Sensex, Nifty Fall The Most In Over A Week After Record Rally
Catch all the live updates on share prices, index moves, corporate announcements and more from Sensex and Nifty today.
KEY HIGHLIGHTS
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Sensex, Nifty Fall The Most In Over A Week After Record Rally
Indian equity benchmarks declined the most in over a week as investors book profit after a record rally.
The S&P BSE Sensex swung from a gain of as much as 0.56 percent to end 0.97 percent or 383 points lower at 38,969.80 and the NSE Nifty 50 ended at 11,709.10, down 1 percent. The broader market index represented by the NSE Nifty 500 Index closed 0.96 percent lower.
The 31-share index and the 50-share gauge had registered record highs of 39,571.73 and 11,883.55 respectively during the opening trade today.
The markets witnessed profit booking during today’s trade after a record run, Joindre Capital Services’ Avinash Gorakshakar told BloombergQuint in an interaction “Investors are currently trading based on the election sentiments and will start looking at the valuations only after the results.”
Gorakshakar expects the markets to remain choppy until the election outcome.
The market breadth was tilted in favour of sellers. About 1,145 stocks fell and 609 stocks advanced on National Stock Exchange. All the sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Auto Index’s 2.5 percent fall.
'Play Seeing Rather Than Playing Blind', TCG Asset Management Says
It is time for ‘play seeing rather than playing blind’ while investing after yesterday's record rally.
Thats the word coming from TCG Asset Management's Managing Director Chakri Lokapriya.
“Most of the rally in the markets were led by the index heavyweights and the financials. The rest of the market might join after the election results are in line with the exit polls,” Lokapriya told BloombergQuint in an interaction.
Market Check: Nifty Media Worst Sectoral Performer, Falls 2.4%
All the 11 sectoral gauges compiled by NSE fell, led by the NSE Nifty Media Index’s 2.4 percent fall.
Stocks Moving On Heavy Volumes
United Breweries
- Stock rose as much as 7.9 percent to Rs 1,483.70.
- Trading volume was more than 11 times its 20-day average.
Astral Poly Technik
- Stock fell as much as 8.3 percent to Rs 1,161.
- Trading volume was almost nine times its 20-day average.
Just Dial
- Stock rose as much as 8.7 percent to Rs 726.65.
- Trading volume was more than six times its 20-day average.
Sobha
- Stock rose as much as 6.2 percent to Rs 512.55.
- Trading volume was more than five times its 20-day average.
Europe Market Check: Equities Rebound
European stocks rose on Tuesday, rebounding from yesterday’s sell-off as the market weighed on the latest developments in the U.S.-China trade war, with trade-sensitive tech stocks, autos and miners all gaining.
Source: Bloomberg
Market Check: Sensex, Nifty Trade Lower
Indian equity benchmarks traded lower.
The S&P BSE Sensex swung from a gain of as much as 0.56 percent to fall as much as 0.4 percent and the NSE Nifty 50 traded below 11,800.
Bosch Falls Nearly 4% After Q4 Results
Shares of Bosch fell as much as 3.8 percent to Rs 16,950 after the company announced its March quarter results.
Key Earnings Highlights (Q4, YoY)
- Revenue down 12.9 percent to Rs 2,749.15 crore.
- Net Profit down 2 percent to Rs 441.7 crore.
- Ebitda down 25 percent to Rs 516.49 crore.
- Margin at 18.8 percent versus 21.9 percent.
- Board declared final dividend of Rs 105 per share.
BQ Blue Exclusive | 10 Cheapest Stocks With Earnings Growth Potential
The NSE Nifty 50 is trading at 20.4 times its 12-month forward earnings. That’s higher than the five-year average of 18.4 times. Analysts said despite higher valuations of India’s equity market, there are stocks with good earnings growth expectations that are still cheap.
Thyrocare Technologies Founder Offers To Buy Entire Company’s Stake In Unit
Thyrocare Technologies Ltd.’s founder Chairman, Managing Director and CEO A Velumani offered to buy entire company’s stake in its unit—Nueclear Healthcare Ltd. at a current investment value of Rs. 194.67 crore, according to its stock exchange filing.
Velumani offered to ensure that there is no loss to public shareholders, the statement added.
Steel Strips Wheels Rebounds On Order Win
Shares of Steel Strips Wheels swung from a drop of as much as 0.82 percent to gain as much as 0.3 percent to Rs 807.90.
