Sensex Ends 227 Points Higher; Nifty Halts Longest Losing Streak In Over Eight Years

Indian equity benchmarks halted their nine-day losing streak, led by the gains in Reliance Industries Ltd. and ITC Ltd.

The S&P BSE Sensex closed 227 points or 0.6 percent higher at 37,318.53 and the NSE Nifty 50 ended at 11,222.05, up 0.66 percent. The 50-share index halted its longest losing streak in over eight years. The broader market index represented by the NSE Nifty 500 Index closed 0.57 percent higher.

The market breadth was tilted in favour of buyers. About 897 stocks advanced and 875 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty PSU Bank Index’s 2.85 percent advance. On the flipside, the NSE Nifty IT Index was the only sectoral loser, down 1.2 percent.

Shares of Delta Corp halted a six-day decline and rose as much as 13.3 percent, the most in a year, to Rs 210.90.

Trading volume was almost 11 times its 20-day average, Bloomberg data showed. The stock traded at 22 times its estimated earnings per share for the coming year.

Siemens (Q4, YoY)

• Stock rose as much as 4.7 percent to Rs 1,100.
• Net profit up 27.6 percent to Rs 280.30 crore.
• Revenue up 8.1 percent to Rs 3,550 crore.
• Ebitda up 27 percent to Rs 410 crore.
• Margin at 11.55 percent versus 9.83 percent.

Polycab India (Q4, YoY)

• Stock fell as much as 3.8 percent to Rs 630.05.
• Revenue up 15.8 percent to Rs 2,448 crore.
• Net profit down 27.2 percent to Rs 137.3 crore.
• Ebitda down 34.9 percent to Rs 224.7 crore.
• Margin at 9.2 percent versus 16.4 percent.
• Project costs up 2.8 times to Rs 128.4 crore.

Westlife Development (Q4, YoY)

• Stock fell as much as 4.4 percent to Rs 349.95.
• Net profit up 4.7 percent to Rs 29.77 crore.
• Revenue up 12 percent to Rs 333.64 crore.

Cera Sanitaryware (Q4, YoY)

• Stock rose as much as 4.1 percent to Rs 2,885.
• Net profit up 23 percent to Rs 38 crore.
• Revenue up 14 percent to Rs 413 crore.
• Ebitda up 24 percent to Rs 64 crore.
• Margin at 15.5 percent versus 14.3 percent.

Sharda Cropchem (Q4, YoY)

• Stock fell as much as 2.6 percent to Rs 365.20.
• Net profit at Rs 105.62 crore versus Rs 113.23 crore.
• Revenue at Rs 764.35 crore versus Rs 765.88 crore.

Edelweiss Financial Services’ profit during January March period fell 3 percent on a yearly basis to Rs 232.39 crore, according to its stock exchange filing. Its net interest income rose 42 percent to Rs 282.05 crore.

Shares of the company traded 5.4 percent lower at Rs 154.80 after the results announcement.

April wholesale prices rose 3.07 percent on a yearly basis, according to a Commerce Ministry statement. That compared with Bloomberg estimate of 3 percent. WPI inflation in March stood at 3.18%

• Fuel, power, lighting prices rose 3.84 percent.
• Manufactured product prices rose 1.72 percent.
• Food articles inflation rose 7.37 percent.

Nifty’s 11,400 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract fell 20.06 percent to Rs 51.20. Over 13.83 lakh shares were added to the open interest which stood at over 26.2 lakh shares.

• Vedanta: About 17.9 lakh shares changed hands in a single block.
• SBI: About 10 lakh shares changed hands in a block deal.

Buyers and sellers were not known immediately.
Source: Bloomberg

Shares of Lupin fluctuated between gains and losses to trade little changed at Rs 797.

The pharmaceutical company received an Establishment Inspection Report from the U.S. drug regulator for the Post-marketing Adverse Drug Experience (PADE) inspection, according to its stock exchange filing. The inspection closed with four observations, the statement added.

The stock returned 6.9 percent over the past year compared to a 5.5 percent gain in Sensex.

Mangalore Refinery & Petrochemicals (Q4, QoQ)

• Stock fell as much as 1.7 percent to Rs 61.55.
• Revenue down 15.2 percent to Rs 15,152.5 crore.
• Net profit of Rs 318.9 crore versus net loss of Rs 257.7 crore.
• Ebitda profit of Rs 816.1 crore versus Ebidta loss of Rs 94.7 crore.

