Sensex, Nifty Clock Longest Weekly Gaining Streak In Nearly Two Months

Indian equity benchmarks extended gains for the third consecutive week, their longest weekly gaining streak since the first week of April.

The S&P BSE Sensex closed 0.71 percent higher this week to end at 39,714.20 and the NSE Nifty 50 ended at 11,922.80, up 0.66 percent. The broader market index represented by the NSE Nifty 500 Index closed 0.85 percent higher during the period.

Today, the benchmark indices ended the session with losses. The 31-share index closed 118 points or 0.3 percent lower and the 50-stock index ended 0.19 percent lower. The 500-share gauge fell 0.1 percent.

The market breadth was tilted in favour of sellers. About 1,132 stocks fell and 629 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE fell, led by the NSE Nifty PSU Bank Index’s 1.4 percent decline. On the flipside, the NSE Nifty IT Index was the only sectoral gainer, up 1.06 percent.

Key takeaways from Bharti Airtel analyst call:

• Continue to believe that pricing needs to move-up for long term viability
• Capex to be lower in FY20 as the peak was seen in last year
• 5G spectrum prices are unaffordable right now
• Expect the government to bring down the prices
• Some softness in customer addition to continue

Ten out of 11 sectors compiled by National Stock Exchange declined, led by the NSE Nifty PSU Bank Index’s 2.2 percent fall.

The Modi government today appointed Nirmala Sitharaman as Finance Minister and Minister of Corporate Affairs, according to the media statement by Rashtrapati Bhavan. She previously handled defence and commerce portfolio.

Other Cabinet Ministers:

• Raj Nath Singh gets Defence portfolio
• Amit Shah named Minister of Home Affairs
• Dharmendra Pradhan named Minister of Petroleum and Natural Gas and Minister of Steel.
• Nitin Gadkari named Minister of Road Transport and Highways and Minister of Micro, Small and Medium Enterprises
• Piyush Goyal Minister of Railways and Minister of Commerce and Industry.

Besides, Prime Minister Narendra Modi will also take charge of Ministry of Personnel, Public Grievances and Pensions, Department of Atomic Energy, Department of Space

Here’s how the portfolios have been allocated in the Modi council of ministers:

Shares of NCC fell as much as 16 percent, the most since November 2016, To Rs 97.90.

The Andhra Pradesh Government decided to cancel all the projects sanctioned prior to April 1, 2019 by the previous N Chandrababu Naidu government, according to a PTI report.

The state contributes around 30 percent to the order book of the infrastructure developer. “Out of the total order book of Rs 40,000 crore, nearly Rs 14,000 crore comes in from Andhra Pradesh,” Motilal Oswal said in a report.

“Based on the newspaper reports, the information that we have order was given to us on or before April 1 and work has not commenced are likely to be cancelled. Our estimate of this is around Rs 6,000 crore,” NCC’s YD Murthy told BloombergQuint in an interaction.

“The work not commenced is under the threat of cancellation but we have not received any communication from Andhra Pradesh government,” he added.

Trading volume was 11 times its 20-day average, Bloomberg data showed. Of the shares traded, 43 percent we at the ask price and 44 percent were at the bid.

Indian equity benchmarks witnessed a sharp fall. Sensex fell nearly 750 points from day’s high and Nifty gives up 12,000.

The NSE Nifty Bank Index erased gains and traded 0.2 percent lower, led by the decline in Yes Bank Ltd. and Bank of Baroda.

SAIL (Q4, YoY)

• Stock fell as much as 2.2 percent to Rs 49.45.
• Revenue up 8.6 percent to Rs 18,506.3 crore.
• Net profit down 42.6 percent to Rs 468.4 crore.
• Ebitda down 5.7 percent to Rs 2,214.5 crore.
• Margin at 12 percent versus 13.8 percent.
• Exceptional Gain of Rs 377.4 crore in base quarter.

Jain Irrigation (Q4, YoY)

• Stock fell as much as 10.8 percent to Rs 48.50.
• Revenue down 6 percent to Rs 2,583.1 crore.
• Net profit down 44.8 percent to Rs 53.8 crore.
• Ebitda down 32.8 percent to Rs 249 crore.
• Margin at 9.6 percent versus 13.5 percent.

