Sensex, Nifty Resume Record Closing Spree On F&O Expiry Day After One-Day Blip
Catch all the live updates on share prices, index moves, corporate announcements and more from Sensex and Nifty today.
KEY HIGHLIGHTS
BQ Live
Closing Bell: Sensex, Nifty Resume Gains After One-Day Blip
Indian equity benchmarks resumed their record closing spree on derivatives expiry day after a one-day blip.
The S&P BSE Sensex closed 0.84 percent or 330 points higher at 39,831.97 and the NSE Nifty 50 ended at 11,945.90, up 0.71 percent. The broader market index represented by the NSE Nifty 500 Index ended 0.6 percent higher. In the May series, the 50-share gauge ended 2.6 percent higher.
The market breadth was slightly tilted in favour of buyers. About 877 stocks advanced and 872 shares declined on National Stock Exchange.
Six out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Financial Services Index’s 1.2 percent gain. On the flipside, the NSE Nifty Auto Index was the top sectoral loser, down 0.56 percent.
Stocks Moving On Heavy Volumes
Jagran Prakashan
- Stock rose as much as 7.9 percent to Rs 7.9 percent to Rs 119.70.
- Trading volume was 50 times its 20-day average.
Alkem Laboratories
- Stock rose as much as 4 percent to Rs 1,799.
- Trading volume was more than nine times its 20-day average.
IFB Industries
- Stock fell as much as 5.7 percent to Rs 756.
- Trading volume was more than six times its 20-day average.
Ericsson Considering New Clauses To Avoid RCom-Like Situations
Swedish telecom gear maker Ericsson is considering tweaking provisions in business deals to avoid situations like those it is facing with Reliance Communications Ltd.
The company sued RCom and its promoter Anil Ambani to recover dues of about Rs 1,500 crore, of which it managed to receive only Rs 550 crore.
"We think fairness sort of came true in the end. But of course, as we sell new deals...we try to avoid those things. But it is hard to tell because who could have seen that coming. That was a tough period," Peter Laurin, senior vice president and head of business area managed services at Ericsson said.
Source: PTI
Europe Market Check: Equities Gain
European equities opened in the green on Thursday as oil’s gains boosted crude producers, outweighing pessimistic headlines about the lack of progress in the U.S.-European Union trade talks.
Source: Bloomberg
What Adlabs Imagica’s Accounting Move Reveals
A recent accounting move by Adlabs Entertainment Ltd. revealed some dismaying news about the company’s financial future.
Market Check: Sensex, Nifty At Day’s High
Indian equity benchmarks were at day’s high. Sensex rose over 300 points and Nifty traded near 11,950.
Block Deal Alert: NALCO
About 11.2 lakh shares of NALCO changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.
Nifty IT Top Sectoral Performer; Nifty Auto Falls 0.5%
Eight out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty IT Index’s 0.6 percent gain. On the flipside, the NSE Nifty Auto Index was the top sectoral loser, down 0.53 percent.
F&O Check: Nifty 12,000 Call Option Gains Falls Over 25%
Nifty’s 12,000 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the contract fell 25.45 percent to Rs 4. Over 6.68 lakh shares were added to the open interest which stood at over 60.10 lakh shares.
Stocks Reacting To Results Announcement
Power Grid Corporation (Q4, YoY)
- Stock rose as much as 1.9 percent to Rs 193.90.
- Revenue up 18 percent to Rs 9,218.1 crore.
- Net profit up 51.9 percent to Rs 3,054 crore.
- Ebitda up 19.4 percent to Rs 7,793.4 crore.
- Margin at 84.5 percent versus 83.5 percent.
- Deferred tax reversal of Rs 6,013.9 crore.
- Transmission segment revenue up 19 percent to Rs 8983.8 crore.
Adani Power (Q4, YoY)
- Stock rose as much as 6.3 percenbt to Rs 51.40.
- Revenue up 68.8 percent to Rs 6,721.7 crore.
- Net profit at Rs 634.64 crore versus net loss of Rs 653.3 crore.
- Ebitda down 50.7 percent to Rs 608.2 crore.
- Margin at 9.1 percent versus 30.9 percent.
Hawkin Cooker (Q4, YoY)
- Stock fell as much as 2.6 percent to Rs 2,925.
- Revenue up 9 percent to Rs 184.7 crore.
- Net profit up 5.1 percent to Rs 13.5 crore.
- Ebitda up 5.4 percent to Rs 22 crore.
- Margin at 11.9 percent versus 12.3 percent.
Tourism Finance Corporation (Q4, YoY)
- Stock rose as much as 1.3 percent to Rs 124.40.
