Sensex, Nifty Register Best Week In Nearly Two Months

Indian equity benchmarks halted their weekly rout and gained the most in nearly two months.

The S&P BSE Sensex closed over 1.2 percent higher this week to end at 37,930.77 and the NSE Nifty 50 ended at 11,407, down 1.1 percent. The broader market index represented by the NSE Nifty 500 Index closed 0.43 percent higher during the period. The benchmark indices had had declined during the last three weeks.

The benchmark indices extended gains for the second consecutive trading session. Today, the 31-share index and the 50-stock index closed higher by 1.44 percent and 1.33 percent respectively. The 500-share gauge rose 1.17 percent.

The market breadth was tilted in favour of buyers. About 1,029 stocks advanced and 723 shares declined on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Media Index’s 3.5 percent advance. On the flipside, the NSE Nifty Pharma Index was the top sectoral loser, down 1.5 percent.

Shares of Dr. Reddy’s laboratories fluctuated between gains and losses to trade 0.1 percent at Rs 2,798.15 after the company announced its March quarter results.

Key Earnings Highlights (Q4, YoY)

• Revenue up 14 percent to Rs 4,016 crore.
• Net profit up 44 percent to Rs 434 crore.
• Ebitda up 52 percent to Rs 882 crore.
• Margin at 21.9 percent versus 16.3 percent.

UPL Ltd.’s profit fell 72 percent on a yearly basis to Rs 206 crore in the three months ended March, according to its stock exchange filing.

Key Earnings Highlights (Q4, YoY)

• Revenue up 50 percent to Rs 8,525 crore.
• Ebitda up 16 percent to Rs 1,410 crore.
• Margin at 16.5 percent versus 21.4 percent.
• Exceptional loss of Rs 299 crore in current quarter.

Shares of Bajaj Auto rose as much as 7 percent, the most in nearly four years, to Rs 3,149.95, after the company announced its quarterly results.

Key Earnings Highlights (Q4, YoY)

• Revenue up 9 percent to Rs 7,395 crore.
• Net profit up 21 percent to Rs 1,306 crore.
• Ebitda down 13 percent to Rs 1,161 crore.
• Margin at 15.7 percent versus 19.6 percent.

Shares of Delta Corp fell as much as 16.9 percent, the most in over 14 months, to Rs 156, the lowest since July 2017.

Trading volume was more than double its 20-day average, Bloomberg data showed. The Relative Strength Index on the stock was below 30, indicating that the stock may be oversold.

About 11.3 lakh shares changed hands in a block deal on National Stock Exchange, Bloomberg data showed. Buyers and sellers were not known immediately.

Arvind Fashions

• Stock fell as much as 10 percent to Rs 755.55.
• Trading volume was 15 times its 20-day average.

Chambal Fertilizers and Chemicals

• Stock rose as much as 15.1 percent to Rs 164.25.
• Trading volume was 13 times its 20-day average.

Zydus Wellness

• Stock fell as much as 4.1 percent to Rs 247.20.
• Trading volume was more than 12 times its 20-day average.

Blue Dart

• Stock fell as much as 6.2 percent to Rs 2,736.
• Trading volume was more than 10 times its 20-day average.

Bajaj Finserv

• Stock rose as much as 5.4 percent to Rs 8,025.
• Trading volume was more than seven times its 20-day average.

Shares of Indian Oil Corporation Ltd. fluctuated between gains and losses to trade 0.3 percent at Rs 150.45.

Key Earnings Highlights (Q4, QoQ)

• Net profit up 750 percent to Rs 6,099 crore.
• Revenue down 9.8 percent to Rs 1.26 lakh crore.
• Ebitda up 201.6 percent to Rs 10,876 crore.
• Margin at 8.62 percent versus 2.58 percent.

In six days, the election results will be out. Who will form the next government? And what role will Rahul Gandhi play? Watch the Indian National Congress President's in-depth interview with Raghav Bahl and Sanjay Pugalia today

Catch all the live updates here.

Arvind Ltd.’s profit during January-March period fell 41 percent on a yearly basis to Rs 64 crore, according to its stock exchange filing.

Key Earnings Highlights (Q4, YoY)

• Revenue up 0.9 percent to Rs 1,859 crore.
• Ebitda up 3.4 percent to Rs 183 crore.
• Margin at 9.8 percent versus 9.6 percent.

Shares of Indian Hotels rose as much as 6.7 percent to Rs 151.50 after the company signed an investment pact with pact with GIC.

• GIC will own 70 percent stake in SPV, while remaining 30 percent will be owned by Indian Hotels
• GIC will invest Rs 4000 crore for its 70 percent stake over three years
• According to BQ calculation, Indian Hotels should invest close to Rs 1700 crore for its 30 percent stake over three years
• The funds will be used to acquire fully operational hotels mainly in the Luxury, Upper Upscale and Upscale segments in India.

