Sensex, Nifty Log Worst Day In A Week To Fall For Fifth Session

• Yield on the 10-year bond rose 8bps to 7.29% before easing off those levels.

• 10-bond yield closed 3bps higher at 7.24%

Source: Bloomberg

• Rupee fell 0.50% to record low 77.63 against U.S. dollar.

• The Indian currency trimmed some of the losses to close at 77.43.

Source: Bloomberg

India's stock benchmarks logged the worst day in over a week, and extended losing streak for the fifth day.

Sensex fell below 53,000 and Nifty closed at nine-month low amid a fall in global equities after U.S. inflation data for April rose above estimates, triggering inflation concerns across the world.

The Sensex lost over 1,150 points (over 2.1%) to 52,930.31. The 30-stock gauge fell to an intraday low of 52,702.50. The Nifty also fell by similar magnitude to fall below 16,000 and close at a nine-month low.

The broader indices almost mirrored their larger peers. All the 19 sectoral indices compiled by BSE Ltd. fell with power index shedding over 4%.

The market breadth is skewed in the favour of bulls. About 748 stocks advanced, 2,613 declined and 86 remained unchanged.

• Wilson was until recently the CEO of Scoot, Singapore Airline’s low-cost subsidiary.

• Air India board has approved the appointment of Wilson.

• Wilson has 26 years of aviation industry expertise with both full service and low-cost airlines.

Source: Tata group

• Nifty PSU Bank index lost over 6%, during the session, the worst day since February 24, 2022 when Russia began invasion of Ukraine.

• Punjab National Bank fell 14%, the most in the 12-member gauge. All the constituents logged losses.

Source: Bloomberg

India and RBI determined to combat inflation and sustain macroeconomic stability, says April Economic review

• “If global inflation does not sufficiently decline despite aggressive monetary tightening sharply slowing growth, it points at the persistence of supply-demand imbalances that only coordinated actions of world leaders can resolve.”

• Inflation is expected to be elevated in 2022-23, while actions taken by the Government and RBI may reduce its duration.

• Summer crops promise good harvest and rural income expected to be boosted as agricultural exports registers YoY growth of 19.9 per cent in April

Source: DEA, Economic Review

• Sensex sheds nearly 1,400 points to an intraday low of 52,702.30. This is the steepest decline for the 30-stock gauge in over a week.

• Nifty fell 2.7% to 15,735.75, worst day in over two months since March 7.

Source: Bloomberg

• Yield on the 10-year bond eased off day's high to 7.20%.

• 10-year bond yield rose 8bps to 7.30% during the session.

Source: Bloomberg

India's stock benchmarks declined, amid a fall in global equities on rising inflation concerns as U.S. inflation reading for April rose above expectations. Weak demand outlook due to rising Covid cases in China as well as ongoing supply disruption in key commodities due to Russia's invasion of Ukraine threaten to sap sentiment further.

The Sensex fell over 1.8% to 53,095.83. The 30-stock gauge briefly fell below 53,000. The Nifty also declined by similar magnitude to 15,853.20. Barring Asian Paints and four information technology stocks, all the other 45 stocks in the 50-stock gauge declined. The information technology stocks' advance comes as Rupee fell to a fresh record low against the dollar on Thursday.

The broader indices almost mirrored their larger peers. All the 19 sectoral indices compiled by BSE Ltd. declined with Metal, Utilities, Power indices losing over 3%.

The market breadth was skewed in the favour of bears. About 666 stocks advanced, 2,597 declined and 89 remained unchanged.

Shares of Hindalco fell over 6.6%, the steepest intraday decline in nearly six months to a nine-month low. The company announced the financial results for the quarter-ended March of its wholly owned subsidiary Novelis, post market hours on Wednesday.

Analysts termed the termed 'in-line, but weak' as energy crisis and supply snags hurt Novelis Ebitda. Jefferies downgrade the stock and slashed the target from Rs 700 to Rs 475 citing that the company's investment thesis is being 'clouded' by weakening global metal demand outlook, sharp fall in aluminum prices and rising capex for Novelis.

Twin Impact: U.S. Federal Reserve's Rate Hike & Lockdown Due To Covid In China

Analysts also caution that the disruption of demand due to economic slowdown in China, where cases have also rises leading to lockdown, could add to the impact of the U.S. Federal Reserve's rate hike.

Trading volume on the stock is more than twice the 30-day average. The relative strength index is at 14, suggesting the stock may be oversold. Of the 25 analysts tracking the company, 21 maintain 'buy', three suggest 'hold' and one recommends 'sell'. The return potential of the stock is 68.7%.

