MARKETS ON WEDNESDAY: Indices snap 9 sessions of gains; banking stocks drag

A share broker monitors market fluctuation
Benchmark indices ended in red on Wednesday, snapping 9 session of gains, as investors remained cautious on quarterly results, dragged mainly by banking and financial stocks.

The S&P BSE Sensex ended at 34,332, down 63 points while the broader Nifty50 index settled at 10,526, down 23 points.

Among sectoral indices, Nifty PSU Bank fell nearly1% on fall in almost all stocks. Bank of Baroda, Indian Bank, Andhra Bank, OBC, Syndicate Bank, Union Bank, IDBI Bank and SBI declined up to 4%.

In the global markets, Asian shares crept ahead on Wednesday after Wall Street took heart from upbeat corporate earnings, though nagging concerns about trade barriers and the global growth outlook kept currencies and bonds subdued.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2 per cent in early trade, though that follows four straight sessions of losses.

Japan's Nikkei added 0.6 per cent, with investors waiting for any developments on trade as Japanese Prime Minister Shinzo Abe meets President Donald Trump at his Mar-a-Lago resort.

(with Reuters inputs)


3:43 PM IST Nifty PSU Bank index ends 1.10% lower. Top losers: COMPANY LATEST PREV CLOSE LOSS() LOSS(%) BANK OF BARODA 141.65 147.85 -6.20 -4.19 INDIAN BANK 306.75 318.95 -12.20 -3.83 ANDHRA BANK 42.05 43.00 -0.95 -2.21 IDBI BANK 69.95 71.05 -1.10 -1.55 ORIENTAL BANK 94.60 95.85 -1.25 -1.30

3:39 PM IST Nifty FMCG index ends 1.74% up. Top gainers: COMPANY LATEST PREV CLOSE GAIN() GAIN(%) GODREJ CONSUMER 1134.30 1076.40 57.90 5.38 DABUR INDIA 356.20 343.75 12.45 3.62 GODREJ INDS. 595.00 577.60 17.40 3.01 ITC 275.45 267.60 7.85 2.93 TATA GLOBAL 285.45 280.95 4.50 1.60

3:36 PM IST Sectoral performers

3:34 PM IST BSE Sensex: ITC, Wipro among top gainers, Axi Bank top loser

3:31 PM IST Market at close   The S&P BSE Sensex ended at 34,332, down 63 points while the broader Nifty50 index settled at 10,526, down 23 points.

3:21 PM IST World stocks at four-week highs as earnings rekindle risk appetite Global stocks climbed to their highest in nearly four weeks on Wednesday as strong US first-quarter earnings helped revive risk appetite, driving up equities and hauling the dollar out of its slump. European stocks rose in early trading, pushing MSCI's index of world stocks up 0.2 per cent to its highest since March 22. The top index of euro zone stocks rose 0.4 per cent to its highest since Feb. 5, when a spike in volatility amplified a sell-off in global equity markets. READ MORE

3:00 PM IST Gold rises on Akshaya Tritiya buying Gold prices went up by Rs 30 to Rs 32,380 per ten grams at the bullion market today largely due to token buying by jewellers on the auspicious occasion of 'Akshaya Tritiya', but a subdued trend overseas capped the gains.   Silver strengthened by Rs 150 at Rs 40,450 per kg largely in step with gold.   Traders said, besides token purchases by consumers on the auspicious occasion of 'Akshaya Tritiya', depreciating rupee against the dollar helped gold prices to trade higher. READ MORE

2:50 PM IST Hindustan Zinc plans to produce 1,000 tonnes of silver in next 3-4 years Hindustan Zinc (HZL), India’s largest zinc and silver producer, is planning to increase production of silver from 556 tonnes in 2017-18 to 1,000 tonnes in the next 3-4 years.   On Tuesday, the company announced its silver refinery had been recognised by the London Bullion Market Association (LBMA) as its approved refinery on Monday, making it the only Indian private sector company achieving this status in India. READ MORE

