Sensex, Nifty End Near Three-Month Highs Led By IT Stocks

• Merck: The Mumbai-based drug maker rose as much as 11.51 percent to record high of Rs 2,122 after it reported March quarter earnings. Its net profit rose 53 percent to Rs 22.7 crore.
• Kalpataru Power: The Mumbai-based transmission tower maker rose as much as 4.15 percent to Rs 489.90 after it won orders worth Rs 1,463 crore from Power Grid, GAIL, IOC and others.
• Indiabulls Ventures: The Delhi-based stock broking firm rose as much as 8.89 percent to record high of Rs 489.80. The company's board will meet on May 4 to consider and approve preferential issue of equity shares to certain foreign investors, Indiabulls Ventures said in an exchange filing.
• KPIT Tech: The Pune-based software developer rose as much as 4.8 percent to record high of Rs 259.80. Trading volume was 1.8 times its 20-day average.

Shares of the country's largest mortgage lender rose as much as 2 percent to Rs 1,891.55 after its nrt profit beat Bloomberg consensus estimates in March quarter.

Key earnings highlights:

• Net profit up 39 percent at Rs 2,846.22 crore versus Rs 2,044.20 crore (YoY)
• Net profit at Rs 2,846.22 crore versus Bloomberg estimate of Rs 2,550 crore
• Net interest income up 12 percent at Rs 3,617 crore versus Rs 3,215.5 crore (YoY)
• Revenue up 10.3 percent at Rs 9,327.8 crore versus Rs 8,453.4 crore (YoY)
• HDFC Q4 provisions for bad loans at Rs 180 crore versus Rs 148 crore (YoY); Rs 95 crore (QoQ)
• Board approves raising up to Rs 85,000 crore via NCDs on private placement basis
• Announces final dividend of Rs 16.5 per share

In Charts: How This April Has Been Unique For Markets (And Why)

Key highlights from the conversation:

• Expect RBI to start rate hikes next year, but MPC May move earlier.
• Upside risk to inflation from oil prices, MSP uncertainties.
• Expect inflation at 4.9 percent at the end of this fiscal year.
• Expect growth to pick up to 7.3 percent this fiscal and 7.5 percent in the next.
• Reserve buffers are strong in India at 8.3 months of current account deficit.
• Foreign inflows not large enough to bridge current account gap.
• Government has liberalised administrative fuel prices quite a bit.
• Haven't hiked govt revenue estimates substantially, increase will be gradual.
• More tax compliance expected due to GST implementation.
• Government’s track record on FRBM act implementation hasn't been great since 2008.
• Median debt level for countries rated 'BBB' at 41 percent of GDP.
• Expect debt level to be close to 69 percent of GDP next year.
• Government finances the 'achilles heel' in India's sovereign credit profile.

Shares of the Mumbai-based mortgage lender rose 1 percent to Rs 640.80 after it reported March quarter earnings.

Key earnings highlights:

• Net profit up 41 percent at Rs 312.40 crore versus Rs 221.76 crore (YoY)
• Net profit at Rs 312.40 crore versus Rs Bloomberg estimate of Rs 322 crore
• Revenue rose 18 percent to Rs 2,801.93 crore versus Rs 2,375.36 crore (YoY)
• DHFL to raise up to Rs 15,000 crore via public bond sale
• Declares dividend of Rs 2.5 per share

Shares of the country's second largest lender by market cap extended gains and rose 2.38 percent to Rs 1,217 after it reported stable asset quality in March quarter.

Key earnings highlights:

• Net interest income up 19.4 percent at Rs 2,580 crore versus Rs 2,161 crore (YoY)
• Net profit up 15 percent Rs 1,124 crore versus Rs 976.48 crore (YoY)
• Net interest margins (NIMs) at 4.35 percent versus 4.63 percent (YoY)
• Gross non-performing assets as a percentage of total advances at 2.22 percent versus 2.31 percent (QoQ)
• Board re-designates Uday Kotak as MD and CEO
• Board declares dividend of 70 paise per share

Shares of the country's largest mortgage lender rose as much as 1.95 percent to Rs 1,889.85 ahead of its March quarter earnings.

