MARKET WRAP: Indices rebound, Sensex climbs 239 pts, Nifty ends at 11,672

After oscillating between the positive and negative territory for most part of the session, key stock benchmark indices ended over half a per cent higher on Tuesday, thanks to buying in the last hour of the trade.

The S&P BSE Sensex added 238 points or 0.62 per cent to end at 38,939. During the trade, the index hit a high and low of 38,978.99 and 38,598.72, respectively. ICICI Bank, ITC, Axis Bank, HDFC, YES Bank and TCS were the major contributors to the Sensex's gain. 

In the broader market, the S&P BSE MidCap index ended at 15,420.48, up 23 points or 0.15 per cent while the S&P BSE SmallCap index ended 15 points or 0.10 per cent lower at 14,972. 

The NSE's Nifty50 index ended above the 11,650 level at 11,672, up 67 points or 0.58 per cent, with 37 constituents advancing and 13 declining.

Sectorally, all the indices except media counter ended in the green. PSU bank stocks advanced the most, followed by realty and auto stocks. The Nifty media index ended flat with the negative bias at 2,410.75, down just 5 points or 0.21 per cent. 

BUZZING STOCKS

Shares of Merck hit a new high of Rs 3,990, up 5 per cent in the intra-day trade on the BSE. The stock, eventually, settled at Rs 3,952 apiece, up 3.77 per cent. 

Panacea Biotec surged 17 per cent to Rs 213 on the BSE on Tuesday after the pharmaceutical and biotechnology company said that India Resurgence Fund (IndiaRF), a fund promoted by Piramal Enterprises and Bain Capital Credit, has invested Rs 992 crore ($144 million) in the company. Shares ended at Rs 200 apiece on BSE, up 11 per cent.

IT major Infosys hit a new high of Rs 774 during the trade before settling at Rs 760, down nearly a per cent.

Asian Paints ended over 3.50 per cent lower at Rs 1,443.50 apiece after news reports said CLSA has downgraded the stock to 'sell' with the target price of Rs 1,400 from Rs 1,565 earlier.

GLOBAL CUES

Asian shares hit an eight-month high on Tuesday as optimism about Chinese measures to boost economic growth lifted mainland markets, however, worries about U.S. earnings and a crucial Brexit summit this week limited gains.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.3 per cent, hovering near its highest level since August 9 last year. Japan’s Nikkei drifted 0.1 percent higher, while Australian shares traded a shade lower.

3:41 PM IST

3:41 PM IST

3:38 PM IST The S&P BSE Sensex added 238 points or 0.62 per cent to end at 38,939 while the NSE's Nifty50 index ended above the 11,650 level at 11,672, up 67 points or 0.58 per cent.

3:10 PM IST We believe measures taken by Mr Sudhir Singh have yielded positive results. NIIT Tech’s revenue growth would be at the upper end of midcap IT peers. NIIT Tech is growing at 2x the pace of Tier 1 IT vendors. We estimate NIIT Tech’s US dollar revenue growth at 17/15.4 per cent for FY19/FY20E, respectively. LTI/Mindtree and NIIT Tech could be the fastest-growing midcaps in FY19E. Retain BUY.

2:57 PM IST YES Bank shares rose 4 per cent to Rs 270 in intra-day trade on the BSE on Tuesday after the private lender announced fundraising plan by way of issuance of equity shares. READ MORE

2:45 PM IST

2:26 PM IST In our view, while revenue growth prospects for FY20E appear to be positive led by digital transformation, margin prospects assume critical importance in light of major cost headwinds in the form of wage inflation owing to talent shortage. Levers for margin defence are steadily eroding, with utilisation at reasonably high levels, INR tailwind receding and investments in the business likely to remain a constant need to scale-up digital growth. Thus, we would watch the margin picture in FY20E, and believe growth, increasing automation and higher digital pricing owing to high demand are the key levers for margin defence. Return of cash to shareholders is a theme that continues to play out, with TCS, Infosys, Wipro, HCLT, Tech Mahindra, Hexaware, Mindtree and eClerx all resorting to share buy-backs to make better usage of their cash balances. Infosys and Tech Mahindra are our Top Picks in large-cap space, while Hexaware & Sonata Software are our preferred picks in mid-cap space.

