MARKET WRAP: Sensex snaps 8-day rally, falls 222 pts, Nifty ends at 11,457

Snapping its eight-day rally, the S&P BSE Sensex ended 222 points lower at 38,165 as investors booked profit in recent gainers. Besides, selling in auto stocks, too, weighed on the sentiment. 

Industry heavyweights Reliance Industries (RIL), HDFC Bank, SBI and Maruti contributed the most to the index's losses. Out of 30 components of the index, only 10 scrips ended in the green and rest in the red.  

The broader Nifty50 index of the National Stock Exchange (NSE) ended below the crucial 11,500 level at 11,457, down 64 points or 0.56 per cent. 

Market breadth remained in favour of declines as out of 2,859 companies traded on BSE, 1,697 declined and 1,017 advanced while 145 stocks remianed unchanged. 

On a weekly basis, Sensex gained 0.36 per cent while Nifty added 0.26 per cent. 

In the broader market, the S&P BSE Midcap index fell 84 points or 0.59 per cent to settle at 15,077, while the S&P BSE SmallCap index slipped 66 points or 0.44 per cent to close at 14,759.

Sectorally, barring realty stocks, all the indices declined. PSU banks bled the most, followed by media and auto stocks. The Nifty PSU Bank shed 2 per cent to end at 3,124 while the Nifty Auto index lost 1.28 per cent to close at 8,337. 

BUZZING STOCKS

ITC reclaimed the top spot in the list of India's most-valued fast moving consumer goods (FMCG) company in terms of market capitalistaion (market-cap) after a gap of five months by surpassing Hindustan Unilever (HUL). The stock, eventually, ended at Rs 298 apiece, down 10 per cent. 

Shares of Maruti ended nearly 2 per cent lower at Rs 6,558 on BSE. The stock has fallen over 7 per cent in the past four trading days, after the emergence of a report suggesting the company cut production due to lower demand.

Aviation stocks rallied during the trade. SpiceJet ended 7 per cent higher at Rs 98 apiece.

GLOBAL MARKETS

Asian shares held near 6-1/2-month highs on Friday after upbeat US data and optimism in the tech sector helped calm some of the jitters sparked by the Federal Reserve’s cautious outlook on the world’s biggest economy.

Oil hovered slightly below 2019 peaks on Friday, propped up by ongoing supply cuts led by producer club OPEC and by US sanctions on Iran and Venezuela.


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Sectoral gainers and losers on NSE


Top gainers and losers on S&P BSE Sensex


MARKET AT CLOSE

The S&P BSE Sensex ended 222 points or 0.58 per cent lower at 38,165 while NSE's Nifty50 index dropped 64 points or 0.56 per cent to settle at 11,457. 

Axis Bank jumps 20% this year, analysts see more upside ahead. Here's why

The bank recently hosted an analyst day where the management reiterated its objective of delivering an 18 per cent return on equity (RoE). ROE is a measure of a company’s annual return i.e. net income divided by the value of its total shareholders’ equity. It is expressed as a percentage. READ MORE

Nifty PSU Bank index is trading 1.3% lower


Indiabulls Real Estate trading 6% lower


PFC acquires govt stake in REC for Rs 14,500 crore

State-owned Power Finance Corporation Limited (PFC) has acquired the Centre’s 52.63% paid-up share capital in Rural Electrification Corporation (REC) Limited for Rs 14,500 crore. READ MORE

GVK to aquire ACSA's stake in Mumbai airport company

GVK Power and Infrastructure Limited (GVK PIL) on Friday informed stock exchanges that its step-down subsidiary GVK Airport Holdings Limited has initiated the process to acquire 120 million shares of Mumbai International Airport Limited (MIAL). READ MORE


All the Nifty sectoral indices except Nifty Realty are trading in the red


Market check


ITC surpasses HUL to reclaim title of most valuable FMCG company in m-cap

ITC reclaimed the top stop in the list of India's most-valued fast moving consumer goods (FMCG) company in terms of market capitalistaion (market-cap) after a gap of five months by surpassing Hindustan Unilever (HUL). At 12:48 pm, ITC stood fourth with the market-cap of Rs 364,921 crore, while HUL took the fifth spot in the overall ranking with market-cap of Rs 364,466 crore, BSE data shows. READ MORE

Brokerage upgrades, REIT IPO help Prestige Estates, Phoneix Mills gain

Prestige Estates and Phoenix Mills were among the key gainers in the realty pack over the last ten days appreciating in the range of 10-23 per cent. In addition to brokerage upgrades, recent steps taken by the Goods and Services Tax council, steady commercial real estate market and good response to the maiden real estate investment trust (REIT) public offering have helped players in the commercial segment. READ MORE

