MARKET WRAP: Nifty ends May F&O expiry above 10,700, Sensex gains 416 pts

Photo: Shutterstock
Benchmark indices gained on Thursday on expectations that the domestic economy likely gained momentum in the first three months of 2018. Investors also cheered expiry of F&O contracts for May 2018 series.

The S&P BSE Sensex ended the day at 35,322, up 416 points while the broader Nifty50 index settled at 10,736, up 121 points 

The median in a Reuters poll on the latest quarter’s annual growth was 7.3%, the best pace since July-September 2016. Forecasts for January-March range from 6.9 to 7.7%.

Among sectors, financials firmed up and accounted for most of the gains on the indices, with HDFC Bank gaining nearly 5% and Housing Development Finance Corp inching 2% higher.

Shares of Reliance Communications jumped nearly 6% after the Anil Ambani-led company said on Wednesday it expects to complete its asset sale to Reliance Jio Infocomm and Canada’s Brookfield in coming weeks.

Global Markets

Asian stocks bounced back from a two-month trough as a degree of calm returned with the two anti-establishment parties renewing efforts to form a coalition government rather than force Italy into holding elections for the second time this year.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.7% after slumping on Wednesday to its weakest since early April.

(With inputs from Reuters)

3:41 PM IST Nifty Pharma fell over 1%  COMPANY LATEST PREV CLOSE LOSS() LOSS(%) VOLUME SUN PHARMA.INDS. 480.35 494.55 -14.20 -2.87 18785199 DR REDDY'S LABS 1927.85 1961.80 -33.95 -1.73 1859410 CADILA HEALTH. 361.30 367.50 -6.20 -1.69 3115317 AUROBINDO PHARMA 556.30 565.65 -9.35 -1.65 4277149 BIOCON 665.40 674.90 -9.50 -1.41 5112021

3:38 PM IST Nifty Bank index gains over 2%: Top gainers in the pack COMPANY LATEST PREV CLOSE GAIN() GAIN(%) VOLUME HDFC BANK 2147.40 2048.35 99.05 4.84 9107110 INDUSIND BANK 1959.40 1884.85 74.55 3.96 3620127 ST BK OF INDIA 270.60 267.15 3.45 1.29 29605103 KOTAK MAH. BANK 1319.65 1303.25 16.40 1.26 6320209 IDFC BANK 40.55 40.05 0.50 1.25 138009862

3:36 PM IST Nifty chart for the day

3:35 PM IST Sectoral Trend

3:34 PM IST Top Sensex gainers and losers

3:33 PM IST Markets at Close The S&P BSE Sensex ended the day at 35,322, up 416 points while the broader Nifty50 index settled at 10,736, up 121 points

3:18 PM IST What is China's A-share MSCI inclusion on June 1?   Global market research and index company MSCI Inc will add roughly 230 China-listed shares to its emerging market benchmark in a two-step process starting on June 1, a move expected to drive a surge of foreign money into the country's stock markets.   MSCI's decision a year ago to include yuan-denominated Chinese stocks, or "A-shares", into its emerging market (EM) index triggered a rally in Chinese blue-chips in 2017, though the market has corrected this year amid rising borrowing costs and fears of a Sino-US trade war. READ MORE

3:08 PM IST The quiet upheaval in Indian broking that's taking a bite out of revenues   The nearly 200-billion rupee Indian broking industry is going through a bit of turbulence. And its roots can be traced all the way to Europe.   The European Union has introduced new rules that are already taking a bite out of revenues and is changing how research and execution services are offered to some of India’s largest foreign investors. The resulting pressure on earnings is likely to mirror the tumult seen elsewhere in the world, according to experts. READ MORE

2:57 PM IST ANALYSIS Debt-free firms make up 57% of all market cap; Why Dalal Street loves them   In a world awash with debt, Dalal Street shows special preference for companies that stay away from borrowings and fund their operations largely from internal accruals. Debt-free companies (on net debt basis) account for 57 per cent of all market capitalisation of listed non-financial companies even though they are in minority in terms of revenues, assets and net profits.   In all, 209 non-financial companies out of a total sample of 594 companies were debt-free at the end of FY18 and together they accounted for 25.6 per cent of the sample companies’ combined net sales, 22.7 per cent of all assets and 46.5 per cent of their net profit. The analysis is based on a common sample of companies that part of BSE 500, BSE Midcap and BSE Smallcap indices. READ MORE

