Trading Desk: The movers & shakers on D-Street
The S&P BSE Sensex fell 175 points, or 0.85%, to close at 20490; the broader index CNX Nifty fell 62 points, or 1.01%, to close at 6,078.
By ET Bureau | Updated:
The better-than-expected US jobs data has revived fears in the stock market over Fed tapering. The S&P BSE Sensex fell 175 points, or 0.85%, to close at 20490; the broader index CNX Nifty fell 62 points, or 1.01%, to close at 6,078.
> Blue-chip stocks were the worst hit in Monday’s trade. The top losers were Hindalco (down 4.29% to Rs 111), Larsen & Toubro (down 3.08% at Rs 943), State Bank of India (2.25% at Rs 1,705) and Reliance Industries (1.35% at Rs 863) as FIIs booked profits.
> Tata Motors fell 2.04% to close at Rs 377 after operating profit margins at key unit Jaguar Land Rover for the July-September quarter missed estimates when adjusted for one-time tax incentives. Brokerage LKP Securities has still maintained ‘Buy’ rating on Tata Motors and also raised its target price from Rs 387 to Rs 442.
“Tata Motors is expected to continue its outperformance on the JLR front, which forms the chunk of their business, and was more than 100% of net profit in Q2,” a note from LKP said. “Emerging geographies like South America, China, Russia, etc, are expected to drive revenue. New launches such as the Range Rover and RR Sports, along with the pipeline of new launches, are supposed to put up good volume performance.
> LKP said they raised JLR estimates and expect a 14%/13% JLR volume growth in FY14E/15E and some revival in the domestic MHCV business on economic recovery in sight in the second half of the year or FY15 along with some demand built-up for UVs during elections in May 2014.
> Karvy has reiterated its ‘Sell’ recommendation on ABB with a target price of Rs 455 a share. It said despite significant deterioration in ABB’s earning, the stock continued to trade at higher multiples of 64x, 4.3x & 32x of P/E, P/B & EV/EBITDA to its CY14E, respectively, which is expensive given the return profile.
> Blue-chip stocks were the worst hit in Monday’s trade. The top losers were Hindalco (down 4.29% to Rs 111), Larsen & Toubro (down 3.08% at Rs 943), State Bank of India (2.25% at Rs 1,705) and Reliance Industries (1.35% at Rs 863) as FIIs booked profits.
> Tata Motors fell 2.04% to close at Rs 377 after operating profit margins at key unit Jaguar Land Rover for the July-September quarter missed estimates when adjusted for one-time tax incentives. Brokerage LKP Securities has still maintained ‘Buy’ rating on Tata Motors and also raised its target price from Rs 387 to Rs 442.
“Tata Motors is expected to continue its outperformance on the JLR front, which forms the chunk of their business, and was more than 100% of net profit in Q2,” a note from LKP said. “Emerging geographies like South America, China, Russia, etc, are expected to drive revenue. New launches such as the Range Rover and RR Sports, along with the pipeline of new launches, are supposed to put up good volume performance.
> LKP said they raised JLR estimates and expect a 14%/13% JLR volume growth in FY14E/15E and some revival in the domestic MHCV business on economic recovery in sight in the second half of the year or FY15 along with some demand built-up for UVs during elections in May 2014.
> Karvy has reiterated its ‘Sell’ recommendation on ABB with a target price of Rs 455 a share. It said despite significant deterioration in ABB’s earning, the stock continued to trade at higher multiples of 64x, 4.3x & 32x of P/E, P/B & EV/EBITDA to its CY14E, respectively, which is expensive given the return profile.
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