MARKET WRAP: Sensex ends 261 pts up, Nifty at 10,772; Banks, RIL rally

Markets ended higher on Wednesday despite mixed cues from their Asian peers amid ongoing trade war tensions between the US-China.

The S&P BSE Sensex ended at 35,547, up 261 points while the broader Nifty50 index settled at 10,772, up 62 points.

Financials led the gains on the indexes, with HDFC Bank and HDFC rising for a second straight session. Oil-to-telecom conglomerate Reliance Industries Ltd (RIL) and Vedanta Ltd, the local unit of diversified mining group Vedanta Resources Plc, were the top percentage gainers on the BSE and NSE.

MINUTES OF THE MEETING

Investors were also waiting for the minutes of RBI's Monetary Policy Committee meeting, which is due after market hours. The RBI raised interest rates by a quarter percentage point at its last meeting, citing rising inflation risks. The central bank said on Tuesday it would buy five government bonds worth up to Rs 100 billion under its open market purchase on Thursday.

GLOBAL MARKETS

Stocks in Asia rebounded from recent losses on Wednesday as investors sought bargains, a day after the specter of a US-China trade war rattled global markets, but significant uncertainty around the trade outlook is capping gains.

Japan's Nikkei was 0.1 per cent higher after earlier falling into negative territory. South Korea's KOSPI rose 1 per cent. In China, the Shanghai Composite Index was down 0.3 per cent in early trade, a day after falling 3.8 per cent. China's blue-chip CSI300 index was 0.2 per cent lower after briefly flirting with gains, and the Shenzhen Composite Index was up 0.1 per cent.

BUSINESS SENTIMENT SURVEY

Business confidence among Asian companies slipped for the first time in three quarters, on mounting worries that US President Donald Trump's protectionist policies would trigger tit-for-tat reprisals and undermine the global trading system. 

The Thomson Reuters/INSEAD Asian Business Sentiment Index, representing a six-month outlook from 61 firms, fell to 74 in the second quarter from a seven-year high of 79 in the prior three months. The survey was conducted over June 1-15. While a reading above 50 indicates a positive outlook, this is the first time the number has dropped since September 2017

(with Reuters inputs)

3:44 PM IST RIL rose 2.32% on the NSE. Stock quote:

3:40 PM IST Nifty Bank index ended 1.11% higher. Top gainers: COMPANY LATEST PREV CLOSE GAIN() GAIN(%) INDUSIND BANK 1974.00 1931.50 42.50 2.20 IDFC BANK 42.05 41.15 0.90 2.19 KOTAK MAH. BANK 1326.00 1303.25 22.75 1.75 HDFC BANK 2056.00 2023.50 32.50 1.61 YES BANK 335.50 330.90 4.60 1.39

3:37 PM IST Nifty sectoral gainers and losers of the day

3:34 PM IST BSE Sensex: RIL, IndusInd Bank among top gainers of the day, Coal India top loser

3:32 PM IST Market at close   The S&P BSE Sensex ended at 35,547, up 261 points while the broader Nifty50 index settled at 10,772, up 62 points.

3:17 PM IST Wheels India rallies 30% in two days as company mulls bonus issue plan Shares of Wheels India hit a new high of Rs 2,690 per share, rising 11% from its previous close. The stock has surged 30% in past two trading sessions after the company announced that its board will consider a bonus issue proposal in their forthcoming board meeting on Friday, June 22, 2018. READ MORE

2:59 PM IST Infra, realty firms face refinancing test of Rs 3-4 trillion: Ind-Ra A number of companies in infrastructure and real estate sectors run the highest risk of not getting refinancing on their working capital and other loans, according to India Ratings and Research (Ind-Ra).   These companies are lower in the investment grade ratings, whereas their debt on books is also relatively high. Entities rated ‘BBB’ and below historically have faced challenges in raising funds. READ MORE

2:44 PM IST Fuel prices to fall? Tough OPEC talks likely in Vienna on hiking oil output OPEC ministers arrived in Vienna on Wednesday for crunch talks on whether to reverse a landmark pact curbing oil output, with Iran pushing back against Saudi and Russian calls to ramp up production again.    The upcoming June 22-23 meetings of OPEC and non-OPEC energy ministers are set to be the most contentious in a while, with several countries bristling at the thought of reversing a deal that has been in place for 18 months and helped lift oil prices to multi-year highs. READ MORE