Source: Exchange filing, Bloomberg, Brokerage notes

• The petitions are challenging the amendments to LIC Act for the IPO through Finance Act and conversion of LIC from mutual benefit society to a joint stock company.

• The court said no case for interim relief was made out.

Have set aside loans worth Rs 8,000 crore for transfer to National Asset Reconstruction Company, says AK Goel, MD & CEO, Punjab National Bank

• Will be transferring Rs 2,700 crore worth loans in the first phase.

• They have already started working on due diligence

• We should see the first phase of loans being transferred this quarter

Not looking to monetise our stake in PNB Housing Finance at this stage, says AK Goel, MD & CEO, Punjab National Bank

• The housing finance company has announced that it will be going for a rights issue of Rs 2,500 crore

• We have taken permission from our board to participate

• Depending on the regulatory approvals, we will be participating

Source: PNB conference call

Shares of Birla Corp fell over 6.8%, the steepest intraday decline in over three months to a 52-week low of Rs 893.6 after the company reported YoY decline in net profit and Ebitda for the quarter-ended March post market hours on Wednesday.

Q4 FY22 (Consolidated, YoY)

• Revenue up 6.17% at Rs 2,264.21 crore

• EBITDA fell 29.5% at Rs 276.68 crore

• EBITDA margin 12.22% vs 18.38%

• Net profit fell 55.45% at Rs 111.08 crore

• Recommended dividend of Rs 10 per share

Trading volume on the stock is 2.5 times the 30-day average. The relative strength index of the stock is 24, suggesting that the stock may be oversold.

Of the 22 analysts tracking the company, 21 maintain 'buy' and one suggests 'hold'. The return potential of the stock is 64.6%.

Source: Exchange filing, Bloomberg

Shares of Punjab National Bank fell 10%, the most in over 10 weeks to a 52-week low, after the lender reported net income for the quarter-ended March below average analyst estimate, post market hours on Wednesday.

• About 2.41 million shares of PNB changed hands in two large trades.

• Details of buyers, sellers are not known immediately.

• The relative strength index of the stock is 16, suggesting it may be oversold. Trading volume is over 13-times the 30-day average.

• Of the 20 analysts tracking the bank, five maintain 'buy', seven suggest 'hold' and eight recommend 'sell'. The return potential of the stock is 39.9%.

Source: Exchange filing, Bloomberg

India's stock benchmarks logged a steep decline on Thursday, amid decline in global equities. The fall comes as U.S. inflation surged above expectations in April, which further sapped sentiment.

The S&P BSE Sensex fell 1.5% (over 800 points) to 53,285.42. The NSE Nifty 50 declined by similar magnitude to 15,912.45. Barring Power Grid, all the other 49 stocks constituting the 50-stock gauge logged losses.

The broader indices underperformed their larger peers, with the S&P BSE MidCap losing 1.7% and S&P BSE SmallCap shedding 1.9%. All the 19 sectoral indices compiled by BSE Ltd. declined, with S&P BSE Basic Materials, Industrials, Telecom, Metals, Auto indices falling 2%.

The market breadth was skewed in the favour of bears. About 449 stocks advanced, 2,183 declined and 72 remained unchanged.

• Rupee falls 0.43% to record low 77.58 against the dollar.

Source: Bloomberg

• Construction firm JMC Projects won new orders of Rs 2,348 crore, including water supply projects in India worth Rs 2,193 crore and Building & Factories Projects in India worth Rs 155 crore.

Source: Exchange filing

Kalpataru Power Transmission and its global subsidiaries have secured new orders worth Rs 2,126 crore.

The orders include

• Orders from India and Africa in the Transmission & Distribution business of Rs 1,569 crore

• International subsidiary's T&D project wins in Europe and Brazil worth Rs 388 crore

• Oil and Gas pipeline projects in India and Middle East worth Rs 169 crore

Source: Exchange filing

• Larsen & Toubro

• Tata Motors

• Siemens

• Tube Investments

• Apollo Tyres

• CreditAccess Grameen

• Anupam Rasayan

• Caplin Point

• Greaves Cotton

• Honeywell Automation

• Mindspace Business Parks REIT

• Gujarat State Petronet

• Orchid Pharma

• RBL Bank

• Ujjivan Small Finance Bank

• Welspun Enterprises

• Adani Enterprises: The company has incorporated a wholly owned subsidiary Kutch Fertilizers to carry out business of manufacturing and trading of fertilizers of all kinds and other allied items required for agricultural.

