The Bombay Stock Exchange (BSE) logo is displayed in front of a bronze bull statue at the Bombay Stock Exchange. (Photographer: Dhiraj Singh/Bloomberg)

HDFC Twins Help Sensex, Nifty Post Best Single-Day Gains In A Month

Closing Bell

Indian equity benchmarks staged a strong move led by rally in HDFC Bank, HDFC, Kotak Mahindra Bank and Infosys.

The S&P BSE Sensex rose 1.2 percent or 416 points to 35,322 and the NSE Nifty 50 index climbed 1.15 percent or 122 points to 10,736.

Eleven out of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Consumer Durables index's 1 percent fall. On the other hand, the S&P BSE Bankex index was the top gainer, up 1.9 percent.

Gains in today's session were limited to large-cap shares as the S&P BSE MidCap index slipped 0.2 percent and the S&P BSE SmallCap index fell 0.6 percent.

Find Out All That You Missed During The Day In Countdown

Adani Ports Surges After Multiple Block Deals

  • Adani Ports has 54 lakh shares or 6.3 percent equity change hands in multiple blocks. Stock up 5.8 percent at Rs 395.

Buyers and sellers were not immediately known

Source: Bloomberg

IDFC Bank Holds Gains After Multiple Block Deals

  • IDFC Bank has 96 lakh shares change hands in multiple blocks. Stock up 1.25 percent at Rs 40.55.

Buyers and sellers were not immediately known

Source: Bloomberg

Nifty Bank Index Surges Over 500 Points Led By HDFC Bank

Surge in HDFC Bank shares powered a 2-percent or 528-point rally in the Nifty Bank index to 26,855.

HDFC Bank shares rallied 5 percent, the most in over a year, to a record high of Rs 2,136.

Fab Four Stocks Of The Day

Mishra Dhatu: The Hyderabad-based metal manufacturer rose 5 percent to Rs 143.25 after it reported March quarter earnings.

Key earnings highlights:

  • Revenue up 14 percent at Rs 311 crore versus Rs 272.5 crore
  • Net profit up 72 percent at Rs 77.5 crore versus Rs 45 crore
  • Ebitda up 62 percent at Rs 116 crore versus Rs 71.5 crore
  • Margin at 37.3 percent versus 26.2 percent

ONGC: The state-run oil explorer rose as much as 3.65 percent to Rs 176.25. CLSA has maintained buy on the stock for target price of Rs 240.

Orient Cement: The Hyderabad-based cement maker rose as much as 13.47 percent, the most in nearly four months, to Rs 139.45 after it terminated an agreement to acquire two Jaypee group entities.

Take Solution: The Chennai-based healthcare service provider rose 3.76 percent to record high of Rs 244.50 on the back of heavy volumes. Trading volume was 2.8 times its 20-day average.

Market Check: Sensex, Nifty Extend Gains Led By Financials

Indian equity benchmarks extended gains ahead of F&O expiry led by HDFC twins, Infosys, and Hindustan Unilever.

The S&P BSE Sensex rose 0.56 percent or 197 points to 35,099 and the NSE Nifty 50 index advanced 0.52 percent or 55 points to 10,669.

Twelve out of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Power index's 0.7 percent fall. On the flipside, the S&P BSE Finance index was the top gainer, up 0.8 percent.

The overall breadth was negative as 1,608 shares were declining while 923 were advancing on the BSE.

Click here for more stock market statistics

Expect Economy To Grow At 6.5% This Fiscal: UBS Securities

Economy is expected to grow at 6.5 percent growth this financial year, Tanvee Gupta Jain, India economist at UBS Securities told BloombergQuint in an interview.

Key highlights of the conversation:

  • Data shows consumer demand is doing well
  • Private capex will take at least 18 months to pick up
  • Getting mixed signals in rural demand
  • Imports are likely to remain elevated
  • Keeping a close watch on oil prices, expecting 25 basis points rate hike in August
  • Will closely watch RBI dividend data
  • Don't have confirmation of RBI paying additional dividend till now

Stocks Moving On Heavy Volumes

  • Nava Bharat Ventures: The Hyderabad-based power producer fell 5.5 percent to Rs 144.75. Trading volume was 54 times its 20-day average.
  • GE T&D: The Noida-based power transmission and distribution equipment maker rose 5 percent to Rs 327.15. Trading volume was 10.8 times its 20-day average.
  • Sundram Fasteners: The Chennai-based fastener equipment maker rose 5.8 percent to Rs 622. Trading volume was 11.1 times its 20-day average.
  • CG Power and Industrial Solutions: The Mumbai-based electrical power equipment maker fell 13 percent to Rs 66.50. Trading volume was 8.6 times its 20-day average.

