Benchmark indices ended Thursday's session in the red, led by losses in financials and metal stocks, after witnessing a sharp last hour sell-off on March series futures & options contracts while brent oil hit $75 per barrel for the first time in 2019.
Brent oil rose above $75 per barrel as quality concerns forced the suspension of some Russian crude exports to Europe while the United States prepared to tighten sanctions on Iran.
The BSE Sensex ended the day 324 points, or 0.83 per cent lower, with Tata Steel, Vedanta, Maruti Suzuki, State Bank of India and Coal India being the top losers. Only three of the 30 constituents of the BSE ended the day in green.
Nifty50, too, pared gains to finish at 11,642, down 84 points, or 0.72 per cent. The market breadth remained in favour of sellers with 963 stocks declining and 777 shares advancing on the NSE.
Among sectoral indices, only Nifty Realty index ended in the green, with Nifty Metal index ending 1.86 per cent lower. The Nifty PSU Bank index also declined 1.56 per cent.
In broader market, the S&P BSE Midcap index fell 88 points, or 0.58 per cent, to 15,130, and the S&P BSE Smallcap index dropped 8 points, or 0.05 per cent, to 14,839.
UltraTech Cement ended the day at Rs 4,622.30, a 5.14 per cent gain, after the company reported strong performance in the March quarter (FY19Q4). The stock also hit its new all-time high of Rs 4,686.30. READ MORE
Six companies - Reliance Industries (RIL), HCL Technologies, Titan Company, Bajaj Finserv, UltraTech Cement, and UPL - from the Nifty50 index hit their respective fresh record highs on the National Stock Exchange (NSE) on Thursday. READ MORE
The stock of Maruti Suzuki ended the day 2.23 per cent lower at Rs 6,868.05 after the company reported a net profit of Rs 1,795.6 crore for the March quarter of financial year 2018-19 (FY19), down 4.6 per cent on year-on-year (YoY) basis. READ THE FULL COVERAGE HEREGLOBAL MARKETS
Asian shares slipped to three-week lows on Thursday as a surprise deterioration in German and South Korean economic data rekindled fears of slowing global growth, while oil prices pulled back slightly after a sharp run-up earlier in the week.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.5 per cent, while Japan’s Nikkei average closed up 0.5 per cent. The Japanese yen traded slightly higher than then previous session’s four-month lows and showed a muted response to a Bank of Japan policy pledge to keep interest rates very low at least until early 2020, even as it retained main policy targets.
(With inputs from Reuters)
3:41 PM IST
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2:53 PM IST Telecom regulator TRAI has directed Dish TV India to comply with the provisions of the new framework for broadcasting and cable TV services, acting on consumer complaints pertaining to the operators' specific offering and grievance redressal helpline.
Telecom regulator TRAI has directed Dish TV India to comply with the provisions of the new framework for broadcasting and cable TV services, acting on consumer complaints pertaining to the operators' specific offering and grievance redressal helpline.
NEWS ALERT | Indiabulls Ventures Q4 result: Net profit at Rs 109.8 crore vs Rs 54.9 crore YoY
Market check | BSE Sensex slips in trade, Market breadth in favour of decline
NEWS ALERT | Select promoters of Eveready pledge 1.17% equity on April 18
Maruti Suzuki declines over 1% after FY19Q4 results
NEWS ALERT | Because of BS-VI and other regulatory norms, prices are going up : Maruti India chairman
Alert: BS-VI stands for Bharat Stage-VI, which is the fuel effeciency norms in India
NEWS ALERT | If overall industry goes up, I expect Maruti to go up as well: Maruti India chairman
The chairman says Maruti has always been ahead of the industry
Result impact | Maruti announces Q4FY19 result
ICICI Direct on Sterlite Technologies
The key highlight of Sterlite Tech’s Q4FY19 performance was superior execution of Navy and other services orders, which led to a beat at topline levels with revenues at Rs 1,791 crore (up 1.1x YoY) vs. estimated topline of Rs1,419 crore.
Sterlite has demonstrated a strong growth trajectory in the past couple of years driven by strong traction in global fibre demand. The recent China Mobile pricing fiasco, however, has clouded overall sentiments. Moreover, huge capacity addition across the globe is also likely to cap the price recovery in near to medium term. The shift of business mix towards services also runs the risk of working capital stress & thin margin. Therefore, we downgrade the stock to REDUCE, valuing it at 12x FY21E (vs. 15x earlier) EPS to arrive at target price of Rs 180/share. Our earnings multiple cut is reflective of lower growth outlook, changing business mix and overhang of pledged shares.
