Sensex Posts Biggest Single Day Gain In Over A Month Led By IT Stocks

Indian equity benchmarks rebounded sharply from losses in the previous session led by strong gains in IT companies and private sector lenders.

The S&P BSE Sensex rose 0.93 percent or 318 points, its biggest single day gain since April 5, to 34,663 and the NSE Nifty 50 index climbed 0.8 percent or 83 points to 10,514.

Ten out of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Auto index's 1.56 percent drop. On the other hand, the S&P BSE IT index was the top gainer, up 2.45 percent.

The mid- and small-cap shares underperformed their larger peers as the S&P BSE MidCap index fell 0.2 percent and the S&P BSE MidCap index declined 0.1 percent.

NCC: The Hyderabad-based construction company rose as much as 6.3 percent to Rs 112 after it profit met Bloomberg consensus estimates in March quarter.

Key earnings highlights:

• Net profit up 61 percent at Rs 103 crore versus estimate of Rs 111 crore
• Revenues up 12 percent at Rs 2,395 crore versus Rs 2,139 crore (YoY)
• EBITDA up 75 percent at Rs 305 crore versus Rs 174 crore (YoY)
• Margins at 12.7 percent versus 8.1 percent (YoY)
• Target to receive new orders worth Rs 14,000 crore in FY19
• Target 45 percent revenue growth in FY19 to Rs 11,000 crore

Kaveri Seed Company: The Secunderabad-based hybrid seed producer rose as much as 6.3 percent, the most in over three months, to Rs 502.60 after couple of block deals in yesterday's session.

MEP Infra: The Mumbai-based toll management company rose as much as 7.5 percent to Rs 81.95 after it raised foreign investment limit to 100 percent from 24 percent.

Varun Beverages: The Gurugram-based bottler of PepsiCo India rose as much as 5.33 percent to record high of Rs 747.85. The stock has been on an upmove since last three trading session and it has risen more than 10 percent.

Shares of the Delhi-based natural gas distributor fell as much as 3.17 percent to Rs 312.70 after its profit missed Bloomberg consensus estimates in the March quarter.

Key earnings highlights:

• Net profit at Rs 1,020 crore versus estimate of Rs 1,340 crore
• Revenue at Rs 15,430 crore versus estimate of Rs 14,470 crore

Shares of the Gurugram-based cement maker rose as much as 7.34 percent, the most in over three months, to Rs 151.45 after it reported March quarter earnings.

Key earnings highlights:

• Margin at 22.6 percent versus 14.1 percent (YoY)
• EBITDA up 51 percent at Rs 119.9 crore versus Rs 79.4 crore (YoY)
• Revenue up 15 percent at Rs 531.3 crore versus Rs 463 crore (YoY)
• Net profit up 40 percent at Rs 52 crore versus Rs 37 crore (YoY)

Windfall Tax is a bad move on the part of the government, Oil and gas expert Kirit Parikh told BloombergQuint in an interview.

Key highlights from the conversation:

• Central government needs to reduce excise and state governments need to reduce VAT.
• Government should reduce excise duty by Re 1.

Shares of the ceramic maker extended decline for the fifth trading session, its longest losing streak since April 30. The stock fell as much as 7.3 percent to Rs 506.30 apiece after the results announcement.

Key earnings highlights (Q4, YoY):

• Net Profit down 6 percent at Rs 23.5 crore.
• Revenue down 5 percent at Rs 527 crore.
• Ebitda down 6 percent at At Rs 46 crore.
• Margin At 8.7 percent versus 8.8 percent.

Shares of ONGC fell as much as 11.6 percent, the most in nearly three years to Rs 155.15 after PTI reported that the government might levy a windfall tax on oil producers like Oil and Natural Gas Corp (ONGC) as part of a permanent solution.

Concerns surrounding global trade hung over markets on Thursday, with European stocks edging upward, U.S. futures drifting and Asian shares declining. The yield on 10-year Treasuries stabilized around 3 percent, while the euro gained.

U.K. market will be challenging for Jaguar Land Rover as it goes through Brexit, PB Balaji, group CFO at Tata Motors told BloombergQuint in an interview.