2:35 PM IST BSE FMCG index hits new high; Godrej Consumer, Dabur, ITC up over 3% Shares of fast moving consumer goods (FMCG) companies were in focus with the S&P BSE Index up more than 2% hitting a new high on the BSE. The FMCG index hit record high of 11,085 in intra-day trade surpassed its previous high of 11,047 recorded on February 1, 2018. READ MORE

2:18 PM IST Fortis Healthcare suitors' list gets longer with Fosun's $350-million offer   Adding to the list of bidders for Fortis Healthcare, Fosun Health Holdings Ltd (FHHL), a wholly-owned subsidiary of the Hong Kong Stock Exchange-listed Fosun International, on Tuesday made a proposal for primary infusion at Rs 156 a share, up to a total investment of $350 million (Rs 22.75 billion), including a preliminary investment of Rs 1 billion. The unsolicited non-binding offer, however, is subject to due diligence, to be completed within three weeks. This will enable Fosun to own a 25 per cent or more stake in Fortis. READ MORE

2:00 PM IST Market Check S&P BSE Sensex 34,525.09 0.38%   Nifty 50 10,583.30 0.33%   S&P BSE 200 4,653.58 0.33%   Nifty 500 9,359.25 0.31%   S&P BSE Mid-Cap 16,835.98 0.33%   S&P BSE Small-Cap 18,182.31 0.28%

1:44 PM IST Companies raise Rs 69 bn on BSE Bond platform under Sebi's new norm Indian companies have raised Rs 69 billion by issuing bonds through private placement on BSE's electronic book mechanism since Sebi's new guidelines came into effect from April 1.   Under the new norms, Sebi has made electronic platform mandatory for all private placement issues on debt basis that have a threshold of Rs 2 billion, a move aimed at achieving better and transparent price discovery through the bidding process. READ MORE

LIVE UPDATES

Nifty PSU Bank index ends 1.10% lower. Top losers:

COMPANY LATEST PREV CLOSE LOSS() LOSS(%)
BANK OF BARODA 141.65 147.85 -6.20 -4.19
INDIAN BANK 306.75 318.95 -12.20 -3.83
ANDHRA BANK 42.05 43.00 -0.95 -2.21
IDBI BANK 69.95 71.05 -1.10 -1.55
ORIENTAL BANK 94.60 95.85 -1.25 -1.30

Nifty FMCG index ends 1.74% up. Top gainers:

COMPANY LATEST PREV CLOSE GAIN() GAIN(%)
GODREJ CONSUMER 1134.30 1076.40 57.90 5.38
DABUR INDIA 356.20 343.75 12.45 3.62
GODREJ INDS. 595.00 577.60 17.40 3.01
ITC 275.45 267.60 7.85 2.93
TATA GLOBAL 285.45 280.95 4.50 1.60

Sectoral performers


BSE Sensex: ITC, Wipro among top gainers, Axi Bank top loser


Market at close
 
The S&P BSE Sensex ended at 34,332, down 63 points while the broader Nifty50 index settled at 10,526, down 23 points.
World stocks at four-week highs as earnings rekindle risk appetite

Global stocks climbed to their highest in nearly four weeks on Wednesday as strong US first-quarter earnings helped revive risk appetite, driving up equities and hauling the dollar out of its slump.

European stocks rose in early trading, pushing MSCI's index of world stocks up 0.2 per cent to its highest since March 22. The top index of euro zone stocks rose 0.4 per cent to its highest since Feb. 5, when a spike in volatility amplified a sell-off in global equity markets. READ MORE
Gold rises on Akshaya Tritiya buying

Gold prices went up by Rs 30 to Rs 32,380 per ten grams at the bullion market today largely due to token buying by jewellers on the auspicious occasion of 'Akshaya Tritiya', but a subdued trend overseas capped the gains.
 
Silver strengthened by Rs 150 at Rs 40,450 per kg largely in step with gold.
 