2:27 PM IST Mahindra Lifespace, Mahindra Logistics, Mahindra CIE hit 52-week high Shares of Mahindra Group were in focus with three companies - Mahindra Lifespace Developers, Mahindra Logistics, Mahindra CIE Automotive hit their respective 52-week highs on the BSE in intra-day trade on Wednesday. READ MORE

2:14 PM IST FedEx orders Boeing freighters for $6.6 billion FedEx Express, a unit of package delivery company FedEx Corp , has ordered 24 medium and large freighters from Boeing Co , the world's biggest planemaker said on Tuesday, as e-commerce demand boosts air freight business. READ MORE  

1:55 PM IST Morgan Stanley on Asian markets We make further significant cuts to our index targets as macro pressure points build materially. We see downside from here for all our coverage markets near term with the Hang Seng particularly at risk.   Our new base case Target Prices imply 3% to 8% downside from current levels and that from the late Jan peaks, EM, HSCEI and CSI 300 should all enter bear market territory (drawdown > 20%) while Hang Seng, Topix, APxJ and MSCI China come close. We continue to favour MSCI China over MSCI EM, stay neutral EM versus Japan, are now also neutral CSI 300 versus MSCI China (previously preferred CSI 300) and neutral MSCI EM versus MSCI APxJ (previously preferred EM).

1:43 PM IST MARKET CHECK Index Current Pt. Change % Change   S&P BSE SENSEX 35,495.76 +209.02 +0.59   S&P BSE SENSEX 50 11,275.02 +55.18 +0.49   S&P BSE SENSEX Next 50 32,562.73 +23.39 +0.07   S&P BSE 100 11,061.88 +47.24 +0.43   S&P BSE Bharat 22 Index 3,425.33 -19.83 -0.58

LIVE UPDATES

RIL rose 2.32% on the NSE. Stock quote:


Nifty Bank index ended 1.11% higher. Top gainers:

COMPANY LATEST PREV CLOSE GAIN() GAIN(%)
INDUSIND BANK 1974.00 1931.50 42.50 2.20
IDFC BANK 42.05 41.15 0.90 2.19
KOTAK MAH. BANK 1326.00 1303.25 22.75 1.75
HDFC BANK 2056.00 2023.50 32.50 1.61
YES BANK 335.50 330.90 4.60 1.39

Nifty sectoral gainers and losers of the day


BSE Sensex: RIL, IndusInd Bank among top gainers of the day, Coal India top loser


Market at close
 
The S&P BSE Sensex ended at 35,547, up 261 points while the broader Nifty50 index settled at 10,772, up 62 points.
Wheels India rallies 30% in two days as company mulls bonus issue plan

Shares of Wheels India hit a new high of Rs 2,690 per share, rising 11% from its previous close. The stock has surged 30% in past two trading sessions after the company announced that its board will consider a bonus issue proposal in their forthcoming board meeting on Friday, June 22, 2018. READ MORE

Infra, realty firms face refinancing test of Rs 3-4 trillion: Ind-Ra

A number of companies in infrastructure and real estate sectors run the highest risk of not getting refinancing on their working capital and other loans, according to India Ratings and Research (Ind-Ra).
 
These companies are lower in the investment grade ratings, whereas their debt on books is also relatively high. Entities rated ‘BBB’ and below historically have faced challenges in raising funds. READ MORE

Fuel prices to fall? Tough OPEC talks likely in Vienna on hiking oil output

OPEC ministers arrived in Vienna on Wednesday for crunch talks on whether to reverse a landmark pact curbing oil output, with Iran pushing back against Saudi and Russian calls to ramp up production again. 
 
