Closing Bell
India's stock benchmarks snapped a six-day losing streak and logged gains for only the second day in the month of May in a volatile session. Rise in auto, power, banking stocks aided the advance.
The Sensex added 180 points (0.34%) to 52,973.84. The 30-stock gauge rose over 630 points to an intraday high of 53,428.28. The Nifty also advanced by similar magnitude to 15,842.30. Eicher Motors advanced the most, gaining 7.62%, followed by Apollo Hospitals which added 3.92%. About 30 of the Nifty 50 stocks gained while 20 declined.
The broader indices outperformed their larger peers with S&P BSE MidCap gaining 1.5% and S&P BSE SmallCap rising 1.15%. Sixteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Telecom, Utilities, Auto, Power and Realty indices adding over 2%.
The market breadth was skewed in the favour of bulls. About 2,236 stocks advanced, 1,159 declined and 182 remained unchanged.
'Focus On Firms With Positive Cash Flows, High Pricing Power, Zero Debt On Balance Sheet In The 'Risk-Off' Mode'
...the U.S. announcing a deal with European leaders to increase shipments of natural gas to help wean Europe off Russian energy has sent out a signal to investors that there will be no softening of energy prices over the summer and inflation in the US is here to stay for longer than anticipated.Amit Khosla, Founder, Valtrust Capital
The inflationary pressure which might propel Fed to increase rates to the extent of 300bps has triggered the Risk-off mode situation. Investors are seen to pulling out investments despite the valuations in place. Interest rate increased by US Fed makes US Dollar appreciate against every currency including INR.Amit Khosla, Founder, Valtrust Capital
In such a situation of a risk-off mode, when the investments are primarily in debt and looking towards west, the equity component has to ensure that the businesses they own should have positive cash flows, high pricing power, and zero debt on balance sheet.Amit Khosla, Founder, Valtrust Capital
Mindtree To Deliver Finastra's Payments Solution Through Cloud In Nordics, UK, Ireland
Mindtree and global financial technology provider Finastra announce partnership to bring Finastra's 'Fusion Payments To Go' payments technology in banks in the UK and Ireland, the Nordics, as a managed service.
Mindtree will host Finastra's payments solution in the cloud and handle technology integration across the bank's existing solutions.
Fusion Payments To Go technology offers payments processing and clearing functionality, with automated, rapid onboarding for financial institutions.
Source: Exchange filing
Apollo Tyres Rises As Analysts Retain 'Buy' After Q4 Results
Shares of Apollo Tyres rose over 5.3% to follow a 2.4% rise on Friday. The company reported net income for the fourth quarter that missed the average analyst estimate, post market hours on Thursday.
After the earnings, the stock has seen a host of analysts retain 'buy'. They cited demand reversal, limited capex needs, improved pricing power and higher sourcing from India by European Union would aid margins and drive growth.
Trading volume on the stock is 2.4 times the 30-day average. Of the 32 analysts tracking the company, 24 maintain 'buy', five suggest 'hold' and three recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 22.8%.
Source: Exchange filing, Brokerage notes, Bloomberg
Maruti Suzuki Gains Most In Four Sessions
Shares of Maruti Suzuki rose nearly 2.9%, the most in four sessions. The stock was among the top gainers in Nifty 50 and Nifty Auto indices.
Maruti Suzuki finalised allotment of 800 acre of land for new manufacturing plant in Haryana to produce 2.5 lakh vehicles per annum, the company announced post market hours on Friday.
Morgan Stanley reiterated 'overweight/attractive' on the stock on Monday and kept target unchanged at Rs 9,473, an implied upside of 30.20%.
Source: Exchange filing, Bloomberg
European Markets Open Lower
European markets decline as rising geopolitical tensions add to growth worries. Finland announced that it will apply to join NATO over the weekend. Russia had earlier warned of retaliation if Finland joined NATO.
Source: Bloomberg
Supriya Lifescience Rises Most Since The Day Of Listing
Shares of Supriya Lifescience rose nearly 18.5%, the most since the day of its listing on December 29, 2021, to Rs 384 apiece.
