Sensex tanks 383 pts, Nifty holds 11,700 in volatile trade; India VIX up 8%

Benchmark indices ended around 1 per cent lower on Tuesday as the previous day's exit poll euphoria gave way to profit-booking by investors, including in some index heavweights.

The indices hit a record-high at opening, with the S&P BSE Sensex touching the 39,571.73-mark while Nifty reached 11,883.55 levels, before trimming gains in a volatile session that saw India VIX rise over 8 per cent.

 
The S&P BSE Sensex ended the day 383 points lower at 38,970, with Tata Motors, Maruti Suzuki, IndusInd Bank, Mahindra & Mahindra, and Bharti Airtel emerging as the top losers. Only three out of the 30 constituents of BSE ended the day in the green.

The broader Nifty50 also slipped 119 points to settle at 11,709. The market breadth remained in the favour of sellers with about 1,145 stocks declining and 609 stocks advancing on the NSE.

All the sectoral indices ended the day in red, with Nifty Auto and Nifty Media taking the biggest hits, down 2.52 per cent and 2.32 per cent, respectively.

In the broader market, the S&P BSE MidCap index lost 0.84 per cent, or 124 points, to settle at 14,695, while the S&P BSE SmallCap index dipped 88 points, or 0.61 per cent, to rule at 14,293.

BUZZING STOCKS

Bajaj Finance entered the elite club of companies with a market capitalisation (market-cap) of Rs 2 trillion after the company's stock price hit a new high on the BSE in intra-day trade on Tuesday. The stock hit a new high of Rs 3,485, up 2.3 per cent on the BSE. At 09:53 am; Bajaj Finance's market-cap stood at Rs 2.01 trillion, the exchange data shows. READ MORE

Torrent Pharmaceuticals shares slipped 8 per cent to Rs 1,525 on the BSE in the early morning trade on Tuesday after it reported a consolidated net loss of Rs 152 crore in March quarter (Q4FY19). The drug firm had posted a consolidated profit of Rs 228 crore in the year-ago quarter. READ MORE

Click here for more buzzing stocks of the day


4:01 PM IST

4:01 PM IST

3:44 PM IST The S&P BSE Sensex ended at 38,970, down 383 points while the broader Nifty50 index settled at 11,709, down 119 points

3:29 PM IST

3:13 PM IST Tata Motors slipped 8 per cent to Rs 174 on the BSE in intra-day trade after the automaker reported a 47 per cent drop in net profit at Rs 1,117 crore for March quarter (Q4FY19). Consolidated revenue was down 4 per cent at Rs 86,422 crore on year-on-year (YoY) basis. Ebitda (earnings before interest, tax, depreciation and amortisation) margin came in at 9.4 per cent, down 258 basis points (bps) YoY and up 151bps on quarter-on-quarter (QoQ) basis. READ MORE

3:07 PM IST COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%) ADANI PORTS 390.50 412.00 -9.80 -2.45 AXIS BANK 773.00 791.00 -9.75 -1.25 BAJAJ FIN. 3413.05 3484.90 6.35 0.19 BAJAJ FINSERV 8155.00 8327.70 -63.10 -0.77 CITY UNION BANK 208.05 209.85 3.65 1.79 » More on 52 Week High

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Sectoral trend on NSE


Heatmap: S&P BSE Sensex


Market at close

The S&P BSE Sensex ended at 38,970, down 383 points while the broader Nifty50 index settled at 11,709, down 119 points

Bharti Airtel trades lower


Tata Motors skids 8% as Q4 profit slips 47% to Rs 1,117 crore

Tata Motors slipped 8 per cent to Rs 174 on the BSE in intra-day trade after the automaker reported a 47 per cent drop in net profit at Rs 1,117 crore for March quarter (Q4FY19). Consolidated revenue was down 4 per cent at Rs 86,422 crore on year-on-year (YoY) basis. Ebitda (earnings before interest, tax, depreciation and amortisation) margin came in at 9.4 per cent, down 258 basis points (bps) YoY and up 151bps on quarter-on-quarter (QoQ) basis. READ MORE