IDBI Bank (Q4, YoY)

• Stock fell as much as 2.9 percent to Rs 36.90.
• Net Interest Income up 75.8 percent to Rs 1,609.3 crore.
• Net loss at Rs 4918.4 crore versus net loss of Rs 5,662.8 crore.
• Provisions at Rs 7,233.3 crore versus Rs 10,773.3 crore. (Rs 5,074.8 crore QoQ)
• GNPA at 27.47 percent versus 29.67 percent. (QoQ)
• NNPA at 10.11 percent versus 14.01 percent. (QoQ)

Ujjivan Financial Services (Q4, YoY)

• Stock rose as much as 4.8 percent to Rs 356.50.
• Net interest income up 17.8 percent to Rs 319.7 crore.
• Net profit down 2.2 percent to Rs 63.7 crore.
• Disbursement up 68 percent to Rs 3728 crore.
• GNPA at 0.9 percent versus 1.4 percent.(QoQ)
• NNPA at 0.3 percent versus 0.3 percent. (QoQ)

NLC India (Q4,YoY)

• Stock rose as much as 0.5 percent to Rs 64.95.
• Revenue down 25.2 percent to Rs 1,902.3 crore.
• Net profit down 67.4 percent to Rs 290.1 crore.
• Ebitda down 74.4 percent to Rs 224.52 crore.
• Margin at 11.8 percent versus 34.5 percent.

Munjal Showa (Q4, YoY)

• Stock fell as much as 2.5 percent to Rs 162.
• Revenue down 9.9 percent to Rs 377.3 crore.
• Net profit down 51.3 percent to Rs 13.9 crore.
• Ebitda down 55.8 percent to Rs 16.21 crore.
• Margin at 4.3 percent versus 8.7 percent.

Mirza International (Q4, YoY)

• Stock fell as much as 6.2 percent to Rs 55.
• Revenue up 27.2 percent to Rs 287 crore.
• Net profit down 59.7 percent to Rs 7.14 crore.
• Ebitda down 31.6 percent to Rs 28.3 crore.
• Margin at 9.8 percent versus 18.3 percent.

KNR Construction (Q4, YoY)

• Stock rose as much as 3.8 percent to Rs 296.
• Revenue up 14.6 percent to Rs 715.7 crore.
• Net profit up 15.5 percent to Rs 92.5 crore.
• Ebitda up 21.4 percent to Rs 144.09 crore.
• Margin at 20.1 percent versus 19 percent.

Dredging Corporation (Q4, YoY)

• Stock rose as much as 3.2 percent to Rs 3.2 percent.
• Revenue down 65.5 percent to Rs 238.5 crore.
• Net profit rose 2.5 times to Rs 111.1 crore.
• Ebitda down 14.7 percent to Rs 146.01 crore.
• Margin at 61.2 percent versus 24.7 percent.

Ahluwalia Contracts (Q4, YoY)

• Stock rose as much as 3 percent to Rs 359.75.
• Revenue up 9.1 percent to Rs 487.41 crore.
• Net profit remained flat at Rs 31 crore.
• Ebitda up 6.2 percent to Rs 56.7 crore.
• Margin at 11.6 percent versus 11.9 percent.

Panacea Biotec (Q4, YoY)

• Stock rose as much as 1.5 percent to Rs 194.90.
• Revenue down 54.3 percent to Rs 29.3 crore.
• Net profit at Rs 216.1 crore versus net loss of Rs 30.1 crore.
• Ebitda loss at Rs 111.4 crore versus Ebitda loss of Rs 4.5 crore.
• Exceptional gain of Rs 360.9 crore.
• Other expenses up 3.5 times to Rs 88.1 crore.

Suzlon Energy (Q4, YoY)

• Stock rose as much as 9.3 percent to Rs 5.90.
• Revenue down 33.5 percent to Rs 1,444.9 crore.
• Net loss at Rs 292.6 crore versus net loss of Rs 466.2 crore.
• Ebitda down 95.3 percent to Rs 14.9 crore.
• Margin at 1 percent versus 14.7 percent.
• Employee costs rise up 23 percent to Rs 249 crore.
• RM as percent of sales at 59 percent versus 46 percent.

