Sensex Closes Above 40,000, Nifty At 12,088 For First Time

Indian equity benchmarks ended at record highs, led by the gains in Reliance Industries Ltd. and HDFC twins.

The S&P BSE Sensex ended 553 points or 1.39 percent higher to closed above 40,250 and the NSE Nifty 50 ended near 12,100, up 1.39 percent. The broader market index represented by the NSE Nifty 500 Index closed 1.2 percent higher.

The market breadth, however, was tilted in favour of sellers. About 892 stocks declined and 865 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Auto Index’s 1.87 percent gain. On the flipside, the NSE Nifty Media Index was the only sectoral loser, down 0.27 percent.

The U.S. drug regulator today concluded its inspection at Cadila Healthcare’s subsidiary— Nesher Pharmaceuticals at St. Louis, Missouri, U.S.A with three observations at one facility and eight observations at the other facility of Nesher Pharmaceuticals with a recommendation for ‘Voluntary Action Indicated’, according to its stock exchange filing.

“The Company is confident of addressing these observations and responding to the U.S. FDA at the earliest,” the statement added.

Hindustan Aeronautics

• Stock rose as much as 6.7 percent to Rs 758.
• Trading volume was more than 17 times its 20-day average.

Apollo Hospitals

• Stock rose as much as 10.5 percent to Rs 1,368.
• Trading volume was more than 10 times its 20-day average.

GlaxosmithKline Consumer Healthcare

• Stock rose as much as 3.5 percent to Rs 7,654.
• Trading volume was almost six times its 20-day average.

Shares of Page Industries extended gains for the second consecutive trading session and rose as much as 7.3 percent, the most since Nov. 30, 2018, to Rs 21,200.

Trading volume was more than double its 20-day average, Bloomberg data showed. Of the shres traded, 51 percent were at the ask price and 31 percent were at the bid.

The Indian rupee is trading at day’s high. The home currency appreciated as much as 0.6 percent to 69.28 against the greenback against the U.S. dollar.

Indian equity benchmarks surges to record in today’s trade. Sensex jumped over 426 points to 40.140.27 and Nifty touched 12,050.

Shares of Kwality fell as much as 8 percent to Rs 5.15 after announcing its March quarter results post Friday’s close.

Key earnings highlights (Q4, YoY)

• Revenue down 93.3 percent to Rss 113.7 crore.
• Net loss of Rs 497.2 crore versus net profit of Rs 1.1 crore.
• Ebitda loss of Rs 450.7 crore versus Ebitda profit at Rs 136.8 crore.
• Other Expenses of Rs 452.3 crore in the current quarter due to provisions for doubtful debtors and write off for assets.

Indian equity benchmarks are at day’s high. Sensex jumps over 300 points to reclaim 40,000 and Nifty traded above 12,000

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

Premium on the contract rose 71.36 percent to Rs 55.95. Over 1.8 lakh shares were removed from the open interest which stood at over 19.23 lakh shares.

TVS Motor Company Ltd. sold 3.07 lakh units last month a fall of nearly 1 percent from May 2018, the Chennai-based company said in a stock exchange filing.

Key sales highlights (YoY)

• Two-wheeler sales fell 1.3 percent to 2.94 lakh units.
• Domestic two-wheeler sales fell 3.8 percent to 2.36 lakh units.
• Scooter sales rose 2 percent to 98,202 units.
• Motorcycle sales rose 13 percent to 1.42 lakh units.
• Three-wheeler sales rose 9 percent to 12,780 units.
• Two-wheeler exports rose 11 percent to 57,519 units.
• Overall exports rose 11 percent to 69,319 units.

Shares of TVS Motor rose as much as 4.2 percent to Rs 499.50 after the announcement.

About 15.3 lakh shares of Dish TV changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Eight out of 11 sectors on National Stock Exchange advanced, led by the NSE Nifty Auto Index’s 1.3 percent gain. On the flipside, the NSE Nifty Media Index was the top sectoral loser, down 0.68 percent.

Indian equity benchmarks were at day’s high. Sensex rose over 250 points and Nifty traded near 12,000.

The Nikkei India Manufacturing Purchasing Managers’ Index expanded to 52.7 percent in May from 21.8 percent in April, IHS Markit said in its report. A print above 50 means expansion, while a score below that denotes contraction.

