Sensex, Nifty End Volatile Session Higher Ahead Of Election Results

Indian equity benchmarks ended high after a topsy-turvy trade ahead of election results scheduled to be announced tomorrow.

The S&P BSE Sensex ended 140 points or 0.36 percent higher at 39,110.21 and the NSE Nifty 50 edned at 11,737.90, up 0.25 percent. The broader market index represented by the NSE Nifty 500 Index closed 0.2 percent higher.

The market breadth was tilted in favour of buyers. About 969 stocks advanced and 770 shares declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Private Bank Index’s 0.8 percent gain. On the flipside, the NSE Nifty FMCG Index was the top sectoral loser, down 0.95 percent.

About 56 lakh shares changed hands in Vodafone Idea in three block deals, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of DHFL traded 8.8 percent lower at Rs 118.40. The stock fell as much as 18 percent during the opening trade.

Trading in the company's call options totaled 12,445 contracts, compared with the average of 3,818 over the past 20 days, according to Bloomberg data. Trading in the company's put options totaled 8,089 contracts, compared with the average of 2,206 over the same period

Indian equity benchmarks were trading at day’s high. The S&P BSE Sensex rose over 250 points and the NSE Nifty 50 traded near 11,800.

Shares of Symphony fluctuated between gains and losses to trade a little changed at Rs 1,192.60.

The company plans to repurchase shares worth Rs 165 crore by March 2020, according to its stock exchange filing.

The stock traded at 58 times its estimated earnings per share for the coming year, Bloomberg data showed. The scrip declined 16 percent in the past 12 months compared to a gain of 13 percent in the Sensex.

Cipla Ltd.’s profit in the three months ended March surpassed analysts estimates.

The pharmaceutical company reported a net profit of Rs 367 crore, a jump of 105 percent from the year ago period, according to its stock exchange filing. The analysts consensus estimates surveyed by Bloomberg had pegged the bottomline at Rs 305 crore.

Key Earnings Highlights (Q4, YoY)

• Revenue up 19 percent to Rs 4,404 crore.
• Ebitda up 72 percent to Rs 961 crore.
• Margin at 21.8 percent versus 15.1 percent.

Shares of the drugmaker rose as much as 1.4 percent to Rs 567 after the results announcement.

Shares of IndusInd Bank fell as much as 4.5 percent to Rs 1,382 after the lender announced its March quarter results.

Key Earnings Highlights (Q4, YoY)

• Net interest income up 11 percent to Rs 2,232 crore.
• Net profit down 62 percent to Rs 360 crore.
• GNPA at 2.10 percent versus 1.13 percent (QoQ).
• NNPA at 1.21 percent versus 0.59 percent (QoQ).
• Provisions at Rs 1,560.69 crore versus Rs 606.68 crore (QoQ); versus Rs 335.55 crore (YoY).

Six out of 11 sectoral gauges compiled by National Stock Exchange declined, led by the NSE Nifty Media Index’s 1.6 percent fall. On the flipside, the NSE Nifty Financial Service Index was the top sectoral gainer, 0.37 percent.

• Indian equity benchmarks were trading steady after a shaky start.
• The S&P BSE Sensex rose 100 points to trade above 39,000.
• The NSE Nifty Midcap 100 Index and the NSE Nifty Smallcap 100 Index fell 0.1 percent and 0.5 percent respectively, compared to 0.16 percent gain in the NSE Nifty 50.

About 10 lakh shares of Tata Power changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of Just Dial rose as much as 5 percent to Rs 750, the highest since May 2016. The stock advanced over 36 percent in the last seven days.

Trading volume was more than nine times its 20-day average, Bloomberg data showed. The relative strength index on the stock was over 70, indicating it may be overbought.

Nifty’s 11,200 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract rose 21.95 percent to Rs 120. Over 1.44 lakh shares were added to the open interest which stood at over 15.91 lakh shares.

The volatility in the stock market is expected to remain high due to the global events, which is not expected to fade away at this juncture, Jinesh Gopani, head of equities at Axis Mutual Fund told BloombergQuint in an interaction.

Key highlights from the conversation:

• Cautious on mid caps and small caps barring few good companies.
• Large NBFCs will keep outperforming smaller ones.
• Auto Sector will take one more quarter to revive.
• Auto Sector is a classic GDP multiplier story.
• Selectively positive on capital goods sector.
• Don't see a pickup in private capex for another 12 months.
• IL&FS issue is a matter of concern.
• Need to see what govt does to resolve IL&FS issue.
• Many of overseas funds are underweight on India.
• Overseas people like continuity and stability.
• Expect strong inflows if the election results are in line with exit polls.
• Rate cut or injecting liquidity will give booster to economy.
• Will closely monitor budget and policy measures initiatives.