New entrants 'disrupting' equity broking industry, says HDFC Securities

The equity broking industry is getting disrupted with the rapid rise of discount brokers such as Zerodha, says a note by HDFC Securities. The trend is likely to continue with the growing customer base of discount brokers and the announced entry plan of PayTM Money. READ MORE

Sectoral trends on NSE


Prestige Estates Projects gains over 9%


Top losers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
NMDC 108.00 -5.70 -5.01 353040
VA TECH WABAG 338.20 -16.85 -4.75 25498
DILIP BUILDCON 643.00 -29.25 -4.35 62419
MAHINDRA HOLIDAY 241.70 -7.85 -3.15 2122
RELIANCE CAPITAL 184.00 -5.85 -3.08 830111
» More on Top Losers

Short duration schemes are seeing an uptick in investor inflows: Experts

The fall in short-term rates is helping debt schemes (non-liquid schemes) regain some of their sheen, with investors seeing opportunity in short duration schemes. According to mutual fund (MF) players, these schemes have seen an uptick in investor flows in the last couple of months as the Reserve Bank of India’s (RBI’s) recent measures are pointing to a 'dovish' stance. READ MORE

Prabhudas Lilladher on NOCIL

Nocil is well placed to capitalise on this demand as completion of Phase 2 expansion will double its capacity (1,10,000 tons by October 2019, nearly 10% of global capacity) as global tyre players are eyeing more non-Chinese supplies. Nocil is confident of maintaining 25 per cent EBIDTA margins in the medium term despite removal of duty protection. Retain Buy with target price of Rs 252 based on 15x FY21E PER.

Check out the top gainers on BSE

SPICEJET 99.05 +7.40 +8.07
 
JUSTDIAL 637.50 +29.05 +4.77
 
RCOM 5.07 +0.23 +4.75
 
TAKE 128.80 +5.70 +4.63
 
GODREJPROP 845.00 +34.15 +4.21

(Source: BSE)

Reliance Securities on Apollo Tyres

  • We foresee Apollo Tyre’s operating performance to improve further going forward with the likely improvement in volume and product-mix. Moreover, softening commodity price would benefit in coming quarters. The company is positive on replacement demand though OEM business would remain muted for a while. 
  • Anti-dumping duty in Europe started benefitting ATL in Europe. Ramp-up at European operation and inter-transfer of production would improve its margins from the current level. 
  • We expect double-digit earnings growth of 19 per cent CAGR over FY19EFY21E on positive outlook across segments in India operations. 
  • Considering Apollo Tyres' (ATL) outperformance in tyre industry and improving market share, we maintain its P/E valuation multiple at 12x. 
  • Post recent fall, the stock’s current valuation of ~11xFY21E appears attractive and we recommend BUY on Apollo Tyre with a Target Price of Rs 250, valuing the stock at 12x FY21E EPS. 

Maruti Suzuki extends fall on production cut report; down 7% in four days

Shares of Maruti Suzuki (India) were trading lower for the fourth straight day, down 2 per cent at Rs 6,567 in intra-day trade on the National Stock Exchange (NSE). It was 4 per cent away from its 52-week low price of Rs 6,317, touched in January 28, 2019. READ MORE

EXCLUSIVE :: CLSA's Wood remains 'double-overweight' on India; sees Modi return to power

There has been $3.3 billion of net buying of Indian equities by foreign investors since an opinion poll was released on March 4, showing a big increase in support for the Bharatiya Janata Party (BJP) following the airstrikes on February 26 in Balakot in Pakistan. The BJP is now expected to get 41 of the 80 seats in India’s most populous state of Uttar Pradesh (UP), compared with the 29 seats expected by the same opinion poll in January READ MORE HERE

Christopher Wood, Managing Director & Equity Strategist, CLSAChristopher Wood, Managing Director & Equity Strategist, CLSA

Equirus Securities on Maruti Suzuki

MSIL’s volume growth has been tepid over the last eight months, and we don’t see any growth trigger for next year as well due to (a) the company’s weak model pipeline, and (b) new products from competition, which can impact hatchback and compact UV sales. Apart from Baleno (now seeing volume stabilization), other models sold through Nexa channel remains a challenge for the company.

Growth rates in North India — a significant booster in FY18 for the industry & MSIL alike — are normalizing and won’t make up for the slowdown in the South and West. We expect MSIL to deliver sub-5% volume growth in FY19 and merely 5% in FY20. We cut FY19/FY20 volumes estimates by 1%/2% and EPS by 1%/3% while revising our rating to SHORT (from REDUCE) with a Mar’20 target price of Rs 5,881 (Rs 6,065 earlier).