European Stocks Little Changed As Focus Shifts To Spain

European stocks were little changed in early trading following the previous session’s rebound, as investors’ focus turns to Spain where Prime Minister Mariano Rajoy could face a no-confidence vote.

Simplex Infrastructures Falls As Auditors Fail To Conclude Audit

Shares of the Kolkata-based infrastructure construction company fell as much as 7.8 percent to Rs 506.

The company informed exchanges that auditors failed to conclude the audit of the financial statement for the year ended March 2018.

BGR Energy Systems Rallies After Profit More Than Doubles In Q4

Shares of the Chennai-based infrastructure construction company rose as much as 15.68 percent, the most in over a year, to Rs 112.85 after its profit more than doubled in March quarter.

Key earning highlights:

  • Net profit rises 2.2 times to Rs 32.37 crore versus Rs 14.23 crore (YoY)
  • Revenue up 6 percent at Rs 1,118 crore versus Rs 1,110 crore (YoY)

CRISIL Falls Most In Nearly Two Years After Block Deal

Shares of the Mumbai-based credit rating agency fell as much as 7 percent, the most June 2016, to Rs 1,735 after Sundaram MF - Select Midcap Fund sold stake in the company.

Block deal highlights:

  • McGraw-Hill Asian Holdings Singapore Pte Ltd bought 6.32 lakh shares or 0.9 percent equity at Rs 1,849.66 per share.
  • Sundaram MF - Select Midcap Fund sold 5.12 lakh shares or 0.7 percent equity at Rs 1,850 per share.

How To Invest With Raamdeo Agrawal

Market expert and veteran Raamdeo Agrawal explains how to use value migration as an effective investment process.

Key highlights of the conversation:

  • Value of the company is its enterprise value.
  • Minority shareholder has the luxury to buy any company at any price at any point in time.
  • Have seen value migration in broking business model.
  • Identify new entrants in the business with differentiated model.
  • Value migration is happening from PSU Banks to private sector banks.
  • Technology has always been a disruptor to cause value migration.
  • Brokerage business has seen from high brokerage firms to zero brokerage models.
  • Change in auditor attitude is positive for the industry.
  • Several responsibilities lie with the auditors doing audit on companies.
  • Lot of value migration has occurred in scooter space.
  • Believe value migration will happen from two wheelers to four wheelers.

Shankara Building Products Pares Losses, Recovers 12% From Intraday Low

Shares of the Bangalore-based home improvement and building products maker pared losses and recovered 12 percent from intraday low.

Shankara Building Products shares fell as much as 20 percent earlier in the day and were currently down 8 percent.

Dilip Buildcon Slumps 26% In Two Sessions

Shares of the Bhopal-based road construction company fell for second day in a row falling 26 percent in the last two sessions to Rs 782.45.

The stock came under selling pressure despite the company’s clarification yesterday, regarding rumours that its statutory auditors’ resignation are false and baseless.

F&O Check: Nifty 10,600 Put Most Active On NSE Ahead Of Expiry

Nifty 10,600 strike price put option was among the most active option contracts on the National Stock Exchange ahead of May derivative expiry.

Premium on the contract fell 79 percent to Rs 6.05. Over 24 lakh shares were added to the open interest which stood at 55.79 lakh shares.

Click here to see the complete options chain

Find Out Top Bets To Take On Expiry Day On The F&O Show

ONGC Gains As Brokerages Maintain Buy After March Quarter Earnings

Shares of the state-run oil explorer rose as much as 3.2 percent to Rs 179.60 after it reported March quarter earnings post market hours yesterday.

