Sensex, Nifty Snap Five-Week Losing Streak Aided By RIL, Metals

• 10-year bond yield added 5bps to 7.37% during the session.

• The yield eased off to 7.36% at the close.

• Since May 4 when the RBI announced a surprise rate hike, the 10-year yield has closed above 7.20% in each of the 12 sessions.

Source: Bloomberg

• The Indian currency appreciated 0.31% to 77.49 during the session.

• Rupee trimmed some of the gains to close at 77.55.

Source: Bloomberg

India's stock benchmarks staged a recovery after Thursday's fall and logged gains for the first time in six weeks, aided by the surge in index heavyweight Reliance Industries and metal stocks. The five-week losing streak that ended on May 13 was the longest in two years.

This is also the best week for Sensex and Nifty in nine.

Barring Information Technology, all the other sectoral indices advanced for the week with metal, auto and fmcg stocks gaining the most.

On Friday, the Sensex added 1,534.16 points (about 2.91) to 54,326.39. The 30-stock gauge surged 1,604.20 points to an intraday high of 54,396.43. The Nifty also advanced by similar magnitude to 16,266.15. Dr. Reddy's was the top gainer on the 50-stock gauge, rising 8.13% while Reliance Industies led the gains, adding 5.83%. Sensex and Nifty logged the biggest single gains in over three months since February 15 on Friday.

The broader indices underperformed their larger peers, with both the MidCap and SmallCap measures rising nearly 2%. All the 19 sectoral indices compiled by BSE Ltd. advanced, with Realty gauge rising over 4%.

The market breadth was skewed in the favour of bulls. About 2,523 stocks rose, 828 fell and 115 remained unchanged.

HDFC Bank informs the exchanges that the total foreign shareholding in the company as of May 13, 2022 was 66.55% of its total issued and paid-up share capital.

• This includes the 20.98% of shareholding held by HDFC Ltd. and its subsidiaries - being promoters)

• The company has issued this clarification in response to queries from several investors seeking information on its aggregate foreign shareholding.

Source: Exchange filing

NTPC has successfully commissioned the second part capacity of 35 Mega Watt out of 92 Mega Watt Kayamkulam Floating Solar PV project at Kayamkulam, Kerala.

• The capacity is declared on commercial operation with effect from 6 a.m. on Thursday.

• The first part capacity of 22 Mega Watt has already been declared on commercial operation on March 31.

• The standalone installed and commercial capacity of NTPC now stands at 54,651.68 Mega Watt.

Source: Exchange Filing

• HDFC informs the exchanges that the total foreign shareholding in the company as of May 13, 2022 was 68.56% of its total issued and paid-up share capital.

• The company has issued this clarification in response to queries from several investors seeking information on its aggregate foreign shareholding.

Source: Exchange filing.

10-Year bond yield rises 5bps to 7.37% during the session.

• Yield on the 10-year bond closed above 7.2% in every session since the RBI announced a surprise rate hike on May 4.

• The 10-year bond yield rose to 7.49% on May 9, highest since 2019.

Source: Bloomberg

• Indian currency rose 0.31% to 77.49 during the session, before trimming the gains.

• Rupee hit a record low 77.80 on Tuesday.

Source: Bloomberg

Shares of JK Lakshmi Cement rose 20%, the most in nearly four months after the company reported net income for the quarter-ended March that beat average analyst estimate, on Wednesday.

• Since the earnings, the stock has added over 26%. Over the last two days, Prabhudas Lilladher and Centrum Broking upgraded the stock to 'buy'.

• Motilal Oswal said that continuous improvement in operational efficiencies and energy cost, better product mix and higher volume led to profitability, as it retained 'buy' and raised target.

• Of the 25 analysts tracking the company, 24 maintain 'buy' and one recommends 'sell. The overall consensus price of analysts tracked by Bloomberg implies an upside of 17.9%.

Source: Exchange filing, Bloomberg, Brokerage notes.

Q4 FY2022 (Consolidated, YoY)

• Revenue up 5% at Rs 3,864 crore Vs Rs 3,670 crore (Bloomberg consensus estimate : Rs 3,944 crore)

• Net profit down 41% to Rs 397 crore Vs Rs 679 crore (Estimate : Rs 516 crore)

• EBITDA down 16% to Rs 718 crore from Rs 850 crore (Estimate : Rs 823 crore)

• Margins at 18.6% Vs 23.1% (Estimate : 20.9%)

• EPS at Rs 3.88 per share Vs Rs 6.63 (Estimate : Rs 4.81)

• Recommended final dividend of Rs 2.5 per share of face value Re 1 each

Shares of Biocon Ltd. rose over 5.25%, the most in a month, after the company's subsidiary and Viatris announced that Abevmy (bBevacizumab) drug is available in Canada.

