Sensex, Nifty Decline For Second Day Dragged By Metals, Energy Stocks

India's stock benchmarks declined for the second day, dragged by metal, energy and realty stocks.

Information technology stocks also fell after Tata Consultancy Services reported revenue, in-line with the average analyst estimate, post market hours Monday. Focus shifts to CPI inflation scheduled to be released post market hours Tuesday. The U.S. CPI Inflation print for March is also due today.

The Sensex fell 0.66% to 58,576.37. The 30-stock gauge fell to an intraday low of 58,298.57. The Nifty 50 also declined by similar magnitude to 17,530.30.

The broader indices underperformed their larger peers with both S&P BSE SmallCap and S&P BSE MidCap losing 1.5%. Barring S&P BSE Bankex, all the other 18 sectoral indices compiled by BSE Ltd. declined with S&P BSE Metal shedding 3.5%.

The market breadth was skewed in the favour of bears. About 1,178 stocks advanced, 2,243 declined and 95 remained unchanged.

"Domestic equities ended lower, following sluggishness across global markets. Moreover, news on the Russia-Ukraine war, rise in bond yields and further supply disruptions due to increasing COVID infections in China, continue to perturb market sentiments. In addition, Fed is preparing to take a more rigid monetary policy stance and shrink its balance sheet in an attempt to curb inflation. On the other hand, India’s central bank has kept the repo-rates unchanged at 4% despite fears of rising inflationary pressures, whilst also downgrading the growth forecasts to 7.2% for FY23", Mitul Shah, Head of Research at Reliance Securities wrote in a note. He added "the unprecedented economic damage due to the Russia-Ukraine crisis is likely to dictate the near-term market sentiment".

The June-September monsoon season is expected to be normal this year, New Delhi-based private forecaster Skymet Weather Services says Tuesday.

• Rains are likely to be 98% of the long-term average of 880.6mm, the company says on its website

• Rajasthan, Gujarat, Nagaland, Manipur, Mizoram and Tripura states could be at risk of receiving below-normal rains throughout the season

• Punjab, Haryana, Uttar Pradesh and some areas of Maharashtra and Madhya Pradesh may witness above-normal rainfall during the monsoon period

• The occurrence of El Nino is ruled out this year

Source: Bloomberg

The sales growth was driven by East India (23%), followed by North India (18%) and South India (8%).

• West India, however, has not surpassed pre-Covid levels with sales dropping 1%.

• Consumer durables and electronics, food and grocery led the gains in spending.

• Beauty and personal care sales dropped 11% compared with March 2019, while footwear sales declined 2%.

• The rise witnessed last month marks a growth of 28% compared to March 2021.

Source: Retailers Association of India

Shares of Kesoram Industries fell over 4.5%, most in three days after reporting net loss of Rs 46.14 crore for Q4.

Trading volume on the stock is more than quadruple the 30-day average volume at this time of the day.

Kesoram Industries Q4 FY22 (Consolidated, YoY)

• Revenue up 20% at Rs 1,031.78 crore vs Rs 861.56 crore

• Net loss of Rs 46.14 crore vs net profit of Rs 96.41 crore

• EBITDA fell 15% at Rs 97.78 crore vs Rs 115.17 crore

• EBITDA margin at 9.48% Vs 13.37%

Source: Exchange Filing, Bloomberg

• Telecom stocks declined after analysts indicated that the proposed cut in reserve price for 5G spectrum frequencies by TRAI was lesser than expected.

• TRAI proposed reduced in prices across various frequencies.

• Fifteen of the 17 stocks in S&P BSE Telecom indices declined, while two rose.

Source: Brokerage note, Bloomberg

Shares of Gufic Biosciences rose over 14%, the most in four months to 52-week high of Rs 283.65 apiece.

• The Mumbai-based bulk drugs and pharmaceutical formulations maker received permission from Central Drugs Standard Control Organisation to sell drugs used to treat mucormycosis and aspergillosis.

• Inavuconazole, the drug, has been used to control Mucormycosis, which caused high death rate during the second wave of Covid in 2021.

• Trading volume is over 20 times the 30-day average volume at this time of the day.

Source: Exchange filing, Bloomberg

• Biba Fashion’s IPO comprises fresh share sale worth Rs 90 crore and an offer for sale of 2.77 crore equity shares.