• Hindalco Industries: The company’s wholly owned subsidiary Novelis Inc. will invest $2.5 billion to build a new low-carbon recycling and rolling plant in Bay Minette, Alabama, USA. The facility will have an initial 600 kilotonnes of finished aluminum goods capacity per year.

• Macrotech Developers: The company announced partnership with Bain Capital and Ivanhoé Cambridge to develop a green digital infrastructure platform. The platform will jointly invest $1 billion to create 30 million sq. ft. of operating assets in India. Each of the partners have 33% equity interest in the entity.

• Power Grid: The company has acquired Khetri-Narela Transmission for Rs 22.5 crore.

• KRBL: The company has been granted relief for income tax demand of Rs 97.88 crore and dismissed all the appeals for income tax demand of Rs. 1,170.36 crores.

• Imagicaaworld: The company approved preferential issue as part of the resolution plan agreed by the lenders under the RBI Prudential Framework. Malpani Parks is the anchor investor for the plan.

Punjab National Bank Q4 FY22 (Standalone)

• Net interest income up 5% at Rs 7,304.13 crore Vs Rs 6,956.83 crore (YoY)

• Net profit fell 66% at Rs 201.57 crore Vs Rs 586.33 crore (YoY)

• GNPA 11.78% Vs 12.88% (QoQ)

• NNPA 4.8% Vs 4.9% (QoQ)

Indian Bank Q4 FY22 (Standalone)

• Net interest income up 28% at Rs 4,255.16 crore Vs Rs 3,334.33 crore (YoY)

• Net profit fell 42% at Rs 984.25 crore Vs Rs 1,708.85 crore (YoY)

• GNPA 8.47% Vs 9.13% (QoQ)

• NNPA 2.27% Vs 2.72% (QoQ)

• Recommended dividend of Rs 6.5 per share of face value of Rs 10 each

• Approved raising equity capital of the bank upto Rs 4,000 crore (including premium) through various modes including QIP /FPO /Rights Issue etc.

Cholamandalam Financial Holdings Q4 FY22 (Consolidated, QoQ)

• Revenue up 0.43% at Rs 3742.57 crore Vs Rs 3726.38 crore

• EBIT up 12.32% at Rs 1,985.52 crore Vs Rs 1767.66 crore

• EBIT margin 53.05% Vs 47.44%

• Net profit up26.36% at Rs 686.73 crore Vs Rs 543.46 crore

• Recommended dividend of Rs 0.55 per share of face value of Rs 1 each.

Birla Corporation Q4 FY22 (Consolidated, YoY)

• Revenue up 6.17% at Rs 2,264.21 crore Vs Rs 2,132.61 crore

• EBITDA fell 29.5% at Rs 276.68 crore Vs Rs 392.02 crore

• EBITDA margin 12.22% Vs 18.38%

• Net profit fell 55.45% at Rs 111.08 crore Vs Rs 249.33 crore

• Recommended dividend of Rs 10 per share

SKF India Q4 FY22 (Consolidated, YoY)

• Revenue up 22.6% at Rs 1039.01 crore Vs Rs 847.53 crore

• EBITDA up 7.55% at Rs 159.44 crore Vs Rs 148.25 crore

• EBITDA margin 15.35% Vs 17.5%

• Net profit up 4.45% at Rs 109.48 crore Vs Rs 104.83 crore

• Recommended final dividend of Rs 14.5 per share.

• Appointed Ashish Saraf as Chief Financial Officer

Petronet LNG Q4 FY22 (Consolidated, YoY)

• Revenue up 47.33% at Rs 11,160.37 crore Vs Rs 7,575.32 crore

• EBITDA up 7.11% at Rs 1,168.63 crore Vs Rs 1,091.09 crore

• EBITDA margin 10.47% Vs 14.4%

• Net profit up 24% at Rs 790.98 crore Vs Rs 637.92 crore

• Recommended final dividend of Rs 4.5 per share of face value of Rs 10 each

Asian stocks declined on Thursday after U.S. inflation surged above expectations at 8.3%, strengthening the case for aggressive monetary tightening.

Shares fell in Japan, Australia and South Korea. U.S. futures slid after the S&P 500 fell to a 15-month low and the Nasdaq 100 shed over 3%.

The Singapore-traded SGX Nifty, an early barometer of India's benchmark Nifty 50, fell over 1% to 15,991 points as of 6:40 a.m.

Russia’s war in Ukraine and China’s Covid lockdowns are adding to supply shortages and soaring costs. Nymex crude was little changed near $105 per barrel. Elsewhere, Bitcoin tumbled below $30,000.