Maruti Suzuki Swift


 

Prabhudas Lilladher on Aurobindo Pharma

We met Aurobindo Pharma at their Hyderabad office and came back confident on management initiatives to address quality control issues and de-risking product, operational and geographical risks.  ARBP's success in achieving resolution three times in past 18 months showcased commitment and cohesive organizational structure that professionally manages processes without dependence on key personnel.

The stock trades at PE 15x and 13x of FY20E and 21E, respectively and has a few inexpensive valuations among peers. With earnings growth of 19% in FY20E and 16% in FY21E, we believe that the prospect of the company in key markets along with visibility of pipeline (including acquired businesses/products) are not yet reflected in valuations, as compared to its peers. However, we believe that a large part of valuation gap was attributed due to lack in India formulations. Factoring lack of significant presence in India, we value ARBP at 20% discount to its peers and retain TP at Rs 952 (PE 16x of FY21E). We maintain 'Buy'.

COMMENT :: Kotak Securities on US Fed meeting

Growth concerns and low inflation have prompted the Fed to signal status quo through 2019 and also fade the balance sheet contraction. While this could lead to some weakness in the dollar in the near term, sharp gains in EM currencies may be capped because of global growth uncertainties. With the Fed on hold, the RBI can focus solely on domestic factors. We continue to see scope for further 25-50 bps of rate cuts in CY2019 given the benign domestic growth-inflation dynamics.

Heatmap: S&P BSE Sensex


Hindustan Petroleum down over 2%


MARKET COMMENT :: Ajay Bodke, CEO, PMS Prabhudas Lilladher

If global crude oil prices remain rangebound then a weakening USD, expectations of aggressive monetary easing by the RBI, end of the provisioning cycle for NPAs by the banking system & likely recoveries over the next 2 years aiding surge in profits as also revival in corporate earnings in high-teens on a conservative basis over FY 20 & FY21 will spur strong performance by Indian equities. A decisive mandate on 23rd May 2019 by the Indian electorate will strongly bolster the upward trajectory.

GVK Power to acquire additional 10% equity share at Rs77/share in MIAL; stock up over 1%


Fitch cuts India GDP growth forecast for FY20 to 6.8% from previous 7%

Fitch Ratings Friday cut India's economic growth forecast for the next financial year starting April 1, to 6.8 per cent from its previous estimate of 7 per cent, on weaker than expected momentum in the economy.

Larsen & Toubro nears 52-week high after Mindtree stake buy; stock up 3%

Shares of Larsen & Toubro (L&T) rose 3 per cent to Rs 1,415 in intra-day trade on Friday, extending their Wednesday gain on the BSE, even as brokerages firm maintain ‘buy’ rating on the stock after the company proposed to acquire IT firm Mindtree. READ MORE






Momentum Picks by ICICI Securities


Motilal Oswal Financal Services on NBFCs

We analyzed the liability trends of some leading NBFCs, with a special focus on the deposit franchise. Over the past four years, Bajaj Finance (BAF) has outperformed peers, with a CAGR of 87% in the number of depositors (accounts) and 145% in deposits. PNB Housing Finance (PNBHF) and Shriram Transport Finance (SHTF) have also performed well, with a deposit CAGR of 64%/37%. HDFC has been treading steadily, and its depositor base of nearly 2m is ~14x of the next largest competitor. Only Mahindra & Mahindra Fin Services (MMFS) has witnessed a steady reduction in its depositor base and dependence on deposits.

Nifty Realty index is trading over 2% higher


Kansai Nerolac Paints slips nearly 5% after CLSA downgrades to sell

Shares of Kansai Nerolac Paints slipped as much as 4.67 per cent to Rs 438.95 apiece on BSE in the early trade on Friday after news reports said global brokerage firm CLSA has downgraded the stock to sell from underperform. READ MORE

Aviation stocks extend gain; SpiceJet surges 33% in two days

Shares of InterGlobe Aviation, parent of IndiGo, and SpiceJet rallied up to 14 per cent in early morning trade on Friday, surging up to 33 per cent in past two days on market share gain in the month of February. READ MORE

Primer: All you wanted to know about tax breaks for selling multiple houses

Buying and selling properties is part and parcel of any taxpayers life. It is not uncommon to purchase or sell houses either for monetary gains or to move into a bigger space. READ MORE

Market check


Bharti Airtel up over 2%


Opening gainers on BSE Sensex

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
SPICEJET 100.80 9.15 9.98 5906765
REL. COMM. 5.32 0.48 9.92 10864546
OBEROI REALTY 512.50 16.15 3.25 452670
BHARTI AIRTEL 344.50 10.75 3.22 108188
ECLERX SERVICES 1168.60 34.25 3.02 5251
» More on Top Gainers

