Closing Bell: Nifty ends below 18,200, Sensex falls 372 points; IT, metal, realty worst hit

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Markets lingered in negative territory as cautious investors continued to book profit after the recent spike. The subdued economic readings coming in from the US and China once again raises concern of a slowing economy and hence recession fears, which is making investors jittery about the future course.

Technically, the Nifty has breached the crucial support level of 18,250 and also formed a bearish candle on daily charts which is largely negative. For traders 18,250 and 18,300 would act as an immediate resistance area while 18,100-18,050 could be important support levels for the bulls.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

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The Nifty has witnessed consecutive negative days. Amid the selling pressure, the Nifty has managed to hold on to the crucial support level of 18100 and the intraday pullback has come exactly from around 18100 which indicates that until the Nifty manages to stay above this level the uptrend is intact.

The upward sloping channel has been breached on the downside and the daily momentum indicator has a negative crossover which is a sign of weakness, and this can lead to consolidation over the next few trading sessions.

On the flipside, there are multiple support parameters in the form of the 20-day moving average (18053) and the 38.2% Fibonacci retracement level (18113) of the rise from 17553 – 18459 are placed which shall provide cushion and restrict a deep correction. Stock specific action can take place over the next few trading sessions.

Ajit Mishra, VP - Technical Research, Religare Broking:

Markets traded volatile and lost over half a percent, in continuation to Tuesday’s fall. After the flat start, the Nifty gradually drifted lower however rebound in the final hours helped the index to recoup some losses. It eventually settled at 18,181.75 levels; down by 0.57 percent. The majority of sectors traded in tandem with the benchmark trend and edged lower wherein realty, IT and metal were among the top losers. Interestingly, the broader indices continued their outperformance for the second consecutive session.

As global markets are not offering any cue, the performance of the key sectors viz. Banking, financials, auto and FMCG will continue to dictate the trend. On the index front, Nifty has crucial support at the 18,050 mark, which also coincides with the short-term moving average i.e. 20 EMA. Though the downside seems capped, we recommend maintaining a focus on stock selection and overnight risk management.

Vinod Nair, Head of Research at Geojit Financial Services

In response to weak global sentiments, domestic investors remained cautious as the US market grappled with recession concerns led by recent economic data indicating slowdown. The US retail sales figures for April reflected a decrease in demand, and ongoing debt ceiling negotiations further dampened market sentiment.

Dilip Parmar, Research Analyst, HDFC Securities

Indian Rupee slides to six-week low following weaker regional currencies. Among the Asian currencies, the Chinese yuan slid past the key level of 7 per dollar for the first time this year which pushed the other peer currencies lower today. However, the Indian rupee remained the median performer among the group amid foreign fund inflows and better fundamentals.

Ahead of the RBI board meeting on May 19 for dividend payout, we don't expect aggressive intervention from them when the greenback is strengthening against major currencies.

The short-term direction for the rupee has turned bearish and we could see 82.50 to 82.75 and find support in the area of 82.10 to 82.25.

Gaurav Bissa, VP, InCred Equities

Nifty and Bank Nifty witnessed fall for the second consecutive day. However, both the benchmark indices were seen recovering towards the end of the trading session. Nifty has reversed its upside from 78.6 percent fibonacci retracement and has finally closed below its 10DEMA for the first time in the last 15 days implying the profit booking may continue till it does not close above 18300 levels.

Bank Nifty has reversed after attempting the fresh lifetime high level of 44150 but has managed to close above its 10DEMA of 43500. The index is expected to witness incremental pressure once it closes below this level. Till then Bank Nifty is expected to trade in the 43500-44100 range.

Rupee Close:

Indian rupee closed 18 paise lower at 82.39 per dollar against previous close of 82.21.

Market Close:

Indian benchmark indices ended lower for the second consecutive session on May 17 with Nifty below 18,200.

At close, the Sensex was down 371.83 points or 0.60 percentat 61,560.64, and the Nifty was down 104.70 points or 0.57percentat 18,181.80. About 1,666 shares advanced, 1,722 shares declined, and 129 shares were unchanged.

Kotak Mahindra Bank, Apollo Hospitals, SBI Life Insurance, TCS and HCL Technologies were among the biggest losers on the Nifty. Gainers were Hero MotoCorp, IndusInd Bank, ITC, UPL and BPCL.

