NIFTY slips for second day in a row, IT company stocks underperform. The 50-share NSE index NIFTY fell 0.36% to finish at 10679.65 on Thursday. The Indian benchmark index NIFTY slipped for a second straight session dragged by IT stocks amid a broad downtrend in global equities. The investor sentiment was majorly driven by lower-than-expected quarterly numbers and sustained Foreign Fund outflows.

Looking overseas, European markets trading mixed to lower tracking Asian markets which finished mixed to lower on Thursday. The sentiment across the global equity markets was muted on Thursday as investors worries over global trade tensions weighed and disappointment by the Fed policy meet which threw up no surprises with rates left unchanged.

Among sector gauges compiled by the NSE NIFTY IT, NIFTY REALTY and NIFTY FMCG underperformed as top losers while NNIFTY METAL and NIFTY PVT BANK are top gainers.

From the NIFTY 50 basket of shares, HCLTECH, UPL, EICHERMOT, KOTAKBANK, IBULHSGFIN, TECHM and LT underperformed as top losers while SUNPHARMA, INFRATEL, TATASTEEL, NTPC, ICICIBANK and AXISBANK are top gainers.

Top stocks to watch on Friday 04 May

SUNPHARMA: This stock surged by 4.04% and to close at Rs.536. This stock trading volume spiked by 154 percent with numerous intraday trades. This stock is currently settled above the recent resistance zone and the short-term support is around Rs.503.

SIEMENS: This stock plunged by 6.06% and finished at Rs. 1060.45. This stock trading volume rose by 576 percent with numerous intraday trades. This stock is trading below its recent support zone and the near-term resistance is seen around Rs.1137.

RELINFRA: This stock plunged by 4.55% and ended at Rs.413.6. Derivative traders were aggressive in adding short positions and Open interest gained by 9.45%. This stock is trading below its recent support zone and the near-term resistance is seen around Rs.466.

PCJEWELLER: This stock surged by 9.76% and ended at Rs.121.45. This stock trading volume hiked by 346 percent with numerous intraday trades at last trading day. This stock is frequently grinding lower levels for 6 days and trading below its recent support zone and the near-term resistance is seen around Rs.317.

JUSTDIAL: This stock plunged by 6.11% and closed at Rs.382.3. This stock trading volume hiked by 423 percent with numerous trades were settled intraday. This stock is trading below its recent support zone and the near-term resistance is seen around Rs.479.

JETAIRWAYS: This stock plunged by 12.29% and settled at Rs.520.05. This stock trading volume rose by 198 percent with most of the trades are intraday trades. This stock is trading below its recent support zone and the near-term resistance is seen around Rs.646.

HDFC: This stock volume inflated by 77 percent 80% of the trades are taken for delivery at last trading day.  This stock is steadily advancing for 3 days to currently settle above the recent resistance zone and the short-term support is around Rs.1805.

HCLTECH: This stock plunged by 7.48% and to close at Rs.925.7. This stock volume hiked by 134 percent with most of the trades are intraday trades. Derivative traders were aggressive in adding short positions and Open interest surged by 13.74%. This stock is continuously scaling down for 3 days to trade below its recent support zone and the near-term resistance is seen around Rs.1092.

Q4 Result Insights

Vedanta

  • Revenue for Q4 was at Rs. 27630 crore, up 13% on sequential basis, primarily on account of higher volumes and improved commodity prices.

  • Revenues for FY 18 were at Rs.92923 crore up 22% y-o-y basis. The increase was mainly on account of ramp-up of capacities at Aluminium, record production from Zinc India and improved commodity prices partly offset by currency appreciation and lower sales at Iron ore.

  • EBITDA for Q4 was at Rs.7929 crore, up 17% on sequential basis, primarily on account of higher volumes from Zinc India and Aluminium business.

  • Finance cost for Q4 FY 2018 was at Rs 1424 crore, 9% higher q-o-q basis primarily due to capitalisation at Aluminium business.

  • PAT for quarter was at Rs.2420 crore 15% higher q-o-q basis.

  • EPS was at Rs.21.96 per share compared to Rs.24.70 per share for FY 17.

Viewpoint: Vedanta has got strong cash flow for self-funding in its future growth and since many investments are there in their future pipeline of products, company’s growth largely depends on returns that it gets on its future investments.

MRF

  • Net profit grew to Rs.345Crores in this quarter, an increase of 20.6% on same quarter previous year.

  • Top line grew to Rs.3944 crores in this quarter, an increase of 4.3 % on march quarter, last year.

  • Earnings per share remained at Rs.814, an increase of 20%.

  • Net profit margin remained at 8.5 %, when compared to the margin of  7.5% in march quarter last year.

  • The Company’s export for the year ended 31St March 2018, was Rs. 1353 Crore as against Rs.1316 Crore for the previous year ended 31St March 2017

Viewpoint: MRF is ranked among the worlds’ top 20 tyre Manufacturers. In the last fiscal, the introduction of the landmark Goods and Services Tax (GST) brought in some uncertainties as businesses adjusted to the new tax regime. Heavy spending on infrastructure by the government will help support long-term growth on tyre industry. Escalation in the cost of crude based inputs remains a concern and will add pressure to the bottom-line.