Sensex up 191 points, Nifty ends above 10,700 on global cues
30 April 2018
3:30 pm Market Closing: Benchmark indices closed higher following positive global cues and the correction in crude oil prices.
The 30-share BSE Sensex was up 190.66 points at 35,160.36 and the 50-share NSE Nifty gained 47.10 points at 10,739.40.
About 1,397 shares advanced against 1,262 declining shares on the BSE.
Nifty Midcap was up 0.8 percent.
Repco Home Finance, DHFL, Marico, Vijaya Bank, Mishra Dhatu, Balrampur Chini, Dhampur Sugar, CG Power, Indiabulls Real Estate, Indiabulls Ventures, Bombay Dyeing and Jet Airways gained up to 8 percent.
Can Fin Homes, InterGlobe Aviation, PC Jeweller, Minda Corporation, UPL, IDBI Bank and HDIL fell up to 19 percent.
3:28 pm Buzzing: PC Jeweller fell more than 48 percent from its highs despite the news of share buyback.
The stock gained nearly 18 percent in morning after the company said it would consider share buyback along with March quarter earnings in next month, but it crashed 20 percent in second half of session on profit booking.
3:22 pm HDFC Provisions: Provisions and contingencies in March quarter shot up 89.5 percent sequentially to Rs 180 crore and the year-on-year increase was 21.6 percent due to additional provisions.
"The Corporation has made additional provision of Rs 80 crore to shore up the provision & contingencies account and thereby recognise provisions towards specific loans against future risks," HDFC said in its filing.
3:13 pm Earnings Reaction: HDFC gained nearly 2 percent after reporting 39 percent rise in profit at Rs 2,846.22 cr on lower tax cost and gains on sale of stake in subsidiaries in HDFC Realty & HDFC Developers
The housing finance company has reported profit on sale of investment of Rs 294.31 crore for the quarter following entire stake sale in subsidiaries HDFC Realty and HDFC Developers to Quikr India. Profit on sale of investments during the year-ago period was at Rs 48.62 crore.
Tax cost declined 25 percent year-on-year to Rs 671 crore for the quarter ended March 2018.
Net interest income, the difference between interest earned and interest expended, grew by 4 percent to Rs 3,249.6 crore compared to Rs 3,122.6 crore in same period last year.
3:06 pm Earnings: Rane Madras has reported profit at Rs 16.5 crore for the quarter ended March 2018 against Rs 7 crore in same period last year.
Revenue from operations grew by 29.5 percent to Rs 348 crore from Rs 268.7 crore YoY while operating profit increaesd 52.6 percent to Rs 41.6 crore and margin expanded 190 basis points to 12 percent YoY.
3:01 pm Strike Ends: Kitchen appliances firm TTK Prestige said workers at its Roorkee plant in Uttarakhand, who had gone on a strike, have resumed work post a long-term settlement agreement.
"The permanent workmen who had gone on strike have returned to work. A long-term settlement has been agreed upon and being signed with the permanent workmen with improved productivity norms," TTK Prestige said in a BSE filing.
On April 6, TTK Prestige informed workers at its Roorkee plant had gone on a strike.
2:49 pm Market Update: The market continued to trade higher, following positive global cues and correction in crude oil prices.
All sectoral indices were in the green, with FMCG, IT, PSU Bank and Realty indices rising over a percent each.
Brent crude oil futures fell over a percent after rise in US rig count.
The 30-share BSE Sensex was up 176.07 points at 35,145.77 and the 50-share NSE Nifty gained 41.70 points at 10,734.
2:42 pm Earnings Reaction: Medical devices maker Opto Circuits share price was locked at 10 percent upper circuit after it reported profit at Rs 6.1 crore for January-March quarter against loss of Rs 21.5 crore in same period last year.
Revenue during the quarter jumped to Rs 24.6 crore from Rs 9.6 crore in year-ago.
2:35 pm Rupee Outlook: Emkay Research said analysis reveals two important inferences. First, INR/USD movement demonstrates rising inflexibility post the taper tantrum in 2013, justifying RBI's preference for accumulation of Fx reserves. Second, India's excess Fx reserves swelled to a high of USD 110 billion in early 2016. These two factors have created positive market conditions, including a sharp decline in forward premium and lower interest rates.