- Revenue up 13.4 percent to Rs 63.13 crore.
- Net profit up 61.8 percent to Rs 25.53 crore.
- Ebitda up 17.9 percent to Rs 56.59 crore.
- Margin at 89.6 percent versus 86.2 percent.
- Other income of Rs 5.78 crore.
Nava Bharat Ventures (Q4, YoY)
- Stock fell as much as 9.8 percent to Rs 96.30.
- Revenue down 12.5 percent to Rs 773.7 crore.
- Net profit down 59.2 percent to Rs 70.8 crore.
- Ebitda down 26.4 percent to Rs 303.46 crore.
- Margin at 39.2 percent versus 46.6 percent.
Mishra Dhatu Nigam (Q4, YoY)
- Stock rose as much as 1.3 percent to Rs 139.
- Revenue up 8.2 percent to Rs 336.4 crore.
- Net profit up 3.6 percent to Rs 80.29 crore.
- Ebitda down 4.1 percent to Rs 110.69 crore.
- Margin at 32.9 percent versus 37.1 percent.
Excel Crop Care (Q4, YoY)
- Stock rose as much as 8.6 percent to Rs 3,368.
- Revenue up 31.8 percent to Rs 273.22 crore.
- Net profit of Rs 4.73 crore versus net loss of Rs 0.52 crore.
- Ebitda up 2.4 times to Rs 11.77 crore versus Rs 4.86 crore.
- Margin at 4.3 percent versus 2.3 percent.
Ruchi Soya Industries (Q4, YoY)
- Stock rose as much as 3.9 percent to Rs 7.95.
- Revenue up 20.1 percent to Rs 3,146.33 crore.
- Net profit at Rs 32.1 crore versus net loss of Rs 423.55 crore.
- Ebitda profit of Rs 35.9 crore versus Ebitda loss of Rs 374.34 crore.
- Ebitda includes provision for bad debts of Rs 3.4 crore versus Rs 314 crore
Gujarat Narmada Valley Fertilizer & Chemicals (Q4, YoY)
- Stock fell as much as 7.1 percent to Rs 286.25.
- Revenue down 18.9 percent to Rs 1430.9 crore.
- Net profit down 71.5 percent to Rs 93.6 crore.
- Ebitda down 77.7 percent to Rs 104.81 crore.
- Margin at 7.3 percent versus 26.6 percent.
Bharat Electronics (Q4, YoY)
- Stock rose as much as 3.4 percent to Rs 116.
- Revenue up 7.3 percent to Rs 3,884.6 crore.
- Net profit up 19.7 percent to Rs 668.6 crore.
- Ebitda up 16.7 percent to Rs 929 crore.
- Margin at 23.9 percent versus 22 percent.
United Spirits (Q4, YoY)
- Stock fell as much as 1.9 percent to Rs 525.25.
- Revenue up 3.5 percent to Rs 2,250 crore.
- Net profit down 40.2 percent to Rs 126.2 crore.
- Ebitda up 2.9 percent to Rs 283.6 crore.
- Margin at 12.6 percent versus 12.7 percent.
- Other Income of Rs 121 crore in base quarter.
J Kumar Infraprojects (Q4, YoY)
- Stock fell as much as 4.9 percent to Rs 160.
- Revenue up 24.8 percent to Rs 968 crore.
- Net profit up 4.6 percent to Rs 57.3 crore.
- Ebitda up 14.1 percent to Rs 134.1 crore.
- Margin at 13.9 percent versus 15.1 percent.
IOL Chemicals & Pharma (Q4, YoY)
- Stock rose as much as 3.2 percent to Rs 235.
- Revenue up 46.9 percent to Rs 422.3 crore.
- Net profit up 8.8 times to Rs 101.7 crore.
- Ebitda up 4.9 times to Rs 157.1 crore.
- Margin at 37.2 percent versus 11.2 percent.
- Inventory gain of Rs 24.5 crore.
Garden Reach Shipbuilders & Engineers (Q4, YoY)
- Stock rose as much as 9.7 percent to Rs 128.50.
- Revenue down 22.4 percent to Rs 489.2 crore.
- Net profit down 51.4 percent to Rs 33.6 crore.
- Ebitda down 11.6 percent to Rs 31.2 crore.
- Margin at 6.4 percent versus 5.6 percent.
Rail Vikas Nigam (Q4, YoY)
- Stock fell as much as 3.7 percent to Rs 27.70.
- Revenue up 29 percent to Rs 3,418.4 crore.
- Net profit up 13.6 percent to Rs 185.8 crore.
