Benchmark indices ended lower for the sixth consecutive session on Wednesday amid across-the-board selling and weak global cues. The S&P BSE Sensex lost 488 points or 1.27 per cent to settle at 37,790 with Reliance Industries (RIL) being the top loser and Asian Paints the biggest gainer. RIL alone contributed around 153 points to the Sensex's fall.
The broader Nifty50 index of the National Stock Exchange (NSE) slipped below the crucial 11,400 level to end at 11,359, down 138 points or 1.2 per cent. Out of 50 constituents, 40 ended in the red and just 10 in the green.
All the sectoral indices on NSE ended in the red. Media stocks took the hardest knock, followed by realty and PSU bank stocks. The Nifty Media index settled at 2,134, down 101 points or 4.53 per cent.
STOCKS THAT MADE NEWS
Reliance Industries: Shares of Reliance Industries (RIL) hit an eight-week low on the BSE on Wednesday. The stock has lost 7 per cent in the past three trading days. It ended at Rs 1,299.45 apiece on BSE, down over 3 per cent. READ MORE
Essel Group shares: Shares of Subhash Chandra-led Essel Group companies were under pressure on Wednesday with Zee Entertainment Enterprises (ZEEL) and Dish TV India falling more than 8 per cent each on the BSE. The fall comes despite the group's assurance that the stake sale process of Zee Entertainment Enterprises was at an "advanced stage." At close, ZEEL stood at Rs 333, down 10 per cent while Dish TV India settled nearly 2 per cent lower at Rs 31.
Vodafone Idea: Vodafone Idea shares hit a new low of Rs 13.65, down 12 per cent on Wednesday, declining 17 per cent in past two trading days on the BSE, on back of two-fold jump in trading volumes. The stock ended at Rs 14.35, down over 7 per cent.
In line with benchmarks, the S&P BSE MidCap index shed 139.50 points or 1 per cent to end at 14,383 while the S&P BSE SmallCap closed the day at 14,129 levels, down 172 points or 1.21 per cent.
Neogen Chemicals, one of India's leading manufacturers of bromine-based and lithium-based specialty chemicals, listed its shares at Rs 251 apiece on BSE, a premium of 16.74 per cent against the issue price of Rs 215. The stock, eventually, ended at Rs 263.55, up 22.58 per cent against its issue price.
World shares held near five-week lows on Wednesday as renewed trade tensions and fears for the global economy drove investors into the safety of bonds
MSCI’s Asia-Pacific share index excluding Japan, fell almost one per cent to touch its lowest level since late-March, while the pan-European EuroStoxx index was flat, clawing its way back from multi-week lows
Japan Nikkei closed 1.66 per cent lower, KOSPI ended 0.41 per cent lower.
(With inputs from Reuters)
3:39 PM IST
3:38 PM IST
CG POWER & INDU.
» More on Most Active Volume
3:37 PM IST
J & K BANK
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3:36 PM IST
CG POWER & INDU.
» More on Top Gainers
- Net profit at Rs 27.6 crore vs loss Rs 17.2 crore y-o-y
- Gross NPA at Rs 496 crore (7.47%) vs Rs 508 crore (8.11%)
- Net NPA at Rs 152 crore (2.41%) vs Rs 172 crore (2.93%)
-NII at Rs 87 crore vs Rs 86 crore
- Stock reacts: gains 5%
NEWS ALERT | RBI likely to cut rates in June; none thereafter on rising inflation: IHS Markit
The Reserve Bank of India (RBI) is likely to cut interest rates one more time in June before rising inflation pressures and elevated fiscal deficits leave little room for further accommodation in rest of the year, IHS Markit said Wednesday. RBI had cut interest rate by 25 basis points each in February and April to boost economic growth. READ MORE
NEWS ALERT | Satin Creditcare Q4 result
- Consolidated net profit at Rs 128 cr Vs Rs 85.6 cr, up 49.4% y-o-y
- Cons revenue at Rs 746.4 cr Vs Rs 554.4 cr, up 34.6% y-o-y
From net sales to profit, how Marico bucked the slowdown trend in Q4
Consumer goods major Marico reported its highest domestic volumes growth in three quarters as the Mumbai-based firm emerged an outlier in a market reeling from a slowdown. For the three months ended March 2019 (Q4), Marico's net sales, operating profit and net profit (excluding tax writebacks) grew 9 per cent, 12 per cent and 18 per cent, respectively, from a year earlier, surprising analysts, even as overall volume growth came in at 8 per cent. READ MORE
Bosch falls nearly 3%
NEWS ALERT | Rain Industries off highs on weak Q4 result
- Consolidated nert profit at Rs 68.8 crore, down 72.6% y-o-y
- Cons revenue at Rs 3,196.5 crore, down 3.3% y-o-y
- EBITDA at Rs 351.7 crore, down 45.2% y-o-y
- EBITDA margin at 11%, down 840 bps
UPL gains 2%, nears 52-week high as board considers bonus issue
Shares of UPL gained 2 per cent intra-day on Wednesday to quote Rs 968 apiece on the BSE in an otherwise weak market after the company announced its plan to issue bonus issue shares.