Key conversation highlights:

• Number one priority is to get growth back
• JLR needs to get its operating metrics better
• Passenger vehicle business need to get the capex and product pipeline right
• There is absolutely no equity needed, we have good debt to Ebitda level
• JLR has undrawn facilities and have good liquidity for the next 10 years
• We have called out for divestment of non-core assets
• As far as U.K. is concerned by 2029 majority of the portfolio will go electric and by 2020 every brand will have one electric car
• We welcome the duty changes in China and we are working with Chinese partner for local manufacturing
• No addiitonal investment to come into China at this point in time.
• Our vision is to become part of top three, a podium finish is important.
• Working on supply chain in the CV business, working on vendor consolidation.
• Two things that are of worry for CV business - Inflation and interest rates.
• The basic milestone for Turnaround 2.0 is to declare dividend, we are away from that.
• Changed the dividend policy of JLR in line with the policy of other auto companies.

Watch the full conversation here:

Shares of the Hyderabad-based construction company rose as much as 6.3 percent to Rs 112 after it profit met Bloomberg consensus estimates in March quarter.

Key earnings highlights:

• Net profit up 61 percent at Rs 103 crore versus estimate of Rs 111 crore
• Revenues up 12 percent at Rs 2,395 crore versus Rs 2,139 crore (YoY)
• EBITDA up 75 percent at Rs 305 crore versus Rs 174 crore (YoY)
• Margins at 12.7 percent versus 8.1 percent (YoY)
• Target to receive new orders worth Rs 14,000 crore in FY19
• Target 45 percent revenue growth in FY19 to Rs 11,000 crore

• Indian equity benchmarks extended gains led by information technology and pharma shares.
• The S&P BSE Sensex rose 0.63 percent or 218 points to 34,560 and the NSE Nifty 50 index gained 0.5 percent or 52 points to 10,482.
• The broader markets were underperforming the benchmarks as the S&P BSE SmallCap and S&P BSE MidCap indexes were trading with a negative bias.
• The overall market breadth was marginally positive as 1,231 shares were advancing while 1,164 were declining on the BSE.

Click here for more stock market statistics

• A gauge of IT stocks on the NSE — Nifty IT index rose 2 percent led by Infosys' nearly 3 percent gain.

• Avenue Supermarts has 43 lakh shares or 3.4 percent equity change hands in a block.

Buyers and sellers were not immediately known

Source: Bloomberg

• Shares of the country's largest public-sector lender has risen 12.3 percent, in last four days, to Rs 268.30.

Shares of the state-run natural gas distributor swung between gains and losses and traded at Rs 317 ahead of its results announcement.

Here's what to watch out for:

• Net profit seen rising rise 6 percent to Rs 1,343 crore versus Rs 1,262 crore (QoQ)
• Revenues seen rising 9 percent to Rs 14,470 crore versus Rs 14,414 crore (QoY)
• Ebitda expected to increase 9 percent to Rs 2,154 crore versus 1,555 crore.

• Marico has 61 lakh shares change hands in a block deal. Stock up 2.13 percent to Rs 317.

Buyers and sellers were not immediately known

Source: Bloomberg

• Sun Pharma has 10 lakh shares change hands in a block. Stock up 3.7 percent at Rs 469.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Kolkata-based innerwear maker rose as much as 8.3 percent to Rs 470 after it reported March quarter earnings.

Key earnings highlights:

• Revenue up 10.1 percent at Rs 420.3 crore.
• Net profit up 70.5 percent at Rs 39.9 crore.
• Ebitda up 66.7 percent at Rs 67.5 crore.
• Margin at 16.1 percent.

Shares of the Kolkata-based paint maker rose as much as 4.64 percent to Rs 124 after its board agreed to increase FII/PI limit in the company to 49 percent from 24 percent.

Based on recommendations of Banks Board Bureau, the government rejigged top managements of three state-run lenders. banking secretary tweeted.

