May 24, 2018 03:36 PM IST | Source: Moneycontrol.com
Closing Bell: Sensex up over 300 pts, midcaps underperform; IT zooms, ONGC dips
The share price of construction company NCC rallied nearly 10 percent following healthy earnings for the quarter ended March 2018.
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Market Outlook: Hemang Jani, Head - Advisory, Sharekhan
Benchmark indices rose, driven by IT stocks, such as, Infosys and TCS on the back of a weak rupee. The IT index has gained 18 percent so far this year. The rupee has weakened by more than 7 percent so far this year, as surging crude oil prices weigh on India, the world’s third-largest importer, raising fears that soaring costs could drive up inflation and widen the trade deficit.
Meanwhile, ONGC ended the day 4 percent lower after falling 10 percent in intraday trade after the media reports suggested that the government may ask the company to share the burden to reduce fuel price.
We continue to be positive on the overall market and recommend buying stocks in the private banks, consumption space where earnings momentum are strong. Some of the stocks which we like are Godrej Agrovet, Bajaj Finance, Kotak Bank and Relaxo Footwear.
Banks, IT stocks lift Sensex 318 pts; Nifty above 10,500, midcaps underperform
ONGC share price plunged 11 percent intraday, but recovered some of losses to end down 4.4 percent amid fears of a windfall tax levy on oil producers.
Tie-Up: Leading stock exchange BSE said it has joined hands with Brink's India Pvt Ltd for supporting its much-awaited launch of bullion - gold and silver - commodities trading.
Under the agreement, Brink's would provide vaulting and logistics services to BSE for the purpose of storage of gold and silver commodities at various places in India, the exchange said in a statement.
This arrangement with Brink's is part of the exchange's preparation to launch commodity derivatives transactions, reports PTI.
Fund raising: Auto component maker Minda Corporation today said it has raised Rs 310 crore from qualified institutional placement (QIP) of shares.
International and domestic institutional investors participated in the issue, Minda Corporation said in a statement.
"This helps us prepare for aggressively pursuing future growth and also expanding our shareholder base," Minda Corporation Chairman and Group CEO Ashok Minda said.
Minda Corporation has a diversified product portfolio that encompasses safety, security and restraint systems; driver information and telematics systems and interior systems for auto OEMs, reports PTI.
Jet Airways in focus: With Jet Airways incurring a huge fourth quarter loss of over Rs 1,000 crore, its auditors have said the "appropriateness of assumption of going concern" for the company depends on its ability to raise necessary funds, among other factors.
In accounting parlance, the 'going concern assumption' means that the company will remain in business for the foreseeable future without being forced to halt operations and liquidate its assets.
The airline posted a whopping Rs 1,036 crore net loss for the March quarter due to rise in oil prices and weaker rupee, compared to a profit of Rs 602.4 crore in the corresponding period of FY17.
The Naresh Goyal-owned full service carrier reported a quarterly loss for the first time in eleven quarters, reports PTI.
Market Closing: Benchmark indices regained strength in late trade on short covering, with the Sensex rising 318.20 points or 0.93 percent to 34,663.11.
The 50-share NSE Nifty rallied 83.50 points or 0.80 percent to 10,513.90.
Tata Motors, GAIL and ONGC fell 4-7 percent while TCS, Infosys, Axis Bank and Bharti Airtel gained up to 4 percent.
Nifty Midcap fell 70 points on weak market breadth. About 1,087 shares declined against 997 advancing shares on teh NSE.
REC, Jubilant Foodworks, Parag Milks Foods, Hexaware, KPIT Tech and L&T Infotech gained up to 5 percent.
United Spirits, Jet Airways, Bharat Forge and Motherson Sumi fell up to 6 percent.
Earnings Reaction: 20 Microns share price rallied 5 percent after March quarter profit jumped to Rs 3.4 crore from Rs 0.7 crore and revenue grew by 14.5 percent to Rs 101.1 crore YoY.
EBITDA (earnings before interest, tax, depreciation and amortisation) jumped 65.6 percent to Rs 12.9 crore and margin expanded 390 basis points to 12.7 percent compared to year-ago.
Buzzing: Shares of V-Mart Retail added 5.5 percent intraday Thursday as company reported 148 percent jump in its Q4FY18 net profit at Rs 15.9 crore versus Rs 6.4 crore in same quarter last year.
Revenue was up 18 percent at Rs 297.4 crore against Rs 252 crore.
Operating profit or EBITDA rose 55 percent at Rs 23.1 crore and margin was up at 7.8 percent.
V-Mart Retail was quoting at Rs 2,326.30, up Rs 61.60, or 2.72 percent on the BSE.
Gail Q4 results: The company has registered nearly 300 percent jump in its Q4 net profit at Rs 1,021 crore against Rs 260 crore in the same quarter last fiscal.