Ashok Leyland’s sales fell 4 percent to 13,172 units in May, according to its stock exchange filing.

Key Sales Highlights (YoY)

• Domestic medium and heavy commercial truck sales fell 2 percent to 7,325 units.
• Domestic medium and heavy commercial bus sales fell 12 percent to 1,310 units.
• Total domestic medium and heavy commercial vehicle sales declined 4 percent to 8,635 units.
• Domestic light commercial vehicle sales rose 34 percent to 4,143 units.
• Total domestic vehicle sales rose 6 percent to 12,778 units.

Sales Including Exports (YoY)

• Total medium and heavy commercial truck sales fell 12 percent to 7,382 units.
• Total medium and heavy commercial bus sales declined 21 percent to 1,564 units.
• Total medium and heavy commercial vehicle sales fell 14 percent to 8,946 units.
• Total light commercial vehicle sales rose 31 percent to 4,226 units.

Shares of the truck and bus maker rose as much as 1.7 percent to Rs 90.40 after the announcement.

Maruti Suzuki

• Stock swung between gains and losses to trade 0.7 percent higher at Rs 6,916
• Total Sales down 22 percent to 1.34 lakh units.

Escorts

• Stock fell as much as 2.5 percent to Rs 583.20.
• Total tractor sales down 18 percent to 6,827 units.

Eicher Motors

• Stock fell as much as 1.9 percent to Rs 19,560.
• VECV sales down 19.7 percent. Royal Enfield sales slump 17 percent.

SML Isuzu

• Stock rose as much as 5.9 percent to Rs 877.95.
• Truck and bus sales up 17.1 percent to 1,689 units.

Atul Auto

• Stock fell as much as 2.9 percent to Rs 305.05.
• Total sales down 13 percent to 3,464 units.

Hero MotoCorp

• Stock rose as much as 4.1 percent to Rs 2,790.
• Total sales fell 7.7 percent to 6.52 lakh units.

Catch all the live updates on how automakers fared in May here.

Shares of Bajaj Auto pared opening losses and rose as much as 1.5 percent to Rs 2,970 after the company announced its May sales data.

The company's total sales rose 3 percent year-on-year to 4.19 lakh vehicles last month, according to its stock exchange filing.

Key Sales Highlights (YoY)

• Domestic motorcycle sales rose 7 percent to 2.05 lakh units.
• Motorcycle exports rose 6 percent to 1.59 lakh units.
• Total motorcycle sales rose 7 percent 3.65 lakh units.
• Domestic commercial vehicles sales declined 6 percent to 30,103 units.
• Commercial vehicles’ exports fell 26 percent to 24,064 units.
• Total commercial vehicle sales fell 16 percent to 54,167 units.
• Total domestic sales rose 5 percent to 2.35 lakh units.
• Total exports rose 1 percent to 1.83 lakh units.

Shares of the oil marketing companies rallied after the Brent crude fell over 6 percent to trade at $60.55 a barrel.

Shares of Mahindra & Mahindra fell as much as 1.4 percent to Rs 638.20.

The company's promoter M&M Benefit Trust sold 1.92 crore shares or 1.54 percent equity in the company at Rs 648 each, according to the tractor maker's stock exchange filing.

Following the sale, the shareholding of the promoters and Promoter Group of the Company reduced to 18.9 percent from 20.4 percent of the total paid up equity share capital of the Company, it added.

Besides, the company’s auto sales fell 3 percent on a yearly basis to 45,421 units in May, due to subdued purchases of vehicles in the election season, according to tis stock exchange notification. Its tractor sales fell 16 percent year-on-year to 24,704 units.

Key sales highlights (YoY):

• Passenger vehicle sales fell 1 percent to 20,608 units
• Utility vehicles sales rose 1 percent to 19,524 units
• Sales of cars and vans including sales in subsidiary of Mahindra Electric Mobility Ltd. fell 24 percent to 1,084 units
• Commercial vehicle sales fell 5 percent to 17,879 units
• Medium and heavy commercial vehicle sales fell 45 percent to 637 units
• Total domestic sales fell 2 percent to 43,056 units
• Total exports fell 22 percent to 2,365 units

Tractor sales highlights (YoY)

• Domestic tractor sales fell 17 percent to 23,539 units.
• Tractor sales rose 3 percent to 1,165 units.

Indian equity benchmarks opened higher in today’s trade.

