Sensex, Nifty Halt Two-Day Gains; Rupee Slips To 13-Month Low

Indian equity benchmarks snapped their two-day winning streak dragged by banks and metal stocks amid weakening rupee which fell to fresh 13-month low raising concerns about macros.

The S&P BSE Sensex fell 0.3 percent or 115.37 points to 34,501.27 and the NSE Nifty 50 index declined 0.4 percent or 43.80 points to 10,570.55.

Nine out of 11 sector gauges compiled by the National Stock Exchange ended lower led by the Nifty PSU Bank index's 1.6 percent drop. On the flipside, the Nifty IT index rose 1.15 percent tracking weak rupee against the U.S. dollar.

Shares of the Mumbai-based cement maker rose 0.46 percent to Rs 4,138 after it reported March quarter earnings.

Key earnings highlights:

• Consolidated net profit at Rs 446 crore versus Rs 725.90 crore (YoY)
• One time exceptional stamp duty expense of Rs 226 crore
• Consolidated revenue at Rs 9,420.76 crore versus Rs 7,293.80 crore (YoY)
• Total sales volume growth of 31 percent
• Standalone revenue at Rs 9,002 crore versus Rs 7,499 crore (YoY)

Shares of the Mumbai-based real estate companies were witnessing good buying interest.

Maharashtra government will release 3,355 hectares of land previously designated as no-development zone for building apartments and commercial complexes in Mumbai, the world’s second most crowded city.

Here are the key highlights from the press conference, also addressed by Nitin Karir, secretary at the state’s Urban Development Department:

• 1 million affordable homes targeted.
• Open spaces marked as no-construction areas.
• No suggestion to delete open spaces accepted.
• Theme gardens, pay and park parking, old-age homes, walking provision, farmers market earmarked.
• 12,859 hectares marked as natural areas—hills, slopes, mangroves, eco sensitive areas—where no development can take place.
• Fly ash to be allowed as a building material.
• Floor space index -- the extent of development allowed on a piece of land -- for commercial development increased to 5.
• FSI in the island city raised to 3.
• FSI for suburbs unchanged at 2.5.

Gauge of realty stocks on the BSE — S&P BSE Realty index rose 0.3 percent outperforming the Sensex which was down 0.4 percent.

• DB Realty rose as much as 20 percent
• Indiabulls Real Estate up 4.7 percent
• Marathon Nextgen Realty up 5 percent
• HDIL up 4 percent
• DLF up 3.5 percent

The Mumbai-based hair care product maker fell as much as 4.36 percent to Rs 471 after it missed consensus Bloomberg earnings estimates in March quarter.

Key earnings highlights:

• Net profit at Rs 55.41 crore versus estimate of Rs 60.20 crore
• Revenue at Rs 214 crore versus estimate of Rs 223 crore
• Total cost at Rs 152 crore

• Indian equity benchmarks extended losses dragged by banking heavyweights like HDFC Bank and ICICI Bank and the rupee also fell to its lowest level in over 13 months.
• The S&P BSE Sensex fell 0.5 percent or 170 points to 34,446 and the NSE Nifty 50 index declined 0.6 percent or 67 points to 10,546.
• Market breadth was negative as two shares were declining for one advancing share on the BSE.
• Fifteen out of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Metal index's 1.6 percent fall. It was followed by the gauge of banking shares which fell 1 percent.

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Rupee extended decline against the U.S. dollar to hit fresh 13-month low.

The local unit fell as much as 38 paise or 0.58 percent to 66.77 per U.S. dollar.

Shares of the jute product makers surged after the government raised minimum support prices for raw jute to Rs 3,700 per 100 kgs.

• Ludlow Jute & Specialties rose as much as 18.39 percent to Rs 103
• Cheviot rose as much as 5.68 percent to Rs 1,610

Shares of the Mumbai-based department store operator slipped 0.78 percent to Rs 607.70.

As many as 20 lakh shares worth Rs 119 crore changed hands in Future Retail at Rs 595 per share on the BSE.

Buyers and sellers were not immediately known

Source: Bloomberg

Indian equity benchmarks were struggling dragged down by HDFC twins and ICICI Bank. However, the losses were capped as IT shares rose tracking weakness in Indian rupee against the U.S. dollar.

The S&P BSE Sensex was trading 0.14 percent lower at 34,563 and the NSE Nifty 50 index fell 0.2 percent to 10,590.