2:44 PM IST 31 stocks from smallcap index fall over 25% in May   Manpasand Beverages, Jet Airways (India), Avanti Feeds, Atlanta, Hindustan Construction Company (HCC), Waterbase, Rolta India and Dilip Buildcon were among 31 stocks from the S&P BSE Smallcap index falling more than 25% in the month of May.   Mangalam Drugs, Asian Oilfield, Sunil Hitech, Tamil Nadu Petroproudcts, Kitex Garments, Nandan Denim, Bhansali Engineering Polymers, Rain Industries, Granules India and Thirumalai Chemicals too slipped an over 25% during the month. READ MORE

2:30 PM IST Investors worried PM Modi may sacrifice fiscal prudence ahead of 2019 polls   The rupee is the worst performing currency in Asia this year, flirting with an all-time low on worries that India is headed for problems as rising oil prices rewrite the once-shining fundamentals of Asia’s third-largest economy.   India had been in a sweet spot since Prime Minister Narendra Modi came to power in 2014. Its economic expansion is outpacing even China’s, inflation is in check, its budget deficit seemed to be shrinking and its popular prime minister had looked unbeatable. It’s now the world’s fastest-growing large economy. READ MORE

2:15 PM IST Coal India extends gain post Q4 results; stock hits three-month high   Coal India rallied 5% to Rs 303 in intra-day trade on Thursday, extending its Wednesday’s 2.3% gain on the BSE, after the company reported higher than expected 4.5% year on year growth in consolidated net sales at Rs 251 billion in March 2018 quarter (Q4FY18).   The stock hit a three-month high in early morning deal today, was less than 5% away from its 52-week high of Rs 317 touched on February 27, 2018 in intra-day trade. READ MORE

LIVE UPDATES

Nifty Pharma fell over 1% 

COMPANY LATEST PREV CLOSE LOSS() LOSS(%) VOLUME
SUN PHARMA.INDS. 480.35 494.55 -14.20 -2.87 18785199
DR REDDY'S LABS 1927.85 1961.80 -33.95 -1.73 1859410
CADILA HEALTH. 361.30 367.50 -6.20 -1.69 3115317
AUROBINDO PHARMA 556.30 565.65 -9.35 -1.65 4277149
BIOCON 665.40 674.90 -9.50 -1.41 5112021

Nifty Bank index gains over 2%: Top gainers in the pack

COMPANY LATEST PREV CLOSE GAIN() GAIN(%) VOLUME
HDFC BANK 2147.40 2048.35 99.05 4.84 9107110
INDUSIND BANK 1959.40 1884.85 74.55 3.96 3620127
ST BK OF INDIA 270.60 267.15 3.45 1.29 29605103
KOTAK MAH. BANK 1319.65 1303.25 16.40 1.26 6320209
IDFC BANK 40.55 40.05 0.50 1.25 138009862

Nifty chart for the day


Sectoral Trend


Top Sensex gainers and losers


Markets at Close

The S&P BSE Sensex ended the day at 35,322, up 416 points while the broader Nifty50 index settled at 10,736, up 121 points
What is China's A-share MSCI inclusion on June 1?
 
Global market research and index company MSCI Inc will add roughly 230 China-listed shares to its emerging market benchmark in a two-step process starting on June 1, a move expected to drive a surge of foreign money into the country's stock markets.
 
MSCI's decision a year ago to include yuan-denominated Chinese stocks, or "A-shares", into its emerging market (EM) index triggered a rally in Chinese blue-chips in 2017, though the market has corrected this year amid rising borrowing costs and fears of a Sino-US trade war. READ MORE
The quiet upheaval in Indian broking that's taking a bite out of revenues
 
The nearly 200-billion rupee Indian broking industry is going through a bit of turbulence. And its roots can be traced all the way to Europe.
 
