Sensex, Nifty Log Weekly Gains Aided By FMCG, Metals, Energy, PSU Banks

India's stock benchmarks rose for second week in a row, aided by gains in metals, fmcg, energy, psu banks.

I.T. and media were the lone sectors that declined in the week.

The markets declined for three out of the five sessions, but snapped a three-day losing streak on Friday after RBI's decision to keep policy rates unchanged.

On Friday, the Sensex rose 0.7% to 59,447.18. The 30-stock gauge rose to an intraday high of 59,654.44. The Nifty 50 also advanced by similar magnitude to 17,784.35.

The move follows the previous session's decrease of 0.9%. Grasim Industries Ltd. had the largest increase, rising 5.3%. Today, 41 of 50 shares rose, while 9 fell.

The broader indices outperformed their larger peers with S&P BSE MidCap and S&P BSE SmallCap adding nearly 1%. Barring S&P BSE Information Technology, all the other 18 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal gaining 2%.

The market breadth is skewed in the favour of bulls. About 2,292 stocks advanced, 1,094 declined and 123 remained unchanged.

Administration of precaution dose to 18+ population through private vaccination centres to start from April 10.

• Those who have completed 9 months since their second dose would be eligible.

• Ongoing free vaccination programme through government centres for first, second and precaution dose to healthcare and frontline workers and 60+ population would “continue and would be accelerated,” the government said.

Source: PIB

The provisional figures of tax revenue for FY 22 stands at Rs 27.07 lakh crore, against BE of 22.17 lakh crore.

• Tax revenue is 34% over FY22 Budget Estimate and 17% more than FY22 Revised Estimate

• In direct taxes, Corporate Tax is up by 56.1%; Personal Income Tax is up by 43%.

• Overall Direct Tax revenue has grown by 49%

Indirect Tax

• Customs Revenue up by 48%

• Union Excise Duty remains same.

• Central GST has grown by 30%

Source: Revenue Secretary briefing

Macquarie Research

• Maintains 'outperform' on HDFC Bank, with the targt price of Rs 2,960, implied upside of 29.3%.

• Interacted with 70 investors over the past four days on the merger.

• Most investors feel the merger is beneficial for HDFC Ltd.'s shareholders.

• Many existing investors were worried about medium-term outlook for HDFC Bank

• Investors concerned that results and performance on aspects like loan growth and RoA will be overlooked for the next 4-6 quarters as focus shifts to approvals.

• Many investors felt HDFC should have started building mortgage book organically rather than taking acquisition note.

• Many investors feel the combined entity will be much larger in size and sustaining 20% growth on such a large balance sheet will be an arduous task.

• Shares of HDFC and HDFC Bank declined for the fourth day after surging on the back of merger plan on Monday.

Source: Macquarie Note, Bloomberg

Shares of Orchid Pharma surged 10% after the company was recognised as a "three star export house" by Ministry of Commerce and Industry, on Thursday.

• The recognition will be valid for five years.

• The recognition will aid easier facilitation of export licensing norms, export-related benefits.

• The stock has risen for the last seven days, in which it added over 50%.

• Trading volume was nearly six times the 30-day average volume at this time of the day. Relative strength index is at 85, suggesting the stock may be overbought.

Source: Exchange filing, Bloomberg

Shares of Bharat Dynamics rose over 19%, the most in a day in at least over a year, to a record Rs 739.45.

• Since announcing MoU with Tawazum Economic Council UAE to explore business opportunities in defence on March 31, the stock has surged nearly 30% in seven days.

• Bharat Dynamics recorded a turnover of Rs 2,700 for FY2021-22 vs Rs 1,913.76 crore for FY2020-21, according to a quarterly update on April 1.

• Today's rise comes after government announced plans to expand procurement of locally manufactured products, on Thursday.

Trading volume was 14 times the 30-day average volume at this time of the day. The relative strength index is at 80, suggesting that the stock may be overbought.

All six analysts tracking the company maintain 'buy'. The return potential on the stock is -11.3%.

Source: Exchange Filings, Bloomberg

Shares of Defence-related companies rose after government announced plans to expand procurement of locally manufactured products.

• Government released third positive indigenisation list of 101 items on Thursday.

Source: Bloomberg, PIB

The states will receive a total grant amount of Rs 86,201 crores in 2022-23

• The grant will be released in 12 monthly instalments.

• The grants are in line with the 15th Finance Commission recommendations to help bridge the states' gap in revenue accounts post devolution

• The 14 states to benefit are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.

