MARKET WRAP: Sensex, Nifty pare losses, end flat; YES Bank slips 30%

The benchmark indices closed Tuesday's session marginally lower. Both Sensex and Nifty spent the majority of their day in the negative zone, with the former sliding almost 300 points at one point, dragged down by financials. However, buying in metal stocks and OMCs lifted the indices in the last hour of trade but couldn't pull the indices out of the red zone.

The S&P BSE Sensex ended the day at 39,032, down 36 points, or 0.09 per cent, with YES Bank, IndusInd Bank, Hero MotoCorp, Maruti Suzuki India, and Powergrid being among the top losers. The broader Nifty50 also slid 6.5 points, or 0.06 per cent, to 11,748. About 1,326 stocks fell and 468 shares declined on the NSE.

Among sectoral indices, the biggest loser was the Nifty PSU Bank index, down 3.34 per cent, while Nifty Realty also fell 2.3 per cent.

The broader markets undperformed the benchmark indices, with the S&P BSE MidCap index slipping 175 points, or 1.16 per cent, to 14,889, while the S&P BSE SmallCap index was ruling at 14,625, down 189 points, or 1.27 per cent.

BUZZING STOCKS

YES Bank shares tanked 29.2 per cent to Rs 168 on the National Stock Exchange (NSE) after the bank reported a whopping Rs 1,506 crore net loss for the March quarter (Q4FY19) as provisions soared over nine times. The private sector bank posted its first-ever quarterly loss during the quarter. It had posted a profit of Rs 1,179 crore in the year-ago period. READ MORE

Eveready Industries shares plunged 20 per cent to Rs 116.85 after rating agency India Ratings and Research (Ind-Ra) downgraded the company's long-term credit rating with negative outlook. READ MORE

GLOBAL MARKETS

 
Shares in Asia fell on Tuesday as readings on China’s manufacturing activity failed to meet expectations, underscoring weakness in the world’s second-largest economy despite Beijing’s attempts to spur growth.

MSCI’s broadest gauge of Asia-Pacific shares outside Japan was off 0.7 per cent. Korean shares led losses for the region, falling 1.3 per cent. Australian equities fell 0.6 per cent. 

(With inputs from Reuters)


3:43 PM IST COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%) ASTER DM HEALTH. 147.00 141.00 0.75 0.51 EVEREADY INDS. 116.85 116.85 -29.20 -19.99 GRAPHITE INDIA 384.65 375.00 -22.80 -5.60 HEG 1624.00 1601.30 -82.75 -4.85 HERO MOTOCORP 2507.55 2478.00 -96.60 -3.71 » More on 52 Week Low

3:43 PM IST COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME YES BANK 166.50 -70.90 -29.87 20292241 EVEREADY INDS. 116.85 -29.20 -19.99 148145 RELIANCE POWER 6.08 -1.31 -17.73 24220913 ANDHRA BANK 24.10 -3.30 -12.04 803070 IFCI 10.57 -1.22 -10.35 963223 » More on Top Losers

3:42 PM IST

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3:14 PM IST

2:44 PM IST Net profit : Rs 28.1 crore, up 61.1%, from Rs 17.4 crore YoY Revenue: Rs 705.7 crore, up 21.9%, from Rs 579 crore YoY EBITDA: Rs 55 crore, up 18.7%, from Rs 46.4 crore YoY EBITDA Margin: 7.8%

2:35 PM IST

2:32 PM IST

LIVE UPDATES

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

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
ASTER DM HEALTH. 147.00 141.00 0.75 0.51
EVEREADY INDS. 116.85 116.85 -29.20 -19.99
GRAPHITE INDIA 384.65 375.00 -22.80 -5.60
HEG 1624.00 1601.30 -82.75 -4.85
HERO MOTOCORP 2507.55 2478.00 -96.60 -3.71
» More on 52 Week Low

