Indices end nearly 1% higher, Nifty at 10,583; realty, auto stocks surge

The domestic indices ended nearly 1% higher on Monday taking cues from its Asian counterparts.

The S&P BSE Sensex ended at 34,446, up 304 points while the broader Nifty50 index settled at 10,583, up 92 points.

Among sectoral indices, the Nifty Realty index surged over 3% on Monday led by a rise in shares of Oberoi Realty and Prestige Estates Projects and Nifty Auto index ended over 2% higher led by Maruti Suzuki India and Tata Motors.

Later this week, the market participants will look forward to key economic data such as Nikkei Markit Manufacturing Purchasing Managers Index (PMI), Fiscal Deficit and Gross Domestic Product (GDP).

In the global markets, Asian shares made guarded gains on Monday as investors braced for an event-packed week headlined by US inflation data and the first House testimony by the new head of the Federal Reserve.

MSCI’s broadest index of Asia-Pacific shares outside Japan crept up 0.6 per cent, with most bourses in the green.

Japan’s Nikkei led with an increase of 1.3 per cent, while Chinese blue chips added 0.7 per cent.

The gains followed Wall Street, where the Dow ended Friday up by 1.39 per cent, while the S&P 500 gained 1.60 per cent and the Nasdaq 1.77 per cent.

(with Reuters inputs)


Market rundown by Nikhil Kamath, Co-Founder and Head of Trading, Zerodha

"Markets opened the day higher for the session on the back of positive global cues and an upbeat global outlook.The American indices closed higher by over a percent on Friday, and we seemed to follow them to open higher in trade on Monday.
IT and Pharma took a break from having rallied over the past few sessions and were weak in trade today, Auto and banks outperformed and held up for the session."
Second highest sectoral gainer: Nifty Auto

Top sectoral gainer: Nifty Realty

Sectoral Trend

Sensex top losers and gainers

Market at close
The S&P BSE Sensex ended at 34,446, up 304 points while the broader Nifty50 index settled at 10,583, up 92 points.
Realty shares in focus; Nifty Realty index up nearly 4%

Shares of real estate companies were in focus with the Nifty Realty index surging nearly four per cent on the National Stock Exchange (NSE), on back of strong rally in Oberoi Realty and Prestige Estates. READ MORE
Statsguru: India Inc's revenue growth perks up in Q3FY18

The net sales of more than 3,000 companies analysed by Business Standard grew by 10.1% in the third quarter of 2017-18, up from 7.2% in the previous quarter. Excluding those of oil companies, banks, and other financial firms, net sales rose by 9.1% in Q3FY18, up from 6.3% in the previous quarter. CLICK HERE FOR FULL STORY
Tata Elxsi moves higher on pact with Zee's digital platform
Tata Elxsi was up 2.6% to Rs 1,046 on BSE after the company partnered with digital entertainment platform of Zee Entertainment Enterprises for front-end applications. ZEE5, the newly launched digital entertainment destination by Zee Entertainment Enterprises (ZEEL) has partnered with Tata Elxsi for its front-end applications.
UPL rises after subsidiary approves fund raising
UPL gained 2.22% to Rs 715.65 on BSE after the company said that its wholly-owned subsidiary, UPL Corporation approved the proposal to launch an offering of US dollar denominated senior unsecured notes. The announcement was made during market hours today. The notes are proposed to be listed on the Singapore Stock Exchange. 
Sectoral Trend

Bad news for Gitanjali, PNB, OBC: Few scam-related stocks regain lost glory

Nearly a dozen companies that have been named in various scams, frauds or price rigging at the bourses in over two decades have lost over 90 per cent of their market value from their all-time high levels, data show. READ MORE
News Watch KG block production may be delayed due to GST-like policy changes: ONGC

Oil producer ONGC has said it may miss the June 2019 target for starting production from its Krishna Godavari basin block due to new policies like GST and local purchase preference rules, including the one that mandates state-owned firms to source domestic iron and steel for an infrastructure project. READ MORE
MUST READ Address ownership issue: Functioning of PSBs seeks urgent corrective action

The crisis in public sector banks is the result of many factors. The finance minister has rightly stressed the role of auditors, regulators, bank managements themselves, and, of course, businessmen. What is missing in this list is the government itself, which is the primary shareholder in these banks, as well as the authority that appoints and dismisses bank managements. CLICK HERE FOR FULL STORY
Market Check

