Last hour sell-off drags Sensex 289 pts lower; RIL, financials top losers

Illustration by Ajay Mohanty
A selloff towards the fag end of Friday's session dragged the benchmark indices lower after a range-bound trade for most part of the day.

Reliance Industries and banking stocks remained the top drags for the indices with the Bank Nifty dipping 1.17 per cent.

The benchmark S&P BSE Sensex ended 289 points, or 0.73 per cent, lower at 39,452, after touching an intra-day low of 39,363. Only five out of the 30 BSE constituents ended the day in the green, with IndusInd, Bharti Airtel, Kotak Bank, Axis Bank, and Tata Motors taking the deepest cuts.

The broader Nifty50 index tumbled 91 points to 11,823. About 808 shares advanced, 1686 shares declined, and 144 shares remained unchanged on the NSE.

On a weekly basis, both the Sensex and Nifty slipped 0.5 per cent each.

 

All the Nifty sectoral indices ended Friday's session with losses. Nifty Realty, down 2.1 per cent, was among the top losers, while Nifty Bank,Nifty Auto, Nifty FMCG, and Nifty Private Bank, all slipped over 1 per cent.

In the broader market, the S&P BSE MidCap index was down 1 per cent to 14,721, while the S&P BSE SmallCap ended the day 110 points, or 0.76 per cent, lower at 14,366. 

 
BUZZING STOCKS

RITES shares rallied 6.05 per cent to Rs 293.65 on the BSE on Friday after the company said its board will meet on June 24, 2019 to consider bonus issue proposal. READ MORE

Gruh Finance shares slipped 8 per cent to Rs 285 on the BSE in early morning trade after the promoter Housing Development Finance Corporation (HDFC) sold more than 4 per cent of the company's paid-up capital in the open market. However, the stock ended the day 5.4 per cent lower at Rs 291.85. READ MORE

Shares of Reliance-Anil Dhirubhai Ambani Group (ADAG) companies continued to reel under pressure, falling by up to 40 per cent in the past seven trading sessions on the back of negative news flow. READ MORE

3:58 PM IST COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%) BAYER CROP SCI. 3505.00 3505.00 -104.50 -2.90 BIOCON 248.00 248.00 -8.40 -3.28 BOMBAY BURMAH 1106.65 1103.10 -10.85 -0.97 CEAT 922.10 918.65 -11.95 -1.28 CENTRUM CAPITAL 27.20 26.35 -0.85 -3.03 » More on 52 Week Low

3:57 PM IST COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%) BAJAJ FIN. 3519.80 3566.00 -23.05 -0.65 CITY UNION BANK 216.30 219.20 -1.65 -0.76 MANAPPURAM FIN. 141.60 143.80 1.60 1.14 P I INDS. 1155.00 1180.00 12.05 1.05 SYNGENE INTL. 326.55 368.10 -26.40 -7.48 » More on 52 Week High

3:57 PM IST COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME YES BANK 115.35 -1.85 -1.58 11681859 GRUH FINANCE 291.85 -16.65 -5.40 9192446 REL. COMM. 1.47 -0.07 -4.55 7164876 PC JEWELLER 57.40 -4.25 -6.89 6546799 DEWAN HSG. FIN. 80.45 -3.80 -4.51 4114053 » More on Most Active Volume

3:56 PM IST

3:55 PM IST

3:54 PM IST

3:33 PM IST The S&P BSE Sensex ended at 39,452, down 289 points while the broader Nifty50 index settled at 11,811, down 103 points.

3:24 PM IST

3:22 PM IST

3:14 PM IST

3:05 PM IST We believe, with the Mobiquity buy, Hexaware has achieved its intended acquisition target. Strategically, Mobiquity looks a perfect fit for Hexaware’s business model as it opens doors to large clients and opportunity to cross-sell its core capabilities. Though the acquisition will lead to short-term stress on balance sheet and could also reduce the dividend payout capability, its synergistic value can be immense if executed properly. We will wait for a few quarters of execution before we reassess our ratings. We maintain ‘HOLD/SP’ with target price of Rs 360 (16x Q2CY20E EPS)