DLF (Q4, YoY)

• Stock rose as much as 5.7 percent to Rs 181.20.
• Revenue up 81.5 percent to Rs 2,500.4 crore.
• Net profit up 76.3 percent to Rs 436.6 crore.
• Ebitda profit at Rs 533.6 crore versus Ebidta loss of Rs 13.8 crore.
• Exceptional Gain of Rs 127 crore versus Rs 196 crore.
• Exceptional Gain due to dilution of stake in another group company.
• Share of profits in JV and associates up 18 percent to Rs 242.9 crore.

Jindal Steel & Power (Q4, YoY)

• Stock fell as much as 8.7 percent to Rs 149.10.
• Revenue up 18.1 percent to Rs 10,159 crore.
• Net loss at Rs 2,145.8 crore versus net loss of Rs 308.1 crore.
• Ebitda down 13.7 percent to Rs 1,844.8 crore.
• Margin at 18.2 percent versus 24.8 percent.
• Exceptional loss of Rs 1,733.9 crore in current quarter.

Aarti Industries (Q4, YoY)

• Stock fell as much as 4.2 percent to Rs 1,645.35.
• Revenue up 17.7 percent to Rs 1,211.4 crore.
• Net profit up 47 percent to Rs 124.5 crore.
• Ebitda up 31.4 percent at Rs 236.9 crore.
• Margin at 19.6 percent versus 17.5 percent.

Bharat Financial Inclusion (Q4, YoY)

• Stock fell as much as 3.2 percent to Rs 865.90.
• Net Revenue up 46.5 percent to Rs 670.1 crore.
• Net profit up 50.5 percent to Rs 321.2 crore.
• Loan Disbursements up 14 percent at Rs 6,568 crore.

Jamna Auto Industries (Q4, YoY)

• Stock fell as much as 5.8 percent to Rs 52.50.
• Revenue down 20.3 percent to Rs 542.8 crore.
• Net profit down 28.5 percent at Rs 33.4 crore.
• Ebitda down 22.8 percent at Rs 69 crore.
• Margins at 12.7 percent versus 13.1 percent.

Subros (Q4, YoY)

• Stock rose as much as 4.7 percent to Rs 265.
• Revenue down 6.2 percent to Rs 518.1 crore.
• Net profit down 12.9 percent to Rs 16.2 crore.
• Ebitda down 13.9 percent to Rs 54.9 crore.
• Margin at 10.6 percent versus 11.6 percent.

Eris Lifesciences (Q4, YoY)

• Stock fell as much as 3.2 percent to Rs 586.05.
• Revenue up 1.2 percent to Rs 214.8 crore.
• Net profit down 3 percent to Rs 54.1 crore.
• Ebitda down 13.5 percent to Rs 62.1 crore.
• Margin at 28.9 percent versus 33.8 percent.

Crompton Greaves Consumer Electricals (Q4, YoY)

• Stock fell as much as 3.9 percent to Rs 214.40.
• Revenue up 7.2 percent to Rs 1,206.9 crore.
• Net profit up 36.1 percent at Rs 140.5 crore.
• Ebitda up 1.6 percent at Rs 167.1 crore.
• Margin at 13.8 percent versus 14.6 percent.

Prataap Snacks (Q4, YoY)

• Stock rose as much as 2.6 percent to Rs 909.
• Revenue up 11.8 percent to Rs 306.5 crore.
• Net profit up 27.8 percent to Rs 13.8 crore.
• Ebitda up 7.8 percent to Rs 22.2 crore.
• Margins at 7.2 percent vs 7.5 percent.

Somany Ceramics (Q4, YoY)

• Stock fell as much as 2.8 percent to Rs 375.
• Revenue down 4.1 percent to Rs 518.8 crore.
• Net profit down 6.9 percent at Rs 24.1 crore.
• Ebitda up 13.5 percent at Rs 70.5 crore.
• Margin at 13.6 percent vs 11.5 percent.

Cochin Shipyard (Q4, YoY)

• Stock fell as much as 1.3 percent to Rs 359.
• Revenue up 31.1 percent to Rs 787.6 crore.
• Net profit up 6.4 percent to Rs 97.5 crore.
• Ebitda down 4.5 percent to Rs 109.9 crore.
• Margin at 14 percent versus 19.2 percent.

KEI Industries (Q4, YoY)

• Stock rose as much as 2.9 percent to Rs 433.
• Revenue up 22.2 percent to Rs 1258.8 crore.
• Net profit up 20.8 percent to Rs 59.9 crore.
• Ebitda up 36.1 percent to Rs 137.5 crore.
• Margin at 10.9 percent versus 9.8 percent.

Shares of Tech Mahindra fell as much as 3.7 percent to Rs 744.20 after the company announced its March quarter results.