The European Union has introduced new rules that are already taking a bite out of revenues and is changing how research and execution services are offered to some of India’s largest foreign investors. The resulting pressure on earnings is likely to mirror the tumult seen elsewhere in the world, according to experts. READ MORE
ANALYSIS Debt-free firms make up 57% of all market cap; Why Dalal Street loves them
 
In a world awash with debt, Dalal Street shows special preference for companies that stay away from borrowings and fund their operations largely from internal accruals. Debt-free companies (on net debt basis) account for 57 per cent of all market capitalisation of listed non-financial companies even though they are in minority in terms of revenues, assets and net profits.
 
In all, 209 non-financial companies out of a total sample of 594 companies were debt-free at the end of FY18 and together they accounted for 25.6 per cent of the sample companies’ combined net sales, 22.7 per cent of all assets and 46.5 per cent of their net profit. The analysis is based on a common sample of companies that part of BSE 500, BSE Midcap and BSE Smallcap indices. READ MORE


31 stocks from smallcap index fall over 25% in May
 
Manpasand Beverages, Jet Airways (India), Avanti Feeds, Atlanta, Hindustan Construction Company (HCC), Waterbase, Rolta India and Dilip Buildcon were among 31 stocks from the S&P BSE Smallcap index falling more than 25% in the month of May.
 
Mangalam Drugs, Asian Oilfield, Sunil Hitech, Tamil Nadu Petroproudcts, Kitex Garments, Nandan Denim, Bhansali Engineering Polymers, Rain Industries, Granules India and Thirumalai Chemicals too slipped an over 25% during the month. READ MORE
Investors worried PM Modi may sacrifice fiscal prudence ahead of 2019 polls
 
The rupee is the worst performing currency in Asia this year, flirting with an all-time low on worries that India is headed for problems as rising oil prices rewrite the once-shining fundamentals of Asia’s third-largest economy.
 
India had been in a sweet spot since Prime Minister Narendra Modi came to power in 2014. Its economic expansion is outpacing even China’s, inflation is in check, its budget deficit seemed to be shrinking and its popular prime minister had looked unbeatable. It’s now the world’s fastest-growing large economy. READ MORE
Coal India extends gain post Q4 results; stock hits three-month high
 
Coal India rallied 5% to Rs 303 in intra-day trade on Thursday, extending its Wednesday’s 2.3% gain on the BSE, after the company reported higher than expected 4.5% year on year growth in consolidated net sales at Rs 251 billion in March 2018 quarter (Q4FY18).
 
The stock hit a three-month high in early morning deal today, was less than 5% away from its 52-week high of Rs 317 touched on February 27, 2018 in intra-day trade. READ MORE
Market Check

S&P BSE Sensex 35,103.25 0.56%
 
Nifty 50 10,672.15 0.54%
 
S&P BSE 200 4,636.84 0.39%
 
Nifty 500 9,280.90 0.28%
 
S&P BSE Mid-Cap 16,014.66 -0.24%
 
S&P BSE Small-Cap 17,280.12 -0.39%

Sebi sets up review panel to hear disputes between rating agencies & firms
 
The Securities and Exchange Board of India (Sebi) on Wednesday directed rating agencies to set up committees to hear the appeals of issuers aggrieved by the ratings assigned to them. Currently, there is no stipulated mechanism to review such issues.
 
“To ensure transparency and fairness, it has been decided that requests by issuers for review of the ratings will be reviewed by a rating committee that shall comprise a majority of independent members,” Sebi said. READ MORE
Orient Cement calls off deal with Jaypee Group; stock gains 15%
 
Orient Cement has moved higher by 15% to Rs 140 on the BSE in intra-day trade, after the company announced the termination of an agreement with Jaypee Group companies to acquire Nigrie cement grinding unit and Bhilai Jaypee Cements due to its inability to complete the deal within the stipulated timeframe.
 
