Daily Big Picture : IT Stocks Drag Nifty; Dabur Reports Decline in Q4 FY19 Profit

Today’s Action

Nifty, -0.2%; Sensex, -0.1%; Model Portfolio, -0.9%; Nifty Midcap, -0.6%; Smallcap, 0.0%.

Daily Market Review

Market Status: Confirmed Uptrend

Nifty 50 (-0.2%) and Sensex (-0.1%) mustered some momentum in the initial hours, but gradually declined afterward. Nifty did not register a distribution day as volumes were lower than that of the previous trading session. In broader indices, Nifty Midcap (-0.6%) and Smallcap (0.0%) showed some divergence from each other.

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

Nifty IT (-1.8%) and Pharma (-1.2%) were the worst performers. Except Nifty Financial Services (+0.2%) and Realty (-0.1%), all other sectoral indices ended in the red.

The advance-decline ratio was in favor of decliners. Of the 2,099 stocks traded on the NSE, 702 advanced, 1,352 declined, and 345 remained unchanged.

Key News

Dabur India reported its Q4 FY19 results during market hours. Revenue was up 4.7%. PAT, however, was down 6.5%, due to one-off impairment charges pertaining to a subsidiary in Turkey. Both top line and bottom line missed analyst estimates and the stock ended 4% lower.

Ashok Leyland reported higher-than-expected sales figure for April. It posted 7% y/y growth aided by expansion in LCV (Light Commercial Vehicle) sales. The rating agency ICRA upgraded long-term debt rating for the Company from AA to AA+. The stock reacted positively and ended 3% higher.

Bandhan Bank reported its Q4 FY19 results during market hours. Net profit increased 68%, aided by 45.6% growth in NII. Overall results beat market expectations and the stock ended 4.2% higher.

Leaders Up on Volume: Capri Global Capital (+7.3%), Vinati Organics (+3.2%), and Pvr (+2.0%).

Leaders Down on Volume: Bharat Financial Inclusion Ltd (-2.8%), Inox Leisure (-0.9%), and Multi Cmod.Ex.Of India (-0.6%).

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

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