MARKET WRAP: Sensex recovers 212 pts from day's low, Nifty ends at 11,643

markets
Buying in select bluechip counters such as ITC, Maruti, ICICI Bank and Infosys helped benchmark indices to settle in the positive territory on Friday. 

The S&P BSE Sensex recovered 212 points from day's low to settle at 38,767, up 160 points or 0.41 per cent. FMCG major ITC emerged as the top gainer on the index with over 3 per cent gains while Tata Motors (down over 1 per cent) ened as the biggest loser.

The broader Nifty50 index of the National Stock Exchange (NSE) settled at 11,643.45, up 47 points or 0.40 per cent, with 27 constituents advancing and 23 declining. 

On a weekly basis, Sensex lost 0.24 per cent while Nifty settled with 0.19 per cent decline.

In the broader market, the S&P BSE MidCap index gained 44 points or 0.29 per cent to end at 15,426 while the S&P BSE SmallCap index added 56 points or 0.37 per cent to end at 15,022.

Sectorally, all the indices ended in the green with media stocks gaining the most, followed by FMCG and auto. The Nifty Media index gained over 1 per cent to end at 2,443 level.

BUZZING STOCKS

Shares of ITC hit over a six-month high in the intra-day trade, extending its previous day’s 1 per cent gain, on the back of heavy volumes on the BSE. The stock ended at Rs 305.60 apiece, up 3 per cent. 

Shares of SpiceJet surged 10 per cent to Rs 111 on Friday, gaining 18 per cent in the past two trading days after the company said it will induct 16 Boeing 737-800 NG aircraft on dry lease. The company has applied to the Directorate General of Civil Aviation (DGCA) for a no objection certificate (NOC) to import the aircraft. Shares, eventually closed at Rs 110, up nearly 9 per cent. 

Shares of Foods & Inns were locked in the upper circuit of 20 per cent at Rs 223, also its record high on the BSE on Friday after RK Damani’s Derive Investments on Thursday bought nearly 5 per cent stake in the company from open market. The stock surpassed its previous high of Rs 217 recorded on April 19, 2018 in intra-day trade. 

GLOBAL CUES

Asian shares were flat and US Treasury yields pulled back on Friday. MSCI’s broadest index of Asia-Pacific shares outside Japan was barely higher, up 0.03 per cent.

Higher Chinese iron ore prices helped Australian shares outpace regional markets, pushing Australia’s S&P/ASX 200 index up 0.7 per cent. Japan’s Nikkei stock index gained 0.1 per cent.

Oil prices were firm on Friday, supported by ongoing supply cuts led by producer club OPEC and by US sanctions on petroleum exporters Iran and Venezuela.

(With inputs from Reuters)

3:43 PM IST

3:42 PM IST

3:41 PM IST The S&P BSE Sensex added 160 points or 0.41 per cent higher at 38,767, while the NSE's Nifty50 index gained 47 points or 0.40 per cent to end at 11,643

3:01 PM IST The trading volumes on the counter jumped more than five-times with a combined 20.68 million shares changing hands on the NSE and BSE, till the time of writing this report. READ MORE

2:39 PM IST PCJEWELLER 110.80 +15.05 +15.72   RAIN 122.80 +13.30 +12.15   SPICEJET 110.35 +9.10 +8.99   TV18BRDCST 38.30 +3.05 +8.65   INFIBEAM 47.75 +2.75 +6.11

2:28 PM IST The S-1 filing underscores the rapid growth of Uber’s business in the last three years but also how a string of public scandals and increased competition from rivals have weighed on its plans to attract and retain riders. READ MORE

2:24 PM IST The bonds, sold in two tranches, were issued through Vedanta's subsidiary Vedanta Resources Finance II plc and it attracted interest from global investors across Europe, North America and Asia, the company said. READ MORE

2:18 PM IST

1:59 PM IST

1:58 PM IST The Nifty500 index tpuched 9,765 levels in April 2019, up nearly 5 per cent from an approximate breakout level of 9200. The index had been consolidating between 8,800 - 9,200 levels since the last two months. If the index holds 9600 for the current month, then one can expect a rally towards all-time high of 10,049. The rally his witnessed several stocks of Nifty 500 moving out from the over-sold territory. READ MORE

1:48 PM IST

LIVE UPDATES

Sectoral gainers and losers on NSE


Top gainers and losers on S&P BSE Sensex


MARKETS AT CLOSE

The S&P BSE Sensex added 160 points or 0.41 per cent higher at 38,767, while the NSE's Nifty50 index gained 47 points or 0.40 per cent to end at 11,643

