Sensex, Nifty Close At One-Month Low

• Motherson Sumi: About 16.4 lakh shares changed hands in a single block deal on BSE.
• Reliance Power: About 11.9 lakh shares changed hands in a single block deal on NSE.

Buyers and sellers were not known immediately
Source: Bloomberg

European stocks declined slightly, kicking off an earnings-heavy week just below 2019’s highs, though energy stocks stemmed losses.

The Nifty PSU Bank Index was the top sectoral gainer as most of the state-owned banks were trading higher.

Thomas Cook

• Shares advanced over 8 percent intraday to Rs 264.40.
• The trading volume was almost eight times the 20-day average.

Lemon Tree Hotels

• Shares fell as much as 2.2 percent to Rs 74.60.
• The trading volume was almost triple the 20-day average.

Cholamandalam Financial Holdings

• Shares rose nearly 3 percent to Rs 514 apiece.
• The trading volume was 10 times the 20-day average.

Carborandum Universal

• Shares fell 2.3 percent intraday to Rs 364.20 apiece.
• The trading volume was triple the 20-day average.

Shares of the auto-parts maker rose 3.2 percent intraday to an all-time high of Rs 3,939.50 apiece.

The shares advanced 62 percent in the past 12 months compared to a 12 percent gain in the Sensex. The trading volume nearly five times the 20-day average for this time of the day, Bloomberg data showed.

Shares of the media and entertainment company rose as much as 6.4 percent, its biggest intraday gain in two months, to Rs 422 per share.

The stock declined 30 percent in the last 12 months compared with a 12 percent gain in the Sensex Index. The company's shares trade at 25 times its estimated earnings per share for the comping year, Bloomberg data showed.

Shares of the property developer erased opening losses and rose close to 3 percent to Rs 235.

The company, in an exchange filing, said it bagged orders worth Rs 342.3 crore for construction of commercial and residential buildings at Mumbai.

The stock declined 37 percent in the past 12 months compared with a 12 percent gain in the Sensex Index.

Shares of the drugmaker rose 4.1 percent intraday to nearly a three-month high of Rs 866 apiece.

Brokerage firm Morgan Stanley upgraded its recommendation on the stock to ‘Overweight’ from ‘Equal-Weight’. Also, the price target was hiked to Rs 1,094 per share, indicating a potential increase of 32 percent from previous close.

The trading volume was more than triple the 20-day average for this time of the day, Bloomberg data showed. The relative strength index on the stock was above 70, indicating it may be overbought.

Shares of the state-owned natural gas explorer declined 3.8 percent to 331.70, its lowest since Feb. 27.

GAIL emerged as the highest bidder for Infrastructure Leasing & Financial Services’ wind energy assets, according to the non-banking lender’s press release. The group has Rs 4,800 crore of wind assets and total debt of the wind portfolio stands at Rs 3,700 crore and there will be no haircut of lenders, the release said.

The stock traded 25 percent below the Bloomberg one-year consensus target price.

Shares of the data networking products maker rose as much as 10.7 percent to a three-month high of Rs 206 apiece. The company reported its March quarter earnings on Monday.

Review (Q4 Consolidated, YoY)

• Revenue up 2.7 times to Rs 273.1 crore.
• Net profit up 9.5 percent to Rs 35.9 crore.
• Ebitda up 4.9 times to Rs 52.8 crore.
• Margin at 19.3 percent versus 10.5 percent.
• Deferred tax income of Rs 24.3 crore in base quarter.

Here’s what Axis Capital had to say on the stock:

• Maintained ‘Buy’; cut target price to Rs 235 from Rs 290.
• Strong quarter led by revenue from international market.
• Diversification to be value accretive and reduce earnings volatility.
• Cut target to factor in lower margin estimates.

The trading volume was more than 300 times its 20-day average for this time of the day, Bloomberg data showed. The stock traded 13 times its estimated earnings per share for the coming year.

The S&P BSE Sensex rose as much as 0.15 percent to 38,705.5 and the NSE Nifty 50 rose as much as 0.08 percent to 11,600.65. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.02 percent higher.

The market breadth was tilted in favour of buyers. About 796 stocks advanced and 541 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Realty Index’s 0.55 percent gain. On the flipside, the NSE Nifty Auto Index was the top sectoral loser, down 0.21 percent.