The company informed that the European Directorate for the Quality of Medicines and Healthcare (EDQM), France and Italian Medicines Agency (AIFA), Italy completed joint audit of the company's API facility in Ratnagiri in Maharashtra.
The inspection was conducted between May 9 and May 13, 2022.
Trading volume is nearly seven times the 30-day average. The company will report its earnings for the quarter-ended March on May 20.
Source: Exchange filing, Bloomberg
Tech Mahindra Falls As Analysts Flag Concerns On Margin After Q4 Results
Shares of Tech Mahindra fell over 3.8% after the company reported Ebitda that missed the average analyst estimate for Q4 post market hours on Friday.
Net income, revenue rose above estimate while margin missed estimate. The company also recommended final dividend of Rs 15 per share of face of Rs 5 each.
Analysts expect margin pressure to continue due to higher retention costs, amortization charge, return of travel and facility costs in FY23.
The relative strength index of the stock is at 28, suggesting it may be oversold.
Of the 49 analysts tracking the company, 40 maintain 'buy', five suggest 'hold' and four recommend 'sell'. The return potential of the stock is 30%.
Source: Exchange filing, Brokerage notes, Bloomberg
Mid-Day Market Update: Sensex, Nifty Pare Gains; I.T. Stocks Decline
Volatile start, an intra-day recovery, steady trade, followed by a decline to pare intraday gains, India's stock benchmarks swung between gains and losses as volatility continued to roil markets.
The Sensex was little changed at 52,776.40. The 30-stock gauge added over 630 points to an intraday high of 53,428.238. The Nifty also pared nearly 200 points to 15,776.45.
The S&P BSE MidCap outperformed its larger peers with 0.5% gains while the S&P SmallCap almost mirrored Sensex and Nifty. Eleven of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Realty rising over 1.6%. On the flipside, the S&P BSE Information Technology index lost 1%.
The market breadth was skewed in the favour of bulls. About 1,876 stocks advanced, 1,382 declined and 187 remained unchanged.
JK Paper Gains After Reporting YoY Growth In Net Profit, Ebitda, Revenue In Q4
Shares of JK Paper rose over 4.7% in intraday trade after reporting a YoY uptick in net profit, revenue and Ebitda for Q4 post market hours on Friday.
The company also recommended a dividend of Rs 5.5 per share of face of Rs 10 each.
Shares of the paper manufacturer gained over 3.3% on Friday ahead of earnings.
Trading volume is more than twice the 30-day average. Share price crossed above the 50-day simple moving average, indicating potential upward price momentum.
Source: Exchange filing, Bloomberg
Bharat Forge Gains On Q4 Beat
Shares of Bharat Forge held on to its gains after the company reported net income for the quarter-ended March that beat average analyst estimate.
Q4FY2022-23 (Standalone, YoY)
Net income up 28% at Rs 261.96 crore Vs Rs 205.45 crore (Bloomberg Consensus Estimate: Rs 251 crore)
Revenue at Rs 1,674.08 crore Vs Rs 1,307.35 crore (Estimate: 1,630 crore)
Ebitda at Rs 431.17 crore Vs Rs 359.06 crore
Ebitda margin at 25.76% Vs 27.46%
The company also recommended a final dividend of Rs 5.50 per equity share of face of Rs 2 each for FY2021-22, subject to shareholders' approval. The final dividend, if approved, will be paid on or after August 19, 2022.
Source: Exchange filing, Bloomberg
Holcim Says No Capital Gains Tax Payable On Sale Of Stake In Ambuja Cements, ACC
No tax to be paid for cash proceeds of CHF 6.4 billion
New owner to face the indemnification costs, if any
Divestment of the assets took place at superior valuations
Proper responsive owner, higher valuations, reduction in Co2 emissions -key reasons for divestment
Approval from the Competition Commission of India makes the deal smoother with Adani
Source: Holcim Concall
Balkrishna Industries Jumps Most In Eight Months As Analysts Term Q4 Performance 'Resilient'
Shares of Balkrishna Industries rose 6.7%, the most in eight months to Rs 2014.75, after the auto parts maker reported net income for the fourth quarter that beat the average analyst estimate, post market hours on Friday.