NEWS ALERT | Rupee surpasses Rs 70/$ level
Motilal Oswal on Lemon Tree (LEMONTRE)
- With the Indian hospitality industry at the cusp of an upcycle, Lemon Tree (LEMONTRE) seems all set to cash in on the upswing. It plans to increase owned rooms by 1.5x; of the incremental rooms 68% will come in high demand and high ARR market.
- After establishing itself as a leading player in the mid-priced hotel segment, the company is now leveraging the same to add rooms through management contract route. ARR growth in existing hotels will directly flow to the EBITDA and owned hotels coming up in high ARR markets should also aid in EBITDA growth as cost of operating hotel does not increase proportionately to ARR increase.
- We expect LEMONTRE to deliver revenue/EBITDA CAGR of 29%/45% over FY18-21. We ascribe one-year forward EV/EBITDA of 22x and arrive at a target price of Rs 90. Initiate coverage with Buy rating
CD Equisearch on Finolex
The stock currently trades at 15.5x FY19e EPS of Rs 29.78 and 13.9x FY20e EPS of Rs 33.28. Restoration of price cuts in PVC pipes undertaken in FY18 coupled with recovery in volumes would help Finolex report earnings growth in low teen next fiscal on overall higher operating margin.
Blend of higher capacity utilization and increased margins would doubtlessly spur return on capital - ROE estimated to rise to 16.1% from 12.6% in FY18. Yet risks of little steady demand of PVC pipes from vagaries of monsoons would have no sober effects. On balance, we retain our buy recommendation on the stock with revised target of Rs 599 (previous target: Rs 814) based on 18x FY20e earnings (four year average TTM P/E: 20.9)
Emkay Global on Hexaware
Hexaware’s CC growth of 2.0% qoq was lower than our expectation of 2.5%, largely due to demand deterioration in the BFS vertical. The 40bps qoq decline in EBITDA margins was driven by sub-contractor cost increase (-80bps) and INR appreciation (-40bps)
While Hexaware can deliver good revenue growth in CY19, we believe that rising attrition and sub-contractor costs pose a risk to its EBITDA margin guidance. We maintain our Hold rating on the stock with a target price of Rs380 (based on 16x Mar’21E EPS)
HDFC Securities on Hexaware
Hexaware’s low-teens organic growth trajectory is sustainable supported by its IMS/BPM led growth strategy (negligible legacy). Strong deal wins with 20% growth in TCV (TTM) provides growth visibility including its largest net-new deal (USD 100mn Nordic) which ramps up in 4Q. Geo expansion in Europe/APAC also expected to support growth.
We build USD rev/EPS CAGR of 13/14% over CY18-21E factoring flat margin trajectory. Valuations at 12.8x (discount to tier-2 IT) to be supported by 14% EPS CAGR (in-line with tier-2 IT), 40% RoIC and 5% FCF yield. Key risks include appreciation in INR, slowdown in BFS and value destructive acquisition
· The Nifty APRIL expiry rollover is at 58.06% on Wednesday compared to 58.63% on same day of previous expiry.
· The Banknifty APRIL expiry rollover is at 56.01% on Wednesday compared to 50.52% on same day of previous expiry.
· The Market wide APRIL expiry rollover is at 66.32% on Wednesday as compared to 69.74% on same day of previous expiry.
· The Nifty APRIL rollover is higher than its Three months average of 58.06% and its six months average of 54.8%.
· The Banknifty APRIL rollover is higher than its Three months average of 56.01% and its six months average of 46.85%.