GMM Pfaudler (Q4, YoY)

• Stock rose as much as 2 percent to Rs 1,393.
• Revenue up 37.3 percent to Rs 120.7 crore.
• Net profit up 28.6 percent to Rs 10.8 crore.
• Ebitda up 18.2 percent to Rs 16.9 crore versus.
• Margin at 14 percent versus 16.3 percent.

Sundaram Finance (Q4, YoY)

• Stock rose as much as 4.9 percent to Rs 1,655.
• Net interest income up 21.5 percent to Rs 323.2 crore.
• Net profit up 4.9 times to Rs 674.8 crore.

Simplex Infrastructures (Q4, YoY)

• Stock rose as much as 2.2 percent to Rs 163.65.
• Revenue down 4.5 percent to Rs 1,575 crore.
• Ebitda up 32 percent to Rs 183 crore.
• Margin at 11.6 percent versus 8.4 percent.
• Net profit up 14.5 percent to Rs 33.6 crore.
• Lower material cost and lower sub-contractor cost aided numbers.

Cox & Kings (Q4, YoY)

• Stock fell as much as 4.7 percent to Rs 13.05.
• Revenue up 6.4 percent to Rs 1,256 crore.
• Ebitda up 68 percent to Rs 183 crore.
• Margin at 14.5 percent versus 9.2 percent.
• Net profit at Rs 823.6 crore versus net loss of Rs 46.1 crore.
• Exceptional gain of Rs 1,341 crore on profit on sale of education business.

Bharat Dynamics (Q4, YoY)

• Stock rose as much as 4.4 percent to Rs 336.90.
• Revenue down 56.6 percent to Rs 877 crore.
• Net profit down 63.1 percent to Rs 124.1 crore.
• Ebitda down 68.8 percent to Rs 120.3 crore.
• Margin at 13.7 percent versus 19.1 percent.

Entertainment Network (Q4, YoY)

• Stock rose as much as 5.2 percent to Rs 496.70.
• Revenue up 10.3 percent to Rs 175.8 crore.
• Net profit up 6.3 percent to Rs 10.2 crore.
• Ebitda up 21.8 percent to Rs 43.1 crore.
• Margin at 24.5 percent versus 22.2 percent.
• Production Expenses up 20 percent to Rs 60.2 crore.

PC Jeweller (Q4, YoY)

• Stock fell as much as 11.8 percent to Rs 76.20.
• Revenue up 4.2 percent to Rs 2,191.5 crore.
• Net loss to Rs 376.8 crore versus Net profit of Rs 118.3 crore
• Ebitda loss of Rs 452.1 crore versus Ebitda profit to Rs 215.1 crore
• Inventory Loss of Rs 457.2 crore in Current Quarter

NALCO (Q4, YoY)

• Stock rose as much as 1.3 percent to Rs 55.55.
• Revenue down 3.4 percent to Rs 2,766.2 crore.
• Net profit down 9.1 percent to Rs 233.6 crore.
• Ebitda up 5.7 percent to Rs 517.5 crore.
• Margin at 18.7 percent versus 17.1 percent
• Exceptional Loss of Rs 91 crore in current quarter
• Low power expenses and employee costs aid in margin expansion.

Infibeam Avenues (Q4, YoY)

• Stock fell as much as 7.5 percent to Rs 51.80.
• Revenue up 24.9 percent to Rs 299.2 crore.
• Net profit up 3.4 times to Rs 75.7 crore.
• Ebitda up 60.1 percent to Rs 62.6 crore.
• Margin at 20.9 percent versus 16.3 percent.
• Exceptional gain of Rs 48.3 crore due to profit on sale of arm.

