Sensex, Nifty Halt Longest Weekly Rally In Three Months

Hexaware Technologies

• Stock fell as much as 16 percent to Rs 381.
• Trading volume was 9.2 times its 20-day average.

PC Jeweller

• Stock fell as much as 49 percent to Rs 18.70.
• Trading volume was 5.4 times its 20-day average.

Varun Beverages

• Stock rose as much as 6.8 percent to Rs 727.70.
• Trading volume was 6.2 times its 20-day average.

Carborundum Universal

• Stock rose a smuch as 5.7 percent to Rs 383.70.
• Trading volume was 6.1 times its 20-day average.

JSW Energy

• Stock fell as much as 8.6 percent to Rs 74.80
• Trading volume was 3.9 times its 20-day average.

L&T Finance Holdings

• Stock rose as much as 5 percent to Rs 180.40.
• Trading volume was 3.7 times its 20-day average.

Key highlights from the conversation:

• Steady improvement in margins due to increased proportion of revenue from digital services.
• BFSI segment grew 5.4 percent (QoQ), contributing to 44 percent of revenue.
• Margin improvement to continue going forward.
• BFSI business will continue to do well in future.
• Demand environment remains very strong for company.

Shares of Ambuja Cements erased gains and fell as much as 2.7 percent to Rs 233.40. The stock fell 14.4 percent between January and March. The company's profit during March quarter rose 10 percent on a yearly basis, but missed the street estimates.

Key earnings highlights (Q1, CY18) :

• Net profit up 10.2 percent at 271.7 crore.
• Revenue up 11.9 percent at 2,862.6 crore.
• Ebitda up 28.7 percent at 507.3 crore.
• Margin at 17.7 percent versus 15.4 percent.

Shares of the stock exchange platform fell as much as 1.4 percent to Rs 1.4 percent to Rs 806 after the company's profit in March quarter missed estimates on the one-time loss.

Key earnings highlights (Q4, YoY):

• Net profit 3.3 percent at Rs 62 crore.
• Revenue up 5.2 percent at Rs 183 crore.
• One-time loss of Rs 1.3 crore.

Key highlights from the conversation:

• Targeting higher sales from OEMs.
• Input costs have gone up, will be able to pass on to the customer.
• Margins are better in exports market between 18-20 percent.
• Expect 20 percent growth in base case.

The Securities and Exchange Board of India (SEBI) has kept HDFC Asset Management Company's proposed IPO in abeyance "for examination of past violations", the latest update showed, according to a PTI report. The market regulator, however, did not clarify further, it added.

Shares of the information technology company swung between gains and losses and traded at Rs 1,062 apiece after the company's profit during March quarter.

Key earnings highlights (Q4, QoQ):

• Net profit up 13.8 percent at Rs 86 crore (Est: Rs 80.9 crore).
• Revenue up 4.3 percent at Rs 788.8 crore.
• EBIT up 21.7 percent at Rs 114.5 crore.
• Margin at 14.5 percent versus 12.4 percent.

Shares of the state-run lender rose as much as 11.8 percent, the most in over six months to Rs 15.15. The bank's profit narrowed to Rs 113.5 crore from Rs 455.4 crore, clocked during the year-ago period, according to its stock exchange filing.

Key earnings highlights (Q4, YoY):

• Net loss at Rs 113.5 crore versus net loss of Rs 455.4 crore.
• NII up 15 percent at Rs 881.4 crore.
• Provisions at Rs 2,040 crore versus 1,474 corre (QoQ).
• Gross NPA at 19.4 percent versus 19.05 percent (QoQ).
• Net NPA at 11.2 percent versus 12.07 percent (QoQ).

Philips Carbon Black Ltd. snapped two-day decline and rose as much as 4.8 percent at Rs 264.50. The company’s profit jumped 162.5 percent on a yearly basis during March quarter, according to its stock exchange filing.

Key earnings highlights (Q4, YoY):

• Net Profit up 162.5 percent at Rs 74.3 crore.
• Revenue up 36.9 percent at Rs 753 crore.
• Ebitda up 22.9 percent at Rs 102 crore.
• Margin at 13.5 percent versus 15.1 percent.

Shares of the multiplex operator swung between gains and losses and traded at Rs 1,428 as of 1:30 p.m. The company returned to profit during the quarter ended March, according to its stock exchange notification.

Key earnings highlights (Q4, YoY)

• Net Profit at Rs 26.2 crore versus net loss of Rs 5 lakh.
• Revenue up 21.2 percent at Rs 584.9 crore.
• Ebitda up 102 percent at Rs 94.4 crore.
• Margin at 16.2 percent versus 9.7 percent.

