Vinod Nair, Head of Research, Geojit Financial Services
Profit-booking on the broader indexes capped the previous day’s gain as rising oil price casts caution over the inflation trajectory. Rate sensitive stocks underperformed ahead of today’s economic data CPI inflation & IIP. Mixed trend in global market ahead of two days of US Fed meet also slowed down the domestic sentiment.
Nikhil Kamath, Co-Founder and Head of Trading, Zerodha
Markets opened slightly higher in trade on Tuesday, constant selling through the session took the indices lower to close with losses of close to one percent. Banking stocks underperformed with Bharti Infratel, TataPower, BPCL, IOC being the worst performers of the session, with crude prices rallying on the back of the North sea pipeline outage.
The issue inherently is that we are constantly underperforming our global peers and prices seem to have run up without the underlying fundamentals catching up yet.
We continue to maintain a negative outlook and advocate holding shorts at the current juncture.
3:47 PM Sensex heatmap at close
3:40 PM Markets at close
The S&P BSE Sensex ended at 33,227, down 227 points, while the broader Nifty50 settled at 10,240, down 82 points.
3:25 PM Sectoral trend in last leg of trade
Repro India dips 8% post Q2 results
3:08 PM Markets check
At 3:05 pm, the S&P BSE Sensex was trading at 33,235, down 220 points, while the broader Nifty50 was ruling at 10,244, down 77 points.
2:55 PM Nifty slips below 10,250; top five losers
Kotak Securities on Petronet LNG
We expect Petronet LNG’s earnings to grow at a CAGR of 15% over the next two years driven by a volume growth, benefiting from contractual commitments of 17.2 mn tons and commissioning of Kochi-Mangalore pipeline. We expect PLNG to report an EPS of Rs.14.1 for FY18E and an EPS of Rs.15 for FY19E. We expect FY18E to be better driven by acceleration in volume growth, supported by expansion. At CMP, we believe that the stock is reasonably valued at 16.7x FY19E earnings. We recommend BUY rating on the stock with a price target of Rs 285/- including equity value of 26% stake in Dahej Port. Given that most of the capacity at Dahej is tied-up, there is strong visibility on the free cash flow yield.
Bitcoins a highly speculative investment: Why caution is required
HEG was up nearly 5% to Rs 1,957 on the BSE in intra-day trade after the rating agency India Ratings & Research (Ind-Ra) has upgraded the credit rating of the company as ‘IND A+’ with positive outlook.
1:39 PM Markets check
At 1:37 pm, the S&P BSE Sensex was trading at 33,304, down 151 points, while the broader Nifty50 was ruling at 10,268, down 53 points.
Edelweiss Securities on Bharti Airtel
We attended Bharti Airtel’s (Bharti) analyst meet held at Uganda, Africa. Key takeaways: 1) rationalisation of network, leveraging improvement in coverage and capacity with launch of 3G in 900MHz band, and rationalisation of SG&A costs has led to margin improvement, and is sustainable; 2) higher tower sharing by operators is necessary for further improvement in margins; 3) Bharti is targeting increased bundle sales to improve ARPUs; 4) capex is likely to increase to USD600-800mn for investments towards 3G/4G expansion; 5) opportunity in Africa remains strong with favourable demographics, high urbanisation, low mobile penetration; and 6) Bharti is in the fray for acquiring Etisalat’s Nigerian operations, which on successful operations will boost EBITDA due to synergies. Maintain ‘BUY’ with TP of Rs 625 on industry consolidation that will trigger structural improvement in profitability.
Punjab National Bank trades firm after QIP launch
Punjab National Bank (PNB) was trading firm, up 1% at Rs 175 on the National Stock Exchange (NSE), after state-owned bank announced the opening of the qualified institutions placement (QIP).
The shareholders of the bank at their extra ordinary general meeting (EGM) held on December 4, 2017 approved the raising of common equity tier-I capital of the bank in aggregating not exceeding Rs 5,000 crore including premium by way of FPO (Follow on Public Offer)/ QIP (Qualified Institutional Placement) /Rights Issue/ ESOP (Employees Stock Option Plan) and/ or any other mode or combination(s) thereof, as may be decided by the Board.
PNB said it intends to use the net proceeds of the Issue to augment its CET I capital and for general corporate purposes.
12:45 PM Sectoral Trend
12:32 PM Top Sensex gainers and losers
12:18 PM Market Check
Puravankara zooms 81% in one month post Q2 results
Puravankara hit a fresh 52-week high of Rs 172, up 12% on the BSE on Tuesday, on the back of heavy volumes in an otherwise subdued market.
In past one month, the stock of realty firm zoomed 81% from Rs 95 on November 13, as compared to 0.85% rise in the S&P BSE Sensex.
Punjab National Bank launches up to $777 million share sale
Indian state-run Punjab National Bank has launched a share sale to qualified institutions to raise at least 30 billion rupees ($466.2 million) with an upsize option for another 20 billion rupees, according a source and a deal term sheet.
Punjab National Bank, the second-biggest state-run lender in the country, is looking to sell the shares at an indicative price of 168 rupees each, according to the source and the term sheet.
New launches, rural uptick can revive Colgate’s fortunes
After underperforming on the volume front and losing market share over the past few quarters, Colgate-Palmolive is expected to recover some of the volumes on the back of new launches, price cuts and uptick in rural demand.