Eight out of 11 sector gauges compiled by National Stock Exchange were trading lower led by the Nifty Metal index's 1.1 percent fall. While, the Nifty IT index rose 1.5 percent.

The overall market breadth was negative as 1,414 shares were declining while 983 were advancing on the BSE.

Shares of IT companies were trading higher tracking weakness in Indian rupee against the U.S. dollar.

Gauge of IT companies on the NSE — Nifty IT index rose 1.57 percent.

Analysts say a weak rupee auger well for IT companies' earnings as a they earn sizeable amount of revenues in dollars.

• Reliance Communications has 13.4 lakh shares change hands in a block.

Buyers and sellers were not immediately known

Source: Bloomberg

• Varun Beverages: The Gurugram-based beverage maker rose as much as 5.75 percent. Trading volume was 57.9 times its 20-day average.
• Brigade Enterprises: The Bangalore-based real estate developer rose as much as 8.71 percent to Rs 282. Trading volume was 28.3 times its 20-day average.
• GATI: The Secunderabad-based logistics service provider rose as much as 13 percent to Rs 136.70. Trading volume was 24.6 times its 20-day average.
• Indoco Remedies: The Mumbai-based drug maker fell as much as 7.4 percent to Rs 204. Trading volume was 7 times its 200-day average.

Shares of the Delhi-based financial services company rose as much as 9.89 percent, the most since April 12, to Rs 61.65.

The Burman family of Dabur Group purchased warrants which on conversion will give them 9.9 percent stake in Religare Enterprises, The Economic Times reported.

Shares of the Bangalore-based staffing and human resource service provider rose as much as 17.87 percent to record high of Rs 2,910.

The stock rose for second straight day after Edelweiss Capital initiated coverage on the stock with a 'buy' for target price of Rs 2,700.

The stock has 14 buy calls and one sell recommendation.

Nifty 10,600 strike price call option contract was among the most active option contracts on the National Stock Exchange. Premium on the contract fell 42 percent to Rs 25.70.

As many as 12.42 lakh shares were added to open interest which stood at 40.43 lakh shares.

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Shares of the Pune-based software developer rose as much as 2.7 percent to record high of Rs 1,180 after its board approved stock split in ratio of five shares for every one share held.

Shares of the Delhi-based packaged food and fertiliser maker fell as much as 15 percent, the most in 17 months, to Rs 373.35 after its profit in March quarter declined 67 percent.

Key earning highlights:

• Revenue down 3 percent at Rs 1,566 crore.
• Net profit down 67 percent at Rs 51 crore.
• Ebitda down 62 percent at Rs 85 crore.
• Margin at 5.4 percent.

Shares of the Delhi-based hospital chain operator slipped 0.07 percent to Rs 151.80. The stock has so far risen 23 percent this month amid growing number of suitors for its hospital business.

A company backed by private-equity firm KKR & Co. and another TPG-backed firm revised offers for Fortis Healthcare Ltd. as the latter’s board meets this week to decide on the final bidder for India’s second-largest hospital chain.

Meanwhile, KKR-backed Radiant Life Care Pvt. Ltd. revised its offer for Fortis Healthcare Ltd. after the board of India’s second-largest hospital chain decided it would only consider binding bids.

Radiant Life's Abhay Soi On Fortis Bid:

• We were looking to bid for entire assets initially
• Will be difficult to determine true value for minority shareholders if strategic investor comes in
• Radiant would be interested in SRL as well and would like to be part of the diligence process
• Have proposed a full cash deal and not thinking about a merger at this point in time

Shares of the Mumbai-based textile maker rose as much as 4.54 percent, the most since April 9, to Rs 1,113 after its board approved Rs 300 crore development plan for 20 acres of land in Thane near Mumbai.

Meanwhile, Raymond's net profit in March quarter fell 61 percent to Rs 53 crore while its revenue rose 11 percent to Rs 1,630 crore.

