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Sensex, Nifty End At Two-Month High Led By IndusInd Bank, M&M

Sensex, Nifty End At Two-Month High Led By IndusInd Bank, M&M
A trader points at financial data on a computer screen inside the Frankfurt Stock Exchange. (Photographer: Alex Kraus/Bloomberg)
8 years ago
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India fell 0.4 percent to 10,560 as of 6:43 a.m.

  • Coal India likely to plan Rs 6,500 crore provision for gratuity payout. Stock down 0.7 percent.
  • Source: Bloomberg

Sasken Tech: The Bangalore-based software developer rose as much as 20 percent to record high of Rs 904 after it reported strong March quarter earnings.

  • Revenues down 2.4 percent at Rs 128.7 crore versus Rs 131.9 crore.
  • Net profit up 27.5 percent at Rs 26 crore versus Rs 20.4 crore.
  • EBIT up 31 percent at Rs 21.5 crore versus Rs 16.4 crore.
  • Margins at 16.7 percent versus 12.4 percent.

Indian Hume Pipe: The Mumbai-based pipe maker rose as much as 9.55 percent, the most in nearly a month, to Rs 375 after it bagged Rs 578.50 crore order from Madhya Pradesh Jal Nigam Maryadit.

Unichem Labs: The Mumbai-based drug maker rose as much as 8.7 percent, the most in over three months, to Rs 283.10 after the U.S. FDA completed inspection of its Ghaziabad unit without any observations.

Minda Corp: The Noida-based electrical equipment maker rose as much as 18 percent to Rs 207.60. As many as 23.6 lakh shares or 1.1 percent equity changed hands in a block, Bloomberg data showed.

  • ITC: About 10 lakh shares change hands in a block deal.
  • Buyers and sellers were not known immediately.

    Source: Bloomberg

Shares of the pharmaceutical company rose as much as 8.2 percent, the most in over two months, to Rs 827.30.

Well-known investor Rakesh JhunJhunwala owned about 1.26 percent stake in the company, according to its stock exchange notification.

Jubilant Life Sciences trades at 21.7 times trailing 12-month earnings per share and 18 times its estimates for the coming year, Bloomberg data showed.

Has an invisible hand stepped in to support the Indian sovereign bond market? Traders are abuzz with speculation over the identity of the buyer or buyers behind the $862 million of purchases Friday. (Click here to read more.)

Shares of electrical equipment maker rose as much as 18.1 percent, the most in over seven months to Rs 207.60 after about 23.6 lakh shares or 1.1 percent equity changed hands in a block, Bloomberg data showed.

Buyers and sellers were not known immediately. Trading volume was 77.9 times its 20-day average. The stock rose 16 percent in the past month, compared to 1.8 percent gain in Sensex.

  • Astra Microwave: About 31 lakh shares or 3.6 percent equity change hands in a block deal.
  • Buyers and sellers were not known immediately

    Source: Bloomberg

Shares of the Ahmedabad-based agricultural processed products maker rose as much as 3.87 percent to record high of Rs 286.95.

The company informed exchanges that it has started commercial production at its 1,000 million tonnes per day green field maize processing plant at Chalisgaon in Maharashtra.

  • Tata Investment Corp: The Mumbai-based institutional brokerage firm rose 3 percent to Rs 853. Trading volume was 32.8 times its 20-day average.
  • Minda Corp: The Noida-based electrical equipment maker rose 9.8 percent to Rs 193.10. Trading volume was 60.2 times its 20-day average. Meanwhile, the company has organised a plant visit for investors at its Pune plant.
  • SML Isuzu: The Chandigarh-based commercial vehicle maker rose 8 percent to Rs 897. Trading volume was 11.2 times its 20-day average.
  • Thomas Cook India: The Mumbai-based leisure and travel company rose 3.11 percent to record high of Rs 286.20. Trading volume was 6.6 times its 20-day average.

Shares of the Mumbai-based drug maker rose as much as 1.6 percent to Rs 812.85 after it received U.S. drug regulator's approval for generic Xenazine 12.5 mg and 25 mg tablets, Lupin said in an exchange filing.

The drug is used in treatment of Huntington's Disease.

Shares of the Mumbai-based drug maker rose as much as 14.67 percent to record high of Rs 2,020 after it informed exchanges that Procter & Gamble has proposed to buy 8.5 million shares of the company or 51.8 percent equity in the company, Merck said in an exchange filing on Thursday.

  • India's crude oil imports rose 2.9 percent (YoY) to 18.7 million tonnes in March.
  • Source: Bloomberg

Shares of Bhushan Steel fell as much as 7.9 percent to Rs 33.20 after NCLT allowed Liberty House to bid for Bhushan Power.

