Sensex, Nifty Close Little Changed As I.T. Gains Offset Losses In Healthcare, Realty Stocks

India's stock benchmarks erased gains to close little changed, as advance in information technology and realty stocks were offset by decline in healthcare and realty stocks. The two measures however snapped a three-day losing streak.

The Sensex fell over 800 points from day's high to close little changed at 55,702.23. The Nifty also erased day's gains to close below 16,700 for the second consecutive session. The move follows Wednesday's loss of 2.3% for Nifty. Infosys contributed most to index gains, rising 3.2%. Tech Mahindra had the largest increase, adding 4.2%. Today 21 of 50 shares rose, while 29 fell.

The broader indices underperformed their larger peers with S&P BSE MidCap losing 0.2% and S&P BSE SmallCap falling 0.3%. Ten of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Information Technology and Power indices gaining nearly 2%. On the flipside, S&P BSE Realty shed over 1.5%.

The market breadth was skewed in the favour of bears. About 1,523 stocks advanced, 1,819 declined and 119 remained unchanged.

Marico Q4 FY22 (Consolidated figures, YoY)

• Revenue up 7% at Rs 2,161 crore Vs Rs 2012 crore (BBG Estimate: Rs 2,175-crore)

• Net profit up 15% to Rs 251 crore from Rs 219 crore (BBG Estimate: Rs Rs 258.17-crore)

• EBITDA up 8% to Rs 346 crore Vs Rs 319 crore (BBG Estimate: Rs 359.24-crore)

• Margins at 16% Vs 15.9% (BBG Estimate: 16.5%)

Source: Exchange filing

• The Indian currency appreciated the most in over two weeks since April 21

• This is the second consecutive session when Rupee closed with gains

Source: Bloomberg

• Yield on the 10-year bond gained 7bps to 7.45% during the session, the highest since 2019.

Source: Bloomberg

Shares of Time Technoplast surged over 16% to highest since 2019 after the company announced that it signed a MoU with Tesla Power USA for orders worth Rs 100 crore.

• The order pertains to the supply of VRLA Batteries of different sizes for applications covering power, solar, UPS etc.

• The supply will be for both India and overseas markets.

• Trading volume is twice the 30-day average.

Source: Exchange filing

Shares of Cartrade Tech tumbled nearly 10.5%, the steepest intraday decline in over two months since Feb. 24.

• The decline comes after the company reported net loss of Rs 25.67 crore in Q4 compared to a profit of Rs 13.25 crore YoY, post market hours on Wednesday.

• Trading volume is more than quadruple the 30-day average volume. All four analysts tracking the company maintain 'buy', the return potential of the stock is 65.6%.

Source: Exchange filing, Bloomberg

• Supreme Court has dismissed a petition by Reliance Infrastructure Ltd.'s unit seeking a higher rate of interest on arbitration award dues from Delhi Metro Rail Corp.

• Apex Court upholds the Delhi High Court's order that refused Reliance Infrastructure's request for 2% additional interest rate over and above the central bank-set prime lending rate.

Source: Bloomberg

Yield on the 10-year bond rose 7bps to 7.45% during the session. This is the highest level since 2019.

Source: Bloomberg

• The Indian currency appreciated 0.56% to 75.99 during the session

• This is the most the Rupee has gained against dollar in nearly three months.

Source: Bloomberg

Dabur Q4 FY22 (Consolidated figures, YoY)

• Revenue up 8% at Rs 2517.8 crore Vs Rs 2,336.8 crore (BBG Estimate: Rs 2,528.81 crore)

• Net profit down 22% to Rs 294.22 crore from Rs 377.82 crore (BBG Estimate: Rs 394.73-crore)

• EBITDA up 2% to Rs 453.57 crore Vs Rs 444.93 crore (BBG Estimate: Rs 485.34-crore)

• Margins at 18% Vs 19% (BBG Estimate: 19.2%)

Source: Exchange filing

Shares of Firstsource Solutions rose over 6%, the most in over five weeks after the company reported net income for the quarter-ended March that beat the average analyst estimate.

Q4FY2022 Results (Consolidated, YoY)

• Ebit at Rs 175 crore Vs Rs 69.07 crore

• Net income at Rs 132.39 crore Vs Rs 46.68 crore (Bloomberg Estimate: Rs 127 crore)

• Revenue at Rs 1,523.88 crore Vs Rs 1,449.63 crore (Estimate: Rs 1,474 crore)

Trading volume was quadruple the 30-day average. Of the nine analysts tracking the company, seven suggest 'buy' and two recommend 'sell'. The return potential of the stock is 51.3%.

Source: Exchange filing, Bloomberg

Shares of Hero MotoCorp rose over 5.3%, the most in over a week. In an analysts call on Wednesday, the company said that demand scenario is looking good. The company also informed that it was able to bring down the inventory to six to seven weeks.