SRF (Q4, YoY)

• Stock fell as much as 5.3 percent to Rs 2,335.
• Revenue up 28.5 percent to Rs 2072 crore.
• Net profit up 54.1 percent to Rs 190.9 crore.
• Ebitda up 42.6 percent to Rs 388.8 crore.
• Margin at 18.8 percent versus 16.9 percent.
• Technical textiles business revenue up 4 percent to Rs 481.5 crore.
• Chemicals business revenue up 66 percent to Rs 840 crore.
• Packaging film business revenue up 18 percent to Rs 623.1 crore.

Godrej Industries (Q4, YoY)

• Stock fell as much as 3.7 percent to Rs 435.95.
• Revenue up 48.3 percent to Rs 2971.8 crore.
• Net profit up 2.1x to Rs 297.4 crore.
• Ebitda profit of Rs 238.3 crore versus Ebitda loss of Rs 156.8 crore.
• Exceptional gain of Rs 88.3 crore.
• Deferred tax of Rs 87.9 crore versus deferred tax reversal of Rs 54.2 crore.
• Inventory loss of Rs 567.9 crore.
• Cost of property development down 77 percent to Rs 71 crore.
• Other income down 50 percent to Rs 169.5 crore.

Muthoot Finance (Q4, YoY)

• Stock rose as much as 4.5 percent to Rs 572.05.
• Net Interest Income up 3.4 percent to Rs 1220.8 crore.
• Net profit up 0.6 percent to Rs 511.5 crore.

Linde India (Q4, YoY) Numbers Not Comparable Due to Ind AS 115 Recognition

• Stock fell as much as 4 percent to Rs 503.70.
• Revenue down 16.4 percent to Rs 441 crore.
• Net profit up 15 times to Rs 35.6 crore.
• Ebitda up 55.2 percent to Rs 112.7 crore.
• Margin at 25.6 percent versus 13.8 percent.
• Deferred tax to Rs 6.7 crore versus deferred tax reversal of Rs 0.8 crore.

Honeywell Automation (Q4, YoY)

• Stock fell as much as 3.1 percent to Rs 23,116.60
• Revenue up 26.6 percent to Rs 810.3 crore.
• Net profit up 44 percent to Rs 84.1 crore.
• Ebitda up 55 percent to Rs 124.5 crore.
• Margin at 15.4 percent versus 12.6 percent.
• Declares dividend of Rs 45 per share.

Karnataka Bank (Q4, YoY)

• Stock fell as much as 7.4 percent to Rs 109.40.
• Net Interest Income down 11.2 percent to Rs 480.9 crore.
• Net profit up 5.6 times to Rs 61.7 crore.
• Provisions down 60 percent to Rs 217.7 crore.
• GNPA at 4.41 percent versus 4.45 percent. (QoQ)
• NNPA at 2.95 percent versus 3 percent. (QoQ)
• Declares dividend of Rs 3.5 per share.
• Board appoints Muralidhar Krishna Rao as CFO from May 13.

Capacit’e Infraprojects (Q4, YoY)

• Stock fell as much as 1.2 percent to Rs 222.35.
• Revenue up 30.6 percent to Rs 497.6 crore.
• Net profit up 15.6 percent to Rs 25.9 crore.
• Ebitda up 7 percent to Rs 66.9 crore.
• Margin at 13.4 percent versus 16.4 percent.
• Construction expenses up 54 percent to Rs 154.6 crore.

Andhra Bank (Q4, YoY)

• Stock fell as much as 4.3 percent to Rs 23.30.
• Net Interest Income up 5.9 percent to Rs 1,821.4 crore.
• Net loss of Rs 1,233.6 crore versus net loss to Rs 2,535.8 crore.
• Provisions down 58 percent to Rs 2,341.1crore.
• GNPA at 16.21 percent versus 16.68 percent. (QoQ)
• NNPA at 5.73 percent versus 6.99 percent. (QoQ)

CCL Products (Q4, YoY)

• Stock fell as much as 4.4 percent to Rs 258.05.
• Revenue down 18.3 percent to Rs 262.1 crore.
• Net profit down 24.6 percent to Rs 35.6 crore.
• Ebitda down 24.1 percent to Rs 54 crore.
• Margin at 20.6 percent versus 22.2 percent.

Shemaroo Entertainment (Q4, YoY)

• Stock fell as much as 4.4 percent to Rs 364.95.
• Revenue up 11.7 percent to Rs 132.2 crore.
• Net profit up 11.8 percent to Rs 20.9 crore.
• Ebitda up 11.4 percent to Rs 41 crore.
• Margin at 31 percent versus 31.1 percent.

