Sensex, Nifty Log Worst Day In Six Weeks Dragged By Infosys, HDFC Bank

India's stock benchmarks declined for fourth consecutive session and logged worst day in six weeks. Information technology and banking stocks declined, as Infosys and HDFC Bank fell after Q4 numbers.

The Sensex shed over 1,170 points (equivalent of 2%) to 57,166.74. The 30-stock gauge shed nearly 1,500 points to an intraday low of 56,842.39.

The Nifty declined 1.7% to 17,173.85. The move was the biggest since falling 2.4% on March 7. Infosys Ltd. had the largest drop, falling 7.3%. Today, 26 of 50 shares fell, while 24 rose

The broader indices outperformed their larger peers with S&P BSE MidCap and S&P BSE SmallCap falling 1%. Fourteen of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Information Technoogy and Teck losing over 4.6%.

The market breadth was skewed in the favour of bears. About 1,474 stocks advanced, 2,051 declined and 145 remained unchanged.

Shares of Sarda Energy & Minerals Ltd. rose over 8%, the most in four weeks.

• The company will consider a proposal for buyback of equity shares of face value of Rs 10 each of the company and declaration of interim dividend for FY2021-22 on April 23.

• Trading volume on the stock is over 1.5 times the 30-day average volume at this time of the day. The relative strength index on the stock is at 74, suggesting it may be overbought.

Source: Exchange filing, Bloomberg

• TVS Electronics' shares slip for sixth straight day, on track for the longest losing streak in 13 months since the period ended March 15, 2021.

• V-Mart Retail shares decline for 10th day, on track for the longest losing streak in 28 months since December 26, 2019.

Source: Bloomberg

• National Stock Exchange has sought clarification from Mindtree with respect to the news report captioned "L&T Infotech, Mindtree To Merge To Create $22 Billion Entity".

• NSE is awaiting response from the company.

Source: NSE

• Adani Power has 2.25 million shares change hands in two large trades.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

• TVS Motor has 1.4 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

Shares of sugar companies rose after Indian Sugar Mills Association said that the firms have contracted to export an all-time high of 8 million tonnes this season.

• Out of total deals, India shipped about 5.72 million tonnes between October and March, compared with 3.19 million tonnes YoY

• Indonesia and Bangladesh accounted for 44% of the total shipments, compared with 48% collectively by Indonesia and Afghanistan a year ago.

Source: ISMA, Bloomberg

Lupin has received tentative nod from U.S. FDA for its drug to treat Hepatitis-B in adult patients.

• Lupin gets the nod to market the ANDA Tenofovir Alafenamide Tablets, 25 mg, a generic equivalent of Vemlidy tablets, 25 mg, of Gilead Sciences.

• The product will be manufactured at Lupin's Nagpur facility in India

• Tenofovir Alafenamide tablets had estimated annual sales of $484.2 million the U.S., as of December 2021, according to IQVIA.

Source: Exchange Filing

• Indian Oil has 2.2 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

India's stock benchmarks fell over 2%, dragged by information technology and banking stocks. Shares of Infosys tumbled the most in over two years and HDFC Bank fell post their Q4 earnings.

The S&P BSE Sensex shed 1,400 points to 56,940.67. The NSE Nifty 50 declined over 2% to 17,104.20.

The broader indices outperformed their larger peers, with S&P BSE MidCap shedding 1.6% and S&P BSE SmallCap falling 1.3%. Barring S&P BSE FMCG and Metal, all the other 17 sectoral indices compiled by BSE Ltd. declined, with S&P BSE Information Technology losing 5%.

The market breadth was skewed in the favour of bears. About 1,235 stocks advanced, 2,190 declined and 137 remained unchanged.

Shares of Indiabulls Real Estate fell over 6%, the most in six weeks.

• The decline comes after the company announced that it raised Rs 865 crore at Rs 101.10 per share through QIP.

• The company had earlier approved the issuance and allotment of nearly 8.60 crore new shares through the placement.

• Trading of these shares commenced today. Trading volume was 1.5 times the 30-day average volume at this time of the day.

Source: Exchange Filing, Bloomberg

Shares of Tata Steel rose over 2.9%, the most in six sessions after the company announced that it will consider a share split on May 3. Tata Steel will also announce its quarterly earnings on May 3.

• Of the 34 analysts tracking the company, 30 maintain 'buy', three suggest 'hold' and one recommends 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 21%.

Source: Exchange filing

• TVS Motor has 3.8 million shares change hands in two large trades.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

Shares of Ratnamani Metals & Tubes reversed losses and rose over 1%.

• The company bagged new domestic orders worth Rs 308 crore and export orders worth Rs 30 crore, aggregating to Rs 338 crore during the last fortnight.

