Sensex rises 262 points, Nifty above 10,600 on oil correction and strong rupee
25 May 2018
Earnings: Sun Pharma's Q4 earnings beat analyst expectations on all parameter, with profit rising 7% compared to year-ago while Tech Mahindra's earnings also surpassed Street estimates, with profit rising 29.6 percent sequentially.
Market Closing: Benchmark indices extended rally for the second consecutive session as the Sensex was up 261.76 points at 34,924.87, backed by banking & financials, oil, metals and technology stocks.
The 50-share NSE Nifty gained 91.30 points at 10,605.20 while Nifty Midcap index rallied 2 percent, outperforming frontliners.
Page Industries, Castrol, Adani Power, Avenue Supermarts, Cadila Healhcare, Gateway DIstriparks and MCX surged up to 20 percent.
Granules India fell 5 percent and IDBI Bank declined 2 percent.
The rupee has recovered from the intraday low of 68.28, currently trading at 67.77 against the US dollar, up 57 paise.
Results reaction: Zuari Agro Chemicals slipped 6 percent as company has reported loss of Rs 15 crore in the quarter ended March 2018 against profit of Rs 5.6 crore in a year ago period.
Revenue of the company was up 15.7 percent at Rs 1,117.6 crore versus Rs 966.4 crore.
Market Update: Benchmark indices are off the day's high as the Sensex gained 193.02 points at 34,856.13 and the Nifty rose 75.40 points to 10,589.30.
Quarterly Results: IDBI Bank's March quarter net loss widened to Rs 5,663 crore from loss of Rs 3,200 crore in same period last year due to sharp rise in bad loans provisions.
Net interest income also saw a steep fall of 43.9 percent at Rs 915.5 crore for the quarter against Rs 1,633.3 crore in corresponding period of last fiscal.
Provisions for bad loans shot up to Rs 10,544 crore for the quarter ended March 2018, up from Rs 4,656 crore in December quarter 2017 and Rs 5,865 crore in March quarter 2017.
Gross NPA as a percentage of gross advances jumped to 27.95 percent from 24.72 percent and net NPA rose to 16.69 percent from 16.02 percent QoQ.
Earnings: Page Industries' March quarter earnings were ahead of analyst estimates as profit grew by 41.1 percent year-on-year to Rs 94.2 crore on strong operational and revenue performance.
Revenue from operations in Q4 shot up 22.3 percent to Rs 608.4 crore compared to Rs 497.3 crore in year-ago.
EBITDA (earnings before interest, tax, depreciation and amortisation) surged 50.8 percent year-on-year to Rs 146.8 crore and margin jumped 450 basis points to 24.1 percent in Q4.
Earnings Reaction: Cadila Healthcare share price rallied 9 percent after the company's March quarter earnings beat analyst expectations on all parameters.
Consolidated profit for the quarter grew by 53.3 percent year-on-year to Rs 590.8 crore compared to Rs 385.5 crore and revenue from operations increased 29.3 percent to Rs 3,250.2 crore from Rs 2,513.3 crore YoY.
A Reuters poll estimates said the profit could be around Rs 540.6 crore and revenue at around Rs 3,212.8 crore for the quarter.
EBITDA (earnings before interest, tax, depreciation and amortisation) jumped 87.4 percent to Rs 870.4 crore and margin expanded 830 basis points to 26.8 percent compared to year-ago.
Tax expenses for the quarter stood at Rs 144.2 crore against Rs 1.9 crore in same period last year.
Nifty Expiry View: ICICI Securities said
The Nifty is expected to remain in the range of 10,500-10,700 amid high volatility as it made highs near 10,900 and then tested lows of 10,400. Negative global cues (crude, geopolitics, rate surge) and domestic events (rupee weakness, Karnataka election verdict) have triggered volatility for the Nifty. The ongoing result season also added to the volatile moves.
We believe the Nifty may settle the May series near its VWAP levels of 10,650 if it is able to sustain above its highest Put base of 10,500.
Since the inception of the series, the highest Put base was placed at the 10,500 strike while the Call base was seen at 11,000 strike. Post Karnataka election verdict, the Nifty lost almost 500 points amid heavy Call writing at OTM strikes with maximum addition seen at 10,800 strike. Thus, retesting of this level seems remote.
At the same time, Put options base at 10,500 remains intact despite the Nifty dipping towards 10,450. We believe a move below the Put base of 10,500 once again may lead to another round of selling in the index.
Market Update: Bulls are in power at Dalal Street as the Sensex is around 300 points and the Nifty is trading above 10,600 levels following sharp correction in crude oil prices and recovery in rupee from 18-month low.
