Sensex holds 39k ahead of Lok Sabha poll result; India VIX hits 4-yr high

Benchmark indices ended Wednesday's session with minor gains amid volatile trade as investors turned cautious on the eve of the Lok Sabha 2019 election outcome. After hitting an intra-day high of 39,249.08, Sensex finally settled 140 points, or 0.36 per cent higher at 39,110 while Nifty50 ended the day at 11,738, up 29 points or 0.25 per cent.

India VIX, a gauge of voltality on the NSE, touched a 4-year high of 30.18 in intra-day deals.

IndusInd, Sun Pharma, Bajaj Auto, Bharti Airtel, and Coal India were the BSE's top gainers. Out of the 30 constituents, 25 ended in the green. The market breadth remained in favour of buyers. About 969 stocks advanced and 770 shares declined on the NSE.

Only three out of the 11 Nifty sectoral indices ended the day in red, with Nifty Private Bank registering the maximum gain of 0.8 per cent while Nifty Bank rose 0.7 per cent.

In the broader market, the S&P BSE MidCap index dipped 24 points, or 0.2 per cent, to settle at 14,672, while the S&P BSE SmallCap rose 77 points, or 0.5 per cent, to end the day at 14,369.

 
BUZZING STOCKS

Dewan Housing Finance Corporation (DHFL) plunged as much as 18 per cent to Rs 107 in the early trade on Wednesday on the BSE after the non-banking finance company (NBFC) stopped accepting fresh public deposits and renewals of existing deposits. The stock, however, pared some losses to end the day 12 points, or 9.4 per cent lower, at Rs 117.65. READ MORE

Shares of Jet Airways (India) rallied 5 per cent to Rs 158.55 apiece on the BSE on Wednesday on the back of heavy volumes being traded on the hopes of the airline's revivial. The share has surged 32 per cent so far in this week. READ MORE

Find more buzzing stocks here


3:47 PM IST COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME TIMKEN INDIA 666.45 111.05 19.99 81475 RELIANCE POWER 7.85 0.93 13.44 12256657 NAVA BHARAT VENT 103.10 9.55 10.21 140849 CAPLIN POINT LAB 399.50 34.30 9.39 35387 BHARAT FINANCIAL 957.70 65.00 7.28 107750 » More on Top Gainers

3:46 PM IST

3:46 PM IST

3:34 PM IST The S&P BSE Sensex ended at 39,110, up 140 points while the broader Nifty50 index settled at 11,738, up 29 points.

3:20 PM IST COMPANY NAME LATEST HIGH LOW CHG (rs) CHG(%) YES BANK 137.10 141.55 135.45 -3.90 -2.77 IDBI BANK 36.40 36.45 34.65 0.95 2.68 PUNJAB NATL.BANK 84.45 85.80 82.70 -1.70 -1.97 ST BK OF INDIA 340.05 341.00 333.55 2.50 0.74 BANK OF BARODA 126.25 128.25 125.00 0.90 0.72

3:11 PM IST

3:03 PM IST

2:58 PM IST India's economy showed nascent signs of a recovery in April as a general election got underway, helping to somewhat lift the political uncertainty holding back investments.   Overall activity from eight high-frequency indicators compiled by Bloomberg News suggest the economy picked up slightly last month, with the dot moving one notch to the right. The dashboard is a measure of “animal spirits,” a term coined by British economist John Maynard Keynes to refer to investors’ confidence in taking action. READ MORE

2:46 PM IST

2:35 PM IST COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%) AMARA RAJA BATT. 616.25 603.25 -11.85 -1.89 DHANUKA AGRITECH 360.00 355.00 -5.45 -1.49 ERIS LIFESCIENCE 572.20 565.25 -32.65 -5.40 FORTIS HEALTH. 125.95 124.70 0.35 0.28 JUBILANT LIFE 520.00 516.00 -17.40 -3.24 » More on 52 Week Low

2:16 PM IST

1:59 PM IST

LIVE UPDATES

Top gainers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
TIMKEN INDIA 666.45 111.05 19.99 81475
RELIANCE POWER 7.85 0.93 13.44 12256657
NAVA BHARAT VENT 103.10 9.55 10.21 140849
CAPLIN POINT LAB 399.50 34.30 9.39 35387
BHARAT FINANCIAL 957.70 65.00 7.28 107750
» More on Top Gainers

Market at close


Heatmap: S&P BSE Sensex


Market at close

The S&P BSE Sensex ended at 39,110, up 140 points while the broader Nifty50 index settled at 11,738, up 29 points.

