Nifty ends above 11,900, Sensex up 248 points; Tata Steel surges 5%

27 May 2019

Market Close: It was a strong close for the benchmark indices on May 27 with Nifty finished above 11,900 level.

At close, the Sensex was up 248.57 points at 39683.29, while the Nifty was up 80.70 points at 11924.80. About 1782 shares have advanced, 797 shares declined, and 160 shares are unchanged.

Tata Steel, Yes Bank, NTPC, IOC and L&T were the top gainers on the Nifty, while Zee Entertainment, IndusInd Bank, Reliance Industries, Tech Mahindra and Bharti Airtel were the major losers.

Among the sectors, except IT and pharma all other indices ended higher led by infra, metal, PSU bank, FMCG and energy.

Colgate Palmolive Q4 result:

Net profit up 4.7% at Rs 197.6 crore versus Rs 188.8 crore, revenue up 5.7% at Rs 1,154 crore versus Rs 1,092 crore, YoY

EBITDA at Rs 310.7 crore and margin down at 26.9%.

Market Check: The benchmark indices holding on the gains with Nifty around 11,950 level.

The Sensex is up 258.98 points at 39693.70, while Nifty is up 84.10 points at 11928.20. About 1730 shares have advanced, 736 shares declined, and 134 shares are unchanged.

GAIL Q4: Net profit was down 33.2% at Rs 1,122.2 crore against Rs 1,681.2 crore, revenue down 5.2% at Rs 18,763.9 crore against Rs 19,789 crore.

Operating profit or EBITDA down 37% at Rs 1,684.1 crore, while margin at 9% against 13.5%.

One-time loss at Rs 326.3 crore.

Rupee Update: The Indian rupee is trading near its day' low against US dollar. However, it is trading marginally higher at 69.49 per dollar versus Friday's close 69.52.

BHEL Q4 Profit Jumps 49% To Rs 683 Cr

State-owned power equipment maker Bharat Heavy Electricals (BHEL) reported a 49.3 percent year-on-year growth in March quarter profit due to lower other expenses and tax cost.

Profit shot up to Rs 683 crore, against Rs 457.2 crore in same quarter last year.

Revenue from operations during the quarter increased 0.8 percent to Rs 10,297 crore compared to year-ago period, BHEL said.

Adani Gas Gains 6% Post Earnings

Adani Gas' profit in Q4 grew by 60.5 percent sequentially to Rs 75.7 crore as one-time loss narrowed to Rs 2.6 crore against loss of Rs 25 crore QoQ.

Revenue increased 1.9 percent to Rs 494.2 crore QoQ and EBITDA jumped 30.5 percent to Rs 139.6 crore in Q4.

Earnings Performance

PSP Projects' Q4 profit grew by 31 percent to Rs 30.1 crore and revenue increased by 28.3 percent to Rs 338.3 crore in Q4 YoY.

At operating level, EBITDA shot up 37.3 percent to Rs 49.9 crore with margin expansion of 90 bps YoY.

Manpasand Beverages Locked in 20% Lower Circuit:

Bharat Vyas and Dhruv Agrawal resigned as independent director & director.

Till now, three directors of the company have resigned due to GST search.

Market Update

Benchmark indices remained strong for second consecutive session with the Sensex rising 187.29 points to 39,622.01 and the Nifty trading 49.50 points higher at 11,893.60.

The market breadth was also in favour of bulls. About 1,386 shares advanced against 552 declining shares on the BSE.

Market Update: Benchmark indices extend the early morning gains with Nifty around 11,900 level.

The Sensex is up 202.96 points at 39637.68, while Nifty is up 49.60 points at 11893.70. About 1240 shares have advanced, 464 shares declined, and 92 shares are unchanged.

Buzzing: Shares of Lupin declined 5.5 percent in the early trade on Monday after USFDA classified the inspection as official action indicated (OAI).

The company has received a communication from the USFDA classifying the inspection conducted at its Goa facility between January 28 to February 8, 2019 as OAI, company said in release.

Gold Update: Gold prices rose on Monday as fears of a protracted US-China trade war hurt risk sentiment, while poor economic data from the United States bolstered bets of a US Federal Reserve rate cut.

Market opens: It is as flat start for the week on May 27 with Nifty around 11,850.

At 09:17 hrs IST, the Sensex is up 1.36 points at 39436.08, and the Nifty down 4.20 points at 11839.90. About 580 shares have advanced, 345 shares declined, and 67 shares are unchanged.

