Closing Bell: Sensex, Nifty trim losses to end flat; IT stocks lead gains##Closing Bell: Sensex, Nifty trim losses to end flat; IT stocks lead gains
Indian shares trimmed losses in the last hour of trade to end flat on Tuesday. Losses in banking and auto stocks were capped by gains in IT and metal stocks. The BSE Sensex settled at 39,031, down 36 points, while the broader NSE Nifty50 ended at 11,748, falling 6 points. Broader markets underperformed benchmark indices with the Nifty Midcap slipping 1 percent and the Nifty smallcap down 1.5 percent for the day. JSW Steel, ZEE, IOC, HCL Tech, and Tata Steel were the top gainers on the Nifty, while YES Bank, Indiabulls Housing, IndusInd Bank, Hero Moto Corp, and Bharti Infratel fell the most on the index. Yes Bank’s shares fell 30 percent in their worst day since September 21, 2018. The stock hit its lowest level since December 11, 2018 in heavy trading, with more than 147 million Yes shares traded, compared to their 30-day average of 35.8 million shares. Financial companies accounted for most of the weakness on the Nifty. State-run lenders were fell the most, with Nifty PSU Bank index falling 3.3 percent. Nifty Bank and Nifty Private Bank indices also fell 1 percent and 1.5 percent, respectively. Bucking the broader trend, IT stocks advanced with HCL Technologies adding 3.7 percent and Infosys gaining 2 percent. Nifty IT was up 1.2 percent.
HDFC Life expects margins to improve 30% in long-term##HDFC Life expects margins to improve 30% in long-term
HDFC Standard Life Insurance on Friday reported a 5 percent rise in standalone net profit to Rs 364.01 crore for the fourth quarter ended March 31. It had registered a net profit of Rs 346.84 crore in the corresponding quarter of 2017-18.
Discussing the business outlook going forward Vibha Padalkar, MD and CEO, HDFC Life, said they see a smooth upward curve on premium growth in coming fiscal. In FY20, margins would go up by 20 basis points due to improvement in term business, she said, adding that there is scope for further improvement in margins to 30 percent in the long-term. READ MORE
Why these analysts are still bullish on YES Bank##Why these analysts are still bullish on YES Bank
Many analysts have downgraded Yes Bank's rating after it reported huge losses in the fourth quarter of the fiscal year 2018-19. However, few analysts are still bullish on the stock. YES Bank reported a Rs 2,400 crore loss before tax and a net loss of Rs 1,500 crore in Q4FY19, mainly due to a reversal of fees and contingent provisions (Rs 2,100 crore).
Motilal Oswal maintained "buy" on YES Bank as it believes that the private lender's asset quality will improve on the bank's strategy shifting toward building a strong retail franchise. The brokerage house believes that corporate governance and balance sheet growth is likely to moderate.
"Expects ~50% of the below investment grade book to slip in coming quarters. The bank will improve its PCR to 60% in the coming years," the brokerage added. READ MORE
Shares of Reliance Capital, Reliance Home Finance fall on ICRA downgrade, stake sale report##Shares of Reliance Capital, Reliance Home Finance fall on ICRA downgrade, stake sale report
Shares of Reliance Capital fell over 11 percent on Tuesday after the rating agency ICRA has revised its ratings for Anil Ambani-led Reliance Capital and its subsidiaries from A2 to A4 with negative implications. According to news reports, the company is also looking to raise funds by selling up to 51 percent stake in its non-banking financial companies — Reliance Home Finance and Reliance Commercial Finance as well as in two media companies — Codemasters and Prime Focus. Reliance Home Finance also tanked over 18 percent on this report. READ MORE
63 Moons Technologies stock hits upper circuit as Supreme Court upholds merger with NSEL##63 Moons Technologies stock hits upper circuit as Supreme Court upholds merger with NSEL
Shares of 63 Moons Technologies rose 10 percent after Supreme Court’s judgement against the government decision to merge 63 Moons with crisis-ridden National Spot Exchange Limited (NSEL). The apex court allowed an appeal against a Bombay High Court order that upheld the merger decision.
"We have allowed the appeal," said a bench of Justice Rohinton Fali Nariman and Justice Vineet Saran in their judgment setting aside the high court order. READ MORE
Yes Bank was a growth story, will continue to remain so, says CEO Ravneet Gill
Eveready Industries hits lower circuit limit on credit ratings downgrade##Eveready Industries hits lower circuit limit on credit ratings downgrade
Eveready Industries shares hit lower circuit limit after the rating agency India Ratings and Research (Ind-Ra) downgraded the company’s long-term rating to 'IND A+' from 'IND AA-' with ‘negative’ outlook. Ind-Ra in its report said, “ The downgrade reflects Eveready’s continued high net leverage and weakened liquidity amid continuous financial support extended to group companies and delayed asset monetisation.” READ MORE
CLSA expects Nifty to pull back to 11,200-11,300 in near-term##CLSA expects Nifty to pull back to 11,200-11,300 in near-term
Brokerage firm CLSA on Tuesday said the bank index is likely to pull back Nifty towards 11,200-11,300 points in the near -term. “The bank index from a longer-term perspective is the most constructive breakout that we have seen through 2018 and 2019 but on the short-term basis, it is likely to be the one that pulls the Nifty back towards 11,200 area,” said Laurence Balanco of CLSA. READ MORE
Market pricing in hope of stable govt, better liquidity scenario, says Kotak AMC##Market pricing in hope of stable govt, better liquidity scenario, says Kotak AMC
Expectations of continued capital inflows and a stable government after the 2019 general elections are among the key factors that the Indian market is pricing in currently, said Nilesh Shah, managing director, Kotak Mahindra AMC in an interview with CNBC-TV18.
An improvement in the liquidity scenario, possible interest rate cuts by the Reserve Bank of India and a better transmission of credit are also driving the market sentiment, he said, adding that if there is any disconnect in terms of liquidity, to rates, to transmission to flows then certainly market looks little bit ahead of its fair value. READ MORE