Traders said, besides token purchases by consumers on the auspicious occasion of 'Akshaya Tritiya', depreciating rupee against the dollar helped gold prices to trade higher. READ MORE

Hindustan Zinc plans to produce 1,000 tonnes of silver in next 3-4 years

Hindustan Zinc (HZL), India’s largest zinc and silver producer, is planning to increase production of silver from 556 tonnes in 2017-18 to 1,000 tonnes in the next 3-4 years.
 
On Tuesday, the company announced its silver refinery had been recognised by the London Bullion Market Association (LBMA) as its approved refinery on Monday, making it the only Indian private sector company achieving this status in India. READ MORE

BSE FMCG index hits new high; Godrej Consumer, Dabur, ITC up over 3%

Shares of fast moving consumer goods (FMCG) companies were in focus with the S&P BSE Index up more than 2% hitting a new high on the BSE.
The FMCG index hit record high of 11,085 in intra-day trade surpassed its previous high of 11,047 recorded on February 1, 2018. READ MORE

Fortis Healthcare suitors' list gets longer with Fosun's $350-million offer
 
Adding to the list of bidders for Fortis Healthcare, Fosun Health Holdings Ltd (FHHL), a wholly-owned subsidiary of the Hong Kong Stock Exchange-listed Fosun International, on Tuesday made a proposal for primary infusion at Rs 156 a share, up to a total investment of $350 million (Rs 22.75 billion), including a preliminary investment of Rs 1 billion. The unsolicited non-binding offer, however, is subject to due diligence, to be completed within three weeks. This will enable Fosun to own a 25 per cent or more stake in Fortis. READ MORE


Market Check

S&P BSE Sensex 34,525.09 0.38%
 
Nifty 50 10,583.30 0.33%
 
S&P BSE 200 4,653.58 0.33%
 
Nifty 500 9,359.25 0.31%
 
S&P BSE Mid-Cap 16,835.98 0.33%
 
S&P BSE Small-Cap 18,182.31 0.28%

Companies raise Rs 69 bn on BSE Bond platform under Sebi's new norm

Indian companies have raised Rs 69 billion by issuing bonds through private placement on BSE's electronic book mechanism since Sebi's new guidelines came into effect from April 1.
 
Under the new norms, Sebi has made electronic platform mandatory for all private placement issues on debt basis that have a threshold of Rs 2 billion, a move aimed at achieving better and transparent price discovery through the bidding process. READ MORE

Pallid past, better future for paint firms; price hikes to support earnings

Consumer stocks, including paints, gained in Tuesday’s trade on account of India Meteorological Department’s (IMD) forecast of a normal monsoon. Stocks of the three major paint firms, Asian Paints, Berger Paints India and Kansai Nerolac Paints, were up 0.7-4 per cent on Tuesday.
 
Expectations of an uptick in demand owing to a revival in rural economy and a recovery from the aftermath demonetisation and the goods and services tax triggered the upmove. Demand in the March 2018 quarter (Q4) is projected to be muted because of seasonality factors. READ MORE

Cryptocurrency by Cambridge Analytica? Controversial firm may raise $30 mn

Cambridge Analytica was planning to raise money by issuing a new type of digital currency before it became embroiled in a scandal surrounding the misuse of Facebook Inc personal data, sources familiar with the matter told Reuters on Tuesday. The British data analytics consultancy had approached a firm that advises companies on how to structure an initial coin offering, an increasingly popular online fundraising scheme involving the issue of a new digital currency, the sources said. READ MORE

Stocks at 52-week high

COMPANY PRICE() 52 WK HIGH CHG() CHG(%)
AARTI INDS. 1325.00 1327.45 36.90 2.86
DIVI'S LAB. 1179.80 1202.00 0.30 0.03
FIRSTSOUR.SOLU. 58.45 59.15 0.75 1.30
GODREJ CONSUMER 1129.35 1132.00 53.10 4.93
HEXAWARE TECH. 423.45 428.50 9.85 2.38

Now is time to sacrifice margins for growth: Infosys CEO Salil Parekh
 
Salil Parekh didn’t get much time to settle in after taking over the helm of Infosys Ltd.
 