S&P BSE Sensex 34,420.81 0.82%
Nifty 50 10,582.50 0.87%
S&P BSE 200 4,623.92 0.84%
Nifty 500 9,331.85 0.87%
S&P BSE Mid-Cap 16,678.81 0.71%
S&P BSE Small-Cap 18,158.10 0.90%

From US tax laws to BEAT, Indian firms are preparing for global tax reforms

It is that time of the year when most chief finance officers, along with team members, go on an overdrive to make financial accounts match for the March 31st year-end deadline. Some questions that many CFOs of companies with overseas presence are asking tax experts are: How do we disclose in the impact of the recent changes in the US tax laws? Or will Brexit – the event capturing Britain’s exit from the European Union – have any tax implications on Indian businesses operating out of the UK? Do US MNCs operating out of India need to re-work their tax outgo? CLICK HERE FOR FULL STORY
Vedanta up for a third straight session today
Vedanta is up for a third straight session today. The stock is quoting at Rs 344.25, up 1.88% on the NSE. Meanwhile, Nifty Metal index of which Vedanta is a constituent, has slipped around 1.65% in last one month and is currently quoting at 4028.8, up 1.08% on the day. The volume in the stock stood at 59.35 lakh shares today, compared to the daily average of 116.41 lakh shares in last one month.
Sensex top losers and gainers

Aurobindo Pharma rose for a third straight session today
Aurobindo Pharma rose for a third straight session today. The stock is quoting at Rs 609.5, up 1.26% on the day as on the NSE. 

Meanwhile, Nifty Pharma index of which Aurobindo Pharma Ltd is a constituent, has dropped around 5.61% in last one month and is currently quoting at 9095.4, down 0.14% on the day.
MUST READ CIL has to shape up: Privatising coal mining to create window for investors

The Cabinet Committee on Economic Affairs (CCEA) took a brave decision last week when it cleared private participation in coal mining via an auction methodology. This is a big step forward, given the scandals during the UPA regime when captive coal blocks were allotted to various companies. The CCEA removed restrictions wherein only power and metals companies could bid for blocks. READ MORE
Crude oil hits nearly three-week high as Saudi Arabia to keep output well below cap

Oil prices extended gains to hit their highest level in nearly three weeks on Monday, supported by comments from Saudi Arabia that it would continue to curb exports in line with the OPEC-led effort to cut global supplies.

Prices were supported after Saudi Arabian oil minister Khalid al-Falih on Saturday said the country’s crude production in January-March would be well below output caps, with exports averaging below 7 million barrels per day (bpd).
Saudi Arabia hopes OPEC and its allies will be able to relax production curbs next year and create a permanent framework to stabilise oil markets after the current supply cut deal ends this year, Falih added.

HAL, ICICI Securities among several firms lining up Rs 250-bn public offers

The IPO lane seems to get busier as over two dozen companies have lined up initial share sale plans worth Rs 250 billion in the coming months, largely to fund their expansion projects and working capital requirements.
Hindustan Aeronautics, ICICI Securities, Barbeque-Nation Hospitality and Flemingo Travel Retail are among the names that plan to launch share-sale offers in the coming months. READ MORE
News Watch: Maharashtra sugar mills owe cane farmers Rs 25 bn due to low sales

The crashing of sugar prices in the wholesale market, and lower sales, has resulted in mills owing Rs 25 billion (Rs 2,500 crore) to cane cultivators across Maharashtra, an official from the state cooperation department said. READ MORE
Green shoots? At 6.9%, Q3 likely to see best GDP growth rate in FY18: Poll

India's economy grew at its fastest pace in a year in the October-December quarter as consumers, businesses and the government stepped up spending, a Reauters poll predicted.

