Benchmark indices ended Friday's session with cuts, dragged down by bank stocks, after giving up the early gains during which they reclaimed the crucial 40,000 and 12,000 levels, respectively.
The S&P BSE Sensex ended the day 118 points, or 0.3 per cent, lower at 39,714 levels, with YES Bank, ITC, Vedanta, Mahindra & Mahindra, and NTPC leading the list of losers. The benchmark index slid almost 700 points off day's intra-day high, 40,122, but also staged a recovery to cut the losses. Out of the 30 BSE constituents, 19 ended the session in the red.
The broader Nifty50 index finished at 11,923, down 23 points, or 0.19 per cent. On a weekly basis, both Sensex and Nifty posted a gain of 0.8 per cent.
NEW GOVERNMENT & PORTFOLIO ALLOCATION
Putting rest to all speculation, the President of India on Friday released the portfolio details of new Cabinet, a day after Narendra Modi took oath as the country's 16th Prime Minister.
There were expectations that Amit Shah, a seasoned stock broker and a key architect of NDA's victory for the second consecutive time will be handed over reigns of the Finance Ministry. This is after Arun Jaitley expressed his desire to stay away from any role in the new government citing health reasons. However, Nirmala Sitharaman has been appointed the new Finance Minister, while Amit Shah will handle the Home Ministry. MARKET EXPERTS REACT TO THE DEVELOPMENT
Smriti Irani, who was expected to be awarded handsomely for defeating Rahul Gandhi in Amethi, has been made the Minister of Women and Child Development and Minister of Textiles.
Jagannadham Thunuguntla, senior vice-president and head of research (wealth) at Centrum Broking said the portfolio allocation removes the ambiguity surrounding it, and hence, is good for the market "in a sense".
"We will get to see new finance minister Nirmala's proposals and approach in the budget due in about a month. Emergence of clarity is what was important, and now narrative in markets will be about the economic policies that will be adopted to revive and stimulate the slowing economy,” he said.
Shares of Hindustan Petroleum Corporation (HPCL) hit a 52-week high of Rs 330, up 4 per cent, before ending the day 2.05 per cent higher at Rs 234.15 on the BSE, lifted by strong earnings in March quarter (Q4FY19) and fall in crude oil prices. In comparison, the S&P BSE Sensex was up 5 per cent during the same period. READ MORE
Coal India shares rallied as much as 4.11 per cent in the morning deals on Friday, a day after the company reported an impressive 362.46 per cent jump in its net profit at Rs 6,024.23 crore for the quarter ended March 31, 2019. The stock ended the session 0.18 per cent higher at Rs 253.35. READ MORE Read More
The S&P BSE Sensex ended at 39,714, down 118 points while the broader Nifty50 index settled at 11,923, down 23 points.
Vinati Organics gains for sixth straight day; stocks hit new high on Q4 nos
Shares of Vinati Organics were trading higher for the sixth straight day, up 5 per cent at Rs 2,197 on the BSE, also its new high in an otherwise weak market on Friday. The S&P BSE Sensex was down 0.48 per cent at 39,681 points at 02:39 pm. In the past two weeks, the stock has outperformed the market by surging 21 per cent, after the company reported strong earnings in March quarter (Q4FY19). In comparison, the benchmark index was up 4 per cent during the same period. READ MORE
COMMENT :: Lakshmi Iyer of Kotak Mahindra AMC on RBI policy expectation
Liquidity woes in banking system are far from over. The silver lining in this the expectation of government spending, this is likely to reduce the liquidity deficit in the system. Also the currency in circulation which had shown sharp spikes due to elections, is also likely to gradually recede, impacting liquidity favourably.
