Nifty ends below 10,700 amid global weakness; HCL Tech loses Rs 11,000 cr in market cap

Market Closing: Benchmark indices closed lower following global weakness amid US-China trade talks, with the Nifty settling trade below 10,700 levels.

The 30-share BSE Sensex was down 73.28 points at 35,103.14 and the 50-share NSE Nifty fell 38.30 points to 10,679.70. More than two shares declined for every share rising on the BSE.

Jet Airways, SpiceJet, InterGlobe Aviation, Radico Khaitan, Emami, United Spirits, United Breweries, MRF, Apollo Tyres, Ceat, JK Tyre, Cera Sanitaryware, Bharat Forge, Biocon, Venkys, Dabur India, Idea Cellular, Just Dial, NIIT Technologies Cadila Healthcare, Gati, Havells and Can Fin Homes fell up to 11 percent.

PC Jeweller rebounded 11 percent after sharp fall in morning. Kwality was up 10 percent and Manappuram Finance gained 4 percent.

May 03, 03:29 PM (IST)   

Buzzing: IT company HCL Technologies lost Rs 11,000 crore in market capitalisation after weak guidance for the current financial year 2018-19. The stock shed 7 percent on top of 5 percent correction in previous session.

Most brokerage houses downgraded the stock and also slashed target prices after March quarter earnings.

Nomura has downgraded HCL Tech to neutral with reduced target price at Rs 1,060 (from Rs 1,100 earlier).

Antique Stock Broking also downgraded the stock to Hold from Buy and cut target price to Rs 1,030 from Rs 1,100 per share as weak organic growth guidance raised concern when peers are guiding for improved revenue growth.

May 03, 03:11 PM (IST)   

Results: Liquor firm Radico Khaitan's standalone net profit more than doubled to Rs 34.18 crore for the quarter ended March 31, 2018 on account of higher income. The stock dropped more than 5 percent.

Total income stood at Rs 1,672.3 crore. It was at Rs 1,215.24 crore in the year-ago period, Radico Khaitan said in a BSE filing.

The company said revenue from operations for periods up to June 30, 2017 includes excise duty, which is discontinued on few items effective July 1, 2017 upon implementation of GST. 

"In view of the aforesaid restructuring of indirect taxes, revenue from operations for the quarter/year ended March 31, 2018 is not comparable with previous periods," the company added.

May 03, 03:08 PM (IST)   

Earnings Reaction: Mumbai-based construction company IRB Infrastructure Developers has reported a 15.7 percent growth year-on-year in net profit at Rs 239.8 crore for the quarter ended March 2018 despite fall in revenue and operational income. The stock was down more than 4 percent.

Profit after tax for the year-ago quarter was at Rs 207.2 crore.

Revenue from operations in Q4FY18 declined 15.1 percent to Rs 1,382.2 crore compared to Rs 1,627.1 crore in same period last fiscal, dented by fall in toll revenues.

May 03, 02:51 PM (IST)   

Market Update: The market continued to consolidate at current levels, with the Nifty hovering around 10,700 levels as investors after digesting Federal Reserve comment focus on US-China trade talks.

The 30-share BSE Sensex was down 35.25 points at 35,141.17 and the 50-share NSE Nifty fell 29 points to 10,689 while the Nifty Midcap index continued to trade lower by over a percent.

About three shares declined for every share rising on the BSE.

HCC remained sharply under pressure, falling 22 percent despite management's clarification note to exchanges stating that it reiterated that Lavasa continued to work closely with lenders for resolution and believes selected facts have been reported from the auditor's report. "Company & all subsidiaries are in complete compliance with all regulatory needs."

IRB Infrastructure fell 4 percent after weak operational performance in Q4 while aviation stocks are under pressure after weak Q4 numbers by IndiGo.

May 03, 02:39 PM (IST)   

Earnings: Edelweiss Financial Services reported 46 percent rise YoY in consolidated net profit at Rs 248.22 crore for the March quarter, driven by higher income from fee and insurance premium as well as fund-based activities.

Total income rose to Rs 2,621.27 crore as against Rs 1,937.58 crore in the same period of the preceding year, Edelweiss said in a regulatory filing.

In entire 2017-18, the net profit increased to Rs 890.13 crore as against Rs 609.31 crore in 2016-17.

