MARKET WRAP: Sensex dips 495 pts; Nifty below 11,600; RIL, financials drag

The market made a faltering start to the week ahead of the expiry of futures and options contracts for April series due Thursday with Oil Marketing Companies (OMCs) and financial stocks dragging the indices down on Monday. Index heavyweight Reliance Industries (RIL) slipped 3 per cent on Monday after the company announced its March 2018 quarter results on Thursday. At the current levels, the stock factors in most positives, said leading brokerages. READ MORE ON RIL HERE

The headline index, S&P BSE Sensex lost 495 points or 1.26 per cent to settle at 38,645, with YES Bank being the biggest loser and Bharti Airtel the top gainer. Out of 31 components, 25 scrips ended in the red and rest five in the green.

The broader Nifty50 index of the National Stock Exchange (NSE) lost 158 points or 1.35 per cent to end at 11,594. 

In the broader market, the S&P BSE Midcap index slipped 235 points or nearly 1.53 per cent to close at 15,148 while the S&P BSE Smallcap index ended at 14,804, down around 217 points or 1.44 per cent. 

A 3 per cent jump in oil prices amid weak global cues also dented sentiment. Asian shares slipped on Monday, weighed down by underperforming Chinese stocks, while oil prices rallied on news the United States is likely to ask all importers of Iranian oil to end their purchases or face sanctions. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.3 percent, edging away from a nine-month peak scaled last week. The Shanghai Composite Index was down 1.3 percent, South Korea’s KOSPI edged down 0.2 percent and Japan’s Nikkei was little changed.

BUZZING STOCKS

Dewan Housing Finance Corporation (DHFL) shares plunged 11 per cent to end the day at Rs 140, extending its Thursday’s 8 per cent decline after rating agency CRISIL downgraded credit rating of the company's commercial paper and continued on watch negative. READ MORE

 
Shares of state-owned oil marketing companies (OMCs) such as Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) dipped almost 6 per cent after a steep rise in the crude oil prices. READ MORE

4:03 PM IST Indian markets had a rough day today, on the back of sharp rise in crude oil price above US$74 per barrel. As a significant importer of crude oil, the high oil price is not good for Indian macros. Further, after breath-taking rally of past two months, a correction was due in the Indian markets; and crude oil has triggered it. Further, ongoing results season has provided mixed performance till date. For the markets to sustain at elevated levels, it’s very important for Indian corporate earnings to remain robust

3:47 PM IST

3:44 PM IST COMPANY PRICE(Rs) CHG(Rs) CHG(%) VOLUME PC JEWELLER 128.00 -17.20 -11.85 5276643 DEWAN HSG. FIN. 139.05 -18.15 -11.55 2691416 RELIANCE CAPITAL 137.20 -14.55 -9.59 3198681 INDIABULLS HOUS. 728.10 -72.15 -9.02 627751 SPICEJET 125.25 -11.00 -8.07 9121684 » More on Top Losers

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LIVE UPDATES

MARKET COMMENT :: Jagannadham Thunuguntla, senior vice president, head research (wealth), Centrum Broking

Indian markets had a rough day today, on the back of sharp rise in crude oil price above US$74 per barrel. As a significant importer of crude oil, the high oil price is not good for Indian macros. Further, after breath-taking rally of past two months, a correction was due in the Indian markets; and crude oil has triggered it. Further, ongoing results season has provided mixed performance till date. For the markets to sustain at elevated levels, it’s very important for Indian corporate earnings to remain robust

Sectoral indices at close


Top losers of the day

COMPANY PRICE(Rs) CHG(Rs) CHG(%) VOLUME
PC JEWELLER 128.00 -17.20 -11.85 5276643
DEWAN HSG. FIN. 139.05 -18.15 -11.55 2691416
RELIANCE CAPITAL 137.20 -14.55 -9.59 3198681
INDIABULLS HOUS. 728.10 -72.15 -9.02 627751
SPICEJET 125.25 -11.00 -8.07 9121684
» More on Top Losers

