Tuesday, 28 May 2019

Market Live: Sensex, Nifty open flat with positive bias; Emami slips 3%

Among sectors, FMCG and PSU bank index are under pressure, while buying seen in the metal, auto, infra and pharma.


Market opens: It is a flat start for the Indian indices on May 28.

At 09:18 hrs IST, the Sensex is up 38.88 points at 39722.17, while Nifty is up 16.60 points at 11941.40. About 633 shares have advanced, 272 shares declined, and 45 shares are unchanged. 

Yes Bank, Gail India, Adani Port, Zee Entertainment, Coal India, Asian Paints, SBI and Kotak Mahindra Bank are some of major gainers in the early trade, while losers are Emami, HPCL and IOC. 

Among sectors, FMCG and PSU bank index are under pressure, while buying seen in the metal, auto, infra and pharma.

Rupee Opens: The Indian rupee slipped in the early trade on Tuesday. It has opened lower by 15 paise at 69.65 per dollar on Tuesday versus previous close 69.50.

Market at pre-open: Benchmark indices are trading higher in the pre-opening session with Nifty above 11,950 level.

At 09:01 hrs IST, the Sensex is up 107.98 points or 0.27% at 39791.27, and the Nifty up 47.10 points or 0.39% at 11971.90.

rokerages View: Source: CNBC-TV18:

Macquarie on GAIL
Maintain outperform, target at Rs 440 per share
Q4 EBITDA up 29% YoY ahead of consensus

Nomura on GAIL
Maintain buy call, target at Rs 465 per share
Near-term focus will be on the final tariff order for its HVJ network 

Citi on GAIL
Neutral call, target at Rs 370 per share
Key near-term trigger would be the HBJ/DVPL tariff hike 

Nomura on Motherson Sumi
Maintain buy call, target cut to Rs 156 from Rs 171 per share
New plants ramp-up, India recovery to drive performance

Macquarie on Motherson Sumi
Maintain outperform, target at Rs 185 per share
EBITDA of Rs 1,200 crore lower than our estimates

Credit Suisse on Colgate
Maintain outperform, target cut to Rs 1,450 from Rs 1,500 per share
Stabilisation of market share achieved, share gain targetted in FY20

CLSA on Colgate
Maintain buy rating, Target cut to Rs 1,400 from Rs 1,575 per share
Q4 domestic volume growth was in-line

Citi on Colgate
Neutral call, target raised to Rs 1,265 from Rs 1,180 per share
Adjust FY20-21 estimates 0-3% after accounting for FY19 actuals

Credit Suisse on BHEL
Maintain outperform, target at Rs 100 per share
Expected lower provisions drive profitability

CLSA on BHEL
Maintain sell call, target raised to Rs 63 from 56 per share
Inflows decline as PLFs still very low & gross margins shrink 

Citi on BHEL
Neutral call, target at Rs 70 per share
Co attributed subdued sales growth to client site issues at a few projects

Credit Suisse on IndiGo
Outperform rating, target at Rs 1,800 per share
Numbers marginally below our estimates driven by lower ASKs 

Citi on IndiGo
Sell call, target raised to Rs 1,300 from Rs 1,000 per share
Increase yield assumptions by 4%

CLSA on Emami
Maintain buy, target cut to Rs 450 from Rs 520 per share
Reported a weak set of results, yet again


Citi on Zee Entertainment
Downgrade to neutral/high risk from buy/high risk, target cut to Rs 415 from Rs 515
Operating earnings continue to beat expectations

Credit Suisse on Emami
Maintain outperform, target cut to Rs 435 from Rs 480 per share
Cut FY20/21 EPS estimates by 6-8% to build in the lower growth 

Nomura on Zee Entertainment
Maintain buy, target cut to Rs 522 from Rs 553 per share
Build in a 13%/12% CAGR for Ad/subscription revenue over FY19-21

Macquarie on Zee Entertainment
Outperform call, target at Rs 540 per share
EBITDA 10% higher than estimate on higher domestic ad revenue growth

BofAML on Zee Entertainment
Reiterate neutral rating, target at Rs 445 per share
Adjust FY20 EPS estimates by 1-2%

Credit Suisse on Zee Entertainment
Downgrade to neutral from outperform, target cut to Rs 390 from 560 per share
Cut FY20/FY21 estimates by 15% on lower ad/sub revenues

CLSA on Zee Entertainment
Q4 results beat our estimates led by 18% YoY domestic ad rev growth
Working capital expanded with aggressive movie right acquisition & ZEE5 ramp-up

CLSA on Adani Ports
Maintain buy call, target at Rs 475 per share
Overall Q4 volume up 18% vs major ports at 5%

Citi on Adani Ports
Neutral call, target at Rs 417 per share
Maintain neutral due to past incidences of less-than-optimal capital allocation

Crude Update: Oil prices were mixed on Tuesday, pressured by a weakening economy, especially in China, yet still supported by ongoing supply cuts from producer club OPEC and US sanctions against Iran and Venezuela.

SGX Nifty: Trends on SGX Nifty indicate a flat opening for the broader indices in India, a fall of 3 points or 0.03 percent. Nifty futures were trading around 11,921-level on the Singaporean Exchange.

Asian markets trade higher: Asian shares tracked European gains on Tuesday, as relief over EU election results eased concerns about political difficulties in the bloc and merger news supported auto shares, although persistent concerns about trade capped regional sentiment.

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