Stocks that hit 52-week high on S&P BSE Sensex

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
ADANI PORTS 390.50 412.00 -9.80 -2.45
AXIS BANK 773.00 791.00 -9.75 -1.25
BAJAJ FIN. 3413.05 3484.90 6.35 0.19
BAJAJ FINSERV 8155.00 8327.70 -63.10 -0.77
CITY UNION BANK 208.05 209.85 3.65 1.79
» More on 52 Week High

Nifty PSU Bank index trades 1.7% lower, dragged down by Union Bank and Indian Bank


Buzzing | Jet Airways sees sharp surge


Market breadth in favour of decline


Market check | Nifty50 hovers around 11,700, down over 1%


Jet Airways extends gains on reports of talks with Hinduja Group


Market check | Sensex loses over 400 points


MARKET CHECK


Maruti Suzuki dips over 2%


ICICI Securities on Graphite India

While global graphite electrode prices have witnessed a softening trend; the uptick in prices of key raw material (viz. needle coke) is likely to impact the
company’s margin profile. We downward revise capacity utilisation level to 82.0% for FY20E (from 85% earlier) and introduce FY21E capacity utilisation at 82.0%. We value the stock at 6x FY21E EPS and arrive at a target price of Rs 400. We have a HOLD recommendation on the stock.

NCDEX plans IPO to provide exit option to early investors, raise capital

The country's largest agri-centric commodity derivative exchange, the National Commodity & Derivatives Exchange Limited (NCDEX), is working on a plan to float an Initial Public Offering (IPO) in order to provide an exit option to some shareholders who have stayed invested since long and raise growth capital. The National Stock Exchange of India or NSE is the largest shareholder with 15 per cent equity holding. The irony is that NSE has not been able to come out with an IPO. READ MORE



Illustration: Ajay Mohanty

JK Cement surges 17% in two days on strong Q4 earnings; hits 52-week high

JK Cement shares hit a 52-week high of Rs 994, up 10 per cent on Tuesday, surging 17 per cent in the past two trading days, after reporting a 55 per cent year-on-year (YoY) growth in its net profit at Rs 150 crore in March quarter (Q4FY19). The company had repprted a profit of Rs 96 crore in year-ago quarter. Net sales grew 12 per cent at Rs 1,470 crore against Rs 1,307 crore in the corresponding quarter of previous fiscal. Ebitda (earnings before interest, tax, depreciation and amortization) margin improved 490 bps at 18.7 per cent in Q4FY19, on back of healthy realisation. READ MORE




Nifty Media index tumbles around 2.5%


Jet Airways zooms over 7% on reports of Etihad, Hindujas meet in Abu Dhabi on May 23


China's market turning sour as trade war pushes foreigners away

Expectations that US$200 billion of foreign money would flow into China’s capital markets this year are looking nothing short of optimistic. For overseas investors, a weaker currency is the latest factor making yuan-denominated assets less attractive.
 
They’ve been selling mainland-listed stocks at a record pace and their demand for Chinese bonds has been relatively tepid: monthly inflows have averaged at just 6.8 billion yuan ($984 million) this year, versus the 44.4 billion yuan seen in 2018, ChinaBond data show. READ MORE

Vodafone Idea dips almost 3.6%


Stocks that hit 52-week low on S&P BSE Sensex

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
FORTIS HEALTH. 126.50 125.95 -0.40 -0.32
STERLITE TECH. 163.65 163.50 -4.30 -2.56
T.V. TODAY NETW. 270.20 270.20 -5.75 -2.08
» More on 52 Week Low

Markets slides into the red zone


ICICI Securities on Balkrishna Industries

We expect sales, EBITDA and PAT to grow at 7.8%, 14.3% & 6.5% CAGR, respectively, over FY19-21E. We feel that with modest growth on the horizon and gradual revival in margins, current high valuation multiples have room for some correction. We value the company at 16x its FY21E EPS of Rs 46 to arrive at a target price of Rs 740 per share. We maintain our HOLD rating on the stock. We derive comfort from BIL’s debt free balance sheet, healthy double-digit return ratios and ~8% CFO yield. 