May 03, 02:37 PM (IST)   

May 03, 02:23 PM (IST)   

Earnings: Textile company Century Enka said profit after tax during January-March quarter of FY18 degrew by 26.2 percent year-on-year to Rs 17.2 crore. The growth was dented by weak operational performance.

Profit in the same quarter last fiscal was at Rs 23.3 crore.

Revenue from operations grew by 14.7 percent to Rs 410.2 crore compared to Rs 367.5 crore in corresponding period last year.

Operating profit (EBITDA or earnings before interest, tax, depreciation and amortisation) in Q4FY18 fell 36.1 percent to Rs 34.9 crore and margin contracted 680 basis points to 8.5 percent compared to year-ago

May 03, 02:17 PM (IST)   

Gold Update: Gold prices rose for a second session after the US Federal Reserve held interest rates steady as expected at the end of a two-day policy meeting, while investors awaited US-China trade talks.

US gold futures for June delivery rose 0.4 percent to USD 1,310.60 per ounce.

"The inflation numbers this week did point to a potential acceleration in those (interest) rate hikes... But after the FOMC meeting yesterday that appears to be less likely and so we're seeing assets such as gold being bought at the back of that," said ANZ analyst Daniel Hynes. Reports Reuters.

May 03, 02:01 PM (IST)   

The Nifty has rallied more than 7% from its 2018 lows of 9,980 to over 10,700 levels despite higher crude oil prices, rising US bond yields and a weak INR:USD, on hopes of an earnings recovery, easing in trade war fears, geopolitical tensions and domestic institutional inflows.

May 03, 01:48 PM (IST)   

Market Update: The market turned volatile after recovered from day's low, with the Nifty hovering around 10,700 levels as investors globally monitor a meeting between US and Chinese officials on trade.

The 30-share BSE Sensex was down 7.72 points at 35,168.70 and the 50-share NSE Nifty fell 22 points to 10,696.

But the broader markets remained under pressure, with the Nifty Midcap falling over a percent on weak market breadth. About three shares declined for every share rising on the BSE.

May 03, 01:42 PM (IST)   

Europe Update: European equities traded lower as investors closely monitored trade talks between the US and China and digested new earnings reports. France's CAC and Germany's DAX were down 0.2 percent each at time of writing this article.

May 03, 01:38 PM (IST)   

IPO: John Energy, backed by ace investor Rakesh Jhunjhunwala, has received markets regulator Sebi's go-ahead to raise an estimated Rs 350 crore through an initial public offering.

The company had filed draft papers with Securities and Exchange Board of India (Sebi) in February and obtained its "observations" on August 27, as per the latest update with the regulator.

Sebi's observations are necessary for any company planning to launch public issue like initial public offer (IPO) and follow-on public offer (FPO).

Going by the draft papers, John Energy's IPO comprises fresh issuance of shares worth Rs 218 crore and an offer for sale of up to 16,77,744 scrips by the existing shareholders, including IL&FS Financial Services and India Rig Company.

Proceeds of the issue will be utilised towards repayment of certain borrowings availed by the company and for other general corporate purposes, reports PTI.

May 03, 01:24 PM (IST)   

Earnings: Greaves Cotton share price gained more than 2 percent after the company reported a 20.8 percent growth year-on-year in net profit at Rs 56.6 crore on strong revenue and operational performance.

Profit in same quarter last fiscal stood at Rs 46.9 crore.

Revenue from operations increased 24.4 percent to Rs 486.2 crore for the quarter compared to Rs 390.7 crore in corresponding period last year.

Operating profit (EBITDA or earnings before interest, tax, depreciation and amortisation) grew by 30.9 percent year-on-year to Rs 69.8 crore and margin expanded 70 basis points to 14.4 percent for the quarter ended March 2018.

May 03, 01:15 PM (IST)   

Earnings Reaction: Menon Bearings share price dropped nearly 8 percent after the company reported a 11.3 percent degrowth year-on-year in net profit at Rs 5.1 crore for the quarter ended March 2018.

Profit in the same quarter of last fiscal was at Rs 5.8 crore.

Revenue from operations during the quarter grew by 21.9 percent to Rs 38.7 crore, compared to Rs 31.7 crore in year-ago period.

