Sensex, Nifty Fall For Third Day Dragged By RIL, HDFC Twins, Titan

India's stock benchmarks fell for the third day, the longest losing streak in nearly two weeks, dragged by energy, consumer durables and oil & gas stocks.

Sensex and Nifty closed near day's low ahead of RBI's Monetary Policy Committee's decision on Friday.

The Sensex fell 0.97% to 59,034.95. The Nifty also declined by similar magnitude to 17,639.55. The move was the biggest since falling 1% on March 21. Adani Ports & Special Economic Zone Ltd. had the largest drop, falling 3.8%. Today, 28 of 50 shares fell, while 22 rose.

The broader indices outperformed their larger peers. The S&P BSE MidCap fell 0.4% and S&P BSE SmallCap lost 0.75%. Fifteen of the 19 sectoral indices compiled by BSE Ltd. declined, with S&P BS Energy, S&P BSE Oil & Gas shedding over 2%.

The market breadth was neither skewed in the favour of bulls nor bears. About 1,700 stocks advanced, 1,712 declined and 102 remained unchanged.

Shares of IDFC Ltd. fell over 7.2%, the most in six weeks

• The bank signed definitive agreement to sell IDFC asset management company and IDFC AMC trustee to consortium comprising Bandhan Financial Holdings, GIC and Chrys Capital for a consideration of Rs 4500 crore.

• It also declared interim dividend of Rs 1 per equity share, 10% of paid-up share capital.

• Bandhan Financial is the holding company of Bandhan Bank. Shares of Bandhan Bank rose over 2.6%, the most in three days.

Source: Bloomberg, Exchange filing

• IIFL Finance rises for fifth straight day, extending the longest winning streak in over a year.

• JK Cement is higher for eighth day, on track for the longest winning streak in nearly 18 months.

• Mahindra CIE gains for seventh day, on track for longest winning streak in 15 months.

• OnMobile Globe advances for seventh day, on track for the longest winning streak in 19 months.

Source: Bloomberg

Shares of Hindustan Aeronautics rose 5%, the most in a week, after the company signed an MoU with Israel Aerospace Industries (IAI) to convert civil passenger aircraft to multi mission tanker transport aircraft.

• The move is expected to provide new capabilities and cost effective markets solutions for India's defence ecosystem, the company said in an exchange filing.

• The shares pared losses in yesterday's session, after the announcement.

• Trading volume on the stock is more than thrice 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

European markets open mixed amid monetary tightening plans, detailed in the minutes of U.S. Federal Reserve meeting, decline in crude prices and Russia-Ukraine conflict

India's stock benchmarks declined, but off day's low, dragged by losses in metals, consumer durables and information technology stocks.

The S&P BSE Sensex fell 0.34% to 59,407.14. The 30-stock gauge shed nearly 500 points to an intraday low of 59,120.06. The NSE Nifty 50 declined by similar magnitude to hover around 17,750.

The broader indices outperformed their larger peers rising 0.3%. Ten of the 19 sectoral indices declined with S&P Consumer Durables losing 0.8%.

The market breadth was skewed in the favour of bulls. About 2,121 stocks advanced, 1,216 declined and 120 remained unchanged.

Shares of Alembic Pharma added nearly 3%, the most in two weeks, after the company received tentative approval from U.S. FDA for a drug used to reduce the risk of stroke and systemic embolism in adult patients.

• The drug - Dabigatran Etexilate Capsules, 75 mg, 110 mg and 150 mg, have an estimated market size of $465 million for twelve months ending December 2021, according to IQVIA.

• Trading volume was 2.7 times the 30-day average volume at this time of the day. Of the 18 analysts tracking the company, seven maintain 'buy', seven suggest 'hold' and four recommend 'sell'. The return potential of the stock is 7.3%.

Source: Exchange filing, Bloomberg

Shares of Mahanagar Telephone Nigam Ltd. rose 9%, the most in nearly five weeks, to Rs 28.55 apiece, after the government deferred the merger of state-run telecom firms BSNL and MTNL due to financial reasons.