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

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
BAYER CROP SCI. 3505.00 3505.00 -104.50 -2.90
BIOCON 248.00 248.00 -8.40 -3.28
BOMBAY BURMAH 1106.65 1103.10 -10.85 -0.97
CEAT 922.10 918.65 -11.95 -1.28
CENTRUM CAPITAL 27.20 26.35 -0.85 -3.03
» More on 52 Week Low

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

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
BAJAJ FIN. 3519.80 3566.00 -23.05 -0.65
CITY UNION BANK 216.30 219.20 -1.65 -0.76
MANAPPURAM FIN. 141.60 143.80 1.60 1.14
P I INDS. 1155.00 1180.00 12.05 1.05
SYNGENE INTL. 326.55 368.10 -26.40 -7.48
» More on 52 Week High

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
YES BANK 115.35 -1.85 -1.58 11681859
GRUH FINANCE 291.85 -16.65 -5.40 9192446
REL. COMM. 1.47 -0.07 -4.55 7164876
PC JEWELLER 57.40 -4.25 -6.89 6546799
DEWAN HSG. FIN. 80.45 -3.80 -4.51 4114053
» More on Most Active Volume

Heatmap: S&P BSE Sensex


Nifty sectoral indices at close


Market at close


Market at close

The S&P BSE Sensex ended at 39,452, down 289 points while the broader Nifty50 index settled at 11,811, down 103 points.

Nifty Auto index is trading over 1% lower


Reliance Capital extends losses, dips over 9.8%


Nifty Bank is trading 1.2% lower


Edelweiss on Hexaware

We believe, with the Mobiquity buy, Hexaware has achieved its intended acquisition target. Strategically, Mobiquity looks a perfect fit for Hexaware’s business model as it opens doors to large clients and opportunity to cross-sell its core capabilities. Though the acquisition will lead to short-term stress on balance sheet and could also reduce the dividend payout capability, its synergistic value can be immense if executed properly. We will wait for a few quarters of execution before we reassess our ratings. We maintain ‘HOLD/SP’ with target price of Rs 360 (16x Q2CY20E EPS)

Emkay Global on IIP numbers

The IIP growth rate touched a six-month high, but it would be too early to expect a reversal in overall economic activity. The high frequency indicators still indicate the consumption as well as investment demand remains weak. Apart from the weak data coming from complementary indicators the adverse base effect would also keep the IIP numbers at subdued level, unless there is a sharp recovery. The pick-up in capital goods segment too seems to be a one-off as the RBI’s assessment of the economy indicates a high output gap

Edelweiss on Asian Paints

We conclude, post analysis, that not only are the company’s disclosure levels decent, but they also exhibit long-term consistency and stability, inter-alia, on volume growth, cost channelisation (in the right direction), working capital parameters, free cash flow generation and conversion of EBITDA to OCF. The missing link is improvement in performance of subsidiaries, which we envisage to unfold in ensuing years. Maintain ‘BUY’ with a target price of Rs 1,570


NEWS ALERT | Sold stake in Gruh Finance via block deal: HDFC

Source: BSE filing

MARKET CHECK


Centrum on financial sector

Banks will continue to gain market share from NBFCs. We prefer banks having higher-rated corporate loan books given the signs of recovery in the corporate segment. Banks having a strong CASA and retail term-deposit franchises would also be preferred as garnering a sticky liability franchise is important. From our coverage universe, we prefer State Bank of India and ICICI Bank among larger banks and Federal Bank among mid-cap banks

COMMENT :: Centrum Broking on WPI data

The softening of WPI inflation displays the similar narrative depicted by the retail inflation, with core components reflecting weakening demand and thereby establishing a strong footing for the central bank and the government to reinvigorate the weakening growth impulses.

Going forward, food prices are expected to witness a growth in the near term which could pressurize inflation sequentially. The acceleration in prices will largely depend on the monsoon outcome. Thus, any shortfall in rain is doomed to result in spike of food prices

Gold Check | Gold jumped more than 1% intra-day to hit highest level since April 2018: Reuters

- Spot gold climbed 1.01% to $1,355.49 per ounce at 1:20 pm

- Bullion has risen 1.1% so far this week

- US gold futures jumped 1.2% to $1,359.50 an ounce

Elara Capital on Zensar Technologies

We maintain our estimates. We have not taken into account the divesture of the non-core multi-vendor support (MVS) segment that accounted for 4.8% of revenue in FY19 due to uncertainty regarding timing of the divesture. With increased confidence in management’s ability to improve lagging parts of the portfolio, we change our rating to Buy from Accumulate with a new TP of Rs 340 from 280 based on 13x (from 15x FY20E) FY21E P/E. We assign a lower multiple as we look at earnings further out into the future.

