Closing bell: Sensex sheds over 157 pts, Nifty below 10,750 marks; Yes Bank surges 30%
Before final indication about bear or bull run at the Indian indices, the Nifty should close for two consecutive days above the 11,000 levels or below 10,800 levels.
Indian stock markets started in a cautious mood on Thursday as investors hoped for progress in the latest Sino-US tariff talks while bracing for China trade data that are expected to show further falls in both exports and imports. While at the closing, the BSE Sensex closed 157.89 points down to 35,876.22 while the 50-stock Nifty went down by 47.6 points to 10,746.05, a level that would bring cheer on the bears at Indian indices. Banking major Yes Bank stock jump over 23 per cent in early trade session on Thursday.
Mehul Kothari, Senior Technical Analyst - Equity, IndiaNivesh told, "Post yesterday’s correction, Nifty was forced to sneak below 10,800 marks on the closing basis. Now, as displayed on the daily chart, the index is hovering just above the placements of 50 DEMA & 100 DEMA. At the same time, the support coincides with 61.8% Fibonacci retracement levels of the previous rally. Thus, 10780 – 10750 could act as strong support in the upcoming session. A breach of the same would extend the selling towards 10,690."
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Buy Neuland Labs for 40% gains, advises HDFC Securities
Neuland Labs (NLL) reported encouraging numbers with 41% YoY revenue growth and a 73% YoY jump in EBITDA in 3QFY19. However, EBITDA margin remained muted at 9% of sales (in line) on account of continued raw material pressure, underutilized facilities and inferior business mix. PAT at Rs 46mn was up 5x YoY.
On suggestion to the markeet investors in regard to Neuland Labs counter Amey Chalke and Eshan Desai, Analyst at HDFC Securities informed in a detailed research report that suggests that the counter has upside potential for around 40 per cent. "An investor can buy the counter for target of Rs 830 per stock levels." Currently, the counter is oscillating around Rs 590/stock levels.
Buy KNR Construction Limited for 21% gains, advises Narnolia Financial Advisors
KNRCON has strike the deal with Cube highway to sell its 4 under development HAM projects. With this deal company’s equity requirement has come down from Rs.388 Cr to Rs.194 Cr. The deal is not only helping to keep balance sheet light but also allow the company to focus more on EPC business. During the quarter company has received an appointment date of 1 HAM project and expected to receive for 3 more projects in Q4FY19. The company has signed concession agreement for Karnataka HAM project in January and which will due for appointment date in July 2019. Though the revenue is expected to remain flat in FY19E on account of delay in appointment date we expect strong bounced back in FY20.
On suggestion to market investors in regard to the counter Sandip Jabuani, Research Analyst at Narnolia Financial Advisors told, "Fundamentals of the counter suggests an upside potential for 21 per cent. An investor can tajke a buy position in the scrip for the target of Rs 243/stock levels." The scrip is currently oscillating around Rs 200/stock levels.
Accumulate Orient Cement for 16% gains, advises Elara Securities
Orient Cement reported an EBITDA of Rs 379mn, in line with our and the Street’s estimates of Rs 374mn and Rs 391mn, respectively. Net sales increased by 11.6% YoY to Rs 5.7bn on the back of higher volume. EBITDA margin contracted 110bp YoY to 6.6%, due to an increase in cost and lower prices. It reported a net loss of Rs 137mn against Rs 177mn in the past year. The net realization was up by 1.2% YoY and down 0.9% QoQ to INR 3,782 per tonne. The YoY increase in realization was primarily on account of higher free-on-road (FOR) mix.
On suggestion to the market investors in regard to Orient Cement counter Ravi Sodah, Analyst at Elara Securities told, "Fundamentals of the scrip indicates an upside momentum for near 16 per cent. A trader should accumulate the scrip for a target price of around Rs 80 per stock." the scrip is oscillating around Rs 69 per stock.
9: 58 AM
Buy Indian Hotels Company for 49% gains, advises IndiaNivesh
The Indian Hotels Company Ltd (IHCL) reported 10.5% YoY consolidated revenue growth in Q3FY19 with a 192bps improvement in EBITDA margin, on track to scaling up to the management guidance of 800bps improvement by FY21–22. Also, the company posted net profit of Rs1.36bn in 9MFY19, reporting a profit for the first time in 9M in the last eight fiscal years. The YTD new signings rose to 20 properties, with a total key count of 2,750.
On suggestion in regard to IHCL counter Rajiv Bharati, Senior Research Analyst - Hotels, IndiaNivesh told, "Fundamentals of the scrip suggests an upside swing of 49 per cent. An investor can buy the stock for the target of Rs 210 per shares." Currently, the counter is oscillating around Rs 140 per stock.
Rupee falls 14 paise against US dollar in early trade
The rupee depreciated 14 paise to 70.94 against the US dollar in opening trade at the interbank forex market Thursday on increased demand for the greenback from importers and banks amid rising global crude prices.
A strong dollar in overseas markets and a lower opening of the domestic equity market weighed on the rupee, a currency dealer said.
Brent crude, the international benchmark was trading higher by 0.46 per cent at USD 63.90 per barrel Thursday.
The rupee opened weak at 70.91 and fell further to 71.05, but recovered partially to trade at 70.94, still down by 14 paise against the dollar.
On Wednesday, the rupee had ended 10 paise lower at 70.80 against the US dollar on rising global crude prices and heavy foreign fund outflows.
On a net basis, foreign investors withdrew Rs 676.63 crore from stocks on Wednesday, according to provisional FPI data.
Meanwhile, the benchmark BSE Sensex shed 60.05 points, or 0.17 per cent, to 35,974.06 in early trade Thursday.
Banking Index lead the rally
The BSE banking index rose over half a per cent in early trade on Thursday. Banking major Yes Bank scrip rose by 10 per cent to Rs 185.95 per stock levels. Shares of Axis bank was up by around 1 per cent, Federal Bank stock were up by around 0.75 per cent while the stock of ICICI Bank, IndusInd Bank and SBI nudged higher from its Wednesday close.
Cautious mood at Asian markets
Asian stock markets started in a cautious mood on Thursday as investors hoped for progress in the latest Sino-US tariff talks while bracing for China trade data that are expected to show further falls in both exports and imports.
There was some hope another US government shutdown would be averted as President Donald Trump edged toward backing a deal in Congress on funding for a border barrier.
MSCI's broadest index of Asia-Pacific shares outside Japan was all but flat, having just touched peaks last seen in early October.
Japan's Nikkei edged up 0.3 per cent to its highest for the year so far as a weakening yen boosted export stocks. E-Mini futures for the S&P 500 added 0.1 per cent.
Chinese stocks were grabbing attention after the Shanghai blue chips index jumped 2 per cent on Wednesday to levels last seen in late September.
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