Sensex, Nifty Clock Weekly Losses As Yes Bank Slumps 26%

Indian equity benchmarks registered their weekly losses, dragged by Yes Bank Ltd., as the Mumbai-based lender fell 26 percent during the period after reporting a surprise loss in March quarter.

The S&P BSE Sensex closed 0.27 percent lower this week to end at 38,963.26 and the NSE Nifty 50 ended at 11,712.25, down 0.36 percent. The broader market index represented by the NSE Nifty 500 Index closed 0.67 percent during the period.

The markets were closed on April 29 as India’s financial capital went to the polls and on May 1 on account of Maharashtra Day.

Today, the benchmark indices ended the session with minor losses. The 31-share index closed 18.17 points or 0.05 percent lower and the 50-stock index ended 0.11 percent lower. The 500-share gauge fell 0.13 percent.

The market breadth was tilted in favour of sellers. About 1,031 stocks fell and 702 shares advanced on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Realty Index’s 1.57 percent gain. On the flipside, the NSE Nifty It Index was the top sectoral loser, down 1.89 percent.

Gujarat Alkalies & Chemicals

• Stock rose as much as 7.9 percent to Rs 535.40.
• Trading volume was nine times its 20-day average.

Blue Star

• Stock rose as much as 4.2 percent to Rs 711.25.
• Trading volume was more than 13 times its 20-day average.

Minda Corp

• Stock fell as much as 4.4 percent to Rs 120.
• Trading volume was more than 12 times its 20-day average.

JM Financial

• Stock fell as much as 5.7 percent to Rs 83.10.
• Trading volume was nine times its 20-day average.

Shares of HSIL fluctuated between gains and losses to trade 1.6 percent lower at Rs 260.30 after announcing March quarter results.

Key Earnings Highlights (Q4, YoY)

• Revenue up 22 percent to Rs 809 crore.
• Net profit up 58 percent to Rs 38 crore.
• Ebitda up 52 percent to Rs 113 crore.
• Margin at 14 percent versus 11.3 percent.

Godrej Consumer’s profit during January March period rose on account of tax write-back.

The company reported a net profit of Rs 935 crore, a jump of 51 percent from the year-ago period, according to its stock exchange filing. That compared with Rs 419-crore analysts consensus estimate tracked by Bloomberg. The profit rose on account of tax write-back of Rs 533 crore. Besides, the company had reported an exceptional income of Rs 533 crore during the base quarter.

Key Earnings Highlights (Q4, YoY)

• Revenue down 3.1 percent to Rs 2,452 crore.
• Ebitda down 3.4 percent to Rs 577 crore.
• Margin at 23.5 percent versus 23.6 percent.
• Branded volumes growth at 1 percent.

Shares of Godrej Consumer fell as much as 3.6 percent to Rs 631.10 after the results announcement.

Shares of JM Financial pared losses and rose as much as 0.1 to Rs 88.20. The stock fell 5.7 percent intraday.

About 40 lakh shares of the company changed hands in block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of HDFC Bank extended gains for the fourth consecutive trading session and rose as much as 0.94 percent to hit an all-time high at Rs 2,378.

The stock rose 4 percent in the past five days and gains 3.5 percent in the past 30 days. The scrip traded at 24 times its estimated earnings per share for the coming year, Bloomberg data showed.

Nifty’s 11,800 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract jumped 18.68 percent to Rs 48.60. Over 6.27 lakh shares were added to the open interest which stood at over 22.83 lakh shares.

Larsen & Toubro Infotech (Q4, QoQ)

• Stock fell as much as 3.4 percent to Rs 1,662.10.
• Revenue up 0.5 percent to Rs 2,486 crore.
• Dollar revenue growth up 2 percent at $353.8 million.
• Net profit up 0.9 percent to Rs 378.9 crore.
• EBIT down 7.4 percent to Rs 436.7 crore.
• EBIT Margin at 17.6 percent versus 19.1 percent.
• Other Income up 2.2 times to Rs 67.4 crore.
• Declares dividend of Rs 15.5 per share.

