Market could make new highs in second half of 2018; these 5 stocks can return 15-30%

With corporate earnings witnessing traction, the current market valuation multiples should broadly sustain, Jayant Manglik, President, Religare Broking told Moneycontrol’s Sunil Shankar Matkar in an interview. He also said that good monsoon will be one of the factors that will support growth and that new highs could be made in the second half of 2018.We believe that the upward movement of crude oil prices could increasingly face challenges on the back of continued rise in US oil production and the recent measures by Saudi Arabia and Russia to counter potential shortfalls in oil supply. This will put a reign on the depreciating rupee also. Further, with corporate earnings witnessing traction, as evident from the March quarter earnings season, the current market valuation multiples should broadly sustain. Also, we believe a good monsoon will be one of the factors that will support growth. In wake of these factors, we do believe that new highs could be made in the second half of 2018.

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Glenmark Pharma hits 52-week low on weak Q4; price erosion in US rises to 12%

Shares of Glenmark Pharma touched 52-week low of Rs 483.60, falling 9 percent in the opening trade on Wednesday on the back of poor fourth quarter numbers.

The company has reported 17.5 percent fall in its Q4 net profit at Rs 151.6 crore against Rs 183.7 crore in the same quarter last fiscal.

Revenue of the company was down 7 percent at Rs 2,279.8 crore against Rs 2,457.7 crore

The operating profit or EBITDA of the company was down 26 percent at Rs 326.8 crore and margin was at 14.3 percent.The board has recommended dividend at 200 percent i.e. Rs 2 per share for the financial year 2017-2018.

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Sensex, Nifty consolidate after 3-day rally; weaker rupee lifts IT stocks

After being locked in lower circuit on Monday, shares of Manpasand Beverages continued to be locked in the same band today as well, as investors continued to be wary of corporate developments. This is despite the company trying to allay fears around the controversy surrounding its auditor, Deloitte, resigning abruptly.

The shares have lost 40 percent in this week based on two developments—resignation of its auditor and Board meeting on May 30 being cancelled.

On Monday evening, the company issued a statement to the exchanges, assuring investors that the situation involving Deloitte was ‘unfortunate’ but the decision was taken keeping in mind shareholders’ interest.

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Shares of Bank of Baroda gained over 3.5 percent in morning trade even as the bank reported a big loss for the March quarter.

The stock touched an intraday high of Rs 146.25 and an intraday low of Rs 140.50.

The state-run lender posted a net loss of Rs 3,102.34 crore in the March quarter, missing estimates due to a jump in provisions for bad loans. In the fourth quarter last year, the net profit was Rs 155 crore.

Provisions for non-performing assets for the quarter rose by 190 percent YoY to Rs 7,052.53 crore in Q4.

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Sun Pharma Q4 profit up 7% YoY at Rs 1,309 crore, beats estimates

India’s largest drugmaker Sun Pharmaceutical's consolidated net profit rose 6.94 percent year-on-year (YoY) to Rs 1,309 crore in the fourth quarter ended March, beating analysts' estimates.

The profit was boosted by a one-time tax benefit of Rs 259 crore in Q4 related to certain intangibles. Excluding the one-time tax benefit of Rs. 259 crore, the adjusted net profit for the quarter was Rs. 1,050 crores.

The company said they also had USD 20 million milestone payment in the fourth quarter from Spanish drug maker Almirall as part of the licensing agreement for the development and commercialization of Tildrakizumab for psoriasis in Europe.

Consolidated revenue for the quarter declined 1.11 percent YoY to Rs 7,279.9  crore in Q4 but was above analysts' estimate of Rs 6,778.8 crore.

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Sun Pharma, BoB, PNC Infratech, PC Jeweller, Kaveri Seed, United Spirits

 Sun Pharma, Tech Mahindra, Bank of Baroda, Cadila Healthcare, Page Industries, IDBI Bank, Power Finance Corporation, Sundaram Finance, NBCC India, Max Financial, Karur Vysya Bank, Jagran prakashan, BEML and India Cements will announce results on Friday.

Other companies that will also declare their earnings are VA Tech Wabag, General Insurance, Indian Hotels Company, Eris Lifesciences, Gujarat fluorochemicals, Lakshmi Machine Works, Engineers india, Asahi India Glass, PC Jeweller, Kalpataru Power, Hindustan Copper, Lemon Tree, FDC, Himatsingka Seide, Amber Enterprises India, Excel Crop Care, Jindal Saw, Goodyear India, JB Chemicals, Ramkrishna Forgings, Lakshmi Vilas Bank, Shriram EPC, Jai Corp, Bannariamman Sugars, TCI Express, Future Enterprises, Excel Industries, Power Mech Projects, DFM Foods, Shreyas Shipping, Monte Carlo Fashions, Hotel Leela Venture, Rico Auto Industries, Waterbase, Panama Petrochem, NLC India, Nagarjuna Fertilizers, Orissa Mineral, Ambika Cotton Mills, Goldstone Infratech, Enkei Wheels, Future Market and JBF Industries.