Gross domestic product grew 6.9 per cent in the October-December quarter from a year earlier, according to the poll of more than 35 economists, taken over the past week. READ MORE
Market Check

S&P BSE Sensex 34,371.03 0.67%
Nifty 50 10,564.25 0.70%
S&P BSE 200 4,620.93 0.77%
Nifty 500 9,321.10 0.75%
S&P BSE Mid-Cap 16,687.00 0.75%
S&P BSE Small-Cap 18,144.32 0.82%

News Watch: Amid rising NPAs and PNB fraud, PSU banks face credibility crisis

In less than a fortnight, the credibility of public sector banks (PSBs), which commands about 70% share of bank loan market, took a serious hit. And three incidents have contributed to this fracas. READ MORE
Buzzing stock

Jaypee Infratech was down 2.05% to Rs 13.41 on BSE after IndusInd Bank offloaded 1.10 crore shares of the company at Rs 13.65 per share in a bulk deal on the NSE on Friday, 23 February 2018.
Reliance Jio edging past incumbents with partnerships on exclusive content

The battle for subscribers market share between incumbent telecom operators Bharti Airtel, Idea Cellular and Vodafone, and Reliance Jio is increasingly shifting towards content driven offerings. Incumbent operators, who are struggling to stand their ground given pricing pressures and regulatory headwinds, are now faced with a content-driven marketplace where the scales are tilting towards Reliance Jio. READ MORE

IDBI Bank, IndiGo, Persistent Systems hit 52-week highs

IDBI Bank, InterGlobe Aviation (IndiGo), Persistent Systems, Firstsource Solutions and Seamec were among 12 stocks from the S&P BSE 500 and S&P BSE Smallcap index hitting their respective 52-week highs on the BSE in intra-day trade on Monday. READ MORE
Markets at noon

S&P BSE Sensex 34,368.43 0.66%
Nifty 50 10,565.05 0.71%
S&P BSE 200 4,619.85 0.75%
Nifty 500 9,318.05 0.72%
S&P BSE Mid-Cap 16,691.41 0.78%
S&P BSE Small-Cap 18,142.32 0.81%

Strides Shasun in good health after launching drug
Strides Shasun gained 2.18% to Rs 708 on BSE after the company announced that it will launch Ranitidine Tablets USP, 150 mg (OTC) in the US markets.
Sectoral Trend

PNB fraud, global cues spur Rs 100 billion FPI sell-off in February

Foreign investors have pulled out nearly Rs 100 billion ($1.5 billion) from the Indian stock market so far this month, primarily due to Punjab National Bank (PNB) fraud jitters, coupled with global cues.
This is against the total inflow of over Rs 137.8 billion by foreign portfolio investors (FPIs) in January, latest data with the depositories show. READ MORE
New IPO: HG Infra IPO opens today: Should you subscribe? Tips from brokerage firms

HG Infra Engineering is an emerging pure-play engineering, procurement and construction (EPC) company with a primary focus on roads and allied sectors, such as flyovers and bridges. The company started operations in Rajasthan and has gradually expanded presence across Maharashtra, Uttar Pradesh, Haryana, Uttarakhand and Arunachal Pradesh. Currently, Rajasthan and Maharashtra contribute around 96 per cent to the order book. READ MORE
Promoter pledging (Mid-caps)

Among the midcaps, promoters revoked pledge partially in Prime Focus (PRIF), Reliance Communication (RCOM), Future Lifestyle (FLFL) and Jubilant Food (JUBI). Midcaps where incremental promoter pledging was seen were Reliance Power (RPWR) and Reliance Capital (RCAPT). In the F&O universe, 59 companies have reported promoter pledge holdings

(Source: Edelweiss report)
Promoter pledging

Promoter pledging activity was active with 757 companies reporting pledged holdings between Q2FY18 and Q3FY18 as against 740 in previous quarter. This list was extracted out of 4240 companies that disclosed the shareholding during the aforesaid time period. In terms of value, pledged holding stands at around Rs 2.53 trillion in Q3FY18 compared to around Rs 2.50 trillion in Q2FY18. The trend of marginal dip in companies reporting pledge holdings over the last couple of quarters continued in Q3FY18 as well (from the companies above Rs 1 billion market capitalisation, 137 companies saw a reduction in pledge holdings in Q3FY18 as against 120 companies in Q2FY18)

(Source: Edelweiss report)
BSE Sensex: IndusInd Bank, Tata Motors among top gainers, Sun Pharma, Dr. Reddy among top losers

Fears of high derivatives to cash turnover misplaced in Indian market

The Securities and Exchange Board of India (Sebi) last year expressed concern over the high equity derivatives turnover vis-à-vis cash segment in the Indian market. However, a recent report by Asifma, an independent, regional trade association with over 100 member firms, observes that these fears may be misplaced. READ MORE
Market Check