Bank stocks trade mixed

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%)
YES BANK 137.10 141.55 135.45 -3.90 -2.77
IDBI BANK 36.40 36.45 34.65 0.95 2.68
PUNJAB NATL.BANK 84.45 85.80 82.70 -1.70 -1.97
ST BK OF INDIA 340.05 341.00 333.55 2.50 0.74
BANK OF BARODA 126.25 128.25 125.00 0.90 0.72

Bharti Infratel slips in trade


Jet Airways soars over 7%


Fading political uncertainty in India raises hopes of an economic rebound

India's economy showed nascent signs of a recovery in April as a general election got underway, helping to somewhat lift the political uncertainty holding back investments.
 
Overall activity from eight high-frequency indicators compiled by Bloomberg News suggest the economy picked up slightly last month, with the dot moving one notch to the right. The dashboard is a measure of “animal spirits,” a term coined by British economist John Maynard Keynes to refer to investors’ confidence in taking action. READ MORE

Reliance Power climbs over 5.5%


Stocks that hit 52-week low on S&P BSE Sensex

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
AMARA RAJA BATT. 616.25 603.25 -11.85 -1.89
DHANUKA AGRITECH 360.00 355.00 -5.45 -1.49
ERIS LIFESCIENCE 572.20 565.25 -32.65 -5.40
FORTIS HEALTH. 125.95 124.70 0.35 0.28
JUBILANT LIFE 520.00 516.00 -17.40 -3.24
» More on 52 Week Low

Nifty Bank index is trading 1 per cent higher


MARKET CHECK


Top 3 HFCs struggle as liquidity tightens: should you buy their stocks?

Reserve Bank of India's (RBI) statement that some large non-banking finance companies (NBFCs) may be battling to remain solvent is another blow to the sector amid tight liquidity conditions.
 
Stocks of Indiabulls Housing, Dewan Housing and PNB Housing, the third, fourth and the fifth largest players, respectively, in the housing finance (HFC) space are under pressure. For Dewan Housing, some adverse developments with respect to its deposit book caused the stock spiral downwards by 13 per cent, while the other two stocks were down about 1-3 per cent during early Wednesday. READ MORE 

NEWS ALERT | Ramco Cements Q4 result

- Net profit at Rs 165.4 crore

- Revenue at Rs 1,532.5 crore

IndusInd Bank shares fall over 2% post Q4 results


NEWS ALERT | Romesh Sobti, MD & CEO, IndusInd Bank says-

- Provision to IL&FS at Rs 1,274 crore

- Nearing completion of merger with Bharat Financial Inclusion

- Loan growth at 28.6% y-o-y

- NIM at 3.59% against 3.83% QoQ

Larsen & Toubro scales new high, up 12% in a week; m-cap touches Rs 2.07 tn

In the past six trading sessions, L&T has outperformed the market by surging 12 per cent, as compared to a 5 per cent rise in the benchmark S&P BSE Sensex. Thus far, however, in the current calendar year, the stock has underperformed with gain of 2 per cent against an 8 per cent rally in the benchmark index. READ MORE

Result impact | Cipla gains over 2% after Q4 result beats estimates


Result impact | IndusInd Bank slips nearly 2%


NEWS ALERT | Cipla Q4 result

- Consolidated net profit at Rs 367.2 crore

- Cons revenue at Rs 4404 crore

- Ebit at Rs 961 crore

NEWS ALERT | IndusInd Bank Q4 result

- Provision to exposure to IL&FS increased 70%

- Net NPA at Rs 2248 crore, ratio at 1.21%

- Gross NPA at Rs3,947 crore, ratio at 2.1%

NEWS ALERT | IndusInd Bank Q4 result

- Net profitt at Rs 360.1 crore

- Net Interest Income at Rs 2,232.4 crore

Stocks that hit 52-week high on S&P BSE Sensex

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
CITY UNION BANK 208.20 209.90 -0.60 -0.29
DCM SHRIRAM 601.00 610.00 22.80 3.94
HEIDELBERG CEM. 200.30 206.40 0.00 0.00
J B CHEM & PHARM 365.90 377.65 20.15 5.83
JUST DIAL 740.20 749.10 29.05 4.08
» More on 52 Week High