But, these variables are reversing now. Importantly, while the total reserves at USD 400 billion are at a peak, excess reserves have declined sharply to USD 9 billion. Hence, there is a possibility of India 10-year G-Sec yield breaching our estimated fair value of 8 percent. Given the backdrop of re-emergence of twin deficits and receding global liquidity, we maintain our INR/USD target at 68-70 by the end of FY19.
2:25 pm Earnings: Dewan Housing Finance Corporation (DHFL) has reported a 25.8 percent growth year-on-year in net profit at Rs 312.4 crore for the quarter ended March 2018, against adjusted profit of Rs 248.3 crore in year-ago.
Revenue from operations during the quarter grew by 18 percent to Rs 2,802 crore from Rs 2,375.4 crore in corresponding period of last fiscal.
Asset quality was stable, with gross non-performing assets unchanged at 0.96 percent on sequential basis.
The housing finance company showed asset management growth at 9.7 percent sequentially and 32.9 percent year-on-year for the quarter ended March 2018 while disbursement growth was at Rs 45.4 percent QoQ and 81.3 percent YoY.
2:15 pm Medium term impact of detente between the two Koreas on JPY and Indian companies:
Ajay Bodke, CEO & Chief Portfolio Manager PMS, Prabhudas Lilladher said the just concluded historic summit between the Presidents of two Koreas has rekindled global hopes of a lasting détente. If a clearly agreed path between the two sides leads to a signing of an armistice and eventual denuclearisation of the Korean peninsula, it has the potential to increase risk appetite and will be positive for risk assets.
During times of heightened geopolitical & security tensions global investors tend to rush to buy safe-haven assets like JPY leading to strengthening of JPY and creating headwinds for an export-dependent economy like Japan.
A positive fallout of the rapprochement in the Korean Peninsula and resulting 'Peace Dividend' can lead to weakening of Japanese Yen (JYP) as global risk appetite increases.
Indian companies (like Maruti Suzuki ) that have large imports or royalty payments denominated in JPY as well those who have borrowed in JPY will benefit from such an eventual weakening. Conversely, exporters to Japan (for instance some Indian pharmaceutical & IT companies) will be negatively impacted with such a weakening of JPY
2:01 pm Earnings: Kotak Mahindra Bank share price gained 2 percent on stable earnings and improvement in asset quality for the quarter ended March 2018.
Profit grew by 15 percent year-on-year to Rs 1,124 crore and net interest income increased 19.4 percent to Rs 2,580 crore in Q4FY18, with loan growth of 24.7 percent YoY.
Gross non-performing assets as a percentage of advances declined to 2.22 percent from 2.31 percent and net NPAs fell to 0.98 percent from 1.09 percent on sequential basis.
In absolute terms, gross NPAs for the quarter were up 2.96 percent at Rs 3,825 crore and net NPAs were also up 3.6 percent at Rs 1,665 crore compared to previous quarter.
1:50 pm Market Update: The market continued to trade higher in afternoon, following positive global cues and after the Reserve Bank of India liberalised ECB policy.
The Nifty was hovering around 10,750 levels while all sectoral indices were in green, with FMCG, IT, PSU Bank and Realty indices rising over a percent each.
Kotak Mahindra Bank and HDFC gained 1 percent each ahead of quarterly earnings.
The 30-share BSE Sensex was up 182.48 points at 35,152.18 and the 50-share NSE Nifty rose 45.60 points to 10,737.90.
1:20 pm Crude Update: Oil prices dipped after a rising rig count in the United States pointed to higher production there, but markets held near their highest in over three years and remained set for a second straight month of gains.
Oil prices were supported by supply concerns amid prospects that the United States could reimpose sanctions on Iran, while OPEC-led producers continue to withhold output.
Brent crude futures, the international benchmark, dipped 1.33 percent, to USD 73.65 a barrel. Prices climbed as high as USD 75.47 last week, levels not seen since November, 2014.
US West Texas Intermediate (WTI) crude futures were at USD 67.35 a barrel, down 1.10 percent, from their last settlement, reports Reuters.
1:05 pm Management Interview: Biotechnology major Biocon has said biologics and research services will continue to be the main drivers of growth for the company in the current fiscal year.
The biologics and research services businesses of the company grew by 47 percent and 45 percent, respectively, in the fourth quarter of the fiscal year 2018.
The firm, which crossed a key milestone in the fourth quarter with its insulin Glargine receiving regulatory approvals in the developed markets of Europe and Australia and biosimilar Trastuzumab getting approved in Turkey, is also expecting further biosimilar approvals going forward.
