MARKET WRAP: Indices end flat; SBI gains 4%, Dr Reddy's up 6% post Q4 nos

Markets pared their morning gains to end flat on Tuesday amid weakness in their Asian counterparts

3:44 PM

Nifty PSU bank index ends 3.25% higher. Top gainer:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
PUNJAB NATL.BANK	81.55	78.15	3.40	4.35
SYNDICATE BANK	46.35	44.55	1.80	4.04
ST BK OF INDIA	253.90	244.45	9.45	3.87
BANK OF BARODA	132.90	129.90	3.00	2.31
UNION BANK (I)	88.40	86.95	1.45	1.67

3:38 PM

Nifty sectoral performers

3:36 PM

BSE Sensex: Dr Reddy's top gainer of the day, Asian Paints top loser

3:33 PM

Market at close

 

The S&P BSE Sensex ended at 34,651, up 35 points while the broader Nifty50 index settled at 10,537, up 20 points.

3:27 PM

Dr Reddy's Q4 profit falls 19 % on US headwinds, revenue drops to Rs 14 bn

Indian generic drugmaker Dr. Reddy's Laboratories Ltd posted a 19 percent drop in quarterly net profit on Tuesday, missing analysts' estimates, pulled down by headwinds in the US market.

 

The company's net profit, for the quarter ended March 31, came in at 2.72 billion rupees ($39.98 million), compared with 3.38 billion rupees a year earlier, the company said. READ MORE

Stock Quote:

3:15 PM

RCom gains as company files appeal before NCLAT against NCLT order

Reliance Communications (RCom) has moved higher by upto 19% to Rs 15.95 in noon deal, bouncing back 24% from its early morning low on the BSE after the company filed appeal before the Hon’ble National Company Law Appellate Tribunal (NCLAT) against the Hon’ble National Company Law Tribunal (NCLT) order. The stock hit an intra-day low of Rs 12.90 on the BSE. READ MORE
 

3:05 PM

SBI Q4 loss widens to Rs 77.18 bn as higher NPAs worsen asset quality

State Bank of India (SBI) reported whopping Rs 77.18 billion loss in its fourth quarter, against Rs 28.14 billion profit in the same quarter an year ago, as asset quality worsened significantly and the lender provided huge money as provision against its stressed loans READ MORE

Rajnish Kumar. (Photo: Reuters)

2:59 PM

Sugar stocks rise up to 20% Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
RAJSHREE SUGARS	33.10	27.65	5.45	19.71
SIR SHADI LAL	37.95	34.45	3.50	10.16
BALRAMPUR CHINI	71.85	66.00	5.85	8.86
DWARIKESH SUGAR	25.55	23.50	2.05	8.72
DHAMPUR SUGAR	100.90	93.15	7.75	8.32

2:45 PM

Q4 results: Amara Raja trails Exide for third straight quarter

 

The Amara Raja stock corrected over 8 per cent intraday on its weak March quarter performance, and downward revision of margin estimates by brokerages for FY19. While the stock recovered from its intraday lows, a weak industrial segment as well as any upward movement of lead prices will be overhangs.

 

A major headwind is margin pressure because of the lead prices, which have hit their highest levels in at least five years in the March quarter. READ MORE

2:30 PM

NEWS ALERT SBI reports loss of Rs 77.18 billion vs PAT of Rs 28.14 billion

Earnings Impact

2:15 PM

Political overhang on fuel pricing amid elections to keep OMC stks in check

 

A rise in crude oil prices, especially in an election year, has seen oil marketing companies – Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL) and Indian Oil (IOC) – underperform the markets thus far in calendar year 2018 (CY18).

 

Analysts attribute this underperformance to the fear government intervention to keep prices of auto fuels – petrol and diesel – under check amid rising crude oil price (up 16 per cent YTD and around 45 per cent y-o-y) since it is a politically sensitive issue. READ MORE

Daily fuel revision

2:02 PM

Market Check

 

S&P BSE Sensex	34,670.95		0.16%
Nifty 50	10,531.95		0.14%
S&P BSE 200	4,569.98		0.34%
Nifty 500	9,141.15		0.36%
S&P BSE Mid-Cap	15,735.20		0.64%
S&P BSE Small-Cap	17,071.69		0.74%

1:46 PM

As rising oil prices combine with politics, rupee may fall to record low

Prime Minister Narendra Modi and the rupee face a similar predicament -- old foes have re-emerged to keep them in check. Brent crude rose above $80 a barrel last week for the first time since 2014, and is looking ominous for the nation’s budget deficit, inflation and the currency. READ MORE
 

1:32 PM

Gold prices slip as investors eye riskier assets

Gold prices dipped slightly on Tuesday, hovering not far off a 2018 low struck in the previous session as a firm dollar near five-month highs and optimism in global markets curbed appetite for the precious metal.