Jindal Poly Films (Q4, YoY)

• Stock rose as much as 2.9 percent to Rs 263.40.
• Revenue up 21.8 percent to Rs 950.6 crore.
• Net loss to Rs 441.5 crore versus net loss of Rs 71.3 crore
• Ebitda up 51.8 percent to Rs 135.1 crore versus Rs 89 crore
• Margin at 14.2 percent versus 11.4 percent
• Exceptional Loss of Rs 482.5 crore in Current Quarter due fair valuation of losses in its holding co Jindal India Thermal Plant and deferred tax adjustment
• Re-appoints Gaurang Desai as CEO with effect from May 30

Sadbhav Engineering (Q4, YoY)

• Stock fell as much as 4.5 percent to Rs 254.90.
• Revenue down 7.5 percent to Rs 1,021.7 crore.
• Net profit down 58.5 percent to Rs 28.9 crore.
• Ebitda up 2.1 percent to Rs 126.7 crore.
• Margin at 12.4 percent versus 11.2 percent.
• Deferred tax adjustment of Rs 16.2 crore in the base quarter.
• Tax expenses doubles to Rs 81.6 crore Resulting Loss

Omax Autos (Q4, YoY)

• Stock rose as much as 1.5 percent to Rs 68.95.
• Revenue down 47.5 percent to Rs 178.2 crore.
• Net loss to Rs 0.2 crore versus net profit of Rs 13.2 crore.
• Ebitda down 53.6 percent to Rs 8.9crore versus Rs 19.2 crore.
• Margin at 5 percent versus 5.7 percent.

Deepak Fertilizer & Petrochem (Q4, YoY)

• Stock fell as much as 3.3 percent to Rs 145.35.
• Revenue down 59.5 percent to Rs 455.1 crore.
• Net loss of Rs 10.4 crore versus net profit of Rs 54.1 crore.
• Ebitda down 82.5 percent to Rs 6.3 crore.
• Margin at 1.4 percent versus 3.2 percent.

MTNL (Q4, QoQ)

• Stock rose as much as 2.1 percent to Rs 9.90.
• Revenue up 4.3 percent to Rs 536.8 crore .
• Net loss of Rs 755.5 crore versus net loss of Rs 832.3 crore
• Ebitda loss of Rs 216.2 crore versus Ebidta loss of Rs 330.2 crore

Hinduja Global Solutions (Q4, YoY)

• Stock rose as much as 1.9 percent to Rs 652.
• Revenue up 28 percent to Rs 1,284.6 crore.
• Net profit up 6.2 percent to Rs 54.6 crore.
• Ebitda up 43.2 percent to Rs 148.8 crore.
• Margin at 11.6 percent versus 10.3 percent.

NLC (Q4, YoY)

• Stock fell as much as 7 percent to Rs 64.20.
• Revenue down 0.8 percent to Rs 270.5 crore.
• Net profit up 2.8 times to Rs 26.4 crore.
• Ebitda up 56.8 percent to Rs 55.2 crore.
• Margin at 20.4 percent versus 12.9 percent.
• Reduction in Power & Fuel Expenses aided in margin expansion.

Nifty’s 12,000 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the weekly contract, which is set to expire on June 6 jumped 35.48 percent to Rs 85.35. Over 2.1 lakh shares were added to the open interest which stood at over 14.82 lakh shares.

Shares of ONGC pared opening losses and rose as much as 2.7 percent to Rs 173.95.

The company’s quarterly profit fell the most in 13 quarters, missing estimates, due to lower oil prices and higher costs.

Key Earnings Highlights (Q4, QoQ)

• Revenue down 3.4 percent to Rs 26,758 crore.
• Net profit down 51 percent to Rs 4,044.6 crore.
• Ebitda down 25.3 percent to Rs 12,371 crore.
• Margin at 46.2 percent versus 59.8 percent.
• Net realisation at $61.29/bbl versus $66.38/bbl.

Shares of the cash-strapped airline declined as much as 2.9 percent to Rs 146.65.

The company said it is not in a position to consider and approve March quarter results on account of ongoing bidding process undertaken by lenders and resignation of multiple board members, according to its exchange filing.

The stock fell 65 percent in the past 12 months compared to a 14 percent gain in the Sensex.

Shares of the oil marketing companies rallied after the Brent crude fell for the third consecutive trading session and declined 1.3 percent to $66 per barrel.

Shares of Coal India rose as much as 3.9 percent to Rs 151.95, its highest level in over six months.

