Sensex, Nifty Log Best Close In Nearly Three Weeks Led By Infosys, HDFC Bank

Indian equity benchmarks registered their best close in nearly three weeks, recovering yesterday’s losses.

The benchmark indices were led by the gains in Infosys Ltd. and HDFC Bank Ltd. The S&P BSE Sensex ended 279 points or 0.75 percent higher at 37,979.48 and the NSE Nifty 50 ended at 11,257.10, up 0.9 percent. The broader market index represented by the NSE Nifty 500 Index ended 0.67 percent higher.

The market breadth, however was tilted in favour of sellers. About 898 stocks declined and 841 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Media index’s 2.26 percent gain. On the flipside, the NSE Nifty Pharma index was the only sectoral loser, down 0.21 percent.

Shares of Bajaj Finance rose as much as 3.2 percent to Rs 3,100 after the company announced its Fourth quarter results.

Key Earnings Highlights (Q4, YoY)

• Net interest income up 50 percent to Rs 3,395 crore.
• Net profit up 57 percent to Rs 1,176 crore.

Shares of Bank of India rose as much as 3.8 percent after the lender’s asset quality improved in March quarter.

Key Earnings Highlights (Q4, YoY)

• Net interest income up 58 percent to Rs 4,044 crore.
• Net profit at Rs 251.79 crore versus loss of Rs 3,969 crore.
• Gross NPAs at 15.84 percent versus 16.31 percent (QoQ).
• Net NPAs at 5.61 percent versus 5.87 percent (QoQ).
• Provisions at Rs 1,897 crore versus Rs 9,000 crore (QoQ); Rs 6,674 crore (YoY).
• Advances down 0.09 percent, deposits down 0.08 percent.
• PPOP at Rs 2303 crore versus Rs 2,273 crore (QoQ); Rs 1,172 crore (YoY).
• CAR at 14.19 percent versus 12.47 percent (QoQ).
• CET 1 at 11.01 percent versus 9.10 percent (QoQ).
• RoA 0.15 percent versus -2.85 percent (QoQ); -2.36 percent (YoY).

Shares of Hindalco rose as much as 2.2 percent to Rs 194.85 after the company announced its March quarter results.

Key Earnings Highlights (Standalone + Utkal Alumina) (Q4, YoY)

• Revenue up 6.5 percent to Rs 12,455 crore.
• Net profit down 17.8 percent to Rs 506 crore.
• Ebitda down 4.1 percent to Rs 1,733 crore.
• Margin at 13.9 percent versus 15.5 percent.

Q4 Earnings: The Mid-Cap Companies That Stood Out

Nifty’s 11,200 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract fell 50.70 percent to Rs 12.35. Over 22.19 lakh shares were added to the open interest which stood at over 40.38 lakh shares.

Shares of Ashok Leyland rebounded from day’s low to trade 0.6 percent higher at Rs 82.45.

The company bagged a contract for 400 units of 916 Minibuses valuing 10.06 million Euros from Senegal, according to its statement on the exchanges.

The stock declined 20.4 percent so far this year and fell 45.6 percent in the past 12 months.

About 21.1 lakh shares of SAIL changed hands in a single block, Bloomberg data showed. Buyers and sellers were not known immediately.

Waterbase (Q4, YoY)

• Stock fell as much as 8.2 percent to Rs 126.45
• Revenue down 22 percent to Rs 51.2 crore.
• Ebitda down 59 percent to Rs 3.2 crore.
• Margin at 6.3 percent versus 12 percent.
• Net profit down 42 percent to Rs 1.5 crore.
• Delay in farming season due to extended winter led to this fall in sales.
• Management is projecting the shrimp production to de-grow in the current financial year as fear of non-remunerative prices may result in farmers lowering their production levels.

Himachal Futuristic Communications (Q4, YoY)

• Stock fell as much as 6.4 percent to Rs 19.70.
• Revenue up 16.1 percent to Rs 1,095 crore.
• Net profit down 12.4 percent to Rs 51.5 crore.
• Ebitda down 13.7 percent to Rs 65 crore.
• Margin at 6 percent versus 8 percent.