The Indian rupee opened higher against the U.S. dollar. The home currency gained as much as 0.01 percent to 69.66 against the greenback.

Traders will await RBI's second $5 billion currency swap auction. The first one had seen a strong demand. Implied opening from forwards suggest the pair may open around Rs 69.59 a dollar. In the session, it is expected to stay in a range of 69.20-69.90 a dollar.

Surging crude oil continue to be a drag on sovereign bonds. Oil extended gains after leaping to a six-month high Monday after the Trump administration maintained its tough stance on Iran oil imports. Yield on the benchmark bond climbed 6 basis points in the last session to 7.47 percent. The crude worries will keep the yield in a range of 7.45-7.50 percent in the session.

F&O Cues

Futures Across all series

• Nifty open interest up 1 percent, adds 1.9 lakh shares in open interest.
• Bank Nifty open interest down 11 percent, sheds 2.5 lakh shares in open interest.
• Nifty Rollover 26 percent, Bank Nifty Rollover 22 percent.

Options

• Nifty PCR at 1.34 versus 1.57 (across all series)

Nifty Options Expiry 25 April

• Max open interest at 11,700 Call (41.5 lakh shares), 12,000 Call (41.4 lakh shares) & 11,800 Call (30.2 lakh shares).
• Open interest addition seen for call strikes 11,700 (+29 lakh shares), 12,000 Call (+9.8 lakh shares), 11,750 (+8.7 lakh shares).
• Open interest shedding seen for Put strikes 11,000 (-8.8 lakh shares), 11,700 (-8.4 lakh shares).

CLSA on Autos

• Few reasons to turn positive on industry outlook.
• Hero: Potential success of new products.
• Bajaj: Strong growth in higher margin export is key upside.
• TVS: Outsized market share gains could drive upside.
• Eicher: Risk of elongated underperformance to industry.

Morgan Stanley on AU Small Finance

• Maintained ‘Equal-weight’ with target price of Rs 560.
• Net profit above estimates driven by net interest income and lower provisions.
• Disbursements growth lower at 20 percent partly due to high base.
• Asset quality was strong.

Deutsche Bank on Cement Stocks

• Ambuja: Maintained ‘Hold’; hiked target price to Rs 235 from Rs 230.
• ACC: Maintained ‘Buy’; hiked target price to Rs 1,830 from Rs 1,790.
• Shree Cement: Maintained ‘Buy’; hiked target price to Rs 21,600 from Rs 19,330.
• Ramco Cement: Maintained ‘Buy’; hiked target price to Rs 790 from Rs 785.
• Ultratech: Maintained ‘Buy’; hiked target price to Rs 4575 from Rs 4240.
• Cost leaders focusing on profitability is positive for industry.
• Demand growth seen moderating; monsoon holds the key.
• Prices up 10 percent year to date on pan-India basis with hike across the board.

Axis Capital on Tejas Networks

• Maintained ‘Buy’; cut target price to Rs 235 from Rs 290.
• Strong quarter led by revenue from international market.
• Diversification to be value accretive and reduce earnings volatility.
• Cut target to factor in lower margin estimates.

• ACC
• Coromandel International
• ICICI Securities
• Indiabulls Integrated Services
• Indiabulls Real Estate
• Sasken Technologies
• Sterlite Technologies
• Tata Global Beverages
• Menon Bearings
• Nucleus Software Exports
• SORIL Infra Resources

Earnings Reaction To Watch

Lux Industries (Q4 Standalone, YoY)

• Revenue up 15.9 percent to Rs 385.6 crore.
• Net profit up 23.7 percent to Rs 37.6 crore.
• Ebitda down 2.4 percent to Rs 56.4 crore.
• Margin at 14.6 percent versus 17.4 percent.
• Inventory loss of Rs 86.4 crore.
• Employee cost up 34 percent to Rs 11 crore.
• Other Income of Rs 9 crore.
• Declares dividend of Rs 3.5 per share.

Swaraj Engines (Q4, YoY )

• Revenue up 3.3 percent to Rs 191.5 crore.
• Net profit down 6.7 percent to Rs 16.7 crore.
• Ebitda down 4.2 percent to Rs 27.4 crore.
• Margin at 14.3 percent versus 15.4 percent.
• Raw materials as percent of Sales at 79 percent versus 74 percent
• Declares dividend of Rs 25 per share and special dividend of Rs 25 per share.