2:15 PM IST Technical indicator Relative Strength Index (RSI) helps to measure the momentum of the stock. The price direction is ascertained by tracking its movement. Normally, when the prices go higher, an equal amount of rise can be seen on the indicator. When it does so, the momentum seems favorable to the stock price. READ MORE

2:10 PM IST IBREALEST 108.30 +11.80 +12.23   LINDEINDIA 509.20 +36.90 +7.81   ITI 104.15 +6.25 +6.38   FSL 50.90 +2.35 +4.84   MERCK 3,954.85 +146.50 +3.85

2:01 PM IST Shares of Merck hit a new high of Rs 3,990, up 5 per cent on the BSE in the intra-day trade on Tuesday. The stock has surged 37 per cent in the past six weeks after the company announced a dividend of Rs 440 per share. In comparison, the benchmark S&P BSE Sensex has risen 7.5 per cent during the same period. READ MORE  

1:37 PM IST

LIVE UPDATES

Sectoral gainers and losers on NSE


Top gainers and losers on S&P BSE Sensex


MARKET AT CLOSE

The S&P BSE Sensex added 238 points or 0.62 per cent to end at 38,939 while the NSE's Nifty50 index ended above the 11,650 level at 11,672, up 67 points or 0.58 per cent.

Centrum Broking on NIIT Tech

We believe measures taken by Mr Sudhir Singh have yielded positive results. NIIT Tech’s revenue growth would be at the upper end of midcap IT peers. NIIT Tech is growing at 2x the pace of Tier 1 IT vendors. We estimate NIIT Tech’s US dollar revenue growth at 17/15.4 per cent for FY19/FY20E, respectively. LTI/Mindtree and NIIT Tech could be the fastest-growing midcaps in FY19E. Retain BUY.

YES Bank advances 4% after announcement of fund raising plan

YES Bank shares rose 4 per cent to Rs 270 in intra-day trade on the BSE on Tuesday after the private lender announced fundraising plan by way of issuance of equity shares. READ MORE



Canara Bank gains almost 4%


Q4 preview of IT sector by Reliance Securities

In our view, while revenue growth prospects for FY20E appear to be positive led by digital transformation, margin prospects assume critical importance in light of major cost headwinds in the form of wage inflation owing to talent shortage. Levers for margin defence are steadily eroding, with utilisation at reasonably high levels, INR tailwind receding and investments in the business likely to remain a constant need to scale-up digital growth. Thus, we would watch the margin picture in FY20E, and believe growth, increasing automation and higher digital pricing owing to high demand are the key levers for margin defence. Return of cash to shareholders is a theme that continues to play out, with TCS, Infosys, Wipro, HCLT, Tech Mahindra, Hexaware, Mindtree and eClerx all resorting to share buy-backs to make better usage of their cash balances. Infosys and Tech Mahindra are our Top Picks in large-cap space, while Hexaware & Sonata Software are our preferred picks in mid-cap space.

Chart Check: 41 Nifty F&O stocks indicate negative divergence on RSI

Technical indicator Relative Strength Index (RSI) helps to measure the momentum of the stock. The price direction is ascertained by tracking its movement. Normally, when the prices go higher, an equal amount of rise can be seen on the indicator. When it does so, the momentum seems favorable to the stock price. READ MORE

Market Check: Top gainers on BSE

IBREALEST 108.30 +11.80 +12.23
 
LINDEINDIA 509.20 +36.90 +7.81
 
ITI 104.15 +6.25 +6.38
 
FSL 50.90 +2.35 +4.84
 
MERCK 3,954.85 +146.50 +3.85

Merck climbs 5% to hit a new high; zooms 161% in one year

Shares of Merck hit a new high of Rs 3,990, up 5 per cent on the BSE in the intra-day trade on Tuesday. The stock has surged 37 per cent in the past six weeks after the company announced a dividend of Rs 440 per share. In comparison, the benchmark S&P BSE Sensex has risen 7.5 per cent during the same period. READ MORE

