Sensex, Nifty End Lower On Karnataka Cliffhanger
Market participants will watch out for the outcome of the Karnataka assembly elections.
Rupee Breaches 68 Per Dollar
Indian rupee weakened further to breach 68 per U.S. dollar for the first time since Jan. 30, 2017.
The rupee in intraday deals fell as much as 53 paise or 0.80 percent to 68.05.
Closing Bell
Indian equity benchmarks edged marginally lower after Bharatiya Janata Party's lead diminished from the halfway mark while Congress offered to support Janata Dal (Secular) for forming the government in Karnataka. The JD(S) has accepted its offer, according to Congress leader Ghulam Nabi Azad.
The S&P BSE Sensex ended little changed at 35,543.94 and the NSE Nifty 50 index also ended little changed at 10,802.
Earlier in the day, when trends showed BJP leading on more than 120 seats, the Sensex and Nifty rose to their highest level in over three months.
Sixteen out of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Realty index's 1.9 percent drop. On the flipside, the S&P BSE IT index was the top gainer, up 0.48 percent.
The mid- and small-cap shares underperformed their larger peers as the S&P BSE MidCap index fell 0.8 percent and the S&P BSE SmallCap index declined 0.65 percent.
PNB Reports Loss Of Rs 13,420 Crore In March Quarter
Shares of the Delhi-based government-owned lender fell as much as 4 percent to Rs 85.70 after it reported wider than estimated loss and its asset quality detriorated in March quarter.
Key earnings highlights:
- Net loss at Rs 13,420 crore versus Bloomberg estimate of Rs 3,840 crore
- Net loss at Rs 13,420 crore versus profit of Rs 262 crore (YoY)
- Net interest income fell 17 percent to Rs 3,063.39 crore versus Rs 3,683.52 crore (YoY)
- Gross non-performing assets at 18.38 percent versus 12.11 percent (QoQ)
- Net NPAs at 11.24 percent versus 7.55 percent (QoQ)
- Provisions for bad loans at Rs 16,203 crore versus Rs 2,996.42 crore (QoQ)
Karnataka Bank Slips As Asset Quality Deteriorates
Shares of Mangalore-based private lender fell marginally by 3.8 percent to Rs 108.60 after the bank reported a profit of Rs 11 crore for the March quarter compared to a profit of Rs 138.37 crore in the same quarter last year.
Gross bad loans for the bank increased to 4.92 percent while net bad loans stood at 2.96 percent for the March quarter.
Lupin Reports Consolidated Loss Of Rs 784 Crore
Shares of the Mumbai-based drugmaker rose 1.21 percent to Rs 763 after it met estimates in March quarter.
Key Earnings Highlights [Consolidated, YoY]
- Net loss at Rs 783.5 crore versus estimate of Rs 338 crore. Reported a profit of Rs 380.2 crore same period last year
- Revenue down 5.2 percent at Rs 4,033.8 crore, estimate Rs 3,945 crore
- Ebitda down 9.3 percent at Rs 708.7 crore, estimate Rs 735 crore
- Margin at 17.6 percent versus estimate 18.6 percent
- One-time loss for impairment of assets at Rs 1,460 crore
Region Wise Revenue Break Up
- U.S: -21 percent
- India: +13 percent
- APAC: +8 percent
- EMEA: +17 percent
- LATAM: +30 percent
Willing To Offer Complete Support To JD(S): Congress
We accept the mandate of the people. We bow our heads to the verdict. We don’t have numbers to form government. The Congress has offered to support JD(S) to form government, news agency ANI tweeted quoting G. Parameshwara of Congress.
Stocks Down More Than 5% With Market Cap Of More Than Rs 2,500 Crore
DCB Bank Holds Gains After Block Deals
- DCB Bank has 20 lakh shares change hands in two blocks. Stock up 0.55 percent at Rs 190.50.
Buyers and sellers were not immediately known
Source: Bloomberg
Rupee Resumes Decline After BJP Fails to Cross Halfway Mark
Indian rupee resumed decline after Bharatiya Janata Party's lead decreased from the halfway mark.