Key highlights from the conversation:

• Expect to ramp-up our alumina refinery this year.
• The company will use high-quality bauxite from Odisha this year.
• Expect to improve our power plant and coal efficiency this year.
• The cost of production will reduce in 2018-19.
• We are targeting cost production of $150/tonne.
• For overall value creation, we are working on sales realisation.
• Will improve our valued-added products percentage.
• We are developing new mine for pre-stripping.
• Iron ore business in Karnataka has improved.
• Expect volumes to improve in Karnataka.

Key highlights from the conversation:

• Witnessed an all-round growth with higher growth in rural channels.
• Expect better growth rates if momentum continues.
• Trying some brand extensions under Navratna brand.
• Launched new variants across segments.
• Expect core brands to drive growth.
• Market has expanded due to demand and intense competition.
• Disruption in wholesale channels was challenging.
• Expect high overall operating margin despite investments.
• Expect no substantial change in margin or returns portfolio.
• Well-positioned now to take on aggressive growth after few subdued quarters.

Shares of the real-estate developer rose as much as 4.1 percent, the most in 10 days, to Rs 817.50. The company reported a strong quarterly profit during January-March period, driven by the jump in other income.

Key earnings highlights (Q4, YoY):

• Net profit up 126 percent at Rs 141.5 crore.
• Revenue up 20.8 percent at Rs 521 crore.
• Ebitda loss at 107.5 crore versus profit of Rs 66.3 crore.
• Other income up 954 percent at Rs 327 crore.

Key highlights from the conversation:

• Witnessing steady demand in semi-rural/urban areas.
• Demand in first 4-5 weeks of this quarter far more robust than the last year.
• Clarity on JP acquisition should emerge by May.
• Prices expected to be stable going forward.
• Industry volume growth robust, demand is strong.
• Operating at 80 percent capacity utilisation, which is very satisfying.
• Tax provisions hit profit in March quarter.

PC Jeweller, that saw its market worth reach $3.6 billion at the start of the year is now floundering at less than a quarter of that value after one of its founders gifted some shares to family members, raising concern about the company’s governance. (more details here)

Shares of the construction company rose 2.9 percent to Rs 132.60 as of 11:30 a.m., after the company said that it won three fresh orders worth Rs 1,276.93 crore in April, according to its stock exchange filing.

NCC trades at 36 times its estimated earnings per share for the coming year, Bloomberg data showed.

About 16 lakh shares of the country's largest wireless telecom operator changed hands in a block deal, Bloomberg reported. Buyers and sellers were not known immediately.

Shares of the automotive lubricant maker fell as much as 5.9 percent, the most in almost 18 months, to Rs 181.5., extending declines to a second consecutive trading session.

The company’s net profit in the March-ended quarter more than halved to Rs 182 crore, missing Bloomberg estimates by Rs 10 crore.

Earnings Highlights:

• Revenue up 5 percent at Rs 927 crore.
• EBITDA up 4 percent at Rs 274 crore.
• Margin at 29.6 percent vs 29.8 percent.

The stock has lost 4.4 percent so far this year, compared with the Sensex's positive return of 2.9 percent. Around 83 percent of the analysts covering this stock have a ‘buy’ rating, with the rest recommending a ‘hold’.

Key highlights from the conversation:

• Lavasa has been stalled due to banking decisions.
• New resolution plans are underway.
• Resolution plans are being discussed with the bankers currently.
• Lavasa has been stalled for 3 years after some of the banks backed out after agreeing.
• As per New RBI scheme some resolution is underway.
• 2 or 3 investors have shown great interest and we are considering that.
• HCC's turnover has been better than last year.
• Total arbitral awards standing in our favour are Rs 4,823 crore.
• The awards we have received will be converted into cash by getting guarantee.
• Stress in the company is due to govt agencies not paying on time.
• Expect situation to change dramatically in one year.
• With money coming in we are in position to clean up our balance sheet.
• We have not approached NCLT for any thing.
• Expect the order book to grow in 2018-19.
• Expect to expand our order book this year.
• Basic execution issues exits around the country.

Shares of the metal producer pared early gains and fell as much as 1.5 percent to Rs 282.

The company’s profit rose, beating estimates in the January-March quarter, aided by an exceptional gain. The net profit stood at Rs 4,802 crore, an increase of 81.4 percent on a sequential basis.

