Sensex, Nifty Clock Biggest Single-Day Fall In Two Weeks

Indian equity benchmarks registered their biggest single-day drop in two weeks amid a global selloff after the U.S. President Donald Trump threatened to hike tariffs.

The S&P BSE Sensex ended 0.93 percent or 363 points lower at 38,600.34 and the NSE Nifty 50 closed below 11,600, down 0.97 percent. The NSE Nifty 500 Index closed 1.15 percent lower.

The market breadth was tilted in favour of sellers. About 1,146 stocks declined and 588 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 2.5 percent fall. On the flipside, the NSE Nifty IT Index was the only sectoral gainer, up 0.03 percent.

Security & Intelligence Services

• Stock rose as much as 16.1 percent to Rs 959.
• Trading volume was more than 13 times its 20-day average.

Deepak Nitrite

• Stock rose as much as 11.4 percent to Rs 304.15.
• Trading volume was almost 20 times its 20-day average.

Tata Chemicals

• Stock rose as much as 9.1 percent to Rs 607.05.
• Trading volume was more than 10 times its 20-day average.

Raymond

• Stock rose as much as 6 percent to Rs 805.90.
• Trading volume was more than quadruple its 20-day average.

Indian equity benchmarks traded at day’s low. The S&P BSE Sensex fell over 400 points and the NSE Nifty 50 traded at 11,576.

The NSE Nifty Metal Index fell nearly 2 percent, led by the declines in Jindal Steel & Power and JSW Steel.

Indian equity benchmarks struggled to recover amid a global selloff after the U.S. President Donald Trump threatened to hike tariffs.

The S&P BSE Sensex fell 0.8 percent or 316 points to 38,646.64 and the NSE Nifty 50 declined 0.86 percent to 11,610.

Shares of the oil marketing companies rallied after the Brent crude fell nearly 3 percent to trade below $69 a barrel.

China’s equity benchmark CSI 300 Index fell as much as 6.8 percent after the U.S. President Donald Trump plans to increase tariffs.

The Nikkei India Services Business Activity Index fell to 51 last month from 52 in March, according to a statement by research firm IHS Markit, which compiles the index. A reading below 50 indicates contraction in activity, while a number above it signals expansion.

Nifty’s 11,700 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract fell 58.33 percent to Rs 33. Over 16.02 lakh shares were added to the open interest which stood at over 23.70 lakh shares.

Shares of ONGC fell as much as 1.2 percent to Rs 168.15.

About 1.17 crore shares changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Trading volume was more than eight times its 20-day average, Bloomberg data showed.

L&T Technology Services (Q4, QoQ)

• Stock rose as much as 2.3 percent to Rs 1,729.30.
• Revenue up 2 percent to Rs 1,343.1 crore.
• Net profit up 3.2 percent at Rs 191.5 crore.
• EBIT up 1.4 percent to Rs 220.3 crore.
• EBIT margin at 16.4 percent versus 16.5 percent.
• Declared dividend of Rs 13.5 per share.

Tata Chemicals (Q4, YoY)

• Stock rose as much as 4.8 percent to Rs 583.
• Revenue up 8 percent to Rs 2,759.4 crore.
• Net profit down 65 percent to Rs 408.7 crore.
• Ebitda up 3.6 percent to Rs 530.9 crore.
• Margin at 19.2 percent versus 20.1 percent
• Declared dividend of Rs 12.5 per share
• Exceptional gain of Rs 1,266.7 crore in base quarter.

Deepak Nitrite (Q4, YoY)

• Stock rose as much as 8.7 percent to Rs 296.85.S
• Revenue up 23.7 percent to Rs 485.9 crore.
• Net profit up 2.8 times to Rs 56.6 crore.
• Ebitda up 2.2 times to Rs 108.9 crore.
• Margin at 22.4 percent versus 12.5 percent.
• Inventory gain of Rs 18.4 crore.

