Sensex corrects 232 points, Nifty Midcap sheds 321 pts amid Q4 earnings
21 May 2018
Market Update: Benchmark indices ended lower for the fourth consecutive session, dragged by pharma, metals, auto stocks, HDFC twins and Reliance Industries.
The 30-share BSE Sensex was down 232.17 points at 34,616.13 and the 50-share NSE Nifty fell 79.70 points to 10,516.70.
Sun Pharma, Cipla, Dr Reddy's Labs, Tata Motors, Tata Steel, HUL and Titan Company declined up to 5 percent while SBI, ICICI Bank and TCS gained up to 2.5 percent.
Nifty Midcap was down more than 300 points. About four shares declined for every share rising on the NSE.
Jet Airways, BEML, REC, Adani Power, LIC Housing Finance, Glenmark Pharma, Ashok Leyland, Amara Raja Batteries, Kitex Garments and Strides Shasun fell up to 20 percent.
Canara Bank, Union Bank, IDBI Bank and Balrampur Chini gained up to 7 percent.
Buzzing: Shares of Petronet LNG lost a little over 7 percent as the net profit fell over a percent at Rs 522.7 crore. Its revenues fell over 11 percent to Rs 8,636 crore. The operating profit fell 3 percent to Rs 822 crore while the margin was also lower than previous quarter at 9.5 percent.
Mcleod Russel India to consider buyback: The company has informed that at the meeting of board of directors will be held on May 30 to consider a proposal for buying back some of its own shares by the company.
Buyback: Shares of DB Corp gained over 5 percent during the day as the firm will be considering a buyback issue on May 26.
Infibeam Incorporation acquires 100% stake in Dubai company: Infibeam Global EMEA FZ-LLC, the wholly owned subsidiary of Infibeam Incorporation, has acquired 100% shareholding of Vavian International.
The acquisition is expected to be completed in next 2 to 4 weeks.
On completion of acquisition, Vavian International will become direct subsidiary of Infibeam Global EMEA FZ-LLC and a step-down subsidiary of Infibeam Incorporation.
Petronet LNG Q4 results: The company's Q4 net profit declined 1.2 percent at Rs 522.7 crore against Rs 529 crore. Other income was up at Rs 103.4 crore and revenue increased by 11 percent at Rs 8,636 crore.
The operating profit or EBITDA was down 3 percent at Rs 822.1 crore and margin was down at 9.5 percent.
Acquisition: Infibeam Incorporation said Infibeam Global EMEAFZ-LLC, the wholly owned subsidiary based in Dubai has acquired 100 percent shareholding of Vavian International Limited, a company formed and registered in Dubai.
The acquisition is expected to be completed in next 2 to 4 weeks.
"On completion of aforesaid acquisition, Vavian International Limited will become direct subsidiary of Infibeam Global EMEA FZ-LLC and a step-down subsidiary of Infibeam Incorporation Limited. ompany through our wholly owned subsidiary in Dubai," it said.
Earnings Reaction: CCL Products share price fell 2 percent despite decent earnings for the quarter ended March 2018.
Profit in Q4 grew by 32.6 percent year-on-year to Rs 47.2 crore and revenue increased 7.4 percent to Rs 321 crore.
Operating profit jumped 10.9 percent to Rs 71.2 crore and margin improved 70 basis points to 22.2 percent compared to year-ago.
Results: Colgate Palmolive has reported a 32.4 percent increase year-on-year in March quarter profit at Rs 188.8 crore against profit at Rs 142.6 crore.
Revenue from operations grew by 5.2 percent to Rs 1,091.7 crore from Rs 1,037.5 crore YoY.
Operating profit in Q4 increased 26.6 percent to Rs 307.6 crore from Rs 243 crore in same period last year.
Margin expanded 480 basis points year-on-year to 28.2 crore for the quarter ended March 2018.
Volume growth was at 4 percent against analyst estimates of 5 percent. Volume declined 3 percent in year-ago quarter.
Market Update: Benchmark indices are trading at day's low, with the Sensex falling 211.79 points to 34,636.51 dragged by metals stocks, HDFC twins, Reliance Industries and Bajaj Finance.