The upcoming June 22-23 meetings of OPEC and non-OPEC energy ministers are set to be the most contentious in a while, with several countries bristling at the thought of reversing a deal that has been in place for 18 months and helped lift oil prices to multi-year highs. READ MORE

Mahindra Lifespace, Mahindra Logistics, Mahindra CIE hit 52-week high

Shares of Mahindra Group were in focus with three companies - Mahindra Lifespace Developers, Mahindra Logistics, Mahindra CIE Automotive hit their respective 52-week highs on the BSE in intra-day trade on Wednesday. READ MORE

FedEx orders Boeing freighters for $6.6 billion

FedEx Express, a unit of package delivery company FedEx Corp , has ordered 24 medium and large freighters from Boeing Co , the world's biggest planemaker said on Tuesday, as e-commerce demand boosts air freight business. READ MORE
 
Morgan Stanley on Asian markets

We make further significant cuts to our index targets as macro pressure points build materially. We see downside from here for all our coverage markets near term with the Hang Seng particularly at risk.
 
Our new base case Target Prices imply 3% to 8% downside from current levels and that from the late Jan peaks, EM, HSCEI and CSI 300 should all enter bear market territory (drawdown > 20%) while Hang Seng, Topix, APxJ and MSCI China come close. We continue to favour MSCI China over MSCI EM, stay neutral EM versus Japan, are now also neutral CSI 300 versus MSCI China (previously preferred CSI 300) and neutral MSCI EM versus MSCI APxJ (previously preferred EM).
MARKET CHECK

Index Current Pt. Change % Change
 
S&P BSE SENSEX 35,495.76 +209.02 +0.59
 
S&P BSE SENSEX 50 11,275.02 +55.18 +0.49
 
S&P BSE SENSEX Next 50 32,562.73 +23.39 +0.07
 
S&P BSE 100 11,061.88 +47.24 +0.43
 
S&P BSE Bharat 22 Index 3,425.33 -19.83 -0.58

STOCK VIEW Bombay Burmah Trading Corp (BBTC)

Assuming 49% discount (which is at par to the industry average of around 49%), to the market value of investments it holds in Britannia and Bombay Dyeing, we arrive at a revised target price of around Rs.2,700 in the next 2-3 years for BBTC. 
 
Risk to View: Only possible risk to our view is if there is any possible governance issue in terms of divestment of holdings in Britannia in favour of any promoters or other Group entities. However, considering the track record of promoters and also the India’s regulatory environment, we firmly believe that such risk is too low.

(Source: Equinomics Research)
GLOBAL MARKETS Asian stocks pick up steam as hopes of policy support lift China

Asian stock markets picked up steam in afternoon trade on Wednesday after a wobbly morning session, highlighting the lingering anxiety and uncertainty surrounding a heated trade dispute between China and the United States. S&P 500 futures turned higher, rising 0.3 percent and pointing to possible gains on Wall Street after major U.S. indexes closed lower Tuesday READ MORE HERE
Centrum on Exide

We initiate coverage on Exide Industries (EXIDE) with BUY rating and target price of Rs 322. Our exhaustive channel check with 125+ dealers pan India across the company’s three major brands (Exide, SF Sonic and Dynex) indicates the management’s significant efforts to address ground level issues in the replacement market (which is critical for overall demand and remains the major revenue and profitability driver).

The company’s efforts have translated into positive material difference and a pick-up in momentum across the brands. Further, the meaningful transition expected in commercial vehicle segment towards organized players post GST implementation will prove beneficial for EXIDE
COMMODITIES As Opec braces for Vienna talks this week, India hopes for fair oil pricing

India, the world’s third-largest oil consumer, expects a “responsible” approach from its suppliers as speculation mounts over whether OPEC and its allies will reach a deal to boost output at a meeting in Vienna this week.
 
India welcomes a proposal made by top producers Saudi Arabia and Russia to gradually ease the group’s supply curbs after prices rose to hit $80 a barrel last month, the South Asian nation’s oil minister, Dharmendra Pradhan, said in an interview at the Austrian capital. The Organization of the Petroleum Exporting Countries is heading into a contentious meeting on Friday, with Iran promising to block any decision to increase output READ MORE


Top Sensex gainers (Image source: BSE)



Emami stock: Margin pressure could persist, given high input costs

Emami is among the few consumer companies to be trading close to its 52-week low, at a time when investors have been lapping up shares in the segment. Concern over volume growth and margins are keeping the Street sceptical about the company's performance in the coming quarters.
 