Indian equity benchmarks were at day’s high. Sensex rose over 400 points and Nifty traded above 11,350.

MT Educare Ltd.'s founder Mahesh Shetty plans to sell up to 55 lakh shares or 7.7 percent of the equity via offer for Rs 76 each, according to a stock exchange filing.

Shares of the education support and coaching service provider fluctuated between gains and losses to trade little changed at Rs 77.60.

The NSE Nifty FMCG Index rose nearly 2 percent, led by the gains in Godrej Consumer Products Ltd. and Dabur India Ltd.

Nifty’s 11,300 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract rose 7.45 percent to Rs 251. Over 2.88 lakh shares were added to the open interest which stood at over 4.16 lakh shares.

Shares of City Union Bank rose 0.6 percent to Rs 197.40 after announcing its March quarter results. The stock rose 1.5 percent intraday.

Key Earnings Highlights (Q4, YoY)

• Net profit at Rs 175.11 crore versus Rs 152.12 crore.
• Net interest income up 14.3 percent to Rs 420.6 crore.
• GNPA at 2.95 percent versus 2.91 percent (QoQ).
• NNPA at 1.85 percent versus 1.74 percent (QoQ).
• Provisions at Rs 90.67 crore versus Rs 78.75 crore (QoQ); Rs 86.15 crore (YoY)

JK Tyre & Industries (Q4, YoY)

• Stock fell as much as 5.6 percent to Rs 74.90
• Revenue up 18.5 percent to Rs 2705.9 crore.
• Net profit down 76.9 percent to Rs 33.6 crore.
• Ebitda down 20.7 percent to Rs 261.1 crore.
• Margin at 9.6 percent versus 14.4 percent.
• Other Income of Rs 113.1 crore in base quarter.
• Stock purchase expenses to Rs 352 crore.
• Finance cost up 23 percent to Rs 141.5 crore.

Praj Industries (Q4, YoY)

• Stock rose as much as 4.2 percent to Rs 134.95.
• Revenue up 34.1 percent to Rs 368.2 crore.
• Net profit up 24.6 percent to Rs 33.4 crore.
• Ebitda up 26.2 percent to Rs 34.2 crore.
• Margin at 9.3 percent versus 9.9 percent.

Action Construction Equipment (Q4, YoY)

• Stock rose as much as 2.5 percent to Rs 93.25.
• Revenue down 17.3 percent to Rs 299.7 crore.
• Net profit down 18.1 percent to Rs 12.2 crore.
• Ebitda down 7.3 percent to Rs 24 crore.
• Margin at 8 percent versus 7.1 percent.
• Inventory gain of Rs 49.3 crore.

Neuland Laboratories (Q4, YoY)

• Stock fell as much as 6.2 percent to Rs 671.30.
• Revenue up 7.8 percent to Rs 172.7 crore.
• Net profit down 17.3 percent to Rs 6.7 crore.
• Ebitda down 2.1 percent to Rs 18.4 crore.
• Margin at 10.7 percent versus 11.7 percent.
• RM as percent of sales at 51.5 percent versus 49.6 percent.
• Employee expense up 21 percent to Rs 27.3 crore.

Blue Dart Express (Q4, YoY)

• Stock fell as much as 5.7 percent to Rs 2,749.
• Revenue up 8.7 percent to Rs 779.3 crore.
• Net profit down 62.2 percent to Rs 12.9 crore.
• Ebitda down 51.7 percent to Rs 27.8 crore.
• Margin at 3.6 percent versus 8 percent.
• Other expenses up 17 percent to Rs 92.8 crore.
• Employee expenses up 15 percent to Rs 131.8 crore.
• Declares dividend of Rs 12.5 per share.

Shares of the asset management company rose as much as 6.3 percent to Rs 212 apiece.

Nippon Life to acquire majority of joint venture partner Reliance Capital’s 43 percent stake, Nikkei reported without stating the source of information. The acquisition price values the company at Rs 10,400 crore, while the current market cap of the company is Rs 12,060 crore.

The trading volume of the stock was more than 20 times its 20-day average for this time of the day, according to Bloomberg data.

Besides, shares of the Reliance Capital jumped 8 percent intraday to Rs 121.70.

Shares of Arvind Fashions fell as much as 10 percent to Rs 755.55, the lowest in over two months.

This after brokerage and research firm CLSA cut its price target on the stock to Rs 1,126 from Ra 1,294. It, however, maintained its ‘Buy’ rating on the stock.

