2:50 pm Morgan Stanley on Maruti:
Morgan Stanley has maintained overweight rating on Maruti Suzuki, citing passenger vehicle segment recovery. However, the company slashed target price to Rs 4,310 (from Rs 4,770) following cut in earnings per share and EBITDA estimates due to recent duty hikes, slow pace of volume recovery and adverse forex movements.
It reduced its earnings per share estimates for FY16, FY17 and FY18 by 3 percent, 11 percent and 8 percent, respectively.
According to the brokerage, pace of passenger vehicle segment recovery is slow but car cycle should trend up in coming years. Rolling five-year CAGR for passenger vehicle segment is 2.1 percent for FY11-16 – this is the lowest in the last 20 years.
Morgan Stanley says Maruti is in the midst of a very strong model cycle, which it thinks can keep company’s volume growth ahead of segment growth rates.
2:35 pm Buzzing: V2 Retail shares rallied nearly 11 percent intraday on opening three stores in northern part of India.
“V2 has launched three more operational stores – two in Uttar Pradesh (Gorakhpur & Azamgarh) and one in Purnia, Bihar,” says New Delhi-based retail company.
Its Varanasi (Uttar Pradesh) store has been closed. Therefore currently its 20 stores are operational
The company says it has 2.3 lakh square feet of retail space, offering apparel and non-apparels.
2:20 pm FIIs inflow: Foreigners are estimated to have pumped USD 36.8 billion into emerging market stocks and bonds in March, the highest monthly inflow in nearly two years, the Institute of International Finance said today.
The Washington-based body, one of the most authoritative trackers of foreign capital flows to and from the developing world, said in a note that all four emerging market regions had received inflows, with Asia topping the list with USD 20.6 billion.
The inflow, the highest since June 2014, follows USD 5.4 billion received in February and is substantially above the 2010-2014 average of USD 22 billion, the IIF said. Bonds took in USD 18.9 billion and equities USD 17.9 billion, the data showed.
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2:00 pm Market Check
Equity benchmarks remained choppy in afternoon trade with the Nifty hovering in a range of 7600-7650 ahead of expiry of March derivative contracts due on Thursday. European shares traded higher with the FTSE, CAC and DAX rising 0.5-1 percent.
The 30-share BSE Sensex rose 21.38 points to 24987.78 and the 50-share NSE Nifty climbing 7.05 points to 7622.15. About 1568 shares declined against 891 advancing shares on BSE.
Lupin shares trimmed some losses, falling 8 percent after getting a 483 letter from USFDA for Mandideep unit in Madhya Pradesh.
Among others, HDFC, Sun Pharma, Dr Reddy’s Labs, GAIL, Cipla and NTPC were down 1-3 percent while Tata Motors topped buying list on Sensex, up 3.5 percent followed by Reliance Industries, Infosys, Maruti, Axis Bank, Adani Ports, SBI, Bharti Airtel, Tata Steel and Hindalco Industries with 1-3 percent upside.