Sensex, Nifty Snap Four-Week Losing Streak

India's stock benchmarks snapped a four-week losing streak, aided by gains in healthcare, media and information technology stocks.

All the sectoral indices gained on a weekly basis.

Sensex and Nifty rose for four consecutive sessions to Friday, the longest winning streak in nearly two months.

Sensex added over 1,200 points in the week and reclaimed 56,000 in intraday trade on Thursday. The NSE Nifty 50 added nearly 400 points over the past five sessions.

On Friday, Sensex rose 0.15% t 55,550.30. The NSE Nifty also advanced by similar magnitude to 16,630.45.

The 50-stock gauge advanced to the highest closing level since Feb. 28. Cipla Ltd/India had the largest increase, rising 5.8%. Today, 29 of 50 shares rose, while 21 fell.

The broader markets outperformed their larger peers with S&P BSE MidCap adding 0.45% and S&P BSE SmallCap gaining 0.9%. Barring S&P BSE Information Technology, Telecom, Auto and Teck, all the other 15 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Healthcare gaining over 2%.

The market breadth was skewed in the favour of bulls. About 2,076 stocks advanced, 1,263 declined and 119 remained unchanged.

"Market may remain volatile due to the Russia-Ukraine crisis. Trend in global equities, the movement of rupee against the dollar and crude oil prices will dictate trend in the near term", according to Mitul Shah, Head of Research at Reliance Securities.

Amol Athawale, Deputy Vice President - Technical Research at Kotak Securities says that Russia-Ukraine conflict, surging oil prics and its impact on inflation have made investors jittery and expect range-bound activity in the near future.

"Nifty 50 has completed one leg of a pullback rally, but the texture of the market suggests a strong possibility of a range-bound activity in the near future. For traders, 16,400 and 16,300 would be the key support areas and 20-day SMA or 16,800 would act as an immediate hurdle for the bulls. We expect the uptrend formation will continue unless Nifty slips below 16,300".

Blue Star CFO Neeraj Basur has tendered his resignation on March 9, 2022.

• He will serve his notice period and continue in his current role till May 31, 2022.

• Neeraj Basur has resigned to pursue professional options beyond air conditioning and commercial refrigeration industry.

Source: Exchange Filing

Shares of G R Infraprojects rose 4% in intraday trade after the company emerged as L-1 bidder for building transmission system of power evacuation for rural electrification project in Madhya Pradesh.

• ICICI Securities initiated coverage of the stock with a 'buy' recommendation and target price of Rs 1,780; an implied return of 23%

• ICICI Securities cited the company's lean balance sheet, prudent bidding discipline and focus on roads and highways sector as growth drivers.

Source: Exchange filing, Brokerage note, Bloomberg

Gamings and sports media firm Nazara Technologies and its Dubai subsidiary announced Rs 30 crore investment in Griffin Gaming Partners Fund II over next three years.

• Nazara will invest Rs 10 crore upfront.

• Griffin Gaming Partners Fund II invests in gaming platforms, infrastructure, gaming content and studios.

• Nazara aims to become part of global network of Limited Partners of Griffin and its investee firms. Shares of Nazara rose over 2.5% in intraday trade.

Source: Exchange Filing, Bloomberg

Shares of Infibeam Avenues Ltd. rose after the company remained confident on its outlook in payment business.

• In an investor call with Dolat Capital, Infibeam highlighted rising digital spends, entry to GCC region (10 countries), focus on Neo banking licence opportunities, SaaS platform as key growth levers

• The company is also planning to expand merchant credit in its lending business.

• Share price crossed above 200-day simple moving average, indicating potential upward price momentum. Trading volume on the stock was 5.4 times the 30-day average volume for this time of the day.

Source: Brokerage note, Bloomberg

• Voltas raised to 'buy' from 'accumulate' at Nirmal Bang; price target set at Rs 1,350.

• AU Small Finance Bank raised to 'add' from 'reduce' at IIFL; price target set at Rs 1,320.

Source: Bloomberg

European markets open higher; European Central Bank hinted at ending bond-buying program in Q3CY2022, on Thursday.

