Aban Offshore, Oil India up over 3%; HPCL, BPCL, IOC down over 5% Shares of oil exploration, equipment and services companies were trading higher on the bourses by up to 7% on Wednesday in otherwise subdued market after on higher crude oil prices. Oil and Natural Gas Corporation (ONGC), Oil India, Aban Offshore, Jindal Drilling & Industries, Hindustan Oil Exploration and Deep Industries were up in the range of 3% to 7% on the BSE. READ MORE After mostly subdued FY18 output, FY19 could be better for Coal India The 9.4 per cent production growth at Coal India for the month of March is encouraging, after the subdued output in much of 2017-18. It was helped by higher demand from thermal power plants, which had seen stocks fall to 10 days. Rising electricity demand with the early onset of summer and the coming peak season, coupled with subdued production of hydropower due to low reservoir levels, should ensure the demand for coal remains healthy. Similarly, the firm realisation will help offset cost pressure and sustain profitability. READ MORE Agri input firms expect double-digit growth in sales, net profit in FY19 Companies manufacturing farm input such as seeds, fertilisers and agrochemicals are likely to post double-digit growth in sales and net profit in 2018-19 on the back of an anticipated normal monsoon and possibility of increases in minimum support prices (MSPs) for kharif crops in 2018. Equity brokerage firm Elara Securities has forecast agri chemicals companies such as Dhanuka Agritech, Insecticides India, PI Industries, Rallis India and UPL may post 10-17 per cent and 14-18 per cent jump in their revenue and net profit, respectively, in 2018-19. READ MORE COMMENT: Earnings getting into better shape Q4FY18 results are expected to be an extension of early signs of growth revival that was witnessed in the preceding quarter. Auto, metals, media and NBFC space have gained further ground whereas banks continue to drag. With buoyancy in industry-wide auto volumes, we expect our auto-ancillary universe to report strong earnings growth. We expect yet another quarter of strong earnings performance from our metals & mining universe, led by strong uptick in realisations supported by steady volumes partially negated by higher RM costs. Within the media space, broadcasters are set to report strong double digit ad growth; print companies, however will continue to disappoint. Our banking universe is set to report dismal quarter (both revenue and earnings); NBFC’s remain in a solid footing. Pharma sector is expected to report strong quarter following the recovery in domestic market and with no major threat of price control. Cement demand has remained buoyant across all regions; pricing, however was muted QoQ and hence fallen short of the rising cost inflation (Source: Centrum Broking) Currency Strategy (Source: Nirmal Bang) RESULTS PREVIEW Motilal Oswal Research on Consumer Sector For our Consumer Universe, we expect aggregate revenue to grow 8.2% YoY and aggregate PAT to grow 11% YoY in 4QFY18. Flat sales expected from ITC, as a result of unusually high base quarter, net sales growth of 21% in cigarettes (due to extremely low excise duty in 4QFY17), are likely to drag down overall sector sales growth, which otherwise would have been in double digits. With all three components of sales –volumes, realization and premiumization – now firing in tandem, overall sales growth, barring ITC, is on a recovery path. Aggregate EBITDA is likely to grow 10.9% YoY, with sales growth revival leading to better absorption of costs. EBITDA margin is likely to be 60bp higher YoY.
The domestic indices remained range-bound on Wednesday taking cues from their key Asian counterparts.
In the global markets, Asian stocks rose modestly on Wednesday, paring earlier gains as optimism that trade ties between Washington and Beijing were on the mend gave way to questions about the next phase of the diplomatic tit-for-tat between the two countries.
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.35 per cent higher. It gained 1.2 per cent the previous day after a speech by Chinese President Xi Jinping was seen as striking a more conciliatory stance following a week of tit-for-tat tariff threats between Beijing and Washington.
On Wall Street, US stocks climbed on Tuesday as investor concerns about rising trade tensions between the United States and China eased after Chinese President Xi Jinping promised to cut import tariffs.
The Dow Jones Industrial Average rose 428.9 points, or 1.79 per cent, to 24,408, the S&P 500 gained 43.71 points, or 1.67 per cent, to 2,656.87 and the Nasdaq Composite added 143.96 points, or 2.07 per cent, to 7,094.30.
Back home, investors will now turn their focus to domestic cues such as March retail inflation data and industrial production data due on Thursday and corporate results starting Friday.
(with inputs from Reuters)
AUTO REFRESH ON 