Sensex Adds Over 850 Points; Nifty Settles Below 17,400

India's stock benchmarks advanced, aided by gains in Reliance Industries Ltd., HDFC Ltd., HDFC Bank Ltd. and auto stocks. This is the second consecutive session in which the Sensex and Nifty added over 1%. This is also the best day for the measures in over two weeks.

The S&P BSE Sensex rose over 1.5% to 57,911.68. The 30-stock gauge added over 950 points to an intraday high of 57,991.53. The NSE Nifty 50 advanced by similar magnitude to 17,392.60.

The move was the biggest since rising 2.2% on April 4.Eicher Motors Ltd. had the largest increase, rising 4.5%. Today, 42 of 50 shares rose, while 8 fell.

The broader indices underperformed their larger peers, with both S&P BSE MidCap and S&P BSE SmallCap rising 1.3%. Barring S&P BSE Metal, all the other 18 sectoral indices compiled by BSE Ltd. advanced, with S&P BSE Auto index gaining over 2%.

The market breadth was skewed in the favour of bulls. About 2,309 stocks advanced, 1,109 declined and 103 remained unchanged.

Shares of Tata Elxsi rose nearly 5%, the most in nearly three weeks after the company reported sequential growth in net profit and revenue in quarter-ended March, post market hours on Wednesday.

Trading volume was twice the 30-day average at this time of the day.

Tata Elxsi Q4 FY22 (Consolidated, QoQ)

• Net profit up 6% to Rs 160.01 crore vs Rs 150.95 crore

• Revenue up 7.29% to Rs 681.74 crore vs Rs 635.41 crore

• EBITDA up 4.92% to Rs 218.07 crore vs Rs 207.84 crore

• EBITDA margin at 31.9% vs 32.7%

• Dividend of Rs 42.50 per equity share announced

Source: Exchange filing, Bloomberg

Shares of HDFC Asset Management Co. fell for 11th day in a row, on course for longest losing streak since the company went public on Aug. 6, 2018.

• The stock has shed 11% over the past 11 sessions compared to 4.6% loss for Sensex.

• The company is scheduled to report its March-quarter earnings on April 27.

Source: Bloomberg

Shares of PNC Infratech climbed over 13%, the most in nearly two months, after the company said it received a Rs 37 crore ($4.9 million) bonus for early completion of a project.

• Part of the Purvanchal Expressway project was completed 97 days ahead of schedule, according to an exchange filing.

• Trading volume was nearly 12 times the 30-day average at this time of the day. Shares rose above 50-day simple moving average, indicating potential upward price momentum.

• All 24 analysts tracking the company maintain 'buy'. The return potential of the stock is at 45.6%.

Source: Exchange filing, Bloomberg

• L&T Finance Holdings has 1.28 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

Shares of aluminum stocks across Asia fell after Alcoa reported weaker-than-expected sales, indicating weak demand.

• Shares of Hindalco fell nearly 2.5%, the steepest decline in over a week.

Source: Bloomberg

Shares of HDFC Bank surged nearly 2% to Rs 1,379.80.

• About 9.8 million shares changed hands in a large trade

• The stock was among the top five gainers on Nifty Bank index.

• This is the most the stock has surged in over two weeks.

Source: Bloomberg

Shares of VRL Logistics surged over 16% to a record Rs 658.7 apiece.

• The stock extended its winning streak for the third day. Over the past three sessions, VRL Logistics has risen 20%.

• The rise comes after the company announced signing an MoU with Ratna Cements on Monday for transfer of wind power undertaking on a slump sale basis for Rs 48 crore.

• The buyer placed a token advance of Rs 2 crore ahead of the MoU and has set a time till July 31, 2022 to complete the transaction.

• Trading volume is more than 20 times the 30-day average at this time of the day. The relative strength index on the stock is at 82, suggesting it may be overbought. Of the 12 analysts tracking the company, 11 maintain 'buy' and one recommends 'sell'. The return potential of the stock is -2.9%.

Source: Exchange filing, Bloomberg

• Adani Power has 1.86 million shares change hands in large trade.

• Adani Power has another 1.54 million shares change hands in a large trade.

• Adani Power has another 1.59 million shares change hans in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

Shares of JB Chemicals were volatile after Credit Suisse initiated coverage of the stock with 'outperform'.

• The target price was set at Rs 2,020, an implied upside of 25.4%.