- Ebitda up 20.4 percent to Rs 177.4 crore.
- Margin at 5.2 percent versus 5.6 percent.
MIRC Electronics (Q4, YoY)
- Stock fell as much as 9.2 percent to Rs 20.35.
- Revenue down 17.3 percent to Rs 155.9 crore.
- Net loss at Rs 2.4 crore versus net profit of Rs 4 crore.
- Ebitda down 32.7 percent to Rs 3.7 crore.
- Margin at 2.4 percent versus 2.9 percent.
MSTC (Q4, YoY)
- Stock rose as much as 3.6 percent to Rs 104.45.
- Revenue down 13.9 percent to Rs 734.4 crore.
- Net loss of Rs 2.4 crore versus net profit of Rs 4 crore.
- Ebitda profit of Rs 3.7 crore versus Ebitda loss of Rs 501 crore.
- Other income of Rs 459.5 crore in base quarter (Provision write-back)
SJVN (Q4, YoY)
- Stock rose as much as 8.9 percent to Rs 27.60.
- Revenue up 2.3 times to Rs 805.2 crore.
- Net profit up 3.7 times to Rs 458.9 crore.
- Ebitda up 3 times to Rs 625.1 crore.
- Margin at 77.6 percent versus 59.8 percent.
- Finance cost down 99 percent to Rs 0.5 crore.
NBCC (Q4, YoY)
- Stock rose as much as 2 percent to Rs 63.90.
- Revenue up 7 percent to Rs 3,138 crore.
- Net profit down 8 percent to Rs 137 crore.
- Ebitda down 18.7 percent to Rs 157.8 crore.
- Margin at 5 percent versus 6.6 percent.
GMR Infrastructure (Q4, YoY)
- Stock fell as much as 2.2 percent to Rs 15.70.
- Revenue down 6 percent to Rs 1,983 crore.
- Net loss of Rs 2,341 crore versus net profit of Rs 5 crore
- Ebitda down 25 percent to Rs 309 crore.
- Margin at 15.6 percent versus 19.6 percent.
- Exceptional loss of Rs 2212 crore booked as impairment loss related to investments in GMR Energy
Block Deal Alert: NTPC
About 20.8 lakh shares of NTPC changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.
M&M Falls After CLSA Cuts Price Target
Shares of Mahindra & Mahindra fell as much as 1.9 percent to Rs 659.50 as CLSA cut its price target after the company announced its quarterly results.
The research firm slashed its price target to Rs 690 from Rs 850, according to its report.
Here’s what CLSA had to say:
- Downgraded to ‘Underperform’ from ‘Buy’.
- March quarter was weak but better than estimates.
- Tractor industry demand coming under pressure.
- Sharp fall in legacy SUV volumes eating into the benefit of new launches.
International Paper Falls, West Coast Pape Jumps After Signing Pact
Shares of the International Paper APPM fell as much as 4.5 percent to Rs 408.70 while shares of West Coast Paper rose as much as 13 percent to Rs 297.
Promoter group International Paper entered into an agreement with West Coast Paper Mills to sell its controlling stake in the company, according to an exchange filing.
As per the tender offer, West Coast Paper Mills will acquire 51 percent to 60 percent stake in the company. International Paper holds 75 percent stake in the company.
Trading volume was almost 50 times its 20-day average, Bloomberg data showed. Of the shares traded, 40 percent were at the ask price and 45 percent were at the bid.
Opening Bell: Sensex, Nifty Fluctuate
Indian equity benchmarks fluctuated between gains and losses in the opening trade.
The S&P BSE Sensex traded 75 points or 0.19 percent higher at 39,575 as of 9:17 a.m. and the NSE Nifty 50 traded at 11,882.80, up 0.19 percent. The broader market index represented by the NSE Nifty 500 Index rose 0.17 percent.
The market breadth was tilted in favour of buyers. About 789 stocks advanced and 558 shares declined on National Stock Exchange.
Ten out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty IT Index’s 0.55 percent gain. On the flipside, the NSE Nifty Media Index was the only sectoral loser, down 0.3 percent.
Money Market Update: Rupee Opens Higher
The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.18 percent to 69.70 against the greenback.
The sovereign bonds are likely to drop today as a rise in crude oil prices on plunging U.S. inventory concerns hurt. The yield on the benchmark 2029 government debt fell two basis points to 7.13 percent yesterday.
BQ Heads-Up: Fund Flows, Indian ADRs, Insider Trading, Who's Meeting Whom
Your Complete F&O Trade Setup
Futures
Nifty
- Nifty May futures closed trading at 11862, premium of 1.2 points versus 12 points.