• Promoter Meena Bindra will offload up to 37.52 lakh shares.

• Private equity investors Warburg Pincus and Faering Capital will sell up to 1.84 crore and 55.86 lakh shares respectively.

Source: Draft red herring prospectus.

• Balkrishna cut to 'sell' from 'accumulate' at Nirmal Bang; price target set at Rs 2,150, implied upside of 2.4%.

• Eicher Motors cut to 'sell' from 'accumulate' at Nirmal Bang; price target set at Rs 2,940, implied upside of 17%.

• Ceat cut to 'accumulate' from 'buy' at Nirmal Bang; price target set at Rs 1,450, an implied upside of 29%.

Source: Bloomberg

BLOOMBERG EXCLUSIVE

• India is planning to boost shipments to Russia by an additional $2 billion.

• India, Russia are working out a payment system in local currencies to continue bilateral trade amid sanctions of Russia for invading Ukraine.

• PM Modi's administration is in talks with Moscow to liberalise market access for several Indian-made products.

• India looks to export products supplied by countries who have halted shipments after U.S. and its allies imposed sanctions on Russia, reports Bloomberg.

• On India's exports list are pharmaceutical products, plastics, organic and inorganic chemicals, home furnishings, rice, beverages like tea and coffee, milk products and bovine products.

Source: People with the knowledge of the matter

• Commerce Ministry spokesperson did not immediately respond to an email seeking comment

Source: Bloomberg

Shares of Birlasoft fell over 14%, the steepest decline in nearly 11 months.

• Trading volume on the stock was nearly twice the 30-day average volume at this time of the day.

• The stock is the biggest laggard on S&P BSE Information Technology index.

• Share price crossed below 50-day simple moving average, indicating potential downward price momentum.

• All 11 analysts tracking the company recommend 'buy'. The return potential on the stock is 26.8%.

Source: Bloomberg

India's stock benchmarks declined, dragged by losses in metals, realty, oil & gas, energy, information technology, capital goods and telecom stocks. Focus shifts to Q4 earnings season, inflation concerns and volatility in crude oil prices amid lockdown in China, which has threatened demand.

The S&P BSE Sensex shed nearly 1% to 58,414.20. The NSE Nifty also declined by similar magnitude to 17,480.30.

The broader indices underperformed their larger peers with both S&P BSE MidCap and S&P BSE SmallCap shedding 2%. All the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Metal losing nearly 4.5%.

The market breadth was skewed in the favour of bears. About 987 stocks advanced, 2,371 declined and 103 remained unchanged.

Indian Rupee depreciated 0.28% to 76.18 during the session. Today's decline comes ahead of CPI inflation data for March, scheduled to be released post market hours Tuesday.

Yield on the 10-year bond surged to 7.19% during the session, highest in three years.

TRAI seeks stakeholder feedback on-

• Media ownership: Need for monitoring cross-media ownership/control

• Common mechanism to monitor ownership of print, television, radio, internet-based news media

• Need for an authority, besides SEBI & CCI, to monitor takeovers, acquisitions of media/news companies

Billionaire investor Rakesh Jhunjhunwala has offloaded 3.57% stake in Escorts Ltd. via an open offer. He now holds about 1.38% stake in the company.

Shares of the company fell as much as 4% after the sale was reported on the exchanges.

• KEC International has 1.06 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

Uber has announced a 12% hike in fares in Delhi-NCR. The price hike was taken to “cushion drivers from the impact of the spike in fuel prices,” the company said.

Uber had earlier raised fares in Mumbai by 15%.

Source: Company statement

Mahindra Lifespace Developers Ltd., the real estate and infrastructure development arm of the Mahindra Group, announced the launch of what it claims to be India’s first net zero energy residential project in Bengaluru.

The project, Mahindra Eden, is certified by the Indian Green Building Council. "The unique design features of this residential development are together expected to save over 18 lakh kWh electricity annually, equivalent to powering over 800 homes. The remaining energy demand for the project will be met from renewable sources through both on-site solar and wind energy systems, and purchase of green energy from the grid," it said.

Source: Exchange filing

Aditya Birla Capital Ltd.'s overall lending book (NBFC and housing) grew 10% year-on-year, to about Rs 66,900 crore, the company said in a business update.

NBFC:

• Strong momentum in gross disbursement at approximately Rs 9,500 crore in Q4FY22, grew 45% year-on-year and 43% quarter-on-quarter.