Market check


Nifty at close


Market at close


Jet Airways sees sharp recovery, up 0.6%


MARKET CHECK


Nifty Private Bank index is trading almost 1.8% lower


Trump administration to eliminate Iran oil waivers after May 2 expiration

The Trump administration won’t renew the waivers that let countries buy Iranian crude oil without facing U.S. sanctions, according to four people familiar with the matter, a move that could roil energy markets and risks upsetting major importers such as India and China. Secretary of State Michael Pompeo will announce the decision on Monday morning along with announcing commitments from other suppliers, including Saudi Arabia and the United Arab Emirates, that will offset the loss of Iranian crude on the market, according to two of the people. READ MORE

Stock Alert | KPR MIlls up nearly 5% after Co is likely to consider buyback


Rupee check | Domestic currency trades at day's high, appreciates to Rs 69.5 per Dollar

One of the reasons why the rupee is appreciating against the dollar is because the RBI has minimised its intervention in the currency markets

ICICI Securities on Wipro

Continued strength in digital and healthy deal pipeline commentary would act as the main growth drivers for Wipro. Additionally, room for margin revision, healthy capital allocation policy and reasonable valuation prompt us to recommend BUY on Wipro. Hence, we revise target price to Rs 315 per share (~16x FY21E EPS).

Dun and Bradstreet Business Optimism Index Report

Key Highlights:
 
1.       Dun & Bradstreet Composite Business Optimism Index stands at 78.4 during Q2 2019, an increase of 6.3% as compared to Q1 2019.
 
2.       Optimism for net profits stands at 69% - an increase of 6 percentage points as compared to Q1 2019
 
3.       Optimism for new orders stands at 63% - the same level as in Q1 2019
 
4.       Optimism for volume of sales stands at 74% - an increase of 3 percentage points as compared to Q1 2019
 
5.       Optimism for selling prices stands at 23% - an increase of 4 percentage points as compared to Q1 2019.

DHFL plunges 19% in two days after CRISIL's credit rating downgrade

Dewan Housing Finance Corporation (DHFL) shares plunged 11 per cent to Rs 139 on BSE in intra-day trade on Monday, extending its Thursday’s 8 per cent decline after rating agency CRISIL downgraded credit rating of the company's commercial paper and continued on watch negative. At 01:28 pm, the stock was top loser among S&P BSE 500 index constituents. In comparison, the benchmark S&P BSE Sensex was down 0.88 per cent at 38,795 points. READ MORE



NEWS ALERT | Piccadily Agro Industries said Haryana State Pollution Control Board has ordered closure of its distillery unit for making the compliance of certain pollution norms.



Market check | Nifty IT gains on back of depreciated rupee, all other indices fall over 1%


DHFL tumbles almost 9%


HPCL falls more than 6%


BSE Sensex gainers and losers


Market check | Sensex sheds over 300 points


Nifty PSU Bank index is trading almost 1.5% lower


Centrum on CRISIL

CRISIL’s Q1CY19 results fell short of our revenue estimate by 11 per cent, primarily due to a large sequential drop in research revenues and also sequential decline in ratings revenues.The global risk analytics industry is seeing a decline in demand because of changing regulatory milestones as well as better preparedness across large banks. While this has impacted growth in CRISIL’s research segment, demand for credit risk management services may stay steady as clients ramp up their credit risk architecture. We revise our rating to Add from Buy with TP changed to Rs1,600.