The S&P BSE Sensex rose as much as 108 points or 0.27 percent to 39,822 and the NSE Nifty 50 rose as much as 0.27 percent to 11,954.60. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.23 percent.

The market breadth was tilted in favour of buyers. About 739 stocks advanced and 605 shares declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Auto Index’s 0.79 percent fall. On the flipside, the NSE Nifty FMCG Index was the top sectoral gainer, up 0.84 percent.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.37 percent to 69.43 against the greenback.

Besides, the yield on the 10-year note fell to 6.94 percent.

F&O Cues

• Nifty June 27 Futures at 11916, premium of 6 points
• Nifty June 27 Bank futures at 31325, discount of 50 points
• India VIX up 2.9 percent to 16.06
• Max OI in Jun 27, 11500 Call – 23.3 lakh shares
• Max OI in Jun 27, 12000 Call – 14.3 lakh shares
• Nifty Put Call Ratio at 1.18 versus 1.3.

Deutsche Bank Research on Q4 Earnings

• Expect earnings for Nifty companies to increase a solid 29 percent (YoY), boosted by Financials.
• Ex-Financials, Nifty earnings are forecast to increase 14 percent (YoY).
• Nifty sectors have seen increased earnings estimates: Energy and Utilities.
• Companies with relatively higher increased estimates: Bharti Airtel, UPL, SBI, Ultratech Cement and ICICI Bank.
• Sectors that saw steeper cuts in earnings estimates – Consumer Discretionary, Materials, and Communication Services.
• Companies with higher cuts - Yes Bank, IndusInd, Hero Moto, Kotak Mahindra, and Eicher Motors.

Citi on Apollo Hospitals

• Maintained ‘Buy’; hiked price target to Rs 1,800 from Rs 1,640.
• Ended FY19 on a stronger note with healthy revenue growth and margin gains.
• Good traction in drag businesses.
• Pledge reduction is next to watch.

Citi on NBCC (India)

• Maintained ‘Buy’; hiked price target to Rs 77 from Rs 68.
• Weak Q4; revenue growth was sluggish.
• NBCC continues to benefit from its preferred status for government orders.
• Start of work on redevelopment projects is key.

Jefferies on SAIL

• Maintained ‘Underperform’ with a price target of Rs 40.
• Q4 result miss; volume was inline, but margin disappointed.
• With domestic steel prices softening, expect margins to decline further.
• Strong Q4 volume growth is encouraging, but volume ramp up will continue to lag guidance.
• De-leveraging would be slow, and net debt/EBITDA would stay over 4.5 times over FY20-21.

HSBC on Finolex Industries

• Maintained ‘Buy’; cut price target to Rs 680 from Rs 750.
• Weak Q4 earnings on lower PVC spreads and strong base.
• H1FY20 earnings from PVC resins to remain muted on higher feedstock.
• Growth in pipes business to drive earnings.

Citi on India Equity Strategy

• Expect banks and auto turnaround in 2019-20.
• Valuations are expensive amidst a macroeconomic slowdown/earnings downgrade risks.
• India may continue to remain relative preference for FIIs in EM in near term.
• Focus on policy measures aimed at rural and NBFCs.
• Consumption indicators would be closely watched for signs of pick-up/improvement post-elections.

Credit Suisse on India Auto Sales

• May-2019 volumes: Weakness persists, retail data indicating bottoming out of demand.
• Maruti's sales declined on a high base but also indicating continued inventory correction.
• Hero MotoCorp's volumes were better than expectation while RE continued its weak trend.
• PV Inventory levels appear to be normalising.
• Increasing competitive intensity in PVs showing up in discounts.
• New launches probably helping Hero.
• State Vaahan data shows pockets of improvement.

CLSA on Sadbhav Infra

• Maintained ‘Buy’; cut price target to Rs 320 from Rs 340.
• Lofty backlog starts execution but slowly in a tough environment.
• State Capex helps orders and big execution ramp-up ahead.
• Cut FY19-21 EPS estimates given delay in financing and land acquisitions by NHAI, pushing-out execution by six months and a higher tax rate.

CLSA on NCC

• Maintained ‘Buy’; Cut price target to Rs 138 from Rs 145.
• Buy as the correction is excessive due to stringent move by new Andhra Pradesh government.
• NCC has Rs 610 crore in orders from Andhra Pradesh and had not yet started execution.
• Factoring-in a worst case scenario, still see a lofty and more balanced order backlog.