ITC rises 3% to hit a six-month high on heavy volume

The trading volumes on the counter jumped more than five-times with a combined 20.68 million shares changing hands on the NSE and BSE, till the time of writing this report. READ MORE

Top 5 gainers on BSE

PCJEWELLER 110.80 +15.05 +15.72
 
RAIN 122.80 +13.30 +12.15
 
SPICEJET 110.35 +9.10 +8.99
 
TV18BRDCST 38.30 +3.05 +8.65
 
INFIBEAM 47.75 +2.75 +6.11

Uber unveils IPO with warning it may never make a profit

The S-1 filing underscores the rapid growth of Uber’s business in the last three years but also how a string of public scandals and increased competition from rivals have weighed on its plans to attract and retain riders. READ MORE

Vedanta Resources raises $1 billion through bond issue to repay debt

The bonds, sold in two tranches, were issued through Vedanta's subsidiary Vedanta Resources Finance II plc and it attracted interest from global investors across Europe, North America and Asia, the company said. READ MORE

ITC rises almost 3%


Market check


Stocks that can rally at least 10% in this election season

The Nifty500 index tpuched 9,765 levels in April 2019, up nearly 5 per cent from an approximate breakout level of 9200. The index had been consolidating between 8,800 - 9,200 levels since the last two months. If the index holds 9600 for the current month, then one can expect a rally towards all-time high of 10,049. The rally his witnessed several stocks of Nifty 500 moving out from the over-sold territory. READ MORE


PC Jeweller zooms over 14%


As many as 12 securities hit 52-week highs in trade

ASTRAZEN AstraZeneca Pharma India Limited 2,150.00 2,135.00 06-Mar-2019 2,117.80 2054.80 63.00 3.07
BAJAJFINSV Bajaj Finserv Limited 7,594.95 7,590.00 11-Apr-2019 7,550.00 7562.75 -12.75 -0.17
BALAXI Balaxi Ventures Limited 61.55 58.65 11-Apr-2019 61.55 58.65 2.90 4.94
BILENERGY Bil Energy Systems Limited 5.05 4.85 11-Apr-2019 5.05 4.85 0.20 4.12
BSLNIFTY Aditya Birla Sun Life Nifty ETF - Growth 126.79 125.00 05-Nov-2018 124.58 121.07 3.51 2.90

(Click here to view the full list)

Maruti Suzuki climbs almost 2%


Cement stocks gain

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%) VALUE
(rs CR)
VOLUME
INDIA CEMENTS 111.05 111.10 108.15 1.60 1.46 3.51 316220
AMBUJA CEM. 230.65 230.65 226.80 4.00 1.76 1.28 55708
ACC 1675.00 1684.95 1663.00 1.25 0.07 7.97 47599
SH. DIGVIJAY CEM 22.30 23.75 22.30 -0.90 -3.88 0.05 22205
UDAIPUR CEMENT 14.42 14.73 14.21 0.07 0.49 0.03 20668
CENTURY TEXTILES 916.15 920.00 902.00 9.40 1.04 1.20 13085
SHIVA CEMENT 15.40 15.50 15.10 0.15 0.98 0.02 12885
ANDHRA CEMENTS 4.72 4.72 4.60 0.22 4.89 0.01 12787
ULTRATECH CEM. 4184.40 4196.50 4137.10 33.10 0.80 4.77 11403

Stocks that hit 52-week high on BSE500

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
ASTRAZENECA PHAR 2084.40 2149.45 27.35 1.33
ICICI LOMBARD 1099.30 1110.20 10.20 0.94
SIEMENS 1173.75 1179.00 2.70 0.23
» More on 52 Week High

DHFL falls 3% after Brickwork's ratings downgrade

Shares of Dewan Housing Finance Limited (DHFL) slumped 3 per cent to Rs 167 on the BSE on Friday in intra-day trade after rating agency Brickwork downgraded ratings on the company's NCDs and subordinated debt instrument. The downgrade is on account of limited progress in building up liquidity, selling/ exiting riskier construction finance loans, DHFL said in a regulatory filing on Thursday after market hours. READ MORE

YES Securities on Cables & Wires Industry

We delved into one of the fastest-growing segments of the domestic electrical goods sector, the Cables and Wires (C&W) space (~23% volume CAGR over FY14-18). This feat was largely the outcome of a strong demand for cables, boosted by the government’s ‘power to all’ mission and commensurate infra spends. The C&W space is expected to double over FY18-23E amid a strong power distribution capex, as also the growth in the wires segment, led by a plethora of affordable housing projects. Next leg of demand growth would also come from adoption of electric vehicles in India.
 