HDFC Securities on Balaji Amines

RECO: BUY
 
TARGET PRICE: Rs 525
 
We cut our estimates on account of (1) Consistently poor volume growth, (2) Vagueness on imposition of Anti-dumping duty on Di-methyl Formamide (DMF), (3) Deferment of capacity augmentation projects to FY21. 
 

United Breweries zooms almost 7%


MOFSL on Tata Motors

We raise our consolidated EPS (earnings per share) estimate for FY20 by ~16% to factor in lower depreciation at JLR and higher other income in S/A. However, we note that the weakening outlook for the India business is fading the cost-cutting-led recovery at JLR. FY21 could be a tough year for India and JLR (run-out of most profitable RR/RR Sport). Further, the noise around EVs, Brexit and trade-war adds to the uncertainty. Hence, we maintain Neutral rating with a target price of Rs 199 (Mar’21 SOTP).
 

IT stocks under pressure

COMPANY LATEST(rs) CHG(rs) CHG(%) VOLUME
INFIBEAM AVENUES 45.05 -0.80 -1.74 214315
INFOSYS 713.20 -9.20 -1.27 199163
FIRSTSOUR.SOLU. 51.50 -0.40 -0.77 154882
WIPRO 288.40 -1.65 -0.57 74815
TECH MAHINDRA 775.00 -4.00 -0.51 66702
» More

OMCs under pressure; HPCL, BPCL and Indian Oil Corporation decline up to 6%

Shares of state-owned oil marketing companies (OMCs) were under pressure in the late morning deals on Tuesday with Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Indian Oil Corporation (IOCL) falling up to 6 per cent on the BSE, on profit booking. In the past three months, HPCL (up 33 per cent), IOCL (up 22 per cent) and BPCL (up 15 per cent) have outperformed the market. In comparison, the S&P BSE Sensex has gained 10 per cent during the same period till yesterday. READ MORE


 

Sectoral trend on NSE


Reliance Securities on Shree Cement

We believe  Shree Cement (SRCM) has been moving in the right direction in its pursuit to dominate the markets by adding capacity at regular intervals, which we expect the Company to grow market share with strong profitability without much stress on balance sheet. Hence, its premium multiple is expected to sustain, going forward which can be supported by thin liquidity and meagre non-institutional holdings. However, as current valuations look to be stretched despite upgrading our estimates, we downgrade our recommendation on the stock to HOLD from BUY with a revised SOTP-based Target Price of Rs 21,000.

MARKET CHECK


Dish TV is trading almost 3.5% lower


ITC's Puri will have to walk the tightrope in achieving Deveshwar's goals

In 2011, just after getting another five-year term as chairman of ITC, Yogesh Chandra Deveshwar (excluding cigarettes) elaborated his broad vision for the tobacco-to-Fast Moving Consumer Goods (FMCG) company in a free-wheeling interview with Business Standard. One, he wanted ITC to become the country’s largest FMCG company (excluding cigarettes) overtaking its key rivals like Hindustan Unilever and Nestle in the next 10 to 15 years. READ MORE

MARKET CHECK | Top gainers on BSE at this hour

JKCEMENT 983.20 +76.30 +8.41
 
JUSTDIAL 713.55 +49.10 +7.39
 
WABAG 315.05 +18.50 +6.24
 
JAICORPLTD 116.15 +6.25 +5.69
 
EDELWEISS 179.25 +9.20 +5.41

Sebi sets rules for start-ups on IGP to migrate to main platform

The Securities and Exchange Board of India (Sebi) on Monday came out with a discussion paper highlighting proposals for allowing a start-up listed on the Innovators Growth Platform (IGP) to trade under the regular category of the main board. According to the proposals, the company should have listed on the IGP for a year and have a minimum of 200 shareholders for making the shift. The company, or any of its promoters, promoter group or directors, should not have been debarred from accessing the capital market or been a willful defaulter. READ MORE



ICICI Securities on Indian Oil Corporation (IOC)

We are neutral on IOC at the current juncture given the volatility in oil prices and intention of the new government to pass on costs to consumers when oil prices are high. IOC’s ability to maintain normal marketing margins and trend in refining margins will determine its near term performance. We have a HOLD recommendation on the stock with a target price of Rs 170 (based on average of P/BV multiple: Rs 164/share and P/E multiple: Rs 176/share).

