Sensex up 100 points, Nifty touches 8850; HDFC Bank up 1%
1:58 PM Buzzing stock: Shares of Marksans Pharma soared nearly 20 percent intraday Monday as investors bet on positive developments from a UK health regulator’s inspection.
The company’s plant located at L-82 and L-83, Verna Industrial Estate in Goa had an inspection by UK’s Medicines and Healthcare products Regulatory Agency (MHRA) from February 14-17, 2017, it firm informed the BSE.
The inspection was completed without any critical observations, the company informed. It is now awaiting further instruction from the agency in this regard.
1:45 PM Management Interview: Lloyd Electric’s stock has plummeted nearly 20 percent intraday on Monday on the back of the deal announcement to sell its consumer durables business to Havells India.
The acquisition will help Havells expand its product profile and distribution, says Anil Rai Gupta, CMD of Havells India in a media interaction.
Over the weekend, Havells announced the acquisition of Lloyd’s consumer durables business for Rs 1,600 crore.
Gupta said Havells may look at a debt of Rs 500-600 crore to fund the deal while the balance will be paid through internal accruals. While Lloyd’s margins have been lower for some time due to investments in branding and promotion, Gupta believes the company is now at the cusp of growth and margins will start improving. LLoyd’s EBITDA margin is around 6 percent, less than half of Havells’ 13-14 percent.
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1:30 PM Buzzing stock: Jindal Steel and Power hit a fresh 52-week high of Rs 102.20, up 10 percent intraday Monday.
Brokerage house Kotak upgraded Jindal Steel and Power to buy from sell and also revised target price upward to Rs 125 from Rs 60 earlier, citing likely financial turnaround.
Kotak says JSPL’s steel operations can engineer a financial turnaround over next 1-2 years by commissioning of 3.2 million tonne per annum blast furnace at Angul operations.
Steady margins from improved steel markets can deliver strong earnings growth over FY2018-19, it feels. Kotak says improvement in power earnings is contingent on better demand. Cash flows and debt serviceability can improve materially starting second half of financial year 2017-18, according to the research firm.
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1:15 PM Expert speak: HDFC Mutual Fund is quite optimistic on Indian market as macro economic indicators are favorable for making investments, said ace fund manager Prashant Jain, Executive Director & Chief Investment Officer at HDFC Mutual Fund.
“Indian interest rates are stable, inflation is low, capex is rising and NPA’s are peaking out. These factors show that environment is favorable for investments,” Jain said. Jain was speaking at a Cafemutual IFA event here on Monday.
In his view,interest rates will maintain a downward bias but the room for fall is clearly much less. Stable interest rates will drive company profits, he added.
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The market continued its positive momentum and was trading at day’s high. The bourses had seen a subdued opening, but reversed its losses in the first hour of trade.
The Sensex was up 98.09 points or 0.34 percent at 28566.84, while the Nifty touched the 8850-mark before trading 28.20 points higher at 8849.90. About 1650 shares had advanced, 982 shares had declined, while 173 shares remained unchanged.
Tata Steel, GAIL and TCS were the top gainers on the BSE, while ITC, Axis Bank and Dr Reddy’s were the top losers.
HDFC Bank continued its upward momentum and rose over 1 percent intraday. Frenzied buying by FIIs in the HDFC Bank stock on Friday led to the statutory foreign investment limit being crossed. The stock exchanges told the custodians of the FIIs that purchases made after 1:40 pm that day—when the RBI notification about the breach of the limit was flashed on stock exchange terminals—will not be settled. This is learned to have been done at the instruction of the RBI, said sources.