Kesoram Industries (Q4, YoY)

• Stock rose as much as 5.6 percent to Rs 68.40.
• Revenue up 5.2 percent to Rs 1,036.6 crore.
• Net profit at Rs 20.8 crore versus net loss of Rs 158.2 crore.
• Ebitda profit at Rs 121.7 crore versus Ebitda loss of Rs 38.2 crore.
• Raw material costs down 26 percent to Rs 182 crore.

Manappuram Finance (Q4, YoY)

• Stock fell as much as 5.1 percent to Rs 114.55.
• Net interest income up 16.6 percent to Rs 697.9 crore.
• Net profit up 43.3 percent to Rs 256.9 crore.
• Board approves to explore entry into micro insurance and to acquire 100 percent stake in Manappuram Asset Finance.

KPIT Technologies (Q4, QoQ)*

• Stock rose as much as 0..9 percent to Rs 98.70.
• Revenue up 3.6 times to Rs 501.3 crore.
• Net profit up 25.4 percent to Rs 30.1 crore.
• Ebitda up 2.1 times to Rs 61.6 crore.
• Margin at 12.3 percent versus 21.5 percent.
• Exceptional loss of Rs 34.3 crore.
• Employee expenses up 7.6 times to Rs 315.1 crore.
• Other income of Rs 35.5 crore.

*Numbers not comparable since company went for demerger.

Torrent Power (Q4, YoY)

• Stock fell as much as 5.9 percent to Rs 231.05.
• Revenue up 4.1 percent to Rs 2,924.8 crore.
• Net profit down 88.9 percent to Rs 24 crore.
• Ebitda up 2.8 percent to Rs 709.9 crore.
• Margin at 24.3 percent versus 24.6 percent.
• Other income down 60 percent to Rs 39.9 crore.
• Employee benefit expense up 20 percent to Rs 154.6 crore.
• Fuel costs up 7 percent to Rs 897.2 crore.
• Declares dividend of Rs 5 per share.

Phoenix Mills (Q4, YoY)

• Stock rose as much as 3.3 percent to Rs 613.15.
• Revenue up 65.6 percent to Rs 723.2 crore.
• Net profit up 2.5 times to Rs 228.4 crore.
• Ebitda up 74.3 percent to Rs 377.2 crore.
• Margin at 52.2 percent versus 49.6 percent.
• Exceptional gain of Rs 48.1 crore.
• Increase in inventory to Rs 123.6 crore.
• Other Income up 2.3 times to Rs 32.9 crore.

Gulf Oil Lubricants (Q4, YoY)

• Stock rose as much as 1.3 percent to Rs 825.
• Revenue up 16.8 percent to Rs 436.2 crore.
• Net profit up 15 percent to Rs 47.6 crore.
• Ebitda up 18.1 percent to Rs 74.3 crore.
• Margin at 17 percent versus 16.8 percent.
• Board declares dividend of Rs 7 per share.

Jammu & Kashmir Bank (Q4, YoY)

• Stock rose as much as 6 percent to Rs 57.60.
• Net interest income up 42 percent to Rs 931.3 crore.
• Net profit up 7.6 times to Rs 214.8 crore.
• Provisions to Rs 378 crore versus Rs 251.1 crore.
• GNPA at 8.97 percent versus 9.94 percent. (QoQ)
• NNPA at 4.89 percent versus 4.69 percent. (QoQ)

SKF India (Q4, YoY)

• Stock rose as much as 1 percent to Rs 1,815.55.
• Revenue up 6.4 percent to Rs 748.4 crore.
• Net profit up 14.8 percent to Rs 82.2 crore.
• Ebitda up 4.6 percent to Rs 111 crore.
• Margin at 14.8 percent versus 15.1 percent.
• Inventory gain of Rs 43 crore in base quarter.
• Other income up 55 percent to Rs 29.2 crore.
• Board names Anurag Bhagania as CFO and Gopal Subramanyam as Chairman.

