Share market LIVE: As Budget 2019 looms, Sensex, Nifty soar on Reliance Industries, Tata Power gains

One day ahead of the budget 2019, the Indian indices skyrocketed by near 2 per cent on Reliance Industries and banking stocks like ICICI. The BSE Sensex at the closing surged 665 points to 36,256 marks while the 50-stock Nifty index closed up by 179 points to 10,830 levels. Reliance stocks performed on the basis of the sector they belong.

The dollar struggled near a three-week trough against its major peers and US Treasury yields were significantly lower as investors reacted to the Fed's change in tone. Photo source: PTI

On the penultimate day of the Union budget 2019, the Indian indices skyrocketed by near 1.90 per cent. The BSE Sensex at the closing surged 665 points to 36,256 marks while the 50-stock Nifty index closed up by 179 points to 10,830 levels. Reliance stocks performed on the basis of the sector they belong. Reliance Communications closed up by 3.90 per cent after plunging by near 1 per cent in early trade session while Reliance Infra pared some losses after a slump by around 1.4 per cent. Reliance Infra was down by around 0.26 per cent. However, Dalal Street heavyweight Reliance Industries rose by near 2.45 per cent. The ICICI shares once gained around 1.2 per cent succumb to profit booking and finally settled at near 0.2 per cent gains. But, Adani stocks pared losses after the early plunge. Adani Port and Special Economic Zone shares went up by near 0.5 per cent after bleeding by near 2 per cent in the early morning and noo session trade while Adani Transmission went down by 0.44 per cent. Tata Powe shares romped by around 5 per ent.

3:30 Market closing: Sensex closed up at 36,256, surging 665 points, while Nifty 50 recovered 139 points to 10,830. Top gainers were Axis Bank, Tata Motors and GAIL, while Top losers for the day were Yes Bank, Bajaj Finserv and HCL Tech.

2:25 PM Expert tips: Buy Torrent Pharma advises IndiaNivesh

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Sapna Jhawar, Senior Research Analyst - Pharmaceuticals at IndiaNivesh says, "Torrent reported an in-line Q3, led by the Unichem acquisition and sustainable growth in the US. Gross margin at 70 per cent (in line) was a function of strong growth across segments, leading to an impressive EBITDA margin of 27.4 per cent (our estimate: 25.8%). Torrent demonstrated its ability to drive margin synergies with an improvement in Unichem’s EBITDA margin. Management reiterated its guidance of turning cash-accretive with the Unichem acquisition by the end of FY19 as a large part of the cost synergies have been achieved."

Sapna Jhawar of IndiaNivesh told that it is mainly on account of the raw material sources being shifted to Torrent’s suppliers, thereby improving gross margin and field-force rationalization. Management believes that Unichem’s portfolio will gradually grow faster than the IPM in the coming quarters on a sequential basis. We value Torrent at 16x FY21E EV/EBITDA as near-term earnings are likely to be suppressed owing to the Unichem acquisition (which is affected by high amortization charges), with a target price of Rs 2,001."

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#ZBizExclusive | लॉन्ग टर्म कैपिटल गेन (#LTCG) टैक्स में क्या होगा बदलाव? देखिए LTCG टैक्स से जुड़ी बड़ी खबर स्वाति खंडेलवाल के साथ।@SwatiKJain @AnilSinghviZEE #LTCGHatao pic.twitter.com/3bQsboGqel

— Zee Business (@ZeeBusiness) January 31, 2019

On what IndiNivesh suggests to market investors in regard to the stock outlook Jhawar said, "We recommend investors to buy the stock for the target of Rs 2,001 as the company fundamentals indicate a potential upside of around 8 per cent." The stock is currently hovering around Rs 1,852 per stock levels.

1:25 PM Expert tips: Buy Dixon Technologies for 45% gains, advises Elara Securities

Pankaj Chhaochharia, Analyst at Elara Securities told, "Dixon Technologies (Dixon IN) overall revenue grew by near 17 per cent to Rs 7.9bn despite contraction in reverse logistics and the mobile division. Excluding these two divisions, revenue grew by 29 per ent. Overall EBITDA grew by 37 per cent and margin expanded by around 70bp to 4.9 per cent, primarily on account of higher original design manufacture (ODM) revenue and lower commodity prices. Overall, profit grew by about 16 per cent to Rs 176mn."

On what is his suggestion for the investors in regard to the stock Pankaj told, "On the basis of strong fundamentals coming out, we recommend to buy the stock for a potential gain of around 45 per cent." He said that traders can take a buy position in the stock for the target of Rs 3,220 per stock levels. Currently, the stock is revolving around Rs 2,223 per stock mark.