Index watch: NiftyBank needs to hold 30,000 level for the trend to reverse

NiftyBank slipped 307 points, or 1.01 per cent, to close at 30,223.40 on Thursday after rising above its previous all-time high of 30,648. It is witnessing selling pressure above 30,600 - a level which the index has scaled thrice in the current month. The Bearish Engulfing Candlestick pattern suggests any breach of 30,150 levels may further trigger a fall to its support of 30,000 levels. On Monday, the index was trading at 29,918.35, down 1.01 per cent. READ MORE

Market check | Indices at day's low; Nifty at 11,659.15, Sensex at 38,862.47

Sensex

Indiabulls Real Estate off lows, gains 4.39%


Heatmap: S&P BSE Sensex


DCB Bank hits 52-week high post March quarter earnings

DCB Bank shares hit a 52-week high of Rs 211, up 4 per cent, on the BSE, in an otherwise weak market on Monday, after the private sector lender reported healthy earnings for the last quarter of fiscal 2018-19 (Q4FY19). The stock was trading close to its all-time high level of Rs 213 apiece hit on June 16, 2017, on the BSE. READ MORE

BHEL slides 2.3%


Aviation stocks struggle to take off

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%) VALUE
(rs CR)
VOLUME
SPICEJET 129.60 141.70 128.35 -6.65 -4.88 76.98 5939467
JET AIRWAYS 144.15 157.50 132.20 -19.75 -12.05 49.29 3419456
INTERGLOBE AVIAT 1488.00 1544.30 1485.30 -66.70 -4.29 10.85 72913
GLOBAL VECTRA 109.65 114.50 107.00 -6.00 -5.19 0.21 19022
TAAL ENTERPRISES 270.00 270.00 260.00 0.00 0.00 0.01 235

Reliance Capital dips 27% in three days on Brickwork, CARE rating downgrade

Shares of Anil Dhirubhai Ambani Group (ADAG) companies are under pressure, trading lower for the third straight day on the BSE after CARE Ratings and Brickwork Ratings revised the long-term rating for various existing debt instruments of Reliance Capital (RCap). Reliance Capital slipped 11 per cent to Rs 135 on the BSE in intraday trade, plunging 27 per cent in past three trading sessions from a level of Rs 184 on April 15, 2019. READ MORE

Edelweiss on DCB Bank

DCB Bank’s (DCB) Q4FY19 PAT at INR963mn (up >10% QoQ) came broadly in line with our estimate. Key highlights: a) below-trend loan growth along with continued pressure on NIMs kept NII growth below trend at sub-15% (>20% earlier run-rate) & is a key variable; b) asset quality was steady with slippages at 1.8% leading to GNPLs of 1.84% (1.92% in Q3FY19); and c) opex growth was below trend, indicating operating leverage benefits have started to flow in, but cost-income (~54%), albeit improving, remains high. Therefore, sustained improvement is key. While DCB’s performance has been steady, we believe NIM pressure along with high cost ratios will translate in to sub-par RoE (14–15% by FY21E), implying limited upside. Maintain ‘HOLD’ with target price of Rs 213

Investec on RBL Bank

We expect RBK is well paced to deliver 35-40%+ PAT CAGR over the next 3 years enabling the bank to reach 1.5% RoAs by FY20E exit. We marginally increase our estimates and building capital raising of Rs30-35bn for FY0E as per the banks resolution leading to increase in target price to Rs790 (Rs660 earlier). Premium valuations (2.7x FY20E P/B) are sustainable and we reiterate buy.

Prabhudas Lilladher on Ashoka Buildcon

ASBL has delivered a Sale/PAT CAGR of 11%/23% over FY14-18 with average RoE/RoCE of 13%/17%. We believe that a strong order backlog & order inflow,
along with pickup in execution, would drive its revenue growth and margins. Improving visibility/macro environment both in Road and T&D sector will develop
prominence in EPC projects, thus benefiting the company.