Magma Fincorp (Q4, YoY)

• Stock rose as much as 2.2 percent to Rs 129.40.
• Net interest income up 10.1 percent to Rs 290.8 crore.
• Net profit up 6.6 percent to Rs 85.3 crore.

Majesco (Q4, QoQ)

• Stock fell as much as 3.2 percent to Rs 491.20.
• Revenue up 2.7 percent to Rs 261.5 crore.
• Net profit down 42.3 percent to Rs 8.6 crore.
• EBIT down 43.1 percent to Rs 12 crore.
• Margin at 4.6 percent versus 8.3 percent.
• Other expenses up 30 percent to Rs 67.5 crore.
• Deferred tax reversal of Rs 8.2 crore.

Mahindra Holidays & Resorts (Q4, YoY)

• Stock fell as much as 3.9 percent to Rs 197.90.
• Revenue down 19.5 percent to Rs 238.3 crore.
• Net profit down 62.7 percent to Rs 14.4 crore.
• Ebitda down 66 percent to Rs 21.2 crore.
• Margin at 8.9 percent versus 21.1 percent.
• Other income up 41 percent to Rs 13.8 crore.
• Current tax reversal of Rs 27.3 crore.
• Board re-appoints Kavinder Singh as MD and CEO till November 2024.

Shares of Bajaj Finance extended gains for the second consecutive trading session and rose as much as 1.7 percent to Rs 3,053.70 ahead of results announcement.

Here’s what analysts tracked by Bloomberg expects the company to report during March quarter on a yearly basis:

• Net interest income seen 38 percent higher at Rs 3,263 crore.
• Net profit seen 52 percent higher at Rs 1,092 crore.

Shares of Petronet LNG extended declines for the second consecutive trading session and fell as much as 3.6 percent, the most in over three months, to Rs 225 after the company announced its March quarter results.

Key Earnings Highlights (Q4, QoQ)

• Revenue down 17 percent to Rs 8,383.2 crore.
• Net profit down 22.1 percent to Rs 440.2 crore.
• Ebitda down 26 percent to Rs 627.2 crore.
• Margin at 7.5 percent versus 8.4 percent.
• Other income up 71 percent to Rs 151.4 crore.
• Declares dividend of Rs 4.5 per share.

Indian equity benchmarks opened higher, led by the gains in Reliance Industries Ltd. and Infosys Ltd.

The S&P BSE Sensex rose as much as 0.24 percent to 37,204.77 and the NSE Nifty 50 rose as much as 0.24 percent to 11,183.85. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.21 percent.

The market breadth was tilted in favour of buyers. About 798 stocks advanced and 647 shares declined on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty IT Index’s 0.49 percent gain. On the flipside, the NSE Nifty Pharma Index was the top sectoral loser, down 0.54 percent.

Here's a lineup of all the major corporate meetings today.

Read: https://t.co/94fPsTOOVJ pic.twitter.com/4013xXqqLn

— BloombergQuint (@BloombergQuint) May 16, 2019

Futures –May series

Nifty

• Nifty futures closed trading at 11,177.4, premium of 20.4 points
• Nifty open interest down 3 percent, sheds 5.2 lakh shares in open interest

Bank Nifty

• Bank Nifty futures closed trading at 28,666.8, premium of 50.8 points versus 88 points
• Bank Nifty open interest down 1 percent sheds 7,900 shares in open interest

Options

• Nifty PCR at 1.13 versus 1.28 (across all series)

Nifty Weekly Expiry 16 May

• Max open interest on call side at 11,300 (33.6 lakh shares)
• Max open interest at Put side at 11,000 (18.2 lakh shares)
• Max open interest addition seen at 11,300 Put (+16.3 lakh shares), 11,200 Call (+8.2 lakh shares)
• Max shedding seen at 12,000 Call (-3.6 lakh shares), 11,200 Put (-3.4 lakh shares)

Nifty Monthly Expiry 30 May

• Max open interest on call side at 12,000 (30.1 lakh shares)
• Max open interest on Put side at 11,000 (28.7 lakh shares)
• Max open interest addition seen at 12,000 Call (+3.4 lakh shares), 11,000 Put (+2.4 lakh shares)

On Lupin

UBS

• Maintained ‘Buy’ with a price target of Rs 970.
• March quarter’s earnings were in line with estimates.
• India business improving; Japan to remain subdued with price cuts.
• Expect stronger earnings pick up from the second half onwards.