After a muted volume growth in the March 2018 quarter (around 9 per cent despite last year's low base, when volumes fell by 1.5 per cent), some analysts expect a revival in the rural economy to help improve Emami's volume performance. READ MORE

Airlines stocks trade weak as air passenger traffic growth slows in May

Shares of all three listed airlines companies InterGlobe Aviation, SpiceJet and Jet Airways were trading lower by up to 4% on the BSE after the air passenger traffic growth slows in the month of May.
 
Domestic air passenger traffic grew 16.53% to 11.86 million in May this year over the same period a year ago, according to data released by the Directorate General of Civil Aviation (DGCA) on Tuesday. The growth rate was lowest since September 2017, when airlines in India carried 9.58 million passengers, up 16.34% from last September. READ MORE

GLOBAL MARKETS

INDEX DATE LATEST PREV CLOSE CHG(PTS) CHG(%)
SHANGHAI COMPOSITE 19-06-2018 2907.82 3021.90 -114.08 -3.78
HANG SENG 19-06-2018 29468.15 30309.49 -841.34 -2.78
SET 19-06-2018 1639.54 1679.68 -40.14 -2.39
NIKKEI 225 19-06-2018 22278.48 22680.33 -401.85 -1.77
TAIWAN WEIGHTED 19-06-2018 10904.19 11087.47 -183.28 -1.65

Click here for more indices

What are the mistakes investors need to avoid in US-China trade war

Investors may be mispricing the trade war by dumping Chinese shares more aggressively than those in Taiwan, Malaysia and South Korea, according to Bloomberg Economics’ Fielding Chen and Tom Orlik.
 
China’s benchmark Shanghai Composite Index slumped 3.8 per cent Tuesday, the biggest decline in Asia, even though many of its neighbours are more exposed to trade skirmishes, the economists wrote in a June 20 note. The index was down a further 1 per cent Wednesday CLICK HERE FOR MORE
RITES IPO opens for subscription today. Should you invest?

In terms of valuation, pre-issue price-to-earnings (PE) works out to 12x of annualised FY18 earnings per share (EPS) of Rs 17 (at the upper end of the issue price band), which is reasonably priced considering: (a) 3.5x of order book with execution capability and experienced management, (b) maintaining the RoE level in the range of 17- 18%, (c) diversified client base and (d) increasing opportunity of revenue from Railways due to new investment in electrification and infrastructure READ MORE
SECTOR WATCH Cement

Sector reported Q4FY18 earnings above our expectation. Beat in earnings was led by lower than expected costs. Sales volume for our coverage universe (65% share in aggregate volumes of the listed cos) grew 15.8% YoY (on a base of +3.7%), ahead of 13.6% growth (on a base of +7%) posted by the sector. Led by increased Govt spending on infrastructure development and affordable housing, demand would grow at 7-8% in FY19e.

However, cement prices would remain muted due to depressed demand from IHB and real estate sector, intense competition and continuous capacity addition. Given the weak outlook on prices and hardening energy prices, we continue to maintain Underweight stance on the sector. However, we like Heidelberg cement (HIEM) on the back of its strong outlook on central region and attractive valuations

(Source: Prabhudas Lilladher)
28 companies announce buyback plans aggregating Rs 213 billion

The first six months of calendar year 2018 (CY18) has seen 28 companies announce buyback plans aggregating Rs 213 billion with Tata Consultancy Services (TCS), Kaveri Seed Company and Jagran Prakashan planning a buyback of their shares for the second consecutive year.
 
Besides these three, 11 companies – Aarti Drugs, Balrampur Chini Mills, Bharat Electronics, eClerx Services, Indiabulls Real Estate, KPR Mill and MOIL – have approved share buyback proposal in two out of the last three years. READ MORE

Markets at Noon

 
S&P BSE Sensex 35,476.48 0.54%
 
Nifty 50 10,755.95 0.42%
 
S&P BSE 200 4,648.97 0.36%
 
Nifty 500 9,263.60 0.32%
 
S&P BSE Mid-Cap 15,839.68 0.15%
 
S&P BSE Small-Cap 16,658.70 0.27%

Emerging Asia hit by biggest foreign investor exodus since 2008

A falling tide lowers all boats, it seems. Amid an exodus from emerging markets, investors are pulling out of even Asian economies with solid prospects for growth and debt financing.
 