The 50-share NSE Nifty fell 81.90 points to 10,514.50 while the Nifty Midcap index declined 1.6 percent. About three shares fell for every share rising on the BSE.
All sectoral indices are under pressure barring PSU Bank (up 2.8 percent) and IT (up 0.3 percent).
PSU Bank index extended rally on hope of further reduction in bad loans after the successful deal between Tata Steel and Bhushan Steel.
Results Reaction: Indian Metals disappointed street by reporting a 97.2 percent decline year-on-year in March quarter profit at Rs 4.9 crore against profit at Rs 174 crore.
Revenue during the quarter declined 25 percent to Rs 443.3 crore compared to Rs 588.2 crore in same period last fiscal.
Earnings: Kitchen appliances maker TTK Prestige has reported a 32.4 percent decline year-on-year in profit at Rs 37.4 crore for the January-March quarter against Rs 55.3 crore in same period last year.
Revenue during the quarter grew by 11.6 percent to Rs 443.7 crore compared to Rs 397.5 crore in corresponding period last fiscal.
Operating profit increased 21.4 percent to Rs 60.4 crore from Rs 49.8 crore YoY.
Tax expenses for the quarter at Rs 18.9 crore against tax credit of Rs 16.3 crore in year-ago.
The company announced dividend of Rs 30 per share.
Europe Update: French and UK stocks started the week on a higher note with investors digesting weekend developments in US-China trade talks.
The FTSE 100 was up by 0.47 percent and the CAC 40 in Paris was higher by 0.26 percent. The former hit a fresh intraday record high Monday. The German and other European markets were closed for a public holiday.
Market sentiment was driven by trade news and political events in Italy. Fears over a trade war between the US and China eased after comments from US Treasury Secretary Steven Mnuchin that both countries are putting the trade war "on hold" as they try to reach a compromise. His comments also sent US stock futures higher, reports CNBC.
Market Update: The market remained under pressure, with the Sensex falling more than 100 points amid higher crude oil prices and weaker rupee, as disappointing earnings by midcap companies.
PSU Bank is the biggest gainer among sectoral indices, rising more than 2 percent on reduction in bad loans after Tata Steel acquired Bhushan Steel.
The 30-share BSE Sensex was down 142.20 points at 34,706.10 and the 50-share NSE Nifty fell 57.10 points to 10,539.30.
About three shares declined for every share rising on the BSE.
Earnings: PPAP Automotive has reported a massive 64 percent rise YoY in profit at Rs 14.1 crore for the March quarter against Rs 8.6 crore in year-ago.
Revenue during the quarter grew by 32.7 percent to Rs 127.6 crore and operating profit margin 39.9 percent to Rs 28.6 crore compared to year-ago.
Oil Minister on crude prices: India is looking at ways to keep rising fuel prices in check, its oil minister said on Monday, with retail rates for diesel and petrol touching record highs in capital city New Delhi and financial hub Mumbai.
Prices at the pump have surged on the back of rallying international markets for crude oil, which last week hit their strongest since late-2014 amid ongoing production cuts led by the Organization of the Petroleum Exporting Countries (OPEC).
"Various alternatives are being looked at," Dharmendra Pradhan said in a televised speech, adding that he would "work out something soon". He did not give details.
The cost of the growing thirst for oil around Asia will surpass $1 trillion this year, about twice as much as in 2015 and 2016, as oil prices touch $80 per barrel and continental demand hits a record, reports Reuters.
Rupee Update: The rupee traded lower by 11 paise at 68.12 against the American currency on sustained dollar demand from importers and banks, despite lower local equities.
The domestic unit hovered between 68.00 and 68.15.
"Sustained capital outflows, higher dollar overseas after easing trade war tension's loomed over rupee," a dealer said.
Meanwhile, the US dollar rose against basket currencies in early Asian trade after US Treasury Secretary Steven Mnuchin said the US trade war with China was on hold.
Delisting: Leading stock exchange NSE has decided to delist Vijay Mallya-promoted Kingfisher Airlines and Plethico Pharmaceuticals and 16 other companies from May 30.
This comes after BSE delisted over 200 companies from May 11 as trading in their shares remained suspended for over six months.