• In a written reply to Rajya Sabha,Minister of State for Communciations Devusinh Chauhan that 'financial reasons including high debt of MTNL' as the cause for deferring the merger.

• Trading volume on the stock is over six times the 30-day average volume at this time of the day. The company will report its earnings tomorrow.

Source: PTI, Bloomberg

Indian sovereign bonds edge higher on a sharp drop in crude prices Wednesday. The rupee is set to drop for a second day as traders weigh potential implications of U.S. warning to India against aligning with Russia.

• 10-year yields down 1bp to 6.91%

• USD/INR rises 0.1% to 75.8338, adding to Wednesday’s 0.6% rise

Source: Bloomberg

Coinbase, the largest crypto exchange in the U.S. by volume, has tied up with India’s United Payments Interface for direct investments in cryptocurrency.

• Coinbase CEO says the firm will work with bank partners, regulators in India.

• Coinbase will increase staff strength to 1,000 this year in India.

• The company will also invest more in startups in India, having already put in $150 million.

Source: Bloomberg

TCS has announced collaboration with Centre for Governance and Sustainability at the National University of Singapore (NUS) Business School.

The tie-up in intended to improve the corporate governance assessment quicker and more efficient.

TCS will build a platform that leveres AI and Machine Learning to enable faster evaluation of corporate governance in Asia.

Shares of TCS fell over 1% compared to 0.75% losses for Nifty IT index, as of 11:48 a.m.

Source: Exchange filing

• Adani Power has 3.82 million shares change hands in two large trades.

• Adani Wilmar has 1.18 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

Shares of Godrej Consumer Products rose nearly 5.2%, the most in over a week after the company expected to deliver double-digit sales growth, driven by pricing, despite the slowdown in FMCG industry.

• In its quarterly update, Godrej Consumer said that it witnessed a mixed performance in personal care and home care categories.

• Personal care segment saw double-digit growth, aided by personal wash.

• Motilal Oswal found the valuations at 34xMarch 2024 EPS attractive and expects growth over over 13%, as it maintained 'buy' with an unchanged target price of Rs 1,000, an implied upside of 33%.

Source: Bloomberg, Exchange filing, Motilal Oswal note

Maturities across the India sovereign yield curve were little changed in Thursday morning trading.

• The 3-year yield rose 0.7bps to 5.885%

• The 10-year yield fell 0.7bps to 6.911%

• The 19-year yield remained unchanged at 7.25%

• The 3-year-10-year yield spread was 102.6bps, vs previous close 104bps

Source: Bloomberg

Shares of Titan fell after reporting a 3% YoY decline in overall revenue, in its quarterly update. The stock is among the major laggards on Nifty 50 index

• Revenue of its jewellery business dropped 4% YoY.

• Watches & Wearable business saw revenue growth of 12%.

• Eyecare, a relatively small business, recorded 5% growth YoY.

Increase in sales from departmental stores and e-commerce led to a 21% YoY growth in fragrances and 67% growth in fashion accessories business. CaratLane, which is 72.3% owned by Titan, posted a 51% growth YoY.

• Analysts at Kotak Institutional Equities called the performance 'a blip' in a promising story and anticipated demand recovery as gold prices stabilise.

• Morgan Stanley called the trends mixed as the business was affected by lockdowns in January and rise in gold prices.

• Jefferies noted that the growth plans of CaratLane, 72.3% owned by Titan, remain strong.

Source: Brokerage notes, Exchange Filing, Bloomberg

Lupin completed the acquisition of a portfolio of brands from Anglo-French Drugs & Industries (AFDIL) and its associates.

• The acquisition will strengthen the company's India formulation business by adding the rapidly growing portfolio of vitamins, minerals, supplements and neurological products.

• Shares of Lupin rose over 1.8% in intraday trade.

Source: Exchange filing, Bloomberg

Zee Entertainment has about 81.45 million shares change hands in six large trades, according to Bloomberg data.

