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Closing bell
Equity benchmark Sensex added another 139 points, marking third straight session of gains, as encouraging start of the earnings season by IT major TCS boosted investors’ sentiment. After rising over 200 points intra-day, the 30-share BSE index finally settled 138.73 points, or 0.36 per cent, higher at 38,905.84. The broader NSE Nifty rose 46.90 points, or 0.40 per cent, to close at 11,690.35.
The rally was mainly driven by Sensex heavyweight TCS, soaring 4.78 per cent, which posted strong Q4 numbers.
However, in percentage terms, Tata Motors was the biggest gainer in the Sensex pack rallying 7.04 per cent. Other top performers were TCS, Coal India, Tata Steel, Hero MotoCorp, Kotak Bank, HCL Tech, Bharti Airtel, HDFC Bank, Bajaj Auto and NTPC, ending up to 4.78 per cent higher.
Sectorally, metal, auto and IT stocks were leading gainers amid sustained foreign fund inflow.
IT bellwether TCS soared after the company Friday reported a 17.7 per cent growth in consolidated net profit at Rs 8,126 crore for the March 2019 quarter. However, rival Infosys was the top loser on Sensex, shedding 2.83 per cent, due to concerns on the revenue guidance front.
Infosys posted a 10.5 per cent rise in consolidated net profit at Rs 4,078 crore for the March 2019 quarter, and guided towards 7.5-9.5 per cent growth in revenue for FY 2019-20.
Other losers include, Sun Pharma, Yes Bank, ONGC, Asian Paints, HDFC, ICICI Bank, L&T, ITC and RIL, slipping up to 1.26 per cent.
Meanwhile, foreign institutional investors (FIIs) purchased equity worth Rs 897.45 crore on Friday, while domestic institutional investors (DIIs) sold equities to the tune of Rs 15.99 crore, provisional data available with stock exchanges showed.
Meanwhile, the Indian rupee depreciated 19 paise to 69.36 against the US dollar intra-day. - PTI
IMD forecast
India Meteorological Department forecast a normal southwest monsoon this year with quantum is expected to be around 96 per cent long period average of 89 centimetres. The deviation could be plus or minus 5 per cent. More on the IMD forecast on monsoon
Network18 Q4 results
Media firm Network18 Media and Investments on Monday reported a consolidated net loss of Rs 75.57 crore in the fourth quarter ended March 31, 2019. The media and entertainment firm’s revenue from operation in the quarter under review stood at Rs 1,230.93 crore. The stock of Network18 was trading lower by 4.06 per cent at Rs 35.45.
Stock Analysis: Supreme Industries
Amid the ongoing market volatility, many fundamentally-sound stocks have corrected and Supreme Industries was no exception. The stock has corrected from its 12-month high of ₹1,476 to ₹1,130 currently. SIL has a market share of 10-12 per cent in the segments it operates. Read more on the stock activity of Supreme Industries here
Sensex, Nifty trade higher
The 30-share BSE index Sensex jumped 166.07 points or 0.43 per cent to 38,933.18. The stocks of Tata Motors, TCS, Coal India, Tata Steel, and Hero MotoCorp were lending support to the index. The scrips trading in red were Infosys, Sun Pharma, ONGC, YES Bank, and HDFC.
Among the sectoral indices, the top gainer were the metal stocks, followed by realty, auto, basic materials and telecom. Oil & gas stock index was alone trading in negative.
The 50-share NSE index Nifty trading higher by 50.35 points or 0.43 per cent at 11,693.80. Major gainers were Tata Motors, TCS, Coal India, Tata Steel, and Hero MotoCorp while the laggards were Infosys, Infratel, Sun Pharma, IOC, and BPCL
European stock markets
The pan-European STOXX 600 index was flat. File Photo
European shares were steady in early trade, as hopes that Sino-US trade talks could be nearing their final stages and strong Chinese economic data eased worries over the global economy, but domestic trade tensions kept a lid on advances. However, Germany's trade-sensitive DAX was little changed as domestic worries over tariffs remained. Read the European markets report here
Kotak FMP crisis
In the past 2-3 years, investors have been growing anxious over increasing instances of rating downgrades and defaults of bonds held by debt mutual funds. The recent episode of certain fixed maturity plans (FMPs) of Kotak Mutual Fund not paying investors in full on maturity has only made matters worse. What is the crux of the Kotak FMP issue. Read more
VC investments in India robust
India bucked the global venture capital (VC) investment trend that took a major hit in the first quarter of 2019, according to a report by KPMG. During the quarter, Indian start-ups raised several ‘$100 million plus’ deals, with logistics start-up Delhivery raising about $413 million and ride-hailing platform Ola raising $300 million. Click here to read more on the VC investments in India
Sensex surges 141 points
The 30-share BSE index Sensex surged 165.24 points or 0.43 per cent to 38,932.35.