The company received an export order of four lakh for trailer market valued at Rs 20 crore, according to its statement on the exchanges. The order is to be executed by October 2019, the statement added.
F&O Check: Nifty 11,200 Call Option Falls Over 2%
Nifty’s 11,200 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the contract fell 2.3 percent to Rs 137.75. Over 3.06 lakh shares were added to the open interest which stood at over 13.69 lakh shares.
Block Deal Alert: Ashok Leyland, Vodafone Idea
- Ashok Leyland: About 37.5 lakh shares changed hands in a block deal.
- Vodafone Idea: About 43.7 lakh shares changed hands in a block deal.
Buyers and sellers were not known immediately
Source: Bloomberg
Stocks Reacting To Earnings Announcement
BPCL (Q4. QoQ)
- Stock fell as much as 4.7 percent to Rs 373.45.
- Revenue down 6.5 percent to Rs 73,990 crore.
- Net profit up 6.3 times to Rs 3,125 crore.
- Ebitda up 6.5 times to Rs 4,805 crore.
- Margin at 6.5 percent versus 0.9 percent.
- Gross refining margin at $2.74/bbl versus $2.78/bbl.
HPCL (Q4, QoQ)
- Stock fell as much as 4.2 percent to Rs 281.
- Revenue down 5.8 percent to Rs 67,938.1 crore.
- Net profit up 12 times to Rs 2,969.9 crore.
- Ebitda up 5.4 times to Rs 5,166.3 crore.
- Margin at 7.6 percent versus 1.3 percent.
- Gross refining margin at $4.51/bbl versus $3.72/bbl.
Phillips Carbon Black (Q4, YoY)
- Stock fell as much as 5.8 percent to Rs 135
- Revenue up 21.9 percent to Rs 921 crore.
- Net profit up 0.3 percent to Rs 74.4 crore.
- Ebitda up 10.6 percent to Rs 112.8 crore.
- Margin at 12.2 percent versus 13.5 percent.
- Deferred tax reversal of Rs 19.7 crore in base quarter.
- Other expenses up 26 percent to Rs 163.3 crore.
HEG (Q4, YoY)
- Stock fell as much as 3.8 percent to Rs 1,650.
- Revenue up 4.2 percent to Rs 1,346.7 crore.
- Net profit down 17.3 percent to Rs 524.4 crore.
- Ebitda down 17.1 percent to Rs 788.1 crore.
- Margin at 58.5 percent versus 73.6 percent.
- RM as percent of sales at 34.5 percent versus 15.5 percent.
- Declares dividend of Rs 50 per share.
Jindal Stainless (Q4, YoY)
- Stock rose as much as 1.6 percent to Rs 78.40.
- Revenue up 2.5 percent to Rs 3,251.3 crore.
- Net profit down 71.8 percent to Rs 32.3 crore.
- Ebitda down 22.1 percent to Rs 302.5 crore.
- Margin at 9.3 percent versus 12.2 percent.
- RM as percent of sales at 57.5 percent versus 49 percent.
Astral Poly Technik (Q4, YoY)
- Stock fell as much as 6.8 percent to Rs 1,180.
- Revenue up 21.3 percent to Rs 774.7 crore.
- Net profit down 4.2 percent to Rs 62.2 crore.
- Ebitda up 6.1 percent to Rs 120.3 crore.
- Margin at 15.5 percent versus 17.8 percent.
- RM as percent of sales at 62 percent versus 60 percent.
- Other expenses up 46 percent to Rs 105 crore.
Lakshmi Machine Works (Q4, YoY)
- Stock fell as much as 4.1 percent to Rs 5,475.
- Revenue down 22.4 percent to Rs 580 crore.
- Net profit down 39.9 percent to Rs 36.8 crore.
- Ebitda down 51.9 percent to Rs 32.5 crore.
- Margin at 5.6 percent versus 9 percent.
- Declares dividend of Rs 35 per share.
Confidence Petroleum India (Q4, YoY)
- Stock fell as much as 4.4 percent to Rs 39.
- Revenue up 1.1 percent to Rs 286.1 crore.
- Net profit up 1.1 percent to Rs 18.8 crore.
- Ebitda down 4 percent to Rs 33.9 crore.
- Margin at 11.8 percent versus 12.5 percent.
- Other expenses up 2.4 times to Rs 46.8 crore.