Overseas funds are pulling out of six major Asian emerging equity markets at a pace unseen since the global financial crisis of 2008 — withdrawing $19 billion from India, Indonesia, the Philippines, South Korea, Taiwan and Thailand so far this year READ MORE

Sales growth to double Jubilant FoodWorks, Westlife Development margins

Despite their better performance over the last year, India’s largest, listed quick service restaurant (QSR) stocks — Jubilant FoodWorks (Jubilant) and Westlife Development (Westlife) — still have more legs to run. While Jubilant (which operates the Domino’s franchise) has tripled in value, Westlife (which runs the McDonalds stores) has added 55 per cent to its shareholder wealth. READ MORE
 

Sebi bans Asoka Life Science, directors from securities market for 4 years

Sebi on Tuesday banned Kolkata-based Asoka Life Science and its four former and present directors from the securities market for at least four years and directed them to refund the money the company had collected without complying with public issue norms.
 
According to a Sebi order, Asoka had offered redeemable preference shares to 6,842 investors during the financial years 2007-08 to 2011-12 and raised approximately Rs 62.2 million. READ MORE

Index Current Pt. Change % Change
 
S&P BSE SENSEX 35,473.61 +186.87 +0.53
 
S&P BSE SENSEX 50 11,270.27 +50.43 +0.45
 
S&P BSE SENSEX Next 50 32,629.80 +90.46 +0.28
 
S&P BSE 100 11,061.34 +46.70 +0.42
 
S&P BSE Bharat 22 Index 3,431.35 -13.81 -0.40

Phillip Capital on Voltas

Even as there are no changes in the long-term demand drivers for AC sales, in the near term (1QFY19), the AC industry and Voltas would both be negatively affected by subdued demand due to erratic weather conditions. Voltas’ MEP business should be a beneficiary of building and metro capex in the domestic market and infrastructure capex in the Middle East as oil prices rebound. However, current valuations at 24x FY20 PE are rich for 13% earnings CAGR over FY18-20.
 
We maintain our neutral rating with an SOTP-based target price of Rs 510 – we ascribe a 30x PE for its UCP segment, valuing it at Rs 370/share, 15x PE for its MEP/EPS segments, valuing them at Rs 89/39 per share, and we add another Rs 10/share for unallocated income
MARKET CHECK Top gainers

COMPANY PRICE() CHG() CHG(%) VOLUME
VAKRANGEE 47.65 2.25 4.96 2313388
ABBOTT INDIA 7200.00 286.25 4.14 747
GREAVES COTTON 134.95 5.35 4.13 41938
MAHINDRA LIFE. 666.85 24.45 3.81 46192
REL. COMM. 15.15 0.55 3.77 3505607
» More on Top Gainers
Edelweiss on Indiabulls Housing Finance

We hosted an “Investors Day” with top management of Indiabulls Housing Finance (IHFL) to get insight into the company’s business dynamics and strategic plans. The interaction with management reinforced our conviction on the strong credit framework and risk management practices at IHFL.

Moreover, the thrust on digitisation and productivity improvement coupled with emerging opportunities indicates that IHFL is making strides towards its FY20 targets (loan CAGR of >25%, cost/income <10%, and credit cost of <50bps). Given rising demand for housing finance and the company’s stringent risk mitigants and strong track record, execution risks are minimal in our view. Maintain ‘BUY’
Jefferies on SBI Life

SBI Life stands on a strong foothold for superior to industry growth, driven by a geographically diverse retail-dominated business mix and exclusive access to SBI's >22k branches. Its best-in-class cost ratios are driven by the lower costs of SBIN-sourced business (~10%, v/s >20% for IPRU & HDFCLIFE). Our calculation suggests that a tax-assumption change (similar to what IPRU & HDFCLIFE follow) would boost VNB margins by ~150bp over reported. Buy, price target Rs 804.
Rising interest rates threaten Blackstone's first-of-a-kind IPO in India

About two years after Blackstone Group LP registered India’s first real estate investment trust, the private equity giant is close to taking it public. Rising interest rates threaten to get in the way.
 
