Nifty Drifts Higher Led By Consumer Stocks; PSU Banks Weigh

Indian shares closed higher, led by tobacco maker ITC following the goods and services tax boost, but gains were capped as state-owned lenders plunged on worries over deteriorating asset quality.

The S&P BSE Sensex advanced 0.35 percent at 30,570 while the NSE Nifty rose 0.11 percent to 9,438.

Among the sectoral indices, S&P BSE PSU index fell 2.2 percent while the S&P BSE Realty index shed 1.3 percent.

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

• ACC (-3.3%)
• Ambuja Cements (-3.2%)
• UltraTech Cement (-2.2%)
• India Cements (-4.5%)

• Index down as much as 3.8%, the most since November 21
• Bank of India (-7.2%), State Bank of India (-4%), Oriental Bank (3.9%)

• Shares of the chicken meat processor rose as much as 3.8% to Rs 1,206, the most since May 8
• Q4 net profit Rs 41.7 crore vs Rs 20.2 crore last year
• Q4 revenue Rs 626 crore vs Rs 602 crore last year
• Declares dividend of Rs 6 per share

• Vardhman Ploytex hit upper circuit of 20%, its largest intra-day gain in nearly 21 months
• The stock snapped its 7-day losing streak
• Volume at 7 times its 20-day average
• The textile company has a market cap of Rs 170 crore

• Shares down as much as 12.7% to Rs 155, the most since August 24, 2015
• Q4 loss Rs 1,050 crore vs estimate Rs 45.9 crore loss
• Gross NPA 13.22% end-March vs 13.38% end-December
• Volume at 1.6 times its 30-day average

• 1.79 crore shares change hands in two blocks
• Executive Vice-Chairman Uday Kotak sells 1.8 million shares, bringing down his total stake to 29.79% from 30.74% earlier
• Stake sale in response to RBI’s directive to Kotak to reduce his stake in the private-sector lender to 30% by June 2017
• Stock +0.7% at Rs 944

• Shares of the drugmaker fell as much as 4.4% to Rs 1,260, the most since August 9, 2016
• According to brokerage Nomura, Lupin continues to lose market share in anti-diabetic drug Glumetza due to competition
• Lupin’s market share is at 60%, down from peak of 81%.: Nomura
• Stock snapped 5-day gains; volume at 3.7 times its 30-day average
• Nifty Pharma Index down 1.5%; Lupin top index loser

• Shares of oil exploration and production firm rose as much as 6.5% to Rs 184, the most since April 5
• Board to consider share buyback proposal on May 26, the company said in a regulatory filing
• Volume at 1.4 times its 30-day average

• Shares of the state-owned lender fell as much as 3.1% to Rs 298, the most since November 21, 2016
• SBI sees slightly higher credit costs in fiscal 2018, Bloomberg reported citing Chairman Arundhati Bhattacharya
• Lender's Q4 net profit more than doubled
• Volume at 3 times its 30-day average

• S&P BSE Small Cap Index little changed at 15,229 after three sessions of declines
• S&P BSE Mid Cap Index down 0.3% at 14,599, extending losses to a fourth straight session

• InterGlobe Aviation (-2.8%), Spicejet (-3.9%), Jet Airways (-4%)
• Oil refiners also down: Indian Oil (-1%), Bharat Petroleum Corp. (-1.6%), Hindustan Petroleum Corp . (-2.2%)
• Crude futures climbed as much as 1% as Saudi Arabia said all producers agreed on extending output cuts

• Inclusions: Kotak Mahindra Bank (+1.5%) and Tata Motors DVR (+0.9%)
• Exclusion: GAIL India (-1.4%)

• Consumer goods firm ITC climbed as much as 3.5% to a record high of Rs 296, its second straight day of gains following GST announcement
• Tax rate for hair oil, toothpaste and soaps at 18%; Tea and coffee at 5%
• Other FMCG stocks also extend gains: Dabur India (+0.5%), Marico (+1%)

• Suzlon Energy (+3.7%): Profit of Rs 579 crore vs loss last year
• Chambal Fertilisers: (+0.9%): Q4 net income Rs 27.2 crore vs Rs 130 crore last year
• Claris Lifesciences (+1.7%): Q4 net income Rs 37 crore vs loss Rs 61.8 lakh
• IFCI: (-1.4%): Q4 net loss Rs 318 crore vs loss Rs 171 crore last year
• Kalpataru Power (+1.8%): Q4 net income Rs 89.6 crore vs estimate Rs 86.3 crore
• Mahindra Holidays (+3.6%): Q4 net income Rs 31.8 crore vs Rs 30.4 crore last year
• Rashtriya Chemicals (+0.9%): Q4 net income Rs 55.1 crore vs Rs 40.4 crore
• VRL Logistics (-5.4%): Q4 net income Rs 8.4 crore vs Rs 11.9 crore last year
• Just Dial (-4%): Profit fell 37% to Rs 25.35 crore
• Bharat Bijlee (+3.6%): Net profit rose more than 300% to Rs 10.27 crore
• V-Guard Industries (-3.9%): Net profit nearly unchanged at Rs 41.85 crore

• Inox Leisure (-2.3%), PVR (-3.4%)
• Movie tickets above Rs 250 will be taxed at 28%

Read the full story HERE

• Reliance Defence (+2.7%), Larsen & Toubro (+0.5%), Ashok Leyland (+0.9%), Tata Motors (+1.2%), Bharat Electronics (2.7%), Walchandnagar Industries (5.3%)
• Government approved defence policy aimed at engaging the Indian private sector in the manufacture of high-tech defence equipment in India
• "The policy will give a boost to the 'Make in India' policy in the defence sector," reported news wire agency PTI , citing a statement by the defence ministry

Indian shares advanced, led by gains in Suzlon Energy after it swung to a fourth-quarter profit while positive global cues also supported sentiment.