Nifty50 trades absolute flat


Balkrishna Industries climbs almost 4%


NEWS ALERT | Raksha Valia pledges 4 lk additional shares of Sun Pharma: Agencies

Jindal Steel slips 12% on disappointing March quarter results

Shares of Jindal Steel and Power(JSPL) slipped 12 per cent intra-day to Rs 144 per share on the BSE after the company reported a 14 per cent year-on-year (y-o-y) decline in its consolidated operating profit at Rs 1,845 crore in March quarter (Q4FY19) due to higher expenses and finance costs. READ MORE

Sectoral trends on NSE at this hour


Top gainers and losers on S&P BSE Sensex at this hour


Market check


COMMENT : ELECTIONS & MARKETS :: Shankar Sharma of First Global

Historically, the markets have had no real love for any party. The markets are a very promiscuous bed fellow. I don’t pay much attention to what the markets’ immidiate reaction is to the change in government. Even if the same government comes back to power, the markets would eventually look past it. This is much like the Budget, which is a much-touted event. The reality is that what the market does that day is forgotten in a few days. READ THE FULL INTERVIEW HERE

Shankar Sharma, vice-chairman and joint managing director at First Global (Photo credit: Kamlesh Pednekar)

Market check


COMMENT : ELECTIONS & MARKETS :: Vikas Khemani, founder, Carnelian Capital Advisors

Markets are dealing with several big uncertainties right now like the election outcome, earnings momentum, tight local liquidity, global trade issues and global growth moderation. All these issues will keep the markets volatile and uncertain over the next three – six months. As some of these issues start to settle, markets should also start stabilising and create a base for growth. Given the overall uncertainty, even flows will remain volatile READ THE FULL INTERVIEW HERE

Vikas Khemani, Founder, Carnelian Capital Advisors


Elara Capital on Tech Mahindra

With continued strong booking in communications and possibility of a lead in setting credentials for 5G via anchor customers for Altiostar, medium-term growth prospects remain intact. We believe growth led by communications lowers risk of execution, and we change our rating to Buy from Accumulate. We arrive at a new TP of Rs 940 from Rs 890 on 14x (from 15x) FY21E P/E. We lower USD revenue by 3.4% for FY20E and 2.2% for FY21E, expecting lower growth in the enterprise segment. We reduce our EBITDA margin by 33bp for FY20E while raising it by 50bp for FY21E and lower PAT by 3.0% for FY20E while increasing it by 2.7% for FY21E.

COMMENT : ELECTIONS & MARKETS :: Gautam Duggad of Motilal Oswal

We do not see a room for significant re-rating for markets given the underlying fair valuations (19x FY20 Nifty EPS) and continued earnings downgrades. Assuming, no material change in actual results versus the exit poll predictions, we expect the market’s focus to revert to fundamentals post the election and government formation. Progress of monsoon, trends in rural consumption and events in debt market will be key near-term monitorables, in our view.

Bhageria Industries surges 17% on maiden bonus issue plan

Bhageria Industries shares surged 17 per cent to Rs 274 in intra-day trade on the BSE after the company announced maiden bonus issue plan.
 
“The board of directors of commodity chemicals company is scheduled to meet on May 29, 2019 to consider the proposal for issue of bonus shares”, Bhageria Industries said in a regulatory filing. READ MORE

COMMENT : ELECTIONS & MARKETS :: Jefferies

India's equity markets rallied to all-time highs on 19 May after Exit Polls forecast a stunning NDA majority. If this is confirmed on 23 May, we expect the euphoria to sustain near-term before the markets pivot back to the macro. The trends here are discomfiting with a structural fix likely to take time but stimulus, especially monetary, may still lift sentiment for industrials and discretionary. We raise weights here, therefore, but financials remain our highest over-weight

These stocks lost ground despite over five-day 1,600-point Sensex rally

It has been a volatile ride for the equity market investors over the past 10 days given the uncertainty ahead of the outcome of the general elections back home and fears of an escalation in trade war between the United States (US) and China.
 
Earlier this week, however, the markets recorded their best single-day gain in a decade with the S&P BSE Sensex surging a massive 1,422 points as exit polls showed the incumbent Narendra Modi – led National Democratic Alliance (NDA) return to power for the second consecutive five-year term. READ MORE

COMMENT : ELECTIONS & ECONOMY :: Tanvee Gupta Jain, economist, UBS

The big question which many investors asked was if the government maintains power, is it willing to undertake big-ticket reform (land, labour, capital) critical for India to move to a sustainable growth path in the medium term? If Modi wins again, general expectations were that he would need to maintain reform momentum and focus on employment generation and the rural economy.