Top losers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
YES BANK 166.50 -70.90 -29.87 20292241
EVEREADY INDS. 116.85 -29.20 -19.99 148145
RELIANCE POWER 6.08 -1.31 -17.73 24220913
ANDHRA BANK 24.10 -3.30 -12.04 803070
IFCI 10.57 -1.22 -10.35 963223
» More on Top Losers

Heatmap: S&P BSE Sensex


Nifty sectoral indices at close


Market at close


Indian Oil Corporation gains almost 4%


HCL Tech rises 4%


NEWS ALERT | Filatex India Q4 results

Net profit : Rs 28.1 crore, up 61.1%, from Rs 17.4 crore YoY
Revenue: Rs 705.7 crore, up 21.9%, from Rs 579 crore YoY
EBITDA: Rs 55 crore, up 18.7%, from Rs 46.4 crore YoY
EBITDA Margin: 7.8%

Adani power is trading over 8% lower


Nifty Auto is trading over 2% lower


Reliance Comm down over 2% after NCLAT lifts stay on insolvency proceedings


Exide Industries up 2% on Q4 numbers


NEWS ALERT | Exide Industries declares Q4 numbers

- EBITDA at Rs 373.2 crore, margin at 14.3%
- Net profit at Rs 210.7 crore, up 11% YoY
- Revenue at Rs 2,599 crore, up 5.7%

Heatmap: S&P BSE Sensex


HEG, Graphite India, IDBI Bank, MRF, Rallis India hit 52-week lows

As many as 41 stocks, including HEG, Graphite India, MRF, IDBI Bank, Rallis India, Eveready Industries, Hero MotoCorp and Natco Pharma hit their respective 52-week lows on the BSE on Tuesday. All of them trade on S&P BSE Allcap index.
 
IFCI, Navkar Corporation, Reliance Communications, Reliance Power, Shipping Corporation of India, TVS Srichakra Tyres, DB Realty and VST Tillers Tractors were among notable shares that too hit their 52-week lows today. READ MORE

Sector watch | Aviation sector declines

 
SpiceJet loses over 3% while Jet Airways fall nearly 11%.

 

Before investing in Morningstar's PMS, take a close look at cost structure

Morningstar, the US-based firm, well known in India as a provider of fund ratings, has now launched its portfolio management service (PMS). It already offers such solutions in the US, the UK, Australia and South Africa. Most investors have a need for proper asset allocation and fund selection to achieve their goals and usually approach a financial advisor for this purpose. READ MORE

Indiabulls Housing Finance slips almost 9%


Jhunjhunwala to Damani, meet the superstar investors everyone wants to copy

A small number of individual investors has managed to make successful investments in stock markets over the years. These investors are always on the radar of retail investors as they try to copy investment calls made by these savvy investors. We look at portfolios of some of India’s largest individual investors. The compilation is on the basis of disclosures of shareholders with more than one per cent stake in listed companies. Sometimes copycat strategy can work wonders as following the right investor could lead smaller investors into a multi-bagger story. READ MORE



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

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
ASTRAZENECA PHAR 2370.50 2398.55 49.30 2.12
AUROBINDO PHARMA 816.20 838.00 -13.90 -1.67
BAJAJ FINSERV 7574.05 7740.40 -143.95 -1.87
BANK OF MAHA 18.37 20.00 -0.93 -4.82
HCL TECHNOLOGIES 1177.60 1181.10 39.80 3.50
» More on 52 Week High

Nifty IT index is trading over 1% higher


ICICI Direct on YES Bank result update

"As expected, the change in leadership has led to a balance sheet clean-up (popularly termed kitchen sinking). Hence, an impact on earnings in the near term is imminent. The stress book of Rs 10,000 crore is significantly higher than expected with upside risks. Therefore, in spite of conservatively factoring in higher credit cost in FY20E, a sharp rise in FY19 credit cost at ~209 bps and guidance of further credit provision in future has pushed RoA of 1 per cent to two years ahead. Further slippages in BB and below rated pool remains a key concern, going ahead. In addition, capital raising is expected to further dilute RoE (FY19 at 6.5%) and expect FY21E RoE at 12 per cent. Factoring in concerns on asset quality does impact our ABV estimates ahead, however, capital raising of ~Rs 5,000 crore led to marginal decline in ABV to Rs 133 for FY21E. We revise our rating to HOLD (with a negative bias) from BUY as investors will be cautious for next 3-6 months, as upside risk to stressed book is probable. Therefore, we lower our target multiple to ~1.3x FY21E ABV and downgrade our target price to Rs 180 per share (from Rs 300 earlier). On the positive side, the bank has started recognising stress and with moderation in growth and positive change in accounting practices, RBI’s concerns may be partly addressed."