Reliance Securities on KEC International

T&D sector has been a bright spot in the domestic infrastructure space in last couple of quarters with pick-up in order inflow and execution. We reiterate BUY recommendation on the stock with an unrevised Target Price of Rs 383, valuing it at 15x of FY21 earnings.

Rupee check

Source: Bloomberg


Smartlink Holdings hit 52-week high today on share buyback


Prabhudas Lilladher on Avenue Supermart (DMart)

Rating: HOLD 

CMP: Rs1,310 

TP: Rs1,338


We estimate 28 store openings in FY20 and 30 in FY21. We estimate 28.7% sales and 33.1% EBIDTA and 37.4% PAT CAGR over FY19-21 on 50bps margin expansion. D’Mart is planning a QIP (upto 25mn shares) and OFS (to reduce promoter holding to 75%) which can provide an inflow of ~Rs35bn and fund growth. We value the stock at 46xJune21 EPS and arrive at a target price of Rs1338 (Rs1228, 45xFY21 EPS earlier). Long term outlooks remain positive; invest on declines in run upto to QIP and OFS.

Eros International slides 4.9%


Stock recommendation by Prabhudas Lilladher

IndusInd Bank lost over Rs 9,000 crore market cap in 2 days; stock down 10%

IndusInd Bank has lost an over Rs 9,000 crore market capitalisation (market-cap) in the past two trading days after foreign brokerage UBS downgraded the stock to ‘sell’ from ‘neutral’ on expectations of higher credit costs. Shares of the private sector lender were down 5 per cent at Rs 1,412 on Friday, falling 10 per cent in two days. At 01:45 pm, IndusInd Bank market cap stood at Rs 85,461 crore. It has lost Rs 9,094 crore since Wednesday (June 12) when its market cap was Rs 94,555 crore, the BSE data shows. READ MORE



Kansai Nerolac slips over 3.2%


Automobile sales down 7.5% in May, two-wheeler segment worst hit: FADA

Automobile sales dropped by 7.5 per cent to 17,71,920 units in May as compared to the same period last year, automobile dealers' body FADA said on Friday.
 
Two-wheeler sales took the biggest hit, followed by commercial vehicles, passenger car and then three-wheeler. READ MORE

Dr Reddy's sells US rights of branded neurology products to Upsher-Smith

Dr Reddy's Laboratories Limited announced on Friday that it has entered into a definitive asset purchase agreement with Upsher-Smith Laboratories, pursuant to which the company would sell its US and select territory rights for Zembrace Symtouch (sumatriptan injection) and Tosymra (sumatriptan nasal spray). Earlier these products were commercialised through Dr Reddys' wholly owned subsidiary Promius Pharma. READ MORE



Nifty FMCG index is trading 1% lower


Fresh plan for Jet Airways rescue on cards; SBI to call meeting of lenders

State Bank of India (SBI) will soon convene a meeting of all lenders to the grounded Jet to work on a fresh resolution plan based on the new Reserve Bank of India guideline for stressed assets released on June 7. The lenders had earlier prepared a resolution plan, which envisaged fresh infusion of cash and a new partner, for the revival of the airline based on RBI’s February 12 circular. READ MORE

NEWS ALERT | IDBI Bank initiates forensic audit on Sankhya Infotech

- Co informed BSE through filing


NEWS ALERT | China steel output hits record in May: Reuters

- China produced 89.09 million tonnes of crude steel, up from 85.03 million tonnes in April and 81.13 million tonnes in May a year ago.

- Average daily output of the industrial metal reached 2.87 million tonnes

Elara Capital on Persistent Systems

Rating: ACCUMULATE
 
Target Price : Rs 710
 
Upside : 14%
 
CMP : Rs 624 

We retain our estimates while we await early signs of success from the recent sales reorganization and new go-to-market strategy. We arrive at a new TP of Rs 710 from Rs 670 on 11x FY21E (from 12x FY20E) P/E. We lower the target multiple after discounting earnings further in the future. We reiterate our Accumulate rating, given the execution risk of a strategic pivot to potentially lower margin services and near-term revenue hiccups from sales reorganization. Significant decline in IBM IP revenue or loss of any top clients remain key risks to our call and estimates.
 