Given the global as also domestic scenario, the MPC may well choose to gratify the markets with a benchmark rate cut. What is more important for markets is the MPC guidance that the actual rate action
Vedanta slips 2.7%
MARKET UPDATE | YES Bank slips 4%
Market experts react to Sitharaman's appointment as Finance Minister
Putting rest to all speculation, the President of India on Friday released the portfolio details of new Cabinet, a day after Narendra Modi took oath as the country's 16th Prime Minister. Contrary to expectation that Amit Shah, a seasoned stock broker and the chief architect of NDA's victory for the second consecutive time will be handed over reigns of the Finance Ministry, after Arun Jaitley expressed his desire to stay away from any role in the new government citing health reasons. Consequently, Nirmala Sitharaman has been given the charge of the Finance Ministry, while Amit Shah will handle the Home Ministry. READ MORE
ITC dips 2.5%
Nifty PSU Bank index extends losses
COMMENT :: Ajay Bodke, CEO for PMS, Prabhudas Lilladher on Sitharaman as new FM
Ms Nirmala Sitharaman is eminently qualified to steer India's economy which is facing multiple headwinds of slowing consumption impulses, moribund private capex cycle and anemic exports. Unprecedented squeeze in liquidity due to crisis in NBFC sector & consequent spike in risk aversion has severely impacted aggregate demand. Sectors such as real estate, automobiles, consumer goods etc need an immediate respite
NCC records sharpest intra-day fall in 30 months; stock tanks 17%
NCC shares tumbled 17 per cent at Rs 97 on BSE on Friday to record their sharpest intra-day fall in the past 30 months, on report that the YS Jaganmohan Reddy government had decided to cancel projects sanctioned by Chandrababu Naidu in Andhra Pradesh. The stock reported its biggest intra-day decline since November 9, 2016. The counter has seen huge trading volumes with a combined 71 million shares, representing 12 per cent of total equity of NCC, changing hands on the NSE and BSE till 12:49 pm. READ MORE
Modi govt cabinet portfolios: Amit Shah Home Minister, Sitharaman new FM
The Narendra Modi government on Friday announced the allocation of the Cabinet portfolios. In a surprise move, Amit Shah, who was speculated to be appointed as the new finance minister, became the new Home Minister with Nirmala Sitharaman becoming the new Finance Minister.
Rajnath Singh has been appointed as the new Defence Minister and S Jaishankar new External Affairs Minister. READ MORE
NEWS ALERT | Markets recover on cabinet announcement
NEWS ALERT | Markets recover on cabinet announcement
NEWS ALERT | Hardeep Singh Puri appointed Minister of State (IC) for Ministry of Civil Aviation
- Also appointed Minister of State (IC) for Ministry of Housing and Urban Development, Ministry of Commerce
NEWS ALERT | PM Modi given charge of Ministry of Personnel, Public Grievances & Pensions
- Also, Dept of Atomic Energy, Dept of Science
Berger Paints extend gains, rises over 8%
Elara Capital on IPCA Laboratories
Target Price : Rs 1145
CMP : Rs 933
Resumption of broad-based revenue growth except the US after flat FY14-18 (vs 15% over FY18-21E) should result in higher operating leverage. Further, strong API capability and diversified model are advantages under the current environment. At the CMP, the stock is trading at reasonable valuations of 10x FY21E EV/EBITDA and 16x FY21E P/E. We reiterate Buy with a new TP of Rs 1,145 from Rs 1,040 on 20x (from 18x) FY21E P/E. Delay in FDA resolution is key risk.
Elara Capital on Insecticides India
Target Price : Rs 916
CMP : Rs 705
Management reiterated revenue growth of 10% for FY20 on recent product launches as well as new products launches in FY20. EBITDA margin is expected to improve by ~150bp in FY20E, driven by higher contribution from new launches, which will be primarily in the patented segment and greater degree of backward integration. The company targets doubling revenue in the exports segment by working on new registrations and expanding into new geographies. We recommend Buy with a TP of Rs 916 based on 13x FY21E P/E.
Prabhudas Lilladher on Insecticides India
Rating: BUY | CMP: Rs 706 | TP: Rs 887
Insecticides India is in the midst of transition from a me-too agrochemical manufacturer to a research-driven integrated player with focus on creating brands (+100 branded and +21 technical products) with differentiated products. It is currently working on multiple fronts (proprietary off-patent, in-licensing and new discovery) to enrich its product portfolio. Timely execution of this strategy can enable INST to sustain high growth rate over the medium term. We estimate 11% revenue CAGR and 7% PAT CAGR over FY19-21. Maintain Buy with revised target price of Rs 887 (Previous – 896) based on 13x FY21 earnings.
NEWS ALERT | Monthly rainfall over the country as whole is likely to be 95% of its LPA during July
- Likely to be 99% of LPA during August both with a model error of ± 9 %.