Blackstone and local partner Embassy Group plan to file a prospectus for an initial public offering of the REIT as early as next month, a deal that may raise as much as $1 billion, people with knowledge of the matter said. Even so, the listing could be delayed should investors demand a higher-than-expected yield, according to the people, who asked not to be identified as the information is private READ MORE
This stock doubled your money in 2018

Shares of Merck continued their northward movement, hitting new high of Rs 2,666 per share, up 8% on the BSE in early morning trade. Thus far in the calendar year 2018, the stock of the pharmaceutical company has zoomed 107% from Rs 1,289, as compared to 4% rise in the S&P BSE Sensex. READ MORE

Cipla gains 3% post USFDA approval for its generic HIV drug

Shares of Cipla were up 3% at Rs 622 per share on the BSE in early morning trade after the company said that it has received approval from the US Food and Drug Administration (USFDA) to market Efavirenz tablets, used to treat HIV-1 infections in adults. READ MORE

SECTOR WATCH Dairy

Analysing the dairy industry in South India over the period FY02-FY17, we note: 1) milk production in the region has grown at a CAGR of 4.1% compared to India’s milk production CAGR of 4.6%, 2) milk production in Andhra Pradesh has increased at a CAGR of 7.4% and its volume share in the regional market has expanded from 31.7% to 50.3%, 3) per capita availability of milk has grown at a CAGR of just 1% in Karnataka and 2% in Tamil Nadu while it declined at 1.4% CAGR in Kerala, and 4) subsidy culture is reducing investments in some states in the region. We prefer companies focusing on milk and fresh milk based value-added products. Accordingly, we rate Heritage Foods (Heritage) as our top BUY.

(Source: ICICI Securities report)
ICICI Securities on Crompton

From an FY19-FY20 perspective, there are multiple positive levers available to the company. Some of them include the longer term structural benefits of Go to Market (GTM) program which should yield results from FY20, the strong margin outlook of FY19/20 as already achieved in FY18, the business potential from new product categories of air cooler/water heater and overall possibility of demand scenario improvement.

The stock is trading at the 29x FY20E EPS, lowest multiple among consumer electrical diversified plays and as such offers favorable risk reward. Maintain BUY with a target price of Rs260 based on 35x FY20E EPS (unchanged). The FCF yield for Crompton at our target price is 3% based on FY20 estimates.
F&O Strategies
 
MOTHERSUMI JUNE FUT: Buy above 313 placing a stop loss below 304 for an upside target of 330 (spot levels)
 
NMDC JUNE FUT: Sell around 108-109 with a stop loss placed above 113 for a downside target of 102 (spot levels)
 
SHORT STRADDLE STRATEGY IN LUPIN : Sell one lot of LUPIN JUNE 900 CE @ 22-23 & Sell one lot of LUPIN JUNE 900 PE @ 18-19 | Max Profit: 24000 | Max Loss: Unlimited ABOVE UBEP AND BELOW LBEP | LBEP: 860 & UBEP: 940

(Source: Karvy)
Market Check

 
S&P BSE Sensex 35,383.49 0.27%
 
Nifty 50 10,735.75 0.24%
 
S&P BSE 200 4,640.47 0.18%
 
Nifty 500 9,256.80 0.24%
 
S&P BSE Mid-Cap 15,820.12 0.03%
 
S&P BSE Small-Cap 16,656.64 0.26%

Edelweiss on Shoppers Stop

We recently met Mr. Rajiv Suri, new Managing Director and CEO of Shoppers Stop (SSL). SSL’s operating performance has been soft over the past two years, and our interaction with the CEO makes us believe that SSL can turn around in light of the proposed structural changes.

Key takeaways are: 1) sharper focus on private labels via greater investments (e.g. hiring a new team) and adoption of differentiated marketing strategies; 2) plans afoot to integrate SSL operations with Amazon to generate more footfalls; 3) new discount vouchers helping stay ahead of competition; and (iv) scale up of beauty portfolio, wherein SSL already has a pole position. Besides, the company is targeting to be debt-free, which will be an added boost. Maintain ‘BUY
Edelweiss on Tejas Networks

We recently attended Tejas Networks’ (Tejas) analyst day. Key takeaways: 1) strong demand for the company’s products spearheaded by private operators’ sharpening focus on fiberisation & network capacity upgrades and government’s investments in the Bharatnet project; 2) Tejas is gaining good traction in targeted geographies—South East Asia, Africa & MENA and North America; 3) it is developing products to ride the demand from 5G upgrade; and 4) the company is targeting specific applications leveraging its strength in converged products. We believe, Tejas’ business model is well suited to benefit from strong order flow led by burgeoning fiber investments. Maintain ‘BUY’ with target price of Rs 396
Top brokerages continue to dominate: Largest 25 contribute 54% of volumes