The company’s quarterly profit in the three months ended March beat estimates on higher margin and lower employee benefit costs. (Read the full story here)

Key Earnings Highlights (Q4, YoY)

• Revenue up 7.5 percent to Rs 28,546.26 crore.
• Net profit at Rs 6,024.16 crore versus Rs 1,302.51 crore.
• Reported Ebitda at Rs 8,212.2 crore versus Rs 193.34 crore.
• Reported Margin at 28.7 percent versus 0.7 percent.

Indian equity benchmarks opened higher in today’s trade.

The S&P BSE Sensex rose as much as 0.52 percent to 40,038 and the NSE Nifty rose as much as 0.5 percent to trade above 12,000. The broader market index represented by the NSE Nifty 500 Index rose 0.45 percent.

The market breadth was tilted in favour of buyers. About 954 stocks advanced and 494 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Metal Index’s 0.95 percent gain. On the flipside, the NSE Nifty Realty Index was the only sectoral loser, down 0.11 percent.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.18 percent to 69.74 against the greenback.

On Coal India

Edelweiss

• Maintained ‘Hold’; hiked price target to Rs 263 from Rs 243.
• Record Ebitda riding robust FSA realisation.
• Volume ramp up at key subsidiaries encouraging.
• Expect e-auction realization to come off resulting in muted earnings growth.

CLSA

• Maintained ‘Buy’; hiked price target to Rs 290 from Rs 275.
• Decent March quarter results.
• Volume growth was patchy but some improvement in recent months.
• Muted earnings outlook but reasonable valuation and a high dividend yield.

Citi

• Maintained ‘Buy’; hiked price target to Rs 320 from Rs 300.
• March quarter was in line; E-Auction prices resilient, Volumes muted.
• Believe valuations discount uncertainty on likely volume trends.
• Coal India offers an attractive dividend yield.

On Glenmark Pharma

Macquarie

• Maintained ‘Neutral’; cut price target to Rs 600 from Rs 620.
• Margin expansion and debt reduction hinge largely on U.S. recovery.
• Performing well in India, Europe and Rest of World.
• Cut EPS estimates for the current and the next financial year by 12 percent and 9 percent respectively on lower margins and higher interest cost

CLSA

• Downgraded to ‘Sell’ from ‘Buy’; cut price target to Rs 500 from Rs 740.
• March quarter results were significantly below estimate.
• 2019-20 revenue guidance was weaker than expected.
• High investment phase to keep earnings subdued.

Macquarie on Hero Moto

• Maintained ‘Outperform’ with a price target of Rs 3,000.
• Strong growth prospects over mid to long term.
• Confident of maintaining dominance in motorcycle.
• Targeting enhanced presence in scooters and premium motorcyles.

CLSA on ONGC

• Maintained ‘Buy’; hiked price target to Rs 285 from Rs 240.
• Slew of one-offs cause a big miss in March quarter.
• Subsidy exemption confirmation.
• Stock at compelling valuations and higher dividend yield.

CLSA on IPCA

• Maintained ‘Sell’; hiked price target to Rs 780 from Rs 730.
• Operating leverage benefit drives Ebitda growth.
• Revenue guidance for the current financial year is in line but margin guidance higher than estimate.
• Valuation not factoring-in slower EPS growth ahead.

Nomura on Alkem Lab

• Upgraded to ‘Buy’ from ‘Neutral’; hiked price target to Rs 2,230 from Rs 1,965.
• March quarter results were below estimates.
• Management commentary suggests improved outlook.
• Hike EPS estimates on the back of lower material costs and lower tax rate.

Nomura on Ujjivan Financial

• Maintained ‘Reduce’ with a price target of Rs 315.
• Stable March quarter, strong growth; opex recovery lags.
• Stable margins but pre-provisioning operating profit miss on higher opex.
• Asset quality performance steady.

Macquarie on Jagran Prakashan

• Maintained ‘Outperform’; cut price target to Rs 146 from Rs 150.
• Ad growth aided by higher government spend ahead of election.
• Expect recovery in margins aided by lower newsprint cost.
• Cut EPS estimates for the current and the next financial year on lower ad growth and delayed RM cost benefit.