Blue Star (Q4, YoY)

• Stock rose as much as 2.1 percent to Rs 697.
• Revenue up 18.5 percent to Rs 1,595.8 crore.
• Net profit up 2.5 times to Rs 79.8 crore.
• Ebitda up 81.1 percent to Rs 109.4 crore.
• Margin at 6.9 percent vs 4.5 percent.
• Declares dividend of Rs 10 per share.
• Inventory gain of Rs 147 crore versus Rs 374 crore.
• Deferred tax and MAT credit reversal of Rs 15 crore.
• Electro-mechanical projects and packaged AC systems segment revenue up 21 percent to Rs 842.3 crore.
• Unitary products segment revenue up 19 percent to Rs 703.6 crore.
• Carry forward order book up 21 percent to Rs 2,430 crore.

Tata Power (Q4, YoY)

• Stock rose as much as 2.3 percent to Rs 68.15.
• Revenue up 0.2 percent to Rs 7,230.2 crore.
• Net profit down 95.5 percent to Rs 57.6 crore.
• Ebitda down 1.5 percent to Rs 1,348.7 crore.
• Margin at 18.7 percent versus 19 percent.
• Other income of Rs 186.7 crore.
• Exceptional gain in base quarter worth Rs 1,886.7 crore due to reversal of impairment of Mundra plant.
• Power business segment revenue up 12 percent to Rs 7,347.7 crore.
• Standalone generation down 4 percent at 2784 MU.
• Standalone Sales down 5 percent at 2677MU versus 2826MU

Laurus Labs (Q4, YoY)

• Stock fell as much as 2.8 percent to Rs 393.20.
• Revenue up 13.4 percent to Rs 635.2 crore.
• Net profit down 50.6 percent to Rs 93.9 crore.
• Ebitda down 4.1 percent to Rs 112.1 crore.
• Margin at 17.6 percent versus 20.9 percent.
• Raw Material Costs up 30 percent to Rs 333.3 crore.
• Other expenses up 26 percent to Rs 107.2 crore.
• Raw materials as percent of sales at 52 percent versus 46 percent.

Orient Paper (Q4, YoY)

• Stock rose as much as 7.2 percent to Rs 35.90.
• Revenue up 9.1 percent to Rs 198.1 crore.
• Net profit up 2.1 times to Rs 32.4 crore.
• Ebitda up 7. percent to Rs 36.9 crore.
• Margin at 18.6 percent vs 18.9 percent.
• Tax Reversal of Rs 2.4crore versus tax expense of Rs 9.9 crore.
• Raw materials as percent of sales at 29 percent versus 26 percent.

JM Financial (Q4, YoY)

• Stock fell as much as 5.7 percent to Rs 83.10.
• Revenue up 6.8 percent to Rs 944.5 crore.
• Net profit down 22.4 percent to Rs 128.6 crore.

Shares of Kotak Mahindra Bank extended gains for the fourth consecutive trading session to hit an all-time high. The stock rose as much as 1.3 percent in today’s trade.

Shares of Ruchi Soya Industries Ltd. hit an upper circuit of 10 percent to Rs 9.

The company said in an exchange filing that Patanjali’s resolution plan won lenders’ approval.

The stock had declined 33 percent in the past 12 months compared to an 11 percent advance in the Sensex.

Shares of the life insurer fell as much as 3.9 percent, the most in over a month, to Rs 401.10.

The company’s promoter Standard Life (Mauritius Holdings) 2006 offered to sell up to 3.6 crore shares, or 1.78 percent stake in the open market, according to an exchange filing. The floor price is set to Rs 390 per share. Seller proposes to sell these shares on May 3 for non-retail investors and on May 6 for retail investors. The floor price is at a discount of almost 7 percent to the last regular trade.

Trading volume was over 50 times its 20-day average, Bloomberg data showed. The stock traded at 57 times its estimated earnings per share for the coming year.

The NSE Nifty IT Index fell for the second consecutive trading session, led by the declines in HCL Technologies Ltd. and Tata Consultancy Services Ltd.

Indian equity benchmarks fluctuated between gains and losses after the gains in HDFC Ltd. and Reliance Industries Ltd. countered losses in Tata Consultancy Services Ltd. and Infosys Ltd.

The S&P BSE Sensex rose 88 points or 0.2 percent higher to trade above 39,000 and the NSE Nifty 50 rose 0.17 percent to 11,746.15. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.26 percent.

The market breadth was tilted in favour of buyers. About 862 stocks advanced and 610 shares declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Realty Index’s 0.97 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 1.3 percent.

The Indian rupee fluctuated between gains and losses to trade little changed at 69.36 against the dollar.