The stocks of TCS, HDFC Bank, Tata Motors, Kotak Mahindra Bank, and Coal India cushioned the index while the scrips of Infosys, HDFC, Sun Pharma, ONGC, and Hindustan Unilever were trading in the negative.
Among the sectoral indices, the metal stocks were the top gainer trading higher by 2.51 per cent at 11,754.84 points. The other gainers were the basic materials, Auto, and Realty indices.
The 50-share NSE index Nifty traded higher by 52 points or 0.45 per cent at 11,695.45. The stocks leading the positive pack were Tata Motors, TCS, Coal India, Tata Steel, and Hero MotoCorp while the laggards were Infosys, Sun Pharma, Infratel, IOC, and BPCL
WPI inflation
Vegetables inflation was at 28.13 per cent in March. File Photo
Wholesale price-based inflation rose for the second consecutive month to 3.18 per cent in March on costlier food and fuel, government data released showed. Inflation in food articles hardened with steep rise in prices of vegetables during March 2019. Vegetables inflation was at 28.13 per cent in March, up from 6.82 per cent in the previous month. Read the full report on WPI inflation here
Nifty Call
The Sensex and the Nifty began the session in a positive note, taking cues from the positive Asian markets. The market breadth of the Nifty index is biased towards advances.The Nifty metal index has jumped over 2 per cent, Auto and Realty indices have added 1.3 per cent each in today's session. Read our Nifty Call for April futures here
Major decline in steel export to US
The NCLAT has ordered Essar Steel’s lenders to submit details on the outcome of a meeting that they had held to consider extra allocation for operational creditors istock.com/PhonlamaiPhoto
India’s steel export to the US in 2018 declined by 49 per cent to $ 372 million, while that of aluminium increased by 58 per cent to $ 221 million, the independent Congressional Research Service (CRS) said in its latest report. The countries with permanent exclusions from the tariffs (all except Australia are instead subject to quotas) accounted for 18.4 per cent of US steel imports in 2018 and 4.4 per cent of US aluminium imports. Click here to read more on steel export to US
Sensex zooms 120 points
The 30-share BSE index Sensex jumped 120.08 points or 0.31 per cent to 38,887.19. The top gainers were Tata Motors, Coal India, TCS, Tata Steel and Hero MotoCorp while the stocks in trading in red were Infosys, Sun Pharma, ONGC, HDFC and Bharti Airtel.
Sectorally, the scrips of of metal stocks jumped 2.42 per cent, followed by basic materials, auto, and realty stocks.
The broader index Nifty was trading higher by 41.30 points or 0.35 per cent at 11,684.75. The stocks trading in the positive zone were Tata Motors, Coal India, Tata Steel, TCS, and Hero MotoCorp while the laggards were Infosys, Sun Pharma, IOC, BPCL and Infratel
Jet Airways pilots appeal to SBI
Jet Airways pilots body, the National Aviator’s Guild , on Monday appealed the State Bank of India (SBI) to release Rs 1,500 crore, which was proposed to be infused in the ailing carrier as part of a debt-restructuring plan last month. "We also appeal Prime Minister Narendra Modi to save 20,000 odd jobs at the airline,” National Aviator’s Guild ( NAG) vice president Adim Valiani told. Read more on the Jet Airways pilots appeal here
The stocks of Jet Airways was trading at Rs 262, higher by 0.60 per cent
Metropolis Healthcare debuts
Shares of diagnostic chain Metropolis Healthcare Limited made their market debut by rallying 9 per cent against the issue price of Rs 880 per share. The company’s market valuation was at Rs 4,729.84 crore on the BSE. Read more on the share price of Metropolis Healthcare here
Gold and precious metals
Spot gold edged 0.2 per cent lower to $1,288.08 per ounce. File Photo
Gold prices fell to a more than one-week low on Monday as solid Chinese data boosted equities and allayed concerns about a global economic slowdown. Spot gold edged 0.1 per cent lower to $1,288.83 per ounce, having touched $1,286.44, its lowest since April 5. Among other precious metals, silver was 0.1 per cent lower at $14.93 an ounce. Read the bullion market report here
Shares rise on TCS boost
The shares edged higher, in line with Asian peers, as Tata Consultancy Services boosted the indices after reporting a record profit for the last quarter of the year, marking the onset of corporate results.