At 12:51 pm, the stock of the agrochemicals major was trading close to its 52-week high of Rs 975 - quoted on May 3, 2019 - on the S&P BSE, which was down 1 per cent at 37,921 levels. READ MORE
Vodafone Idea slips up to 12%, hits new low as rights issue shares start trading
Vodafone Idea shares hit a new low of Rs 13.65, down 12 per cent on Wednesday, declining 17 per cent in past two trading days on the BSE, on back of two-fold jump in trading volumes. READ MORE
Once darling FMCG stocks turn sour as India's consumption engine sputters
Producers of household items have been India’s best stock market bets for years. But the consumption slowdown in the world’s fastest-growing major economy is rubbing the sheen off these shares.
The 74-member S&P BSE Fast-Moving Consumer Goods Index, which has had only one down year since 2006, has bucked the gains in the nation’s benchmark measure. And some of the biggest names in the gauge have accumulated double-digit losses five months into the year. READ MORE
Promoters use tepid market conditions to hike stake in group firms
A total of 205 large, mid-and small-cap firms saw their respective promoters hike stake in their group companies via open market purchases in the last financial year 2018 – 19 (FY19).
Among the large-caps, Tata Motors, Bajaj Auto and JSW Steel saw their promoters hike stake in the last financial year, Srikalahasthi Pipes, Nandan Denim, Bodal Chemicals, Waterbase, Trident, WPIL, Sangam (India) and Voltamp Transformers that comprise the S&P BSE Small-cap index saw their respective promoters up their stake in the range of 2 per cent to 4 per cent during FY19. READ MORE
Buzzing | Edelweiss Financials gains over 3%
NEWS ALERT | The Reserve Bank of New Zealand cuts official cash rate by 25 bps to 1.5%: Reuters
- Interest rate has been cut for the first time in two-and-a-half years.
- The central bank signaled a 50-50 chance of another round of easing.
- At the press conference after the decision, RBNZ Governor, Adrian Orr, flagged the ongoing US-China trade dispute as a major risk for the country's economy.
33 stocks hold positive trend despite three-day 300-pt fall in Nifty50
In the last two sessions, the Nifty 50 has slipped over 300 points, or 2.58 per cent to hit 11,400 levels. However, there are few stocks that continue to hold their upward trend or have seen minor losses. READ MORE
Anand Rathi on DFM Foods
We factor in 15%/23% CAGRs in revenue/earnings over FY19-21. We roll forward our target to FY21 and upgrade our recommendation to a Buy, with a higher target of Rs 361,based on 35x FY21e EPS. Risks: Keener competition, rise in input costs.
MARKET UPDATE | PSU bank stocks off lows
Prabhudas Lilladher on VIP Industries
We remain positive on VIP given market leadership (~50% revenue share) in the organized luggage industry, well-diversified product portfolio (six brands and multiple SKUs exceeding 1,500) and solid brand salience (brand-ex is ~5-7% of sales). We value the stock at 33x FY21E EPS in light of strong growth prospects (sales/PAT to grow at a CAGR of 21.8%/29.0% over FY19-21E) and the size of opportunity pie (transition towards organized market) VIP has at its disposal post GST. Maintain BUY with a TP of Rs564 (earlier Rs 579).
