MARKETS LIVE: Indices range-bound, Nifty near 10,700 mark; PSU banks slip
Bajaj Auto spurts after strong sales in May
Bajaj Auto rose 4.84% to Rs 2,885.40 at 11:55 IST on BSE after the company reported a 30% growth in its total vehicles sales at 4.07 lakh units in May 2018 over May 2017. READ MORE
Idea Cellular firms up on wrapping up tower sale
Idea Cellular rose 1.22% to Rs 62.40 on BSE after the company announced completion of sale of standalone tower business to ATC Telecom Infrastructure. The announcement was made after market hours yesterday, 31 May 2018. READ MORE
Oil slip for bond market: Foreigners dump Indian paper at record pace
Foreign investors are dumping Indian bonds at a record pace as surging oil prices threaten to worsen the nation’s finances, stoke inflation and hurt economic growth.
Overseas funds have pulled $4.5 billion from the local debt market since the start of the year, the most in any year-to-date period in data going back to 1999. Second-quarter outflow was the biggest among the major Asian nations as Brent crude rose above $80 a barrel, the highest since 2014. READ MORE
Sebi defers implementation of new higher margin norms for derivatives
Capital market regulator Securities and Exchange Board of India (Sebi) has deferred the implementation of norms requiring brokers to collect higher upfront exposure from clients. The new norms were to come into effect from June 1. Instead, they will now come into effect from July 1, the National Securities Clearing Corporation (NSCCL), an arm of the National Stock Exchange (NSE), has said in a circular. READ MORE
Rising level of scrutiny: Auditors take guard on corporate breaches
In the past month, auditors of three listed companies – Manpasand Beverages, Atlanta and Vakrangee — have quit, citing potential violations. In another instance, Hindustan Construction Company (HCC), they have raised red flags.
In the recent past, the role of auditors has come in for widespread criticism from government and regulatory agencies, including the Securities and Exchange Board of India (Sebi). This has led to auditors taking a stricter stance. READ MORE
Centrum on Mirza International
We maintain our BUY rating on Mirza International with a target price of Rs205 (20x FY20E EPS). While management has achieved its FY18E guidance of Rs4bn domestic sales, they have further guided for Rs6bn sales for FY19E on the back of new product launches and entry into women footwear. They believe the 100 online-offline large format stores have the potential to generate Rs30mn sales each which would offer them significant upside.
Further, sports shoes and Bond Street have contributed 30% to the domestic footwear sales which would further grow in FY19 as they launch new variants. Management remains confident of double digit growth in the exports business post three consecutive years of decline while leather business would increase utilisation levels and add to margins.
The indices are moving in a narrow range with some negative bias on Friday taking cues from their global peers.
Backed by government spending and investment, the economy grew at a seven-quarter-high rate of 7.7 per cent in January-March. The data was released after market hours the previous evening.
MSCI's decision a year ago to include yuan-denominated Chinese stocks, or "A-shares", into its emerging market (EM) index triggered a rally in Chinese blue-chips in 2017, though the market has corrected this year amid rising borrowing costs and fears of a Sino-U.S. trade war.
On Thursday, the rupee edged up by 2 paise to end at 67.41 against the US currency on stray dollar selling by banks and exporters also supported by expectations of robust macroeconomic outcomes.
South Korea’s KOSPI was up 0.7 per cent on upbeat export data while Japan’s Nikkei advanced 0.3 per cent, buoyed by the yen’s weakening against the dollar.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.1 per cent but the index was still down roughly 0.6 per cent for a week in which it touched a six-week low on concerns about political developments in Italy.
Brent crude dipped 0.1 per cent to $77.50 a barrel. Prices swerved between $74.49, a three-week low, to $78.75 this week on speculation towards output by major oil-producing nations. US crude was down 0.15 per cent at $66.94 a barrel.
(with wire inputs)