Broader Asian shares also rose to near nine-month highs, with sentiment supported by strong Chinese export and bank loan data, along with positive headlines on the Sino-US trade talks.
TCS and Infosys reported results for the final quarter of the 2018-19 financial year on Friday. The results come at a time when the country is at the polls to elect its next government.
The broader NSE index was up 0.32 per cent or 37.55 points at 11,681, while the benchmark BSE index was 0.30 per cent or 114.79 points higher at 38,881.90.
“In the near term, the Indian markets will be driven by corporate earnings, while the outcome of the elections, and the India Meteorological Department's monsoon forecast will also be triggers,” said Sumit Pokharna, vice-president, Kotak Securities.
TCS, India's biggest software exporter, also posted its best revenue in 15 quarters on Friday, and said that the company's most important market - banking, financial services and insurance segment (BFSI) - has a “fairly strong” outlook. TCS' shares rose as much as 3.7 per cent, and were the top boost to the indexes.
Tata Motors Ltd climbed 4.9 per cent to its highest since October 4, and led gains in percentage terms. Infosys saw its shares fall 4.7 per cent after it failed to impress investors with its operating margin forecast for fiscal 2020.
Infosys shares marked their sharpest intraday drop since October 11, and were the top drag to the indices. - Reuters
Forex market
File Photo
The yen hovered near its lowest level this year as more signs of stabilisation in the Chinese economy and an upbeat start to the US earnings season prompted investors to abandon the safe-haven currency to seek higher returns elsewhere. The dollar firmed to 112.02 yen, near Friday's high of 112.10, which was near its year-to-date high of 112.135 touched in early March. Click here to read the forex market report
Sensex in positive zone
The 30-share BSE index Sensex was trading higher by 85.50 points or 0.22 per cent at 38,852.61. The scrips of TCS, HDFC Bank, Tata Motors, Kotak Mahindra Bank and HCL Technologies were leading the positive pack while the stocks of Infosys, HDFC, Sun Pharma, Reliance and Bharti Airtel were trading in red.
Sectorally, the top gainers were metal and realty stocks.
The 50-share NSE index Nifty was trading higher by 27.10 points or 0.23 per cent at 11,670.55. Top gainers were Tata Motors, TCS, Coal India, Tata Steel and Hero MotoCorp while the laggards were Infosys, Sun Pharma, IOC, Bharti Airtel and UPL
Wockhardt stocks rise
Shares of drugmaker Wockhardt Ltd rise as much as 2.3 per cent to Rs 460, their highest since April 8. The company says no observations made after US FDA inspects its Bioequivalence centre in Aurangabad, Maharashtra. Click here to read more on the USFDA insepection of Wockhardt
Chart focus: Ashok Leyland
The stock of Ashok Leyland jumped 9 per cent, accompanied by above-average volume and closed at ₹95.6.With this rally, the stock appears to have resumed its short-term uptrend that has been in place from the 52-week low of ₹77 recorded this February. Investors with a medium-term perspective can buy the stock at current levels. Read more on the stock activity of Ashok Leyland here
The stock of Ashok Leyland is trading at Rs 96.25, higher by 0.63 per cent.
Infosys falters on weak FY20 guidance; TCS rises
Shares of Infosys Ltd fell as much as 4.7 per cent to Rs 712.6, marking its sharpest daily drop since October 11, on weak FY20 margin guidance. The software services exporter forecast an operating margin of 21-23 per cent for FY20, after reporting a 10.4 per cent rise in Q4 profit on Friday. Shares of Tata Consultancy Services (TCS) gained nearly 4 per cent after the company reported 17.7 per cent growth in consolidated net profit for the March 2019 quarter. Click here to read more on the stock activity of Infosys and TCS
Sensex jumps 100 points
The 30-share BSE index Sensex jumped 106.72 points or 0.28 per cent to 38.873.83 points. The stocks of TCS, HDFC Bank, Tata Motors, ICICI Bank and HCL Tech lend support to the index while the laggards were Infosys, HDFC, Sun Pharma, Bharti Airtel and Hindustan Unilever.
Among the sectoral indices, metal and realty stocks were the top gainers and the scrips of telecom were trading in the negative zone.
The larger NSE index Nifty was trading higher by 30.90 points or 0.27 per cent at 11,674.35. The top gainers were Tata Motors, Coal India, TCS, Hero MotoCorp and HCL Technologies while the stocks of Infosys, Sun Pharma, Bharti Airtel, IOC and Infratel were trading in red.
