MARKET WRAP: Sensex, Nifty end flat on a choppy day; IT stocks drag

Benchmark indices ended Friday's session with marginal cuts after erasing its intraday gains in the final hour. IT stocks were the top drags and remained subdued throughout the day after the US-based IT services company Cognizant nearly halved its 2019 growth guidance.  

The intra-day rise in the indices was spurred by a slip in oil prices with financial stocks gaining the most, before the indices retreated to trade flat in the end.

The S&P BSE Sensex settled 18 points lower for the day at 38,963, with TCS, Hindustan Unilever, TATA Steel, HCL Tech and Infosys dragging the index down. Twelve out of the 30 constituents of the BSE ended the day in red, while the rest settled in green. 

The broader index Nifty50 was also down 12.5 points, or 0.11 per cent, to end at 11,712 levels. The market breadth was tilted in favour of declines. About 1,031 stocks fell and 702 shares advanced on National Stock Exchange.

On a weekly basis, the S&P BSE Sensex closed 0.27 per cent lower while and the NSE Nifty50 slipped 0.36 per cent. This was the indices' biggset weekly loss since February 11.

Among sectoral indices, the Nifty IT index was the biggest loser, down almost 1.9 per cent while the Nifty FMCG index also slipped 1.13 per cent. On the other hand, Nifty Realty index and Nifty PSU Bank index gained 1.57 per cent and 1.09 per cent, respectively.

The voltality index, VIX, ended the day 4.35 per cent higher at 23.98.

In the broader market, the S&P BSE MidCap index slipped 15 points, or 0.10 per cent, at 14,783, while the S&P BSE SmallCap index ended the day at 14,548, down 45 points, or 0.31 per cent.

BUZZING STOCKS

Information technology (IT) stocks remained under pressure on Friday, after the US-based IT services company Cognizant nearly halved its 2019 revenue expectations after missing first-quarter results, as it faces sluggish demand in its financial and healthcare businesses.  READ MORE

Shares of Balrampur Chini Mills continued their northward journey, with the stock hitting 18-month high of Rs 157 before ending the day at Rs 156.50, up 1.69 per cent, on the expectation of strong earnings growth. The stock was trading at its highest level since December 6, 2017. READ MORE

 
(With inputs from Reuters)


3:40 PM IST COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME RELIANCE POWER 6.55 1.18 21.97 22092058 GUJ ALKALIES 527.25 34.25 6.95 29269 DEWAN HSG. FIN. 141.40 7.40 5.52 2149731 BOMBAY DYEING 126.70 6.60 5.50 636309 LAK. VILAS BANK 77.15 3.65 4.97 129026 » More on Top Gainers

3:40 PM IST COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME INTELLECT DESIGN 217.45 -12.85 -5.58 57100 DILIP BUILDCON 482.00 -20.90 -4.16 45413 GUJ.ST.PETRONET 189.10 -8.20 -4.16 39469 L&T TECHNOLOGY 1691.00 -71.85 -4.08 7538 PC JEWELLER 109.25 -4.50 -3.96 1510155 » More on Top Losers

3:38 PM IST

3:38 PM IST

3:37 PM IST

3:27 PM IST

2:45 PM IST

2:40 PM IST McLeod Russel India shares continued to reel under pressure, hitting an over decade low of Rs 45.45, down 10 per cent on the BSE on back of heavy volumes. The stock of flagship tea company of the BM Khaitan group was trading at its lowest level since March 12, 2009 on the BSE. READ MORE

2:16 PM IST

2:07 PM IST - Profit comes at Rs 38.2 crore, up 59.7 per cent, from Rs 23.9 crore y-o-y - Revenue: rs 808.9 crore, up 22.4 per cent, from Rs 660.8 crore y-o-y - EBITDA: Rs 113.4 crore, up 52 per cent, from Rs 74.6 crore y-o-y - EBITDA margin: 14% , up 270 bps, from 11.3 per cent y-o-y

