Net Inflows into equity mutual funds rose to Rs 11,756 crore in March 2019, the highest in five months. Fund houses were aggressively buying insurance and power stocks, while selling oil and finance stocks in March. According to a report by Prabhudas Lilladher, insurance stocks, which included ICICI Pru Life Insurance, SBI Life Insurance, and HDFC Life Insurance were the most sought by mutual funds. Power stocks too, attracted fund managers. Infrastructure stocks, such as Larsen & Toubro and Sadbhav Engineering, were the top picks by MFs. Under consumers category, MFs bought Sheela Foam, Jubilant Foodworks, and Relaxo Footwears.
Balrampur Chini Mills has approved buyback of over 84.38 lakh fully paid up equity shares of FV Re 1 each representing up to 3.69% of the total number of equity shares. The buyback is fixed at a price of Rs 175 per equity share (29% premium over CMP of Rs 129) for an aggregate amount of up to Rs 147.67 crore via tender offer. The record date is fixed as April 18, 2019. 15% of the offer size will be reserved for retail shareholders (holding value less than Rs 2 lakh). However, acceptance ratio is expected to be very low.
Global research firm Goldman Sachs has given a BUY call on ICICI Bank stock and has raised the target to Rs 492 per share. The brokerage feels that the lender’s strong deposit franchise and lower cost of funds will put the company at an advantage. Goldman Sachs expects ICICI Bank to deliver Return on Assets (ROAs) of 1.8% and Return on Equity (ROEs) of 17% for FY20-21.
Shares of Deepak Fertilisers and Petrochemicals Corporation rose 9.4% intraday on Tuesday after company commenced commercial production of Nitric Acid Plant at Dahej, Gujarat. The new facility, with project cost of approximately Rs 550 crore, has production capacities of 92 KTPA for Concentrated Nitric Acid (CNA) and 149 KTPA for Diluted Nitric Acid (DNA).
Indian benchmark indices opened higher on Tuesday following positive trade data and IMD monsoon forecast. The Sensex riose over 200 points and Nifty 50 was trading above 11,700. Stock-specific action will be in focus as investors will look out for the March-quarter earnings of individual stocks. Vedanta, Coal India, ICICI Bank, Bharti Infratel, and IOC gained the most on Nifty, while Infosys, Tata Steel, Tata Motors, HUL, and HDFC Bank fell the most on the index.
Tata Metaliks Ltd, manufacturer and supplier of pig iron, said on Monday its net profit rose by 17.74% to Rs 64.35 crore during the fourth-quarter ended March 31, 2019. The company had posted a net profit of Rs 54.65 crore in the year-ago quarter. Its total income rose over 7% to Rs 596.62 crore in the January-March quarter of 2018-19 as compared to Rs 555.77 crore in the corresponding quarter of the previous fiscal.
Real Estate Company Shriram Properties has received market regulator SEBI's go-ahead to float an initial public offering (IPO) through which it plans to raise about Rs 1,250 crore. The firm, which approached the regulator in December 2018, obtained SEBI's "observations" on April 9. SEBI's observations are necessary for any company to launch public issues such as IPO, follow-on public offer and rights issue.
Vodafone Idea (VIL) has said that its promoter shareholders -- Vodafone group and Aditya Birla Group -- will participate for an amount of up to Rs 20,000 crore in the rights issue, instead of the previously announced amount of up to Rs 18,250 crore. The promoters and promoter group reserve the right to subscribe to additional rights issue shares to meet any under subscription in the Rights Issue up to the extent permitted by the SEBI.
According to the market consensus, the Nifty can offer gains of 7.2% in a year, among the highest in global markets. However, the stocks that are expected to offer returns of over 10% have been underperformers over the past six months. These include ONGC, Hindalco, Mahindra & Mahindra, Larsen & Toubro (L&T), and Zee Entertainment. Besides, stocks including Reliance Industries, UltraTech Cements, Kotak Mahindra Bank, and Bajaj Finserv, which have largely driven the current rally, seem to have reached full potential. ONGC has the highest likely upside of 28% in the next 12 months.
IT major Wipro will be in focus on Tuesday ahead of its March-quarter earnings scheduled later in the day. Along with the earnings, Wipro will also be considering a buyback today. So that will be important. Wipro has been reporting strong numbers for the last two quarters. In the December quarter, it had a growth of 2.4%, in the quarter prior to that, in the September quarter, it had a growth of 2.8%.
Speaking to CNBC TV18, stock market expert Deepak Shenoy said, “The top IT companies are going to perform despite the dollar not appreciating substantially largely because of volume growth and I expect that to happen only after the September or December quarter. It is a good time to be a buyer in the stocks but expect results to come in only towards the later part of this year.”
Lakshmi Vilas Bank (LVB) on Monday said it plans to allot nearly 5% equity shares on a preferential basis to Indiabulls Housing Finance Ltd (IBHL). It is expected that the relevant date (of allotment of equity) could be by the end of April 2019, it added. The board of LVB has approved the merger with IBHL in which shareholders of the bank will get 14 shares of IBHL for every 100 shares they hold. However, the RBI is yet to examine the merger proposal.
Sharekhan is bullish on Infosys and has recommended buy rating on the stock with a target price of Rs 840 in its research report dated April 12, 2019. Infosys would gradually catch up in revenue growth with TCS in FY2020E and in-turn would narrow the valuation gap with TCS going forward, report said. The management cut its EBIT margin guidance to 21-23% for FY2020E. However, strong deal wins, healthy deal pipeline and additional revenue from acquistions would drive the revenue growth in FY2020E.
Sharekhan is bullish on Tata Consultancy Services and has recommended buy rating on the stock with a target price of Rs 2400 in its research report dated April 12, 2019. The brokerage house is positive on TCS, given acceleration in deal wins with increasing TCVs, robust digital growth and strong demand commentary. TCS reported higher-than-expected constant currency revenue growth of 2.4% q-o-q and 12.7% y-o-y.
Benchmark indices started the week on a positive note driven by banks, auto, metals and select technology stocks. Nagaraj Shetti, Senior Technical & Derivative Analyst, HDFC Securities said the underlying short term trend of Nifty continues to be positive. Nifty closed at 11,690.35 on April 15. According to the Pivot charts, the key support level is placed at 11,657.47, followed by 11,624.63. If the index starts moving upward, key resistance levels to watch out are 11,713.87 and 11,737.43. Maximum Call open interest of 26.29 lakh contracts was seen at the 12,000 strike price. This was followed by 11,800 strike price.