Sundaram Mutual increases stake in YES Bank by over 16,000% in Q4FY19

Shares of YES Bank tanked 30 per cent in trade on Tuesday, after the bank reported a massive Rs 1,507 crore loss in the fourth quarter of financial year 2018-19 (Q4FY19). The numbers were released post market hours on Friday. The results saw most brokerages downgrade the stock to ‘sell’, setting the 12-month price target lower by as much as 40 per cent from Friday’s close. READ MORE



Index watch

S&P BSE Bharat 22 Index 3,586.71 -27.21 -0.75
S&P BSE 100 11,829.02 -56.50 -0.48
 
S&P BSE SENSEX Next 50 32,567.84 -384.42 -1.17
 
S&P BSE SENSEX 50 12,186.45 -44.99 -0.37
 
Index Current Pt. Change % Change
 
S&P BSE SENSEX 38,904.73 -162.60 -0.42
 

Sectoral trend on NSE


MARKET CHECK


Motilal Oswal Financial Services on Hero MotoCorp

We maintain our earnings estimates for FY20/21 as volume decline of 1% is offset by lower employee expense. Valuations at 14.7x/14.1x FY20/21 EPS is a fair reflection of ~4.5% EPS CAGR over FY19-21E. Maintain Neutral with a target price of Rs 2,912. 

Elara Capital on Hero MotoCorp

Hero MotoCorp margin remains resilient in a tough environment of weak demand, rising discounts as well adverse commodity prices; we expect margin to improve from the current levels in FY20 owing to higher volumes. We remain watchful over high levels of dealer inventory as rural demand has slowed significantly; marriage season retail demand in Q1FY20 will remain key. We are impressed by HMCL’s market share gains in the executive MC segment at 260bp YoY in FY19 and healthy growth in the economy segment at +15% YoY despite aggression from Bajaj. We reduce FY20-21E EPS by 5-6 per cent to factor in volume and margin cuts. We revise to Accumulate from Buy with a new TP of Rs 3,071 from Rs 3,215 on 16x (unchanged) FY21E P/E as we roll forward. FCF yield is now at an attractive ~7 per cent over FY20-21E. Dividend yield at 3.2 per cent for FY19.
 

NEWS ALERT | Investment and Precision Castings recommend dividend

The board of the company has recommended payment of dividend @20% i.e. Rs 2.00 per equity share for the financial year 2018-19.

M&M tanks 2%


ICICI Securities on YES Bank

We revise our rating to HOLD (with a negative bias) from BUY as investors will be cautious for next 3-6 months, as upside risk to stressed book is probable. Therefore, we lower our target multiple to ~1.3x FY21E ABV and downgrade our target price to Rs 180 per share (from Rs 300 earlier). On the positive side, the bank has started recognising stress and with moderation in growth and positive change in accounting practices, RBI’s concerns may be partly addressed.

Election outcome uncertainty, earnings: Should you sell in May and go away?

The month of May is traditionally considered bad for equity markets in Europe and the US, as fund managers typically go on a long summer vacation. Back home, the outcome of the ongoing general elections, corporate results, oil prices and rupee level are some of the key factors investors will monitor closely at a time when the indices are trading close to all-time highs. READ MORE

NEWS ALERT | China factory output expands at slower pace: Reuters

Factory activity in China expanded for a second straight month in April but at a much slower pace than expected, an official survey showed on Tuesday, suggesting the economy is still struggling for traction despite a flurry of support measures.