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#BudgetKiPaathshaala में समझिए क्या होता है अंतरिम बजट वरिंदर बंसल से अनिल सिंघवी के साथ।@AnilSinghviZEE @varinder_bansal pic.twitter.com/5xjgl8QurU

— Zee Business (@ZeeBusiness) January 31, 2019

12: 30 PM Expert tips: Accumulate ICICI Bank shares, advises Elara Securities

In Q3FY19, ICICI Bank posted a net profit of Rs 16.0bn against our estimate of Rs 18.9bn; however, asset quality improved sharply in terms of fresh NPL accretion and higher provisions.

Commenting upon the outlook of the ICICI Bank stock Chintan Shah, Equity Analyst at Elara Securities told, "On core operational performance, NII growth was in-line with estimates, while operating expenses were slightly higher due to a decrease in G-Sec yields. Fee income rose 16 per cent YoY, largely aided by retail, which contributed 73 per cent of total fee income. In terms of asset quality, fresh NPL accretion was INR 20.9bn, while recoveries & upgrades stood at Rs 40.6bn, it included Rs 21.5bn from the sale of NPA with 100 per cent cash considerations, which weren’t part of NCLT. Overall, provision coverage improved to 68.5 per cent from 59.5 per cent in Q2FY18. We note total PCR was highest since FY14, although, retail loans PCR was at its lowest level since FY14 at 57 per cent. Management mentioned credit cost will begin to normalize from FY20, and, hence, we believe it will not be a drag on profitability."

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#BudgetSession | उम्मीद है कि संसद अच्छे से चलने दी जाएगी: पीएम #NarendraModi #Budget2019 #Budget2019WithZEEBusiness pic.twitter.com/jvBmBD0rg4

— Zee Business (@ZeeBusiness) January 31, 2019

On what he suggests to the market investors Chintan Shah of Elara Securities told, "The stock is near to its target of Rs 389. So, we advise investors to accumulate the scrip."

11:47 AM Expert tip: Buy Indian Oil Corporation stock for 24% gains, advises Elara Securities

Indian Oil Corporation (IOCL IN) reported PAT of Rs 7.2bn, which is higher than our est. of Rs 953mn PAT loss on higher GRM at $1.1/bbl (Elara: Negative $3.8/bbl) due to lower USD8.1/bbl inventory loss (Elara: $11.9/bbl). However, PAT down 91 per cent YoY, on crude price decline resulting in inventory losses and lower pet-chem EBITDA, partially offset by superior core GRM and marketing EBITDA (adjusted for inventory impact).

Commenting upon the outlook of Indian Oil Corporation stock Gagan Dixit, Analyst at Elara Securities told, "We recommend Buy rating on OMCs ability to gradually pass-on higher crude price impact on retail diesel/gasoline prices." He said that the fundamentals of stock have a potential to show an upside of near 24 per cent in short-term.

"Investors can buy this scrip for the target of Rs 167," told Dixit. Currently, the stock is hovering around Rs 135 per stock levels.

10:40 AM Among major Indian indices Nifty 100 index rose by 60 points or 0.55 per cent to 10,891 levels, BSE MidCap corrected near 32 points to 14,469 marks while BSE SmallCap jump over 37 points to 13,852 levels.

10: 07 AM Reliance Industries shares continue to surge on Thursday. Shares of Reliance Industries jump by near 1.4 per cent but other Reliance stocks performed as per the sectoral trends. Reliance Communications slide by near 1 per cent while Reliance Infra stock went southward by near 1.4 per cent.

10: 05 AM Adani stocks bleed again. Adani Ports and Special Economic Zone Limited bleed by near 1.27 per cent while Adani Transmission got a dent of near 0.35 per cent.

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#ZBizExclusive | #Budget2019 में सरकारी बैंकों के लिए क्या होंगे बड़े ऐलान, जानिए #Budget2019 से जुड़ी बड़ी खबर स्वाति खंडेलवाल से।@SwatiKJain @AnilSinghviZEE pic.twitter.com/Z8u3pWl1aH

— Zee Business (@ZeeBusiness) January 31, 2019

9:30 AM Infra major Ashoka Buildcon shares jump by around 3.5 per cent, Bharti Airtel, GAIL and Dilip Buildcon shares rose by over 1 per cent, NTPC stocks rallied near 1 per cent and Vodafone Idea rose by near 1.3 per cent. Among banking stocks, ICICI Bank extended its Wednesday rally by gaining near 3 per cent from its previous close while SBI stock rose by around 1.5 per cent. Axix Bank shares to had a jump of around half a per cent.

