The broader indices including the Nifty and the Sensex�are trading on a negative note this�Monday afternoon with the Nifty�down 23 points at 10,798 and the Sensex�is�trading lower by 83 points at 35,606.
Nifty auto is down 1 percent dragged by Tata Motors and Tata Motors DVR which fell 4-6 percent after�auto tariff threat by US as well as weak JLR trends as well. Multiple brokerages see lack of catalysts in the short term on the back of weak demand and volume growth.
Global research firm CLSA�has a sell�rating�on the stock with target�of�Rs 295.�The global research firm observed that the firm��s benefits from operating leverage will be limited on the back of weak demand. Further, it expects JLR��s cash flow to remain under pressure for FY19-20. Overall, it remains negative on JLR on the back of these multiple headwinds.
Credit Suisse�on the other hand has an�outperform�rating with�target�of�Rs 460.�The financial services firm expects moderate volume growth for JLR across regions. It highlighted how JLR��s capex plan could be flat for three years and that the medium term margin plan is reliant on new architecture.
related news IDBI Bank down 1% on possible stake acquisition by LIC Idea Cellular slips over 7% on possible delay of merger with Vodafone India IndiGo operator, InterGlobe Aviation, falls 2% after Chief Commercial Officer quitsDeutsche Bank�has initiated a�buy�on the stock with�target�of�Rs 380.�The investment bank is now more confident of the firm��s plan to reduce cost base. However, it said that in the short term, the stock is lacking material catalysts. It also said that the consensus was building in lower volume growth for JLR.
However, Morgan Stanley�has an�equalweight�rating on the stock with�target�of Rs�339 per share.�It�observed that free cash flow being negative in FY18 and FY19 was to be noted. Regulations pushing the industry towards high-cost electrified power trains, it said, adding that despite favorable trend JLR's margin is lower than those of peers.
The other top auto losers included names like Ashok Leyland, Bharat Forge, Motherson Sumi Systems, Amara Raja Batteries�and Hero MotoCorp among others.
Bank Nifty is trading weak with stocks like�Axis Bank, ICICI Bank, Bank of Baroda, Punjab National Bank and State Bank of India shedding up to�2�percent each.
Nifty energy is also in the red dragged by Bharat Petroleum Corporation, Hindustan Petroleum Corporation, IOC, ONGC and NTPC among others.
From the�FMCG space, Emami shed over 2 percent while ITC, Proctor & Gamble, United Breweries and United Spirits are the other losers.
Idea Cellular from the telecom space is down over�7�percent after news of Idea-Voda merger may get delayed as DoT readies fresh demand of Rs 4,700 crore. The other losers from the Nifty infra space included BHEL, Adani Power, Interglobe Aviation, IRB Infra and NCC among others.
Metal stocks are also trading weak dragged by Coal India which is down 2 percent followed by Jindal Steel & Power, NALCO and Welspun Corp.
Nifty PSU banks are down over 1 percent as stocks like Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, PNB, SBI, Syndicate Bank and Union Bank of India are all down in the afternoon trade.
Nifty pharma is trading in the green led by Cadila Healthcare, Glenmark Pharma, Lupin and Sun Pharma.
The top gainers among Nifty constituents were UltraTech Cement, Bajaj Finance, Infosys,�Eicher Motors and Bharti Infratel.
The most actively traded stocks on the NSE were Sun Pharma, HDFC, Sun Pharma,�Bajaj Finance and Reliance Industries.
The top losers included Tata Motors, BPCL, HPCL,�ICICI Bank and Coal India, each shedding between 2-4 percent.
Some of the top gainers on BSE are PNB Housing Finance which zoomed close to�12�percent followed by KEC International, Vakrangee,�Page Industries and TVS Motor Company.
The top losers included Idea Cellular, Allahabad�Bank, Tata Motors DVR, Tata Motors and�Himachal Futuristic Communications.
Abbott�India, Bajaj Finserv, Bajaj Finance, Jubilant Foodworks and Page Industries are few stocks that hit fresh 52-week high in the�afternoon�trade.
On the other hand, 124 stocks hit new 52-week low including names like�Bank of Baroda, Cummins India, EID Parry, HCC, Jain Irrigation Systems, NHPC, NTPC and UPL among others.
The breadth of the market favoured declines, with�570�stocks advancing, 1111�declining and�393�remaining unchanged. On BSE,�907�stocks advanced, 1557�declined and�136�remained unchanged.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd. First Published on Jun 25, 2018 02:24 pm
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