• Credit Suisse expects JB Chemicals' India business to outperform peers at 15% CAGR over FY22-25.

• New management's strategy to diversify into new therapies is a positive, says Credit Suisse as it expects margin expansion to drive RoCE to 40%+ over next four years.

• Growth of price-controlled legacy brands, respiratory, cardiac segments should aid revenue growth, according to Credit Suisse.

• Key risks to the outlook are the resurfacing carcinogenic concerns on Ranitidine, lower synergy from acquisitions and attrition.

• Of the 10 analysts tracking the company, nine maintain 'buy and one suggests 'hold'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 21.4%.

• The stock has shed 8.75% in 2022 so far compared to 3% loss for NSE Nifty Pharma index.

Source: Credit Suisse Note, Bloomberg

• Russian president Vladimir Putin has said Ukraine’s Mariupol has been captured.

• Russian defence ministry says Russia controls all of Mariupol except the Azovstal plant.

• Putin has ordered for the plant to be sealed off, not stormed.

Source: AFP, Bloomberg

India's stock benchmarks advanced, adding by gains in information technology, auto and energy stocks.

The Sensex jumped over 750 points, nearly 1.35% to 57,801.90. The Nifty added over 200 points to 17,355.80.

The S&P BSE MidCap underperformed its larger peers, rising 1% while S&P BSE SmallCap almost mirrored Sensex and Nifty. Barring S&P BSE Metal, all the other 18 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Information Technology adding 1.7%.

The market breadth is skewed in the favour of bulls. About 2,301 stocks advanced, 1,015 declined and 121 remained unchanged.

• Sunil Mittal: Should invest in rolling out faster radio network.

• Sunil Mittal: World will move to cryptocurrency.

• Sunil Mittal: Regulations will have to catch up with cryptocurrency.

-At India Economic Conclave

Source: Bloomberg

Shares of Varroc Engineering rose over 3.6%, on course to extend gains for fifth day.

• The Maharashtra-based automotive component maker stated that the media report suggesting plans to sell global lighting business for $650 million is speculation, in a clarification to exchanges Thursday.

• Varroc Engineering added that the company keeps exploring various opportunities to enhance shareholder value during its normal course of business.

• Shares on the company have risen over 12% in the last five days. Trading volume is nearly 2.5 times the 30-day average at this time of the day. The relative strength index on the stock is t 75, suggesting that it may be overbought.

• Of the 12 analysts tracking the company, 11 maintain 'buy' and one recommends 'sell'. The return potential of the stock is -2.4%.

Source: Exchange filing, Bloomberg

• Rupee pares losses; rises 0.1% to 76.14

• Indian currency fell 0.20% to 76.36 during the session.

Source: Bloomberg

Shares of Atul Auto Ltd. rose nearly 16%, the most in over nine months after the company announced collaboration with Honda Power Pack Energy India and Valeo.

• The partnership pertains to development of prototype cargo and passenger three-wheeler EVs with battery swapping solution.

• Trading volume is over 12 times the 30-day average at this time of the day. Shares rose above 200-day moving average, indicating potential upward price momentum.

Source: Exchange filing, Bloomberg

Shares of Ramkrishna Forgings surged over 6%, the most in nearly two weeks, after the company bagged export order with an estimated business value of Rs 33 crore over five years.

• The order from Europe's leading Tier-1 axle manufacturer pertains to the supply of front axle.

• Trading volume was more than 1.5 times the 30-day average at this time of the day.

• All the five analysts tracking the company maintain 'buy'. The return potential on the stock is 60.6%.

Source: Exchange filing, Bloomberg

Shares of Dhanlaxmi Bank rose over 6%, most in over a week.

• The bank signed MoU with Central Board of Direct Taxes and Central Board of Indirect Taxes and Customs.

• Bank has been authorised by RBI based on recommendation of CAG for collection of various taxes.

• With this MoU, the customers of the bank will be able to pay direct taxes and GST payments and other indirect taxes through the branch network and digital platforms of the bank.

• Dhanlaxmi Bank was empanelled as "Agency Bank" by RBI on October 4, 2021 to undertake general banking businesses of Central and State Government on behalf of the RBI.

Source: Exchange filing

ITC plans to acquire 10% stake in Blupin Technologies, the firm behind brand Mylo for Rs 39.34 crore.

• Mylo, a full stack community eco-system focuses on the parenting journey of young families and provides content,health tools, conversations and community sharing features.

