Nifty Halts Three-Day Loss Led By ICICI Bank

Indian equity benchmarks rebounded from three days of losses led by ICICI Bank, which rose ahead of its March quarter earnings. Reliance Industries, ITC and Mahindra & Mahindra also aided the gains in today’s session.

The S&P BSE Sensex rose 0.84 percent or 292.76 points to 35,208.14 and the NSE Nifty 50 index climbed 0.92 percent or 97.25 points to 10,715.50.

Nine out of 11 sector gauges compiled by the National Stock Exchange ended higher led by the Nifty PSU Bank index’s 2 percent gain. On the flipside, the Nifty Pharma index was the top sectoral loser, down 0.5 percent.

The mid- and small-cap indices underperformed their larger counterparts as the S&P BSE MidCap and S&P BSE SmallCap indices rose 0.5 percent each.

Shares of the Vadodara-based movie theatre operator rose as much as 8.57 percent to Rs 290 after its March quarter net profit came in better than Bloomberg consensus estimates.

Key earnings highlights:

• Consolidated net profit at Rs 57.6 crore versus Bloomberg estimate Of Rs 7.3 crore
• Consolidated Revenue at Rs 323.6 crore versus Bloomberg estimate Of Rs 318 crore
• Consolidated EBITDA at Rs 42.1 crore versus Bloomberg estimate Of Rs 36.5 crore
• Consolidated margin at 13 percent versus Bloomberg estimate Of 11.5 percent
• Consolidated net profit at Rs 57.6 crore versus Rs 34 Lk (YoY)
• Consolidated one-time tax gain of Rs 53.7 crore
• Consolidated Revenue up 12.2 percent at Rs 323.6 crore versus Rs 288.4 crore (YoY)
• Consolidated EBITDA up 77.2 percent at Rs 42.1 crore versus Rs 23.7 crore (YoY)
• Consolidated Margin at 13 percent versus 8.2 percent (YoY)

Shares of the Kolkata-based battery maker rose as much as 4.91 percent to Rs 260.80 after it reported better-than-estimates net profit in March quarter.

Key earnings highlights:

• Revenue up 11.57 percent at Rs 2,459 crore versus Rs 2,204.33 crore (YoY)
• Rvenue at Rs 2,459 crore versus Bloomberg estimate of Rs 2,440 crore
• Net profit up 15.85 percent at Rs 190 crore versus Rs 164.26 crore (YoY)
• Net profit at Rs 190 crore versus Bloomberg estimate of Rs 185 crore
• EBITDA up 34.4 percent at Rs 338 crore versus Rs 251.6 crore (YoY)
• Margin at 13.7 percent versus 12.9 percent (YoY)

• SQS India BFSI: The Chennai-based software developer rose as much as 11.37 percent to Rs 556.50 after its profit in March quarter more than doubled.
• Taj GVK Hotels: The Hyderabad-based hospitality chain operator rose as much as 15.3 percent to Rs 244.80. The stock is HDFC Securities' pick of the week and it sees potential upside of 25.5 percent.
• Reliance Infrastructure: The Anil Ambani-led company rose as much as 7.85 percent to Rs 456.60 after its joint venture with Italy's Astaldi won contract for Rs 7,000 crore Versova-Bandra sea link project in Mumbai.
• Suven Life Sciences: The Hyderabad-based drug maker rose as much as 5.8 percent to Rs 192 after its Pashamylaram's unit successfully completed U.S. FDA Inspection.

Maximilian Kunkel, investment strategist at UBS Global Wealth Management spoke to BloombergQuint and said emerging markets will continue to grow due to global expansion and benign liquidity and China would be the key market.