LIVE UPDATES

Top gainers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
RELIANCE POWER 6.55 1.18 21.97 22092058
GUJ ALKALIES 527.25 34.25 6.95 29269
DEWAN HSG. FIN. 141.40 7.40 5.52 2149731
BOMBAY DYEING 126.70 6.60 5.50 636309
LAK. VILAS BANK 77.15 3.65 4.97 129026
» More on Top Gainers

Top losers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
INTELLECT DESIGN 217.45 -12.85 -5.58 57100
DILIP BUILDCON 482.00 -20.90 -4.16 45413
GUJ.ST.PETRONET 189.10 -8.20 -4.16 39469
L&T TECHNOLOGY 1691.00 -71.85 -4.08 7538
PC JEWELLER 109.25 -4.50 -3.96 1510155
» More on Top Losers

Heatmap: S&P BSE Sensex


Nifty sectoral indices at close


Market at close


Eicher Motors slips 1%


Buzzing | Eros International slips over 13% in trade


McLeod Russel India nears all-time low; stock tanks 41% in three days

McLeod Russel India shares continued to reel under pressure, hitting an over decade low of Rs 45.45, down 10 per cent on the BSE on back of heavy volumes. The stock of flagship tea company of the BM Khaitan group was trading at its lowest level since March 12, 2009 on the BSE. READ MORE

Sudden surge in DHFL stock


NEWS ALERT | HSIL Q4 result:

- Profit comes at Rs 38.2 crore, up 59.7 per cent, from Rs 23.9 crore y-o-y

- Revenue: rs 808.9 crore, up 22.4 per cent, from Rs 660.8 crore y-o-y

- EBITDA: Rs 113.4 crore, up 52 per cent, from Rs 74.6 crore y-o-y

- EBITDA margin: 14% , up 270 bps, from 11.3 per cent y-o-y

NEWS ALERT | SpiceJet announces 12 new flights connecting Mumbai and Delhi with other domestic cities


Dilip Buildcon slips 5%


NBFC crisis averted, but some troubles persist: HDFC Bank MD Aditya Puri

HDFC Bank had an exposure of $7 billion to non-bank finance companies and related firms as of December, compared with $11 billion for its nearest private-sector rival ICICI Bank Ltd., filings show. The exposure of the wider Indian banking industry was about $92 billion in March, according to an estimate from the ratings firm ICRA Ltd. Puri said HDFC Bank has no exposure to IL&FS. CLICK TO READ FULL ARTICLE

RESULTS IMPACT | Godrej Consumer slips 3%


Century Textiles stock flat post Q4 results announcement


ICICI Securities on Shoppers Stop

Sustainable enhancement in same store sales growth (SSSG) and increase in share of private label brands would be critical for re-rating of the stock. We maintain our HOLD recommendation on the stock with a revised target price of Rs 510 (13.5x FY21E EV/EBITDA).

MARKET UPDATE | PSU banks gain in trade


Berkshire Hathaway finally bought shares of Amazon, says Warren Buffett

Buffett said the purchase was made by one of his investment managers, Todd Combs or Ted Weschler, and details would be disclosed later this month in Berkshire's quarterly report of its US stock holdings. The purchase marks a U-turn for Berkshire, where Buffett has long praised the leadership of Amazon Chief Executive Jeff Bezos. CLICK TO READ FULL STORY


Top gainers on BSE at this hour

RPOWER 6.18 +0.81 +15.08
 
BOMDYEING 128.00 +7.90 +6.58
 
GUJALKALI 517.70 +24.70 +5.01
 
TATASTEELPP 93.80 +4.25 +4.75
 
RCOM 1.87 +0.08 +4.47

MARKET UPDATE | Nifty Bank near day's high

 

Roto Pumps zooms 44% in two days; stock nears 52-week high

Roto Pumps shares were locked in upper circuit for second straight day, up 20 per cent at Rs 143 on the BSE, on the back of delivery-based buying. The stock of industrial machinery company zoomed 44 per cent in the last two trading days, in an otherwise range-bound market. In comparison, the benchmark S&P BSE Sensex was up 0.25 per cent at 39,078 levels. READ MORE

ICICI Securities drops coverage on McLeod Russel

Though domestic tea production has been increasing well, the increase in consumption is slow. This does not augur well for the industry. This unhealthy demand-supply situation is one of the primary reasons for falling prices in auctions. Tea production in India has grown at ~3% CAGR in last five years whereas consumption has increased at only a CAGR of 2%. We believe McLeod’s continued deterioration in earnings in the backdrop of rising production costs along with high debt exposure is structural in nature. Hence, we are dropping coverage on the company.