· The market wide rollover is lower than its three months average of 66.57% and higher than its six months average of 64.98%
(Source: Nirmal Bang)
Nifty Metal index slides 1.4%
Bharti Infratel slips 8% on disappointing March quarter results
Bharti Infratel shares slipped 8 per cent to Rs 278 in intraday trade on the BSE on Thursday after the company reported flat consolidated net profit at Rs 608 crore in March quarter due to a decline in revenue.The consolidated revenue during the quarter slipped 2 per cent year-on-year (YoY) at Rs 3,600 crore against Rs 3,662 crore in the same quarter a year ago. Ebitda (earnings before interest, tax, depreciation and amortization) margin contracted 125 bps to 42.61 per cent from 43.86 per cent in previous year quarter. READ MORE
NEWS ALERT | Cadila Health's Zydus gets USFDA nod for generic of Arava tablets
Cement shares surge on hopes of strong volume growth after elections
Shares of cement companies surged by up to 13 per cent on the BSE in intra-day trade on Thursday on the expectation of strong volume growth as infrastructural spending and demand in Housing-For-All scheme are set to gain momentum post elections. Deccan Cements, Orient Cement, Grasim Industries, UltraTech Cement, JK Lakshmi Cement and JK Cement were up between 5 per cent and 13 per cent. India Cements, Sagar Cements, Saurashtra Cement, ACC, Shree Cement, Star Cement and Ambuja Cements were up in the range of 2-4 per cent. In comparison, the benchmark S&P BSE Sensex was up 0.36 per cent at 39,195 points at 12:09 pm. READ MORE
Brent crude hits $75 per barrel
ICICI Direct on Sterlite Technologies
Sterlite has demonstrated a strong growth trajectory in the past couple of years driven by strong traction in global fibre demand. The recent China Mobile pricing fiasco, however, has clouded overall sentiments. Moreover, huge capacity addition across the globe is also likely to cap the price recovery in near to medium term. The shift of business mix towards services also runs the risk of working capital stress & thin margin. Therefore, we downgrade the stock to REDUCE, valuing it at 12x FY21E (vs 15x earlier) EPS to arrive at target price of Rs 180/share. Our earnings multiple cut is reflective of lower growth outlook, changing business mix and overhang of pledged shares.
Grasim Industries climbs almost 7%
RIL, Titan, HCL Tech, UPL, Ultratech, Bajaj Finserv hit fresh record highs
Six companies - Reliance Industries (RIL), HCL Technologies, Titan Company, Bajaj Finserv, UltraTech Cement, and UPL - from the Nifty50 index hit their respective fresh record highs on the National Stock Exchange (NSE) on Thursday. Bata India, DCB Bank, Fine Organic Industries and SRF from the the Nifty500 index too hit their respective all-time highs today. READ MORE
Anand Rathi on Swaraj Engines
We continue to expect positive growth for tractorindustry in FY20 driven by government subsidies and expect Swaraj Engines tobenefit. However, we expect lower growth in FY20 and FY21 and thus expectearnings growth to be muted. We maintain a Buy on the stock at a revised Target Price of Rs 2,139 (earlier Rs 2,312)
RBI tells banks, financial institutions to disclose exposure to IL&FS
The Reserve Bank of India (RBI) has asked banks and financial institutions to declare details of their exposure and provisions related to the troubled Infrastructure Leasing & Financial Services (IL&FS). It said banks and financial institutions must mention the total amount of exposure that are non-performing assets (NPAs) to the IL&FS. READ MORE
JM Financial on Ultratech
UltraTech reported revenue growth of 17 per cent YoY for 4QFY19, primarily on volume growth of 15 per cent. Blended realisations improved by 1 per cent on a sequential basis (+2.1 per cent YoY). EBITDA/t at Rs 988/t grew by 17 per cent YoY as realisation improvement along with lower operating costs and other expenses more than offset raw material cost escalation.
We continue to value the existing assets of the company at 12x EVE and roll forward the target price. TP of Rs 4,700 (Mar’20). Maintain BUY.
Shah Foods down 4.9%
Company has received a letter from Britannia Industries Limited stating that the job work contract is terminated with effect from 30/06/2019.
Buzzing | Automotive Stampings & Assemblies up over 15%
The company reported decline in net loss at Rs 3.82 crore versus loss at Rs 9.1 crore; revenue rises to Rs 139 crore versus Rs 111.9 crore YoY
JM Financial Research on Mahindra & Mahindra Financial
We expect earnings CAGR of 21% over FY19-21E with return on assets (RoA)/ return on equity (RoE) expanding to 2.6%/17% by FY21E. We value MMFS standalone at 2.0x Mar’21E BV implying a value of Rs 461 per share. We value MRHF (Mahindra Rural Housing Finance) at Rs 44 per share and MIBL (Mahindra Insurance Brokers) at Rs 20 per share, implying a TP of Rs 525.
