Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments:
The index is facing resistance at higher levels. In the last couple of instances, the Nifty has crossed 15000 with gusto and has turned back from there. If we can sustain above the 15150 level, we will break out on the upside and climb towards 15400. On the downside there is a good support at 14700 and as long as that is holding, the market trend remains positive. If we break 14700 on a closing basis, we will drift downward to 14400.
Jateen Trivedi, Senior Research Analyst at LKP Securities:
After many days of positive trend rupee changed hands 180 degrees and swung low on the back of short covering witnessed in the Dollar index, the dollar which fell below 90$ a few days back took support near 89.65$ and tries to move again back above 90$ which weaken rupee from 72.95 to 73.15. Going ahead 73.00-73.40 range will be seen in the rupee.
Vinod Nair, Head of Research at Geojit Financial Services:
The recent sharp rally has triggered some caution for the near-term. The global market was tentative ahead of the announcement of Fed minutes, this was mirrored in the domestic market, though it is not expected to hawkish. Optimism gained from declining covid cases resisted a sharp correction in domestic market.
Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services:
The Covid cases are moderating in India and Fed's music will remain the same, so chances of USDINR bouncing are very low. Still traders are awaiting tonight’s Fed minutes for the clues about the outlook.
The USDINR spot is hovering around 73 zone, the only fear is of RBI intervention in between 72.75-73 zone to curb any excess volatility. But in absence of RBI, the downtrend in USDINR spot may continue and USDINR spot may trade in between 72.75-73.30.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed some lackluster movement and an attempt to hold the support level around the Nifty 50 index level of 15000. The trading above 15000 is positive from a short-term perspective. Sustaining above 15000 levels, the market to gain momentum, which could lead to an upside projection till 15370-15400 level. The momentum indicators like RSI, MACD to recover after staying neutral to bearish in recent time.
Rupee Close:
Indian rupee erased intraday gains and ended lower by 12 paise at 73.16 per dollar, amid selling saw in the domestic equity market.It opened flat at 73.02 per dollar against previous close of 73.04 and traded in the range of 72.93-73.18.
Market Close
: Benchmark indices erased some of the previous session gains and ended 0.5 percent lower on May 19 dragged by the metal and financials.
At close, the Sensex was down 290.69 points or 0.58% at 49,902.64, and the Nifty was down 77.90 points or 0.52% at 15,030.20. About 1743 shares have advanced, 1249 shares declined, and 166 shares are unchanged.
Tata Motors, HDFC, JSW Steel, M&M and Bajaj Finserv were among the top losers on the Nifty. Gainers included Coal India, Cipla, Sun Pharma, UPL and IOC.
Among sectors, Nifty pharma index gained 1 percent, while metal index shed 1 percent and selling was also seen in the auto, bank and infra names. BSE Midcap and smallcap indices ended in the green.
oyal Enfield to recall 236,966 motorcycles
R
Eicher Motors-owned Royal Enfield said on Wednesday it will recall 236,966 motorcycles across some models due to defects in the ignition coil that can cause misfiring and reduce the vehicle's performance.
Heritage Foods Q4:
Company has posted consolidated Q4 net profit at Rs 24.2 crore versus loss of Rs 209.2 crore and revenue was down 5.1% at Rs 619.3 crore versus Rs 652.6 crore, YoY.
Heritage Foods touched a 52-week high of Rs 390 and was quoting at Rs 345.00, down Rs 13.15, or 3.67 percent on the BSE.
Air India, BPCL transactions will conclude in FY22: Sources
The due diligence process for Air India, BPCL divestment delayed by a few months due to second COVID wave. Still hoping to receive Air India financial bids by September. SCI, BEML, divestments also likely impacted by second COVID wave, while Air India, BPCL transactions will conclude in FY22, quoting Sources, reported CNBC-TV18.
Rupee Updates:
Indian rupee erased intraday gains and trading near the day's low at 73.14per dollar, amidweaktrade seen in the domestic equity market. It opened flat at 73.02 per dollar against previous close of 73.04.
ICICI Direct on Torrent Pharmaceuticals:
Q4 operational performance was in line with I-direct estimates whereas bottomline was better amid higher-than-expected other income and lower interest cost. Overhang pertaining to two US focused plants notwithstanding, Torrent continues to impress thanks to its robust margin profile that can be attributed to global portfolio that comprises ~ 60% branded generics.