• Details of buyers, sellers are not known.

• This comes after Invesco launched an offer for sale for 7.8% stake in Zee via book-building exercise on Wednesday.

• Invesco will continue to hold at least 11% of the company after the completion of the transaction.

• Shares of Zee reversed losses and rose 2%, the most in three days in intraday trade.

Source: Exchange filing, Bloomberg

• India’s passenger vehicle sales marred by chip shortage.

• India FY23 passenger vehicle sales seen similar to pre-Covid level.

• Indians may be cautious in buying electric vehicles amid fire accidents.

• Testing, research of EVs in India lacks rigour.

Source: Bloomberg

• Uma Exports’ pre-market discovery price at Rs 80 per share, compared to its IPO price of Rs 68.

• The company’s IPO subscribed over 7.67 times.

Source: Bloomberg

India's stock benchmarks opened lower, dragged by banking stocks as HDFC and HDFC Bank extended decline. Oil and gas stocks fell amid a sharp slide in crude oil prices

The S&P BSE Sensex fell 0.54% to 59,290.46. The NSE Nifty 50 declined by similar magnitude to 17,730.60.

The broader indices outperformed their larger peers for the third day in a row, with the S&P BSE MidCap adding 0.2% and S&P BSE SmallCap gainng 0.44%. Ten of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Information Technology falling 0.7%. On the flip side, S&P BSE Utilities, Power and Realty indices rose over 1.5%.

The market breadth was skewed in the favour of bulls. About 1,898 stocks advanced, 737 declined and 94 remained unchanged.

Indian sovereign bonds may gain on a sharp drop in crude prices Wednesday. Traders are also weighing potential implications of U.S. warning to India against aligning itself with Russia

• 10-year yields rose 2bps to 6.92% on Wednesday.

• USD/INR rises 0.6% to 75.7600 on Wednesday.

• Global funds sell net Rs 2,280 crore of India stocks Wednesday: NSE

• They bought Rs 321 crore of sovereign bonds under limits available to foreign investors, and added Rs 380 crore of corporate debt

• State-run banks sold Rs 2,050 crore of sovereign bonds on April 6: CCIL data. Foreign banks sold Rs 1,420 crore rupees of bonds.

Source: Bloomberg

Shares of aviation companies are in focus after the Mint newspaper reported International Air Transport Association chief expects higher airfares. 

• Fares will increase as airlines, emerging from the pandemic, are not in a position to absorb rising fuel bill, Willie Walsh, director-general of IATA said

• In Focus: SpiceJet Ltd., InterGlobe Aviation Ltd.

• Tata Power cut to 'reduce' from 'add' at Axis Capital; price target set at Rs 263, implied downside of 9.2%.

• Macrotech Developers raised to 'buy' from 'hold' at ICICI Securities; price target set at Rs 1,348, implied upside of 16%.

Source: Bloomberg

Jefferies

• Reiterates 'buy' with the target price kept at Rs 1,475; an implied return of 26.93%.

• Recorde surge in pre-sales helps the firm meet its target of Rs 9,000 crore for the year.

• Strong housing demand and new project acquistions are likely to help drive double-digit sales growth for the company.

• Performance is Q4 is indicative of the company's own strong project pipeline.

• Believes that significant upgrades to FY2022-23 sales are possible.

• Company's UK projects witnessed incremental sales of Rs 1,700 crore during Q4.

• Deleveraging continues for the company with the net debt falling by Rs 590 crore QoQ to Rs 9,310 crore.

• Expects a further decline in net debt in FY2022-23, while the company continues on its project addition path.

RattanIndia backed Revolt Motors expands retail presence in South India and has opened a new store in Nellore, Andhra Pradesh.

• This is the third retail outlet of the company in Andhra Pradesh and 22nd in southern part of India.

• The company aims to open 40+ new stores this year.

• Andhra Pradesh offers subsidies to customers including 100% road tax exemption for newly-purchased EVs.

• The state intends to go 100% electric by 2030, in terms of city buses.