HDFC Securities on Sobha Ltd

Sobha (SDL) has ~17.5mn sqft of unsold area in ongoing projects and expects to add 4.2mn sqft from new projects in the pipeline. A well-diversified product mix across different regions augurs well for pre-sales recovery. Brand pull will certainly aid pre-sales efforts. Despite capex commitment of Rs 10 bn, we expect consolidated net D/E to reduce to 0.9x by FY21E (vs. 1.09x now). The contracting business is seeing good growth with an order book of Rs 26 bn. We maintain BUY. 
 
Key risks: 
  • Further deterioration in NBFC liquidity; 
  • Higher interest rate; 
  • Weak order inflow in the contracting business; and 
  • Delay in regulatory approvals.

Indian Oil Corporation tumbles 3%


Narnolia Financial Advisors on City Union Bank

Last close: Rs 205

Target price: Rs 230

Recommendation: Accumulate 


Assets quality has remained stable despite the concern over MSME due to GST transitions reflecting healthy credit underwriting practice. Management is hopeful to
maintain slippages guidance of 1.75-2% in FY20. We expect credit cost to remain under control going ahead. NIM of the bank is continuously on the improving trend due to its focus towards the segments like trading and MSME, which has higher yield and constitute about 51% of the book. We largely maintain our PAT estimates and value the stock at 230 (2.6X BV FY21e).

Bajaj Finance joins Rs 2-trillion m-cap club; stock zooms 105% in 14 months

Bajaj Finance entered the elite club of companies with a market capitalisation (market-cap) of Rs 2 trillion after the company's stock price hit a new high on the BSE in intra-day trade on Tuesday.
 
The stock hit a new high of Rs 3,485, up 2.3 per cent on the BSE. At 09:53 am; Bajaj Finance's market-cap stood at Rs 2.01 trillion, the exchange data shows. READ MORE

Buzzing | Just Dial climbs over 5%


NEWS ALERT | Alembic Pharma gets USFDA approval for generic of Vesicare tablets

NEWS ALERT | Dr Reddy's Bachupally FTO-3 unit gets clearance from German body/, reports CNBC TV18


Tech Mahindra Q4 preview: Ebit margin likely to fall on rupee appreciation

Tech Mahindra is slated to announce its fourth quarter results for the financial year 2018-19 (Q4FY19) on Tuesday. The IT services major is expected to report a mixed set of numbers with Ebit (earnings before interest and tax) margin likely to decline, while revenue in constant currency (CC) terms is projected to grow between 1 and 3 per cent on a sequential basis. READ MORE

Bank of Baroda rises 3%


Torrent Pharma slips 8% after reporting net loss of Rs 152 crore for Q4

Torrent Pharmaceuticals shares slipped 8 per cent to Rs 1,525 on the BSE in the early morning trade on Tuesday after it reported a consolidated net loss of Rs 152 crore in March quarter (Q4FY19). The drug firm had posted a consolidated profit of Rs 228 crore in the year-ago quarter.
 
The net loss during the quarter was on account of one-time loss of Rs 357 crore due to Rs 217 crore impairment provisions on certain intangible assets and goodwill recognised as part of acquisition of Bio-Pharm Inc in the US as well as product recall charges of Rs 140 core in the US. READ MORE

Nifty Auto slips 0.9%

- Tata Motors loses 4.5% while TVS Motors gains over 2%


Astral Poly Technik stock plummets by over 5%


Hindustan Petroleum down over 3%

Revenue in Q4FY19 down 5.8% at Rs 67,938.1 crore versus Rs 72,112 crore, QoQ


Elara Capital on Tata Motors

Rating: ACCUMULATE
 
Target Price : INR 204
 
CMP : INR 190

We remain concerned over near-term volume pressures, especially in China, where we expect no growth in FY20. While uncertainty continues in the UK and US markets, we are impressed by JLR’s outperformance there. Company-specific initiatives have started to bear fruit with project charge (cost-cutting initiatives) being ahead of target (first GBP 1.3bn of GBP 2.5bn target delivered). We reduce JLR (UK production) EBITDA by 6-8% to factor in lower volume. We reiterate Accumulate with a SOTP-based TP of INR 204 from Rs 195.