The decision comes at a time when authorities are clamping down on shell companies - listed as well as unlisted - for being allegedly used as conduits for illicit fund flows.
In August, markets regulator Sebi had directed exchanges to act against 331 suspected shell companies, while the government has already deregistered more than 2 lakh firms that have not been carrying out business activities for long.
Buzzing: Shares of Dilip Buildcon fell 5.6 percent intraday as company's promoters pledged their shares with RBL Bank.
Dilip Suryavanshi and Devendra Jain, promoters of the company has pledged 1,31,655 and 31,77,345 equity share respectively for the benefit of the company including wholly owned subsidiary companies (SPVs).
Dilip Suryavanshi has pledged 64,455 shares of DBL Bangalore Nidagatta Highways and 67,200 shares of DBL Nidagatta Mysore Highway in favor of RBL Bank.
Devendra Jain has pledged 15,55,545 shares of DBL Bangalore Nidagatta Highways and 16,21,800 shares of DBL Nidagatta Mysore Highway in favor of RBL Bank.
Market Update: The market remained under selling pressure amid higher crude oil prices and weaker rupee. Investors also monitor corporate earnings.
The Sensex is down around 200 points and the Nifty Midcap index fell over 1.5 percent.
All sectoral indices are in the red barring IT and PSU Bank.
PSU Bank index is up over a percent on reduction in bad loans after Tata Steel bought Bhushan Steel.
Mining Block: Aditya Birla group firm Ultratech Cement today said it has bagged the Deora-Sitapuri-Udipyapura limestone mining block in Madhya Pradesh (MP).
Ultratech Cement said the block is in close proximity to its existing limestone mines of the company's recently commissioned unit Dhar Cement Works.
"The company has won the Deora-Sitapuri-Udipyapura limestone mining block in the State of Madhya Pradesh," Ultratech Cement said in a BSE filing.
"This mining block is spread over 344.783 hectares of land having minable reserve of around 54 million MT.... This (limestone mining block) will be useful for augmenting the capacity of Dhar Unit in future," it added, reports PTI.
Buzzing: Avenue Supermarts fell 5 percent for the second consecutive session after promoter decided to dilute some stake in the company to meet minimum public shareholding norms.
NCLAT on Tata Steel-Bhushan Steel: The National Company Law Appellate Tribunal (NCLAT) today declined to stay Tata Steel's acquisition of debt-laden Bhushan Steel under the corporate insolvency resolution process.
An NCLAT bench headed by Chairman Justice S J Mulhopadhaya also issued notices to Tata Steel, the resolution professional and Committee of Creditors (CoC) of Bhushan Steel on a petition filed by its promotor Neeraj Singal challenging the sale.
"Let us decide the law but not stall the process," the bench said, adding that the resolution process would be subject to the final outcome of the case.
The bench directed the matter to be listed on May 30 and asked the parties to file their replies in a week, reports PTI
Crude Update: Oil prices rose, lifted by news that China and the United States had put a looming trade war between the world's two biggest economies "on hold".
Brent crude futures were at $79.17 per barrel, up 0.84 percent, from their last close. Brent broke through $80 for the first time since November 2014 last week.
US West Texas Intermediate (WTI) crude futures were at $71.82 a barrel, up 0.76 percent, from their last settlement, reports CNBC.
Market Update: The market continued to trade lower for fourth consecutive session amid higher crude oil prices and weaker rupee, dragged by HDFC twins, auto, metals stocks and Reliance Industries.
The Sensex is falling more than 100 points while the Nifty Midcap is down more than 1.5 percent.
The market breadth weakened further as about three shares declined for every share rising on the BSE
PSU Banks and ICICI Bank outperformed on reduction in bad loans after Tata Steel bought Bhushan Steel.
USFDA Approval: Glenmark Pharma said it has received final approval from the US health regulator for Colesevelam Hydrochloride tablets, 625 mg, the generic version of Daiichi Sankyo's Welchol tablets, 625 mg.
"Glenmark Pharmaceuticals Inc., USA has been granted final approval by the United States Food & Drug Administration (USFDA) for Colesevelam Hydrochloride tablets, 625 mg," the company said in a BSE filing today.
