21E, delivers material opportunity for upside. Our valuation based on 7.5-8.5x FY21E earnings for standalone/subsidiary companies delivers a TP of Rs245/sh. BUY

3:07 PM IST

3:04 PM IST

LIVE UPDATES

Nifty sectoral indices at close


Heatmap: S&P BSE Sensex


Market at close


Market at close

The S&P BSE Sensex ended at 39,602, up 489 points while the broader Nifty50 index settled at 11,832, up 140 points.

Jet Airways zooms 125%


Indiabulls Housing Finance up over 8%


Edelweiss on Mahindra Logistics

We hosted Mr. Pirojshaw Sarkari, CEO, Mahindra Logistics (MLL), at the Edelweiss Logistics Conference held on June 18, 2019. According to Mr. Sarkari, though the general slowdown in the economy, particularly in the auto sector, will have some impact, he pegged the 3PL category’s medium to long term revenue CAGR at 15-16%. He also expects margin to improve due to rapid growth in the warehousing segment. Hence, EPS growth is estimated at 20% each in FY20 and FY21 despite much lower sales growth. Maintain ‘BUY’ with DCF-based target price of Rs 610

IPO WATCH


Centrum on ONGC

Current valuations of just 7.6x FY21E EPS/ 3.7x EV/EBITDA and the higher consol EPS via HPCL/MRPL/OPAL contribution by FY21E, delivers material opportunity for upside. Our valuation based on 7.5-8.5x FY21E earnings for standalone/subsidiary companies delivers a TP of Rs245/sh. BUY

IIFL's long-term picks


Dish TV gains over 5%


Market check | Sensex rises by 400 pts


Market check | Nifty reclaims 11,800


Sugar stocks trade under pressure

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%)
BAJAJ HINDUSTHAN 7.46 7.54 7.22 -0.04 -0.53
BALRAMPUR CHINI 141.00 141.90 125.90 1.95 1.40
DHAMPUR SUGAR 186.85 191.85 178.60 -4.10 -2.15
DWARIKESH SUGAR 25.15 25.50 24.30 0.90 3.71
TRIVEN.ENGG.IND. 64.50 65.25 62.50 -1.15 -1.75
SH.RENUKA SUGAR 8.82 8.95 8.70 -0.17 -1.89
KCP SUGAR &INDS. 13.00 14.15 12.50 -0.95 -6.81
KM SUGAR MILLS 7.33 7.33 7.00 0.16 2.23
UGAR SUGAR WORKS 13.50 13.85 13.20 -0.35 -2.53
AVADH SUGAR 607.90 624.25 568.80 -21.65 -3.44

NEWS ALERT | RBI being very proactive on liquidity: Ashima Goyal

- RBI 'really listening' to market feedback on liquidity
 
- RBI keeping liquidity in surplus with OMOs, Forex swaps

NEWS ALERT | More sensible for RBI to target core CPI inflation: Ashima Goyal, member, PMEAC

- Core inflation better target for framing RBI policy
 
- It captures demand slowdown
 
- High real interest rate blocking uptick in private investment

Alert: PMEAC stands for Prime Minister Economic Advisory Council

IndusInd Bank rises over 3%


NEWS ALERT | 0.56% equity exchanged of Jyothy Labs


NEWS ALERT | Sensex zooms over 300 pts


Jet Airways extends gains, stock up 39%


Reliance Securities on SBI

SBI: Buy

Target: Rs 390
 
SBI’s strong liability franchise and better capital position differentiate it from other PSU peers. Moreover, industry best cost of funds also helps lower asset side risks. Sharp decline in credit cost and improvement in margin are expected to drive improved RoAs over FY20E/21E. Factoring in the benefits of likely stake sale in subsidiaries in FY20E and write-backs from some large NCLT recoveries, we expect RoA of 0.8%/0.9% in FY20E/FY21E. We have a buy recommendation on the stock with a target price of Rs 390 implying a FY21 P/ABV of 1.6x. At CMP, the stock trades at 1.4x FY21E APBV.

