Sensex, Nifty Drop To One-Month Low 

Indian equity benchmarks ended at over a month low, dragged down by losses in Tata Motors and oil retailers.

The S&P BSE Sensex ended 0.84 percent lower at 38,277.55 and the NSE Nifty 50 ended at 11,497.90, down 0.87 percent. The broader market index represented by the NSE Nifty 500 Index ended 0.86 percent lower.

The market breadth was tilted in favour of sellers. About 1,209 stocks declined and 559 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Media Index’s 2.74 percent fall. On the flipside, the NSE Nifty IT Index was the only sectoral gainer, up 0.15 percent.

Shares of the tractor maker declined as much as 3.2 percent to 643.45 apiece. The company posted its March quarter results today.

Key Highlights: (YoY)

• Net profit rose 7 percent to 121 crore.
• Revenue rose 14 percent to Rs 1,632 crore.
• Ebitda rose 10 percent to Rs 190.50 crore
• Operating margin fell 40 basis points to 11.7 percent.
• Company declared a final dividend of Rs 2.50 per share.

The relative strength index to the stock was below 30, indicating the stock may be oversold. The stock declined 34 percent in the past 12 months compared with a 9 percent gain in the Sensex.

European stocks fell from a steady start as losses in banking and mining stocks dragged down the indices amid ongoing U.S.-China trade negotiations.

Shares of Essel Group companies fell in today’s session. The relative strength index on the stocks were below 30, indicating they may be oversold.

• Zee Entertainment declined 11 percent intraday to Rs 342 apiece.
• Dish TV fell 12.1 percent to Rs 30.75 apiece.

Narayana Hrudalaya

• Stock declined 2.7 percent to Rs 190.15.
• Trading volume was more than 30 times its 20-day average.

Aavas Financiers

• Stock advanced 9 percent to Rs 1,462.95.
• Trading volume was more than 12 times its 20-day average.

Security and Intelligence Services

• Stock fell 6.3 percent to Rs 883.50.
• Trading volume was more than 16 times its 20-day average.

Star Cement

• Stock rose 7.7 percent to Rs 118.
• Trading volume was more than six times its 20-day average.

Shares of the non-banking lender declined 9 percent intraday to a two-month low of Rs 121 apiece. The stock declined 80 percent in the past 12 months compared with a 10 percent gain in the Sensex.

NSE Nifty Metal index rose 1.1 percent and was the top performer among the sectoral gauges compiled by National Stock Exchange.

Shares of the private lender rose nearly 1.3 percent to Rs 2,358 apiece.

HDFC Bank is set to consider stock split on May 22, according to an exchange filing. Board will consider splitting each share into two shares.

Fifty two of the 55 analysts tracked by Bloomberg had a ‘Buy’ rating on the stock, while two had recommended ‘Hold’ and one analyst had a ‘Sell’ rating.

Shares of the oil retailers declined in today’s trading session as crude closed 0.55 percent higher at $71.79 per barrel.

Shares of the world’s largest coconut oil maker rose over 8 percent intraday, its biggest single-day gain in nearly four years, to Rs 367 apiece. The company reported its fourth quarter earnings on Monday.

The company’s net profit was up 2.2 times to Rs 406 crore while its revenue was up 8.7 percent to Rs 1,609 crore.

Here’s what brokerages had to say on the stock:

Macquarie

• Maintained ‘Outperform’; hiked target price to Rs 412 from Rs 394.
• Q4 Ebitda below estimate due to higher investments and higher promotions.
• Recovery in Saffola – key positive.
• Operating margin expected to improve on lower input cost and operating leverage.

CLSA

• Maintained ‘Buy’ with target price of Rs 465.
• Q4: Ebitda below but net earnings ahead.
• Healthy growth driven by Saffola and good margin expansion.
• Copra prices expected to remain benign and there is focus on new launches and GTM transformation.

Trading in the company's call options totalled 2,007 contracts, compared with the average of 222 over the past 20 days. Trading in the company's put options totalled 340 contracts, compared with the average of 71 over the same period.

Shares of the communications equipment maker rose as much as 6.6 percent, its biggest intraday gain in two months, to 204.40 apiece.

The company's promoters— Volcan Investments is set to release pledge on shares by end of July 2019, according to an exchange notification.

The stock declined 41 percent in the past 12 months compared with a 10 percent gain in the Sensex Index.