• The orders are to be executed within the financial year 2022-23..

Source: Exchange filing, Bloomberg

Most maturities along the India sovereign yield curve were little changed, while 10-year yields rose in Monday morning trading.

• The 4-year yield rose 2.2bps to 6.518%

• The 10-year yield rose 2.8bps to 7.243%

• The 30-year yield rose 1bp to 7.531%

• The 4-year-10-year yield spread was 72.5bps, vs previous close 71.8bps

• The NSE Nifty 50 Index fell 1.9%

Source: Bloomberg

Indian bonds decline as trading resumes after holidays, tracking higher oil and U.S. yields. The rupee is also lower along with most other emerging Asian currencies

• 10-year yields rose 3bps to 7.24% after climbing ~10bps last week

• USD/INR up 0.2% at 76.3575.

• INR could weaken further tracking broad USD strength as lower oil and equity flow tailwinds have eased, writes Ashish Agrawal, a strategist at Barclays

• However expect USD/INR upside limited to 76.50-77 levels on support from expectations in a foreign pickup in equities with launch of LIC IPO in near future.

Source: Bloomberg

Bank of Baroda has 1.33 million shares change hands in a large trade. Details of buyers, sellers are not known immediately.

• Shares of Bank of Baroda fell 3.6%, the worst fall in six weeks.

• The stock is the top gainer on the Nifty Bank index in 2022, rising 40.88% compared to 3.22% increase for the Nifty Bank index.

Source: Bloomberg

Shares of Tata Power fell over 7.7%, the steepest decline in over six months.

• About 1.21 million shares of Tata Power change hands in a large trade. Details of buyers, sellers are not known immediately.

• Blackrock-led consortium signed binding agreement with the company's renewable energy subsidiary. The group will invest Rs 4,000 crore via equity or compulsorily convertible instrument.

• Morgan Stanley downgraded the stock to 'underweight' from 'equal-weight', citing lack of growth catalysts following the green business monetisation and approval for Mundra merger.

• Morgan Stanley also preferred NTPC and ReNew to Tata Power.

• NTPC shares rose 3.7%, the most in six days to a 52-week high of Rs 159.65 apiece.

Source: Morgan Stanley note, Exchange filing, Bloomberg

Maruti Suzuki has announced a 1.3% weighted average increase in price across models.

• This is the ex-showroom price change in Delhi.

• The hike is due to an “increase in various input costs”.

• The company had announced an impending price hike on April 6.

Source: Exchange filing

India's stock benchmarks opened lower, logging the most intraday loss in over a month, dragged by information technology and banking stocks. The decline comes amid surge in oil prices, due to prospects of embargo on Russian oil and gas by European Union.

The S&P BSE Sensex shed over 1,000 points (equivalent to 1.7%) to 57,337.78. The 30-stock gauge fell to an intraday low of 57,152.75. The NSE Nifty 50 also declined by similar magnitude to 17,197.75.

The broader indices outperformed their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap losing nearly 1%. Barring S&P BSE Auto, all the other 18 sectoral indices compiled by BSE Ltd. declined with S&P BSE Information Technology and Teck falling over 3%.

The market breadth was skewed in the favour of bears. About 1,046 stocks advanced, 1,822 declined and 134 remained unchanged.

• Tata Power has 1.21 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

• Jindal Steel & Power reported record sales of 0.79 million tonnes in March and 7.63 million tonnes for FY2021-22.

• Steel production hit a record 8.01 million tonnes in the financial year.

• Production in the March quarter rose to a record 2.11 million tonnes, 2% YoY.

• Exports accounted for 33% of sales in March, in line with the FY22 share.

Source: Exchange filing

Shares of Hindustan Zinc may move after the metal extended its rally towards 16-year high as plunging inventories hint at supply squeeze.

Source: Bloomberg

• Trading of these shares will commence today, on NSE and BSE.

• The fund-raising committee of the company's board had approved the issuance and allotment of nearly 8.60 crore new shares through the placement.

• The fund raise led to overall 15.8% dilution for current shareholders.

Source: Exchange Filing

• Welspun corp will execute the order from its U.S. facility in Arkansas.

• The company expects to get similar orders in spiral ad HFIW pipes due to revival in oil and gas business outlook in North America, in the near future.

Source: Exchange Filing.

Tata Power: Blackrock-led group signs binding agreement with Tata Power Renewable Energy. The group will invest Rs 4,000 crore by way of equity or compulsorily convertible instruments.

• The BlackRock Real Assets-led consortium, including Mubadala Investment Company will hold 10.53% stake in Tata Power Renewables, translating to a base equity valuation of Rs 34,000 crore.

