Nifty, Sensex Pare Losses After Sharp Slide; RIL, Metal Stocks Advance
India’s stock benchmarks recovered from sharp decline to close the trading session almost unchanged. Gains in index heavyweight Reliance Industries and metals offset the slide in private banks like HDFC Bank, ICICI Bank and Kotak Mahindra Bank as well as pharma stocks.
The S&P BSE Sensex ended the session flat at 54,525.93. The 30-stock index slipped below 54,200 in intra-day trade after opening the session, just shy of the record levels. The NSE Nifty 50 pared losses to end almost unchanged at 16,282.25. Nifty 50 had slipped below 16,200 mark in intra-day trade.
The broader indices underperformed their larger peers with the S&P BSE MidCap falling 0.2% and S&P BSE SmallCap shedding over 0.8%. Ten out of the 19 sectoral indices compiled by the BSE Ltd. declined with S&P BSE Healthcare slipping over 1%. On the flip side, metal stocks advanced with S&P BSE Metal adding over 3.5%.
The market breadth was skewed in favour of the bears. About 1,064 stocks advanced, 2,140 declined and 128 remained unchanged.
"The recent correction in midcap and smallcap stocks will be creating opportunity for investors to get in quality names at reasonable valuations. In our view, progress of monsoon, 1QFY22E corporate earnings and COVID-19 positivity rates will be in focus in coming days", Binod Modi, Head Strategy at Reliance Securities wrote in a note.
RBL Bank Accredited As Agency Bank To RBI
RBL Bank Ltd. announced that it has been empanelled by the Reserve Bank of India as an 'Agency Bank' to conduct banking business for the central and state governments.
The authorisation will enable RBL Bank to handle transactions related to government business, including distribution of subsidies, pension payments and collection of central and state taxes such as income tax, GST, excise duties, customs, stamp duty, registration, state excise and professional tax, in both online and offline modes, as per an exchange filing by the bank.
Pidilite Advances Post Q1 Beat
Shares of Pidilite Industries Ltd. gained 1.87% to Rs 2,264 apiece after reporting revenue in June quarter numbers that beat average analyst estimate.
June Quarter numbers
Net income at Rs 217.84 crore vs estimate of Rs 226 crore (Bloomberg consensus)
Revenue at Rs 1,936.79 crore vs estimate of Rs 878 crore
Total costs at Rs 1,655.45 crore vs Rs 1,839.36 crore QoQ
Other income at Rs 6.12 crore vs Rs 17.33 crore
Out of the 20 analysts tracking the company, 4 maintained ‘buy’, 7 maintained ‘hold’ and 9 analysts maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 19.4%.
Manappuram Finance Declines Post June Quarter Miss
Shares of Manappuram Finance Ltd. shed nearly 15% to Rs 163.35 apiece in this trading session. The company reported net income for the first quarter that missed the average analyst estimate, during market hours on Tuesday.
The stock shed nearly 5% on Tuesday and has extended the decline in today’s session.
June Quarter Results (Consolidated)
Net income at Rs 436.85 crore vs estimate of Rs 456 crore (Bloomberg Consensus)
Revenue at Rs 1,563.30 crore vs estimate of Rs 1,095 crore
Total costs at Rs 987.37 crore vs Rs 1,008.17 crore QoQ
Other income at Rs 10.44 crore vs Rs 7.93 crore QoQ
Of the 16 analysts tracking the company, 12 maintained ‘buy’ and 4 maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 24.6%.
SmallCaps, Midcaps Decline
Broader indices underperformed their larger peers as small and midcap companies dragged markets.
The S&P BSE SmallCap shed nearly 1% with Sequent Scientific and Manappuram Finance weighing on the index post their June quarter results. Earlier in the session, the index fell over 3%.
The S&P BSE Midcap index declined over 0.2%. The index had shed over 2% in intraday trade, before recovering from the lows.
The decline comes after BSE Ltd. announced new measures on Monday to curb excessive price movements in some stocks based on weekly, monthly and quarterly performance.