We expect Bharti Infratel share price to be weak on back of 4Q results and a muted near-term outlook. Ignoring working capital changes, BHIN’s consol. FCFE was INR 29-30bn in FY19, implying FCF (free cash flow) yield of 5.0-5.5 per cent. However Bharti Infratel has a growth problem, given weak balance sheets of its key tenants and Jio potentially bringing more supply with its tower hive-off recently. We do not expect meaningful changes to our forecasts and TP; maintain Hold.
We expect a 10% CAGR in earnings over FY19-21 to Rs 998 million. With the company's lean cost structure and strong balance sheet, we value the stock at 26x FY21 (assigning lower multiple for lower growth) EPS of Rs 82.3 and arrive at a revised target price of Rs 2,139 (earlier Rs 2,312). We maintain a Buy.
Risk: Constrained volume growth in M&M tractors.
Top gainers and losers on S&P BSE Sensex
Biocon up over 1% ahead of Q4 result
NSE tightens trading margins for derivatives segment under new framework
The National Stock Exchange (NSE) on Wednesday increased trading margins for the derivatives segment.
“In a joint meeting of exchanges and the Securities and Exchange Board of India, it has been decided that the markets should be altered at different levels of MWPL,” the NSE said in a circular. READ MORE
NEWS ALERT | Vodafone Idea clarifies that total applications for rights issue have exceeded the amount of Rs 25,000 crore
NEWS ALERT | Indiabulls Housing Finance announces dividend payment date
The company, in a filing to BSE said that it will pay an interim dividend of Rs 10 per share on face value of Rs 2 per share for FY20. The record date for determining the eligible members will be May 8, 2019 and dividend will be disbursed on or before May 23, 2019.
The compoany will also issue Secured Non-Convertible Debentures and Unsecured, Redeemable, Non-Convertible Subordinate Debt in the nature of Debentures (NCDs) upto INR 25,000 Crore and INR 1,000 Crores respectively, on private placement basis, in one or more tranches,from time to time.
MRF up Rs 313 apiece on NSE
Tata Steel down 0.41% ahead of Q4 numbers
Grasim Industries up 2.9% on NSE
UltraTech Cement hits 52-week high; up 7% in two days on strong Q4 results
UltraTech Cement shares hit 52-week high of Rs 4,510, up 3 per cent, in early morning trade on Thursday, and have surged 7 per cent in the past two trading days on the BSE, after the company reported strong performance in the March quarter (Q4FY19). The stock surpassed its previous high of Rs 4,490, touched on August 31, 2018 and is 2 per cent away from its all-time high of Rs 4,594, recorded on January 16, 2018 on the BSE in intra-day trade. READ MORE
Ipca Labs up nearly 2%
Drug firm, on April 24, said it has entered into a pact to buy Maharashtra-based Ramdev Chemical for Rs 108.5 crore.
Sector Buzz | Sugar stocks gain
Uttar Sugar Mills up over 8%, Dalmia Bharat Sugar and Industries up 6.81% (BSE quotes)
Syngene International up over 2%
In results announced yesterday for Q4FY19, net profit grew 18.1 per cent YoY to Rs 99.8 crore while revenues grew 30.5 per cent YoY to Rs 533.9 crore.
NEWS ALERT | SpiceJet to add 5 ex-Jet Airways' 737 planes on Friday, reports CNBC TV18
YES Bank up over 2%
Reports suggest, CEO Ravneet Gill is contemplating to replace entire top leadership
Titan slips 1.4 pts after touching record high of 1,164
Compnay touched Market-Cap of Rs 1 trillion
Nifty indices rally, Bank index up over 100 pts
Buzzing: ICICI Prudential up over 3%
M&M Fin down 0.8% after Q4 numbers
Maruti Suzuki down nearly 1% ahead of Q4 numbers
HDFC Securities on ACC
We estimate ACC to deliver 13/16% EBITDA/PAT CAGR during CY18-20E. Given ACC’s healthy cash flow and RoE, and its firming up major expansion plans (20% capacity increase by end CY21E/early CY21E), current valuation (of 9.9x CY20E EBITDA, EV/T of USD 130) is inexpensive. We recommend BUY with a TP of Rs 1,900 (11x its Mar-21E EBITDA and 0.5x its CY20E CWIP). Key risks: Roll back in cement prices, surge in energy costs (crude led).