Our base forecast assumes policy continuity. In the near term, simplifying of the GST, support for the rural economy (assured income support of Rs 6,000 / year / farmer, affordable housing and health schemes), boosting public infrastructure capex and strengthening the banking system are likely to be key priorities

Switzerland's national flag flies under the logo of Swiss bank UBS in Zurich

Buzzing | Nava Bharat Ventures zooms nearly 7%


Nifty FMCG index is trading 1.4% lower


JB Chemicals & Pharmaceuticals rises almost 7.5%


Sun Pharma up over 2%


UBL drags FMCG sector down

- Shares slip nearly 3% on weak Q4 nos.


PNB could take control of OBC, Andhra Bank, Allahabad Bank: Report

Punjab National Bank (PNB) could take control of two or three small state-run banks, that could include Oriental Bank of Commerce, Andhra Bank and Allahabad Bank, two sources familiar with the situation told Reuters.
 
New Delhi has been trying to merge smaller regional state-run banks with better managed larger government-owned lenders as one way to reduce bad loans that stand at more than Rs 9 trillion ($130 billion), or nearly 5 per cent of the nation’s gross domestic output. READ MORE

Jet Airways surges 32% in three days on revival hopes

Shares of Jet Airways (India) continued their three-day gaining streak and rallied up to 9 per cent to Rs 164 apiece on the BSE during early morning trade on Wednesday on the back of heavy volumes being traded on the hopes of the airline's revivial. The share has surged 32 per cent so far in this week. READ MORE



Sintex Plastics edge higher

- The Co has approved to explore the sale of Auto Division of Sintex-BAPL, the wholly owned material subsidiary of the company.


KEI Industries gains over 6.5%


Jet Airways among top gainers on BSE


MARKET CHECK


OMCs trade higher after oil prices ease

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%) VALUE
(rs CR)
VOLUME
RELIANCE INDS. 1352.00 1355.15 1338.70 12.25 0.91 12.16 89948
I O C L 154.05 155.95 153.25 0.70 0.46 1.01 65662
B P C L 381.40 382.15 376.60 6.70 1.79 1.96 51449
H P C L 289.10 290.90 286.85 4.00 1.40 1.17 40365
M R P L 61.65 62.20 61.25 -0.15 -0.24 0.14 22789
C P C L 209.70 210.95 206.85 2.95 1.43 0.07 3498
NAGAR.OIL REFIN. 0.29 0.29 0.29 0.01 3.57 0.00 1000

HDFC Securities on Hindustan Petroleum

Recommendation: Buy 
 
Last close: Rs 285
 
Target Price: Rs 346
 
HPCL is doubling its existing capacity at the Visakh refinery from 8.3mmtpa to 15mmtpa by FY21 (Outlay Rs. 210bn) and increasing it from the current 7.5mmtpa to
9.5mmtpa (Outlay Rs 50bn) at its Mumbai refinery. This will drive the earnings of the refinery business.

OMCs could not take any price hike to compensate for the rising product prices till mid-May in an election-packed environment. Now onwards, normative margins will be restored allowing HP to be the largest beneficiary as its earnings are highly sensitive to changes in the marketing margins (EBITDA contribution of ~60% vs
55/44% for BP/IOC). Our SOTP target is Rs 346 (6x Mar 21E EV/e for standalone refining and pipeline, 7x EV/e for marketing and Rs 57/sh from other investments).

Rupee opens 5 paise higher at 69.67 against US dollar

The rupee opened 5 paise higher at 69.67 against the US dollar on Wednesday. The domestic unit on Tuesday rose marginally by 2 paise to close at 69.72 in a lacklustre trade as participants preferred to sit on the fence ahead of the results of general polls. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 1,185.44 crore on Tuesday, provisional exchange data showed. READ MORE



NEWS ALERT | RBI decides to set-up special dept to supervise NBFCs

- "With a view to strengthening the supervision and regulation of commercial banks, urban cooperative banks and Non-Banking Financial Companies, the Board decided to create a specialised supervisory and regulatory cadre within the RBI," the apex bank said in its post- board meeting statement.