The Nifty Midcap index continued to outperform frontliners, rising 2 percent while all sectoral indices are in the green.
Brent crude futures dipped below $78 a barrel on likely increase in supply from Russia, down 3 percent from 2018 high of $80.50 a barrel
The rupee also recovered for second consecutive session, from its 18-month low of 68.42 a dollar, up 50 paise from previous close.
The 30-share BSE Sensex gained 304.35 points or 0.88 percent at 34,967.46 and the 50-share NSE Nifty rose 105.20 points or 1 percent to 10,619.10.
Rupee Update: The Indian rupee recovered sharply from day's low, following correction in crude oil prices and rally in equity markets.
It was trading at 67.8212 against the US dollar, up 52 paise or 0.8 percent from previous close.
On Thursday, the rupee closed 8 paise higher at 68.34 a dollar.
Crude Update: Oil prices eased as Russia hinted it may gradually increase output after withholding supplies since 2017 together with producer cartel OPEC.
Brent crude futures were at $77.97 per barrel, down 1.04 percent from their last close, but more than 3 percent below the $80.50 November 2014 high they reached on May 17. Brent broke through $80 for the first time in a few years earlier in May.
US West Texas Intermediate (WTI) crude futures were at $70.24 a barrel, down 0.66 percent from their last settlement.
Fortis in focus: Fortis Healthcare has received a letter from IHH Healthcare Berhad for extension of the acceptance period for the enhanced revised offer.
Acquisition: Container logistics firm Gateway Distriparks will acquire global private equity major Blackstone's entire shareholding in its freight company Gateway Rail Freight for Rs 810 crore.
"The board of directors...approved the acquisition of entire shareholding held by Blackstone in compulsorily convertible preference shares (CCPS) and equity shares in Gateway Rail Freight for a total consideration of Rs 810 crore," Gateway Distriparks said in a BSE filing.
Post the transaction, Gateway Distriparks' shareholding in Gateway Rail Freight will be 99.80 per cent, it added.
The company said that the acquisition is to be completed within 90 days, subject to statutory and regulatory approvals as may be required.
Gateway Rail provides inter-modal logistics and operates its own rail-linked Inland Container Depots (ICD) at Gurgaon, Faridabad, Ludhiana, and Sanand.
Earnings: State-owned Power Finance Corporation has posted a profit at Rs 935.6 crore for the quarter ended March 2018 against loss of Rs 3,409 crore in same period last year.
Other income, which grew by 176 percent year-on-year to Rs 214.3 crore, and provision write-back for restructured assets of Rs 1,748 crore boosted profitability.
Revenue from operations in Q4 increased 7.7 percent to Rs 6,162.4 crore from Rs 5,719.4 crore in corresponding period of last fiscal.
Market Update: The market extended gains in afternoon, with the Nifty reclaiming 10,600 levels on the back of support from oil, technology and banking & financial stocks.
IOC, Infosys, Bajaj Finserv, Tata Motors, ONGC, Tata Steel, Hindalco and GAIL are top gainers among Nifty50 stocks, rising 2-4 percent.
The 30-share BSE Sensex rose 254.63 points to 34,917.74 and the 50-share NSE Nifty rallied 90.10 points to 10,604 while the Nifty Midcap index climbed over 1.5 percent on positive market breadth.
About two shares advanced for every share falling on the NSE.
Europe Update: European stocks are higher, as market participants' fears were calmed by North Korea's response to President Donald Trump's decision to cancel a landmark summit.
The pan-European Stoxx 600 was up around 0.4 percent, with almost all sectors and major bourses in positive territory, reports CNBC.
Results Reaction: Shreyas Shipping share price jumped 7 percent after the company posted a profit at Rs 23.2 crore for March quarter against loss of Rs 12.6 crore in same period last year.
Revenue from operations grew by 65.1 percent to Rs 158.5 crore compared to Rs 96 crore in corresponding period last year.
EBITDA (earnings before interest, tax, depreciation and amortisation) more than doubled to Rs 29.6 crore from Rs 14.4 crore and margin expanded 370 basis points to 18.7 percent YoY.
Shreyas Shipping had reported exceptional loss of Rs 23.2 crore in Q4FY17.
Buzzing: Shares of Avenue Supermarts gained 6 percent as promoter of the company sold the stake in the company for achieving minimum public shareholding.
The promoter of the company, Radhakishan Shivkishan Damani has completed sale of 6,240,844 equity shares of the company, constituting 1 percent of the paid-up equity share capital of the company, between May 21 and May 24, 2018.
Under SEBI norms, every listed company will need to maintain a public shareholding of at least 25 percent. The listed public sector firms have been provided additional time till August 21, 2018 to comply with this requirements.
