The benchmark indices made a subdued start to the week with metal stocks taking the heaviest hit after US President Donald Trump's comment that he would raise tariffs on $200 billion of goods to 25 per cent on Friday from 10 per cent roiled the global markets.
Trump's action came as a major Chinese delegation is expected to arrive Wednesday in Washington for the latest round of talks to end the trade war between the world's two biggest economies -- a round billed as the last one and possibly leading to a deal to end the conflict. READ MORE HERE
The S&P BSE Sensex ended the day 363 points, or 0.93 per cent, lower at 38,600, with YES Bank, Tata Motors, Bajaj Finance, Tata Steel, and HDFC among the top losers. Only five of the 30 constituents of the BSE were in green.
The broader Nifty50 index was down 114 points, or 0.97 per cent, at 11,598. About 1,146 stocks declined and 588 shares advanced on the National Stock Exchange.
Only Nifty IT index finished the day in the green while all other sectoral indices ended in the red. Nifty Media index and Nifty Metal index were the top losers, down 2.18 per cent and 2.03 per cent, respectively.
Voltality-measuring index, India VIX, also rose sharply to 10.23 per cent on the day.
In the broader market, the S&P BSE MidCap index dipped 117 points, or 0.79 per cent, at 14,666, while the S&P BSE SmallCap index finished at 14,424, down 124 points, or 0.85 per cent.
Cadila Healthcare shares hit a 52-week low of Rs 292, down 4 per cent in early morning trade on Monday after getting 14 observations from US health regulator for its Moraiya plant. However, the stock recovered later in the day to end 1.22 per cent higher at Rs 307.70. READ MORE
Shares of YES Bank slipped 5.3 per cent to Rs 166.30 after rating agency Icra downgraded the bank's tier-I and tier-II bonds and infrastructure debt on deterioration in the credit quality of large ticket borrowers. READ MORE
Goldiam International bucked the day's trend to surge 11.93 per cent to Rs 113.55 after hitting its 52-week high of Rs 117 earlier in the day after investor Ramesh Damani bought more than 1 percentage point stake in the company through open market. READ MORE
NIKKEI SERVICES PMI
India’s services sector expanded at its slowest pace in seven months in April as some businesses postponed decisions and expansion plans until seeing results of the general election currently under way, a private survey showed on Monday.
The Nikkei/IHS Markit Services Purchasing Managers’ Index slipped to 51.0 in April, the lowest since September, down from 52.0 the previous month. It remained above the 50 mark, the threshold separating growth from contraction, for an 11th consecutive month. CLICK HERE FOR MORE
(With inputs from Reuters)
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3:29 PM IST Tata Chemicals shares surged 9 per cent to Rs 607 on the BSE on Monday in an otherwise weak market after the company’s consolidated Ebitda (earnings before interest, tax, depreciation and amortization) rose 3.6 per cent year-on-year (YoY) at Rs 531 crore in March quarter (Q4FY19). The S&P BSE Sensex was down 1 per cent or 360 points at 38,603 at 3:18 pm. READ MORE
Tata Chemicals surges 9% post March quarter results
Tata Chemicals shares surged 9 per cent to Rs 607 on the BSE on Monday in an otherwise weak market after the company’s consolidated Ebitda (earnings before interest, tax, depreciation and amortization) rose 3.6 per cent year-on-year (YoY) at Rs 531 crore in March quarter (Q4FY19). The S&P BSE Sensex was down 1 per cent or 360 points at 38,603 at 3:18 pm. READ MORE
Goldiam International zooms 54% in four days; stock hits 52-week high
Goldiam International surged by 15 per cent to Rs 117, also its 52-week high, in intra-day trade on the National Stock Exchange (NSE) on Monday, in an otherwise weak market after investor Ramesh Damani bought more than 1 percentage point stake in the company through open market. In the past four trading days, the stock has rallied 54 per cent from the level of Rs 76.20 on April 26, 2019, as compared to 1 per cent decline in the benchmark Nifty 50 index. READ MORE
Raymond zooms almost 5%
Interview of the day :: First Global's Shankar Sharma
