Sensex, Nifty Log Losses As Steep Slide In Wall Street Spurs Slump

• 10-year bond yield fell 4bps to 7.31% during the session

Source: Bloomberg

• Indian currency depreciated 0.20% to 77.74 during the session. Rupee has fallen for the last five sessions.

Source: Bloomberg

India's stock benchmarks logged one of their worst days of 2022, as markets tumbled after a steep fall in Wall Street caused ripple effects in global equities.

This is the second day in which the markets have fallen in a row.

The Sensex lost 2.61% (about 1,416 points) to 52,792.23. The Nifty fell by similar magnitude to 15,809.40. The move was the biggest since falling 4.8% on Feb. 24, and is the fourth biggest in 2022 so far. Infosys led the decline, losing 5.4%. Wipro Ltd. fell 6.3%, the most, to a 52-week low. Today, 47 of 50 shares fell, while 3 rose

The S&P BSE MidCap almost mirrored Sensex and Nifty while S&P BSE SmallCap slightly underperformed its larger peering, shedding 2.3%.

All the 19 sectoral indices declined with S&P BSE Information Technology and Metal falling the most.

The market breadth was skewed in the favour of bears. About 857 stocks advanced, 2,469 declined and 121 remained unchanged.

(A sentence stating that this was the second worst day in 2022 for the stock benchmarks, has been updated)

Shares of Bosch India fell over 5.5%, the most in 11 weeks despite reporting net income above estimate for quarter-ended March.

The company's net income, Ebitda and margin declined on a YoY basis

Q4FY2021-22 (Consolidated, YoY)

• Net income at Rs 350.5 crore Vs Rs 482 crore (Bloomberg Consensus Estimate: Rs 346 crore)

• Revenue at Rs 3,311 crore Vs Rs 3,215.9 crore (Estimate: Rs 3,360 crore)

• Ebitda at Rs 435.3 crore Vs Rs 619.1 crore

• Ebitda margin at 13.15% Vs 19.25%

• Recommended a dividend of Rs 110 per equity share.

• Also recommended a dividend of Rs 100 per share to commemorate 100 years of Bosch in India

Trading volume is 2.6 times the 30-day average volume.

Source: Exchange filing, Bloomberg

• Yield on the 10-year bond fell 4bps to 7.32% during the session.

• Since RBI announced a surprise rate hike on May 4, 10-year bond yield has closed above 7.2% in all the 11 sessions.

• Yield rose to 7.49% on May 9, highest since 2019.

Source: Bloomberg

• Indian currency depreciated 0.2% to 77.74, during the session.

• The Rupee hit a record low 77.80 on May 17.

Source: Bloomberg

Shares of Indraprastha Gas fell over 6.3%, the steepest decline in nearly three weeks.

The company reported 9.4% YoY growth in net income for the quarter-ended March, post market hours on Wednesday.

Q4 FY22 (Consolidated, YoY)

• Revenue up 8.66% at Rs 2,649.77 crore

• EBITDA up 6.57% at Rs 500.46 crore

• EBITDA margin 18.89% vs 19.26%

• Net profit up 15% at Rs 430.93 crore

Most analysts reiterated 'buy' after the earnings, but flagged multiple headwinds for the company, such as rising APM gas prices and shortfall, CNG economics and demand outlook amid EV-led developments.

Trading volume is twice the 30-day average volume. Share price crossed below 50-day simple moving average, indicating potential downward price momentum.

Of the 34 analysts tracking the company, 26 maintain 'buy', four suggest 'hold' and four recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 30.5%.

Source: Exchange filing, Brokerage notes, Bloomberg

Shares of Dr. Reddy's Laboratories rose after the company reported Ebitda for the fourth quarter that beat the average analyst estimate. Trading volume on the stock is 2.6 times the 30-day average.

