Last-hour selling drags Sensex lower by 324 points, Nifty ends below 11,500

Investors on Tuesday went on a last-hour selling spree to bring down the benchmark indices which ended with substantial losses for the second consecutive day. Bank stocks and industry heavyweights like Reliance Industries, ICICI Bank, ITC, Tata Motors and Indian Oil Corporation (IOC) dragged the indices down with the Nifty50 giving up 11,500 level.

The S&P BSE Sensex ended the day 324 points, or 0.84 per cent, lower at 38,277, with Tata Motors, ICICI Bank, Bharti Airtel, Reliance Industries, and Vedanta among the top losers. Only seven of the 30 constituents of the BSE ended the day with gains.

The broader Nifty50 lost over 200 points, or 0.87 per cent, to settle the day at 11,498. advance decline

Among sectoral indices, only Nifty IT ended in green. The Nifty Media index was the top loser, down 2.74 per cent while the Nifty PSU Bank index also slipped 2.2 per cent.

In the broader market, the S&P BSE MidCap index erased 144 points, or 0.98 per cent, at 14,523, while the S&P BSE SmallCap index ruled at 14,302, down 122 points, or 0.85 per cent.

BUZZING STOCKS

Shares of home-grown FMCG firm Marico ended the day 5.59 per cent higher at Rs 359 on the BSE after the company reported strong set of numbers for the fourth quarter (January-March) of the financial year 2018-19 (FY19). READ MORE

Shares of ICICI Bank slipped 3.77 per cent during the day at Rs 386.25, a day after the lender reported 5 per cent fall in net profit for the quarter ended March 2019 (Q4) to Rs 969 crore. The decline in profit was due to higher operating expenses and treasury income plunging to Rs 156 crore versus Rs 2,685 crore a year-ago padded with Rs 3,320 crore of profit from stake sale in ICICI Securities. READ MORE

Bharti Airtel ended the day with a loss of 2.8 per cent at Rs 323.85 on the NSE despite the surprise 29 per cent rise the company posted in March quarter (FY19Q4) net profit as exceptional income gains and Africa business helped offset losses in India mobile services operations. READ MORE



(With inputs from Reuters)


3:58 PM IST COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME REL. COMM. 2.05 0.09 4.59 23093194 RELIANCE POWER 6.05 -0.56 -8.47 12230864 PC JEWELLER 123.60 0.30 0.24 5135448 DEWAN HSG. FIN. 116.65 -16.30 -12.26 4111147 YES BANK 164.55 -1.75 -1.05 3364772 » More on Most Active Volume

3:57 PM IST COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME DEWAN HSG. FIN. 115.70 -17.25 -12.97 4104786 DISH TV 31.55 -3.35 -9.60 2086173 RELIANCE POWER 6.10 -0.51 -7.72 12219983 EVEREADY INDS. 99.85 -7.35 -6.86 41424 BOMBAY DYEING 121.20 -8.55 -6.59 289684 » More on Top Losers

3:56 PM IST

3:55 PM IST

3:55 PM IST

3:17 PM IST

2:53 PM IST - Net profit at Rs 121.3 crore - Revenue at Rs 1,631.6 crore - EBITDA at Rs 189.9 crore - EBITDA margin at 11.6% 

2:44 PM IST - DGCA may consider re-allocating airline's foreign routes after May 10 - A meeting, regarding the same, is expected this week to take final call on Jet's domestic slots. 

2:39 PM IST The ongoing tussle on trade between the United States (US) and China will dampen global growth and adversely impact corporate confidence and capex, says the latest Global Economics report by Morgan Stanley. READ MORE    

2:32 PM IST - Sets up asset aggregation platform focused on renewables. -They will co-sponsor a renewable energy focussed InvIT with a targetted initial corpus of $600 million

LIVE UPDATES

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
REL. COMM. 2.05 0.09 4.59 23093194
RELIANCE POWER 6.05 -0.56 -8.47 12230864
PC JEWELLER 123.60 0.30 0.24 5135448
DEWAN HSG. FIN. 116.65 -16.30 -12.26 4111147
YES BANK 164.55 -1.75 -1.05 3364772
» More on Most Active Volume