The local unit fell as much as 0.6 percent or 40 paise to 67.92, its lowest level in nearly 16 months.
Market Check: Sensex, Nifty Slide As BJP's Lead Decreases From Halfway Mark
Indian equity benchmarks wiped out entire intraday gains after traders resorted to profit booking as BJP’s lead decreased from the halfway mark in the ongoing counting for Karnataka assembly.
As of 2:23 pm, BJP was leading on 106 seats, Congress was ahead on 73 seats and Janta Dal (Secular) was gaining on 40 seats.
The S&P BSE Sensex fell 0.04 percent to 35,541 and the NSE Nifty 50 index declined 0.2 percent to 10,785.
We can see profit booking towards end of the day as expectations were low and simple majority was welcomed strongly, market expert Ajay Bagga told BloombergQuint earlier in the day.
The mid-cap shares were underperforming their larger peers as the Nifty Mid-Cap 100 fell 0.8 percent.
The overall market breadth was negative as 1,419 shares were advancing while 1,123 were declining on the BSE.
Stocks Moving On Heavy Volumes
- Dr Lal PathLabs: The Gurugram-based clinical lab operator rose 9 percent to Rs 880. Trading volume was 41.5 times its 20-day average.
- BF Utilities: The Pune-based infrastructure construction company rose 4.85 percent to Rs 411.50. Trading volume was 13.3 times its 20-day average.
- BEML: The Bengaluru-based construction and mining machinery maker rose 5 percent to Rs 1,106. Trading volume was 12.6 times its 20-day average.
- Sanofi India: The Mumbai-based drugmaker rose 0.17 percent to Rs4m891. Trading volume was 9.9 times its 20-day average.
Tata Steel Rises After NCLT Approves Its Bid For Bhushan Steel
Shares of the Mumbai-based steel maker rose as much as 4.33 percent to Rs 636.80 after the National Company Law Tribunal approved Tata Steel's bid for debt-ridden Bhushan Steel. The tribunal also dismissed a plea filed by the employees of Bhushan Steel opposing Tata Steel's bid and imposed a fine of Rs 1 lakh.
The bench comprising NCLT President Justice M M Kumar and S K Mohapatra also dismissed the plea of engineering and construction major L&T seeking higher priority in recovery of loan and imposed a fine of Rs 1 lakh.
An emphatic win might lead the NDA to throttle back on the farmer-focused pre-election populism that has become the norm in our country over the past decade. That in turn might provide some relief to bond yields which have been rising steadily over the past 8 months. Whilst a BJP win should lend support to equity supports, at these valuations, the direction of the equity market is more likely to be driven by the incipient earnings recovery than by election results.Saurabh Mukherjea, Ambit Capital
IDBI Bank Falls After Two Independent Directors Quit
Shares of the Mumbai-based government-owned bank fell as much as 4.11 percent to Rs 60.70.
Two independent directors — Ninad Karpe and S Ravi resigned from the board of the bank days after CBI filed FIR in connection with Rs 600 crore loan given by the bank to former Aircel promoter C Sivasankaran, his son and companies controlled by him.
Market Check: Sensex, Nifty Off Day's Highs; Private Lenders Outperform
Indian equity benchmarks came off day's highs as investors booked profits at higher levels. Meanwhile, Bharatiya Janata Party looks set to form government in Karnataka.
As of 12:20 pm, BJP was leading on 112 seats, above the halfway mark, while, the ruling Congress was reduced to 71 seats in 222-member Karnataka Assembly.
The S&P BSE Sensex rose 0.62 percent or 220 points to 35,776 and the NSE Nifty 50 index was up 66 points or 0.6 percent at 10,872.
The rupee was trading 0.1 percent higher at 67.49 per dollar after falling as much as 0.4 percent.
Benchmark sovereign bonds were steady after the yield surged as much as seven basis points earlier as data Monday showed retail inflation accelerated more than economists had estimated.
We can see profit booking towards end of the day as expectations were low and simple majority was welcomed strongly, market expert Ajay Bagga told BloombergQuint.
All sector gauges compiled by National Stock Exchange were trading higher led by the Nifty Private Bank index's 0.94 percent gain.