 

Spot gold was down 0.2 per cent at $1,290 per ounce. In the previous session, it slid to $1,281.76, its lowest since Dec. 27. US gold futures for June delivery slipped 0.1 per cent to $1289.8 per ounce. READ MORE

Gold

1:17 PM

Strong Q4 result lift Action Construction Equipment

Action Construction Equipment gained 4.1% to Rs 170.20 on BSE, after net profit jumped 921.9% to Rs 21.46 crore on 59.24% rise in total income to Rs 369.91 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours on Monday, 21 May 2018. READ MORE

1:04 PM

Bajaj Finance, Bajaj Finserv hit record highs in a flat market

Shares of Bajaj Finserv and its lending and wealth advisory arm Bajaj Finance have hit their respective record highs on the BSE in intra-day trade in otherwise flat market.
 

Bajaj Finance hit a new high of Rs 2,177, surging 19% in past eight trading sessions. On comparison, the S&P BSE Sensex was down 2.2% since May 10, 2018. READ MORE

12:45 PM

UltraTech, BHEL, Bharti Airtel among 41 stocks from BSE500 hit 52-week low

UltraTech Cement, Bharat Heavy Electricals Limited (BHEL), Bharti Airtel, Ceat, Engineers India, BEML, Jet Airways and Rallis India were among 41 stocks from the S&P BSE500 index hitting their respective 52-week lows on the BSE in intra-day trade on Tuesday.
 

Castrol India, LIC Housing Finance, Ajanta Pharma, Mahanagar Gas, Apollo Hospitals, CRISIL, Power Finance Corporation (PFC), Rural Electrification Corporation (REC), UPL and Vakrangee were among notable stocks too hit their respective 52-week lows today. READ MORE

12:31 PM

Asia Check

Asian shares skidded on Tuesday as a strong dollar sapped demand for emerging market assets while surging oil prices stoked concerns about a flare-up in inflation and faster U.S. interest rate increases.

 

Japan’s Nikkei ended 0.2% lower and Australian shares fell 0.7%. Chinese stocks were in the red too with the blue-chip CSI300 off 0.5%.

 

Even though most major Asian markets edged lower, MSCI’s broadest index of Asia-Pacific shares outside Japan managed to eke out a small 0.17% gain.

12:16 PM

Colgate-Palmolive: Focus on cost-efficiencies led to margin gains

 

Colgate-Palmolive India (Colgate), on Monday, reported a strong 32.4 per cent year-on-year jump in net profit for the March 2018 quarter (Q4), with net profit up 32.4 per cent. This was mainly owing to margin expansion.

 

It has beaten Street expectations of 20-25 per cent growth in net profit. With better cost efficiencies, Colgate experienced a 299-basis point (bps) year-on-year(y-o-y) gross margin expansion to 65.4 per cent. READ MORE

12:00 PM

Market at noon

 

S&P BSE Sensex	34,617.32		0.00%
Nifty 50	10,519.10		0.02%
S&P BSE 200	4,561.82		0.16%
Nifty 500	9,123.40		0.16%
S&P BSE Mid-Cap	15,692.52		0.36%
S&P BSE Small-Cap	17,032.16		0.51%

11:45 AM

What makes UltraTech's acquisition of Century Textiles a clever move

 

UltraTech’s acquisition of Century Textiles’ 13.4 million tonnes (mt) cement capacity for an enterprise value of $106 per tonne has got a good response from the Street and analysts, with the company likely to gain in many ways.