NEWS ALERT | 100% monsoon expected in Central India: IMD
- Region wise, the season rainfall is likely to be 94% of LPA over North-West India, 100% of LPA over Central India, 97% of LPA over South Peninsula and 91% of LPA over NorthEast India all with a model error of ± 8
ICICI Securities on V-Guard Industries
CMP: Rs 232
Target: Rs 235 (up 1%)
Target Period: 12 months
We model revenue earning CAGR of 15%, 23% in FY19-21E led by strong performance by new product categories and expansion in new geographies. However, rising competition coupled with higher discounts in the non-south regions would restrict upward movement of EBITDA margin in future. Hence, we believe, at the CMP, the stock discounts near term positives of earning growth, lower working capital requirements and positive free cash flows. We maintain our HOLD rating on the stock with a revised target price of Rs 235/share.
NEWS ALERT | Rainfall over the country from June to September is most likely to be NORMAL: IMD
- 96% to 104% of long period average
S&P BSE Small Cap slips in trade
S&P BSE Sensex falls over 700 pts from day's high
S&P BSE Mid Cap holds gains
- Index up 0.06 per cent
Index contributors at this hour
Revathi Equipment zooms 40% in two days on strong Q4 results
Revathi Equipment shares rallied 17 per cent to Rs 519 on Friday, surging 40 per cent in the past two trading days on the BSE, after the company reported an over four-fold jump in consolidated net profit at Rs 10.17 crore in March quarter (Q4FY19). The company had a posted profit of Rs 2.25 crore in year ago quarter. Operational revenue during the quarter under review grew 27 per cent at Rs 81.88 crore against Rs 64.31 crore in the corresponding quarter of previous fiscal. EBITDA (earnings before interest tax depreciation and amortization) margin declined to 13.26 per cent from 15.3 per cent, due to higher other expenses. READ MORE
YES Bank slips over 2%
Nifty Bank swings 1,200 pts
Market breadth in favour of decline
NEWS ALERT | Indices volatile; Sensex recovers from lows
- Trading at 39,756 levels, down 75.98 points or 0.19%
NEWS ALERT | Indices erase gains
NEWS ALERT | Sensex sees sudden fall
Coal India surges 4% post strong Q4 nos, brokerages see up to 26% upside
Post the result announcement, most brokerages have turned bullish on the stock and see an upside of up to 26 per cent, given its attractive valuation and likely continuation of cost control measures. READ MORE
NEWS ALERT | US suspension of trade program with India 'a done deal', reports Reuters quoting US official
- The suspension of a US trade preference program with India is a “done deal,” a senior State Department official said.
- President Donald Trump announced in March he would end India’s access to the decades-old Generalized System of Preferences (GSP) trade program over what the U.S. said was lack of access to India’s market.
JUST IN: New Modi government likely to announce 'big-bang' economic reforms in first 100 days. Could privatise or close over 42 state-owned firms, including Air India – NITI Aayog official pic.twitter.com/rFcD6oT68O
NCC to CNBC TV18: Haven't received any message from the Andhra Govt yet
- Says, even if the orders are cancelled, financials won't be impacted
Indiabulls Housing Finance gains 3%
UBI slips in trade, loses more than 1%
Anand Rathi Financial Services on Deccan Cements
Target: Rs 649
With its continuous focus on operational efficiency and better realisations, Deccan Cements reported strong EBITDA growth. Volumes, however, disappointed. With nomajor capex planned, its sharper focus on cost optimisation and rising government investment in its key markets, we expect a 25% PAT CAGR over FY19-21.
Its focus on de-leveraging isexpected to continue as no major capacity expansion has been announced. We expect PAT to register a 25% CAGR over FY19-21, and the RoE and RoCE to improve to respectively ~14.6% and ~11.3% by FY21. With no capex planned so far for thenext two years, the strong demand and better pricing would continue to sustainits net-cash position with significant cash-flows and better return ratios.
Modi win makes India stock market story more exciting than ever: Chris Wood
The re-election of Narendra Modi as India’s Prime Minister for the second consecutive term with a thumping majority is a positive and the government should now focus on economic development and reforms to create jobs over the next five years, says Christopher Wood, global head of equity strategy at Jefferies.