Also Read: Vedanta’s March Quarter Profit Nearly Doubles On One-Time Gain

Earnings Highlights:

• Revenue up 22.7 percent at Rs 27,630 crore.
• Net Profit up 81.41 percent at Rs 4,802 crore.
• EBITDA up 6.6 percent at Rs 7,837 crore.
• Margin at 28 percent vs 33 percent.

Trading volume was two times the 20-day average. The stock declined 14 percent so far this year as compared to the 7.5 percent fall in NSE Nifty Metal Index.

Activity in India's dominant services sector improved for the second straight month in April as employment growth rose at the fastest pace since March 2011.

The Nikkei India Services Purchasing Managers’ Index rose to 51.4 last month, the highest since January as business conditions gathered pace supported by new order growth, said research firm Markit.

Software developer Nucleus Software Exports Ltd. clocked its highest-ever quarterly revenue growth of Rs 111 crore, its Managing Director Vishnu Dusad told BloombergQuint in an interview.

Key highlights from the conversation:

• Company's products are getting good acceptance in the market.
• Growth in domestic business will continue to grow similarly.
• Will be able to bag similar orders as earlier quarters.

Shares of the telecom operator snapped two-day decline and rose as much as 3.5 percent to Rs 418.4, after having lost ground for two consecutive sessions.

The Sunil Mittal-led company plans to raise as much as $1.5 billion by listing the holding company of its Africa operations, Economic Times reported. The listing is slated for early next year on the London Stock Exchange, the report added.

Trading volume was 3.6 times the 20-day average. The stock was the top gainer on Nifty.

Infrastructure company IRB Infra expects order addition worth Rs 7,000-9,000 crore in 2018-19, its Chairman and Managing Director Virender Mhaiskar told BloombergQuint in an interview.

Key highlights from the conversation:

• Top-line flat despite transfer of seven assets to investment trust.
• Three Rajasthan projects have started construction and tolling.
• Have two under-construction assets where tolling is yet to commence.
• Under-construction projects should start earning revenue in 2018-19.
• Have guided for a Rs 10,000 crore topline and Rs 1,000 crore bottoline by March 2020.
• Bot segment will have margins of 85-86 percent.
• Confident of retaining profit margins in 10-11 percent range.
• Expect order addition worth Rs 7,000-9,000 crore in 2018-19.

L&T Finance expects to reduces exposure in infrastructure segment to 50 percent, its Managing Director and Chief Executive Officer Dinanath Dubhashi said. The company also expects ROEs in wholesale finance business to rise to mid-teens by March 2020, he told BloombergQuint in an interview.

Key highlights from the conversation:

• Plan to improve RoE to 17-18 percent from 15 percent by 2020.
• The rural book grew over 60 percent on disbursements, asset quality.
• See RoE in mid-teens for wholesale business March 2020.
• Single digit roe in wholesale finance due to provisioning to the legacy portfolio.
• Operations were in-line with four-year plan to improve RoE.
• Used proceeds provisioning of wholesale business.
• Exiting private equity positions led to Rs 190 crore exceptional item gain in Q4.
• GNPA in the rural segment has improved to 6.4 percent from 12.2 percent.
• Wholesale NPAs currently at Rs 2,000 crore
• Moving portfolio towards retail aiding profitability expect improvement in asset quality of retail business
• Seeing good movement in NCLT process.
• More hopeful of faster resolutions of stressed assets.
• Will make adequate provisions to avoid the further hit.
• Will continue to reduce net NPAs in wholesale businesses.

Alcohol maker and distributor – Radico Khaitan expects double-digit growth in its revenue during the current financial year, its Chief Financial Officer Dilip Banthiya told BloombergQuint in an interview.

Key highlights from the conversation:

• Business back to normalcy from October after GST, highway ban.
• Witnessed growth the brand business in the last two quarters.
• Premium brands growing at over 10 percent, popular brands also doing well.
• Expect double-digit growth in prestige and above brands in 2018-19.
• Will reap the benefits from excise policy shift in Uttar Pradesh.
• Focus on free cash flow, net debt reduced to Rs 570 crore at the end of March 2018.
• See a significant reduction in debt by 2020, should be debt free by 2021.
• Expect margins to be sustainable due to benign raw material prices.
• Operating margins should continue to improve for 2-3 years.
• Interest costs to fall as Radico Khaitan reduces debt.
• Expect total comprehensive income to grow faster.
• Expect double-digit topline growth in 2018-19
• Paid off Rs 215 crore debt in the previous financial year, will cut debt at a faster rate in the current and the next financial year.
• See good consumer demand in Uttar Pradesh.
• U.P. excise policy shift will benefit large players.
• Expect 15-20 percent industry growth in U.P.
• Expect to do better than the industry average in U.P.
• Large players to benefit post consolidation in the liquor industry.
• Penetration, per capita consumption of liquor is still low in India.
• As GDP and per capita income grows, so will discretionary spend.