Analysts cited strong demand across regions and capacity additions as highlights of the quarter.
While analysts flagged concerns on margin due to rising freight and energy costs, they expected demand momentum led by Europe, recent capacity addition, consistent volume growth in India to drive growth.
Trading volume on the stock is nearly twice the 30-day average. Of the 27 analysts tracking the company, 13 maintain 'buy', six suggest 'hold' and eight recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 13%.
Dolat Capital raised the stock from 'sell' to 'buy' and raised target from Rs 1,936 to Rs 2,285, an implied return of 21.02%, after the earnings. Dolat Capital termed the Q4 performance as 'resilient', one in which the company 'stood still against all odds', in a note on May 14.
Source: Exchange filing, Brokerage notes, Bloomberg
U.S. FDA Flags Production-Related Quality Control & Procedural Lapses At Gujarat Facility Of Sun Pharma
Bandhan Bank Adds Over 11% In Two Days Since Q4 Beat
Shares of Bandhan Bank rose 8%. Over the last two sessions, the stock has added 13%. The company reported net income that beat average analyst estimate for the quarter-ended March during market hours on Friday.
Analyst updates in the past three days include five upgrades. Macquarie upgraded the stock from 'neutral' to 'outperform' and raised target from Rs 320 to Rs 390 (implied return of 14.69%) today.
Trading volume is more than twice the 30-day average.
Source: Exchange filing, Bloomberg
Tata Power's Solar Subsidiary Bags Solar Project Worth Rs 1,731 Crore From NHPC
Tata Power's subsidiary Tata Power Solar secured an order of 300 Mega Watt solar project worth Rs 1,731 crore from NHPC.
The project, located in Rajasthan will be developed under CPSU scheme of IREDA. The project will be completed in 18 months and aims to generate 750 million units annually.
Solar cells and modules made in India would be used in the project installation.
With this order, the pending order book of Tata Power Solar rises to Rs 13,500 crore.
Shares of Tata Power rose nearly 2% in intraday trade. Of the 25 analysts tracking the company, nine maintain 'buy', five suggest 'hold' and 11 recommend 'sell'. The return potential of the stock is 5.8%.
Source: Exchange Filing, Bloomberg
Amber Enterprises Falls Most Since March 2020 On Q4 Miss
Shares of Amber Enterprises fell 20% to Rs 2,703.6, with in the reach of 52-week low of Rs 2,683.6 apiece.
The heating and ventilation equipment maker reported net income and revenue for the quarter-ended March that missed average analyst estimate.
This is the steepest intraday decline for the stock in over two years since March 2020. Trading volume is more than 21 times the 30-day average. The relative strength index is at 28, suggesting that the stock may be oversold.
Share price crossed below the 200-day simple moving average, indicating potential downward price momentum.
Source: Exchange filing, Bloomberg
SBI Rises As Analysts Expect Lender To Achieve Return-On-Equity Goal On Time After In-Line Q4
Shares of SBI rose over 3% after analysts said that the lender is on track to achieve its return-on-equity goals by March 2024.
SBI reported net profit growth of 41% YoY in Q4, in-line with Bloomberg consensus estimates. The lender also saw sequential improvement in asset quality in Q4.
SBI raised MCLR lending rate by 10bps across tenors, over the weekend.
Trading volume is 2.4 times the 30-day average. All 50 analysts tracking SBI maintain 'buy'. The return potential of the stock is 39.3%.
Source: Exchange filing, Bloomberg, Brokerage notes
Eicher Motors Climbs Most In Three Months As Analysts Expect Volume Growth From Q2FY23
Shares of Eicher Motors Ltd. rose over 6%, the most in three months as analysts expected volume growth from Q2FY2022-23.