ADAG shares tank; Reliance Infra plunges 40% in 7 days ahead of Q4 results

Reliance Infrastructure (RInfra), Reliance Capital (RCap), Reliance Home Finance (RHFL), Reliance Power (RPower), Reliance Naval and Engineering, and Reliance Communications plunged between 21 to 40 per cent in the past seven trading days on the BSE. In comparison, the benchmark S&P BSE Sensex slipped 1 per cent during the same period. READ MORE

Stocks of credit rating agencies likely to remain under pressure: Analysts

The role of credit rating agencies has been under the spotlight given the recent liquidity crisis that has hit the finanial sector. While they can remain under pressure in the short-run given these developments, analysts remain optimistic on their long-term prospects. The optimism stems from the new set of guidelines set forth by the market regulator, which they believe, will tighten the weak links in their overall functioning and thus help in regaining the confidence from stakeholders. READ MORE




NEWS ALERT | Adani Green promoter sell 5.98% stake via offer for sale

- Sale to meet minimum public share holding norm

- Promoter stake now stands at 74.92%

NEWS ALERT | Maruti also launches new Alto with CNG

-  Price fixed in the range of Rs 4.10-4.14 lakh

NEWS ALERT | Prices hiked for both flagship models

- Swift to cost Rs 5.14-8.89 lakh ex-Showroom Delhi, Wagon R at Rs 5.10-5.96 lakh

Nifty Bank slips over 200 points


NEWS ALERT | May WPI inflation at 2.45%

Alert: April WPI Inflation was at 3.05%

Sectoral trends on NSE at this hour


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


Market check


ADAG shares tank; Reliance Infra plunges 40% in 7 days ahead of Q4 results

Shares of Reliance-Anil Dhirubhai Ambani Group (ADAG) companies continued to reel under pressure, falling by up to 40 per cent in the past seven trading sessions on the back of negative news flow. Reliance Infrastructure (RInfra), Reliance Capital (RCap), Reliance Home Finance (RHFL), Reliance Power (RPower), Reliance Naval and Engineering, and Reliance Communications plunged between 21 to 40 per cent in the past seven trading days on the BSE. In comparison, the benchmark S&P BSE Sensex slipped 1 per cent during the same period. READ MORE



Market check


WeWork considering $1.9 billion deal for control of India unit

WeWork Cos. is considering a deal to take majority control of its India affiliate, according to people familiar with the matter, a deal that would allow the shared-office startup to consolidate financial results from the fast-growing unit as it prepares for an initial public offering this year. The New York-based company is in talks to buy around 70% of WeWork India at a valuation of about $2.75 billion, said one of the people, who asked not to be named because the discussions are private. READ MORE



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

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
BAJAJ FIN. 3550.00 3566.00 7.15 0.20
CITY UNION BANK 217.50 219.20 -0.45 -0.21
MANAPPURAM FIN. 142.10 143.65 2.10 1.50
P I INDS. 1163.70 1178.00 20.75 1.82
SYNGENE INTL. 349.60 368.10 -3.35 -0.95
» More on 52 Week High

NEWS ALERT | Looking for new ways of investment apart from bank loans: Nitin Gadkari

-  Want corporates, Pvt investors to form a cluster to contribute to growth

- Want more private sector investment to boost employment

NEWS ALERT | MF industry AUM hits new record high in May: Motilal Oswal

- Total AUM hit the Rs 25.9t (+4.6% MoM) mark, surpassing the previous high of Rs 25.2t in Aug’18

- Equity AUM (including ELSS and Arbitrage) increased 3.2% MoM to Rs 8.2t in May, led by a rise in market indices (Nifty up 1.5% MoM)

Sector analysis

- Weight of Domestic Cyclicals’ increased 160 bp to 10-month high of 62.9%,as weight of Capital Goods, Financials (private & PSUs) and Cement increased while that of Autos moderated.