Orient Cement on May 31, 2017 had executed share purchase agreement entered into between the Company and Jaiprakash Associates for the acquisition by the Company of 74% equity shares of Bhilai Jaypee Cement from Jaiprakash Associates; and business transfer agreement entered into between the Company, Jaiprakash Power Ventures and Jaiprakash Associates, for the acquisition by the Company of the Nigrie Cement Grinding Unit, as going concern from Jaiprakash Power Ventures. READ MORE
MSCI weighs placing India on notice over investor access
 
Morgan Stanley Capital International (MSCI), one of the world's biggest index compilers, is placing emerging markets, including India and Brazil, on notice for limiting investor access.
 
The two countries, along with Turkey and South Korea, are “potential future examples” of markets whose weights could be capped on MSCI indices, the New York-based company said in a presentation on its website on Wednesday. READ MORE
Volume Toppers

COMPANY PRICE() CHG() CHG(%) VOLUME
REL. COMM. 18.60 1.10 6.29 26721147
RELIANCE NAV.ENG 16.25 0.60 3.83 6141446
SUZLON ENERGY 9.03 -0.40 -4.24 3288323
JP ASSOCIATES 15.40 -0.35 -2.22 2157913
RELIANCE INDS. 921.30 3.95 0.43 1789782
» More on Most Active Volume
SECTOR WATCH Telecom stocks trade mixed. RCom up 6%

COMPANY NAME LATEST HIGH LOW CHG
()
CHG(%) VALUE
( CR)
VOLUME
REL. COMM. 18.60 20.85 18.05 1.10 6.29 49.13 26413227
IDEA CELLULAR 61.60 62.90 61.35 -0.15 -0.24 1.98 321728
TATA TELE. MAH. 5.32 5.45 5.27 -0.23 -4.14 0.10 178819
M T N L 16.45 16.60 16.30 -0.20 -1.20 0.14 87835
BHARTI AIRTEL 375.00 383.20 374.00 -0.90 -0.24 2.73 72906

Sebi shuts FII-to-FII trades; huge demand seen for HDFC Bank stock on Jun 1
 
Market regulator the Securities and Exchange board of India (Sebi) has scrapped the special window meant for inter-se trading between foreign institutional investors (FIIs).
 
The move would hurt foreign institutional investors (FIIs) who used to avail this window to deal in stocks such as HDFC Bank, where FII investment limits are often fully utilized. READ MORE
HDFC Bank, M&M from S&P BSE Sensex hit new high
 
Three companies – HDFC Bank, Kotak Mahindra Bank and Mahindra & Mahindra (M&M) – from the S&P BSE Sensex hit their respective new highs, on the BSE in intra-day trade on Thursday in otherwise range-bound market.
 
HDFC Bank hit a new high of Rs 2,127, up 4% on the BSE in early morning trade, after its American Depository Receipts (ADR) surged nearly 9% on Wednesday. The stock surpassed its previous high of Rs 2,065 recorded on May 15, 2018 on the BSE in intra-day trade. READ MORE


US price erosion: Pressure on Glenmark's business to continue
 
Glenmark is exploring if it should spin off its consumer health and Active Pharmaceutical Ingredients (API) businesses, the drug maker indicated after its March quarter results.
 
The consumer health business, with sales of Rs 1.5 billion in FY18, is about six per cent of domestic sales and growing at a robust rate. “Glenmark has appointed a committee to assess the feasibility of housing the API and consumer care businesses into separate subsidiaries.READ MORE
Markets at noon

S&P BSE Sensex 35,040.40 0.38%
 
Nifty 50 10,651.10 0.35%
 
S&P BSE 200 4,629.41 0.23%
 
Nifty 500 9,267.65 0.14%
 
S&P BSE Mid-Cap 16,019.27 -0.21%
 
S&P BSE Small-Cap 17,311.41 -0.21%

IIFL on Cox and Kings

Operating performance across the various businesses is seen remaining steady, and management also expects debt reduction in FY19, driven by normalization of GST-related working capital.
 