 

Ashok Leyland climbs 2.5%


Asian Paints lower for third straight day; stock down 4% to Rs 1,440

Asian Paints shares were trading lower for the third straight day, down 4 per cent, at Rs 1,440 in intra-day trade on Tuesday due to higher crude oil prices, one of the key raw materials in paint manufacturing. Meanwhile, in a regulatory filing, Asian Paints said that a fire broke out at the company's paint manufacturing facility in Vishakhapatnam, Andhra Pradesh, on Tuesday afternoon. READ MORE

Top losers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
STERLITE TECH. 196.00 -19.95 -9.24 458836
LAK. VILAS BANK 92.50 -4.85 -4.98 1484200
REL. COMM. 2.96 -0.15 -4.82 3521966
RELIANCE POWER 9.77 -0.44 -4.31 5321405
RAIN INDUSTRIES 99.25 -4.40 -4.25 70280
» More on Top Losers

Motilal Oswal Financial Services on Ambuja Cement

We expect Ambuja to witness muted volumes over CY18-20 with a CAGR of 5- 6% due to capacity constraints. The grinding unit of 1.8mt at Marwar Mundwa will be fully operational only in CY21. We expect EBITDA/t to improve at CAGR of 5% over CY18-20; this is after building in an improvement in industry pricing
and cost measures undertaken by the company. We value ACEM at 10x March’20 EV/EBITDA and its stake in ACC at 20% discount to market value (holding company discount) to arrive at a target price of Rs 206. Maintain Neutral. 

New expense norms reduce costs of large mutual funds schemes

A number of large schemes have significantly reduced their total expense ratios (TERs) after April 1, in keeping with the regulatory diktat of slab-wise reduction in scheme expenses — a move that is set to benefit investors. Of the 25 largest schemes taken into consideration by way of assets they manage, half have seen a reduction in TER of greater than 20 basis points (bps), the data collated from Value Research shows. READ MORE

ITI Limited gains 6.4%


Indiabulls Real Estate zooms 12%


Here's how you can trade TCS, Infosys, Wipro, HCL Tech ahead of Q4 results

Wipro Ltd (Wipro): The stock witnessed a gap down closing, resulting in negative sentiment. Thereafter, the has been consolidating in the range of Rs 265 – RS 255. Closing chart patterns reveals formation of 'Inverse Head and Shoulder' pattern with a breakout above Rs 265 – Rs 267 range. The its 50-DMA as per daily chart is at Rs 270. A major breakout above this level will see a rally towards Rs 277 and Rs 279, which is also the next hurdle for a further upside. READ MORE

Market check


HDFC Securities on Dilip Buildcon

DBL is trading at an attractive valuation of 9.4x FY21E P/E. We maintain BUY with Rs 833/sh TP (13.5x FY21E EPS and Build–operate–transfer (BOT) at 1x equity invested equity. With likely Rs 20 billion advance receipt, debt may have peaked.

Bajaj Auto climbs 1.4%


Tyres stocks under pressure

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%) VALUE
(rs CR)
VOLUME
APOLLO TYRES 215.10 219.55 214.85 -5.10 -2.32 1.18 54762
JK TYRE & INDUST 91.05 92.30 90.55 -1.65 -1.78 0.26 28310
KRYPTON INDS. 16.75 16.90 16.00 0.59 3.65 0.02 14869
CEAT 1082.00 1100.00 1075.45 -25.25 -2.28 1.32 12163
BALKRISHNA INDS 961.95 977.25 961.90 -14.45 -1.48 0.65 6712
PTL ENTERPRISES 40.05 41.25 39.70 0.00 0.00 0.00 455
GOODYEAR INDIA 937.55 941.15 937.55 -12.80 -1.35 0.03 345