Plan To Open 200 'Raymond Mini' Stores: Raymond To BloombergQuint

• Strong recovery from the impact of demonetisation and GST
• Strategies under Raymond reimagine plan have been executed well
• Revenue growth of 13 percent and EBITDA Margin at 9.1 percent
• Been a good year for revenue and profit growth
• Q4 performance in line with guidance for 2020
• Textile and branded apparel business have outperformed targets
• branded textile growth at 13 percent in Q4 includes shirting and suiting business
• Growth on the back of a strong wholesale channel
• Institutional sale has emerged as a strong category
• Branded apparel has grown at 19 percent with EBITDA turning positive
• Raymond Ethnic and Nextlook new launches under branded apparel
• Have an aggressive rollout plan to increase retail footprint
• Plan to open 200 'Raymond Mini' stores
• Expecting to add overall 250 stores in FY18-19
• Tools and hardware business has turned around
• Full capacity utilisation in the auto business
• Auto business revenue grown at 32 percent
• Will expand capacities to sustain growth rate
• Strong orderbook on the back of guidance from customers
• Board has approved development of 20 acres of land for residential purposes
• Have secured major part of regulatory approval
• Estimate spending towards project development at rs 300 crore in current year

Shares of the private life insurance company rose as much as 4.9 percent to three-month high of Rs 438.60.

International brokerage Citi revised its recommendations and target price after the company announced its fourth quarter results.

Citi upgraded its recommendation on ICICI Prudential Life Insurance Company Ltd. to ‘Buy’ from ‘Neutral’. The price target was raised to Rs 525 from Rs 450 implying a 26 percent upside potential from the last close.

Credit Suisse also maintained its ‘Outperform’; and raised the price target to Rs 515 from Rs 495.

Shares of the country's largest wireless telecom operator rose as much as 3.35 percent, the most in a month, to Rs 419.70 after it surprised Street with a profit in March quarter led by improvement in Africa business.

Bharti Airtel's net profit fell 73 percent over the previous three months to Rs 83 crore in the quarter ended March, it said in an exchange filing. That compares with a net loss of Rs 25 crore that analysts polled by BloombergQuint had forecast.

Indian equity benchmarks edged lower dragged by HDFC Bank, Kotak Mahindra Bank and HDFC. However, the losses were capped as index heavyweight Reliance Industries, Bharti Airtel and Wipro saw buying interest.

The S&P BSE Sensex fell 0.1 percent or 30 points to 34,585 and the NSE Nifty 50 index declined 0.13 percent or 14 points to 10,600.

Fourteen out of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Realty index's 0.6 percent fall. On the flipside, the S&P BSE Telecom index was the top sectoral gainer, up 1 percent.

The mid- and small-cap shares were trading on a muted note as the respective indices were little changed in the opening deals.

The rupee depreciated 32 paise to fresh 13-month low of 66.71 against the U.S. dollar at the interbank foreign exchange due to appreciation of the greenback amid rising U.S. bond yields and surge in global crude oil prices.

Also, a lower opening in the domestic equity market too weighed on the investor sentiment.

The rupee yesterday recovered by 10 paise to 66.38 against the U.S. dollar due to fresh selling of the American currency by exporters and banks.

Bharti Airtel Ltd. approved the merger of Indus Towers Ltd. with Bharti Infratel Ltd. in a deal that will create the largest tower company, outside of China.

Merger ratio for the deal will be 1,565 shares of Bharti Infratel for every 1 Indus Towers share, Bharti Airtel said in an exchange filing. The deal values Indus Towers at an enterprise value of $10.8 billion.

Indian bonds could cede ground on Wednesday, hurt by U.S. Treasury yields topping 3 percent and rising oil prices.

In a signal of a rather subdued appetite for bonds, foreigners bought less sovereign debt quota than what was offered at an auction on Tuesday. The 10-year bond yield fell 6 basis points to 7.68 percent, but analysts say that this drop could prove temporary given crude oil prices and a weakening rupee all of which could fan inflationary pressures.

Meanwhile, the rupee is expected to open weaker at 66.46 per dollar, compared with its close of 66.3875 on Tuesday.

The local currency has weakened 1.8 percent so far this month, making it Asia's second-worst currency. Chartists say, improved sentiment towards the dollar, means the rupee could drop to 66.88, the low struck on Sept. 28 of last year.

Morgan Stanley on Telecom Subscribers Data

• Jio continues to see highest net adds.
• Top incumbents continued to gain from smaller operators.
• Airtel’s strong traction in data subscriber to be ARPU accretive.
• Idea-Vodafone: Subscriber addition strong; Data subscriber addition slowed.

BNP Paribas on Telecom Subscribers Data

• JioPhone gaining traction in rural markets.
• Jio's active subscribers catching up with those of incumbents.
• Broadband adds: Jio continues to lead; Good month for Airtel.
• Timing of recovery remains uncertain; Worst of down-trading seems behind.

Credit Suisse on ICICI Prudential

• Maintained ‘Outperform’; raised price target to Rs 515 from Rs 495.
• March quarter was strong; Sharp rise seen in margins and RoEV.
• Margin driven by product mix and cost saving.
• Improvement seen in persistency ratio.
• ICICI Prudential remains top pick in life insurance.