• Government appoints Tapan Ray as non-executive chairperson of Central Bank of India
• Government appoints Anjali Bansal as non-executive chairperson of Dena Bank
• Government appoints Dr Charan Singh as non-executive chairperson of Punjab & Sind Bank

Shares of the Tamil Nadu-based private sector lender fell as much 4.6 percent to Rs 176 after it reported March quarter earnings.

Key earnings highlights:

• Net profit up 17.8 percent at Rs 152 crore versus Rs 129 crore (YoY)
• NII up 18.3 percent at Rs 368 crore versus Rs 311 crore (YoY)
• Gross NPAs at 3.03 percent versus 3.30 percent (QoQ)
• Net NPAs at 1.70 percent versus 1.74 percent (QoQ)
• Board approves bonus issue; to give 1 bonus share for every 10 held
• Provisions at Rs 86 crore versus Rs 85.6 crore (QoQ); Rs 71 crore (YoY)

Shares of the Mumbai-based film producer and distributor rose as much as 10.39 percent, the most in over four months, to Rs 131.25 after its net profit rose 80 percent in March quarter.

Key earnings highlights:

• Revenue up 32 percent at Rs 239 crore.
• Net profit up 79 percent at Rs 61 crore.
• Ebitda up 129 percent at Rs 90.5 crore.
• Margin at 37.9 percent.

Shares of the Mumbai-based crop protection company fell as much as 4 percent to Rs 4,350 after it reported loss in March quarter.

Key earnings highlights:

• Revenue up 39.5 percent at Rs 300 crore.
• Net loss of Rs 13 crore.
• Ebitda loss at Rs 16.5 crore.

Shares of the Delhi-based pipe fittings and sprinkler maker surged as much as 10 percent to Rs 628.65 after its profit more than doubled in March quarter.

Key earnings highlights:

• Revenue up 16 percent at Rs 74 crore.
• Net profit up 140 percent at Rs 12 crore.
• Other income of Rs 6 crore in the current quarter.
• Ebitda up 14 percent at Rs 12 crore vs Rs 10.5 crore.
• Margin at 16.2 percent from 16.4 percent.

Shares of the Secunderabad-based hybrid seed producer rose as much as 6.3 percent, the most in over three months, to Rs 502.60 after couple of block deals in yesterday's session.

• Pabrai Investment Fund II bought 7.79 lakh shares or 1.2 percent equity at Rs 487.29 each.
• BNP Paribas Arbitrage sold 7.42 lakh shares or 1.1 percent equity at Rs 488 each.

Shares of the Mumbai-based airline fell as much as 12 percent to a 15-month low of Rs 370 after it reported a surprise loss in March quarter on higher fuel expenses and currency fluctuations.

Key earnings highlights:

• Revenue up 9 percent at Rs 5,925 crore
• Net loss of Rs 1,036 crore versus profit of Rs 602.42 crore
• Ebitdar loss at Rs 178 crore

Meanwhile, the company’s auditors said the financial statement was prepared on a “going concern basis” as they expect various initiatives – from cutting costs to enhancing ancillary revenues – to improve its operating performance.

Shares of the Mumbai-based automobile maker fell as much as 8.2 percent to hit fresh two year low of 284 after its profit missed Bloomberg consensus estimates in March quarter.

Tata Motors consolidated net profit fell 50 percent to Rs 2,125 crore compared with expectation of Rs 3,750 crore estimated by analysts that Bloomberg tracks.

Key earnings highlights:

• Revenue up 18 percent at Rs 91,279 crore.
• Net profit down 50 percent at Rs 2,125 crore.
• Ebitda up 4 percent at Rs 11,250 crore.
• Margin at 12.3 percent vs 14 percent.

Indian equity benchmarks edged higher led by gains in IT heavyweights like Infosys, Tech Mahindra and HCL Technologies.

The S&P BSE Sensex rose 0.37 percent or 125 points to 34,470 and the NSE Nifty 50 index advanced 0.31 percent or 31 points to 10,460.

Seventeen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Information Technology index's 1.35 percent gain. On the flipside, the S&P BSE Oil & Gas index was the top loser, down 0.42 percent.