High oil prices and the possibility of corporate earnings growth not coming through are the two biggest risks to the Indian equity story, Shankar Sharma, vice-chairman and joint managing director at First Global, tells Puneet Wadhwa. He expects earnings growth in FY20 to be in low single digits CLICK HERE FOR THE FULL INTERVIEW
Shankar Sharma, vice-chairman and joint managing director at First Global (Photo credit: Kamlesh Pednekar)
Reliance Home Finance at new low; Reliance Capital down 6%
Shares of Anil Dhirubhai Ambani Group (ADAG) companies are under pressure in trade on Monday, with Reliance Home Finance hitting a new low, and Reliance Capital (RCap) slipping 6 per cent in intra-day trade on the BSE. The fall comes after Brickwork Ratings (Brickwork) revised the ratings of various existing debt instruments of RCap and continued with the 'credit watch' rating with negative implications READ MORE HERE
Higher non-interest income, stable margins and lower credit cost led to a strong earnings growth for Federal Bank in Q4 FY19. Slippages were below 1% of the loan book and credit cost came at 51bps. We expect the strong momentum in its balance sheet to persist and, now, with lower stable credit costs, profitability would gradually improve in the medium term. Despite headwinds due to floods and higher costs, the bank has achieved an exit RoA of 1%.We retain our positive view on the bank, given the strong business growth outlook, steady margins and stable credit costs. We retain our Buy recommendation, at a higher TP of 115 (earlier Rs 105).
HDFC slips 2%
Buzzing | Morepen Industries rallies over 12% in trade
Vodafone Idea's revenue market share to slip below 25% by FY21: Analysts
As telecom operators race to roll out 4G network to subscribers and repair pricing across the country, analysts have been concerned about the fate of top players. In fact, some analysts feel that Vodafone Idea's revenue market share could slip below 25 per cent over the next 18 months. READ MORE
Foreign investors have good appetite for InvITs, says India Inc
With private equity player KKR becoming a co-sponsor in the India Grid Trust InvIT (infrastructure investment trust) over the weekend, Reliance Jio transferring fibre and telecom assets to two InvITs, and Brookfield’s India Infrastructure Trust investing in a gas pipeline, this specialised investment vehicle is in the spotlight. InvITs, first allowed in 2016, are seen as good option for infra firms to hive off specified assets into a special purpose vehicle, which will get the benefits of owning the asset. READ MORE
Deepak Nitrite soars 8% on stellar March quarter earnings
Shares of Deepak Nitrite soared 8 per cent intra-day Monday to Rs 296 apiece, after the company reported robust 179 per cent growth in standalone net profit at Rs 56.6 crore in March quarter (Q4FY19). It had a profit of Rs 20.3 crore in year-ago quarter.
Revenue from operations rose 23.6 per cent during Q4FY19 at Rs 486 crore against Rs 393 crore in the corresponding quarter of the previous fiscal. READ MORE
ICICI Bank Q4 preview: Analysts see up to 90% rise in PAT, fewer slippages
ICICI Bank is scheduled to announce its March 2019 quarter earnings for the financial year 2018-19 (Q4FY19) on Monday. Hopes are high that the bank will report strong net interest income (NII) on the back of healthy loan growth coupled with a decline in slippages.
Sector analysts believe that the ICICI Bank could achieve this owing to strong credit growth in its retail and SME (small and medium enterprises) portfolio. READ MORE
Nikkei India Services PMI
Falling from 52.0 in March to 51.0 at the start of the 2019 financial year, the seasonally adjusted Nikkei India Services Business Activity Index pointed to the weakest upturn in output since last September. Moreover, the headline figure dipped below the average seen over 2018 (51.6). Growth was linked to greater bookings, improved facilities and effective marketing, though curbed by competitive pressures and the elections.
With growth of manufacturing production also softening to a seven-month low, the seasonally adjusted Nikkei India Composite PMI Output Index fell from 52.7 in to 51.7 in April. The latest figure was indicative of a slight pace of expansion in aggregate activity that was weaker than seen on average over the series history.