Shares of the Sunil Mittal-led telecom operator rose 2.2 percent intraday to Rs 340.85, its highest since September 2018. The company reported its March quarter results on Monday.

The company’s revenue from its Indian mobile business grew at its fastest pace in three years and margin improved in a quarter when the telecom operator changed strategy to turn around its fortunes.

The stock traded over 10 times its 20-day average for this of the day, Bloomberg data showed.

Indian equity benchmarks opened higher, lifted by gains in Yes Bank and metal stocks.

The S&P BSE Sensex rose as much as 0.48 percent to 38,778.13 and the NSE Nifty 50 rose as much as 0.42 percent to 11,649. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.41 percent higher.

The market breadth was tilted in favour of buyers. About 925 stocks advanced and 427 shares declined on National Stock Exchange.

All sectoral gauges compiled by NSE advanced, led by the NSE Nifty Realty Index’s 0.79 percent gain.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.13 percent to 69.32 against the greenback.

Technicals show that the 68.35 March low is at risk of being tested today. Rupee traders will keep an eye on flows from ICICI Bank's $3 billion overseas fund raise today. Reserve Bank of India probably bought $5.3 billion of foreign currency assets in the week ended April 26, according to Bloomberg Economics’ estimates.

The 15th Finance Commission will meet central bank Governor Shaktikanta Das this week to discuss how much dividend and surplus the RBI can transfer to the government, according to a statement. Rupee fell 0.3 percent to close at 69.40 to the dollar at close on Monday.

F&O Cues

Futures –May series

Nifty

• Nifty futures closed trading at 11,656.3, premium of 58 points versus 52 points.
• Nifty open interest up 2 percent adds 3.2 lakh shares in open interest.

Bank Nifty

• Bank Nifty futures closed trading at 29,808.7, premium of 190 points versus 106.6 points.
• Bank Nifty open interest up 2 percent, adds 35,000 shares in open interest

Options

• Nifty PCR at 1.30 versus 1.49 (across all series)

Nifty Weekly Expiry 9 May

• Max open interest concentration at 11,700C (26.2 lakh shares), 11,800C (+25.9 lakh shares), 11,600P (15.4 lakh shares).
• Max open interest addition seen at 11,700C (+18.5 lakh shares) & 11,650C (+10 lakh shares).

Nifty Monthly Expiry 30 May

• Max open interest on Put side at 11,000 (23.4 lakh shares).
• Max open interest on call side at 12,000 (14.6 lakh shares).
• Max open interest addition seen at 12,000C (+2.2 lakh shares), 10,500P (+1.8 lakh shares).

Stocks In Ban

• Jet Airways

On Bharti Airtel

UBS

• Maintained ‘Buy’ with target price of Rs 390.
• India mobile revenues better than expected.
• Growth driven by min-APRU plans, continued 4G net adds and impact of price hike.
• Rights issue and other capital levers to bring gearing in control.

SBICAP

• Maintained ‘Hold’ with target price of Rs 354.
• Q4FY19 directionally positive; estimate an ARPU of Rs 125.
• Bharti India wireless has incrementally added Ebitda for the first time in the last 10 quarters.
• Despite ARPU improvement India wireless revenue grew lower than Jio.

On ICICI Bank

Macquarie

• Maintained ‘Outperform’; hiked target price to Rs 465 from Rs 450.
• Q4 net profit missed due to higher provisions and write-offs.
• FY20 credit cost normalisation story intact.
• Preferred play on asset quality normalisation theme.

CLSA

• Maintained ‘Buy’; hiked target price to Rs 500 from Rs 470.
• Slippage higher but visibility for normalised credit cost rises.
• Pick-up in Casa growth key to loan growth, and new initiatives can help.
• Earnings set to rebound from FY20; hike estimates by 1-3 percent.

Macquarie on Marico

• Maintained ‘Outperform’; hiked target price to Rs 412 from Rs 394.
• Q4 Ebitda below estimate due to higher investments and higher promotions.
• Recovery in Saffola – key positive.
• Operating margin expected to improve on lower input cost and operating leverage.

Macquarie on Gujarat Gas

• Maintained ‘Outperform’ with target price of Rs 165.
• Volume decline driven by industrial segment.
• See highest structural volume growth potential for Gujarat Gas.