Currency market
The rupee opened strong at 69.07 at the interbank forex market.
The rupee fell 7 paise to 69.24 against the US dollar in opening trade on increased demand for the greenback from importers and banks. The rupee opened strong at 69.07 at the interbank forex market, then lost ground and fell to 69.24 down 7 paise over its last close. Read the local currency market report here
Asian markets
Asian shares neared nine-month highs after US Treasury Secretary Steven Mnuchin said he hoped US-China trade talks were approaching a final lap, while strong Chinese export and bank loan data boosted confidence in the global economy. MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.6 per cent to its highest since late July. Read the Asian markets report here
Indices on positive note
Domestic equity benchmarks started on a positive note led by gains in IT bellwether TCS, amid sustained foreign fund inflow and positive global cues.
After rising over 100 points in early session, the 30-share index was trading 79.16 points or 0.20 per cent higher at 38,846.27. The NSE Nifty was trading 18.40 points, or 0.16 per cent, up at 11,661,85 in early session. During the past week, the Sensex fell 95.12 points or 0.24 per cent, while the Nifty shed 22.5 points or 0.19 per cent.
Top gainers in the Sensex pack include Tata Motors, TCS, Coal India, HCL Tech, Vedanta, Tata Steel, Hero MotoCorp, ITC, Kotak Bank, Asian Paints, IndusInd Bank and Axis Bank, rising up to 4.12 per cent.
TCS led the gains in early trade after the company on Friday reported a 17.7 per cent growth in consolidated net profit at Rs 8,126 crore for the March 2019 quarter. According to Rajesh Gopinathan, chief executive officer and managing director at TCS, this is the strongest revenue growth that the firm have had in the last fifteen quarters.
On the other hand, Infosys was the top loser, shedding 2.73 per cent on BSE. The IT major on Friday posted a 10.5 per cent rise in consolidated net profit at Rs 4,078 crore for the March 2019 quarter, and guided towards 7.5-9.5 per cent growth in revenue for FY 2019-20.
Bharti Airtel, Sun Pharma, M&M, ONGC and Maruti were among the other losers on Sensex.
Meanwhile, foreign institutional investors (FIIs) purchased equity worth Rs 897.45 crore on Friday, while domestic institutional investors (DIIs) sold equities to the tune of Rs 15.99 crore, provisional data available with stock exchanges showed.
The rupee appreciated marginally to 69.17 against the US dollar in early trade. - PTI
Crucial day for Jet Airways
The Jet Airways management will meet lenders led by the SBI to push for the immediate release of interim funding to keep the company afloat. Based on the outcome of this meeting, nearly 1,000 Jet pilots will decide whether or not to strike work. Jet's lenders will also seek a legal opinion on promoter Naresh Goyal’s bid to re-take control of the debt-ridden airline. Read more on the crucial Monday meeting of Jet Airways and its lenders here
Stocks in focus
GMM Pfaudler , process equipment supplier to pharmaceutical and chemical industries, has acquired the Industrial Mixing Solutions Division of Sudarshan Chemical Industries, Pune, for ₹29 crore. The acquisition would enhance GMM Pfaudler’s industrial mixing business vertical by bringing in new products, technologies, customers and industry segments, it said. The two businesses once consolidated would become India’s premier industrial mixing solutions provider.
The rights issue of Bharat Gears will open on Monday and close on April 30. The company will issue up to 11.63 lakh shares for cash at a price of ₹105 a share on rights basis to eligible shareholders, as on the record date of April 3. The company has fixed the entitlement ratio at one equity share for every seven held in the company. The proceeds from the issue would be used for financing identified equipment. Analysts will closely monitor the response to the rights issue.
The respective boards of Dhruv Estates, Gujarat Hotels, Hathway Cable & Datacom, International Travel House, Mac Hotels, Network18 Media & Investments, Reliance Industrial Infrastructure, TRF and TV18 Broadcast will meet on Monday (April 15) to consider financial results for the quarter as well as the financial year ended March 2019. Hathway Cable & Datacom had reported a profit of ₹6.44 crore for the quarter ended December 2018 and revenues of ₹134.85 crore.
Opening bell
The 30-share BSE index Sensex opened 38.43 points higher at 38,805.54 against the previous close of 38,767.11. The 50-share NSE index Nifty also opened in green at 11,666.95, higher by 23.5 points against the previous close of 11,643.45.