Nifty Fin Services index down nearly 1%
NEWS ALERT | China considering canceling trade talks with the United States: WSJ
- The Wall Street Journal, quoting sources, said that the decision on whether talks will be canceled depends on whether Vice Premier Liu He goes to Washington as planned.
- Canceling talks would conform to China’s strategy of not negotiating under threat
YES Bank falls 5% as ICRA downgrades bonds rating
Shares of YES Bank slipped 5 per cent to Rs 167 early morning trade on the BSE on Monday, after rating agency Icra downgraded the bank's tier-I and tier-II bonds and infrastructure debt on deterioration in the credit quality of large ticket borrowers. READ MORE
Sheela Foam down over 2%
Birla Corp gains 3%
ONGC is trading 1% lower
Market outlook by SAMCO Securities
Markets are expected to remain choppy the next few weeks due to the quarterly numbers of companies and the result outcome overhang. Among the various sectors, IT is expected to witness some cool down as it has run up a lot. Private sector banks and cement companies especially Ultratech and Shree Cement can also experience some profit booking while PSU banks led by SBI can bounce back. Small and midcap space is more likely to experience an uptick as the sentiment towards the likelihood of yet another term by the ruling party is building stronger. On the commodity front, avoid metals as the commodity prices internationally are correcting. Investors should start looking for stocks in small cap space and keep them on their watch-list till the election outcome on May 23. Nifty 50 closed the week at 11,712 down by 0.35 per cent compared to the previous week.
Motherson Sumi slips nearly 4%
Canara Bank slips over 1%
ICRA has downgraded ratings of Additional Tier-I bonds to AA- from AA with stable outlook.
Nifty has 11700 as the crucial support for now, a break below 11715 levels will damage the weekly & daily trend. Market continues to have a stock specific move with RIL, ICICI, HDFC Bank, Kotak Bank, etc. The support for the week is seen at 38420/11540 while resistance is seen at 39550/11900. Bank Nifty would have a range of 29400-30540 and has the weekly trend down by 2 weeks. Among Nifty 50 stocks the weightage is tilted more on the negative with 29 stocks weighing 63%.
Bharti Airtel slips ahead of Q4 results
Mcleod Russel India hits fresh low, slips 7%
Cadila hits 52-week low on 14 observations from USFDA for Moraiya plant
Cadila Healthcare shares hit a 52-week low of Rs 292, down 4 per cent in early morning trade on Monday, extending its Friday’s 3.5 per cent fall on the BSE, after getting 14 observations from US health regulator for its Moraiya plant. The US Food and Drug Administration (USFDA) have issued 14 observations after inspecting its manufacturing facility at Moraiya in Ahmedabad, Cadila Healthcare said in a regulatory filing. READ MORE
File photo of Cadila Healthcare's Moraiya facility
Edelweiss on Sunteck Realty
Pick-up in sales in BKC & ODC projects and launch of Naigaon Phase II are key drivers of the stock, in our view. Pending greater clarity regarding certain aspects of the new accounting standard IND-AS 115 adopted w.e.f. April 1, 2018, we continue to follow the old AS. Maintain ‘BUY’ with revised target price of Rs 477 (Rs 452 earlier) as we factor in faster-than-expected completion of under-construction projects
Elara capital on Godrej Consumer Products
We cut our estimates by 11% for FY20E and 13% for FY21Eto factor in 1) low & concentrated volume growth of 7% in FY20E and 12% in FY21E from 12% and 15%, respectively. We roll forward to March 2021E EPS of Rs 17.4 and arrive at a lower target price of Rs 662 from Rs 776 on 38x (unchanged) FY21E earnings. We reiterate Reduce
Equirus Securities on Blue Star (BLSTR)
With strong growth levers in place, we expect 13%/17% revenue/EBITDA CAGR for BLSTR over FY19-FY22E. We maintain sales estimates, see above-industry RAC growth for the company (on price hikes, better product mix), and expect profitability to improve yoy. Accordingly, we raise EBITDA/PAT by 2%/4% for FY20E and 1%/2% for FY21E. Reiterate ADD with a Mar’20 target price of Rs 730