ICRA on road sector
The state-led road sector capex is expected to witness robust growth over next three years supported by several expressway projects launched/announced by the states of Maharashtra and Uttar Pradesh. In Maharashtra, the estimated spend in case of Nagpur-Mumbai expressway alone is Rs 35,000 crore over next three years in addition to proposed road improvement programme through hybrid annuity mode. Similarly, in UP, for Purvanchal and Ganga expressways together the estimated spend over next three years is around Rs 20,000 crore.
Supreme Industries’ (SI IN) plastic piping segment, which contributed ~57% to total sales in FY19, posted volume growth of 14.7% and value growth of 14% for the quarter. Government initiatives, such as affordable housing, effective implementation of RERA, Swacch Bharat Mission, AMRUT Yojana and other infrastructure-related activities gave a boost to the plastic piping segment. Packaging products was up +13.6% and consumer furniture was up +3.2%, further bolstering total volume growth.
Anand Rathi on Supreme
Last close: Rs 1,037
Target price: Rs 1,202
Supreme's Q4 PAT came below our estimates, with EBITDA/PAT down 30%/32% y/y, held back primarily by lowrevenue growth (up only 4% y/y) and margin contraction across divisions. Per company, the packaging-products margin has bottomed out and other divisions are also in a recovery mode. We cut our FY20e/21e earnings ~8% each year owing to lower revenue growth expected. Expecting recovery in margins (packaging products bottoming out, continued focus on value-added products, etc.), we now expect a 17% EPS CAGR over FY19-21. We maintain a Buy, with a lower target of `1,202 (25x FY21e EPS vs. 28x the FY14-19 mean). Growth across keysegments and margin recovery are key monitorables.
We lift our target price to Rs 500 (with implied upside of ~25%), implying 2.05x (2x earlier) FY21F book for the bank and Rs 115/share (Rs 105 earlier) of subsidiary value. With rising granularity of the balance sheet and visibility of +16% ROEs, we believe current valuation at 1.6x FY21F stress adjusted book is still undemanding. We maintain our Buy rating. ICICI remains one of our preferred sector picks.
BofA on liquidity
We continue to expect the money market to switch to reverse repo mode by end-May as cash demand from elections and the on-going harvest abates. After April 30 data, our liquidity model estimates that it will swing to surpluses of ~Rs80 billion by end-May and Rs 230 billion by June from a deficit of Rs 680 billion in April. We assume a RBI OMO purchase auction of Rs150 billion/ $2 billion in June atop Rs 250 billion/$3.5 billion in May and $5 billion 3-year FX swap auction in April
Essel Group shares under pressure; Zee Entertainment, Dish TV down over 6%
Stock price of the group’s flagship company ZEE slipped 7 per cent to Rs 343 during the intra-day trade, falling 21 per cent in past five trading days. The counter has seen huge trading volumes with a combined 12.3 million shares changing hands till 10:29 am. Relatively, on an average, less than 13 million shares were traded daily in past two weeks on the NSE and BSE. READ MORE
Buzzing | CG Power zooms over 10%
ICICI Securities on Mahindra CIE Automotive
We expect sales, EBITDA and PAT at MCI to grow at a CAGR of 7.7%, 10.4% and 15.1% respectively over CY18-20E, with attendant margin improvement in tow. MCI has demonstrated its turnaround capability in the past (CY18 margins at 13.1% vs. 8% in FY15) and continues to perform ahead of industry and its clients. The company’s healthy return ratios (~15% RoCE) and >10% CFO yield also provide valuation comfort. We value MCI at Rs 275 i.e. 8x EV/EBITDA on CY20E numbers and retain our BUY rating on the stock.
Elara Capital on Supreme Industries
Management has guided for volume growth of 8-10% and sales growth of 12-15% for FY20. Margin guidance was in the range of 13.5- 15.0%. We keep our sales estimates unchanged while cut our EBITDA estimates by 9.0% for FY20 and 8.0% for FY21 and lower our PAT estimates by 8.8% for FY20 and 6.9% for FY21. We do not see any shift in business fundamentals and bullish. We reiterate Buy with a new TP Rs 1,393 from Rs 1,514 based on 30x (unchanged) FY21E P/E
Jet Airways soars over 5%
NEWS ALERT | Jet Airways Crisis
- Jason Unsworth's Atmosphere Airlines submits bid for Jet, reports CNBC TV18, quoting sources.