CLSA on Bharti Airtel

• Maintained ‘Buy’; hiked price target to Rs 425 from Rs 376.
• Indian mobile surprises positively on subscribers, usage, ARPU and margin.
• Bharti continues to see strong traction in 4G subscriber additions.
• Bharti’s upcoming African IPO will lower Bharti’s leverage further.

CLSA on J.Kumar Infra

• Maintained ‘Buy’ with a price target of Rs 315.
• Fiscal Review: Mumbai metro lines drive execution.
• Expect EPS CAGR of 18 percent over FY19-22.
• Inexpensive play on high-growth urbanisation capex.

CLSA on Jagran Prakashan

• Maintained ‘Buy’; hiked price target to Rs 145 from Rs 135.
• See double-digit print ad revenue growth & newsprint cost relief ahead.
• Management expects fall in newsprint prices to boost margins from July.
• Hike ad revenue estimates by 3 percent and cut raw-material cost estimates by 7-10 percent for FY20-21.

HSBC on Apollo Hospitals

• Maintained ‘Buy’; hiked price target to Rs 1,525 from Rs 1,500.
• Good show continued on scale-up of new hospitals and volume growth in mature hospitals.
• Apollo continues to focus on improving case mix through advance medical offerings.
• Losses continue to reduce, turnaround expected in the second quarter of the current financial year.

HDFC Securities on Gujarat Gas

• Initiated ‘Buy’ with a price target of Rs 222.
• Company well positioned given low LNG prices and development of CGD ecosystem across Gujarat.
• Expect robust volume growth of 11 percent CAGR over FY19-24 eatimates led by industrials and CNG segments.
• Expect company to reach net cash position on the back of rise in volumes and expansion in new areas.

Macquarie on India Financials

• Vehicle loan growth has been weak due to structural and cyclical factors.
• Top players in life and general insurance space are losing market share to newer players.
• Stay away from NBFCs and PSU banks, stick with private sector banks and life insurance.

On India GDP

Nomura

• Slowdown reflects a combination of global weakness and continued drags from domestic economy.
• Expect slowdown to continue in the second quarter; slow recovery to start from the third quarter.
• Expect RBI to deliver its third rate cut of 25 basis points while retaining a ‘neutral’ stance.
• Expect RBI to state explicitly that it will keep banking system liquidity marginally positive.

HSBC

• Weaker private sector activity dragged growth offsetting the rise in government spending.
• Slowdown was evident across agriculture, industry, investment and exports.
• Growth likely to remain weak in next quarter, before improving in the second half of this year.
• RBI is expected to cut rates by 25 basis points at the upcoming June meeting.

• Eveready Industries to move into ASM Framework
• Pricol , Tata Teleservices (Maharashtra) to move into short term ASM Framework
• UFO Movies to move out of short term ASM Framework
• Kridhan Infra price band revised to 10 percent
• Manpasand Beverages price band revised to 5 percent

Indian Terrain Fashions

• Caam Funds India acquired 4.09 lakh shares or 1.08 percent equity at Rs 111.85 each.
• Amundi Funds Equity India sold 4.09 lakh shares or 1.08 percent equity at Rs 111.85 each.

Kwality (Q4, YoY)

• Revenue down 93.3 percent to Rss 113.7 crore.
• Net loss of Rs 497.2 crore versus net profit of Rs 1.1 crore.
• Ebitda loss of Rs 450.7 crore versus Ebitda profit at Rs 136.8 crore.
• Other Expenses of Rs 452.3 crore in the current quarter due to provisions for doubtful debtors and write off for assets.

• Maruti Suzuki: Total Sales down 22 percent to 1.34 lakh units.
• M&M: Tractor sales slump 16 percent. Auto sales down 3 percent.
• Escorts: Total tractor sales down 18 percent to 6,827 units.
• Eicher Motors: VECV sales down 19.7 percent. Royal Enfield sales slump17 percent.
• SML Isuzu: Truck and bus sales up 17.1 percent to 1,689 units.
• Atul Auto: Total sales down 13 percent to 3,464 units.
• Hero MotoCorp sales fell 7.7 percent to 6.52 lakh units.

Catch all the live updates on how automakers fared in May here.