"Prospects for FY19 look exciting with growth in biologics segment led by developed and emerging markets and Syngene continuing to deliver a strong performance," Biocon Chairperson and Managing Director Kiran Mazumdar-Shaw told PTI.
12:56 pm Buzzing: Shares of Dilip Buildcon rose nearly 2 percent intraday as company signed concession agreement with NHAI.
The company's wholly owned subsidiary DBL Gorhar Khairatunda Highways has executed the concession agreement with the National Highways Authority of India (Ministry of Road Transport and Highways).
The project includes six laning of Gorhar to Khairatunda section of NH-2 in the state of Jharkhand under NHDP Phase-V on hybrid annuity mode.
The construction period is 24 months and operation period is 15 years from COD.
12:51 pm Market Update: The market continued to trade higher, following positive lead from Asian stocks and RBI liberalises ECB policy.
The Sensex was up more than 200 points and the Nifty was hovering around 10,750 levels, backed by banking & financials, FMCG, technology, metals stocks.
The consistent selling in Reliance Industries, Axis Bank and ICICI Bank capped market gains.
Yes Bank rallied 4 percent and TCS gained 2.7 percent.
12:41 pm Europe Update: European equities start the last trading day of the month on a negative note as investors digest merger news and focus on earnings.
The pan-European Stoxx 600 was 0.2 percent lower with most sectors trading in negative territory, reports CNBC.
12:31 pm Buzzing: Automobile Corporation of Goa share price fell 7 percent after Q4FY18 revenue slipped 19 percent year-on-year to Rs 112 crore and profit declined 67 percent to Rs 1.5 crore YoY.
12:22 pm Earnings: Prakash Industries has reported more than four-fold jump year-on-year in profit at Rs 152.1 crore for the quarter ended March 2018.
Profit in same quarter last fiscal was at Rs 34.3 crore.
Revenue from operations grew by 33.6 percent to Rs 838.6 crore for the quarter ended March 2018, compared to Rs 627.7 crore in corresponding period last year.
Operating income jumped 51.3 percent year-on-year to Rs 132 crore from Rs 87.2 crore and margin expanded to 15.7 percent from 13.9 percent. The sock rallied more than 6 percent.
12:12 pm Asia Update: Asian shares extended gains as tensions in the Korean Peninsula eased and first-quarter earnings shone, although some investors were cautious about the outlook amid the backdrop of a simmering US-China trade dispute.
Spread-betters pointed to a strong start for European shares with FTSE futures up 0.2 percent. E-Minis for the S&P 500 gained 0.3 percent while Dow futures added 0.3 percent.
MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1 percent, adding to a similar rise on Friday. The index is now poised for a modest rise this month after two consecutive losses.
South Korea's KOSPI index jumped 0.85 percent and is set to end April more than 2.5 percent higher. Hong Kong's Hang Seng index climbed 1.5 percent, Australia's benchmark index rose 0.5 percent, reports Reuters.
12:02 pm Maruti in focus: Maruti Suzuki India (MSI) plans to go full throttle to develop various kinds of alternate technologies, including CNG powered cars and hybrid vehicles, and not just electric vehicles, a top company official said .
The carmaker, which already has a market share of 50 percent in the domestic passenger vehicle segment, is keen to partner government or oil companies in order to push for CNG powered vehicles in the country.
"We are going to try and push this acceleration in use of CNG, hybrid and other alternate technologies. We are going to push all technologies, and not limit ourselves to one technology," MSI Chairman RC Bhargava said.
He said the company wants to help reduce oil import and air pollution and that its view is similar to that of the government.
11:47 am Market Update: The market continued to trade higher, with the Sensex rising around 200 points on HDFC twin, FMCG and technology stocks support. However, selling pressure in Reliance Industries and Axis Bank capped gains.
The broader markets outperformed frontliners, with the Nifty Midcap index rising more than half a percent.
All sectoral indices were in the green, with the Nifty IT, Metal and PSU Bank gaining more than a percent.
The 30-share BSE Sensex was up 206.77 points at 35,176.47 and the 50-share NSE Nifty rose 57.60 points to 10,749.90.
11:41 am Market Outlook: "We believe markets would take cue from ongoing Q4FY18 earnings season, rupee movement, metals prices, global cues especially on US Bond yields, changes in crude oil prices, interest rate rate trajectory domestically and onset on monsoons," Akash Jain, Vice President - Equity Research at Ajcon Global said.