Key conversation highlights:

• Trade war will lead to higher prices, preparing portfolios for that probability
• 20-30 percent probability on an outright trade war in the next 12 months
• Seeing a trend of re-allocation of funds across the globe
• Clients are moving towards diversification of portfolio
• Inflationary pressure not too high for Fed to be restrictive
• Last week's wage growth positive for equity investors
• Nobody knows what full employment in the U.S. is
• See 11 percent earnings growth this year; 15 percent growth next year
• We Were 'overweight' on Indian equities at the start of last year
• Election uncertainty may bring valuations in India down next year
• Neutral on Indian equities at the moment
• Above trend growth this year coupled with normal levels of volatility

Intellect Design Arena: The Chennai-based financial technology firm rose 7 percent to Rs 209.50 after its net profit more than doubled in March quarter. Trading volume was 9.5 times its 20-day average.

Key earnings highlights:

• Revenues up 13.3 percent at Rs 307 crore versus Rs 271 crore
• EBIT up 19.7 percent at Rs 40.7 crore versus Rs 34 crore
• EBIT margins at 13.3 percent versus 12.5 percent
• Net profit up 112 percent at Rs 25.9 crore versus Rs 12.2 crore

IFB Industries: The Kolkata-based home improvement company rose 10 percent to Rs 1,323. Trading volume was 7.6 times its 20-day average.

KRBL: The Delhi-based rice producer rose 7.4 percent to Rs 469.80. Trading volume was 6.6 times its 20-day average.

Jindal Poly Films: The Delhi-based rubber and plastic maker rose 8 percent to Rs 292.05. Trading volume was 6.9 times its 20-day average.

Shares of the Tamil Nadu-based private sector lender rose 1.8 percent to Rs 105.85.

Well-known investor Rakesh Jhunjhunwala raised his stake in the bank to 3.36 percent versus 3.09 percent in the previous quarter, according to the March shareholding pattern submitted by the bank to stock exchanges.

Shares of the small finance bank are trading down over 6 percent on high volumes amid talks of a farm loan waiver in Karnataka

The Bharatiya Janata Party promised an agriculture loan waiver in its manifesto if it is voted to power in the forthcoming election.

Ujjivan Financial Services has around 11 percent of its loan book in Karnataka, according to a Kotak Institutional Equities report.

Shares of the Gurugram-based government-owned company rose 1 percent to Rs 209.

The stock had 43.7 lakh shares changed hands in a block.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Bangalore-based government-owned bank rose as much as 5.34 percent to Rs 63.15 after it reported March quarter earnings.

Key earnings highlights:

• Net interest income up 21 percent at Rs 1,196.54 crore versus Rs 989.5 crore (YoY)
• Net profit up 1.5 percent at Rs 207 crore versus Rs 204 crore (YoY)
• Gross non-performing assets (NPAs) as a percentage of total advances at 6.34 percent versus 6.17 percent (QoQ)
• Net NPA as a percentage of total advances at 4.32 percent versus 3.99 percent (QoQ)

Shares of the Vadodara-based fruit juice maker rose as much as 2.88 percent to Rs 392.65 after it signed an agreement with Parle to jointly distribute brands in Western India beginning with Gujarat, Bloomberg reported.

• Indian equity benchmarks traded firmly higher led by ICICI Bank which rose ahead of its March quarter earnings.
• The S&P BSE Sensex rose 0.3 percent or 103 points to 35,016 and the NSE Nifty 50 index gained 0.3 percent or 33 points to 10,651.
• Sixteen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Consumer Durable index's 1.6 percent gain. On the flipside, the S&P BSE Healthcare index was the top sectoral loser, down 0.9 percent.
• The overall market breadth was neutral as 1,246 shares were advancing while 1,148 were declining on the BSE.

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Shares of the Anil Ambani-led company rose as much as 2 percent to Rs 430.60.

Reliance Infrastructure's joint venture with Italy's Astaldi won contract for Rs 7,000 crore Versova-Bandra sea link project in Mumbai.

The 17.7 km Versova-Bandra sea link project has to be commissioned in 60 months.

Shares of the country's second largest hospital chain operator fell 1 percent to Rs 156.40 after 30.6 lakh shares changed hands in two block deals.