• The drug, co-developed by Biocon Biologics and Viatris, has been approved by Health Canada across four oncology indications.

• Of the 21 analysts tracking the company, 12 maintain 'buy', five suggest 'hold' and four recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 21.2%.

Source: Exchange filing, Bloomberg

Shares of Container Corp of India fell over 6.6%, worst decline in 17 months.

• The company reported net profit below analyst estimates for quarter-ended March, post market hours on Thursday. The company also recommended a dividend of Rs 3 per share for FY2021-22.

• Trading volume is more than thrice the 30-day average. Of the 35 analysts tracking the company, 27 maintain 'buy', seven suggest 'hold' and one recommends 'sell'. The return potential of the stock is 28.4%.

Source: Exchange filing, Bloomberg

India's stock benchmarks advanced and are on course for their first weekly gain in six weeks, aided by gains in metals, auto, banking, healthcare, energy and realty stocks.

The Sensex gained over 1,200 points (about 2.3%) to 54,003.51. The Nifty advanced by similar magnitude to 16,179.55. About 47 stocks in the 50-stock gauge rose while three declined.

The broader indices underperformed their larger peers, with the S&P BSE MidCap and SmallCap adding 1.5%. All 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Realty gaining over 3%.

The market breadth was skewed in the favour of bulls. About 2,457 stocks advanced, 759 declined and 139 remained unchanged.

Shares of Godrej Consumer Products Ltd. fell over 4% as analysts cut target after the company net income that missed estimate for the quarter-ended March.

• Analysts expect pressure to continue on margin in the near-term due to high input cost inflation.

• Trading volume is thrice the 30-day average. Of the 35 analysts tracking the company, 31 maintain 'buy', three suggest 'hold' and one recommends 'sell'. The return potential of the stock is 23.1%.

Source: Exchange filing, Brokerage note, Bloomberg

The Supreme Court has allowed the export of iron ore mined from Karnataka, noting that the situation has changed since the restrictions were imposed in 2013.

The Supreme Court added that export of iron ore is allowed subject to terms and conditions imposed by Government of India.

Shares of IRB Infrastructure Developers rose 8.8%, the most in four days, after the company received nod to begin work for widening a national highway passing through Punjab and Himachal Pradesh.

• The bid project cost is Rs 828 crore. The project will be completed in 730 days and company will have operating rights for 15 years from the date of completion.

• The project involves a grant of Rs 331 crore from NHAI, equity of Rs 124 crore from IRB Infra which has already raised loans worth Rs 373 crore from lenders.

• Trading volume is 2.4 times the 30-day average. Of the 11 analysts tracking the company, eight maintain 'buy', three suggest 'hold'. The return potential of the company is 29.8%.

Source: Exchange filing, Bloomberg

Shares of pipe maker Welspun Corp climbed over 10.3%, the most in seven weeks to more than a decade-high of Rs 230.45.

• The surge comes after the company announced winning the single largest order in its history for supply of piped valued at Rs 5,000 crore in the United States.

• The order pertains to the supply of 3,25,000 Mega Tonnes of large diameter coated pipes for transporting natural gas to Houston.

• The pipes will be produced from the company's plant at Little Rock.

• The order will be executed over a period of 12 months, starting H2FY2022-23.

• The order book of the company stands at 7,040,000 Mega Tonnes valued at Rs 10,500 crore.

• Trading volume is more than 11 times the 30-day average.

Source: Exchange Filing, Bloomberg

Ashok Leyland's shares added over 8%, the best day in 10 weeks after the company reported its Q4 results post market hours on Thursday.

• Analysts cited significantly lower operating costs and healthy realisations growth aided the Q4 earnings. They expect cyclical recovery in CVs, new launches in CNGs and volume recovery in bus segments to drive the company's growth.

• Trading volume is nearly six times the 30-day average volume. Share price crossed above the 200-day simple moving average, indicating potential upward price momentum.

• Of the 47 analysts tracking the company, 40 maintain 'buy', five suggest 'hold' and two recommend 'sell. The overall consensus price of analysts tracked by Bloomberg implies an upside of 16.7%.