We recommend BUY on KEI Industries (strong volume growth & improved product mix) and Finolex Cables (established brand & premium positioning).

Motilal Oswal Financial Services on M&M

We assign 14x P/E to the core business (~10% discount to five-year average core P/E) and Rs 221/share value of subsidiaries (at 40% hold-co discount). Maintain Buy with an SOTP-based target price of Rs 790 (Mar’21).

Elara Capital on internet companies

We continue to be positive on InfoEdge as we attribute high probability of success to its investee company, Zomato’s, pivot into food delivery. Our channel checks suggest both Zomato and its rival food order and delivery company, Swiggy, are seeing rapid growth in food delivery as they expand into new cities in India. We remain negative on JustDial as we are concerned about the rapid unraveling of its business model. Valuations remain high for JustDial, and we believe the market is not considering how earnings potential for technology firms (or those that compete with technology firms) can deteriorate suddenly if business models do not adapt to changes in the technology landscape, which is our concern regarding JustDial.

Jain Irrigation Systems gains 3.6%


Corporate houses, mutual funds raise exposure to Mindtree in Q4

While Mindtree was busy fighting the takeover bid from L&T, some corporate houses, domestic mutual funds (MFs), and even some foreign institutional investors increased their stakes in the IT services firm. According to the shareholding pattern disclosures filed by the Bengaluru-headquartered IT firm, corporate houses hiked their exposure by close to 4 per cent at 23.41 per cent by the end of March quarter, against 19.53 per cent reported in the December quarter. READ MORE

Stock of the day | SpiceJet climbs 10%

Shares of SpiceJet surged 10 per cent to Rs 111 on Friday, gaining 18 per cent in the past two trading days after the company said it will induct 16 Boeing 737-800 NG aircraft on dry lease. The company has applied to the Directorate General of Civil Aviation (DGCA) for a no objection certificate (NOC) to import the aircraft. READ MORE


BUZZING STOCK | 63 Moons hits upper circuit


Market check


Elara Capital on automobiles

The on-the-ground sentiments of purchasers across auto segments are currently tepid, and we expect it to last at least until the General Elections are over in May. Our channel checks indicate the recent festival season demand of Gudi Padwa and Ugadi (for Maharashtra (MH), Karnataka (KTK) and Andhra Pradesh+Telangana [AP+Tel]) was a mixed bag, with demand being subdued in MH and KTK while it bounced back to a certain extent in AP+Tel. We currently assume PV growth of 8%, 2W growth of 7%, MHCV growth of 12% and LCV growth of 11% for FY20E. Among PV firms, we recommend Buy on Maruti Suzuki & M&M and Accumulate on Tata Motors; among 2W firms, we prefer Hero MotoCorp & TVS Motor, and among CV, we are positive on Ashok Leyland.

We don't allow promoter to extend their leverage, says Nilesh Shah

Nilesh Shah, managing director of Kotak Mahindra Mutual Fund, has been in fire-fighting mode, explaining investors the rationale behind the move to not invoke the shares pledged by Essel group promoters. In an interview to Samie Modak & Jash Kriplani, Shah says the choices made are in the best interest of unitholders. READ MORE


Nilesh Shah, managing director of Kotak Mahindra Mutual Fund

Gati gains over 13%


Top losers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
REL. COMM. 2.55 -0.13 -4.85 9377203
INDBULL.REALEST. 114.90 -3.85 -3.24 524534
TEJAS NETWORKS 185.60 -4.65 -2.44 1758
GRAPHITE INDIA 449.50 -10.45 -2.27 55712
FIRSTSOUR.SOLU. 52.10 -1.20 -2.25 107859
» More on Top Losers

Most active stocks by volume (BSE500)

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
REL. COMM. 2.55 -0.13 -4.85 9349282
SPICEJET 107.75 6.50 6.42 4868964
RELIANCE POWER 9.52 -0.13 -1.35 1317188
INFIBEAM AVENUES 47.15 2.15 4.78 1211517
ADANI POWER 50.85 0.50 0.99 1204023
» More on Most Active Volume

TCS, Infosys trade flat ahead of Q4 results announcement

Shares of IT giants Tata Consultancy Services (TCS) and Infosys were trading flat on the BSE in the early hours, with their January-March quarter (Q4FY19) results set to be announced later in the day. At 9:40 AM, Infosys was up 0.82 per cent at Rs 749.25 while Tata Consultancy Services had gained 0.69 per cent to trade at Rs 2,033. In comparison, the S&P BSE Sensex had risen 0.23 per cent, or 87 points, to 38,694. READ MORE

Nifty Realty index is trading 0.78% higher


DHFL slides 1.2%


Fortis Healthcare climbs over 5.7%


Market check


Future Consumer climbs almost 5%


Anand Rathi Financial Services on Bajaj Consumer Care

Factoring in the brand extensions, and assuming asteady rise in overall demand (rural and urban), we expect an 11.8 per cent CAGR inrevenue and 14 per cent in earnings over FY19-21. We upgrade our recommendation to Buy, with a revised target price of Rs 429 (earlier Rs 445) based on 22x FY21e EPS. Risks: Keener competition and the slow consumer shift to light hair-oils.

