Closing Bell
Indian shares fell on the final day of April derivative expiry, as investors took a breather following record highs the previous day.
The S&P BSE Sensex shed 0.34 percent to end at 30,029, while the NSE Nifty declined 0.10 percent at 9,342. Trading was volatile as investors rolled over positions to the next month.
Among the sectoral indices, S&P BSE Metal index fell 1 percent while the S&P BSE Realty index gained 0.7 percent.
The market breadth was skewed in the favour of losers, with about 5 stocks declining to every 4 stocks that advanced.
Overseas Inflows Key
"Local investors are pumping-in money while foreign investors continue to sell. Unless foreign institutional investors resume buying across emerging markets, especially India, any substantial rise will be difficult to come by," said Deepak Jasani, head - retail research at HDFC Securities.
Global funds sold Rs 493 crore of local stocks while domestic funds bought Rs 1,010 crore on Wednesday, as per exchange data.
Block Deal Alert
- ITC Ltd. has 19.8 lakh shares change hands in a single block
- Oberoi Realty has 23 lakh shares change hands in two block deals
*Buyers and sellers were not immediately known
Kotak Mahindra Rebounds After Q4 Profit Beat
- Q4 net profit Rs 976 crore vs estimate Rs 973 crore
- Shares gain 1% to Rs 909, recovering from earlier falls of 0.8%
TVS Motor Q4 Beats Estimate
- Q4 net income Rs 127 crore vs estimate Rs 109 crore
- Q4 revenue Rs 3,140 crore vs estimate Rs 2,930 crore
- Shares down 2% to Rs 491
BQSpotted: Sasken Jumps To Near Decade High
- Sasken Technologies rose as much as 17.7% to the highest level since July 2007
- Trading volumes stood at 41 times its 20-day average
- The application software maker has a market cap of just under Rs 800 crore
Maruti Suzuki Q4 Profit Meets Estimate
- Q4 net profit Rs 1709 crore vs estimate Rs 1770 crore
- Q4 revenue Rs 21,200 crore vs estimate Rs 18,440 crore
- Declares dividend of Rs 75 a share
- Shares down 0.5% to Rs 6,376
Market Check
- Nifty -0.02% at 9,350; Sensex -0.1% at 30,105
- Axis Bank -2.1%; Tata Motors +2%
- S&P BSE Auto index +0.54%, S&P BSE Consumer Durables +0.68%
May Could Be Choppy For Major Indices, Says Prabhudas Liladher's Vora
European Indices Drop
NBCC India Hits Record High
Shares of the state-owned construction company jumped as much as 3.8 percent to a record high of Rs 201.
NBCC has initiated the process to dispose off the land and other immovable assets of sick central public sector enterprises, it said in a regulatory filing.
Relative strength index at 75, indicating that the stock may be overbought.
IPO Update: S Chand & Co.
- IPO fully subscribed on day 2
- IPO gets 114% demand for shares offered at 11:30am
Market Check
- Nifty -0.03% at 9,349; Sensex -0.11% at 30,100
- Lupin -1.6%; Yes Bank +2.2%
- S&P BSE Information Technology index +0.6%, recovering from a 1% fall in the previous session
Maruti Suzuki Options Volume Rise Ahead Of Results
- Total open interest at 15,800 vs 20-day average of 13,000
- Maruti Suzuki shares are up for three straight sessions
- Automaker will report March-quarter results later today
F&O Watch: Nifty Rollover Lower Vs Three-Month Average
Nifty rollover stood at 50.1 percent on Wednesday, lower than the three-month average of 55.6 percent, according to the NSE data.
Market wide rollover of 57.1 percent was lower than the three-month average of 60.3 percent.
April futures and options series will expire later today.
Autos Extend Rally Ahead Of Key Earnings
BOJ Cuts Inflation Forecast While Keeping Stimulus Unchanged
Asian stocks were mostly lower after a five-day rally as the Bank of Japan cut its inflation forecast while keeping stimulus unchanged.
The BOJ kept its policy settings unchanged, while lowering its inflation forecast, underscoring that any exit from its unprecedented monetary easing remains far away. Governor Haruhiko Kuroda said last week that the accommodative policy and asset purchases will continue for some time because inflation is "quite sluggish."
To read more on BOJ’s policy, click right HERE
Axis Bank Drops On Asset Quality Woes
- Shares down as much as 2.7% to Rs 503, lowest since March 21
- Q4 profit beat estimates, but asset stress seen remaining elevated: analysts
- Slippages continued to accrue from a watch list of loans that the bank expects could turn bad
- Stock one of the top losers on the Nifty Bank index, which is down 0.14%
Market Check
- Nifty -0.16% at 9,337; Sensex -0.21% at 30,071
- Hindalco Industries -1.5%; Axis Bank -1.4%
- S&P BSE Metal index 0.5%, S&P BSE Realty index -0.45%
Block Deal Alert
- IDFC Bank has 30 lakh shares change hands in single block
- Stock up 0.4%
*Buyers and sellers were not immediately known
Adani Group Stocks Gain
- Adani Enterprises (+5.7%)
- Adani Transmissions (+1.5%)
- Adani Ports & SEZ (+1.3%)
- Adani Power (+2.9%)
Jubilant Life Sciences Falls On NGT Order
Shares of pharmaceutical firm fell as much as 2.9 percent to Rs 760, lowest since March 10.