Top Nifty Gainers:
- Tata Steel
- Bajaj Finance
- Power Grid
- Mahindra & Mahindra
- Kotak Mahindra Bank
Top Nifty Losers
- Tata Motors
- Indiabulls Housing Finance
- Sin Pharma
- ITC
- Bharti Infatel
Karnataka elections is just a trigger, the Nifty had already bottomed at 9,950 and uptrend was in place. 11,400 was always on cards for the Nifty, it’s just a question of when.Jai Bala, chief market technician, cashthechaos.com
Kaveri Seed Company Gains On Share Buyback Propsal
Shares of the Secunderabad-based hybrid seeds producer rose as much as 2.5 percent to Rs 518.
The company's board will meet on May 24 to consider a proposal to buyback equity shares of the company, Kaveri Seeds said in an exchange notification.
Karnataka Results Indicates Big Push Towards India’s Economic Development: Deven Choksey
With 24 states under its fold, BJP now has a clear advantage of implementing common / uniform economic policies as a nation. It is clearly a big push to India’s economic development when the state and the centre are ruled by people with common agenda, common thought process and policies.
Karnataka Election Results 2018: Market Reactions
Swarup Mohanty, Mirae Asset Global Investments
- Verdict has now paved the way for the government to continue in its path of governance
- It would augur well for the country’s growth prospects in the future
Nilesh Shah, Kotak Mahindra AMC
- Markets to use Karnataka outcome to forecast 2019 polls
- Markets want stable, reform-oriented government
- Earnings momentum to drive markets going ahead
Porinju Veliyath, Equity Intelligence India
- BJP win to boost market sentiment
- Modi win in 2019 important follow-up for economic reforms
Sudip Bandyopadhyay, Group Chairman, Inditrade Capital
- BJP win positive in short-medium term
- State elections don't matter in long-term
- Single party victory positive for investor sentiment
Ajay Bagga, Market Expert
- Can see profit booking towards end of the day
- Expectations were low. Simple majority welcomed strongly
- Would wait and watch for other factors like yields, global cues
Ritesh Jain, BNP Paribas Asset Management
- Need to run a tighter fiscal policy
- Need to ensure lower volatility, stable macros for investors
Is The Parag Milk Rally Here To Stay? Find Out On Hot Money
Karnataka Election Update: BJP Looks Set To Form The Government
- Bharatiya Janata Party is set to form government in Karnataka as it was leading on 113 seats while the Congress was reduced to 67 seats from its previous tally of 122 seats.
Karnataka Win Boosts Hopes For 2019, Says Porinju Veliyath
A BJP victory in Karnataka has revived hopes of Narendra Modi's return to power in 2019, said Porinju Veliyath of Equity Intelligence India.
“BJP winning Karnataka is definitely boost market sentiment. It also revives hopes of Modi coming back in 2019, which is important for the follow up of important economic reforms taken up in the recent past,” Porinju told BloombergQuint over phone.
Monnet Ispat Rebounds After CCI Approves Stake Purchase
Shares of the Delhi-based steel maker rebounded after falling as much as 4 percent to Rs 13.2.
The Competition Commission of India has approved Monnet Ispat and Energy’s stake purchase by Aion Investment-JSW group. Aion Investment will be the lead partner in the group. Their plan proposes to pay Rs 2,677 crore cash to the lenders up-front.
Fortis Healthcare Surges As Bidding War Continues
Shares of the hospital chain operator rose as much as 4.2 percent, the most in two weeks, to Rs 155.
TPG Capital-backed Manipal Healthcare Enterprises Pvt Ltd. revised its bid for Fortis Healthcare Ltd. for the third time even as the board of India’s second-largest hospital chain has backed a joint bid from the Munjal and Burman families. (Get the details of the new bid here)
Find About Manipal's Latest Offer For Fortis On Trend Spotting
Allahabad Bank Falls As RBI Announces Further Restrictions
Shares of the Kolkata-based public-sector lender fell 3.39 percent to Rs 42.70 after the Reserve Bank of India imposed further restrictions on the operations of Allahabad Bank under its Prompt Corrective Action framework, the lender disclosed in a notification to stock exchanges.