Prabhudas Lilladher on Voltas

We estimate the Voltas-Beko JV to report loss of nearly Rs 1.5 bn/ Rs 1.2 bn in FY20/21. MEP business is focusing on domestic projects in Rural Electrification and Urban Infra as return of NDA Govt is likely to retain continuity in policies. We estimate 15.9 per cent EPS (earnings per share) CAGR over FY19-21 and value the stock at 28xFY21 earnings. Maintain Hold.

Sun Pharma rises over 3%


Nifty Metal index is trading 1.5% higher


CG Power climbs over 4%


Nifty Pharma index is trading over 2% higher


Piramal Enterprises is trading over 6% higher


NEWS ALERT | Have not received any communication from US on capping H1-B work visa: Govt sources to CNBC TV18

Alert: Reports suggested that the US has told India it was considering caps on H-1B work visas for nations that force foreign companies to store data locally

Oil check | Brent Crude climbs over $63/barrel

Source: Oilprice.com


NEWS ALERT | Promoter of Adani Trans releases pledge on 31.1 lakh shares on June 13-17


Market check | Sensex trading near day's high


NEWS ALERT | Promoters of Adani Ports release pledge on 13.3 lakh shares on June 17-18


NEWS ALERT | Promoters of Adani Enterprises release pledge on 19 lakh shares on June 14-17


Bears return to prey on rupee as Lok Sabha election euphoria fades: Poll

 Investors shaved bearish bets on most Asian currencies over the past two weeks but went short on the rupee for the first time in over three months, a Reuters poll showed, as election euphoria faded against the backdrop of slowing growth in India. Investors had turned bullish on the rupee in March for the first time in nearly a year when billions of dollars worth of foreign funds poured into India ahead of general election in the world's biggest democracy. READ MORE


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
JAIN IRRIGATION 23.75 4.05 20.56 12631173
JET AIRWAYS 42.80 9.70 29.31 7645295
YES BANK 108.30 5.05 4.89 7198070
RELIANCE POWER 4.75 0.57 13.64 5426407
RELIANCE CAPITAL 60.80 6.75 12.49 5424375
» More on Most Active Volume

NEWS ALERT | IL&FS Engineering arm gets Road MInistry's nod to re-start projects in Bihar: CNBC TV18


Sharekhan on JMC Projects

View: Positive
 
CMP: Rs. 124
 
Upside potential: 18-20%
 
JMC Projects (JMC) is expected to benefit from government spending on infrastructure. During FY2017 to FY2019, JMC’s strong order book growth (18% CAGR), improving execution capabilities and tight cost controls resulted in an 18%/55% CAGR in standalone revenue/net profit. JMC’s current backlog of Rs. 9,962 crore with expectation of strong order intake of Rs. 5,800 crore plus p.a. is likely to result in a 16% CAGR each in standalone net revenue and PAT over FY2019-FY2021E. JMC’s strong operating cash flow-generation capabilities, lower leverage and healthy return ratios provide quality balance sheet. Hence, we Initiate 'viewpoint coverage' on JMC with a Positive view and expect an 18-20% upside.

Jain Irrigation is trading over 17%


PSP Projects surges 3% on new order worth Rs 607 crore

Stocks of PSP projects surged 3.38 per cent intra-day on the National Stock Exchange (NSE) on Thursday after the company announced receipt of work order worth Rs 607 crore. The order is for institutional and residential projects, including a major project of Rs 601.40 crores for construction of flat type high rise buildings-cum-commercial units for economically weaker section (EWS). the projects are for Bhiwandi (Maharashtra) region. READ MORE


MARKET CHECK


NEWS ALERT | NCLT will pass order on SBI plea at 5 PM today

NEWS ALERT | PSP Projects gets orders worth Rs 607 cr in Maharashtra; stock gains 2.2%