Birla Corporation (Q4, YoY)

• Stock rose as much as 3.1 percent to Rs 515.65.
• Revenue up 13.4 percent to Rs 1,872.8 crore.
• Net profit down 2.2 percent to Rs 128.2 crore.
• Ebitda up 20 percent to Rs 309.6 crore.
• Margin at 16.5 percent versus 15.6 percent.
• Power and fuel expenses up 29 percent to Rs 412.3 crore.
• Board approved raising Rs 150 crore via NCDs
• Declares dividend of Rs 7.5 per share.

Akzo Nobel (Q4, YoY)

• Stock rose as much as 2.9 percent to Rs 1,714.90.
• Revenue up 0.7 percent to Rs 705.6 crore.
• Net profit up 52.2 percent to Rs 70.3 crore.
• Ebitda up 48.2 percent to Rs 103.6 crore.
• Margin at 14.7 percent versus 10 percent.
• Employee expenses down 26 percent to Rs 59.9 crore.
• Declares dividend of Rs 24 per share.

Central Depository Services (Q4, YoY)

• Stock fluctuated between gains and losses to trade little changed at Rs 232.75.
• Revenue up 1 percent to Rs 50.4 crore.
• Net profit up 30.2 percent to Rs 33.6 crore.
• Other income up 51 percent to Rs 17.7 crore.

Cholamandalam Financial Holdings (Q4, YoY)

• Stock fell as much as 1.4 percent to Rs 507.75.
• Revenue at Rs 36.45 crore versus Rs 35.59 crore
• Net profit at Rs 34.26 crore Versus Rs 33.6 crore.

Federal Bank (Q4, YoY)

• Stock rose as much as 4.5 percent to Rs 102.
• Net interest income up 17.49 percent to Rs 1,096.53 crore.
• Net profit up 163 percent to Rs 381.51 crore.
• Net NPAs at 1.48 percent versus 1.72 percent (QoQ).
• Gross NPAs at 2.92 percent versus 3.14 percent (QoQ).
• Provisions at Rs 178 crore versus Rs 190 crore (QoQ).

NIIT Tech (Q4, QoQ)

• Stock fell as much as 1.5 percent to Rs 1,249.
• Revenue up 0.1 percent to Rs 972 crore.
• Profit up 27.7 percent to Rs 114.4 crore.
• EBIT at Rs 141.4 crore versus RS 149 crore.
• EBIT margin at 14.5 percent versus 15.3 percent.

PTC India Financial Services (Q4, YoY)

• Stock fell as much as 0.3 percent to Rs 69.
• Revenue up 11.5 percent to Rs 330.81 crore.
• Net profit at Rs 36.75 crore versus net loss of Rs 264.67 crore.
• Gross NPA reduced to 6.04 percent versus 6.85 percent (QoQ).
• Net NPA reduced to 3.12 percent versus 3.29 percent (QoQ).

Shares of the telecom operator fell as much as 1.5 percent to Rs 326.50 ahead of its results announcement.

Here’s what analysts tracked by Bloomberg expects the company to report on a sequential basis:

• Revenue seen up 0.4 percent higher at Rs 20,606 crore.
• Ebitda seen 1 percent higher at Rs 6,283 crore.
• Margin seen at 30.5 percent versus 30.3 percent.
• Net loss seen at Rs 1,028 crore versus net profit of Rs 86 crore.

Besides, its Africa unit is said to raise about $1 billion from London listing and target a trading debut in June. The unit is seeking an equity valuation of about $5 billion, Bloomberg reported citing unidentified sources.

Shares of the FMCG company fell as much as 1.9 percent to Rs 1,661.20.

India’s largest consumer goods’ net profit rose 13.8 percent year-on-year to Rs 1,538 crore in the January-March period, according to its exchange filing. (Read the full story here)

Key Earnings Highlights (Q4, YoY)

• Revenue up 9.3 percent to Rs 9,945 crore.
• Ebitda up 13.2 percent to Rs 2,314 crore.
• Margin at 23.3 percent versus 22.5 percent.
• Volume growth at 7 percent.

