Equity markets ended sharply lower on Friday with the Sensex settling at 37,869.23, down by 155.14 points, or 0.41 percent lower, while the Nifty closed at 11,429.50, declinnig 0.36 percent or by 41.20 points. After starting on a flat note, the BSE Sensex and the NSE Nifty 50 stayed weak through the day amid profit-booking in bank, financial, realty stocks. Index heavyweight stocks Reliance Industries and HDFC twins traded weak throughout the trading session, further weighing in on markets. Here are the main highlights and updates from the markets today:
Aug 10, 2018
Closing Bell: Sensex, Nifty end sharply lower
Equity markets ended sharply lower on Friday snapping their five-day winning streak. The Sensex settled at 37,869.23, down by 155.14 points, or 0.41 percent lower, while the Nifty closed at 11,429.50, declinnig 0.36 percent or by 41.20 points. The silver lining is that Nifty still holds 11,400 mark, while the Sensex has remained positive for the whole week. Nifty Bank fell by 196 points, with the SBI alone contributing 106 points to the downside. Among other sectoral indices, Nifty PSU Bank lost four percent. Overall market breadth remains in favour of declines with the advance-decline ratio at 1:2. Only four Nifty Bank stocks closed in the green with Kotak Mahindra Bank as the top gainer. Eicher Motors surged 5.7 percent on strong first quarter earnings. Oil makreting companies, IOC, BPCL, HPCL, gain in the last hour to close above their 50 day moving average. Tata Motors fell after JLR reports multi-year low retail sales. Overall, the Sensex gained 0.8 percent for the week, Nifty by 0.4 percent and Nifty Bank 1.5 percent for the week.
Aug 10, 2018
SBI, Reliance, HDFC twins, ICICI Bank among top losers
Aug 10, 2018
Gail shares slip 3.5% after Q1 results
GAIL India shares slip by 3.50 percent to Rs 362.40, losing Rs 13.15 on the bse AT 3.12 pm. The company reported a 23.3 percent jump in net profit in June quarter today. Meanwhile, the Sensex was trading lower by 153 points, or 0.40 percent, to 37,871, while the Nifty was lower by 11,433, down by 37.60 points, or 0.33 percent.
Here's a snapshot of June quarter results declared so far
Talwalkars Life Q1 consolidated net profit up 20.6 percent at Rs 9.1 crore vs Rs 7.6 crore (YoY); consolidated revenue up 12.3 percent at Rs 54 crore vs Rs 48 crore (YoY). EBITDA up 13.6 percent at Rs 25.2 crore vs Rs 22.2 crore (YoY); EBITDA margin at 46.7 percent vs 46.2 percent (YoY).
Hester Bio Q1 net profit up 59.7 percent at Rs 9.9 crore vs Rs 6.2 crore (YoY); Revenue up 33.6 percent at Rs 38.3 crore Vs Rs 28.6 crore (YoY).
Dynamatic Tech Q1 net profit up 12.6 percent at Rs 7.8 crore Vs Rs 8.9 crore (QoQ); Revenue up 1.9 percent at Rs 379 crore vs Rs 372 crore (QoQ); EBITDA down 13.3 percent at Rs 41.4 crore vs Rs 47.7 crore (QoQ); EBITDA margin at 10.9 percent vs 12.8 percent (QoQ)
Kirloskar Oil Q1 net profit up 12.1 percent at Rs 49.6 crore Vs Rs 44.3 crore (QoQ); Revenue up 3.7 percent at Rs 820 crore vs Rs 820 crore vs Rs 791 crore (QoQ); EBITDA up 3.7 percent at Rs 81.4 crore vs Rs 78.4 crore (QoQ); EBITDA margin at 9.92 percent vs 9.91 percent (QoQ).
Bosch Q1 automotive products EBIT up 61.5 percent at Rs 560.3 crore Vs Rs 347 crore (YoY)
Nitco Tiles Q1 net loss at Rs 14.8 crore vs loss of Rs 9.3 crore (YoY); Revenue down 27.2 percent at Rs 122.8 crore vs Rs 168.6 crore (YoY); EBITDA loss at Rs 2.5 crore vs EBITDA profit of Rs 0.2 crore (YoY).
Indo-National Q1 net profit up 54.6 percent at Rs 4.4 crore vs Rs 2.8 crore (YoY); Revenue up 31.6 percent at Rs 74 crore vs Rs 56 crore (YoY).