Jet Airways zooms 31%


Stocks that hit 52-week low on S&P BSE Sensex

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
ALEMBIC PHARMA 464.00 462.60 -5.50 -1.17
AMARA RAJA BATT. 583.80 572.60 1.80 0.31
BOSCH 16361.45 16067.00 103.00 0.63
CARE RATINGS 925.00 917.95 5.00 0.54
CEAT 896.40 872.05 -1.55 -0.17
» More on 52 Week Low

Reliance Infra surges 16.4%


NEWS ALERT | LIC Housing Fin makes timely principal payment of Rs 600 cr: CNBC TV18

- Also makes interest payment of Rs 42 cr on NCDs

YES Bank dips 5% to trade in double digits for the first time in five years

YES Bank shares tumbled to a double-digit value of Rs 98.75 per share, down 4.6 per cent intra-day, for the first time in almost half a decade as investors’ sentiment eroded due to the bank’s exposure to debt-laden companies. At 10:30 am, the stock was trading at Rs 106.35 apiece, up 3 per cent, having pared losses registered during the morning deals. In comparison, the S&P BSE Sensex was trading 0.2 per cent higher at 39,191 levels. READ MORE

YES Bank Photo: Reuters

NEWS ALERT | Gold sprints to over 5-year peak after Fed hints at rate cuts: Reuters

- Spot gold was up 1.4% at $1,378.45 per ounce as of 10:15 am, after hitting its highest since March 17, 2014 at $1,383.81.
 
- US gold futures surged 2.5% to $1,382.60 an ounce.

Alert: US Federal Reserves kept rates unchanged in June policy meeting but said it was ready to battle growing global and domestic economic risks with interest rate cuts beginning as early as next month.
 

Index contributors at this hour


Market check | Sensex extends rally


Indiabulls Housing Fin gains 6% in trade

- Management told a TV channel that it has no exposure to DHFL, Anil Ambani Cos.


Apollo Hospitals gains over 3% after sale of health insurance biz to HDFC

Shares of Apollo Hospitals rose 3.8 per cent to Rs 1,404 while those of Housing Development Finance Corporation (HDFC) climbed 1 per cent to Rs 2,200 after it was announced that the mortgage lender would acquire controlling stake of 51.2 per cent in the Apollo Munich Health Insurance for about Rs 1,347 crore. After the acquisition, Apollo Munich Health Insurance will be merged with the non-life insurance arm of mortgage lender HDFC Ergo. The deal is subject to regulatory approvals and the entire process is expected to be completed in nine months. READ MORE


These 5 stocks are likely to slip into Rs 100 club, show technical charts

The recent sharp fall in the stock market has seen many stocks entering the Rs 100 club. This club includes those stocks that have fallen below Rs 100 levels after a strong upside. Counters like Dewan Housing Finance Corporation (DHFL), Jet Airways (India), IRB Infrastructure Developers, Reliance Capital, Reliance Infrastructure have joined this club by falling below Rs 100-mark as they hurt the investor sentiment and relevance of long-term portfolio for investors. READ MORE


J&K Bank rises 5.6%


Nifty sectoral indices at this hour


Market Check | Telecom stocks gain in the trade


Adani Green surges 6% after arm bags 600 MW wind-solar hybrid projects

The company has received Letters of Award (LOAs) from SECI for the 600 MW projects. The fixed power purchase agreement (PPA) tariff is Rs 2.69/kWh for a period of 25 years, it added. CLICK TO READ FULL ARTICLE




Market check | Nifty turns green, trades above 11,700


Market check | Sensex turns green, reclaims 39k


YES Bank slips to double digit share price for the first time in 5 years


Bharat Financial Inclusion is trading over 1% lower


BSE IT index is trading over 1% lower


BSE Oil & Gas index is trading 0.33% higher


Reliance Capital skids 5% in trade


Adani Green Energy gains nearly 3% in trade


Nifty Bank index slips over 100 pts


Lakshmi Vilas Bank slips 1% in trade


Jain Irrigation Systems tumbles over 10%


IRB Infra tumbles nearly 10% in early trade


UPL slips over 2% in early trade


Apollo Hospitals gains over 2%


IFCI slips over 7%


Wipro is among the biggest losers, slips nearly 4%


Nifty IT index slips the most during the morning trade

- The United States has told India it is considering caps on H-1B work visas for nations that force foreign companies to store data locally