Godrej Properties buys RK Studios for an undisclosed sum; stock up nearly 0.5%

The Mumbai-based real estate developer plans to build a mixed-use project with modern residences and luxury retail. The plot is located strategically on the main Sion-Panvel Road and the Kapoor family was in talks with many interested parties, sources said. 



 

RESULTS PREVIEW | Here's what brokerages expect from HUL's Q4 results today

Estimates for volume growth have been lowered to high single-digits from double-digits earlier due to higher base. Despite this, the overall sales will get a boost from price hikes undertaken by the company in select products during the recently concluded quarter. CLICK TO READ FULL ARTICLE


HUL slips nearly 1.50% ahead of Q4 results

 

Around 15 stocks hit 52-week high in trade so far

63MOONS 63 moons technologies limited 151.55 141.00 18-Apr-2019 151.55 137.80 13.75 9.98
AIRAN Airan Limited 49.60   - 39.65 42.50 -2.85 -6.71
BAJFINANCE Bajaj Finance Limited 3,165.00 3,148.95 02-May-2019 3,136.80 3131.75 5.05 0.16
BALAXI Balaxi Ventures Limited 104.90 99.95 02-May-2019 104.90 99.95 4.95 4.95
BALRAMCHIN Balrampur Chini Mills Limited 157.50 155.80 02-May-2019 156.75 154.70 2.05 1.33
 
(Click here to view the full list)

MARKET UPDATE | Sectoral gainers and losers on NSE


HDFC Securities on Zensar Technologies

We maintain our positive view on Zensar based on (1) Focus on POC led Digital sales, (2) Robust deal wins and (3) Growth visibility in core business. We build 12/18/18% Revenue/EBITDA/PAT CAGR over FY19-21E. Zensar trades at ~10% discount to Tier-2 average P/E multiple with second highest FY19-21E EPS CAGR. Risks include delay in ramp-up of large deals, onsite wage inflation and deterioration in deal wins.

Elara Capital on Britannia Industries

We lower our earnings by 8% in FY20E and 7% for FY21E, led by a cut in 1) volume growth from 10% to 8%, given the market slowdown, and 2) lower EBIT margin expansion on higher depreciation charges once new lines were commissioned in India and Nepal. BRIT expects new product developments (NPD) to double to 9% of sales in FY20. We roll forward to March FY21E EPS of INR 67 and cut our TP by 3% to Rs  3,361 on 50x (unchanged) FY21E P/E. We reiterate Accumulate.

Anand Rathi Financial Services on MRF

We continue to be positive on buoyancy across segments – TBR, PCR and two-wheelers. The company’s efforts to address the disparity in pricing and regulating dealer inventory would go a long way to steady growth (m). We expect an increased brand focus in two-wheelers and market-share gains. We upgrade the stock to a Buy, with a revised TP of Rs 65,395 (earlier Rs 60,208).

Kansai Nerolac falls 6% on disappointing March quarter results

Shares of Kansai Nerolac Paints slipped 6 per cent to Rs 395 on the National Stock Exchange (NSE) after the company reported 12 per cent decline in its net profit at Rs 93 crore in March quarter (Q4FY19), due to lower demand for industrial products. The company had a profit of Rs 106 crore in year-ago quarter. READ MORE



Rupee check

Rupee trading at day's high
(Source: Bloomberg)


Orient Paper rises over 3.5%


Adani Power trading at day's low


Sectoral trends on NSE at this hour


Top gainers and losers on S&P BSE Sensex


Market check


Market check


Godrej Properties buys RK Studios for an undisclosed sum

Godrej Properties on Friday said it has bought the iconic R K Studios in Chembur area of Mumbai for an undisclosed sum. It is the same studio where late Raj Kapoor's films were shot. READ MORE


