10:19 AM
Panaya deal, new CEO, guidance: Analyst views on Infosys Q2 results
Infosys September 2017 (Q2FY18) results were a mixed bag. While the numbers met market expectations on the financial performance (revenue, profit after tax, etc) front, a cut in FY18 guidance to 5.5 – 6.5% came in as a surprise. The results were announced post market hours on Tuesday.
The stock opened marginally lower on Wednesday at Rs 921 levels.
Click Here is how leading research houses and brokerages have interpreted the statements
10:07 AM
Govt to sell 5% stake in NLC at Rs 94 per share, may fetch Rs 800 cr
The Centre will sell up to 5 per cent stake in NLC India Ltd (NLCIL), formerly Neyveli Lignite Corporation (NLC). The company comes under Ministry of Coal.
The 5 per cent stake sale would fetch about Rs 800 crore to the exchequer. Floor price fixed at Rs 94 a share and it will be sold through a two-day offer for sale (OFS) beginning Wednesday.
READ MORE9:55 AM
Index changes have a story to tell
Financial advisory, Motilal Oswal, provided an interesting “time-lapse” of the Nifty 50 index across a period of 15+ calendar years, starting January 2002. Changes in constituents and changes in the weights of individual stocks and sectors also give us an insight into long-term returns.
There was a key change in methodology in 2009. The Nifty started being weighted by free-float market capitalisation instead of absolute market cap. This reduced the importance of PSUs.
READ MORE9:42 AM
Edelweiss on Asian Paints
Asian Paints’ (APL) Q2FY18 consolidated sales (up 15% YoY) came slightly ahead of estimates, while EBITDA (up 13.6% YoY) and adj. PAT (up 7.5% YoY) came in line with estimates. With continuing impact of GST within trade channel in July, decorative volumes grew ~8% YoY (in line with our estimates) though comparatively softer than Kansai Nerolac’s volume growth of 18% YoY and APL’s historical run-rate of >10%. With no price hikes in the quarter and sustained inflationary raw material scenario, gross margin plummeted by 308bps YoY to 41.3% (lowest in ~3 years). Anticipated volume recovery, price hikes, and government’s housing push lend growth and margin comfort. Maintain ‘BUY’ on dips
9:42 AM
CRISIL on PSU bank recapitalisation
The Rs 2.11 lakh crore recapitalisation package for public sector banks (PSB) announced by the government on Tuesday is a credit positive and marks a major step in revitalising these institutions saddled with non-performing assets (NPAs).
PSBs need Rs 1.4 to 1.7 lakh crore additional capital to meet Basel III requirements by March 31, 2019, so the package is adequate. The government’s action sends a strong signal of support to PSBs and reinforces CRISIL’s belief that such backing will continue – an aspect that is factored into its ratings
9:40 AM
Nomura on PSU bank recapitalisation
We are positively surprised by the quantum of the recapitalization and it matches our estimates of capital requirements for PSU banks for both NPA provisioning and some growth. Assuming the entire infusion is equity in nature (we are still unclear whether this is debt / equity), there would be significant dilution for minority investors, but given that current prices are higher than FY17 adjusted book values for most PSU banks, this recap package should drive a re-rating in PSU banks. Among our coverage stocks, we expect the highest positive impact on PNB (Buy rated).
9:35 AM Earnings Impact: HCL Tech
9:34 AM
Earnings
HCL Technologies, India's fourth-largest software services exporter, posted a 9.5 percent rise in second-quarter net profit, helped by higher revenue from its software services sector.
Net profit attributable to shareholders rose to Rs 2,207 crore ($339.12 million) in the three months ended Sept. 30, from Rs 2,015 crore in the same period a year earlier, HCL Technologies said on Wednesday.
9:33 AM 2.1 lk crore recapitalisation plan: SBI rallies
9:29 AM Earnings Impact: Infosys
9:28 AM Sectoral Trend: All sectoral indices were trading in green
Source: NSE
9:27 AM Nifty Bank up over 2%
Source: NSE
9:22 AM PSU Bank index gains 20% on bank recapitalisation plan
Source: NSE
9:21 AM Top Sensex gainers and losers
Source: BSE
9:19 AM Broader Markets
In broader markets, the BSE Midcap and BSE Smallcap indices were trading higher by 0.8% each
9:18 AM Markets open at new highs
Benchmark indices opened at record high with Nifty crossing 10,300 following a mega recapitalisation package for banks and a Rs 7 lakh crore infra booster ahead of October F&O expiry.