Key earnings highlights:

  • Revenue up 4 percent at Rs 23,970 crore versus Rs 22,996 crore (QoQ)
  • Net profit up 18 percent at Rs 5,915 crore versus Rs 5,015 crore (QoQ)
  • Ebitda down 23 percent at Rs 8,346.5 crore versus Rs 10,867 crore (QoQ)
  • Margin at 34.8 percent versus 47.3 percent (QoQ)
  • Meanwhile brokerages have maintained their buy call on the stock.

CLSA in a note said:

  • Maintained ‘Buy’; raised price target to Rs 240 from Rs 225.
  • Ebitda and net profit miss due to higher Opex and larger exploration write-offs.
  • Subsidy risk rises but OVL and Rajasthan JV to benefit from higher crude prices.
  • Attractive risk-reward; Stock pricing Brent at $53 per barrel.

Motilal Oswal in a note said:

  • Maintained ‘Buy’ with a price target of Rs 218.
  • Ebitda below estimate led by marginally lower realization and higher opex.
  • Net profit growth led by higher other income.
  • Expect gas production to increase 10-15 percent annually.
  • Rising crude oil price may result in subsidy sharing.

Reliance Communications Surges On Settlement Of Payment Dispute

Shares of the Anil Ambani-led telecom operator rose as much as 20 percent to Rs 21 after it settled payment dispute with Ericsson.

Reliance Communications will now proceed with a planned asset sale to Reliance Jio Infocomm.

Orient Cement Surges On Scrapping Deal To Acquire Two Jaypee Units

Shares of the Hyderabad-based cement maker rose as much as 13.47 percent, the most in nearly four months, to Rs 139.45.

Orient Cement has terminated the agreement to acquire two entities, Bhilai Jaypee Cement and Nigrie Cement Grinding Unit, from Jaypee group firms for a total consideration of Rs 1,946 crore.

M&M Expects 8-10% Tractor Sales Growth For Next 3 Years

Household incomes in rural markets have been increasing and 8-10 percent tractor sales growth for next 3 years is expected, VS Parthasarathy, group CFO and group CIO at Mahindra & Mahindra, said in an interview to BloombergQuint.

Key highlights of the conversation:

  • Rural demand at ground level can no longer be termed as green shoots as demand is sustainable.
  • Rural market showing sustainable consumption trends.
  • Normal monsoon augurs well for domestic demand for tractors.
  • Product prices will depend on value addition.
  • See huge growth potential in commercial vehicles segment.
  • Oil price at current levels not concerning but on our watch list.
  • Liquidity crunch, banking issue could impact tier 2 and tier 3 vendors.
  • Export market were subdued in 2017-18 mainly due to geopolitical issues.

HDFC Bank Rises After ADRs Surge 9% Overnight

Shares of the country's largest private sector lender rose as much as 4.48 percent to record high of Rs 2,126 following sharp surge in HDFC Bank ADR shares overnight.

HDFC Bank shares will be opened for FII buying starting tomorrow. Macquarie estimates that buying by foreign investors in HDFC Bank shares could be in excess of $1 billion.

ICICI Bank Falls As Bank To Probe Complaint Against CEO Kochhar

Shares of the country's second largest private sector lender by assets fell as much as 1.68 percent to Rs 280.10.

ICICI Bank aftermarket hours yesterday said it will conduct an independent enquiry into whistleblower’s complaint about alleged impropriety by its Managing Director and Chief Executive Officer Chanda Kochhar.

Atlanta Slumps After Price Waterhouse Resigns As Auditor

Shares of the Mumbai-based construction company were locked in a 20 percent lower circuit after Price Waterhouse Chartered Accountants stepped down as auditor of the company days before annual financial accounts were closed.

Price Waterhouse Chartered Accountants resigned as auditor saying Atlanta did not share “significant information” and “significant observations by tax authorities” as requested.

Opening Bell

Indian equity benchmarks moved higher led by gains in HDFC twins after HDFC Bank ADR shares surged 8.6 percent overnight.

The S&P BSE Sensex rose 0.4 percent or 143 points to 35,051 and the NSE Nifty 50 index advanced 0.3 percent or 36 points to 10,648.

Nine out of 11 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Metal index's 0.8 percent gain. On the other hand, the Nifty PSU Bank index was the top loser, down 0.2 percent.