Pioneer Distilleries (Q4, YoY)

• Stock fell as much as 7.2 percent to Rs 120.30.
• Revenue down 7.5 percent to Rs 33.5 crore.
• Net loss of Rs 24.2 crore versus net profit of Rs 20.8 crore.
• Ebitda loss of Rs 17.2 crore versus Ebitda profit of Rs 0.7crore.
• Other expenses of Rs 16.9 crore.

Metropolis Healthcare (Q4, YoY)

• Stock fell as much as 1.5 percent to Rs 907.
• Revenue up 21.1 percent to Rs 200.8 crore.
• Net profit up 14.2 percent to Rs 34.8 crore.
• Ebitda up 26.3 percent to Rs 56 crore.
• Margin at 27.9 percent versus 26.8 percent.

Just Dial (Q4, YoY)

• Stock rose as much as 3.6 percent to Rs 571.
• Revenue up 16 percent to Rs 232.3 crore.
• Net profit up 60.5 percent to Rs 62.6 crore.
• EBIT up 28.3 percent to Rs 58.7 crore.
• EBIT Margin at 25.3 percent versus 22.8 percent.
• Other income up 1.9 times to Rs 32.2 crore.

Here are the key highlights from the conversation:

• Most emerging markets are under pressure due to the global factors.
• Don’t expect trade war to go on for longer.
• Don't see any structural issues with the markets.
• Valuations are also on the higher side, see scope for a further correction.
• Private sector banks continue to do well.
• Autos in the long term look attractive.
• Pricing a big issue for pharma companies.

Shares of the cash-strapped airline declined as much as 13 percent to Rs 121.

The company’s Deputy Chief Executive Officer and CFO Amit Agarwal stepped down, according to its stock exchange filing.

The relative strength index was below 30, indicating that the stock may be oversold, according to Bloomberg data.

Shares of Engineers India rose as much as 1.5 percent to Rs 105.25.

The company signed a contract with Mangol Refinery for providing its PMC Services for construction of Crude Oil Refinery plant in Mongolia, according to tis stock exchange filing.

The stock traded at 15.2 times estimated forward earnings per share compared to a 21.5 times for the two-year historical average, Bloomberg data showed.

Shares of Vodafone Idea fell as much as 5.5 percent to Rs 13.65 after announcing March quarter results.

Key Earnings Highlights (Q4, QoQ)

• Revenue up 0.1 percent to Rs 11,775 crore.
• Net loss at Rs 4,881.9 crore versus net loss of Rs 5,004.6 crore.
• Ebitda up 57 percent to Rs 1,785.3 crore.
• Margins at 15.2 percent versus 9.7 percent.
• Exceptional loss of Rs 1,145.8 crore.
• ARPU up 16.9 percent to Rs 104 versus Rs 89.

Here’s what analysts had to say after Vodafone Idea announced its quarterly results:

CLSA

• Maintained ‘Sell’; cut price target to Rs 12.5 from Rs 27.
• March quarter’s operating income were above estimates; operating metric were weak.
• Merger synergies boosted the operating income.
• Big merger synergy savings ahead.

JPMorgan

• Maintained ‘Underweight’ with a price target of Rs 15.7
• March quarter marked three extremes – ARPU improvement, subscriber loss & reduction in network cost.
• Doing a good job in realizing merger synergies in an accelerated manner.

Indian equity benchmarks fluctuated between gains and losses in the opening trade after ending lower for nine consecutive trading sessions.

The S&P BSE Sensex traded 60 points or 0.17 percent lower at 37,090 and the NSE Nifty 50 trade at 11,120. Down 0.25 percent. The broader market index represented by the NSE Nifty 500 Index fell 0.44 percent.

The market breadth was tilted in favour of sellers. About 1019 stocks fell and 425 shares advanced on National Stock Exchange.

Ten out off 11 sectoral gauges compiled by NSE fell, led by the NSE Nifty Media Index’s 1.5 percent decline. On the flipside, the NSE Nifty FMCG Index was the only sectoral gainer, up 0.13 percent.

Here's a lineup of all the major corporate meetings over the next few days.

Read: https://t.co/SJSgbgKWXI pic.twitter.com/s7twgr7mBM

— BloombergQuint (@BloombergQuint) May 14, 2019

Morgan Stanley on India Insurance

• Industry premium growth in April 2019 was strong at 19 percent.
• Private sector premium growth was steady at 18 percent, LIC improved to 19 percent.
• Expect private sector premium growth to be in mid-teens over next two years.