RIL stock price factors in most positives, say brokerages

Reliance Industries (RIL) dipped nearly 2 per cent on Monday to Rs 1,345 levels on the NSE, after the company reported a 9.8 per cent jump in its net profit for the January – March 2018 quarter of the financial year 2018 – 19 (Q4CFY19) on Thursday. The gross refining margins (GRM), however, were a disappointment at $8.2 per barrel, compared to $11.1 per barrel y-o-y. The March 2019 quarter GRM is the lowest since the October-December 2014 period, which was at $7.3 per barrel. READ MORE



Kotak Securities on RBI minutes

The minutes of the April MPC meeting reiterated the need to address growth after the objective of low and durable inflation has been achieved. There were, however, some concerns about fiscal slippages and a sharp reversal in inflation due to a weak monsoon. We continue to see room for another 25 bps of rate cut in 1HFY20 on the back of a benign growth-inflation mix. However, uncertainties surrounding the outcomes of election, monsoons and budget should restrain the MPC from cutting the repo rate in June.

Market check


Market check


Gold check | Gold rebounds from four-month lows, spot gold up 0.4 per cent at $1,279.48 per ounce : Reuters

Gold prices rebounded on Monday from a near four-month trough hit in the previous session having touched $1,270.63 - its lowest since Dec. 27, 2018. The metal dropped 1.2 per cent in the previous week, marking a fourth consecutive weekly decline. U.S. gold futures were 0.5 per cent higher at $1,281.70 an ounce. 


Buzzing Stock | Indiabulls Real Estate loses 3.23%


Jet crisis: From SBI to IOB, PSBs to be hit hardest if there's no buyer

Public sector banks (PSBs), which account for 70 per cent of the over Rs 7,000-crore loan given to Jet Airways, will take the biggest hit if no buyer is found for the ailing and now temporarily shut airline. READ MORE

Jet Airways

Reliance Capital slips over 10%


Nifty IT: The only index trading in green today


Nifty Auto index slips in trade


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
REL. COMM. 2.09 -0.11 -5.00 10436471
SPICEJET 138.55 2.30 1.69 1600070
JET AIRWAYS 137.25 -26.65 -16.26 680577
PC JEWELLER 141.25 -3.95 -2.72 475213
IDBI BANK 42.75 -0.65 -1.50 440293
» More on Most Active Volume

BSE Auto index trading in red

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%) VALUE
(rs CR)
VOLUME
ASHOK LEYLAND 93.20 95.85 92.80 -2.50 -2.61 3.58 384008
TATA MOTORS 233.35 236.35 232.70 -2.55 -1.08 5.11 218863
MOTHERSON SUMI 155.00 157.15 154.50 -2.15 -1.37 0.40 25637
APOLLO TYRES 214.00 217.00 213.65 -4.85 -2.22 0.47 22103
M & M 680.00 688.00 678.40 -3.40 -0.50 0.42 6120
BHARAT FORGE 489.20 500.00 489.15 -10.55 -2.11 0.30 6068
EXIDE INDS. 217.80 220.90 217.25 -3.15 -1.43 0.11 4905
TVS MOTOR CO. 511.80 516.00 506.75 -6.40 -1.24 0.20 3988
HERO MOTOCORP 2735.30 2748.40 2730.00 -4.00 -0.15 0.87 3198
MARUTI SUZUKI 7375.00 7434.00 7363.25 -66.10 -0.89 1.78 2419
BALKRISHNA INDS 943.00 963.00 943.00 -17.45 -1.82 0.15 1563

OMCs under pressure

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%) VALUE
(rs CR)
VOLUME
RELIANCE INDS. 1354.65 1364.00 1345.30 -28.25 -2.04 16.72 123437
I O C L 151.50 153.00 149.55 -4.65 -2.98 1.86 123079
H P C L 253.25 259.95 251.60 -13.35 -5.01 2.43 95917
B P C L 348.15 354.75 346.75 -14.00 -3.87 1.58 45482
O N G C 160.35 161.10 159.20 0.15 0.09 0.65 40807
CASTROL INDIA 160.45 163.35 160.05 -2.70 -1.65 0.27 17039
OIL INDIA 179.00 179.65 178.25 -0.20 -0.11 0.20 11094
INDRAPRASTHA GAS 321.45 326.00 320.65 -3.60 -1.11 0.14 4333
GAIL (INDIA) 347.85 352.90 347.85 -4.10 -1.16 0.13 3641