We continue to see value in the stock, although we acknowledge that the company will need to execute on its deleveraging plans for concerns to abate. Our SOTP-based March-19 target price stands at Rs 310
HDFC Securities on ONGC

Stock  has corrected by ~15% post the budget despite of rising 12% increase in  crude  oil  prices, mainly because of the concern over possible subsidy burden  on  upstream  companies. This has resulted in de-rating of these companies.

We believe, any clarity on subsidy sharing mechanism will result in earning visibility and this will lead to re-rating of these companies. Our target price is Rs 279/share (10x  Mar-20E standalone + OVL EPS and Rs 41 from investments). Maintain BUY
MFs net buyers of stocks for 22 months in a row, mop up Rs 94 bn in May
 
Mutual funds (MFs) have purchased stocks worth nearly Rs 94 billion in May. This is the 22nd consecutive month of straight net buying in the sector. The buying comes despite choppiness in the market, which saw the benchmark Sensex swing 1,200 points from a high of 35,536 to a low of 34,344.
 
Foreign portfolio investors (FPIs), on the other hand, have been net sellers in the market this month, having pulled out Rs 86 billion. Fund managers are advising investors not to panic when markets turn volatile. Instead, they should use corrections before investing more. READ MORE
Gruh Finance hits record high ahead of 1:1 bonus issue
 
Gruh Finance hit a record high of Rs 736, up 5% on the BSE in intra-day trade on Thursday ahead of 1:1 bonus issue. The Company has fixed Thursday, June 7, 2018 as the record date for determining the entitlement of members to receive bonus equity shares of the Company in the ratio of 1:1 i.e. one new bonus equity share of Rs 2 each for every one existing equity share of Rs 2 each.
 
The stock will turn ex-bonus on Wednesday, June 6, 2018. READ MORE
Bypoll results 2018 LIVE: BJP trails united Opposition in UP's Kairana

The Lok Sabha seats that went to polls are Palghar and Bhandara-Gondiya in Maharashtra, the politically-crucial Kairana Lok Sabha constituency in Uttar Pradesh, and the Nagaland parliamentary constituency.
 
Further, by-elections were held in the Legislative Assemblies of Shahkot (Punjab), Tharali (Uttarakhand), Ampati (Meghalaya), Chengannur (Kerala), Jokihat (Bihar), Gomia (Jharkhand), Silli (Jharkhand), Maheshtala (West Bengal), Noorpur (Uttar Pradesh), and Palus Kadegaon (Maharashtra). GET ALL UPDATES HERE

Bhandara: Voters stand in a queue to cast their vote at a polling station during Bhandara-Gondia Loksabha by-elections, in Bhandara district of Maharashtra, Wednesday, May 30, 2018. (PTI Photo)

Edelweiss on Dish TV

Dish TV India’s (Dish) Q4FY18 sales and EBITDA declined 5.1% and 19.5% QoQ due to lower subscription revenue and one-time merger expense, respectively (YoY numbers are not comparable because of the merger). Key highlights: (i) 4.6% QoQ dip in subscription revenue due to focus on quality customers & merger related uncertainty during the quarter; (ii) net additions fell QoQ to 0.2mn versus 0.25mn in Q3FY18; and (iii) EBITDA margin slipped 469bps QoQ to 26.1% due to INR600mn one-time merger expense. Adjusting for the same, EBITDA margin would have come at 30.1%.

Potent catalysts: 1) we perceive cost synergies from the Videocon D2H merger (management guidance: INR5.1bn in FY19); and 2) level playing field in the TV space on implementation of TRAI’s tariff order. Maintain ‘BUY’. However, likely JIO entry, ARPU growth and loss of incremental net subscribers remain key concerns
MARKET COMMENT

The IMD maintained its forecast for the 2018 southwest monsoon at 97% of the LPA implying that it continues to expect a normal monsoon. The spatial and temporal distribution forecasts bode well for major crops though the forecast for August rainfall and rainfall in Eastern India are seemingly on the lower side. We remain positive on crop production volumes—should be beneficial for the rural sector. Over the next few months we will watch for the MSP announcement, kharif sowing pattern and rainfall pattern in July and August.