According to the notification, the bank has been directed to:
- Restrict expansion of risk weighted assets
- Reduce exposure to un-rated and high-risk advances
- Restrict creation of non-banking assets
- To restrict accessing /renewing wholesale/costly deposits/certificate of deposits
Allahabad Bank has been under the RBI’s PCA framework since January 2018. The fresh restrictions placed by RBI on the bank represent a second round of corrective measures.
Find About Latest Trends In Derivative Segment On The F&O Show
Stocks Reacting MSCI Global Standard Index Changes
Additions
- Avenue Supermarts up 4.62 percent
- InterGlobe Aviation up 2.64 percent
- Pidilite Industries up 0.94 percent
- Power Grid up 2.13 percent
Deletions
- ACC down 1.25 percent
- IDFC Bank down 0.95 percent
- Power Finance Corp down 2.64 percent
- Tata Motors DVR down 3.25 percent
- Vakrangee down down 5 percent
BJP Crosses Halfway Mark In Karnataka; Sensex, Nifty Hold Strong Gains
Indian equity markets held on to strong gains as the Bharatiya Janata Party crossed the halfway mark in Karnataka.
The S&P BSE Sensex rose 1 percent or 355 points to 35,913 and the NSE Nifty 50 index advanced 0.90 percent or 97 points to 10,903.
All sector gauges compiled by National Stock Exchange were trading higher led by the Nifty Bank index's 1.5 percent gain.
Gains were broad-based as the S&P BSE MidCap index advanced 0.4 percent and the S&P BSE SmallCap index gained 0.8 percent.
Dr Lal PathLabs Surges Post March Quarter Earnings
Shares of the Gurugram-based pathology lab operator rose as much as 11.50 percent to Rs 899.90 after it reported March quarter earnings.
Key earnings highlights:
- Revenue up 21 percent at Rs 267 crore
- Net profit up 25 percent at Rs 40 crore
- Ebitda up 28 percent at Rs 64 crore
- Margin at 24 percent versus 22.7 percent
Meanwhile, CLSA has maintained buy on the stock for target price of Rs 1,320.
CLSA in a note said:
- Kolkata lab operationalisation to keep volume growth healthy
- Competitive scenario stabilising but management expects consolidation
- Dr Lal's second half performance has been strong after some weakness in first half
Sensex, Nifty Extend Gains As BJP Leads On 100 Seats
The Indian equity benchmarks extended gains led by strong gains in banking shares as BJP was seen leading on 100 seats in Karnataka.
The S&P BSE Sensex surged 1.18 percent or 417 points to 35,973 and the NSE nifty 50 index climbed 1.09 percent or 117 points to 10,924.
Karnataka Verdict: Factors That Have Worked In BJP's Favour
BEML, BF Utilities, KIOCL Surge As BJP Leads In Karnataka
BEML, KIOCL and BF Utilities surged as early trends from elections in Karnataka showed Prime Minister Narendra Modi’s Bharatiya Janata Party leading over the main opposition.
BEML rose as much as 9.6 percent, most since March 5. There are expectations that BEML’s stake sale by the government may get quicker approval and BF Utilities may get new projects if BJP wins in Karnataka, says Soumen Chatterjee, head of research at Guiness Securities.
Shares of Karnataka-based iron ore miner KIOCL gained as much as 15 percent.
BJP Extends Lead Over Congress, Leads On 83 Seats
Indian equity benchmarks were trading on a strong note led by HDFC Bank, Reliance Industries and Larsen & Toubro after Bharatiya Janata Party extended lead over Congress in Karnataka.
The rupee also came off the 16-month low of 67.79. The local unit rose to 67.53 against the dollar.
The S&P BSE rose 0.93 percent or 330 points to 35,892 and the NSE Nifty 50 index gained 86 points or 0.8 percent at 10,892.
BJP was leading on 94 seats, Congress was ahead on 60 seats and Janata Dal Secular was ahead on 42 seats.