  • NCLT asked Bhushan Power lenders to finalise to consider Liberty House bid
  • NCLT asked lenders to finalise Bhushan Power resolution by June 23

Source: Bloomberg

Shares of the pipe manufacturer rose as much as 9.6 percent to Rs 375.

The company bagged Rs 578.50 crore order from Madhya Pradesh Jal Nigam Maryadit, according to its stock exchange notification.

Shares of the drug maker fell as much as 2.9 percent to Rs 572.15.

The pharmaceutical company received three observations from the U.S. drug regulator for its Pithampur unit, according to its exchange filing.

Cipla trades at 45.7 times trailing 12-month earnings per share and 28 times its estimates for the coming year. The stock has declined 6 percent so far this year.

Walmart will take stake of 60-80 percent in India’s biggest e-commerce company with all existing investors backing the deal, people familiar with the matter said.

  • SoftBank, which owns more than 20 percent of Flipkart, plans to sell a substantial part to Walmart, the people said, asking not to be identified ahead of a public announcement
  • Tiger will sell nearly all its shares, the people said
  • Valuation on Flipkart remains at about $20 billion, the people said
  • Walmart declined to comment while Flipkart didn’t immediately comment
  • Issues yet to be resolved include role of founders and the exact amount each investor will sell, the people said

Source: Bloomberg

  • Idea Cellular has 19.6 lakh shares change hands in a block on BSE. Stock up 1.27 percent at Rs 71.75.
  • Buyers and sellers were not immediately known

    Source: Bloomberg

Shares of the Bhopal-based road developer rose as much as 2.9 percent to Rs 1,162 after homegrown brokerage — Kotak Securities initiated coverage on the stock with a 'buy' for a target price of Rs 1,365 per share.

Kotak Securities on a note said:

  • Well-placed to leverage growing EPC opportunity in roads and beyond.
  • Expect compounded growth rate of 8 percent in order inflow over the fiscal 2018-2022.
  • Bharatmala to offer EPC opportunity of Rs 3.3 lakh crore in the next few years.
  • Market share in NHAI ordering to improve to 17 percent by March 2022, compared to 15 percent clocked in the previous financial year.
  • Healthy backlog and reasonable cash flow to service debt.
  • Expect revenue, operating income and net profit to compound at 26 percent, 27 percent and 28 percent respectively through the financial years till March 2022.

Kotak Securities on Dilip Buildcon

  • Initiated ‘Buy’ with a price target of Rs 1,365.
  • Well-placed to leverage growing EPC opportunity in roads and beyond.
  • Expect compounded growth rate of 8 percent in order inflow over the fiscal 2018-2022.
  • Bharatmala to offer EPC opportunity of Rs 3.3 lakh crore in the next few years.
  • Market share in NHAI ordering to improve to 17 percent by March 2022, compared to 15 percent clocked in the previous financial year.
  • Healthy backlog and reasonable cash flow to service debt.
  • Expect revenue, operating income and net profit to compound at 26 percent, 27 percent and 28 percent respectively through the financial years till March 2022.

CLSA on Ashok Leyland

  • Maintained ‘Buy’; raised price target to Rs 185 from Rs 145.
  • Commendable market-share defence in crucial previous fiscal.
  • Commercial vehicle cycle surprising positively; raise current fiscal’s industry growth estimates to 13 percent.
  • Expect strong 23 percent compounded growth rate in earnings per share over the next two years
  • Expensive valuations justified.

CLSA on HDFC Bank

  • Maintained ‘Buy’; raised price target to Rs 2,470 from Rs 2,340.
  • Key positive: 25 percent growth in operating profit.
  • Asset quality stable, but unsecured loans rising fast.
  • Subsidiaries scaling up well.
  • Expect 21 percent compounded growth rate in earnings over the fiscal 2018-2021.

MOSL on HDFC Bank

  • Maintained ‘Buy’ with a price target of Rs 2,400
  • March quarter remained steady; fee growth surprises positively.
  • Retail loan growth remains healthy.
  • Asset quality stable; Provisions coverage ratio improved to 70 percent.
  • Expect market share to increase and RoEs to remain best.

CLSA on Indiabulls Housing

  • Maintained ‘Buy’; raised price target to Rs 1,650 from Rs 1,620.
  • Tad disappointed by compression in spreads.
  • Stability in spreads will be key.
  • Housing segment drives loan growth.
  • Asset quality stable.
  • Expect 22 percent compounded growth rate in profits over the fiscal 2018-2021.