Below are Bloomberg consensus estimates for March quarter:

• Net profit is expected at Rs 2,551 crore versus Rs 5,670 crore (QoQ)
• Net interest income is expected at Rs 3,776 crore versus Rs 2,929 crore (QoQ)

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Shares of the Delhi-based steel maker rose as much as 6.2 percent after its net profit rose over four times in March quarter.

Key earnings highlights:

Net profit jumps 343 percent to Rs 152.11 crore versus Rs 34.31 crore (YoY)

Revenue rose 33 percent to Rs 838.59 crore versus Rs 627.73 crore (YoY)

Shares of the Bangalore-based software developer rose as much as 11.65 percent to record high of Rs 960.

Trading volume was 4.6 times its 20- day average.

Shares of the Gujarat-based pigment and agro chemical maker rose as much as 6.63 percent to Rs 102.70.

Meghmani Organics' wholly owned subsidiary Meghmani Agrochemicals acquired International Finance Corporation's 24.97 percent stake in Meghmani Finechem, the company said in an exchange filing on Saturday.

Shares of the Bangalore-based mortgage lender fell as much as 6.7 percent, the most since April 2, to Rs 414.65 after its net profit declined in March quarter.

Key earnings highlights:

• Net profit down 7 percent at Rs 75.46 crore versus Rs 80.09 crore (QoQ)
• Revenue up 2 percent at Rs 399 crore versus Rs 392 crore
• Board recommends dividend of Rs 2 per share

Shares of the Mumbai-based fertiliser maker fell as much as 2.8 percent to Rs 733.05 after its net profit declined in March quarter.

Key earnings highlights:

• Revenue up 7 percent at Rs 5,691 crore versus Rs 5,341 crore
• EBITDA up 8 percent at Rs 1,218 crore versus Rs 1,126 crore
• Margins at 21.4 percent versus 21.1 percent
• Net profit down 1 percent at RS 736 crore versus Rs 741 crore

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It is too early to buy government-owned banks, said market veteran UR Bhat of Dalton Capital Advisors in an exclusive conversation to BloombergQuint.

Highlights of conversation

• FII outflow of nearly $1-billion will be absorbed by DIIs on a monthly basis
• Expect mid-cap IT to do better than large-cap
• Investors need to be mindful of government action in the liquor space

Shares of the Mukesh Ambani-led oil-to-telecom conglomerate fell as much as 1.69 percent to Rs 977.95.

Reliance Industries Ltd.’s net profit rose for the eighth straight quarter aided by the petrochemicals business but missed analyst estimates.

The company’s profit rose nearly 3 percent to Rs 8,697 crore as compared to the previous quarter, RIL said in a stock exchange filing. That fell short of the Bloomberg consensus estimate of Rs 8,923 crore.

The bottom line rose as operating profit from the petrochemicals business rose nearly 12 percent sequentially to Rs 6,435 crore due to higher output following capacity expansion and better pricing, the company said in a separate press release. Operating profit from the refining business fell 9 percent to Rs 5,607 crore as the company processed lower crude volumes at its refineries.

Shares of the country's third largest wireless carrier rose as much as 4.65 percent, the most in nearly four months, to Rs 72 after its loss narrowed in December-March quarter.

Key earnings highlights:

• Revenue down 6 percent to Rs 6,137 crore versus Rs 6510 crore
• EBITDA up 18 percent to Rs 1,447 crore versus Rs 1,224 crore
• EBITDA Margins at 23.6 percent versus Rs 18.8 percent
• Net loss at Rs 962 crore versus net loss of Rs 1,285 crore
• Other income up 6 times to Rs 250 crore versus Rs 42 crore

Here’s how foreign and local funds played the market last Friday.https://t.co/isT0D2hob1 pic.twitter.com/aoDBnHNMyU

— BloombergQuint (@BloombergQuint) April 30, 2018

Deutsche Bank on Reliance Industries

• Maintained ‘Buy’; hiked price target to Rs 1,180 from Rs 1,150
• March quarter reported strong earnings, led by a robust performance from petchem business.
• Lower throughput, lower GRMs and rupee appreciation impact refining business.
• Jio: Tariff competition impacts APRU; Jio to maintain focus on net adds.
• Expect Jio revenue ramp-up and contribution from core sector projects.