CLSA on Marico

• Maintained ‘Buy’ with target price of Rs 465.
• Q4: Ebitda below but net earnings ahead.
• Healthy growth driven by Saffola and good margin expansion.
• Copra prices expected to remain benign and there is focus on new launches and GTM transformation.

Nifty Results To Watch

• Vedanta

Other Results To Watch

• Escorts
• Essel Propack
• Sun Pharma Advanced Research
• Globus Spirits, ABB India
• Brigade Enterprises
• BSE
• Ceat
• VIP Industries
• Gujarat Borosil
• Hester Biosciences
• Jyothy Laboratories
• Kaya
• Mahindra Logistics
• Piramal Phytocare
• Rashtriya Chemicals and Fertilizers
• Supreme Industries
• Sanofi India
• Star Cement
• 3i Infotech
• Chemfab A lakhalis
• Eimco Elecon
• Elecon Engineering Company
• Elantas Beck India
• Globus Spirits

Earnings Reaction To Watch

Bharti Airtel (Q4 Consolidated, QoQ)

• Revenue up 1.8 percent to Rs 20,602 crore.
• Net profit up 24.4 percent to Rs 107 crore.
• Ebitda up 6.7 percent to Rs 6,632 crore.
• Margins at 32.2 percent versus 30.7 percent.
• Exceptional Gain of Rs 2,022 crore.
• India mobile business revenue rose 4.3 percent to Rs 10,632 crore.
• India mobile business reported strong revenue growth mostly on back rising share of 4G users

ICICI Bank (Q4, YoY)

• Net Interest Income up 26.5 percent to Rs 7,620 crore.
• Net profit down 5 percent to Rs 969 crore.
• Gross NPA at 6.7 percent versus 7.75 percent (QoQ)
• Net NPAs at 2.06 percent versus 2.58 percent (QoQ)
• Other income to Rs 3621 crore versus Rs 5,678.
• CASA ratio at 49.6 percent versus 49.3 percent (QoQ)
• Provision coverage ratio at 80.7 percent versus 60.5 percent.
• Appoints Sandeep Batra as Executive Director.

Marico (Q4 Consolidated, YoY)

• Revenue up 8.7 percent to Rs 1,609 crore.
• Net profit up 2.2 times to Rs 406 crore.
• Ebitda up 12.3 percent to Rs 283 crore.
• Margins at 17.6 percent versus 17 percent.
• Net profit higher in account of tax adjustments worth Rs 188 crore.
• Adjusted net profit up 18.6 percent to Rs 217 crore.
• India volume growth of 8 percent.

Wockhardt (Q4 Consolidated, YoY)

• Revenue down 3.8 percent to Rs 979.1 crore.
• Net loss of Rs 13.9 crore versus net loss of Rs 152.9 crore
• Ebitda at Rs 34.8 crore versus Ebidta loss of Rs 29.9 crore.
• Deferred tax reversal of Rs 35.5 crore.
• Depreciation expense up 19 percent to Rs 45 crore.
• RM as percent of sales at 21 percent versus 25 percent.
• Employee Expenses down 14 percent to Rs 191 crore.
• Board approves raising Rs 1,500 crore via equity.
• Recommends re-appointment of Dr HF Khorakiwala as executive chairman till February 2025.

Gujarat Gas (Q4 Standalone, YoY)

• Revenue up 10 percent to Rs 1907.6 crore.
• Net profit up 76.5 percent to Rs 116.5 crore.
• Ebitda up 14.1 percent to Rs 254.1 crore.
• Margins at 13.3 percent versus 12.8 percent.
• Other Income up 89 percent to Rs 18.7 crore.
• Current taxes down 57 percent to Rs 15 crore.

Godrej Agrovet (Q4 Consolidated, YoY)

• Revenue up 12.5 percent to Rs 1343.9 crore.
• Net profit up 4.5 times to Rs 113.7 crore.
• Ebitda up 1.1 percent to Rs 74.9 crore.
• Margins at 5.6 percent versus 6.2 percent.
• Exceptional gain of Rs 88.3 crore.
• RM as percent of sales at 80 percent versus 75 percent.
• Declares dividend of Rs 4.5 per share.
• Board withdrew proposed scheme of amalgamation of Astec LifeSciences with the company.