We maintain our FY2019 GVA growth at 7.1% from 6.4% in FY2018. However, we expect FY2019 agriculture GVA growth at 2.9% in line with 3% in FY2018. We will have actual data for FY2018 with the May 31 release

(Source: Kotak Securities note)
Sebi slaps Rs 200,000 on Geojit Financial for violating stock brokers' norm
 
Markets regulator Sebi today imposed a fine of Rs 2 lakh on Geojit Financial Services for violating stock brokers' norm.
 
It was alleged that Geojit had delayed in filing statement transaction report (STR) with government's Financial Intelligence Unit (FIU) of its clients. Besides, Geojit allegedly failed to exercise proper due-diligence while dealing with client. READ MORE
Stocks at 52-week high

COMPANY PRICE() 52 WK HIGH CHG() CHG(%)
AVENUE SUPER. 1567.50 1575.00 3.50 0.22
GODREJ CONSUMER 1156.65 1161.00 26.35 2.33
GRUH FINANCE 727.00 736.00 24.60 3.50
HATSUN AGROPROD. 720.00 732.35 7.68 1.08
HDFC BANK 2088.00 2126.65 41.15 2.01
» More on 52 Week High
Atlanta tanks 20% as auditor Price Waterhouse resigns
 
Shares of Atlanta are locked in lower circuit of 20% at Rs 51.10, also its fresh 52-week low on the BSE, after the Price Waterhouse resigned as auditor of the company with effect from May 29, 2018.
 
“Price Waterhouse Chartered Accountants LLP, Statutory Auditors of the Company, vide their letter dated May 29, 2018 have resigned from their position as the Statutory Auditors of the Company for F.Y.-2017-18 with immediate effect,” Atlanta said in a regulatory filing. READ MORE
ANALYSIS BSE Midcap index set for worst monthly fall in 18 months
 
The adage – Sell in May and go away – has proven correct this time around for stocks in the mid-cap segment with the S&P BSE Midcap index set to post its worst monthly fall in past 18 months. The performance comes on the back of sharp decline automobiles, pharmaceutical, capital goods and financial sector stocks.
 
Out of 100 stocks from the index, 78 per cent scrips have recorded a negative return during May. Of these 78 stocks, 44 scrips have underperformed by falling up to 62 per cent till Tuesday. READ MORE

Photo: Shutterstock.com

Power Grid: Strong order book to drive earnings in FY18-22, say analysts
 
Power Grid’s March quarter (Q4) performance, announced after market hours on Tuesday, saw earnings grow at a moderate pace, partly due to exceptional items. Yet, its share price gained 1.1 per cent on Wednesday. The optimism stems from analyst expectations of a pick-up in asset capitalisation and capital expenditure (capex) by India’s largest power transmission company.
 
Capitalisation refers to commercial start of a project. Fear of slow growth in capitalisation was one reason for the stock lagging in the second half of 2017-18. READ MORE
NIFTY OPTIONS WATCH
 
·         Addition in OI were seen in 10600 strike call and at 10500 strike Put indicating range bound session in the market for the day.
 
·         Highest OI build-up is seen at 10800 strike Calls and 10500 strike Puts, to the tune of 5.10mn and 5.79mn respectively.
 
FII AND VIX
 
·         FIIs were net sellers in Cash to the tune of 1287 Cr. and were net sellers in Index Futures to the tune of 832.28 Cr.
 
·         India VIX increased by 2.60% to close at 13.41 touching an intraday high of 13.85.

(Source: Nirmal Bang report)
Market Check

S&P BSE Sensex 35,004.87 0.28%
 
Nifty 50 10,639.20 0.23%
 
S&P BSE 200 4,629.12 0.23%
 
Nifty 500 9,272.30 0.19%
 
S&P BSE Mid-Cap 16,077.06 0.15%
 
S&P BSE Small-Cap 17,374.88 0.16%

RCom gains 15% on settlement agreement with Ericsson
 
Reliance Communications (RCom) was up 15% to Rs 20.10 on the BSE in early morning trade after the National Company Law Appellate Tribunal (NCLAT) stayed the May 15 order of the National Company Law Tribunal (NCLT) in Mumbai, which had admitted the RCom and two of its subsidiaries for insolvency proceedings.
 