- Nifty futures open interest across series up 5 percent, adds 13 lakh shares.
Bank Nifty
- Bank Nifty May futures closed trading at 31317, premium of 21.7 points versus 31 points.
- Bank Nifty open interest across all series down 3 percent, sheds 67,000 shares.
Rollovers
- Nifty Rollover at 52 percent, Bank Nifty Rollover at 55 percent.
Options
- Nifty PCR at 1.15 versus 1.27 (across all series).
Nifty Monthly Expiry 30 May
- Max open interest on call side at 12,000 (53.4 lakh shares).
- Max open interest on Put side at 11,000 (33.7 lakh shares).
- Max open interest addition seen at 12,000 (+12.9 lakh shares), 11,950C (+9 lakh shares).
Stocks In F&O Ban
- In Ban: Adani Power
- Out Of Ban: PC Jewellers
Brokerage Radar: Aurobindo Pharma, Cadila Healthcare, Mahindra & Mahindra
On Aurobindo Pharma
Citi
- Maintained ‘Buy’; hiked price target to Rs 890 from Rs 840.
- March quarter was in line; Sandoz's U.S. generic acquisition on track.
- Ebitda margin impacted by recalls and failure to supply penalties.
- Management tried to diffuse some concerns regarding the impact of recent OAIs.
HDFC Securities
- Upgraded to ‘Buy’ from ‘Neutral’; maintained price target at Rs 800.
- Upgrade owing to attractive valuations after the recent fall in stock price.
- Believe concerns are misplaced as only five to six products are dependent on these plants.
- With high visibility of FY21 earnings per share at Rs 53.2 due to Sandoz acquisition, we see this as good entry point.
CLSA
- Upgraded to ‘Buy’ from ‘Outperform’; cut price target to Rs 830 from Rs 850.
- Upgrade to buy on attractive valuations.
- U.S. continues to grow well despite a high base.
- Focus on integration of acquisitions over next two years.
On Cadila Healthcare
Macquarie
- Maintained ‘Outperform’; cut price target to Rs 340 from Rs 372.
- New launches to offset Moraiya hit.
- Cut EPS estimates for the current and the next financial year by 13 percent and 12 percent respectively to factor in OAI for Moraiya.
- Stock is down 25 percent, see this as a buying opportunity.
CLSA
- Maintained ‘Sell’ with a price target of Rs 250.
- In-line operationally, net profit beat driven by higher other income.
- U.S. sales declined QoQ and likely to be under pressure in 2019-20.
- Classification of Moraiya plant by U.S. FDA over the next three months will be keenly watched out for.
More Calls
Macquarie on United Spirits
- Maintained ‘Neutral’ with a price target of Rs 583.
- March quarter results were below expectations; Overall volume growth at 2 percent.
- Refrain from extrapolating March quarter numbers as pricing and volume to increase.
- United Spirits has levers to cut operating cost in the medium term.
CLSA on Mahindra & Mahindra
- Downgraded to ‘Underperform’ from ‘Buy’; cut price target to Rs 690 from Rs 850.
- March quarter was weak but better than estimates.
- Tractor industry demand coming under pressure.
- Sharp fall in legacy SUV volumes eating into the benefit of new launches.
CLSA on Lemon Tree
- Maintained ‘Buy’ with a price target of Rs 89.
- Occupancy remains strong, but ADR growth disappoints at 4 percent.
- Pipeline of managed rooms was strong, continuing its focus on a shift to an asset-light model.
- See multiple growth and profitability triggers ahead.
CLSA on Power Grid
- Maintained ‘Outperform’ with a price target of Rs 217.
- Net profit growth for the previous financial slows as HVDC project scheduled for the second half is delayed.
- Earnings slowdown ahead as capitalisation peaked.
- Large thermal generation and green corridor capex pick-up critical.
CLSA on Havells India
- Maintained ‘Outperform’; cut price target to Rs 780 from Rs 815.
- Delayed summer season and low government spending drive earnings miss.
- Cables margin steady and lighting revenue growth strong.
- Lloyd’s backward integration to drive margin expansion.
Trading Tweaks: Stocks Moving Into Short Term ASM Framework
- DCM ex-date for demerger.
- IIFL Holdings ex-date for spin-off.
- J.Kumar Infraprojects, Manpasand Beverages, MIRC Electronics , Sundaram Brake Linings to move into short term ASM Framework.
- Indiabulls Venture to move out of short term ASM Framework.
- Adhunik Industries to move into ASM Framework.
- Camlin Life Sciences price band revised to 10 percent.
- 5paisa Capital price band revised to 5 percent.