May 03, 01:03 PM (IST)   

Buzzing: Shares of PC Jeweller remained volatile even as the company denied reports that the Central Bureau of Investigation (CBI) was conducting searches at its stores in Nagpur.

Market talk about the ‘search’ had pushed shares to a low of Rs 95.05 earlier in the session. The shares have trimmed losses and were trading at Rs 107 (down 1.5 percent).

Speaking to Moneycontrol, PC Jeweller's CEO Balram Garg denied talk of CBI searches at i ts Nagpur stores. There were media reports about Garg having been arrested by the CBI on Wednesday.

“We have not been questioned by the CBI nor have been approached by SEBI (in connection with the fall in share price),” Garg said.

So far in 2018, PC Jeweller shares have fallen 76 percent. The slide was triggered by the negative sentiment for the sector in general following the fraud at Punjab National Bank (PNB) by jewellery firms Nirav Modi and Gitanjali Gems.

Also, the company’s association with controversy hit-Vakrangee aggravated the selling pressure.

Garg said, “The board is scheduled to meet on May 25, when the quarterly results will be announced. And any decision of a buyback rests with the board.”

May 03, 12:49 PM (IST)   

Market Update: The market was off its day's low in afternoon, with all sectoral indices trading lower following global weakness.

Technology, FMCG, select banks stocks, Reliance Industries and L&T continue to trade lower whereas ICICI Bank and HDFC capped market losses.

The 30-share BSE Sensex was down 65.13 points at 35,111.29 and the 50-share NSE Nifty fell 38.80 points to 10,679.20. About three shares declined for every share rising on the BSE.

The Nifty Midcap index continued to underperform frontliners, falling more than 1 percent.

HCL Technologies was the biggest loser among Nifty50 stocks, shedding 7 percent after weak FY19 guidance.

May 03, 12:42 PM (IST)   

Sugar Output: India's sugar production is estimated to jump at record 31.5-32 million tonne (MT) in the current marketing year ending September on higher cane output, according to industry body ISMA.   Sugar production of India, the world's second largest producer after Brazil, stood at 20.3 MT in the 2016-17 marketing year (October-September).   "Till April 30, 2018, sugar mills have produced 31.03 MT sugar in the current season. With 130 sugar mills still operating, majorly in Uttar Pradesh, it is expected that sugar production during the current season might end up between 31.5-32 MT," Indian Sugar Mills Association (ISMA) said in a statement.

May 03, 12:25 PM (IST)   

May 03, 12:23 PM (IST)   

Order Win: Share price of Sical Logistics rose nearly 6 percent intraday as company received letter of acceptance (LoA) from Northern Coalfields.

The company received LoA from Northern Coalfields for excavation of overburden from Amlohri OCP.

The contract is for Rs 1345 crore for excavation of overburden of first dig [solid] by mechanical means and allied transportation activities at Amlohri OCP for excavation of 145 million BCM over a period of 51 months.

The company's board meeting is scheduled to be held on May 11 for approving and authenticating the audited financial results for the year ended March 31, 2018.

May 03, 12:14 PM (IST)   

Earnings: Varun Beverages' net profit grew nearly three-fold year-on-year to Rs 19.7 crore for quarter ended March 2018, driven by revenue and operational performance.

Profit after tax for the quarter ended March 2017 stood at Rs 6.9 crore.

Revenue from operations for the quarter increased 24.5 percent to Rs 1,094.8 crore compared to Rs 879.2 crore in corresponding period of last fiscal.

Operating profit or EBITDA (earnings before interest, tax, depreciation and amortisation) jumped 25.8 percent year-on-year to Rs 172.7 crore and margin expanded 20 basis points to 15.8 percent for the quarter ended March 2018.

May 03, 11:55 AM (IST)   

Market Update: The market remained under selling pressure, with the Sensex falling more than 100 points and the Nifty trading well below 10,700 levels.

It was weighed down by FMCG, technology stocks, Reliance Industries, HDFC Bank and L&T while HDFC and ICICI Bank continued to support the market.

The broader markets extended losses, with the Nifty Midcap index falling 1.5 percent.

The 30-share BSE Sensex was down 120.35 points at 35,056.07 and the 50-share NSE Nifty fell 57.40 points to 10,660.60. About three shares fell for every share gaining on the BSE.