S&P BSE Sensex 34,362.95 0.65%
Nifty 50 10,561.90 0.68%
S&P BSE 200 4,616.66 0.68%
Nifty 500 9,312.35 0.66%
S&P BSE Mid-Cap 16,658.61 0.58%
S&P BSE Small-Cap 18,123.58 0.71%

News Watch: PNB scam fallout: Govt is revisiting plans of a bank-holding company

In the backdrop of the Rs 114-billion fraud at Punjab National Bank (PNB), the government is revisiting plans of a bank-holding company.
Such a company will hold all of the Centre’s shares in state-owned banks and raise capital for them. READ MORE

Simbhaoli Sugars hits record low on report of Rs 970 million loan defaults

Simbhaoli Sugars has tanked 20% to Rs 13.50, also its record low on the BSE in intra-day trade, after media report suggested that the Central Bureau of Investigation (CBI) filed Rs 970 million loan default case against the company. READ MORE

New IPO: Aster DM Healthcare makes weak debut; lists 4% below issue price

Aster DM Healthcare has made a weak debut by listing at Rs 182, a 4.2% discount to its issue price of Rs 190 per share on the BSE. On the National Stock Exchange (NSE), the stock opened at Rs 183. READ MORE
Sterlite Technologies surges 10% post Rs 35 billion advance purchase order

Sterlite Technologies has surged 10% to Rs 379 on the BSE in early morning trade after the company announced that it has been awarded a Rs 35 billion advance purchase order to design, build and manage the Indian Navy’s communications network. READ MORE
Market check at 10am

S&P BSE Sensex 34,325.52 0.54%
Nifty 50 10,548.70 0.55%
S&P BSE 200 4,611.37 0.56%
Nifty 500 9,302.20 0.55%
S&P BSE Mid-Cap 16,637.39 0.45%
S&P BSE Small-Cap 18,105.68 0.61%

Interview of the day: Our FY19-end target for Sensex is around 34,000, says Ambit Capital CEO

At a time when the markets are grappling with rising bond yields, a Rs 114-billion fraud in India's second-largest public sector lender and the possibility of the US Federal Reserve raising interest rates, SAURABH MUKHERJEA, chief executive officer, Ambit Capital tells Puneet Wadhwa that he expects double-digit corporate earnings growth in FY19. CLICK HERE TO READ MORE

Equirus on NESCO

We believe FY19E outlook for NESCO’s exhibition business remains challenging as organizers are witnessing lower footfalls, which is leading to cancelations / postponement of events. Further, NESCO would be losing out on revenues from IT Park-1 due to phase-1 expansion plans of New BEC. Accordingly, we lower our FY18/FY19 sales estimates by 8%/9%, leading to flat yoy growth in FY19E sales. In view of the rich valuations, we assign ADD (from LONG earlier) to the stock.
Equirus Securities on Avanti Feeds Limited (AFL)

AFL currently trades at 22x/18x on our FY19 and FY20 EPS estimates. FY18 has proven to be a great year for AFL so far, both in terms of sales and profitability, which in turn has strengthened its balance sheet further (current cash balance: ~Rs 7bn). We derive our Mar’19 target price of Rs 2,910 based on 28x TTM EPS of Rs 104 (Mar’19 target price of Rs 2,950 earlier) and upgrade the stock to LONG (from ADD earlier) as we remain bullish on AFL’s medium-to-long term prospects.
Oriental Bank of Commerce falls 9% on talks of Rs 3.9 billion scam

Oriental Bank of Commerce (OBC) has slipped 9% to Rs 96.20, also its fresh 52-week low on the BSE, after the media report suggested that the state-owned lender has alleged the firm, Dwarka Das Seth International, for fraudulent loan scam, involving Rs 3.90 billion.
The Central Bureau of Investigation (CBI) has registered a case against a Delhi-based jeweller on a complaint from government-owned OBC, the Business Standard reported. READ MORE

Primary market update

In the primary market, the day ahead will see a new entrant, HG Infra Engineering open its issue for subscription today. The company is looking to raise Rs 462 crore through the IPO and will close on February 28. The issue price has been fixed at Rs 263-270. Healthcare services provider Aster DM Healthcare will also be listing on stock exchanges today
IFGL Refractories - Limited growth prospects; maintain Hold rating
Steel production in India, at 8-10%, would ensure 10-12% growth in refractories. IFGL will grow in line with the industry. In the US, we expect refractories to grow at a modest pace. In Europe, slower capex investment is likely to keep sales growth sluggish. We expect earnings to clock an 8% CAGR over FY17-20. We believe that most of the optimism has already been priced in and upsides are limited. We maintain a Hold rating with a revised target of `281 (18x FY20e EPS). 

