Sensex, Nifty Decline For Second Week Dragged By I.T., Banking, Realty Stocks
Catch all live updates on share prices, index moves, corporate announcements and more from the Sensex and Nifty, today.
Closing Bell
India's stock benchmarks declined for the second week in a row, dragged by losses in information technology, banking and realty stocks, amid hawkish comments from U.S. Federal Reserve Chair Jerome Powell, reactions to March-quarter earnings. Inflation concerns, geopolitical tensions leading to supply snags and volatility in crude oil prices and IMF's lowering of growth estimates also added weighed on sentiment.
Sensex and Nifty snapped a two-day winning streak on Friday. For the whole week, the benchmarks fell for three sessions and rose on two days.
The Sensex shed over 1,100 points in the week. This is the worst week for both measures in six.
On Friday, Sensex fell 1.23% to 57,197.15. The Nifty also declined by similar magnitude to 17,171.95. Hindalco Industries Ltd. had the largest drop, falling 4.8%.Today, 42 of 50 shares fell, while 8 rose
The broader markets outperformed their larger peers, with the S&P BSE MidCap losing 0.7% while S&P BSE SmallCap shedding 0.4%. All 19 sectoral indices compiled by BSE Ltd. declined with banking and metal indices falling over 2%.
The market breadth was skewed in the favour of bears. About 1,457 stocks advanced, 1,951 declined and 123 remained unchanged.
Nykaa Agrees To Buy Stakes In Earth Rhythm, Nudge Wellness
Nykaa operator FSN E-Commerce Ventures has bought 18.5% in Earth Rhythm for Rs 41.65 crore to further D2C brand acquisitions.
It also picked up 60% in Nudge Wellness for Rs 3.6 crore, which marks its entry into the owned brand of dietary supplements and other nutricosmetics products.
Nykaa to also buy activewear athleisure brand ‘KICA’ for Rs 4.5 crore, to help strengthen its active-wear play.
Source: Exchange filing
Borosil Renewables Climbs Most In Atleast A Year To Record
Shares of Borosil Renewables rose over 14%, the most intraday gain in at least over a year to a record Rs 784.95.
The rise comes ahead of company's board meeting on Monday to consider fund raising through issuance of equity shares.
Trading volume on the stock is more than 13 times the 30-day average volume at this time of the day. The relative strength index of the stock is 76, suggesting it may be overbought.
Source: Exchange filing, Bloomberg
Broader Indices Outperform Larger Peers
Hindustan Zinc Q4 Net Income Misses Estimate; Shares Decline
Hindustan Zinc Q4FY22 ( Consolidated, QoQ)
Revenues up 10.1% at Rs 8797 crore vs Rs 7990 crore
Net profit up 8.4% at Rs 2928 crore vs Rs 2701 crore
EBITDA up 13.5% at Rs 4962 crore vs Rs 4370 crore
Margins at 56.4% vs 54.7%
ITC’s Sanjiv Puri Speaks At India Economic Conclave
Inflation is a concern, but only in the short term.
Will do what’s right for sustained value creation.
Nothing is cast in stone. (on demerger plans)
See opportunity to scale up agri, paper, hotels businesses
Source: Bloomberg
Crisil Rises After Approving Interim Dividend For Rs 7 Per Equity Share
Shares of Crisil rose nearly 6% after the company reported 44% YoY growth in net profit in the quarter ended March, post market hours Thursday.
Trading volume is nearly seven times the 30-day average volume at this time of the day.
The company's revenue and net profit fell on a sequential basis. The company approved payment of interim dividend of Rs 7 per equity share of face value of Re 1 each. The dividend will be paid on May 19,2022.
Source: Exchange Filing, Bloomberg
Lupin, Cipla, Dr. Reddy's Decline; Nifty Pharma Down Nearly 2%
ICICI Lombard Falls The Most In Three Months
Shares of ICICI Lombard General Insurance fell nearly 6%, the most in three months after the company reported net income for Q4 that missed average analyst estimate.