- Defensives’ weight decreased 110bp to 26.8%. Global Cyclicals’ weight, too, shrank 40bp to 10.4%

Sun Pharma is trading lower


NEWS ALERT | Pathlabs Unifiers approves signing a binding term sheet for acquisition of 70% equity stake in a New Company

- Board of directors of Dr Lal PathLabs wholly owned subsidiary approved acquisition equity stake in  a company to be incorporated by Vinita Kothari and Sushila Dalal. 

(Source: BSE filing)

NEWS ALERT | Tech Mahindra appoints Shikha Sharma as one of the independent directors for 5 yrs: CNBC TV18

- Sharma is a former Axis Bank MD and CEO

JM Financial Institutional Securities on Ceat

Recommendation:  BUY
 
Current Price Target (12M): Rs 1,150
 
Upside:  20%
 
The company aims to maintain its market share in the 2W segment through extensive network coverage, product quality and brand recall.
Intensity of competition in the PCR space is higher than 2Ws and CEAT plans to focus on gaining new model SOB from OEMs. Raw material prices have remained benign, as increase in NR price has been balanced by softer crude prices. The company is planning a capex of INR 4,000cr, primarily in the PCR and TBR segments over the next 2 year anticipating growth in the auto industry starting 2QFY21.

OMCs trade mixed

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%)
RELIANCE INDS. 1311.85 1322.70 1309.50 -12.45 -0.94
I O C L 160.15 160.85 158.80 -0.75 -0.47
GAIL (INDIA) 309.25 311.50 307.90 1.10 0.36
H P C L 308.25 309.75 305.95 -1.35 -0.44
O N G C 169.60 170.30 168.60 0.65 0.38
B P C L 387.15 388.35 384.50 -1.20 -0.31
INDRAPRASTHA GAS 337.45 343.00 337.30 0.85 0.25
OIL INDIA 177.10 177.30 175.60 -0.35 -0.20
CASTROL INDIA 143.40 145.40 143.05 -0.55 -0.38
PETRONET LNG 236.50 237.60 235.75 -0.65 -0.27

Reliance Infra trades 6% lower ahead of Q4 results


Aurobindo Pharma falls 5%


Nifty Metal index trades positive for the first time during the day


Hexaware buys US-based Mobiquity for $182 mn to expand cloud offerings

Indian IT services company Hexaware Technologies Ltd said on Friday it bought privately owned Mobiquity Inc for $182 million, to expand its cloud and automation service offerings. The deal will help Mumbai-based Hexaware gain traction in its banking and pharmaceutical verticals, through Mobiquity's digital products. Hexaware will pay $131 million upfront to Mobiquity and a deferred consideration of $51 million will be paid based on earnouts, the company said. READ MORE




MARKET COMMENT :: Chris Wood of Jefferies

The market turbulence driven by the renewed investor focus in recent weeks on trade wars and tech wars is a reminder of the importance of politics. Still this does not mean that central banks have become unimportant. This year there has been the “Powell pivot” and the renewed faith in the Fed “put”. 
 
The recent Fed tightening cycle has also been more significant than generally understood. First, there has been the “double whammy” of both Fed balance sheet contraction and rising rates which represents two forms of monetary tightening. Second, in terms of the percentage increase in interest rates from the low, this has been the most extreme monetary tightening cycle since at least the 1970s.

GREED & fear is not predicting a recession. Rather the base case remains that, with the sugar rush of 2017 tax reform over, the American economy is likely to slow this year and next to the trend growth rate of 2.3% in place since the global financial crisis. But if there is a risk to that base case, it is clearly to the downside because of the lagged effects of monetary tightening.
 
If Donald Trump surprises the consensus and does a U-turn on the China trade issue in coming weeks, like he has seemingly done with Mexico last week, macro investors should look to take advantage of the inevitable initial euphoria to bet again on the end of Fed tightening. Meanwhile the latest jobs data has kept sentiment dovish for now.