Since becoming chief executive officer in January, the 53-year-old has crisscrossed three continents to meet with customers and employees to get his hands around the challenges facing India’s iconic tech-services giant. He talked with 48 clients in his first three months -- and he’s determined to see every single one face to face in the next two quarters. READ FULL STORY HERE

Sahil Parekh

ITC trading higher for third straight day; stock up 6% in three days

Shares of ITC were up 4% at Rs 278 per share on the BSE on Wednesday, trading higher for the third straight trading day, on back of heavy volumes. In past three days, the stock outperformed the market by gaining 6.5% from Rs 261 on Friday, April 13, 2018. READ MORE

Biocon: Monetisation of drug pipeline in emerging markets to boost earnings

The news flow around Biocon’s biosimilar pipeline is gaining strength, helping its stock price outperform the markets. The stock has gained 6.6 per cent in the past month, compared to the Sensex’s 3.1 per cent rise.
 
If analysts are to be believed, it could only get better from here. A few days ago, Biocon announced that the company and its partner Mylan are accelerating the introduction of adalimumab biosimilar of brand Humira, used for treating arthritis, in Europe through Mylan’s in-licensing arrangement with Fujifilm Kyowa Kirin Biologics (FKB). READ MORE

Markets at Noon

 
S&P BSE Sensex 34,478.39 0.24%
 
Nifty 50 10,570.50 0.21%
 
S&P BSE 200 4,648.54 0.22%
 
Nifty 500 9,349.25 0.20%
 
S&P BSE Mid-Cap 16,819.60 0.23%
 
S&P BSE Small-Cap 18,166.83 0.19%

Retail investors miss rally in Midhani;stock zooms 74% against offer price

Retail investors have missed the rally in Mishra Dhatu Nigam (Midhani) as the stock of state-owned company hit a new high of Rs 151 in intra-day trade on Wednesday, rallying 73% against its offer price of Rs 87 per share. READ MORE
TCS Q4FY18 result preview: Here's what brokerages expect
 
Infosys surprised the Street by lowering its EBIT guidance for FY19 while announcing its March quarter (Q4FY18) numbers on Friday. Will TCS follow suit? The Tata Group company is likely to announce its results for the March quarter and the full financial year 2017-18 (FY18) on April 19.
 
According to analysts, commentary on spends by BFSI and retail clients, level of outsourcing in Europe will be some of the key monitorables.
 
Click here for a quick compilation of what leading brokerages and research houses expect from TCS:


Volume Toppers

COMPANY PRICE() CHG() CHG(%) VOLUME
VAKRANGEE 125.30 5.60 4.68 13706216
NATL. ALUMINIUM 80.00 2.00 2.56 3330281
REL. COMM. 21.10 0.00 0.00 1618567
JP ASSOCIATES 19.75 0.05 0.25 1343138
TEXMACO RAIL 87.45 1.00 1.16 1014862
» More on Most Active Volume
 
SECTOR WATCH: Metals & Mining

We expect integrated aluminium (Al) players such as Hindalco, South32 & Alcoa and US-based convertors like Novelis & Kaiser to outperform in the near term. Our conviction is based on: i) benefits of LME Al price surge likely to be meager for non-integrated players due to an (almost) equivalent rise in alumina price; ii) cascading effect of Rusal sanctions exacerbating Al supply chain uncertainties; and iii) 2.2x jump in US MidWest premiums in CY18 & Al-scrap spread at a three-year high.

In the medium term, however, we perceive risks to current LME Al price upswing from burgeoning Chinese supply and potential roll back of 50% production cut at Alunorte refinery. Maintain ‘BUY’ on Hindalco and Vedanta.

(Source: Edelweiss Research)
IMF maintains India's FY19 growth at 7.4%; cautions govt on fiscal deficit
 
The International Monetary Fund (IMF) has maintained its forecast for India’s economic growth at 7.4% in 2018-19, which will again make the country the fastest-growing large economy after losing this tag to China by a close margin in 2017-18. For 2019-20, the IMF has projected India to grow at 7.8%. By comparison, the Chinese economy is expected to slow down to 6.4% in 2019, down from 6.6% in 2018.
 
