Nifty Holds Record Gains As Consumer Goods Offset Pharma Losses

Indian shares closed near record highs, led by consumer goods stocks like Hindustan Unilever, but gains were capped as below-estimate earnings by Sun Pharmaceuticals weighed on healthcare sector.

The S&P BSE Sensex rose 0.26 percent to 31,109 while the NSE Nifty advanced 0.10 percent to 9,604. Both the indexes closed at record highs on Friday.

Among the sectoral indices, S&P BSE S&P BSE Realty slumped 4.4 percent while the S&P BSE Healthcare declined 2.90 percent.

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

Correction In The Offing?

“Markets are absolutely range-bound as the rally extended for longer than expected. We could see a correction coming-in anytime now,” said PK Agarwal, an independent market expert.

• Shares down as much as 4.5% to Rs 188, the lowest since April 25, 2016
• Q4 loss Rs 337 crore vs loss Rs 200 crore last year
• Q4 revenue Rs 390 crore vs Rs 630 crore last year

• Shares up as much as 5% to a record high of Rs 674
• Q4 net income Rs 59.4 crore vs estimate Rs 45.1 crore
• Q4 revenue Rs 1,060 crore vs estimate Rs 993 crore last year
• Declares dividend of Rs 1.50 a share

• S&P BSE Sensex index up 0.37% at 31,141, NSE Nifty index up 0.21% at 9,614
• S&P BSE Consumer Durables index (+1.1%), S&P BSE Auto Index (+0.34%)
• Top Sensex gainers: HDFC (+3.1%), HUL (2.7%), Cipla (2.6%)
• Top Sensex Losers: Sun Pharma (-10.3%), Adani Ports (-5.1%), Infosys (-1.6%)
• S&P BSE Healthcare index now down 1.7%, recouping from 3.8% slump earlier in the session

• Q4 net income Rs 38.4 crore vs estimate Rs 42.9 crore
• Q4 revenue Rs 1,280 crore vs estimate Rs 1,410 crore last year
• Shares reversed earlier gains to trade down 0.1% at Rs 359

• Shares up as much as 8.9% to a record high of Rs 182
• Q4 net income Rs 16.9 crore vs Rs 12.6 crore last year
• Q4 revenue Rs 214 crore vs estimate Rs 165 crore last year
• Volume at 10.1 times its 30-day average

• Shares up as much as 3.2% to Rs 860, the most since April 17
• Q4 net income Rs 20.7 crore vs Rs 18.5 crore last year
• Q4 revenue Rs 424 crore vs estimate Rs 340 crore last year
• Volume at 1.6 times its 30-day average

Read the full story here

Supreme Court allows liquor makers to move stocks from Bihar by July 31

Top court, earlier this year, had banned liquor outlets within 500 metres of national and state highways from April 1

• United Spirits (-2.2%)
• Radico Khaitan (-0.8%)
• Pincon Spirit (-2.5%)
• Som Distilleries (-0.8%)

• Shares of the drugmaker recovered from earlier losses of nearly 4% to trade up 2.4% at Rs 599
• Wockhardt said Ireland's health regulator has granted certificate of GMP to company's Aurangabad facility
• Good Manufacturing Practice (GMP) is a system for ensuring that products are consistently produced and controlled according to quality standards

• PC Jeweller (+19.9%)
• Tribhovandas Bhimji Zavri (+8.1%)
• Thangamayil Jewellery (+2.5%)
• Gitanjali Gems (+6.9%)
• Titan Co. (+3.3%)

GST Council to meet on June 3 to discuss tax rates for gems and jewellery

• PSP Projects shares list at a discount of 9.5% at Rs 190 on the NSE
• Construction company raised Rs 212 crore by offering shares at Rs 210
• PSP Projects had an order book of Rs 729 crore as of March 31

Here’s What You Need To Know About PSP Projects’ IPO

• Indian rupee lost 12 paise to 64.56 against the U.S. dollar, halting three sessions of gain
• The partially convertible rupee 18 paise against the American currency to end at a one-week high of 64.44 on Friday