ADAG Group stocks like Reliance Capital, Reliance Infrastructure, Reliance Power etc were down more than 3 percent.

HCL Technologies was trading at day's low, falling 7 percent post weak FY19 guidance.

HCC was down 16 percent after auditor says Lavasa’s networth eroded almost completely while InterGlobe Aviation plunged 13 percent post disappointing March quarter earnings.

May 03, 11:39 AM (IST)   

Crude Update: Oil prices fell, pulled down by a rise in US crude inventories and record weekly US production, which is countering efforts by producer cartel OPEC to cut supplies and prop up prices.

US West Texas Intermediate (WTI) crude futures were down 0.13 percent, at USD 67.84 per barrel.

Brent crude oil futures were at USD 73.17 per barrel, down 0.26 percent, from their last close.

Prices were pulled down by a report from the US Energy Information Administration (EIA) on Wednesday showing US crude inventories jumped by 6.2 million barrels to 435.96 million barrels in the week to April 27, marking a 2018 high, reports Reuters.

May 03, 11:27 AM (IST)   

Results Reaction: Shares of National Fertilizers slipped nearly 3 percent on the back of poor fourth qurter (Q4FY18) numbers.

The company has reported 24 percent fall in its Q4 net profit at Rs 67.68 crore against Rs 89 crore in the same quarter last year.

Meanwhile, revenue of the company was up 12.8% at Rs 2,095.73 crore versus Rs 1858.72 crore.

May 03, 10:56 AM (IST)   

Buzzing: Shares of Kridhan Infra rose 3 percent in morning trade as company has won order worth Rs 566 million (SGD 11.3 million) in Singapore.

The company’s subsidiary Swee Hong has successfully won these contracts from the public utilities board for work in respect of proposed sewers in Punggol North Area.

Kridhan has evolved into a leading EPC company in Singapore through the acquisition of Swee Hong.

May 03, 10:53 AM (IST)   

Gold Demand: The gold demand in India declined by 12 percent in the first quarter of this year to 115.6 tonne compared to the same period last year due to high local gold price, the World Gold Council (WGC) said in a report.

The total demand stood at 131.2 tonne in the January-March period in 2017, WGC said in its 'Gold Demand Trends' report for Q1 2018.

In terms of value, the gold demand fell by 8 percent to Rs 31,800 crore, compared to Rs 34,440 crore in the same period of 2017.   "The decline in demand can be attributed to a number of reasons, including the rising local gold prices, a substantial drop in the number of auspicious wedding days during the period compared to the previous year, and anticipation of an import duty cut in the Union Budget," WGC, India, Managing Director P R Somasundaram told PTI.

May 03, 10:49 AM (IST)   

Buzzing: PC Jeweller share price fell more than 10 percent and taking total nine consecutive days' loss to 68 percent despite the company said it would consider share buyback.

Its chief financial officer has denied any reports of arrests made by the CBI. Stating that the rumour is an attempt to spread panic, the firm assured that they have had no interaction with the CBI whatsoever.

May 03, 10:43 AM (IST)   

Market Update: Benchmark indices as well as broader markets were trading at day's low following weakness in global peers.

The 30-share BSE Sensex was down 139.78 points at 35,036.64 and the 50-share NSE Nifty fell 57.60 points to 10,660.40 while the Nifty Midcap index slipped over 1 percent.

The market breadth weakened further. About three shares declined for every share rising on the BSE.

FMCG, technology stocks, Reliance Industries and HDFC were under pressure while ICICI Bank and HDFC continued to support the market.

HCL Technologies extended losses, falling nearly 7 percent and taking total two-day loss to more than 10 percent post weak FY19 guidance.

HCC was down 18 percent after auditor says Lavasa’s networth eroded almost completely while InterGlobe Aviation plunged 13 percent post disappointing March quarter earnings.

May 03, 10:26 AM (IST)   

Buzzing: Shares of Techno Electric and Engineering Company added 3 percent in morning trade as company acquired stake in Kdhima-Mariani Transmission

The company has entered into a share purchase agreement to acquire 26 percent equity share capital of Kdhima-Mariani Transmission from Kalpataru Power Transmission.

Kdhima-Mariani Transmission has already obtained approval from lead long term transmission customer for transfer of 26% equity share capital from KPTl to the company.