India is likely to have grown 6.7% in 2017-18, the IMF said. In fact, the IMF projection for 2017-18 is a tad higher than 6.6%, pegged by the second Advance Estimates by the Central Statistics Office. China grew 6.9% in 2017. READ MORE


PSBs' share of NII estimated to rise to three-year high of 39.3% in FY18

After consistently losing market share to private sector banks and non-banking finance companies (NBFCs) for nearly a decade now, top public sector banks (PSBs) are expected turn the corner and report a year-on-year (y-o-y) improvement in their share of overall lending market. PSBs’ combined share of the total net interest income (NII) of the banking sector is estimated to increase by nearly 300 basis points (bps) to a three-year high of 39.3 per cent in FY18 from a record low of 36.4 per cent a year ago, brokerage estimates said. READ MORE

Jagran Prakashan rebounds from 52-week low on share buyback plan

Shares of Jagran Prakashan, publishers of ‘Dainik Jagran’ newspaper, have opened 5% higher at Rs 164 per share on the BSE on Wednesday after the company announced a share buyback plan. The stock closed at a 52-week low of Rs 156 on Tuesday. READ MORE
 

Craftsman, backed by Standard Chartered PE, IFC, plans IPO

Standard Chartered PE and IFC-backed precision automobile and industrial components maker Craftsman Automation Pvt (Craftsman) is planning to go in for an initial public offering (IPO). Ahead of listing, the company is raising around $30 million (around Rs 2 billion) to set up satellite factories and on expansions in various parts of the country. IFC will invest up to $30.7 million as a loan to part finance the project. It would provide long-term debt funding with sufficient grace period, to finance the company's expansion, the World Bank’s investment arm said. READ MORE

Market Check

 
S&P BSE Sensex 34,371.81 -0.07%
 
Nifty 50 10,544.35 -0.04%
 
S&P BSE 200 4,637.73 -0.01%
 
Nifty 500 9,330.40 0.00%
 
S&P BSE Mid-Cap 16,793.43 0.08%
 
S&P BSE Small-Cap 18,147.55 0.09%

INTERVIEW OF THE DAY We have been deploying money at every correction, says Jyoti Vaswani

The sharp drop in the market from the 2018 highs provided an opportunity to buy good quality stocks at reasonable valuations, says Jyoti Vaswani, chief investment officer, Future Generali India Life Insurance. In an interview to Samie Modak, Vaswani says 2018 will be a stock-pickers’ market and one should buy high-quality stocks with earnings visibility. READ MORE

Jyoti Vaswani

FMCG stocks gain on monsoon hopes

COMPANY LATEST PREV CLOSE GAIN() GAIN(%)
UNITED BREWERIES 1099.40 1084.25 15.15 1.40
DABUR INDIA 347.55 343.75 3.80 1.11
GODREJ INDS. 583.00 577.60 5.40 0.93
EMAMI 1148.50 1138.55 9.95 0.87
UNITED SPIRITS 3512.00 3487.80 24.20 0.69

Sectoral trend


Top Sensex gainers and losers

Markets at Open

At 9:16 am, the S&P BSE Sensex was trading at 34,444, up 49 points while the broader Nifty50 index was ruling at 10,565, up 16 points
Akshaya Tritiya 2018: Offers raining on gold, diamond; all you need to know

All leading online portals – Flipkart, Amazon, Snapdeal, etc – are enticing consumers with some heavy discounts on gold, platinum and diamond jewellery and giving an opportunity for shopaholics to shop to their heart's content. Moreover, leading jewellers have lined up attractive offers for buyers READ MORE


Domestic factors, rather than US watchlist inclusion, concern for rupee

The inclusion of India on the monitoring list of US Treasury is not something to worry much about, and does not mean the domestic currency will come under pressure on that count alone, say currency dealers. Even as the Reserve Bank of India (RBI) intervenes in the currency market sporadically, it is not to target any exchange rate, but to iron out volatility READ MORE
Markets at Pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 34,499.88 +104.82 +0.30
 