The National Green Tribunal ordered company’s 13 industrial units situated near the river Bagad to immediately cease operations, it said in a regulatory filing.
Stock trading at an unusually low 24 percent discount vs peers: Bloomberg data.
Cadila Healthcare Gains On FDA Nod
Shares of drugmaker rose as much as 1.8 percent to Rs 463, most since March 23.
Zydus gets final approval from the U.S. Food & Drug Administration to market cholestyramine, used to lower cholesterol levels in the blood, for oral suspension.
Volume at 1.7 times its 30-day average.
Earnings Reaction
- Foseco India: (-3.8%): Q1 net income Rs 7.2 crore vs Rs 8.4 crore last year
- GIC Housing (+2%): Q4 net income up 30% to Rs 46.6 crore
- Lakshmi Vilas Bank (-3.3%): Q4 net income Rs 52.6 crore vs estimate Rs 65.8 crore
- Tata Sponge (+2.3%): Q4 net income Rs 21.2 crore vs estimate Rs 13.1 crore
Opening Bell
Indian shares swung between gains and losses on Thursday after hitting record highs in the previous session, as investors rolled over their position on the final day of the April futures and options expiry.
The S&P BSE Sensex fell 0.09 percent to 30,109, while the NSE Nifty edged down 0.16 percent at 9,336. The rupee opened firm at 64.05 per U.S. dollar compared with its close at 64.11 on Wednesday.
Among the sectoral indices, S&P BSE Metal and S&P BSE Bankex fell 0.13 percent and 0.19 percent, respectively. S&P BSE Realty index gained 0.9 percent.
The market breadth was skewed in the favour of gainers, with about 6 stocks advancing to every 2 stocks that declined.
5 Things To Watch
Bank of Japan Maintains Policy Rate
- FY2018 core CPI forecast is 1.7%
- FY2017 GDP forecast is 1.6%
Stocks To Watch
- Reliance Industries: Partners with Resysta International for wood alternative product in India.
- Videocon Industries: Denies that it is looking to exit the general insurance joint venture with Liberty Mutual.
- Future Enterprises: Allots non-convertible debentures worth Rs 45 crore.
- Precision Camshafts: To invest about Rs 14 crore in unit PCL (International) Holding B.V.
- Delta Corp: Swiss Finance Corp. buys 18.49 lakh shares at Rs 172.16 per share.
- Tube Investments: Completes redemption of 9.99 percent debentures.
- Cadilla Healthcare: Receives U.S. FDA approval to market Cholestyramine.
For a complete list of stocks, click HERE
Brokerage Calls
- LIC Housing Finance: Cut to neutral from outperform at Macquarie; target price Rs 685
- Persistent Systems: Raised to buy from hold at SBI Capital; target price Rs 685
- Hindustan Unilever: Raised to buy from hold at Axis Capital; target price Rs 1,010
- SRF Ltd: Citi initiates coverage with a buy, price target Rs 2,130
Money Market Heads-Up
The rupee, which rose to the highest since August 2015 in yesterday's session, may see some pullback on Thursday after the dollar gained overnight.
The greenback rose as tax-reform package unveiled by the U.S. government lacked details. It will also be interesting to watch if the RBI intervenes in the forex market to cap the currency's rally.
On bonds, traders are keenly watching out for the weekly auction. Some expect the current 10-year benchmark to devolve at the auction as traders await a new paper.
Talking Points
- India supports expanded role for Russia in global affairs: Jaitley
- Top rupee forecaster sees rally stalling as India inflows slow
- India forwards drop as investors reposition EM risk: Asian NDFs
- RBI proposes new forex management rules for cross-border M&As
- SEBI to ask government to amend rules for commodity options: Tyagi
- SEBI allows NBFCs to participate in QIPs, IPOs under QIB category
- There are limits to EM currency appreciation, warns SocGen
- India NSE’s IPO to take time on co-location issue: SEBI
- Tight India sugar stockpile to sustain prices in near term: ICRA
- Sri Lanka seeks deal with Japan, India for LNG terminal, plants
- Global funds sold Rs 493 crore of local stocks; domestic funds Rs 1,010 crore on Wednesday: Provisional data
Good Morning!
The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, fell 0.17 percent to 9,330.
Asian shares edged lower in early trade, after President Donald Trump’s much-anticipated tax plan failed to lift investor sentiment. Trump proposed slashing tax rates for businesses to 15 percent from the current 35 percent, but he failed to offer specifics on how the plan would be paid for.
Market reaction to the tax plan was subdued as much of the benefits of the proposal were already priced in. The S&P 500 Index closed marginally lower after two sessions of gains, while the Nasdaq Composite Index was unchanged above the 6,000-mark.
Investors seeking new triggers are now shifting focus towards policy decision from the European Central Bank later in the day. The focus will be on any signals from President Mario Draghi that the central bank is debating an exit from its extraordinary stimulus.
U.S. gross domestic product data due Friday is projected to show the economy expanded at a 1 percent annualised rate in the first quarter.
Oil fell to $49 a barrel after data showed U.S. crude stockpiles expanded, raising concerns of a global supply glut.
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