Edelweiss on Reliance Industries

• Maintained ‘Buy’; hiked price target to Rs 1,201 from Rs 1,174
• Reported in-line quarterly results during January-March period on consolidated basis.
• Retail and petchem delivered stellar performances led by volume-led growth.
• Refining: GRM lower than estimate; New projects to revive earnings.
• Expect Jio to be cost competitive and gain market share.

Motilal Oswal on Reliance Industries

• Maintained ‘Buy’ with a price target of Rs 1,150.
• Standalone operating income below estimates due to lower throughput.
• Net profit benefiting from higher other income and lower depreciation.
• Petchem drives standalone profitability.
• Robust volume growth and healthy deltas benefit petchem.
• Jio: Moderate growth pulled down by ARPU cuts.

Kotak on Maruti

• Maintained ‘Add’; cut price target to Rs 9,700 from Rs 10,000.
• Higher other expenses and increase in variable pay lead to slight miss.
• Cut operating income for the current and next financial year by 2-3 percent due to reduction in margin assumptions.
• Believe Maruti’s capacity will be booked for next three years.
• Expect volume to grow at 11 percent compounded over the next three years.

JP Morgan on Maruti

• Maintained ‘Overweight’ with a price target of Rs 10,200.
• March quarter net income was below expectations on lower EBIT margins.
• Higher commodity costs and Gujarat scale-up are headwinds to margins in the current financial year.
• Volume growth to be in double digits despite capacity constraints.
• Expect 12 percent volume growth for the current and next financial year.

CLSA on Maruti

• Maintained ‘Buy’ with a price target of Rs 11,300
• Good growth but margin miss in March quarter.
• Demand outlook remains strong.
• Cost pressures exists but Maruti has levers to offset.
• Cut earnings per share estimates for the current and the next financial year by 3 percent to factor in slightly lower margins.

CLSA on UPL

• Maintained ‘Buy’; cut price target to Rs 940 from Rs 960.
• Weak quarterly results with modest revenue growth across key markets.
• Revenue guidance for the current financial year of 10-12 percent; potential tailwind from stronger pricing.
• UPL to benefit from improving industry dynamics in 2018.
• Cut earnings per share for the current and the next financial year by 6-8 percent, owing to margin cut on increase in input prices.

Investec on UPL

• Maintained ‘Buy’; hiked price target to Rs 1,050 from Rs 975
• March quarter was Operationally in-line.
• Performance in the U.S. is encouraging.
• Control on working capital and reduced gearing are major positives.
• Expect 13 percent compounded growth rate in earnings per share over the fiscal 2018-2020 with Return on equity of 22 percent.

Nomura on Shriram Transport

• Maintained ‘Buy’; hiked price target to Rs 1,900 from Rs 1,750.
• March quarter reported operationally strong performance.
• Higher credit cost/coverage a small negative but conservative.
• Cyclically growth trends very strong; Asset quality trends to improve.
• Expect Shriram to deliver return on equities of 18-19 percent in the current and next financial year.

Morgan Stanley on Shriram Transport

• Maintained ‘Overweight’ with a price target of Rs 1,600
• March quarter reported good underlying numbers.
• Net profit impacted by one-off gains from sale of stake.
• Net profit ex-one-off gains missed due to additional provisions.
• Pre-provisioning operating profit growth strong at 24 percent.

HSBC on SBI Life

• Maintained ‘Buy’; hiked price target to Rs 840 from Rs 835.
• Reported good set of March 2018 full year results.
• SBI Life reported better persistency in all but the 61st month.
• Expect SBI Life to continue to gain market share.
• Focusing on more profitable products such as credit life.

JPMorgan on InterGlobe Aviation

• Maintained ‘Overweight’ with a price target of Rs 1,690.
• Aditya Ghosh to step down from the company.
• Believe operational disruption at IndiGo will be minimal.
• Await more details/clarification from the company.

Kotak Securities on Cummins India

• Maintained ‘Reduce’; cut price target to Rs 715 from Rs 855.
• Absence of drivers of bottom-line beyond market growth.
• Target multiple lowered due to multiple factors.
• Do not see any positive triggers to increase the multiple.
• Factors:- weak exports, margin pressure, competition and lack of clarity on business scope of unlisted sister concerns.