S&P BSE SENSEX 50 11,072.03 +32.88 +0.30
 
S&P BSE SENSEX Next 50 34,441.68 +38.93 +0.11
 
S&P BSE 100 10,986.63 +29.45 +0.27
 
S&P BSE Bharat 22 Index 3,584.92 +7.04 +0.20

Nifty Outlook (Image source: Geojit Financial Services)



Capricorn Food Products gets Sebi's go ahead to launch Rs 1.71-bn IPO

Capricorn Food Products India Ltd, an integrated food processing company, has received markets regulator Sebi's go ahead to float an initial public offering. The company had filed IPO papers with Securities and Exchange Board of India (Sebi) in February and obtained its "observations" on April 12, latest update with the regulator showed. READ MORE

Nifty Outlook and top trading ideas by HDFC Securities

Nifty rose for the 9th straight session, to close at 10,548. From the bottom of 9,951, Nifty has risen more than 6% in the span of 15 sessions. By touching 10,560, Nifty has completed the 50% retracement of the entire fall seen from 11,171 to 9,951. Above 10,560, we can expect Nifty to extend the gains towards 10,705, which happened to be 61.8% retracement. Nifty has been sustaining above its 50 DMA, and same is likely to provide support at 10380 odd levels. READ MORE
Economy News 
 
·         India's solar capacity addition likely to register 40% fall in FY19: ICRA
 
·         RBI, Finance Ministry need to coordinate closely for faster progress: Niti Aayog
 
·         India's economic growth to accelerate to 7.3% in 2018: World Bank
 
·         India likely to receive normal monsoon rains in 2018: IMD

(Source: IIFL)
Corporate News 
 
·         Lupin received tentative U.S. FDA approval for generic AndroGel
 
·         Indian Hume Pipe Company Ltd received order of Rs. 108.19 crore
 
·         Shalby signs memorandum of understanding with Sen Sok International University Hospital, Cambodia
 
·         Ducon received final NCLT order approving ongoing merger process
 
·         Jayaswal Neco Industries said Supreme Court directed parties involved in debt restructuring of company to maintain status quo
 
·         AstraZeneca to invest $90 million over the next five years in India
 
(Source: IIFL)
MUST READ Will Reliance Industries' quarterly profit scale past Rs 100 billion?

Textiles to telecom conglomerate, Reliance Industries (RIL) is expected to post its best-ever quarterly consolidated net profit, with the figure expected to be close to Rs 100 billion mark. The strong quarterly expectations are on the back of its petrochemicals segment performance. In addition, retail and telecom are likely to help the company’s March 2018 quarter (Q4) performance. CLICK HERE FOR MORE

Reliance Industries Chairman Mukesh Ambani with wife Nita Ambani and children Anant Ambani, Isha Ambani and Akash Ambani arrives for the 40th annual general meeting (AGM) of the company in Mumbai.

Top trading ideas from Prabhudas Lilladher: Buy BF Utilities, NCC

BUY BF UTILITIES
CMP: Rs 420.70
TARGET: Rs 465
STOP LOSS: Rs 395
 
The stock has moved above the consolidation range of 395 and 413 levels and currently with a positive bullish candle pattern in the daily chart has signified strength to carry on the positive momentum still further upside and can scale up to 465 levels. The RSI has turned positive with a trend reversal to signal a buy and with increasing volume participation witnessed, we recommend a buy in this stock for an upside target of 465 keeping a stop loss of 395. READ MORE

Nifty outlook by Prabhudas Lilladher

Nifty once again maintained the positive bias despite some hiccups midway to recover strongly now to near the 10,600 mark. Technically, once again as said earlier, Nifty may find a resistance at 10,560 levels and if breached, the next hurdle would be around 10,630 and both these levels would be crucial in deciding the further movement on either side. However, the support for the day is seen at 10,490 while the resistance would be at 10,600 levels.