The broader markets were in line with their larger peers as the S&P BSE MidCap and S&P BSE SmallCap indexes rose 0.3 percent each.

Rupee Opens Higher Against U.S. Dollar

  • Rupee opened higher at 67.40 per dollar against yesterday's close of 67.44.

Money Market Heads Up: Rupee Seen Trading In Range Of 67.30-67.80

All eyes will be on the growth data for the January-March quarter which is due after market hours today. As per a Bloomberg survey, growth in the fourth quarter was 7.4 percent.

While this makes India one of the fastest growing major economies, the sustainability of the trend is in question in light of the currency depreciation and the risk of higher inflation.

Sovereign bonds may see some relief after the global risk sentiment improved. Yield on the 10-year benchmark bond may ease a bit and trade in a range of 7.72-7.80 percent.

In the currency market, implied opening from forwards suggest the pair could open at 67.54. We could see the dollar consolidate at the end of the month, but any fresh bout of risk aversion could weaken the rupee again. Traders see a range of 67.30-67.80 in the day.

Brokerage Radar: Motilal Oswal, CLSA Maintain Buy On ONGC

On ONGC

Motilal Oswal

  • Maintained ‘Buy’ with a price target of Rs 218.
  • Ebitda below estimate led by marginally lower realization and higher opex.
  • Net profit growth led by higher other income.
  • Expect gas production to increase 10-15 percent annually.
  • Rising crude oil price may result in subsidy sharing.

CLSA

  • Maintained ‘Buy’; raised price target to Rs 240 from Rs 225.
  • Ebitda and net profit miss due to higher Opex and larger exploration write-offs.
  • Subsidy risk rises but OVL and Rajasthan JV to benefit from higher crude prices.
  • Attractive risk-reward; Stock pricing Brent at $53 per barrel.

CLSA on Torrent Pharma

  • Maintained ‘Buy’; cut price target to Rs 1,610 from Rs 1,650.
  • March quarter’s Ebitda was impacted by one-time expense related to Unichem acquisition.
  • U.S. sales have bottomed and Europe remains strong.
  • Expect Indian growth to pick-up in 2018-19.
  • Remain positive due to strengthening of Indian franchise.

Economic Data To Watch

  • India fiscal deficit in rupees for April-March period
  • India FY18 GDP growth expected at 6.7 percent versus 6.6 percent
  • GDP for quarter ended March expected at 7.4 percent versus 7.2 percent
  • GVA for quarter ended March expected at 7.2 percent versus 6.7 percent

Fuel Prices Cut For Second Day In A Row

BQ Heads Up: Insider Trades And Who's Meeting Whom

Insider Trades

  • Bombay Rayon promoter AAA United BV sold 1.22 lakh shares from May 9 – 24.
  • Laurus Labs promoters bought 2.26 lakh shares on May 24.

(As reported on May 30)

Who's Meeting Whom

  • M&M Financial to meet Tantallon India Fund and Temasek Holdings Advisors on May 31 and June 1.
  • Eicher Motors to meet Catamaran, Rondure Global and Grandeur Peak Global from May 31 – June 1.
  • CRISIL to meet Sundaram MF on May 31.

Bulk Deals, Trading Tweaks And F&O Cues To Watch

Bulk Deals

CRISIL

  • McGraw-Hill Asian Holdings Singapore Pte Ltd bought 6.32 lakh shares or 0.9 percent equity at Rs 1,849.66 per share.
  • Sundaram MF - Select Midcap Fund sold 5.12 lakh shares or 0.7 percent equity at Rs 1,850 per share.

Sirca Paints

  • Elara India Opportunities Fund sold 3.76 lakh shares at Rs 164.12 per share.

Trading Tweaks

  • TCS ex-date for 1:1 bonus. F&O lot size revised to 500
  • Hatsun Agro Product trades ex-rights basis
  • Ruchi Soya circuit filter revised to 5 percent

F&O Cues

  • Nifty May futures closed at 10,604.5, discount of 9.8 points versus 17.4 points.
  • Nifty June Futures closed flat at 10,614 to spot Nifty versus discount of 5 points.
  • Nifty rollover at 42.4 percent, Bank Nifty Rollover at 52.6 percent.
  • All series- Nifty open interest (OI) up 4 percent and Bank Nifty OI up 5 percent.
  • India VIX ended 13.4, up 2.6 percent.
  • Max OI for May series call at 10,800 strike price call option, OI at 51 lakh, down 9 percent.
  • Max OI for May series put at 10,500 strike price put option, OI at 57.9 lakh, up 16 percent.