Shares of the oil exploration firms were trading higher after crude oil in U.S. rose above $70 a barrell for the first time since Nov. 2014 as traders braced for a re-imposition of U.S. sanctions on Middle East crude producer Iran.

• Reliance Industries rose 0.9 percent to Rs 964
• ONGC rose 0.8 percent to Rs 181.70

Shares of the cargo ship operator fell as much as 4.5 percent to Rs 331.3, extending declines to a fourth day.

The Great Eastern Shipping Company fell as the company’s net loss widened in the fourth quarter to Rs 418 crore from Rs 34 crore a year earlier.

Earnings Highlights:

• Revenue up 3 percent at Rs 769 crore
• Net loss of Rs 418 crore versus net loss of Rs 34 crore
• EBITDA down 95.5 percent at Rs 7 crore
• Margin at 0.9 percent versus 20.8 percent
• Other income down 64 percent at Rs 46 crore
• Total expenses up 21 percent at Rs 1074 crore

Shares of the Mumbai-based cooking oil maker rose as much as 20 percent to Rs 16.05 after 14.5 lakh shares changed hands in a block deal.

Nifty 10,700 strike price call option was among the most active option contracts on the National Stock Exchange.

Premium on the contract rose 8 percent to Rs 126.45. Over 95,000 shares were added to the open interest which stood at over 28.17 lakh shares.

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Shares of the Vadodara based fertiliser manufacturer fell as much as 3.7 percent, the most in two months, to Rs 248.2.

The company’s net profit fell 5 percent to Rs 20 crore in the fourth quarter of the last financial year.

Earnings Highlights:

• Revenue up 19.5 percent at Rs 393 crore
• Net profit down 5 percent at Rs 20 crore
• EBITDA up 21.25 percent at Rs 48.5 crore
• Margin at 12.3 percent versus 12.2 percent

Shares of the Kolkata-based coffee plantation cultivator rose as much as 1.39 percent to Rs 291.80.

Nestle has agreed to market Starbucks products globally and Nestle will pay Starbucks $7.15 billion as part of global marketing pact.

Tata Global Beverages’ subsidiary Tata Coffee sources and roasts coffee to supply to Tata Starbucks and to export to Starbucks Coffee Company.

Shares of the Mumbai-based power transmission company fell as much as 3.7 percent to Rs 410.80.

The company in a clarification to stock exchanges said that its seven employees which include six Indian citizens and one Afghan national have been abducted in Afghanistan.

The company added that matter is sensitive and is being looked at by the Ministry of External Affairs at the highest level.

Shares of the Chennai-based software developer rose as much as 11.37 percent to Rs 556.50 after its profit in March quarter more than doubled.

Key earnings highlights:

• Revenue rose 31.5 percent to Rs 75.6 crore versus Rs 57.5 crore (YoY)
• Net profit up 105 percent at Rs 9.46 crore versus Rs 4.86 crore (YoY)

Shares of the country's third largest private sector lender by market cap rose 0.6 percent to Rs 284.50 ahead of its March quarter earnings.

Here's what to expect from ICICI Bank in Q4:

• Net interest income (NII) seen 1 percent lower at Rs 5,901 crore versus Rs 5,962 crore
• Net profit seen 47.6 percent lower at Rs 1,061 crore versus Rs 2,025 crore
• High variance in PAT estimates ranging from a profit of Rs 2,295 crore to a net loss of Rs 1,409 crore
• NIM seen at 3.10 percent versus 3.14 percent (QoQ)

Source: Bloomberg

Shares of the Mumbai-based drug maker fell as much as 11 percent to Rs 715 after it reported loss in quarter ended March 2018.

Key earnings highlights:

• Revenue up 18 percent at Rs 1,018 crore
• Net loss of Rs 155 crore versus net loss of Rs 175 crore
• Other income of Rs 56 crore in base quarter

Shares of the Delhi-based jewellery retailer rose for third straight day.

The stock surged as much as 35 percent to Rs 235.75 after it preponed board meet to discuss share buyback proposal on May 10 from May 25, PC Jeweller said in an exchange filing.

