Buzzing: Global brokerage firm CLSA has initiated coverage with Buy rating on ICICI Securities and set a target price at Rs 520, implying potential upside of 46 percent. The stock price gained 3.4 percent intraday.
Equity broking firm is benefited from financialisation of household savings and parent’s brand and reach, the research house said, adding distribution and margin financing will drive revenue expansion.
CLSA expects revenue/net profit to grow at a CAGR of 17/21 percent over FY18-21.
ICICI Securities’ dividend yield is one of the highest among Nifty companies and the stock trades at discount to global peers, the research house said.
Europe Update: European stocks dropped as traders watched developments from central banks across the world. France’s CAC, Germany’s DAX and Britain’s FTSE slipped 0.6 percent each.
Overall, market sentiment was affected by central banks moving towards a tighter monetary policy globally.
US stocks fell in the wake of the latest decision from the Federal Reserve to hike rates by 25 points. The central bank also indicated that two more increases could still take place this year.
In the meantime, traders will be looking at a European Central Bank (ECB) meeting in Riga, Latvia on Thursday, where policymakers are set to start discussing how to put an end to its massive bond-buying program, reports CNBC.
Market Update: The market continued to reel under selling pressure in afternoon as investors digested US Federal Reserve’s second interest rate hike of 2018 and await ECB policy decision due later in the day.
The 30-share BSE Sensex slipped 221.57 points to 35,517.59 and the 50-share NSE Nifty declined 72.40 points to 10,784.30 while the Nifty Midcap continues to outperform frontliners, falling third of a percent.
All sectoral indices are trading in the red barring Pharma that gained over a percent.
ECB Policy Expectations: The European Central Bank will debate today whether to end its huge asset purchases by year-end, in what would be its biggest step towards dismantling crisis-era stimulus credited with pulling the euro zone economy out of recession.
Financial investors are coming to terms with the end of a decade of easy money from the world’s top central banks, with the Federal Reserve on Wednesday raising interest rates for a seventh time in 3-1/2 years in a further shift from policies used to battle the 2007-2009 financial crisis and recession.
Meeting as growth is slowing and political populism threatens to set off market turbulence, the ECB is expected to argue that its 2.55 trillion euro ($3.00 trillion) bond-buying scheme has done its job in bringing the 19-member currency bloc back from the brink of collapse, reports Reuters.
Buzzing: Punj Lloyd share price fell 11 percent intraday Thursday after ICICI Bank dragged the company to National Company Law Tribunal (NCLT) and pleaded to initiate proceedings under Insolvency & Bankruptcy Code (IBC).
The NCLT has agreed to hear bank’s plea against Punj Lloyd and issued notice related to the matter, reports CNBC-TV18.
The NCLT will hear bank’s plea on July 24.
The country’s largest private sector lender has claimed outstanding dues of Rs 852 crore for seeking insolvency proceedings against Punj Lloyd.
WPI Inflation: WPI inflation for the month of May increased to 14-month high of 4.43 percent from 3.18 percent in previous month.
Manufactured products inflation also inched up at 3.73 percent, from 3.11 percent in April.
March WPI inflation revised to 2.74 percent from 2.47 percent reported earlier.
Market Update: The market remained under pressure tracking global weakness after the US Federal Reserve hiked interest rate by 25 basis points for the second time in 2018 and also indicated more hikes going ahead.
The Sensex dropped 207.97 points to 35,531.19 and the Nifty fell 68.70 points to 10,788, weighed by Infosys, Reliance Industries, ICICI Bank and IOC.
About three shares declined for every two shares rising on the BSE.
Sharekhan on Fed Rate Hike: Gaurav Dua, Head of Research, Sharekhan said US Federal Reserve has increased the policy rates by 25 bps for the second time in 2018 is on expected line. But the commentary has a hawkish undertone and the central bank has indicated total of four rate hikes in 2018 against expectation of three earlier, citing ‘Solid’ economic activity, low unemployment rate and inflation likely to overshoot their earlier projected target.