NTPC, Yes Bank, HDFC, Britannia, Sun Pharma, are among major gainers on the indices, while losers are JSW Steel, Manpasand Beverages, Jet Airways, BPCL, Zee Entertainment, Grasim, Kotak Mahindra Bank, Tech Mahindra, RIL, Adani Port, Bajaj Finserv and IndusInd Bank.

Among sectors, auto, energy and pharma are trading lower, while buying seen in the metal, infra and FMCG.

Rupee Opens: The Indian rupee opened higher by 11 paise at 69.41 per dollar on Monday versus Friday's close 69.52.

Market at pre-open: Indian indices are trading flat with positive bias in the pre-opening session.

At 09:00 hrs IST, the Sensex is up 38.26 points or 0.10% at 39472.98, and the Nifty up 31.10 points or 0.26% at 11875.20.

Morgan Stanley on IGL

Overweight call, target at Rs 351 per share

Reported Q4 earnings that beat our EBITDA estimate & consensus by 9%

Nomura on IGL

Maintain buy rating, target at Rs 400 per share

Q4 ahead driven by solid 17% volume growth

Jefferies on IGL

Buy rating, target at Rs 340 per share

Volume growth stronger than expected; margin below estimates

Kotak Institutional Equities on IGL

Sell rating, target raised to Rs 260 from Rs 250 per share

Raise EPS estimates by 3-4%

Deutsche Bank on IGL

Buy rating, target raised to Rs 375 from Rs 360 per share

CNG volume growth highest in 28 quarters

Nomura on Ashok Leyland

Neutral call, target raised to Rs 97 from Rs 90 per share

Valuations factor in the downcycle; next upcycle unlikely before FY22

CLSA on Ashok Leyland

Sell rating, target at Rs 65 per share

Q4 volumes rose 1% YoY, while EBITDA fell 5% YoY

UBS on Ashok Leyland

Sell rating, target at Rs 80 per share

Profit ahead of consensus on utilisation of tax credit from LCV biz merger

Outlook for FY20 & 21 growth is muted

Kotak Institutional Equities on Ashok Leyland

Maintain buy rating, target cut to Rs 130 from Rs 140 per share

Stock valuations are attractive at 11x FY20e EPS

Expect company to deliver 6% EBITDA CAGR over FY19-21

Jefferies on Whirlpool

Hold rating, target cut to Rs 1,560 from Rs 1,625 per share

Steady quarter; positives priced in; key risks prevail

CLSA on Dish TV

Retain buy rating; target cut to Rs 60 from Rs 70 per share

Migration impacts ARPU & additions; Essel group deleveraging a must

Cut estimates by 1-9% to factor in Q4 performance

Kotak Institutional Equities on JSW Steel

Maintain reduce, target cut to Rs 255 from Rs 265 per share

Good quarter but a challenging year ahead

Kotak Institutional Equities on Whirlpool

Maintain sell call, target at Rs 1,220 per share

Expect 12% EPS CAGR over FY19-21

Cut FY20-21E EPS estimates by 4-5%; sell stays on expensive valuations

Deutsche Bank on Grasim

Buy rating, target at Rs 1,075 per share

Q4 result disappoints on weaker margin

Credit Suisse on Ashok Leyland

Maintain neutral, target at Rs 94 per share

Q4 In-line; pre-buy to provide a near-term trigger

Credit Suisse on Page Industries

Downgrade to underperform from neutral, target cut to Rs 18,700 from Rs 23,221 per share

Q4 results significantly below estimates; profit declines 20.4% YoY

CLSA on IGL

Maintain buy rating, target at Rs 390 per share

Record volume growth across segments drives beat

CLSA on JSW Steel

Sell rating, target at Rs 225 per share

Margin outlook weak while capex is rising

CLSA on NCC

Buy rating, target raised to Rs 145 from Rs 140 per share

FY19 PAT up 91% YoY, but politics drive no guidance

CLSA on NTPC

Buy rating, target at Rs 157 per share

Double-digit PAT growth led by lower under recoveries & surcharges

Asian market trade higher: Asia stocks edged up early on Monday, and the euro was confined to a narrow range after the weekend’s European Parliament elections highlighted the deepening political fragmentation of the 28-country bloc.

Crude Update: Oil prices rose on Monday as ongoing supply cuts led by producer club OPEC kept markets relatively tight, but Brent remained below USD 70 per barrel on concerns over an ongoing trade war between the United States and China.