Meanwhile, profit of the company declined by 19 percent on sequential basis.
Revenue from operation was up at Rs 15,430.69 crore versus Rs 13,674 crore.
The board of directors of the company recommended the payment of final dividend at 14.40 percent (Rs 1.44 per share) for the FY 2017-18, subject to approval of shareholders in the ensuing annual general meeting.
ONGC in focus: ONGC share price losses trimmed to 4.5 percent from 11 percent amid the news that the government may levy a windfall tax on oil producers.
NSE Now Software Problem: NSE Now, a web-based trading software used by the National Stock Exchange, is facing technical problems and has been shut down temporarily, CNBC-TV18 reported.
The software is shut down for brokers and sub-brokers. NSE informed brokers, saying that there is a technical problem and the exchange is trying to rectify the same.
NSE NOW is a licensed trading software that offers direct connectivity to NSE exchange for trade execution and data feeds through trading terminals, web-based browsers and mobile devices.
NOW supports trading in all of the products on NSE cash and derivatives markets, as well as mutual fund units on exchange and trading on other exchanges.
Members are able to access smart order routing, historical and real-time intra-day charting and other user friendly tools. In addition to its trading desk features, NOW has a built-in risk management system and allows access to our suite of data feed products, NSE said on the website.
Buzzing: Somany Ceramics share price fell 5 percent after its March quarter net profit declined 7.2 percent year-on-year to Rs 23.5 crore and revenue slipped 4.9 percent to Rs 526.7 crore.
EBITDA (earnings before interest, tax, depreciation and amortisation) was down 4.7 percent at Rs 46.6 crore but margin improved 10 basis points to 8.9 percent compared to year-ago.
The company posted one-time loss at Rs 1.9 crore in Q4FY18 against Rs 4.1 crore in Q4FY17.
Earnings Reaction: Heidelberg Cement share price jumped more than 5 percent after March quarter profit shot up 40.8 percent to Rs 52.1 crore from Rs 37 crore in same period last year.
Revenue from operations grew by 14.8 percent to Rs 531.3 crore compared to Rs 462.9 crore in corresponding period last year.
EBITDA (earnings before interest, tax, depreciation and amortisation) zoomed 51.4 percent year-on-year to Rs 120.2 crore and margin expanded 550 basis points to 22.6 percent in Q4FY18.
Market Update: The market continued to trade higher, with the Sensex rising around 200 points on support from technology and banking & financial stocks. Sharp selling pressure in ONGC and Tata Motors capped gains.
The Nifty Midcap index continued to trade lower, falling more than half a percent.
Tata Motors declined more than 7 percent as global brokerage houses CLSA, Jefferies, Morgan Stanley slashed target prices by 10-16% after weak Q4 earnings.
The 30-share BSE Sensex rose 209.54 points to 34,554.45 and the 50-share NSE Nifty gained 46.30 points at 10,476.70.
Banks' Credit & Deposits: Banks' credit grew by 12.64 percent year-on-year to Rs 85,51,099 crore in the fortnight ended May 11, 2018, according to an RBI data.
In the similar fortnight ended May 12, 2017, banks' advances stood at Rs 75,90,941 crore.
In the previous fortnight ended April 27, 2018, bank credit had increased by 12.61 per cent to Rs 85,38,570 crore, from Rs 75,82,391 crore in the period ended April 28, 2017.
Banks' deposits grew by 7.61 percent to Rs 1,13,92,165 crore in the fortnight ended May 11, 2018, compared with Rs 1,05,86,083 crore in the fortnight ended May 12, 2017, the data by Reserve Bank of India (RBI) showed.
Results: Zydus Wellness share price rebounded after strong set of earnings for March quarter. Profit grew by 21.9 percent year-on-year to Rs 36.3 crore and revenue from operations increased 15.9 percent to Rs 131.7 crore in Q4FY18.
EBITDA (earnings before interest, tax, depreciation and amortisation) shot up 25 percent to Rs 33.4 crore and margin expanded 190 basis points to 25.4 percent compared to year-ago.
Earnings Reaction: Manugraph India share price rallied 10 percent after the company narrowed loss to Rs 8.7 crore for the March quarter from Rs 47.1 crore in year-ago.
Revenue from operations during the quarter grew by 14.2 percent to Rs 80.7 crore compared to Rs 70.7 crore in same period last year.
NCLAT admits banks' petition over Jaypee land: The National Company Law Appellate Tribunal admitted a petition filed by banks against the NCLT order which had directed Jaiprakash Associates to return nearly 760 acres of land to its subsidiary Jaypee Infratech.