Apollo Hospitals Q1 net profit up 71 percent at Rs 60.2 crore vs Rs 35.2 crore (YoY); Revenue up 15.8 percent at Rs 1,910 crore vs Rs 1,650 crore (YoY); EBITDA up 30.7 percent at Rs 226.6 crore vs Rs 173.4 crore (YoY); EBITDA margin at 11.9 percent vs 10.5 percent (YoY).
SBI Q1 net loss at Rs 4,876 crore vs CNBC-TV18 poll of Rs 448 crore profit; SBI Q1 other income at Rs 6,679 crore vs Rs 12,495 crore (QoQ).
Equity markets extended losses on Friday after the State Bank of India announced its first quarter results for the ongoing fiscal. The Sensex fell 136 points, or 0.36 percent, to 37,887, while the NIfty also lost 39 points, or 0.34 percent, to 11.431.
SBI turns green post June quarter results, PSU Bank in the green
Shares of SBI edged up after the country's largest public sector bank announced its first quarter results on Friday, lifting PSU Bank as well. SBI shares traded at Rs 322.40, rising by 1.88 percent on the BSE at 2.14 pm. Nifty PSU Bank was trading higher by 0.62 percent. As many as five stocks - PNB, SBI, Andhra Bank, Allahabad Bank, Oriental Bank of India - traded in the green against 7 declines on the indice. In early trade, only PNB was trading positive. SBI posted a net loss of Rs 4,876 crore and NII at Rs 21,798 crore in Q1 results.
Meawhile, the BSE Sensex was trading at 37,971.42, still lower by 52.95 points, or lower 0.14 percent at 2.19 pm, while the Nifty 50 is at 11,460.75, down by 9.95 points, or lower by 0.09 percent.
Aug 10, 2018
Nifty Bank down by over 2% after Thursday's surge
Aug 10, 2018
Shree Cement edges up, bags grade 'G7' coal linkage order in Chhattisgarh
Shree Cement trades marginally up by 0.54 percent to Rs 17,366.40, gaining by Rs 92.70 on the BSE at 1.25 pm. The company on Friday said it has bagged 'Grade7' coal linkage of 27,700 T/annum at Rs 2,311/T from Coal India in Chhattisgarh, winning premium for coal linkage at Rs 130/Tonne, 5.63 percent of notified price.
The Sensex trades lower by 82.52 points, or 0.22 percent, to 37,942, while the Nifty 50 is down by 26.20 points, or 0.23 percent, to 11,444 at 1.20 pm. Nifty Bank is lower by 0.40 percent, while PSU Bank is lower by 2.05 percent.
Eicher Motors' shares rise on strong April-June quarter results
Shares in Eicher Motors Ltd rise as much as 4.3 percent to Rs 28,620 after the automaker posted about 25 percent jump in June-quarter profit on Thursday. Shares traded at Rs 28,728.10, gaining Rs 1,243.85, or rising by 4.53 percent on the BSE at 12.20 pm.
Nomura believes Eicher is on track to achieve guidance. The key upside risk is success of new 650cc models which will be launched in November this year. Nomura has cut price target to Rs 29,344 from Rs 32,743, and maintains “neutral” rating. Downside risks include cost hike due to ABS (anti-lock braking system) and BS-6 (Bharat stage emission standard) that may impact demand to some extent like in Karnataka and success of competitive launches by Mahindra-Jawa, Bajaj-Triumph and Harley Davidson, according to Nomura.
Citi maintains “buy” rating, saying do not change volume estimates for Royal Enfield but cut margins by 80-130 bps due to higher staff costs and slight commodity cost pressures. Citi has cut price target to Rs 33,800 from Rs 36,500.
Morgan Stanley believes stock set to outperform as new bikes gets launched in Sept 2018 and monthly run rate inches up; keeps ‘overweight’ rating with price target of Rs 34,104.
More than 69,000 shares traded vs 30-day average of 52,456 shares. (Reuters)
Aug 10, 2018
The Patanjali mystery: Investments in a string of businesses with zero operations
Patanjali has as many as 21 private limited companies and 26 partnership firms listed under ‘disclosures of transactions between related parties’ where it has a controlling stake. Some subsidiaries were not initially incorporated by PAL but became one through acquisition — through a multi-layered transaction. Several of these affiliates are neither related to the Patanjali Group nor associated with the principal business activities of the group companies.
Aug 10, 2018
AU Small Finance Bank jumps 10% on block deals
Shares of AU Small Finance Bank were trading at Rs 697.90, rising by 8.44 percent, or adding Rs 54.30 in value to the stock, on the BSE at 12.10 pm. Earlier, the stock had jumped 10 percent to Rs 711 on Friday following multiple block deals.