Bharti Infratel down over 3%
The company declared its Q4 result yesterday and announced a flat net profit of Rs 607.6 crore
Sectoral trends on NSE during Pre-open
Top gainers and losers on S&P BSE Sensex during Pre-open trade
Rupee hits 70/$-mark, opens 13 paise lower against Wednesday's close of 69.87 against the US dollar
Nifty at Pre open
Sensex at Pre-open
Momentum picks by ICICI Securities
NEWS ALERT | Maruti increases price of Baleno RS petrol & diesel variant with immediate effect, reports CNBC TV18
The new ex-showroom price of RS Baleno (petrol) is now Rs 8.88 lakh
The benchmark indices snapped their three-day losing streak, helped by better-than-expected earnings by corporates such as UltraTech cement. In addition, a new record high for the S&P500 — benchmark index for US equities — helped boost investor sentiment towards risky assets.
The Sensex climbed 1.3 per cent, or 490 points, to close at 39,055 on Wednesday, its steepest daily gain in more than six weeks. The Nifty closed at 11,726, up 150 points or 1.3 per cent — its biggest advance since January 31. Short-covering ahead of expiry of the April series derivatives. READ MORE.
Market outlook by Prabhudas Lilladher
Market after a brief consolidation & Nifty holding on to a crucial support of 11,550, witnessed a good bounce & moved past the near term resistance of 11,650 to close above 11,700. We may witness further short covering & perhaps buying & participation once again coming from almost all sectors. IT as mentioned continues to be in green. The support for the day is seen at 38,760/11,660 while resistance 39,350/11,790. Bank Nifty would have a range of 29,560-30,180.
Axis Bank Q4 preview: Analysts see up to 26% jump in PAT QoQ, NIM to improve
Axis Bank, India’s third largest private sector lender is set to announce its fourth quarter (January-March) results for 2018-19 on Thursday. Analysts are expecting a broad-based growth across all segments of the bank on the back of improved asset quality across the financial sector, coupled with improving liquidity and falling interest rates. Moreover, hopes are high from the new managing director and chief executive officer (MD&CEO) Amitabh Chaudhry, a seasoned investment banker, to turn the bank around. READ MORE
Maruti Suzuki will release its fourth quarter (January-March) results of the financial year 2018-19 (FY19) on Thursday. Brokerages expect the company to report slim revenue growth due to weak volume and average sale price (ASP) growth -- factors that have plagued the entire auto sector -- and a slip in net profit.
Automobile industry delivered a subdued volume performance in 4QFY19 with single-digit year-on-year (YoY) volume decline across segments led by spill-over effect of muted festive season, which resulted into higher inventory at the beginning of the quarter. Moreover, weak demand led to lower quarterly retail offtake. READ MORE
Today's picks: From HDFC to Tata Motors, hot stocks to buy on Thursday
Current 11,726 (fut: 11,823),
Stop-long positions at 11,725. Stop-short positions at 11,870. Big moves could go till 11,675, 11925. A long May 30, 11,600p (39), long 11,900c (55) can be offset with short May 02, 11,600p (23), short May 02, 11,900c (15). READ MORE
Stock calls by Tradebulls Securities: Buy Bharat Financial, Bata India
The Nifty50 index recovered after testing the lower consolidation support levels of 11,550. Open interest (OI) concentration band for monthly expiry shifted higher, currently standing at a narrow range of 11,700-11,800. A sharp recovery along with deescalating VIX from elevated levels augur well for sustenance of the upmove targeting the upper end resistance of the consolidation placed around 11,810. We expect the index to oscillate within the range of 11,810-11,550 for some more time before it commences its major up move. READ MORE
Maruti, Ipca Labs, Tata Steel, M&M Finance and Biocon may hog the limelight
Here's a look at the top stocks that may remain in focus today -
Earnings today: As many as 22 companies are slated to release their March quarter earnings today. Some of the notable names include Maruti Suzuki India, Tata Steel, Axis Bank, MCX, Biocon, Cochin Malabar Estate, Indiabulls Ventures, Nestle India and SBI Life Insurance.
Bharti Infratel: Bharti Infratel’s net profit for the fourth quarter of 2018-19, remained flat at Rs 607.6 crore amid the proposed mergers and acquisitions in the tower business due to consolidation of the telecom industry. Its net profit was Rs 606 crore in the same quarter a year before.
M&M Finance: The company on Wednesday reported an 87 per cent rise in net profit to Rs 588 crore for the fourth quarter ended March 2019. READ MORE