Sensex, Nifty Rebound From Day's Low To Pare Most Of The Losses
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India's stock benchmarks declined for the second day in a row, dragged by losses in information technology, consumer durables and telecom stocks
The decline comes amid rising inflation concerns, worries over economic demand after China's macro data showed weakness. Focus shifts to U.S. Federal Reserve's rate decision, due on Wednesday. The U.S. Federal is expected to increase rate by 50bps. Indian markets will be closed tomorrow due to a local holiday.
While the benchmarks declined, both Sensex and Nifty recovered from day's low and pared most of the day's losses. The Sensex fell 0.15% to 56,975.99. The 30-stock gauge fell over 1% to an intraday low of 56,412.62. The Nifty also declined by similar magnitude to 17,069.10. Apollo Hospitals Enterprise Ltd. had the largest drop, falling 3.4%. Today, 30 of 50 shares fell, while 20 rose.
The broader indices underperformed their larger peers, with S&P BSE MidCap losing 0.5% and S&P BSE SmallCap shedding 0.9%. Ten of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal adding 0.8%. On the flip side, S&P BSE Consumer Durables fell over 2.3%.
The market breadth was skewed in the favour of bears. About 1,242 stocks advanced, 2,220 declined and 182 remained unchanged.
"Early losses were mostly in reaction to the slump seen on Wall Street on Friday, but markets recovered most of its early losses as investors covered some shorts ahead of the trading holiday on Tuesday", according to Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities Ltd. He added, "the robust GST collections for April also calmed the nerves of investors, who are already facing the brunt of the ongoing war and volatile oil prices".
"Investors are also keenly awaiting the outcome of the US Fed's monetary policy announcement scheduled later this week. The Nifty is holding above the level of 16800, but at the same time, it is failing to show a sustained momentum. In short, the market is consolidating within a broad trading range of 17,400 and 16,800".
India 10-Year Yield Sheds 2bps
Yield on the 10-year bond shed 3bps to 7.11% during the session.
Rupee Depreciates Against Dollar
Rupee Falls Against Dollar
Indian currency depreciated 0.11% to 76.52 during the session.
Rupee closed 9 paise lower at 76.52, in a day of lackluster trading. With a truncated week, traders are staying away from taking large bets ahead of US FOMC meeting on Wednesday. Our bias continues to be a range, between 76 and 77. Strong US Dollar Index and fragile equity markets are USD supportive, whereas RBI intervention and LIC related flows are Rupee positive. Therefore, it can be rangeboundAnindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives, Kotak Securities Ltd.
Meghmani Organics Climbs As Q4 Net Profit Surges
Shares of Meghmani Organics surged after reporting YoY growth in net profit, revenue and Ebitda for the quarter-ended March.
Q4FY2022 Results (Consolidated, YoY)
Net profit up 184% at Rs 102.21 crore Vs Rs 36.03 crore
Revenue up 75% at Rs 811.81 crore Vs Rs 463.10 crore
Ebitda up 285% at Rs 133.78 crore Vs Rs 34.79 crore
Ebitda margin at 14.02% Vs 7.5%
Company recommended a final dividend of Rs 1.40 per equity share having face value of Rs 1 each for FY2022, subject to shareholders' approval.
Trading volume is more than seven times the 30-day average. The relative strength index on the stock is at 78, suggesting the stock may be overbought.
Source: Exchange filing, Bloomberg
CG Power Slips The Most In Over Two Years
Shares of CG Power & Industrial Solutions Ltd. fell nearly 17%, the most in more than two years after the company reported a YoY decline in net profit for the quarter-ended March.
Trading volume on the stock is more than thrice the 30-day average.
Source: Bloomberg, Exchange filing
Gokaldas Exports Shares' Surge 25% In Two Days Since Q4 Earnings
Net profit jumped 287% YoY, while revenue rose 58%.
Ebitda rose 118% YoY, while margin expanded to 12.98% compared to 9.4% YoY in Q4FY2020-21.
Trading volume on the stock is nearly 20 times the 30-day average.
Source: Bloomberg, Exchange Filing