Credit Suisse on Persistent Systems

• Maintained ‘Outperform’ with a price target of Rs 960.
• March quarter remained weak, but better than estimates
• IBM alliance likely to grow in the current financial year.
• Double-digit growth looks possible in the current financial year.
• Believe there is scope for margins to expand.
• Persistent trades at attractive valuations.

Citi on Persistent Systems

• Maintained ‘Sell’ with a price target of Rs 655
• March quarter was weak, largely inline given the profit warning
• Management expects growth to be better in the current financial year.
• Persistent’s growth continues to lag peers despite an early start in digital.
• Improved execution is the key from here on.

Credit Suisse on M&M

• Maintained ‘Outperform’; raised price target to Rs 970 from Rs 940.
• Tractor momentum to remain strong with normal monsoon forecast.
• CV segment continues to do well; Segment also reaching break-even.
• Increase in price target driven by rise in subsidiary valuation.

Edelweiss Investment on Avanti Feeds

• Initiated ‘Buy’ with a price target of Rs 3,306.
• Royalty among shrimp feed produces.
• Healthy industry tailwinds coupled with rising demand for shrimp augur well for the company.
• Augmenting capacity to become largest shrimp processer in India.
• Shrimp feed and Processes shrimp demand to compound at 25 percent and 91 percent over the fiscal 2017-2020.
• Expect revenue and net profit to compound at 33 percent and 16 percent respectively over the fiscal 2018-2020.

• Wipro
• UltraTech Cement

Other Earnings To Watch

• Bajaj Corp
• Future Supply Chain
• ICICI Lombard General
• Indiabulls Real Estate
• Jindal Stainless
• Mahindra & Mahindra Financial Services
• Reliance Nippon Life AMC
• Syngene International
• Agro Tech Foods
• GHCL
• Khaitan Electricals
• KSB Pumps
• Meera Industries
• Miven Machine Tools
• Soril Holdings And Ventures
• Sterlite Technologies
• Wendt

Bharti Airtel (Q4, QoQ)

• Revenue down 3 percent at Rs 19,634 crore.
• Net profit down 73 percent at Rs 83 crore.
• Ebitda down 7 percent at Rs 6,930 crore.
• Margins at 35.3 percent vs 36.8 percent.
• ARPU down 6 percent at Rs 116.

Also Read: Bharti Airtel’s Profit Declines 73% In March Quarter

GIC Housing Finance (Q4, YoY)

• Revenue up 11 percent at Rs.297 crore.
• Net profit up 28 percent at Rs 60 crore.

Persistent Systems (Q4, QoQ)

• Revenue down 5.1 percent at Rs 752 crore.
• Net profit down 20 percent at Rs 73.7 crore.
• EBIT down 32.7 percent at Rs 66 crore.
• EBIT margin at 8.8 percent vs 12.4 percent.

DCM Shriram (Q4, YoY)

• Revenue down 3 percent at Rs 1,566 crore.
• Net profit down 67 percent at Rs 51 crore.
• Ebitda down 62 percent at Rs 85 crore.
• Margin at 5.4 percent.

IDFC Bank (Q4, YoY)

• Net Interest Income down 10 percent at Rs 453 crore.
• Net profit down 76 percent at Rs 42 crore.
• Provisions up 122 percent at Rs 242.5 crore.
• GNPA at 3.31 percent vs 5.62 percent (QoQ).
• NNPA at 1.69 percent vs 2.52 percent (QoQ).

Oberoi Realty (Q4, YoY)

• Revenue up 19 percent at Rs 345 crore.
• Net profit up 40 percent at Rs 143 crore.
• Ebitda up 22 percent at Rs 184 crore.
• Margin at 53.3 percent vs 52.1 percent.

Raymond (Q4, YoY)

• Revenue up 11 percent at Rs 1,630 crore.
• Net profit up 61 percent at Rs 53 crore.
• Ebitda up 32.5 percent at Rs 151 crore.
• Margin at 9.3 percent vs 7.7 percent.

Zensar Tech (Q4, QoQ)

• Revenue up 3 percent at Rs 815 crore.
• Net profit up 24 percent at Rs 73 crore.
• Other income of Rs 27 crore in the current quarter.
• EBIT down 8 percent at Rs 83 crore vs Rs 90 crore.
• Margin at 10.2 percent vs 11.3 percent.