Investors hammer Britannia Industries stock on loans to group firms

The share price of food major Britannia Industries was down nearly 4 per cent on Thursday following concerns over loans to group companies. The stock remained volatile through the day after a disclosure by Britannia that it had inter-corporate deposits (ICDs) in associate companies, which was under 25 per cent of its total investments. READ MORE

IT stocks fall after Cognizant cuts 2019 revenue guidance; TCS drops 2%

IT stocks came under pressure in the early trade on Friday after the US-based IT services company Cognizant nearly halved its 2019 revenue expectations after missing first-quarter results, as it faces sluggish demand in its financial and healthcare businesses. READ MORE

Balrampur Chini hits 18-month high; stock zooms 107% in 7 months

Shares of Balrampur Chini Mills continued their northward journey, with the stock hitting 18-month high of Rs 157, up 2 per cent on the BSE on Friday, on the expectation of strong earnings growth. The stock was trading at its highest level since December 6, 2017. READ MORE


Laurus Labs down over 1% on mixed Q4 nos

Net profit down 4.2% at Rs 431 crore versus Rs 450 crore, revenue up 13.4% at Rs 635.1 crore versus Rs 560.2 crore, YoY



Britannia Industries is trading 2% lower


Bank of Baroda is trading over 1% higher


IL&FS Investment Managers trading nearly 5% higher


McNally Bharat Engg down 5%


Mcleod Russel slips over 7% in trade

The stock is down nearly 38% this week

Orient Paper Ind up nearly 5%


L&T Infotech shed over 2%


Sensex up 100 points


Opening losers on S&P BSE Sensex

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
JET AIRWAYS 129.85 -5.00 -3.71 505627
SHARDA CROPCHEM 395.00 -14.55 -3.55 535
DILIP BUILDCON 488.45 -14.45 -2.87 13806
KANSAI NEROLAC 406.45 -11.35 -2.72 16331
JM FINANCIAL 86.00 -2.35 -2.66 7380
» More on Top Losers

Bharti Airtel is trading 2% higher


Reliance Communication up over 4% on BSE


Reliance Power up almost 10%


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
RELIANCE POWER 5.76 0.39 7.26 2595417
YES BANK 176.45 2.65 1.52 529049
SPICEJET 130.10 2.35 1.84 390153
JET AIRWAYS 131.10 -3.75 -2.78 377927
TATA MOTORS 210.30 3.15 1.52 367382
» More on Most Active Volume

Rupee opens marginally lower at 69.39 against US dollar

The rupee on Friday opened marginally lower at 69.39, down two paise against the US dollar amid decline in crude oil prices. The domestic unit on Thursday surged 19 paise to close at 69.37, registering its third consecutive session of gain amid easing crude oil prices and weakening of the greenback against other major currencies overseas. READ MORE



Tata Motors gains over 2%


Voltas grows almost 2%


NEWS ALERT | Amitabh Chaudhry, MD & CEO, Axis Bank to CNBC TV18

- It was a mistake to back lot of infra projects in the past

- Want to target 3.5% to 3.8% global Net Interest Margin

- Wont be chasing NIM  mark of 4%

- Real Estate sector is in stress

- Suffering consequences of lending in 2010-2012

- Hope bank numbers will improve in 18-20 months


Bank stocks trade higher

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%) VALUE
(rs CR)
VOLUME
YES BANK 175.70 177.90 175.40 1.90 1.09 7.20 409553
ST BK OF INDIA 309.90 310.80 308.10 2.45 0.80 2.58 83282
PUNJAB NATL.BANK 86.60 87.40 86.50 0.40 0.46 0.71 82496
BANK OF MAHA 16.75 16.95 16.50 -0.10 -0.59 0.08 48859
BANK OF BARODA 116.85 117.45 116.55 0.90 0.78 0.57 48801
BANK OF INDIA 89.50 90.15 89.10 0.35 0.39 0.36 39986
IDFC FIRST BANK 50.55 50.80 50.50 0.10 0.20 0.18 36332
ICICI BANK 398.35 399.25 396.95 3.75 0.95 1.33 33287
SYNDICATE BANK 37.40 37.65 37.20 0.40 1.08 0.11 29711
FEDERAL BANK 94.95 95.40 94.50 0.75 0.80 0.26 27882