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

Chris Wood

Zee Entertainment down over 5%


Nifty Realty index is trading 1.75% lower


SoftBank in talks to invest $70 million in Indian e-pharmacy Medlife

SoftBank is looking at investing in Medlife, India’s largest e-pharmacy and healthcare platform by sales. Though the talks are still in early stages, the Japanese investment giant may put in $60 million-$70 million in Medlife, in what could be the first external investment in the five-year-old start-up. According to two persons having the knowledge of the talks, the Bengaluru-based company is seeking a valuation of Rs 3,000 crore or around $430 million, though this is yet to be agreed upon by the two parties. READ MORE

Gruh Finance slips 8% after stake sale by HDFC

Gruh Finance shares slipped 8 per cent to Rs 285 on the BSE in early morning trade after the promoter Housing Development Finance Corporation (HDFC) sold more than 4 per cent of the company's paid-up capital in the open market. Till 09:39 am, a combined 36.5 million equity shares, representing 4.97 per cent stake of Gruh Finance, had changed hands on the NSE and BSE, the exchanges data shows. However, the name of the buyers and sellers were not ascertained immediately. READ MORE



Ádani Enterprises slips in red


NEWS ALERT | Kerala Govt to resist hand-over of Thiruvananthapuram airport to Adani Group: BTVi

Alert: Kerala Govt has been against privatisation of airport, feels state-govt support is necessary

       : Adani Group had emerged as single biggest bidder for all 6 airports under the privatisation drive

       : Six airports include: Guahati, Lucknow, Jaipur, Ahmedabad, Mangaluru and Thiruvananthapuram

MARKET CHECK


Reliance Capital dips over 6.1%


DHFL tanks over 6.5%


NEWS ALERT | Blackstone likely main buyer of Gruh Finance shares via block deal: ET Now quoting unnamed sources

- ICICI Prudential Life, HDFC AMC, Birla among other buyers of Gruh Finance shares

- HDFC likely seller of Gruh Finance shares via block deal today

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
GRUH FINANCE 287.45 -21.05 -6.82 7034931
REL. COMM. 1.47 -0.07 -4.55 2830639
YES BANK 114.95 -2.25 -1.92 1694572
JP ASSOCIATES 3.68 -0.30 -7.54 886618
PC JEWELLER 65.05 3.40 5.52 862388
» More on Most Active Volume

RITES gains 6% to Rs 295 on bonus issue plan announcement

RITES shares rallied 6 per cent to Rs 295 on the BSE on Friday in early morning deal after the company said its board will meet on June 24, 2019 to consider bonus issue proposal. “A meeting of board of directors of the Company is scheduled to be held on Monday, June 24, 2019 inter alia to consider the proposal for issuance of bonus shares,” Rites said in a regulatory filing today. READ MORE


(Photo: Official website https://ritesltd.com)

YES Bank slips in early trade


Market check | S&P BSE Sensex sheds over 150 pts


Indices alert | Nifty Pharma, Realty, Media indices skid over 1%

DLF slips over 2% in early trade


Wockhardt gains 2%

- It has received zero observations from the US health regulator after inspection of its bioequivalence centre at Aurangabad in Maharashtra.


Adani Gas gains over 4%

- French energy giant Total SA is close to acquiring a 30 per cent stake in Indian gas distribution company for Rs 5,500 crore


Indiabulls Real Est slips over 6% after Rs 300 cr Income Tax was slapped on undisclosed income


Nifty Pharma index turns out to be the biggest loser during the early morning trade


Trend sin broader markets mixed


Heavyweight RIL dragging Sensex lower


Hexaware Tech up over 2% after it acquired Mobiquity


BSE Oil & gas index is trading in the red due to tensions in Iran


Jet Airways continues slide, slips over 11%


Gruh Finance down over 6% on expected stake sale


Momentum Picks by ICICI Securities


Sectoral trends on NSE


Top gainers and losers on S&P BSE Sensex


Market at open


Market at open


Top gainers and losers on S&P BSE Sensex during Pre-open trade


Market at pre-open


Rupee opening

Rupee opens unchanged against Thursday's close of 69.51/$

Market at pre-open


Market ahead | Stock picks for the day by Deepak Jasani, Head Retail Research, HDFC securities

Markets could open flat to mildly lower. Realty index can do well while Auto index could underperform. Last week Nifty closed at 11,870. On upside, Nifty could face resistance at 11,875-11,962 band, while 11,817 remains a support. Among stocks under coverage, Titan, PNC Infra, PI Ind, DLF, LTTS could do well.