• The company said it had a market share of 82% in March and had gained share month-on-month over January, February and March, at the entry level.

• The company also added that it believed that growth will accelerate further as chip shortage eases.

• Trading volume on the stock is twice the 30-day average. The stock is among the top gainers in NSE Nifty 50 index and top gainer in Nifty Auto index.

• Of the 50 analysts tracking the company, 33 maintain 'buy', 12 suggest 'hold' and five recommend 'sell'.

Source: Bloomberg

Tata Power's subsidiary Tata Power Solar Systems secured India's largest single solar EPC order of 1 Giga Watt for approximately Rs 5,500 crore from SJVN.

• The order will be completed with 24 months and will aim to reduce 22,87,128 kg of carbon emission over 5,000+ acres of land in Rajasthan.

• The project, which will be developed under the CPSU scheme of MNRE is likely to generate 2,500 million units annually.

Shares of Tata Power rose over 2.5% in today's session.

India's stock benchmarks rose, aided by gains in aided by gains in metal and information technology stocks. The rise follows three-day losing streak for the two measures. On Wednesday, the Sensex and Nifty logged losses over 2% after RBI dialled in a surprise repo rate hike of 40bps which was followed by a 50bps rate hike by U.S. Federal Reserve.

The Sensex rose 0.92% to 56,181.29. The 30-stock gauge rose nearly 900 points to an intraday high of 56,566.80. The Nifty also advanced by similar magnitude to 16,822.75.

The broader indices underperformed their larger peers with S&P BSE MidCap rising 0.5% and S&P BSE SmallCap gaining 0.6%. Barring S&P BSE Realty, all the other 18 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal rising 2%.

The market breadth was skewed in the favour of bulls. About 2,039 stocks advanced, 1,216 declined and 120 remained unchanged.

Sugar mills in India have contracted to export 8.2 million tonnes to 8.3 million tonnes since October 1.

• About 6.8 million to 7 million tonnes estimated to have been physically shipped from country by end of April compared to 4.32 million tonnes a year ago.

• Total exports may hit 9 million tonnes in the year ending September 30.

Source: ISMA

Shares of Ashok Leyland Ltd. gained 4.5%, the most in seven weeks to Rs 126 apiece.

The stock was the best performer among peers. This comes as the Federation of Automobile Dealers Association posted growth across all segments of vehicles.

Tata Sons Chairman N Chandrasekaran announced Tata Group’s foray into e-cargo mobility with the launch of the electric version of Tata Ace.

Girish Wagh, executive director at Tata Motors Ltd., said the company has signed pacts with e-commerce companies for as many as 39,000 Ace electric vehicles.

Source: Tata Motors’ Twitter

Larsen & Toubro Ltd., in an exchange filing, said it has won a 'large' contract in the Mumbai-Ahmedabad High-Speed Rail Project, also referred to as the Bullet Train Project.

L&T Construction's railways division has secured a·contract from the National High-Speed Rail Corporation Ltd. to construct 116 kilometers of high-speed ballastless trackwork on the route.

L&T is already executing civil viaduct, station and special steel bridge packages for the project.

L&T defines large contracts as those valued between Rs 2,500 crore to 5,000 crore. Shares of the company gained as much as 1.95% to Rs 1,665.85 apiece intraday.

Equitas Small Finance Bank Ltd. has appointed Murali Vaidyanathan and Rohit Phadke as executive directors of the bank.

The appointment shall take effect from the date of approval of proposal by RBI and shall be for a period of three years or for such term as approved by RBI.

Vaidyanathan, is the head – liabilities, wealth management, digital banking and marketing, of the bank, while Phadke is head - assets.

Shares of the company jumped 4.8%, the most in just about a month on the announcement.

Hindustan Unilever Ltd. has raised prices of products ranging from Pond's talcum powder to Clinic Plus, CNBC-TV18 reported citing anonymous sources.

• HDFC Bank has 1 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

• Services PMI rises to 57.9 in April from 53.6 in March.

Source: IHS Markit

• Bank of Baroda external benchmark linked lending rate hiked to 6.9% per annum, with effect from May 5

• Lending rate hiked as it is benchmarked to repo rate

• Alert: Monetary policy committee hiked repo rate by 40 basis points to 4.4% in an out of turn policy meet on Wednesday

Source: Bank of Baroda website

• This is the most the Indian currency has appreciated in nearly three months since Feb. 11.

Source: Bloomberg

• ICICI Bank external benchmark linked lending rate hiked to 8.1% per annum, with effect from May 4

• Lending rate hiked as it is benchmarked to repo rate

• Alert: Monetary policy committee hiked repo rate by 40 basis points to 4.4% in an out of turn policy meet on Wednesday

Source: ICICI Bank website

Shares of Laxmi Organic Industries fell over 8.25%, the worst intraday fall in two months. The company reported its earnings for quarter-ended March, post market hours on Wednesday.