Result preview :: Engineering & capital goods

On strong order books, earnings growth in EPC companies (KEC, Kalpataru) and pumps sector is likely to show strong growth. A pick-up in industrial production is likely to have led to healthy growth for consumables companies. Government investment in capex has slowed; so, sluggish order inflows are likely in order-book oriented companies. AIA Engineering, Grindwell Norton, Voltamp Transformers are the top picks

(Source: Anand Rathi Research)

Jefferies on power finance companies

Both Power Finance (POWF) & REC Limited (RECL) have had a phenomenal outperformance from their 2018 lows (+74% and +64% respectively) but devoid of any fundamental improvement, barring valuations as highlighted earlier. Post the run up, we believe the downside risks are wider now as DISCOM metrics have only worsened viz. rising payables, limited improvement in ACS/ARR gap and AT&C losses. Retain UNPF on both POWF & RECL

Emkay Global on Shriram Transport Finance (SHTF)

We downgrade SHTF to Hold rating from Buy earlier due to moderation in disbursement growth (with rising competition in the UV segment) and tight liquidity conditions. We expect a stagnant growth phase (~10-12%) to begin over the mid to long term.  We reduce our earnings estimate for FY20 by ~14.2% due to disbursements decline, pressure on margins and rise in credit costs. We revise our target price to Rs1,181 from Rs1,368 earlier (~1.5x P/B FY20E). Maintain our UW stance on SHTF in our EAP - NBFCs

Result preview :: Aviation sector

Despite Q4FY19 being seasonally weak, we expect profits to remain on an upward trajectory at both Indigo and SpiceJet (SJET). Jet Airways (JAL) should continue to face elevated losses as its PAX decline would overwhelm higher yields. Key highlights: 1) Yields are likely to surge 15%-plus YoY as airlines have hiked fares in light of sharp capacity-cutbacks at JAL. 2) ATF prices have inched down 1% YoY. 3) Indigo and SJET continue to grow 3x industry with market share gains at JAL’s expense. 4) PLFs though are expected to fall for Indigo/SJET by 3%/6% YoY, which should partially offset higher yields; We are raising the target price for Indigo/SJET by 13%/25% and cutting JAL’s by 22% to INR176 while downgrading it to ‘REDUCE’. We also recommend a switch from JAL to Indigo and SJET.

(Source: Edelweiss Research)

Prabhudas Lilladher on NIIT Tech

We believe Barings can help NIIT Tech in improving its capital allocation (NIIT Tech dividend payout ~40% in FY18). We see no major change in deal wins and revenue momentum, but margin levers are stretched, leaving limited room for upgrade.

Barings have earlier acquired Hexaware at inexpensive valuations(10.2x) & then then they improved its capital allocation, offered access to portfolio companies, revenue growth accelerated which helped in re-rating the P/E of Hexaware.

We expect 14.9% & 17.5% USD revenue & EPS CAGR for FY19E-FY21E respectively & value NIIT Tech at 17x Mar-21 earnings with unchanged target price of Rs.1539. Maintain Buy 

Firstsource Solutions gains 7% on stake hike by Rakesh Jhunjhunwala

Shares of Firstsource Solutions (FSL) were up 7 per cent at Rs 51.80 in intra-day trade on Tuesday, extending its previous day’s 1 per cent gain on the BSE, after ace stock-market investor Rakesh Jhunjhunwala purchased an additional 2.5 million shares of the business process outsourcing (BPO) services provider during the March quarter. READ MORE



Torrent Pharma climbs 2.7%


Nifty PSU Bank index is trading over 1% lower


Infosys hits new high of Rs 774 ahead of March quarter results

Infosys shares hit a new high of Rs 774, up 1 per cent, on the BSE in early morning trade on Tuesday ahead of its January-March quarter (Q4FY19) results on Friday. The stock has surpassed its previous high of Rs 771 touched on February 8, 2019, in intra-day trade. READ MORE