Top losers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
DEWAN HSG. FIN. 115.70 -17.25 -12.97 4104786
DISH TV 31.55 -3.35 -9.60 2086173
RELIANCE POWER 6.10 -0.51 -7.72 12219983
EVEREADY INDS. 99.85 -7.35 -6.86 41424
BOMBAY DYEING 121.20 -8.55 -6.59 289684
» More on Top Losers

Heatmap: S&P BSE Sensex


Nifty sectoral indices at close


Market at close


Nifty PSU Bank index is trading 2.2% lower


NEWS ALERT | Escorts Q4 result

- Net profit at Rs 121.3 crore

- Revenue at Rs 1,631.6 crore

- EBITDA at Rs 189.9 crore

- EBITDA margin at 11.6% 


NEWS ALERT | Govt to consider re-allocation of Jet Airways' foreign routes: Agencies

- DGCA may consider re-allocating airline's foreign routes after May 10

- A meeting, regarding the same, is expected this week to take final call on Jet's domestic slots. 

US-China trade tension to dent global growth, India GDP to slow too: Report

The ongoing tussle on trade between the United States (US) and China will dampen global growth and adversely impact corporate confidence and capex, says the latest Global Economics report by Morgan Stanley. READ MORE
 
 

NEWS ALERT | Piramal Enterprises signs MoU with Canada Pension Plan Investment Board, reports CNBC TV18

- Sets up asset aggregation platform focused on renewables.

-They will co-sponsor a renewable energy focussed InvIT with a targetted initial corpus of $600 million

Tata Motors slips almost 2.5%


MARKET CHECK


Zee Entertainment slips over 7%


NEWS ALERT | VIP Industries Q4 result

- Consolidated. net profit at Rs 25 crore vs Rs 35 crore, down 28%  y-o-y

- Cons. EBITDA at Rs 39.6 crore vs Rs 54.3 crore, down 27% y-o-y

- EBITDA margin at 9.1 per cent vs 15% last year

- Revenue at Rs 435 crore vs Rs 362.6 crore, up 20% y-o-y

VIP Industries slides 3% after Q4 results


NEWS ALERT | Kaya Q4 result

- Loss expands to Rs 13 cr from Rs 8 crore

- Revenue up 6.8 per cent higher at Rs 104 crore 

NEWS ALERT | Sanofi India Q4 result

- Net profit up 12.6 per cent at Rs 93 cr, y-o-y

- Revenue up 16 per cent at Rs 717.3 cr,y-o-y

- EBITDA jumps 14.4 per cent to Rs 154 cr, y-o-y

- EBITDA margin slips to 21.4% Vs 22.1% in the same quarter last year

NEWS ALERT | RBI planning one more forex swap, OMO of Rs 500 mn: Reuters

- The RBI will probably conduct at least one more swap of rupees for dollars after the general election as an effort to support economic growth.



NEWS ALERT | Royal Enfield recalls 7,000 units of Bulltet to rectify faulty breaks: news agency PTI

- Units recalled are the ones manufactured b/w March 20 - April 30, 2019. 

Despite big 5G plans, debt-laden Airtel wobbling in war with Ambani's Jio

In a war for the control of India’s billion-plus mobile-services market, tycoon Sunil Mittal seems to be floundering in the face of a juggernaut unleashed by Mukesh Ambani.
 
For at least a fourth quarter in a row, Mittal’s Bharti Airtel Ltd. shored up its profits with one-time gains, masking headwinds posed by upstart Reliance Jio Infocomm Ltd. Jio’s roll-out, after its 2016 debut, has knocked Airtel from its perch in a consolidation that shrank the industry to three players from about a dozen four years ago. READ MORE

DHFL slides over 7%


NEWS ALERT | Jyothy Labs Q4 results

- Net Profit at Rs 67 crore

- Revenue at Rs 504.3 crore

- EBITDA at Rs 82.6 crore

- EBITDA Margin at 16.4 per cent.