Citi on Oberoi Realty

• Maintained ‘Buy’; hiked price target to Rs 628 from Rs 504.
• Solid end to a strong 2018-19; strong pre-sales in March quarter.
• March quarter’s P&L growth was good, but margin came lower.
• Hospitality business steady; pickup in Commerz2.

On ITC

Jefferies

• Maintained ‘Buy’ with a price target of Rs 360.
• Q4: broad based show; steady 7.5 percent YoY cigarette volume growth.
• Like ITC's focus on regaining lost volumes by straddling across price points in cigarettes.
• Remaining business segments saw strong growth.

Morgan Stanley

• Maintained ‘Overweight’ with a price target of Rs 320.
• Q4: Earnings beat; cigarette volume growth of 8 percent.
• Key positives: acceleration in cigarette volume growth and strong profit delivery other businesses.
• Next catalyst for ITC stock could be further calibrated price hikes.

On HDFC

CLSA

• Maintained ‘Buy’; hiked price target to Rs 2,500 from Rs 2,360.
• Healthy AUM growth, but loan growth weak – should normalise from the current financial year.
• Steady spread and asset quality.
• Expect steady rise in core earnings and RoE expansion.

Morgan Stanley

• Maintained ‘Overweight’ with a price target of Rs 2,290.
• March quarter review: Steady quarter in a tough environment.
• Bad loan ratio moderated and total coverage improved.
• Growth in individual disbursements and AUM was steady.
• HDFC continued to exercise caution on growing the non-individual book.

On Vodafone Idea

CLSA

• Maintained ‘Sell’; cut price target to Rs 12.5 from Rs 27.
• March quarter’s operating income were above estimates; operating metric were weak.
• Merger synergies boosted the operating income.
• Big merger synergy savings ahead.

JPMorgan

• Maintained ‘Underweight’ with a price target of Rs 15.7
• March quarter marked three extremes – ARPU improvement, subscriber loss & reduction in network cost.
• Doing a good job in realizing merger synergies in an accelerated manner.

• Mercator, Jaiprakash Power Ventures to move into ASM Framework.
• Williamson Magor & Company to move into short term ASM Framework.
• CIL Nova Petrochemicals, Goldiam International Limited to move out of short term ASM Framework.
• Uniply Industries price band revised to 5 percent.

Mangalore Refinery & Petrochemicals (Q4, QoQ)

• Revenue down 15.2 percent to Rs 15,152.5 crore.
• Net profit of Rs 318.9 crore versus net loss of Rs 257.7 crore.
• Ebitda profit of Rs 816.1 crore versus Ebidta loss of Rs 94.7 crore.

SRF (Q4, YoY)

• Revenue up 28.5 percent to Rs 2072 crore.
• Net profit up 54.1 percent to Rs 190.9 crore.
• Ebitda up 42.6 percent to Rs 388.8 crore.
• Margin at 18.8 percent versus 16.9 percent.
• Technical textiles business revenue up 4 percent to Rs 481.5 crore.
• Chemicals business revenue up 66 percent to Rs 840 crore.
• Packaging film business revenue up 18 percent to Rs 623.1 crore.

Godrej Industries (Q4, YoY)

• Revenue up 48.3 percent to Rs 2971.8 crore.
• Net profit up 2.1x to Rs 297.4 crore.
• Ebitda profit of Rs 238.3 crore versus Ebitda loss of Rs 156.8 crore.
• Exceptional gain of Rs 88.3 crore.
• Deferred tax of Rs 87.9 crore versus deferred tax reversal of Rs 54.2 crore.
• Inventory loss of Rs 567.9 crore.
• Cost of property development down 77 percent to Rs 71 crore.
• Other income down 50 percent to Rs 169.5 crore.

Muthoot Finance (Q4, YoY)

• Net Interest Income up 3.4 percent to Rs 1220.8 crore.
• Net profit up 0.6 percent to Rs 511.5 crore.

Linde India (Q4, YoY) Numbers Not Comparable Due to Ind AS 115 Recognition

• Revenue down 16.4 percent to Rs 441 crore.
• Net profit up 15 times to Rs 35.6 crore.
• Ebitda up 55.2 percent to Rs 112.7 crore.
• Margin at 25.6 percent versus 13.8 percent.
• Deferred tax to Rs 6.7 crore versus deferred tax reversal of Rs 0.8 crore.