The local currency is on track for its best weekly performance since March 15, aided by a drop in oil prices and nearly $10 billion inflows into the nation's stock markets so far this year.

Indian bonds are set to be lifted by a drop in oil prices, with the sale of Rs 17,000 crore of sovereign notes likely to gauge market demand. Brent for July settlement fell 25 cents to $70.50 a barrel and was headed for its first back-to-back weekly loss this year.

The yield on bonds due January 2028 fell three basis points to 7.50 percent on Thursday while that on benchmark 10-year bonds shaved off three basis points to 7.39 percent. It has lost two basis points this week.

Futures –May Series

Nifty

• Nifty futures closed trading at 11,765.4, premium of 40.7 points versus 43.4 points.
• Nifty open interest down 2.7 percent sheds 5.1 lakh shares in open interest.

Bank Nifty

• Bank Nifty futures closed trading at 29799.3, premium of 90.7 points Vs 126.9 points.
• Bank Nifty open interest down 5 percent, sheds 82,000 shares in open interest.

Options

• Nifty PCR at 1.38 versus 1.48 (across all series).

Nifty Weekly Expiry May 9

• Max open interest concentration at 11,800 Call (16.5 lakh shares), 11,700 Put (13.9 lakh shares) and 11,500 Put (+10.3 lakh shares).
• Max open interest addition seen at 11,800 Call (+11.5 lakh shares) and 11,700 Put (+8.5 lakh shares).

Nifty Monthly Expiry May 30

• Max open interest concentration on Put side at 11,000 (21.8 lakh shares).
• Max open interest on call side at 12,000 (11.9 lakh shares).

Stocks In F&O Ban

• Jet Airways

CLSA on Kansai Nerolac

• Maintained ‘Sell’ with a price target of Rs 385.
• March quarter earnings were below estimates.
• Severe pressures in growth rates; Multi-quarter low margins.
• Management cautious on near-term demand outlook.

Macquarie on L&T Infotech

• Maintained ‘Outperform’; hiked price target to Rs 2,368 from Rs 2,240.
• Good revenue growth despite weakness in top client.
• Margin decline due to hiring and investments as expected.
• Deal win momentum remains strong.

Macquarie on Tata Power

• Maintained ‘Neutral’ with a price target of Rs 83.
• March quarter results were operationally inline; Sale of non-core assets is key.
• Tariff hike likely to cut Mundra losses close to zero.
• Growth depends on opportunities in renewable and distribution.

UBS on Kajaria Ceramics

• Maintained ‘Buy’; hiked price target to Rs 760 from Rs 640.
• Recent regulatory changes may benefit organized manufacturers.
• Kajaria well placed to gain share.
• Expect December to be strong with volume growth of 15 percent.

UBS on Cognizant Technology

• Cognizant cuts 2019 guidance to 3.6-5.1 percent from 7-9 percent.
• Company reiterated commitment to growing revenue and margins.
• Expect more volatility in earnings ahead.

Goldman Sachs on Embassy Office Part REIT

• Initiated ‘Neutral’ with a price target of Rs 318.
• Best in-class portfolio, but risk-reward balanced.
• Strong organic growth and acquisition drivers.
• Expect dividend per unit growth of 9.4 percent in 2020-21.

Jefferies on Britannia

• Maintained ‘Hold’; cut price target to Rs 2,900 from Rs 3,100.
• March quarter review: Steady show amidst weak demand conditions.
• Cut estimates to reflect higher launch pipeline which will keep margin expansion under check.
• Loans receivable increased further to Rs 1200 crore in 2018-19 which is an investor concern.

Investec on Hindustan Zinc

• Maintained ‘Buy’; hiked price target to Rs 329 from Rs 311.
• March quarter review: muted quarter; Conservative guidance.
• Dividend yield play, silver proxy in making.
• With shaft commissioning on track, expect higher volumes and cost.

HSBC on Indian Real Estate

• City-by-city in-depth analysis suggests markets are becoming less fragmented and top developers are taking higher shares.
• Expect this trend to accelerate as the NBFC crisis takes some developers out of race with only the strong surviving.
• DLF: Upgraded to ‘Buy’ from ‘Hold’; maintained price target at Rs 216.

On Dabur

Macquarie

• Maintained ‘Neutral’; hiked price target to Rs 430 from Rs 412.
• Aggressiveness on market share had led to near-term margin pressure.
• Remain concerned on higher competition in food and oral care.
• Margins could see further pressure from higher input cost and competition.