- Unsworth submitted bis along with Naresh Goyal, My World Ventures, Future Trend Cap Redcliffe Cap, Mallhar Hospitality.
- Banking sources tell the channel, can't vouch for seriousness of the bids.
- EoI submitted by Jason's consortium cannot be considered in the current trend.
Nifty outlook by IIFL
Nifty finds support around 11,430, while 11,630 will act as resistance. Bank Nifty finds support around 29,000, while 29,500 will act as resistance on the upside.
Nifty indices at day's low
Anand Rathi on Bajaj Consumer Care
Last close: Rs 332
Target price: Rs 429
The company aims to double its market share in hair oils to 20% by FY24/25. Success would be critical but the company has increased its market share in the past. We retain our Buy rating and target price of Rs 429.
Emami Paper Mills trading higher ahead of Q4 nos
Neogen Chemicals makes strong debut, lists at 17% premium over issue price
Neogen Chemicals, one of India's leading manufacturers of bromine-based and lithium-based specialty chemicals, listed its shares at Rs 251 apiece on BSE, a premium of 16.74 against the issue price of Rs 215.
The initial public offer (IPO) of Neogen Chemicals, which ran between April 24 and April 26, received huge response from the investors as the issue was overall subscribed 41.18 times. The price band for the issue was Rs 212 to Rs 215 per share. READ MORE
Reliance Capital dips 5%
We'd rather look at buying portfolios than a firm: M&M Financial MD & CEO
It has been tough for non-banking finance companies (NBFCs) for a while now, and it is clear that only the well-run will survive the ongoing crisis in the sector. While the liquidity crunch continues to haunt them, Ramesh Iyer, managing director and chief executive officer of Mahindra & Mahindra Financial Services, feels the current fiscal could turn out to be marginally better. READ MORE
Cox & Kings slips over 5%
New Listing | Neogen Chem up 5%
Dabur slips over 2%
Nifty Media index down over 2%
- Zee Entertainment, Sun TV drag, fall over 3%
- INOX Leisure up 2%
Artemis Global Life Sc trades higher ahead of Q4 nos
Punjab National Bank up over 1%
Nifty Metal trades in green
DHFL gains over 2%
NEWS ALERT | Neogen Chem settles at Rs 251/share on BSE
- The company got listed today
- Issue price was Rs 215 apiece.
Vakrangee down over 1%
The company had announced alliance with Dish TV
VIP continues slide, stock falls over 2%
Vedanta slips over 3% on weak Q4 performance
Star Cement is trading over 1% lower
Titan falls nearly 1% ahead of Q4 results announcement
MOFSL on Bharti Airtel
BHARTI has multiple moving levers in place such as a rebound in India wireless business, fund raising plans and peaking out of capex – which should help prune the ballooned net debt and make it self-sufficient. We have factored in an Rs 250 billion rights issue and ~15% reduction in capex (with an upward bias) in FY20. This will reduce cash burn and net debt-to-EBITDA to Rs 77b and 3.5x in FY20 versus ~ Rs 200b and 4.3x, respectively, in FY19. Incrementally, the Africa IPO and the Bharti Infratel stake sale could drive additional deleveraging. The stock is attractively priced at 7x FY21E EBITDA. Maintain Buy with an SOTP-based target price of Rs 410.
BSE slips post Q4 results
Momentum Picks by ICICI Securities
Sectoral gainers and losers on NSE
Top gainers and losers on S&P BSE Sensex
At 09:16 am, the S&P BSE Sensex was trading 32 points or 0.08 per cent lower at 38,244 levels while the NSE's Nifty50 index was ruling at 11,448, down 50 points or 0.43 per cent.
Activist hedge fund, leadership shift leave imprint on Cognizant
Once considered a worthy competitor to the likes of Accenture and IBM, investors of Cognizant got a rude shock last week when the company guided its worst-ever revenue growth since inception. READ MORE
NEWS ALERT | China Trade Data
- Trade surplus at $13.84 billion
- April imports up 4% year-on-year
- April exports down 2.7% y-o-y
Market at pre-open
Market at pre-open
Rupee opens at 69.55 against Tuesday's close of 69.43.