Shares of Sun Pharmaceutical Industries rose 3.8%, the biggest gain in three days to Rs 902.6 apiece, within touching distance of 52-week high of Rs 902.85.

• The rise comes after Canadian firm Cipher Pharma entered into an amended distribution and supply pact with Sun Pharma, on Thursday.

• Under the pact, Sun Pharma's exclusive right to market, sell and distribute Absorica and Absorica AG in the U.S. through Dec. 31, 2026, has been extended.

• Absorica is used in the treatment of severe acne and in certain skin cancers.

• Shares of Sun Pharma have risen for four consecutive sessions, in which they added 10%. Trading volume on the stock is twice the 30-day average volume for this time of the day.

Source: Press Release by Cipher Pharma, Bloomberg

• Dish TV's Nomination & Remuneration Committee met on Mar 10.

• Proposed Venkateish be appointed as non-executive non-independent director.

• NRC advised the management to seek Ministry of Information and Broadcasting's approval.

Source: Exchange filing

Shares of Cipla rose over 5.1%, the most in 15 weeks to Rs 1,037.9 apiece.

• The stock was the top gainer in Nifty 50 index.

• Trading volume on the stock is more than thrice the 30-day average volume for this time of the day.

• The relative strength index on the stock is at 75, suggesting it may be overbought. The stock has logged gains over the past five sessions in which it has risen 10%.

• Bernstein has reiterated 'outperform' on the stock on Thursday while IIFL and HSBC retained 'buy' calls this week.

Source: Bloomberg

India's stock benchmarks advanced for the fourth day, on track to snap a four-week losing streak, aided by gains in healthcare and metal stocks.

The S&P BSE Sensex rose 0.33% to 55,648.64. The NSE Nifty 50 advanced by similar magnitude to 16,651.35.

The S&P BSE MidCap almost mirrored Sensex and Nifty while the S&P BSE SmallCap outperforming, rising nearly 0.8%. Barring S&P BSE FMCG and Auto, all the other 17 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Healthcare gaining nearly 2%.

The market breadth was skewed in the favour of bulls. About 2,095 stocks advanced, 1,127 declined and 123 remained unchanged.

Shares of JK Paper Ltd. rose over 12.5%, the most in 30 weeks.

• The company's stock has risen 20% since it reported 134% YoY growth in net income on March 8.

• The company also approved the proposed issue of redeemable non-convertible debentures of upto Rs 100 crore, to refinance its existing borrowings and general corporate purposes.

• Trading volume on the stock is nearly nine times the 30-day average volume for this time of the day.

Source: Bloomberg, Exchange Filings

Shares of DB Realty jumps nearly 3.7% to Rs 105.4 apiece after the company's partnership firm secured LoA from municipal corporation of Great Mumbai.

• The project pertains to construction of 4,000 tenements of carpet area size 27.88 meters on land bearing in Chandivali.

• DB Realty will receive land and construction transfer of development rights and premium per tenement at Rs 39.6 lakh aggregating to Rs 1,584 crore.

Source: Exchange Filing, Bloomberg

Shares of Reliance Infrastructure surged 10%, the most in over three weeks, after company received a favorable verdict related to its pending arbitration with Delhi Metro Rail Corp. 

• Trading volume on the stock was over 1.5 times the 30-day average volume for this time of the day.

• On March 10, the Delhi High Court ordered payment of Rs 6,330 crore of arbitration money to Reliance Infrastructure’s unit by May 31.

• The court also rejected petitions by lenders to Reliance Infra that sought payment of loan dues from the funds.

Source: Bloomberg

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

• The 4-year yield fell 0.8bps to 6.032%

• The 10-year yield fell 1bp to 6.799%

• The 14-year yield was little changed at 7.121%

• The 4-year-10-year yield spread was 76.7bps, vs previous close 77bps

Source: Bloomberg

Shares of Cera Sanitaryware Ltd.rose 2.7% after ICICI Securities reiterated 'buy' on the stock with the target price kept unchanged, on Thursday.