Bombay Dyeing Rises On Turnings Profitable In March Quarter
Shares of the Mumbai-based textile maker rose as much as 4.33 percent to Rs 301.50 after it turned profitable in March quarter.
Key earnings highlights:
- Revenue up 44 percent at Rs 758 crore
- Net profit at Rs 11 crore versus net loss of Rs 62.5 crore
- Ebitda at Rs 229.5 crore versus Rs 109.5 crore
- Margin at 30.3 percent versus 20.8 percent
Hindustan Unilever Rises To Record High On Strong Volume Growth
Shares of the Mumbai-based FMCG company rose as much as 2.64 percent to record high of Rs 1,543 after it reported 11 percent volume growth in March quarter.
Hindustan Unilever Ltd.’s profit surpassed analyst estimates in the quarter ended March on the back of double-digit growth in sales volume.
Net profit of India's largest fast-moving consumer goods manufacturer rose 14.2 percent to Rs 1,351 crore compared to the year-ago period, according to the company’s exchange filing. That’s higher than the Rs 1,333 crore estimated by analysts tracked by Bloomberg and despite an exceptional loss of Rs 64 crore during the quarter.
Market Check: BJP Takes Lead; Sensex Rises Over 200 Points
Indian equity benchmarks staged a sharp upmove after trends indicated that Bharatiya Janata Party took lead in Karnataka.
The S&P BSE Sensex rose 0.62 percent or 217 points to 35,777 and the NSE Nifty 50 index climbed 0.54 percent or 57 points to 10,863.
As of 9:30 am, BJP was leading on 58 seats, Congress was ahead on 46 seats and Janata Dal (Secular) was ahead on 35 seats.
Opening Bell
Indian equity benchmarks were trading on a subdued note as early results indicated a close fight for BJP and Congress in Karnataka.
The S&P BSE Sensex was little changed at 35,568 while the NSE Nifty 50 index slipped 0.16 percent or 16 points to 10,789.
Rupee Near 16-Month Low As Karnataka Poll Counting Begins
Rupee fell as much as 25 paise or 0.37 percent to 67.76 per U.S. dollar, its lowest level since Jan. 2017.
In yesterday's session, the domestic unit closed at 67.51.
Money Market Heads Up: Bonds Seen Extending Losses To Fifth Day
Indian bonds are expected to extend declines into a fifth day, after a government report showed consumer price inflation accelerating more than expected in April.
CPI rose 4.6 percent in April (YoY), the statistics ministry said Monday after close of market hours and that was faster than 4.4 percent forecast in a Bloomberg survey and 4.28 percent gain in March.
The yield on 7.17 percent bonds due 2028 rose 10 basis points Monday to 7.83 percent, the highest close for benchmark security since Feb. 2016. Investors will also be focusing on an election result in Karnataka. That apart Indian states will sell Rs 8,000 crore of bonds on Tuesday which will gauge investor appetite for these securities.
Meanwhile, the rupee is also expected to be under pressure with emerging markets broadly under pressure.
U.S. Yields were once again inching towards 3 percent, putting the dollar on the front foot. The rupee ended at 67.5150 on Monday, trading near its lowest since Feb 2017.
Who Is Meeting Whom, Insider Traders & More!
