Sensex, Nifty Extend Decline To Day 3; Real Estate Stocks Rally

Indian stocks declined for a third day as rising geopolitical concerns weighed on global equity markets, and as investors held back on big bets ahead of key earnings this week.

The S&P BSE Sensex fell 0.1 percent to 29,413 while the NSE Nifty lost 0.1 percent to 9,139. The advance-decline was slightly skewed in favour of the buyers on the NSE.

The S&P BSE Realty Index climbed the most since November 2009, led by Indiabulls Real Estate, while rest of the sectoral indices declined.

R Sreesankar, head of institutional equities of Prabhudas Lilladher said fundamentally nothing has changed for the real estate sector. He said the impact seemed to be only sentimental. “I don’t think the number of flats sold will increase because of companies undertaking restructuring,” he told BloombergQuint by phone.

Sreesankar said investors should keep an eye on the money supply coming in from domestic funds, besides the commentary from corporates this earnings season. “Once you start to see the money flow into the mutual funds also start slowing down, then the situation could change,” he said.

“A couple of large initial public offerings and fund raising programmes could also change this equation.”

Shares of Indiabulls Ventures Ltd. hit an upper circuit of 4.94 percent after Indiabulls Real Estate Ltd. announced that it will be considering separating its residential and commercial assets.

The S&P BSE realty index jumped as much as 8.86 percent to Rs 1,876.35, extending its gains for the fourth successive day and gaining the most since 2009.

Vascon Engineers Jumps To Highest In Over Four Years

• The stock snaps two-day losing streak
• It rose as much as 10.5 percent today
• Volumes stood at 3.62 times its 20-day average
• The stock fell 3.44 percent in the previous two days
• The real estate developer is valued at Rs 737 crore

• Fortis Healthcare has 94 lakh shares change hands in three block deals
• Tata Power has 16 lakh shares change hands in a block
• Shiva Cement has 12 lakh shares change hands in a block

Shares of the engineering construction firm gained 2.9 percent after its unit bagged an order worth Rs 312 crore from Yanbu Aramco Sinopec Refining Company (YASREF) in Saudi Arabia.

"With this order, the group's order backlog stands at Rs 19,929 crore," Punj Lloyd said in a BSE filing.

Shares of the pharmaceutical firm fluctuated between gains and losses after rising as much as 2.9 percent after clearing a U.S. FDA inspection unscathed. The U.S. drug regulator completed an inspection of its Baroda unit without issuing any observations, the company said in a BSE filing.

The stock has been a underperformer this year, rising 4.3 percent compared to a gain of over 10 percent for S&P BSE Sensex index.

India's wholesale prices rose at a slower-than-expected pace in March, gaining 5.70 percent from a year earlier, government data showed.

The data compared with a 6 percent annual rise forecast by economists in a Bloomberg poll. In February, prices rose a provisional 6.55 percent, while the January inflation rate was revised to 5.53 percent from 5.25 percent earlier.

Wholesale food prices last month rose 3.12 percent year-on-year, compared with a provisional 2.69 percent gain in February. The fuel and power inflation rate went up by 18.16 percent YoY. This was lower than the 21 percent registered in the previous month.

Shares of the infrastructure major gained after its construction arm bagged orders worth Rs 2,694 crore across various business segments.

"The construction arm of L&T has won orders worth Rs 2,694 crore across various business segments," L&T said in a BSE filing today.

While its water and effluent treatment vertical has secured Rs 2,227-crore orders, the smart world communications business bagged a contract of Rs 180 crore from Greater Visakhapatnam Smart City Corporation.

The company's transportation infrastructurebusiness has received an order worth Rs 287 crore for a road project in Maharashtra.

Shares of the state-run power equipment maker were little changed after commissioned two units of 270 megawatt (MW) thermal power project in Maharashtra.

"Bharat Heavy Electricals Ltd (BHEL) has successfully commissioned two units of 270 MW at RattanIndia Nasik Power Ltd's 5x270 MW thermal power project, located at Sinnar in Nasik District of Maharashtra," the company said in a BSE filing.

It further said: "With the commissioning of these units, BHEL has commissioned eight sets for RattanIndia in Maharashtra - 3 sets at Nasik and 5 sets at Amravati. In addition, two more 270 MW units are presently in advanced stages of completion at Nasik".

Shares of the government-owned lenders showed a mixed reaction after the finance ministry said that it expects at least six banks to raise funds from the market under the Indradhanush plan.

• State Bank of India (+0.4 percent to Rs 292)
• Bank of Baroda (+1.4 percent to Rs 178)
• Punjab National Bank (rose 0.9 percent to Rs 154 before falling 0.9 percent to Rs 154)

Also Read: RBI Lays Down New Triggers To Invoke Corrective Action In Weak Banks

Shares of the drugmaker gained 2.4 percent after the U.S. health regulator completed inspection at one its facilities in Srikakulam, Andhra Pradesh without making any observations.

The U.S. Food and Drug Administration last week completed inspection of the company’s three other facilities at Srikakulum, Duvvada, Miryalaguda, and issued two observations for the Srikakulam plant.

The rupee was trading lower by 3 paise at 64.44 against the U.S. dollar in early trade on foreign fund outflows amid increased demand for the American currency from importers and a lower opening of the domestic equity market.

However, a weak dollar against major global currencies capped the losses, forex dealers said.

The domestic unit closed higher by 26 paise at 64.41 in the previous session on Thursday on account of fresh selling of the American currency by exporters, besides a weakness in the greenback overseas.

Forex market remained shut on Friday on account of 'Dr Babasaheb Ambedkar Jayanti' and 'Good Friday'.