Analysts noted that the delivery and near-term guidance were relatively sombre. Kotak Securities has upgraded the stock to 'reduce' from 'sell' with the target price raised to Rs 1,310 from Rs 1,275.
Trading volume on the stock is nearly five times the 30-day average at this time of the day.
Of the 26 analysts tracking the company, 17 maintain 'buy', three suggest 'hold' and six recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 18.8%.
Source: Exchange filing, Brokerage note, Bloomberg
NSE Launches India's First International Sustainability Platform At GIFT IFSC
NSE IFSC Ltd., a 100% subsidiary of National Stock Exchange launched an exclusive International Sustainability Platform at GIFT IFSC.
The platform will be operationalised in the second half of 2022 subject to regulatory approvals.
The platform will facilitate listing and trading a variety of sustainability products including green bonds, voluntary carbon, sustainable bonds, green REITs and green equity.
Issuers listing on the platform will need to meet a minimum set of ESG standards.
Source: NSE Press Release
European Markets Open Lower
Rupee Falls; India Bond Yield Surges 2bps
Rupee Falls Against Dollar
Indian Currency Depreciated 0.36% To 76.43 During The Session
10-Yield Rises 2bps To 7.16%
Yield On Indian Bond Surged 4bps During The Session
Source: Bloomberg
Mid-Day Market Update: Sensex, Nifty Trim Losses; Adani Ports Surges
India's stock benchmarks declined, but off day's low, dragged by losses in banking, metal and pharma stocks.
The S&P BSE Sensex fell 0.6% to 57,558.81. The 30-stock gauge shed over 660 points to an intraday low of 57,244.83. The NSE Nifty 50 also declined by similar magnitude to 17,275.49.
The broader indices outperformed their larger peers, with the S&P BSE MidCap shedding 0.2% and S&P BSE SmallCap rising over 0.1%. Twelve of the 19 sectors compiled by BSE Ltd. declined with S&P BSE Bankex falling 1.5%.
The market breadth was skewed in the favour of bears. About 1,588 stocks advanced, 1,714 declined and 140 remained unchanged.
Analyst Actions: ICICI Lombard, Cummins India
ICICI Lombard cut to 'reduce' from 'accumulate' at Elara Securities India; price target set at Rs 1,335, an impied upside of 0.4%.
Cummins India cut to 'reduce' from 'buy' at Edelweiss Capital; price target set at Rs 934, an implied downside of 13%.
Source: Bloomberg
India To Finalise Pawan Hans Sale On Saturday, JSW Among The Bidders, Reports Bloomberg
BLOOMBERG EXCLUSIVE
India will finalise the sale of state-owned helicopter service provider Pawan Hans this week.
Government has received bids from companies including JSW Steel and Jindal Steel & Power.
Group of officials headed by cabinet secretary Rajiv Gauba will meet on Saturday to pick the winning bid.
Final announcement will be made after the approval by a ministerial panel which is largely procedural.
Source: People with knowledge of the matter.
Finance Ministry spokesperson wasn't immediately available for comment.
Pawan Hans did not respond to phone calls made at its office number
A spokesperson for JSW Steel declined to comment.
JSPL did not reply to an e-mail request.
Source: Bloomberg
Zen Technologies Surges On Rs 55 Crore Order Win
Shares of Zen Technologies Ltd. rose nearly 4%, the most in over two weeks.
The surge comes as the company announced that it signed an annual maintenance contract worth Rs 55 crore for a period of five years.
The contract pertains to simulators. The order book stands at Rs 477.04 crore, including both domestic and exports, after the latest order.
Source: Bloomberg, Exchange Filing
Clean Science Shares Up Most In 6 Weeks
Shares of Clean Science & Technology Ltd. gained as much as 5.5%, the most in six weeks. The stock was the best performer among peers.
Yesterday, the company had informed the exchanges that CRISIL had reaffirmed its positive ratings on its short and long-term debt.