Source: Exchange filing, Bloomberg, Brokerage notes

Shares of Hindustan Aeronautics surged 6%, the most in four days to a record Rs 1,787 apiece.

• The rise comes after the company announced that it was granted 'Type Certification of first Indigenous Light Transport civil passenger aircraft Hindustan 228-001' by DGCA.

• This is the first type certified fixed wing aircraft in India complying with the latest FAR 23 certification requirement.

• Trading volume on the stock is quadruple the 30-day average. The relative strength index is at 71, suggesting that the stock may be overbought.

• The stock is on a five-day winning streak in which it has gained 17%. All seven analysts tracking the company maintain 'buy'. The return potential of the stock is 9.1%.

Source: Exchange filing, Bloomberg

Shares of Prudent Corporate Advisory Services Ltd. listed at Rs 660 apiece on the BSE, a premium of 4.7% to its IPO price of Rs 630. The shares slipped below the IPO price to Rs 616.85 apiece in intraday trade.

Source: BSE

• Yield on the 10-year bond added 2bps to 7.35% during the session.

Source: Bloomberg

Shares of Equitas Small Finance Bank fell over 6.6%, the steepest decline in a month.

• The fall comes after the company accepted the resignation of MD and CEO PN Vasudevan.

• The company will form a search committee to identify a successor soon. Vasudevan would continue as the MD and CEO till the succession and transition process is completed.

Source: Exchange filing, Bloomberg

India's stock benchmarks recovered from yesterday's battering, amid global rebound in equities. Metal stocks aided the advance.

The S&P BSE Sensex added over 750 points (above 1.44%) to 53,551.34. The NSE Nifty 50 advanced by similar magnitude to 16,057.30.

The broader indices almost mirrored their larger peers. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal gaining over 3.5%.

The market breadth was skewed in the favour of bulls. About 1,964 stocks advanced, 277 declined and 57 remained unchanged.

Glenmark Pharmaceuticals' U.S. subsidiary received final approval by the U.S. FDA for Abiraterone Acetate tablets USP, 500 mg.

• The drug is a generic version of Zytiga tablets, 500 mg, of Janssen Biotech.

• The drug is used treat men with prostrate cancer that has spread to other parts of the body.

• According to IQVIA annual sales data for the period ending March 2022, Zytiga tablets, 500 mg achieved annual sales of $260.2 million.

• Glenmark has 1173 products in its portfolio, authorized for distribution in the U.S. It also has 49 ANDAs pending approval.

Source: Exchange filing

• The Indian Rupee could open stronger against the U.S. dollar tody supported by a fall in the greenback and easing bond yields.

• Rupee could open around 77.45-77.50 in initial trades compared with 77.73 on Thursday.

• Indian bond yields will likely trade in a small trading band as investors await fresh supply of debt at a weekly debt auction today.

Source: Reliance Securities note

• Prudent Corporate Advisory Services: Shares to list on the bourses today. The IPO was subscribed 1.22 times. The independent wealth management and a leading mutual fund distributor sold shares at Rs 595-630 apiece and sought to raise Rs 538 crore. The proceeds would go to selling shareholders.

• NTPC

• Indigo Paints

• Thermax

• IDFC

• Sobha

• Pfizer

• Nuvoco Vistas Corporation

• Metro Brands

• C.E. Infosystems

• Indiabulls Housing Finance

• JK Tyres and Industries

• Hindustan Foods

• Heidelberg Cement

• Amara Raja Batteries

• ZF Commercial Vehicle Control Systems

• Advanced Enzyme Technologies

• Biocon: The company’s subsidiary Biocon Biologics and Viatris Inc launched Abevmy, a biosimilar, in Canada.

• DishTV: The company will hold extraordinary general meeting on June 24.

• Wipro: The company launched Innovation Studio in Austin, Texas.

• Hindustan Aeronautics: The company was granted the Type certification of first Indigenous Light Transport civil passenger aircraft. Hindustan 228-201 aircraft is the first Type certified fixed wing aircraft in India complying with latest FAR 23 certification requirement

Godrej Consumer Products Q4 FY22 (Consolidated, YoY)

• Revenue up 7% at Rs 2915.82 crore Vs Rs 2,730.74 (Bloomberg Estimate: Rs 2,905.64)

• EBITDA fell 15% at Rs 467.58 crore Vs Rs 549 crore (Bloomberg Estimate: Rs 567.36 crore)

• EBITDA margin 16% Vs 20.1% (Bloomberg Estimate: 19.5%)