Jet Airways down nearly 5%


NEWS ALERT | US District Court denies Amgen's request for preliminary injunction to stop Cipla's continued sale of its cinacalcet hydrochloride tablets

Cipla sells 30mg, 60mg, 90mg tablets in the US

Nifty Realty up 1.2%


IT stocks tumble, Index down over 1%


Reliance Power rallies over 9%


Buzzing | Bombay Dyeing up over 9%


Sectoral trends on NSE


Top gainers and losers on S&P BSE Sensex


Market at open


Market at open


NEWS ALERT

Glenmark's arm - Glenmark Therapeutics - enters into a co-promotion agreement with US-based - Otonomy - for promotion of Otiprio, a drug used to treat Acute Otitis Externa.

Market at pre-open


Market at pre-open


Rupee opening

Rupee opens at Rs 69.39/$ vs Thursday's close of 69.36 against the US dollar

L&T, Mindtree may see second round of sparring over shareholder meet

L&T and Mindtree seem to be heading towards another round of showdown as the engineering major is considering a shareholders’ meeting after becoming the single-largest investor in the IT services firm following its acquisition of 20 per cent from Coffee Day founder V G Siddhartha on Tuesday. READ MORE

HUL, Tata Chemicals, IT stocks and Bharti Airtel among top stocks to watch

Here's a look at the top stocks that may remain in focus today -
 
HUL: The FMCG major is slated to release it March quarter resuls today. While the sales growth is likely to remain strong on year-on-year (YoY) basis, analysts expect operating profit margins (OPM) to be under pressure.
 
Earnings today: Apart from HUL, 23 other companies are scheduled to release their Q4 earnings during the day. Prominent among them include Tata Chemicals, Century Textiles, Cholamandalam Financial Holdings and L&T Technology Services. READ MORE
 

Can restart stalled Jaypee projects in four months after nod

Work on stalled Jaypee Infratech projects can start within the next four months if NBCC gets an official nod from the government to go ahead, sources at the state-run infrastructure firm said. NBCC also hopes to stick to its three-year completion deadline to start giving flats to close to 30,000 homebuyers. READ MORE

Anand Rathi on Maruti Suzuki India

Maruti Suzuki India Limited (MSIL IN)
 
CMP: Rs 6,666 
 
Target: Rs 8,050

Recommendation: Buy


Maruti Suzuki India reported revenues of Rs. 214,594 million in Q4FY19, increasing 1.4% year over year (y-o-y). Total sales volume in the quarter stood at 458,479 vehicles, down 0.7% y-o-y. Net profit declined 4.6% y-o-y to Rs 17,956 million in Q4. Results were mainly impacted by adverse commodity prices and foreign exchange movements, higher sales promotion expenses and higher depreciation, partially offset by cost reduction efforts. For full year FY19, consolidated revenues grew 4.9% y-o-y to Rs 860,685 million. Sales volume increased 4.7% to 1,862,449 vehicles. Net profit declined  2.9% y-o-y to 76,506 million.

 

Two-wheeler sales fall in April as makers avoid stockpiling at dealerships

Two-wheeler sales in the country fell in April as manufacturers pared dispatches to reduce stock piling up at their dealerships, showed sales data released by companies.
 
Auto firms in India count dispatches to dealers as sales. Cumulative sales of the top six manufacturers of two-wheelers were nearly 1.58 million units last month, from 1.88 million in the same month a year before. READ MORE

Rs 7 trillion of corporate papers downgraded since start of IL&FS fiasco

Mutual funds (MFs) and other lenders with an exposure to debt papers are feeling the heat as nearly Rs 7.5 trillion worth of corporate papers have been downgraded between September 2018 — when a series of defaults by IL&FS group companies began — and March 2019, according to data collated from the Securities and Exchange Board of India (Sebi). READ MORE

HUL Q4 results today: Here's what brokerages expect from the FMCG major

While the sales growth is likely to remain strong on year-on-year (YoY) basis, analysts expect operating profit margins (OPM) to be under pressure, owing to increase in input cost prices such as cocoa.
 