We expect a further improvement in this matrix, product rationalisation to further strengthen margins. The company’s portfolio is finely balanced between India, Brazil, Germany and the US with India being the leader.
With consistent FCF generation, moderation in core capex, we expect the leverage situation to improve substantially. With these key characteristics we believe the premium valuation is justified. We maintain buy with a target price of Rs 3290 (unchanged) based on 32x FY23E EPS of Rs 102.8.
Indian Oil Corporation reports Q4
Indian Oil Corporation reports Q4 net profit rose 78.6% at Rs 8,781 crore versus Rs 4,916.6 crore and revenue was up 16.3% at Rs 1.24 crore versus Rs 1.06 lakh crore, QoQ
Earnings before interest, tax, depreciation and amortization (EBITDA) was up 40.3% at Rs 13,501 crore and margin was at 10.9%, reported CNBC-TV18.
Indian Oil Corporation touched a 52-week high of Rs 108.95 and was quoting at Rs 107.80, up Rs 2.25, or 2.13 percent on the BSE.
NCLT asks DHFL creditors to consider Kapil Wadhawan’s offer:
The National Company Law Tribunal (NCLT) has asked the Committee of Creditors (CoC) of Dewan Housing Finance (DHFL) to consider Kapil Wadhawan’s offer for the company.
The NCLT has asked the CoC to convene within 10 days to consider Wadhawan’s offer, CNBC-TV18 reported. Read more
European markets are trading in the red with FTSE, DAX and CAC down over a percent each
Emkay on Bharti Airtel:
Bharti reported in-line EBITDA, but ARPU of Rs 145 missed our estimate by ~1.8 percent (adjusted for IUC and lesser number of days in Q4). This indicates a deceleration in the mix improvement-led ARPU uptick that has been seen over the last two quarters. We keep our estimates largely unchanged. We expect a tariff hike in H2FY22. This is crucial for fast-paced balance sheet deleveraging, in turn, driving next leg of re-rating for the stock. We maintain buy with a SoTP-based target of Rs 686.
Happiest Minds bags order from Coco Cola Bottling Company
Happiest Minds
Technologies has executed a digital transformation project for Coca Cola Bottling Company United for streamlining its order management with RPA in Microsoft Power Automate, the company said in an exchange filing. The stock was trading at Rs 765.45, up Rs 17.30, or 2.31 percent.
ICICI Securities on Abbott India
: While Q4FY21 results are not directly comparable strictly on a YoY basis due to pandemic related challenges in the base year, FY21 revenues grew 5.3 percent YoY to Rs 4310 crore likely moderated by the decline in 'Duphaston' (gynaecology) sales alongside demand slowdown in some other therapies amid the pandemic. EBITDA margins expanded 290 bps YoY to 21.4 percent with an overall better operational performance. EBITDA for the fiscal grew 21.8 percent YoY to Rs 922 crore. PAT was up 16.5 percent YoY to Rs 691 crore in line with operational performance and lower other income.
UK inflation more than doubles in April:
British consumer price inflation more than doubled in April to stand at 1.5%, up from 0.7% in March, official figures showed on Wednesday.
Abhishek Bansal, Founder Chairman, Abans Group:
WTI Crude oil prices currently trading near $64.75, sharply lower from yesterday’s high of $67.01 per barrel on anticipation that US crude oil inventory has increased last week. The American Petroleum Institute reported late Tuesday that U.S. crude supplies inched up by 620,000 barrels for the week ended May 14. API projection showed that gasoline stockpiles down by 2.8 million barrels, while distillate inventories fell 2.6 million barrels.
Crude oil prices to get fresh direction from US weekly inventory report, which is scheduled to release later today. The market expects EIA to show crude inventories down by 2.9 million barrels. However, it is expected that gasoline inventories are likely to climb by 600,000 barrels but a drop of 200,000 barrel in distillates.
Crude prices are facing stiff resistance near $66.97 per barrel and $68.57 per barrel. It is likely to find immediate support near 20 days EMA at $64.22 and 50 days EMA at $62.41 per barrel.
