Live Markets Commentary
Sify Editors @ 15:35 PM
HUL, ITC figure in list of stocks hitting 52-week highs
Along with key indices Sensex and the Nifty50, a few front line stocks, including HDFC, HDFC Bank, Hindustan Unilever, ITC, Larsen & Toubro, Maruti Suzuki and Tata Steel all scaled fresh 52-week or all-time highs on Monday.
FMCG heavyweights Hindustan Unilever (up 3.54%) and ITC (up 2.51%) are contributing significantly to the gains of the key indices.
Housing finance stock HDFC (up nearly 3.05%) has rallied sharply and is among the top gainers on the Sensex. Maruti Suzuki (1.01%), Larsen & Toubro (0.04%) and HDFC Bank (0.2%) all ended modestly higher, while Tata Steel, which has retreated after hitting a 52-week high, ended down about 0.78%.
Power Grid Corporation gained 2.76%. Cipla is up 2.55% and Reliance Industries was up 1.55%. Hero Motocorp, Asian Paints, Mahindra & Mahindra, Dr Reddy's Laboratories and Bajaj Auto are higher by 0.6% - 1.3%.
Meanwhile, Sun Pharmaceutical Industries ended 11.56% down on sustained selling pressure due to disappointing results. Adani Ports was down 5.38%. ICICI Bank, State Bank of India, Infosys and Axis Bank are down 1% - 2.5%.
The Sensex, which hit a new high of 31,214.39, ended up 81.07 points or 0.26% at 31109.28. The Nifty50 of the National Stock Exchange, which spurted to 9637.75, ended up 9.80 points or 0.10% at 9604.90.
Buy Tech Mahindra despite the steep fall in share price on Monday?
As we reported earlier, Tech Mahindra delivered a weak performance on both revenue and margin fronts and the stock registered its biggest fall in nine years. But HDFC Securities maintains a buy rating on the stock with a Target Price of Rs 500 based on 13x FY19 EPS. Says growth will be challenged in first quarter, owing to LCC restructuring and seasonally weak Comviva. Margins will be under pressure, owing to the full quarter impact of wage hike and visa costs. Expects margins to improve from second quarter.
India remained the fastest growing major economy in the world last quarter, with growth buoyed by an improved performance in manufacturing and services, a Reuters poll of economists found.
The median forecast from a poll of 35 economists showed the economy grew 7.1 percent annually in the first three months of this year. Forecasts ranged from 6.5 to 7.8 percent.
Annual growth was 7.0 percent in the quarter ending December, and 7.9 percent in the January-March quarter last year.
"The demonetization drive barely impacted the economic momentum in the second half of FY'17. Most of the high-frequency indicators showed only a marginal slowdown and were quick to recover," said Tushar Arora, senior economist at HDFC Bank.
Hindustan Petroleum Corporation Limited shares are down more than 3% despite the company reporting pretty strong numbers for the quarter ended March 2017 and announcing a bonus issue in the ratio of 1:2.
The stock declined to a low of Rs 543.80 on the National Stock Exchange, losing about 4.3% in the process, and is currently at Rs 549.80, down 3.1% from previous closing price.
Hindustan Petroleum Corporation Ltd reported a 31% jump in net profit in the March 2017 quarter, over the year-ago quarter. The company said it posted a net profit of Rs 1818.79 crore in the fourth quarter, compared to Rs 1387.91 crore in the corresponding quarter of the previous year.
The company realised an inventory gain of Rs 743 crore in the March quarter of 2016-17 as compared to Rs 37-crore gain made in the same period of the previous financial year.
HPCL has announced a bonus issue of one equity share for every two equity shares held by its members. It had issued bonus shares in the ratio of 2:1 (two shares for every one share held) in 2016-17.
"Profit was higher as a result of better operating efficiencies, higher sales and inventory gains," said the company's Chairman and Managing Director Mukesh Surana said.
HPCL has also announced that it has signed a revised memorandum of understanding with the Rajasthan Government for setting up an Integrated Petroleum-cum-Petrochemical Refinery at a revised capital cost of Rs 43,129 crore.
The company expects to commission this project in four years from the date all clearances are in place. All the marketing rights for the products will be with HPCL.
Indian Oil Corporation is up 1.25% at Rs 421, coming off the day's low of Rs 419. The stock had posted notable gains in the previous week, riding on strong quarterly results.
Meanwhile, shares of the other state-run oil marketing company BPCL are up 0.77% from previous closing price on modest support.
Tech Mahindra shares registered their steepest single session slide in about nine years on Monday morning, as the counter witnessed heavy selling after the company reported a 31.2% decline in consolidated net profit in the fourth quarter ended March 2017, compared to year ago quarter.
Tech Mahindra shares declined to Rs 356.65 on the National Stock Exchange (Rs 357.60 on BSE), and are currently at Rs 382.50, down nearly 11% from previous closing price.
The stock has plunged on heavy volumes, with the counter on the National Stock Exchange clocking a volume of nearly 23 million shares so far in the session.
On BSE, over 1.6 million shares have been traded so far at the counter, almost eight times the average daily volume.
Tech Mahindra reported consolidated net profit of Rs 590 crore for the quarter. EBITDA margin was down 420 basis points (q-o-q) to 8.2%. The company attributed the decline in margin to one off restructuring and pricing cuts in a large account.
Consolidated revenue, in rupee terms, was Rs 7495 crore, as compared to Rs 7557.5 crore in the preceding quarter. The company's dollar revenue was higher by over 1% at Rs $1131.1 million, against $1116.1 million posted during the previous quarter.
Tech Mahindra's board of directors have recommended a dividend of Rs 9 per share on par value of Rs 5 (180%) for the financial year ended March 31, 2017.
The company, controlled by billionaire Anil Ambani, over the weekend posted its second straight quarterly loss, dragged down by a price war in what is the world's second-biggest mobile market by number of users.
The shares have recouped some of the lost ground after falling as much as 20%Sify Editors @ 1:00 PM, May 28
|Cities||Gold (10g)||Silver (1Kg)|
|Chennai||Rs. 43100.00||Rs. 29764.71|
|Mumbai||Rs. 43100.00||Rs. 30406.42|
|Delhi||Rs. 43100.00||Rs. 30106.95|
|Kolkata||Rs. 43100.00||Rs. 30139.04|
|Kerala||Rs. 43100.00||Rs. 29251.34|