Shree Pushkar Chemicals & Fertilisers (Q4, YoY)
- Stock fell as much as 5.2 percent to Rs 139.25.
- Revenue down 2.1 percent to Rs 117.6 crore.
- Net profit down 19.1 percent to Rs 7.6 crore.
- Ebitda down 13.8 percent to Rs 10.6 crore.
- Margin at 9 percent versus 10.2 percent.
- Tax Reversal of Rs 4.5 crore.
- Employee expenses up 18 percent to Rs 6.7 crore.
Dhampur Sugar Mills (Q4, YoY)
- Stock rose as much as 4 percent to Rs 224.
- Revenue down 3.6 percent to Rs 888.4 crore.
- Net profit of Rs 107.8 crore versus net loss of Rs 9.2 crore.
- Ebitda up 15 times to Rs 180.6 crore.
- Margin at 20.3 percent versus 1.3 percent.
- Inventory gain of Rs 674 crore versus inventory gain of Rs 472.2 crore.
Torrent Pharma (Q4, YoY)
- Stock fell as much as 7.8 percent to Rs 1,525.35.
- Revenue up 8.7 percent to Rs 1,856 crore.
- Net loss of Rs 152 crore versus net profit of Rs 228 crore.
- Ebitda up 29.9 percent to Rs 473 crore.
- Margin at 25.5 percent versus 21.3 percent.
- Exceptional loss of Rs 357 crore.
United Breweries (Q4, YoY)
- Stock rose as much as 4.5 percent to Rs 1,436.
- Revenue up 10.7 percent to Rs 1,629.4 crore.
- Net Profit down 25.3 percent to Rs 67.9 crore.
- Ebitda down 17.8 percent to Rs 171.2 crore.
- Margin at 10.5 percent versus 14.1 percent.
- Higher employee cost and higher other expenses weighed on Ebitda.
- In Q4, volume grew in all markets except West Bengal, Uttar Pradesh and Maharashtra.
Block Deal Alert: Motherson Sumi, SBI
- Motherson Sumi: About 10 lakh shares changed hands in a block deal.
- SBI: About 10 lakh shares changed hands in a block deal.
Buyers and sellers were not known immediately
Source: Bloomberg
Bajaj Finance Crosses Rs 2 Lakh Crore In Market Capitalisation
Bajaj Finance Ltd., today, crossed Rs 2 lakh crore in market capitalisation. The stock rose as much as 2.36 percent to hit an all-time high at Rs 3,488.
Adani Green Energy Extends Gain On Promoters' Share Sale Plans
Shares of the renewable energy producer extended gains for the third consecutive trading sessions and rose as much as 4.9 percent to trade at a one-month high at Rs 45.20.
Adani Green Energy’s promoters Adani Tradeline LLP and Universal Trade and Investments plans to sell about 5.59 percent stake in the company, according to its exchange filing. The promoters will sell up to 8.75 crore shares at a floor price of Rs 43 apiece—a discount of about 0.20 percent to the last regular trade—through an offer-for-sale, the filing added.
The trading volume was more than 550 times the 20-day average, Bloomberg data showed.
Five Nifty Stocks Hit All-Time Highs
As Indian equity benchmarks scale new milestones, here are the five Nifty stocks that have hit an all-time high in today’s trade.
Tata Motors Falls After Q4 Results
Shares of the Jaguar Land Rover parent fell as much as 3.8 percent to Rs 183 after the company announced its March quarter results.
Key Earnings Highlights (Q4, YoY)
Tata Motors
- Revenue down 4 percent to Rs 86,422 crore.
- Net profit down 47 percent to Rs 1,117.5 crore.
- Ebitda down 6 percent to Rs 8019.5 crore.
- Margin at 9.3 percent versus 9.5 percent.
JLR
- Revenue down 5.6 percent at GBP 7134 million.
- Ebitda margin at 9.8 percent.
Here’s what analysts had to say after Tata Motors announced its quarterly results:
CLSA
- Maintained ‘Sell’ with a price target of Rs 150.
- Ebitda miss for both the JLR and India business in March quarter.
- JLR outlook remains weak and see cyclical pressure in India.
- Cut FY20-21 EPS by 18-22 percent.
UBS
- Maintained ‘Neutral’ with a price target of Rs 200.
- March quarter review: JLR slightly ahead while India below expectations.
- JLR lacking a path to positive FCF.