“With ten years in power he now has the time to change the country in a fundamental way, which makes the Indian stock market story more exciting than ever. Speaking of the stock market it, naturally, greeted the landslide with initial euphoria which is also good for GREED & fear’s Asia ex-Japan long-only portfolio which continues to have a 49 per cent weighting in India,” Wood wrote in his weekly note to investors, GREED & fear. READ MORE
File photo of Christopher Wood, global head of equity strategy at Jefferies
Hindustan Copper is trading over 2% lower
Vedanta slips over 1%
Indian Oil Corporation rises 4.6% after oil prices drop
Narnolia Financial Advisors on Coal India
Last close:Rs 252
Target price: Rs 274
Coal India delivered robust performance in FY19 primarily on account of last price hike in FSA (Jan’18) which coupled with strong premiums in E-auction led to 16% sales growth in FY19. However, recent fall in international non-coking coal prices and improving coal stock at power plants (at 18 days in Apr-19 vs. 10 days at the end of Apr-18) will lead to lower E-auction premiums but robust domestic demand for non-coking coal from power sector and non-power sector (like steel and cement) will continue to drive growth in volume. We continue to like Coal India given its monopolistic position, robust domestic demand of non-coking coal and higher realisation. We maintain our FY20 estimates and expect Volume/Revenue/PAT CAGR of 5%/8%/20% over FY18-20e. We continue to value the stock at 6x FY20e EV/EBITDA.
HPCL hits 52-week high; stock surges 20% in two weeks on Q4 nos, oil slip
Shares of Hindustan Petroleum Corporation (HPCL) hit a 52-week high of Rs 330, up 4 per cent, after surging 20 per cent in two weeks on the BSE, lifted by strong earnings in March quarter (Q4FY19) and fall in crude oil prices. In comparison, the S&P BSE Sensex was up 5 per cent during the same period. The stock surpassed its previous high of Rs 325 touched on June 18, 2018. READ MORE
Cadila Healthcare slips nearly 5%
Coal India gains over 2% in trade
Adani wins one of last two permits it needs for Australia coal mine
The Australian state of Queensland on Friday approved Adani Enterprise's management plan for an endangered bird at the site for a controversial coal mine, leaving only one more permit before construction can start on the project.
India's Adani has been working for a decade to obtain approvals to develop the Carmichael mine in the remote Galilee Basin, but the process has been slow as the project has become a touchstone for concerns about climate change. READ MORE
Tax saving tips: Invest in real estate and save tax on LTCG
Taxpayers can save the taxes on the gains by availing the benefit of tax exemptions allowed under the Indian tax laws. The law allows a taxpayer to invest in real estate and avail the benefit of exemptions on taxable gains realised on the sale of assets or real estate. READ MORE
YS Jaganmohan Reddy-led government in Andhra Pradesh cancels all projects sanctioned prior to April 1 this year by the previous N Chandrababu Naidu-led government but work on which was yet to take-off
Nifty Bank hits all time high
S&P BSE Oil & Gas up 118 points after crude fell 4% overnight
Berger Paints gains over 3%
PC Jeweller slips over 7% in trade
Sectoral trends on NSE
Top gainers and losers on S&P BSE Sensex
Market at open
Market at open
Momentum Picks by ICICI Securities
Top gainers and losers on S&P BSE Sensex
Market at pre-open
Rupee opens stronger at 69.76/$ vs Thursday's close of 69.87 vs US dollar
Market at pre-open
Coal India, OMCs, SAIL, Nalco and ONGC among top stocks to watch today
Coal India: The company posted a record increase of 362.46 per cent in its net profit at Rs 6,024.23 crore for the quarter ended March 31, 2019.
ONGC: State-owned Oil and Natural Gas Corp (ONGC) on Thursday reported a 31 per cent drop in its March quarter net profit as it faced a double whammy of a drop in production and fall in prices. READ MORE
Tasks for Modi 2.0: Govt's to-do list, going by BJP's election manifesto
Promises are meant to be kept, they say, and never to be broken. But in politics, promises made during election campaigning are not always kept after assuming power — inertia and the state’s limited administrative capacity are some of the reasons. READ MORE
Nations buying oil from Iran beyond accepted levels will face sanctions: US
The US on Tuesday reiterated its position after the media reports from New Delhi, quoting unnamed government officials, said that India was looking at ways to resume oil imports from Iran despite the US sanctions. READ MORE
Companies pitch for GST rate cut as Modi govt takes charge second time
Companies across sectors such as durables, automobiles and real estate have been lobbying hard for a goods and services tax (GST) cut as the Narendra Modi-led National Democratic Alliance prepares for a second term in office. Modi and his council of ministers were sworn in on Thursday in the presence of over 8,000 people at the Rashtrapati Bhawan. READ MORE
Govt likely to adopt Bank of Baroda-like model of merger for PSBs
The National Democratic Alliance (NDA) government, led by Prime Minister Narendra Modi, in its second stint may not go for a mega merger of public sector banks (PSBs) — a plan which was mooted during recent deliberations on consolidation.