BSE Power index added 1 percent led by the Adani Transmission, Adani Power, Adani Green:
Gaurav Garg, Head Of Research, CapitalVia Global Research:
In the morning trend Indian benchmark indices gave up yesterday’s gains and traded with losses, owing to a bearish trend in the global peers. Sentiments in the domestic markets remain stable as the number of covid-19 cases decline and a few reports suggest that Indian market will grow faster as the vaccination process reaches its perceived levels.
US market declines further as the inflation worries the traders in the market that growing inflation can lead to tighter monetary policy. Asian markets were mostly trading in red following the global peers.
After a slightly negative opening in the market, Nifty was able to sustain the support at the crucial level of 15050. If the market is able to sustain this level we can see a new rally till the levels of 15300-15350. On the sectoral front realty sector has been the top-performing sector while Telecom has been the on the bearish move yet again. UPL and Cipla are the top gainers while Tata Motors and M&M are the top losers on Nifty.
Bitcoin slides below $40,000
Bitcoin’s volatile week-long slide saw it tumble to below the $40,000 mark on Wednesday as news of further restrictions on cryptocurrency transactions in China added to earlier concerns sparked by Tesla boss Elon Musk’s tweets.
Prism Johnson Q4
The company has posted consolidated net profit of Rs 157.4 crore against loss of Rs 38 crore and revenue was up 24.7% at Rs 1,850 crore versus Rs 1,483 crore, YoY.
Prism Johnson touched a 52-week high of Rs 149.25 and was quoting at Rs 145.65, up Rs 1.55, or 1.08 percent on the BSE.
Rupee Updates:
Indian rupee is trading higher at 72.96 per dollar, amid volatile trade seen in the domestic equity market.It opened flat at 73.02 per dollar against previous close of 73.04.
Anand Rathi on HIL:
A demand slowdown, if any, on Covid spreading to rural areas will be temporary, per management. On non-availability of HDF boards, though, Parador’s H1 FY22 may be hit. The non-asbestos roofing sheet development, low-cost Brazil fibre available and Parador’s efforts to expand to newer areas are positives.
HIL’s goal is to become a USD 1 billion company by FY26. The healthy B/S continues with net D/E of 0.3x (1x a year ago) and well-managed working capital (5% of revenue, 23% in FY16). We maintain a buy, with a higher target price of Rs 5,291. Risks are rise in input costs and demand slowdown.
HIL was quoting at Rs 4,398.05, up Rs 249.85, or 6.02 percent on the BSE.
Market Updates
Benchmark indices witnessing volatile trade with Nifty holding above 15,000.
The Sensex was down 89.76 points or 0.18% at 50103.57, and the Nifty was down 18.80 points or 0.12% at 15089.30. About 1636 shares have advanced, 1015 shares declined, and 131 shares are unchanged.
Brigade Enterprises share price rises 5% on robust Q4 FY21 results
Brigade Enterprises share price gained over 5 percent on May 19 after the company declared its Q4 numbers.
The company posted profit of Rs 19.58 crore on consolidated basis for Q4 of 2020-21 against Rs 11.02 crore loss posted in the same period last year on the back of robust residential sales. The company’s income was higher by 27.39 percent at Rs 820.86 crore.
Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors:
As flows continue (yesterday a corporate sold USD 700 millon) and with less of buyers of dollar in the market, USDINR continues to fall only supported by RBI. Let's see when RBI allows it move tad bit higher so that exporters get an opportunity to sell.
For the day exporters to sell near 73.15 and importers to buy near 72.90 for near term.
Nifty IT index added nearly 1 percent supported by the L&T Infotech, Tech Mahindra, Wipro
Anupam Rasayan bags orders worth Rs 540 crore:
Anupam Rasayan has received and signed contracts amounting to Rs 540 crores from two renowned multinational companies dealing in the fields of life sciences chemicals," the company said in the release.
The tenure of the contract is for five years where life sciences related specialty chemicals will be provided to them by the company.
Anupam Rasayan India was quoting at Rs 772.60, up Rs 4.85, or 0.63 percent on the BSE
Tata Group N Chandrasekaran extremely bullish on TCS
TCS sees immense opportunities for growth as the firm now rides the new technology cycle that has kicked off, said Chairman N Chandrasekaran.