MARKET CHECK


NEWS ALERT | Indiabulls Housing launches maiden dollar bond today for $300 mn: CNBC TV18

- Book already covered 2.2x & will close later today; DB, Barclays, HSBC, Citi, CS, CLSA are bankers to Indiabulls Housing deal, reports CNBC TV18 quoting sources

United Breweries gains almost 4%


Jindal Stainless Ltd slips 4% in trade


Auto stocks trading under pressure, led by losses in Tata Motors

COMPANY LATEST(rs) CHG(rs) CHG(%) VOLUME
TATA MOTORS 179.80 -10.20 -5.37 1014310
TATA MOTORS-DVR 84.85 -3.95 -4.45 299432
ASHOK LEYLAND 87.45 -0.10 -0.11 195330
M & M 651.20 -3.05 -0.47 25996
ESCORTS 591.40 4.10 0.70 19361
» More

NEWS ALERT | Rakesh Jhunjhunwala on Aviation woes

- Unhappy to see companies in loses but ineffieciency should die

- Don't see new airlines coming to India

- See 3 groups of solvent aviation players and 1 insolvent.

(From CNBC)

Opening gainers on S&P BSE Sensex

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
JAI CORP 116.15 6.25 5.69 134018
EDELWEISS.FIN. 179.70 9.65 5.67 47128
ADANI GREEN 45.20 2.20 5.12 120852
DILIP BUILDCON 543.25 25.85 5.00 461
INDIABULLS INTEG 290.70 13.80 4.98 230
» More on Top Gainers

Dhampur Sugar Mills gains over 2%


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
RELIANCE INDS. 1338.95 13.45 1.01 1035563
JUBILANT LIFE 580.65 14.10 2.49 776600
RELIANCE POWER 7.17 0.14 1.99 757727
TATA MOTORS 184.10 -5.90 -3.11 421119
ADANI POWER 47.55 0.75 1.60 297375
» More on Most Active Volume

BPCL tumbles over 4%


Edelweiss Financial surges almost 5%


Nifty Auto index under pressure, trades 1% lower


NEWS ALERT | All sectoral indices on Nifty turn red barring Fin Services, Pharma


NEWS ALERT | Nifty indices erase gains


Dilip Buildcon zooms 5%


YES Bank slips over 2%


Nifty Bank turns red dragged by YES Bank


Mid/Small-cap take the beating


Bharat Forge slips over 4%

- The cautious commentary by the management post Q4 results leading to fall


Panacea Biotech gains 5% in trade

The company has received Azacitidine USFDA approval for the US market


Tata Motors slips over 3%

Consolidated net profit falls 49% at Rs 1,108 crore agaisnt Rs 2,175 crore. Revenue declined to Rs 86,422 crore against Rs 89,928.97.


IndiGo trading over 3% higher


Sectoral trends on NSE


Top gainers and losers on S&P BSE Sensex


Market at open


Market at open | Sensex hits record high


Nifty at Pre-open


Nifty sectoral indices at pre-open


Rupee opening

Rupee opens at Rs 69.74/$ vs Monday's close of 69.73 against the US dollar

Market at pre-open


NEWS ALERT | US eases restrictions on Huawei: Reuters

- The move aims at minimizing disruption for its customers but dismissed by its founder who said the tech firm had prepared for US action.

- The US Commerce Department will allow Huawei Technologies Co Ltd to purchase American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets.

- The world’s largest telecommunications equipment maker is still prohibited from buying American parts and components to manufacture new products without license approvals that likely will be denied.

Elara Capital on Karur Vysya Bank

Rating: Reduce
 
Target Price: INR 76
 
KVB is expected to do well on operating profit front with an expectation of 15% YoY in FY20. However, credit cost is expected to weigh on profitability owing to low coverage ratio at 45%. We therefore expect the bank to post RoE at 10.7% in FY20; it would improve to 14.3% in FY21 owing to normalization in credit cost. Hence, we revise our stock rating to Reduce from Sell with a revised TP of INR 76 (from INR 69) on 1.1x one-year forward P/ABV (from 1.1x FY20E P/ABV).