Aarti Industries declines


M&M Fin down over 3%


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
DEWAN HSG. FIN. 110.75 -19.15 -14.74 1717236
RELIANCE POWER 6.98 0.06 0.87 1440950
YES BANK 137.30 -3.70 -2.62 797592
REL. COMM. 1.97 -0.01 -0.51 577729
IDBI BANK 34.95 -0.50 -1.41 540203
» More on Most Active Volume

NEWS ALERT | IFCI Auditor says Co under-reported losses

- Loss of the company understated & loans overstated to the extent of Rs 44.1 cr.

- The company should provide for unsustainable portion of Rs 235.6 cr exposure

- Overall the loss is understated by Rs 256.17 cr for FY19

IT stocks under pressure

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%) VALUE
(rs CR)
VOLUME
KELLTON TECH 35.00 35.00 34.85 -0.05 -0.14 0.70 200002
VAKRANGEE 49.10 50.05 48.55 -0.75 -1.50 0.39 79052
WIPRO 284.80 287.10 284.25 -2.05 -0.71 1.52 53523
TECH MAHINDRA 753.90 760.20 745.30 -19.55 -2.53 3.30 43809
BRIGHTCOM GROUP 5.45 5.45 5.45 -0.28 -4.89 0.02 36234
INFIBEAM AVENUES 44.45 45.25 44.40 -0.90 -1.98 0.14 32351
INFOSYS 715.00 715.50 707.00 5.80 0.82 2.10 29406
FIRSTSOUR.SOLU. 51.20 51.70 51.20 -0.55 -1.06 0.08 15848

VA Tech down over 8%


IFCI slips after auditor says Co under-reported losses


Nifty Realty index rises over 1%


Market breadth at this hour


IndusInd Bank slips


Bulk Deal impact | Just Dial up over 4%


DLF rises almost 5% after reporting 76% jump in Q4 net profit


JSPL dips 6% after reporting losses in March quarter


IDFC First Bank dips over 3% after ICRA downgrades long-term rating of bank's NCD programme


Momentum picks by ICICI Securities


Tech Mahindra slips on Q4 results


DHFL slips over 14% after saying it won’t allow premature withdrawals of its deposits


Nifty sectoral indices at open


Market at open


Market at open

At 9:16 AM, the S&P BSE Sensex was trading at 38,920, down 50 points while the broader Nifty50 was ruling at 11,716, up 7 points.

Market check


Market check


Rupee opening

Rupee opens higher at 69.67/$ vs Tuesday's close of 69.71 against the US dollar

NEWS ALERT | RBI to bring stricter rules for provisioning under the new circular

Alert: Supreme Court had scrapped RBI's contentious "Feb 12 circular" issued to resolve bad loans

        : The circular had set strict rules for classification of loan as bad loans, inclduding 1-day default rule

Corporation Bank plans to trim slippages by 50% to Rs 4000 crore in FY20

Corporation Bank, which was in February this year taken out of Reserve Bank of India's prompt corrective action (PCA) framework, has said it would reduce slippages to up to Rs 4,000 crore in the financial year ending March 2020.
 
Slippages, or standard assets becoming bad loans, were around Rs 2,000 crore every quarter in FY19. This means the bank would reduce slippages by almost 50 per cent.  READ MORE

JM Financial on SpiceJet

Recommendation - Buy


Here is how you can play the markets on election result day

After the exit polls showed a strong possibility of the incumbent Narendra Modi - led National Democratic Alliance (NDA) coming back to power, the markets have risen nearly 4 per cent. The current rally took the benchmark indices to their lifetime high levels of 11,856 (Nifty 50) and 39,487 (BSE Sensex). READ MORE

Fading political uncertainty in India raises hopes of an economic rebound

India's economy showed nascent signs of a recovery in April as a general election got underway, helping to somewhat lift the political uncertainty holding back investments.
 
Overall activity from eight high-frequency indicators compiled by Bloomberg News suggest the economy picked up slightly last month, with the dot moving one notch to the right. The dashboard is a measure of “animal spirits,” a term coined by British economist John Maynard Keynes to refer to investors’ confidence in taking action. READ MORE

DHFL, IDFC First Bank, Tech Mahindra and Bank of Baroda top stocks to watch

Here's a look at the top stocks that are expected to trade actively in today's session -
 
DHFL: Liquidity-starved Dewan Housing Finance Ltd (DHFL) has said it won’t allow premature withdrawals of its deposits, with immediate effect, in order to reorganise its liability management. The housing finance company has also stopped accepting fresh public deposits and renewals of existing deposits.
 