Honeywell Automation (Q4, YoY)

• Revenue up 26.6 percent to Rs 810.3 crore.
• Net profit up 44 percent to Rs 84.1 crore.
• Ebitda up 55 percent to Rs 124.5 crore.
• Margin at 15.4 percent versus 12.6 percent.
• Declares dividend of Rs 45 per share.

Karnataka Bank (Q4, YoY)

• Net Interest Income down 11.2 percent to Rs 480.9 crore.
• Net profit up 5.6 times to Rs 61.7 crore.
• Provisions down 60 percent to Rs 217.7 crore.
• GNPA at 4.41 percent versus 4.45 percent. (QoQ)
• NNPA at 2.95 percent versus 3 percent. (QoQ)
• Declares dividend of Rs 3.5 per share.
• Board appoints Muralidhar Krishna Rao as CFO from May 13.

Capacit’e Infraprojects (Q4, YoY)

• Revenue up 30.6 percent to Rs 497.6 crore.
• Net profit up 15.6 percent to Rs 25.9 crore.
• Ebitda up 7 percent to Rs 66.9 crore.
• Margin at 13.4 percent versus 16.4 percent.
• Construction expenses up 54 percent to Rs 154.6 crore.

Andhra Bank (Q4, YoY)

• Net Interest Income up 5.9 percent to Rs 1,821.4 crore.
• Net loss of Rs 1,233.6 crore versus net loss to Rs 2,535.8 crore.
• Provisions down 58 percent to Rs 2,341.1crore.
• GNPA at 16.21 percent versus 16.68 percent. (QoQ)
• NNPA at 5.73 percent versus 6.99 percent. (QoQ)

CCL Products (Q4, YoY)

• Revenue down 18.3 percent to Rs 262.1 crore.
• Net profit down 24.6 percent to Rs 35.6 crore.
• Ebitda down 24.1 percent to Rs 54 crore.
• Margin at 20.6 percent versus 22.2 percent.

Shemaroo Entertainment (Q4, YoY)

• Revenue up 11.7 percent to Rs 132.2 crore.
• Net profit up 11.8 percent to Rs 20.9 crore.
• Ebitda up 11.4 percent to Rs 41 crore.
• Margin at 31 percent versus 31.1 percent.

Pioneer Distilleries (Q4, YoY)

• Revenue down 7.5 percent to Rs 33.5 crore.
• Net loss of Rs 24.2 crore versus net profit of Rs 20.8 crore.
• Ebitda loss of Rs 17.2 crore versus Ebitda profit of Rs 0.7crore.
• Other expenses of Rs 16.9 crore.

Metropolis Healthcare (Q4, YoY)

• Revenue up 21.1 percent to Rs 200.8 crore.
• Net profit up 14.2 percent to Rs 34.8 crore.
• Ebitda up 26.3 percent to Rs 56 crore.
• Margin at 27.9 percent versus 26.8 percent.

Just Dial (Q4, YoY)

• Revenue up 16 percent to Rs 232.3 crore.
• Net profit up 60.5 percent to Rs 62.6 crore.
• EBIT up 28.3 percent to Rs 58.7 crore.
• EBIT Margin at 25.3 percent versus 22.8 percent.
• Other income up 1.9 times to Rs 32.2 crore.

MSCI makes 2 changes to the MSCI Global Standard Index for India. pic.twitter.com/mgYYbgscGJ

— BloombergQuint (@BloombergQuint) May 14, 2019

• 12 p.m.: India April wholesale price inflation YoY, Bloomberg estimates at 3 percent, prior 3.18 percent.
• New York Fed President John Williams speaks at an event in Zurich. Kansas City Fed President Esther George and Richmond Fed President Thomas Barkin also make appearances.
• Japan balance of payments is due Tuesday.
• China industrial production and retail sales are slated for Wednesday, same day as U.S. retail sales and industrial production.
• Bank of Indonesia has an interest rate decision on Thursday.
• Australian unemployment is out on Thursday.

London Metal Exchange

• Copper resumed declines after a one-day breather, down 1.9 percent.
• Aluminium ended higher for the third day, up 0.06 percent.
• Nickel resumed declines after a one-day breather, closed 1.13 percent lower.
• Lead ended lower for the third day, down 2.03 percent.
• Tin ended 1.5 percent lower.
• Zinc resumed declines after a one-day breather, ended 2.4 percent lower.