Key Earnings Highlights (Q4, QoQ)

• Dollar revenue up 0.6 percent to $1,268 million.
• Revenues down 0.6 percent to Rs 8,892 crore.
• Net profit down 6.6 percent to Rs 1,127 crore.
• EBIT down 5 percent to Rs 1368 crore.
• Margin at 15.4 percent versus 16.1 percent.

Here’s what brokerages had to say after Tech Mahindra announced its quarterly results:

Motilal Oswal

• Maintained ‘Buy’ with a price target of Rs 890.
• March quarter was dragged by enterprise.
• Expect traction to shift from Enterprise to Communications.
• Continue estimating an Ebitda margin band of 18-18.5 percent.

Citi

• Maintained ‘Neutral’ with a price target of Rs 790.
• Weak March quarter; EBIT slightly below.
• FY19 CC revenue growth continues to lag peers.
• FY20 growth to be backend given H2 is seasonally strong.

Jefferies

• Maintained ‘Buy’ with a price target of Rs 880.
• Q4 Review: Miss in revenue and margin due to one-off charge.
• Overall revenue growth guidance for 2019-20 maintained.
• Risk-reward favourable.

Credit Suisse

• Maintained ‘Outperform’; cut price target to Rs 910 from Rs 950.
• Q4 Review: A mixed bag although telecom business looking up.
• Deal wins in telecom continue to be robust; do not see immediate impact from Huawei ban.
• Cut EPS estimates by 3 percent to factor in Q4 miss.

Deutsche Bank Research

• Maintained ‘Buy’ with a pprice target of Rs 833.
• Revenue was in-line while EBIT was below estimates.
• Verticals - Telecom improves, manufacturing remains robust.
• Stock trades at lower valuations which we believe could expand.

Shares of the housing finance company fell as much as 17.8 percent, the most in nearly three months, to Rs 106.85.

The non-banking lender decided to stop taking fresh deposits and halted premature withdrawals from existing deposit schemes, according to a notice sent by the company to depositors. The move comes as DHFL tries to manage its tight liquidity position and deal with pressure on credit ratings.

Trading volume was almost seven times its 20-day average, Bloomberg data showed. Among the shares traded, 54 percent were at the ask price and 38 percent were at the bid.

Indian equity benchmarks fluctuated between gains and losses in the opening trade.

The S&P BSE Sensex swung from a gain of as much as 0.3 percent to fall as much as 0.17 percent to 38,903 and the NSE Nifty 50 traded near 11,700, down 0.06 percent. The broader market index represented by the NSE Nifty 500 Index fell as much as 0.24 percent.

The market breadth was tilted in favour of sellers. About 743 stocks fell and 690 shares advanced on National Stock Exchange.

Ten out of 1 sectoral gauges compiled by NSE fell, led by the NSE Nifty FMCG Index’s 0.95 percent decline. On the flipside, the NSE Nifty Realty Index was the only sectoral gainer, up 1.11 percent.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.08 percent to 69.76 against the greenback.

Futures –May series

Nifty

• Nifty futures closed trading at 11,715, premium of 6 points versus 31 points
• Nifty open interest down 2 percent, sheds 4.1 lakh shares in open interest

Bank Nifty

• Bank Nifty futures closed trading at 30,388.9, premium of 80 points versus 56 points
• Bank Nifty open interest down 5 percent sheds 71,000 shares in open interest

Options

• Nifty PCR at 1.19 versus 1.28 (across all series)

Nifty Weekly Expiry May 23

• Max open interest on call side at 12,000 (14.4 lakh shares)
• Max open interest at Put side at 11,500 (8.8 lakh shares)
• Max open interest addition seen at 12,200 (+4.9 lakh shares), 12,500C (+4.4 lakh shares), 12,000C (+3.8 lakh shares)

Nifty Monthly Expiry May 30

• Max open interest on call side at 12,000 (36 lakh shares)
• Max open interest on Put side at 11,000 (35.9 lakh shares)
• Max open interest addition seen at 12,400C (+6.6 lakh shares), 12,200C (+3.4 lakh shares)

Stocks In F&O Ban

• Adani Power
• IDBI Bank
• Jet Airways
• Reliance Capital

On Tech Mahindra

Motilal Oswal

• Maintained ‘Buy’ with a price target of Rs 890.
• March quarter was dragged by enterprise.
• Expect traction to shift from Enterprise to Communications.
• Continue estimating an Ebitda margin band of 18-18.5 percent.

Citi

• Maintained ‘Neutral’ with a price target of Rs 790.
• Weak March quarter; EBIT slightly below.
• FY19 CC revenue growth continues to lag peers.
• FY20 growth to be backend given H2 is seasonally strong.