Kotak Securities on Gabriel India

We revise our FY19/FY20 estimates to factor in lower production by OEM’s and expected near term subdued demand. We also introduce FY21 estimates and roll over our target price on FY21E earnings. We maintain ADD rating on the stock with revised price target of Rs160 (earlier Rs153). We value the company at PER of 17x FY21E earnings (earlier valued at 18x FY20E earnings).

MARKET COMMENT :: Chris Wood of CLSA

The degree of the Fed’s U-turn in the first quarter does make it still vulnerable to being “whipsawed”. But GREED & fear is only talking about a potential monetary tightening scare, not a rate hike. GREED & fear remains firmly of the view that the next move in US interest rates will be a cut, not a hike. GREED & fear also remains firmly of the view that the way the US yield curve steepens going forward will be by short-term interest rates falling, not by long-term bond yields rising.
 
The academic egg heads who currently dominate the intellectual debate at the Fed believe that deflation is to be avoided at all costs. For such people the flattening yield curve last year constitutes a warning signal that the Fed has been over tightening. And indeed the Fed has “over tightened” from their perspective. The result was the “pivot” when market symptoms of excessive monetary tightening (ie, rising credit spreads) emerged.
 
There is a real risk of the US economy surprising to the downside in coming quarters, starting with this quarter. The classic interest rate-sensitive sectors, namely housing and auto, remain weak. It will be interesting to see how much the recent decline in bond yields stimulates loans as mortgage rates have come down.

(Source: Wood's weekly newsletter to investors, GREED & fear)

Christopher Wood, CLSA

MARKET CHECK: Top gainers on BSE at this hour

SPICEJET 108.35 +7.10 +7.01
 
VAKRANGEE 69.65 +3.90 +5.93
 
INFIBEAM 47.25 +2.25 +5.00
 
FCONSUMER 45.30 +2.15 +4.98
 
SHANKARA 548.00 +20.90 +3.97

Q4 preview | TCS vs Infosys: How IT heavyweights will fare on key parameters

Overall, IT companies are expected to deliver steady numbers, owing to ramp-up in deal wins and healthy digital growth. However, rupee appreciation, onsite talent crunch, and employee reskilling are expected to keep margins under pressure. CLICK TO READ FULL ARTICLE

Interview of the day | We don't allow promoter to extend their leverage, says Nilesh Shah

Nilesh Shah, managing director of Kotak Mahindra Mutual Fund, has been in fire-fighting mode, explaining investors the rationale behind the move to not invoke the shares pledged by Essel group promoters. In an interview to Samie Modak & Jash Kriplani, Shah says the choices made are in the best interest of unitholders. CLICK TO READ FULL INTERVIEW


Momentum picks by ICICI Securities


SpiceJet rises 7%


Sectoral gainers and losers on NSE


Top gainers and losers on S&P BSE Sensex


FIRST TRADE

At 09:18 am, the S&P BSE Sensex was trading 85 points or 0.22 per cent higher at 38,692, while the Nifty50 index of the National Stock Exchnage (NSE) was ruling at 11,615, up 18 points or 0.16 per cent. 

Market at pre-open


Rupee opening

Rupee opens lower at 69.04/$ vs Thursday's close of 68.92 against the US dollar

Stocks in focus

Q4 earnings today: TCS and Infosys. Apart from the two IT giants, Alpha Hi-Tech Fuel, Ashika Credit Capital, Gangotri Textiles, GTPL Hathway, Integrated Capital Services, Infomedia Press, Minal Industries, Mold-Tek Technologies, and Tinplate Company of India will also report their performance in the quarter.
 