Great Eastern Shipping Corporation of India (Q4 Consolidated, YoY)

• Revenue up 26.7 percent to Rs 974.4 crore.
• Net profit at Rs 148.5 crore versus net loss of Rs 419.1 crore.
• Ebitda at Rs 408.1 crore versus Ebitda loss of Rs 3.5 crore.
• Gain of Rs 104.3 crore in current quarter due to change in fair value of contracts
• Deferred tax reversal of Rs 16.4 crore versus deferred tax of Rs 167 crore.
• Declares dividend of Rs 5.4 per share.

Thirumalai Chemicals (Q4 Consolidated, YoY)

• Revenue down 4.5 percent to Rs 315.7 crore.
• Net profit down 55.4 percent to Rs 17.7 crore.
• Ebitda down 47.1 percent to Rs 37 crore.
• Margins at 11.7 percent versus 21.2 percent.
• Inventory Loss of Rs 26.4 crore.
• RM as percent of sales at 65 percent versus 49 percent.

Navin Fluorine International (Q4 Standalone, YoY)

• Revenue up 17.2 percent to Rs 244.3 crore.
• Net profit down 8.7 percent to Rs 35.9 crore.
• Ebitda up 13.2 percent to Rs 52.2 crore.
• Margins at 21.4 percent versus 22.1 percent.
• Inventory gain of Rs 10.6 crore in base quarter.
• Other income down 35 percent to Rs 13 crore.
• RM as percent of sales at 43.3 percent versus 47.9 percent.

• HDFC Bank to consider stock split on May 22. Board will consider splitting each share into two shares.
• Astec Lifesciences withdrew its merger proposal with Godrej Agrovet. The company says it has reviewed the proposal and has decided not to pursue the scheme further at this time on the basis of interaction with multiple stakeholders across the company and Godrej Agrovet.
• Dhanuka Agritech launched three new products in domestic market ranging from herbicides to pesticides. These launches will help for cotton and chilli crop protection, and paddy growers.
• NACL entered into a long-term manufacturing contract with UPL for manufacturing agrochemical intermediates for Rs 75 crore per annum for six years, which can then be renewed further on mutually agreed terms.
• Tata Steel: The EU’s review of the Tata/ThyssenKrupp joint venture is "an open case" with "still quite some time from the decision" deadline in June, EU Competition Commissioner Margrethe Vestager said. (Bloomberg News)
• VST Tillers Tractors April’s total sales were down 29 percent at 721 units versus 1018 units, on a year on year basis. Power Tillers sale down 57 percent at 289 units versus 668 units and tractors sale up 23 percent at 432 units versus 350 units.
• L&T Technology Services: Board appointed Abhishek Sinha as Chief Operating Office of the company with effect from May 6.
• Lemon Tree Hotels opened a 49-room property in Rajasthan.
• Prabhat Telecoms: Board approved the re-appointment of Vishwamani Tiwari as Managing Director of the company till March 2024.
• Talwalakhars Healthclubs: Board accepted the resignation of the existing statutory auditors SGCO & Company LLP and Avinash Phadke as the Independent Director of the company, respectively.
• Indian Overseas Bank said that as a part of strategy to raise its capital by selling non-core assets it has identified 32 properties for sale including prime properties in Singapore and Hongkong aggregating in value to Rs 900 crore. The Bank has already initiated the process for sales of the remaining 26 properties valued at about Rs. 775 crore, as per the exchange filing.
• PNC Infratech executed share purchase agreement to sell 35 percent stake in Ghaziabad Aligarh Road Project for Rs 270 crore to Cube Highways. Due to this action the company says it will be able to recover its outstanding EPC receivables, which would result in total cash inflow of Rs 300 crore to the company.
• Firstsource Solutions appointed Richard Stagg, Chairman of Rothschild India as the company’s additional director.
• Mcleod Russel completed sale of 45 percent stake in its Rwandan arm to Borelli and Rwanda Tea Company (U.K.).
• Bharti Airtel: To transfer its VSAT business undertaking to Hughes Communications India and HCIL Comtel on a going concern basis by way of slump sale. Company did not disclose the consideration for the same.

• Brent crude traded 0.2 percent lower at $71.12 per barrel.
• West Texas Intermediate slipped 0.2 percent to $62.12 a barrel Monday.
• Gold edged higher to $1,283.27.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent to 11,690 as of 7:25 a.m.

Asian stocks fell with U.S. futures after President Donald Trump’s top trade negotiator said the U.S. plans to proceed with a tariff hike on Chinese goods on Friday. The Chinese yuan dipped.

Korean and Japanese shares slid as both markets came back online after holidays.

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