UBS on Dabur India

• Maintained ‘Buy’ with a price target of Rs 535.
• Trough quarter with lumped one-offs.
• Red toothpaste and healthcare were bright spots despite slowing demand.
• Focus on core brand to continue.

• Mcleod Russel price band revised to 10 percent.

Stocks Moving Into Short-Term ASM Framework

• Eveready Industries
• Mcleod Russel
• Williamson Magor
• Cox & Kings Financial Services

• Nirlon promoter group Shital Trading & Interiors created pledge of 75,000 shares on April 18.
• Zuari Agro Chemicals promoter Zuari Management & Services created pledge of 15.6 lakh shares on April 25.
• Future Lifestyle Fashions promoter Ryka Commercial Ventures croreeated pledge of 40.4 lakh shares on April 27.
• Apollo Hospitals Enterprise promoter group PCRORE Investments revoked pledge of 47.85 lakh shares on April 30.
• Future Retail promoter Future Corporate Resources croreeated pledge of 37.9 lakh shares on April 27.

• Eveready Industries: India Opportunities Growth FUND acquired 6 lakh shares or 0.83 percent equity to Rs 107.5 each.
• Reliance Infrastructure: KBC Equity Fund acquired 13.2 lakh shares or 0.51 percent equity to Rs 111.08 each.

Lakshmi Vilas Bank

• India Opportunities Growth Fund acquired 55.8 lakh shares or 1.74 percent equity to Rs 73.9 each.
• Nomura Singapore sold 55.8 lakh shares or 1.74 percent equity to Rs 73.9 each.

Nifty Earnings To Watch

• Hindustan Unilever

Other Earnings To Watch

• Godrej Consumer Products
• Aavas Financiers
• Accelya Kale Solutions
• Akzo Nobel India
• Central Depository Services
• Birla Corporation
• Century Textiles & Industries
• Cholamandalam Financial Holdings
• Deepak Nitrite
• HSIL
• Kirloskar Ferrous Industries
• L&T Technology Services
• Tata Chemicals
• Visaka Industries
• VST Industries

Earnings Reaction To Watch

Larsen & Toubro Infotech (Q4, QoQ)

• Revenue up 0.5 percent to Rs 2,486 crore.
• Dollar revenue growth up 2 percent at $353.8 million.
• Net profit up 0.9 percent to Rs 378.9 crore.
• EBIT down 7.4 percent to Rs 436.7 crore.
• EBIT Margin at 17.6 percent versus 19.1 percent.
• Other Income up 2.2 times to Rs 67.4 crore.
• Declares dividend of Rs 15.5 per share.

Blue Star (Q4, YoY)

• Revenue up 18.5 percent to Rs 1,595.8 crore.
• Net profit up 2.5 times to Rs 79.8 crore.
• Ebitda up 81.1 percent to Rs 109.4 crore.
• Margin at 6.9 percent vs 4.5 percent.
• Declares dividend of Rs 10 per share.
• Inventory gain of Rs 147 crore versus Rs 374 crore.
• Deferred tax and MAT credit reversal of Rs 15 crore.
• Electro-mechanical projects and packaged AC systems segment revenue up 21 percent to Rs 842.3 crore.
• Unitary products segment revenue up 19 percent to Rs 703.6 crore.
• Carry forward order book up 21 percent to Rs 2,430 crore.

Tata Power (Q4, YoY)

• Revenue up 0.2 percent to Rs 7,230.2 crore.
• Net profit down 95.5 percent to Rs 57.6 crore.
• Ebitda down 1.5 percent to Rs 1,348.7 crore.
• Margin at 18.7 percent versus 19 percent.
• Other income of Rs 186.7 crore.
• Exceptional gain in base quarter worth Rs 1,886.7 crore due to reversal of impairment of Mundra plant.
• Power business segment revenue up 12 percent to Rs 7,347.7 crore.
• Standalone generation down 4 percent at 2784 MU.
• Standalone Sales down 5 percent at 2677MU versus 2826MU

Laurus Labs (Q4, YoY)

• Revenue up 13.4 percent to Rs 635.2 crore.
• Net profit down 50.6 percent to Rs 93.9 crore.
• Ebitda down 4.1 percent to Rs 112.1 crore.
• Margin at 17.6 percent versus 20.9 percent.
• Raw Material Costs up 30 percent to Rs 333.3 crore.
• Other expenses up 26 percent to Rs 107.2 crore.
• RM as percent of sales at 52 percent versus 46 percent.

