MARKETS ON FRIDAY: Sensex hits 35k intraday; trims gains to end 256 pts up

Sensex hits 35,000 levels in intraday trade, led by gains in banking stocks. In corporate results, Maruti reported FY18 net at Rs 77.21 billion. Stock ended 1.9% lower at Rs 8,778 levels

11:21 AM

RESULT PREVIEW Motilal Oswal expects Maruti to hit Rs 14,000; here's Q4FY18 results preview

On Friday, Maruti Suzuki will report the financial performance for the January – March 2018 quarter (Q4FY18) and the full financial year 2017-18 (FY18).

 

The automobile sector, which witnessed a healthy sales growth in FY18 led by higher demand from rural markets and the fast-growing SUV segment, should continue to do well in the new fiscal year (FY19) as well, analysts say READ MORE

11:14 AM

HIL surges 9% as Q4 profit rises more than double

Shares of HIL have surged 9% to Rs 2,267 per share, also their record high on the BSE, after the company reported more than double net profit at Rs 200 million for the quarter ended March 2018 (Q4FY18). The CK Birla Group Company engaged in cement & cement products business had profit of Rs 70 million in year ago quarter. READ MORE

11:01 AM

SAT adjourns RIL plea against Sebi's disgorgement order till June 20

The Securities Appellate Tribunal (SAT) on Thursday adjourned hearing in the appeal filed by Reliance Industries (RIL) against the Securities and Exchange Board of India’s (Sebi’s) disgorgement order. The tribunal will hear the matter on June 20.

 

RIL has moved SAT against Sebi order, directing it to disgorge Rs4.5 billion made “unlawfully” by dealing in shares of its erstwhile subsidiary Reliance Petroleum (RPL). READ MORE
 

10:46 AM

Axis Bank posts first quarterly loss since listing in 1998 at Rs 21.8 bn

Private sector lender Axis Bank reported its first net loss, of Rs 21.8 billion, for the quarter ended March as non-performing assets (NPAs) soared and provisions for bad loans surged three times over the corresponding quarter last year. The results were well below Street expectations on most key parameters, including profits. READ MORE
 

10:30 AM

Rising crude prices: What it means for India's oil, telecom sectors

Public sector oil refining-marketing companies (OMCs) have taken a hammering in the past year. The downtrend is likely to continue. Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Indian Oil (IOC) are down 8.5 per cent, 10.8 per cent and 4 per cent, respectively in the last 30 days, and down by 19 per cent, 19.9 per cent and 62 per cent in the last year.

 

GAIL, which is a gas marketer, is also down 23 per cent in the last 30 days. The equation is simple. If crude oil prices rise and gas prices rise alongside, OMCs suffer due to falling refining margins. READ MORE
 

10:15 AM

Interview of the day Weakness in rupee will constrain capital flows into India: Sanjay Singh

Weakness in the rupee, surging bond yields in America and the US Federal Reserve's interest rate hike forecasts will constrain capital flows into India, says Sanjay Singh, head of global markets at the Indian arm of BNP Paribas, the French international banking group. Political uncertainty is also weighing on investor sentiment, says Singh. READ MORE

SANJAY SINGH, head of global markets at the Indian arm of BNP Paribas, the French international banking group

10:01 AM

Market Check

 

S&P BSE Sensex	34,961.88		0.72%
Nifty 50	10,682.35		0.61%
S&P BSE 200	4,696.22		0.64%
Nifty 500	9,444.30		0.67%
S&P BSE Mid-Cap	16,896.68		0.66%
S&P BSE Small-Cap	18,285.52		0.67%

9:50 AM

Kotak Institutional Equities on Axis Bank

Axis Bank took an important step to recognize NPLs on a majority of the balance of stress highlighted to investors in the past few years. Provisions rose sharply resulting in a loss. Outstanding bad loans remain unchanged at ~13% of loans but gross NPLs form 75% of these loans as compared to 55% in 3QFY18.