9:20 AM Except for realty sector all sectors are in a green zone. Reliance Industries share rose over 1 per cent while RComm too rose by 1 per cent and Reliance Infra went up by around 0.2 per cent. Shares of Adani Ports and Special Economic Zone continue to slide and went off by 0.8 per cent but Adani transmission stock gained over 1 per cent in early morning trade.

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कल #Budget2019 की हर बात समझनी हो तो आज 12:56 पर ज़ी बिज़नेस पर #BudgetKiPaathshaala देखना मत भूलिए..@AnilSinghviZEE @varinder_bansal pic.twitter.com/ciRR1OMEKa

— Zee Business (@ZeeBusiness) January 31, 2019

9:02 AM Shares to buy today: Buy Teamlease Services, advises HDFC Securities

Teamlease is witnessing increased demand in core staffing across sectors. There are around 8,000 open positions and portals like Schoolguru and Fresher’s world are helping in attracting talent. Core associates grew +16.6 per cent YoY, highest in the last eight quarters. Macro tailwinds, such as (1) Labour reforms, (2) Focus on higher compliance, (3) Rising preference for organized staffing providers, and (4) Government-driven skill development initiatives (NETAP) will drive about 20 per cent CAGR in organised flex-staffing.

Commenting upon the fundamentals of the Teamlease Services stock Apurva Prasad, Analyst, HDFC Securities told Zee Business in a written statement, "Teamlease reported strong revenue growth for 3QFY19 but missed on margins. Revenue stood at Rs 11.72bn up 7.5 per cent QoQ vs our est. of Rs 11.40bn. Growth was led by Core staffing (90 per cent of rev, 8.6 QoQ) offset by HR Services (3 per cent of rev, -16.8 per cent QoQ). Specialised staffing (7 per cent of rev) grew 4.6 per cent QoQ led by IT staffing offset by soft Evolve (Telecom staffing). EBITDA margin was down 11bps QoQ to 2.1 per cent (against our estimates of 2.3 per cent) led by a lower margin in Evolve and HR services. Core staffing margins expanded 20bps QoQ to 2.1 per cent led higher associate/core ratio (+8.1 per cent QoQ)."

On what should be the position investors can take in this stock Apurva Prasad of HDFC Securities told, "The fundamentals of the stock are promising and looks upside for near 30 per cent. We recommend investors to buy this stock for the target of Rs 3,300." The stock is hovering around Rs 2,520 per stock levels.

8:52 AM Shares to buy today: Buy HCL Tech, advises Narnolia Financial

The management expects the order booking to ramp up and accelerate growth in FY20.On margin front we expect the margin to be within the guided range of 19.5 per cent to 20.5 per cent for FY20 as the management is aggressively investing in both in training workforce on emerging technology and injecting fresh talent.

Commenting upon the fundamentals of the HCL Tech stock Niharika Ojha, Research Analyst, Narnolia Financial Advisors told Zee Business in a written statement, "Company’s 3QFY19 was encouraging quarter where revenue grew by 5.6 per cent QoQ CC beating the estimates; however margin reported a slight miss but remained under guided range of 19.5 per cent to 20.5 per cent. The core business continued to post growth mainly on account of the strong uptick in IMS business (grew 10.4 per ent in cc) and continued growth in ER&D Services( grew 5.1 per cent QoQ CC). Going forward we expect HCLTECH to deliver strong performance in FY20 on the back of continued deal momentum(won 17 new deals during the quarter), robust performance in ER&D(where the company is seeing core engineering to improve as structure reduction due to large wins in 2015 &2016 are slowing down and growth are seen in IP deals) , Improvement in IMS business(clocked double-digit growth in 3QFY19) and strong outlook for digital, products & platforms businesses mainly consisting of Mode 2 and 3( contributes around 29 per cent of the revenue). Even order booking in YTD which now stands at 40 per cent more than the last year, is giving clear strong revenue visibility going ahead.Also, the management after seeing strong booking and the robust pipeline has revised its guidance and now expect to end the year achieving the higher end of guidance(9.2 per cent to 11.5 per cent cc)."

On what should be the position investors can take in this stock Niharika Ojha of Narnolia Financial Advisors told, "The fundamentals of the stock are promising and looks upside for near 27 per cent. We recommend investors to buy this stock for the target of Rs 1252." The stock is hovering around Rs 988 per stock levels.

8:43 AM Shares to buy today: Buy Music Broadcast, advises HDFC Security

Music Broadcast Ltd’s (MBL) 3QFY19’s revenue /EBITDA/PAT grew by 14/22.6/38 per cent YoY on a low base, in-line with our estimates. The growth recovery was driven by 11 per cent rate hike in the legacy markets, festive advertising and contribution from the Govt, ECom & Auto sectors. Revenue growth guidance of 12-14 per cent remains intact on the back of the recovering the economy and political spends.