Rate-sensitive stocks fall; PSU banks worst hit, Bank of Baroda slips 6%

Rate-sensitive stocks such as banks, auto and realty stocks came under heavy pressure in the morning trade on Tuesday, dragging the benchmark indices nearly a per cent lower. At 10:00 am, the S&P BSE Sensex was trading 286 points or 0.73 per cent lower at 38,782, while the broader Nifty50 index of the National Stock Exchange (NSE) was ruling 90 points or 0.76 per cent down at 11,665. READ MORE


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
MINDTREE 982.25 6.00 0.61 32792299
REL. COMM. 1.71 -0.03 -1.72 15739186
RELIANCE POWER 6.13 -1.26 -17.05 12163685
YES BANK 175.00 -62.40 -26.28 10494730
RELIANCE CAPITAL 131.95 -13.20 -9.09 1726734
» More on Most Active Volume

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

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
EVEREADY INDS. 116.85 116.85 -29.20 -19.99
GRAPHITE INDIA 388.00 385.20 -19.45 -4.77
HEG 1619.95 1605.00 -86.80 -5.09
IDBI BANK 40.80 40.65 -2.00 -4.67
IFCI 11.05 11.05 -0.74 -6.28
» More on 52 Week Low

Ajanta Pharma down over 2%


Buzzing | Eveready Industries down 20%


L&T Finance Holding down 5%


JM Financial on Hero MotoCorp

With two additional launches, including the launch of ‘Maestro125’ next month, HMCL expects to strengthen its position in the scooter segment. We estimate revenue/earnings CAGR of 8 per cent /6 per cent over FY19-21 driven by volume CAGR of 3 per cent. Maintain ‘BUY’ with revised Mar’20 TP of Rs 2,850. Limited success of new model launches and higher than anticipated slowdown in sales post BS6 transition are key risks to our call.

L&T Housing Fin down over 2%



Orient Cement gains over 5%

The company's Q4 net jumped over four-fold to Rs 61.98 crore. Orient Cement's total income rose 21.14 per cent to Rs 754.89 crore during the quarter under review as against Rs 623.13 crore in the corresponding quarter last year.

Gruh Finance down over 3% ahead of earnings


Reliance Power tanks 19%


Nifty Realty down nearly 3%


Nifty PSU Bank index is trading over 4% lower


NEWS ALERT | L&T buys shares of Mindtree via block deal: Report

According to CNBC TV18, L&T has bought shares of Mindtree, worth Rs 3,300 crore, which were sold by CCD.


India VIX up 4.06%

Nifty Midcap and Smallcap indices are down 1.38% and 1.6% respectively; Volatality index up 4.06% 

Persistent Systems down nearly 2%


PNB Housing Fin slips over 5% on rating downgrade

CARE Ratings has placed PNB Housing Finance Ltd's ratings on watch with developing implications due to requirement to raise money to maintain comfortable capital adequacy and gearing level.



Weekly future recommendation by ICICI Securities

Buy Dr Reddy (DRREDD) May future in the range of Rs 2,900-2910. 
 
Target: Rs 3,140
 
Stop Loss: Rs 2,780
 
Rationale
 
Pharma stocks seem to be witnessing renewed buying interest since the April series. Stocks like Dr Reddy’s have moved to two year high levels on the back of gradual delivery based buying. Meanwhile closure of positions was seen in the stock as almost 17% OI was shed since March series. The roll spread in Dr Reddy’s was quite high around 75 bps suggesting lack of short rollover in the stock. In the options space, the highest Put base is placed at Rs 2,800 indicating expectations of limited downsides. We expect upsides to be seen in the stock ahead of its quarterly results on the back of continued short covering.

Tata Steel rallies 10%


DHFL plunges 8%


NEWS ALERT

Axis Bank says, have received petition filed by Ministry of Corporate Affairs; will examine the petition and reply soon.