Tejas Networks (Q4 Consolidated, YoY)

• Revenue up 2.7 times to Rs 273.1 crore.
• Net profit up 9.5 percent to Rs 35.9 crore.
• Ebitda up 4.9 times to Rs 52.8 crore.
• Margin at 19.3 percent versus 10.5 percent.
• Deferred tax income of Rs 24.3 crore in base quarter.

AU Small Finance Bank (Q4, YoY)

• Net Interest Income up 34.9 percent to Rs 386.9 crore.
• Net profit up 42.4 percent to Rs 118.2 crore.
• Provisions at Rs 39.2 crore versus Rs 32.1 crore (Rs 32.5 crore QoQ).
• GNPA at 2.04 percent versus 2.09 percent (QoQ).
• NNPA at 1.29 percent versus 1.31 percent (QoQ) .

• Blackstone Group will buy a controlling stake in Essel Propack Ltd., a company promoted by Ashok Goel, the younger brother of Subhash Chandra who’s the promoter of the Essel Group companies such as Zee Entertainment Enterprises Ltd.
• GAIL emerged as the highest bidder for IL&FS wind energy assets, offers Rs 4,800 crore portfolio of wind assets. The total debt of the wind portfolio stands at Rs 3,700 crore and there will be no haircut of lenders. (IL&FS Statement)
• Mcleod Russel executed sale agreement for specified assets from its three estates to Luxmi Tea for Rs 150.45 crore. Earlier, the company had entered in to a non-binding term sheet with Saffron Enclave for sale of specified assets of the aforesaid three estates, which has expired on March 31.
• Indian state refiners have firmed up oil supplies from alternate sources to replace Iran oil volumes for next month as contingency plan for non-renewal of U.S. waivers: government official (Bloomberg News)
• Man Infraprojects fixed record day as May 6 for purpose of allotment of free shares of the company to Man Industries.
• Biocon said it will consider issuing of bonus shares on April 25.
• Hindustan Copper to consider raising capital via QIP on April 25.
• Sunteck Realty to consider raising funds on May 2
• Deepak Fertilizer and Petrochem approved raising $60 million via issue of foreign currency convertible bonds and compulsory convertible debentures to International Finance Corporation.
• Piramal Enterprises: Board approved allotment of 1.3 crore shares pursuant to conversion of compulsory convertible debentures aggregating to Rs 3,668.6 crore.
• Suven Life Sciences completed purchase of assets of Rising Pharmaceuticals through its joint venture partner Shore Suven Pharma.
• Bank of India allotted 51.76 crore equity shares at Rs 89.6 per share, aggregating to Rs 4638 crore to the Government of India.
• Hindustan Fluorocarbons board to meet on April 29 for approval of e-auction details received from MSTC on sale 66 acres of land.
• Lakshmi Vilas Bank to hold extra-ordinary annual general meeting on May 20. Board also approved Rs 112 per equity share as the actual price at which the equity shares will be issue and allotted to Indiabulls Housing Finance on a preferential basis.
• State Bank of India offered loans at 20 basis points lesser interest than existing car loan schemes to buy electric vehicles.
• Symphony surrendered lease rights of its Surat SEZ unit for Rs 3.5 crore on April 5. The company said this unit contributed nothing to the company’s revenue.
• Texmaco Rail and Engineering to consider raising funds on April 25.
• TCS to provide digital solutions to India Post.

• The Bank of Japan, Bank of Canada, Bank of Russia, Sweden’s Riksbank and Bank of Indonesia set monetary policy.
• Germany’s IFO data is released Wednesday.
• Japan’s Shinzo Abe meets leaders of the European Union Thursday before flying to the U.S. for a summit with President Donald Trump.

• Brent crude gained 0.27 percent to hover near a six-month high of $74.43 per barrel.
• West Texas Intermediate crude extended a 2.5 percent advance, rising 0.5 percent to $65.86 a barrel.
• Gold was little changed at $1,274.37 an ounce.

Good Morning!

Stocks in Asia were mixed Tuesday as investors look to a deluge of earnings for reasons to carry an equity rally furt

Equities fluctuated in Japan and Korea, while they opened lower in Hong Kong after the Easter break. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded a little changed at 11,627 as of 8:00 a.m.

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