PTI

Shares of the FMCG firm dropped as much as 7.5 percent, the most since November 9, after reporting disappointing set of fourth quarter earnings.

The company, which was also the worst performer on the S&P BSE 500 index, reported a net income of Rs 52.67 crore for the quarter-ended March, compared to an estimate of Rs 65.80 crore. The sales too missed the mark at Rs 205 crore versus an estimate of Rs 217 crore.

Other Stocks Reacting To Earnings

• DCB Bank dropped 7 percent; Q4 net income Rs 52.86 crore versus Rs 69.53 crore
• Reliance Industrial down 0.4 percent after rising 1.2 percent in early trade. Q4 net income Rs 7.3 crore versus Rs 3.04 crore YoY
• Reliance Infrastructure gained 1.4 percent; 4Q net income Rs 40.94 crore versus loss of Rs 327 crore year earlier
• Reliance Power up 2.4 percent; Q4 profit Rs 216 crore versus Rs 61.55 crore YoY

Indian shares swung between minor gains and losses in opening trade, as rising geopolitical concerns kept investors from taking big bets.

The S&P BSE Sensex was little changed at 29,464 and so was the Nifty index at 9,148. The market breadth, however, was encouraging with more buyers than sellers. About three stocks gained to every one stock that declined on the NSE.

Among the sectoral movers, the Nifty Metal dropped the most while the Nifty Media index was the best performer.

• Watch sugar stocks Bajaj Hindusthan, Balrampur Chini, Dhampur Sugar, Shree Renuka Sugars
• after India food minister says sees no shortage of commodity this year
• Separately, Bloomberg reports, India won’t import around 500,000 tonne of sugar, according to a government official, who didn’t want to be identified
• Brady & Morris: Board approves sale of Ahmedabad land, building for Rs 6.5 crore
• Cairn India: Shares to be suspended from trading April 26; separately, PTI reports that company and partners will invest Rs 3,240 crore in Ravva fields
• Compuage Infocom: Gets rights to sell Apple accessories in northern, eastern India
• Grasim Industries: RBI says FIIs/FPIs can now invest up to 49 percent in company’s shares
• Mahanagar Telephone Nigam: Chairman says merger with BSNL is ‘desirable’ (PTI)
• National Aluminium: India plans to add 1 million tonne capacity at company’s Odisha refinery
• Oil & Natural Gas (ONGC): Exports naphtha from Hazira as off-taker OPaL’s tanks full
• Orient Paper & Industries (OPI) to consider mid-year dividend
• Premier Explosives: Approves fund raising of Rs 80 crore
• Yes Bank: To consider borrowing plan on April 19

Data To Watch

• 12 p.m.: Wholesale-price inflation for March YoY; estimate 6.0 percent (February 6.55 percent)

Two key data points that investors will take cues from:

• China's first quarter GDP data. That increased 6.9 percent, better than the 6.8 percent estimate as investments pick up.
• India's wholesale-price inflation data later today. Last week, the Consumer Price Index (CPI) grew at less than the 3.81 percent estimate.

Today's Asian currency markets indicate a positive opening for the Indian rupee against the dollar. The Bhat led the gains, followed by the Kiwi.

Indian benchmark government bonds may fall today after the RBI on Thursday said it would auction Rs 25,000 crore worth T-bills to drain liquidity Investors will also watch for further steps to push struggling banks to combine with rivals.

• India hopes to double revenue receipts by end-2019, says Nitin Gadkari
• India seeks legal advisers for divestment of stake in 7 firms
• India sets rules to push struggling banks to combine with rivals
• India seeks to end imports in five years
• March trade deficit widens to $10.44 billion versus estimate of -$8.37 billion
• Exports up 27.6 percent YoY at $29.2 billion, imports up 45.3 percent at $39.7 billion
• India, France agree to collaborate on high-speed rail

• Court’s power order ends doubt over coal-cost compensation

• India extends time for duty-free benefits for raw sugar import
• February services exports at $13.1 billion, imports at $7.24 billion: RBI
• North Korea missile failure deflates tension as Pence tours Asia
• Global funds sold net Rs 408 crore of local stocks Thursday; domestic funds bought worth Rs 65.43 crore: provisional data
• Barclay brothers bid for Grosvenor House hotel (Sunday Times)
• India to replace old power plants to boost output (PTI)
• India sees relations with Pakistan hit if Jadhav sentence upheld
• India may put visa curbs on Pakistan citizens (Times Now)
• Security was tightened at three Indian airports Sunday (CISF)

Good Morning!

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, was little changed at 9,149.

Asian stocks declined in early trade, while the Japanese yen strengthened on rising geopolitical concerns. The lira jumped after Turkey voted to hand the president sweeping authority, which included a call to elections at any time and greater sway over fiscal policy.

While North Korea’s failed ballistic missile launch on Sunday, eased the risk of imminent retaliation, it hasn’t prompted the Trump administration to deviate from its plans for dealing with Pyongyang. U.S. Vice President Mike Pence, visiting troops stationed along the North Korean border, said “all options are on the table.”

China’s gross domestic product increased 6.9 percent in the first quarter from a year earlier, compared with a 6.8 percent median estimate in a Bloomberg survey, further cementing a rebound. Retail sales and industrial output increased in March, topping economists’ forecasts.

Markets in Australia, New Zealand and Hong Kong are closed Monday and most European markets are also shut. The U.S. is set to resume trading.

Oil fell below the $53 mark, after last week’s 1.8 percent increase, as more OPEC members are seen ready to extend output cuts, even as U.S. crude stockpiles drop from a record. Hedge funds boosted bets on higher crude prices the second week, according to data from the U.S. Commodity Futures Trading Commission.