Q4 Corner: Earnings To Watch
Nifty Earnings To Watch
- Coal India
- Oil & Natural Gas Corporation
Other Earnings To Watch
- Ujjivan Financial Services
- IDBI Bank
- Berger Paints
- National Aluminium Company
- Entertainment Network
- Ahluwalia Contracts
- Prabhat Dairy
- Pricol
- Infibeam Avenues
- Jindal Poly Films
- Sadbhav Engineering
- Shivalik Rasayan
- Suzlon Energy
- Greenply Industries
- Alkem Laboratories
- Apollo Hospitals Enterprise
- Ashapura Minechem
- Avon Lifesciences
- Munjal Showa
- Uniply Industries
- Unitech
- Bajaj Healthcare
- Bharat Dynamics
- Bharat Gears
- Bharat Rasayan
- Binani Industries
- Cox & Kings
- Deepak Fertilisers & Petrochemicals
- Dredging Corporation of India
- Essar Shipping
- Everest Kanto Cylinder
- Forbes & Company
- GMM Pfaudler
- Godfrey Phillips
- Sundaram Finance
- Greenlam Industries
- Gujarat Apollo Industries
- HCL Infosystems
- Hinduja Global Solutions
- IL&FS Investment Managers
- Jindal Worldwide
- KNR Constructions
- Mahanagar Telephone Nigam
- Mcleod Russel
- Mcnally Bharat Engineering
- Mirza International
- MMTC
- Nath Bio-Genes
- NCL Industries
- NLC India
- Omkar Speciality Chemicals
- Panacea Biotec
- Reliance Infrastructure
- Signet Industries
- Vipul
- Sonata Software
- Steel Authority of India
- Sumeet Industries
- Tide Water Oil Company
- TTK Healthcare
- Williamson Magor & Company
- Vadilal Enterprises
- Manpasand Beverages
- Kwality
Stocks To Watch: Cholamandalam Investment, International Paper, Tata Power, HDFC
- International Paper APPM: Promoter group International Paper entered into an agreement with West Coast Paper Mills to sell its controlling stake in the company. As per the tender offer, West Coast Paper Mills will acquire 51 percent to 60 percent stake in the company. International Paper holds 75 percent stake in the company.
- Tata Power’s two arms entered into agreement to sell their entire stake in Nelito Systems worth Rs 15.6 crore to Japan-based DTS Corporation.
- IOL Chemicals and Pharma: Board approved increasing capacity for Ibuprofen from 10,000 MT to 12,000 MT and for Iso Butyl Benzene from 9,000 MT to 12,000 MT, per annum respectively for a capex of Rs 1 crore.
- HDFC: Board approved subsidy worth Rs 22,136 crore to over 1.04 lakh homebuyers under Pradhan Mantri Awas Yojna-CLSS scheme
- Jaypee Infratech clarified on the news of Adani Group offering Rs 500 crore to the lenders stating that no such negotiations took place.
- Nava Bharat Ventures: Board approved buyback of 15.6 lakh shares to Rs 160 per share aggregating to Rs 25 crore. Buyback is at a premium of 50 percent to the current market price.
- Goa Carbon said operations in its Goa unit have resumed with effect from May 25
- AIA Engineering: Bhupesh Porwal resigned from the post of chief financial officer with effect from May 29.
- Cholamandalam Investment and Finance entered into an agreement to raise $222 million debt funds in U.S. dollar bonds International World Bank Group’s International Financial Corporation.
- Engineers India: ONGC approved nomination of BN Reddy as the government director in the board of the government.
- Vakrangee appointed Gopal Bihani as CFO with effect from May 29
Commodity Cues: Brent Crude Trades Below $70 A Barrel
- Brent crude fell 0.35 percent to $67.85 per barrel.
- West Texas Intermediate crude rose 0.5 percent to $59.12 a barrel.
- Gold was steady at $1,279.62 an ounce.
London Metal Exchange
- Copper halted a two-day gain, closing 1.3 percent lower.
- Zinc snapped a two-day rally, ending 0.82 percent lower.
- Nickel ended lower for the second day, down 0.64 percent.
- Lead ended 0.44 percent higher.
- Aluminium halted a three-day gain, closing 0.66 percent lower.
Nifty Futures Suggests Tepid Start; Asian Stocks Mixed
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fluctuated between gains and losses to trade little changed at 11,868 as of 8 a.m.
Asian equities were mixed Thursday as investors continued to assess the global-growth outlook amid heightened trade tensions.
Shares in South Korea clawed back some of Wednesday’s slide and equities in Hong Kong rose. Stocks dropped in Japan, China and Australia.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.