Electrosteel Steels seeks exemption from Sebi: Electrosteel Steels, which undergoing insolvency resolution process, has sought exemption from the markets regulator Sebi from filing its financial results for the quarter and year ended on March 31, 2018.
In a regulatory filing, Electrosteel Steels (ESL) expressed its inability in filing mandatory disclosures due to "mismatch of liabilities of the company in its books of account and those admitted by resolution professional of the company...(i.e. from July 21, 2017 to April 17, 2018) in terms of the Insolvency and Bankruptcy Code, 2016".
On April 17, 2018, the National Company Law Tribunal (NCLT), Kolkata Bench, had approved the resolution plan submitted by Vedanta for Electrosteel Steels.
However, this was challenged by Renaissance Steel, an unsuccessful bidder before the National Company Law Appellate Tribunal (NCLAT).
Market Update: The market held on to morning gains, with the Sensex rising around 150 points while the Nifty Midcap index extended rally, rising nearly 1.5 percent.
Auto, technology, select metals and banking & financials stocks continued to support the market while SBI, which dragging the PSU Bank index, declined over 1.5 percent.
Sun Pharma fell nearly a percent ahead of March quarter earnings due later in the day.
The 30-share BSE Sensex gained 159.13 points at 34,822.24 and the 50-share NSE Nifty rose 54.60 points to 10,568.50. About three shares advanced for every two shares declining on the BSE.
Oberoi Realty in Focus: Oberoi Realty is looking to raise Rs 1,200 crore via qualified institutional placement (QIP), reports CNBC-TV18 quoting sources.
The Mumbai-based real estate company has mandated bankers for its QIP issue, which include JM Financial and Morgan Stanley.
The firm is raising money to fund its ongoing projects, sources said.
However, Oberoi Realty denied plans of QIP in written reply to CNBC-TV18 query.
The realty company has a board approval to raise Rs 2,000 crore.
Earnings : Private sector lender Karur Vysya Bank has reported a sharp 76.8 percent decline year-on-year in profit at Rs 50.6 crore for the quarter ended March 2018, dented by massive jump in bad loans provisions.
Net interest income, the difference between interest earned and interest expended, grew by 10.8 percent to Rs 643 crore compared to year-ago period.
Provisions for bad loans shot up 81 percent year-on-year (up 21 percent sequentially) to Rs 394.2 crore in Q4FY18.
Asset quality weakened further as gross non-performing assets (NPA) for the quarter inched up to 6.56 percent against 5.94 percent in previous quarter. Net NPAs were also higher at 4.16 percent against 3.88 percent in December quarter.
Market Update: Benchmark indices continued to trade higher in afternoon, backed by auto, metals, technology and oil stocks.
The 30-share BSE Sensex rose 163.36 points to 34,826.47 and the 50-share NSE Nifty gained 52 points at 10,565.90 while the Nifty Midcap continued to outperform frontliners, rising a percent on positive market breadth.
About three shares advanced for every two shares falling on the BSE.
Infosys, IOC, Bajaj Finance, Bajaj Finerv, Yes Bank, IndusInd Bank, Tata Motors, HUL, Hindalco and Tata Steel gained between 1 percent and 4 percent. HDFC Bank, TCS and Reliance Industries also gained half a percent each.
ITC, Vedanta, SBI, Bharti Infratel and Coal India are top losers among Nifty50 stocks, falling 1-2 percent.
Buzzing: Vedanta’s shares fell over 3.5 percent intraday as investors remained cautious of tensions at Thoothukudi in Tamil Nadu, which houses its copper unit.
On Thursday, authorities cut the power to the smelter. The Pollution Control Board of Tamil Nadu said the smelter, which was shut pending renewal of its operating license, was found last week to be preparing to resume production without permission.
In fact, the Tamil Nadu government also said that it was seeking a permanent closure of a big copper smelter run by Vedanta Resources PLC after 13 people died in protests demanding the closure of the plant on environmental grounds.
"The government's position is very clear, it doesn't want the plant to run," said Sandeep Nanduri, the top official of the district where the plant is located, after a meeting with senior state government officials.
Other state officials confirmed the government's position, reports PTI.
Drug Approval: Zydus Cadila has received final approval from the US health regulator to market Dutasteride and Tamsulosin Hydrochloride capsules.
The drug is used to treat symptoms of Benign Prostatic Hyperplasia (BPH) -- also called prostate gland enlargement.
The approval has been granted in the strengths of 0.5mg/0.4 mg, the company said in a BSE filing.
Zydus Cadila said the drug will be produced at the group's formulations manufacturing facility at Moraiya, Ahmedabad.