Q4 FY2022 (Consolidated, YoY)

• Revenue up 15% at Rs 5,475 crore Vs Rs 4,768 crore (Bloomberg Consensus Estimate : Rs 5,154 crore)

• Net profit down 83% to Rs 97 crore Vs Rs 557 crore (Estimate: Rs 640 crore Profit)

• EBITDA up 13% to Rs 1,193 crore from Rs 1,055 crore (Estimate : Rs 1,136 crore Profit)

• Margins at 21.8% Vs 22.1% (Estimate : 22%)

• EPS at Rs 5.84 per share Vs Rs 33.61 (Estimate : Rs 39.03)

• Recommended final dividend of Rs 30 per share of face value Rs 5 each

Of the 44 analysts tracking the company, 38 maintain 'buy', five suggest 'hold' and one recommends 'sell'. The return potential of the stock is 28%.

Source: Exchange filing, Bloomberg

Shares of V-Guard Industries erased intraday losses after the company reported net income for the quarter-ended March that beat the average analyst estimate.

Q4FY2021-22 (Standalone, YoY)

• Net profit at Rs 90.60 crore Vs Rs 68.34 crore (Bloomberg Consensus Estimate: Rs 65.16 crore)

• Revenue at Rs 1,050.27 crore Vs Rs 849.1 crore (Estimate: Rs 974 crore)

• Ebitda at Rs 110.82 crore Vs Rs 109.93 crore (Estimate: Rs 96.6 crore)

• Ebitda margin at 10.55% Vs 12.95%

• Recommended a dividend of Rs 1.30

The trading volume on the stock is nearly twice the 30-day average. Of the 23 analysts tracking the company, 16 maintain 'buy', five suggest 'hold' and two recommend 'sell'. The return potential of the stock is 26.1%.

Source: Exchange filing, Bloomberg

India's stock benchmarks fell over 2%, dragged by losses in information technology and metal stocks. This is the worst day for the Sensex and Nifty in a week. The decline comes after a steep sell-off in Wall Street with Nasdaq losing over 5%.

The Sensex lost 2.33% (over 1,260 points) to 52,943.39. The Nifty declined by similar magnitude to 15,859.70. Barring ITC Ltd., Dr. Reddy's and Eicher Motors, all the other 47 stocks in the 50 stock gauge logged losses.

The broader indices almost mirrored their larger peers. All the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Information Technology, Teck and Metal falling over 4%.

The market breadth was skewed in the favour of bears. About 733 stocks advanced, 2,448 declined and 118 remained unchanged.

In light of RBI's new card storage guidelines effective June 1, credit or debt cards can no longer be used to pay for subscription on Apple app store or other services

• Apple asks India users to link their UPI ID or netbanking information for payments

• Customers may also load Apple ID balance for payments

Source: Apple email to customers

Shares of JK Lakshmi Cement rose 14%, the most in nearly four months after the company reported net income for the quarter-ended March that beat average analyst estimate.

JK Lakshmi Cement Q4 FY22 (Consolidated, YoY)

• Revenue up 12.32% at Rs 1,599.83 crore

• EBITDA up 3.7% at Rs 324.68 crore

• EBITDA margin at 20.29% vs 21.98%

• Net profit up 20.1% at Rs 183.73 crore

• Recommended dividend of Rs 5 per share

Trading volume is 53 times the 30-day average.

Motilal Oswal says that continuous improvement in operational efficiencies and energy cost, better product mix and higher volume led to profitability. Of the 25 analysts tracking the company, 22 maintain 'buy', one recommends 'hold' and two suggest 'sell'. The return potential of the stock is nearly 37.1%.

Source: Exchange filing, Brokerage note, Bloomberg

The IPO subscribed 0.30 times or 30% as of 11 a.m. on May 19.

• Institutional investors: 0 times.

• Non-institutional investors: 0.07 times.

• Retail investors: 0.57 times.

Source: BSE, NSE

The IPO subscribed 0.57 times or 57% as of 11 a.m. on May 19.

• Institutional investors: 0 times.

• Non-institutional investors: 0.25 times.

• Retail investors: 1.05 times.

Source: BSE, NSE

• Shares of HDFC Bank lost over 2.4% to a 52-week low of Rs 1,282.1 apiece.