16 companies where operating profit has risen for four consecutive quarters

The fourth quarter results season for financial year 2018 – 19 (Q4FY19) has been a mixed bag. While on one hand companies such as Hindustan Unilever (HUL) Hindustan Unilever, the country’s largest consumer goods company, reported its lowest volume growth in six quarters during the recently concluded quarter on the back of moderation in rural demand, Tata Consultancy Services (TCS) reported better-than-expected 2.4 per cent growth in constant currency (CC) revenue in Q4FY19. READ MORE 

NEWS ALERT | Fitch Ratings revises outlook on Lodha Developers to "negative" from "stable"

 Fitch has affirmed the long-term issuer default rating at 'B'

GMR arm to raise $350 million via bonds for Delhi airport expansion

Delhi International Airport Ltd, a GMR group company, plans to raise $350 million through 10 year senior secured bonds for the airport expansion programme and Moody's has assigned a Ba2 rating for the proposed bonds. READ MORE

Anand Rathi on Blue Sar

Last close: Rs 697

Target Price: Rs 947

Recommendation: Buy 


Blue Star has again showcased its robust and agile business model, developed over time. Its rising RoCE in challenging times, from 20.5% in FY18 to 24.9% in FY19, depicting its ability to deliver superior returns in FY20/FY21. We expect the RoCE to rise to 29.9% and 34.7% respectively, aided by a supportive macro environment. We initiate coverage on the stock, with a target of `947 (30x FY21e EPS of `31.6).

 

Reliance Securities on TCS

"We expect the IT major to clock double digit growth in FY20E. High payouts (100% of FCF) in the form of share buybacks, plus improving business visibility will ensure the stock remains at elevated valuations. We have a BUY rating on TCS with a TP of Rs 2,300."  

IOL Chemicals up over 9%


Manpasand Beverages surges 13%


NMDC is trading over 2% higher


Balrampur Chini Mills tumbles 3%


Vedanta gains over 1% ahead of Q4 results; here's what brokerages expect

Shares of Vedanta rallied over 1 per cent in the intra-day trade on Tuesday to Rs 170.5 apiece on the National Stock Exchange (NSE). The metals and mining major is due to declare its Q4 numbers for fiscal year 2018-19 later in the day. At 11.05 am, the stock was trading 1.2 per cent higher at Rs 169 while the Nifty metal index was up 1.09 per cent. On the other hand, the benchmark Nifty50 index was trading 0.02 per cent lower at 11,596 levels. A total of 52,03,257 shares changed hands on NSE at the time of writing this report. READ MORE



Buzzing | Shyam Century Ferrous zooms ahead of Q4 nos


Buzzing | Manpasand Beverages gains over 8%


Reliance Securities on ICICI Bank

We believe that the Bank is approaching the end of recognition of stressed loan cycle, which along with improving PCR clearly indicates sharp moderation in credit cost, going forward. Further, the bank’s strong liability franchise with industry best CASA level and healthy capitalisation add to our comfort. Looking ahead, we expect the bank to deliver sustained improvement across operating metrics led by dwindling headwinds on asset quality front and improving balance sheet.Trimming our earnings estimates to factor slightly higher provisions, we maintain our BUY recommendation on the stock with an SOTP-based Target Price of Rs 460 (revised from Rs 470 earlier) based on 1.9x FY21E adjusted PBV and the value of its subsidiaries, implying a FY21 P/ABV of 2.5x.

Sectoral trends on NSE at this hour


BSE Sensex gainers and losers


Market check


Market check


NEWS ALERT | BMW reports C1FY19 result

- Auto major reports 76 per cent fall in profit before tax to €762 million, revenue down 1% to €22.46 Billion YoY

Kotak Securities on Blue Star

Target Price: Rs 713

Last Close: Rs 709.5

Recommendation: Reduce


- The Unitary Cooling segment reported margin gain of 370 bps on a y-o-y basis on account of 1) lower expenses on sales promotion 2) removal/reduction in discounts on products as inventory had normalized by the end of Q3FY19 itself  3) higher realizations on room ACs on account of increase in sales of Inverter ACs and 4) Price hikes taken in earlier quarters

- Order book at the end of Q4FY19 stands at Rs 24.3 bn, up 20.5% on a y-o-y basis.