At 9:17 am, the BSE Sensex was trading at 32,952, up 346 points while the broader Nifty50 index wass ruling at 10,277, up 71 points
9:11 AM
Technical calls from Prabhudas Lilladher
BUY BANK OF INDIA
CMP: Rs 141
TARGET: Rs 150
STOP LOSS: Rs 135
BUY ICICI BANK
CMP: Rs 266
TARGET: Rs 290
9:10 AM
Nifty View by Prabhudas Lilladher
Nifty has been consolidating at these levels with a positive bias as long as 10,120 levels hold as crucial support level. The support for the day is seen at 10,150 while resistance is seen at 10,250.
9:08 AM
44 stocks to report results for Q2 today
As many as 44 stocks are likely to report results for Q2 on Wednesday including Coromandel International, Emami, Engineers India, Exide Industries, Geojit Financial Services, HCL Technologies, Hindustan Unilever, IDFC Bank, Kotak Mahindra Bank, M&M Financial Services, Mindtree, NIIT, PI Industries, RBL Bank, Tata Communications, V-Guard Industries, Syngene International etc. among others.
9:07 AM
Reliance Nippon AMC garners Rs 462 crore
Reliance Nippon AMC on Tuesday raised a little over Rs 462 crore from anchor investors, ahead of its initial pubic offering which opens on Wednesday.
The company's IPO committee has finalised allocation 1,8,360,000 equity shares to 24 anchor investors at Rs 252, which is also the upper price band for the offer
9:06 AM Murthy unhappy
Infosys co-founder N R Narayana Murthy on Tuesday expressed his disappointment after the company’s board led by Nandan Nilekani gave a clean chit to former chief executive Vishal Sikka over allegations of governance failure in the Panaya acquisition.
“I stand by every question on poor governance raised in my speech to Infosys investors dated August 29, 2017. The fact remains that none of these questions has been answered by the Infosys board with the transparency it deserves,” Murthy said in a statement, adding he was “disappointed”.
READ MORE9:05 AM Infosys Q2
Infosys said second-quarter profit grew 3.2% to Rs 3,726 crore, beating estimates on the back of employee productivity as well as increased business from fixed-price projects to over half of its revenue, giving the firm more leeway in deploying resources, and improving margin to 24.2%.
Revenue grew 1.5% to Rs 17,567 crore in the three months to September compared to a year ago. Infosys cut its growth forecast for the year ahead by 200 basis points, much steeper than estimates, citing a weak second half of the financial year.
Infosys now expects to grow 5.5%-6.5% in constant-currency revenue for FY18, as against its April forecast of 6.5%-8.5%.
9:03 AM
Bank recapitalisation plan
The government on Tuesday unveiled a Rs 2.11-lakh crore support for public sector banks (PSBs), struggling with mounting bad loans, in order to spur “genuine” infrastructure lending for upcoming mega projects.
The move is aimed at creating jobs and boosting economic growth, which slumped to a three-year low of 5.7% in the first quarter of the current financial year.
The government will pump in Rs 1.35 lakh crore of this recapitalisation through bonds. Another Rs 76,000 crore will come from budgetary support and banks tapping the market.
It will soon come out with “recapitalisation bonds” to support public sector banks, which account for 70 per cent of non-performing assets (NPAs) in the banking system at Rs 7.33 lakh crore.
9:02 AM
SGX Nifty
The Nifty futures on the Singaporean stock exchange were trading higher by around 74.50 points at 10298, a rise of around 0.72%, indicating a gap up opening for the Indian markets
9:00 AM
Asia Check
Asian shares trod water in early trade on Wednesday, while U.S. Treasury yields and the dollar got a lift following a report Republican senators were leaning towards John Taylor to be the next Federal Reserve chief.
MSCI’s broadest index of Asia-Pacific shares outside Japan was flat in early trade.
Japan's Nikkei stock index was up 0.5% in early trading, on track for an unprecedented 17th straight session of gains after the victory of Prime Minister Shinzo Abe's coalition in Sunday's election raised investors' hopes of continued yen-weakening stimulus.
8:59 AM Dow ends at record high
On Wall Street, stronger-than-expected results and forecasts from companies including 3M and Caterpillar also fuelled optimism about economic strength, with the Dow Jones Industrial Average closing at a record high.
The Dow rallied on Tuesday, registering its biggest daily percentage gain in more than a month. The Dow Jones Industrial Average rose 167.8 points, or 0.72%, to end at 23,441.76, a record-high close. The S&P 500 gained 4.15 points, or 0.16%, to 2,569.13 and the Nasdaq Composite added 11.60 points, or 0.18%, to 6,598.43
8:35 AM Good Morning!
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First Published: Wed, October 25 2017. 09:49 IST
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