Sensex, Nifty Pause As Earnings-Led Rally Loses Momentum

Indian shares ended little changed after a record close on Wednesday as investors braced for caution ahead of the key economic data scheduled later in the day and amid lack of cues as earnings season draws to a close.

India is set to post annual GDP growth of 7.1 percent in the January-March quarter, according to economists polled by Bloomberg.

The S&P BSE Sensex fell 0.04 percent to 31,145 while the NSE Nifty declined 0.03 percent to 9,621. Both the indexes gained nearly 4 percent in May, their fifth consecutive month of gains.

Among the sectoral indices, S&P BSE Realty gained nearly 1 percent while the S&P BSE Metal index shed 1.4 percent.

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

• 4:30pm: India fiscal deficit in rupees for year ended March
• 5:30pm: India GDP for quarter ended March; Bloomberg estimate 7.1% (Prior 7.0%)
• 5:30pm: India GVA for quarter ended March; Bloomberg estimate 6.8% (Prior 6.6%)
• 5:30pm: India GDP annual estimate YoY; Bloomberg estimate 7.1% (Prior 7.1%)

• Shares of Jaiprakash Associates gained as much as 7.6% to Rs 12.70, the highest since May 18
• Company executed pact with Orient Cement to sell 74% in Bhilai Jaypee Cement, the company said in a regulatory filing
• Pact based on enterprise value of Rs 1,450 crore, the release said

• Shares rose as much as 17.5%, its second straight day of gains
• Volumes at over 11 times its previous 20-day average
• The logistics and supply chain solutions provider has a market cap of around Rs 2,300 crore
• Stock has gained 101% so far this year

• S&P BSE Metal index down 0.9% after rising about 3% over the past 4 sessions
• Vedanta (-2.6%) gained nearly 9% in last 4 sessions
• Hindustan Zinc (-1.3%) advanced nearly 5% in last 4 sessions
• Jindal Steel & Power (-1.2%) gained about 13% in last 5 sessions
• Hindalco Industries (-1%) rose 8% in previous 4 sessions; company posted fifth straight quarterly profit on Tuesday

• 'Sell in May And Go Away', an often repeated adage does not seem to hold true for Indian equities
• India's benchmark index S&P BSE Sensex has gained 4.2% in May this year, taking its gaining streak for the month of May to a fifth year
• Stocks have gained this month on the back of strong overseas inflows worth over Rs 10,000 crore
• Index has gained 17% year-to-date, inline with the increase in MSCI Emerging Markets Index

• Shares of the truck maker rose as much as 4.8% to Rs 1,425, the highest since October 3, 2016
• Stock raised to outperform vs underperform at CLSA
• Price target raised to Rs 1,550 vs Rs 1,280, implying an upside of 9.35 from current price
• Volume at 8.4 times its 30-day average
• Stock is set for a 5th straight day of gains and best monthly gain since June, 2016

• Indian rupee gained 13 paise to 64.55 against the U.S. dollar, snapping two session of fall
• The partially convertible rupee fell 17 paise against the American currency to end at 64.66 on Tuesday
• Seasonal weakness, mainly on the back of gold demand for weddings in the auspicious month of May, is driving INR weakness, Bloomberg reported quoting a report by ANZ Research
• Rupee is set for its worst monthly fall since November, 2016

• Shares of the polyester maker up as much as 13.3% to Rs 394, the most since March 16
• Jindal Poly is in talks to buy DuPont Teijin Film's European business for $300 million, the Economic Times reports, citing people with knowledge of the matter
• Company's Dutch unit may make the acquisition, the report said

• BGR Energy (+3.9%): Q4 net income Rs 14.3 crore vs Rs 23.8 crore last year
• Delta Corp (+1.8%): Q4 net income Rs 11.4 crore vs estimate Rs 16.5 crore
• Gitanjali Gems (-1.8%): Q4 net loss Rs 15.4 crore vs loss Rs 3.3 crore last year
• Housing Development & Infrastructure (+2.6%): Q4 net income Rs 60.6 crore vs Rs 47.4 crore last year
• HCL Infosystems (-0.9%): Q4 net loss Rs 124 crore vs loss Rs 155 crore last year
• ICSA India (-3.9%): Q4 net income Rs 3.4 crore vs loss Rs 8.8 crore last year
• IRB Infra (+2.5%): Q4 net income Rs 207 crore vs estimate Rs 198 crore
• Madras Fertilizers (+1.9%): Q4 net income Rs 13 crore vs loss Rs 83.2 crore last year
• Mahanagar Telephone (-1.9%): Q4 net loss Rs 635 crore vs profit Rs 189 crore last year
• Tata Global (+2.5%): Q4 group net income Rs 31.4 crore vs estimate Rs 102 crore
• MOIL (+4.6%): Q4 net income Rs 116 crore vs estimate Rs 100 crore
• Rolta India (-1.4%): Q4 net income Rs 52.3 crore vs Rs 69.2 crore last year
• Talwalkars Better (+3.5%): Q4 net income Rs 23 crore vs Rs 20.6 crore last year
• Thermax (-1.7%): Q4 net income Rs 35.3 crore vs estimate Rs 101 crore
• United Spirits (+8.9%): Q4 net loss Rs 104 crore vs estimate Rs 92.9 crore profit