Reliance Nippon Life AMC down over 4%


Bank of Maharashtra down over 5%


Sectoral trends on NSE

Nifty Bank down 245 points, PSU Bank, Realty index down over 2% each

Market check

All Nifty indices in red, India VIX up 0.55%



Market check


Bank of Baroda down over 6%


Momentum picks by ICICI Securities


Hero Motocorp down over 2% during on weak Q4 nos


Indiabulls Housing Finance down over 4%


IndusInd Bank down 5%


YES Bank tanks 25%


Hero Motocorp down nearly 1% during pre-open trade

The auto major reported a decline of 24.5% in its standalone net profit at Rs 730.32 crore for the fourth quarter ended March 31, 2019

Rupee opening

Rupee opens higher at 69.82/$ against its previous close of 70.01 per dollar

YES Bank tanks nearly 10% on weak Q4 numbers

The bank posted a surprise loss of a whopping Rs 1,506 crore for the March quarter.



Nifty at Pre open


Market at pre-open


NEWS ALERT | Ravneet Gill, MD & CEO, YES Bank to CNBC TV18

Expect RoA of 1.5% in next 18 months post March 2021.
 
Loss given default in the watchlist is under comfortable level.
 
Made clear disclosure on which assets are rated BB and below.
 
Aware of asset and stake sales which could change profile of acounts under watchlist.
 
Very confident of meeting the credit cost guidance given by the bank.
 
Will discountine upfront booking of fees and amortise fee income.

Deny remour of leaving YES Bank. 

NEWS ALERT

Cipla gets USFDA nod for generic of Letairis, used to treat pulmonary hypertension.


Anand Rathi on Cyient

Recommendation: BUY
Cyient's $165.2m Q4 revenue was flat q/q & y/y (down 0.3% q/q in CC). Services revenue was weak ($147m, up 1.7% q/q, 3%y/y) on certain projects deferred.DLM at $18.2m (-11% q/q,17% y/y) dragged on overall performance. The 15.1% EBITDA margin was +34bps q/q, 101bps y/y on reduced head count and cost measures in DLM. We lower our FY20e/ 21e sales ~5% each (but retain earnings est. due to margins), and target PE from 16x to 14x on slow growth and weak acquisition performance.

Nifty outlook by Prabhudas Lilladher

NIFTY VIEW
Market has very well held on to its support with Nifty closing above 11,700 levels keeping the weekly trend up for the past 9 weeks, while Bank Nifty has turned its weekly trend down after 7 weeks. Among banking sector Kotak, Indusind, SBI look good, Auro Pharma which was our buy recommendation having closed above Rs 830 gives further upside target of Rs 850 - Rs 900 levels. The support for the week is seen at 38,400/11,540 while resistance is seen at 39,600/11,920. Bank Nifty would have a range of 29,340-30,550. This week is a truncated week.

Market outlook by Religare Broking

Markets ended almost unchanged amid volatility last week, tracking mixed cues. The beginning was downbeat, pressurized by weak global markets and rise in the crude oil prices. Volatility remained high throughout the week, thanks to derivative expiry, which kept the traders on their toes. Mixed trend was witnessed on sectoral front while the broader indices remained under pressure. Among the benchmark indices, Nifty finally settled flat at 11,754.65 level.
 
The coming week is a holiday-shortened one and participants will react to list of important data and events. First on the list, we have auto and cement sales data which will start pouring in from the beginning of the month. Besides, Nikkei Manufacturing PMI data is scheduled on May 2. On global front, the US Fed will unveil the outcome of FOMC meet on May 1.
 
We’ve mixed indications at present and that may continue for some time, probably till the elections outcome. Meanwhile, handling volatility will be the biggest challenge as the benchmark index is witnessing erratic swings and the situation is no different on broader front. Nifty strongly upheld its support around 11,550 last week while hurdle at 11,800 is capping the upside so wait for either side decisive break for next directional move. Pharma and IT pack look stable to us while metal and media counters may remain volatile so plan your trade accordingly.