Sectoral trends on NSE


Top gainers and losers on S&P BSE Sensex


Market at open


Market at open


Momentum picks by ICICI Securities


Market at pre-open


Rupee opening

Rupee opens stronger at 69.48/$ vs Wednesday's close of 69.68 against the US dollar

Market at pre-open


ED arrests two former IL&FS executives in alleged money laundering case

The Enforcement Directorate (ED) on Wednesday arrested two former top executives — Arun Kumar Saha and Karunakaran Ramchand — for their alleged involvement in money laundering activities at Infrastructure Leasing & Financial Services (IL&FS) group.
 
Saha was former joint managing director (MD) of IL&FS Financial Services, while Ramchand was former MD of IL&FS Transportation Networks (ITNL). READ MORE

Explainer: How trade tensions changed the Fed's outlook in seven weeks

On May 1, the Federal Reserve viewed the American economy as having a solid footing and risks to the outlook were muted.
 
That assessment has weakened demonstrably since, and Fed Chair Jerome Powell and many of his colleagues inside the US central bank on Wednesday signalled readiness to cut interest rates as required to shore up a US economic expansion that appears to be losing steam. READ MORE

HDFC to acquire Apollo Munich Health Insurance for Rs 1,347 crore

Mortgage lender Housing Development Finance Corporation (HDFC) will acquire controlling stake of 51.2 per cent in Apollo Munich Health Insurance for about Rs 1,347 crore from Apollo Hospitals group and few employees who hold stake in the standalone health insurer. After the acquisition, Apollo Munich Health Insurance will be merged with the non-life insurance arm of mortgage lender HDFC Ergo. The deal is subject to regulatory approvals and the entire process is expected to be completed in nine months. READ MORE

After the acquisition, Apollo Munich Health Insurance will be merged with the non-life insurance arm of HDFC Ergo

Sebi's separate FPI registration plan draws flak from investors

The Securities and Exchange Board of India’s (Sebi’s) recommendations to make it mandatory for sub-funds with segregated portfolios to take separate FPI registrations have invited strong opposition from foreign portfolio investors (FPIs). They fear such a move could compel them to liquidate their holdings, incur huge costs, and potentially disrupt the Indian stock market. READ MORE


Mauritius to green light offshore funds, advisory services in 60 days

Mauritius has given indicative timelines for clearing applications of offshore funds and advisory services, providing relief to Indian offshore funds that had come under the country’s regulatory glare and were waiting longer to get approvals for new funds. Mauritius has stepped up scrutiny of offshore fund structures, as the country tries to shed its image as a quasi-tax haven and showcase its compliance with all major international tax norms. READ MORE

Illustration by Ajay Mohanty

With new RBI norms, investors need to be cautious about small finance arms

With the Reserve Bank of India set to open up the small finance banking space for more players soon, investors will be flooded with more options, thanks to the mandatory listing norms for SFBs. Among the current entities, Equitas and Ujjivan are required to list their SFBs by September 2019 and February 2020, respectively. READ MORE

India bond yields to decline further over global tensions, say dealers

With the bond yields in Europe in a negative territory, and the market expecting more than one rate cut by the Reserve Bank of India (RBI), the Indian bond market is at the midst of a great rally, with some more legroom to go. The 10-year government bond yield fell to 6.84 per cent, recovering a little from Tuesday’s 6.81 per cent. On Monday, the yields had closed at 6.93 per cent. READ MORE


Near-term gains unlikely for cement stocks due to high valuations

A recovery in prices in the past couple of months has provided strong support to cement stocks. The share prices of select cement companies have gained 12-34 per cent in 2019 so far, outpacing an 8 per cent rise in the Sensex. However, concerns over realisations and high valuations could limit gains in the near term. READ MORE

US Fed hints at rate cuts later this year: Top takeaways from June meeting

The US Federal Reserve kept the policy rate unchanged in the range of 2.25 - 2.50 per cent in its June monetary policy meet that concluded on Wednesday but hinted at possible rate cuts later this year for the first time in more than a decade if the economic outlook weakens.