Orient Paper (Q4, YoY)

• Revenue up 9.1 percent to Rs 198.1 crore.
• Net profit up 2.1 times to Rs 32.4 crore.
• Ebitda up 7. percent to Rs 36.9 crore.
• Margin at 18.6 percent vs 18.9 percent.
• Tax Reversal of Rs 2.4crore versus tax expense of Rs 9.9 crore.
• RM as percent of sales at 29 percent versus 26 percent.

JM Financials (Q4, YoY)

• Revenue up 6.8 percent to Rs 944.5 crore.
• Net profit down 22.4 percent to Rs 128.6 crore.

Tata Motors

• Domestic commercial and passenger vehicles sales down 20 percent to 42,577 units.
• Exports down 53 percent to 1,402 units.

Hero MotoCorp

• Two-wheeler sales down 17 percent to 5.74 lakh units.

Catch all the April auto sales updates here.

• DLF: Transferred a retail mall in Noida to one of its subsidiaries for Rs 2,950 crore. The value was derived on the basis of the valuation report of an independent valuer.
• Yes Bank: RBI approved extension of tenure of Brahm Dutt as Part-Time Chairman of the Bank till January 10,2022.
• JSW Steel: NCLAT in its order suggested that the Resolution Plan related to Vardhman Industries as approved by the Committee of Creditors may be implemented subject to final orders to be passed by the Honourable NCLAT in the Appeal. Since the implementation of plan would in effect be on an interim basis and could create wide ranging uncertainties around rights and liabilities of various stakeholders dealing with VIL, the company is evaluating its options which include approaching the Honourable Supreme Court to seek a direction to defer the implementation till the resolution plan is unconditionally approved.
• Adani Enterprises: Carmichael coal project hit with further setback. Queensland government rejects Adani’s plan to protect a rare species of finch “because it does not meet the requirements of the company’s environmental authority,” the state’s department of environment and science said in a statement, according to Bloomberg report.
• Ruchi Soya: Patanjali Resolution plan won lenders’ approval.
• HDFC Life Insurance: Promoter Standard Life (Mauritius Holdings) 2006 to sell up to 3.6 crore shares, or 1.78 percent stake in the open market. The floor price is set to Rs 390 per share. Seller proposes to sell these shares on May 3 for non-retail investors and on May 6 for retail investors. The floor price is at a discount of almost 7 percent to the current market prices.
• Ircon International received an order worth $91.27 million from the Sri Lankan Government for upgradation of railway tracks. The contract will be executed for a period of 36 months. Previously, IRCON has successfully executed five high-value Railway Projects in Northern Sri Lanka with a cumulative contract value of over $645 million, as per exchange filings.
• Andhra Bank board approved increasing authorised capital from Rs 3,000 crore to Rs 6,000 crore.
• Persistent Systems joined Siemens partner program to bring industrial digital solutions to the market.
• Grasim said its brownfield expansion of 45 TPD value-added specialty fibre capacity at Gujarat Plant has been fully commissioned and the commercial productions has commenced from May 1.

• Brent crude traded lower for the third day, down 0.23 percent to $70.59 per barrel. The Asian crude benchmark ended 1.9 percent lower yesterday.
• West Texas Intermediate crude sank 0.1 percent to $61.76 a barrel, after sliding 2.8 percent in the previous session.
• Gold was flat at $1,271.22 an ounce.

London Metal Exchange

• Copper ended lower for the second day, down 1.09 percent.
• Aluminium ended marginally higher, up 0.06 percent.
• Nickel ended lower for the fourth consecutive trading session, down 0.29 percent.
• Tin ended lower for the fourth consecutive trading session, down 1.4 percent.
• Lead halted a two-day fall, ended 1.35 percent lower.
• Zinc ended lower for the second consecutive trading session, down 1.4 percent.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.05 percent to 11,750 as of 8:10 a.m.

Asian stocks slipped as investors turned their focus to earnings reports and the upcoming U.S. jobs data, while continuing to monitor developments in trade talks.

Shares in Hong Kong fell ahead of HSBC Holdings Plc results and equities in Seoul also retreated, though volumes were light across the region with markets in China and Japan closed.

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