India Looking To Cut LIC IPO Size By 40%, Reports Bloomberg
BLOOMBERG EXCLUSIVE
India mulling cutting LIC IPO size to Rs 30,000 crore from the earlier aim of Rs 50,000-55,000 crore.
Size trimmed due to dent in valuations on Ukraine war.
Listing could be done in the next two weeks.
LIC will be valued at around Rs 6 lakh crore in the IPO.
Source: People with knowledge of the matter
SII's CEO Adar Poonawalla: Global Pandemic Treaty Is On The Cards
Serum is drafting global pandemic treaty, want other nations to sign up.
India is very transparent in reporting Covid numbers.
Expecting the government to lower the booster dose gap from 9 to 6 months.
Fearing the current vaccine stock will get expired, have to stop production.
Have got 20 crore doses of stock for now.
Source: Bloomberg
Shree Renuka Sugars Climbs To 10-Year High
Shares of Shree Renuka Sugars rose nearly 17%, most in over a week, to a 10-year high.
Trading volume on the stock is more than quadruple the 30-day average at this time of the day.
The relative strength index on the stock is 78, suggesting it may be overbought.
Source: Bloomberg
Adani Ports Rises Most In Over Two Weeks On Plans To Acquire Marine Services Provider 'Ocean Sparkle'
Shares of Adani Ports & Special Economic Zone rose over 3.9%, the most in over two weeks.
The company announced plans to acquire marine services provider Ocean Sparkle for Rs 1,530 crore.
The transaction is expected to be completed within one month.
Trading volume on the stock is nearly quadruple the 30-day average at this time of the day.
Of the 24 analysts tracking the company, 22 maintain 'buy', one suggest 'hold' and one recommends 'sell'. The return potential on the stock is -2.5%.
Source: Exchange filing
Rallis India Falls Most In Six Months
Shares of Rallis India fell over 9.6% to Rs 254.4 apiece after the company reported net loss and fall in EBITDA in the quarter ended March post market hours Thursday.
This is the most the stock has fallen in over six months.
Dolat Capital expects margin pressure to continue fo the company due to rise in input prices. It also believes that export business will face some headwinds due to supply chain disruptions.
Trading volume is over six times the 30-day average at this time of the day. Share price slipped below 200-day simple moving average, indicating potential downward price momentum.
Of the 21 analysts tracking the company, eight maintain 'buy', nine suggest 'hold' and four recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 18.1%.
Source: Exchange filing, Bloomberg, Dolat Capital note.
India Yields Mostly Higher
Most yields along the India sovereign yield curve rose, with 4-year bonds moving the most in Friday morning trading.
The 2-year yield remained unchanged at 5.448%
The 10-year yield rose 1.7bps to 7.161%
The 14-year yield rose 1.2bps to 7.334%
The 2-year-10-year yield spread was 171.3bps, vs previous close 169.6bps
The NSE Nifty 50 Index fell 0.8%
Source: Bloomberg
Banking, Metal Stocks Decline
NSEL Case: Supreme Court Allows Appeal By Maharashtra Government
NSEL Case: Supreme Court allows appeal by Maharashtra government on attachment of 63 Moons Technologies’ assets.
The Bombay High Court had ruled that the National Spot Exchange Ltd. was not a financial establishment and attachment under MPID Act was not valid.
The high court set aside seven notifications of attachment issued by the Maharashtra government.
The attachment was made as part of the Mumbai police's probe into the alleged Rs 5,600-crore NSEL scam.
Large Trade: NHPC, Motherson Sumi
NHPC has 1.26 million shares change hands in a large trade.
Motherson Sumi Wiring has 1.97 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 1.87 million shares change hands in a large trade.
Adani Power has another 3.05 million shares change hands in a large trade.
Details of buyers, sellers are not known immediately.