- Net debt reduction largely seasonal; capex cuts help a little.
Opening Bell: Sensex, Nifty Open At Record Highs
Indian equity benchmarks extended gains for the fourth consecutive trading session to open at record highs.
The S&P BSE Sensex rose as much as rose as much as 0.45 percent to cross 39,500 for the first time and the NSE Nifty 50 rose as much as 0.42 percent to 11,877.90. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.37 percent.
The market breadth was tilted in favour of buyers About 906 stocks advanced and 548 shares declined on National Stock Exchange.
Nine out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Pharma Index’s 0.86 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral losers, down 0.5 percent.
Money Market Update: Rupee Opens Little Changed
The Indian rupee opened a little changed against the U.S. dollar. The home currency traded at 69.76 against the greenback, compared to yesterday’s close of 69.74.
Your Complete F&O Trade Setup
Futures –May Series
Nifty
- Nifty futures closed trading at 11,859, premium of 31 points versus 18 points.
- Nifty open interest up 7 percent, adds 10.5 lakh shares in open interest.
Bank Nifty
- Bank Nifty futures closed trading at 30,815.6, premium of 56 points versus 33 points.
- Bank Nifty open interest up 22 percent adds 2.7 lakh shares in open interest.
Options
- Nifty PCR at 1.28 Versus 1.36 (across all series).
Nifty Weekly Expiry 23 May
- Max open interest on call side at 12,000 (10.6 lakh shares).
- Max open interest at Put side at 11,500 (6.8 lakh shares).
- Max open interest addition seen at 11,500 Put (+5.5 lakh shares), 12,100 Call (+4.9 lakh shares).
Nifty Monthly Expiry 30 May
- Max open interest on call side at 12,000 (33 lakh shares).
- Max open interest on Put side at 11,000 (34.6 lakh shares).
Stocks In F&O Ban
- In Ban: Jet Airways
- New In Ban: Reliance Capital
Brokerage Radar: Bharat Forge, BPCL, HPCL, Tata Motors
On Bharat Forge
CLSA
- Maintained ‘Sell’ with a price target of Rs 420.
- Decent growth on a yearly basis but Ebitda missed in March quarter; revenue peaking sequentially.
- U.S. and Indian trucks on the cusp of a down cycle.
- Industrial exports should see growth moderation too.
UBS
- Maintained ‘Sell’ with a price target of Rs 480.
- March quarter was inline but growth slowdown ahead.
- Expect significant growth slowdown.
- Expect India, U.S. & EU truck volumes to decline into the next financial year.
On BPCL
CLSA
- Maintained ‘Sell’ with a price target of Rs 300.
- Weak core performance across segments.
- Strong marketing performance.
- Limited drivers of earnings surprise.
UBS
- Maintained ‘Buy’ with a price target of Rs 415.
- Weak performance in refining continues.
- Investors have been awaiting the turnaround of Kochi refinery.
- No LPG and Kerosene loss on OMCs is also positive.
On HPCL
CLSA
- Maintained ‘Sell’ with a price target of Rs 210.
- In-line refining but a miss on marketing.
- Notable jump in volumes along with market share gains.
- Limited earnings surprise drivers.
UBS
- Maintained ‘Buy’ with a price target of Rs 315.
- Marketing business hogs limelight in 2018-19 despite crude volatility.
- Debt increased due to due from government.
- Expect investor's to react positively.
On Tata Motors
CLSA
- Maintained ‘Sell’ with a price target of Rs 150.
- Ebitda miss for both the JLR and India business in March quarter.
- JLR outlook remains weak and see cyclical pressure in India.
- Cut FY20-21 EPS by 18-22 percent.
UBS
- Maintained ‘Neutral’ with a price target of Rs 200.
- March quarter review: JLR slightly ahead while India below expectations.
- JLR lacking a path to positive FCF.
- Net debt reduction largely seasonal; capex cuts help a little.
More Calls
CLSA on Torrent Pharma
- Maintained ‘Outperform’; cut price target to Rs 1,800 from Rs 2,100.
- March quarter results impacted by many adjustments still below estimates.
- U.S. sales under pressure in the medium term.
- India growth strong with focus on top brands.
Morgan Stanley on Dr Lal PathLabs
- Maintained ‘Underweight’; hiked price target to Rs 919 from Rs 810.
- Growth likely to be volume driven.
- Company to evaluate price hikes based on competitive intensity.
