Sensex, Nifty Snap Three-Day Losing Streak In May F&O Expiry Day

• Yield on the 10-year bond shed 3bps to 7.27% during the session, before erasing the losses.

Source: Bloomberg

• Indian currency depreciated 0.16% to 77.65 during the session. The Rupee pared losses to close at 77.58.

Source: Bloomberg

India's stock benchmarks snapped three day losing streak in a volatile session on May F&O expiry day, aided by gains in banking, metal and information technology stocks.

The Sensex added over 500 points (over 0.9%) to 54,252.53. The 30-stock gauge fell 0.6% to an intraday low of 53,425.25 and traded in a broad 900 point range. The Nifty advanced by similar magnitude to 16,170.15.

The Midcap index outperformed Sensex and Nifty while the Smallcap measure underperformed its larger peers. Barring the fmcg index, all the other 18 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal adding over 3.3%.

The market breadth was skewed in the favour of bulls. About 1,779 stocks advanced, 1,520 declined and 130 remained unchanged.

Q4FY2021-22 (Consolidated, YoY)

• Net income up 65% at Rs 190.52 crore Vs Rs 115.56 crore (Bloomberg consensus estimate: Rs 149 crore)

• Revenue up 26% at Rs 1,111.11 crore Vs Rs 880.77 crore (Estimate: Rs 1,061.72 crore)

• Ebitda up 57% at Rs 267.09 crore Vs Rs 169.81 crore (Estimate: Rs 217 crore)

• Ebitda margin at 24% Vs 19.30%

• Company approved a fourth interim dividend for FY2021-22 of Rs 70 per equity share.

• The record date fixed for payment of interim dividend is June 3, 2022. The date fixed for payment of dividend is on or before June 24, 2022.

Source: Exchange filing

Thermal power plant developer RattanIndia Enterprises buys 60% stake in leading domestic drone maker Throttle Aerospace Systems Pvt. This investment has been done through NeoSky India, a subsidiary of RattanIndia Enterprises.

• The company said it will target global markets for its drone products and services and reiterated plans to acquire best intellectual capital and technology available in the drone sector.

• With this acquisition NeoSky will be able to provide full 360 degree drone solutions to customers with Drones as a Product, Drone as a Service and Software as a Service.

Source: Exchange filing

HCL Technologies has signed an end-to-end global digital transformation deal with Velux Group.

• Velux group is a leading Danish maker of roof windows.

• HCL Tech will deliver a cloud-first, user-centric digital transformation program for the Velux group to modernise its applications and infrastructure landscape.

Source: Exchange filing

Shares of Bharat Petroleum Corporation Ltd. fell over 4.25% to a two-year low of Rs 312.2 apiece.

• The steep decline comes after the company reported net income for quarter-ended March that missed the average analyst estimate.

• Analysts at Jefferies cut FY2022-23 Ebitda estimates by 50% after the results, as they expect the company to be vulnerable to marketing losses.

• Trading volume of the stock is nearly 2.5 times the 30-day average. Of the 37 analysts tracking the company, 32 maintain 'buy', three suggest 'hold' and two recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 40.1%.

Source: Exchange filing, Jefferies note, Bloomberg

Shares of engineering firm Praj Industries fell 7% in intraday trade despite reporting 11% YoY growth in consolidated net income for the quarter-ended March, post market hours Wednesday.

Q4FY2021-22 (Consolidated, YoY)

• Net income up 11% at Rs 57.65 crore Vs Rs 52.01 crore

• Revenue up 46% at Rs 829.01 crore Vs Rs 567.10 crore

• Ebitda up 4% at Rs 78.03 crore Vs Rs 74.93 crore

• Ebitda margin at 9.41% Vs 13.21%

Trading volume is more than thrice the 30-day average. The stock is on track to post losses for the fourth session in a row. All four analysts tracking the company maintain 'buy'. The return potential is 46.2%.

Source: Exchange filing, Bloomberg

European markets open higher as energy stocks advance amid rise in crude oil prices.