On the sectoral front, realty, metal and information technology indices shed 1 percent each, while bank, oil & gas and power indices fell 0.5 percent each.

BSE midcap index ended marginally lower and smallcap index ended higher.

Eris Lifesciences reports Q4 Results

-Net profit down 18.5 percentat Rs 65. 4 crore vs Rs 80.2 crore (YoY)

-Revenue up 31.6percentat Rs 402.7 crore vs Rs 305.9 crore (YoY)

-EBITDA up 22.6percentat Rs 118.7 crore vs Rs 96.8 crore (YoY)

-Margin at 29.5percentvs 31.6percent(YoY)

Deepak Fertilizers and Petrochemicals Corporation Q4 results:

Deepak Fertilizers and Petrochemicals Corporation have posted 9 percent fall in Q4 net profit at Rs 254.9 crore versus Rs 280 crore and revenue was up 39 percentat Rs 2,795.5 crore versus Rs 2,012.5 crore, YoY.

Deepak Fertilizers and Petrochemicals Coporation was quoting at Rs 595.30, down Rs 3.00, or 0.50 percent on the BSE.

CLSA View On Indian Oil Corporation

-Buy rating, target raised to Rs 105 per share
-Quarterly profit at a 10-year high
-A beat led by refining
-Raise FY24 EPS by 38 percentto factor in a higher marketing margin in H1FY24
-Believe government may allow OMCs to recover part of their FY23 losses
-Marketing volume in line with an estimate but market share down QoQ

Indian Oil Corporation touched a 52-week high of Rs 88.61 and was quoting at Rs 87.60, up Rs 0.60, or 0.69 percent on the BSE.

SKF Q4 results:

SKF has reported 12.2 percent jump in its Q4 net profit at Rs 122.9 crore versus Rs 109.5 crore and revenue was up 5.4 percentat Rs 1,094.7 crore against Rs 1,039 crore, YoY.

Rane (Madras) to seek shareholder nod to divest its subsidiary

The Board of Directors of Rane (Madras) at the meeting held today, after carefully reviewing operational and financial performance of M/s. Rane Light Metal Casting Inc., USA (LMCA), a wholly owned step-down subsidiary of the Company acquired in the year 2016, has decided to explore options for divestment / disposal of LMCA and seek prior approval of the shareholders for the same through postal ballot.

Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas

Indian Rupee depreciated today on weak domestic markets and a strong Dollar. However, FII inflows and weakness in crude oil prices cushioned the downside.

Narrowing trade deficit data earlier this week also supported Rupee at lower levels. US Dollar gained on safe haven demand amid worries over debt ceiling crisis and upbeat economic data from US yesterday. Industrial production and retail sales data were better than previous month’s reading.

We expect Rupee to trade with a negative bias on risk-off sentiments in global markets on the back of the debt ceiling crisis and weaker than expected data from China. Strength in the US Dollar may also weigh on Rupee. However, weak crude oil prices and foreign inflows may support Rupee at lower levels. Traders may remain cautious ahead of housing market data from US. We expect USDINR spot to trade in between 82 to 83 in the near term.

Bharti Airtel Concall

Normalised ARPU accounting for 2 lower working days in Q4 is at Rs 195
Our broadband services are present in 1,200 cities
Wireless is 54 percentof business, have upside in wireless on smartphone upgrades & tariff resets
Overall India FCF is Rs 23,000 crore in FY23 despite heightened capex, rural expansion

Market at 3 PM

Indian equity markets are trading lower with Nifty around 18150.

The Sensex was down 455.82 points or 0.74 percentat 61,476.65, and the Nifty was down 124.60 points or 0.68percentat 18,161.90. About 1,472 shares advanced, 1,743 shares declined, and 116 shares were unchanged.

Nomura View On Sona BLW Precision Forgings

-Buy rating, target at Rs 573 per share
-Company partners with Eqipmake to manufacture e-powertrains
-Partnership will expand products offerings to include high voltage motors & inverters
-Will enable company to cover all major vehicle segments with high voltage applications
-Manufacturing products for the global market will significantly increase company’s addressable market

Morgan Stanley View on Indraprastha Gas

-Overweight rating, target at Rs 540 per share
-Upbeat guidance on volume & margin expansion should surprise positively
-EV-related concerns on demand should unwind
-IGL is seeing more avenues to expand demand base for CNG
-Think EVs, diesel and gas will sustain together medium term
-Multiples to re-rate with volume growth

Indraprastha Gas was quoting at Rs 485.65, up Rs 0.50, or 0.10 percent on the BSE.