• Overall loan book grew 13% year on year to approximately Rs 54,900 crore.

• Gross Stage 3 is expected to be approximately 3.2% (PQ: 3.9%) as on March 31.

Housing:

• Rebound in gross disbursal in Q4 at approximately Rs 1,310 crore, with a year-on-year growth of 16%; the affordable housing segment contributed 47%+ of disbursements.

Total gross written premium of life insurance and health insurance grew 24% year-on-year to over Rs 13,700 crore in FY22.

Overall mutual fund assets under management grew 10% year-on-year, to Rs 2,95,805 crore in Q4FY22.

The overall active customer base grew 46% year on year to reach approximately 3.5 crore aided by focus on granular retail growth across all businesses.

Shares of the company surged as much as 2.45% to Rs 119.2 after the figures were announced.

Canada Pension Plan Investment Board, or CPPIB, will invest Rs 2,600 crore to acquire 49% stake in Tata Realty and Infrastructure Ltd.'s two premium commercial office projects at Chennai and Gurugram.

Their joint venture plans to further invest Rs 2,000 crore to buy land and completed assets for future growth.

Source: PTI

The Supreme Court has adjourned hearing for next week in the SpiceJet Vs Kalanithi Maran case.

• The top court was informed that there is no settlement.

• The issue of payment of interest is not agreed upon.

• The top court will take up the case on Monday and the parties will have further dialogue till then.

Tata Motors' Group global wholesales in Q4 FY22, including Jaguar Land Rover, were at 3,34,884, 2% higher year-on-year.

• Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range in Q4FY22 were at 1,22,147, 12% higher year-on-year.

• Global wholesales of all passenger vehicles in Q4FY22 were at 2,12,737, 4% lower year-on-year.

• Global wholesales for Jaguar Land Rover were 89,148 vehicles

Shares of the company fell as much as 3.7% before paring losses to trade 3.2% lower at Rs 437.6 apiece.

• Indigo Paints rated new 'reduce' with target price at Rs 1,693.

• Asian Paints rated new 'buy' with target price at Rs 3,715.

• Berger Paints rater new 'add' with target price at Rs 790.

Most yields along the India sovereign yield curve rose, with 2-year bonds moving the most in Tuesday morning trading.

• The 1-year yield rose 4.1bps to 4.891%

• The 10-year yield rose 0.9bps to 7.158%

• The 19-year yield remained unchanged at 7.25%

• The 2-year-10-year yield spread was 191.7bps, vs previous close 196.2bps

Shares of SPML Infrastructure Ltd. hit upper circuit after the water management and infrastructure development company said it has secured several arbitration awards worth Rs 712 crore for projects from several PSU clients.

"The clients have preferred to appeal the same, which are presently at various levels of hearing at the courts. We are very confident of receiving the full amount of arbitral awards along with the interest upto the date of receipt in due course," it said.

Further, the company said it is in the final stages of filing several claims worth Rs 3,000 crore over and above the Rs 712 crore figure.

Shares of Adani Green Ltd. rose as much as 10.8% to a 52-week high of Rs 2,955. The company shared its provisional Q4 business update:

• Total operational capacity increases by 56% year-on-year to 5,410 MW.

• Sale of energy increases by 84% year-on-year at 29.71 crore units in Q4 FY22.

• Solar portfolio capacity utilisation factor at 26.4% with 210 basis points improvement year-on-year backed by approximately 100% plant availability.

• Wind portfolio capacity utilisation factor at 23.6% with 140 basis points improvement year-on-year backed by approximately 98% plant availability.

Trading volume was 14 times the average for this time of the day. The stock was the best performer among its peers.

Brent staged a partial recovery, after dropping 5% on Monday, as traders weighed China’s demand outlook following the easing of some virus restrictions in the financial hub of Shanghai.

• Punjab National Bank has 1.3 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

• Shares of Delta Corp Ltd. fell over 4.3%, the most in three weeks, after the company reported sequential decline in net income and revenue for the quarter-ended March.

• Trading volume is nearly thrice the 30-day average volume at this time of the day.

Source: Exchange filing, Bloomberg

Shares of Sunteck Realty rose nearly 3% after the firm logged pre-sales of Rs 503 crore, up 36% YoY (and 43% QoQ) in Q4FY2021-22

• Firm clocked pre-sales of Rs 1,303 crore in FY2021-22, up 27% YoY, one of the best annual sales ever, according to Sunteck's quarterly business update.