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Tata Motors Q4 consolidated net profit down 50% at Rs 2,176 crore, misses estimates

Tata Motors, India’s largest automotive player by revenue, on Wednesday missed analysts' expectations with a 50-percent year-on-year fall in its consolidated net profit for the March quarter to Rs 2,176.16 crore.

An average of estimates of 14 analysts polled by Reuters pegged the company's consolidated net profit to come in at Rs 4,041 crore. The fall in bottom line was primarily due to a Rs 1,641.38-crore impairment of capital work in progress.

Revenue from operations grew 16 percent on year to Rs 91,279.09 crore in the quarter under review. The Reuters poll had expected revenues to come in at Rs 89,507 crore.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) came in at Rs 11,250 crore, 3.7 percent higher than in the same quarter a year ago. EBITDA margin for the quarter contracted to 12.3 percent from 14 percent last year.

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Profits could take a hit on JLR sales decline

A weak financial performance by Jaguar Land Rover (JLR) may limit the surge in sales in the domestic market for Tata Motors, casting a shadow on its fourth-quarter results.

A Reuters poll of 14 analysts expects the maker of cars, trucks and luxury vehicles to post a 6.8 percent year-on-year (YoY) drop in the consolidated net profit to Rs 4,041.5 crore, compared to Rs 4,336.43 crore posted in Q4FY17.

Tata Motors will declare its March quarter results on May 23.

The company, which is India’s largest automotive player by revenue, saw total JLR sales of 172,709 units during Q4FY18, a 4 percent decline from 179,531 units sold in Q417. The fall was primarily due to lower UK sales, and to a lesser extent lower sales in Europe. UK industry sales were down 12.4 percent in the quarter, more than explained by lower diesel.

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Sensex up over 100 pts, Nifty above 10,550; Just Dial, JP Associates rally

Benchmark indices gained strength after early consolidation, with the Sensex rising 121.28 points to 34,737.41.

The Nifty rose 39 points to 10,555.70, backed by HDFC twins and ICICI Bank.

The market breadth also improved as about 1,053 shares advanced against 785 declining shares on the BSE. Share price of Dhunseri Petrochem locked at 10 percent lower circuit on the back of poor March quarter numbers.

There were pending sell orders of 29,495 shares, with no buyers available.

The company has posted net loss at Rs 12.5 crore versus loss of Rs 69.6 crore. Revenue for the quarter stood at Rs 172.8 crore.

The company has entered into a share purchase agreement with Egyptian Petrochemicals Holding Company (ECHEM) for the purchase of its 23 percent stake in joint venture company - Egyptian Indian Polyester Company S.A.E (EIPET) in 7 tranches, as per company release.

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Sobha, AU Small, Indoco Remedies, Atul Auto, Indiabulls Real, Thermax, UltraTech

Dalmia Bharat has reported a 2.6 percent decline in profit at Rs 209 crore and 8 percent increase in revenue with margin contraction of 360 basis points YoY.

 Sabina Vaisoha, Harpal Singh step down as independent directors w.e.f May 20; Extraordinary general meeting to be held on May 22

 Q4: Profit up 4.2 percent at Rs 17.9 crore versus Rs 17.2 crore; revenue up 17.7 percent at Rs 391.6 crore versus Rs 332.8 crore (YoY)

Suryalakshmi Cotton Mills Q4: Profit up 4 percent at Rs 4.2 crore versus Rs 4 crore; revenue up 1.1 percent at Rs 243 crore versus Rs 240.3 crore.

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LIC bet on these 10 small & midcap multi-baggers returned up to 1,000% in 1 year

India’s biggest domestic institutional investor Life Insurance Corporation (LIC) saw value additions of nearly Rs 14,000 crore to its portfolio even though the number of stocks in its portfolio decreased to 367 from 375 recorded in the December quarter.

Data available with Ace Equity till May 16 shows a list of 10 stocks in LIC’s portfolio that have emerged as multi-baggers in the last one-year. Most of the stocks that have returned 100-1,000 percent in the last one-year belong to the small and midcap space, which recently went through a massive correction.

If comparison, the BSE Midcap Index has plunged a little over 10 percent, followed by a near nine percent fall in the BSE Smallcap Index compared to 3.9 percent rise in the BSE Sensex so far in 2018.

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Sensex breaks 35K, down over 150 pts; all sectoral indices in the red

 Shares of Voltas slipped nearly 9 percent  on the back poor March quarter numbers.

The company has reported a 3 percent fall in its consolidated net profit at Rs 194 crore for the fourth quarter ended March 2018 against Rs 200 crore in the same quarter last fiscal.