• Net profit rose 58% YoY to Rs 57.3 crore, but fell on a sequential basis. Ebitda margin contracted to 8.27% from 12.26% a year ago.

• Trading volume on the stock of the speciality chemical maker was six times the 30-day average.

Source: Bloomberg, Exchange Filing

Shares of ABB India rose nearly 9%, the most in over five months after reporting sequential growth in net profit, for the quarter-ended March, post market hours Wednesday.

ABB India Q4 FY22 (Standalone, QoQ)

• Revenue fell 6.3% at Rs 1,968.37 crore Vs Rs 2,101.5 crore

• EBIT fell 0.16% at Rs 162.21 crore Vs Rs 162.47 crore

• EBIT margin 8.24% Vs 7.73%

• Net profit up 98.23% at Rs 373.07 crore Vs Rs 188.2 crore

Trading volume is 34 times the 30-day average. Share price crossed above 50-day and 200-day simple moving average, indicating potential upward price momentum.

Of the 30 analysts tracking the company, 14 maintain 'buy', 10 suggest 'hold' and six recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 1%.

Nomura reiterated 'buy' with target price kept unchanged. Nomura says that order inflows are at the highest level in the five years.

Source: Exchange filing, Bloomberg, Brokerage note

• Varun Beverages has 4.1 million shares, aggregating to 1% of equity, change hands in two large trades.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

India's stock benchmarks opened higher, aided by gains in banking, information technology and metal stocks. The rise comes after RBI's surprise 40bps repo rate hike during market hours on Wednesday followed by 50bps rake hike by U.S. Federal Reserve.

The S&P BSE Sensex rose 0.72% (nearly 400 points) to 56,067.18. The NSE Nifty 50 advanced by similar magnitude to 16,813.55.

The broader indices almost mirrored their larger peers. All the 19 sectoral indices compiled by BSE Ltd. advanced with Metals, auto and information technology indices rising 1.5%.

The market breadth was skewed in the favour of bulls. About 1,951 stocks advanced, 654 declined and 96 remained unchanged.

All categories were in the green. Two-Wheelers vehicle gained 38% YoY while Three-Wheelers rose 96%. CV, PV and Tractors segments rose by 25% and 26%, respectively.

• April 2020 and April 2021 saw lockdown due to phase 1 and 2 of Covid. Hence YoY comparison with these two years is unlikely to give true representation for the state of auto retail: FADA

• Auto Retail has still not recovered from the jitters of Covid.

• RBI's move of increasing repo rate by 40bps has clearly taken everyone off guard. This move will 'apply brakes and dampen the sentiments' further.

Source: FADA Press Release

The rupee is likely to appreciate against the dollar after the RBI’s surprise rate hike on Wednesday.

• Rupee may find support from the relief rally following the 50bps rate hike by the U.S. Federal Reserve.

• USD/INR fell 0.1% to 76.4212 on Wednesday.

• 10-year yields rose 26bps to 7.38% on Wednesday.

• Global funds sold net Rs 3,290 crore of India stocks Wednesday: NSE

• They sold Rs 321 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 114 crore of corporate debt.

• State-run banks bought Rs 8,610 crore of sovereign bonds on May 4: CCIL data. Foreign banks sold Rs 4,660 crore of bonds.

Source: Bloomberg

India's central bank has asked banks to keep their branches designated for processing IPO applications open on Sunday, May 8 to facilitate bidding for the LIC 's initial share sale.

All ASBA-designated branches have been requested to be open on Sunday, according to a RBI notification.

Shares of India’s consumer staples companies may move as the government considers restrictions on wheat exports, as severe heat waves have damaged crops.

• Government is considering limiting wheat exports to safeguard domestic supplies, according to a person with knowledge of the matter, reports Bloomberg.

• In Focus: ITC, Adani Wilmar, Ruchi Soya, Hindustan Unilever, Britannia Industries, Mrs Bectors Food, Pratap Snacks, Hindustan Foods

Source: Bloomberg

• Adani Transmission

• Dabur

• Marico

• Indus Towers

• Voltas

• TVS Motor

• Sona BLW Precision Forgings

• PNB Gilts

• Procter & Gamble Health

• Punjab Alkalies & Chemicals

• Intellect Design Arena

• Happiest Minds Technologies

• Firstsource Solutions

• Exide Industries

• DCM Shriram

• Cholamandalam Investment and Finance

• CEAT

• Computer Age Management Services

• Blue Star

• Blue Dart

• Aptus Value Housing Finance

• Wipro: The company expanded its partnership with California based VMware to help eliminate the complexity and risk inherent in customers’ multi-cloud initiatives.

