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Closing Bell
The benchmark BSE Sensex extended its losing spree for the seventh straight day on sustained selling from domestic investors amid weakness in other Asian markets and slide in the rupee.
Moreover, the strengthening of crude oil prices also dampened the sentiments.
The Sensex saw volatile movement and had swung in a 511-point range intraday. After opening marginally higher at 35,985.68, the index ranged between 36,022.57 and a low of 35,510.97,
Finally, the 30-share index settled at 35,808.95, down by 67.27 points. It ended yesterday at 35,876.22
The NSE Nifty too fell 21.65 points, or 0.20 per cent, to 10,724.40.
Sectoral indices such as Healthcare, Metal, Auto, Banking, Metals and Consumer Durables moved into the negative terrain, falling between 0.50 per cent and 2.50 per cent.
Advances/Declines on BSE
LARGECAP STOCKS ON BSE
BSE SECTORAL INDICES
Broker's Call: Prestige Estate (Accumulate)
Elara Capital
CMP: ₹197.05
Target: ₹235
Prestige Estates Projects reported revenue of ₹1,100 crore, down15 per cent y-o-y, affected by IND AS 115 implementation in Q1FY19. In absolute terms, EBITDA grew by 35 per cent y-o-y to ₹340 crore as projects booked (Kingfisher Tower & Royale) in Q3 were high margin in nature. Pre-sales was up 79 per cent y-o-y and down 17 per cent q-o-q to ₹940 crore (Prestige’s share), primarily aided by existing projects and continued momentum in Jindal City project launched in Q4FY18.
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Real estate: On revival mode
Demand for office space steady, residential segment robust
Broker's call:
ICICI Securities
Heidelberg Cement (Buy)
Heidelberg Cement reported a strong set of Q3FY19 numbers, beating estimates on all fronts. Revenues increased 15.4% YoY to Rs 558.4 crore led by a 6.3% rise in volumes and 8.5% growth in realisations
The EBITDA margin increased 537 bps YoY to 21% (vs estimate of 20.5%) mainly led by healthy realisations. EBITDA/tonne increased 46% YoY to Rs 905/t (vs. estimate of Rs 870/t)·
Adjusted PAT increased 81.6% YoY from Rs 32.9 crore to Rs 59.8 crore (vs. estimate of Rs 53.9 crore) in Q3FY19 mainly led by a better operating performance
The company has consistently put up a good performance over the past year led by a healthy pricing environment, higher presence in the trade segment along with steps taken by the management to lower the power cost through WHRS.
With firm pricing in the central region along with a decline in prices of major fuels like petcoke, it is expected that a healthy margin trajectory to continue, going forward, as well.
Consequently, BUY with a target price of Rs 165 [i.e. valuing at 8x FY20E EV/EBITDA (@20% discount to its peers), $125/tonne on capacity of 5.4 MT]. As the company is expected to reach its peak utilisation levels by FY20E, growth would moderate, going forward, unless it is addressed with the new capacity.
BSE SECTORAL INDICES
BSE SECTORAL INDICES
Largecap stocks on BSE
Broker's Call
ICICI Securities
Indian Hotels (BUY)
Indian Hotels reported a good set of Q3FY19 numbers. Consolidated revenues increased 10.5% YoY to Rs 1,323.5 crore mainly led by healthy turnaround of international segment with Revenue PAR growth of 9.4% YoY. RevPAR of domestic segment was also healthy with growth of 6.6% YoY vs. industry growth of 2% YoY
EBITDA margin improved 192 bps YoY to 25.4% YoY mainly led by an improved performance of the international segment with margin expansion of 294 bps YoY to 14.4%. Domestic segment margins also remained healthy at 32.5%, (up 215 bps YoY)
PAT of Rs 170 crore included exceptional gain of Rs 41 crore with respect to currency derivative contract with adjusted profit of Rs 144.7 crore also stayed better than estimated net profit of Rs 116.5 crore
The domestic hotel industry is expected to witness robust growth in coming years led by higher occupancy, limited capacity addition and rise in spending by domestic travellers.