The broader markets were outperforming their larger peers as the S&P BSE MidCap and the S&P BSE SmallCap indexes advanced 0.5 percent each.

Seth Freeman, senior MD of GlassRatner & Capital told BloombergQuint in an interview that most economists are expecting three rate hikes from the U.S. Fed this year.

Key conversation highlights:

• Premium on debt in India expensive, investors will stay in equities for some time
• Net oil importers like India will face double whammy with dollar strengthening, oil rising

• Rupee opened higher at 68.33 per U.S. dollar against yesterday's close of 68.42.

Brokerages On Tata Motors

CLSA

• Maintained ‘Sell’; cut price target to Rs 295 from Rs 330.
• Margins of both JLR and India operations missed estimates.
• JLR outlook remains weak and margin commentary was subdued.
• Cut EPS estimates for the current and the next financial year by 7 percent and 8 percent respectively to factor in lower volume and margin and higher depreciation for JLR.

Jefferies

• Maintained ‘Buy’; cut price target to Rs 440 from Rs 510.
• Near-term demand outlook for JLR remains challenging.
• Strong macro and likely improvement in market share trends aiding standalone business.
• “Undemanding valuation” post steep correction makes risk-reward favorable in our view.

Other Brokerage Calls

Kotak On Motherson Sumi

• Maintained ‘Sell’ with a price target of Rs 265.
• Q4 results marginally better than estimates but internals quite weak.
• New orders won by SMRPBV is flattened over past couple of years.
• Orderbook could lead to slowdown in revenue growth of the company.

Edelweiss On Grasim

• Maintained ‘Buy’ and cut price target to Rs 1,332 from Rs 1,416.
• Cost-led disappointment in viscose staple fibre business offset by improved realisation in chemicals segment.
• VSF margin dipped due to impact of high cost and low volumes.

Nomura On CESC

• Maintained ‘Neutral’ with a price target of Rs 948.
• Turnaround of Chandrapur and Spencer’s well in progress.
• Earnings of renewables and distribution franchisees disappoint.
• Conclusion of business restructuring exercise is near term focus.

Nomura On Indraprastha Gas

• Maintained ‘Buy’ with a price target of Rs 425.
• Q4 results met estimates but recent rupee weakness a concern.
• Overall volume growth of 11 percent lower than 12-16 percent over past 7-8 quarters.
• Near-term focus will be on the ongoing city gas distribution licensing.

Credit Suisse On JM Financial

• Initiated coverage with ‘Neutral’ rating with a price target of Rs 150.
• Growing corporate loan book, along with a recent foray into home loans.
• Lending business generates superior return on assets on higher yields and lower credit costs versus peers.
• JM ARC has a better track record of resolutions versus peers.

Credit Suisse On AB Capital

• Initiated coverage with ‘Outperform’ rating and a price target of Rs 175.
• Life insurance business is showing improving profitability.
• Key catalyst for lending business could be an upgrade in credit rating.

Who’s Meeting Whom

• Greaves Cotton to meet fund houses including Amansa Capital and ICICI Pru MF on May 24.
• Balaji Telefilms to meet fund houses including IIFL Capital and Axis Cap between May 24 – 31.
• Mahindra CIE to meet Deutsche Bank on May 24.
• Ramco Systems to meet fund houses including Sundaram MF, Goldman Sachs, and Franklin Templeton on May 24.

Insider Trades

• Man Infrastructure promoter Vatsal Shah acquired 15,652 shares on May 22.
• Alembic Pharma promoter Alembic acquired 25,000 shares on May 21.
• Avenue Supermarts promoter Radhakishan Damani sold 11.43 lakh shares from May 21 – 23.

Trading Tweaks

• Alok Industries placed under additional surveillance.

Bulk Deals

Kaveri Seed

• Pabrai Investment Fund II bought 7.79 lakh shares or 1.2 percent equity at Rs 487.29 each.
• BNP Paribas Arbitrage sold 7.42 lakh shares or 1.1 percent equity at Rs 488 each.