IndiaBulls Real Estate told to pay Rs 300 crore in undisclosed income case

Tax settlement commission, a quasi-judicial body to settle tax liabilities, has asked Indiabulls Real Estate (IBREL) to cough up Rs 300 crore on the undisclosed income — detected during a probe by the income tax department initiated in 2016. The matter had been referred to tax settlement in 2017. The quasi-judicial body issued its order on April 30, which was the deadline for the ruling. I-T rules provide the tax commission 18 months to pass the order. Confirming the development, a senior tax official said the real estate company has been charged interest on the tax liability. READ MORE


Photo: Twitter

Oil prices leap nearly 4% after attacks on tankers in Gulf of Oman

Two oil tankers were attacked in the Gulf of Oman on Thursday, leaving one ablaze and both adrift, shipping firms said, driving oil prices as much as 4 per cent higher over worries about Middle East supplies. The Front Altair, carrying petrochemical feedstock, was on fire in waters between Gulf Arab states and Iran after an explosion that a source blamed on a magnetic mine. The Norwegian owner said its crew were safe. A second Japanese-owned tanker was abandoned after being hit by a suspected torpedo, the firm that chartered the ship said. The crew were also picked up. READ MORE




Stocks in focus

Hexaware Technologies: The company has acquired consulting firm Mobiquity for $182 million.
 
HDFC: As per news reports, it is likely to sell 4.2 per cent stake in Gruh Finance today.
 
HDFC AMC: The company said in the press release that they are working with legal advisors and are in process of responding to the show cause notices in relation to the matter pertaining to the investments of Fixed Maturity Plans of HDFC Mutual Fund in debt instruments of Essel Group companies. READ MORE


Photo: Kamlesh Pednekar

Bad loan risk from related firms likely; IndusInd, YES Bank vulnerable: UBS

Negative news-flow just doesn’t seem to be getting over for the Indian banking and finance sector, which is already reeling under liquidity issues triggered by crisis at IL&FS in 2018, and was followed by issues at YES Bank and the more recent turn of events at Dewan Housing Finance Company (DHFL). A recent report by global research and brokerage house, UBS, suggests that the next level of risk could appear from leveraged corporates' inter-related companies (their network). READ MORE



Majority of BSE 500 stocks trading below 200-day moving average

More than 270 of BSE 500 stocks are still trading below the 200-day moving average (DMA), even as the benchmark indices rose 10 per cent so far in 2019.According to analysts, stocks struggling to cross their 200 DMAs suggest that the broader market is weak despite gains made by the benchmark index.
 
“Many small- and mid-caps have underperformed large-caps over the past several quarters, and there have been solid reasons for the same including corporate governance issues and liquidity squeeze,” said Deepak Jasani of HDFC Securities. READ MORE



RBI has space for more rate cuts: Aditya Birla Sun Life AMC's Maneesh Dangi

The present non-bank financial corporation (NBFC) crisis could spread to other segments and prolong, if not contained by sensible policy intervention, says Maneesh Dangi, chief investment officer-fixed income, Aditya Birla Sun Life AMC. In an interview with Ashley Coutinho, he says the crunch in liquidity might continue to be felt by those who need it the most in the next few quarters. READ MORE


Maneesh Dangi, chief investment officer-fixed income, Aditya Birla Sun Life AMC

Sebi's new default probability rule to monitor credit rating agencies

The Securities and Exchange Board of India (Sebi) has introduced a “probability of default” mechanism to keep credit rating agencies (CRAs) in check. The directive could reduce the number of companies that are in the top-rated category. According to the new framework, rating agencies have to assign the default probability to each rated debt instrument, and disclose its benchmark by December-end. READ MORE



India likely to be among top 20 global FDI sources by 2021: UN body

The growing number of Indian companies eyeing international acquisitions is expected to make the country one of the top 20 global sources of foreign direct investment (FDI) soon, shows a report by a UN body “India and the UAE — not traditionally in the top 20 outward investor countries — were also listed among the top 10 sources of FDI, for the 2019-2021 period, shows the report on international FDI flows by United Nations Conference on Trade and Development. READ MORE




Govt may roll over Rs 62,000 cr in fuel, fertiliser subsidies to FY21

In a bid to meet the challenging fiscal deficit target of 3.4 per cent of gross domestic product (GDP) for 2019-20, the Narendra Modi government could leave as much as Rs 62,000 crore in fuel and fertiliser subsidy arrears unpaid and roll over that amount to FY21, officials involved in the making of the Budget said. The measure has been necessitated because the Centre anticipates a shortfall in tax revenues this year, and expenditure commitments will certainly go up as the ruling Bharatiya Janata Party seeks to fulfil some of the welfare promises made in its 2019 election. READ MORE