Source: Bloomberg
Indian Rupee Falls; India Bond Yield Rises
Rupee Falls Against Dollar
Indian Currency Depreciated 0.23% To 76.34 During The Session
10-Year Yield Rises
Yield On The Indian Bond Surged 4bps To 7.18% During The Session
Cyient Rises The Most In Over Seven Weeks
Shares of Cyient rose nearly 9% as analysts reiterated 'buy' citing attractive valuations and risk-reward.
The company reported revenue above average analyst estimate in quarter-ended March, post market hours Thursday.
This is the most the stock has gained in over seven weeks.
The stock is the second best performer on NSE Nifty 500 and S&P BSE 500 indexes.
Trading volume on the stock is 26 times the 30-day average at this time of the day. ICICI Securities upgraded the stock to 'buy' and raised target to Rs 1,037.
Of the 24 analysts tracking the company, 20 maintain 'buy', three suggest 'hold' and one recommends 'sell. The return potential on the stock is 32.6%.
Source: Bloomberg, Exchange filing, Brokerage notes.
HCL Technologies Rises The Most In Seven Weeks
Shares of HCL Technologies rose the most in seven weeks and was the top gainer in Nifty 50 index.
Analysts said that the growth in services segment is likely to offset weakness in products and platforms business.
HCL reported revenue in-line with analyst estimate in Q4, post market hours Thursday.
Trading volume on the stock is more than nine times the 30-day average volume at this time of the day.
Of the 50 analysts tracking the company, 38 maintain 'buy', 11 suggest 'hold' and one recommends 'sell'. The return potential of the stock is 18.9%.
JPMorgan, Prabhudas Lilladher and IDBI Capital have downgraded the stock after the earnings.
Source: Bloomberg, Brokerage note, Exchange filing
Opening Bell: Sensex Opens 1% Lower; 47 Of Nifty 50 Stocks Decline
India's stock benchmarks opened lower, dragged by losses in information technology, auto, banking stocks, after Federal Reserve Chair Jerome Powell hinted a two or more half percentage-point interest-rate increases in the upcoming policy meeting. Powell said a 50 bps rake hike will be on the table for the May policy meeting at an IMF-hosted panel on Thursday.
The S&P BSE Sensex fell over 600 points (nearly 1%) to 57,302.82. The Nifty declined by similar magnitude to hover around 17,200.
The broader indices outperformed their larger peers with the S&P BSE MidCap falling 0.24% and S&P BSE SmallCap remaining little changed. Fifteen of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Auto shedding 1.5%.
The market breadth is skewed in the favour of bulls. About 1,357 stocks advanced, 1,171 declined and 101 remained unchanged.
L&T Technology Services - Strong Demand, Improving Deal Flow To Drive FY23 Growth: Motilal Oswal
Motilal Oswal
Maintains 'buy' and lowers target price to Rs 5,280 per share from Rs 5,800, an implied upside of 24%.
The company reported 3.6% QoQ constant currency growth in Q4FY2021-22, 90bps below estimate due to softer growth in Industrial Products, Medical Devices and Telecom and Hitech segments.
Rise in attrition to 20.4% indicated continued supply pressures.
L&T Technology Services bagged its second $100 million+ deal from Jaunt Air Mobility in the aerospace vertical, which augurs well for the growth.
Remains confident of the prospects of revenue growth of 17.5% in FY23, but expects L&T Technologies to see a flattish margin performance due to continue supply-side pressures.
Continues to view the company as a key beneficiary of the growing penetration of ER&D services and the best Tier II IT services play within its coverage universe.
Source: Motilal Oswal Note
Bond Traders Await Auction, RBI Minutes
Rupee bond traders will wait to gauge demand for Rs 32,000 crore ($4.2b) in bond sales as well as minutes of the April RBI meeting, where the monetary authority signaled a shift in policy focus. The rupee is set to open lower in line with emerging peers on hawkish comments by Fed chair Powell.
RBI to hold Rs 7 lakh crore 14-day reverse repo auction Friday.