Exports, new launches and easing chip constraints are expected to aid volume growth, according to analysts.
Eicher Motors reported 16% YoY in net profit for the quarter-ended March.
Trading volume is 5.5 times the 30-day average. Eicher Motors is the top gainer in Nifty 50 index in today's session.
Source: Exchange filing, Bloomberg, Brokerage notes
Avenue Supermarts Jumps Most In Nearly Seven Months
Shares of Avenue Supermarts rose nearly 7.9%, the most in nearly seven months.
Analysts say that the long-term outlook looks encouraging and expect profitability to improve as demand recovery.
The company reported 3% YoY rise in net profit for the quarter-ended March on Saturday, below the Bloomberg consensus estimate.
Trading volume on the stock is six times the 30-day average.
Of the 26 analyst tracking the company, 10 maintain 'buy', six suggest 'hold' and 10 recommend 'sell'. The return potential of the stock is 21%.
Source: Exchange filing, Bloomberg, Brokerage notes
Adani's Cement Foray: ACC, Ambuja Rise While Ultratech, Shree Cement Fall
Shares of ACC rose over 7% and Ambuja Cements advanced nearly 3.5% while Ultratech Cement and Shree Cement were among the top laggards in the Nifty 50 index.
The stock reaction comes after the Adani Group announced $10.5 billion deal to acquire Holcim's shareholding in two of India's leading cement companies, Ambuja Cements and ACC.
The deal puts Adani just behind India's largest cement maker - Aditya Birla Group's Ultratech Cement.
Source: Exchange filing, Bloomberg
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Pvt. Ltd., the owner of BQ Prime.
Opening Bell: Sensex, Nifty Volatile; Eicher Motors Gains
India's stock benchmarks opened higher, aided by gains in auto, metal stocks while information technology stocks dragged. The S&P BSE Sensex and NSE Nifty 50 reversed gains in the opening minutes.
The S&P BSE Sensex fell 0.13% to 52,727.44. The NSE Nifty 50 rose 0.13% to 15,802.40.
The broader indices outperformed their larger peers with S&P BSE MidCap and SmallCap gaining 0.4%. Barring S&P BSE Fast Moving Consumer Goods and Healthcare, all the other 17 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal adding 1.3%.
The market breadth is skewed in the favour of bulls. About 1,762 stocks advanced, 680 declined and 104 remained unchanged.
HDFC Bank Gets RBI's Nod To Set Up Step-Down Subsidiary For IFSC Broking Services
HDFC Bank received approval from the Reserve Bank of India for setting up a step-down subsidiary through HDFC Securities Ltd. on May 13.
The subsidiary will offer broking and clearing services in International Financial Services Centre (IFSC) at GIFT City, on terms as prescribed by the RBI
Source: Exchange filing
Cummins India Announces Voluntary Retirement Plan For Kothrud Engine Plant
Pune-based internal combustion engines' maker Cummins India has announced a Voluntary Retirement Scheme at its Kothrud Engine Plant in Pune.
The VRS shall be applicable for all individual employees working in Kothrud Engine Plant in shopfloor and office category, employees who are above 45 years of ago and less than 57 years of age as on May 16, 2022 and employees who are on permanent rolls of the company for 10 years or more as on May 16, 2022.
Source: Exchange filing
Key Implications From Adani's Acquisition Of Ambuja Cements, ACC
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Pvt. Ltd., the owner of BQ Prime.
Consumer Goods Firms In Focus As India Bans Wheat Exports
In Focus: Consumer goods firms after India prohibited wheat exports. Exports will be allowed to countries that require wheat for food security needs and based on the requests of their government, according to India's Directorate General of Foreign Trade.
In Focus: Adani Wilmar, Britannia, HUL, ITC, Adani Wilmar, Jubilant Foodworks, Mrs Bectors.
Adani Family To Acquire Ambuja-ACC In $10.5 Billion Deal
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Pvt. Ltd., the owner of BQ Prime.