The company said it has already commenced supplies of the product to the US market.
Quoting IQVIA sales data for the 12-month period ending March 2018, Glenmark Pharma said the Welchol tablets, 625 mg, achieved annual sales of approximately USD 519.9 million.
Results Reaction: Shares of Balrampur Chini Mills gained nearly 10 percent intraday despite loss in the quarter ended March 2018.
The company has reported net loss of Rs 42.7 crore in Q4FY18 against profit at Rs 200.4 crore in the same quarter last fiscal.
Revenue of the company increased by 21 percent at Rs 1,025.5 crore versus Rs 846.09 crore.
EBITDA or operating loss for the quarter was of Rs 8.2 crore.
L&T bags order: Shares of Larsen & Toubro (L&T) rose 1.5 percent as its wholly owned subsidiary L&T Hydrocarbon Engineering, in consortium with TechnipFMC, has won two significant orders from Hindustan Urvarak and Rasayan Limited (HURL), a joint venture company of IOCL, NTPC, CIL, FCIL and HFCL.
The engineering, procurement, construction and commissioning (EPCC) contracts are for setting up two fertilizer plants of 2, 200 TPD Ammonia & 3, 850 TPD Urea at Barauni (Bihar) and Sindri (Jharkhand).
Result reaction: Capacite Infraprojects declined 13.6 percent as company reported poor numbers in the quarter ended March 2018.
The company has registered 16 percent fall in its Q4FY18 net profit at Rs 22.38 crore against Rs 26.72 crore in the same quarter last fiscal.
Revenue of the company was down 25 percent at Rs 380.9 crore versus Rs 303.4 crore.
The board has approved recommendation of final dividend of Re 1 per equity shares of face value of Rs 10 each (i.e. 10%) for the financial year ended March 31, 2018.
Buzzing: Shares of Indoco Remedies rose over 4 percent as USFDA has successfully completed the inspection at its manufacturing facilities.
United States Food and Drug Administration (USFDA) has successful completed inspection at company's API manufacturing facilities at Patalganga and Rabale, Navi Mumbai.
The routine FDA inspection was conducted at Patalganga facility from May 7 to 11, 2018 and Kilo Lab facility at Rabale from 14 to 17, 2018, company said in release.
During the audit, the FDA thoroughly inspected Indoco's entire quality management systems to ensure compliance with federal regulations.
The inspection included a review of production facility, processes and procedures, training records, quality systems and control procedures.
The Kilo Lab facility received zero 483s from the agency, while its API plant at Patalganga cleared the inspection with 3 observations; none of them are critical or pertain to data integrity.
Market Update: The market traded lower amid consolidation, as investors shifted their focus from Karnataka to corporate earnings, and movement in rupee & crude oil prices.
The Nifty is struggling below 10,600 levels while the Nifty Midcap index extended losses, down more than 1 percent on weak market breadth.
About two shares declined for every share rising on the BSE.
PSU banks are on buyers' radar after Tata Steel-Bhushan Steel deal that will reduce bad loans of banks by Rs 35,000 crore. Bhushan Steel continued to hit 5 upper circuit.
Reduction in Bad loans: The acquisition of debt-laden Bhushan Steel, under the Insolvency and Bankruptcy Code (IBC) framework, will reduce bad loans of PSBs by Rs 35,000 crore, Financial Services Secretary Rajiv Kumar today said.
"IBC transforming credit culture in NewIndia. About Rs 35,000 crore reduction of NPAs of PSBs in Bhushan Steel case. Reduction of NPAs in individual PSBs range from about Rs 500 crore to over Rs 10,000 crore, he tweeted.
Last week, Tata Steel, through its subsidiary, completed the acquisition of controlling stake of 72.65 per cent in Bhushan Steel for around Rs 36,400 crore after emerging as the winning bidder in an insolvency auction.
Kumar said following the Bhusan Steel buyout, public sector banks (PSBs) will write back Rs 7,500 crore of loans which were earlier classified as NPAs.
"Future upside through over 6 crore equity shares acquired by PSBs. Decisive shift towards clean credit culture," Kumar tweeted, reports PTI.