Instead, the government may likely adopt the Bank of Baroda (BoB)-like model to merge two-three banks, people aware of the development said. READ MORE
SAIL Q4 net profit falls 42% to Rs 468 crore due to higher expenses
The country's largest steel maker SAIL on Thursday said its standalone net profit fell by 42.57 per cent to Rs 468.40 crore for the fourth quarter ended March 31, due to higher expenses.
The company had posted a standalone net profit of Rs 815.57 crore in the corresponding quarter previous fiscal, SAIL said in a regulatory filing. READ MORE
Max Financial Services stock offers opportunity for bottom-fishing
The Max Financial Services stock has been under pressure for over a year, on concerns over pledged shares of promoters (over 78 per cent), and the distribution tie-up with Axis Bank. The latter accounts for around 55 per cent in terms of annual premium receipts. READ MORE
Nifty outlook by HDFC Securities | Deepak Jasani, head of retail research
Markets surged higher on Thursday after weakness seen in the previous session. It was also the derivative expiry of the May series. Technically, with the markets surging higher, the bulls remain in control. Further upsides are likely once the immediate resistances of 11968 are taken out. Crucial supports to watch for any weakness are at 11,862.
Relief for GIFT City as Modi's election win allays relocation fears
The National Democratic Alliance’s (NDA) win in the Lok Sabha elections has come as a relief for market participants planning to kickstart operations at the International Financial Services Centre (IFSC), set up at the Gujarat International Finance Tec-City (GIFT City). Industry observers were earlier of the opinion that a new party at the Centre could potentially impede the progress at IFSC. READ MORE
Investment in participatory notes rises to Rs 81,220 crore till April end
Investments in the domestic capital market through participatory notes, led by equity allocation, rose to Rs 81,220 crore at the end of April on hopes of favourable market conditions.
Participatory notes (P-notes) are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be a part of the Indian stock market without registering themselves directly after going through a due diligence process. READ MORE
Amit Shah likely to be FM; investors say he will 'get things done'
Indian Prime Minister Narendra Modi is set to name Amit Shah, the chief of his Hindu nationalist Bharatiya Janata Party (BJP), as the country's new finance minister after taking his oath of office for the second time on Thursday, according to several Indian media reports. READ MORE
Amit Shah debuts in Modi's second innings; portfolios to be declared Friday
Narendra Modi, India’s 16th prime minister, in his second term, put together a Council of Ministers largely composed of the same colleagues who were part of the team when his government left office. Nearly 30 from the previous Council of Ministers have been dropped from the team this time. READ MORE
India entering second wave of growth, says Cisco CEO Chuck Robbins
CHUCK ROBBINS, chairman and CEO of American technology giant Cisco, is visiting India at a time when the world’s largest democracy is busy forming the next government led by Prime Minister Narendra Modi. The Cisco boss, who has met the Indian PM several times in the past, feels that he has done a phenomenal job when it comes to ease of doing business. READ THE FULL INTERVIEW HERE
Reliance Captial to scale down financial services for debt reduction
Reliance Capital (RCap), which had expanded as a large financial conglomerate, will soon have to scale down in financial services, as it looks to monetise its assets to pare debt. The company could look to re-build again, but before that it would have to go through a phase of restructuring. This period of transition could see the firm give up on some of its steady profit-generating businesses. READ MORE
How GST fraud worth Rs 40 crore came into light at Manpasand Beverages
Ever since Deloitte resigned as auditor for Manpasand Beverages Ltd (MBL), the Vadodara-based company, a listed one, has been in controversy. However, the recent goods and services tax (GST) fraud that came to light with the arrests of top management executives is the latest episode in the controversy and has made things worse. READ MORE
From Tata Motors to Bajaj Finance, hot stocks to watch on Friday
Current: 11,946 (fut: 11,978),
Stop-long positions at 11,895. Stop-short positions at 12,050. Big moves could go till 11,825, 12,100. A long June 6, 12,000c (63), short 12,100c (30) could
gain 10-15 if the market crosses 12,000. READ MORE
Commodity outlook by Tradebulls Securities: Buy silver, natural gas
US Dollar index is trading around 98 and is able to sustain above its resistance zone. Previously we have seen that since May 2018, DXY has been unable to sustain above 98 level but this time because of global trade war fears and weakness in GBP and EUR, DXY looks poised to extend its move above 98.50. READ MORE