Commenting upon the fundamentals of the Music Broadcast stock Himanshu Shah, Analyst, HDFC Securities told Zee Business in a written statement, "Radio, being an add-on medium & for free; and with an industry size of around Rs 22bn, we agree with the management that the impact from digital should be limited. With a mix of non-transferable content (local & live information, interactive jocks & music), a radio will continue to maintain its uniqueness. Led by Phase-III expansion in new markets, utilization and modest price increases in established markets; consistent near 9-11 per cent growth is possible."

On what should be the position investors can take in this stock Himanshu Shah HDFC Securities told, "The fundamentals of the stock are promising and looks upside for Rs 402/share levels. We recommend investors to buy this stock for the target of Rs 402." The stock is hovering around Rs 288 per stock levels.

8:37 AM Shares to buy today: Buy Axis Bank for 12 per cent gains, says Narnolia Financial Advisors

Assets quality has been improving with moderating slippages as well as with good traction in recovery & up-gradation. Majority of corporate slippages were from stress pool (BB & below rated) and the pool has been declining. Management feels fairly confident that there would not be any major downgrades to be added to this pool as most of the stress assets has been recognized as NPA. We believe the improvement in assets quality will continue going ahead due to limited stress in the book, change in assets mix and higher recovery and up-gradation.

Commenting upon the fundamentals of the Axis Bank stock Deepak Kumar, Research analyst at Narnolia financial Advisors told Zee Business in a written statement, "After the peak of credit cost at 3.6 per cent in FY18, we expect it to gradually come under 1 per cent in FY20. NIM is likely to improve due to MCLR reset, lower slippages and improving pricing power. New MD & CEO has taken charge of Axis Bank and laid down its strategy on three vectors- growth, profitability, and sustainability. He believes the bank can produce 18 per cent RoE on a sustainable basis over a period of time and three drives would be expensed optimization, credit cost reduction and business mix optimization.

On what should be the position investors can take in this stock Anu Gupta, Research Analyst at Narnolia Financial Advisors told, "The fundamentals of the stock are still promising and looks upside for around 12 per cent. We recommend investors to buy this stock for the target of Rs 740." The stock is hovering around Rs 661 per stock levels

8:30 AM Shares to buy today: Buy KEC International Ltd. for potential 47 per cent upside, says Narnolia Financial Advisors

KEC continue to leverage its capabilities in non T&D business, revenue from non-T&D was up by 60 per cent YoY. Going forward we believe that the non T&D business will continue to outperform the T&D business. International T&D business will gradually gaining the traction and from next year SEA business will led the show. We expect that the pressure on working capital will be ease out in Q4FY19 as the 1) KEC has collected around Rs 270 Cr from Saudi post-Q3FY19 2) Sale of BoT assets will fund the working capital requirement 3) large advances is expected to receive in Q4FY19. Management expects to bring down interest cost as per cent of sales at 2.7x from 3.2x in Q4FY19. However, we have trickle down our revenue estimates by 3/5 per cent for FY19/20E on account of slow execution of T&D projects (Domestic and International).

On what should be the position investors can take in this stock Sandip Jabuani, Research Analyst at Narnolia Financial Advisors told Zee Business in a written statement, "The fundamentals of the stock are still promising and looks upside for around 47 per cent. We recommend investors to buy this stock for the target of Rs 348." The stock is hovering around Rs 237 per stock levels

8:11 AM Asia stocks rose to a four-month high on Thursday, tracking Wall Street, after the Federal Reserve pledged to be patient with further interest rate hikes, signaling a potential end to its tightening cycle amid signs of slowing global growth. The Fed on Wednesday held interest rates steady as expected, and also discarded its promises of "further gradual increases" in interest rates. The central bank said it would be "patient" before making any further moves amid a suddenly cloudy outlook for the U.S. economy due to global growth risks and impasses over trade and government budget negotiations.

The dollar struggled near a three-week trough against its major peers and US Treasury yields were significantly lower as investors reacted to the Fed's change in tone.

MSCI's broadest index of Asia-Pacific shares outside Japan rose to its highest since Oct. 4 and was last up 0.4 per cent.

Japan's Nikkei rose 1.4 per cent. Australian stocks added 0.4 per cent, while South Korea's KOSPI advanced 0.7 per cent.

On Wall Street, the Dow and the Nasdaq rallied 1.7 per cent and 2.2 per cent, respectively, on hopes the Fed's pause would give the U.S. economy and corporate profits more room to run.

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