May 22, 2018 10:18 AM IST | Source: Moneycontrol.com
Market Live: Sensex trades higher, Nifty reclaims 10,550; Midcap index also rebounds
Asian markets were subdued, shrugging off gains seen on Wall Street as recent US-China trade tensions cooled.
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Here are the top headlines from Moneycontrol News' Anchal Pathak
Rupee Update: The rupee recovered from its 16-month low to trade 12 paise higher at 67.99 against the US dollar in early session today, after opening 10 paise higher, on fresh selling of the dollar by exporters and banks.
Forex dealers said besides selling of the American currency by exporters and banks, weakness in the dollar against other currencies overseas supported the rupee.
Further, investor sentiment turned positive on easing trade woes between the US and China leading to a higher opening of the domestic equity market, boosting the domestic unit, they added.
Yesterday, the rupee had lost 12 paise to close at a fresh 16-month low of 68.12 against the US currency on sustained dollar demand from importers and corporates amid weak global cues, reports PTI.
Buzzing: Shares of Just Dial soared 8 percent as investors cheered strong growth in its net profit for the March quarter.
The listings portal posted 53 percent growth in its net profit for the March quarter to Rs 39 crore against Rs 25.4 crore posted for the corresponding quarter of last year.
Its revenues rose 10 percent at Rs 200.5 crore against Rs 181.7 crore year on year.
At an operating level, the earnings before interest, taxes, depreciation and amortisation (EBITDA) rose over 42 percent at Rs 45.8 crore against Rs 32.2 crore during the March quarter of FY17.
Meanwhile, the operating margin was reported at 22.9 percent, higher than 17.7 percent posted last year.
Traffic (unique visitors) for the quarter stood at 111.6 million, up 28.6 percent YoY and 3.7% QoQ. 70.8% traffic originated on mobile platforms, 21.5 percent on desktop/ PC and 7.7 percent on Voice platform, the company said in a statement.
Market Update: Benchmark indices gained strength after early consolidation, with the Sensex rising 121.28 points to 34,737.41.
The Nifty rose 39 points to 10,555.70, backed by HDFC twins and ICICI Bank.
The market breadth also improved as about 1,053 shares advanced against 785 declining shares on the BSE.
Earnings Reaction: Share price of Dhunseri Petrochem locked at 10 percent lower circuit on the back of poor March quarter numbers.
There were pending sell orders of 29,495 shares, with no buyers available.
The company has posted net loss at Rs 12.5 crore versus loss of Rs 69.6 crore. Revenue for the quarter stood at Rs 172.8 crore.
The company has entered into a share purchase agreement with Egyptian Petrochemicals Holding Company (ECHEM) for the purchase of its 23 percent stake in joint venture company - Egyptian Indian Polyester Company S.A.E (EIPET) in 7 tranches, as per company release.
Buzzing: Shares of Bajaj Auto gained around 2 percent during the morning trade as investors bet on ratings upgrade by Nomura.
Nomura upgraded the stock to ‘Buy’ from ‘Neutral’ and raised the target price to Rs 3,395 from Rs 3,252, implying a marginal upside of around 4 percent.
Analysts at the firm wrote in a note that export outlook for the company has improved and that markets such as that of Nigeria have also witnessed a recovery.
Going forward, it expects improvement in rural demand to boost domestic motorcycle sales. In terms of valuations, it said that the stock is trading at 14 times FY20 EPS, which is currently attractive.
CLSA, meanwhile, has maintained its outperform call on the stock, but cut its target to RS 3,060 from Rs 3,550 apiece. This implies a downside of 14 percent, which the firm said is on the back of expensive valuations.
It observed that volume growth for the company had improved, led by a cyclical recovery in exports, while its domestic 2-wheeler market share is under pressure. The brokerage also sees margin headwinds from increasing commodity prices. At a valuation of 18 times FY19 PE, the stock is not cheap despite a recent correction, it said, adding that it cut FY19-20 EPS By 4-5 percent.
Market Update: The market continued to consolidate as investors monitor corporate earnings, movement in crude oil prices and rupee.
The 30-share BSE Sensex was down 26.49 points at 34,589.64 and the 50-share NSE Nifty fell 11.50 points to 10,505.20. About three shares declined for every two shares rising on the BSE.
The Nifty Midcap index underperformed frontliners, falling half a percent while PSU Bank corrected a percent as traders prefer to book profit after more than 2.5 percent rally seen in previous session.
The Indian rupee appreciated 18 paise to trade at 67.94 against the US dollar while Brent crude futures, the international benchmark for oil prices, traded above $79 a barrel.
Buzzing: Shares of Future Retail declined nearly 7 percent on the back of weak set of numbers reported by the company in the quarter ended March 2018.
The company has reported net loss at Rs 463.6 crore in the quarter ended March 2018 against profit of Rs 123 crore in the same quarter last year.
The net loss of Rs 463.6 crore includes non-cash exceptional loss of Rs 604 crore post demerger of retail business undertaking of Hypercity Retail
Revenue of the company increased to Rs 4,574.65 crore from Rs 4,383.84 crore. The operating profit or EBITDA was up at Rs 201.9 crore and margin was at 4.4 percent.
Glenmark submits new drug to USFDA: Glenmark Pharmaceuticals has submitted a New Drug Application (NDA) to the US Food & Drug Administration (FDA) for its leading respiratory pipeline candidate Ryaltris, an investigational fixed-dose combination nasal spray of an antihistamine and a steroid, as a treatment for seasonal allergic rhinitis (SAR) in patients 12 years of age and older.
