(Source: Bloomberg)

Sensex, Nifty Clock Fresh Record Highs For A Third Day, Tata Steel Climbs

Closing Bell

Indian shares extended their record closing streak, led by miners amid better-than-expected quarterly earnings.

The S&P BSE Sensex rose 0.25 percent at 30,658 while the NSE Nifty advanced 0.14 percent to 9,525. Both the indexes hit all-time highs for the fourth time in six sessions.

Among the sectoral indices, S&P BSE Metal index gained 2.4 percent while the S&P BSE Auto rose 0.6 percent.

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

Nifty Headed For 9,700?

"Nifty is heading towards 9,700 and we could see those levels coming-in over the course of next 45 days or so. With every fresh breakout, we are seeing Nifty consolidating and moving in a very narrow range rather than witnessing a huge breakout," said Dhaval P Vyas, founder & chief market analyst at www.dhavalpvyas.com.

"Traders are basically holding long positions and we are seeing new money flowing into the markets, so momentum remains positive," said Vyas.

Allahabad Bank Falls As Bad Loans Rise In Q4

  • Shares down as much as 3% to Rs 86.80
  • Q4 net income Rs 111 crore vs loss Rs 581 crore last year
  • Gross NPA 13.1% end-March vs 12.51% end-December
  • RSI at 71, indicating that the stock may be overbought

Bajaj Finance Falls As Q4 Provisions, Loan Losses Swell

  • Shares down as much as 3.7% to Rs 1,297, the most since December 2016
  • Q4 provisions, loan losses Rs 290 crore vs Rs 157 crore last year
  • Q4 net income meets estimate
  • Volume at 2.4 times its 30-day average

Block Deal Alert

  • South Indian Bank: 76 lakh shares change hands in three blocks
  • Dabur India: 76 lakh shares change hands in two blocks
  • Tata Motors: 94 lakh A-shares change hands in two blocks
  • Capital First: 42 lakh shares change hands in a block

*Buyers and sellers were not immediately known

Sensex Gains 100 Points; Nifty Above 9,500

Here are the top Nifty gainers and losers at this hour:

Chart Of The Day

NIIT Jumps On Q4 Profit Surge

  • Shares jumped as much as 11.7% to Rs 94.30, the most since October 2015
  • Q4 net income Rs 30.2 crore vs Rs 17.8 crore last year
  • Q4 revenue Rs 362 crore vs Rs 239 crore last year

Europe Opens Weak

Metal Index Jumps As Dollar Retreats On U.S. Political Woes

  • Indian miners among top gainers on the NSE index as the dollar retreated on growing concerns engulfing President Donald Trump’s administration
  • The Bloomberg Dollar Spot Index dropped for a sixth day
  • The S&P BSE Metal index jumped 1.9%; JSW Steel +3.2%, Jindal Steel +1.9% while Tata Steel +5.8%
  • Weaker dollar makes global metals cheaper for these miners

Dr. Reddy's Recovers After FDA Nod For Product Launch

Shares recover from earlier losses to trade up nearly 1% at Rs 2,750

Dr. Reddy's gets U.S. FDA approval for the launch of Doxorubicin Hydrochloride Liposome injection in the U.S. market, it said in a regulatory filing

Tata Steel Jumps On UK Pension Deal Despite Q4 Loss

  • Shares gain as much as 8.9% to Rs 472, the most since November 2016
  • Strikes a deal to solve its long-running U.K. pension standoff
  • Deal clears hurdle for Thyssenkrupp JV
  • Q4 net loss Rs 725 crore vs estimate Rs 988 crore profit
  • Q4 revenue Rs 35,460 crore vs estimate Rs 31,620 crore
  • Declares dividend of Rs 10 a share

Read the full story HERE

Hindustan Unilever Earnings Preview

J.B. Chemicals Climbs On Share Buyback Proposal

  • Shares of the pharmaceutical company gained as much as 4% to Rs 363, the highest since November 2016
  • J.B. Chemicals to consider share buyback on May 23
  • Volume at 2.2 times its 30-day average

Edelweiss Financial Drops Despite Higher Q4 Profit

  • Shares fall as much as 2.9% to Rs 184, the most since April 2017
  • Q4 net income Rs 170 crore vs Rs 122 crore last year
  • Q4 revenue Rs 1,680 crore vs Rs 1,350 crore last year
  • Declares dividend of 30 paise a share

Read the full story HERE

Earnings Reaction

  • Andhra Bank: (-3.5%): Q4 net income Rs 35.1 crore vs Rs 51.6 crore last year
  • Credit Analysis (-2.9%): Q4 net income Rs 38.4 crore vs estimate Rs 43.1 crore
  • Dhanlakshmi Bank (+5.3%): Q4 net income Rs 8.8 crore vs loss Rs 132 crore last year
  • Oracle Financial: (-1.8%): Q4 net income Rs 220 crore vs estimate Rs 340 crore
  • PI Industries (+2%): Q4 net income Rs 135 crore vs estimate Rs 93.4 crore