Domestic bourses would remain volatile on newsflow regarding state elections in Karnataka, Madhya Pradesh, Chattisgarh. Assembly election outcome will have a huge impact on domestic bourses.
11:06 am Buzzing: Shares of Meghmani Organics gained 3.6 percent intraday as company acquired 24.97 percent equity stake in Meghmani Finechem.
The company’s wholly-owned subsidiary Meghmani Agrochemicals (MAPL) gave successful exit to International Finance Corporation (IFC) by acquiring 24.97 percent equity stake held by IFC in Meghmani Finechem.
The total consideration paid for the said acquisition is Rs 2,212 million.
10:57 am Results Date: L&T Infotech said a meeting of the board of directors will be held on May 23 to consider, approve and take on record, the audited standalone and consolidated financial results for the quarter and year ended March 31, 2018 and to consider and recommend final dividend for the financial year 2017-18, if any.
10:46 am Market Update: Benchmark indices remained strong in trade, with the Sensex rising 205.39 points to 35,175.09 and the Nifty climbing 54.70 points to 10,747.
HDFC twins, FMCG and technology stocks continued to support the market while selling pressure in Reliance Industries (down 2.9 percent), Axis Bank (3.81 percent) and ICICI Bank (0.3 percent) capped gains.
About two shares advanced for every share falling on the BSE.
10:35 am Buzzing: Shares of Jagran Prakashan gained 4.6 percent intraday as company approved buyback of shares.
The company at its meeting held on April 27, approved a buyback of upto 1.5 crore fully paid-up shares of face value Rs 2 each representing 4.82 percent of the total outstanding equity shares of the company, for an aggregate amount of Rs 292.5 crore.
The buyback to be done on proportionate basis through the tender offer route.
10:20 am L&T synchronises Power Plant Unit: Larsen & Toubro has successfully synchronised the Unit-3 of the state-of-the-art 2x660 MW Shree Singaji Thermal Power Plant in Madhya Pradesh in record time of 40 months for indigenously built power plants in India.
L&T’s scope of work includes design, engineering, supply, installation and
commissioning of Units 3 & 4 (Stage-II) of the coal-fired power plant on a turnkey basis. The EPC contract was awarded to L&T on December 31, 2014.
10:10 am Market Update: Benchmark indices continued to trade higher despite more than 3 percent correction in Reliance Industries and Axis Bank.
The 30-share BSE Sensex was up 166.79 points at 35,136.49 and the 50-share NSE Nifty rose 44.10 points to 10,736.40.
About two shares advanced for every share falling on the BSE.
The market has been holding early gains due to buying in HDFC (up 1.5 percent), HDFC Bank (0.83 percent), TCS (1.5 percent), Infosys (1 percent) and ITC (0.89 percent).
9:55 am Preferential Issue: Indiabulls Ventures informed exchanges that a meeting of the board of directors would be held on May 4 to consider and approve the preferential issue of equity shares of the company, to certain foreign investor(s).
9:45 am Buzzing: PC Jeweller rallied nearly 18 percent as board of directors will consider share buyback next month.
"A meeting of the board of directors of the company will be held on May 25, 2018, to consider the proposal for buy back of fully paid-up equity shares of the company," the jewellery maker said in its filing to exchanges.
The board members will also consider and approve the audited standalone and consolidated financial results for the quarter / financial year ended March 31, 2018.
They will consider recommendation of dividend on preference shares for the period from April 01, 2017 to September 01, 2017, and recommendation of dividend, if any, on equity shares for the financial year 2017-18.
9:40 am Market Update: The market continued to trade higher with the Sensex reclaiming 35,000 levels following positive Asian cues, and after RBI further liberalised ECB policy.
The Sensex was up around 200 points while all sectoral indices were in the green barring Metals.
9:30 am MEP's new SPVs: MEP Infrastructure Developers (lead member) in joint venture with LongJian Road & Bridge Company has incorporated the four new special purpose vehicles to execute the projects awarded by National Highways Authority of India (NHAI).
The name of SPVs are as under:1) MEP Longjian ACR Private Limited 2) MEP Longjian CLR Private Limited 3) MEP Longjian Loha Waranga Road Private Limited 4) MEP Longjian VTR Private Limited.
9:21 am Market Update: Benchmark indices extended rally, with the Sensex rising 214.58 points to 35,184.28 and the Nifty climbing 58 points to 10,750.30.