Chart Check: 41 Nifty F&O stocks indicate negative divergence on RSI

Technical indicator Relative Strength Index (RSI) helps to measure the momentum of the stock. The price direction is ascertained by tracking its movement. Normally, when the prices go higher, an equal amount of rise can be seen on the indicator. When it does so, the momentum seems favorable to the stock price. READ MORE

Don't see much value in Indian stocks right now: Marc Faber

With the frontline Indian benchmark indices trading near all-time highs ahead of the general elections that begin later this week, Marc Faber, Editor and Publisher of “The Gloom, Boom & Doom Report” tells Puneet Wadhwa that the Indian stock market is relatively expensive, especially the index (large-cap) stocks. Foreign investors, he says, would like to Narendra Modi get re-elected. READ MORE



Q4 earnings preview: Here's how different sectors are likely to perform

To understand the Q4 results, one must first understand how the broad macros for FY2019 will pan out as that will set the tone for the quarterly results. The real GDP growth is expected to be in the range of 7.1-7.2 per cent for the full year, with the fourth quarter growth being relatively lower. While average inflation at around 3.6 per cent will be positive and under the RBI benchmark of 4 per cent, the Current Account Deficit (CAD) at 2.6 per cent is likely to be a matter of concern.  READ MORE



Market check


Stocks that hit 52-week high on BSE500

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
ICICI LOMBARD 1063.45 1063.95 14.65 1.40
INFOSYS 769.45 773.65 2.30 0.30
MERCK 3876.00 3889.00 67.65 1.78
» More on 52 Week High

Godrej Properties down 1.50%


GAIL (India) slides 1.3%


Panacea Biotec jumps 17% on Rs 992 crore fund infusion by Bain-Piramal fund

Shares of Panacea Biotec surged 17 per cent to Rs 213 on the BSE on Tuesday after the pharmaceutical and biotechnology company said that India Resurgence Fund (IndiaRF), a fund promoted by Piramal Enterprises and Bain Capital Credit, has invested Rs 992 crore ($144 million) in the company. READ MORE



Linde India zooms 8%


Jubilant Life Sciences down 2%


Opening losers on S&P BSE Sensex

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
REL. COMM. 2.96 -0.15 -4.82 1481952
STERLITE TECH. 208.45 -7.50 -3.47 16267
INDIABULLS INTEG 354.00 -10.00 -2.75 1400
LAK. VILAS BANK 94.75 -2.60 -2.67 291784
PNC INFRATECH 149.00 -3.25 -2.13 81
» More on Top Losers

Top opening gainers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
ITI 104.25 6.35 6.49 80772
3M INDIA 25000.00 1156.95 4.85  
LINDE INDIA 489.50 17.20 3.64 1570
MANPASAND BEVER. 118.05 1.95 1.68 51
CAPLIN POINT LAB 393.00 6.45 1.67 133
» More on Top Gainers

Indiabulls Housing drops 2.62%


Nifty Realty index is trading 0.65% lower


Nifty IT index is trading 0.45% higher


Majesco jumps 3% after Wayne Locke's appointment as new CFO


Asian Paints down 2%


Rupee opens 8 paise higher against US dollar amid soaring oil prices

The rupee opened eight paise higher at 69.59 against the US dollar on Tuesday amid soaring oil prices and subdued Asian equities. The domestic unit tumbled 44 paise to close at 69.67 on Monday amid higher dollar demand from importers and rising crude oil prices. READ MORE



Dhanlaxmi Bank slides over 2.6%


Panacea Biotec surges 16% as India Resurgence Fund announces Rs 992-cr investment


Momentum picks by ICICI Direct


Sectoral gainers and losers on NSE


Top gainers and losers on S&P BSE Sensex


MARKET AT OPEN

At 09:17 AM, the SP BSE Sensex was trading 59 points or 0.15 per cent lower at 38,642 while the NSE's Nifty50 index was ruling at 11,603.25, down 1.25 points or 0.01 per cent. 

Market at pre-open


Rupee opening

Rupee opens higher at 69.59/$ vs Monday's close of 69.67 against the US dollar

Stocks in focus

Jet Airways: Abu-Dhabi based Etihad Airways, TPG Capital, and NIIF are likely to bid for Jet Airways, according to a Business Standard report. Potential bidders have time only till Wednesday evening to submit their expressions of interest (EoIs).
 
