Sensex 324 points, Nifty ends a tad below 11,500

07 May 2019

Nifty Ends a Tad Below 11,500

The late selling pulled Nifty50 below its crucial support of 11,500, dragged by Reliance Industries, ICICI Bank, ITC, IOC and Tata Motors which fell 2-4 percent.

The BSE Sensex closed at 38,276.63, down 323.71 points and Nifty50 fell 100.35 points to 11,497.90.

However, Infosys, HUL, L&T, Wipro, ONGC and Titan Company bucked the trend, rising 1-2 percent.

The broader markets also caught in bear trap. The Nifty Midcap index lost 1.2 percent and Smallcap index fell 1 percent.

All sectoral indices closed in the red barring IT. Nifty Bank, Metal and Realty were prominent losers, falling over a percent each.

Piramal Enterprises Signs MoU with Canada Pension Plan Investment Board

Piramal Enterprises signed a Memorandum of Understanding with Canada Pension Plan Investment Board, a Canadian pension fund, to co-sponsor a renewable energy focused Infrastructure Investment Trust.

With an initial corpus of US$ 600 million, and the option to scale further, the InvIT would seek to acquire up to 1.5-2GW of stable and cash generating renewables assets on a hold-to-maturity basis, with a firm focus on diversification of both asset type as well as off-taker profile, the company said in a release.

Escorts Q4 Profit Rises 8% to Rs 121 Cr

Tractor maker Escorts has reported a 7.8 percent year-on-year growth in profit for quarter ended March 2019.

Profit increased to Rs 121.35 crore during the quarter against Rs 112.54 crore in same period last year, the company said.

Revenue from operations jumped 13.6 percent year-on-year to Rs 1,631.66 crore in March quarter.

VIP Industries Q4 Profit Falls 28%

Luggage and travel accessories maker VIP Industries reported a 28 percent year-on-year degrowth in March quarter profit due to weak operating performance.

Consolidated profit during the quarter ended March 2019 stood at Rs 25.3 crore, which declined from Rs 35 crore in same period last year.

VIP said revenue from operations increased by 20 percent to Rs 435 crore against Rs 362.6 crore in corresponding period last fiscal.

Market Update: Benchmark indices erased all its morning gains and trading flat with negative bias with Nifty below 11,600 level.

At 14:07 hrs IST, the Sensex is down 36.52 points at 38563.82, while Nifty is down 23 points at 11575.30. About 980 shares have advanced, 1294 shares declined, and 149 shares are unchanged.

Yes Bank acquires 12.79% in CG Power: Yes Bank has acquired 8,00,50,000 equity shares of CG Power and Industrial Solutions having nominal value of Rs 2 per share, constituting 12.79% of the paid-up share capital via invocation of pledge of shares of CG Power.

Market Opens: It is good start for the Indian indices on May 7 after a weak closing registered on May 6.

At 09:16 hrs IST, the Sensex is up 166.55 points at 38,766.89, while Nifty is up 44 points or 0.38% at 11642.30. About 454 shares have advanced, 188 shares declined, and 25 shares are unchanged.

Marico, Bharti Airtel, Yes Bank, HDFC Bank, Tata Steel, Vedanta, Tata Motors, IndusInd Bank, Britannia, SBI, Power Grid, are among major gainers on the indices, while lowers are ICICI Bank, IOC, ONGC, Indiabulls Housing, HPCL and BPCL

Among the sectors, except energy all other indices are trading higher.

Rupee Opens: The Indian rupee opened marginally higher at 69.37 per dollar on Tuesday versus previous close 69.40.

Market at pre-open: Benchmark indices are trading higher in the pre-opening session with Nifty above 11,650 level.

At 09:03 hrs IST, the Sensex is up 189.69 points or 0.49% at 38790.03, and the Nifty up 71.70 points or 0.62% at 11670.

Nomura on ICICI Bank

Buy call, raises target to Rs 500 from Rs 480 per share

PAT missed due to higher provisioning/ write-offs

Expect NIMs to inch up 10 bps in FY20

CLSA on ICICI Bank

Buy rating, target raised to Rs 500 from Rs 470 per share

Normalisation of credit costs to aid an earnings recovery

Expect slippage to stabilise around 2%

Morgan Stanley on ICICI Bank

Overweight call, target at Rs 530 per share

Control of funding cost helped boost NIM 25 bps QoQ

Aggressive write-offs sharply reduced stock of impaired loans

Macquarie on ICICI Bank

Retain outperform, target raised to Rs 465 from Rs 450 per share

Q4 PAT missed estimates on higher provisions, write-offs

PhillipCap on ICICI Bank

PAT behind expectations mainly due to higher provisioning

NII at Rs 7,620 crore better than estimate of Rs 7,170 crore on higher NIMs

NIM increased owing to interest on I-T refund & interest received on NPA A/Cs

Credit Suisse on ICICI Bank

Outperform call, target at Rs 465 per share

Well positioned to sustain pick-up in loan growth

Expect RoEs to improve to 14% In FY20

Deutsche Bank on ICICI Bank

Buy call, target at Rs 500 per share

Path of recovery getting stronger; better visibility for >15% RoEs

Expect better growth, higher NIMs & lower credit costs in FY21

Morgan Stanley on Bharti Airtel

Q4 numbers marginally better than our forecasts

Profitability improved in India wireless & Africa

Weakness in enterprise & homes dragged cons profitability

CLSA on Marico

Buy rating, target at Rs 465 per share

8% domestic volume growth with an eight-quarter high gross margin

Q4 performance stood out in every aspect vis-a-vis most peers

Macquarie on Marico

Maintain outperform, target raised to Rs 412 from Rs 394 per share

EBITDA miss mainly on account of higher investments in A&P & higher promotions

Cut earnings on account of lower pricing growth & higher A&P spend

Morgan Stanley on Marico

Upgrade to overweight, target at Rs 410 per share

Forecast 17% FY19-21 earnings CAGR

Expect a calibrated stock re-rating regardless of election outcome

Jefferies on Marico

Hold rating, target at Rs 380 per share

Reported earnings below estimates but qualitatively not as bad

Margin miss was due to higher ad spend to support new launches

CLSA on Gujarat Gas

Buy rating, target raised to Rs 195 from Rs 150 per share

Miss on EBITDA but volume jump after court order drives upgrade

Jefferies on Gujarat Gas

Buy rating, target at Rs 185 per share

EBITDA miss on lower than expected margin

Outlook is strong with Morbi volumes now at 4.5 mmscm

Asian markets trade lower: Asian shares wallowed near five-week lows on early Tuesday after U.S. President Donald Trump's threat to raise tariffs re-ignited worries about U.S.-China trade tensions while Japan's Nikkei opened down after a 10-day break.

SGX Nifty: Trends on SGX Nifty indicate a positive start for the broader indices in India, a gain of 35 points or 40.50 percent. Nifty futures were trading around 11,697-level on the Singaporean Exchange.

Wall Street ends lower: US stocks fell on Monday after President Donald Trump threatened to raise tariffs on Chinese goods, though they pared much of their early losses as healthcare shares rose and some investors remained confident of an eventual trade agreement.