Indian Hotels, one of the largest domestic hotel players, will be a key beneficiary of a turnaround in the industry. The company plans to add 15-20 new hotels annually through management contracts that will further boost topline.
In addition, cost rationalisation and RevPAR growth is expected to drive margins over FY18-20E.
Hence, ICICI Securities have a positive view on the stock and maintain BUY rating on the stock with a revised target price of Rs 165/share (i.e. valuing at EV/room of Rs 2.5 crore/room and 21x FY20E EV/EBITDA).
MIDCAP LOSERS ON NSE
NIFTY NEXT 50 LOSERS
Nifty Next 50 Losers
Nifty 50 February Futures (10,670): Sell in rallies with a fixed stop-loss at 10,710
Both, negative global cues and domestic weakness made the Sensex and the Nifty start the session in red. Subsequently, the benchmark indices continued to trend downwards, witnessing selling pressure. The Nikkei 225 has slumped over 1 per cent to 20,900 levels and the Hang Seng index has tumbled 1.89 per cent to 27,895 levels in today's session.
NIFTY FEB FUTURES QUOTE
1.35 pm
Largecap Stocks on BSE
TOP GAINERS ON NSE
TOP GAINERS ON NSE
TOP LOSERS ON NSE
TOP LOSERS ON NSE
Shares of Sun Pharma were down nearly 5 per cent at Rs 419.85 on the BSE today.
Sun Pharmaceutical Industries has said that it was making a few operational changes involving its domestic distributor for finished medicines and auditor of its subsidiaries, among others.
Sun said last Tuesday said that it has “transitioned” the distribution of its domestic formulations business from Aditya Medisales Ltd (AML), its current distributor, to a wholly owned subsidiary of Sun Pharma. The change will become effective by the first quarter of FY20, after regulatory approvals were received.
The company has reported a nearly four-fold jump in its consolidated net profit at Rs 1,241.85 crore for the quarter ended December 31, 2018.
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But some analysts question why this disclosure was being made only after much prodding.
Largecap stocks on BSE
MID-SESSION
The BSE benchmark Sensex plunged 316 points and was quoted at 35,559.43 due to heavy selling from domestic institutions and investors across all sectors, mainly taking cues from other Asian markets amidst sliding rupee and strong crude prices.
On the NSE, the Nifty too tumbled 108 points to 10,637.50.
Sectors that traded weak were Auto, Banking, Healtcare, IT, Metal and Realty. However, Oil & Gas held firm and was trading in the positive territory. The BSE Oil & Gas was up 126.70 points or 0.98% at 13,104.68.
LARGECAP STOCKS ON BSE
Largecap stocks on BSE
Dr Reddy's posts sharpest intra-day loss in over 17 yrs
Shares of Indian drugmaker Dr.Reddy's Laboratories plunged as much as 23 per cent to ₹2,065.30 on the BSE, in their biggest intraday per cent loss since Oct 15, 2001
Jefferies says 11 observations under Form 483 on the company's Bachupally manufacturing unit includes four repeat observations, including one repeated from 2015 and 2017.
Jet Airways rises in volatile trade; company approves rescue deal to plug $1.2 billion gap
Shares of Jet Airways Ltd, reverse early losses to gain as much as four per cent in volatile trade.
After the market hours on Thursday, the board said it approved a rescue deal which will make its lenders its largest shareholders and fix a near ₹85 billion ($1.19 billion) funding gap.
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Jet Airways poised to get emergency loan
The fund infusion would come as a lifeline for Jet Airways, that has defaulted on interest payments, delayed salaries and grounded multiple aircraft in its struggle to stay afloat
Q3 Earnings Update:
* ONGC (QoQ): Revenue down 1.1 % at INR 276.94bn. Net profit flat at INR 82.62bn versus INR 82.64bn. Ebitda up 5 % at INR 165.71 bn. Margin at 59.84 % versus 56.41 %. Net realisation at USD 66.38/bbl versus USD 73.07/bbl.