Source: Bloomberg

India's stock benchmarks declined, but off day's low. Losses in power, energy and consumer discretionary stocks dragged the markets as they offset gains in metals, financials. Volatility has also been on display with Sensex and Nifty opening with gains for the fifth day, only to decline during the session. The benchmarks on their way to log losses for the fourth consecutive day over the same period, with May series F&O expiry day volatility set to be a likely factor in the final hours of trade.

The Sensex lost 0.30% to 53,590.47. The Nifty declined by similar magnitude to 15,970.75.

The MidCap index outperformed its larger peers while the SmallCap index mirrored Sensex and Nifty. Twelve of the 19 sectoral indices compiled by BSE Ltd. declined with power and utilities indices falling the most. On the flipside, metal index added 2%.

The market breadth was skewed in the favour of bears. About 1,079 stocks advanced, 2,120 declined and 120 remained unchanged.

The top court bench has allowed the appeal by SFIO challenging the stay on the look out circular and the investigation against few Sahara group companies

The SFIO had appealed the stay granted by the Delhi High Court.

Shares of Colgate-Palmolive India reverses 1.56% losses and rose over 1.5% after the company reported net income for the quarter-ended March that beat average analyst estimate.

Q4FY2021-22 (Consolidated, YoY)

• Net income up 2.83% at Rs 323.57 crore Vs Rs 314.66 crore (Bloomberg consensus estimate: Rs 264 crore)

• Revenue up 1.41% at Rs 1,301.27 crore Vs Rs 1,283.19 crore (Estimate: Rs 1,320 crore)

• Ebitda up 1.82% at Rs 429.42 crore Vs Rs 421.75 crore

• Ebitda margin at 33% Vs 32.87%

Trading volume is more than twice the 30-day average volume. Of the 33 analysts tracking the company, 15 maintain 'buy', 13 suggest 'hold' and five recommend 'sell'. The return potential of the stock is 0.5%.

Source: Exchange filing, Bloomberg

Shares of specialty and generic drugmaker Sequent Scientfic tumbled 17% to a 52-week low of Rs 101.3 apiece.

• The slide comes after the company reported net profit that was less than half the corresponding number in YoY terms, on Wednesday.

• Trading volume is nearly nine times the 30-day average. All three analysts tracking the company maintain 'buy'. The return potential of the stock is 62.1%.

Source: Exchange filing, Bloomberg

The IPO was subscribed 0.52 times or 52% as of 11:00 a.m. on May 26.

• Institutional Investors: 0.39 times.

• Non-institutional investors: 0.18 times.

• Retail investors: 0.72 times.

• Employees: 0.94 times.

Shares of Adani Ports & Special Economic Zone fell over 5.6%, adding to nearly 6% losses on Wednesday.

• The company reported net income below average analyst estimate, for the quarter-ended March, post market hours Tuesday.

• Adani Ports also recommended a dividend of Rs 5 per share of face value of Rs 2 each and reappointed Gautam Adani as Managing Director for five years.

• Trading volume is twice the 30-day average. Of the 25 analysts tracking the company, 23 maintain 'buy', one suggests 'hold 'and one recommends 'sell'. The return potential of the stock is 30.5%.

Source: Exchange filing, Bloomberg

Aurobindo Pharma's subsidiary Eugia Pharma received final approval from U.S. FDA to manufacture and market Pemetrexed for injection, 100 mg, 500 mg and 1000 mg.

• The product will be launched immediately and is therapeutically equivalent to the RLD, Alimta for injetion, of Eli Lilly.

• The injection is indicated for treatment of antineoplastics (medications used to treat cancer).

• The drug has an estimated market size of $1,272 million for 12 mnths ended March 2022, according to IQVIA.

Source: Exchange Filing

• Yield on the 10-year bond gained 1bps at 7.31%, during the session.

Source: Bloomberg

India's stock benchmarks opened higher, aided by gains in banking and metal stocks amid recovery in Asian equities.

The S&P BSE Sensex rose 0.5% to 53,999.81. The Nifty 50 advanced by similar magnitude to 16,093.65.

The broader indices almost mirrored their larger peers. Fifteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal gaining 1.4%.

The market breadth was skewed in the favour of bulls. About 1,238 stocks advanced, 877 declined and 84 remained unchanged.