Shares of the infrastructure developer rose as much as 3.4 percent, the most in over a week to Rs 287.

The company won an order worth Rs 445 crore for Pune metro, according to its stock exchange notification.

Trading volume was 4.6 times its 30-day average, Bloomberg data showed. The stock declined 5.2 percent so far this year.

Principal Mutual Fund expects about 15-20 percent earnings growth in the current financial year, its Chief Investment Officer – Rajat Jain told BloombergQuint in an interview.

Key highlights from the conversation:

• See interest coming back in capital goods, but most companies are expensive, need to be selective.
• Seeing growth in domestic cyclicals like auto, cement, paints.
• Overweight on domestic cyclicals, neutral on it sector now.
• Earnings so far in-line with market expectations.

Shares of the steel producer fell as much as 6.7 percent, the most since March 19, to Rs 76.30 after the company reported an unexpected loss during the March quarter on the back of one-time loss. The company reported a net loss of Rs 483 crore, while the analysts surveyed by Bloomberg had predicted a net profit of Rs 72.79 crore.

Key earnings highlights (Q4, YoY):

• Revenue down 4.7 percent at Rs 1,775 crore.
• Net loss of Rs 483 crore versus net profit of Rs 23.7 crore.
• One-time loss of Rs 418 crore.
• Ebitda down 28.2 percent at Rs 421.4 crore.
• Margin at 23.7 percent versus 31.5 percent.

About 11.7 lakh million shares of the Anil Ambai-led telecom operator changed hands in a block deal, according to Bloomberg. Buyers and sellers were not known immediately.

Here’s how foreign and local funds played the market on Thursday.https://t.co/JGykyEq1GS pic.twitter.com/WM33cYIiGd

— BloombergQuint (@BloombergQuint) May 4, 2018

A Rs 12,000 crore bond auction today will gauge appetite for debt after primary dealers demanded higher underwriting fees for clearing the sale.

Now, this auction is also the first sale after authorities last week scrapped a rule that prevented overseas investors from buying debt with less than three years left to maturity.

In the short-term, DBS expects government yields to consolidate as the U.S. 10-year hovers a shade below 3 percent and amid encouraging GST collections for April, locally. Later in the day, RBI will also hold Rs 35,000 crore of seven-day reverse repo auction. Implied opening from forwards suggests onshore spot will start trading around 66.61 today.

SEBI introduces tougher mechanism to check non-compliance of listing conditions.https://t.co/jrGHVdlHsd pic.twitter.com/2qywlzJrRo

— BloombergQuint (@BloombergQuint) May 4, 2018

Goldman gives three reasons why investors should worry less.https://t.co/L3LlPw5zOU pic.twitter.com/U64bPOMRs5

— BloombergQuint (@BloombergQuint) May 3, 2018

• Pioneer Distilleries circuit filter revised to 5 percent.
• Jaypee Infratech shifted to T group.
• Prism Cement Ltd.’s name changed to Prism Johnson Ltd.
• Pudumjee Industries Ltd.’s name changed to 3P Land Holdings Ltd.

Inside the world's most elite (and secret) traders' club.https://t.co/RkvYPcsbvd pic.twitter.com/HGopb2ApGF

— BloombergQuint (@BloombergQuint) May 3, 2018

#Q4WithBQ | Vedanta’s Q4 profit jumps 81.4% on one-time gain.https://t.co/UyDJLYvrhz pic.twitter.com/0tghbKR35f

— BloombergQuint (@BloombergQuint) May 3, 2018

• Ambuja Cements
• Bank Of Maharashtra
• BSE
• Capital First
• Godrej Properties
• Indo Count Industries
• NIIT Technologies
• PVR
• Wockhardt

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Rising Gold Prices Keep India’s Jewellery Buyers At Bay

Here are some key events coming up this week:

• Nikkei India services and composite PMI for April
• 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 before the data reports due Friday.
• Earnings season continues, with Alibaba due on Friday.
• Reserve Bank of Australia releases its quarterly update of growth and inflation forecasts on Friday.
• Berkshire Hathaway holds its annual shareholders meeting in Omaha, Nebraska on Saturday.