Source: PIB

• Multi-cap funds: Inflow of Rs 9,694.5 crore vs inflow of Rs 585.3 crore in February

• Large-cap funds: Inflow of Rs 3,052.2 crore vs inflow of Rs 2,338.6 crore in February

• Mid-cap funds: Inflow of Rs 2,193.1 crore vs inflow of Rs 1,954.3 crore in February

• Small-cap funds: Inflow of Rs 1,695.6 crore vs inflow of Rs 1,429.7 crore in February

• Industry posts total net outflow of Rs 69,883 crore versus an inflow of Rs 31,533.5 crore in February

• Overnight funds: Outflow of Rs 12,852.1 crore vs inflow of Rs 1,296 crore in February.

• Liquid funds: Outflow of Rs 44,603.7 crore vs inflow of Rs 40,273.3 crore in February.

• Money market funds: Outflow of Rs 5,486.7 crore vs outflow of Rs 655.3 crore in February.

• Credit risk funds: Outflow of Rs 398.5 crore vs outflow of Rs 387.7 crore in February.

• Industry posts total net outflow of Rs 69,883 crore versus an inflow of Rs 31,533.5 crore in February.

• Average AUM: Rs 37.7 lakh crore in March vs Rs 38.56 lakh crore in February

• Net AUM: Remains flat at 37.56 lakh crore.

Source: AMFI

(Equity MF Net Inflow data has been corrected in this card)

Indian bonds continued to extend losses after the RBI bumped up its inflation forecast sharply by 120 basis points.

European markets open higher, looking to snap a two-day losing streak, sparked by the Federal Reserve’s plan for aggressive monetary-policy tightening.

India's stock benchmarks advanced after a volatile start, as markets stabilised after RBI's Monetary Policy Committee voted to keep the repo rate unchanged, but shift focus to inflation control. Metals, energy, power stocks advanced.

The Sensex rose nearly 0.4% to 59,251.86. The 30-stock gauge rose above 0.5% in intra-day trade. The NSE Nifty 50 advanced by similar magnitude to 17,733.35.

The broader indices outperformed their larger peers, with S&P BSE MidCap and S&P BSE SmallCap rising 0.9%. Barring S&P BSE Realty, all the other 18 sectoral indices compiled by BSE Ltd. advanced, with S&P BSE Metal gaining 1.7%.

The market breadth was skewed in the favour of bulls. About 2,238 stocks advanced, 1,065 declined and 132 remained unchanged.

• ICICI Bank has 1.51 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

• Shares of JSW Steel rose nearly 3.8%, the the most in eight days after the company reported crude steel production volume growth of 12% QoQ and 37% YoY in Q4FY2021-22.

• The capacity utilisation of existing operations, at standalone level improved from 94% in Q3FY2021-22 to 98% in Q4FY2021-22.

• The steel production volume includes the production at jointly controlled entity, JSW Ispat Special Products, as well.

Source: Exchange filing, Bloomberg

Have received a proposal from HDFC and HDFC Bank for the proposed merger, says RBI Governor

• The proposal is under consideration.

• We will examine it under prevailing guidelines.

• Once a decision is taken we will be making the appropriate announcements.

Hawkish or dovish, I will not like to enter into that, says RBI Governor

• Do not think the RBI is behind the curve at all

• Very often India's monetary policy is compared with advanced economies

• Please remember that advanced economies are on the reduction of the bond purchase programme

• We stopped G-SAP last year in October

• Orderly evolution of the yield curve is always a public good

• We will be watchful of this orderly evolution

• The move to increase the HTM limits to 23% is a first measure

• Whatever measures are further required will be taken from time to time.

Shares of Sterling & Wilson Renewable rose 9.50%, the most in nearly six months.

• The company reported a loss of Rs 126.30 crore in Q4 compared to loss of Rs 422.41 crore in the previous quarter.

• Revenue stood at Rs 1,071.03 crore versus Rs 1,494.86 crore in the previous quarter.

• Trading volume is over 6.7 times the 30-day average volume at this time of the day.

• Share price crossed above 200-day simple moving average, indicating potential upward price momentum.

Source: Exchange filing, Bloomberg

There are seven things which we have done in this policy announcement, says Shaktikanta Das, governor, RBI

• Revised inflation due to war induced factors and revised growth projections.

• In sequence of priorities have put inflation before growth.

• Stance continues to be accommodative while focusing on withdrawal of the accommodation which has been there for more than two years.

• LAF corridor has been normalised to 50 bps.

• SDF has been introduced and will be bottom of the corridor.

• Announced that liquidity withdrawal will be done over a multi-year timeframe.

• Situation is dynamic and fast-changing and all our actions will be tailored accordingly

• Max Financial has 1 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

• IHC to acquire 1.26% in Adani Green at Rs 1,923.2 per share.

• IHC to buy 1.41% in Adani Transmission at Rs 2,454.95 per share.

• IHC to buy 3.53% in Adani Enterprises for Rs 1,915.85 per share.

