Nifty Steps Back From Record High Ahead Of Inflation Data

Indian shares retreated from record highs as investors braced for caution ahead of inflation data and booked profits in recent outperformers such as Zee Entertainment.

April consumer price inflation is seen slowing to 3.30 percent year-on-year, from 3.81 percent in March, according to a Bloomberg survey.

The data will provide guidance for the next monetary policy in June.

The S&P BSE Sensex fell 0.21 percent at 30,188 while the NSE Nifty declined 0.23 percent to 9,401. Both the indexes posted a weekly gain of 1.2 percent each.

Among the sectoral indices, S&P BSE Bankex shed 0.9 percent while the S&P BSE Power index dropped 0.8 percent.

The market breadth was skewed in the favour of losers, with about 6 stocks declining to every 3 stocks that advanced.

Bullish View?

"We remain bullish on the markets due to the corporate earnings recovery and government reforms. Every correction from hereon could be a buying opportunity", said Devarsh Vakil, head - advisory at Private Client Group, HDFC Securities.

Read the full story, HERE

Shares of the construction major pared losses after its unit bagged a Rs 4,500 crore contract from the defence ministry for artillery guns.

The company will supply 100 units of 155mm/52 calibre tracked self-propelled gun system to the Indian Army in 42 months, according to its exchange filing.

It will also provide associated engineering support package and maintenance transfer of technology to support the enhanced version of the Howitzer regiments throughout their life cycle.

Shares of the lender dropped as much as 4.5 percent, the most since April 28, after reporting a net loss that missed analyst estimate by a wide margin.

Net loss for the January to March quarter came in at Rs 1,220 crore compared to the Rs 82.73 crore estimated by analysts in a Bloomberg poll.

• Gross NPA 13.73 percent end-March compared to 13.8 percent end-December
• Q4 provision for loan losses Rs 3,050 crore
• Q4 interest income Rs 4,500 crore

Motherson Sumi: 30 lakh shares change hands in a block

*Buyers and sellers were not immediately known

• 5:30pm: March industrial output year-on-year; estimate 1.9% (prior -1.2%)
• 5:30pm: April CPI year-on-year; estimate 3.30% (prior 3.81%)
• 5:30pm: Wholesale-price inflation for April year-on-year; estimate 4.50% (prior 5.70%)

• Shares of drugmaker fell as much as 2.8% to Rs 2,521, lowest since June 2014
• Q4 net income Rs 340 crore vs estimate Rs 418 crore
• Q4 revenue Rs 3,630 crore vs estimate Rs 3,680 crore
• Volume at 2.7 times its 30-day average

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• Stock falls as much as 1.9% to Rs 491.90
• Analyst consensus price target is 11% below current price
• Stock has gained 52% year-to-date vs 14% rise for the Sensex

• Gross NPAs as on March 31, 2016 as reported by bank: Rs 748.9 crore
• Gross NPAs as on March 31, 2016 as assessed by RBI: Rs 4,925.6 crore
• Stock down as much as 4% to Rs 1,512, the most since November 2016
• Nifty Bank Index down 0.6%

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• Asian Paints, Zee Entertainment and Bharti Infratel down between 1% to 3% after March-quarter results
• Asian Paints +5% in the past 7 sessions
• Zee Entertainment +10% in the previous 2 sessions
• Bharti Infratel snapped 3 sessions of gains in which it rose nearly 3.5%

• Stock falls as much as 1.5% to Rs 2,553, the lowest since June 2014
• Analyst consensus price target is 13% above current price
• Volume at 2.5 times its 30-day average

• S&P BSE Information Technology Index gains as much as 1%
• Index poised for a weekly rise of 2.3%, the most since February 12, 2016
• Infosys (1.3%), Tech Mahindra (+1.2%), HCL Technologies (+0.8%)

• Shares down as much as 3.1% to Rs 1,130, the most since December 2016
• Consol EBITDA margins contracted by 100 basis points to 18%
• Raw material costs jump nearly 27%
• Q4 net income Rs 462 crore vs estimate Rs 469 crore
• To pay dividend of Rs 5.65 per share and special dividend of Rs 2 per share

• GlaxoSmithKline Consumer: (+1%): Q4 net income Rs 176 crore vs estimate Rs 175 crore last year
• Igrashi Motors (-3.1%): Q1 net income Rs 17.9 crore vs estimate Rs 19 crore
• Nilkamal (-2.9%): Q4 net income Rs 32.2 crore vs Rs 32.7 crore last year
• VIP Clothing (+7.5%): Q4 net income Rs 1.1 crore vs loss Rs 7.5 crore last year

• Shares fall as much as 1.9% to Rs 1,294
• Torrent Pharma received form 483 with 4 observations from the U.S. FDA after the inspection of Gujarat facility.
• Analyst consensus price target is 24% above current price

• Shares fall as much as 16.3% to Rs 758, the most since January 2009
• Q4 net income Rs 184 crore vs estimate Rs 581 crore
• Volume at 68.8 times its 30-day average
• Analyst consensus price target is 31.6% above current price

Indian shares opened little changed as investors paused after indexes hit record highs the previous session while poor earnings by Glenmark Pharmaceuticals weighed on the healthcare stocks.