USD/INR down 0.1% to 76.1588 on Thursday.
10-year yields rose 4bps to 7.14% on Thursday
Global funds sold net Rs 714 crore of India stocks Thursday: NSE
They sold Rs 165 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 52 crore of corporate debt
State-run banks sold Rs 716 crore of sovereign bonds on April 21: CCIL data. Foreign banks bought Rs 2,680 crore of bonds.
Source: Bloomberg
Adani Ports To Acquire Marine Services Provider Ocean Sparkle
Adani Ports and SEZ will acquire third party marine services provider Ocean Sparkle for Rs 1,530 crore.
The investment is in line with the company's strategy to “increase its footprint in the marine service market.”
The transaction is expected to be completed within one month.
Source: Exchange filing
Good Growth In Services And Outlook To Aid HCL Tech's Valuations, Says Motilal Oswal
Motilal Oswal
Maintains 'buy' with a target price at Rs 1,310 per share.
HCL Technologies delivered a revenue growth of 1.1% QoQ in constant currency terms in Q4FY2021-22 (inline), aided by strong growth in services.
Products and Platforms vertical dragged due to seasonality.
Good new deal TCV, organic growth of over 5% QoQ in I.T. services are likely to aid growth outperformance compared to largecap peers in Q1FY2022-23.
Expects services segment to gain further from strong momentum in cloud migration and R&D outsourcing. Expects the company to struggle due to elevated supply-side issues and a higher investment requirement.
Lowers its FY23 and FY24 EPS estimate by 7% each due to margin hit and lower growth guidance
Source: Motilal Oswal note
Analyst Actions: HCL Technologies, L&T Technology, ICICI Lombard
HCL Technologies cut to 'neutral' from 'overweight' at JPMorgan; price target set at Rs 1,150, an implied upside of 4.6%.
HCL Technologies cut to 'accumulate' from 'buy' at Prabhudas Lilladher; price target set at Rs 1,169, an implied upside of 6.4%.
L&T Technology Services cut to 'accumulate' from 'buy' at Prabhudas Lilladher; price target set at Rs 4,549, an implied upside of 7.2%.
ICICI Lombard raised to 'reduce' from 'sell' at Kotak Securities; price target set at Rs 1,310, an implied downside of 6.5%.
Source: Bloomberg
Trade Setup For Friday
Earnings Today
Hindustan Zinc
MMTC
Tata Metaliks
Tejas Networks
Stocks To Watch
Jindal Steel and Power: The company said that its offices in in Delhi and Gurugram were visited by officials from Enforcement Directorate for seeking business related information.
JSW Energy: The company’s subsidiary JSW Neo Energy has signed a memorandum of understanding with Government of Telangana for setting up 1,500 MW capacity of Hydro Pumped Storage Project.
RailTel: The company has received a work order from National Informatics Centre Services Incorporated in relation to assignment of work of immigration visa and foreigner registration and tracking at a total cost of Rs. 29.75 crore.
TVS Motor: The company will invest an addition £100 million in Norton Motorcycle, which was acquired in 2020.
L&T Technology Services: The company was awarded over $100 million electric air mobility deal from Jaunt Air Mobility. As part of the contract, LTTS will open an Engineering and R&D Centre in Québec Province for the next-gen electric aircraft manufacturer to provide engineering services for the Jaunt Journey eVTOL air taxi.
3I Infotech: The company signed a premium high margin Digital Business Process Services transformational deal worth Rs 12 crore with an insurance company.
NTPC: Collaborates with Delhi Jal Board to convert waste into energy.
