Closing Bell: Sensex, Nifty Pare All Gains Dragged By Axis Bank, Wipro, Maruti
Indian equity benchmarks pared all of their intraday gains to close 0.8% lower, dragged by heavyweights Reliance Industries, Axis Bank and Maruti Suzuki.
The S&P BSE Sensex ended the day at 57,060.87, while NSE Nifty 50 Index closed at 17,102.5.
The S&P BSE MidCap, S&P BSE SmallCap and S&P BSE LargeCap all declined, with the broader peers ending 0.93% lower. All 19 sector sub-indices compiled by BSE Ltd. declined, led by oil and gas stocks.
The market breadth was skewed in favour of the bears. About 1,472 stocks gained, 1,862 declined and 143 unchanged.
TVS Motor Down Most In Seven Weeks
Shares of TVS Motor Company fell 4.2%, the most in seven weeks. The stock was the worst performer among its peers, outpacing losses in S&P BSE Sensex.
Ultratech Cement Beats Estimates
Revenues up 8.6% at Rs 15,167.5 crore vs Rs 13,965.61 crore (BBE of Rs 15,051.4 crore)
Net profit up 38 % at Rs 2,453.9 crore vs Rs 1,777.6 crore (BBE of Rs 1,504 crore)
EBITDA down 16.2% at Rs 2943.3 crore vs Rs 3,512.5 crore (BBE of Rs 2,822 crore)
Margins at 19.4% vs 25. 2% (BBE of 19%)
Maruti Suzuki Beats Estimates in Q4; Shares Trade Lower
Shares of Maruti Suzuki traded in the red even as India's largest carmaker beat profit and revenue estimates for Q4 comfortably.
Revenue up 11.31% at Rs 26,740 crore Vs Rs 24,023 crore (BBG estimate : Rs 26,661 crore)
Net profit up 57.71% to Rs 1839 crore from Rs 1,161 crore (BBG estimate : Rs 1,482 crore Profit)
EBITDA up 55.61% to Rs 2,426 crore from Rs 1,991 crore (BBG estimate: Rs 2,173 crore)
Margins at 9.1% Vs 8.29% (BBG estimate : 8.15%)
Maruti Suzuki Falls 1%
Shares of Maruti Suzuki Ltd. dropped 1% ahead of the company's scheduled Q4 earnings release today.
TV18 Broadcast Drops 11%
Shares of TV18 Broadcast Ltd. fell as much as 11%, to the lowest in more than nine weeks.
This decline makes the total slump in the last two days at near 25%. This comes after Reliance Industries Ltd. announced that Bodhi Tree Systems and James Murdoch's Lupa Systems will raise and invest Rs 13,500 crore in Viacom18.
Accordingly, about 7.03 million shares of TV18 Broadcast changed hands in four large trades in yesterday's session.
10-Year Bond Yield Falls On Auction Cutoffs
MedPlus Health Up Most In A Month
Shares of MedPlus Health Ltd. gained the most in a month after Haitong International initiated covergae on the stock with a 'outperform' rating.
The brokerage set a price a target of Rs 1,380 a piece on the stock, implying a 40% potential upside.
Shares of the company gained 4.1%. The stock was the best performer among peers.
Midday Market Update
Indian equity benchmarks stayed the course, trading 0.6% in the green.
The S&P BSE Sensex is at 57,898.35, while NSE Nifty 50 Index is trading flat at 17,357.1.
The S&P BSE MidCap, S&P BSE SmallCap and S&P BSE LargeCap all advanced between 0.5% and 0.6%. Three of the 19 sector sub-indices compiled by BSE Ltd. declined, led by oil and gas stocks. The S&P BSE Realty was the best performer, up 1%.
The market breadth was slightly skewed in favour of the bulls. About 1,769 stocks gained, 1,476 declined and 135 remained unchanged.
Large Trade: Prism Johnson
Prism Johnson has 1.91 million shares change hands in a large trade.
Details of buyers, sellers are not known immediately.
Source: Bloomberg
Tata Sons To Enter Chip, Battery Production
Tata Sons Chairman N Chandrasekaran says the conglomerate will look at manufacturing semiconductors.
He added that the company will soon announce its battery manufacturing plans.