Large entities are increasingly dominating the domestic broking scene. The data shows that the top 25 brokers now account for 54 per cent of trading volume, from 41 per cent only five years earlier. The share of the top 10 brokerages rose from 24 per cent in 2013-14 to 32 per cent in 2017-18. READ MORE

Retail NBFCs outdo private banks in profits as lending picks up pace

Non-banking finance companies (NBFCs) have for the first time reported a higher combined net profit than that of private sector banks. With retail lending picking up pace, NBFCs have emerged as the fastest-growing and the most profitable segment for lenders.
 
In the March quarter, retail NBFCs, such as Housing Development Finance Corporation, Indiabulls Housing Finance, Bajaj Finance and Mahindra & Mahindra Financial were more profitable than some of the private sector banks. READ MORE

Nifty sectoral trend


BSE Sensex gainers and losers


Market at open
 
At 9:17 AM, the S&P BSE Sensex was trading at 35,407, up 120 points while the broader Nifty50 was ruling at 10,752, up 41 points.
RITES IPO opens for subscription today. Should you invest?

The initial public offer (IPO) of RITES – a government-owned railway consultancy firm and a Miniratna (Category – I) Schedule ‘A’ Public Sector Enterprise – opens for subscription today. The price band for the issue has been fixed at Rs 180-185 a share (discount of Rs 6 per share for retail shareholders and employees), and the government aims to raise up to Rs 460 crore via this sale. The issue closes on June 22. READ MORE
Markets at pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 35,289.60 +2.86 +0.01
 
S&P BSE SENSEX 50 11,221.74 +1.90 +0.02
 
S&P BSE SENSEX Next 50 32,583.84 +44.50 +0.14
 
S&P BSE 100 11,018.49 +3.85 +0.03
 
S&P BSE Bharat 22 Index 3,448.94 +3.78 +0.11

(Source: BSE)
Today's picks: From UPL to Bharti Infratel, hot stocks to watch today

UPL 
Current price: Rs 674
Target price: Rs 662
 
Keep a stop at Rs 680 and go short. Add to the position between Rs 665 and Rs 668. Book profits at Rs 662.
 
Bharti Infratel
Current price: Rs 288
Target price: Rs 284
 
Keep a stop at Rs 290 and go short. Add to the position between Rs 285 and Rs 286. Book profits at Rs 284. READ MORE

GLOBAL MARKETS General Electric to be removed from Dow Jones Industrial Average

The Dow Jones Industrial Average is losing General Electric Co , the lone original component of the venerable blue-chip index that debuted in 1896. S&P Dow Jones Indices said on Tuesday that the U.S. conglomerate would be pulled from the index before the stock market opens on June 26 and replaced by Walgreens Boots Alliance Inc READ MORE

The logo of General Electric Co. Photo: Reuters

Top stock ideas by Prabhudas Lilladher: Buy Radico Khaitan

BUY RADICO KHAITAN
CMP: Rs 400.40
TARGET: Rs 445
STOP LOSS: Rs 380
 
The stock has witnessed a decent correction from the peak of 495 to bottom out at around 387 levels where it has consolidated in the past 2-3 days and currently indicated a positive candle to signify strength and potential to rise further maintaining a positive bias. There is also indication of the RSI making a trend reversal and we anticipate a upward move in the coming days. With decent volume participation witnessed, we recommend a buy in this stock for an upward target of 445 keeping a stop loss of 380. READ MORE

MUST READ Lapses at many levels of bank led to huge PNB fraud, internal report shows

A $2 billion fraud at India's Punjab National Bank (PNB) may have been orchestrated by a few rogue employees, but it escaped detection because of widespread risk-control and monitoring lapses in many areas of the bank, the bank's own internal probe has found.
 