Supreme Petrochem (Q4, YoY)

• Revenue up 3 percent at Rs 888 crore.
• Net profit down 41 percent at Rs 41 crore.
• Ebitda down 38 percent at Rs 69 crore.
• Margin at 7.8 percent vs 12.9 percent.

• Hero MotoCorp raises 2-wheeler prices by up to Rs 625 to offset rising input cost
• Gokaldas Exports board approves opening of QIP issue at floor price of Rs 90.94 per share
• Radiant Life further sweetens deal for Fortis; also offers to buy Mulund Hospital
• Zensar Board approves stock split of equity shares in the ratio 5:1
• Raymond board approves Rs 300 crore development plan for 20 acres land at Thane
• Ashoka Buildcon executes concession pact for Karnataka road project
• Strides to divest holding in remaining API assets to Solara for Rs 131 crore
• GATI board meeting on April 26 to consider new financial/strategic partner
• DCM Shriram board approves expansion of PVC capacity for Rs 32 crore
• IMFA alloys says operations at Therubali plant suspended due to protests
• HIL starts commercial production at Gujarat plant
• Autoline Industries in pact with Tae Sung, Korea
• MPS Ltd to acquire Tata Interactive Systems

• Nifty April futures closed trading at 10,617.9 with a premium of 3.6 points versus 1.45 points
• Nifty May Futures closed trading at 10,642 with premium of 27.7 points versus 28.8 points
• Nifty Rollover at 28 percent, Bank Nifty rollover at 31 percent
• All series- Nifty open interest (OI) down 3 percent, Bank Nifty OI up 7 percent
• India VIX ended at 11.8, down 9.5 percent
• Max OI for April series call at 10,700 strike price call option, OI at 44.9 lakh shares, down 7.5 percent
• Max OI for April series put shifts to 10,500 strike price put option, OI at 49.5 lakh, down 14 percent

Advanced Enzyme Technologies

• HDFC MF bought 22 lakh shares or 2 percent equity at Rs 226 each.
• Promoter Chandrakant Rathi Innovations and Projects Private sold 23.30 lakh shares or 2.1 percent equity at Rs 226.03 each.

Hathway Cable

• CLSA Global Markets Pte. Ltd sold 2.55 crore shares or 3.1 percent equity at Rs 35.99 each.

Ajmera Realty

• ARIIL Trust bought 5 lakh shares or 1.4 percent equity at Rs 275.4 each.
• Promoter Rajnikant Ajmera sold 5 lakh shares or 1.4 percent equity at Rs 275.4 each.

Associated Alcohols & Breweries

• Garnet Tradelink Pvt Ltd sold 1.10 lakh shares or 0.6 percent equity at Rs 384.64 each.

Trading Tweaks

• Bhushan Steel circuit filter revised to 10 percent
• NBCC ex-date for 2:1 stock split. F&O lot size revised to 6,000

• KKR-Backed Radiant Life makes a binding bid for Fortis
• Trump says Mnuchin going to China to negotiate trade in days
• Essar Steel lenders to seek further information from Numetal and ArcelorMittal
• IHH Healthcare revises offer for Fortis
• Finance Ministry to move to cash basis accounting for GST collection
• Telecom tribunal partially stays TRAI’s predatory pricing order
• Auditors raise doubts over Reliance Naval and Engineering’s future
• CCI rules out cartelisation among banks in fixing savings interest rates
• Bankruptcies are booming in India, but where are the judges?
• Macron says he wants ‘new accord’ after Trump threatens Iran
• Generic-drug firms face U.S. price-fixing charges

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India fell 0.80 percent to 10,535 as of 6:38 a.m.

Asian stocks followed their U.S. counterparts lower with industrial shares leading the decline. The 10-year Treasury yield pared gains after piercing the 3 percent level for the first time in four years.

These are some important events coming up this week:

• U.S. GDP and jobless claims are due.
• Earnings season continues. Among those reporting: Amazon.com, Samsung and Credit Suisse.
• The European Central Bank has a rate decision on Thursday.
• Investors will watch for any sign that officials are preparing a shift in stimulus plans for their June meeting.
• Bank of Japan announces its latest policy decision Friday and releases a quarterly outlook report.

Bonds

• The yield on 10-year Treasuries fell one basis point to about 2.99 percent.

Commodities

• West Texas Intermediate crude rose 0.2 percent to $67.86 a barrel.
• Gold fell less than 0.1 percent to $1,329.67 an ounce.