“We expect the change in commentary by US Federal Reserve and relatively faster pace of unwinding to have limited impact on emerging market equities, as the hike in interest rates remain gradual and the estimates for terminal Fed rates remains unchanged at neutral level of 2.9 percent. Post the initial reaction, we the focus to quickly return back to domestic macros and earnings growth.”
Crude Update: Oil prices eased, dragged down by rising output, although strong demand and a drop in US fuel inventories provided the market with some support.
Brent crude futures, the international benchmark for oil prices, were at $76.47 per barrel, down 0.36 percent, from their last close.
US West Texas Intermediate (WTI) crude futures were at $66.53 a barrel, down 0.17 percent from their last settlement.
Prices were pulled down by another rise in US oil production, which hit a weekly record of 10.9 million barrels per day (bpd) last week, according to the Energy Information Administration (EIA) on Wednesday. Reports CNBC.
Alembic Pharmaceuticals gets USFDA approval: The company has received approval from the USFDA for its abbreviated new drug application (ANDA) for Doxycycline Hyclate capsules USP, 50 mg and 100 mg.
The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD), Vibramycin Capsules, 50 mg and 100 mg, of Pfizer Inc.
At 11:03 hrs Alembic Pharmaceuticals was quoting at Rs 526.25, up Rs 36.00, or 7.34 percent.
Buzzing: Shares of Cipla gained 2 percent as company received final USFDA approval for Isoproterenol hydrochloride injection.
The company has received final approval for its abbreviated new drug application (ANDA) for Isoproterenol hydrochloride injection USP, 0.2mg/mL, single – use sterile Ampoule from the United States Food and Drug Administration (USFDA).
Cipla’s Isoproterenol hydrochloride injection is AP – rated generic therapeutic equivalent version of Hospira Inc’s Isuprel injection and is indicated for the treatment of cardiac problems and heart block.
Rupee Update: The rupee appreciated by 5 paise to 67.60 against the US dollar after the American currency weakened overseas.
Dealers said fresh selling of the greenback by banks and exporters backed up the rupee.
The dollar turned weak against other currencies overseas even after the US Federal Reserve lifted interest rates and signalled two more hikes this year and four in 2019.
Yesterday, the domestic unit ended 16 paise down to close at a near one-week low of 67.65 against the US currency on sustained dollar demand.
Market Update: Benchmark indices extended losses in morning as the Sensex shed 192.61 points to 35,546.55, dragged by Infosys, Reliance Industries, ICICI Bank and TCS.
The Nifty slipped below 10,800 levels, falling 63.20 points to 10,793.50.
UBS handpicks 10 midcaps that could return up to 62% in the next 1 year
The market has not been particularly nice to small and midcap stocks, as some of these counters have lost up to 90 percent value in 2018.
Aditya Birla Capital gains a percent: Edelweiss Securities has initiated coverage with Buy rating on the stock and set a target price at Rs 199, implying potential upside of 42.5 percent.
The company is in a sweet spot to capture the financialisation story, it believes.
The research house expects multiple levers to sustain best-in-class growth & improved return ratios.
It has promising blend of businesses; and scalable and sustainable model while its business model shares similarities with successful financial entities like Bajaj and HDFC, Edelweiss said.
Execution of business strategy is key risk to potential valuation re-rating, it said.
Order Win: Larsen & Toubro has won orders worth Rs 1,391 crore across various business segments.
L&T Hydrocarbon Engineering (LTHE), a wholly owned subsidiary of engineering and construction major L&T, has secured new orders in excess of Rs 750 crore in its construction services business vertical.
Water and effluent treatment business has bagged orders worth Rs 432 crore while smart world ex-communication segment has secured an order worth Rs 209 crore.
Buzzing: Shares of Adani Transmission rose more than 3 percent as company received LoI intra state transmission project in Uttar Pradesh.
The company has received the LoI from REC Transmission Projects Company, a wholly owned subsidiary of Rural Electrification Corporation, to build, own, operate and maintain the transmission project in the state of Uttar Pradesh.
The project Ghatampur Transmission has approximately 900 ckt kms of line at voltage levels of 765 KV and 400 KV.
This project is primarily being constructed to establish transmission system for evacuation of power from 3X660MW Ghatampur thermal power project.