The market breadth was positive as about two shares advanced for every share falling on the BSE.
9:18 am Buzzing: Kalpataru Power Transmission share price gained more than 2 percent after the global EPC player has secured new orders worth Rs 1,463 crore.
Manish Mohnot, Managing Director & CEO, KPTL said "We are excited to begin the year with orders across all segments namely transmission, railways and pipeline. Our order book visibility post these orders is in the range of Rs 14,000 crore which will assist in achieving growth of 15-20 percent for the financial year 2018- 19."
9:15 am Market Update: Benchmark indices opened higher, following positive Asian cues and after RBI further liberalised ECB policy.
The 30-share BSE Sensex was up 55.15 points at 35,024.85 and the 50-share NSE Nifty rose 23.60 points to 10,715.90.
Reliance Industries was down 1 percent after Q4 earnings.
SBI, HDFC, HDFC Bank, Yes Bank, Bharti Airtel, Maruti Suzuki, Bajaj Auto, Wipro and Eicher Motors gained up to 1.5 percent.
Nifty Midcap index was up 70 points.
NIIT Technologies, Thyrocare, Merck, Jagran Prakshan, Idea Cellular, UPL, Equitas Holdings, PC Jeweller, Dabur India, Britannia Industries and InterGlobe Aviation gained up to 5 percent.
Can Fin Homes and Vakrangee were under pressure.
9:10 am Crude Update: Oil prices edged lower as a rising rig count in the United States pointed to higher production, but prices held near more than three-year highs and were on track to rise for a second consecutive month.
The oil complex has been driven by supply concerns amid prospects of the United States reimposing sanctions on Iran, while OPEC-led producers continue to withhold supplies.
Brent crude futures, the international benchmark, dipped 0.68 percent, to USD 74.13 a barrel. Prices climbed as high as USD 75.47 last week, levels not seen since November, 2014.
US West Texas Intermediate (WTI) crude futures were at USD 67.89 a barrel, down 0.32 percent, from their last settlement, reports CNBC.
9:05 am Technical Recommendations:We spoke to Sharekhan and here’s what they have to recommend:
PTC India: BUY| CMP: 89.70| Stop Loss Rs86.70| Target Rs102| Return 14%
Piramal Enterprise Ltd: BUY| CMP: Rs2635.80| Stop Loss Rs2550| Target Rs2900| Return 10%
CEAT LTD: BUY| CMP: Rs1559.85| Stop Loss Rs1508| Target Rs1787| Return 14%
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9:03 am Stocks in news: Results Today: HDFC, Kotak Mahindra Bank, Hindusthan Zinc, Ceat, Dewan Housing Finance, Container Corporation
Axis Bank: Approves increase in borrowing limit upto Rs 2 lakh crore; Approves Scheme of Amalgamation of Accelyst Solutions & Freecharge Payments Technologies
Reliance Industries Q4 consolidated net profit at Rs 9,459 crore and revenues at Rs 1.29 lakh crore
Dilip Buildcon executed concession agreement with NHAI
Idea Cellular Q2 net loss at Rs 962.2 crore and revenue at Rs 6,137.3 crore
RBL Bank Q4 net Profit at Rs 178.12 crore against Rs 130.13 crore, YoY
Equitas Holdings Q4 net profit at Rs 34.88 crore versus Rs 6.9 cr, YoY
IDFC Q4 net profit at Rs 1.56 crore versus Rs 134.8 crore, YoY
Shoppers Stop Q4 net profit at Rs 20.78 crore against loss of Rs 36 crore, YoY
Interglobe Aviation accepted resignation of Aditya Ghosh as the President and Whole Time Director of the company
9:01 am Market Check: The market was higher in pre-opening trade, with the Nifty recliming 10,700 levels and the Sensex rising abvoe 35,000 levels following positive Asian cues.
The 30-share BSE Sensex was up 40.90 points at 35,010.60 and the 50-share NSE Nifty rose 26.40 points to 10,718.70.
Wall Street closed nearly flat on Friday as inflation worries and struggling technology and energy stocks were offset by an advance in the consumer discretionary sector led by Amazon, said a Reuters report.
Asian shares rose again on Monday as tensions in the Korean Peninsula eased and first-quarter earnings shone, although some investors pondered whether this sunny outlook could dim in the near future, it said.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.1 percent following a jump of more than 1 percent on Friday. South Korea's KOSPI index .KS11 gained 0.5 percent.