Who’s Meeting Whom
- DCM Shriram to meet Laburnum Capital on May 15
- MCX to meet ULJK Financial Services on May 15
Insider Trades
- Waterbase promoter Karam Chand Thapar & Bros. (Coal Sales) Ltd acquired 25,032 shares on May 10
- Bodal chemicals promoter Ankit S Patel acquired 3.14 lakh shares on May 11
- Kwality Ltd promoter Sanjay Dhingra acquired 5.96 lakh shares on May 11
Brokerage Radar: HUL And Dr. Lal Path Labs
Brokerages On HUL
CLSA
- Maintain Outperform, raise target price to Rs 1,650 from Rs 1,575
- Hindustan Unilever's 11 percent volume growth is best in class
- Management commentary is fairly positive, with a decisive pick-up in rural growth
- Rural has improved but need to wait a few more quarters to establish the trend
Credit Suisse
- Maintain Outperform, raise target price to Rs 1,675 from Rs 1,530
- Strong pick-up in volume growth trend while margins expand despite jump in ad spend
- Volume growth at 11 percent marks a significant acceleration in trend on base of 4 percent
- Management still looks to expand operating margins in FY19 despite crude driven inflation
Morgan Stanley
- Maintain Underweight, raise target price to Rs 1,260 from Rs 1,120,
- Q4 suggests worst in terms of volume growth for the industry may be over
- Estimate around 9 percent volume growth in FY19
- HUL stocks trades at 30 percent premium to last 12-year average price to earnings ratio
CLSA On Dr Lal Pathlabs
- Maintain Buy, target price at Rs 1,320
- Kolkata lab operationalisation to keep volume growth healthy
- Competitive scenario stabilising but management expects consolidation
- Dr Lal's second half performance has been strong after some weakness in first half
Earnings Reaction To Watch: Hindustan Unilever, Dr Lal Pathlabs, Polaris And More!
HUL (Q4, YoY)
- Revenue up 11 percent at Rs 9,097 crore
- Net profit up 14 percent at Rs 1,351 crore
- Ebitda up 24 percent at Rs 2,048 crore
- Margin at 22.5 percent versus 20.1 percent
Dr. Lal PathLabs (Q4, YoY)
- Revenue up 21 percent at Rs 267 crore
- Net profit up 25 percent at Rs 40 crore
- Ebitda up 28 percent at Rs 64 crore
- Margin at 24 percent versus 22.7 percent
Bombay Dyeing (Q4, YoY)
- Revenue up 44 percent at Rs 758 crore
- Net profit at Rs 11 crore versus net loss of Rs 62.5 crore
- Ebitda at Rs 229.5 crore versus Rs 109.5 crore
- Margin at 30.3 percent versus 20.8 percent
Polaris Consulting (Q4, QoQ)
- Revenue up 6 percent at Rs 721 crore
- Net profit up 25.5 percent at Rs 69 crore
- Ebit up 23 percent at Rs 97 crore
- Margin at 13.5 percent versus 11.6 percent
KEC International (Q4, YoY)
- Revenue up 29 percent at Rs 3,664 crore
- Net profit up 35 percent at Rs 196 crore
- Ebitda up 23 percent at Rs 370.5 crore
- Margin at 10.1 percent versus 10.6 percent
Balaji Amines (Q4, YoY)
- Revenue up 33 percent at Rs 257 crore
- Net profit up 83 percent at Rs 33 crore
- Ebitda up 22 percent at Rs 47 crore
- Margin at 18.3 percent versus 19.9 percent
JK Paper (Q4, YoY)
- Revenue up 8 percent at Rs 752 crore
- Net profit up 32 percent at Rs 74 crore
- Ebitda up 17 percent at Rs 167 crore
- Margin at 22.2 percent versus 20.4 percent
Honeywell Automation (Q4, YoY)
- Revenue up 8 percent at Rs 640 crore
- Net profit at Rs 58 crore versus Rs 22 crore
- Ebitda up 11 percent at Rs 80 crore
- Margin at 12.5 percent versus 12.2 percent
Cupid (Q4, YoY)
- Revenue down 4 percent at Rs 17.65 crore
- Net profit at Rs 2.7 crore versus Rs 4.9 crore
- Ebitda at Rs 3.85 crore versus Rs 7.9 crore
- Margin at 21.8 percent versus 42.9 percent
Nifty Earnings To Watch
- Lupin
Other Earnings To Watch
- Britannia Industries
- Crompton Greaves Consumer Electricals
- Dhanlaxmi Bank
- Endurance Technologies
- Karnataka Bank
- MRPL
- Punjab National Bank
- PI Industries
- Reliance Communications
- Snowman Logistics
- Syndicate Bank
F&O Check: Nifty May Series Call Open Interest Up 3%
- Nifty May Futures closed trading at 10,814.7 with premium of 8 points versus 13.6 points
- All series: Nifty open interest down 2 percent
- India VIX ended at 14.2, up 2 percent
- Max open interest for May series at 11,000 (open interest at 61.4 lakh, up 3 percent)
- Max open interest for May series at 10,500 (open interest at 66.7 lakh, up 6 percent)
Bulk Deals
Mphasis
- First State Asian Equity Plus Fund bought 24.39 lakh shares (1.3 percent) at Rs 960 each
- Nomura Funds Ireland plc. India Equity Fund bought 11.20 lakh shares (0.6 percent) at Rs 961.1 each
- Oppenheimer International Small Company Fund bought 28.11 lakh shares (1.5 percent) at Rs 960 each
- Nomura India Stock Mother Fund bought 15.20 lakh shares (0.8 percent) at Rs 961.1 each
- Promoter Marble II Pte Ltd sold 1.54crore shares (8 percent) at Rs 960.09 each
Stocks To Watch: Fortis, Allahabad Bank, JK Paper And More!