Earnings Reaction To Watch: ONGC, Berger Paints, Apollo Hospitals And Others

Berger Paints (Q4 YoY)

  • Revenue up 17 percent at Rs 1,298 crore versus Rs 1,112.5 crore
  • Net profit flat at Rs 106 crore versus Rs 105.5 crore
  • Ebitda up 24 percent at Rs 199.5 crore versus Rs 160.5 crore
  • Margin at 15.4 percent versus 14.4 percent

Apollo Hospitals (Q4 YoY)

  • Revenue up 15 percent at Rs 1,863 crore versus Rs 1,624.5 crore
  • Net profit up 25 percent at Rs 60 crore versus Rs 48 crore
  • Ebitda up 22 percent at Rs 213 crore versus Rs 170.5 crore
  • Margin at 11.4 percent versus 10.5 percent

Punj Lloyd (Q4 YoY)

  • Revenue up 19 percent at Rs 1,060 crore versus Rs 890 crore
  • Net profit at Rs 944 crore versus loss of Rs 182 crore
  • Deferred tax credit of Rs 1,199 crore in current quarter
  • Ebitda loss of Rs 14 crore versus Ebitda loss of Rs 109.5 crore

Mishra Dhatu (Q4 YoY)

  • Revenue up 14 percent at Rs 311 crore versus Rs 272.5 crore
  • Net profit up 72 percent at Rs 77.5 crore versus Rs 45 crore
  • Ebitda up 62 percent at Rs 116 crore versus Rs 71.5 crore
  • Margin at 37.3 percent versus 26.2 percent

KNR Construction (Q4 YoY)

  • Revenue up 29.5 percent at Rs 624 crore versus Rs 482 crore
  • Net profit up 54 percent at Rs 80 crore versus Rs 52 crore
  • Ebitda up 68.5 percent at Rs 120.5 crore versus Rs 71.5 crore
  • Margin at 19.3 percent versus 14.8 percent

Apar Industries (Q4 YoY)

  • Revenue up 35 percent at Rs 1,767.5 crore versus Rs 1,306 crore
  • Net profit unchanged at Rs 40 crore
  • Finance cost up 125 percent at Rs 54 crore versus Rs 24 crore
  • Ebitda up 45 percent at Rs 126.5 crore versus Rs 87 crore
  • Margin at 7.2 percent versus 6.7 percent

Bharat Dynamics (Q4 YoY)

  • Revenue up 22 percent at Rs 2,021 crore versus Rs 1,651.5 crore
  • Net profit up four times at Rs 337 crore versus Rs 85 crore
  • Tax expense down 53 percent at Rs 60 crore versus Rs 127 crore
  • Ebitda up 121 percent at Rs 385 crore versus Rs 174 crore
  • Margin at 19.0 percent versus 10.5 percent

Torrent Pharmaceuticals (Q4 YoY)

  • Revenue up 20 percent at Rs 1,722 crore versus Rs 1,434 crore
  • Net profit up 11 percent at Rs 228 crore versus Rs 206 crore
  • Tax credit of Rs 148 crore in current quarter
  • Ebitda up 23 percent at Rs 364 crore versus Rs 295 crore
  • Margin at 21.1 percent versus 20.6 percent

Housing & Urban Development Corp (HUDCO) (Q4 YoY)

  • Net Interest Income up 29 percent at Rs 527 crore versus Rs 408 crore
  • Net profit down 29 percent at Rs 222.5 crore versus Rs 315 crore
  • Provisions up 7.25 times at Rs 116 crore versus Rs 16

CG Power and Industrial (Q4 YoY)

  • Revenue up 18 percent at Rs 1,792 crore versus Rs 1,518 crore
  • Net loss of Rs 582 crore versus net loss of Rs 444 crore
  • Exceptional loss of Rs 415 crore in current quarter
  • Loss from discontinued operations of Rs 403 crore in base quarter
  • Ebitda up 33 percent at Rs 142.5 crore versus Rs 107 crore
  • Margin at 8 percent versus 7 percent