He made the announcement at the sidelines of the concept launch of Tata's electric hatchback Avinya, which is set to be launched by 2025.
Source: Bloomberg
Zomato Slips Below Lower End Of IPO Price Band In Nine Months Since Debut
The stock rose to a record Rs 169 on November 16 before shedding the share price by more than half.
Of the 19 analysts tracking the company, 16 maintain 'buy', two suggest 'hold' and one recommends 'sell'.
Source: Bloomberg
Shoppers Stop Declines Most In Over Two Months On Q4 Miss
Shares of Shoppers Stop fell over 10%, the steepest decline in over two months since Feb. 24, when the markets were rocked as Russia began the invasion of Ukraine.
The company's net loss narrowed in the quarter-ended March, Ebitda and revenue fell while margin contracted.
Trading volume was five times the 30-day average. Of the 13 analysts tracking the company, eight maintain 'buy', four recommend 'hold' and one suggests 'sell'. The return potential of the stock is -16.7%.
Source: Exchange filing, Bloomberg
Premier Explosives Surges On Rs 100 Crore Order For Rocket Motors
Secunderabad-based manufacturer of explosives and related accessories Premier Explosives hit 5% upper circuit.
The company received an order worth Rs 100.4 crore from an overseas entity.
The order pertains to the supply of Rocket Motors. The order is expected to be delivered within 18 months.
The relative strength index of the stock is at 73, suggesting it may be overbought. The company will announce its earnings for the quarter-ended March on Monday.
Source: Exchange filing, Bloomberg
Schaeffler India Adds Over 12% In Three Days Since Q4 Results
Shares of Schaeffler India rose over 9.6%, the most in over six weeks. Trading volume is nearly 2.5 times the 30-day average. The relative strength index of the stock is at 83, suggesting it may be overbought.
Since the company reported earnings on Wednesday, the stock has risen over 12% in three sessions.
Source: Bloomberg
India Yield Curve Steady, Stocks Up
Maturities across the India sovereign yield curve were little changed in Friday morning trading.
The 2-year yield rose 0.6bps to 5.5%
The 10-year yield rose 2.2bps to 7.178%
The 20-year yield remained unchanged at 7.305%
The 2-year-10-year yield spread was 167.8bps, vs previous close 166.2bps.
Source: Bloomberg
Indiamart Falls Most In Over Seven Weeks
Shares of Indiamart Intermesh fell over 5%, the most in over seven weeks after reporting 18.2% decline in Q4 net profit.
IndiaMart Q4 FY22 (Consolidated, QoQ)
Revenue up 7% at Rs 201.4 crore Vs Rs 188.1 crore
EBIT fell 28.4% at Rs 54.3 crore Vs Rs 75.8 crore
EBIT margin 27% Vs 40%
Net profit fell 18.2% at Rs 57.4 crore Vs Rs 70.2 crore
Trading volume is 3.6 times the 30-day average at this time of the day. Of the 15 analysts tracking the e-commerce firm, 11 maintain 'buy', two suggest 'hold' and two recommend 'sell'. The return potential of the stock is 29.4%.
Source: Exchange filing, Bloomberg
Vedanta Rises As Analysts Reiterate 'Buy' Citing Record Dividend Payment, Growth Outlook After Q4 Results
Shares of Vedanta rose 2% after analysts remained upbeat on the stock after Q4 results, citing record dividend payment and encouraging growth outlook.
Source: Bloomberg
Large Trade: IEX, ITC
IEX has 3.43 million shares change hands in a large trade.
ITC has 2 million shares change hands in a large trade.
Details of buyers, sellers are not known immediately.
Source: Bloomberg
Large Trade: Adani Power
Adani Power has 1.76 million shares change hands in a large trade. Adani Power has another 1 million shares change in a large trade. Details of buyers, sellers are not known immediately.
Source: Bloomberg
MPC Member Shashanka Bhide Speaks To Bloomberg
MPC “a little surprised” by food inflation.
Fiscal intervention needed to avoid a spike in prices.
Not in anybody’s interest to miss the inflation target.
Source: Bloomberg
Rupee Falls Against The Dollar; India Bond Yield Rises
10-year yield rises 2bps to 7.18%, during the session
Rupee depreciates 0.2% to 76.64 against the U.S. dollar during the session.