• SBI: The bank will consider raising $2 billion in single/multiple tranches via public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY23 on May 10.

• Magellanic Cloud: The company will acquire IVIS International and Provigil Surveillance for Rs 290.27 crore and Rs 35.97 crore, respectively.

• EIH: The company has appointed Arjun Singh Oberoi as Executive Chairman with effect from May 4 after P.R.S. Oberoi’s resignation.

• Matrimony.com: The company will consider buyback proposal on May 12.

• City Union Bank: The company appointed M. Narayanan as part time Chairman of the bank.

• Bank of India: The bank appointed B. Kumar as the Chief Risk Officer.

Adani Total Gas Q4 FY22 (Consolidated, YoY)

• Revenue up 14.35% at Rs 1,065.48 crore Vs Rs 931.81 crore

• EBITDA fell 35.45% at Rs 131.14 crore Vs Rs 203.32 crore

• EBITDA margin 12.31% Vs 21.82%

• Net profit fell 36.45% at Rs 81.09 crore Vs Rs 127.61 crore

• Recommended dividend of Rs 0.25 per share on face value of Rs 1 each

Tata Consumer Products Q4 FY22 (Consolidated, YoY)

• Revenue fell 1% at Rs 3,175.41 crore Vs Rs 3,208.28 crore

• EBITDA fell 3.73% at Rs 444.33 crore Vs Rs 461.56 crore

• EBITDA margin 14% Vs 14.4%

• Net profit fell 18% at Rs 444.33 crore Vs Rs 461.56 crore

• Recommended final dividend of Rs 6.05 per share

IIFL Wealth Management Q4 FY22 (Consolidated, YoY)

• Revenue up 6.5% at Rs 447.3 crore Vs Rs 420 crore

• EBIT fell 16.21% at Rs 178.59 crore Vs Rs 213.13 crore

• EBIT margin 39.93% Vs 50.75%

• Net profit up 60% at Rs 165.36 crore Vs Rs 103.3 crore

• Approved transfer of Alternates Asset Management Business consisting of alternative investment fund, venture capital fund and portfolio management schemes from IIFL Asset Management, a wholly owned subsidiary to IIFL Wealth Portfolio Managers, also a wholly owned subsidiary of the company.

ABB India Q4 FY22 (Standalone, QoQ)

• Revenue fell 6.3% at Rs 1,968.37 crore Vs Rs 2,101.5 crore

• EBIT fell 0.16% at Rs 162.21 crore Vs Rs 162.47 crore

• EBIT margin 8.24% Vs 7.73%

• Net profit up 98.23% at Rs 373.07 crore Vs Rs 188.2 crore

Havells India Q4 FY22 (Consolidated, YoY)

• Revenue up 32.5% at Rs 4,426.26 crore Vs Rs 3,339.21 crore

• EBITDA up 2.3% at Rs 519.93 crore Vs Rs 508.18 crore

• EBITDA margin 11.75% Vs 15.22%

• Net profit up 16% at Rs 352.48 crore Vs Rs 303.83 crore

• Recommended final dividend of Rs 4.5 per share of face value of Rs 1 each.

EIH Q4 FY22 (Consolidated, QoQ)

• Revenue fell 16.5% at Rs 300.95 crore Vs Rs 360.12 crore

• EBIT fell 123% at negative Rs 12.82 crore Vs Rs 55 crore

• EBIT margin -4.26% Vs 15.27%

• Net profit fell 61% at Rs 14.83 crore Vs Rs 38.03 crore

Deepak Nitrite Q4FY2021-22(Consolidated, YoY)

• Revenue up 28% at Rs 1,872 crore vs 1,463 crore

• OPM at 21.9% vs 31%

• PAT down 8% at Rs 267 crore vs Rs 290 crore

Oracle Financial Services Software Q4 FY22 (Consolidated, QoQ)

• Revenue up 0.82% at Rs 1,276.7 crore Vs Rs 1,266.3 crore

• EBIT fell 5.15% at Rs 532.15 crore Vs Rs 561.05 crore

• EBIT margin 41.68% Vs 44.31%

• Net profit 10.67% at Rs 481.7 crore Vs Rs 435.3 crore

• Approved interim dividend of Rs 190 per share of face value of Rs 5 each

Laxmi Organic Industries Q4 FY22 (Consolidated, YoY)

• Revenue up 69.3% at Rs 879.8 crore Vs Rs 519.5 crore

• EBITDA up 14.34% at Rs 72.80 crore Vs Rs 63.67 crore

• EBITDA margin 8.27% Vs 12.26%

• Net profit up 57.85% at Rs 57.3 crore Vs Rs 36.3 crore

• Recommended final dividend of Rs 0.7 per share of face value of Rs 2 each

• Appointed Anushree Bagrodia as Chief Financial Officer

• Approved proposal to raise further funds by way of equity and/or debt.