• Net profit fell 1% at Rs 363.24 crore Vs Rs 365.84 crore (Bloomberg Estimate: Rs 398.12 crore)

Gland Pharma Q4 FY22 (Consolidated, YoY)

• Revenue up 24% at Rs 1,103 crore Vs Rs 888 crore (Bloomberg estimate: Rs 1,089 crore)

• EBITDA up 6% to Rs 348 crore from Rs 328 crore (Bloomberg estimate: Rs 413 crore Profit)

• Margins at 31.6% Vs 36.9% (Bloomberg estimate: 37.9%)

• Net profit up 10% to Rs 286 crore Vs Rs 260 crore (Bloomberg estimate: Rs 297 crore)

Ashok Leyland Q4 FY22 (Consolidated, YoY)

• Revenue up 22% at Rs 9,926.97 crore Vs Rs 8,142.11 crore

• EBITDA up 17.8% at Rs 1,194.11 crore Vs Rs 1013.3 crore

• EBITDA margin 12.03% Vs 12.45%

• Net profit fell 60.22% at Rs 140.24 crore Vs Rs 352.56 crore. Exceptional loss on account of impairment of goodwill and assets was Rs 236.91 crore in Q4 FY22.

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

• Appointed Rajesh Sethuraman as Chief Executive Officer of ASEAN and Vijay Kannan as Head of Business Transformation and Digital.

Container Corporation of India Q4 FY22 (Consolidated, YoY)

• Revenue up 5.16% at Rs 2,057.56 crore Vs Rs 1,956.69 crore

• EBITDA up 112.53% at Rs 415.84 crore Vs Rs 195.66 crore

• EBITDA margin 20.21% Vs 10% (Bloomberg Estimate:

• Net profit up 900% at Rs 257.56 crore Vs Rs 25.76 crore

• Recommended final dividend of Rs 3 per share of face value of Rs 5 each

HPCL Q4 FY22 (Consolidated, YoY)

• Revenue up 30.4% at Rs 97,288.11 crore Vs Rs 74,605.76 crore (Bloomberg Estimate: Rs 1,12,700 crore)

• EBITDA fell 58.86% at Rs 1,825.53 crore Vs Rs 4,437.81 crore (Bloomberg Estimate: Rs 2,918.4 crore)

• EBITDA margin 1.74% Vs 5.22% (Bloomberg Estimate: 2.58%)

• Net profit fell 34% at Rs 2,018.45 crore Vs Rs 3,060.7 crore (Bloomberg Estimate: Rs 1,375.8 crore)

• Recommended final dividend of Rs 14 per share of face value of Rs 10 each

Krishna Institute of Medical Sciences Q4 FY22 (Consolidated, QoQ)

• Revenue fell 5.4% at Rs 372.33 crore Vs Rs 393.56 crore

• EBITDA fell 12.5% at Rs 113.56 crore Vs Rs 129.74 crore

• EBITDA margin 30.5% Vs 32.97%

• Net profit fell 0.6% at Rs 80.68 crore Vs Rs 81.17 crore

Endurance Technologies Q4 FY22 (Consolidated, QoQ)

• Revenue up 10.04% at Rs 2,078.79 crore Vs Rs 1,889.12 crore

• EBIT up 42.16% at Rs 159.01 crore Vs Rs 111.85 crore

• EBIT margin 7.65% Vs 5.92%

• Net profit up 44% at Rs 136.18 crore Vs Rs 94.63 crore

• Recommended dividend of Rs 6.25 per share of face value of Rs 10 each

Chambal Fertilisers & Chemicals Q4 FY22 (Consolidated, YoY)

• Revenue up 101.5% at Rs 3,307.37 crore Vs Rs 1640.76 crore

• EBITDA up 26.55% at Rs 361.43 crore Vs Rs 285.6 crore

• EBITDA margin 10.93% Vs 17.41%

• Net profit fell 45.62% at Rs 243.57 crore Vs Rs 447.89 crore

• Recommended final dividend of Rs 3 per share of face value of Rs 10 each

Prince Pipes and Fittings Q4 FY22 (Consolidated, YoY)

• Revenue up 18.37% at Rs 901.19 crore Vs Rs 761.35 crore

• EBITDA fell 4.29% at Rs 140.50 crore Vs Rs 146.79 crore

• EBITDA margin 15.6% Vs 19.28%

• Net profit fell 9.25% at Rs 88.23 crore Vs Rs 97.22 crore

• Recommended final dividend of Rs 2 per share of face value of Rs 10 each