• Collections rose 26% YoY to Rs 404 crore in Q4

• Collections rose 35% YoY to Rs 1,053 crore for FY2021-22

• Collections efficiency for FY2021-22 stood at 81% compared to 76% in FY2020-21.

• Trading volume on the stock was more than 3.5 times the 30-day average volume at this time of the day.

Source: Exchange Filing

• ITC has 1.56 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

India's stock benchmarks opened lower, dragged by losses in information technology, metals and banking stocks.

The S&P BSE Sensex shed nearly 0.5% to 58,679.16. The 30-stock gauge fell as much as 0.80% in opening minutes. The NSE Nifty also declined by similar magnitude to 17,581.vvvvvvvvvvvvvvvvvvvvv

The S&P BSE MidCap almost mirrored its larger peers, while S&P BSE SmallCap outperformed Sensex and Nifty, shedding 0.3%. Sixteen of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Metal shedding over 1.3%. On the flipside, S&P BSE Utilities and Power indices rose nearly 2%.

The market breadth was skewed in the favour of bears. About 1,134 stocks advanced, 1,530 declined and 97 remained unchanged.

• Infosys cut to 'hold' from 'buy' at HSBC; price target set at Rs 2,040, an implied return of 15%.

• ICICI Prudential: Axis Capital initiated coverage of the stock with a recommendation of 'buy'; price target set at Rs 650, an implied return of 21%.

Source: Bloomberg

Indian bond traders will focus on Rs 34,000 crore of ($4.5b) Treasury-bill sale Tuesday as yields climbed to the highest in almost three years. Retail inflation data is also on the agenda. 

• CPI index probably rose 6.40% in March YoY from 6.07% gain in February, according to a Bloomberg survey ahead of data due after close of market hours.

• USD/INR fell 0.1% to 75.9600

• Global funds sell net Rs 1,150 crore of India stocks Monday: NSE

• They sold Rs 202 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 261 crore of corporate debt

• State-run banks sold Rs 125 crore of sovereign bonds on April 11: CCIL data. Foreign banks bought Rs 900 crore of bonds.

Source: Bloomberg

Motilal Oswal

• Reiterates 'buy' and raises target price to Rs 4,240 from Rs 4,150, an implied return of 14.71%.

• Record headcount addition implies demand visibility.

• Strong deal wins suggest robust revenue growth outlook for FY23.

• Factors in a revenue growth of 13.9% YoY in constant currency terms in FY23, aided by higher visibility on cloud-led spending and strong demand.

• Expects TCS to see some benefit in overall cost in FY23 from its fresher intake of 1,00,000 in FY22.

• Expects margin to continue to remain under pressure.

• Expects current supply-side challenges to normalise over the next two quarters.

• Firms is well positioned to leverage anticipated industry growth, led by cloud migration and digital transformation deals.

• Consistent market leadership, best in-class execution provides the company with ample room to maintain industry-leading margin and superior return ratios.

Source: Motilal Oswal note

Sunteck Realty has logged pre-sales of Rs 503 crore, up 36% YoY (and 43% QoQ) in Q4FY2021-22

• Firm clocked pre-sales of Rs 1,303 crore in FY2021-22, up 27% YoY, one of the best annual sales ever.

• Collections rose 26% YoY to Rs 404 crore in Q4

• Collections rose 35% YoY to Rs 1,053 crore for FY2021-22

• Collections efficiency for FY2021-22 stood at 81% compared to 76% in FY2020-21.

• New project launches shall lead to growth momentum in pre-sales and cash flows of the company and aid market share growth.

Source: Exchange Filing

Asian agriculture and food stocks may move after wheat futures rose for the second consecutive day with worries about short-term supply and adverse weather for crops.

• In Focus: Wheat flour manufacturer ITC, biscuit maker Britannia Industries, grain processor Kovilpatti Lakshmi Roller Flour Mills and Adani Wilmar

Source: Bloomberg

Asian energy-related shares may fall after oil retreated as China’s largest Covid-19 outbreak in two years stokes worries about demand from the world’s biggest crude importer.

• West Texas Intermediate slumped 4% to settle just over $94 a barrel on Monday, the lowest level since late February.