F&O Cues

• Nifty June futures at 11946, premium of 32 points.
• Nifty Bank June futures at 31600, premium of 63 points
• Nifty rollovers at 70.4 percent, Nifty Bank rollovers at 82 percent.
• Nifty put-call ratio at 1.3 versus 1.15.

• DCM record date for demerger.
• IIFL Holdings record date for spinoff.
• Navkar Corporation, Bajaj Healthcare to move into short term ASM Framework.
• Tata Teleservices (Maharashtra) price band revised to 10 percent.

• Just Dial: Emerging Markets Sudan Free Equity Index Fund acquired 3.55 lakh or 0.55 percent equity shares at Rs 716.96 each.
• Ducon Infratech: Nomura Singapore acquired 6 lakh shares or 0.57 percent equity at Rs 16.5 each.

Ramco Systems

• Reliance MF acquired 6 lakh shares or 1.96 percent equity at Rs 208.25 each.
• Goldman Sachs India Fund sold 8.1 lakh shares or 2.65 percent equity at Rs 208.2 each.

Essar Shipping

• Citoc Investment acquired 50 lakh equity or 2.42 percent equity at Rs 10.15 each.
• Aquarius India Opportunities Fund sold 15.5 lakh shares or 0.75 percent equity at Rs 10.05 each.
• Indiaman Fund Mauritius sold 13 lakh or 0.63 percent equity at Rs 10.05 each.

• Jet Airways said it’s not in position to approve its financial results. This is in view of on-going bidding process undertaken by the domestic lenders for management change and resignation by members of board of directors also to be blamed for the said action.
• Bharti Airtel: (Q4FY19 ARPU increased 18.3 percent QoQ) to Rs 123 – the biggest jump since its listing. Company says that India customer base declined by only 16 lakh to 28.26 crore.
• Sonata Software: Prasanna Oke resigned from CFO’s post with effect from June 30.
• Ujjivan Financial Services: Deepak Khaitan resigned from the post of CFO with effect Aug. 2 and Barun Agarwal has been appointed in his place. Statutory Auditors Price Waterhouse CA LLP resign as company is desirous of having same network of firms as auditors for the company and its arm Ujjivan Small Finance Bank.
• Shemaroo clarified that neither the company nor the directors/employees have received any formal communication from the Police or any copy of FIR. This clarification comes from the news that FIR was registered against management and directors of Viacom 18 Media Private Limited and the company itself.
• AstraZeneca said that it has opened a new development operations centre in Bengaluru to support expansion of its clinical research footprint in India. (Press Trust of India)

• India fiscal deficit in for April-March period
• India eight infrastructure industries index for April (prior 4.7 percent)
• 5:30pm: India GDP for March quarter; Bloomberg estimates at 6.3 percent (prior 6.6 percent)
• 5:30pm: India GDP 2018-19 estimate YoY; Bloomberg estimates at 6.9 percent (prior 7.0 percent)
• 5:30pm: India GVA for March quarter; Bloomberg estimates at 6 percent (prior 6.3 percent)

• Brent crude fell for the third consecutive trading session, traded 0.93 percent lower at $66.25 a barrel.
• West Texas Intermediate crude fell 1.5 percent to $55.74 a barrel.
• Gold rose 0.2 percent to $1,290.81 an ounce.

London Metal Exchange

• Copper ended lower for the second day, down 0.53 percent.
• Zinc ended 0.79 percent higher.
• Nickel halted a two-day fall, closed 1 percent higher.
• Lead closed 1.6 percent lower.
• Aluminium ended lower for the second day, closed 0.72 percent lower.
• Tin snapped a three-day decline, closed 0.32 percent higher.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.12 percent to 11,990.50 as of 7:45 a.m.

Stocks fell in Asia along with Treasury yields after President Donald Trump threatened to place escalating import tariffs on Mexico, though the magnitude of the declines eased as trading progressed.

Japanese shares pared a retreat, while Korean shares reversed declines and stocks in Hong Kong and China fluctuated. Futures on the S&P 500 Index headed for their worst week since the global market rout in December.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell .

Source: Bloomberg