Ryaltris (olopatadine hydrochloride (665 mcg) and mometasone furoate (25 mcg)), formerly GSP 301 Nasal Spray, has been conditionally accepted by the FDA as the brand name, it said.
Glenmark expects the FDA will determine whether the NDA is complete for filing within 60 days. "If the NDA is accepted, the Prescription Drug User Fee Act (PDUFA) target action date will be assigned at that time. Glenmark has studied Ryaltris in seven clinical trials involving more than 4,000 patients."
Order Win: The Buildings & Factories business of L&T Construction has bagged orders worth Rs 4,033 crore.
Buildings & Factories IC has won a prestigious order from a reputed government client for the design & construction of 1,125 Nos of Residential towers of G+3 floors under PMAY Scheme at Visakhapatnam, Prakasam, Guntur, and Krishna Districts in Andhra Pradesh, to be completed within stringent timelines.
Another order has been secured from a leading cement manufacturer for the construction of cement plants in Odisha and Andhra Pradesh on the design and build model. The business has bagged another turnkey order from a government client in Patna (Bihar) to establish a cancer institute along with the supply, installation and commissioning of medical equipment.
Crude Update: Oil prices rose amid worries that Venezuela's crude output could drop further following a disputed presidential election in the country and with potential sanctions on the OPEC-member.
Brent crude futures were at $79.38 per barrel, up 0.20 percent, from their last close. Brent broke through $80 for the first time since November 2014 last week.
US West Texas Intermediate (WTI) crude futures were at $72.44 a barrel, up 0.28 percent from their previous settlement, reports CNBC.
Market Opening: Benchmark indices started off trade on a flat note, tracking mixed trend seen in Asian stocks.
The 30-share BSE Sensex was up 30.63 points at 34,646.76 and the 50-share NSE Nifty rose 15.30 points to 10,532.
Coal India, ONGC, NTPC and BPCL were early gainers while Bharti Airtel, Lupin, SBI, Bharti Infratel, Grasim, M&M and Hindalco Industries were under pressure.
Nifty Midcap index was down 9 points.
Just Dial, Motilal Oswal, Triveni Engineering, Intellect Design, ACE and Astrazeneca gained up to 5 percent.
Mahanagar Gas, Globus Spirits, Redington, DLF, Future Retail, Hatsun Agro, Jet Airways, Canara Bank, Bank of India, Bank of Baroda and IFCI were down up to 6 percent.
SGX says to list Indian derivatives despite legal move by Indian bourse
In April, SGX said it would list new Indian equity derivative products in June, a move which follows a decision by India's three main bourses to stop licensing their indexes to overseas exchanges.
Markets@Moneycontrol: Nifty likely to open flat; 3 stocks which you can go short on
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 27 points, or 0.26 percent. Nifty futures were trading around 10,515 on the Singaporean Exchange.
Results Today: SBI, IOCL, HPCL, Cipla, Bharat Forge, Dr Reddy Labs, Symphony, Future Consumer, Bata India, Andhra Bank, VIP Industries, KIOCL, Bosch, L&T Technologies, Minda Industries, Sundaram-Clayton, GE-Power, APL Apollo Tubes, Ratnamani Metal, Jamna Auto, CARE rating, Sonata Software, Triveni Turbine, Igarashi Motor, TV Today Network, MBL, Allcargo Logistic, Dhanuka Agritech, Healthcare Global, National Standard, BLS International, Ballarpur Indus, Marathon Nextgen, Capital trust, Salasar Techno, TPL Platech and TVS Srichakra will announce quarterly earnings today.
Stocks in the news: SBI, Cipla, Just Dial, DHFL, Redington India, Future Retail, BoB
Here are the stocks which are in news today: Results Today: SBI, Cipla, Dr Reddy's Laboratories, HPCL, IOC, Sonata Software Dhunseri to buy Egyptian co in joint venture Balaji Telefilms
Earnings Poll: State Bank of India, country’s biggest bank, is likely to post a loss of Rs 1,270.5 crore for the January to March quarter in FY18, pinched by deterioration in asset quality and surge in provisions towards the same.
The loss is projected by a Reuters’ poll in comparison to a net profit of Rs 2,814.82 crore in the same quarter a year ago.
SBI's Q4 financial results for FY18 will be announced post 12 pm on Tuesday and Chairman Rajnish Kumar along with the bank's management will address the media around 2.15 pm.
In the December quarter, SBI had posted a surprise net loss of Rs 2,416 crore after its gross non-performing assets (NPAs) jumped to 10.35 percent of total loans, highest in over 15 years.
For the quarter under review, provisions towards likely losses in its bond portfolio due to rising government bond yields and further additions due to the Reserve Bank of India’s (RBI) revised bad loan framework may hit the lender’s bottomline.
Market Pre-Opening: Benchmark indices were flat in pre-opening, following muted trend seen in Asian stocks.
The 30-share BSE Sensex was up 27.59 points at 34,643.72 and the 50-share NSE Nifty fell 32.20 points to 10,484.50.
Just Dial gained 6 percent while Future Retail, DLF and Mahanagar Gas were under pressure.
US stocks rose on Monday and gains in industrials helped propel the Dow to a more than two-month closing high, after a truce between the United States and China calmed fears that a trade war might be imminent, said a Reuters report.
Asian markets were subdued, shrugging off gains seen on Wall Street as recent US-China trade tensions cooled. The Nikkei 225 tracked lower by 0.08 percent after starting the session with slight gains, it said.