FDI flows to India grew 6% to $42 billion in 2018, shows UN report

DI inflows to developing countries in Asia rose by 3.9 per cent to $512 billion in 2018, with growth occurring mainly in China, Hong Kong, Singapore, Indonesia and other ASEAN countries, as well as India and Turkey. The Asian region remained the world's largest FDI recipient, absorbing 39 per cent of global inflows in 2018, up from 33 per cent in 2017. READ MORE

Sebi hit the brakes on 'free of cost' transfers for FPIs in past year

The Securities and Exchange Board of India has not been giving permission to foreign portfolio investors (FPIs) to transfer assets through a provision which was previously in common use. An FPI could earlier transfer assets between its arms, in the wake of a merger of schemes or similar reorganisation, through an application to the markets regulator. READ MORE

Big listed real estate companies drive profits home in a dull market

Large listed realty firms, who are mostly market leaders in their home cities, seem to be doing better than the broader realty market. Revenues of developers in BSE Realty Index including that of DLF, Oberoi Realty and others, have gone up by 20 per cent in the January-March quarter (Q4) of FY19 on a yearly basis, data culled by Business Standard Research Bureau showed. READ MORE

Market outlook by HDFC Securities

Nifty showed upside bounce from the lows, expect emergence of selling interest from near 12K mark
 
Nifty showed upside bounce from the lows and closed on a minor gains yesterday.
 
A small positive candle was formed on Thursday with lower shadow, which indicates a minor comeback of bulls from the lows.
 
The overall chart pattern could now suggests a broader range movement around 12000 to 11780 levels and the Nifty is expected to move within this range for the next 1-2 sessions. One may expect emergence of selling interest from near 12K mark.
 
 

From BPCL to Bharti Airtel, hot stocks to watch on Friday

Zee Entertainment
 
Current price: Rs 353
 
Target price: Rs 348
 
Keep a stop at 356 and go short. Add to the position between 349 and 350.
 
Book profits at 348. READ MORE

Stock calls by Anand Rathi: Buy PVR, Apollo Hospitals, United Breweries

PVR: BUY
 
TARGET: Rs 1,820
 
STOP LOSS: Rs 1,680
 
The stock has formed a symmetrical triangular pattern on the daily charts and it has reversed from the lower end for the range; hence, the probability of an upside is quite high. The daily momentum indicator MACD (moving average convergence divergence) is in sell mode; however, the weekly MACD is still into buy mode. Therefore, we recommend buying this stock. READ ON OTHER STOCKS HERE

Commodity outlook by Tradebulls Securities: Buy Copper, Natural Gas

Even though gold/silver ratio is at a record high, we continue to remain bearish in silver as primarily it is used as an industrial metal and global environment is such that there is hardly any scenario where we can see demand for silver increasing. This has steeped into its price too. We expect gold to face stiff resistance around Rs 33,000 in MCX and support around Rs 32,200. READ MORE

Derivative strategy from HDFC Securities: Buy Bata June Futures

Buy BATA June Future @ Rs 1,437
 
Stop loss of Rs 1,418
 
Target: Rs 1470
 
Rationale:
 
Long build up is seen in the Bata Futures during the June series till now, where we have seen 16 per cent rise in open interest (OI) with price rising by 8.70 per cent.
 
On 10 June, the stock price gave breakout on the daily chart by closing above the resistance level of Rs 1,400 with higher volumes.
 
It has formed multiple bottoms around Rs 1,300 levels during last one month.
 
Oscillators and Momentum Indicators like relative strength index (RSI) and moving average convergence divergence (MACD) are showing strength in the stock on the daily and weekly charts.
 
It is trading above its 5, 20 and 200-day SMA (Simple Moving Average) indicating the stock is in uptrend for all the time frames.
 

Bulk deal on NSE as on Thursday

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


Rupee check

Source: Bloomberg


Oil check

At 7:33 am, Brent Crude Futures were trading at $61.53 per barrel.

SGX Nifty

At 7:30 am, SGX Nifty was trading 17.5 points lower at 11,902.5 levels. 

Asian Markets check

Source: Reuters


US Market check

Source: Reuters


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