Nifty Bank under pressure, drops 1%; Kotak Mahindra worst hit

JPMorgan asset says markets are right to bet Fed cuts are coming

A US recession is a virtual certainty and the Federal Reserve may lower interest rates by the third quarter as growth loses momentum, according to JPMorgan Asset Management.

“The market is right to be pencilling in cuts,” said Seamus Mac Gorain, head of global rates in London. “Inflation is too high and it will take a recession to bring it back down,” he said, adding that US banking woes “have only made a recession more likely.”

Mac Gorain, who favors Treasuries, is siding with swaps traders who predict that the Fed will execute a policy pivot as soon as September to counter slowing growth. Read more..

CCL Products Q4 earnings

The instant coffee maker and exporter had reported a 61.8 percent year-on-year growth in consolidated profit at Rs 85.3 crore for the March FY23 quarter on May 17. The jump in bottomline wassupported by lower tax costs and a higher topline. Revenue for the quarter at Rs 520 crore grew by 38.2 percent over the same period last year.

Paradeep Phosphates Q4 Earnings:

Paradeep Phosphates reported 72 percent decline in Q4 net profit at Rs 10 crore versus Rs 35.7 crore and revenue was up 91.9 percentat Rs 3,643.9 crore versus Rs 1,898.8 crore, YoY.

Timken India Q4 results:

Timken India has posted 13.8 percent fall in its Q4 net profit at Rs 104.5 crore versus Rs 121.3 crore and revenue was up 20.2percentat Rs 802.5 crore versus Rs 667.4 crore, YoY.

Market at 2 PM

Benchmark indices erased some of the intraday losses but still traded lower with Nifty around 18150.

The Sensex was down 510.18 points or 0.82percentat 61,422.29, and the Nifty was down 146.00 points or 0.80percentat 18,140.50. About 1,399 shares advanced, 1,799 shares declined, and 105 shares were unchanged.

Geojit Financial Services launches FLIP, an enhanced mobile trading platform

Geojit Financial Services has announced the launch of its latest mobile trading platform, FLIP. The platform will replace the existing platform SELFIE, providing investors and traders with a comprehensive and flexible trading experience, backed by a range of advanced features.

Geojit Financial Services was quoting at Rs 42.45, down Rs 0.35, or 0.82 percent on the BSE.

Sterlite Technologies Q4 results

Sterlite Technologies has posted profit of Rs 65 crore in the quarter ended March 2023 against loss of Rs 22 crore in the same quarter last year. Revenue was up 25percentat Rs 1,872 crore versus Rs 1,497 crore, YoY.

Morgan Stanley View On LIC Housing Finance

-Underweight rating, target at Rs 320 per share
-PAT beat estimates by 32%
-Sharp improvement in loan spreads caused 19% NII beat
-Lower operating costs caused 21% PPoP beat
-Home loan disbursements fell, total loans grew

Talbros Automotive Q4 profit jumps 34%

Talbros Automotive Components has reported 34percentyear-on-year growth in consolidated profit at Rs 16.88 crore for the quarter ended March FY23, with revenue rising 18.2percentYoY to Rs 175 crore.

Hester Biosciences Q4 Results:

Hester Biosciences has reported 41.6 percent fall in Q4 net profit at Rs 4.5 crore versus Rs 8 crore and revenue was up 19.1% at Rs 67.2 crore versus Rs 56.4 crore, YoY.

Metropolis Healthcare Q4 profit falls 6.8%

Metropolis Healthcare has recorded a 6.8percentyear-on-year growth in consolidated profit at Rs 33.35 crore for the March FY23 quarter, impacted by lower topline and other income. Revenue for the quarter fell by 1percentto Rs 282.5 crore compared to the corresponding period last fiscal.

Metropolis Healthcare was quoting at Rs 1,311.50, up Rs 2.95, or 0.23 percent.