Macquarie

• Maintained ‘Underperform’; cut price target to Rs 705 from Rs 716.
• Not out of the woods yet.
• FY20/21 US build up largely contingent on three products.
• Lowering EPS estimates on additional regulatory woes, slower EM sales and higher tax.

Jefferies

• Maintained ‘Underperform’; cut price target to Rs 650 from Rs 680.
• Weak quarter led by margin miss.
• US strong, other geographies disappoint.
• Cut EPS estimates by 20 ercent and 10 percent for the current and the next financial year respectively given the challenges in U.S. and weak R&D execution

On Jubilant FoodWorks

CLSA

• Maintained ‘Buy’; cut price target to Rs 1,500 from Rs 1,600.
• March quarter’s Ebitda missed estimates, but net profit was ahead.
• SSSG moderates, but margin ahead.
• Slowing SSSG forces to cut EPS estimates.

Jefferies

• Maintained ‘Buy’; cut price target to Rs 1,450 from Rs 1,475.
• March quarter review: operationally strong number.
• Do not rule out near-term pressure on SSSG due to higher base and competition.
• Management sounded confident on both growth and margins.

More Calls

CLSA on Motherson Sumi

• Maintained ‘Outperform’; cut price target to Rs 135 from Rs 150.
• Weak European auto demand hurting; subdued commentary from global players.
• Auto demand environment weak in India too.
• Cut EPS estimates for the current ad the next financial year by 15-16 percent; valuations turning more palatable.

Morgan Stanley on Tata Global Beverages

• Maintained ‘Underweight’ with a price target of Rs 165.
• Tata Global’s consumer product business is valued at Rs 5,800 crore.
• Expect Tata Global to use cash flows from Tata Salt business to invest in new consumer categories.
• Any potential re-rating dependent on synergy benefits, success in new markets and on margins.

Jefferies on Sun Pharma

• Maintained ‘Buy’; hiked price target to Rs 540 from Rs 535.
• Positive trends in US doc survey for Ilumya; Survey suggests $300 million peak sales likely.
• Cequa could be good niche due better efficacy and faster onset.
• Remain positive as we expect recovery in business, better specialty traction and supportive valuations.

Citi on Endurance Technologies

• Maintained ‘Neutral’; cut price target to Rs 1,210 from Rs 1,240.
• March quarter review: Healthy margins amid weak demand.
• EU business: Revenue growth surprises positively.
• Cut earnings by 2-3 percent over FY20/21 as we grow more conservative on demand trends.

Jefferies on Newgen Software

• Maintained ‘Buy’; cut price target to Rs 372 from Rs 375.
• Disappointing revenue growth in March quarter
• Weak performance in India, Middle East; strong in the U.S., APAC in 2018-19.
• Cut EPS estimates by 5-11 percent on slightly weaker growth & margin over FY20-21.

• TTK Prestige record date for bonus issue at 1:5.
• Uniply Industries to move out of short term ASM Framework.
• Williamson Magor & Company to move into ASM Framework.

• Future Retail promoter Future Corporate Resources revoked pledge of 4 lakh hares on May 13.
• Future Enterprises promoter group Central Departmental Stores revoked pledge of 1.75 lakh shares on May 13.
• Apollo Tyres promoters pledged 31.15 lakh shares on May 13.

Q4 Results: Expect New Government, RBI To Resolve Liquidity Stress, Says IIFL

Darwin Platform Group, SBI Caps Discuss Unsolicited Bid For Jet Airways

• Brent crude traded higher for the third day, up 0.49 percent to $72.12 percent.
• West Texas Intermediate crude rose 0.2 percent to $62.17 a barrel.
• Gold was steady $1,296.34 an ounce.

With inputs from Bloomberg.