Sensex, Nifty Snap Four-Session Winning Streak As Selloff In Metals, Banks Offset OMCs Rally
India stocks snapped a four-session winning streak, tracking peers across Asia, on concerns that higher inflation in the U.S. may push up interest rates, which could slow dollar-flows into emerging markets.
The S&P BSE Sensex dropped 0.7% to 49,161.81, while the NSE Nifty 50 Index declined 0.6% to 14,850.75. Housing Development Finance Corp. contributed the most to the index decline, decreasing 2.7%. JSW Steel Ltd. had the largest drop, falling 3.2%.
The broader market outperformed their larger peers with the S&P BSE MidCap gaining 0.6% and S&P BSE SmallCap climbing 0.8% at the close.
Ten of the 19 sector sub-indices compiled by BSE Ltd. advanced, led by a gauge of utilities. The S&P BSE Metal saw some profit-booking after the index hit a record on Monday.
Godrej Consumer Q4 Net Income Misses Estimates
Godrej Consumer reported net income for the fourth quarter that missed the average analyst estimate.
- Net income Rs 366 crore, +59% YoY, estimate Rs 414 crore
- Revenue Rs 2,730 crore, +27% YoY, estimate Rs 2,678 crore
- Total costs Rs 2,260 crore, +26% YoY
- Other income Rs 16.57 crore, -66% YoY
COMMENTARY AND CONTEXT
- India business sales grew by 35% year-on-year
- Q4 consolidated Ebitda grew 21% YoY
- Says remain confident of leveraging growth opportunities to drive sustainable, profitable sales growth across the portfolio in FY22
MidCap Outperform Larger Peers
OMCs Rally On Report Fuel Retailers Have Hiked Prices
Indian oil refiners advance after news agency The Press Trust of India reported companies have raised prices of petrol and diesel for a sixth time in recent weeks, citing price notifications by state-owned fuel retailers.
- Companies have also been better-off this year despite the deadly virus wave due to additional storage facilities for surplus, absence of a nationwide lockdown and reopening of parts of Europe providing a potential outlet for excess supplies
- Mangalore Refinery & Petrochemicals rises as much as 9.1% to its highest since Jan. 2020; Indian Oil Corp. 5.3%, Hindustan Petroleum Corp. 4.5% while Bharat Petroleum Corp. 2.2%
- S&P BSE Oil and Gas Index climbs as much as 2.1% to its highest level in nearly two months.
BHEL Jumps 13% To Highest In 22 Months
Bharat Heavy Electricals Ltd. rose 13% after a bunch of large trades.
The company had 14.2 million shares change hands in five large trades, according to Bloomberg data.
- Trading in the company's put options totalled 12,788 contracts, compared with the average of 1,980 over the past 20 days. Trading in the company's call options totalled 28,174 contracts, compared with the average of 6,672 over the same period.
- The relative strength index on the stock was above 70, indicating it may be overbought.
- Analysts have three buy, nine hold, and 19 sell recommendations on the stock.
- The price target of Rs 31.41 represents a 58% decrease from the last price
Sunteck Sees A Bargain Brewing In Mumbai
Sunteck Realty Ltd. was the first to spot a business opportunity a decade ago, when it snapped up land in Mumbai’s upcoming financial district and built homes for wealthy bankers. Now, as a fallout of a prolonged cash squeeze and the pandemic, it sees a bargain brewing once again.
“Bargain deals have been available during the pandemic; we did three major acquisitions which were among the largest in the last seven years,” Chairman Kamal Khetan said in a phone interview. “Landowners are desperate now, they are chasing developers. This is a buyer’s market.”
Read the full story here.