PNB, India's second-biggest state-controlled lender, has previously alleged that a handful of staff at a single Mumbai branch issued fake bank guarantees over several years to help two jewellery groups - controlled by Indian diamond magnate Nirav Modi and his uncle Mehul Choksi - raise billions of dollars in foreign credit and commit India's biggest-ever bank fraud CLICK HERE FOR MORE
Nifty outlook by HDFC Securities for today

By closing at 10,710, Nifty broke down below the consolidation range 10755-10893, which was holding for previous 6 sessions. Going forward, If Nifty sustains below 10700 support, then it is likely to extend its fall towards 10,640. Any close below 10,640, would be considered bearish trend reversal. The level of 10,830 has now become strong resistance. READ MORE

Stocks in news

·         State Bank of India won’t be able to merge more banks with self
 
·         UPL-led consortium is in exclusive talks to acquire Bill Ackman-backed Platform Specialty Products Corp
 
·         Cipla gets final approval for generic drug Sustiva
 
·         DCM Shriram to buyback 55.55 lakh equity shares at Rs 450 each
 
·         Southern Petrochem signs pact with IOC for gas transportation
 
·         MPS Ltd. invests Rs 44 cr in the rights issue of subsidiary MPS Interactive Systems.
 
·         Wheels India to consider bonus issue on June 22
 
·         Kansai Nerolac to acquire 55% stake in RAK Paints Ltd. Bangladesh for Rs 45.81 cr
 
·         SAIL supplies 60,000 tonne steel for railway project in Manipur


(Source: IIFL report)
MARKET COMMENT Amar Ambani, head of research, IIFL

Investors remain concerned about the escalation in trade tensions as this could have a sizeable impact on global growth. The markets world over now seem to be on recovery mode as cherry-picking is happening in counters, which have seen some beating. US, meanwhile, feels tariffs against China will be ultimately bullish for American business.

US indices came tumbling down and the Dow is in negative zone for the year. Asian markets, though lower, are showing signs of recovery. Indian market is expect to open on a cautious note. The rupee, which fell 39 paise to hit a near one-month low of 68.38 against the US dollar will remain in focus. The Initial Public Offerings (IPO) of Rail India Technical and Economic Services (RITES), and Fine Organics will open for subscription today.
 
MARKET COMMENT Rabobank International on trade war fears

The US had announced $50bn of tariffs on Chinese exports. China has already responded with a matching USD 50bn of tariffs on US exports. However, the US has now raised the ante with a further unspecified $200bn of tariffs on Chinese goods - and the threat of a further $200bn if China responds again in kind.

China can no longer respond directly on trade: it instead needs to think in other dimensions if its wants to pressure the US back - yet all of these also carry significant risks. There is no economic logic in these trade actions: we calculate overall GDP growth can survive a $50bn bilateral trade hit, but the higher trade tensions rise, the worse the potential damage becomes. However, there may be a strategic logic at play here in terms of both upping the ante and in what the struggle is really about
SGX Nifty

The SGX Nifty was at 10,720.50, down 0.06 per cent from the previous close.
Markets on Tuesday

 
S&P BSE Sensex 35,286.74 -0.74%
 
Nifty 50 10,710.45 -0.83%
 
S&P BSE 200 4,632.22 -0.84%
 
Nifty 500 9,234.50 -0.90%
 
S&P BSE Mid-Cap 15,815.74 -0.98%
 
S&P BSE Small-Cap 16,613.73 -1.29%

Asian Markets

Stocks in Asia rebounded from recent losses on Wednesday as investors sought bargains, a day after the specter of a US-China trade war rattled global markets, but significant uncertainty around the trade outlook is capping gains.
 
Japan's Nikkei was 0.1 per cent higher after earlier falling into negative territory. South Korea's KOSPI rose 1 per cent. In China, the Shanghai Composite Index was down 0.3 per cent in early trade, a day after falling 3.8 per cent. China's blue-chip CSI300 index was 0.2 per cent lower after briefly flirting with gains, and the Shenzhen Composite Index was up 0.1 per cent.
Wall Street

US stocks fell on Tuesday as a sharp escalation in the trade dispute between the United States and China rattled markets and put the Dow Jones Industrial Average back in negative territory for the year.
 
The Dow Jones Industrial Average fell 287.26 points, or 1.15 per cent, to 24,700.21, the S&P 500 lost 11.18 points, or 0.40 per cent, to 2,762.57 and the Nasdaq Composite dropped 21.44 points, or 0.28 per cent, to 7,725.59.
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