Indian Terrain Fashions

• Malabar India Fund bought 10 lakh shares or 2.6 percent equity at Rs 180 each.
• DSP Blackrock MF sold 9.99 lakh shares or 2.6 percent equity at Rs 180 each.

F&O Cues

• Nifty May futures closed trade at 10,427, a discount of 3 points versus premium of 16 points earlier.
• Maximum call open interest at 10,800 strike; open interest at 55.5 lakh shares.
• Maximum put open interest at 10,500 strike; open interest at 45.9 lakh shares.

Active Stock Futures

• GAIL

Other Earnings To Watch

• City Union Bank
• Cochin Shipyard
• Cummins India
• Glaxosmithkline Pharmaceuticals
• Granules India
• HeidelbergCement India
• Heritage Foods
• Kaveri Seed Company
• Moil
• NCC
• Pidilite Industries
• Sequent Scientific
• Somany Ceramics
• Triveni Engineering Industries
• United Breweries
• United Spirits
• V-Mart Retail
• Zydus Wellness

Tata Motors (Q4, YoY)

• Revenue up 18 percent at Rs 91,279 crore.
• Net profit down 50 percent at Rs 2,125 crore.
• Ebitda up 4 percent at Rs 11,250 crore.
• Margin at 12.3 percent vs 14 percent.

Apollo Pipes (Q4, YoY)

• Revenue up 16 percent at Rs 74 crore.
• Net profit up 140 percent at Rs 12 crore.
• Other income of Rs 6 crore in the current quarter.
• Ebitda up 14 percent at Rs 12 crore vs Rs 10.5 crore.
• Margin at 16.2 percent from 16.4 percent.

Repco Home Finance (Q4, YoY)

• Net interest income up 11 percent at Rs 122 crore.
• Net profit up 12 percent at Rs 57 crore.

Sunteck Realty (Q4, YoY)

• Revenue up 50 percent at Rs 207 crore.
• Net profit up 140 percent at Rs 12 crore.
• Ebitda up 59 percent at Rs 107.4 crore.
• Margin at 51.9 percent from 48.9 percent.

Jet Airways (Q4, YoY)

• Revenue up 9 percent at Rs 5,925 crore.
• Net loss of Rs 1,036 crore.
• Ebitdar loss at Rs 178 crore.

Jain Irrigation (Q4, YoY)

• Revenue up 26 percent at Rs 2,778 crore.
• Net profit up 26 percent at Rs 97 crore.
• Ebitda up 24 percent at Rs 401 crore.
• Margin at 14.4 percent from 14.7 percent.

Bayer Cropscience (Q4, YoY)

• Revenue up 39.5 percent at Rs 300 crore.
• Net loss of Rs 13 crore.
• Ebitda loss at Rs 16.5 crore.

Eros International Media (Q4, YoY)

• Revenue up 32 percent at Rs 239 crore.
• Net profit up 79 percent at Rs 61 crore.
• Ebitda up 129 percent at Rs 90.5 crore.
• Margin at 37.9 percent.

KPIT Tech (Q4,QoQ)

• Revenue up 6 percent at Rs 966 crore.
• Net profit up 23 percent at Rs 76 crore.
• EBIT up 8 percent at Rs 84 crore.
• Margin at 8.7 percent.

SML Isuzu (Q4, YoY)

• Revenue up 0.6 percent at Rs 368.1 crore.
• Net profit up 56.8 percent at 14.9 crore.
• Ebitda up 35.8 percent at Rs 24.3 crore.
• Margin at 6.6 percent versus 4.9 percent.

Natco Pharma (Q4, YoY)

• Revenue up 36 percent at Rs 768 crore.
• Net profit up 69.5 percent at Rs 300 crore.
• Ebitda up 58.9 percent at Rs 383.5 crore.
• Margin at 49.9 percent versus 42.7 percent.

Rupa (Q4, YoY)

• Revenue up 10.1 percent at Rs 420.3 crore.
• Net profit up 70.5 percent at Rs 39.9 crore.
• Ebitda up 66.7 percent at Rs 67.5 crore.
• Margin at 16.1 percent.