(Source: Anand Rathi Research)
In letter to investors, Buffet warns about safe-looking bonds being risky

After a year in which he was largely frustrated on the acquisition front and saw cash pile up at his conglomerate, Berkshire Hathaway Inc., he used his annual letter to shareholders to remark on the “all-time high” cost of buying businesses and how the “ample availability” of cheap debt has fueled unwise deals. Berkshire, Buffett wrote, will still occasionally get opportunities to make large purchases at sensible prices. READ MORE
Warren Buffet

Equinomics on EIL

Given that EIL is attractively placed as a strong early cyclical play, with robust demand outlook & the surging oil & gas capex to drive a much longer and larger capex cycle. Most of these will be driven by domestic OMCs like HPCL-Barmer (Rajasthan), West Coast refinery, IOCL-Paradip petchem expansion, Numaligarh refinery, among others. EIL will continue to benefit from investments in downstream hydrocarbon and fertilizers. The stock at thcae current market price trades at 25.8x its FY2018E EPS of Rs.6.6 and at 23x its FY2019E EPS of Rs.7.4. Considering its cash position and long term growth potential, we assign a PE of 27.7x its FY2019E EPS and recommend a buy with a target price of Rs.205.
Commodity watch (Image source: Motilal Oswal Research)

BSE Smallcap: Monnet Ispat & Energy, Sterlite Technologies among top gainers, Oriental Bank of Commerce top loser

BSE Midcap: SAIL, GMR Infra among top gainers, Vakrangee top loser

Oriental Bank of Commerce stock plunges 8%

Top Sensex gainers and losers

Sectoral Trend

Index watch

Index Current Pt. Change % Change
S&P BSE SENSEX 34,257.63 +115.48 +0.34
S&P BSE SENSEX 50 10,997.33 +49.87 +0.46
S&P BSE SENSEX Next 50 34,224.99 +299.89 +0.88
S&P BSE 100 10,913.17 +56.62 +0.52
S&P BSE Bharat 22 Index 3,618.34 +24.18 +0.67

Markets at Open

At 9:19 am, the S&P BSE Sensex was trading at 34,281, up 139 points while the broader Nifty50 index was ruling at 10,522, up 30 points
News watch Sebi asks HDFC Bank to probe WhatsApp earnings leak

The Securities and Exchange Board of India (Sebi) on Friday directed HDFC Bank to probe the alleged leak of its June 2017 quarterly earnings on WhatsApp. The order comes two months after the market regulator passed a similar advisory for Axis Bank. Both cases involved the leak of price-sensitive information over social media groups. READ MORE
Eight of top ten companies add Rs 586 bn in m-cap; TCS gains the most

Eight of 10 most valued Indian companies together added Rs 586.50 billion in their market valuation last week, with IT major TCS witnessing the maximum gain. From the top-10 list, only Hindustan Unilever (HUL) and Maruti Suzuki India suffered erosion in their market capitalisation (m-cap) for the week ended Friday, while Reliance Industries Ltd (RIL), HDFC Bank, ITC, HDFC, Infosys, ONGC and SBI saw addition. CLICK HERE FOR FULL STORY
Markets at pre-open

Index Current Pt. Change % Change
S&P BSE SENSEX 34,230.03 +87.88 +0.26
S&P BSE SENSEX 50 10,985.35 +37.89 +0.35
S&P BSE SENSEX Next 50 34,051.20 +126.10 +0.37
S&P BSE 100 10,894.57 +38.02 +0.35
S&P BSE Bharat 22 Index 3,612.54 +18.38 +0.51

(Source: BSE)
Hindcon Chemicals IPO opens on Monday, to raise Rs 77 mn to meet expenses