• It also offers users D2C products and services in the mother and baby care segment.

• The firm had annual turnover of Rs 1.39 crore in 2020-21.

• The acquisition will mark ITC's expansion in D2C mother and baby care segment. In November 2021, ITC announced investment in Mother Sparsh Baby Care, in the same segment.

• Shares of ITC rose nearly 1.9% in intraday trade, the most in four sessions.

Source: Exchange Filing, Bloomberg

Most maturities along the India sovereign yield curve were little changed, while 4-year yields rose in Thursday morning trading.

• The 2-year yield remained unchanged at 5.422%

• The 10-year yield rose 3bps to 7.135%

• The 14-year yield rose 1.6bps to 7.304%

• The 2-year-10-year yield spread was 171.3bps, vs previous close 168.4bps

Source: Bloomberg

• NTPC has 1.28 million shares change hands in a large trade.

• NPTC has another 1 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

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

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

• The initial public offering of hospital chain Rainbow Children's Medicare is set to open from April 27 to 29.

• The IPO comprises a fresh issue of Rs 280 crore and an offer for sale of up to 2.4 crore shares by shareholders and promoters.

Source: Bloomberg

• Rupee fell 0.1% to 76.29 at the open. The Indian currency depreciated 0.2% to 76.36 during the session before trimming losses to 76.27%.

• 10-Year yield rises 3bps to 7.14%

• Indian bonds snap a three-day rally ahead of a Rs 32,000 crore ($4.2b) of debt sale on Friday. The rupee is steady.

• 10-year yields rises 3bps to 7.13%; fell 11bps in the last three sessions led by short-covering and demand from banks.

Source: Bloomberg

Shares of Gland Pharma rose over 5%, on course to extend gains for the fourth day.

• About 5.4 million shares of the company, aggregating to 3.27% of equity changed hands in a large trade.

• Details of buyers, sellers are not known immediately.

• Trading volume is over 25 times the 30-day moving average at this time of the day. Shares rose above 50-day simple moving average, indicating potential upward price momentum.

• Motilal Oswal, in a note on Wednesday, reiterated 'buy' and said that Gland Pharma is likely to be the biggest beneficiary of drugs shortage in the U.S.

Source: Bloomberg, Motilal Oswal note

• Zee Media has 1.39 million shares change hands in a large trade.

• Zee Media has another 2.94 million shares change hands in two large trades.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

• Gland Pharma has 5.4 million shares, aggregating to 3.27% of equity change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

India's stock benchmarks advanced, aided by gains in energy, information technology, power and realty stocks.

The S&P BSE Sensex rose nearly 400 points (equivalent to 0.7%) to 57,422.41. The NSE Nifty 50 advanced by similar magnitude to 17,244.70.

The S&P BSE MidCap almost mirrored its larger peers while S&P BSE SmallCap outperformed Sensex and Nifty, rising 1%. Barring S&P BSE Metal, all the other 18 sectoral indices compiled by BSE Ltd. advanced, with S&P BSE Industrials and Realty gaining 1%.

The market breadth was skewed in the favour of bulls. About 2,025 stocks advanced, 508 declined and 80 remained unchanged.

Companies offering stocks broking and related advisory services may move after quarterly profit at two top players grew, partly driven by revenue from new retail trading accounts. 

• Q4 net income at Angel One more than doubled while ICICI Securities reported 3% YoY growth in profit for the quarter through March

• In Focus: Dhani Services, IIFL Securities, Geojit Financial, 5Paisa Capital

• Also watch: Centrum Capital, Edelweiss Financial, JM Financial, BSE Ltd., Central Depository Services

Source: Bloomberg

Rupee bond traders will watch if a 320b rupee bond sale on Friday will dampen a rally in the nation’s debt this week that was led by short-covering and demand from banks.

• 10-year yields fell 5bps to 7.11% on Wednesday, they’re down 11bps so far this week

• USD/INR dropped 0.4% to 76.2100 on Wednesday.

• Global funds sold net Rs 3,010 crore of Indian stocks Wednesday: NSE

• They sold Rs 370 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 332 crore of corporate debt

• State-run banks sold Rs 2,800 crore of sovereign bonds on April 20: CCIL data. Foreign banks bought Rs 52.48 crore of bonds.