• Aditya Ghosh resigned as president and whole-time director of Interglobe Aviation
• Fortis board to consider all binding bids received on May 1
• Axis Bank board approves increasing borrowing limit to upto Rs 2 lakh crore
• Indian Oil to invest Rs 4,221 crore in Paradip petrochemical plant
• Wockhardt to consider fund raising in a meeting on May 4
• Jagran Prakashan to buyback upto 1.5 crore shares or 4.82 percent equity at Rs 195 per share
• Nitesh Estates says arbitral tribunal awarded Rs 42.50 crpre to subsidiary in a land dispute
• RBI says restriction on Tata Chemicals’ share purchase withdrawn. Foreign shareholding in Tata Chemicals below threshold
• Dilip Buildcon says it executed concession agreement with NHAI for orders worth Rs 917 crore
• PC Jeweller to consider buyback on May 25.

• HDFC
• Kotak Bank

Others

• Ceat
• Container Corp
• DHFL
• Hindustan Zinc
• Prakash Industries
• Som Distilleries

Reliance Industries Q4 (QoQ)

• Revenues up 15 percent at Rs 84,037 crore versus Rs 73,256 crore
• Net profit up 3 percent at Rs 8,697 crore versus Rs 8,454 crore
• EBITDA down 2 percent at Rs 13,425 crore versus Rs 13,744 crore
• Margins at 16 percent versus 18.8 percent
• Jio ARPU at Rs 137.1

Also Read: Reliance Industries Profit Misses Estimate In March Quarter

UPL Q4 (YoY)

• Revenue up 7 percent at Rs 5,691 crore versus Rs 5,341 crore
• EBITDA up 8 percent at Rs 1,218 crore versus Rs 1,126 crore
• Margins at 21.4 percent versus 21.1 percent
• Net profit down 1 percent at RS 736 crore versus Rs 741 crore

Shree Cement Q4FY18 (YoY)

• Revenue up 15.3 percent to Rs 2,811 crore versus Rs 2,439 crore
• Net profit up 31 percent to Rs 399 crore versus Rs 305 crore
• EBITDA up 11.5 percent to Rs 629 crore versus Rs 564 crore
• EBITDA Margins at 22.4 percent versus 23 percent

Equitas Q4 (YoY)

• Net Interest Income up 15 percent at Rs 279 crore versus Rs 242 crore
• Net profit up 400 percent at Rs 35 crore versus Rs 7 crore

IDFC Q4 (YoY)

• Net Interest Income down 7 percent at Rs 743.5 crore versus Rs 803 crore
• Net profit down 99 percent at Rs 1.6 crore versus Rs 135 crore

Shoppers Stop Q4 (YoY)

• Revenue down 7 percent at Rs 850 crore versus Rs 910 crore
• Net profit of Rs 21 crore versus net loss of Rs 36 crore
• EBITDA flat at Rs 52 crore
• Margins at 6.1 percent versus 5.7 percent

NELCO Q4 (YoY)

• Revenues up 5 percent at Rs 39 crore versus Rs 37 crore
• Net profit up 300 percent at Rs 4 crore versus Rs 1 crore
• EBITDA up 100 percent at Rs 8 crore versus Rs 4 crore
• Margins at 20.5 percent versus 10.8 percent

RBL Bank Q4 (YoY)

• NII up 42 percent at Rs 500 crore versus Rs 352 crore
• Net profit grew 37 percent to Rs 178 crore versus Rs 130 crore
• Provisions at Rs 113 crore versus Rs 82.3 crore (QoQ)
• Gross NPA at 1.40 percent versus 1.56 percent (QoQ)
• Net NPA at 0.78 percent versus 0.97 percent (QoQ)

Idea Cellular Q4 (QoQ)

• Revenue down 6 percent to Rs 6,137 crore versus Rs 6510 crore
• EBITDA up 18 percent to Rs 1,447 crore versus Rs 1,224 crore
• EBITDA Margins at 23.6 percent versus Rs 18.8 percent
• Net loss at Rs 962 crore versus net loss of Rs 1,285 crore
• Other income up 6 times to Rs 250 crore versus Rs 42 crore