* Jet Airways (YoY): Revenue up 1 % at INR 61.48 bn. Net loss at INR 5.87bn versus net profit at INR 1.65bn. Ebitda down 54.3 % at INR 4.59bn. Margin at 7.5 % versus 16.5 %.
* Nestle India (4QCY18, YoY): Revenue up 11.4 % at INR 28.97bn. Net profit up 9.6% at INR 3.42 bn. Ebitda up 3.2 % at INR 5.50 bn. Margin at 19 % versus 20.5 %.
* JK Tyre & Industries (YoY): Revenue up 28.6 % at INR 27.30bn. Net profit up 2.5 times at INR 267mn. Ebitda up 24.5 % at INR 2.65bn. Margin at 9.7 % versus 10 %.
* Deepak Fertilizers and Petrochemicals (YoY): Revenue down 11.6 % at INR 14.53bn. Net profit down 77.6 % at INR 122mn. Ebitda down 29.1 % at INR 1.07bn. Margin at 7.4 % versus 9.2 %.
* Mcleod Russel (YoY): Revenue down 18% at INR 4.56bn. Net profit down 20.6 % at INR 536mn. Ebitda down 88.9 % at INR 58mn. Margin at 1.3 % versus 9.4 %.
* Glenmark Pharma (YoY): Revenue up 15.9 % at INR 25.55 bn. Net profit up 15.2 % at INR 1.07bn. Ebitda up 34.7 % at INR 4.34bn. Margin at 17 % versus 14.6 %.
* Voltas (YoY): Revenue up 8.5 % at INR 14.92bn. Net profit down 18.7 % at INR 809mn. Ebitda up 1.24 % at INR 1.15bn. Margin at 7.8 % versus 8.3 %.
* GSK Consumer Healthcare (YoY): Revenue up 7.4 % at INR 11.16bn. Net profit up 35.1 % at INR 2.21bn. Ebitda up 14.8 % at INR 2.38bn. Margin at 21.4 % versus 20 %.
* Shree Renuka Sugars (YoY): Revenue down 37.9 % at INR 10.92bn. Net profit at INR 686mn versus net loss of INR 22.94 bn. Ebitda up 2.3 times at INR 1.19bn. Margin at 11 % versus 3 %.
* Ashok Leyland (YoY): Revenue from operations in Q3 slipped 12 % to INR 63.25 bn YoY as sales volumes during the quarter dropped 6.1 % YoY and 15.8 % QoQ. EBITDA (earnings before interest, tax, depreciation and amortisation) dropped 22.6 % to INR 6.49bn and margin contracted 140 bps to 10.3 % compared to year-ago. Profit during the quarter declined to INR 3.80bn from INR 4.85 bn in same period last year due to lower sales performance and lower other income.
BSE SECTORAL INDICES
Markets were dragged lower by automobile, healthcare and metal stocks on fresh selling by domestic institutions.
The Sensex fell 249 points or 0.70% at 35,627.26. The index touched an intraday low of 35,578.27 in early trade.
The Nifty 50 index too lost 95.20 points or 0.89% at 10,650.85.
The market breadth, indicating the overall health of the market, was weak.
On the BSE, out of 2,205 scrips traded, decliners doubled in numbers as compared to advancers. The number of decliners were higher at 1,398 against 688 shares that advanced.
Large-cap stocks
Va Tech Wabag jumps on Rs 520-cr contract
Shares of Va Tech Wabag were trading higher by nearly 1 per cent or Rs 2.65 at Rs 293.55 on the NSE today
The company said it has secured Rs 520-crore worth order from Jajmau Tannery Effluent Treatment Association (JTETA) towards engineering, construction and operation & maintenance of a 20 MLD Common Effluent Treatment Plant (CETP) for Jajmau Leather Cluster in Uttar Pradesh.