Overseas funds making investments into India directly from home countries
Overseas funds investing in India from Mauritius and Singapore are either winding down or stopping fresh investments from the regions, in favour of home countries such as the US and the UK or even regions such as the Cayman Islands, Ireland, and Luxembourg. India had renegotiated its tax treaties with Mauritius and Singapore in 2016. READ MORE
NEWS ALERT | Japan's April Services PMI at 51.8: Reuters.
- Activity in Japan’s services sector expanded at a slightly slower pace in April than the previous month as growth in new business slowed.
- The index stayed above the 50 threshold that separates contraction from expansion for the 31th straight month. It was 52 in March.
Reject ArcelorMittal's Essar Steel bid as it misled courts: Prashant Ruia
In a fresh twist to the insolvency saga of Essar Steel India, the largest stakeholder of the company has approached the National Company Law Appellate Tribunal (NCLAT) with a plea that ArcelorMittal India’s bid should be rejected as it had hid crucial facts regarding its shareholding in firms that have since turned non-performing assets (NPAs). The NCLAT has sought ArcelorMittal’s response to the petition and fixed May 13 as the next date of hearing. READ MORE
Derivatives outlook by Adroit Securities
Bharti Airtel's ARPU rises 20%, Reliance Jio's slips 3% in March quarter
Bharti Airtel has performed well on the average revenue per user (ARPU) front in the fourth quarter ended March 31, 2019, as the figure improved 20 per cent sequentially while Jio’s ARPU declined 3 per cent during the same period. Airtel’s ARPU in Q3 had fallen 15.50 per cent year-on-year (YoY) to Rs 104 from Rs 123 in Q3FY18. READ MORE
Reliance Securities on Escorts
Last close: Rs 649
Target price: Rs 600
Escorts (ESC) has reported below par performance in 4QFY19 due to margin contraction and higher interest outgo. Its revenue, EBIDTA and adjusted PAT grew by 14% YoY (-1.4% QoQ), 9% YoY (-5% QoQ) and 8% YoY (-9% QoQ) to Rs16.3bn, Rs1.9bn and Rs1.2bn vs. our estimate of Rs16.6bn, Rs1.96bn and Rs1.3bn, respectively. Its EBIDTA margin fell by 47bps YoY/48bps QoQ to 11.6% (our estimate of 11.8%). Therefore, we maintain our REDUCE rating on Escorts with a revised Target Price of Rs600 (from Rs760 earlier).
High-single digit volume growth key for FMCG stocks to sustain valuation
A relatively optimistic volume outlook in key categories and a sturdy profitability improvement in the March 2019 quarter (fourth quarter, or Q4) boded well for the Marico stock — up about 6 per cent on Tuesday, when the Nifty FMCG (fast-moving consumer goods) index traded flat. READ MORE
Vedanta, Titan, Escorts, Vakrangee and Neogen Chemicals top stocks to watch
Here's a look at the top stocks that may trade actively in today's trade -
Earnings today: Around 43 companies including JK Paper, Dhanlaxmi Bank, Rain Industries, Titan and Tata Communications are slated to release their Q4 earnings today.
Vedanta: Vedanta on Tuesday reported a 45.5 per cent drop in fourth-quarter profit compared with the same period a year earlier, when it booked a hefty one-time gain. Revenue from operations came in at Rs 23,092 crore, compared with Rs 27,311 crore a year earlier.
Vakrangee: Vakrangee has announced an alliance with Dish TV India for distribution of subscription recharge and providing collection services for both its brands - DishTV and d2h.READ MORE
Nifty outlook by ICICI Securities
In the current scenario, as the Nifty has already corrected for the last three sessions, possibility of supportive efforts near the lower band of last six week’s consolidation (11,550) cannot be ruled out in a session or two. We expect prolonged consolidation to continue in the broader range of 11,850–11,550, going ahead. Meanwhile, volatility may remain elevated owing to trade war uncertainty while on the domestic front accelerating Q4FY19 earnings traction and fag end of General Election 2019, thereby stock specific action would remain in focus.
Nifty outlook by HDFC Securities
Nifty witnessed a sharp weakness today and closed the day lower. The crucial lower support of 11,550 levels, which was holding since last one month was broken on the down side and Nifty closed below it.
A long negative candle formed today, technically this could indicate a down side breakout of the support. Next lower levels to be watched at 11,400 in the short term