Sensex, Nifty Log Losses For Third Day Dragged By Metals

10-year bond yield fell 17bps to 7.30%.

• This is the first time the yield on the 10-year bond closed below 7.37% in five sessions.

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

Source: Bloomberg

• The Indian currency appreciated 0.34% to 77.20 during the session. Rupee trimmed some of the gains to close at 77.32.

• Rupee hit a record low of 77.53 on Monday

Source: Bloomberg

India's stock benchmarks declined, dragged by losses in metals and power stocks, in a volatile session. This the third successive session in which the markets have logged losses.

The Sensex fell 0.19% (over 100 points) to 54,364.85. The 30-stock gauge rose to an intraday high of 54,857.02 before reversing gains. The Nifty lost 0.38% to close at 16,240.05.

The broader indices underperformed their larger peers with S&P BSE MidCap and SmallCap shedding 2%. Sixteen of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Metal losing 5.6%.

The market breadth was skewed in the favour of bears. About 880 stocks advanced, 2,474 declined and 133 remained unchanged.

APRIL MUTUAL FUND DATA

Equity mutual funds see net inflow of Rs 15,890.3 crore in April compared with inflow of Rs 28,463.4 crore in March.

• Multi-cap funds: Inflow of Rs 1,340.3 crore vs inflow of Rs 9,694.5 crore in March

• Large-cap funds: Inflow of Rs 1,258.9 crore vs inflow of Rs 3,052.2 crore in March

• Mid-cap funds: Inflow of Rs 1,549.7 crore vs inflow of Rs 2,193.1 crore in March

• Small-cap funds: Inflow of Rs 1,716.6 crore vs inflow of Rs 1,695.6 crore in March

• Industry posts total net inflow of Rs 72,846.8 crore versus an outflow of Rs 69,883 crore in March.

• Overnight funds: Inflow of Rs 4,128 crore vs outflow of Rs 12,852.1 crore in March.

• Liquid funds: Inflow of Rs 28,731 crore vs outflow of Rs 44,603.7 crore in March.

• Money market funds: Inflow of Rs 16,193.7 crore vs outflow of Rs 5,486.7 crore in March.

• Credit risk funds: Outflow of Rs 283.1 crore vs outflow of Rs 398.5 crore in March.

• Industry posts total net inflow of Rs 72,846.8 crore versus an outflow of Rs 69,883 crore in March.

• Average AUM: Rs 38.88 lakh crore in April vs Rs 37.7 lakh crore in March.

• Net AUM: Rs 38.03 lakh crore vs Rs 37.56 lakh crore in March

Source: AMFI

Shares of Ajanta Pharma fell over 4.9%, the steepest intraday decline in over 10 weeks, after the company reported net income that missed analyst estimate for the quarter-ended March. Trading volume is nearly twice the 30-day average.

Q4 FY2022 (Consolidated, YoY)

• Revenue up 15% at Rs 870 crore Vs Rs 757 crore (Bloomberg consensus estimate : Rs 812 crore)

• Net profit down 5% at Rs 151 crore from Rs 159 crore (Estimate : Rs 163 crore Profit)

• EBITDA down 20% to Rs 207 crore from Rs 259 crore (Estimate : Rs 228 crore Profit)

• Margins at 23.7% Vs 34.3% (Estimate : 28.1%)

• EPS at Rs 17.7 per share vs Rs 18.4 per share

• Approved bonus issue ; 1 new share of Rs 2 each for every 2 shares held

Shares of Polycab India erased lossed and rose 2.5% after reporting net income that beat analyst estimate for the quarter-ended March.

Q4FY2021-22 (Consolidated, YoY)

• Net profit at Rs 322.15 crore Vs Rs 269.31 crore

• Revenue at Rs 3969.98 crore Vs Rs 2,942.74 crore

• Ebitda at Rs 475.97 Vs Rs 404.76 crore

• Margin at 11.99% Vs 13.75%

• The company recommended a dividend of Rs 14 per equity share of face value of Rs 10 each for FY2021-22, subject to shareholders' approval.