The S&P BSE Sensex fell 0.03 percent to 30,247, while the NSE Nifty shed 0.05 percent at 9,418. Both the indices closed at record levels in the previous session.

Among the sectoral indices, S&P BSE IT index rose 0.8 percent while S&P BSE Healthcare index declined 1.1 percent.

The market breadth was skewed in the favour of losers, with about 5 stocks declining to every 4 stocks that advanced.

• Recent regulatory actions in India suggest the authorities are making a more concerted push to tackle banks' bad loan problems

• Believe that asset resolution will be a dominant theme in the sector over the next few years

• SBI approves starting process for SBI Life IPO
• SBI to dilute up to 12% of its stake in the life insurance venture via IPO

The Indian rupee rebounded and was the second-biggest gainer in the Asia-pacific region on Thursday on foreign inflows into the stock markets. Foreign buying pushed the benchmark NSE index to a record. If we look at the current year: Global investors have bought a net $6.1 billion of stocks.

On to bonds now: Today is the auction of the new benchmark 10 year government bonds. Deutsche bank expects the coupon cut-off may come in 6.78 percent, about 15 basis points below the existing benchmark. That implies a 50 basis points premium on the yield curve.

Investors will also be keenly watching two important data releases. The monthly inflation data and the industrial production numbers.

• Delta Corp: Launches Rs 550-crore QIP; price at Rs 162.8 per share.
• Kotak Mahindra Bank: To Raise nearly Rs 5,700 crore via QIP.
• Reliance Infrastructure: Gets Rs 2,950 crore arbitral award from DMRC.
• Torrent Pharma: U.S. FDA issues form 483 with 4 observations for Gujarat facility.
• Max India: To buy 3.75 percent Max Healthcare stake for Rs 212 crore.
• Asian Paints: Q4 net income meets, revenue beats estimate; declares special dividend.
• Glenmark Pharmaceuticals: Q4 net profit misses estimate.

For a complete list of stocks, click HERE

• Dabur India: Raised to buy at Nomura, price target Rs 320
• Godrej Consumer: Cut to neutral at Nomura, price target Rs 1,870
• Havells India: Cut to neutral at Credit Suisse, price target Rs 550
• Hero MotoCorp: Raised to outperform at IDFC Securities
• Marico: Cut to reduce at Nomura, price target Rs 275

• Aditya Birla Fashion & Retail
• Century Textiles & Industries
• Dr. Reddy's Laboratories
• Jindal Stainless
• Nestle India
• Oriental Bank of Commerce
• Piramal Enterprises
• PNB Housing Finance
• Tata Teleservices (Maharashtra)
• Titan Company

• India defense panel to discuss Strategic Partnership Policy
• Dudley says Fed may begin paring balance sheet this year or next
• Rising rupee no barrier for India’s high-tech export machine
• Locals driving Indian stock market as foreigners’ influence ebbs
• India seeks comments on rules for real estate income computation
• India potash imports to fall as subsidy cut may hurt demand
• Global funds bought Rs 1,310 crore of local stocks; domestic funds sold Rs 1,040 crore on Thursday: Provisional data

Also Read: Billionaire Kotak Seeks to Raise $901 Million for Banking Unit

Good Morning!

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, was little changed at 9,444.

Asian shares declined after the S&P 500 Index retreated from record high overnight as poor results from Macy’s Inc. and Kohl’s Corp. cast doubts on the improvement in the U.S. consumer sentiment.

Also Read: Traders Ask What Will Rouse Markets If Trump, Twitter Can't

The yen advanced against the dollar while bonds and gold held gains. Disappointing results from Macy’s Inc. and Kohl’s Corp. sent a broader swath of retail stocks tumbling on concerns that the U.S. consumer continues to hold back on spending.

Investors will get a fresh read on Friday with U.S. retail sales.

Oil extended gains and was headed for its first weekly advance in a month as U.S. crude stockpiles dropped.

Organisation of Petroleum Exporting Countries and its allies support prolonging output curbs for a further six month, Bloomberg reported citing oil ministers of Iraq and Algeria.