May 03, 10:20 AM (IST)

May 03, 10:13 AM (IST)

Technical Outlook: Achin Goel, Head of Wealth Management and Financial Planning, Bonanza Portfolio said the Nifty has been in a steady uptrend since it made a low of 9,951 on March 23. It has moved above its 61.80 percent retracement level (10,706) from its lifetime high of 11,171 to the low 9,951. This suggests reversal of the previous downtrend.

A positive crossover of 50-exponential moving average (EMA) and 200-EMA is expected to provide bullish sentiment to the index. Prices have also been hovering comfortably above both averages for several trading sessions.

The Relative Strength Index (RSI) (14) recorded a bullish crossover on the weekly chart with a current reading at 60.76. This suggests possibility for further upsides in the short term. The momentum indicator is moving in alignment with the price, with no negative divergence. 

Another momentum indicator, moving average convergence divergence (MACD) is in the bullish crossover on the daily chart. On the higher end, sustained trades above 10,706 levels may induce a rally towards 10,900-11,000 levels in the short-term. On the lower end, immediate supports are pegged at 10,500 levels.

May 03, 10:06 AM (IST)

Buzzing: Shares of HCC lost around 24 percent in morning trade as investors were wary of an auditor report regarding its debt situation.

The stock touched an intraday low of Rs 17.75 during the session.

According to a report on CNBC-TV18, the auditor for Lavasa Corporation has said that the networth of subsidiaries of HCC has been fully or significantly eroded.

In fact, it has significant doubts about the ability of the firm to continue as a going concern.

Currently, the liabilities are exceeding assets by Rs 2,390 crore.

May 03, 9:55 AM (IST)

Poll: Vedanta is likely to report a consolidated profit of Rs 2,577.1 crore in Q4 FY18, a rise of 25 percent from Rs 2,053 crore posted during the previous quarter. According to a Reuters analyst poll, the metals major is likely to report revenues of Rs 24,815.2 crore as against Rs 24,361 crore quarter-on-quarter, a marginal rise of two percent.

Profit during this quarter may be lower due to an impairment loss of Rs 1,800 crore after the Supreme Court ordered closure of its Goa iron-ore mining operations. During the corresponding quarter of last year, the firm had reported a profit of Rs 2,971 crore, while its revenue was Rs 22,371 crore.

Among segments, Motilal Oswal expects operating profit to rise 16 percent quarter-on-quarter to Rs 710 crore on the back of higher LME (London Metal Exchange) volumes. This may be partly offset by higher costs.

May 03, 9:50 AM (IST)

Binani Cement in focus: The National Company Law Tribunal (NCLT) asked the Committee of Creditors (CoC) of debt-ridden Binani Cement to consider Aditya Birla group firm UltraTech's revised offer while setting June 24 as deadline for completion of the insolvency resolution process.

The NCLT bench also asked the Committee of Creditors (CoC) to reconsider resolution plan of Rajputana Properties Pvt Ltd (RRPL), if the Dalmia Bharat Group firm, was willing to raise its offer more than UltraTech's bid.

"It is made clear that of both resolution applicants if willing to participate in the bidding process, the CoC is expected to allow both resolution applicants in the bidding process and which is best for revival of corporate debtor (Binani Cement) is to be decided by the CoC," it said.

In a relief to UltraTech, which had placed a revised offer which more than Rs 1,020 crore higher than the winning bid of Dalmia Bharat Group, the NCLT Kolkata bench said "we may not blind in a case of this nature" while "taking judicial notice of denial of a better revival of the corporate debtor on flimsy grounds", reports PTI.

May 03, 9:46 AM (IST)

Market Update: The market is under pressure with the Nifty trading below 10,700 levels following global weakness, dragged by FMCG, HCL Tech, HDFC Bank, Reliance Industries and L&T.

The buying in ICICI Bank, HDFC and Infosys cap losses.

The 30-share BSE Sensex was down 69.60 points at 35,106.82 and the 50-share NSE Nifty fell 32.80 points to 10,685.20.

The broader markets underperformed frontliners, with the Nifty Midcap losing a percent on top of 1.5 percent loss in previous session.

About two shares declined for every share rising on the BSE.

HCL Technologies falls another 5 percent on top of 5 percent loss in previous session post Q4 results.