IDFC First Bank: ICRA has downgraded the long-term rating of IDFC First Bank Limited's NCD programme to AA from AA+ with a stable outlook. The rating downgrade considers IDFC First Bank Limited’s weak earnings profile, given the elevated cost-to-income ratio, ICRA said. READ MORE

How the next govt can put banking and financial sector back on track

The country’s financial market is choked: The slow pace in the resolution of dud-loans, the contagion from the blowout at the Infrastructure Leasing & Financial Services (IL&FS), and a liquidity bind threaten vast swathes — from non-banking finance companies (NBFCs), mutual funds to realty firms — and all those caught in-between and around them. READ MORE

After Air India bid in 2001, Jet is Hinduja's second attempt at airline biz

The National Democratic Alliance government under Atal Bihari Vajpayee in 2001 decided to divest 40 per cent in Air India. Despite making an aborted attempt in 1995 to set up an airline (which faced severe opposition), the Tatas were again in the fray and roped in Singapore Airlines for the bid. But they were not the only ones interested. READ MORE

Elara Capital on UPL

Rating: ACCUMULATE
 
Target Price : Rs 1,104

With integration of Arysta completed in record time of nine months, management is now focusing on generating synergy. It maintains revenue synergy of USD 350mn over the next three years, while it expects a lower cost synergy of USD 200mn vs USD 250mn announced in Q3FY19. Management has guided for revenue growth of 8-10% in FY20 and EBITDA growth of 15-20%. Due to the 30%+ run-up in the stock price in last 6 months, we revise rating to Accumulate from Buy and a new TP of Rs 1,104 from Rs 915 based on 14x (unchanged) FY21E EPS of Rs 78.9.
 

How much can oil prices impact India's import bill in post-sanctions era?

To what extent would the US sanctions on Iran, disruptions in Venezuela and other controversial developments in the international crude oil market, such as the contamination of supplies from Russia to Europe (a well-cleaning chemical has entered the pipeline that could take months to clean up), impact India’s oil import bill? The unexpected answer is: Not much. That’s because India matters in the global politics of oil market as a purchaser, a heft it did not have earlier. READ MORE

Good days are far away: New investment projects in India remain in a slump

New investment project announcements have declined continuously in the last four years to Rs 9.76 trillion in FY19 from Rs 20.86 trillion in FY15. While there has been an increase in announcements in FY19 to Rs 17.25 trillion from Rs 12.16 trillion in FY18, the moot point is that the number of projects announced has slowed down during the last couple of years. READ MORE

Kotak Securities on Arvind Ltd

Recommendation:  BUY 

Target Price: Rs.103
 
Arvind reported weak Q4FY19 results in textiles business due to challenging environment in denim business and delay in rampup of new garments capacity. However, advance materials business continued to report strong results.

We downgraded our revenue and margins estimates factoring in challenging business environment in denim business and delay in ramp-up in garment business. The stock is presently trading at FY20E/21E PE of 8.0x/6.7x and EV/EBITDA of 5.9x/5.5x, respectively. We maintain BUY recommendation on the stock with revised target price of Rs 103 (Vs Rs 110 earlier), valuing the stock at FY21E EV/EBITDA of 6x, as we roll forward our valuations to FY21E.  

Tata's biggest challenge: $14 billion in auto debt and a slowdown in China

JLR’s mixed fortunes have hit Tata -- whose wider group debt load bloated to at least $36 billion, the largest among India’s conglomerates -- just as it seeks to revamp the sprawling business.

Making matters worse, a steel deal in Europe that would’ve eased the group’s liabilities unraveled this month. Tata Motors and Tata Steel Ltd. had a combined debt of about $27 billion, accounting for more than half of the total dues owed by the group’s top 18 units. READ MORE

NEWS ALERT | China ready for further US trade talks: Reuters

- Beijing is ready to resume trade talks with Washington, China’s ambassador to the United States Cui Tiankai said.

NEWS ALERT | PNB likely to take control of 2-3 small state-run banks: Reuters

- Punjab National Bank is looking to merge with two or three government owned banks that could include Oriental Bank Of Commerce, Andhra Bank and Allahabad Bank. 

- PNB could start the process of taking control of the banks in the next three months. 

Competition watchdog probing allegations against Maruti, say reports

India's antitrust regulator is looking into allegations that Maruti Suzuki, the country's biggest car maker, resorted to anti-competitive practices by controlling how its dealers discounted cars, three people aware of the matter said.
 