L&T Infotech (Q4, QoQ)

• Revenue up 6 percent at Rs 2,001 crore.
• Net profit up 2 percent at Rs 289.5 crore.
• EBIT down 9 percent at Rs 255.5 crore.
• Margin at 12.8 percent.

IGL (Q4 QoQ)

• Revenue up 4 percent at Rs 1,233 crore.
• Net profit up 5 percent at Rs 174 crore.
• Ebitda up 11 percent at Rs 291 crore.
• Margin at 23.6 percent.

Shipping Corporation of India (Q4, YoY)

• Revenue up 2 percent at Rs 917 crore.
• Net profit up 174 percent at Rs 254.5 crore.
• Tax credit of Rs 278 crore in current quarter.
• Ebitda down 39 percent at Rs 140 crore.
• Margin at 15.3 percent.

Premier Explosives (Q4, YoY)

• Revenue up 15.1 percent at Rs 83.3 crore.
• Net profit down 70.2 percent at Rs 2.5 crore.
• Ebitda down 23.7 percent at Rs 5.8 crore.
• Margin at 7 percent.

GE T&D (Q4, YoY)

• Revenue down 32 percent at Rs 814 crore.
• Net profit down 39.7 percent at Rs 27.8 crore.
• Ebitda down 89.1 percent at Rs 12 crore.
• Margin at 1.5 percent.

Shalimar Paints (Q4, YoY)

• Revenue down 18.8 percent at Rs 60.2 crore.
• Net loss at Rs 16.1 crore.
• Ebitda loss at at Rs 10.3 crore.

• Tata Power inks pact with Tata Sons for sale of 43 crore equity shares in Tata Teleservices.
• Sunteck Realty to raise Rs 2,000 crore via issue of securities.
• MEP Infrastructure raises FPI investment limit to 100 percent from 24 percent.
• Mylan, Amneal, Sun Pharma lose challenge to Epilepsy drug patent.
• Shalimar Paints to increase FPI/FII limit from 24 percent to 49 percent.

• Fed sees next hike soon, signals modest inflation overshoot OK
• Reliance Jio adds most subscribers in March even as rivals close in
• Centre mulling long-term solution to soaring fuel prices, says Ravi Shankar Prasad
• Trump orders probe to consider tariffs on U.S. auto imports
• Patanjali’s toothpaste market share doubles as Colgate loses ground
• Krugman joins chorus of doomsayers on emerging-market ‘crisis’
• A poor deal at a high price: Aswath Damodaran on Walmart-Flipkart
• Breathe easy, NSE. Your index isn’t exactly Star Wars
• Facebook’s argument against a company breakup: We keep you safe

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India rose 0.3 percent to 10,457 as of 8:00 a.m.

Japan stocks led declines in Asia at the open, with the yen extending gains amid more twists and turns on trade and emerging-market risks. The dollar was steady and 10-year Treasury yields retreated below 3 percent.

The Topix index slid and the yen reached the session’s high after President Donald Trump ordered consideration of a probe into automobile imports. Shares fell in Australia and were flat in South Korea.

Overnight, the European stocks slid by the most in two months amid growing concern over the new Italian government and trade relations between the U.S. and China.

Bonds

• The yield on 10-year Treasuries was little changed at 2.9880 percent after falling six basis points.
• Australia’s 10-year bond yield dropped four basis points to 2.80 percent.

Commodities

• West Texas Intermediate crude fell 0.2 percent to $71.73 a barrel.
• Gold rose 0.2 percent to $1,295.55 an ounce.
• LME copper fell 0.3 percent to $6,844 a metric ton.

Here are some key events to watch this week:

• The Bank of England Markets Forum at Bloomberg London is today. Speakers include BOE Governor Mark Carney and New York Fed President William Dudley.
• At the St. Petersburg Forum on Friday, Russian President Vladimir Putin, French President Emmanuel Macron, Japan Prime Minister Shinzo Abe, and IMF Managing Director Christine Lagarde, participate on a panel moderated by Bloomberg News Editor-in-Chief John Micklethwait.
• Also on Friday, European Union finance ministers discuss the latest on Brexit talks, in Brussels.