May 03, 9:39 AM (IST)

Results Reaction: InterGlobe Aviation share price plunged 11 percent after profit in the March quarter net profit slumped to almost a fourth of last time’s to Rs 117.6 crore due to high fuel costs, decline in yields and adverse foreign exchange.

Revenue was up by almost a fifth to Rs 5799.1 crore. Margin at the level of earnings before finance income and cost, tax, depreciation, amortisation and aircraft and engine rentals margin was down 811 basis points to 19.4 percent. One basis point is equal to one-hundredth of a percentage point.

March quarter numbers indicate the airline is in for some turbulent times amidst the exit of its Chief Executive Officer Aditya Ghosh. Ghosh resigned on April 27 and will leave the company at the end of July.

May 03, 9:35 AM (IST)

Buzzing: Shares of Biocon tumbled 4.4 percent as USFDA issued Form 483 with 7 observations.

"USFDA has completed a pre-approval inspection of sterile drug product manufacturing facility in Bangalore this week and issued a Form 483 with 7 observations," company said in press release.

As per the press release, the observations are largely procedural and are aimed at continuous improvement.

The company will respond to the FDA with a corrective and preventive action plan in a timely manner.

This week company also received the preliminary report from the European Regulator post inspection of its sterile drug product facility in Bangalore in March 2018.

The report lists 6 major observations with no observation classified as critical. The company will submit a corrective and preventive action plan to the European inspection agency within the stipulated time period, company added.

May 03, 9:15 AM (IST)

Market Check: Benchmark indices opened flat amid weak global cues on Thursday as investors await corporate earnings and Karnataka elections that is scheduled to be held next week.

The 30-share BSE Sensex was down 4.36 points at 35,172.06 and the 50-share NSE Nifty fell 6.10 points to 10,711.90.

ICICI Bank, Hindalco, GAIL, Grasim Industries and ITC were early gainers.

Nifty Midcap index was down 96 points and Nifty Bank was down 65 points.

InterGlobe Aviation, Siemens, National Fertilizers, Jet Airways, Biocon, Bharat Forge, MRF, Gujarat Fluorochemicals and PC Jeweller fell up to 12 percent.

Tata Power and Sical Logistics gained up to 3 percent.

May 03, 9:07 AM (IST)

Technical Recommendations: We spoke to Bonanza Portfolio and here’s what they have to recommend:

Castrol India Ltd: BUY| Target: Rs 225| Stop loss: Rs 188| Return 12%

Ujjivan Financial Services Ltd: Buy| Target: Rs 485|Stop loss: Rs 394|Return 15%

SBI Life Insurance Co Ltd: BUY| Target RS.830|Stop Loss Rs.699|Return 12%

May 03, 9:04 AM (IST)

Stocks in news: Results Today: Adani Ports, HCC, Adani Power, Hexaware Technologies, IRB Infra, JSW Energy, MRF

Biocon: US FDA completed pre-approval inspection of Sterile drug manufacturing facility, Bangalore this week USFDA issues Form 483 with 7 observations

National Fertilizers Q4 net profit down 23.9% at Rs 67.68 crore, revenue up 12.8% at Rs 2,095.73 crore.

Siemens Q2 net profit up 18.2% at Rs 219.7 crore, revenue up 7.6% at Rs 3,283.4 crore

Kridhan Infra's subsidiary Swee Hong wins order worth Rs 566 million

Sical Logistics received letter of acceptance from Northern Coalfields for excavation of overburden from Amlohri OCP

ONGC drills 503 wells in FY18 - Highest in last 27 years

May 03, 9:02 AM (IST)

Market Check: Benchmark indices were marginally higher in pre-opening trade despite weakness in Asian stocks.

The 30-share BSE Sensex was up 47.11 points at 35,223.53 and the 50-share NSE Nifty rsoe 16.70 points to 10,734.70.

US stocks fell on Wednesday as potential US restrictions on Chinese telecom companies reinforced investor concerns about worsening trade relations between the United States and China, said a Reuters report.

Asian shares were subdued on Thursday ahead of anxiously-awaited Sino-US trade talks, while the US dollar consolidated recent bumper gains after the Federal Reserve reaffirmed the outlook for more rate hikes this year, it said.