ICICI Securities expects the company to benefit from pick-up in demand from housing segment. Sanitaryware and faucetware segments are expected to drive revenue growth.

The stock has risen for the last four trading sessions. Of the 15 analysts tracking the company, 12 maintain 'buy', three recommend 'hold' and one suggests 'sell'. The return potential of the stock is 22.1%

Source: Bloomberg, Brokerage note

Indian bonds advance amid a sharp overnight drop in crude oil price. The rupee trades steady but is headed for a third week of declines.

• 10-year yields fall 1bp to 6.80%

• USD/INR steady at 76.2950

Source: Bloomberg

Shares of Jindal Steel and Power Ltd. rose over 2.5% after the company declared an interim dividend of Re 1 per equity share on face value of Re 1 per share for FY2021-22, post market hours Thursday.

• The record date to ascertain the eligibility of shareholders for the payment of interim dividend will be Mar. 19.

• The company also reported 8% YoY growth in steel sales in February. Production rose 1% YoY at 6.57 lakh tonnes, on Thursday.

• Shares of Jindal Steel and Power have risen nearly 5% in two days.

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

Source: Exchange Filing, Bloomberg

Titan, through its unit, has invested $20 million in Great Heights, a Delaware-based company that owns lab-created diamonds brand ‘Clean Origin’.

• Titan will get 17.5% voting rights in Great Heights through the investment.

• Titan says it will get a “ring-side view of the fast-growing lab grown diamond and direct to consumer sectors through the investment.

Source: Exchange filing

• Will take a judicious call to raise prices in April if crude stays elevated.

• We have factored in oil prices at $90 and anything higher will have to be passed on to consumers.

• Have raw material inventory that runs till April.

Source: Bloomberg

Strides Pharma Science Ltd. announced that its subsidiary Strides Pharma Global received approval for Colchicine tables USP, 0.6 mg from U.S. FDA.

• The tablets are indicated for treatment and prevention of gout.

• According to IQVIA, the U.S. market for the tablets for the year ending Jan. 2022 is $85 million.

• Shares of the company rose in today's session. Trading volume was over twice the 30-day average volume for this time of the day.

• Of the six analysts tracking the company, five maintain 'buy' and one recommends 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 38%.

Source: Bloomberg, Exchange Filing

Shares of Mold-Tek Technologies Ltd. rose 20%, the best day in eight months.

• The company said that it will consider the proposal to declare interim dividend for FY2021-2022 on March 25.

• The record data for the purpose of interim dividend will be March 24.

• Trading volume on the stock was over 42 times the 30-day average volume at this time of the day.

Source: Bloomberg

Shares of Exide Industries rose nearly 3.5% after the company entered into a long-term technical collaboration with SVOLT Energy Technology (China) on Thursday.

• Over the past two sessions, the stock has risen over 5%. Trading volume on the stock was 3.5 times the 30-day average volume at this time of the day.

• The collaboration with SVOLT pertained to lithium-ion cell manufacturing.

• SVOLT will provide Exide an irrevocable right to its technology and license to use, exploit and commercialise necessary technology and know-how for lithium-ion cell manufacturing in India.

• SVOLT will also help Exide in setting up a state-of-the-art green field manufacturing plant.

• Exide is in the process of forming a SPV to carry out the lithium-ion cell manufacturing.

• Exide has already participated in PLI schemes on Advanced Chemistry Cell battery storage.

• Of the 24 analysts tracking the company, 18 maintain 'buy', five suggest 'hold' and one recommends 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 37.5%.

Source: Bloomberg, Exchange Filing

India's stock benchmarks opened lower, dragged by losses in energy, banking and auto stocks, amid a decline in global equities.

The S&P BSE Sensex fell 0.47% to 55,204.49. The NSE Nifty 50 also declined by similar magnitude to 16,520.80.

The broader indices outperformed their larger peers with S&P BSE MidCap dropping 0.1% and S&P BSE SmallCap gaining 0.33%. Eleven of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Auto shedding 1%. On the flipside S&P BSE Metal added over 1.5%.