M&M Financial: 10 lakh shares exchange hands in a block

* Buyers and sellers were not immediately known

• Nifty pharma index down 4%, the lowest since July 2014
• Index has lost nearly 15% in the previous nine sessions
• Sun Pharma (-12.1%), Aurobindo Pharma (-3.3%), Glenmark Pharma (2.6%)
• Below-estimate quarterly earnings, concerns over U.S. FDA approvals continue to weigh on the index: analysts

• Shares of the telecom firm fell as much as 6.8% to a record low of Rs 24.
• Q4 loss Rs 948 crore vs estimate loss Rs 818 crore
• Q4 revenue Rs 45,240 crore vs estimate Rs 47,040 crore
• RSI at 16, indicating that the stock may be oversold

ADAG Stocks Drop

• Reliance Capital (-9.6%)
• Reliance Infrastructure (9.1%)
• Reliance Power (-8.2%)
• Reliance Defence and Engineering (-6.3%)

• S&P BSE Metal index up 1.2%, its third straight session of gains
• Index has gained over 5% in the last two sessions
• National Aluminium (+3.2%), Hindalco Industries (+1.8%), Jindal Steel & Power (1.7%)

• Balrampur Chini (-4.2%): Q4 net income Rs 200 crore vs Rs 97.6 crore last year
• CG Power (-8.2%): Q4 net loss Rs 444 crore vs estimate Rs 51.2 crore
• Eros International (-7.4%): Q4 net income Rs 33.7 crore vs Rs 51.1 crore last year
• DLF (-2.2%): Q4 net income Rs 143 crore vs estimate Rs 121 crore
• India Cements (-2%): Q4 net income Rs 34.3 lakh vs estimate Rs 24.9 crore
• Indian Hotels (-4.2%): Q4 net income Rs 31.2 crore vs Rs 68.6 crore last year
• Ipca Labs (-2.7%): Q4 net income Rs 195 crore vs Rs 93.1 crore last year
• Mahanagar Gas (+2.2%): Q4 net income Rs 99.5 crore vs estimate Rs 103 crore
• Mandhana Industries (-4.9%): Q4 net loss Rs 67.7 crore vs profit Rs 19.4 crore last year
• National Aluminium (+3.2%): Q4 net income +25% at Rs 268 crore; estimate Rs 271 crore
• NRB Bearings (-4.2%): Q4 net income Rs 12.9 crore vs Rs 11.9 crore last year
• ONGC (-0.9%): Q4 net income Rs 4,340 crore vs estimate Rs 5,070 crore
• Orchid Pharma (-2.7%): Q4 net loss Rs 188 crore vs loss Rs 63.7 crore last year
• SKF India (-1.9%): Q4 net income Rs 57.9 crore vs Rs 51.8 crore last year
• Sun TV (-1.6%): Q4 net loss Rs 236 crore vs estimate Rs 242 crore
• Torrent Pharma (-2.8%): Q4 net income Rs 206 crore vs estimate Rs 213 crore
• Trent (-1.2%): Q4 net income Rs 25.3 crore vs Rs 19.8 crore last year
• TV Today (+8.2%): Q4 net income Rs 36.6 crore vs loss Rs 18.4 crore last year

• Shares declined as much as 8.8% to Rs 26.35, the lowest since November 25, 2016
• Q4 loss Rs 4,960 crore vs profit Rs 1,010 crore last year
• Q4 revenue Rs 6,590 crore vs Rs 7,760 crore last year
• Total costs rose to Rs 7,490 crore vs Rs 6,670 crore last year

• Shares of drugmaker fell as much as 11.6% to Rs 501, the lowest since August 27, 2013
• Q4 net income Rs 12,200 crore vs estimate Rs 15,100 crore
• Q4 revenue Rs 71,400 crore vs estimate Rs 78,000 crore
• Declares dividend of Rs 3.50 a share
• Rating cut to underweight vs equal-weight at Morgan Stanley

• Shares of the software maker fell as much as 16.9% to Rs 356, its biggest intra-day fall ever
• Q4 net income Rs 590 crore vs estimate Rs 782 crore
• Stock cut to equal-weight vs overweight at Morgan Stanley
• Consensus price target is 15% higher vs current stock price

Read the entire story here

Indian shares stepped back after indexes hot record highs in the previous session while trading was also lacklustre as most of the world's largest markets were closed for holdiays.