• The stock touched Rs 1,722.1 apiece, in a vicinity of record high of Rs 1,725, on April 4, the day when HDFC Bank announced merger plans with HDFC.

• Since April 4, the stock has fallen 22%, compared to 12% loss for NSE Nifty 50 index

Source: Bloomberg

Volkswagen and Mahindra & Mahindra signed partnering agreement. The two firms will collaborate on MEB electric components such as electric motors, battery system components and battery cells.

• The agreement evaluates the scope of the collaboration and indicates binding rules for the evaluation phase as well as the non-binding scope of supply.

• The two firms aim to conclude the binding supply contract by end of 2022.

Source: Exchange filing

• NSE Nifty IT index lost over 4.25%, the steepest fall in a month.

• All 10 constituents decline. Mphasis fell nearly 6% while L&T Technology Services shed 5%.

• The decline in information technology stocks follows weakness in technology firms in the U.S. On Wednesday, the Nasdaq 100 index lost over 5%.

Source: Bloomberg

Shares of Manappuram Finance slid over 12% to a two-year low. The stock has fallen most in a day in over three months.

• The decline comes after the company reported net income below analyst estimate, for the quarter-ended March.

• Trading volume is nearly 13 times the 30-day average. The relative strength index is at 26, suggesting that the stock may be oversold.

• Of the 18 analysts tracking the company, 17 maintain 'buy' and one suggests 'hold' The return potential on the stock is 53.9%.

Source: Exchange filing, Bloomberg

• Indian currency fell 0.20% against dollar to 77.74.

• Rupee depreciated to a record low 77.80 on Tuesday.

Source: Bloomberg

Shares of InterGlobe Aviation fell over 7%, the worst day in over two months. The company, which operates the IndiGo airline appointed KLM Royal Dutch Airlines' Pieter Elbers as its CEO, effective on or before October 1.

• The incumbent Ronojoy Dutta has decided to retire on September 30, according to a company statement.

Source: Exchange filing, Bloomberg

Shares of Lupin fell 9%, the worst fall in at least a year, to a 52-week low.

• The company reported a surprise loss in fourth quarter due to higher input and freight costs, and impairment, post market hours on Thursday.

• Trading volume is nearly 15 times the 30-day average. The relative strength index of the stock is at 24, suggesting it may be oversold.

Source: Exchange filing, Bloomberg

Shares of ITC rose 3% after most analysts reiterated 'buy' after Q4 results. It is the only stock in the Nifty 50 index that is trading with gains, in a weak market.

• Analysts expect margins in cigarette business to improve. Absence of tax hike on cigarette in the union budget could aid in sustaining volume growth. Analysts also anticipate continued momentum in agri and paper business.

• Of the 35 analysts tracking the company, 28 maintain 'buy' and seven suggest 'hold' The return potential on the stock is 12.8%.

Source: Exchange filing, Bloomberg, Brokerage note.

India's stock benchmarks declined, dragged by loses across sectors. Metals, information technology, power, realty stocks fell the most. The fall comes amid decline in global equities after S&P 500 logged its worst day in almost two years.

The S&P BSE Sensex fell 2% to 53,117.25. The NSE Nifty 50 declined by similar magnitude to 15,913.20.

The broader indices almost mirrored their larger peers. All 19 sectoral indices compiled by BSE Ltd. logged losses.

The market breadth is skewed in the favour of bears. About 401 stocks advanced, 1,985 declined and 56 remained unchanged.