Of the 25 analysts tracking the company, 17 maintain 'buy', six recommend 'hold' and two suggest 'sell'. The return potential of the stock is 8.6%.

Source: Exchange filing, Bloomberg

Shares of Asian Paints traded with nearly 3% gains despite the company reporting net income for the quarter-ended March that missed the analyst estimate.

Q4FY2022 (Consolidated, YoY)

• Revenue up 19% at Rs 7,892.67 crore Vs Rs 6,651.43 crore (Bloomberg consensus estimate: Rs 7,809.64 crore)

• Net profit flat at Rs 874.05 crore from Rs 868.89 crore (Estimate: Rs 928.94 crore)

• EBITDA up 9% to Rs 1,443.29 crore Vs Rs 1318.26 crore

• Margins at 18.3% Vs 19.8%

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

Source: Exchange filing, Bloomberg

Shares of MRF rose nearly 3.5%, the most in two weeks, after the company reported net income above estimate, for the quarter-ended March.

Q4FY2021-22 (Standalone, YoY)

• Net profit down 51% at Rs 156.78 crore Vs Rs 317.26 crore (Bloomberg Consensus Estimate: Rs 147 crore)

• Revenue up 10% at Rs 5,200.29 crore Vs Rs 4,737.68 crore (Estimate: Rs 4,990 crore)

• Ebitda at Rs 527.53 crore Vs Rs 745.57 crore

• Ebitda margin at 10.14% Vs 15.74%

• MRF says raw material cost increases are at 'unprecedented level', but adds that market conditions are not favourable to absorb price increases.

Trading volume is 2.5 times the 30-day average volume.

Source: Exchange filing, Bloomberg

India's stock benchmarks advanced, after swinging between gains and losses for most part of the session so far, aided by gains in auto, banking and fmcg stocks. The volatility in crude prices, inflation concerns, earnings and growth fears continue to be the key variables impacting the markets.

The Sensex gained 0.5% (over 250 points) to 54,736.38. The 30-stock gauge lost 200 points to an intraday low of 54,269.59. The Nifty also advanced by similar magnitude to 16,366.85. Eicher Motors gained the most among the Nifty 50 stocks, adding over 3.3% while index heavyweights HDFC and HDFC Bank advanced.

The broader indices underperformed their larger peers as both the smallcap and midcap indices logged losses. Twelve of the 19 sectoral indices compiled by BSE Ltd. declined with Metal index falling over 25%. On the flip side, the fmcg, auto and banking indices rose 1%.

The market breadth was skewed slightly in the favour of bears. About 1,530 stocks advanced, 1,684 declined and 147 remained unchanged.

Bharatpe board says it has taken necessary steps to claw back restricted shares owned by former founder

• Bharatpe board says it will take all steps to enforce its rights under the law.

• Bharatpe board implements measures to raise governance standards ahead of planned IPO.

• A new code of conduct for senior management and employees implemented.

• New vendor procurement policy put in place to mitigate any risk of employees indulging in suspicious transactions.

• Mazars India appointed to conduct regular internal audits.

Source: Bharatpe statement

Shares of Sun Pharma declined over 4.3%, the steepest decline in over eight months, after U.S. FDA issued a form-483, with 10 observations to the company after inspecting Halol facility.

• This comes after the U.S. drug regulator conducted Good Manufacturing Practices (GMP) inspection at Halol facility in Gujarat.

• Sun Pharma said it is preparing a response to the observations and will submit them in 15 business days.

• The company also said that it remained committed to address the observations.

• Of the 44 analysts tracking the company, 40 suggest 'buy', two recommend 'hold' and two maintain 'sell'. The return potential of the stock is 15.9%

Source: Exchange filing, Bloomberg

• Ramkrishna Forgings bagged a multi-year export order worth Rs 105 crore per year from a leading trailer manufacturer in the U.S.

• The order pertains to supply of trailers for trucks and buses in the U.S. The supplies are expected to commence from CY2023.