The S&P BSE Sensex fell 0.35 percent to 30,921 while the NSE Nifty declined 0.30 percent to 9,567. Markets are closed in the U.S., the U.K. and China.

Among the sectoral indices, S&P BSE S&P BSE Realty fell 1 percent while the S&P BSE consumer durables shed 0.4 percent.

The market breadth was skewed in the favour of gainers, with about 5 stocks advancing to every 4 stocks that declined.

• Mercator: Bags contract worth Rs 98 crore for maintainence dredging at New Mangalore Port for three years.
• Banco Products: Promoters sell 2.5 percent stake at an average price of Rs 222.58 each to Banco Aluminium.
• Cadila Healthcare: Zydus receives final approval from U.S. FDA for “Acamprosate Calcium Delayed Release Tablets”
• Videocon Industries: Circuit limit revised to 5 percent.
• Bank of Baroda: Board approves raising additional capital funds worth Rs 9,000 crore.
• Strides Shasun: U.S. FDA completes inspection of company's Bangalore plant; issues Form 483 with 3 observations.

For a complete list of stocks, click HERE

It's an important week this one as right from big investors to the aam aadmi all are awaiting monsoons to hit India's Southern coast. And so far it is on track to reach Kerala on May 30.

Yield on the new 10-year note has been falling on rising optimism that consumer inflation will slowdown further after falling to a record low last month. This could nudge the central bank to adopt a softer stance on prices and rethink on reducing interest rates. Good rainfall will strengthen the case further. Market expects yield on the new 10-yeat to stay in a 6.62-6.68% in the day.

In the currency market, dollar is consolidating gains after Fed Bank President of San Francisco John Williams said the economy was strong enough to withstand 3-4 rate hikes this year.

Another missile test by North Korea has further raised geopolitical uncertainties, which may also weigh on emerging market currencies. Rupee may stay in a 64.30-64.50 a dollar range in the day.

• Bharat Heavy Electricals
• Escorts
• Parag Milk Foods
• Aurobindo Pharma
• Power Grid Corp. of India
• Jubilant Foodworks
• Power Finance Corp.
• NTPC
• Coal India
• Larsen & Toubro

• Crompton Greaves: New neutral at HDFC Securities, price target Rs 95
• HeidelbergCement India: Raised to buy at ICICIdirect
• Sun Pharma: Cut to neutral at JPMorgan, price target Rs 550; cut to underweight at Morgan Stanley, price target Rs 468
• Tech Mahindra: Cut to neutral at JPMorgan, price target Rs 410; cut to equal-weight at Morgan Stanley

• Queensland says Adani mine royalty payments could be deferred
• Fight back against ‘Robophobia’ on automation, Modi Adviser says
• OPEC cuts help India refiners to look for alternative oil: BPCL
• Hot spots in emerging markets this week: Brazil, Mexico, India
• Forex reserves rises $4.0 billion to $379.3 billion in a week to May 19: RBI
• Cotton bulls retreat as output set to climb from India to U.S.
• Shenzhen Bourse, India’s BSE sign cooperation MoU
• Kalpen Parekh named president DSP BlackRock Investment Managers
• Global funds sold Rs 274 crore of local stocks; domestic funds bought Rs 10,100 crore on May 26: Provisional data

Good Morning!

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, was little changed to 9,578.

Asian shares were mixed at the start of the week, with trading likely to be subdued as many of the world’s largest markets were shut for holidays.

Japanese stocks drifted lower on the back of a stronger yen while South Korea’s Kospi index extended a record. Markets are closed in the U.S., the U.K. and China.

Also Read: North Korea Fires Ballistic Missile, Drawing Japan's Ire

The haven yen rose 0.1 percent to 111.22 per dollar after North Korea fired another ballistic missile early on Monday.

Meanwhile, it’s a busy week for Federal Reserve with a number of policy makers including Lael Brainard, John Williams and Patrick Harker due to speak at events. Williams is first up, addressing an event in Singapore on Monday.

Oil held gains near $50 a barrel on easing disappointment over an agreement by Organization of Petroleum Exporting Countries and its allies to extend supply cuts to another nine months.