Source: Exchange filings

Shares of Adani Green Energy rose nearly 8.5%, the most in four sessions to fresh record of Rs 2,350 apiece

• The company approved the issuance of 20.02 million shares of Rs 10 each to IHC Capital Holding LLC on a preferential basis at Rs 1,923.25 per share, adding to Rs 3,850 crore

• Trading volume on the stock is nearly thrice the 30-day average volume at this time of the day. Relative strength index on the stock is at 75, suggesting it may be overbought.

Source: Exchange filing, Bloomberg

Shares of Oil & Gas stocks rose as the S&P BSE Oil Index gained over 1% .

• Motilal Oswal, in a note of Friday, expected its coverage universe in the sector to report 65% YoY and 25% QoQ growth in sales , due to higher volumes for OMCs.

• Motilal Oswal maintained 'buy' on Indian Oil Corporation, and 'neutral' on BPCL and HPCL.

• The brokerage reiterated GAIL as its top pick among large caps.

Source: Motilal Oswal note, Bloomberg

Shares of Sobha rose over 4.8%, the most in over four weeks, after the company achieved best ever sales value and volume in Q4.

• Sobha reported total sales value of Rs 1109.6 crore in Q4. Average cost of borrowing has further come down during the quarter.

• The stock pared most of its gains in a volatile session.

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

• Of the 17 analysts tracking the company, 15 maintain 'buy' and two recommend 'hold'.

• ICICI Securities and Edelweiss Capital reiterated 'buy' on the stock on Thursday.

Source: Exchange filing, Bloomberg

Yields rose across the India sovereign yield curve in Friday morning trading.

• The 1-year yield remained unchanged at 4.69%

• The 10-year yield rose 10bps to 7.02%

• The 30-year yield rose 2.1bps to 7.321%

• The 1-year-10-year yield spread was 231.3bps, vs previous close 222.5bps

Source: Bloomberg

• Stance: Accommodative

• MPC vote: unanimous

• RBI holds repo rate at 4%

• RBI holds reverse repo rate at 3.35%

• Standing deposit facility activated at 25 basis points below repo rate.

• Marginal standing facility rate at 25 basis points above repo rate.

(The card has been updated, correcting reverse repo rate)

Shaktikanta Das, Governor, RBI

• Responded with bold, unconventional and resolute measures against pandemic

• Two years later, the global economy has seen tectonic shifts since Feb 24

• Confronted with new but humongous challenges

• Conflict in Europe has the potential to derail the global economy

• Caught in cross-currents, approach but has to be "cautious but proactive

• External developments of last 2 months have materialised downside risks to domestic growth and upside risks to inflation projections, says RBI governor.

• Inflation is now projected to be higher, and growth projected to be lower than assessment made in February

• Robust rabi output should support rural demand

• Investment activity may gain traction with improved business confidence, credit growth and congenial financing conditions

• Inflation projected at 5.7% in FY23

• Q1 6.3%, Q2 at 5%, Q3 at 5.4% and Q4 at 5.1%

• Edible oil price pressures are likely to remain elevated in near-term, says Shaktikanta Das

• Feed cost pressures could continue, have spill over impact on poultry and dairy product prices

• RBI will use all policy levers to enhance resilience of economy

• RBI will continue to adopt a nuanced and nimble footed approach to liquidity management, while maintain adequate liquidity in the system

• Both MSF and SDF will be available from 5:30PM to 11:59PM on all days of the week, through the year

• It has been decided to restore the opening time of financial markets from Apr 18 to 9AM, without changing closing time

• Various liquidity measures have left overhang of about Rs 8.5 lakh crore, says RBI governor.

• Will engage in gradual, calibrated withdrawal of excess liquidity over multi-year timeframe in non-disruptive manner beginning FY23

• To restore size of liquidity surplus to level consistent with prevailing stance of monetary policy

• We are not hostage to any rule book

• No option is off the table when the need of the hour is to safeguard the economy

• The sky today maybe overcast with clouds but we will use all our energy and resources to let the sunlight illuminate India's future

• Redington India has 1.02 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

• Tech Mahindra has 1.03 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

Shares of Cholamandalam Investment and Finance Co surged over 7.3%, the most in over eight months since Aug. 2

• The company reported disbursements for Q4 at Rs 12,718 crore, a growth of 58% YoY.

• Collection Efficiency on billing improved across all product segments

• Collection efficiency came in at 138% in Q4 vs 120% YoY

Trading volume is nearly 11 times the 30-day average volume at this time of the day. Of the 37 analysts tracking the company, 29 maintain 'buy', seven suggest 'hold' and one recommends 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 2.3%.