Estimates for volume growth have been lowered to high single-digits from double-digits earlier due to higher base. Despite this, the overall sales will get a boost from price hikes undertaken by the company in select products during the recently concluded quarter. READ MORE

UTI MF takes 25% haircut on exposure to IL&FS' special purpose vehicle

UTI Mutual Fund (MF) on Tuesday took an additional 25 per cent markdown on its exposures to Infrastructure Leasing & Financial Services’ (IL&FS) special purpose vehicle — the Jorabat Shillong Expressway (JSEL) — writing down half of these exposures till date. READ MORE

NBFC crisis may push up borrowing costs for real estate developers

The latest crisis of non-banking financial companies (NBFCs) could push up borrowing costs for property developers and pose challenges for big real estate developers. The recent downgrade of Reliance Capital has revived liquidity problems for NBFCs, which were recovering from the crisis triggered by the IL&FS defaults last year. READ MORE


Today's picks: From Sun Pharma to Power Grid, hot stocks to buy on Friday

Nifty
 
Current: 11,724 (fut: 11,764)
 
Target: NA
 
Stop-long positions at 11,675. Stop short-positions at 11,850. Big moves could go till 11,900, 11,625. A long May 16 11,600p (42), short 11,500p (23) could gain 10-15 if the index falls till 11625. READ MORE
 
 

Derivative strategy for Bajaj Finance by HDFC Securities

Buy Bajaj Finance Futures at Rs 3,150 
 
Stop loss of Rs 3,110
 
Target Rs 3,220
 
Rationale:
 
Long build-up is seen in the Bajaj Finance Futures, where we have seen 1.50 per cent rise in open interest with price moving up by 1.10 per cent;
It has given breakout on the daily chart by surpassing the resistance of Rs 3,114 level to close at all-time high;
Stock is trading above its 5,20,200 day SMA (simple moving average), indicating it is in uptrend.
Oscillators and Mometum Indicators like RSI and MACD indicate strength in the stock.

Top trading ideas by Prabhudas Lilladher: Buy Just Dial, Ashok Leyland

NIFTY VIEW

Market continues to hold its level with stock-specific movement. VIX continues to be high, though lower than all-time high, which brings in lot of choppiness in stocks. Midcap sector continues to underperform. Support for the day is seen at 38,700/11,650 for Sensex and Nifty, respectively while resistance is seen at 39,270/11,800. Bank Nifty would have a range of 29,400/30,000. Sector wise, Energy and metal look comparatively positive while IT sector now witnesses fatigue at higher levels. Bank Nifty shows only stock-specific move, keeping the sector well within its range. READ MORE

Rupee likely to outperform others in the region as oil prices fall

The Indian rupee has strengthened in the past few days following a fall in oil prices, even as weak Chinese data strokes fear of a global slowdown. The rupee could end up being the best-performing currency in the region, say currency dealers as oil prices fall and tax collection bolsters the economy. READ MORE

Commodity outlook by Tradebulls Securities: Buy lead, sell crude oil

The dollar index surged to 97.40 after FOMC meet where Fed chairman stated that US economy is well on track and there aren’t any chances of a rate cut. Strong private employment data from US also added strength to greenback and we saw all other commodities crashing against the strong dollar. Indian rupee opened strong as weak crude oil prices prove to be boon for our market. Indian currency is expected to test levels of 69.50-69.40 and may bottom out from those levels. In the long term, we are still bullish in crude oil and so that will create headwinds for our currency. READ MORE

NEWS ALERT | Godrej Properties buys RK Studios' land in Chembur, Mumbai, reports CNBC TV18

- Area: 2.2 acres,
- The project will offer approximately 33,000 square meters of saleable area comprising modern residential apartments and luxury retail.

Bulk deal on NSE as on Thursday

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


Rupee check

Source: Bloomberg



Oil check

At 7:55 am, Brent crude futures are trading at $70.60 a barrel


SGX Nifty

At 7:54 am, SGX Nifty is trading 13.5 points lower at 11,741.50 levels. 

Asian Markets check

Source: Reuters



Wall Street check

Source: Reuters



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