Tata Steel down 3.2%
Antique Stock Broking on HUL
HUL's profit margin expansion will continue during FY20, which will be mainly achieved through cost efficiencies and supply chain cost savings. The management expects demand environment to be stabilize in the medium term. In view of the ensuing moderation in demand, we are cutting our EPS expectations by 2% and 3% for FY20e and FY21e respectively. We now expect revenue CAGR of 12% and net profit CAGR of 16% for HUL's standalone business during FY19-21e. We maintain, recommend HOLD with a revised target price of Rs 1,746
Jefferies on HUL
Hindustan Unilever (HUL) Q4FY19 sales (up 9.3% YoY), EBITDA (up 13.3% YoY) and PAT (12.8% YoY) came broadly in line with our estimates. Though 7% YoY volume growth on a high base of 11% YoY was a positive surprise amidst softer volumes reported by other FMCG companies, pace of margin expansion was a tad below. Given rural demand slowdown in near term and slower pace of margin expansion going ahead, valuation remains rich at ~45x FY21 PE. Maintain HOLD
YES Bank dips almost 3% after Icra downgrades ratings
Tata Motors slips almost 4%
Nifty Metal index is trading over 2% lower
Top gainers and losers on S&P BSE Sensex
Sectoral trend on NSE
Market at open
Sensex opens 400 pts lower at 38,564, Nifty almost 1% down at 11,597
Bharti Airtel Q4 preview: Sharp dip in PAT likely despite revenue growth
Telecom major Bharti Airtel is scheduled to report its March quarter earnings for financial year 2018-19 (Q4FY19) on Monday. Analysts expect the company to report net loss on a year-on-year (y-o-y) basis, even though its wireless revenues are likely to see a sequential jump following the implementation of minimum average revenue per user (ARPU) plans for low-end customers. READ MORE
Sectoral trends on NSE
Top gainers and losers on S&P BSE Sensex during Pre-open trade
Market at pre-open
Rupee opens lower at 69.29/$ vs Friday's close of 69.21 against the US dollar
Market at pre-open
A narrow bull mkt does not give much comfort: First Global's Shankar Sharma
High oil prices and the possibility of corporate earnings growth not coming through are the two biggest risks to the Indian equity story, Shankar Sharma, vice-chairman and joint managing director at First Global, tells Puneet Wadhwa. He expects earnings growth in FY20 to be in low single digits. READ MORE
NEWS ALERT | China central bank to cut reserve requirements for some banks: Reuters
- China’s central bank said on Monday it will cut the reserve requirement ratios (RRRs) for small and medium-sized banks effective from May 15, in a targeted policy measure to help support companies struggling amid an economic slowdown.
- The reduction will release about 280 billion yuan ($41.23 billion) in long-term funding.
NEWS ALERT | China April services sector expands further on strong export sales: Caixin PMI
Activity in China’s services sector further improved in April, with export sales rising at a record pace, Reuters reported. Although the longer-term outlook for new orders stayed subdued due to global economic uncertainties, the Caixin/Markit services purchasing managers’ index (PMI) climbed to 54.5, the highest since January 2018 and slightly up from 54.4 in March.
Asian markets slip on reports of crack in US-China trade deal
CNBC TV18 reported that China is considering to pull out of trade talks scheduled on May 8.
(Image source: Reuters)
FII/FPI & DII trading activity on NSE, BSE and MSEI
It's wild, wild May for Indian stock markets during Lok Sabha elections
The popular stock market adage ‘sell in May and go away’ hasn’t really worked in the context of the Indian markets. The average return for the month of May since 2011 has been 1 per cent for both the Nifty and the Sensex, rendering the adage inconclusive. READ MORE
TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED
Dewan Housing Fin Corp
TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED
Hisar Metal Ind. Limited
ARPIT JAIN HUF
Hisar Metal Ind. Limited
ARPIT JAIN HUF
ITD Cementation India Lim
FRANKLYN TEMPLETON MUTUAL FUND A/C FRANKLIN INDIA FOCUSED E
Jet Airways (India) Ltd.
TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED
Sustaining the premium price tag may be difficult for IT stocks
Pain in the IT sector was once again palpable when Cognizant Technology Solutions sharply cut its revenue and margin guidance for the calendar year (CY) 2019 on Thursday. Even some big Indian IT players have lowered their FY20 guidance. READ MORE
Stocks to watch
Earnings today: Bharti Airtel Limited, Bharat Bijlee Limited, Chennai Petroleum Corporation Limited, Firstsource Solutions Limited, ICICI Bank Limited, Mahindra CIE Automotive Limited, MARICO Limited, Navin Flourine International Limited
Hindustan Unilever: The FMCG major has reported a 13.84 per cent rise in net profit to Rs 1,538 crore for the quarter ended March 31, helped by improvement in margins and volume growth.
L&T Technology Services (LTTS) posted about 21 per cent rise in consolidated net profit to Rs 191.5 crore for the fourth quarter of 2018-19, helped by broad-based growth across industry segments.
Vodafone Idea has signed multi-million dollar IT deal with IBM
Cadila Healthcare: The US FDA has issued 14 observations for the firm's Moraiya facility
Indiabulls Housing Finance: The company's board has approved the merger of IHFL alongwith subsidiary Indiabulls Commerical Credit into and with the Lakshmi Vilas Bank
Canara Bank: ICRA has downgraded ratings of Additional Tier-I bonds to AA- from AA with stable outlook
YES Bank: Icra has downgraded Yes Bank's tier-I and tier-II bonds and infrastructure debt on deterioration in the credit quality of large ticket borrowers.
Street signs: NSE shares in demand, betting on PSU space, and more
NSE shares in demand If the National Stock Exchange (NSE) stock was listed, its shares would have gained following the Securities and Exchange Board of India (Sebi) order in the co-location (colo) case, says market experts. “The colo case was a major overhang. READ MORE
Tariffs on $200 bn of Chinese imports will rise from 10% to 25%: Trump
US President Donald Trump announced Sunday that the United States would raise tariffs on $200 billion of Chinese goods to 25 per cent this week, because trade talks are moving "too slowly".
Trump's action came as a major Chinese delegation is expected to arrive Wednesday in Washington for the latest round of talks to end the trade war between the world's two biggest economies -- a round billed as the last one and possibly leading to a deal to end the conflict. READ MORE
Nifty outlook and top trading calls by Angel Broking
No major movement in the truncated week, 11700 defended successfully
After an extended weekend, our markets had a sluggish opening on Tuesday as there was no major trigger on the domestic as well as global front. Brent crude cooled off a bit but our markets had already discounted it while closing on previous Friday.
During the initial hour, all of a sudden, index took a nosedive and in the process, we once again slipped below the key support of 11,700. Fortunately for us, quite similar to earlier session, we had a good upsurge during the penultimate hour, which pulled the index back into the relatively safer territory. This was followed by two back to back muted sessions to conclude the truncated week tad above the 11,700 mark READ MORE
Short term outlook for markets remain positive; buy JSPL, Raymond
CLOSE- 11,712.25 (03.05. 2019)
Market closed marginally in negative territory on a weekly basis. It consolidated in narrow range for fourth consecutive week and made a high of 11,856.20 levels on Nifty so far in this rally. It consolidated in the range of 11,550-11,800 levels for the entire month of April after sharp surge seen in March. There is a high possibility of wave-III of 5 Extension case in short term towards revised higher levels targets. 11,300 is also another strong support on Nifty for short term. Any kind of decline or consolidation is stock specific buying opportunity till short term reverses. READ MORE
Top trading ideas by Anand Rathi; Buy JSW Steel, Sell McDowell
JSWSTEEL : Bulls have managed to overpower the bears and have given a breakout from its crucial resistance of 300 levels. Now a possibility of an up move towards 330 and higher levels cannot be ruled out. READ MORE
At 8:27 am, Brent crude futures wwere trading at $69.43 per barrel
At 8:26 am, SGX Nifty was trading 76.5 points lower at 11,684 levels
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