Also Read: Idea Cellular Q4: Net Loss Narrows On Higher Margins, Other Income

Merck Q4 (YoY)

• Revenue up 27 percent to Rs 301 crore versus Rs 229 crore
• EBITDA up 84 percent to Rs 42 crore versus Rs 23 crore
• EBITDA Margins at 13.8 percent versus 9.9 percent
• Net profit up 53 percent to Rs 22.7 crore versus Rs 14.8 crore
• Exceptional gain of Rs 6.5 crore related to sale of office property in Mumbai in Q4FY18
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LG Balakrishnan Q4 (YoY)

• Revenue up 12 percent to Rs 342.5 crore versus Rs 306.5 crore
• EBITDA up 20 percent to Rs 49 crore versus Rs 41 crore
• EBITDA Margins at 14 percent versus 13.5 percent
• Net profit up 4 percent to Rs 22.7 crore versus Rs 21.9 crore

MCX Q4 (YoY)

• Revenue up 13 percent to Rs 70.6 crore versus Rs 62.6 crore
• EBITDA up 77 percent to Rs 23 crore versus Rs 13 crore
• EBITDA Margin at 32.5 percent versus 20.7 percent
• Net Profit up 56.5 percent to Rs 34.2 crore versus Rs 21.8 crore
• Tax expenses lower at 24.7 percent versus 32.7 percent
• Other Expenses down 19 percent to Rs 13.6 crore versus Rs 16.9 crore

Greenply Q4 (YoY)

• Revenue down 21.5 percent to Rs 339 crore versus Rs 432 crore
• EBITDA down 3 percent to Rs 54 crore versus Rs 55.6 crore
• EBITDA Margins at 16 percent versus 12.9 percent
• Net profit up 10 percent to Rs 34.3 crore versus Rs 31.2 crore

• Nifty May futures closed trading at 10,723.8 with premium of 31.8 points versus 14.7 points
• All series Nifty open interest (OI) up 4 percent, Bank Nifty OI up 19 percent
• India VIX ended at 12.01, down 0.17 percent
• Max OI for May series call at 11,000 strike price call option, OI at 51 lakh shares, up 16 percent
• Max OI for May series put shifts to 10,500 strike price put option, OI at 37.6 lakh shares, up 23 percent

• Pioneer Distilleries Ltd circuit filter revised to 10 percent
• 5Paisa Capital Limited, Kingfa Science & Technology, Vimta Labs last trading day under T group

Why India’s fuel prices are sky-high when oil isn’t?https://t.co/AhI9F7n7Yr pic.twitter.com/mDHVUbjZE2

— BloombergQuint (@BloombergQuint) April 30, 2018

These are some key events to watch this week:

• The Federal Open Market Committee begins a two-day meeting on Tuesday. Fed policy makers will probably keep their target rate for overnight bank lending in a range of 1.5 percent to 1.75 percent, economists forecast.
• It’s Golden Week in Japan, with public holidays Monday, Thursday and Friday. China is shut Monday and Tuesday.
• The Reserve Bank of Australia’s monetary policy decision is out Tuesday. The central bank is expected to keep rates on hold, as they’ve been for more than 1 1/2 years.
• The European Commission presents its spring economic forecasts, which include projections for growth, inflation, debt and deficit, and unveils its proposal for the EU’s seven-year budget framework on Wednesday.
• China manufacturing and services purchasing-manager indexes are due, starting Monday.
• Payroll gains in the U.S. probably picked up in April, with the unemployment rate forecast to drop to 4 percent, according to surveys of economists.
• Earnings season continues, with Apple Inc. headlining. Other high profile results include Pfizer Inc., Merck & Co., Cigna Corp., HSBC Holdings Inc., BNP Paribas SA, Standard Chartered Plc, Tesla Inc., BP Plc, McDonald’s Corp. and Adidas AG.

Commodities

• West Texas Intermediate crude lost 0.1 percent to $68.02 a barrel.
• Gold rose 0.1 percent to $1,324.85 an ounce.