Kotak Securities on ICICI Bank

Last close: Rs 401

Target price: Rs 460

Recommendation: Buy


ICICI Bank reported 5% decline in earnings though core operating profits grew 26% yoy on the back of healthy loan growth (15% yoy), strong revival in NII growth (27% yoy) and decline in provisions (17% yoy). Asset quality concerns are abating significantly and the recovery in business momentum should aid RoA/RoE recovery faster than guided by the management, in our view. We maintain BUY rating, our top pick, with fair value at Rs 460 (from Rs 450 earlier).

Bharti Airtel hits seven-month high after surprise Q4 profit; stock up 2%

Shares of Bharti Airtel rose 2.2 per cent to Rs 340.85, its highest level in seven months, in early morning trade on the NSE after the company reported a surprise 29 per cent surge in March quarter (FY19Q4) net profit as exceptional income gains and Africa business helped offset losses in India mobile services operations. READ MORE



ICICI Bank trades flat after reporting 5% fall in Q4 profit

Shares of ICICI Bank were trading flat in the morning trade on Tuesday, a day after the lender reported 5 per cent fall in net profit for the quarter ended March 2019 (Q4) to Rs 969 crore. The decline in profit was due to higher operating expenses and treasury income plunging to Rs 156 crore versus Rs 2,685 crore a year-ago padded with Rs 3,320 crore of profit from stake sale in ICICI Securities. READ MORE



Orient Cement climbs almost 7%


HUL, ICICI Bank, Bharti Airtel: Trading strategies for result-driven stocks

Bharti Airtel Ltd (BHARTIARTL): The weekly chart suggests that the stock is hovering around 200 DMA located at Rs 327. A strong close above the same may lead to a next level of upside towards Rs 350 and Rs 360. From a medium-term perspective, there is trend line support of Rs 270 and Rs 290. READ MORE

Nirmal Bang on ICICI Bank

Last close: Rs 401

Target price: Rs 483 

Recommendation: BUY


ICICI Bank (IBL) reported its 4QFY19 results with the key pointers being: (1) Gross slippage was Rs 35.47bn in 4QFY19 compared with an 8-quarter average of Rs 80.46bn till 4QFY18, indicating IBL continues to see a lower slippage regime. (2) Global NIM expanded 32 bps QoQ to 3.72% driven by a 29 bps expansion in yield on advances (3) Core fee income growth was 15% YoY driven by retail fees whereas higher operating expenses growth at 19.6% YoY was driven by retiral provisions (See comprehensive conference call takeaways on page 2 for significant incremental colour). Per se, on the key P&L items, IBL posted NII growth of 27% YoY at Rs76,201mn, PPOP decline of 17% YoY at Rs62,334mn and PAT decline of 5% YoY at Rs9,691mn. We have revised our estimates for FY20/FY21
and retained Buy rating on IBL, revising our target price to Rs483 (from Rs 462 earlier), valuing the stock at 1.6x FY21E standalone P/BV and ascribing a value of Rs 142 for subsidiaries. 

Gujarat Borosil down over 1% ahead of results


MARKET CHECK


Chemfab Alkalis down over 3% ahead of result


Stock picks by Axis Securities


Gujarat Gas climbs over 3%


Opening gainers on S&P BSE Sensex

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
MARICO 361.90 21.90 6.44 164432
STERLITE TECH. 202.70 11.35 5.93 124658
PC JEWELLER 129.60 6.30 5.11 947717
DILIP BUILDCON 484.75 23.05 4.99 14336
REL. COMM. 2.05 0.09 4.59 22874765
» More on Top Gainers

Navin Flourine International slumps over 2%

The company's net profit stood at Rs 35.91 crore in March 2019, down 8.59 per cent from Rs 39.28 crore in March 2018.
 