Here’s what CLSA had to say:

• Maintained ‘Buy’; cut price target to Rs 1,126 from Rs 1,294.
• March quarter was subdued due to weaker demand environment.
• Portfolio consolidation to improve capital efficiency.
• Margin recovery in value retailing format is the key.

Shares of Bajaj Finserv fluctuated between gains and losses to trade 0.18 percent lower at 7,603.50 after the company announced its March quarter results.

Key Earnings Highlights (Q4, YoY)

• Net revenue up 41.6 percent to Rs 11,110.4 crore.
• Net profit up 31.7 percent to Rs 838.7 crore.
• Declares dividend of Rs 2.5 per share.

Shares of Aurobindo Pharma fell as much as 6.3 percent to Rs 680.80, the lowest in over eight months.

The company received letters from the U.S. FDA, classifying the inspections concluded at its API facilities of Unit I and XI and intermediates facility of unit IX in February 2019 as Official Action Indicated (OAI), it said in a statement on the exchanges.

The drugmaker said that it has already submitted its initial response to the drug regulator and that it is sending further updates on the committed corrective actions.

“The company is confident that these OAI classifications will not have an impact on disruption of supplies or the revenue from operations of these facilities,” it added.

Indian equity benchmarks opened higher in today’s trade, mirroring their Asian peers.

The S&P BSE Sensex rose as much as 0.27 percent to Rs 37,495.88 and the NSE Nifty 50 rose as much as 0.21 percent to 11,281.25. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.15 percent.

The market breadth was tilted in favour of buyers. 734 stocks advanced and 608 shares declined on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Media Index’s 0.65 percent gain. On the flipside, the NSE Nifty Pharma Index was the top sectoral loser, down 0.73 percent.

The Indian rupee opened lower against the U.S. dollar.

The home currency depreciated as much as 0.33 percent to 70.26 against the greenback. Dealers see the pair to move between 70-70.50 a dollar in the day.

Crude oil prices are steadily rising again - another reason for bond traders to sit tight. This is also the auction Friday and RBI plans to sell Rs 17,000 crore of debt which includes Rs 5,000 crore of the new 2033 bond.

Yield on the benchmark note was little changed at 7.38 percent and dealers see it trading in a range of 7.35-7.40 percent in the session.

Nifty

• Nifty futures closed trading at 11,285, premium of 28 points versus 20.4 points.
• Nifty open interest down 1.5 percent, sheds 2.4 lakh shares in open interest.

Bank Nifty

• Bank Nifty futures closed trading at 28,959.7, premium of 105 points versus 50.8 points.
• Bank Nifty open interest down 13 percent sheds 1.9 lakh shares in open interest.

Options

• Nifty PCR at 1.44 versus 1.13 (across all series).

Nifty Weekly Expiry 23 May

• Max open interest on call side at 12,000 (5.5 lakh shares).
• Max open interest at Put side at 11,200 (3.5 lakh shares).
• Max open interest addition seen at 11,200 Put (+2 lakh shares), 11,000 Put (+1.3 lakh shares).

Nifty Monthly Expiry 30 May

• Max open interest on call side at 12,000 (30.4 lakh shares).
• Max open interest on put side at 11,000 (28.4 lakh shares).

On Bajaj Finance

Deutsche Bank Research

• Maintained ‘Hold’; hiked price target to Rs 2,700 from Rs 2,400.
• March Quarter Review: strong all-round quarter.
• Pristine asset quality; PCR maintained at 60 percent.
• Confidence of broadbased growth rising; rural grows faster.

JPMorgan

• Maintained ‘Overweight’; hiked price target to Rs 3,500 from Rs 3,400.
• March quarter beat estimates, driven by higher loan growth and steady cost income.
• Unsecured business leverage looks to be under control.
• Execution on housing will be key in FY20-22.

Morgan Stanley

• Maintained ‘Equal-weight’; hiked price target to Rs 2,950 from Rs 2,600.
• March Quarter Review: strong delivery in a tough quarter.
• Management comfortable with risk indicators across segments.
• Raise EPS estimates by 9 percent and 8 percent for the current and the next financial year respectively, led by higher fee income and profitability.

On Hindalco

CLSA

• Maintained ‘Sell’ with a price target of Rs 180.
• Weak India business performance in March quarter.
• Falling aluminium cost curve and slowing global auto pose headwinds.
• Concerns on both – Indian and Novelis business.

HSBC

• Maintained ‘Buy’; cut price target to Rs 300 from Rs 320
• March quarter’ Ebitda missed estimates as copper segment disappointed.
• Rising contribution from Novelis, expected recovery in LME and cheap valuation make Hindalco strong investment case.
• Hindalco remains our preferred pick in metals.