Jefferies

• Maintained ‘Buy’ with a price target of Rs 880.
• Q4 Review: Miss in revenue and margin due to one-off charge.
• Overall revenue growth guidance for 2019-20 maintained.
• Risk-reward favorable.

Credit Suisse

• Maintained ‘Outperform’; cut price target to Rs 910 from Rs 950.
• Q4 Review: A mixed bag although telecom business looking up.
• Deal wins in telecom continue to be robust; do not see immediate impact from Huawei ban.
• Cut EPS estimates by 3 percent to factor in Q4 miss.

Deutsche Bank Research

• Maintained ‘Buy’ with a price target of Rs 833.
• Revenue was in-line while EBIT was below estimates.
• Verticals - Telecom improves, manufacturing remains robust.
• Stock trades at lower valuations which we believe could expand.

More Calls

Jefferies on BPCL

• Maintained ‘Underperform’ with a price target of Rs 275.
• Q4 core in-line; Prefer ONGC in policy levered state companies.
• Confidence in BPCL's ability to benefit from IMO eroding with its struggles at Kochi.

Motilal Oswal on Bosch

• Maintained ‘Neutral’; cut price target to Rs 18,200 from Rs 19,556.
• Negative operating leverage dents margins.
• 2019-20 outlook cautious due to BS-VI transition, but growth expected from the second half.
• Cut EPS estimates for the current and the next financial year by 6 percent and 7 percent respectively to factor in the weak demand environment.

HSBC on VRL Logistics

• Maintained ‘Buy’ with a price target of Rs 335.
• Earnings growth momentum to continue in 2019-20.
• Company is focusing on volume growth and sees March quarter’s margin to be sustainable
• Capex set to moderate sharply in the current financial year.

• Indiabulls Venture, DCM Shriram, Eveready Industries to move into short ASM Framework.
• Neogen Chemicals, Vikas Multicorp price band revised to 20 percent.

• Bombay Burmah Trading Corporation promoter Bombay Dyeing & Manufacturing Co pledged one lakh shares on May 16.
• JSW Steel promoter groups pledged 14.5 lakh shares on May 16.
• Delta Corp promoter Aryanish Finance and Investments pledged 10.5 lakh shares and revoked pledge of 50,000 shares from May 16-17.
• Kesoram Industries promoter Manav Investment and Trading Co pledged 1.02 crore shares on May 17.
• JSW Energy promoter group Indusglobe Multiventures pledged 41.5 lakh shares on May 16.

Adani Green offer-for-sale at minimum price of Rs 43 opens for retail investors; Offer to non-retail gets 1.26 times demand on Day 1.

Nifty Earnings To Watch

• Cipla
• IndusInd Bank

Other Earnings To Watch

• Symphony
• Skipper
• Jindal Saw
• Bank of Baroda
• Canara Bank
• JK Lakshmi Cement
• Caplin Point Laboratories
• Central Bank of India
• ADF Foods
• Redington
• S H Kelkar and Company
• Sagar Cements
• Ramco Cements
• Allcargo Logistics
• Apex Frozen Foods
• Asahi India Glass
• Ashoka Buildcon
• Bajaj Electricals
• Thermax
• Balaji Telefilms
• Century Extrusions
• Cummins India
• Future Consumer
• GE T&D India
• Gujarat State Fertilizers & Chemicals
• Heritage Foods
• IG Petrochemicals
• Indo Count Industries
• ITD Cementation
• Man Infraconstruction
• MOIL
• Munjal Auto Industries
• Orient Bell
• Pennar Engineered Building Systems
• Power Mech Projects
• PPAP Automotive
• Quess Corp
• Ramco Systems
• Rane Brake Lining
• Sastasundar Ventures
• Schneider Electric Infrastructure
• T D Power Systems
• Veto Switchgears And Cables
• Vikas Proppant & Granite
• TCI Express
• Max Ventures and Industries
• India Nippon Electricals

• Brent crude declined 0.31 percent to $71.81 per barrel.
• West Texas Intermediate crude fell 0.6 percent to $62.75 a barrel.
• Gold held at $1,275.25 an ounce.

London Metal Exchange

• Copper ended lower for the third day, down 0.55 percent.
• Zinc halted a two-day fall, closed 0.08 percent higher.
• Aluminium ended lower for the third day, down 0.08 percent.
• Nickel halted a two-day fall, ended 0.8 percent higher.
• Lead halted a two-day fall, closed 0.17 percent higher.
• Tin ended 0.13 percent higher.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.22 percent to 11,752.

Asian stocks and China’s yuan were little changed in trading Wednesday as traders await the next page in the U.S.-China trade war -- and any fresh narratives on the Federal Reserve, which releases minutes from its last policy meeting today.

Early gains in Japanese shares fizzled, South Korean equities dipped, and Australian stocks retreated from an 11-year high.

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