Most active stocks by volume (BSE500)

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
REL. COMM. 5.32 0.48 9.92 10874814
SPICEJET 99.60 7.95 8.67 6276348
UPL 938.00 3.25 0.35 2359678
PUNJAB NATL.BANK 94.60 1.05 1.12 1280787
LAK. VILAS BANK 64.85 1.15 1.81 1057559
» More on Most Active Volume

Larsen & Toubro gains over 2%


Jet Airways rises over 2%


Nifty IT index is trading around 0.5% lower


Mindtree down almost 1% after board decides to meet again


Rupee opens 19 paise higher at 68.64 against US dollar

The rupee opened 19 paise higher at 68.64 against the US dollar on Friday. The domestic unit on Wednesday recovered by 13 paise to close at 68.83 amid sustained buying by foreign investors in domestic equity markets and lower crude prices. READ MORE

Indiabulls Ventures up over 2.4%


SpiceJet rises 10% in early trade


Nifty Bank index nears 30,000 levels


Sectoral gainers and losers on NSE


FIRST TRADE


MARKET AT OPEN

At 09:16 am, the S&P BSE Sensex was trading 80 points or 0.21 per cent higher at 38,466.37 while NSE's Nifty50 index was ruling at 11,546, up 25.50 points or 0.22 per cent.

Market at pre-open


Rupee opening

Rupee opens strong at 68.64/$ vs its previous close of 68.82 against the US dollar

Stocks in focus

Mindtree: The company's board will meet again on March 26. No decision was taken on a proposed share buyback in March 20 meeting, the firm said.
 
SpiceJet: According to reports, the government has offered SpiceJet to take control of grounded Jet Airways aircraft. READ MORE

Stock calls by Tradebulls Securities

Stock: JSW STEEL FUTURE
Reco: SELL
CMP: Rs 283.50
 
Occurrence of a ‘Bearish Belt Hold’ formation post the Engulfing pattern confirmed the resistance zone around Rs 300. READ MORE

Bulk deals on NSE as on Wednesday

20-Mar-2019 AKG AKG Exim Limited KESHAV SHARES & STOCKS LTD. BUY 56,000 33.39 -
20-Mar-2019 AKG AKG Exim Limited KESHAV SHARES & STOCKS LTD. SELL 4,000 35.50 -
20-Mar-2019 AKG AKG Exim Limited PIYUSH CHANDRAKANT RATHI SELL 52,000 33.21 -
20-Mar-2019 CARBORUNIV Carborundum Univ Ltd SUNDARAM MUTUAL FUND A/C SELECT MIDCAP BUY 13,04,648 357.55 -
20-Mar-2019 CREATIVE Creative Peri & Dist Ltd. MANJU JAYANTILAL LODHA BUY 76,800 114.92 -
20-Mar-2019 CREATIVE Creative Peri & Dist Ltd. NAYSAA SECURITIES PRIVATE LIMITED SELL 76,800 114.92 -
20-Mar-2019 GODHA Godha Cabcon Insulat Ltd SHRESTH BUILDERS PRVT LTD SELL 1,00,000 18.40 -
20-Mar-2019 HEXATRADEX Hexa Tradex Limited APMS INVESTMENT FUND LTD SELL 4,66,086 21.90 -
20-Mar-2019 HEXATRADEX Hexa Tradex Limited ERISKA INVESTMENT FUND LTD BUY 4,66,086 21.90 -
20-Mar-2019 IRISDOREME Iris Clothings Limited BINABEN SAMIRKUMAR PATEL BUY 24,000 144.75 -

Click here for the full list

SGX Nifty

At 8:15 AM (IST), Nifty futures on Singapore Exchange (SGX) were trading at 11,580, down 12 points, indicating a flat start for the domestic market

Asian Markets check

Asian shares advanced on Friday after upbeat data and optimism in the tech sector lifted Wall Street stocks. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.25 per cent while Japan’s Nikkei gained 0.3 per cent.

Wall Street check

An Apple-led tech rally pushed Wall Street higher on Thursday as jitters over the Federal Reserve’s forecast of an economic slowdown were calmed by upbeat economic data.
 
The Dow Jones Industrial Average rose 216.84 points, or 0.84 per cent, to 25,962.51, the S&P 500 gained 30.65 points, or 1.09 per cent, to 2,854.88 and the Nasdaq Composite added 109.99 points, or 1.42 per cent, to 7,838.96.
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