More Calls

CLSA on Arvind Fashions

• Maintained ‘Buy’; cut price target to Rs 1,126 from Rs 1,294.
• March quarter was subdued due to weaker demand environment.
• Portfolio consolidation to improve capital efficiency.
• Margin recovery in value retailing format is key.

Morgan Stanley on Bank of India

• Maintained ‘Underweight’ with a price target of Rs 80.
• Moderation in slippages was the key positive.
• Good asset quality; pre-provisioning operating profit was miss on higher cost.
• Loan growth was muted and flat.

UBS on Punjab National Bank

• Maintained ‘Sell’; cut price target to Rs 64 from Rs 70.
• Stake sale cancelled; given low capital cushion, expect bank to cede market share.
• Despite capital infusion, tier-1 capital to stay under pressure.
• Stock appear cheap, by earnings to remain weak in the current and the next financial year.

Nifty Earnings To Watch

• Bajaj Auto
• Dr. Reddy's Laboratories
• Indian Oil Corporation
• UPL

Other Earnings To Watch

• CESC
• Sobha
• Apollo Microreo Systems
• Arvind
• Jubilant Life Sciences
• Bajaj Holdings & Investment
• Balakhrishna Industries
• Birla Cable
• CESC Ventures
• City Union Bank
• Corporation Bank
• Dr. Lal Path Labs
• Engineers India
• Spencer's Retail
• Jtekt India
• Khadim India
• Kirloskar Oil Engines
• National Peroxide
• Onward Technologies
• Paisalo Digital
• PI Industries
• Sanghi Industries
• Sical Logistics
• Siyaram Silk Mills,
• Sundaram Finance Holdings
• Tuticorin Alkali Chemicals & Fertilisers
• Hindusthan National Glass & Industries
• Triveni Enterprises
• Uniphos Enterprises
• Zee Learn

• Punjab National Bank terminated agreement to sell 1.08 crore shares of PNB Housing Finance to General Atlantic Group aggregating to Rs 925.8 crore, as conditions were not met on Long Stop Date of May 15. The Bank continues to remain the sole promoter of PNB Housing Finance.
• Action Construction Equipment: Board approved buyback of 9.9 percent of equity capital to Rs 125 per share, aggregating to Rs 34.25 crore.
• InterGlobe Aviation: Clarified on news of promoters’ differences over airline’s control stating the company is not in a position to comment on such news as it relates to the promoters of the company.
• Infosys: announced stock ownership program for 2019. To grant stock-incentives worth, Rs 10 crore to CEO & MD Salil Parekh and Rs 4 crore to COO UB Pravin Rao.
• ICICI Pru Life Insurance: Reduced its stake in Cyient from 5.02 percent to 2.99 percent.
• Minda Industries: Announced merger of its four wholly owned arm with self. The company said that the rationale behind this merger is to create a stronger standalone entity.
• Trigyn Technologies: Unit awarded IT placement services contract from Houston Independent School District (U.S.), with potential to extend the contract till June 2024.
• KDDL: Unit Ethos opened flagship store in Hyderabad.
• Punjab & Sind Bank: Reviewed its MCLR rate across various tenors with effect from May 16. One-month MCLR at 8.45 percent per annum and one-year MCLR at 8.75 percent per annum.
• IL&FS Investment Managers: Clarified on reports of audit finding 107 cases of shady lending doesn’t apply to the company.
• SREI Infra Finance: Allotted 10.57 lakh NCDs worth Rs 106 crore on May 15.
• Nippon Life to acquire majority of joint venture partner Reliance Capital’s 43 percent stake. The acquisition price values the company at Rs 10,400 crore, while the current market cap of the company is Rs 12,060 crore. (Nikkei)

• Brent crude extended gains fr the third consecutive trading session, ended 1.18 percent higher.
• West Texas Intermediate crude increased 0.4 percent to $63.09 a barrel.
• Gold fell less than 0.1 percent to $1,286.48 an ounce.

London Metal Exchange

• Copper ended higher for the third day, up 0.25 percent.
• Aluminium extended gains for the fifth consecutive trading session, ended 0.27 percent higher.
• Zinc ended higher for the third day, up 0.42 percent.
• Nickel ended higher for the third day, up 0.22 percent.
• Lead ended higher for the third day, up 1.3 percent.
• Tin halted a two-day rally, closed 1.86 percent lower.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.09 percent to 11,295 as of 7:45 a.m.

Asian stocks climbed Friday as positive sentiment carried over from a third day of gains for U.S. equities.

Japanese equity indexes rose more than 1 percent, with gains more modest in Hong Kong, South Korea and Australia. Mainland China shares opened flat.

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.