• Godrej Consumer Products

• Dr. Reddy’s

• Gland Pharma

• Hindustan Petroleum Corporation

• Krishna Institute of Medical Sciences

• Endurance Technologies

• CONCOR

• Chambal Fertilizers and Chemicals

• Bosch

• Ashok Leyland

• Alkyl Amines Chemicals

• Rossari Biotech

• Prince Pipes and Fittings

• Man Infraconstruction

ITC Q4 FY22 (Consolidated, YoY)

• Revenue up 15% at Rs 17,754.02 crore

• EBITDA up 15% to Rs 5,599.3 crore

• EBITDA margins at 31.5% vs 31.6%

• Net profit up 12% to Rs 4,195.69 crore

Also Read: ITC Q4 Results: Profit Up 12%, Cost Pressures Persist

Lupin Q4 FY22 (Consolidated, YoY)

• Revenue up 3% at Rs 3,883 crore

• Net loss at Rs 518 crore vs net profit of Rs 460 crore

• EBITDA fell 68% to Rs 228 crore vs Rs 708 crore

• EBITDA margin at 5.9% vs 18.7%

• EPS at Rs -11.4 per share vs Rs 10.15

Also Read: Lupin Posts Surprise Loss in Q4 As Costs Bite

Pidilite Industries Q4 FY22 (Consolidated, YoY)

• Revenue up 12.15% at Rs 2,507.1 crore

• EBITDA down 12.96% at Rs 401.08 crore

• EBITDA margin at 16% vs 20.61%

• Net profit down 16.93% at Rs 254.35 crore

• Recommended dividend of Rs 10 per share

Indraprastha Gas Q4 FY22 (Consolidated, YoY)

• Revenue up 8.66% at Rs 2,649.77 crore

• EBITDA up 6.57% at Rs 500.46 crore

• EBITDA margin 18.89% vs 19.26%

• Net profit up 15% at Rs 430.93 crore

LIC Housing Finance Q4 FY22 (Consolidated, QoQ)

• Revenue up 5.2% at Rs 5,327.87 crore

• EBIT up 7.95% at Rs 4,856.57 crore

• EBIT margin at 91.15% vs 88.83%

• Net profit up 44.4% at Rs 1,113.68 crore

• Recommended dividend of Rs 8.5 per share

Granules India Q4 FY22 (Consolidated, YoY)

• Revenue up 28.86% at Rs 1,029.97 crore

• EBITDA down 4.6% at Rs 192.70 crore

• EBITDA margin at 18.71% Vs 25.27%

• Net profit down 13% at Rs 111 crore

• Recommended final dividend of Rs 0.75 per share

Manappuram Finance Q4 FY22 (Consolidated, QoQ)

• Revenue down 0.21% at Rs 1,481.35 crore

• EBIT down 2.11% at Rs 838.81 crore

• EBIT margin at 56.62% vs 57.72%

• Net profit down 0.02% at Rs 260.95 crore

• Declared interim dividend of Rs 0.75 per share

Shyam Metalics Q4 FY22 (Consolidated, YoY)

• Revenue up 21.5% at Rs 2,856.77 crore

• EBITDA up 5.8% at Rs 663.12 crore

• EBITDA margin at 23.2% vs 26.6%

• Net profit up 11.19% at Rs 430.86 crore

• Recommended final dividend of Rs 2.7 per share

• Approved fundraising of Rs 3,000 crore

JK Lakshmi Cement Q4 FY22 (Consolidated, YoY)

• Revenue up 12.32% at Rs 1,599.83 crore

• EBITDA up 3.7% at Rs 324.68 crore

• EBITDA margin at 20.29% vs 21.98%

• Net profit up 20.1% at Rs 183.73 crore

• Recommended dividend of Rs 5 per share

Ratnamani Metals & Tubes Q4 FY22 (Consolidated, YoY)

• Revenue up 40% at Rs 974.06 crore

• EBITDA up 6.11% at Rs 168.53 crore

• EBITDA margin at 17.30% Vs 22.82%

• Net profit up 2.02% at Rs 111.63 crore

• Recommended dividend of Rs 14 per share

• Approved bonus issue in the ratio of 1:2

Sandur Manganese & Iron Ores Q4 FY22 (Consolidated, YoY)

• Revenue up 100% at Rs 716.24 crore

• EBITDA up 64% at Rs 222.03 crore

• EBITDA margin at 31% vs 37.65%

• Net profit up 232% at Rs 235.52 crore