In early trading as many 7.8 lakh shares changed hands in three blocks.

In the last three trading sessions, the stock has surged 113 percent after falling as much as 62 percent.

Shares of the Mumbai-based chemical maker fell as much as 7.7 percent to Rs 2,052 after it reported March quarter earnings.

BASF India's EBITDA or operating profit declined 18 percent to Rs 100 crore which led to sharp fall in stock price of the company.

Indian equity benchmarks edged higher along with government bond yields which rose after the Reserve Bank of India said it will buy Rs 10,000 crore of debt via open market operation next week.

The S&P BSE Sensex rose 0.35 percent or 104 points to 35,017 and the NSE Nifty 50 index gained 0.33 percent or 34 points to 10,650 led by private sector lenders and IT stocks.

All sector gauges barring the Nifty Pharma index were trading higher on the National Stock Exchange led by the NSE Nifty PSU Bank index's 0.9 percent gain.

The rupee dropped 20 paise to hit 15-month lows of 67.07 against the American currency in late morning deals today on sustained dollar demand from importers and banks amid sharp rise in the greenback overseas.

The rupee opened higher at 66.82 as against last Friday's closing level of 66.87 per dollar at the inter-bank foreign exchange here.

The domestic unit witnessed sudden bouts of volatility as it spiralled down to a low of 67.08 before quoting at 67.07 at 1025 hrs. The rupee last quoted at 67.01 on February 17, 2017.

Source: Press Trust of India

Indian bonds are set to rally after the central bank said it will buy Rs 10,000 crore of debt via open market operation next week. This after underwriters had to rescue a third straight auction last week. It is important to note that the RBI is using all tools at its disposal to ease bond yields which were last at 7.73 percent.

Investors see 8-10 basis points fall in yields at the open and this also will raise expectations of more such measures to keep them low.

In the currency market, implied opening from forwards suggest the spot can open around 66.80 per dollar. The Bloomberg Dollar Index is down 0.2 percent and with Asian markets looking up, we may see the pair in a range of 66.70-66.95 a dollar in the day.

Credit Suisse on Ambuja Cements

• Maintain ‘Underperform’; Cuts target price to Rs 202 from Rs 220
• Q1CY18 results weak on both volume growth and cost trend
• Cost pressure only partly visible in Mar 2018; More to come
• Rupee depreciation to further worsen the cost pressure
• Cut CY18/19 EPS estimates by 17/8 percent to build lower cement prices and higher cost

Macquarie on Ambuja Cements

• Maintain ‘Neutral’; Cuts target price to Rs 242 from Rs 300
• Q1CY18 in-line; Lower volumes offset by lower cost
• Volume growth to return to 4-5 percent in CY18-19 due to capacity constraints
• Lower than mean valuations to limit downside

Antique on NIIT Tech

• Maintain ‘Buy’; Raises target price to Rs 1,210 from Rs 1,000
• Q4 results significant beat; Revenue/EBIT growth best in peers
• Robust outlook for FY19 backed by healthy deal pipeline
• Company expects double digit revenue growth
• Trading at discount to peers; Risk reward compelling

Motilal Oswal on CESC

• Maintain 'Buy'; Raised target price to Rs 1,440 from Rs 1,408
• Unlocking value through demerger
• Distribution and generation - combined value greater than the current market cap
• Spencers - focus turning to growth; Target to increase margins to 5 percent

Citi on Petronet LNG

• Maintain 'Buy' with target price of Rs 310
• Stock trading at 10 percent off our bear case value of Rs 195
• At current levels, risk-reward is attractive
• Investors nervous on start-up of Mundra Regas Terminal & FSRU by H-Energy at Jaigarh
• Believe Mundra could get to 30 percent utilisation

