Benchmark indices Sensex and Nifty ended in the negative territory on Wednesday as investors booked profits in recent outperformers such as Reliance Industries (RIL) and financial counters.
The S&P BSE Sensex lost 101 points or 0.26 per cent to end at 38,133, with NTPC being the top drag and YES Bank the biggest gainer. RIL, HDFC Bank, HDFC, TCS, and Infosys contributed the most to the index's loss.
In the broader market, the S&P BSE MidCap index gained 88 points or 0.59 per cent to close at 15,168, while the S&P BSE SmallCap index ended at 14,778, up 95 points or 0.64 per cent.
The Nifty50 index of the National Stock Exchange (NSE) closed below 11,450 level at 11,445, down 38 points or 0.33 per cent.
Volatility index India VIX rose nearly 4 per cent to 17.07.
On the sectoral front, pharma stocks bled the most followed by auto and realty stocks. The Nifty Pharma index fell 1.04 per cent to 9,149, with all the 12 components ending in the red. On the other hand, Nifty PSU Bank index gained 1.59 per cent to settle at 3,229.
Shares of ICICI Prudential Life Insurance Company rallied 9 per cent to Rs 349 on the BSE as the promoter’s share sale programme received good response from non-retail investors.
Shares of Vodafone Idea hit a new low of Rs 28.30, down 4 per cent, in the intra-day trade, thus falling 14 per cent in four days on the BSE, ahead of rights issue. The stock eventually closed at Rs 28.45, down 3.89 per cent.
Asian shares held steady on Wednesday as investors tried to come to terms with a sharp shift in US bond markets and the implications for the world’s top economy. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.1 per cent, while Japan’s Nikkei average lost 0.2 per cent.
The S&P BSE Sensex shed 100.53 points or 0.26 per cent to settle at 38,133 while NSE's Nifty50 index ended at 11,445, down 38 points or 0.33 per cent.
Nifty PSU Bank index hits over 6-month high, SBI gains 6% in two days
Shares of State Bank of India (SBI) were up 2.4 per cent at Rs 311 on the NSE in intra-day trade on Wednesday. The stock of state-owned lender was up 6 per cent in the past two days, after the banks, led by SBI, said they will convert their debt into equity and take a controlling stake in the Jet Airways for a token sum of 1 rupee. The stock is 5 per cent away from its 52-week high level of Rs 326 on August 10, 2018. READ MORE
Motilal Oswal Securities on Alkem Laboratories
We lower ALKEM’s P/E multiple to 22x (from 24x earlier) to factor in the increased competition in the US generics space and gradual downtrend in the domestic formulation industry. We arrive at PT of INR2,170 (from INR2,368 earlier). Based on 23% earnings CAGR expected over FY19-21E and led by healthy performance in the DF segment, enhanced margins in the US generics business, and attractive valuation, we maintain a BUY rating on the stock.
Masala bond market revives as rupee gains and tax cut lures buyers
A rebound in the rupee and a government policy to boost the currency are helping to revive sales in the small market for masala bonds. HDFC, India’s largest mortgage lender, last week raised Rs 10 billion ($145 million) through a sale of the offshore rupee notes, the first in the market since November. READ MORE
SpiceJet rises 5%
Sectoral trends on NSE
Tata Motors down 1.44%
Power Grid slips 1.8%
Sun Pharma slips 1.6%
Here's how you can make money in RIL, SBI, Maruti and Axis Bank
The upward rising trend line on Nifty50 chart showed resistance around 11,550. It witnessed minor sell-off, before strongly reversing towards 11,500 level yesterday. A jump of 129 points or 1.14 per cent has brought back the positive sentiment. READ MORE
SML Isuzu nears 52-week high; stock zooms 50% in March
SML Isuzu shares surged 20 per cent to Rs 851 in intra-day trade on the BSE on expectations of better sales volume in the month of March. Thus far in the current month, the stock has rallied 50 per cent from the level of Rs 569 on February 28, after the company reported strong 33 per cent year-on-year (YoY) growth in total sales at 1,282 units in February. READ MORE
IL&FS defaults, liquidity crunch may lead to M&As between banks and NBFCs
“There will soon be a saturation point for large non-banking finance companies (NBFCs) particularly for those with assets upwards of Rs 75,000 crore. Capital First went ahead and merged with a bank. I believe more such innovative structures will follow,” says Jaspal Singh Bindra, executive chairman, Centrum Group and former Asia-Pacific head of Standard Chartered Bank. READ MORE
Sectoral trends on NSE
Prime Minister Narendra Modi: Today, we have enough satellites that are contributing in various segments such as agriculture, disaster management, communication, weather, navigation etc. pic.twitter.com/FHdsXdYxQJ
Residential real estate sales saw some moderation in January 2019 (-4.6% yoy) that will likely accelerate in the succeeding two months up to March 2019 owing to the change in GST rates applicable from April 2019. Launch activity has compressed more aggressively (-60% yoy), a trend that will likely continue as marginal players face incremental pressures under a constrained liquidity environment.