Sterlite Technology rallies 5%


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
REL. COMM. 2.00 0.04 2.04 14495034
RELIANCE POWER 6.65 0.04 0.61 595805
RELIANCE INDS. 1380.45 -4.40 -0.32 533273
PC JEWELLER 127.55 4.25 3.45 502774
VODAFONE IDEA 16.45 0.05 0.30 272496
» More on Most Active Volume

Mcleod Russel India tanks 7%


Nifty FMCG index turns green supported by Marico

- Shares of Marico up over 6%, Britannia gains over 1% 

OMCs under pressure despite fall in oil prices


Dhanlaxmi Bank gains over 1%


Metal stocks gain, Nifty metal up over 1%


YES Bank inches 1.2% higher


Thirumalai Chemicals down nearly 4%


CG Power falls over 8%

The company has said its deal with Budapest-based companies to sell its loss-making Hungary business, which was pending for nearly two years, has been terminated.
 
 

Gujarat Gas sheds over 1%


Bharti Airtel up over 1% on positive Q4 nos.


Marico opens 4% higher on strong Q4 nos


Sectoral trends on NSE


Gainers and losers of the day on S&P BSE Sensex


Market at open


Market at open


Kotak Securities on Radico Khaitan

Last Close: Rs 362

Target price: Rs 440

Recommendation: Buy


The net revenue for the quarter grew by 6.1% yoy to Rs 5.1 bn and was ahead of our estimates, driven by 6.2% yoy growth in IMFL volume which was at 5.1 mn cases. Volume in Prestige and above category grew at 22.1% yoy while Regular category grew at a slower pace of 1.3% yoy. Volume growth in regular category were slower due to company reducing focus on low price category.
 
EBITDA margin at 14% was below our estimates of 14.8% due to 24% yoy increase in sales and distribution expenses. Gross margin improved by 200 bps on yoy despite rise in ENA and glass bottle prices due to better product mix.

Reliance Securities on ICICI Bank

ICICI Bank

Last close: Rs 401

Target price: Rs 460

Recommendation: Buy


ICICI Bank has reported healthy operating performance in 4QFY19 with NII and core pre-provision operating profit (PPOP) growing by 27% and 49%, respectively, exceeding our estimates. However, its net profit at Rs9.7bn missed our estimate owing to elevated provisioning on ageing of NPA accounts and on recognition of several big-ticket exposures as NPAs (including IL&FS, Jet Airways and a sugar sector exposure). 

Market at pre-open


Market at pre-open


Momentum picks by ICICI Securities


Rupee opening

Rupee opens higher at 69.37/$ vs Monday's close of 69.40 against the US dollar

Cognizant may cut jobs, mostly in India; mid-level staff to be worst hit

US-based IT services company Cognizant is likely to opt for more job cuts this time as the firm’s headcount additions were not in sync with the revenue growth in the past two quarters.
 
The company, which has guided for the lowest growth in its history for this calendar year, had given voluntary separation package to around 400 senior executives in 2017 as part of its cost optimisation measures. READ MORE

Lighthouse closes capital raise for Fund III at Rs 1,750 crore

Lighthouse Funds, a private equity firm focused on growth investments in India’s consumer sector, announced the close of its final fund raise for Fund III at $250 million, or Rs 1,750 crore. READ MORE

NEWS ALERT | Godrej Properties to CNBC TV18

- Liquidity crunch persists in real estate market

- Smaller players going for bankruptcy. 

RBI's voluntary retention route sees muted response from foreign investors

The Reserve Bank of India’s voluntary retention route (VRR) has seen a muted response from foreign portfolio investors (FPIs). The RBI threw open the VRR to investors last month in a bid to attract long-term overseas money into the debt market while ensuring operational flexibility to FPIs to manage their investments. READ MORE

Marico Q4 net zooms two-folds to Rs 405 cr; revenue rises to Rs 1,609 cr

Homegrown FMCG major Marico Monday posted over two-fold increase in consolidated net profit at Rs 405 crore for the fourth quarter of 2018-19, aided by one-time write-back of tax provisions amounting to Rs 188 crore.
 