 
MARKET COMMENT

Valuations continue to be above-average on most parameters such as trailing P/E, forward P/E (17.5x), Market cap- to-GDP (89%) and bond–earnings yield spread 1.72%). However, on a PEG ratio basis it is trading at long term average of 1.4x (post 2014 avg: 1.7x), which is a result of improving growth in FY18 and its continuation in FY19. We continue to believe that Indian equities will be in a consolidation mode in the near term and an upmove is more likely once earnings revival gains momentum in FY19

(Source: ICICI Securities)
ICICI Securities on Amber India

Amber Enterprises India (Amber) is a leading Room AC (RAC) manufacturer with 19% overall market share and 55% share among OEM/ODM players as of FY17. The company is well placed to benefit from the strong demand in the AC market in India which is expected to clock 13%/16% CAGR by volume/value, while Amber is expected to outperform the same with strong traction in the outsourcing market.

Higher ODM share of 85%, rich clientele and focused growth strategy should enable Amber to clock 25% revenue CAGR between FY17-FY20E with a healthy RoCE of ~18-19%. Recommend ADD with a target price of Rs1,180 based on 25x FY20E earnings
Markets on Tuesday

 
S&P BSE Sensex 34,395.06 0.26%
 
Nifty 50 10,548.70 0.19%
 
S&P BSE 200 4,638.37 0.23%
 
Nifty 500 9,330.30 0.20%
 
S&P BSE Mid-Cap 16,780.41 0.28%
 
S&P BSE Small-Cap 18,131.99 0.28%

Edelweiss on DCB Bank

DCB Bank’s (DCB) Q4FY18 PAT of Rs 642mn (up 21% YoY) surpassed our estimate marginally on higher other income. Key highlights: a) loan growth jumped 28.6% YoY, but lower NIMs kept NII growth below trend at ~20% (25-30% run rate over previous quarters); b) asset quality was broadly steady with slippages at 1.8% (INR814mn) leading to GNPLs of 1.79% (1.89% in Q3FY18); and c) cost-income ratio continued to be high (at ~59%, albeit improving).

As DCB is at the end of its branch expansion exercise, we anticipate operating leverage benefits to start flowing. Despite factoring improving revenue momentum, we expect RoE to be sub-par (at 12-13% even by FY20) due to high cost ratios, entailing limited upside from current level. Maintain ‘HOLD’ with target price of Rs 207
SGX Nifty

The SGX Nifty was at 10,591, up 0.34 per cent from the previous close.
Asian Markets

Asian shares crept ahead on Wednesday after Wall Street took heart from upbeat corporate earnings, though nagging concerns about trade barriers and the global growth outlook kept currencies and bonds subdued.

MSCI's broadest index of Asia-Pacific shares outside Japan bounced 0.5 per cent, though that follows four straight sessions of losses. Japan's Nikkei climbed 1.2 per cent, with investors waiting for any developments on trade as Japanese Prime Minister Shinzo Abe meets President Donald Trump at his Mar-a-Lago resort.
MARKET COMMENT Sameet Chavan, Chief Analyst - Technical and Derivatives, Angel Broking

It was a day of consolidation for our market as we saw a flat opening followed by some correction and then a gradual recovery throughout the second half to reclaim the 10550 mark. If we look at the index, it’s clearly not going anywhere. The real action was seen in individual stocks, which kept lot of traders engaged during the course of action.
 
As far as index view is concerned, we would continue with our recent stance and expect the Nifty to gradually march towards its sturdy wall of 10580 – 10640. We reiterate that it would be an opportunity for short term traders to liquidate longs and remain light on positions. One should expect some consolidation for next couple of days before market giving any kind of directional move. Hence, intraday traders are advised to keep focusing on individual stocks and should rather adopt a proper exit strategy. For the coming session, the support now would be seen at 10500 – 10450 levels
Wall Street

US stock indexes rallied on Tuesday on broad-based gains while Netflix and UnitedHealth earnings impressed investors and boosted optimism about the US corporate reporting season.
 
The Dow Jones Industrial Average rose 213.59 points (0.87 per cent) to 24,786.63, the S&P 500 gained 28.55 points (1.07 per cent) to 2,706.39 and the Nasdaq Composite added 124.81 points (1.74 per cent) to 7,281.10.
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