“The NCLAT vide its orders dated May 30, 2018 stayed, with immediate effect, all the three orders dated May 15, 2018 whereby NCLT had admitted the Company and its subsidiaries Reliance Infratel Limited and Reliance Telecom Limited to Corporate Insolvency Resolution Process (CIRP) under Insolvency and Bankruptcy Code, 2016,” RCom said in a statement. READ MORE
IIFL on Coal India

The company has guided for production and sales volume of 630mn tons in FY19 from 567.4mn tons of production and 580.3mn tons of sales in FY18. We believe most of the negatives are already built into the price. Evacuation charges coupled with price hikes would add Rs.89bn to the company’s topline. This is in addition to the volume growth expected during the year.

Employee costs would also be lower on a yoy basis as the company will not have any on-offs and prior period items (Rs.80bn). We believe a combination of the above would lead to operating profit more than doubling on a yoy basis. We believe valuations at 5.3x FY20 EV/EBIDTA, is quite attractive considering the above tailwinds. We upgrade the stock to Buy with a revised price target of Rs.369
Stocks in News

Power Grid to offer up to 20% of tower assets to telecom firms

Ultratech says Binani Cement lenders panel approved resolution plan.

Granules India launched generic Methylergonovine tablets in partnership with Hikma.

Jamna Auto in pact with U.K.’s Tinsley Bridge Ltd. for technology and technical assistance.

Can Fin Homes to consider fund raising proposals on June 2.

Eicher Motors’ Royal Enfield launches special edition of Classic 500 Pegasus

KNR Construction wins HAM order worth Rs 1,144.5 crore.

Infibeam approves raising up to Rs 2,000 crore.

Punj Lloyd approves restructuring of outstanding credit facilities.

Atlanta says statutory auditor PWC resigned with immediate effect.

(Source: Nirmal Bang report)
Edelweiss on BPCL

Despite better marketing margins, rising international fuel prices in an election-heavy calendar continue to weigh on OMCs’ marketing business. Factoring in lower marketing margin, we cut FY19/20E earnings by 7%/4%. Maintain ‘BUY’ with a revised SoTP-based target price of Rs 520 (Rs 582 earlier), as we lower EV/EBITDA multiple for marketing (5x FY20E vs. 6x earlier) due to perceived risk to free pricing. 
Edelweiss on Sadbhav Engineering

Sadbhav Engineering's (SEL) Q4FY18 revenue grew 7% YoY to Rs 11bn, while EBITDA margin expanded ~60bps to 11.2%. Lower other income (down 82% YoY) restricted PAT to Rs 699mn (up ~2% YoY). The company’s BOT portfolio witnessed healthy ~10% YoY growth in toll collection.

Robust order inflows which have boosted order book to ~Rs 132bn (book-to-bill at 3.7x) and improving margin trajectory are key positives. With a bid pipeline of ~Rs 800bn, we expect the company to win substantial orders going ahead, which will lend impetus to execution growth. Maintain ‘BUY’ with SoTP-based target price of Rs 530.
Stocks under Rs 10 that have zoomed up to 720% in a year
 
A rising tide lifts all boats. The market rally over the past one year has seen 23 stocks that traded at Rs 10 or below on the BSE, zoom over 100 per cent during this period.
 
New Delhi – based Bampsl Securities tops the table with a gain of 718 per cent, followed by Daman & Diu – based Dolat Investments Ltd that has surged 602 per cent to Rs 17.5 levels, ACE Equity data shows. These stocks traded at Rs 0.23 and Rs 2.5 levels, respectively a year ago. In comparison, the S&P BSE Mid-cap and S&P BSE Small-cap indices have moved up around 12 per cent and 17 per cent, respectively during this period. READ MORE
Sectoral Trend


Top Sensex gainers and losers


Markets at open

At 9:17 am, the S&P BSE Sensex was trading at 35,048, up 142 points while the broader Nifty50 index was ruling at 10,672, up 58 points
MUST READ Nifty: Downside support at 10,420, well above 200-Day Moving Average
 
The Nifty is uncertainly poised but the background signals seem to be negative. The hung Karnataka assembly results were not to the market’s taste and the BJP’s failure to put together a government triggered bearish sentiment.
 