Brokerages on Bank of Baroda

Global broking and research firm JP Morgan has retained its 'overweight' call on the stock, with a price target of Rs 230. "The lender's profits have more than doubled in the last four quarters, thanks to moderating credit costs," it said in a report. The broking firm also sees the management's guidance of 1 percent return on assets (RoAs) for FY24 as conservative, given that RoAs have hit 1.34 percent in Q4 FY23.

Macquarie sees normalised credit costs as key to maintaining profitability for Bank of Baroda. Going ahead, the firm also views margin protection and loan growth as key focus areas for the lender. The broking house has a 'neutral' rating for the stock, with a target price of Rs 180.

Nuvama Institutional Equities believes Bank of Baroda has made more progress than other state-run lenders in adopting practices of private banks and making private hires. Finding the risk-reward attractive, the broking firm has retained its 'buy' call on the stock, with a price target of Rs 220. "The bank has delivered an RoA of over 1 percent in the last three quarters, if it can sustain this performance, the stock can likely re-rate," Nuvama wrote in its report.

SMALLCAP World Fund reduces stake in​ Navin Fluorine International

SMALLCAP World Fund sells 2.89 percentstake in Navin Fluorine International via the open market on May 12, reducing the stake to 3.29percentfrom 6.18 percent, reported CNBC-TV18.

Navin Fluorine International was quoting at Rs 4,650.40, down Rs 31.20, or 0.67 percent.

Sources to CNBC-Awaaz:

Cabinet likely to have approved 35percentcut in nutrient-based subsidy for fertiliser
Cabinet likely to have approved a cut in subsidy for DAP, MOP fertiliser
The new subsidy will be for the period between April-September
Cabinet likely to have approved Rs 17,000 crore PLI (Production-linked Incentive) scheme for IT hardware

Jubilant FoodWorks Q4

Jubilant FoodWorks has posted 59.5 percent fall in its Q4 net profit at Rs 47.5 crore versus Rs 116.1 crore and revenue was up 8.2% at Rs 1,252.3 crore versus Rs 1,157.8 crore, YoY.

Jubilant FoodWorks was quoting at Rs 469.00, up Rs 2.50, or 0.54 percent.

Market at 1 PM

Benchmark indices were trading weak in the afternoon session.

The Sensex was down 529.46 points or 0.85percentat 61,403.01, and the Nifty was down 146.50 points or 0.80 percentat 18,140. About 1,363 shares advanced, 1,802 shares declined, and 110 shares were unchanged.

Devyani International Q4 Results:

Devyani International has posted 20 percent fall in its Q4 net profit at Rs 60.7 crore versus Rs 76 crore and revenue was up 27.8 percentat Rs 755 crore versus Rs 590.7 crore, YoY.

BPCL gets board approval for ethylene cracker project at Bina refinery

Bharat Petroleum Corporation has received board approval for ethylene cracker project at Bina refinery including downstream petrochemical plants and expansion of refinery with capital expenditure of approximately Rs 49,000 crore.

The company will also be setting up two 50 MW wind power plants for captive consumption one at Bina Refinery in Madhya Pradesh and another at Mumbai Refinery in Maharashtra, with total project cost of Rs 978 crore.

It will be putting up petroleum oil lubricants (POL) and lube oil base stock (LOBS) storage installations with receipt pipelines at Rasayani in Maharashtra with project cost of Rs 1,903 crore.

Bharat Petroleum Corporation was quoting at Rs 364.65, up Rs 2.35, or 0.65 percent on the BSE.

BSE Metal index down 1 percent dragged by Jindal Steel, SAIL, Hindalco Industries

Zydus Wellness reports Q4 Results 

-Net profit up 6.9 percentat Rs 145.6 crore vs Rs 136.2 crore (YoY)

-Revenue up 11.1percentat Rs 713 crore vs Rs 641.7 crore (YoY)

-EBITDA up 0.8percentat Rs 144.7 crore vs Rs 143.5 crore (YoY)

-Margin at 20.3percentvs 22.4percent(YoY)

MRF enters into purchase agreement with First Energy 4

MRF has entered into a purchase agreement with First Energy 4 Private Limited for the purchase of solar power and will be acquiring up to 19.10 percentequity of the company for Rs 13.09 crore. First Energy 4 is a solar power generation company.

MRF was quoting at Rs 97,112.50, up Rs 633.10, or 0.66 percent on the BSE.