Weekly Trading Guide
SBI (₹315.3)
SBI fell sharply by about 3 per cent in the initial part of last week. However, it found support in the ₹310-308 region and oscillated between ₹308 and ₹320 thereafter. The level of ₹310 will be crucial to watch. A decisive close below ₹310 can drag SBI initially lower to ₹305 — the next important support level. A bounce from ₹305 can trigger a relief rally to ₹310. A range-bound move between ₹305 and ₹310 is possible in that scenario.
But a break below ₹305 will increase the likelihood of the fall extending to ₹300 or even ₹290 on profit-booking. On the other hand, if SBI manages to sustain above ₹310, a bounce to test the key ₹320-325 resistance region is likely. As mentioned last week, a decisive weekly close above ₹325 is needed for SBI to gain fresh momentum and target ₹350 over the medium term. Traders holding long positions at ₹315 and ₹308 should remain cautious. Retain the stop-loss at ₹295 for the target of ₹350. Move the stop-loss higher to ₹317 as soon as the stock moves up to ₹323 levels.
ITC (₹305.6)
After oscillating around ₹295 almost through the week, ITC surged over 3 per cent on Friday and closed on a strong note. Last week’s rally has taken the stock decisively above the key resistance level of ₹303. The short-term outlook is bullish. The region between ₹303 and ₹300 will now act as a strong support for the stock. The downside is likely to be limited to ₹300 now. ITC can move up to ₹310 and ₹315 in the short term.
A further break above ₹315 will then increase the likelihood of the stock’s rally extending to ₹320 and ₹330 levels over the medium term. The bullish outlook will get negated only if ITC declines below ₹300. In such a scenario, a fall to ₹290 is possible on profit-booking. But such a fall looks less probable as dips to ₹300 are likely to find fresh buyers coming into the market. Investors can hold the long positions taken at ₹282, ₹278 and ₹272 with a revised stop-loss at ₹301. Move the stop-loss higher to ₹305 as soon as the stock reaches ₹308 levels. Traders cab consider booking profits at around ₹310.
Infosys (₹747.8)
Infosys reversed lower after rallying over the last four weeks. The stock was down 1.1 per cent for the week. Infosys seems to be lacking fresh buyers to take it beyond the ₹770-775 resistance region. An immediate support is at ₹740 which is likely to be tested in the near term. A bounce from this support can take Infosys higher to the ₹770-775 region again.
RIL (₹1,341.9)
RIL inched lower for the second consecutive week. The stock was down about one per cent. Though it managed to reverse higher from the week’s lower at around ₹1,320, the bounce-back move seems to be lacking strength. A key resistance is in the ₹1,350-1,355 region. RIL has to decisively breach ₹1,355 to ease the downside pressure. Such a break can take the stock higher to ₹1,375 and ₹1,400 levels again.
But the weak bounce-back move last week leaves the possibility high of the stock reversing lower from the 1,350-1,355 resistance region. Such a pull-back move will take RIL lower to ₹1,325 and ₹1,315. A further break below 1,315 will then increase the likelihood of the stock extending its down move to ₹1,300. The region between ₹1,315 and ₹1,300 is a key support. The outlook will turn negative only if RIL declines below ₹1,300. A pull-back from the ₹1,350-1,355 resistance zone in the coming days will increase the possibility of the stock declining below ₹1,300. In such a scenario, a fall to ₹1,250 is possible on profit-booking.
Tata Steel (₹533.7)
Tata Steel tumbled 3 per cent last week, giving back most of the gains made in the week earlier. The stock is likely to dip further in the near term to ₹525 – a significant support. There is a strong likelihood of the stock reversing higher from ₹525. Such a bounce will keep the overall uptrend intact and take the stock higher to ₹550 and ₹560.
A further break above ₹560 will then increase the likelihood of the stock extending its up-move to ₹570 and ₹575. On the other hand, the outlook will turn negative if Tata Steel declines below ₹525. In such a scenario, a fall to ₹510 and ₹500 is possible. But the indicators on the chart suggest that Tata Steel is likely to sustain above ₹525. The 55-day moving average is on the verge of crossing the 100-day moving average. This is a bullish sign, indicating that the downside could be limited. As such, Tata Steel can reverse higher after testing ₹525.
9.00 am
Index Outlook
The beginning of the Q4 earnings announcement and the progress of the Lok Sabha election could keep key benchmark indices choppy in the coming truncated week. The markets are closed on Wednesday and Friday on account of Mahavir Jayanti and Good Friday respectively. Hence, traders should remain watchful. On the global front, the upcoming FOMC minutes and ECB rate decision can provide direction to the global investors in the midst of US-China trade war. Read the Index Outlook and the performance of Sensex, Nifty last week here
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