Asian Paints: As per news reports, an explosion took place on the premises of the Asian Paints unit at Pudi, about 50 km from Vishakhapatnam. READ MORE

Top trading calls by Anand Rathi

SAIL: BUY
TARGET: Rs 64
STOP LOSS: Rs 56
 
The stock has provided a breakout from the inverse head and shoulders pattern which is a bullish reversal pattern. The daily, as well as an hourly momentum indicator, are also well into buy mode. READ MORE

Today's picks

Adani Ports
Current price: Rs 380
Target price: Rs 374
 
Keep a stop at Rs 383 and go short. Add to the position between Rs 375 and Rs 376. Book profits at Rs 374. READ MORE

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


SGX Nifty

At 08:26 am, Nifty futures on the Singapore Exchange (SGX) were trading 4 points or 0.03 per cent higher at 11,687, indicating a flat to a positive start for the domestic stocks.

Bulk deals on the NSE as on Monday

08-Apr-2019 ADLABS Adlabs Entertainment Ltd. ALPHA LEON ENTERPRISES LLP BUY 8,11,126 9.01 -
08-Apr-2019 ADLABS Adlabs Entertainment Ltd. ALPHA LEON ENTERPRISES LLP SELL 8,61,129 9.05 -
08-Apr-2019 ADLABS Adlabs Entertainment Ltd. INDIA ADVANTAGE FUND S3 I SELL 10,76,290 9.04 -
08-Apr-2019 ARTEDZ Artedz Fabs Limited CNM FINVEST PRIVATE LIMITED . BUY 81,000 39.39 -
08-Apr-2019 ARTEDZ Artedz Fabs Limited DHANSUKHBHAI CHAMPAKLAL JADAV SELL 60,000 39.35 -
08-Apr-2019 DHFL Dewan Housing Fin Corp CROSSLAND TRADING CO BUY 22,27,623 163.74 -
08-Apr-2019 DHFL Dewan Housing Fin Corp CROSSLAND TRADING CO SELL 22,27,623 163.75 -
08-Apr-2019 DHFL Dewan Housing Fin Corp TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED BUY 20,16,706 164.45 -
08-Apr-2019 DHFL Dewan Housing Fin Corp TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED SELL 20,16,706 164.61 -
08-Apr-2019 DLF DLF Limited GOVERNMENT OF SINGAPORE SELL 679,87,184 191.01 -

Click here for full list

Oil check

Oil prices eased on Tuesday, slipping away from 5-month highs reached earlier in the session as a sluggish economic outlook countered an otherwise tight market.

International benchmark Brent futures touched their strongest level since last November at $71.34 per barrel on Tuesday, before losing ground to $70.96 per barrel, down 14 cents, or 0.2 per cent, from their last close. US West Texas Intermediate (WTI) crude oil futures also hit a November 2018 high, at $64.77 per barrel, before easing to $64.36, 4 cents below their last settlement.

Asian Markets check

Asian shares got off to a subdued start on Tuesday as investors braced for key events later in the week, including the kick-off of the US earnings season and a crucial Brexit summit, while broader concerns over slowing global growth checked sentiment.
 
MSCI’s broadest index of Asia-Pacific shares outside Japan was basically flat after brushing its highest since late August last year during the previous session. Australian shares dipped 0.25 per cent while Japan’s Nikkei was down 0.15 per cent.

Wall Street check

The S&P 500 and the Nasdaq edged into positive territory on Monday, with gains held in check by falling industrials as investors braced for what analysts now expect to be the first quarter of contracting earnings since 2016.

The Dow Jones Industrial Average fell 83.97 points, or 0.32 per cent, to 26,341.02, the S&P 500 gained 3.03 points, or 0.10 per cent, to 2,895.77 and the Nasdaq Composite added 15.19 points, or 0.19 per cent, to 7,953.88.
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