Source: Bloomberg
Large Trade: NTPC, Petronet LNG
NTPC has 3.07 million shares change hands in a large trade.
Petronet LNG has 1.28 million shares change hands in a large trade.
Details of buyers, sellers are not known immediately.
Source: Bloomberg
Winning Streak: BSE, Sun Pharma
Sun Pharma shares rise the most in 12 weeks, trading volume quadruples.
BSE shares advance 6.5%, the most in six weeks, trading volume is 12 times the 20-day average.
Source: Bloomberg
Large Trade: ICICI Bank
ICICI Bank has 1.04 million shares change hands in a large trade. Details of buyers, sellers are not known immediately.
Source: Bloomberg
Axis Bank Slips Most In Over Seven Weeks
Shares of Axis Bank fell over 4%, the steepest decline in over seven weeks, after the lender reported net income that beat the average analyst estimate for the quarter-ended March, post market hours on Thursday.
Analysts say that profit beat was driven by lower provisions against bad loans as they expected operating expenditure to remain high.
Trading volume is more than quadruple the 30-day average volume at this time of the day.
The stock was the biggest laggard on Nifty Bank and Nifty 50 indices.
Source: Exchange filing, Bloomberg
Analyst Actions: Persistent, Varun Beverages
Persistent Systems raised to 'neutral' from 'reduce' at Choice Equity; price target set at Rs 4,440, an implied upside of 1.3%.
Varun Beverages cut to 'hold' from 'add' at ICICI Securities; price target set at Rs 1,030, an implied downside of 6.4%.
Source: Bloomberg
Varroc Engineering Jumps 20% To Record
Shares of Varroc Engineering surged 20% to a record Rs 493.85 apiece after the company signed deal to divest four-wheeler lighting business in Americas, Europe
Varroc Engineering has signed a securities purchase agreement with French firm Compagnie Plastic Omnium SE.
The divestment is part of the company's strategy to align its resources in China, India and two-wheeler sector globally.
The 600 million Euro transaction will see the firm divesting its lighting system operations in the U.S., Brazil, Mexico, Poland, Czech Republic, Germany, Turkey and Morocco.
Trading volume on the stock is nearly 20 times the 30-day average. The relative strength index is at 78, suggesting the stock may be overbought.
Of the 12 analysts tracking the company, 11 maintain 'buy' and one recommends 'hold'. The return potential on the stock is -15.4%.
Source: Exchange Filing, Bloomberg
NSE Nifty Pharma Index Rises 1%
Opening Bell: Sensex, Nifty Open Higher; Sun Pharma, IndusInd Bank Rise
India's stock benchmarks rose, aided by gains in healthcare, energy and oil and gas stocks, amid rebound in global equities.
The Sensex added over 350 points, over 0.6% to 57,886.38. The Nifty also advanced by similar magnitude to 17,340.05.
The broader indices almost mirrored their larger peers. All the 19 sectoral indices compiled by BSE Ltd. rose, with S&P BSE Healthcare adding over 1%.
The market breadth was skewed in the favour of bulls. About 1,820 stocks advanced, 729 stocks declined and 75 remained unchanged.
Varroc Engineering To Divest Four-Wheeler Lighting Business In Americas, Europe
Varroc Engineering has signed a securities purchase agreement with French firm Compagnie Plastic Omnium SE to divest its four-wheeler lighting systems operations in the U.S. and Europe.
The divestment is part of the company's strategy to align its resources in China, India and two-wheeler sector globall.
The 600 million Euro transaction will see the firm divesting its lighting system operations in the U.S., Brazil, Mexico, Poland, Czech Republic, Germany, Turkey and Morocco.
Source: Exchange filing
Analyst Actions: Ambuja Cements
Ambuja Cements cut to 'hold' from 'accumulate' at Prabhudas Lilladher; price target set at Rs 400, an implied return of 4.3%
Ambuja Cements cut to 'hold' from 'buy' at Emkay Global; price target set at Rs 410, an implied return of 7%
The company's annual meeting is scheduled for today.
Source: Bloomberg
Analysts Expect Axis Bank's Operating Expenditure To Remain High
Axis Bank reported net income for the fourth quarter that beat the average analyst estimate. Growth in retail loans and lower provisioning aided the growth in net income.