Sobha Hits 2-Year High On Upbeat Q4 Profit

  • Shares gain as much as 9.4% to Rs 450, the highest since April 2015
  • Q4 net income Rs 47 crore vs estimate Rs 42 crore profit
  • Volume at 3.6 times its 30-day average

Block Deal Alert: Capital First

  • 2 crore shares change hands in a block
  • Private equity firm Warburg Pincus sold 20.6% stake in the financial services firm
  • Stock down as much as 5.2% to Rs 725, the most since November 2016

Shree Cement Slumps On CLSA Downgrade

  • Shares fall as much as 6.7% to Rs 18,611, the lowest since April 2017
  • Stock cut to sell vs underperform at CLSA
  • Q4 net income Rs 305 crore vs estimate Rs 275 crore profit
  • Volume at 21.4 times its 30-day average

Opening Bell

Indian shares opened slightly lower as investors took a breather after indexes hit record highs in the previous session while weak global cues also weighed on the sentiment.

The S&P BSE Sensex fell 0.13 percent to 30,541, while the NSE Nifty shed 0.2 percent at 9,493.

Among the sectoral indices, S&P BSE Auto index dropped 0.3 percent while S&P BSE PSU bank index shed 0.2 percent.

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

Money Markets Heads-Up

U.S. politics has taken centrestage.

President Donald Trump is in a tight spot with reports about sharing intelligence info with Russia and asking FBI to drop a particular investigation doing the rounds. The result? Risk appetite is waning and the dollar is losing ground. The rupee will again have a go at breaching the 64-mark today more decisively as foreign flows remain supportive.

Indian sovereign bonds took a breather from the rally yesterday and yields on the current benchmark note climbed four basis points to 6.84 percent. The new 10-year note also saw the yield surging to 6.68 percent.

Analysts say there is scope for yields to fall as low as 6.60% but the move will be gradual.

IPO Watch: Sterlite Power’s InvIT Fund

Stocks To Watch

  • Lupin: Signs an exclusive licensing agreement with Eli Lilly in India.
  • Golden Tobacco: Excise department imposed a penalty of Rs 25 crore.
  • HCL Tech: Vama Sundari Investments (Delhi) Pvt. Ltd. buys 1.24 crore shares or 0.87 percent stake at Rs 858 each.
  • Indraprastha Gas: To raise consumer CNG price 35 pasise per kg in Delhi.
  • Quess Corp: To raise funds by issuing equity shares.

For a complete list of stocks, click HERE

5 Things To Watch

Rupee Outlook

Brokerage Calls

  • Hero MotoCorp: Raised to buy at Investec, price target Rs 4,065
  • Punjab National: Cut to neutral at Nomura, price target Rs 180
  • Vedanta: Raised to buy at India Infoline, price target Rs 280
  • Shree Cement: Cut to sell at CLSA, price target Rs 18,000
  • TVS Motor: JPMorgan initiates coverage at overweight

Earnings Today

  • Allahabad Bank
  • Bajaj Finserv
  • Bajaj Finance
  • Edelweiss Financial Services
  • Indian Overseas Bank
  • Hindustan Unilever
  • JK Lakshmi Cement
  • JSW Steel
  • Mangalore Refinery and Petrochemicals

Nifty Outlook

Talking Points

  • Tax bonanza turning city at ‘zero mile’ into India’s warehouse
  • RBI targets rupee forwards as cash flood curbs spot intervention
  • India forms panel to study systemic issues in telecom sector
  • India palm imports rise for third month on weaker global price
  • Weak El Nino seen in next few months: MDA Weather Services
  • Global funds bought Rs 858 crore of local stocks; domestic funds sold Rs 402 on May 16: Provisional data
  • Pilot exodus prompts India air regulator to turn labor watchdog

Also Read: Reliance Jio Says Government Will Lose Rs 217 Crore From Tikona-Airtel Deal

Good Morning!

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, was little changed at 9,510.

Asian shares declined in early trade, following their U.S. counterparts as fresh reports emerged of President Donald Trump’s interference in the Federal Bureau of Investigation’s probe around his former National Security Advisor Michael Flynn.

The Bloomberg Dollar Spot Index dropped for a sixth day, declining 0.1 percent, to it lowest since November 8 election day in the U.S. Meanwhile, gold and yen rose as investors fled to safe-haven assets.

Also Read: Trump Said to Ask Comey to Drop FBI Investigation of Flynn

Trump asked Comey in February to drop an investigation into former National Security Adviser Michael Flynn, Bloomberg reported citing a person who was given a copy of a memo Comey wrote following his Oval Office conversation with Trump.

Trump reportedly told Comey, “I hope you can let this go.”

The latest development adds to the ongoing political turmoil after a report that the U.S. president shared terrorism intelligence with Russian officials, an action he has since defended.

Oil extended its decline after industry data showed an unexpected increase in U.S. crude stockpiles, despite efforts by top producers like Saudi Arabia and Russia to curb output.

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