Following the policy announcement, the US stocks ended in the green with the S&P 500 approaching a record high. The Dow Jones Industrial Average rose 0.15 per cent to end at 26,504.27 points, while the S&P 500 gained 0.30 per cent to 2,926.44. The Nasdaq Composite added 0.42 per cent to 7,987.32. READ HERE

Trump admin mulling caps on H-1B visas to deter data rules: Report

The United States has told India it is considering caps on H-1B work visas for nations that force foreign companies to store data locally, three sources with knowledge of the matter told Reuters, widening the two countries' row over tariffs and trade.
 
The plan to restrict the popular H-1B visa programme, under which skilled foreign workers are brought to the United States each year, comes days ahead of US Secretary of State Mike Pompeo's visit to New Delhi. READ MORE

From telecom to oil sector, economists flag 'business uncertainties'

Economists and financial sector experts expressed their concerns on uncertainty in the business environment and allegedly arbitrary decisions taken by tax, regulatory and other authorities that hamper businesses in India, in a meeting with NITI Aayog on Tuesday.

According to sources, the participants were of the view that particularly in case of telecom and oil, policy changes have not been synchronised well and often the projects are stuck because of issues raised by anybody in the chain of authority. READ MORE

Corporate Affairs Min may amend LLP Act to tighten noose on shell firms

Conversion of companies into LLPs picked up pace in the past three years because of easy rules, giving rise to an apprehension that these may be shell companies. The number of firms that got converted to LLPs has doubled to 6,000 since demonetisation.
 
A senior ministry official said: “The rate at which companies are converting into LLPs is unusual. After the crackdown on shell companies, the number of converts to LLPs has doubled. They might be trying to beat the law.” CLICK HERE TO READ MORE

Today's picks: From Adani Ports to Titan, hot stocks to watch on Thursday

Nifty
 
Current: 11,691 (fut: 11,720),
 
Target: NA
 
Stop-long positions at 11,645. Stop-short positions at 11,800. Big moves could go till 11,850, 11,600. News flow from the Fed Policy meet could be the big swing factor. A long June 27, 11,900c (24), long 11,500p (25) offset by short 11400p (15), short 12,000 (11) could cover any possible trend. READ MORE

Stock calls by Tradebulls Securities: Buy Motherson Sumi, sell Tata Chem

50- Double Exponential Moving Average (DEMA; 11,658) acted as support for the third consecutive session on the downside with occurrence of another “Doji” at lower end of consolidation support. Occurrence of “Bearish Belt Hold” candle along with a negative crossover in the previous trading session warrants a cautious approach in the forthcoming sessions. READ MORE

Market outlook and top two trading ideas by Prabhudas Lilladher

BUY VOLTAS 
 
CMP : Rs 609.60 
 
TARGET : Rs 646 
 
STOP LOSS : Rs 590
 
The stock has been in an upward trend forming series of higher bottom formation pattern in the daily chart to signify strength and currently has taken support at 592 levels and bouncing back for further upside movement. The RSI also has indicated a reversal to improve the bias and with decent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 646 keeping a stop loss of Rs 590. READ MORE
 

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



Rupee check

Source: Bloomberg


Oil check

At 7:43 am, the Brent Crude Futures were trading at $62.58 per barrel.

SGX Nifty

At 7:40 am, the SGX Nifty was trading 37 points higher at 11,755.5 levels

Asian Markets check

Source: Reuters


US Market check

Source: Reuters


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