Monday, 27 May 2019

Market Live: Sensex maintains uptrend, Midcap index outperforms; Manpasand sinks


Global brokerage firms such as Morgan Stanley, Nomura and Deutsche Bank maintain their buy rating on Indraprastha Gas(IGL) post Q4 results and see upside of up to 30 percent from May 24 close of Rs 313.

Glenmark Pharmaceuticals receives ANDA approval for Aspirin and extended-release Dipyridamole capsules, 25 mg/200 mg.

Market Update

Benchmark indices remained strong for second consecutive session with the Sensex rising 187.29 points to 39,622.01 and the Nifty trading 49.50 points higher at 11,893.60.

The market breadth was also in favour of bulls. About 1,386 shares advanced against 552 declining shares on the BSE.

Granules Pharmaceuticals Inc. received US FDA approval for Methylphenidate Hydrochloride extended-release capsules.

Market Update: Benchmark indices extend the early morning gains with Nifty around 11,900 level.

The Sensex is up 202.96 points at 39637.68, while Nifty is up 49.60 points at 11893.70. About 1240 shares have advanced, 464 shares declined, and 92 shares are unchanged.


Buzzing: Shares of Lupin declined 5.5 percent in the early trade on Monday after USFDA classified the inspection as official action indicated (OAI).

The company has received a communication from the USFDA classifying the inspection conducted at its Goa facility between January 28 to February 8, 2019 as OAI, company said in release. 

Gold Update: Gold prices rose on Monday as fears of a protracted US-China trade war hurt risk sentiment, while poor economic data from the United States bolstered bets of a US Federal Reserve rate cut.

Manpasand Beverages tumbles 20%: Manpasand Beverages shares were locked in 20 percent lower circuit at Rs 88 on May 27 after the top management was arrested by the Central Goods and Services Tax (GST) Commissionerate Vadodara-II sleuths for an alleged GST fraud.

Market opens: It is as flat start for the week on May 27 with Nifty around 11,850.

At 09:17 hrs IST, the Sensex is up 1.36 points at 39436.08, and the Nifty down 4.20 points at 11839.90. About 580 shares have advanced, 345 shares declined, and 67 shares are unchanged. 

NTPC, Yes Bank, HDFC, Britannia, Sun Pharma, are among major gainers on the indices, while losers are JSW Steel, Manpasand Beverages, Jet Airways, BPCL, Zee Entertainment, Grasim, Kotak Mahindra Bank, Tech Mahindra, RIL, Adani Port, Bajaj Finserv and IndusInd Bank.

Among sectors, auto, energy and pharma are trading lower, while buying seen in the metal, infra and FMCG.

Rupee Opens: The Indian rupee opened higher by 11 paise at 69.41 per dollar on Monday versus Friday's close 69.52.

Market at pre-open: Indian indices are trading flat with positive bias in the pre-opening session.

At 09:00 hrs IST, the Sensex is up 38.26 points or 0.10% at 39472.98, and the Nifty up 31.10 points or 0.26% at 11875.20.

Brokerage View: Source - CNBC-TV18:

Morgan Stanley on IGL
Overweight call, target at Rs 351 per share
Reported Q4 earnings that beat our EBITDA estimate & consensus by 9%

Nomura on IGL
Maintain buy rating, target at Rs 400 per share
Q4 ahead driven by solid 17% volume growth

Jefferies on IGL
Buy rating, target at Rs 340 per share
Volume growth stronger than expected; margin below estimates

Kotak Institutional Equities on IGL
Sell rating, target raised to Rs 260 from Rs 250 per share
Raise EPS estimates by 3-4% 

Deutsche Bank on IGL
Buy rating, target raised to Rs 375 from Rs 360 per share
CNG volume growth highest in 28 quarters

Nomura on Ashok Leyland
Neutral call, target raised to Rs 97 from Rs 90 per share
Valuations factor in the downcycle; next upcycle unlikely before FY22

CLSA on Ashok Leyland
Sell rating, target at Rs 65 per share
Q4 volumes rose 1% YoY, while EBITDA fell 5% YoY 

UBS on Ashok Leyland
Sell rating, target at Rs 80 per share
Profit ahead of consensus on utilisation of tax credit from LCV biz merger 
Outlook for FY20 & 21 growth is muted

Kotak Institutional Equities on Ashok Leyland
Maintain buy rating, target cut to Rs 130 from Rs 140 per share
Stock valuations are attractive at 11x FY20e EPS
Expect company to deliver 6% EBITDA CAGR over FY19-21

Jefferies on Whirlpool
Hold rating, target cut to Rs 1,560 from Rs 1,625 per share
Steady quarter; positives priced in; key risks prevail

CLSA on Dish TV
Retain buy rating; target cut to Rs 60 from Rs 70 per share
Migration impacts ARPU & additions; Essel group deleveraging a must
Cut estimates by 1-9% to factor in Q4 performance

Kotak Institutional Equities on JSW Steel
Maintain reduce, target cut to Rs 255 from Rs 265 per share
Good quarter but a challenging year ahead

Kotak Institutional Equities on Whirlpool
Maintain sell call, target at Rs 1,220 per share
Expect 12% EPS CAGR over FY19-21
Cut FY20-21E EPS estimates by 4-5%; sell stays on expensive valuations

Deutsche Bank on Grasim
Buy rating, target at Rs 1,075 per share
Q4 result disappoints on weaker margin

Credit Suisse on Ashok Leyland
Maintain neutral, target at Rs 94 per share
Q4 In-line; pre-buy to provide a near-term trigger

Credit Suisse on Page Industries
Downgrade to underperform from neutral, target cut to Rs 18,700 from Rs 23,221 per share
Q4 results significantly below estimates; profit declines 20.4% YoY

CLSA on IGL
Maintain buy rating, target at Rs 390 per share
Record volume growth across segments drives beat

CLSA on JSW Steel
Sell rating, target at Rs 225 per share
Margin outlook weak while capex is rising 

CLSA on NCC
Buy rating, target raised to Rs 145 from Rs 140 per share
FY19 PAT up 91% YoY, but politics drive no guidance

CLSA on NTPC
Buy rating, target at Rs 157 per share
Double-digit PAT growth led by lower under recoveries & surcharges

Asian market trade higher: Asia stocks edged up early on Monday, and the euro was confined to a narrow range after the weekend’s European Parliament elections highlighted the deepening political fragmentation of the 28-country bloc.

Crude Update: Oil prices rose on Monday as ongoing supply cuts led by producer club OPEC kept markets relatively tight, but Brent remained below USD 70 per barrel on concerns over an ongoing trade war between the United States and China.

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