RIL leads Sensex higher, Nifty ends above 10,9003 min read . Updated: 04 Feb 2019, 05:28 PM IST
- RIL and ONGC shares rose over 3% each
- Other top gainers included Bajaj Auto, TCS and Kotak Bank
A late pullback pushed Indian markets higher today, with Sensex rising 113 points to 36,582. At day’s low, the Sensex had slipped to 36,225 before gains in RIL, ONGC and TCS pulled the markets higher. The Nifty settled at 10,912, up nearly 0.20%. Bajaj Auto, HDFC, Maruti and Kotak Bank were among the other gainers. Among the losers, M&M, Sun Pharma, NTPC, Yes Bank and PowerGrid fell between 2% and 3%. Anil Ambani group stocks Reliance Capital, Reliance Infra and Reliance Power fell sharply today after another group company RCom said it will seek a fast-track resolution to its indebtedness through bankruptcy court. RCom shares fell nearly 35% today.
DHFL shares rebounded in noon trade after the lender it was keen to sell assets and some of its businesses to improve liquidity. The stock rose as management tried to assuage liquidity concerns on a conference call with investors and analysts. The stock was trading 6% higher at ₹118. DHFL shares lost nearly half of its market value over five sessions ending Friday, its worst week since listing, hit by claims of financial mismanagement - which it has denied - and broader sectoral woes.
In a note domestic brokerage Edelweiss said: “We retain our conviction that Titan is a strong play on discretionary spends and demand shift from unorganised to organised segment. We envisage Titan to extend its growth run led by market share gains, rising share of studded jewellery, new launches and retail expansion. Margin expansion levers such as higher share of studded (jewellery), in-house frame manufacturing (eyewear), cost optimisation and operating leverage are in place. Rolling forward (June 2020), we assign 55x PE multiple (earlier 50x) to arrive at revised TP of ₹1,182 (earlier, ₹990). We maintain ‘BUY’."
Titan shares today rose nearly 6% to a new high of ₹1,049 after the company’s December quarter earnings beat estimates. Watches and accessories maker Titan Co also said on Friday that its board has decided on a successor for its current managing director, Bhaskar Bhat. Jewellery business head, CK Venkataraman, will take over the reins from Bhat, who reaches retirement age on 30 September 2019. The company also reported a 45.97% jump in net profit and a 35.35% growth in revenue during the third quarter, mainly due to a strong festive season that boosted demand for all its product categories, led by jewellery.
Shares of Dr.Reddy's Laboratories Ltd gained as much as 3.11% to ₹2,878 rupees, highest since March 7, 2017. The generic drugmaker on Friday reported a 65.3% surge in its third-quarter profit to ₹500 crore, higher than the analysts' average estimate of ₹394 crore. (Reuters) (Read: Emerging markets keep up the growth tempo for Dr Reddy’s Laboratories)
Anil Ambani group companies traded lower after RCom has decided to opt for insolvency proceedings, following its failure to sell assets for paying back its lenders. Reliance Communications fell 48% to ₹6, Reliance Infra fell 7%, Reliance Capital 8%, and Reliance Power 8%.
Indian rupee today weakened, tracking losses in other Asian currencies as dollar gained after stronger-than-expected US jobs data. At 9.08 am, the rupee was trading at 71.67 a dollar, down 0.59% from its previous close of 71.26. The home currency opened at 71.54 a dollar.
Reliance Communications Ltd (RCom) will propose a plan to sell its telecom infrastructure assets, airwaves and real estate to resolve its debt, the firm said on Sunday. RCom, controlled by businessman Anil Ambani, last week said it will seek fast-track resolution through India's National Company Law Tribunal (NCLT).
Crisis-hit DHFL group sells close to 80% in Aadhar Housing to Blackstone: Private equity major Blackstone has agreed to buy nearly 80% of affordable homes-focused Aadhar Housing Finance from the Wadhawan group for an undisclosed sum. The group's holding company Wadhawan Global Capital (WGC) will be selling its 70% stake in the company, while its listed mortgage lender subsidiary DHFL will also be exiting its investment, which is reported to be around 9%, as per a company statement Saturday.