ONGC (Q4 QoQ)

  • Revenue up 4 percent at Rs 23,970 crore versus Rs 22,996 crore
  • Net profit up 18 percent at Rs 5,915 crore versus Rs 5,015 crore
  • Ebitda down 23 percent at Rs 8,346.5 crore versus Rs 10,867 crore
  • Margin at 34.8 percent versus 47.3 percent

Also Read: Q4 Results: ONGC Profit Misses Estimates In March Quarter

V-Guard Industries (Q4 YoY)

  • Net sales up 7.9 percent at Rs 658 crore versus Rs 610 crore
  • Net Profit down 29 percent at Rs 27.6 crore versus Rs 39 crore
  • Ebitda down 34 percent at Rs 37.4 crore versus Rs 56.7 crore
  • Margin at 5.7 percent versus 9.3 percent

Infibeam Q4 QoQ

  • Revenue up 12 percent at Rs 239.5 crore versus Rs 213.5 crore
  • Net profit down 12 percent at Rs 22 crore versus Rs 25 crore
  • EBIT down 35 percent at Rs 19.5 crore versus Rs 30 crore
  • Margin at 8.1 percent versus 14.1 percent

McLeod Russel (Q4 YoY)

  • Revenue flat at Rs 378 crore versus Rs 377 crore
  • Net loss of Rs 142 crore versus net loss of Rs 108 crore
  • Ebitda loss of Rs 268 crore versus Ebitda loss of Rs 214 crore

Stocks To Watch: HDFC Bank, Infibeam, Punj Lloyd, Ultratech And More!

  • HDFC Bank ADR shares surged 8.6 percent as new FII limit monitoring system and closure of FII trading window, lift shares of HDFC Bank ADR.
  • KNR Construction wins HAM order worth Rs 1,144.5 crore
  • Infibeam approves raising up to Rs 2,000 crore
  • Punj Lloyd approves restructuring of outstanding credit facilities
  • Ultratech says Binani Cement lenders panel approves resolution plan
  • Granules India launched generic Methylergonovine tablets in partnership with Hikma
  • Jamna Auto in pact with U.K.’s Tinsley Bridge for technology and technical assistance
  • Can Fin Homes to consider fund raising proposals on June 2

All You Need To Know About ICICI Bank's Probe Against CEO

Talking Points

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India rose 0.42 percent to 10,659 as of 6:27 a.m.

Asian stocks rebounded at the open on Thursday after U.S. shares rallied with Treasury yields as investors saw the market reaction to Italy’s political turmoil as overdone. The dollar held losses and oil stabilized following gains.

Shares rose in Japan, Australia and South Korea, and futures signaled gains in Hong Kong. The S&P 500 Index rose the most in more than three weeks as U.S. 10-year yields pushed above 2.84 percent, boosting financial shares that had sold off amid fears of heightened risk Italy could leave the euro.

Bonds

  • The yield on 10-year Treasuries fell one basis point to 2.84 percent. It jumped seven basis points on Wednesday.
  • Australia’s 10-year bond yield was little changed at 2.64 percent.
  • Italy’s 10-year yield sank 25 basis points to 2.92 percent Wednesday.

Commodities

  • West Texas Intermediate crude fell 0.3 percent to $68.02 a barrel. It jumped 2.2 percent Wednesday.
  • Gold added 0.1 percent to $1,302.94 an ounce.

Here are some key events to watch this week:

  • China’s official PMIs probably held up in May, with the manufacturing index expected to come in at 51.4 and the non-manufacturing measure at 54.8, both the same as in April. Japanese and South Korean factory output numbers, also due Thursday, may show some improvement.
  • The U.S. employment report for May is due Friday. It’s the last before the June Fed meeting.
  • Automakers report May U.S. sales the same day.
  • Also Friday: some onshore Chinese stocks join MSCI Inc.’s global indexes.
  • On Saturday U.S. Secretary of Commerce Wilbur Ross will travel to Beijing for more talks with Vice Premier Liu He on topics including ZTE Corp. and trade.
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