Reliance Securities on ICICI Bank
The stock currently trades at 2x FY21 ABV, lagging behind peers on valuations. We have BUY recommendation on the stock with an SOTP-based Target Price of Rs 470, implying a FY21 P/ABV of 2.4x.
Raamdeo Agrawal sees room for more gains in stocks after Pakistan feud
Prime Minister Narendra Modi’s strong response to a suicide bomb that killed 40 Indian troops in Kashmir has increased the chances that a stable government will be elected in upcoming general elections, said Raamdeo Agrawal, who helped develop Motilal Oswal Financial Services Ltd. into a billion-dollar company. And that bodes well for the economy and equities, he said. READ MORE
Anand Rathi on Kalpataru Power
Kalpataru Power’s robust order book and proven execution capabilities will lead to a healthy 17% revenue CAGR over FY18-21. The LMG acquisition is likely to improve its addressable market. Besides, synergies are likely to improve profitability in the acquired company. We expect earnings to clock a 20% CAGR over FY18-21. Hence, we maintain a Buy and raise our TP to Rs 548 (on a sum-of-parts valuation).
Momentum Picks by ICICI Securities
10% FPIs non-compliant with beneficial ownership disclosure norms: Sebi
Nearly 10 per cent foreign portfolio investors (FPIs) registered in India have not complied with the disclosure norms, the deadline for which ended on March 21. According to a circular by market regulator Securities and Exchange Board of India (Sebi), all the overseas investors had to furnish the details of their end-beneficiaries and sources of funds. Sources say Sebi through their custodians is in the process of imposing restrictions on non-compliant FPIs. READ MORE
Heatmap: S&P BSE Sensex
Vodafone Idea hits fresh low of Rs 28.30 ahead of rights issue
Shares of Vodafone Idea hit a new low of Rs 28.30, down 4 per cent, in intra-day trade on Wednesday, falling 14 per cent in four days on the BSE, ahead of rights issue. The stock fell below its previous low of Rs 28.80 touched on February 6, 2019 in intra-day trade. READ MORE
JM Financial on IT stocks
We do not expect 4QFY19 performance and lead indicators – such as TCV of deal wins and headcount addition – to drive a significant change to the FY20 USD revenue growth outlook, critical for incremental rerating. While the mid-caps IT names have seen a decent time correction, their higher vulnerability to currency movement is a risk. Thus, we advise a stock-specific play in the sector. TECHM (at 14.0x FY20F + upside from 5G capex cycle likely in FY20) is our only fundamental BUY idea; we prefer Infosys over other large caps.