- Underweight due to limited pricing power, modest growth and rich valuation.
Citi on PI Industries
- Maintained ‘Buy’; hiked price target to Rs 1,303 from Rs 1,061.
- Strong exports growth continues.
- Domestic business was expectedly muted.
- PI continues to enjoy significant advantages with good revenue visibility.
Pledge Share Details: Adani Ports, Coffee Day Enterprises, Eros International
- Eros International Media promoter Eros Worldwide pledged 16.8 lakh shares from May 14-15.
- Adani Ports & SEZ promoter grouping Adani Trading LLP revoked pledge of 1.41 crore shares on May 16.
- Mercator promoter and director Harish Kumar Mittal and Archana Mittal invoked pledge of 10 lakh shares on May 14.
- Coffee Day Enterprises Promoter Coffee Day Solutions pledged 8.64 lakh shares from May 8-16.
Q4 Earnings To Watch: Bharat Financial Inclusion, Bosch, DLF, Tech Mahindra
Nifty Earnings To Watch
- Tech Mahindra
Other Earnings To Watch
- DLF
- Jindal Steel & Power
- Aarti Industries
- Subros
- Alkyl Amines Chemicals
- Bharat Financial Inclusion
- Bosch
- Care Ratings
- Prataap Snacks
- Somany Ceramics
- Century Enka
- Cochin Shipyard
- Crompton Greaves Consumer Electricals
- Dhanuka Agritech
- Eris Lifesciences
- IFCI
- India Glycols
- J.B.Chemicals & Pharmaceuticals
- Jamna Auto Industries
- KEI Industries
- KIOCL
- NR Agarwal Industries
- Prakash Industries
- Rane Engine Valve
- RSWM
- Surya Roshni
- Tamilnadu PetroProducts
- Timken India
- Triveni Engineering & Industries
- UFO Moviez
- VA Tech Wabag
- Vaibhav Global
- Aptech
- Banco Products
- Deccan Gold Mines
Stocks To Watch: 8K Miles, Adani Green Energy, GAIL, ICICI Bank, Panacea Biotec
- Adani Green Energy’s promoters Adani Tradeline LLP and Universal Trade and Investments plan to sell cumulatively 5.59 percent stake in the company. The promoters will sell up to 8.75 crore shares at a floor price of Rs 43 apiece—a discount of about 0.20 percent to current market price—through an offer-for-sale, according to an exchange filing.
- Tata Motors: Jaguar Land Rover Automotive said Chief Financial Officer Ken Gregor to step down on June 1, and will be succeeded by Adrian Mardell, according to a website statement. (Bloomberg News)
- GAIL India to consider bonus issue on May 27.
- Panacea Biotec’s formulation facility in Himachal Pradesh received a U.S. FDA approval for manufacture and supply of Azacitidine Injection for the U.S. Market. This injection is a chemotherapy drug.
- ICICI Bank entered into an agreement with the BSE and IFSC for acquiring 9.9 percent stake in India International Clearing Corporation (GIFT City) for Rs 33.85 crores.
- Lakshmi Vilas denied any misappropriation of monies due to Religare’s arm on account of four fixed deposits opened with the Bank.
- 8K Miles Software: Board sought extension permission for submitting annual audited results up till June 30, due to delay seen in compilation of consolidated financial statement of the company.
Commodity Cues: Oil Holds Firm
- Brent crude rose 0.17 percent to $72.09 per barrel.
- West Texas Intermediate crude gained 0.3 percent to $63.30 a barrel.
- Gold was little changed at $1,277.61 an ounce.
London Metal Exchange
- Copper fell for the second consecutive trading session, ended 0.45 percent lower.
- Zinc closed lower for the second day, down 0.96 percent.
- Aluminium fell for the second consecutive trading session, ended 2.15 percent lower.
- Nickel declined for the second consecutive trading session, closed 0.32 percent lower.
- Lead ended lower for the second day, down 1.23 percent.
- Tin ended 0.26 percent lower.
Nifty Futures Suggests Stock Gains; Asian Equities Mixed
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.14 percent to ,11882 as of 7:50 a.m.
Asian stocks were mixed Tuesday as investors digested moves by Washington against Huawei Technologies Co. that sank U.S. technology shares overnight.
Stocks dipped in Tokyo and fluctuated in Hong Kong and China. Shares in Sydney pared declines.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
With inputs from Bloomberg.