• Sources close to Lupin say U.S. FDA to start inspection of the drugmaker’s Nagpur plant from May 7
• UltraTech submits fresh offer of Rs 7840 crore For Binani Cement. The lenders are expected to meet on Monday to discuss UltraTech’s new bid (Economic Times)
• PC Jeweller prepones buyback date to May 10 from earlier announced May 25
• Aurobindo Pharma launches $1.6 billion bid to buy Novartis’ generics unit (Mint)
• Infosys approves Rs 13 crore of annual performance equity grant for MD and CEO Salil Parekh
• L&T IDPL transfers stake in five units to IndInfravit Trust
• Fortis Healthcare receives revised offer from Manipal Healthcare. The hospital chain operator has appointed Arpwood Capital to advise on sale bids. Shareholders, meanwhile, approve acquisition of RHT Health Trust assets.
• MRF, JK Tyres, Ceat: Tyre companies raise prices up to 3 percent on back of rising input costs
• NHPC receives CERC nod to undertake interstate trade in electricity across the country
• Bodal Chemicals to acquire land at PCPIR, Dahej from GIDC for future expansion and new projects
• Airtel says talks on Bain BV listing at exploratory stage
• Glenmark Pharma says clinical trials at Malpani Hospital suspended
• Blackstone buys Indiabulls asset in Tamil Nadu for Rs 900 crore (ET)
• Welspun Gets demand notice of Rs 179 crore for tax, interest, penalty for FY10 and FY11
• Vakrangee appoints A. P. Sanzgiri & Co as auditors for FY17-18 to fill in casual vacancy
• Cadila Healthcare says Zydus gets final approval from FDA for Succinylcholine Chloride

Nifty Earnings To Watch

• ICICI Bank

Other Earnings

• Exide Industries
• Firstsource Solutions
• Inox Leisure
• Pfizer
• Talwalkars Better Value Fitness
• Tata Coffee
• Tata Investment Corporation
• Vijaya Bank
• Zee Learn

Avenue Supermarts Q4 YoY

• Revenue up 22.5 percent at Rs 3,809.9 crore
• Net profit up 73 percent At Rs 167.1 crore
• EBITDA up 41.7 percent At Rs 294.4 crore
• Margin At 7.7 percent versus 6.7 percent

Nocil Q4 YoY

• Revenue up 44.5 percent at Rs 276 crore
• Net profit up 143 percent at Rs 51 crore
• EBITDA up 113 percent at Rs 84 crore
• Margin at 30.4 percent versus 20.7 percent

SQS India Q4 QoQ

• Revenue up 9 percent at Rs 76 crore
• Net profit up 82 percent at Rs 10 crore
• EBIT up 57 percent at Rs 11 crore
• Margin at 14.5 percent versus 10 percent
• Other Income of Rs 3.8 crore in current quarter

Wockhardt Q4 YoY

• Revenue up 18 percent at Rs 1,018 crore
• Net loss of Rs 155 crore versus net loss of Rs 175 crore
• Other income of Rs 56 crore in base quarter

Deepak Nitrite Q4 YoY

• Revenue up 19.5 percent at Rs 393 crore
• Net profit down 5 percent at Rs 20 crore
• EBITDA up 21.25 percent at Rs 48.5 crore
• Margin at 12.3 percent versus 12.2 percent

Indo Count Industries Q4 YoY

• Revenue down 13 percent at Rs 406 crore
• Net profit down 45 percent at Rs 27 crore
• EBITDA down 6 percent at Rs 42 crore
• Margin at 10.3 percent versus 9.5 percent

Great Eastern Shipping Co Q4 YoY

• Revenue up 3 percent at Rs 769 crore
• Net loss of Rs 418 crore versus net loss of Rs 34 crore
• EBITDA down 95.5 percent at Rs 7 crore
• Margin at 0.9 percent versus 20.8 percent
• Other income down 64 percent at Rs 46 crore
• Total expenses up 21 percent at Rs 1074 crore

BASF India Q4 YoY

• Revenue up 5.5 percent at Rs 1,344 crore
• Net profit up 53.5 percent at Rs 66 crore
• Other Income of Rs 11 crore in current quarter
• EBITDA down 18 percent at Rs 100 crore
• Margin at 7.4 percent versus 9.6 percent

• Nifty May Futures closed trading at 10,658.7 with a premium of 40.5 points versus of 26.9 points.
• All series- Nifty & Bank Nifty open interest (OI) unchanged.
• India VIX ended at 13.2, up 2 percent.
• Max OI for May series call at 11,000 strike price call option, OI at 57.9 lakh shares, down 3 percent.
• Max OI for May series put shifts to 10,500 strike price put option, OI at 48 lakh shares, up 7 percent.