Results today: DLF, Petronet LNG, Colgate Palmolive, Future Retail, Motilal Oswal Financial, Gujarat State Petronet, Mahanagar Gas, TTK Prestige, Redington (India), Hatsun Agro, Just Dial, Aster DM, Timken India, CCL Product, Astrazeneca Pharma, Jindal Worldwide, Action Construction, West Coast Paper, IL&FS Transport, NRB Bearing, The HI-Tech Gears, Gallantt Ispat, PPAP Automotive, Orient Bell, Usha Martin, Kisan Moulding, Dhunseri Petrochem, Ucal Fuel, Globus Spirits, 63 moon, Gallantt Metal, Star Paper and AYM Syntex will announce quarterly earnings today.
Market Update: Benchmark indices are rangebound as investors shifted their focus from Karnataka to the movement in crude oil prices and rupee.
The 30-share BSE Sensex was down 38.99 points at 34,809.31 and the 50-share NSE Nifty fell 20.30 points to 10,576.10.
About 1,203 shares declined against 764 advancing shares on the BSE.
Listing: Non-banking finance firm Indostar Capital Finance started off trade at Rs 600.60 on the National Stock Exchange, a 5 percent premium to the issue price of Rs 572.
Pre-Opening Rate: Indostar Capital Finance share price settled at Rs 600 on the National Stock Exchange, up 4.9 percent compared to issue price of Rs 572.
Market Update: Benchmark indices continued to consolidate as investors after digesting the Karnataka government formation started focusing on corporate earnings, movement in crude oil prices and rupee.
The Sensex is inching towards 35,000 levels while the Nifty firmly traded above 10,600 levels while the Nifty Midcap index is off its early lows.
The Sensex was up 42.77 points at 34,891.07 and the Nifty gained 7.80 points at 10,604.20.
UltraTech Cement is top gainer among Nifty50 stocks, rising 2 percent but Century Textiles fell 5 percent after cement business deal.
Buzzing: Shares of Century Textiles and Industries touched 52-week low of Rs 976.75, slipping 8.5 percent intraday post demerger of its cement business.
The board approved a scheme of arrangement for demerger of the cement business of the company into UltraTech Cement.
The cement division of the company consists of 3 integrated cement units with a total capacity of 11.4 MTPA (excludes 1.2 MTPA for which statutory clearance is pending) and 1 grinding unit of 2 MTPA.
According to the scheme, the shareholders of Century would get 1 equity share of UltraTech for every 8 equity shares of Century of face value Rs 10 each.
Market Outlook: Dinesh Rohira of 5nance.com said the index closed at 10,596 levels, down 1.94 percent on a weekly basis. With a negative breakout from its short-term moving average, the index has formed a long bearish candlestick pattern on its daily price chart indicating the possibility of further pressure on the index. It also witnessed a negative crossover on the moving average convergence divergence (MACD), with price trading below the Signal Line, thus indicating negative sentiment.
Rising crude oil prices will add to the inflationary pressure in the domestic economy, coupled with weakening of the rupee against the dollar and dramatic political scenario in Karnataka.
The overall market breadth is currently in the negative trajectory. The index breaching of its crucial levels in the last session indicates it will trade further at lower levels.
It is advisable to continue with selective sectors and stocks that are showing a positive momentum. We expect the Nifty to trade rangebound with a negative bias on a weekly basis at 10,670 levels on the upside and 10,510 levels on the downside.
CLSA's India Strategy: The research house believes the consumption theme is a no-brainer in times of macro uncertainty. "Consumption will benefit from government increased popularity on spending on welfare programs."
It said Q4 results indicated urban discretionary consumption has been doing well and management commentary indicated rural consumption is growing.
CLSA's top picks are M&M, ITC, Emami, Crompton Consumer, GSK Consumer, Zee Entertainment, Dr Lal PathLabs, DB Corp, HDFC and ICICI Prudential life.
Buzzing: Shares of Strides Shasun were trading over 4 percent lower after falling over 25 percent on Friday as brokerages downgraded their ratings and target prices on the stock post its dismal Q4. Analysts are seeing a downside of upto 57 percent in the stock.