Here’s what analysts had to say after HUL’s results announcement:

Jefferies

• Maintained ‘Hold’; hiked price target to Rs 1,820 from Rs 1,770.
• March quarter review: better than peers but not good enough.
• The 7 percent volume growth on a high base was a positive surprise; pace of margin expansion was tad below.
• Valuation remains rich given rural demand slowdown and slower pace of margin expansion.

Kotak Securities

• Maintained ‘Reduce’; cut price target to Rs 1,575 from Rs 1,600.
• March quarter earnings were below expectations but ahead of peers.
• Home care shines again, food & refreshment steady, personal care weak.
• Commentary confirming short-term demand pressures; remain absolute-cautious.

CLSA

• Maintained ‘Outperform’; cut price target to Rs 1,950 from Rs 2,010.
• March quarter was slightly below estimates; stellar home care, but weak personal care.
• Volume growth of 7 percent looks good in the context of peer performance.
• Marked shift in near-term outlook as growth rates have moderated.

Shares of the drugmaker fell as much as 3.6 percent to Rs 292.85, the lowest since February 2015.

The Ahmedabad-based company received 14 observations on its formulations manufacturing facility in Moraiya, Ahmedabad (Gujarat) from U.S. FDA, according to its exchange notification. The company said that there were no repeat observations or data integrity related observations.

Trading volume was almost 15 times its 20-day average, Bloomberg data showed. The Relative Strength Index was below 30, indicating that the stock may be overbought.

Indian equity benchmarks opened lower, mirroring the losses in their Asian peers, after the U.S. President Donald Trump’s threat to increase tariffs on Chinese imports cast a cloud over talks this week that were expected to finalise a trade deal.

The S&P BSE Sensex fell as much as 453.47 points or 1.16 percent to 38,509.79 and the NSE Nifty 50 fell as much as 1.09 percent to 11,585.10. The broader market index represented by the NSE Nifty 500 Index fell as much as 1.02 percent.

The market breadth was tilted in favour of sellers. About 1,099 stocks declined and 348 shares advanced on National Stock Exchange.

All the sectoral gauges compiled by NSE fell, led by the NSE Nifty Metal Index’s 1.94 percent decline.

With inputs from Bloomberg.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.27 percent to 69.40 against the greenback.

Hong Kong’s equity benchmark Hang Seng Index fell as much as 3.74 percent or 1,125 points.

Futures: May Series

• Nifty futures closed trading at 11,764.3, premium of 52 points versus 40.7 points
• Nifty open interest up 0.5 percent, adds 99,000 shares in open interest

Bank Nifty

• Bank Nifty futures closed trading at 30060.7, premium of 106.6 points versus 90.7 points
• Bank Nifty open interest up 3 percent, adds 45k,000 shares in open interest

Options

• Nifty PCR at 1.49 (across all series)

Nifty Weekly Expiry May 9

• Max open interest concentration at 11,800C (23.5 lakh shares), 11,700P (16.8 lakh shares)
• Max open interest addition seen at 11,800C (+6.9 lakh shares) and 11,850C (+5 lakh shares)

Nifty Monthly Expiry May 30

• Max open interest on Put side at 11,000 (22 lakh shares)
• Max open interest on call side at 12,500 (13.2 lakh shares)
• Max open interest addition seen at 12,500C (+2.4 lakh shares)

Stocks In F&O Ban

• Jet Airways

On Hindustan Unilever

Jefferies

• Maintained ‘Hold’; hiked price target to Rs 1,820 from Rs 1,770.
• March quarter review: better than peers but not good enough.
• The 7 percent volume growth on a high base was a positive surprise; pace of margin expansion was tad below.
• Valuation remains rich given rural demand slowdown and slower pace of margin expansion.