Narnolia Financial Advisors on Magma Fincorp

Last Close: Rs 127

Target price: Rs 144

Recommendation: Hold


Net interest income increased by 10.1% YoY backed by strong growth in AUM. Provision declined by 21% from Rs 52 Cr to Rs 41 Cr QoQ.NIM remains under
pressure in Q4FY19. PAT increased by 7% YoY from Rs 80 cr to Rs 85 Cr.

Net interest margin declined by 30bps QoQ from 8.40% to 8.10% due to increase in cost of fund. Cost of fund increased by 6bps from 9.49% to 9.55%. Management expects NIM to remain under pressure for FY20. Going ahead management expects to pass on 25-50bps in SME & ABF.

Elara Capital on Dr Reddy's Lab

Rating: REDUCE
 
Target Price : INR 2759
 
Dr Reddy’s Laboratories (DRRD IN) reported EBIDTA of INR8.2bn, up 49% YoY aided by one-time sale of derma brands (INR1.8bn included in Proprietary products). However there were also higher overheads due to certain one-off charges (not quantified). Overall weak operating performance impacted by adverse forex movement and product mix. Ex-one time income, revenue was up 8.5% YoY at INR 38.4bn, below our estimates. US sales were at USD 212mn vs our estimate of USD 225mn, up 3% QoQ, as new launches fail to contribute meaningful sales. India sales disappointed with 6% YoY, while other geographies like Russia, RoW and CIS reported healthy growth. PSAI sales grew by 8.2% YoY. GMs contracted 150bp QoQ to 52.4%, adjusted for one-offs were weak across segments. PSAI margin fell to 21% (vs 30.8% in Q3) while generics GMs fell to 56% vs 57.3% in Q3. Tax rate was higher at 26%. Resultant, reported PAT came in at INR 4.3bn, below our estimate. 
 

India's working capital is vanishing and the next PM will need to find it

Ask any small Indian firm how long it takes to get paid by larger companies, what kind of a runaround they’re given, what devilish excuses they encounter on the way, and you’ll wonder how they remain in business. 
 
The answer is simple: They raise cash by borrowing against the value of property. 
 
Such advances are tailor-made for the entrepreneur. A term loan for business expansion sometimes comes bundled with a working capital limit, all of it backed by the entrepreneur’s residential or commercial property, preferably self-occupied and in a big city. READ MORE

Real estate player Sobha enters furniture business with Metercube brand

Most real estate players differentiate themselves through premium dwellings, transparent business practices and timely deliveries, but southern developer Sobha is deploying an unusual tactic with its latest offering that will add furniture to what it calls its fully backward-integrated approach. Metercube, which gets its name from the unit of measuring space and volume, is the name of Sobha's latest business line. READ MORE

Incumbency wave in India, Australia boosts stocks of Adani group

Shares in various Adani Group companies, including those of flagship Adani Enterprises Ltd, surged on Monday after exit polls predicted Indian Prime Minister Narendra Modi would return to power, even as Australian poll results also spelled good news for the Indian conglomerate.
 
Adani Enterprises rose as much as 29 per cent in afternoon trade, its sharpest intraday gain in over two years. Other Adani Group stocks such as Adani Power, Adani Gas and Adani Green Energy Ltd were all up more than 15 per cent in afternoon trading. READ MORE

Focus on higher realisation improves Shree Cement's earnings outlook

Despite a miss in the March 2019 quarter (Q4) performance, cement and power producer Shree Cement's stock hit a 52-week high at Rs 20,332.9 on Monday on the BSE, before closing with over 5 per cent gains at Rs 20,300. READ MORE

Best day in a decade: Markets salute exit polls verdict, hit record highs

The benchmark Sensex and Nifty hit new all-time high on Monday after exit polls showed the ruling Narendra Modi-led Bharatiya Janata Party (BJP) was set to win a second term in the general elections concluded on Sunday.
 