The drug firm’s stock tumbled nearly 25 percent after the company reported a consolidated net loss of Rs 4.40 crore from its continuing operations for the quarter ended March. The stock slumped 23.03 percent to end at Rs 387.10 on BSE. During the day, it crashed 24.70 percent to Rs 378.70 -- its 52-week low.
The company's market valuation fell by Rs 1,034.56 crore to Rs 3,466.44 crore.
Brokerage: Macquarie | Rating: Downgrade to Neutral | Target: Cut to Rs 398 from Rs 860 | Downside: 54%
The global research firm said that the company’s March quarter performance was a huge dampener. Going forward, it expects margin recovery to be protracted and has also cut FY19/20 earnings per share (EPS) estimates by 52/50 percent.
Brokerage: ICICI Sec | Rating: Downgrade to Add from Buy | Target: Cut to Rs 430 from Rs 990 | Downside: 57%
ICICI Securities termed the March quarter performance to be disappointing and a recovery is only likely in the second half. It expects 10% revenue & 41.3% Adj PAT CAGR Over FY18-20.
Brokerage: Jefferies | Rating: Buy | Target: Cut to Rs 600 from Rs 1,040 | Downside: 43%
Jefferies believes that the company had a muted quarter and the stock price is now factoring the worst case scenario. Further, the management expects impact to continue in the first half, but a recovery is possible only from the second half. It also expects 35 percent EBITDA CAGR over FY19-20.
Market Update: Frontline indices erased opening gains to trade lower amid consolidation after digesting the formation of government in Karnataka by Congress and JD(S).
The 30-share BSE Sensex was down 34.36 points at 34,813.94 and the 50-share NSE Nifty fell 9 points to 10,587.40.
About three shares declined for every two shares rising on the BSE.
Market Opening: Benchmark indices started off trade marginally higher, following positive trend in Asian stocks. Investors digested final outcome of Karnataka election.
The Sensex was up 78.21 points at 34,926.51 and the Nifty gained 13.50 points at 10,609.90.
SBI gained 1.5 percent after Bhushan Steel-Tata Steel deal. ICICI Bank was up 1 percent.
UltraTech Cement was up 1.6 percent and Century Textiles fell 8 percent after cement business deal.
HPCL, TCS, Hindalco Industries, Coal India, Grasim Industries
Indiabulls Housing Finance, Bajaj Finance, Maruti, Infosys, Axis Bank, Wipro, ITC, Hero Motocorp and Sun Pharma were under pressure.
The Nifty Midcap index was down 55 points.
Kitex Garments plunged 16 percent post disappointing earnings. Amara Raja Batteries, Capcite Infra, Balaji Telefilms, Future Lifestyle, Thermax, Ashok Leyland, Strides Shasun, Crompton Consumer and Inox Wind fell up to 5 percent.
Market Update: Benchmark indices remained flat in trade as the Sensex was up 24.86 points at 34,873.16 and the Nifty gained 20.30 points at 10,616.70.
Rupee Update: The Indian rupee declined on Monday. It has opened lower by 11 paise at 68.12 per dollar versus 68.01 Friday.
According to Motilal Oswal, rupee, on Friday, consolidated in a narrow range as most market participants were cautious ahead of the important floor test in state elections of Karnataka. Despite the impact of state elections is expected to be short lived, rise in global crude oil prices will continue to drive currency in the short term. Higher crude oil prices and political risk premium could keep the rupee under pressure.
Consistent fund outflows by FIIs in equity and debt segment will continue to weigh on the rupee. Volatility for the currency has been restricted in the past few sessions on backof suspected RBI intervention. Latest RBI data showed India's FX reserves for the week ended May 11, fell by USD 1.2 billion to USD 417.7billion.
Market Pre-Opening: Benchmark indices were flat in pre-opening trade despite positive Asian stocks post some good developments over the weekend US-China trade talks.
The 30-sahre BSE Sensex was up 33.19 points at 34,881.49 and the 50-share NSE Nifty fell 85.70 points to 10,510.70.
UltraTech Cement rallied 10 percent while Century Textiles fell 10 percent post cement business deal.
Ashok Leyland fell 2 percent. Amara Raja Batteries was flat post earnings.