Our previous upgrade was a valuation call but a few quarters of stable/improving trends can result in valuation expansion. Recommend ADD with a target price of Rs 600

9:45 AM

Reliance Industries hits record high ahead of March quarter results

Shares of Reliance Industries (RIL) hit a record high of Rs 1,000 per share, up 2.5% on the BSE in early morning trade on the BSE, ahead of its January-March quarter (Q4FY18) results today. The stock surpassed its previous high of Rs 990 recorded on January 23, 2018 in intra-day deal. Textiles to telecom conglomerate, RIL is expected to post its best-ever quarterly consolidated net profit, with the figure expected to be close to Rs 100 billion mark. READ MORE

9:43 AM

Rollover Stats

·      Cement, Pharma, Metals, Media and Fertilisers sectors witnessed higher rollovers compared to same day of  previous expiry.

 

·      FMCG, Oil & Gas, Capital Goods, Realty and Power sectors witnessed lower rollovers compared to same day of previous expiry.

 

·      Highest rollover in current expiry: Media, Pharma, Infrastructure, Finance and Fertilisers.

 

·      Lowest rollover in current expiry: Capital Goods, FMCG, Oil & Gas, Power and Realty.

(Source: Nirmal Bang report)

9:41 AM

MARKET COMMENT Chris Wood of CLSA

The negative reaction of US stocks on Tuesday to the 10-year Treasury yield touching 3% raises the pertinent issue again of whether the S&P500 peaked for this cycle back in late January. One symptom of a bear market resuming is that stock market trading volume has for the most part been declining on countertrend rallies relative to rising volume when the market sells off

9:37 AM

Nomura maintains 'buy' rating on Axis Bank

While we cut our FY19/20F PAT estimates by 37%/9%. We still expect ROEs to normalise to +15% by FY20F. Current valuation at 1.5x FY20F book is not demanding with a possibility of credit costs undershooting long term average. Our revised target price of Rs 630/share (~28% potential upside) implies 2x FY20F book with a subsidiary value of Rs 45/share.

9:34 AM

Companies In News 

 

·         15 IDBI officals named in bank fraud case, raids conducted at 50 locations: CBI Official

 

·         Fortis to discuss further board restructuring on April 27

 

·         Thermax won Rs 279 crore order for a captive cogeneration power plant

 

·         IEX board decided not to go ahead with buyback

 

·         Essel Propack’s board recommended 1:1 bonus issue

 

·         Cyient acquired semiconductor firm Ansem N.V. in an all cash deal worth $17 million

 

·         Gati approved inducting new strategic and/or financial partner

 

·         CCI finds no Appreciable Adverse Effect on Competition in respect of Tata Steel’s proposed acquisition of Bhushan Steel

 

·         Apollo Micro Systems said that the company officials were asked to appear before IT officials on April 25

 

·         MOIL signed MoU with Ministry of Steel for FY19

 

·         Mangalore Chemicals and Fertilisers shuts down ammonia, urea and ABC Plants for annual turnaround maintenance

 

(Source: IIFL)

9:33 AM

DERIVATIVE STRATEGY: Rollovers Analysis – April 2018

 

Nifty/Bank-Nifty gained 4.93/2.9% led by heavy weights of the likes of TCS/Reliance. Monthly highlights include a) Significant outperformance to global peers b) Trending up-move on Nifty despite FIIs staying net index futures short for entire series c) Massive OI seen at 11k strikes on calls (4.3mn shares).

Nifty/BankNifty rolls stpood at 72/82% (2.3cr/21 lakhs shares) higher than prior month of 69/75% (2.09cr/16.2 lakhs shares). Market-wide rollovers stood at 87% in line with prior month. Total aggregate OI rolled to May series stayed at ~500cr, almost flat when compared sequentially. 

 

FIIs long/short ratio on index futures stood at 1.19x vs 0.22x at start of the previous month. FIIs long/short index future rolls were 69.1/40.5%, significantly up from previous month on long rolls. May series begins with maximum open interest buildup at 11,000 calls (4.3mn shares) & 10,500 puts (3mn shares). With Karnataka polls verdict due this month, volatility is likely to flare up going forward.   

 

(Source: IIFL)

 

9:22 AM

Sectoral Trend