The company has recommended dividend of Rs 4 per share on face value of Re 1 per share (400 percent) for the year 2017-18.The market extended opening losses, continuing correction for the fourth consecutive session amid higher crude oil prices, weak rupee.

The Sensex has broken 35,000 levels, down more than 181 points at 34,968.12 and the Nifty declined 47.20 points to 10,635.50 while the Nifty Midcap was down half a percent.

HDFC Bank, ITC, Reliance Industries, ICICI Bank, L&T and Infosys are pushing the market lower while Bajaj Auto gained 2 percent ahead of March quarter earnings due later in the day.

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Nifty extends losses, Sensex falls over 250 pts; Bank index dips 1%

Share price of Client gained 3.5 percent intraday as the company signed definitive agreement to acquire the remaining stake in its subsidiary company.

The company signed definitive agreement to acquire the remaining 49 percent stake in its subsidiary Client Insights to take the overall stake to 100 percent.

The consideration is paid in cash and said acquisition is likely to close in seven days and is subject to customary closing conditions. Public sector lender Syndicate Bank share price dropped nearly 6 percent after it reported a net loss of Rs 2,195.12 crore in the last quarter ended March 31, due to high bad loans that required higher provisioning.

The bank had posted a net profit of Rs 103.84 crore in the corresponding January-March quarter of 2016-17. In December quarter, there was a net loss of Rs 869.77 crore.

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Sensex up 400 pts, Nifty reclaims 10,900 as BJP leads in Karnataka

Vinod Nair, Head Of Research at Geojit said the market has been doing well in anticipation of the Karnataka election.

"And as expected there is no clear majority to any one party till now, market may wonder about the political movement going forward hinting about JD’s association to which alliance. Based on the final outcome, the market will define the movement going forward." The rupee recouped some opening losses, trading 10 paise lower at 67.62 against the US dollar.

It opened lower by 28 paise to a fresh 16-month low of 67.79 against the dollar in early trade today amid gains in the US currency overseas.

Forex dealers said the dollar strengthened against major global currencies today, having pulled up from its lowest level in more than a week as hopes for easing global trade tensions pushed US bond yields higher. 

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Top 12 stock ideas that could offer up to 15% return

After witnessing a rather smooth ride in the week gone by, investors should brace for some volatility around the Karnataka election verdict. The Nifty rose about 1.7 percent for the week-ended May 11 and managed to close above 10,800 levels. But the move was largely led by index heavyweights, despite the market breadth remaining negative.

It was a terrible week for so many counters, especially those from the midcap universe that have been hammered brutally during last week. The only positive from last week trade was the Nifty’s close above 10,800 levels, ahead of the Karnataka election verdict, which suggests a favourable election outcome for markets.

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Top 4 stocks to buy ahead of Karnataka election verdict which could give up to 10% return in 1 month

Karnataka election outcome would be the major trigger for the market in the coming week, and If NDA wins with a clear majority, then there are chances Nifty could scale up towards 11,000 levels in May series itself, Rajesh Palviya, Head – Technical & Derivatives Analyst, Axis Securities said in an exclusive interview with Moneycontrol’s Kshitij Anand.Karnataka election outcome would be the major trigger for the market in the coming week. The market has already discounted the positive side of the election outcome in prices.

In case of any negative surprise, we may see corrective action taking Nifty to the levels of 10,550-10,400 over the coming weeks. If NDA wins with a clear majority, then there are chances Nifty could scale up towards 11,000 levels in May series itself.

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Sensex opens over 100 points higher, Nifty above 10,750; metals, IT gain

Shares of PC Jeweller gained more than 18 percent in the opening trade on Friday as the company board approved the proposal of share buyback.

The board of PC Jeweller Thursday approved a proposal to buy back 1.21 crore shares at Rs 350 a piece, which translates into a premium of 67 percent from Thursday’s closing price of Rs 209.

As per March quarter-end data, the promoters hold around 57.63 percent stake in the company. LIC holds about 1.93 percent. The board noted that the promoters and promoter group of the company will not participate in the proposed buy back in a statement to the exchange

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Sensex begins the day 100 pts higher, Nifty firmly above 10,750; banks gain

Federal Bank slipped as much as 11.5 percent in the first 15-minutes of trade on Thursday, a day after it reported 43.5 percent year-on-year (YoY) drop in net profit at Rs 145 crore for the March quarter because of an increase in provisions and worsening asset quality.

Net profit in the same quarter last year had shot up 2,400 percent to Rs 256.6 crore due to substantially lower provisions and reduction in non-performing assets (NPAs).

Despite a fall in net profit, some of the brokerage firms remain positive on the stock and maintain their buy rating. However, some of them have reduced their target price post Q4 results.