United Breweries gains 6% to Rs 1,428 after block deals
United Breweries shares were up 6 per cent to Rs 1,428 on the BSE on Wednesday after nearly 3 per cent of its total equity changed hands on the counter through block deals in early morning trade. READ MORE
Sebi's new norms will ensure uniformity in valuation of high-risk papers
Continuing with its reforms of debt funds in the wake of the IL&FS defaults and downgrades, the Securities and Exchange Board of India (Sebi) has announced new norms for the valuation of below-investment-grade debt securities. READ MORE
ICICI Prudential surges 9% after good response for OFS
Shares of ICICI Prudential Life Insurance Company rallied 9 per cent to Rs 348 on the BSE in early morning trade as the promoter’s share sale programme received good response from non-retail investors. READ MORE
Rupee declines 13 paise against US dollar in early trade
The rupee opened 13 paise lower at 68.99 against the US dollar on Wednesday amid mixed global cues. On Tuesday, the domestic unit appreciated by 10 paise to end at 68.86 following a robust response to RBI's maiden rupee-dollar swap auction. READ MORE
Yes Bank up over 1.34%
Allahabad Bank gains over 2% on equity capital raising announcement
Nifty PSU Bank index is trading 0.86% higher
Mindtree slips 1.50% after firm's decision to drop buyback plan
IndusInd Bank gains 4%
Punjab National Bank up 2%
GMR Infra gains 2% on report of Rs 8,000-crore investment
Jet Airways rises 4%
Nifty Bank index opens at record high
Sectoral gainers and losers on NSE
Top gainers and losers on S&P BSE Sensex
MARKET AT OPEN
At 09:18 am, the S&P BSE Sensex was trading 192 points higher at 38,426 while the Nifty50 index was ruling at 11,526, up 43 points or 0.37 per cent.
Market at pre-open
Rupee opens slightly lower at 68.99/$ vs its previous close of 68.86 against the US dollar
Market outlook by ICICI Securities
Indian markets are expected to open flat to negative on the back of mixed Asian cues. In the near term, key monitorables include currency and crude price movement. Volatility can be expected ahead of F&O expiry this week.
Stocks in focus
Sheela Foam: The offer-for-sale by Sheela Foam promoters will open today. Both the promoters, Rahul Gautam and Tushaar Gautam will sell 42.33 lakh shares, representing 8.68 per cent of the paid-up equity shares.
GMR Infra: According to a Bloomberg Quint report, GMR Infrastructure on Wednesday announced that a consortium of a Tata Group company, Singapore's sovereign wealth fund GIC and SSG Capital Management, agreed to make an investment worth Rs 8,000 crore in its airport business. READ MORE
Technical calls from HDFC Securities
BUY RBL Bank (Rs 554)
Target: Rs 590
Stop loss: Rs 530
The stock has broken out from the pennant pattern on the daily charts and it is on the verge of registering new all-time high above Rs 661.50. READ MORE
Top trading ideas by Prabhudas Lilladher
CMP: Rs 394.10
Target: Rs 435
Stop Loss: Rs 380
The stock has recovered significantly from the low of Rs 383 to form a higher bottom formation pattern on the daily chart to show strength and with a bullish positive candle, it still has the potential to rise further to give a breakout above the previous peak of Rs 400 levels in the coming days. READ MORE
Nifty outlook by Prabhudas Lilladher
Nifty recovered strongly from the intra-day low made at around 11,310 and has formed a higher bottom formation pattern on the daily chart to signify strength and we can anticipate for further upside movement. READ MORE
At 8:20 AM (IST), Nifty futures on Singapore Exchange (SGX) were trading at 11,507, down 17 points, indicating a flat start for the domestic market
Asian shares slipped on Wednesday, giving up their small gains made the previous day, as investors tried to come to terms with a sharp shift in US bond markets and the implications for the world’s top economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.2 per cent while Japan’s Nikkei lost 0.6 per cent.
Wall Street check
Global stock markets broadly rebounded on Tuesday after a two-day swoon while benchmark U.S. Treasury yields steadied above 15-month lows as risk appetite improved after worries of a recession clouded trading since late last week.
The Dow Jones Industrial Average rose 140.9 points, or 0.55 per cent, to 25,657.73, the S&P 500 gained 20.1 points, or 0.72 per cent, to 2,818.46 and the Nasdaq Composite added 53.98 points, or 0.71 per cent, to 7,691.52.
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