Source: Exchange Filing

Godrej Properties extended its existing arrangements with Shivam Realty to develop a residential group housing project in Kandivali, Mumbai.

• The new project will have an estimated booking value potential of approximately Rs 1,000 crore.

• The project will offer 7 lakh square feet of saleable area.

Source: Exchange filing

• Escorts cut to 'underperform' from 'neutral' at Credit Suisse; price target set at Rs 1,470, an implied downside of 22%.

• Godrej Properties: Ambit Capital initiated coverage of the stock with a recommendation of 'sell'; price target set at Rs 1,300, an implied downside of 23%.

• Coromandel International cut to 'add' from 'buy' at Spark Capital Advisors; price target set at Rs 950, implied upside of 14%.

Source: Bloomberg

• Zee Entertainment: The company’s shareholder Invesco will sell 7.8% stake in the company. Once bookbuild is complete Invesco will continue to own in at least 11% stake of the company.

• IDFC: The bank signed definitive agreement to sell IDFC asset management company and IDFC AMC trustee to consortium comprising Bandhan Financial Holdings, GIC and Chrys Capital for a consideration of Rs 4,500 crore. It also declared interim dividend of Rs 1 per equity share, 10% of paid-up share capital.

• Godrej Consumer: The company reported sales growth in high single digit, driven entirely by pricing. Unprecedented commodity inflation and subsequent price hikes impacted volumes. Within categories, personal care sustained its double-digit growth trajectory, primarily led by pricing. On the profitability front, the company is expected to deliver lower year-on-year EBITDA margins due to input inflation and weak performance in Indonesia.

• Titan: The company’s overall revenue drops 3%. Revenue of its jewellery business dropped 4% YoY. Watches & Wearable business saw revenue growth of 12%. Eyecare, a relatively small business, recorded 5% growth over the previous year. Increase in sales from departmental stores and e-commerce led to a 21% YoY growth in fragrances and 67% growth in fashion accessories business. CaratLane, which is 72.3% owned by Titan, posted a 51% growth YoY.

• Tata Steel: The company has executed share purchase agreement to acquire entire equity stake of Steel Authority of India held in S&T Mining Company, a Joint Venture between SAIL and the company. On completion of the acquisition, S&T Mining will become a wholly owned subsidiary of the company.

• DCB Bank: The bank reappointed Murali M. Natrajan as the Managing Director & CEO, for further period of two years effective April 29, 2022.

• Motherson Sumi: The company has completed acquisition of 55% stake in CIM Tools.

• Bank of Baroda: The bank executed share purchase agreement to sell entire equity stake of 14% in India SME Asset Reconstruction Company.

• Maruti Suzuki: The company has voluntarily recalled 19,731 units of its EECO model to inspect and rectify incorrect marking of wheel rim size, if any, on the wheel in some of these vehicles. This issue has no implication on performance, safety or environment, the company said.

• HDFC Bank: To raise capital of Rs 50,000 crore via bonds through private placements.

• Max Financial Services: The company appointed Amrit Singh as the Chief Financial Officer effective May 1, after Mandeep Mehta resigned from the position.

• L&T Financial Services: To consider declaration of dividend and issuance of non-convertible securities on April 29.

• Union Bank of India: The bank executed agreement to sell stake of 8% in India SME Asset Reconstruction Company in favour of Dhansamridhi Finance.

• KNR Constructions: The company achieves financial closure for the development of six lane Chittoor-Thatchur Highway from Hybrid Annuity Mode under Bharatmala Pariyojana, Andhra Pradesh and Tamil Nadu.

• Adani Enterprise: The company has acquired 49% stake in of Jhar Mining Infra from ACB for Rs 2.45 lakh.

• Tata Communications: To consider declaration of dividend on April 21.

• Canara Bank: The bank executed agreement to sell stake of 4% in India SME Asset Reconstruction Company.

• Rama Steel Tubes: 4Q Sales Volume Up 50% YoY to 35,872 tonnes