- Manipal-TPG revises offer for Fortis Healthcare to Rs 180 per share
- RBI imposes further restrictions under PCA on Allahabad Bank
- JK Paper approves setting up additional capacity upto 2 lakh tonnes per annum of packaging board, pulping facilities up to 1.6 lakh tonne per annum, and utilities in Gujarat for Rs 1,450 crore
- Kaveri Seeds to consider share buyback on May 24
- Adlabs Entertainment to consider issue of securities to QIB on May 17
- Shalimar paints to consider rights issue on May 23
- Delhi High Court agrees to hear plea filed by Daiichi and a strategic investor to stop Fortis sale
MSCI Global Standard Index Changes:
Additions
- Avenue Supermarts
- InterGlobe Aviation
- Pidilite Industries
- Power Grid
Deletions
- ACC
- IDFC Bank
- Power Finance Corp
- Tata Motors DVR
- Vakrangee
MSCI Small Cap India Index Changes:
Additions
- First Source
- Graphite India
- IFB Industries
- JSW Energy
- Manpasand
- V-Mart
- Venky’s
Deletions
- Advanced Enzymes
- Biocon
- Divi’s Labs
- Marksans
- Navkar
- Siti Networks
Changes effective from close of May 31
Talking Points
- Karnataka election results: 10 things to watch
- Piyush Goyal to be finance minister in Jaitley’s absence
- Smriti Irani’s I&B stint – A term punctuated with controversies
- What India’s top three mutual funds bought and sold in April
- RBI announces further restrictions on Allahabad Bank
- World’s largest ID database exposed by government errors
- Branson to price Hyperloop trip lower than a flight in India
- Why stocks don’t reflect improving economy and higher earnings
- India’s latest power industry debt debacle is Enron times 20
Good Morning
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, was little changed at 10,801 as of 7:26 a.m.
Stocks in Asia opened mixed with 10-year Treasury yields hitting the 3 percent mark again as investors assessed the outlook for trade relations and tensions in the Middle East.
All eyes will be on the outcome of the Karnataka assembly elections. At least four of five exit poll surveys showed the Bharatiya Janata Party in pole position but short of a full majority of 113 seats. (Here are 10 things to watch)
Commodities
- West Texas Intermediate crude gained 0.1 percent to $71.03 a barrel.
- Gold was steady at $1,313.93 an ounce.
- LME copper fell 0.2 percent to $6,870 a metric tonne.
Here are some key events to watch this week:
- India April trade balance, estimate $15 billion deficit, prior $13.7 billion deficit
- The Reserve Bank of Australia releases minutes for its May policy meeting.
- China plans to send Vice Premier Liu He to Washington for more trade talks.
- European Union Chief Brexit negotiator Michel Barnier briefs European affairs ministers on the status of talks with the U.K.
- China releases data including industrial production and retail sales figures Tuesday.
- U.K. Prime Minister Theresa May meets with her Brexit cabinet Tuesday to discuss plans for a post-withdrawal customs union.
- U.S. retail sales, industrial production are due this week.
- Vodafone Group, Home Depot, Credit Agricole, Tencent, Cisco Systems, Burberry Group, Walmart, Vivendi, AstraZeneca, Deere, Fujifilm, Noble Group, and Campbell Soup are among the companies releasing earnings this week.