• NCLT approved resolution plan submitted by Tata Steel for acquiring the controlling stake of Bhushan Energy under IBC.
• Castrol India said that it has joined hands with 3M India to bring a range of vehicle care products for the automotive after-market. The partners will bring in a range of 3M-Castrol branded bike and car care products like shampoo, glass cleaner, cream wax, dashboard and tyre dressers. (Press Trust of India)
• Ceat signed a power purchase agreement with Greenzest, by setting up a captice solar plant in Maharashtra. Company has agreed to acquires a maximum of 26 percent stake in the company amounting to Rs 5 crore.
• Vedanta has urged Zambian Government to resolve dispute in talk and Konkola Mine has suspended operations: CEO Venkatakrishnan (Bloomberg News).
• Biocon fixed June 13 as record date for issue of bonus shares.
• Seamec: Virendra Kumar Gupta resigned from post of President and CFO, due to personal reasons.
• NTPC commissioned Unit-1 off 800 MW of Gadarwara Super Thermal Power Station.
• Dilip Buildcon said that the company has executed EPC agreement with NHAI for highway project in Maharashtra valued at Rs 480.06 crore.
• Great Eastern Shipping to buyback 32.67 lakh equity shares at a price of Rs 306 piece, a premium of 9 percent from Friday’s close.
• Aviation stocks will be in focus as Indian oil cut ATF prices for the first time in last five month. The oil marketer cut prices by 0.3 percent from the last month to Rs 66,611 per kilo litre for June 2019.
• Coal India: Production in the month of May drops 1.1 percent to 46.59 million tonne. Sales in the month of May drops 1.4 percent to 52.09 million tonne.
• NCLT has sanctioned the merger of Indus Towers and Bharti Infratel. Bharti Airtel, Bharti Infratel and Vodafone Idea will be in focus.
• MOIL: Company reduced prices of Ferro Grade, SMGR (Mn30 percent and Mn25 percent), Fines and Chemical Grades of Ore by about 7.5 percent.
• NBCC (India): Company received a total business of Rs 25 crore in May 2019.
• Future Lifestyle Fashion invested additional Rs 32.43 crore in fashion e-commerce company Koovs PLC.
• Gujarat Alkalies said that it has commissioned 7.5 MW out of the 20 MW solar power plant at Charanka on May 31.
• Srikalahasthi Pipes resumed operations at one of its plants after planned maintenance shutdown.
• Goejit Financial Services said that the company withdrew the application with SEBI for registration of mutual fund business.

India became the latest country to be targeted by the Trump administration Friday evening, eliminating the country’s eligibility to export a number of products to the U.S. duty-free.

• June 3: Nikkei India Manufacturing PMI
• June 5: Nikkei India Services and Composite PMI
• June 6: RBI Monetary Policy
• The U.S. ISM manufacturing PMI is released Monday.
• U.S. President Donald Trump meets U.K. Prime Minister Theresa May in London Monday.
• Tuesday sees the Reserve Bank of Australia policy meeting, with many expecting an interest-rate cut.
• China President Xi Jinping begins a two-day visit to Russia on Wednesday.
• Theresa May steps down on Friday as leader of the Conservative Party.
• Friday’s U.S. jobs report is projected to show payrolls rose by 190,000 in May, unemployment held at 3.6 percent, a 49-year low, and average hourly earnings growth sustained a 3.2 percent pace.
• G-20 finance ministers and central bankers gather in Fukuoka Saturday and Sunday for meetings.

• Brent crude fell over 6 percent to $60.55 a barrel.
• West Texas Intermediate crude decreased 1 percent to $52.98 a barrel.
• Gold gained 0.3 percent to $1,309.13 an ounce.

London Metal Exchange

• Copper ended lower for the third day, down 0.38 percent.
• Zinc ended 1.44 percent lower.
• Aluminium halted a two-day fall, closed 0.7 percent higher.
• Nickel resumed declines after a one-day rally, closed 1.3 percent lower.
• Lead ended 0.06 percent lower.
• Tin ended 0.32 percent lower.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.3 percent to 11,960 as of 7:10 a.m.

Asian stocks began the week on the back foot in the wake of trade-war jitters from U.S. moves against Mexico and India to China’s retaliation against American measures.

U.S. futures retreated and equities in Tokyo slumped, with losses more modest in Korea and Australia.

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