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VA Tech WABAG bags ₹ 520 cr order from Jajmau Tannery
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BUY ONGC if stock climbs above ₹135 levels
₹132 • ONGC
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ONGC net profit jumps 65% in Q3
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Sell TCS if stock declines below ₹2,022 levels
₹2044 • TCS
BSE AUTO INDEX
AUTO STOCK PRICES
Amtek Auto: Eyes on quarterly results
The board of directors of Amtek Auto will meet on Friday to consider the financial results for the quarter and nine-month period ended December 31, 2018. READ MORE
10.25 am
ICICI SECURITIES - INTRADAY CALLS
STOCK CALLS FOR INTRADAY
BUY NIFTY FEB FUTURES ABOVE 10,825 levels
10779 • Nifty 50 Futures
Nifty Feb Contract
GO SHORT IN SBI IN RALLIES
₹267 • SBI
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TRF board to meet for fund-raising plans
The board of directors of TRF is scheduled to meet on Friday to consider a fund-raising proposal. The company may issue preference shares or any other securities through one or more methods, including qualified institutional placement, private placement, rights issue or any other permissible mode or a combination thereof, subject to necessary approvals. Shareholders of TRF will closely track the quantum, the mode and the timing of the fund-raising plans.
Go short in Reliance Ind if stock falls from ₹1,240 levels
₹1225 • Reliance Ind.
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Reliance Jio tops list on 4G availability across India
Airtel comes in second, while Vodafone and Idea follow.
Rupee declines 17 paise against US dollar in early trade
The Rupee weakened by 17 paise to trade at 71.33 against the United States (US) dollar in opening session on Friday following sustained demand for the greenback from importers amid foreign fund outflow and rising global crude prices.
The dollar’s gain against major world currencies also impacted the rupee sentiment, forex dealers said.
Related Stories
Dollar lower versus yen after US weak retail sales
The dollar lost about 0.5 per cent against the safe-haven yen in the overnight session
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Indian bonds are falling out of favour with foreign investors
FPIs have utilised only half of their investment limits in government bonds
The BSE benchmark Sensex declined 120 points in early trades taking cues from weak Asian markets and stronger crude prices. Moderate selling was seen in auto, banking, healthcare, power and metal stocks.
The Sensex was quoted at 35,789.41, down by 86.81 poiints from its previous close.
The NSE Nifty too fell 32.25 points, or 0.30 per cent, to 10,713.80.
Sectoral indices such as Healthcare, metal, auto, capital goods and consumer durables moved into the negative terrain, falling between 0.50 per cent and 1.50 per cent.
Crude oil prices climbed with OPEC production cuts that start next month seen being deeper than previously expected.
BSE SECTORAL INDICES
9.40 am
Global markets: Asian stocks fall after weak US data
US crude futures rose 0.5 per cent to $54.68 per barrel and were headed for a weekly gain of roughly four per cent
Asian stocks fell on Friday after weak United States (US) retail sales figures raised fresh doubts about the strength of the world's largest economy, offsetting optimism towards trade talks between the US and China.
Also casting a shadow, the White House said US President Donald Trump will declare a national emergency to try to obtain funds for his promised US-Mexico border wall, drawing immediate criticism from Democrats.
File Photo
Large-cap stocks
Today's Pick: NCC (₹86.5): Buy
Investors with a short-term perspective can consider buying the stock of NCC at current levels. The stock jumped 4.5 per cent accompanied by above average volume on Thursday, breaching the 21- and 50-day moving averages.
Since taking support at ₹63 in late October 2018, the stock has been on a medium-term uptrend. READ MORE
Day Trading Guide for February 15, 2019
Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:
Markets slipped in the opening session today. The BSE benchmark Sensex was down 47 points at 35,822.37 and the Nifty too was down 19 points at 10,726.95.
TOP NSE GAINERS
Top NSE GAINERS
TOP NSE LOSERS
TOP NSE LOSERS
Sensex Pre-Open
Large-cap stocks
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