Trade Setup For Monday
Earnings Today
Ami Organics
Bharat Forge
Century Plyboards (India)
Dodla Dairy
Fino Payments Bank
Glaxosmithkline Pharmaceuticals
Greenply Industries
GRM Overseas
Multi Commodity Exchange India
Nava Bharat Ventures
PDS
RateGain Travel Technologies
Raymond
VIP Industries
Stocks To Watch
Adani Group has entered into definitive agreements to acquire Swiss group Holcim's entire stake in two Indian cement companies Ambuja Cements Ltd. and ACC Ltd.
SBI: Raises MCLR lending rate by 10 bps across tenors.
Maruti Suzuki: The company finalised allotment of 800 acre of land for new manufacturing plant in Haryana to produce 2.5 lakh vehicles per annum.
RITES: The company secured consultancy and supervision work order for construction of the East Bank-East Coast Road Linkage Project from government of Guyana for $32,04,420.
Alkem Laboratories: MHRA had conducted an online inspection at the company’s Bioequivalence Center located at Taloja, Maharashtra. No critical or major observations were identified during the inspection.
Future Retail: CP Toshniwal has resigned as the company’s chief financial officer effective May 12.
Nazara Tech: To give one free share for every share held.
Paytm: Associate firm Paytm Insuretech Pvt. terminates the share purchase agreement to acquire 100% of Raheja QBE General Insurance Company. This comes after the share sale and purchase transaction were not consummated within the time period envisaged by the parties. Paytm remains bullish on roadmap for general insurance and intends to seek approval for new general insurance license, in while it will hold 74% majority shareholding upfront.
Earnings Post Market Hours
Tech Mahindra Q4 FY22 (Consolidated, QoQ)
Revenue up 5.81% at Rs 12,116.3 crore vs Rs 11,450.8 crore (Bloomberg Estimate: Rs 12,062.65 crore)
EBITDA up 1.38% at Rs 2,088.40 crore Vs Rs 2,060 crore (Bloomberg Estimate: Rs 2,157.86 crore)
EBITDA margin 17.24% Vs 17.99% (Bloomberg Estimate:17.88%)
Net profit up 10.03% at Rs 1,505.7 crore Vs Rs 1,368.5 crore (Bloomberg Estimate: Rs 1,419.71 crore)
Recommended final dividend of Rs 15 per share of face of Rs 5 each
Avenue Supermarts Q4 FY22 (Consolidated, YoY)
Revenue up 19% at Rs 8786.45 crore Vs Rs 7411.68 crore (Bloomberg Consensus Estimate: Rs 8721.3 crore)
Net profit up 3% crore to Rs 426.83 crore Vs Rs 413.88 (Estimate: Rs 510.41 crore)
EBITDA up 21% to Rs 739.28 crore Vs Rs 612.66 crore (Estimate: Rs 807.3 crore)
Margins at 8.4% Vs 8.3% (Estimate: 9.3%)
Eicher Motors Q4FY22 (Consolidated, YoY)
Revenue up 9% at Rs 3,193 crore vs Rs 2,940 crore (Bloomberg estimate: Rs 3,193 crore)
EBITDA up 19% at Rs756.57crore vs Rs 635 crore (Bloomberg estimate: Rs711 crore)
EBITDA margins at 23.7% vs 21.6% (Bloomberg estimate: 22.27%)
Net profit up 16% at Rs 610 crore vs Rs 526 crore (Bloomberg estimate: Rs 596 crore)
Appointed B Govindarajan as Chief Executive Officer
Bank of Baroda Q4FY22 (Standalone)
Net interest income up 21% at Rs 8611.67 crore Vs Rs 7106.62 crore (YoY)
Net profit of Rs 1,778.77 crore Vs Net loss of Rs 1,046.5 crore (YoY)