In a note to shareholders in its FY21 annual report, Chandrasekaran said, as the company looked ahead, TCS would also invest in sharpening the capabilities needed to expand its footprint in this large opportunity.
“To my mind, the year gone by saw an important inflection point that has huge ramifications on enterprise consumption of technology in the coming years, and on demand for your company’s services,” he said. Read more
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
: The trend of low daily Covid cases and high recoveries has the potential to sustain the ongoing 'hope trade' in the market. But since the bulls are sitting on good profits, corrections caused by profit-taking are due anytime. Global support to markets is likely to continue since the consensus is that the Fed is likely to ignore the recent spurt in inflation dismissing it as transitory. A positive development is FIIs turning buyers with a net buy figure of Rs 618 crore yesterday.
The consensus pre-second Covid wave GDP growth rate of around 11 percent for FY22 is getting revised to around 9 percent. Earnings estimates for FY22 also will take a hit. But it appears that the market is looking through this downward revision and is focussing on the post- second wave scenario.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The index needs to keep above yesterday's high - around 15150. If we can do that successfully, the Nifty should be headed to 15250-15300. We have good support at the 14700 levels. Any intraday drop or correction can be utilized to enter the markets for higher targets.
Torrent Pharma share price gains post March quarter earnings:
Torrent Pharma share price added 6 percent on May 19 a day after the company announced its March quarter earnings.
The company posted 2.9 percent jump in its Q4 net profit at Rs 324 crore against Rs 315 crore and revenue came in at Rs 1,937 crore versus Rs 1,946 crore.
Earnings before interest, tax, depreciation and amortization (EBITDA) was up 6.2 percent at Rs 582 crore and margin was at 30 percent.
Pharma stocks in focus
Union Minister Nitin Gadkari has suggested that more pharma companies should be allowed to make the COVID-19 vaccine in the country during the pandemic to scale up production.
Addressing Vice-Chancellors of Universities in India virtually on May 18, Gadkari said he will also request Prime Minister Narendra Modi to bring a law for allowing more pharma companies to manufacture life-saving drugs by paying 10 percent royalty to the patent holder of the drug.
Nifty Pharma index added 1 percent led by the Torrent Pharma, Lupin, Cadila Healthcare
Rupee Opens:
Indian rupee opened flat at 73.02 per dollar on Wednesday against previous close of 73.04, amid volatile trade seen in the domestic equity market.On May 18, the domestic unit ended higher by 18 paise at 73.04 per dollar against Monday's close of 73.22.
BSE Realty index gained over 1 percent led by the Brigade Enterprises, Godrej Properties, Oberoi Realty:
Tata Motors share price slips 6%:
Tata Motors share price slipped 6 percent on May 19, a day after the automaker posted a consolidated loss at Rs 7,605.4 crore for the quarter ended March 2021 despite a sharp growth in revenue though on a low base.
The company had reported a consolidated loss of Rs 9,894.25 crore in the year-ago quarter and profit at Rs 2,906.45 crore in the December 2020 quarter.
ICICI Direct:
Call writers continued to dominate due to which the rupee managed to move towards 73 levels. We feel the overall setup for the rupee remains positive and USDINR future is likely to move towards 73 levels.
The dollar-rupee May contract on the NSE was at Rs 73.18 in the last session. The open interest rose almost 2.2% for the May series.
Adani Green Energy to acquire 5GW renewable portfolio from SB Energy:
Adani Green Energy is set to acquire 5 GW of renewable power portfolio from SB Energy for a fully completed enterprise evaluation (EV) of $3.5 billion (approx Rs 26,000 crore), company said in the release.
Adani Green Energy Limited was quoting at Rs 1,258.85, up Rs 59.90, or 5percent on the BSE.
Crude Updates:
Oil prices fell for a second day on Wednesday on the potential of Iranian supply returning and as investors sold on speculation that inflation fears might lead the U.S. Federal Reserve to raise interest rates, which could limit economic growth
Gainers and Losers on the BSE Sensex:
Market Opens:
Indian indices opened lower on May 19 amid mixed global cues.
At 09:18 IST, the Sensex was down 113.20 points or 0.23% at 50080.13, and the Nifty was down 32.90 points or 0.22% at 15075.20. About 1161 shares have advanced, 540 shares declined, and 71 shares are unchanged.