The Sensex climbed 3.75 per cent, or 1,422 points, to end at 39,353, while the Nifty50 index vaulted 421 points, or 3.7 per cent, to close at 11,828. Both indices surpassed their previous record highs touched on April 16. This is the biggest one-day gain in 10 years in point terms and the most since September 2013 in percentage terms. READ MORE

Full blown trade war will push world towards recession: Morgan Stanley

A collapse of US-China trade talks and hike in tariffs on Chinese goods would push the world economy towards recession and see the Federal Reserve cut US interest rates back to zero within a year, analysts at Morgan Stanley said on Monday.
 
While a temporary escalation of trade tensions could be navigated without much damage at all, a lasting breakdown would inflict serious pain. READ MORE

Advantage exit poll: A battered corner of $2.1 trn stock market may shine

A battered corner of India’s $2.1 trillion stock market -- mid-cap shares -- may be ready to shine after exit polls in India signaled a second term for Prime Minister Narendra Modi.
 
While the benchmark Nifty 50 Index rallied 3.7% to a fresh peak, the Nifty MidCap 100 Index advanced 4.1% as the strength of the projected victory boosted the broader market. The outperformance may continue if Modi does indeed emerge victorious, analysts say. READ MORE

Huawei's India journey hits a wall as US tech giants up the ante

American internet major Google has banned Huawei from some of the Android mobile services, in a new twist to the continuing trade war between the US and China. Other US-based tech giants such as Intel and Qualcomm, too, have deserted Huawei globally, adding to the adverse impact on the India business of the Chinese telecom major. READ MORE

Jet Airways revival: Etihad, Hindujas set for Abu Dhabi meet on May 23

A high-level meeting is learnt to have been fixed between the Hinduja Group and Etihad Airways on May 23 in a bid to revive Jet Airways. Top executives of State Bank of India (SBI), which leads the lenders’ consortium, will be present at the meeting to be held in Abu Dhabi, the corporate headquarters for Etihad. READ MORE

Ford says will slash 7,000 jobs comprising 10% of its gobal workforce

Ford is planning to slash about 7,000 white-collar jobs, which would make up 10 per cent of its global workforce.
 
The company has said it was undertaking a major restructuring, and it will have trimmed thousands of jobs by August. READ MORE

Corporate earnings may disappoint again: 564 firms' combined net down 10%

Corporate India looks set to disappoint investors for the second quarter in a row, defying D-Street prediction of strong earnings growth during the fourth quarter (Q4) of 2018-19 (FY19). The combined net profit of 564 companies (excluding financials and energy), which have declared their results for the January-March 2019 quarter, is down 10.3 per cent year-on-year (YoY), their worst showing in at least 12 quarters. READ MORE

Tata Motors, Tech Mahindra, Jet Airways and DLF top stocks to watch today

Here's a look at the top stocks that may remain in focus today -
 
Tata Motors: Tata Motors reported a 47 per cent drop in quarterly profit on Monday as the Indian automaker struggled to sell its luxury Jaguar Land Rover (JLR) cars in key markets like China, and was also hit by a broader economic slowdown at home.
 
BPCL: BPCL posted a 16 per cent increase in net profit at Rs 3,125 crore for the quarter ended 31 March, 2019. The company's gross refining margin came in at $4.58 per barrel for the full financial year as against $6.85 in the last fiscal. READ MORE

Investors should wait for Lok Sabha election results before taking a call

The sharp rise in the BSE Sensex – up 3.75 per cent or 1,421 points – left market players and stock market investors pleasantly surprised on Monday. It wasn’t unexpected, given the exit poll prediction that the National Democratic Alliance (NDA) government will make a strong comeback at the Centre. READ MORE

Auditor exits mount at listed SMEs as scrutiny increases after IL&FS crisis

Small and medium enterprises (SMEs) account for an increasing share of instances of mid-term auditor exits among listed companies. They accounted for around 8 per cent of such exits in 2016. This has risen to over 66 per cent in the first five months of the year.
 