Maruti, majority-owned by Japan's Suzuki Motor Corp , is a household name in India where it commands a 51 per cent market share. READ MORE

Bank of Baroda Q4 Preview: Analysts see low slippages, fall in GNPA

Bank of Baroda is slated to announce its March quarter earnings for the financial year 2018-19 on Wednesday amid expectations of fewer slippages and lower gross non-performing asset (GNPA) ratio. The bank is also projected to report strong growth in net profit on a sequential basis.
 
The state-owned bank is anticipated to report over 70 per cent jump in net profit or profit after tax (PAT) on quarter-on-quarter (q-o-q) basis, as per analysts' estimates. READ MORE

L&T m-cap to touch Rs 3 trn, revenue at Rs 2 trn in 5 years: Chairman Naik

Larsen & Toubro's standalone market capitalisation will touch Rs 3 trillion and revenue will reach Rs 2 trillion in five years as strategic initiatives like L&T NxT have helped in making giant strides, Group Chairman A M Naik said.
 
The recently launched L&T-NxT initiative is a technology platform that focusses on artificial intelligence, internet of things (IoT), virtual reality, augmented reality, geospatial solutions as well as cybersecurity. READ MORE

Tata Motors expects ongoing financial year to be tough for truck market

Tata Motors expects the ongoing financial year to be tough for the truck market and sees it ending the year with single-digit growth. This comes ahead of a transition to BSVI emission norms, lower freight volume and liquidity crisis, a top company official said. READ MORE

After a long wait, Sebi notifies rules for MFs to enter commodity space

Market regulator Sebi has permitted mutual funds to participate in all exchange-traded commodities except the ‘Sensitive Commodities’. Essential commodities in the agri segment are regarded as sensitive. Along with MFs, gold exchange-traded funds also have been allowed to participate, but only in gold derivatives. READ MORE

Sale of business verticals most feasible option, says new IL&FS board

The newly appointed directors of Infrastructure Leasing & Financial Services (IL&FS) have decided that “an asset level resolution and the sale of business verticals comprising of a basket of companies and other entities” is the most feasible option for the resolution of the company's debt, the Ministry of Corporate Affairs (MCA) told the National Company Law Appellate Tribunal (NCLAT). The proposed resolution framework will be based on the principles of Insolvency and Bankruptcy Code (IBC), the ministry said. READ MORE

Liquidity-starved DHFL stops fresh deposits, premature withdrawals

Liquidity-starved Dewan Housing Finance Ltd (DHFL) has said it won’t allow premature withdrawals of its deposits, with immediate effect, in order to reorganise its liability management. The housing finance company has also stopped accepting fresh public deposits and renewals of existing deposits. READ MORE

Technical calls by Religare Broking: Buy Hero MotoCorp, Marico and IGL

Hero MotoCorp Limited
 
Recommendation: Buy
 
Last Close: Rs 2,657.20
 
Initiation range: Rs 2,635 - Rs 2,645
 
Target: Rs 2,775
 
Stop loss: Rs 2,580
 
Like other auto majors, Hero MotoCorp has been underperforming for last one year. It has recently tested the monthly support zone around Rs 2,500 and rebounding gradually since then. The positive divergence between the price chart and relative strength index (RSI) oscillator is indicating possible reversal ahead. We advise initiating fresh longs in the given range. READ MORE

Top technical calls from HDFC Securities: Buy SBI and L&T

UTILISE DIPS TO GO LONG
 
On May 21, Nifty opened higher than previous day high and closed with a fall of 116 points, losing half of the gain which was seen on May 20 post opening. This has resulted in to “Dark cloud cover” candlestick pattern on the daily charts, which indicates probable correction.
 
However, Positional trend of Nifty is bullish and any dip should be bought in to. The gap range 11,426-11,591, formed on May 20 is expected to act as a strong support in Nifty. Positional Target for the index is seen at 12,430. READ MORE

Bulk deal on NSE as on Tuesday

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


Rupee check

Source: Bloomberg


Oil check

At 7:50 am, Brent crude future were trading at $71.92 a barrel

SGX Nifty

At 7:45 am, SGX Nifty was trading  20 points higher at 11,746.5 levels indicating a positive start for Indian indices.

Asian Markets check

Source: Reuters


Wall Street check

Source: Reuters


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