Sensex, Nifty Decline As Inflation Concern Weigh On Sentiment
Indian equity benchmarks fell for a second day as investors worry that rising commodity inflation will prompt authorities to ease back on stimulus has weighed on risk assets in recent sessions.
The S&P BSE Sensex ended 0.7% lower at 49,564.86 after seesawing between gains and losses earlier in the day. The NSE Nifty 50 Index declined 0.8%, with both gauges sliding the most since May 12. Sixteen of the 19 sector sub-indices compiled by BSE Ltd. fell, led by a gauge of metal companies.
With the earnings season underway, 21 of the 34 Nifty 50 companies that have so far announced quarterly results have missed analysts’ estimates, while 12 have beaten or met, according to data compiled by Bloomberg.
“Raw material cost inflation is impacting margins,” Jefferies India analysts Mahesh Nandurkar and Abhinav Sinha wrote in a note dated yesterday. They downgraded earning estimates for the year through March 2022 for more than half of the 58 Indian companies under their coverage that have reported earnings so far.
RBI Buys Rs 350,000 Crore Of Bonds As Planned
India’s central bank buys Rs 8,350 crore of 5.85% 2026 bond at 5.9526% cutoff yield: statement.
- RBI buys Rs 2,980 crore of 6.18% 2024 bond at 5.0145% cutoff yield
- Buys Rs 6,590 crore of 7.59% 2026 bond at 5.7022% cutoff yield
- Buys Rs 5,140 crore of 6.79% 2027 bond at 6.0140% cutoff yield
- Buys Rs 6,700 crore of 7.17% 2028 bond at 6.1906% cutoff yield
- Didn’t buy any of the 7.95% 2032 bond
- Buys Rs 5,240 crore of 6.22% 2035 bond at 6.5827% cutoff yield
- USD/INR down 0.1% at 73.1013
- 10-year yields fell 1bp to 5.97%; yield on 6.64% 2035 bond down 2bps to 6.59%
Unichem Surges After Approval for Depression Treatment Drug
Shares of Unichem Laboratories Ltd. rise most in more than three months after the U.S. FDA approves the Mumbai-based company’s application for a generic drug used in the treatment of depression.
- Co. has received approval to market generic version of AstraZeneca’s Elavil; the product will be commercialized from co.’s factory located in Goa
- Shares rise as much as 9.9%; most since Feb. 3
- Second best performers on S&P BSE Healthcare index
Bosch India Q4 Net Profit Beats Estimates
Bosch India reported net income for the fourth quarter that beat the average analyst estimate.
- Net income Rs 482 crore vs. Rs 81.14 lakh YoY, estimate Rs 335 crore
- Revenue Rs 3,220 crore, +44% YoY, estimate Rs 3,150 crore
- Total costs Rs 2,690 crore, +33% YoY
- Other income Rs 117 crore, -16% YoY
- Dividend per share Rs 115
- Markus Bamberger to be chairman effective June 1
- Appoints Pawan Goenka as additional director
- Appoints Bhaskar Bhat lead independent director
Just Dial Surges 14.5% After Strength Index Hits Oversold Level
Shares of the search engine operator for different business categories climbed as much as 14.5% as its relative strength index slipped below 30, a level that some traders read as oversold.
- Stock has fallen ~5% in May after rising for three consecutive months
- Company reported Q4 net income of Rs 33.6 lakh, -56% YoY, which missed estimate of Rs 39.6 lakh in a Bloomberg survey
- “Over the long run though, we believe that Just Dial has an opportunity to create a valuable business proposition in the business-to-business space,” analysts Manik Taneja and Swapnil Potdukhe at Mumbai-based JM Financial Institutional Securities Ltd. wrote in a note this week
- Brokerage retains buy, ups price target to Rs 730 (earlier Rs 700) as valuations “cheap” relative to peer IndiaMart Ltd.