Market Update: The market remained under pressure as investors digested interest rate hike by the US Federal Reserve that also signalled more hikes ahead.
The 30-share BSE Sensex fell 127.03 points to 35,612.13 and the 50-share NSE Nifty slipped 41.70 points to 10,815.
Buzzing: Shares of HDFC Bank were up around a quarter of a percent after the lender recived a Cabinet nod to its fundraising amount.
The stock on Thursday touched an intraday high of Rs 2,041.4, while it touched an intraday low of Rs 2,035.25.
The Union Cabinet on Wednesday approved foreign direct investment (FDI) worth Rs 24,000 crore for HDFC Bank.
This is including the premium, over and above the previous approved limit of Rs 10,000 crore, such that the composite foreign shareholding in the bank shall not exceed 74 percent of the enhanced paid-up equity share capital of the bank, said Finance Minister Piyush Goyal after the Cabinet meeting, which was chaired by Prime Minister Narendra Modi.
With the raising of this capital, FDI in the bank would hit the regulatory ceiling of 74 percent.
Dish TV in Action: Direct-to-home services provider Dish TV India share price rallied as much as 3.5 percent in morning on Thursday after ace investor Rakesh Jhunjhunwala bought shareholding worth Rs 93 crore.
He picked up a 0.7 percent stake, or 1.3 crore shares, in the digital-to-home provider.
The purchase was done through Jhunjhunwala’s firm Rare Enterprises at Rs 71.30 per share, according to bulk deals data on the National Stock Exchange (NSE) website.
The total value of the block deal stands at Rs 92.69 crore.
Buzzing: Shares of ICICI Bank fell 1 percent in the early trade as company to offload 2 percent stake in its insurance arm.
“The board of directors of the bank approved the sale of up to 2,87,11,100 shares, representing up to 2% of the issued and the paid-up equity share
capital of ICICI Prudential Life Insurance Company in one or more tranches,” as per company release.
The stake sale can be done in any manner permissible under applicable law, including through an offer for sale by promoters through stock exchange mechanism, as may be permitted and in the manner specified by the Indian regulatory authorities, it added.
Market Opening: Benchmark indices started off trade on a weak note after investors digested US Federal Reserve’s rate hike.
The 30-share BSE Sensex fell 93.70 points to 35,645.46 and the 50-share NSE Nifty declined 35.30 points to 10,821.40.
Infosys lost 2 percent.
Vedanta, BPCL, HPCL, IOC, SBI, Axis Bank, ICICI Bank and Tata Steel are under pressure.
Lupin, Cipla, Aurobindo, Bharti Airtel and HDFC Bank are early gainers.
Nifty Midcap index dropped 36 points and Nifty Bank slipped 70 points.
Dish TV, Vakrangee, Granules India, gained up to 5 percent.
NBCC, Shree Renuka, Bhansali Engineering, Oberoi Realty, Mindtree, Future Consumer, SBI Life, Adani Power, Suzlon, Reliance Power, Canara Bank, PNB, Gammon Infra, Videocon and GMR Infrastructure declined up to 5 percent.
Market in Pre-opening: Benchmark indices settled pre-opening trade on a mixed note as the Sensex gained 3.94 points at 35,743.10 while the Nifty fell 23.80 points to 10,832.90.
RBI hikes interest rate, what’s in store for next policy and growth ahead?
ICRA’s principal economist Aditi Nayar says the Monetary Policy Committee’s (MPC) surprise decision wisely hedges before the crucial data on monsoon, minimum support prices (MSP) and volatile global oil prices play out going forward.
Buzzing: Dish TV rallies 4 percent after ace investor Rakesh Jhunjhunwala picked up 0.7 percent stake in company for Rs 92.6 crore.
Pre-Opening Trade: The market is flat in pre-opening after US Federal Reserve hiked interest rates and signalled two more rate hikes in 2018.
The 30-share BSE Sensex rose 32.83 points to 35,771.99 while the 50-share NSE Nifty slipped 0.20 points to 10,856.50.
HDFC Bank rallied 5 percent in pre-opening trade.
ICICI Prudential Life fell 2.6 percent.