Axis Bank Q4 FY22 (Standalone)
Net Interest income up 17% at Rs 8,815 crore Vs Rs 7,555 crore (YoY)
Net Profit up 54% at Rs 4,118 crore Vs Rs 2,677 crore (YoY) (Bloomberg estimate: Rs 3,909.5 crore)
GNPA: 2.82% vs 3.17% (QoQ)
NNPA: 0.73% vs 0.91% (QoQ)
Recommended dividend of Rs 1 per share of face of Rs 2 each
Here's the gist of the brokerages' view on Axis Bank
Prabhudas Lilladher
Retains buy and slashes price target to Rs 940 fro Rs 975.
Profit beat was driven by lower provisions against bad loans.
Improving asset quality is a comfort, but operating expenditure may remain high.
Low likelihood of achieving guided RoE of 16% as margin recovery could take longer.
Motilal Oswal
Retains buy and maintains target price unchanged.
Lower provisions supported pick up in earnings.
Asset quality continues to improve.
Nirmal Bang
Operating profit was under pessure due to high investment in growth, technology.
Asset quality showed improvement and credit costs are expected to trend lower.
Source: Bloomberg, Brokerage notes
Cabinet Secretary To Review Asset Sale Timelines Today, Reports Economic Times
India’s Cabinet Secretary, the nation’s senior-most bureaucrat, will meet top official from 12 key ministries to discuss monetization of infrastructure assets such as power lines, gas pipelines, roads and railway properties, Economic Times reported, citing people it didn’t identify.
Government is seeking to fast-track the process to meet Rs 1.62 lakh crore asset monetization aim for 2022-23 fiscal year.
All the ministries to make detailed presentations on asset sale road map at the meeting, according to the report.
Ministries that missed asset monetization target last year will be asked to explain reasons.
Future Lifestyle Plans Debt Recast Pitch To Avoid Bankruptcy, Reports Economic Times
Future Lifestyle Fashions Ltd. would soon present a debt restructuring plan to stave off its entry into the bankruptcy process, the Economic Times newspaper reported citing two people it didn’t identify.
Company informed the plan to its lenders on April 26.
Future Lifestyle needs to arrange Rs 163 crore by April 30 to prevent a possible default.
Future Lifestyle was part of the asset-sale deal with Reliance Industries companies that collapsed.
Future Group did not respond to queries sent by the newspaper.
Analyst Actions: Bajaj Auto, KPR Mill
Bajaj Auto cut to 'equal-weight' from 'overweight' at Morgan Stanley; target price set at Rs 4,182, an implied upside of 9.1%.
KPR Mill cut to 'hold' from 'buy' at Antique Stock Broking; price target set at Rs 709, an implied upside of 8%.
Source: Bloomberg
Trade Setup For Friday
Earnings Today
Wipro
Ultratech Cement
Maruti Suzuki India
Tata Chemicals
SBI Cards and Payment Services
Shriram City Union Finance
Can Fin Homes
Gillette India
GNA Axles
Gokaldas Exports
HFCL
IndusInd Bank
L&T Finance Holdings
LLoyds Metals and Energy
Solara Active Pharma Sciences
Sonata Software
Star Health and Allied Insurance Company
Supreme Industries
Tanla Platforms
Thyrocare Technologies
Stocks To Watch
Tata Power: Signed Memorandum of Understanding with National Real Estate Development Council to set up 5,000 EV charging points across its member’s developer properties.
Colgate Palmolive: The company appointed Prabha Narasimhan as CEO and MD for five years effective September 1. Current MD and CEO Ram Raghavan resigned after being promoted as the President – Enterprise Oral Care, Colgate-Palmolive Company, New York. It also declared second interim dividend of Rs 21 per share of face of Rs 1 each.
Sterlite Technologies: Approved raising of funds of upto Rs 1,000 crore.
Lemon Tree Hotels: Approved acquisition of 25.10% stake in Carnation Hotels for Rs 18.85 crore.
Jindal Poly Films: Jindal Polypack, a wholly owned subsidiary of the company will acquire 100% stake in SMI Coated Products for Rs 99.65 crore. SMI Coated Products is engaged in the manufacturing of pressure sensitive label stocks.