• In Focus: Reliance Industries, HPCL, BPCL, Indian Oil, ONGC, Oil India.

Source: Bloomberg

• Anand Rathi Wealth,

• Hathway Cable & Datacom,

• Tinplate Company of India

• JSW Steel: The company’s wholly owned subsidiary JSW Utkal Steel received the environmental clearance to set up a greenfield integrated steel plant with a production capacity of 1.32 crore tonnes per annum. The capital expenditure for the project is expected to be Rs 65,000 crores including associated facilities.

• Wipro: The company acquired Convergence Acceleration Solutions, a U.S.-based consulting and program management firm that specialises in driving large-scale business and technology transformation. The firm will pay $50 million upfront for the deal and $30 million over the next three years.

• JSW Energy (Barmer): The company has received a notice from its JV and lignite supplier, Barmer Lignite Mining Co. Ltd., 51% owned by Rajasthan State Mines and Minerals Ltd., intimating that BLMCL has been directed by RSMML to stop mining operations at the two lignite mines (Kapurdi and Jalipa) in Rajasthan within 15 days. However, RSMML has been directed by the Rajasthan government to ensure uninterrupted lignite supply to the power plant. The company is in discussions with Rajasthan government to ensure no impact on the power plant operations.

• UltraTech Cement: The firm was declared as the preferred bidder for Diggaon Limestone Block in an e-auction conducted by the Karnataka government. The block is situated in Tehsil Chittapur, District Kalburgi, Karnataka adjacent to its Rajashree unit and has total cement grade geological resources of 530 million tonnes of limestone.

• Kesoram Industries: The company has appointed Rohit Shah as chief financial officer, effective April 11, after Suresh Kumar Sharma tendered his resignation. It also reappointed P Radhakrishnan as the chief operating officer for a period of three years. The company, in principle, considered the proposal of demerging its rayon, transparent paper and chemical business carried out by the company directly and through its wholly owned subsidiary Cygnet Industries and has constituted a committee to evaluate the proposal.

• Nestle India: The company approved interim dividend of Rs 25 per equity share of Rs 10 each.

• Reliance Capital: The company appointed Aman Gudral as chief financial officer effective April 12, after Vijesh Thota resigned.

• Shiva Texyarn: The company has received an order from the Ministry of Defence for supply of 35,000 bags for defence personnel for Rs 11.9 crore.

• Info Edge (India): The company has invested about Rs.3.7 crores in Terralytics Analysis for 20.5% stake.

• Vipul Organics: Announced bonus shares in the ratio of 1:4.

• Adani Transmission: Added 1,104 CKMS to transmission in FY22; distribution operations grew 11.2% year-on-year in the previous fiscal.

• Intellect Design: In pact with VPBank for Vietnam Banking Services.

• John Cockerill India: Greenko, John Cockerill sign JV pact for making electrolyzers.

TCS Q4 FY22 (Consolidated, QoQ)

• Revenue up 3.5% at Rs 50,591 crore vs Rs 48,885 crore (Bloomberg estimate: 50,263.1 crore)

• Net profit up 1.61% at Rs 9,926 crore vs Rs 9,769 crore (Bloomberg estimate: 10,067 crore)

• EBIT up 3.2% at Rs 12,628 crore vs Rs 12,237 crore (Bloomberg estimate: 12,562 crore)

• EBIT margin at 24.96% vs 25.03% (Bloomberg estimate: 25.9%)

• Declared final dividend of Rs 22 per share

Delta Corp. Q4 FY22 (Consolidated, QoQ)

• Revenue fell 12% at Rs 218.32 crore vs Rs 252.2 crore

• Net profit fell 32% at Rs 48.11 crore vs Rs 70.38 crore

• Ebitda fell 35.6% at Rs 69 crore vs Rs 107.19 crore

• Ebitda margin at 31.6% vs 43.3%

• Declared final dividend of Rs 1.25 per share

• Company approved scheme of amalgamation of Daman Entertainment and Daman Hospitality with the company.

Kesoram Industries Q4 FY22 (Consolidated, YoY)

• Revenue up 20% at Rs 1,031.78 crore vs Rs 861.56 crore

• Net loss of Rs 46.14 crore vs net profit of Rs 96.41 crore

• Ebitda fell 15% at Rs 97.78 crore vs Rs 115.17 crore

• Ebitda margin at 9.48% Vs 13.37%