Oil exploration stocks in focus; Aban Offshore, Selan Exploration up 5%
Shares of oil exploration, equipment and services companies were trading higher on the bourses by up to 7% in otherwise subdued market as Brent crude oil prices near 2015 high after North Sea pipeline shutdown.
Aban Offshore, Dolphin Offshore Enterprises, Selan Exploration Technology, Hindustan Oil Exploration Company and Jindal Drilling & Industries were up between 3% and 6% on BSE. Oil and Natural Gas Corporation (ONGC) and Oil India too trading higher in the range of 1% to 2%. READ MORE
Indian pharma companies under pressure on bourses, MNC peers fare better
At a time when Indian pharmaceutical companies are under pressure on stock exchanges, many of their multinational (MNC) peers are performing much better.
10:38 AM Interview of the day
We see some market shocks next year: Nomura’s Robert Subbaraman
Dr Reddy’s Laboratories rallied 6% to Rs 2,328 on BSE in early morning trade after the company announced that it has received Establishment Inspection Report (EIR) from the US drug regulator for its facility in Hyderabad following the audit in April.
“We have received EIR from the US Food and Drug Administration (USFDA) on December 11, 2017 as closure of audit, for formulations manufacturing plant-3 at Bachupally, Hyderabad,” Dr Reddy’s Laboratories said in a statement.
India’s GDP growth seen rising 7.2% in 2018, 7.4% in 2019: UN report
India’s growth rate is projected to accelerate to 7.2 per cent in 2018 and 7.4 per cent in 2019, the UN said, describing the outlook for the country as “largely positive”.
Despite the slowdown observed in early 2017 and the lingering effects from the demonetisation policy, the outlook for India remains largely positive, underpinned by robust private consumption and public investment as well as ongoing structural reforms,” the United Nations said.
9:38 AM Top Sectoral gainers: Nifty Pharma
9:22 AM Sectoral trend
9:21 AM Top Sensex gainers and losers
9:19 AM Broader Markets
In broader markets, the BSE Midcap and BSE Smallcap indices were little changed
9:18 AM Markets Open
Benchmark indices open flat following Asian shares, that took a breather on Tuesday after three straight sessions of gains, with markets consolidating in the hope an upswing in global growth could outlast a likely hike in US borrowing costs this week.
At 9:17 the S&P BSE Sensex was trading at 33,388, down 67 points while the broader Nifty50 index was ruling at 10,295, down 26 points
Non-declaration of Bitcoin gains could attract 50% penalty and interest
The bitcoin surge in the current fiscal year (FY18) in the absence of regulation has rattled the government, prompting it to take a look at the policy and taxability of earnings from cryptocurrency trading.
The government will soon form a committee to look into all issues related to bitcoin trading and issue suitable clarification, Business Standard has learnt. This committee may be led by a senior finance ministry official and will include representatives of the Reserve Bank of India, IT ministry, and other central government departments.
Top trading ideas by Prabhudas Lilladher:
BUY STRIDES SHASHUN
CMP: Rs 808.50
TARGET: Rs 870
STOP LOSS: Rs 770
Click here to read more
Nifty outlook by Prabhudas Lilladher
Market stayed in momentum and continued showing strength. For now, near term support lies at 10,260, with RSI on daily chart at 55 implying further up move whereby re- testing of previous high is very likely. The support for the day is seen at 10,275 while resistance is seen at 10,370.
Bitcoin futures suggest cryptocurrency’s blistering price rise to slow
Newly launched bitcoin futures on Monday suggested that traders expect the cryptocurrency’s blistering price gains to slow in the coming months, even as it blasted above $17,000 to a fresh record high in the spot market.
India November inflation likely exceeded RBI’s 4% target
India’s retail inflation likely breached the central bank’s 4% medium-term target in November after unseasonably heavy rains sent food prices soaring, a Reuters poll showed.
Oil gains by about 2% on Forties Pipeline shutdown
Oil prices rose on Monday, overcoming declines early in the session, after a North Sea pipeline shut for repairs and investors focused on commodities following an explosion in New York
The Nifty50 futures on the Singapore Stock Exchange were trading 6 points lower at 10340 indicating a flat opening for the domestic market.
Asian shares took a breather on Tuesday after three straight sessions of gains, with markets consolidating in the hope an upswing in global growth could outlast a likely hike in US borrowing costs this week.
MSCI’s broadest index of Asia-Pacific shares outside Japan dithered either side of flat having bounced 2% in the past three sessions.
Moves were minor across the region, with blue chip Chinese shares off 0.2% and Australia up 0.1%. Japan’s Nikkei was likewise steady, after the index scored its highest close in 25 years on Monday.
US markets close higher
US stocks closed higher on Monday as investors prepared for an expected Federal Reserve rate hike later in the week, while stocks rose around the world on continued solid global economic growth indicators.
The Dow Jones Industrial Average rose 56.87 points, or 0.23%, to 24,386.03, the S&P 500 gained 8.49 points, or 0.32%, to 2,659.99 and the Nasdaq Composite added 35.00 points, or 0.51%, to 6,875.08.
8:48 AM Good Morning!
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First Published: Tue, December 12 2017. 15:36 IST