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Sensex continues to trade flat, Nifty manages to hold 10,700

 

Shares have continued to trade flat this morning, digesting the developments coming in from the White House as well as higher crude prices. Selling pressure is visible across sectors, barring IT and metal names. 

The sectoral indices have risen up to 1.4 percent. A rally in global commodities has pushed up metal stocks in India. Hindalco and Vedanta are up around 2-4 percent. 

Tata Steel is the top gainer on the Sensex, with a rise of 1 percent. Meanwhile, banking stocks are witnessing some profit booking. 

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10 stocks favoured by fund managers that rose over 200% in a year and a half

Making money in any stock market is hard, especially in one rife with volatility. If you are an expert at picking stocks, you can use the volatility to your advantage and pick quality stocks whenever they correct.

But if you belong to the other camp, a sneak peek into what mutual fund managers are doing could give you some stock-specific ideas that have already returned spectacularly in the last year or so.

The Sensex might have gained around 15 percent in that period, but there are 10 stocks that fund managers kept steadily buying, which have returned 100-200 percent, according to data compiled from AceEquity.

Stocks on which fund managers are betting heavily include names like Jindal Steel & Power, which has shot up 248 percent, Escorts, which has gained 227 percent, and Nocil, which has risen 220 percent since December 30, 2016, the data showed.

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Sensex continues to trade higher, Nifty around 10,650; Ambuja Cements down 1%

India’s 10-year benchmark bond rallied early on Monday taking comfort from the central bank’s unexpected announcement last week about purchase of sovereign bonds via open market operation.

The 10-year benchmark bond yield opened at 7.60 percent, sharply lower from its Friday close of 7.73 percent. However, traders expect some pullback in the rally as the amount of bonds to be bought by the Reserve Bank of India is too little and too late, they said.

Soon after a disappointing sale of government bonds on Friday, the RBI said it will buy 100 billion rupees ($1.50 billion) of government bonds on May 17.

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Buy these 10 value picks on dips for returns up to 20% in 1 year

Sensex barely managed to climb above 35,000 last week. American investment bank Bank of America-Merrill Lynch (BofA-ML) says the index could well come under selling pressure and head towards 32,000 levels by December, a decline of over eight percent from its Thursday’s close.

“The target for the benchmark index does look scary especially when we are sitting comfortably above 35,000, but the deteriorating macro story could flip the market in the opposite direction.”

After a bout of selling induced by Budget 2018-19 proposals, the market rallied almost 5 percent in April and closed at 35,103 on Thursday.

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Nifty struggles below 10,700; metals, tech, pharma stocks dip

 Shares of J Kumar Infraprojects added 2.3 percent in morning trade on the back of orders win worth Rs 446 crore.

The company won an order from the Maharashtra Metro Rail Corporation (Pune Metro Rail Project) for construction of underground shafts for tunneling of Agricultural College and Swargate Metro Station and a multi-model integration at the Sargate metro station and R&R facilities for an amount of Rs 222.33 crore, as per company release.

The second include improvement of Chheda Nagar Junction, Ghatkopar (East) on the Eastern Express Highway from Mumbai Metropolitan Regional Development Authority (MMRDA) for an amount of Rs 223.85 crore

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These top 10 stocks can deliver up to 76% return over the next 15 months

 Nifty has rallied more than seven percent from its 2018 lows of 9,980 to over 10,700 levels despite higher crude oil prices, rising US bond yields and a weak INR:USD, on hopes of an earnings recovery, easing in trade war fears, geopolitical tensions and domestic institutional inflows.

The index has now been consolidating and the same is likely to continue for a couple of sessions, experts said, adding that investors are awaiting clarity on corporate earnings as well as Karnataka assembly elections that will be held next week.

From a 12-month perspective, IL&FS' Vibhav Kapoor expects earnings to support the market despite weak macros and sees it trading between 10,000 and 11,000 levels. “One needs to be wary of the 11,000-mark as that is when earnings will start to look expensive. Anything beyond that will be an opportunity to book profits in the short-term.”

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Sensex consolidates; April sales lifts auto stocks, HCL Tech top loser

NBCC share price gained 1 percent after it has received letter of appointment from Ministry of External Affairs, Govt. of India for the construction of Mahatma Gandhi Convention Centres (MGCC) in nine (9) African Countries namely Niger, Uganda, Malawi, Zambia, Liberia, Gambia, Burkina Faso, Togo and Gabon amounting Rs 2,000 crore.

 The market is trading mildly higher amid consolidation and weakness in Asian stocks. Auto, infra, select banks stocks and Reliance Industries supported the market while technology stocks were under pressure after HCL Tech earnings.

HCL Technologies is the biggest loser with more than 3 percent loss after Q4 earnings slightly missed analyst expectations while Auto index was up 1 percent after strong April sales.

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