• Tata Power Renewable Energy will house all renewable energy businesses of Tata Power including those in utility scale solar, wind and hybrid generation assets, solar cell and module manufacturing, engineering, producured and construction contracting, rooftop solar infrastructure, solar pumps and EV charging infrastructure. Tata Power Renewables has nearly 4.9 Giga Watt of renewable energy assets .

• The company aims to achieve a portfolio of over 20 Giga Watt of renewables assets and market leadership in rooftop and EV charging space, over the next five years.

Morgan Stanley

• Downgrades to 'underweight' from 'equal-weight' with the target price raised to Rs 244 from Rs 228.

• Stock lacks catalysts after green business monetisation and the approval for Mundra merger.

• Fresh infusion of Rs 4,000 crore implies that equity funding for 3.5 Giga Watt new Renewable Energy capacity is in place.

• Current situation - dependence on coal to meeting rising power demand, is a goldilocks situation for the company.

• Raises earnings by 2%, 142% and 22% for FY22E, FY23E, FY24E respectively, due to impact of the imported coal price.

• Prefers owning NTPC and ReNew, in the context of catalysts and valuations.

Indian bonds may open lower after holidays, tracking higher oil and U.S. yields. India’s bonds and currency markets will start trading at 9 a.m. local time from Monday as the central bank reverted to pre-pandemic market opening timing. 

• 10-year yields rose 3 bps to 7.22% on Wednesday

• USD/INR up 0.1% at 76.1800 on Wednesday

• Global funds sell net Rs 2,060 crore of India stocks Wednesday: NSE

• They sold Rs 721 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 100 crore of corporate debt

• State-run banks bought Rs 1,500 crore of sovereign bonds on April 13: CCIL data. Foreign banks sold Rs 578 crore of bonds.

Source: Bloomberg

• Mindtree

• Star Housing Finance

• Future Retail: Company says that Bank of India has initiated insolvency proceedings against the company, under IBC at the NCLT.

• Tata Steel: To consider share split on May 3. Firm to also announce its quarterly earnings on May 3.

• Tata Power: Blackrock-led group signs binding agreement with Tata Power's renewable energy. The group will invest Rs 4,000 crore by way of equity or compulsorily convertible instruments.

• JSW Steel: The company has redeemed senior unsecured fixed rate notes aggregating to $500 million.

• RITES: Power Mech Projects JV has emerged as lowest bidder for construction of Depot cum Workshop at Challaghatta Depot of Bangalore Metro Rail Project. The order value is Rs. 499.41 crore.

• Bharat Forge: The company plans to sell three-year bonds of up to Rs 200 crore, Bloomberg reported.

• Ambuja Cement: The company’s shareholder Holcim is considering a potential sale of its stake. Holcim controls 63.1% of the company.

• Den Networks: Q4 net income at Rs 49.97 crore vs Rs 36.98 crore YoY

• ICICI Prudential Life: Q4 net income at Rs 185 crore vs Rs 63.78 crore YoY

• S Kumars: CBI files cases against the company over alleged fraud

• TVS Motor: Buys 1.81% stake in Rapido.

Infosys Q4 FY22 (Consolidated, QoQ)

• Revenue up 1.28% at Rs 32,276 crore Vs Rs 31,867 (Bloomberg Estimate: Rs 32,726.90 crore)

• Net profit fell 2.1% at Rs 5,686 crore Vs 5,809 crore (Bloomberg Estimate: Rs 5,968 crore)

• EBIT fell 7% at Rs 6,956 crore Vs Rs 7,484 crore (Bloomberg Estimate: Rs 7,655 crore)

• EBIT Margin 21.5% Vs 23.5% (Bloomberg Estimate: 23%)

• Recommended dividend of Rs 16 per share

HDFC Bank Q4FY22 (Consolidated, YoY)

• Net profit at Rs 10,055.18 crore, up 23% from Rs 8,186.51 crore (Bloomberg consensus estimate: Rs 10,269.6 crore)

• Net interest income at Rs 18,872.74 crore, up 10.2% from Rs 17,120.15 crore.

• Gross NPA at 1.17% in Q4 FY22 vs 1.26% QoQ

• Net NPA at 0.32% in Q4 FY22 vs 0.37% iQoQ

Stocks and U.S. equity futures declined on Monday, as the possibility of a de facto European Union embargo on Russian gas and the threat of curbs on oil led to surge in oil and natural gas prices.

Treasury yields rose, as a jump in energy costs amid rising concerns over inflation concerns. Japanese shares fell, as did S&P 500 and Nasdaq 100 contracts.

The Singapore-traded SGX Nifty, an early barometer of India's benchmark Nifty 50, fell 0.50% to 17,243 points as of 8:05 a.m.

Elsewhere, Bitcoin fell below $40,000.