IDBI Bank has reduced its lending rates by 5 basis points for most of the tenors, effective Friday. READ MORE

Commodity outlook by Tradebulls Securities

In spite of a jump in crude oil prices, Indian rupee continues to remain strong against the dollar on the back of strong inflows from FIIs. We may not see too much depreciation in rupee until elections are not over. After touching 97, the dollar index has started retracing back to 96.50 after EUR and Pound started getting stronger on an extension of Brexit. We expect the rupee to test 68.80 levels before making a bottom.  READ MORE

Top trading calls by Anand Rathi

INDIGO: BUY
TARGET: Rs 1,500
STOP LOSS: Rs 1,360
 
The stock has formed a symmetrical triangular pattern which is a continuation pattern. The momentum indicator MACD has come well into the buy mode; hence the probability of an upside has increased. READ MORE

Derivative strategy on ACC by HDFC Securities

Buy ACC APRIL FUTURE @ 1682
 
Stop loss of Rs 1,664
Target Rs 1,715

READ MORE

Top trading ideas by Prabhudas Lilladher

BUY BHEL
 
CMP: Rs 74.35
TARGET: Rs 80
STOP LOSS: Rs 71
 
The stock has made a higher bottom formation taking support near the significant 200-DMA and has produced a bullish candle to signify strength and has made the chart look attractive with a positve bias maintained. With also the RSI indicating a trend reversal to signal a buy and with good decent volume activity witnessed, we recommend a buy in this stock for an upside target of Rs 80 keeping a stop loss of Rs 71. READ MORE

Today's picks

Tata Steel
 
Current price: Rs 536
Target price: Rs 526
Keep a stop at 541 and go short.
Add to the position between 529 and 531. Book profits at 526.
 
Powergrid
 
Current price: Rs 196
Target price: Rs 192
Keep a stop at 198 and go short. Add to the position between 193 and 194. Book profits at 192. READ MORE

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


SGX Nifty

At 08:35 am, Nifty futures on the Singapore Exchange (SGX) were trading 31 points, or 0.27 per cent, lower at 11,645, indicating a negative start for the domestic stocks.

Bulk deals on the NSE as on Thursday

11-Apr-2019 DHFL Dewan Housing Fin Corp CROSSLAND TRADING CO BUY 25,47,117 170.31 -
11-Apr-2019 DHFL Dewan Housing Fin Corp CROSSLAND TRADING CO SELL 25,47,117 170.39 -
11-Apr-2019 DHFL Dewan Housing Fin Corp TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED BUY 24,66,278 170.17 -
11-Apr-2019 DHFL Dewan Housing Fin Corp TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED SELL 24,66,278 170.24 -
11-Apr-2019 GLOBUSSPR Globus Spirits Limited ARKAYA INVESTMENTS BUY 2,25,986 152.64 -
11-Apr-2019 GLOBUSSPR Globus Spirits Limited ARKAYA INVESTMENTS SELL 1,89,700 152.67 -
11-Apr-2019 JETAIRWAYS Jet Airways (India) Ltd. TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED BUY 10,24,426 263.53 -
11-Apr-2019 JETAIRWAYS Jet Airways (India) Ltd. TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED SELL 10,24,426 263.76 -
11-Apr-2019 MANGTIMBER Mangalam Timber Pro Ltd EUSTON INDUSTRIES LIMITED SELL 9,00,000 17.90 -
11-Apr-2019 MANGTIMBER Mangalam Timber Pro Ltd PAYAL COMMERCIAL COMPANY LTD BUY 1,15,000 17.89 -

Click here for the full list

Oil check

Oil prices were firm on Friday, supported by ongoing supply cuts led by producer club OPEC and by US sanctions on petroleum exporters Iran and Venezuela.

International Brent crude oil futures were at $71.01 per barrel, up 18 cents, or 0.3 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $63.78 per barrel, up 20 cents, or 0.3 per cent, from their previous settlement.

Asian Markets check

Asian shares were flat and U.S. Treasury yields pulled back on Friday as investor caution prevailed ahead of the release of first-quarter corporate earnings, although stronger US economic data helped offset some concerns about global growth.

MSCI’s broadest index of Asia-Pacific shares outside Japan was barely higher, up 0.03 per cent. Higher Chinese iron ore prices helped Australian shares outpace regional markets, pushing Australia’s S&P/ASX 200 index up 0.7 per cent. Japan’s Nikkei stock index gained 0.1 per cent.

Wall Street check

The S&P 500 ended little changed on Thursday as growing anxiety over a global economic slowdown offset upbeat data and investors waited for earnings season to kick into high gear.

The Dow Jones Industrial Average fell 14.11 points, or 0.05 per cent, to 26,143.05, the S&P 500 closed flat at 2,888.32 and the Nasdaq Composite dropped 16.89 points, or 0.21 per cent, to 7,947.36.
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