 

On a day when the broader markets fell, the UltraTech stock ended almost flat. While finding valuations attractive (cost 7-8 per cent lower than earlier Jaiprakash Associates’ capacity acquisition), analysts at Motilal Oswal Securities estimate UltraTech’s capacity-based market share to rise by 3 percentage points. READ MORE

11:30 AM

Top BSE500 gainers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
JP ASSOCIATES	15.30	1.10	7.75	4559496
JUST DIAL	430.25	22.95	5.63	516189
VENKY'S (INDIA)	3167.75	165.55	5.51	24252
NCC	102.90	5.35	5.48	190909
CYIENT	800.00	36.05	4.72	9228

11:14 AM

Nifty small cap index enters bear territory, sheds 20% from mid-Jan peak

 

The Nifty Smallcap 100 index, a measure of the performance of companies with market capitalisation of $1 billion, has slipped into bear market territory. The index is down 20 per cent from its peak touched in mid-January. The Nifty Smallcap 100 index has slipped more than nine per cent in May and is on course to post its worst monthly drop in over 18 months. The performance of the Nifty Midcap 100 index, which consists of companies with market cap between $1.5 billion and $4 billion, is equally bad. The index is down 15 per cent from its peak in January and is down 8.5 per cent this month. READ MORE

11:00 AM

Largest shareholder T Rowe Price seeks govt role in UTI MF board issues

The tussle between principal shareholders of UTI Mutual Fund (MF) has escalated, with the largest shareholder, T Rowe Price Group, raising concerns over the functioning of the board. According to sources, T Rowe Price has shot a strongly worded letter to the finance ministry and the Securities and Exchange Board of India (Sebi), alleging the board is deliberately trying to delay the initial public offering (IPO) of UTI MF. READ MORE
 

10:47 AM

Tata Motors stock's underperformance may continue till JLR sales improve

 

Though Tata Motors’ share price is already down 3-plus per cent over a year, multiple headwinds mean it is likely to continue lagging its peers and the benchmark Sensex. Consistent volume growth at its British-based arm, Jaguar Land Rover (JLR), is crucial for a re-rating. Monday saw the stock reach a 26-month low.

 

It has been the biggest underperformer among frontline automobile stocks over the past year, shedding 33 per cent of its value. In comparison, the broader markets and the peer index (excluding Tata Motors) are up 13-14 per cent. READ MORE

10:36 AM

Why mining rig company Canaan is planning $2 bn IPO in wobbly bitcoin world

Bitcoins are worth less than half of what they were in December. Mining them is 60 percent less profitable than it was in 2017. Even retailers of hobbyist mining rigs say they are seeing fewer customers.

 

Why, then, is Canaan Inc, a leading cryptocurrency mining rig supplier, looking to raise up to $2 billion, according to two sources with knowledge of the deal, in the world's biggest bitcoin-focused initial public offering to date? READ MORE

10:19 AM

Mahanagar Gas hits fresh 52-week low on disappointing Q4 results

Shares of Mahanagar Gas (MGL) have slipped 7% to Rs 785 per share, also their fresh 52-week low on the BSE in early morning trade, after the company reported a lower than expected year-on-year growth of 5.3% in net profit at Rs 1.05 billion in March quarter owing to sharp decline in margins and marginally lower volume growth. Operational revenue grew 11.7% at Rs 6.44 billion over the previous year quarter. READ MORE
 

10:05 AM

Market Check

 

S&P BSE Sensex	34,736.37		0.35%
Nifty 50	10,545.85		0.28%
S&P BSE 200	4,572.17		0.39%
Nifty 500	9,137.20		0.31%
S&P BSE Mid-Cap	15,716.62		0.52%
S&P BSE Small-Cap	17,039.63		0.55%

9:48 AM

Q4 results: Amara Raja trails Exide for third straight quarter

The Amara Raja stock corrected over 8 per cent intraday on its weak March quarter performance, and downward revision of margin estimates by brokerages for FY19. While the stock recovered from its intraday lows, a weak industrial segment as well as any upward movement of lead prices will be overhangs. READ MORE
 

9:31 AM

State Bank of India to post Rs 20.76 billion Q4 loss, expect analysts

State Bank of India (SBI) is expected to report a Rs 20.76 billion loss for the March quarter when it announces its results on Tuesday, data from Bloomberg indicates. This will be the second consecutive quarterly loss for the country's largest banker.

 

SBI had posted a loss of Rs 24.16 billion in the December quarter, its first in nearly 19 years, as the Reserve Bank of India (RBI) asked the bank to reclassify its over Rs 230 billion loans as non-performing assets (NPAs). READ MORE

State Bank of India (SBI)