A two-member bench headed by Chairman Justice S J Mukhopadhaya also issued notices to the resolution professional (RP) of the company over the petition filed by three lenders -- Axis Bank, Standard Chartered Bank and ICICI Bank.
The bench fixed July 13 as the next date of hearing, reports PTI.
Fortis in Focus: Manipal-TPG combine has said it has extended the validity of its modified offer for Fortis Healthcare to June 6, 2018.
On May 17, Malaysian firm IHH Healthcare Berhard had extended the acceptance period of its enhanced revised proposal for Fortis to May 29.
In a letter to the directors of Fortis Healthcare Ltd (FHL), Manipal-TPG combine said it understands that the FHL board is still in the process of considering the modified new offer.
"As you are aware, our modified new offer is valid till May 29, 2018 and in order to provide the FHL board with sufficient time to consider our modified new offer, we propose to extend the validity of our modified new offer...," the letter added.
The modified new offer shall remain valid and binding in its entirety until June 6, 2018, for acceptance by FHL Board and for recommendation to the shareholders of FHL, Manipal-TPG combine said, reports PTI.
Market Update: The market traded strong, but is off its day's high. Technology and banking & financials stocks continued to lend support to the market while the selling in ONGC and Tata Motors capped gains.
The 30-share BSE Sensex rose 247.96 points to 34,592.87 and the 50-shrae NSE Nifty gained 60.40 points at 10,490.80 while the Nifty Midcap index lost half a percent.
ONGC extended losses to over 7 percent after a media report indicated that the government may levy a windfall tax on oil producers.
Earnings: Construction company NCC has reported healthy earnings for the March quarter 2018, backed by strong operational growth.
Net profit during the quarter grew by 61.2 percent to Rs 102.7 crore compared to Rs 63.7 crore in corresponding period last fiscal.
Revenue from operations increased 11.9 percent year-on-year to Rs 2,395 crore for the quarter ended March 2018.
EBITDA (earnings before interest, tax, depreciation and amortisation) shot up 74.8 percent to Rs 304.4 crore and margin expanded 460 basis points to 12.7 percent compared to year-ago.
Market Update: Benchmark indices recouped all its previous day's losses as the Sensex rallied 327.47 points or 0.95 percent to 34,672.38, backed by technology and banking & financial stocks.
ITC (up 1.2 percent) and Reliance Industries (0.6 percent) also lent support to the market.
The 50-share NSE Nifty rose 83 points to 10,513.40 while the Nifty Midcap index continued to trade in the red, down 0.3 percent.
Novelis to Double Automotive Aluminum Capacity in China: Novelis Inc, the world leader in aluminum rolling and recycling, announced it will invest approximately $180 million to double its automotive aluminum body sheet capacity at its Changzhou facility in China.
The investment will be a continuous annealing solution heat (CASH) treatment line that will add approximately 100 kilotonnes of capacity and will include a high-speed slitter as well as a fully automated packaging line, Hindalco said in its filing.
Windfall oil tax on ONGC in offing to soften fuel prices: The government may levy a windfall tax on oil producers like Oil and Natural Gas Corp (ONGC) as part of a permanent solution it is working on for moderating the spiralling retail prices of petrol and diesel.
The tax, which may come in form of a cess, will kick in the moment oil prices cross USD 70 per barrel, sources privy to the development said.
Under the scheme, oil producers, who get paid international rates for the oil they produce from domestic fields, would have to part with any revenue they earn from prices crossing USD 70 per barrel mark.
The revenues so collected would be used to pay fuel retailers so that they absorb spikes beyond the threshold levels, they said.
This may be accompanied by a minor tinkering with excise duty rates to give immediate relief to consumers. States too would be asked to cut sales tax or VAT to show a visible impact on retail prices, reports PTI.
Drug Approval: Aurobindo Pharma, Sun Pharma & Ajanta Pharma have received tentative approval for Tadalfil tablets that are used to treat arterial hypertension & erectile dysfunction.
Market Update: Benchmark indices extended gains in afternoon, backed by technology stocks. HDFC, ICICI Bank, Reliance Industries and ITC also supported the market
The 30-share BSE Sensex rallied 222.81 points to 34,567.72 and the Nifty is inching towards 10,500, up 54.90 points at 10,485.30while the Midcap index continued to underperform frontliners, falling 0.3 percent.
Country's largest IT services firms Infosys and TCS rose nearly 3 percent on favourable rupee movement.
Buzzing: Aditya Birla Capital share price gained more than a percent after global brokerage house Credit Suisse has initiated Outperform rating on the stock with a price target of Rs 175, implying a 24 percent potential upside from Wednesday's closing price.
The company is a financial conglomerate with mix of leading and emerging businesses.
Life insurance business is showing improving profitability, the research house said, adding the key catalyst for lending business could be an upgrade in credit rating.