The S&P BSE Sensex rose 0.62 percent to 30,661, while the NSE Nifty advanced 0.64 percent at 9,490.

Meanwhile, the rupee rose as much as 0.2 percent to 64.49 against the U.S. dollar, its lowest since May 17, compared to previous close of 64.63

Among the sectoral indices, S&P BSE Capital Goods advanced 0.7 percent while S&P BSE Power gained 0.6 percent.

The market breadth was skewed in the favour of gainers, with about 7 stocks advancing to every 2 stocks that declined.

Indian rupee may open stronger today tracking gains by most of its peers in the Asia pacific market. The currency was the worst performer against the dollar in the region last week.

However, geopolitical issues will continue to weigh on the markets after North Korea tested another missile into the Sea of Japan on Sunday.

In bonds market: The bonds gained last week with yields dropping 5 basis points. This week investors will be watching for the outcome of three bond sales. These include sales of t-bills, government securities and SBI bonds.

Global funds continue to lap-up Indian bonds, with their holding of rupee-debt rising by Rs 726 crore on May 19.

• Mahindra & Mahindra, Reliance Defence, L&T: Defence Acquisition Council finalizes plan for private companies to invest in defence manufacturing.
• Laurus Labs: U.S. FDA completes inspection of unit two of its API Facility without any 483 observations.
• Adani Enterprises: To consider fund raising on May 24.
• IFCI: Board approves divesting its entire stake in TFCI.
• Gufic Biosciences: SBI Mutual Fund bought more than 5 percent equity.
• State Bank of India: Sees slightly higher credit costs in fiscal 2018 on resolutions.

For a complete list of stocks, click HERE

• Bank of India
• GAIL (India)
• Engineers India
• SRF
• Venky's (India)

• JK Tyre: Cut to reduce at Quantum Securities, price target Rs 211
• Jyothy Lab: Raised to buy at Reliance Securities, price target Rs 431
• KEC International: Raised to buy at Sharekhan, price target Rs 290

• Prime Minister Narendra Modi to inaugurate projects at Kandla port, attend African Development Bank meetings in Gandhinagar this week
• RBI says infusing funds into India lenders won’t solve debt mess
• India exempts some services from national sales tax: Jaitley
• Equity bug bites India’s small-town investors as stocks soar

Also Read: Govt Initiates Work On Shifting Financial Year To January-December

• Asia high-yielders down, not out as politics, China deal blows
• A ’mind-boggling’ reform looms over India’s $2 trillion economy
• India’s $1.3 trillion housing bonanza draws Piramal mortgage bet
• Hindustan Unilever seeks clarification on some aspects of GST
• CCI approves acquisition by CSP Alpha of 100% capital of ESM Holdings
• India April crude imports rise 0.9% y/y to 18.1m tons

Did You Know: Jack Ma To Invest In Mobile-Payments Around The World?

• Forex reserves fall $443.6 million to $375.3 billion in a week to May 12: RBI
• India nears rules to allow private sector in defense equipment
• Israel Aerospace wins $630 million defense contract from India
• Global funds sold Rs 989 crore rupees of local stocks; domestic funds bought Rs 349 crore on May 19: Provisional data
• India seeks to push electric vehicles by setting a lower levy

Good Morning!

The Singapore traded SGX Nifty, an early indicator of how the benchmark Nifty’s performance in India, rose 0.2 percent at 9,474.

Asian shares advanced on Monday while crude oil climbed above $50 a barrel after Saudi Arabia said producing nations had reached an agreement on extending output cuts.

The Bloomberg Dollar Spot Index rose 0.2 percent after the gauge lost 1.6 percent in the previous five trading sessions posting its worst weekly performance since July 2016.

Also Read: Oil Climbs With Asia Stocks on Supply Speculation

Sentiment got a lift after Japan’s exports expanded for a fifth consecutive month in April, as firming global demand continued to support the nation’s economic recovery.

However, caution remained amidst the ongoing political turmoil in the White House with questions being raised about President Donald Trump’s administration.

The S&P 500 Index closed higher on Friday, but the rally was curbed by reports that investigators are focused on a current White House official, who is a person of interest in the Russia probe.

Investors will keep a close eye on the minutes of the latest U.S. Federal Reserve meeting which will be released later this week. The Fed futures index tracked by Bloomberg show that there is a more than 97 percent chance of the U.S. central bank hiking rates next month.