• Hindalco Industries

• Zee Entertainment

• Berger Paints

• Piramal Enterprises

• Quess Corp

• Motherson Sumi Systems

• Page Industries

• Muthoot Finance

• NMDC

• Motherson Sumi Wiring India

• Colgate Palmolive

• Bharat Dynamics

• Bharat Rasayan

• Cummins

• INEOS Styrolution India

• Insecticides India

• India Glycols

• Kirloskar Industries

• Tata Steel: The company acquired 3.55 lakh shares of Rs 10 each of wholly owned subsidiary Tata Steel Downstream Products at a premium of Rs 130.5 per share.

• Vodafone Idea: The Government of India has received exemption from open offer to acquire 33.4% stake in the telecom company.

• Aegis: Aegis Vopak terminals were successfully completed making it the largest independent tank storage company for LPG and chemicals in India.

• Infosys: The company will collaborate with Palo Alto Networks to elevate the security-maturity of large enterprises and to help prevent the threat of cyberattacks on their critical infrastructure.

BPCL Q4 FY22 (Consolidated, YoY)

• Revenue up 24% at Rs 1,23,217 crore

• EBITDA down 6% at Rs 5,954 crore

• EBITDA margin at 4.8% vs 6.3%

• Net profit down 73% at Rs 2,803 crore

• Recommended final dividend of Rs 6 per share

Coal India Q4 FY22 (Consolidated, YoY)

• Revenue up 22.5% at Rs 32,706.77 crore

• EBITDA up 41% at Rs 9,078.82 crore

• EBITDA margin at 27.76% Vs 24.11%

• Net profit up 46% at Rs 6,692.94 crore

• Recommended final dividend of Rs 3 per share

Nalco Q4 FY22 (Standalone, YoY)

• Revenue up 53.85% at Rs 4,340.82 crore

• EBITDA up 71.46% at Rs 1,618.59 crore

• EBITDA margin at 37.3% Vs 33.46%

• Net profit up 9.6% at Rs 1,025.68 crore

Apollo Hospitals Enterprises Q4 FY22 (Consolidated, YoY)

• Revenue up 24% at Rs 3,546 crore

• Net profit down 46% at Rs 90 crore

• EBITDA up 12% at Rs 463 crore

• Margins at 13.1% vs 14.4%

• Net profit down 46% to Rs 90 crore

InterGlobe Aviation Q4 FY22 (Standalone, YoY)

• Revenue up 29% at Rs 8,021 crore

• EBITDAR at Rs 172 crore vs Rs 648 crore

• EBITDAR margin at 2.1% vs 10.4%

• Net Loss of Rs 1,680 crore vs Rs 1,159 crore loss

Whirlpool of India Q4 FY22 (Standalone, YoY)

• Revenue down 9.5% at Rs 1610.63 crore

• EBITDA down 28.37% at Rs 135.84 crore

• EBITDA margin at 8.43% vs 10.66%

• Net profit down 35.7% at Rs 79.53 crore

• Recommended final dividend of Rs 5 per share

Torrent Pharma Q4 FY22 (Consolidated, YoY)

• Revenue up 10% at Rs 2,131 crore

• EBITDA down 4% at Rs 561 crore

• EBITDA margin at 26.3% vs 30%

• Net loss at Rs 118 crore vs net profit of Rs 324 crore

• Recommended final dividend of Rs 23/share

• Approved issue of bonus shares in the ratio of 1:1

Bata India Q4 FY22 (Consolidated, YoY)

• Revenue up 13% at Rs 665 crore

• EBITDA up 44% at Rs 162 crore

• EBITDA margin at 24.4% vs 19%

• Net profit up 114% at Rs 63 crore

• Recommended dividend of Rs 54.5 per share

Fortis Healthcare Q4 FY22 (Consolidated, YoY)

• Revenue up 10% at Rs 1,378 crore

• EBITDA up 12% at Rs 221 crore

• EBITDA margin at 16.1% vs 15.8%

• Net profit up 40% at Rs 87 crore

Religare Enterprises Q4 FY22 (Consolidated, QoQ)

• Revenue up 15% at Rs 953 crore

• Net loss at Rs 588 crore vs Rs 251 crore

• EBIT profit at Rs 114 crore vs loss of Rs 108 crore

• EBIT margin at 12% Vs -13%