Earnings Post Market Hour
HCL Technologies Q4 FY22 (Consolidated, QoQ)
Revenue up 1.19% at Rs 22,597 crore Vs Rs 22,331 crore (Bloomberg Estimate: Rs 22,669.9 crore)
EBIT fell Rs 4.42% at Rs 4,069 crore Vs Rs 4,257 crore (Bloomberg Estimate: Rs 4,128.7 crore)
EBIT margin 18% Vs 19.1% (Bloomberg Estimate: 18.21%)
Net profit up 4.39% at Rs 3,593 crore Vs Rs 3,442 crore (Bloomberg Estimate: 3,354.3 crore)
Approved dividend of Rs 18 per share
ICICI Lombard Q4 FY22 (Consolidated, YoY)
Revenue up 33% at Rs 4,636 crore Vs Rs 3,489 crore
Net premiums up 27% at Rs 3,318 crore Vs Rs 2,616 crore
EBITDA up 29% at Rs 1,010 crore Vs Rs 782 crore
EBITDA margin at 21.8% Vs 22.4%
Solvency ratio at 2.46 Vs 2.9
Approved dividend of Rs 5 per share of face value of Rs 10
Tata Communications Q4 FY22 (Consolidated, QoQ)
Revenue up 4.8% at Rs 1,725.28 crore Vs Rs 1,657.7 crore
EBITDA fell 12.3% at Rs 443.58 crore Vs Rs 505.74 crore
EBITDA margin 25.71% Vs 30.51%
Net profit up 58% at Rs 356.5 crore Vs Rs 225.51 crore
Approved final dividend of Rs 20.7 per share.
L&T Technology Services Q4 FY22 (Consolidated, QoQ)
Revenue up 4.07% at Rs 1,756.1 crore Vs Rs 1,687.5 crore
EBIT up 4.13% at Rs 327.4 crore Vs Rs 314.4 crore
EBIT Margin 18.64% Vs 18.63%
Net profit up 5.31% at Rs 262 crore Vs Rs 248.8 crore
Approved final dividend of Rs 15 per share of face value of Rs 2
Approved scheme of amalgamation of Esencia Technologies, Graphene Semiconductor Services and Seastar Labs with the company.
Cyient Q4 FY22 (Consolidated, QoQ)
Revenue fell 0.19% at Rs 1,181.2 crore Vs Rs 1,183.4 crore
EBIT Margin up 3.86% at Rs 169.5 crore Vs Rs 163.2 crore
EBIT Margin 14.35% Vs 13.79%
Net profit up 17% at Rs 154.2 crore Vs Rs 131.8 crore
Rallis India Q4 FY22 (Consolidated, YoY)
Revenue up 7.7% at Rs 507.54 crore Vs Rs 471.26 crore
EBITDA fell 116.03% at a negative Rs 2.84 crore Vs Rs 17.72 crore
EBIT Margin -0.56% Vs 3.76%
Net loss at Rs 14.19 crore Vs Net profit of Rs 8.12 crore
Approved dividend of Rs 3 per share.
Crisil Q4 FY22 (Consolidated, QoQ)
Revenue fell 15.7% at Rs 595 crore Vs Rs 706 crore
EBIT fell 10.4% at Rs 151.04 crore Vs Rs 167.89 crore
EBIT margin 25.39% Vs 23.78
Net profit fell 28% at Rs 121.62 crore Vs Rs 168.63 crore
SGX Nifty Falls; HCL Tech, L&T Tech, Cyient, ICICI Lombard, Jindal Steel, RailTel In Focus
Stocks and bonds fell on Friday after Federal Reserve Chair Jerome Powell hinted a two or more half percentage-point interest-rate increases in the upcoming policy meeting. Powell said a 50 bps rake hike will be on the table for the May meet at an IMF-hosted panel on Thursday.
A possible three consecutive half-point Fed interest-rate hikes would represent the sharpest tightening in 40 years.
Shares declined in Japan, Australia and South Korea, while U.S. futures fell, after Wall Street logged losses, dragged by energy and technology stocks. The Singapore-traded SGX Nifty, an early barometer of India's benchmark Nifty 50, fell over 1% to 17,220 points as of 6:40 a.m.
The dollar held a rally and Nymex crude remained above $103 a barrel. Bitcoin hovered around $40,500.