Kotak Securities

• Maintained ‘Reduce’; cut price target to Rs 1,575 from Rs 1,600.
• March quarter earnings were below expectations but ahead of peers.
• Home care shines again, food & refreshment steady, personal care weak.
• Commentary confirming short-term demand pressures; remain absolute-cautious.

CLSA

• Maintained ‘Outperform’; cut price target to Rs 1,950 from Rs 2,010.
• March quarter was slightly below estimates; stellar home care, but weak personal care.
• Volume growth of 7 percent looks good in the context of peer performance.
• Marked shift in near-term outlook as growth rates have moderated.

On Federal Bank

Kotak Securities

• Maintained ‘Buy’; hiked price target to Rs 130 from Rs 115.
• The best in 16 quarters; solid performance across the board.
• Loan growth healthy at 18 percent; asset quality showing improving trends.
• Few more quarters of consistent performance should aid RoA/RoE recovery.

Citi on Federal Bank

• Maintained ‘Neutral’; hiked price target to Rs 110 from Rs 90.
• Healthy growth and asset quality.
• Margin outlook stable; CASA slow.
• Fee income, gain on sale aid pre-provisioning operating profit growth.

More Calls

• Morgan Stanley on LIC Housing
• Maintained ‘Equal-weight’ with a price target of Rs 500.
• March quarter review: NIM surprised; but sharp rise in NPLs is the key concern.
• Non-housing loans continue to drive growth which will be viewed negatively.
• Valuation looks cheap, but growth mix and rising NPLs led to Equal-weight rating.

CLSA on Godrej Consumer

• Upgraded to ‘Buy’ from ‘Underperform’; maintained price target at Rs 800.
• March quarter earnings were much below estimates; Upgraded to ‘Buy’ due to fall in stock price.
• Weak domestic, but international gradually stabilising.
• Worst seems behind and confident of management’s strategy to revive growth rates.
• Stock may stay rangebound near term until there is pick-up in growth and earnings.

Citi on L&T Infotech

• Maintained ‘Buy’; cut price target to Rs 2,010 from Rs 2,050.
• Weak finish to a strong 2018-19.
• Expect company to deliver better growth rates in the current financial year.
• Weakness in top client is a sign of worry.

Citi on United Breweries

• Maintained ‘Buy’ with a price target of Rs 1,620.
• Positive read-through on quarterly volumes from Carlsberg conference call.
• Mid-single digit volume growth impacted by slower March.
• Volumes strong in Jan and Feb, slowdown in March, April volumes characterised as ‘ok’.

• ITD Cementation: Franklyn Templeton MF acquired 25 lakh shares or 1.46 percent equity at Rs 122 each.
• Ruchi Soya Industries: JM Financial Products sold 25 lakh or 0.75 percent equity at Rs 8.95 each.

Nifty Results To Watch

• Bharti Airtel
• ICICI Bank

Other Results To Watch

• Mahindra CIE Automotive
• Marico
• Bharat Bijlee
• Navin Fluorine International
• Firstsource Solutions
• Thirumalai Chemicals
• Wockhardt
• Expleo Solutions
• Fortis Malar Hospitals
• Godrej Agrovet
• Great Eastern Shipping
• Gujarat Gas
• Hindustan Composites
• Pitti Engineering

Earnings Reaction To Watch

HUL (Q4, YoY)

• Revenue up 9.3 percent to Rs 9,945 crore.
• Net profit up 13.8 percent to Rs 1,538 crore.
• Ebitda up 13.2 percent to Rs 2,314 crore.
• Margin at 23.3 percent versus 22.5 percent.
• Volume growth at 7 percent.