Goa Mining Crisis: A day after the GFP threatened that it won't support the BJP in the next Lok Sabha polls if the mining crisis in Goa is not resolved, the latter today said a solution to the problem would be found much before the general elections.
Vijai Sardesai, president of the Goa Forward Party (GFP), a constituent of the BJP-led Goa government, had yesterday said that the BJP will land in "trouble" if the mining activities in the state don't resume immediately.
"We won't support the BJP in the Lok Sabha elections if they fail to resolve the mining crisis," he had said.
On the GFP's stance, the ruling saffron party said the mining crisis would be resolved soon.
"There will no issue of GFP not supporting BJP during Lok Sabha polls as the mining industry crisis would be resolved soon, much before the upcoming Parliamentary polls," BJP's Goa unit president Vinay Tendulkar told PTI.
Buzzing: Shares of Som Distilleries and Breweries gained 5.3 percent on commencing operations in West Bengal.
The company has commenced sales operations in the state of West Bengal, company said in press release.
Buzzing: Shares of Pidilite Industries touched 52-week high of Rs 1,136.35, rising more than 5 percent on the back of strong March quarter numbers.
The company's Q4 net profit rose 57.4 percent at Rs 247.5 crore against Rs 157.2 crore in a year ago period.
Revenue of the company rose 5 percent at Rs 1,485.3 crore versus Rs 1,404.32 crore.
Market Update: Benchmark indices are trading near day's high, with the Sensex rising 183.13 points to 34,846.24.
It was driven by technology, banking & financials, auto and metals (barring Vedanta) stocks.
The 50-share NSE Nifty gained 55 points at 10,568.90 while the Nifty Midcap index outperformed frontliners, rising a percent.
About three shares advanced for every two shares falling on the BSE.
Buzzing: Cox & Kings share price rallied nearly 11 percent after non-banking finance company's license granted to its wholly owned subsidiary, Cox & Kings Financial Service Limited.
"Reserve Bank of India (RBI) has granted a Non-Banking Finance Company (NBFC) Licence to Cox & Kings Financial Service Limited, a wholly owned Subsidiary of the company," the company said.
Cox & Kings Financial Service Limited proposes to carry on the business of holiday financing, student loan financing and other non-banking financial service activities and a foreign exchange business.
Buzzing: IFCI share price rallied more than 7 percent after the financial firm received Rs 280.3 crore from Bhushan Steel resolution.
Tata Steel has taken over Bhushan Steel that was identified under Insolvency & Bankruptcy Code.
Technical Outlook: The index might be showing signs of fatigue thanks to weak global cues but Nifty50 is unlikely to retest lows made in the month of March and that should come as a respite to trades, Laurence Balanco, Global Technical Analyst at brokerage firm CLSA said in an interview with CNBC-TV18.
The index has fallen over 600 points from its all-time high of 11,171 but technical setup suggests that Nifty should be able to find support near 10,300-10,400 levels. Despite some correction seen in the last month, Balanco said that he still maintains our Nifty target of 12,000 for 2018.
The rising crude oil prices which have been an overhang for an oil importing nation like India is likely to hover in the range of $65-80$/bbl. The good news is that in the near-term it should pull back.
Results Reaction: United Breweries (UBL) share price rallied 7 percent after reporting over 13-fold jump in its standalone net profit of Rs 90.88 crore for the fourth quarter ended March 2018 led by strong volume growth.
The company had posted a net profit of Rs 6.73 crore in the January-March period a year-ago, UBL said in a regulatory filing.
Its total income during the quarter under review was up 27.84 per cent to Rs 3,275.38 crore as against Rs 2,562.03 crore in the corresponding quarter of the previous fiscal.
TCS in focus: A month after hitting market cap of $100 billion, Tata Consultancy Services on Friday hit a record Rs 7 lakh crore m-cap. The stock also touched a fresh 52-week high.
The stock also touched a 52-week high of Rs 3,674.00.
Shares of information technology companies have witnessed a huge surge this year, largely on the back of a weaker rupee. The BSE Information Technology and Nifty IT indices are up 19-20 percent so far in this year. A weakening rupee is seen to be as a benefit for export-facing companies as it ensures better revenues for such firms.
Order Win: The Railways Strategic Business Group of L&T Construction’s Transportation Infrastructure business has won a major design & build order from the Dhaka Mass Transit Company Ltd. (DMTC) worth Rs 3191 crore for Electrical & Mechanical Systems Package of Dhaka Mass Rapid Transit Development Project (MRT – Line 6).