Source: Exchange Filing

Shares of Dixon Technologies fell over 7.2%, the most in a week to a 52-week low of Rs 3,547.3 apiece.

• Over the last six sessions, the company has shed over 17%. Shares declined in five of the last six sessions. On May 2, the company clarified that there is no impact on business due to ED's seizure of assets of Chinese firm Xiaomi.

• Xiaomi is one of the key customer of Dixon Tech in LED TV business.

• Trading volume is more than quadruple the 30-day average. The relative strength index of the stock is 29, suggesting it may be oversold.

• Of the 21 analysts tracking the company, 12 suggest 'buy', five recommend 'hold' and four maintain 'sell'. The consensus price of analysts tracked by Bloomberg implies an upside of 24.3%.

Source: Exchange filing, PTI, Bloomberg

Shares of Gujarat Narmada Valley Fertilizers & Chemical rose over 9.8%, the most in two months, after the company's net profit doubled YoY in quarter-ended March.

Q4 FY22 (Consolidated, YoY)

• Revenue up 60% at Rs 2,771.71 crore Vs Rs 1,733.03 crore

• EBITDA up 88.32% at Rs 885.88 crore Vs Rs 470.41 crore

• EBITDA margin 32% Vs 27%

• Net profit up 108% at Rs 643.26 crore Vs Rs 308.91 crore

The company also recommended dividend of Rs 10 per share of face value of Rs 10 each.

Source: Exchange filing, Bloomberg

Shares of agribusiness firm Godrej Agrovet rose over 7%, the most in over a week, after the company reported net income and revenue above estimates for the quarter-ended March, post market hours on Monday.

Godrej Agrovet Q4 FY22 (Consolidated, QoQ)

• Revenue up 0.11% at Rs 2,080.75 crore Vs Rs 2,078.49 crore (Bloomberg consensus estimate: Rs 1,917 crore)

• EBITDA up 24.27% at Rs 169.25 crore Vs Rs 136.19 crore

• EBITDA margin 8.13% Vs 6.55%

• Net profit up 124% at Rs 139.81 crore Vs Rs 62.39 crore (Estimate: Rs 81.46 crore).

• An exceptional item of Rs 17.28 crore was recognized in Q3 by subsidiary company Creamline Dairy on account of GST liability arising out of classification issue of flavored milk.

• Recommended final dividend of Rs 9.5 per share of face value of Rs 10 each

• Reappointed Balram S. Yadav as the Managing Director from September 1, 2022 upto April 30, 2025.

Trading volume was nearly five times the 30-day average

Motilal Oswal maintains 'buy' with the target price kept unchanged at Rs 692. The brokerage cites palm oil business and crop protection segment as key growth drivers for the company.

Of the nine analysts tracking the company, six maintain 'buy', one suggests 'hold' and two recommend 'sell'.

Source: Exchange filing, Motilal Oswal note, Bloomberg

• Indian currency rose 0.31% to 77.23 during the session.

• Rupee tumbled to a record low 77.53 on Monday.

Source: Bloomberg

• 10-year bond yield fell 12bps to 7.35% during the session.

• Bond yield fell after four days of advance.

• India has asked RBI to buy back government bonds or conduct open markets operations to cool yields, Reuters reported on Monday, citing a government source.

• The discussion with the RBI is at an advanced stage as current yields are not at comfortable levels, according to a government official.

• RBI and Finance Ministry did not respond to messages from Reuters seeking comment.

Source: Bloomberg

India's stock benchmarks opened higher, aided by gains in auto, realty and consumer discretionary stocks amid decline in global equities on rising concerns on inflation and strengthening dollar.

The S&P BSE Sensex rose 0.24% to 54,600.28. The NSE Nifty 50 advanced by similar magnitude to 16,347.70.

The broader indices outperformed their larger peers with S&P BSE MidCap gaining 0.8% and SmallCap rising over 1%. Barring metals, all the other 18 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Realty adding 1.65% and S&P BSE Auto adding 1.3%...