The company had reported a net profit of Rs 183 crore in the corresponding period of fiscal 2017-18. READ MORE

MCX's gold options turnover hits year's low on volatility, contract sizes

The turnover from options contracts on the Multi Commodity Exchange of India (MCX) has declined to hit a one-year, with the daily average at Rs 434 crore in April 2019, compared with Rs 727 crore in May 2018. The turnover was lower even on sequential basis, with the March 2019 figure coming in at Rs 591 crore. READ MORE

Top stocks and sectors to bet on ahead of general election outcome

Global developments and corporate results back home are the two key factors that will keep the markets choppy till the election result is known. On May 6, the volatility index, India VIX, for instance, rallied 8.3 per cent intra-day midst poll uncertainty and accelerating global trade tensions.

With only two more rounds out voting of a total of seven left (May 12 and May 19) before the election outcome is known on May 23, should you exit the markets or stay put? READ MORE


Nifty outlook by Motilal Oswal

Nifty index opened gap down and remained under pressure for most part of the session by drifting towards 11570 zones. It formed a Bearish Candle on daily scale but managed to respect its major support of 11550 zones. Index has got stuck in between 11550 to 11800-11850 zones from last twenty three trading sessions where declines are being bought but follow up is missing at higher zones.Now if it fails to hold 11550 zones then short term trend could be under pressure to test the next support of 11333 zones while hurdles are seen at 11666 then 11761 levels.

Pick of the Week by HDFC Securities

Maintain Buy on GE Power India Ltd
 
(CMP Rs 892, Add on dips between Rs 788- Rs 794, TP Rs 1004- 1068, Time Horizon 3- 4 quarters)

 

Margin trading or positional trades: Which style suits you best?

Most of us identify trading with the short term buying and selling of securities with the intent of making profits. Of course, trading has to be done with finesse, insights and with a lot of discipline. Of these characteristics, it is discipline that matters the most.

However, trading itself has a lot of sub components. There are different types of trading styles that traders adopt and each has its own unique features and skill sets required. Here are some very common styles of trading that traders generally follow. READ MORE

Emerging market exchange-traded funds suffer outflows led by China

Investors withdrew money from exchange-traded funds (ETFs) that buy emerging market (EM) stocks and bonds last week.
 
Outflows from US-listed emerging market ETFs that invest across developing nations as well as those that target specific countries totalled $12.3 million in the week ended May 3, compared with gains of $57.6 million in the previous week, according to data compiled by Bloomberg. READ MORE



Today's picks: From Sun Pharma to Tata Motors, hot stocks to buy on Tuesday

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 11,625. READ MORE

Bharti Airtel, Vedanta, ICICI Bank, Gujarat Gas among top stocks to watch

Here's a look at the top stocks that are expected to trade actively in today's session -
 
Bharti Airtel: Bharti Airtel posted a 29 per cent jump in net profit to Rs 107 crore for the quarter ended March 2019 even as the Street had anticipated a loss in the range of Rs 700 crore. The company said the jump was mainly due to gains from exceptional items.
 
ICICI Bank: The private lender saw a 5 per cent fall in net profit for the quarter ended March 2019 (Q4) to Rs 969 crore. This was due to higher operating expenses and treasury income plunging to Rs 156 crore versus Rs 2,685 crore a year-ago padded with Rs 3,320 crore of profit from stake sale in ICICI Securities.
 
Earnings today: As many as 33 companies are slated to release their Q4 results today. Prominent among them include Vedanta, ABB, Ceat and Escorts. READ MORE 

Top trading ideas by Anand Rathi: Buy Raymond, Bharti Infratel; sell USL

UNITED SPIRITS: SELL
 
TARGET: Rs 495
 
STOP LOSS: Rs 540
 
The stock has provided a breakdown from the symmetrical triangular pattern on the daily charts with a sell crossover in its daily as well as weekly momentum indicator. The overall trend seems to have reversed from up to down; hence, we recommend selling it for the target of Rs 495. READ MORE

Bulk deal on NSE as on Monday

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


Rupee check

Source: Bloomberg


SGX Nifty

At 7:47 am, SGX Nifty was up 36 points at 11,692.5 levels.

Oil check

At 7:45 am, Brent crude futures were trading at $71.16 a barrel. 


Asian Markets check

Source: Reuters


Wall Street check

Source: Reuters


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