Macquarie on Indiabulls Housing Finance

  • Maintained ‘Outperform’ with a price target of Rs 1,599.
  • Loan growth much ahead of peers.
  • Loan growth led by home loans and corporate.
  • Rate hikes, increased securitization to aid margins.
  • Expect strong loan growth, steady spreads and high return ratios.

CLSA on India Strategy

  • NPL resolution process well underway.
  • Legal delays the possible risk in NPL resolution.
  • Multi-pronged approach to improve farm incomes.
  • Increase of above 10 percent in MSP appears to be a done deal now.
  • Oil at a tipping point; remains the main worry.
  • Legal issues restrict UID, but subsidy savings continue to rise.

  • Cipla's Pithampur Plant gets 3 observations from U.S. FDA (Bloomberg)
  • Unichem Labs: U.S. FDA concludes inspection of Ghaziabad facility with no observation
  • Coal India plans 41.5 million tonnes forward coal auctions in FY19 (Bloomberg)
  • Axis Bank commenced succession process for new CEO & MD, appoints Egon Zehnder to succession conduct process
  • SJVN signs accord with power ministry; Aims to achieve 9,200 million units in FY19
  • RIL says not aware of any further investigation undertaken by IT Dept into Rs 6,500 crore FDI by Biometrix in RIL group entities
  • Adani Enterprises forms a JV with Prakash Asphaltings for Bilaspur Pathrapali Road Pvt Ltd (SPRPL) in the ratio of 74:26.
  • Indian Hume Pipe Company secures Rs 578.50 crore order from Madhya Pradesh Jal Nigam Maryadit
  • Kitex Garments board to meet on April 25 to consider proposal for further investments
  • India Ratings upgrades HEG's long-term issuer rating to 'IND AA' from 'IND A+'. The outlook is stable
  • Orchid Pharma says committee of creditors have rejected all three bids for the company
  • Morepen Labs appeals in NCLAT against order passed by NCLT, Chandigarh bench
  • Electrosteel Steels says steering committee set up as per resolution plan
  • Nagarjuna Oil Corporation lenders decide the company to go for liquidation

  • Bharti Infratel
  • Others

    • Bharat Financial Inclusion
    • Cholamandalam Investment
    • Delta Corp
    • GNFC
    • Indiabulls Ventures
    • LIC Housing Finance
    • Reliance Infrastructure
    • Reliance Naval and Engineering
    • 3i Infotech
    • Foseco India
    • Kewal Kiran Clothing
    • Swaraj Engines

Indiabulls Housing Finance Q4 Profit Jumps 22.5%

Trading Tweaks
  • Avenue Supermarts, CL Educate and Shankara Building Products dropped from S&P BSE IPO Index.
  • Omkar Speciality Chemicals is placed under Additional Surveillance Measure
  • Monnet Ispat & Energy circuit filter revised to 5 percent
  • Phillips Carbon Black FII / MF limit increases to 8 lakh shares versus 1.6 lakh shares earlier
  • Mangalam Organics buy back from 23 April to 8 May
  • Sona Koyo Steering Systems Ltd.’s name has been changed to JTEKT India Ltd.

L&T Infotech

  • L&T sells 10 lakh shares or 0.58 percent equity at Rs 1,399 each.

Ajmera Realty

  • Promoter Rajnikant Ajmera sold 5 lakh shares or 1.4 percent equity at Rs 277.2 each.

Moldtek Technologies

  • AKG Finvest sold 3 lakh shares or 1.1 percent equity at Rs 49.87 each.

Scandals, Bad Debts at India Banks Threaten Economic Outlook

These are some important events coming up this week:

  • Japan manufacturing flash PMI data.
  • French President Emmanuel Macron begins a three-day visit to the U.S. Monday.
  • U.S. manufacturing and services sector PMIs. Later this week’s GDP and jobless claims.
  • Earnings season continues. Among those reporting: Alphabet/Google, Microsoft, Amazon.com, Twitter, Samsung, Facebook,SAP,Sony, Caterpillar, Halliburton, Airbus, Daimler, Honda, Deutsche Bank, Barclays, Credit Suisse, UBS, Visa, Nomura, Bank of China, Vale, Statoil, Royal Dutch Shell, Barrick Gold, Total, Exxon Mobil and Chevron.
  • European Central Bank rate decision on Thursday. While no change to interest rates or the pace of asset purchases is expected, investors will watch for any sign that officials are preparing a shift in stimulus plans for their June meeting.
  • Bank of Japan announces its latest policy decision Friday and releases a quarterly outlook report.

Commodities

  • West Texas Intermediate crude dropped 0.2 percent to $68.24 a barrel.
  • Gold lost 0.3 percent to $1,332.82 an ounce.

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