L&T Technology Services (Q4, QoQ)

• Revenue up 2 percent to Rs 1,343.1 crore.
• Net profit up 3.2 percent at Rs 191.5 crore.
• EBIT up 1.4 percent to Rs 220.3 crore.
• EBIT margin at 16.4 percent versus 16.5 percent
• Declared dividend of Rs 13.5 per share

Tata Chemicals (Q4, YoY)

• Revenue up 8 percent to Rs 2,759.4 crore.
• Net profit down 65 percent to Rs 408.7 crore.
• Ebitda up 3.6 percent to Rs 530.9 crore.
• Margin at 19.2 percent versus 20.1 percent
• Declared dividend of Rs 12.5 per share
• Exceptional gain of Rs 1,266.7 crore in base quarter.

Deepak Nitrite (Q4, YoY)

• Revenue up 23.7 percent to Rs 485.9 crore.
• Net profit up 2.8 times to Rs 56.6 crore.
• Ebitda up 2.2 times to Rs 108.9 crore.
• Margin at 22.4 percent versus 12.5 percent.
• Inventory gain of Rs 18.4 crore.

Birla Corporation (Q4, YoY)

• Revenue up 13.4 percent to Rs 1,872.8 crore.
• Net profit down 2.2 percent to Rs 128.2 crore.
• Ebitda up 20 percent to Rs 309.6 crore.
• Margin at 16.5 percent versus 15.6 percent.
• Power and fuel expenses up 29 percent to Rs 412.3 crore.
• Board approved raising Rs 150 crore via NCDs
• Declares dividend of Rs 7.5 per share.

Akzo Nobel (Q4, YoY)

• Revenue up 0.7 percent to Rs 705.6 crore.
• Net profit up 52.2 percent to Rs 70.3 crore.
• Ebitda up 48.2 percent to Rs 103.6 crore.
• Margin at 14.7 percent versus 10 percent.
• Employee expenses down 26 percent to Rs 59.9 crore.
• Declares dividend of Rs 24 per share.

Central Depository Services (Q4, YoY)

• Revenue up 1 percent to Rs 50.4 crore.
• Net profit up 30.2 percent to Rs 33.6 crore.
• Other income up 51 percent to Rs 17.7 crore.

Cholamandalam Financial Holdings (Q4, YoY)

• Revenue at Rs 36.45 crore versus Rs 35.59 crore
• Net profit at Rs 34.26 crore Versus Rs 33.6 crore

Federal Bank (Q4, YoY)

• Net interest income up 17.49 percent to Rs 1,096.53 crore.
• Net profit up 163 percent to Rs 381.51 crore.
• Net NPAs at 1.48 percent versus 1.72 percent (QoQ)
• Gross NPAs at 2.92 percent versus 3.14 percent (QoQ)
• Provisions at Rs 178 crore versus Rs 190 crore (QoQ)

NIIT Tech (Q4, QoQ)

• Revenue up 0.1 percent to Rs 972 crore.
• Profit up 27.7 percent to Rs 114.4 crore.
• EBIT at Rs 141.4 crore versus RS 149 crore.
• EBIT margin at 14.5 percent versus 15.3 percent.

PTC India Financial Services (Q4, YoY)

• Revenue up 11.5 percent to Rs 330.81 crore.
• Net profit at Rs 36.75 crore versus net loss of Rs 264.67 crore.
• Gross NPA reduced to 6.04 percent versus 6.85 percent (QoQ).
• Net NPA reduced to 3.12 percent versus 3.29 percent (QoQ).