Jet Airways shares plunges 15% after board defers Q1 results
Shares of Jet Airways plunged as much as 15 percent to over a three-year low on Friday after the carrier postponed its first-quarter earnings. Shares traded at Rs 279.15, down by 7.47 percent on the BSE at 11.24 am.
Aug 10, 2018
Ekta Batra’s quick take on Aurobindo Pharma results
Aurobindo reported a mixed quarter. Revenue growth was above estimates of 11 percent at 15 percent YoY growth. Margins however disappointed falling to 18 percent even adjusted for forex, versus expectations of 21-22 percent. Profit declined due to poor operating leverage. The positives however was the growth in the US business which was up 11 percent YoY & almost 9 percent QoQ which saw an uptick versus Q4 as the base business picked up. The company was also quite bullish on the injectable business. What stood out the most was the guidance on the injectable biz. The company expects approvals to ramp up as the Unit 4 EIR has been received. Growth in Injectable Biz estimated at 30 percent in FY19. Shares of Aurobindo Pharma traded at Rs 603.50 at 11.05 am on the BSE, marginally up by 0.43 percent.
Opening Bell: Sensex, Nifty open on flat amid weak global cues
Indian markets opened flat amid weak global cues and selling pressure seen in banks and financial stocks. The Indian rupee opening weak against the US dollar also weighed on sentiments. The BSE Sensex opened at 38,050 and soon fell nearly 78 points to 37,946.55, lower by 0.20 percent. The NSE Nifty 50 traded at 11,463, lower by 7.35 points, or 0.06 percent.
Aug 10, 2018
Indian rupee opens at 68.83 against the US dollar
The Indian rupee opened weak against the US dollar at 68.83. The home currency had closed at 68.87 on Thursday.
Karnataka cabinet gives nod to waiving over Rs 9,440 crore cooperative farm
The Karnataka cabinet today gave its approval to waiving Rs 9,448.61 crore existing farm loans in respect of cooperative banks, chief minister H D Kumaraswamy today said. At today's cabinet meeting, approval has been given to waiving existing crop loans up to Rs 1 lakh borrowed from the cooperative sector, Kumaraswamy said. "It is estimated to be Rs 9,448.61 crore, about 20.38 lakh farmers who have obtained loans up to July 10 this year would benefit from this," he told reporters.
Here's what brokerages are saying on specific stocks
Axis Cap upgrades BUY rating on Eicher Motors at a TP of Rs 32,249.
Royal Enfield delivered steady performance, in-line with estimates, says Jefferies on Eicher Motors post its Q1FY19 results; BUY at a TP of Rs 34,700.
Q1 earnings in-line, says Axis Cap on Bharat Forge post its Q1FY19 results; BUY at a TP of Rs 760.
Axis Cap downgrades Page Industries to SELL from HOLD rating at a TP of Rs 27,000.
Q1 EBITDA slightly exceeded our/consensus estimates, says Axis Cap on JSPL after company reported Q1FY19 results; BUY at a TP of Rs 215.6.
Revenue, EBITDA & profit came in below expectations, says Jefferies on Future Retail; Maintains HOLD at a TP of Rs 585.
ICICI Securities maintains SELL rating on Bajaj Electricals at a TP of Rs 434.
Jefferies on PNB Housing post its Q1FY19 results, says loan growth was strong; BUY at a TP of Rs 1,600.
Expect market share to remain sticky going forward, says Jefferies on Natco Pharma; BUY at a TP of Rs 1020.
Deutsche Bank maintains BUY rating on MRF at a TP of Rs 85,500.
Deutsche Bank on Cummins India says mixed recovery on low expectations; BUY at a TP of Rs 840.
Q1 results strong as volume grew 12% YoY, says Credit Suisse on GSK Cons; Maintains OUTPERFORM at a TP of Rs 8,600.
Axis Cap on Varun Beverages retains BUY rating at a TP of Rs 900.
Weak performance on margins; mediocre outlook & very high valuations, says Credit Suisse on Thermax; Maintains UNDERPERFORM
Aug 10, 2018
SEBI should seek power to intercept calls, says Committee
An expert committee on "Fair Market Conduct" has recommended that Security and Exchange Board of India (Sebi) should seek powers to intercept calls among other steps to curb cases of insider trading, front running or market manipulation.
Japan second-quarter GDP growth beats expectations
Japan's economy grew more than expected in the second quarter, helped by improved household spending and rebounding from a contraction in the previous quarter, but global trade tensions loom as major risks to the export and investment outlook.