The market breadth was skewed in the favour of bulls. About 1,729 stocks advanced, 640 declined and 78 remained unchanged.

Cipla announces commercialisation of RT-Direct multiplex Covid-19 RT PCR Test kit in India..

• Cipla will distribute the RT Direct kits in India.

• The kit, validated by the ICMR, delivers results in just 45 minutes.

Source: Exchange filing

• Asian Paints

• Cipla

• Ajanta Pharma

• Cera Sanitaryware

• Chalet

• Avadh Sugar

• Gujarat Gas

• MRF

• Max Financial Services

• Kansai Nerolac Paints

• MGL

• Orient Electric

• Dishman Carbogen

• Kabra Extrusion Technik

• Polycab India

• Vodafone Idea

• Torrent Power

• Welspun India

• Zensar Technologies

• HCL Technologies: The company will acquire Bengaluru-based Quest Informatics, an aftermarket, Industry 4.0 and IoT company, for Rs 15 crore.

• Reliance Industries: The company through its subsidiary Reliance Retail has entered long term franchise agreement with Italian luxury lifestyle Tod’s S.p.A.

• Shipping Corporation of India: The company has approved modifications to the scheme of demerger of non-core assets into Shipping Corporation of India Land and Assets. The modifications are subject to approval of Ministry of Ports, Shipping and Waterways and DIPAM and will not impact the Share Entitlement ratio and other major terms and conditions, it said.

SRF Q4 FY22 (Consolidated, QoQ)

• Revenue up 6.08% at Rs 3,549.42 crore Vs Rs 3,345.87 crore

• EBITDA up 7.55% at Rs 948 crore Vs Rs 881.41 crore

• EBITDA margin 26.71% Vs 26.34%

• Net profit up 19.8% at Rs 605.65 crore Vs Rs 505.54 crore

• Approved capital expenditure of Rs 115 crore for dedicated facilities to produce intermediates for Agrochemicals in the New Plant Structure at Dahej.

Dalmia Bharat Q4 FY22 (Consolidated, YoY)

• Revenue up 7.27% at Rs 3,380 crore Vs Rs 3,151 crore

• EBITDA fell 11.43% at Rs 682 crore Vs Rs 770 crore

• EBITDA margin 20.18% Vs 24.44%

• Net profit fell 5.1% at Rs 595 crore Vs Rs 627 crore

• Declared final dividend of Rs 5 per share of face value of Rs 2 each.

Gujarat Narmada Valley Fertilizers & Chemicals Q4 FY22 (Consolidated, YoY)

• Revenue up 60% at Rs 2,771.71 crore Vs Rs 1,733.03 crore

• EBITDA up 88.32% at Rs 885.88 crore Vs Rs 470.41 crore

• EBITDA margin 32% Vs 27%

• Net profit up 108% at Rs 643.26 crore Vs Rs 308.91 crore

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

KEI Industries Q4 FY22 (Consolidated, YoY)

• Revenue up 43.76% at Rs 1,791.71 crore Vs Rs 1,246.3 crore

• EBITDA up 25% at Rs 171.82 crore Vs Rs 137.37 crore

• EBITDA margin 9.6% Vs 11%

• Net profit up 34.63% at Rs 115.98 crore Vs Rs 86.16 crore

Godrej Agrovet Q4 FY22 (Consolidated, QoQ)

• Revenue up 0.11% at Rs 2,080.75 crore Vs Rs 2,078.49 crore

• EBITDA up 24.27% at Rs 169.25 crore Vs Rs 136.19 crore

• EBITDA margin 8.13% Vs 6.55%

• Net profit up 124% at Rs 139.81 crore Vs Rs 62.39 crore. An exceptional item of Rs 17.28 crore was recognized in Q3 by subsidiary company Creamline Dairy on account of GST liability arising out of classification issue of flavored milk.

• Recommended final dividend of Rs 9.5 per share of face value of Rs 10 each

• Reappointed Balram S. Yadav as the Managing Director from September 1, 2022 up to April 30, 2025.