Challenging times continue for Rallis India as Q4 net sees 93% decline

Agrichemicals and seeds major Rallis India continues to disappoint the Street given the lower-than-expected performance for March 2019 quarter (Q4). A 93 per cent decline in consolidated net profit stumped both investors and analysts, even as a weak performance was expected due to the challenging environment. READ MORE

Analysts say 'no' to YES Bank stock, cut 12-month target price by 40%

Analysts have downgraded the shares of YES Bank following the announcement of its March quarter results, where it reported a net loss of Rs 1,506 crore. Analysts have cut their 12-month price target by as much as 40 per cent and scaled back their earnings growth forecasts by up to 45 per cent for FY20 and also FY21. Large stressed pool, aggressive accounting practices and weakness in the retail franchise are among the reasons cited by analysts for their bearish stance. READ MORE


Short-term outlook for the market remains positive; Buy HDFC Bank, Cummins

Market closed, marginally, in the negative territory during the past week, consolidating within a narrow range. The consolidation has been in the range of 11,550-11,800 levels for the entire month of April after a sharp surge was seen in the month of March. The broader index has touched a high of 11,856.20 levels on Nifty so far during this rally. There is a high possibility of “wave-III of 5 extension case” in the short term towards a revised higher level target. 11,300 is another strong support on Nifty in the near term. Any kind of decline or consolidation is a buying opportunity till short term reverses. READ MORE


Nifty outlook and top trading ideas by Angel Broking

11,549 becomes a sheet anchor for Nifty
 
Last week, our benchmark index clocked new record high of 11,856.15. However, it turned out to be a formality as there was no follow-up momentum seen to extend the rally. Last Friday, the markets gave a hint of profit booking and similar sort of decline was seen on the first day of the week gone by as well. Some macro factors like, Brent crude rising beyond its key levels of $73-74 weighed down heavily on traders’ sentiments. Fortunately for us, the damage was not as severe as it looked like once. Due to some smart recovery in the latter half, Nifty managed to reclaim the 11,700 mark at the end of the week. READ MORE

Top trading calls by Anand Rathi: Buy TCS, Axis Bank

BUY NIFTY: 
 
TARGET: 11,850
 
STOP LOSS: 11,620
 
The Nifty closed in the positive territory in the last trading session and with that it is expected to move towards the upper end of the range. The daily momentum indicator, however, is still in the 'sell' mode which may make the Index trade within the range of 11,550-11,850 levels. However, the trend prior to this breakout was up, hence the breakout is likely to be on the upside.
 
BUY ICICIPRULI
 
TARGET: Rs 390
 
STOP LOSS: 358
 
The stock has provided a breakout from the symmetrical triangular pattern and it has managed to close above this consolidation for the week. The daily momentum indicator MACD however is still in sell mode, hence the probability of an upside is higher. READ MORE

YES Bank, Reliance Capital, TVS Motor and Ajanta Pharma top stocks to watch

Here's a look at the top stocks that may remain in focus today -
 
 
YES Bank: YES Bank shares are likely to face pressure when the trading resumes on Tuesday after the lender reported a surprise loss of a whopping Rs 1,506 crore for the March quarter under a new management led by Ravneet Gill. Post this, Australian brokerage Macquarie said on Monday its assessment of YES Bank's structured finance business was "all wrong" and downgraded the bank's stock to "underperform".
 
Earnings today: As many as 44 companies including Ajanta Pharma, Ambuja Cements, Can Fin Homes, Godrej Properties, Indian Hotels, Gruh Finance, TVS Motor Company and Monsanto are slated to release their Q4 earnings today.
 
Reliance Capital: Debt-ridden Reliance Capital (RCap) is planning to bring in strategic investors in two group entities — home finance and commercial finance businesses, said a Business Standard report. Blackstone, Carlyle, Brookfield, and Piramal group are in talks to buy a large stake in Reliance Home Finance (RHFL), the report said citing sources. READ MORE


Bulk deal on NSE as on Friday

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


Rupee check

Source: Bloomberg

Oil check

At 8:10 am, Brent Crude Futures werre trading at $71.33 a barrel.


SGX Nifty

At 8:08 am, the index was down 48 points and was trading at 11,821.50 level

Asian Markets check

Source: Reuters



Wall Street check

Source: Reuters
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