Chemical products manufacturer Hindcon Chemicals on Sunday said its initial public offer (IPO) will open tomorrow to raise up to Rs 77.3 million. The company said it will use the proceeds to meet working capital requirements, general corporate purposes and expenses. READ MORE
MSE gets Sebi nod for electronic book building mechanism for online bidding

Metropolitan Exchange of India (MSE), formerly MCX-SX, said it has received approval from markets regulator Sebi to launch electronic book building mechanism to facilitate online bidding for private placement of debt securities.
The exchange is also expected to roll out products for the equity segment during the first quarter of fiscal 2018-19. READ MORE
Commodity Picks: Barley
Barley is trading at Rs 1,473 per quintal in Jaipur.
Prices are expected to trade lower towards Rs 1,450 per quintal as the new crop arrivals start and as traders liquidate existing stocks in anticipation of new supplies. READ MORE
FPIs pull out $10.6 billion from emerging markets in February so far

Foreign portfolio investors (FPIs) have sold shares of emerging markets (EMs) worth $10.6 billion in February so far, leading to a steep fall in the benchmark indices across these markets. The MSCI EM index has corrected 4.4 per cent this month. This sell-off was triggered by concerns about US equities and rising bond yields in the world's largest economy. READ MORE
Bullish on Tata Motors, bearish on Tata Steel: Angel Broking

Tata Motors - Bullish
Last Close – Rs. 360.20
This has been one of the underperformers over the past 18 months and is now trading around its 52-week low. However, if we look at the weekly chart we can see a strong support zone of multi-year lows along with the ’89-EMA’ on monthly chart. Considering the extreme oversold condition of momentum oscillators in all time frames, we expect a decent bounce back rally in this stock. Hence, we would like to advise a contradictory buy for a target of Rs.378 over the next few days. The stop loss now can be fixed at Rs. 350. READ MORE
Sebi, bourses probe possible foul play in PSB's equity, derivatives trade

Markets regulator Sebi and stock exchanges are looking into possible manipulation in equity and derivatives trade of some public sector banks (PSBs) in the wake of circulation of a fake letter purportedly for misleading the investors. READ MORE
Street signs: Outlook for Bank Nifty, Jubilant Life shares, and more

Despite shedding more than nine per cent in the January series, the outlook for Bank Nifty remains bleak. Downside support for the index has moved to 24,750 with the upside capped at 25,500. There has been a significant build-up of long positions in private sector banks, which are expected to do well, even as public sector banks' woes would continue. With the exception of State Bank of India which has seen some stability, other counters have seen a build-up of short positions, said analysts. In the past five trading sessions, shares of Punjab National Bank, Indian Bank and Union Bank of India have shed 7.5%, 6.7% and 4.1%, respectively. CLICK HERE TO READ MORE
Markets on Friday

S&P BSE Sensex 34,142.15 0.95%
Nifty 50 10,491.05 1.04%
S&P BSE 200 4,585.61 1.17%
Nifty 500 9,251.35 1.23%
S&P BSE Mid-Cap 16,562.03 1.47%
S&P BSE Small-Cap 17,996.22 1.54%

Top trading ideas for the day

CMP: Rs 134.40
TARGET: Rs 146

The stock has made a higher bottom formation pattern in the daily chart taking support at around Rs 130 levels and is poised for an upward move with positive bias.
The RSI has indicated a trend reversal to signal a buy and we anticipate a further rise from here on with strength and potential to give a breakout above the previous peak of Rs 139.50 levels. With consistent volume participation, we recommend a buy in this stock for an upside target of Rs 146 keeping a stop loss of Rs 128. CLICK HERE TO READ MORE
Nifty outlook by Prabhudas Lilladher for the day

Nifty has its daily trend turned up after 5 days while weekly trend continues to be down. The monthly trend would very likely turn down below 10795. The bias hence remains sideways for this week having a range of 10320 & resistance of 10640. Tech sector continues to be in positive along with few Pharma stocks and consumer goods like Britannia.
Wall Street

On the  Wall Street, the Dow ended Friday up by 1.39%, while the S&P 500 gained 1.60% and the Nasdaq 1.77%.
SGX Nifty

The SGX Nifty was trading at 10,550, up 0.43% from the previous close.
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