Earnings Post Market Hours
Axis Bank Q4 FY22 (Standalone)
Net Interest income up 17% at Rs 8,815 crore Vs Rs 7,555 crore (YoY)
Net Profit up 54% at Rs 4,118 crore Vs Rs 2,677 crore (YoY) (Bloomberg estimate: Rs 3,909.5 crore)
GNPA: 2.82% vs 3.17% (QoQ)
NNPA: 0.73% vs 0.91% (QoQ)
Recommended dividend of Rs 1 per share of face of Rs 2 each
Biocon Q4 FY22 (Consolidated, YoY)
Revenue up 30.8% at Rs 2.408.8 crore Vs Rs 1,842.1 crore (Bloomberg Estimate: Rs 2,252 crore)
EBITDA up 35.8% at Rs 591.9 crore Vs Rs 435.7 crore (Bloomberg Estimate: Rs 567 crore)
EBITDA margin 24.6% Vs 23.65% (Bloomberg Estimate: 25.2%)
Net profit fell 5.8% at Rs 238.6 crore Vs Rs 253.2 crore (Bloomberg Estimate: Rs 237 crore)
Recommended a final dividend of Rs 0.5 per share of face of Rs 5 each
Vedanta Q4 FY22 (Consolidated, QoQ)
Revenues up 16.8% at Rs 39,822 crore Vs Rs 34,097 crore
EBITDA up 26.1% at Rs 13,633 crore Vs Rs 10,810 crore
EBITDA Margins at 34.2% vs 31.7%
Net profit up 39.3% at Rs 5,799 crore Vs Rs 4,164 crore
Approved first interim dividend of Rs 31.5 per share of face of Rs 1 each
Ambuja Cement Q1 CY22 (Standalone, YoY)
Revenues up 8.4% at Rs 3925.2 crore Vs Rs 3621.4 crore (Bloomberg Estimate: Rs 3,906.2 crore)
EBITDA fell 19.1% at Rs 790.39 crore Vs Rs 976.8 crore (Bloomberg Estimate: Rs 684 crore)
EBITDA Margins at 20.1% vs 27% (Bloomberg Estimate: 17%)
Net profit fell 25.4% at Rs 495.2 crore Vs Rs 664.57 crore (Bloomberg Estimate: Rs 405 crore)
IndiaMart Q4 FY22 (Consolidated, QoQ)
Revenue up 7% at Rs 201.4 crore Vs Rs 188.1 crore
EBIT fell 28.4% at Rs 54.3 crore Vs Rs 75.8 crore
EBIT margin 27% Vs 40%
Net profit fell 18.2% at Rs 57.4 crore Vs Rs 70.2 crore
Shopper’s Stop Q4 FY22 (Consolidated, QoQ)
Revenue fell 25.5% at Rs 713.34 crore Vs Rs 958.11 crore
EBITDA fell 58.5% at Rs 76.24 crore Vs Rs 183.89 crore
EBITDA margin 10.7% Vs 19.19%
Net loss at Rs 15.85 crore Vs net profit of Rs 77.22 crore
IIFL Finance Q4 FY22 (Consolidated, YoY)
Revenue up 16.12% at Rs 1856.2 crore Vs Rs 1,598.5 crore
EBIT up 19% at Rs 1131.4 crore Vs Rs 951 crore
EBIT margin 61% Vs 59.5%
Net profit up 29.6% at Rs 320.93 crore Vs Rs 247.63 crore
Sensex, Nifty Set To Gain; Axis Bank, Biocon, Vedanta, Ambuja, Wipro, Maruti In Focus
U.S. equity futures declined on Friday after post-earnings fall in Amazon.com Inc. and Apple Inc. after Wall Street logged gains.
Futures on the S&P 500 and technology-heavy Nasdaq 100 retreated, with the latter shedding over 1%. Equities rose in Australia and South Korea, while Japan is closed for a holiday.
The Singapore-traded SGX Nifty, an early barometer of India's benchmark Nifty 50, rose 0.48% to 17,312.50 points as of 8:05 a.m.
The dollar dipped but is set for its best week since the beginning of this year. Crude held a jump to about $105 a barrel, amid rising prospect of a European Union ban on Russian crude in retaliation for the invasion of Ukraine.
RECOMMENDED FOR YOU
POPULAR