BPCL tumbles over 4%


Jet Airways tanks over 14%; stock hits new 52-week low


Tata Coffee gains over 3% after Q4 results


Nifty PSU Bank index is trading 1% lower


YES Bank slips over 2% in early trade


GVK Power gains over 7.5%


Syngene International up 3%


Reliance Industries slips almost 2% after Q4 results


Nifty Realty is trading 1.46% lower


Sectoral trend on NSE


Index watch: NiftyBank needs to hold 30,000 level for the trend to reverse

RSI (Relative Strength Index) and MACD (moving average convergence and divergence) - the major technical indicators - are trading with negative crossovers as per daily chart pattern CLICK HERE FOR MORE

INTERVIEW OF THE DAY :: Manishi Raychaudhuri, Asia Pacific Equity Strategist at BNP Paribas

Mid-and small-caps appear relatively attractive: BNP Paribas' Raychaudhuri

Election outcome-related uncertainty has failed to dent market sentiment, with the S&P BSE Sensex and the Nifty50 hitting new highs last week. Manishi Raychaudhuri, Asia Pacific Equity Strategist at BNP Paribas, tells Puneet Wadhwa that in the medium term, monetary policy stances of global central banks are bigger variables governing flows into emerging markets (EMs) than domestic political news. READ MORE HERE

Manishi Raychaudhuri, Asia Pacific Equity Strategist at BNP Paribas

Top gainers and losers on S&P BSE Sensex at open


Intra-day future recommendation from ICICI Securities

1. Buy Nifty in the range of 11735-11752
 
2. Buy Bank Nifty in the range of 30150-30200
 
3. Buy HPCL in the range of Rs 270.00-270.40
 
4. Sell Hindalco in the range of Rs 205.70-206

Market Opening

At 9:18 AM, Markets were trading in the red. BSE Sensex was trading at 38,940, down over 200 points, or 0.51 per cent, whereas NSE Nifty50 was trading at 11,682, down 70 points, or 0.60 per cent.

Top gainers and losers in Pre-open


Market at pre-open


Rupee opening

Rupee opens lower at Rs 69.75 against US dollar, down 40  40 paise against Thursday's close of Rs 69.35

The rupee opened at 71.12 a dollar, and closed at a near three-month high of 70.69

Market at pre-open


Stocks to watch :Reliance Industries, Jet Airways, HDFC Bank

Here's a look at the top stocks that may remain in focus today -
 
Q4 results today: Abirami Financial Services (India) Ltd, Ashika Credit Capital Ltd, AU Sumall Finance Bank Limited, Goa Carbon Limited, and others will announce their March earnings on Monday.

Reliance Industries announced its Q4 results on Thursday after market hours. Its net profit in January-March, at Rs 10,362 crore, or Rs 17.5 a share, was 9.8 per cent higher than Rs 9,438 crore, or 15.9 per share, in the same quarter a year earlier
 
HDFC Bank also announced its March quarter earnings on Saturday and reported a rise in net profit by nearly 23 per cent QoQ. The gross NPA were 1.36 per cent of gross advances and net NPA were 0.4 per cent of net advances. READ MORE


Surge in foreign flows a key reason for uptick in delivery volumes: Experts

The market could be on a strong footing if delivery-based trading data is anything to go by. In March, when the benchmark indices rallied nearly eight per cent, the proportion of delivery-based trades in total trading volume was the highest in 15 months.The delivery-based volumes on the BSE stood at 50 per cent, while that on the National Stock Exchange (NSE) was 37 per cent. The previous 12-month average in comparison was 45 per cent on the BSE and 33 per cent on the NSE. Increase in delivery percentage indicates that a higher portion of long-term money could be entering the market. READ MORE


Stock calls by Anand Rathi: Buy JSW Steel, BEML

closed in the negative territory in last trading section and with that has fallen in the range of 11,850-11,650. However, the overall trend in short-to-medium term is still positive. The range prior to this was of 200 points hence the target on the upside in 11,950. So, we continue to maintain our bias positive.