The market breadth was skewed in the favour of bulls. About 1,638 stocks advanced, 778 declined and 101 remained unchanged.

• HPCL cut to 'add' from 'buy' at Spark Capital Advisors; price target set at Rs 313.

• Hindustan Aeronautics cut to 'add' from 'buy' at Equirus Securities; price target set at Rs 1,480.

Source: Bloomberg

• Sundaram Finance raised to 'buy' from 'add' at Antique Stock Broking; target price set at Rs 2,406.

• Indian Oil cut to 'add' from 'buy' at Spark Capital Advisors; price target set at Rs 137.

Source: Bloomberg

Shareholders of Reliance Industries voted to transfer its gasification operations into a wholly owned unit, Reliance Syngas, the company said in an exchange filling. 

• The Scheme of Arrangement between Reliance Industries, its shareholders, creditors and Reliance Syngas was placed before the stakeholders for approval

• Shareholders voted in favor of the arrangement with 99% of votes.

Source: Exchange Filing

• Indian bonds may gain amid a sharp overnight drop in crude oil price. The rupee is headed for a third week of declines.

• USD/INR fell 0.3% to 76.3075 on Thursday; pair is up 0.2% on the week and ~2% in the past three weeks

• 10-year yields fell 4bps to 6.81%

• Domestic funds buy net Rs 946 crore of India Stocks: NSE

• They bought Rs 296 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 42 crore of corporate debt

• State-run banks sold Rs 200 crore of sovereign bonds on March 10: CCIL data. Foreign banks sold Rs 944 crore of bonds.

Source: Bloomberg

• Colgate Palmolive: Managing Director and CEO Ram Raghavan has been promoted to president of the company's enterprise oral care division. Prabha Narasimhan will be the new MD and CEO of the company with effect from April 15, 2022.

• Future Consumer: The 50:50 joint venture between the company and Fonterra Co-operative Group will be terminated.

• Wipro: The company has announced a long-term partnership with Pandorum Technologies for development of technologies that shorten time-to-market and maximise patient outcome during R&D and clinical trials of regenerative medicine.

• Indraprastha Gas: Received a letter of intent from the Petroleum and Natural Gas Regulatory Board for for development of CGD network in Banda, Chitrakoot and Mahoba in Uttar Pradesh.

• Tata Steel: The company, along with Tata Steel Long Products, has executed the share sale agreement with MMTC, NMDC, MECON, BHEL, Odisha Mining Corporation, President of India, Government of Odisha, Neelachal Ispat Nigam for acquisition of 93.71% equity shares in NINL.

• Infosys: Announced a multi-year transformational collaboration with International Tennis Hall of Fame, making the company ITHF’s official digital innovation partner and title sponsor of the annual ATP Tour tournament — the Infosys Hall of Fame Open.

• Lupin: Lupin Diagnostics has launched its first reference laboratory in East India in Kolkata.

• NMDC: The company has executed the share purchase agreement for sale of its entire equity holding of 10.1% in Neelachal Ispat Nigam.

• Jindal Steel and Power: Declared interim dividend of Re 1 per share.

• Kirloskar Ferrous: The company has acquired 51.25% stake in ISMT. Rahul Kirloskar will take over as chairman, Ravindranath Gumaste as vice chairman and Nishikant Balakrishna Ektare as MD.

• UCO Bank: The lender has acquired 3% equity stake in India Debt Resolution Company for a consideration of Rs 1.5 crore.

• Mahindra & Mahindra Financial Services: Mahindra Finance USA, a joint venture with Rabobank Group, has been extended.

• Bayer CropScience: The company will sell its Environmental Science Professional business to Cinven for $2.6 billion.

• Supreme Petrochem: The company has approved Phase II expansion of its expandable polystyrene plant at Nagothane, Maharashtra, by 30,000 million tonnes per annum. It also approved setting of second line of extruded polystyrene board with capacity of 100,000 MTA and increasing the masterbatch and compounds capacity by 50,000 MTA.

• Sun Pharma: Cipher extends distribution pact with the company.