• The telecom operator shares fell as much as 5% to a record low of Rs 18.90
• Company's short- and long-term debt downgraded by rating agencies Moody's, Care Ratings and ICRA
• Care Ratings and ICRA downgrade company's debt to default while Moody's downgrade RCom’ bond rating to ‘Caa1’, that is speculative of poor standing or high credit risk
• Company had a net debt of Rs 44,345 crore as of March

Read the full story HERE

• Shares of the airlines carrier fell as much as 5.1% to Rs 436, the lowest since March 3
• Q4 net income Rs 36.8 crore vs Rs 397 crore last year
• Q4 revenue Rs 5,760 crore vs Rs 5,450 crore last year
• Q4 aircraft-fuel expense Rs 1,580 crore vs Rs 999 crore last year

Indian shares opened little changed after four sessions of gains while rupee advanced against the U.S. dollar, as gains in automakers such as Mahindra & Mahindra were offset by poor earnings by Jet Airways and ITDC.

The S&P BSE Sensex was little changed at 31,140 while the NSE Nifty declined 0.05 percent to 9,618.

Among the sectoral indices, S&P BSE S&P BSE Realty rose 0.5 percent while the S&P BSE Auto Index gained 0.6 percent.

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

• Castrol India
• Vatsa Music
• Vatsa Corporations

• Cox & Kings: Board approves scheme of arrangement for demerger of its travel and financial service business.
• Educomp Solutions: National Company Law Tribunal approves company's application under the insolvency and bankruptcy code.
• Gujarat Gas: Enters into a non-binding MoU with Petronet LNG for exploring, dispensing and marketing of LNG.
• Rolta India: Board approves de-listing of GDRs from London Stock Exchange.
• Lloyd Electric & Engineering: Announces special dividend of Rs 20 per share out of the proceeds from the sale of its consumer durables business.

For a complete list of stocks, click HERE

• Ipca Lab: Cut to neutral at IDFC Securities, price target Rs 522
• M&M Financial: Raised to overweight at Morgan Stanley
• NTPC: Raised to outperform at IDFC Securities, price target Rs 186
• Shriram Transport: Raised to overweight at Morgan Stanley

• Modi signals India will hold to Paris climate deal if U.S. quits
• Modi says completed sizable part of his reform process
• Modi’s tax to spur 1,000 new listings, Bombay bourse head says
• Merkel Says India is reliable partner on many major projects
• India approves 4 proposals of FDI, including Baxter Pharma and Vodafone’s proposals: PIB
• India Finance Minister holds meeting on shifting fiscal year to Jan.-Dec.
• India projects 8.8% surplus electricity supply for this FY
• Cotton prices may fall as production to increase, Rabobank says
• Global funds sold Rs 217 crore of local stocks; domestic funds bought Rs 367 crore on May 30: Provisional data
• Trump blasts Germany again as Merkel talks up India ties

Good Morning!

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, rose 0.1 percent to 9,631.

Asian shares were mixed following a weak session on Wall Street, while the British pound weakened as a poll showed Theresa May’s Conservative Party may miss the majority mark.

The Times of London published a YouGov poll showing that the ruling Conservative Party may lose 20 seats and thus majority in parliament.

The pound dropped 0.4 percent to 1.2813 to the U.S. dollar, its first decline this week. The S&P 500 index slipped 0.1 percent on Tuesday, retreating for the first time in eight days.

Meanwhile, Federal Reserve Governor Lael Brainard said soft inflation could cause her to reassess the path forward for monetary policy, should it linger.

Also Read: Too Soon to Price in a Sept. Fed Hike? Investors Think Maybe

Brainard’s remarks underlines the dilemma facing the U.S. central bank as joblessness has fallen to a post-crisis low, but inflation remains muted.

The odds of a rate hike at the June 14 meeting are now down to 90 percent from previous 100 percent, according to futures rates tracked by Bloomberg.

Oil hovered around $50 a barrel as investors weighed resilient U.S. supply against prolonged cuts from Organization of Petroleum Exporting Countries and its allies.