Source: Exchange filing, Bloomberg

Bandhan Bank has 3% of equity change hands in a large trade

• Bandhan Bank has 49.7 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

• Shares of Bandhan Bank rose nearly 2.75%, the most in four sessions. The stock rose over 2.6% in intraday trade on Thursday. Bandhan Financial, the holding company of Bandhan Bank along with others entered into a deal with IDFC to buy IDFC Asset Management Company and IDFC AMC Trustee firms, post market hours Wednesday.

Source: Bloomberg, Exchange filing

India's stock benchmarks opened higher, aided by power, utilities, telecom and oil and gas stocks, ahead of RBI's Monetary Policy Committee's rate decision, scheduled to be announced at 10 a.m. today.

The S&P BSE Sensex rose 0.11% to 59,101.07. The 30-stock gauge rose to 59,297.46 in the opening minutes. The NSE Nifty 50 advanced by similar magnitude to 17,680.70.vvvvvvvvvvvvvvvvvvvvvvvvvv

The broader indices outperformed their larger peers with both S&P BSE MidCap and S&P BSE SmallCap rising over 0.6%. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Telecom rising nearly 2%.

The market breadth was skewed in the favour of bulls. About 2,006 stocks advanced, 603 declined and 76 remained unchanged.

Defence-related stocks in India may be active after the government announced plans to expand procurement of locally manufactured products. 

• Government release third positive indigenisation list of 101 items on Thursday.

• Watch: Bharat Electronics, Bharat Dynamics, Mazagon Dock, Garden Reach, Mishra Dhatu, Larsen & Toubro, Hindustan Aeronautics, Astra Microwave, Cochin Shipyard, Zen Technologies, Bharat Forge

Source: Bloomberg

Indian bond traders will look forward to the central bank’s monetary policy review on Friday for cues on the path of interest rates and measures to support record government borrowing program. The first weekly sovereign bond auction of the financial year, totaling Rs 32,000 crore ($4.2b) will also on the agenda.

• 10-year yields little changed at 6.91% on Thursday; up ~50bps this year

• USD/INR rose 0.3% to 75.9600

• Global funds sell net Rs 5,010 crore of India stocks Thursday: NSE

• They sold Rs 192 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 226 crore of corporate debt

• State-run banks sold Rs 1100 crore of sovereign bonds on April 7: CCIL data. Foreign banks bought Rs 312 crore of bonds.

Source: Bloomberg

• Sobha: The company achieved best ever sales value and volume in Q4. It reported total sales value of Rs 1,109.6 crore in Q4. Cash flows was healthy during the quarter, resulting in further net debt reduction. Average cost of borrowing has further come down during the quarter.

• Infosys: The company along with Rolls-Royce announced their joint ‘Aerospace Engineering and Digital Innovation Centre’ in Bengaluru.

• Air India/IndiGo: Virgin Atlantic Airways is in code-share talks with Air India and IndiGo, CCO Juha Jarvinen said.

• Sonata Software: The company has appointed Samir Dhir as the chief executive officer effective April 8 after Srikar Reddy voluntarily stepped down from the position.

• Indiabulls Real Estate: The company approved the issue price of its Rs 1,500-crore QIB offering at Rs 106.38 per share.

• Sterling and Wilson Renewable Energy: The company reported a loss of Rs 126.30 crore in Q4 compared to loss of Rs 422.41 crore in the previous quarter. Revenue stood at Rs 1,071.03 crore versus Rs 1,494.86 crore in the previous quarter.

• Cholamandalam Investment and Finance: The company reported disbursements for Q4 at Rs 12,718 crore a growth of 58% YoY. Collection Efficiency on billing improved across all Product segments and stood at 138% in Q4 of FY 22 as against 120% in Q4 of FY 21.

• Hester Biosciences: The company executed Grant-in-Aid Letter agreement for grant of Rs 60 crore to the company by Biotechnology Industry Research Assistance Council, a Government of India Enterprise to support COVID vaccine manufacturing under Mission Covid Suraksha.

• JSW Ispat Special Products: The company crude steel production grew 11% YoY at 1.7 lakh tons.

• L&T: The company received a letter from Ministry of Corporate Affairs seeking information and documents for the period between 2003 to 2008. The letter does not refer to any governance lapses on the part of the company, it said.

• Mahindra and Mahindra: The company’s debt-ridden subsidiary SsangYong Moto’s deal with Edison Motors Co. has been terminated due to Edison’s inability to deposit the bid amount as per the terms of the investment agreement.

• Dr. Reddy’s Laboratories: The company received NCLT approval for amalgamation of Dr. Reddy's Holdings with the company.

• BLS International: The company will consider issue of bonus shares to the equity shareholders on April 13.

• Everest Industries: To consider declaration of dividend on May 28.

• Jindal Stainless: Q4 sales volume up 6% YoY at 2,69,168 million tonnes.

• Lupin: Introduces Merzee capsules in the United States.

• NTPC: Incorporates NTPC Green Energy.