Market Update: Benchmark indices extended opening gains, with the Sensex rising 146.50 points to 34,809.61 and the Nifty gaining 41.50 points at 10,555.40.
About two shares advanced for every share rising on the BSE.
TCS became the most valued listed company in India, crossing the market cap of Rs 7 lakh crore.
Buzzing: Shares of Granules India touched new 52-week low of Rs 77.85, down 6.3 percent on the back of weak fourth quarter numbers.
On Thursday, the company has reported 55 percent fall in its Q4FY18 consolidated net profit at Rs 20.4 crore on the back of weak operational performance.
The company had reported net profit of Rs 45.7 crore in the same quarter last fiscal.
Meanwhile, revenue of the company was up 39 percent at Rs 503.8 crore versus Rs 362 crore. Operating profit or EBITDA was down at Rs 43.6 crore and margin was down at 8.7 percent.
Inventory cost has increased to Rs 28 crore.
Earnings Reaction: Shares of Gas Authority of India (GAIL) added 4 percent as investors cheered a four-fold jump in its profits for the March quarter.
The state gas utility major reported a net profit of Rs 1,021, up 293 percent from Rs 260 crore in the same period of last fiscal.
The profit in fourth quarter was higher due to a one-off impairment GAIL had taken on its investment in Dabhol LNG terminal in the corresponding quarter of previous fiscal.
Turnover was up 13 percent at Rs 15,396 crore.
For the full fiscal 2017-18 that ended on March 31, the company posted a record net profit of Rs 4,618 crore, 32 percent more than Rs 3,503 crore net profit of previous fiscal. Turnover was up 10 percent at Rs 53,690 crore.
Results today: Sun Pharma, Tech Mahindra, Bank of Baroda, Cadila Healthcare, Page Industries, IDBI Bank, Power Finance Corporation, Sundaram Finance, NBCC India, Max Financial, Karur Vysya Bank, Jagran prakashan, BEML and India Cements will announce results on Friday.
Other companies that will also declare their earnings are VA Tech Wabag, General Insurance, Indian Hotels Company, Eris Lifesciences, Gujarat fluorochemicals, Lakshmi Machine Works, Engineers india, Asahi India Glass, PC Jeweller, Kalpataru Power, Hindustan Copper, Lemon Tree, FDC, Himatsingka Seide, Amber Enterprises India, Excel Crop Care, Jindal Saw, Goodyear India, JB Chemicals, Ramkrishna Forgings, Lakshmi Vilas Bank, Shriram EPC, Jai Corp, Bannariamman Sugars, TCI Express, Future Enterprises, Excel Industries, Power Mech Projects, DFM Foods, Shreyas Shipping, Monte Carlo Fashions, Hotel Leela Venture, Rico Auto Industries, Waterbase, Panama Petrochem, NLC India, Nagarjuna Fertilizers, Orissa Mineral, Ambika Cotton Mills, Goldstone Infratech, Enkei Wheels, Future Market and JBF Industries.
Market Opening: Benchmark indices opened mildly higher on the last day of week, backed by technology stocks.
The 30-share BSE Sensex rose 63.47 points to 34,726.58 and the 50-share NSE Nifty gained 16.10 points at 10,530.
GAIL, Infosys, TCS, Yes Bank, Asian Paints, IOC, Bajaj Finance, Indiabulls Housing, Hindalco and HPCL are early gainers.
Vedanta, ITC, ONGC, Bharti Airtel, SBI, IndusInd Bank and Titan Company are under pressure.
Nifty Midcap gained 33 points.
Gujarat Alkali, United Spirits, United Breweries, Jet Airways, Cochin Shipyard and Sequent Scientific gained up to 10 percent.
Granules, Cummins, GSK Pharma and Pidilite Industries fell up to 5 percent.
Stocks in the news: Sun Pharma, BoB, PNC Infratech, PC Jeweller, Kaveri Seed, United Spirits.
Market Pre-Opening: Benchmark indices traded higher in pre-opening despite mixed Asian stocks.
The 30-share BSE Sensex was up 77.80 points at 34,740.91 and the 50-share NSE Nifty rose 16.10 points to 10,530.
US stocks ended down slightly on Thursday after President Donald Trump canceled a planned summit with North Korea’s Kim Jong Un and threatened to impose tariffs on auto imports, though losses were limited by gains in Netflix and General Electric.
Asian markets were mixed after US President Donald Trump canceled a scheduled summit with Kim Jong Un.
As many as 238 companies are scheduled to report their results for March quarter which include names like Bank of Baroda, BEML, Cadila Healthcare, Max Financial Services, Page Industries, PC Jeweller, Sun Pharma, Tech Mahindra, and Zuari Global among others.