Stocks Seeing High Open Interest Change

Bulk Deals

Career Point

• KIFS Enterprise sold 1.05 lakh shares or 0.6 percent equity at Rs 125.09 each.

Gitanjali Gems

• Morgan Stanley France SAS sold 6.67 lakh shares or 0.6 percent equity at Rs 2.8 each

Elpro International

• IGE (india) Private Limited bought 9.94 lakh shares or 0.7 percent equity at Rs 58.85 each.
• Cresta Fund Ltd sold 10 lakh shares or 0.7 percent equity at Rs 58.85 each.

Trading Tweaks

• JBF Industries shifted to T group and placed under additional surveillance.

Insider Trades

• Rajesh Exports promoter Rajesh Mehta acquired 9,789 shares on May 3.
• Kwality Ltd promoter Sanjay Dhingra acquired 10 lakh shares on May 3.

• Essar Steel lenders to consider allowing ArcelorMittal, Numetal to repay overdue loans
• NCLT suggests IBBI review insolvency code regulations
• After Videocon d2h merger, Dish TV plans Rs 1,700 crore investment
• Libor refuses to die, setting up $370 trillion benchmark battle
• Delhi High Court stays proceedings in criminal complaint against Uber
• Telecom ministry to decide on Idea’s 100% FDI proposal: Suresh Prabhu
• IBA draws plan to measure reform implementation by public sector banks
• Marksans Pharma arm recalls Ibuprofen tablets from U.S.
• Fortis Healthcare receives revised offer from Manipal Healthcare
• Wuhan-Wuhan bhai-bhai is seductive, but here’s a history lesson
• It’s Nikola vs Tesla in $2 billion truck lawsuit!
• Karnataka elections: Five issues that will matter

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India was little changed at 10,674 as of 7:00 a.m.

Asian stocks were mixed at the open, shrugging off the biggest advance in U.S. shares in almost four weeks Friday as the country’s jobless rate hit an 18-year low.

Here are some key events coming up this week:

• Nafta talks resume in Washington Monday. The negotiators are expected to push for a final deal, but U.S. Commerce Secretary Wilbur Ross said talks could drag on for months.
• Chinese trade data due Tuesday.
• Australian annual budget Tuesday.
• Malaysia holds a general election Wednesday.
• Japanese Prime Minister Shinzo Abe hosts South Korean President Moon Jae-in and Chinese Premier Li Keqiang Wednesday.
• Bank of England policy decision Thursday.
• Deadline set by President Trump on whether to stick with with 2015 Iran nuclear accord or pull out and reimpose sanctions on the Persian Gulf nation.
• Walt Disney, Petrobras, Marriott, Toyota, Ambev, Deutsche Telekom, Sun Life Financial, Nvidia, Brookfield Asset Management, Anheuser-Busch InBev, Panasonic, Banco do Brasil, Nissan, Thomson Reuters, Sysco, Tyson Foods, SoftBank, Siemens and 21st Century Fox are among many companies announcing earnings.
• South Korean markets are closed for a holiday.

Bonds

• The yield on 10-year Treasuries was little changed at 2.95 percent Friday.
• Australia’s 10-year bond yield fell two basis point to 2.75 percent.

Commodities

• West Texas Intermediate crude was up 0.1 percent to $69.81 a barrel, the highest in more than three years. It increased 1.9 percent on Friday.
• Gold rose 0.1 percent to $1,316.01 an ounce.
• LME copper was little changed at $6,826 a metric ton on Friday.