The share of such exits in 2019 shows them accounting for eight out of the twelve auditors as of May 16, shows a collation of such resignations accessed from corporate tracker Prime Database. The share was 25 per cent last year (12 out of 48 exits). It was also 25 per cent in 2017 (three out of twelve exits). READ MORE

Gold loses sheen, falls Rs 150 to Rs 32,720 on lacklustre demand

Gold prices Monday fell Rs 150 to Rs 32,720 per 10 gram in the national capital due to lacklustre demand from local jewellers amid weak trend overseas, according to the All India Sarafa Association.
 
Tracking gold, silver also plunged Rs 250 to Rs 37,350 per kg on reduced offtake by industrial units and coin makers. READ MORE

Betting big on exit polls is risky: Investors have been stumped before

Investors have thrown their weight behind exit polls, predicting the NDA’s victory, with the benchmark indices logging record single-day gains of nearly 4 per cent. However, betting big based on exit polls is risky.
 
In a note, Motilal Oswal Financial Services has highlighted how exit polls have been off the mark in two of the previous four occasions, catching many investors off guard. While Monday’s buying signals that investors have priced in a BJP victory, experts advise retail investors to wait till the final outcome. READ MORE

Uptrend in Nifty to continue unless exit polls vary from actuals: Traders

The Nifty has zoomed on the basis of exit polls predicting a strong NDA performance. The market opened high on Monday and ended with a move that exceeded 4 per cent. However, the results are due on Thursday and coincide with weekly options settlement. If the results don't match the exit polls, there will be a lot of volatility. READ MORE

Impact of election outcome on markets will be transient: Sampath Reddy

Markets witnessed their best single-day gain in 10 years on Monday, as exit polls predicted the return of Narendra Modi-led National Democratic Alliance (NDA). This was also the best single-day rally post exit poll outcome since 1999. READ MORE

Tata Motors Q4 net profit skids 49% to Rs 1,108 crore on JLR woes

Tata Motors on Monday reported a 49 per cent decline in net profit for the March quarter ended March 31. But the earnings beat estimates as the cost-control measures initiated a few months ago to turn around operations of Jaguar Land Rover (JLR) Automotive started showing results.
 
In the three months to March, net profit of the company fell to Rs 1,108.66 crore against Rs 2,125.24 crore in the same quarter last year. Revenue for the quarter fell to Rs 85,676.33 crore from Rs 88,966.34 crore in the same quarter last year. READ MORE

HPCL Q4 net profit jumps 70% to Rs 2,970 crore on inventory gains

Hindustan Petroleum Corp Ltd (HPCL) Monday reported a 70 per cent jump in its fourth quarter net profit as inventory gains and rupee appreciation negated a dip in refinery margins.
 
Net profit in January-March came at Rs 2,970 crore against Rs 1,748 crore in the same period a year back, HPCL Chairman and Managing Director M K Surana told reporters. READ MORE

Today's picks: From Adani Ports to ZEE, hot stocks to buy on Tuesday

Nifty
 
Current: 11,828 (fut: 11,879)
 
Target: NA
 
Stop-long positions at 11,725. Stop-short positions at 12,000. Big moves could go till 11,600, 12,175. Profit booking could pull the index back but it’s in an uptrend that depends on political newsflow. A long May 30, 11600p (140), long 12100c (137) has breakevens at 11423, 12377. READ MORE

Stock calls by Anand Rathi: Buy Adani Ports, Hero MotoCorp, HDFC

ADANIPORTS: BUY
 
TARGET: Rs 434
 
STOP LOSS: Rs 399
 
The stock has provided a breakout from the multiple swing resistance and it has managed to close above its crucial hurdle of Rs 400 levels. The stock is now likely to inch towards its next swing resistance of Rs 434 which is its short term target whereas Rs 399 is a crucial support hence it’s a good support. READ MORE

Bulk deal on NSE as on Monday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg


Oil check

At 7:50 am, Brent crude futures were trading at $72.36 per barrel.

SGX Nifty

At 7:50 am, SGX Nifty was trading 16 points higher at 11,881 levels indicating positive start for the inices.

Asian Markets check

Source: Reuters


Wall Street check

Source: Reuters


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