Buy JSW STEEL
Target: Rs 320
Stop Loss: Rs 285

The stock has provided breakout form the sideways consolidation which was formed in its wave B. With this breakout, the wave C on the upside seem to have started. The momentum indicators on the daily & weekly charts are positive. Hence we maintain bias positive for stock. READ MORE

Short-term outlook for the market remains positive: Devang Shah

NIFTY

CLOSE- 11752.80 (18.04.2019)

The market closed last week in the positive territory. It consolidated in a narrow range for the truncated week and has made a high of 11,856.20 levels on Nifty so far in this rally. There's a high possibility of wave-III of 5 Extension case in short term towards revised higher levels targets. On the other hand, the failure to extend from here will open up the possibilty of consolidation range on Nifty between 11,300-11,800 levels in short term but any kind of decline or consolidation is buying opportunity till short term reverses. READ MORE

Derivative strategy on ONGC by HDFC Securities

Buy ONGC
APRIL 160 CALL at 2.30
Stop loss of Rs 1.40
Target Rs 4
.
Rationale:
.
  • Long build up is seen in the ONGC Futures’ in April series till now, where we have seen 7% rise in Open Interest with price rising by 3%
  • Stock price has broken out on the weekly chart by closing above the resistance level of 160
  • Stock price is trading above its 5, 20 and 200 day SMA, Indicating stock is in uptrend for the short to medium term
  • Oscillators and Mometum Indicators like RSI and MACD have turned bullish on weekly charts. READ MORE

Top trading ideas by Angel Broking: Buy IGL, Ashok Leyland

IGL

Recommendation: Bullish

Last Close: Rs 327.20

The last four to five months have been excellent for this stock along with its peer counter MGL. Due to last week’s up move, the stock prices are now trading at '52-week high'. The overall structure has been extremely sturdy and the way prices are shaped up, the new high is very much in the offing. Supporting to this price action, the ADX (14) indicator on daily chart is moving northwards from its important mark of 25. This generally provides impetus to stock prices and hence, we expect the acceleration in coming days. Considering all these evidences, we recommend buying at current levels for a target of Rs 357 and the stop loss should be fixed at Rs 311. READ MORE

Commodity Picks: 22 April, 2019

Castor
 
Castor is trading at Rs 5,700 per quintal at the benchmark Patan market. In the coming days, castor prices are expected to fall and head towards Rs 5,440 to Rs 5,420 per quintal amid improved arrivals. Arrivals are picking up in line with seasonality. Surge in prices is also encouraging farmers to liquidate immediately after harvesting. READ MORE

Castor Seeds

Rupee check

The domestic currency closed at Rs 69.36 per US dollar on Thursday, up 10 paisa.

Oil check

Oil prices rose by more than one percent on Monday after reports suggested that United States was preparing to announce either a curb on "all imports" of Iranian oil or impose conditions on imports. Brent crude futures rose above $72.90 for the first time since November 2018 on Monday, hitting a high of $72.93.

Representative Image
 

US Market check

All major US indices closed in green on Thursday ahead of a long Easter weekend. While Nasdaq closed at 7,889.06, Dow Jones and S&P500 closed at 26,559.5 (up 110 points) and 2,905 (up 4.58 points) respectively. 

Asian Markets check

Asian equities markets were subdued on Monday, with MSCI’s broadest index of Asia-Pacific shares outside Japan trading little changed. South Korea’s KOSPI was almost flat and Japan’s Nikkei shed 0.2 percent. At 8:07AM, SGX Nifty was trading 21 points lower at 11,787.
 
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