Daily Big Picture : Nifty Registers Distribution Day; Piramal Enterprises Signs Deal with Canada Pension Plan Investment Board

Today’s Action

Nifty, -0.9%; Sensex, -0.8%; Model Portfolio, -1.1%; Nifty Midcap, -1.2%; Smallcap, -1.0%; MSI IND47, -0.7%.

Daily Market Review

Market Status: Confirmed Uptrend

The benchmark indices closed lower today, with the Nifty registering a distribution day on account of heavy sell-off seen in stocks such as Tata Motors (-4.4%), Icici Bank (-3.7%), and Reliance Industries (-3.0%). The sell-off was more intense during the latter half of the day. Nifty Midcap (-1.2%) and Smallcap (-1.0%) also had similar declines.

Currently, the distribution day count stands at two. We might downgrade the status to an Uptrend Under Pressure if the count increases to 3-4.

Barring Nifty IT (+0.2%), all the sectoral indices declined. Nifty Media (-2.7%), Metal (-1.3%), and Banks (-1.1%) were the top losers for the day.

The advance-decline ratio was in favor of decliners.

Key News

Escorts reported its Q4 FY19 results today. Its consolidated profit for the quarter grew ~8% y/y, taking the overall profit growth for the whole FY 2019 to ~38%. Tractor volume for FY 2019 grewincreased ~20% to 96,412 units. The EBITDA for FY 2019 rose ~32%. However, April tractor sales volume was down ~15%. The stock ended 2.4% lower.

Piramal Enterprises closed 0.1% higher. The Company signed an MOU with Canada Pension Plan Investment Board to co-sponsor India’s first renewable energy-focused Infrastructure Investment Trust, with an initial corpus of $600M.

Vip Industries reported its Q4 results. Its net profit fell 28% y/y to Rs 23.3 crore while revenue increased 20% to Rs 435 crore. EBITDA was down 27% to Rs 39.6 crore, with margins down 590 bps to 9.1%. The stock ended 2.8% lower.

Leaders Up on Volume: Aavas Financiers (+5.1%), Kalpataru Power Tnsm. (+0.9%), and Titan Company (+0.3%).

Leaders Down on Volume: Gujarat Fluorochemicals (-1.7%), Future Lifestyle Fsh (-1.6%), and Bata India (-1.5%).

What do you think? Please email us any questions or comments.

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