ITC hits 3-month high; stock gains 9% in one month Shares of ITC hit a three-month high of Rs 295 apiece, up 2 per cent on the BSE in an otherwise range-bound market on Friday. The stock of fast moving consumer goods (FMCG) was trading at its highest level since October 4, 2018. In past one month, ITC outperformed the market by gaining 9 per cent, as compared to a 3 per cent rise in the S&P BSE Sensex. Read more  

Xiaomi's IPO flops, but a select few shareholders earn 56,823% profit Xiaomi is a perfect example of how taking a company public can make a select number of shareholders a lot of money, even if the IPO flops. The stock lost about 30 per cent in the six months that followed its Hong Kong debut. For those who snapped up stock in Xiaomi’s earliest funding round, offloading the shares this week still proved hugely profitable. They paid as little as 1.95 Hong Kong cents for a slice between September 2010 and May 2011. Read more  

NIfty PSU Bank index declines

COMMENT by Mustafa Nadeem, CEO, Epic Research on Q3 results of Infosys Infosys is seeing a less volatile move as compared to its previous range since we are nearing the event. Yesterday, stock saw an inside day while the volatility also remains muted. The stock is in a very tight range of 665 - 690. Derivatives data suggest a range for the stock to be 700 to 640 and we expect this to be very crucial. Given its overall trend, and move beyond this range would give a directional view in the medium term. The trend is likely to emerge once the stock closes above 700.

Eveready Industries rallies 18% on reports of a promoter stake sale plan Shares of Eveready Industries India (EIIL) rallied 18% to Rs 214 per share on the BSE in early trade on reports that promoter B M Khaitan is likely to sell the flagship company, a leader in dry cell batteries and flashlights. “The B M Khaitan-led Williamson Magor is selling its flagship Eveready Industries, triggering an auction process for one of the country’s oldest consumer brands,” the Times of India report suggested. Read more

Prabhudas Lilladher on Marico   We downgrade our rating from BUY to Accumulate given    1) 28% jump in stock price since our upgrade and  2) rising probability that Copra price decline in the current down cycle will be far lower than previous occasions.    Our channel checks suggest steady Copra prices in January on account of demand supply gap and expected softening from Feb to August, although the magnitude might be far lower than expected. Our analysis suggests that Copra prices dip by 14-34% from the MSP during down cycle and the ratio has been coming down over the years. We estimate that Marico’s current parachute margins are arund 55-60%, which are lower than previous peak of around 70%.   We believe current bottom cycle margins can be lower than previous cycle given 60% increase in MSP (past 12 months) and focus on driving volumes. Our estimates factor in 150bps margin expansion in FY20 which will enable 20% PAT growth.  

Market check Index Current Pt. Change % Change   S&P BSE SENSEX 36,152.58 +46.08 +0.13   S&P BSE SENSEX 50 11,335.44 +14.06 +0.12   S&P BSE SENSEX Next 50 32,728.40 -13.73 -0.04   S&P BSE 100 11,121.21 +11.18 +0.10   S&P BSE Bharat 22 Index 3,491.85 +6.29 +0.18

HDFC Securities on Tata Consultancy Services   TCS booked deals with TCV at USD 5.9bn which included USD 2bn from BFSI, USD 3bn from NorthAm. (2) Management maintained its ‘double digit’ rev outlook for 4Q (double-digit for 2H earlier). (3) IoT, Intelligent Automation driving new deals in digital and demand for digital at ‘all-time high’. (4) Better traction in BFS in NorthAm and in Insurance in the Europe geography.  Near-term outlook: Strong deal bookings expected to drive growth.

Nifty IT index is trading over 1% lower weighed by TCS

Eveready surges over 15% in early trade

Sebi keeps NSE's consent petition on hold in the co-location case Capital markets regulator Securities and Exchange Board of India (Sebi) has kept the National Stock Exchange’s (NSE’s) consent plea on hold in the co-location (colo) case, until the Madras High Court (HC) decides on the writ petition filed against the exchange and others in the matter, said two persons privy to the development. NSE filed its second consent application with Sebi in October to settle the matter, after its first settlement plea was returned by the regulator in 2017. Read more