GNPA 6.61% Vs 7.25% (QoQ)
NNPA 1.72% Vs 2.25% (QoQ)
Recommended dividend of Rs 1.2 per share of face of Rs 2 each
REC Q4FY22 (Consolidated, QoQ)
Revenue fell 4.02% at Rs 9,633.37 crore Vs Rs 10,037.05 crore
EBIT fell 8.65% at Rs 8,190.5 crore Vs Rs 8966.1 crore
EBIT margin 85.02% Vs 89.33%
Net profit fell 17.02% at Rs 2,301.33 crore Vs Rs 2,773.44 crore
Recommended final dividend of Rs 4.8 per share of face of Rs 10
Amber Enterprises Q4 FY22 (Consolidated, QoQ)
Revenue up 99% at Rs 1,936.69 crore Vs Rs 974.29 crore
EBITDA up 70% at Rs 125.27 crore Vs Rs 73.63 crore
EBITDA margin 6.47% Vs 7.56%
Net profit up 80% at Rs 59.3 crore Vs Rs 32.93 crore
Balkrishna Industries Q4 FY22 (Consolidated, YoY)
Revenue up 30.83% at Rs 2,374.21 crore Vs Rs 1,814.74 crore
EBITDA fell 17.7% at Rs 503.08 crore Vs Rs 611.76 crore
EBITDA margin 21.19% Vs 33.71%
Net profit fell 1.34% at Rs 374.84 crore Vs Rs 379.95 crore
Recommended final dividend of Rs 4 per share of face of Rs 2 each
Carborundum Q4 FY22 (Consolidated, YoY)
Revenue up 15% at Rs 869.29 crore Vs Rs 756.57 crore
EBITDA fell 30% at Rs 110.92 crore Vs Rs 158.46 crore
EBITDA margin 12.76% Vs 21%
Net profit fell 37% at Rs 57.03 crore Vs Rs 90.53 crore
Recommended final dividend of Rs 2 per share of face of Rs 1
JK Paper Q4FY22 (Consolidated, YoY)
Revenue up 49% at Rs 1,339.82 crore Vs Rs 898.16 crore
EBITDA up 47% at Rs 335.98 crore Vs Rs 228.43 crore
EBITDA margin 25.08% Vs 25.43%
Net profit up 25% at Rs 170.17 crore Vs Rs 136.07 crore
Recommended dividend of Rs 5.5 per share of face of Rs 10 each
CESC Q4 FY22 (Consolidated, QoQ)
Revenue up 6.5% at Rs 3,011 crore Vs Rs 2,826 crore
EBITDA up 27.7% at Rs 696 crore Vs Rs 545 crore
EBITDA margin 23.12% Vs 19.3%
Net profit up 28.8% at Rs 424 crore Vs Rs 329 crore
Nazara Technologies Q4 FY22 (Consolidated, QoQ)
Revenue fell 5.7% at Rs 175.1 crore Vs Rs 185.8 crore
EBIT fell 91% at Rs 1.60 crore Vs Rs 18.4 crore
EBIT margin 0.91% Vs 9.9%
Net profit fell 78% at Rs 2.2 crore Vs Rs 10.3 crore
Recommended bonus issue in 1:1 ratio
Approved increase in authorized share capital from Rs 15 crore to Rs 30 crore
Appointed Veerappan K.R as the Chief Financial Officer effective May 14.
Sensex, Nifty Set To Gain; Adani Group, Tech Mahindra, Avenue Supermarts, Eicher In Focus
Stocks in Asia and U.S. futures rose on Monday, following a rebound in Wall Street.
Equities advanced in Japan, Australia and South Korea. The Nasdaq 100 and S&P 500 contracts gaining, hinting at a breather amid the ongoing rout in markets.
The Singapore-traded SGX Nifty, an early barometer of India's benchmark Nifty 50, rose nearly 0.79% to 15,896.50 points as of 7:05 a.m.
China’s central bank decision to cut interest rate for new mortgages to bolster its housing market and the loosening of Covid-19 lockdown in Shanghai have aided the sentiment as well.
Elsewhere, West Texas Intermediate crude rose 0.2% to $110.68 a barrel, while Bitcoin recovered to near $31,000.
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