• Cadila Healthcare: Received 14 observations on its formulations manufacturing facility in Moraiya, Ahmedabad (Gujarat) from U.S. FDA. The company said that there were no repeat observations or data integrity related observations.
• Bharti Airtel: Africa unit is said to raise about $1 billion from London listing and target a trading debut in June. The unit is seeking an equity valuation of about $5 billion: Bloomberg
• Vodafone Idea: Signed a $700-800 million (Rs 4,900 crore-5,600 crore) 5-year technology outsourcing contract with IBM.
• Indiabulls Housing Finance: Lakshmi Vilas Bank, Indiabulls amend merger proposal agreement.
• Hyderabad Industries: Commenced the final phase production of its pipe and fittings at Gujarat plant. This phase of production will add capacity of 2,916 million tonne per annum.
• Amber Enterprises: Completed the acquiring 80 percent stake in Sidwal Refrigeration with effect from May 2. The company had acquired 36,000 shares in the target company aggregating to Rs 3.6 crore.
• Deepak Fertilisers and Petrochemicals: Board to consider terms and conditions in issue of FCCBs on May 8.
• Apollo Tyres: Central Government approved appointment of Neeraj Kanwar as Managing Director of the company with effect from May 28 till March 202
• ONGC: Restored operations at its field off India’s east coast after Cyclone ‘Fani’ made landfall without causing any disruption to its offshore installations.
• Tata Teleservices: Clarified on the news of Department of Telecommunications calling for guarantees for its merger with Airtel, stating that order was issued by TDSAT in petition filed by Bharti Airtel and the company was not a party to the petition.
• EID Parry: Board to consider raising Rs 300 crore via NCDs on May 8
• Canara Bank: ICRA downgraded ratings of AT-I – Basel III from AA to AA- (Stable). ICRA downgrades ratings of AT-II bonds, Basel III from AAA to AA+ (Stable). ICRA downgraded and withdrew ratings of lower Tier-II bonds
• IndiGrid to buy $1.66 billion of Sterlite assets after capital infusion by KKR, GIC.
• DHFL: Board approved fund raising of up to Rs 2,000 crore via one or more tranches.
• Tata Steel: ThyssenKrupp said on Sunday it still saw scope for agreement with European antitrust regulators on a planned joint venture with Tata Steel despite a Financial Times report that Brussels was likely to block the deal. (Reuters)
• Infibeam Avenues: Served termination notice to joint statutory auditor S.R.B.C & CO, LLP on the grounds of sharing company’s unpublished price sensitive information with personal email accounts of their team and third party on multiple occasions leading to breach of trust and loss of faith. M/s Shah & Taparia, chartered accountants will continue to be the statutory auditors.
• Yes Bank: ICRA downgraded credit rating on various debt instruments of the lender citing significant increase in below rated advances and given the deterioration in credit profile of some of its larger borrowers. The rating downgrade also factors in the further weakening in Yes Bank’s core equity (CET-I) capital cushions because of the voluntary provisions and consequent losses in March quarter. Besides, RBI imposed a penalty of Rs 11.25 lakh due to violations in issuance and operation of prepaid instruments.

• Chinese Vice Premier Liu He is scheduled to return to Washington for trade talks on Wednesday.
• The Reserve Bank of Australia meets to set interest rates Tuesday, while New Zealand central bank does the same the following day.
• China releases trade data Wednesday, and the U.S. does so on Thursday.
• South Africa holds national elections Wednesday.
• European Union leaders gather Thursday to discuss policy priorities for the coming five years.
• China reports on inflation Thursday. The U.S. releases the April CPI report Friday.
• South Korea’s markets are closed Monday for a holiday.

• Brent crude traded 2.7 percent lower at $68.96 per barrel.
• West Texas Intermediate crude fell 2.2 percent to $60.58 a barrel.
• Gold added 0.4 percent to $1,283.73 an ounce.

London Metal Exchange

• Copper ended a two-day fall, closed 1.12 percent higher.
• Aluminium ended lower after gaining for two days, down 1.13 percent.
• Copper halted a four-day losing streak, closed 0.45 percent higher.
• Tin halted a four-day losing streak, closed 0.26 percent higher.
• Zinc halted a two-day losing streak, closed 1.46 percent higher.
• Lead ended higher for the second day, closed 1.3 percent higher.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.65 percent to 11,684.50 as of 8:25 a.m.

The equity markets were roiled after President Donald Trump’s threat to increase tariffs on Chinese imports cast a cloud over talks this week that were expected to finalise a trade deal.

Chinese shares tumbled more than 3.5 percent when the market opened after a holiday. Futures on the S&P 500 Index sank more than 2 percent

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