After that, geopolitics has taken over, with higher crude prices and a political crisis in Italy, causing a correction. The Nifty has now etched out a sequence of falling tops though support has held well above the index's 200 Day Moving Average. READ MORE
Markets at Pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 35,040.64 +134.53 +0.39
 
S&P BSE SENSEX 50 11,146.13 +38.54 +0.35
 
S&P BSE SENSEX Next 50 33,034.76 +40.44 +0.12
 
S&P BSE 100 10,977.95 +34.25 +0.31
 
S&P BSE Bharat 22 Index 3,556.66 +7.96 +0.22

Stock ideas from Prabhudas Lilladher:
 
BUY GODREJ INDUSTRIES 
CMP: Rs 580.55 
TARGET: Rs 635 
STOP LOSS: Rs 550
 
The stock has indicated a higher bottom formation pattern in the daily chart with intraday low taking support at the previous low made at around 525 levels and currently has showed a pullback to move past the 34 WMA moving average levels to signify potential and strength to rise still further in the coming days. The RSI has recently indicated a trend reversal and has signaled a buy and with positive bias maintained and with good volume participation witnessed, we recommend a buy in this stock for an upside target of 635 keeping a stop loss of 550. Click here for more
Nifty outlook by Prabhudas Lilladher:
 
Nifty has indicated a lower top formation in the daily chart but still clarity of directional movement of indices is still not maintained. With F&O segment expiry just around the corner, we anticipate volatility in the indices. BankNifty has got a support at around 26,000 levels while Nifty has got strong base at 10,520-10,540 levels. However, the support for the day is seen at 10,550 while resistance is seen at 10,670.
Stock ideas by Tradebulls for today
 
Stock: BAJAJ FINANCE
Reco: Buy
CMP: Rs 2118
 
Stock: MAX FINANCIAL
Reco: BUY
Nifty outlook by Tradebulls
 
The recent ‘Engulfing Bearish’ formation post the 4 days up move complimented the unwinding state & saw a decline towards 10,550. On the options front 10,500 PE remains heavily built up & remains a strong support followed by 10,600.The options pain remains at 10600 for the current series & the spinning top formation in yesterday’s session augurs well for a consolidative state hence expect the index to retain the range of 10,730-10,550 for the coming days.
Markets on Wednesday

S&P BSE Sensex 34,906.11 -0.12%
 
Nifty 50 10,614.35 -0.18%
 
S&P BSE 200 4,618.64 -0.15%
 
Nifty 500 9,255.00 -0.17%
 
S&P BSE Mid-Cap 16,052.74 0.03%
 
S&P BSE Small-Cap 17,347.72 -0.19%

SGX Nifty
 
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 25 points or 0.24 per cent. Nifty futures were trading around 10,656-level on the Singaporean Exchange.
Asia stocks bounce, euro pulls off lows as Italy anxiety ebbs
 
Asian stocks rebounded from a two-month trough on Thursday, while the euro enjoyed a respite after sinking to its lowest in 10 months as political turmoil in Italy that had roiled global financial markets showed signs of easing.
 
MSCI’s broadest index of Asia-Pacific shares outside Japan tacked on 0.3 per cent having slumped to its weakest since the start of April on Wednesday.
 
South Korea’s KOSPI added 0.6 per cent and Japan’s Nikkei advanced 0.5 per cent.
Wall Street rebounds as Italy worries ease
 
US stocks ended higher on Wednesday, and the S&P 500 and Dow registered their biggest daily percentage gains since May 4, on signs of easing political turmoil in Italy and as a surge in oil prices boosted energy stocks.
 
The Dow Jones Industrial Average rose 306.33 points, or 1.26 per cent, to 24,667.78, the S&P 500 gained 34.15 points, or 1.27 per cent, to 2,724.01, and the Nasdaq Composite added 65.86 points, or 0.89 per cent, to 7,462.45.
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