Source: Bloomberg

Morgan Stanley

• Reiterates 'Overweight/In-Line' on the stock and raises target to Rs 3,253 from Rs 2,926; an implied return of 19.66%.

• Emergence of bigger, newer markets for solar panels and electrolyzers will help fund the growth of RIL's new energy business.

• Electrolyzers, which form one of the four gigafactories that RIL is building, have become a necessity in the energy transition.

• Expects 10% boost for RIL's net asset value (NAV), in anticipation of quicker hydrogen monetisation.

• Estimate hydrogen business can achieve 14-15% RoCE for the company, on par with oils-to-chemicals operation.

• Demand for RIL's solar panels will increase with the evolution of green hydrogen ecosystem.

• India's 2030 hydrogen production target would absorb the 100 Giga Watt cumulative solar panel capacity that RIL aims to achieve.

• Possibility of monetisation of petcoke gasifiers as hydrogen demand rises, and export potential of green/blue hydrogen is likely to support multiples.

• Value-creation potential from the global pivot on energy security and the energy transition remains highly underappreciated for RIL.

• Firm remains well-equipped and funded for new energy investments.

• Crisil

• Cyient

• HCL Technologies

• ICICI Lombard General Insurance

• L&T Technology Services

• Nestle India

• Tata Communication

• Tata Steel: The company has stopped doing business with Russia. All steel manufacturing sites in India, the U.K. and the Netherlands are now sourcing raw material from elsewhere.

• Oil India: The company has commissioned a green hydrogen pilot plant at its Jorhat, Assam, pump station to produce 10 kg of the clean fuel per day. It has initiated a detailed study to explore blending of green hydrogen with natural gas and its effect on the existing infrastructure of Oil India.

• Larsen and Toubro: The company signed a Memorandum of Understanding with the Indian Navy making the company a knowledge Partner for nurturing technologies in various domains, for induction into the Indian Navy. The MoU encompasses all the aspects related to Electrical, Weapon, Engineering, Machinery and Control, and Hull of a Naval Warship.

• Gland Pharmaceuticals: Nicomac Machinery is selling 20.45 lakh shares representing 1.5% stake in the company. Floor price has been set at Rs 3,118 per share. There is an option to upsize the deal.

• Dr. Reddy’s Laboratories: The company launched Posaconazole Delayed-Release Tablets, 100 mg, the therapeutic generic equivalent to NOXAFIL (posaconazole) Delayed-Release Tablets in the US.

• Everest Kanto Cylinder: EKC International FZE, a wholly owned subsidiary of the company, has entered into a joint venture agreement with Mohamed Saad Eldin, Chairman of Saad El Din Group, Egypt. It intends to become the market leader in CNG cylinder manufacturing in the Middle East and North Africa (MENA) region by 2026.

Angel One Q4 FY22 (Consolidated, QoQ)

• Revenue up 12.38% to Rs 671.28 crore vs Rs 597.32 crore

• EBIT up 22.04% to Rs 279.8 crore vs Rs 229.26 crore

• EBIT margin at 41.68% vs 38.38%

• Net profit up 24.4% to Rs 204.69 crore vs Rs 164.54 crore

Tata Elxsi Q4 FY22 (Consolidated, QoQ)

• Net profit up 6% to Rs 160.01 crore vs Rs 150.95 crore

• Revenue up 7.29% to Rs 681.74 crore vs Rs 635.41 crore

• EBITDA up 4.92% to Rs 218.07 crore vs Rs 207.84 crore

• EBITDA margin at 31.9% vs 32.7%

• Dividend of Rs 42.50 per equity share announced

ICICI Securities Q4 FY22 (Consolidated, QoQ)

• Net profit fell 10.8% to Rs 338.81 crore vs Rs 380.21 crore

• Revenue fell 5.3% to Rs 891.49 crore Vs Rs 941.63 crore

• EBIT fell 8% to Rs 545 crore vs Rs 592.12 crore

• EBIT margin at 61.12% vs 62.88%

• Approved final dividend of Rs 12.75 per share

Glenmark Lifesciences Q4 FY22 (Consolidated, QoQ)

• Net profit fell 4.6% to Rs 98.9 crore vs Rs 103.71 crore

• Revenue fell 1.6% to Rs 514.06 crore vs Rs 522.5 crore

• EBITDA fell 1.5% to Rs 147.31 crore vs Rs 149.6 crore

• EBITDA margins 28.7% vs 28.6%