Sensex, Nifty Log Gains In Volatile Week Aided By Financials

India's stock benchmarks advanced for the second week in a row.

Financials and auto stocks were the top sectoral gainers this week while metal index tumbled 8.7%.

It was a volatile week in which the markets logged losses for the first three days before erasing them in the last two sessions.

On Friday, the Sensex rose over 630 points (1.17%) to 54,884.566. The Nifty advanced by similar magnitude to 16,352.45.

The midcap index outperformed its broader peers, rising 1.7% while the smallcap gauge almost mirrored Sensex and Nifty. Fifteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Information Technology gaining 2.4%.

The market breadth was skewed in the favour of bulls. About 2,216 stocks advanced, 1,109 declined and 123 remained unchanged.

• 10-year bond yield rose 8bps to 7.38% during the session. The yield eased off those levels to close at 7.35, up 6bps on Friday.

Source: Bloomberg

• Indian Rupee fell 0.13% against dollar to 77.68 during the session.

• The currency erased all the losses in the final 30 minutes of session to close little changed.

Source: Bloomberg

• Adani Defence Systems and Technologies, a wholly owned subsidiary of Adani Enterprises, will acquire a 50% stake in General Aeronautics.

• The Adani firm will work with General Aeronautics for providing end to end solutions for the domestic agricultural sector.

• General Aeronautics is a Bengaluru-based end-to-end agri platform providing drone-based solutions for crop protection services, crop health, precision farming and yield monitoring.

Source: Exchange filing

• ONGC has allocated capital expenditure of Rs 31,000 crore in the next three fiscals (FY 2022-25) for exploration.

Q4FY2021-22 (Standalone, YoY)

• Net income up 51% at Rs 56.19 crore Vs Rs 37.16 crore (Bloomberg Consensus Estimate: Rs 54.4 crore)

• Revenue up 11% at Rs 665.13 crore Vs Rs 600.15 crore (Estimate: Rs 692 crore)

• Ebitda up 32% at Rs 125.79 crore Vs Rs 95.64 crore

• Ebitda margins at 18.91% Vs 15.94%

Siemens India has approved the sale and transfer of company's Large Drives Applications Business to Siemens Large Drives India Pvt Ltd, on slump sale basis, with effect from July 1, for Rs 440 crore.

• Siemens Large Drives India is a subsidiary of Siemens Large Drives GmbH, which is in turn a subsidiary of Siemens AG.

• The cash consideration has been arrived at on the basis of independent valuation conducted by Grant Thornton Bharat LLP.

Source: BSE

• Zydus Lifesciences has received Establishment Inspection Report from U.S. FDA for its Jarod injectables manufacturing facility near Vadodara.

• U.S. FDA has determined that the inspection classification of the facility is under 'Voluntary Action Indicated (VAI)' and concluded that the inspected is considered as 'closed'.

Source: Exchange Filing

GAIL India Q4FY2021-22 (Standalone, YoY)

• Net profit up 41% at Rs 2,683.11 crore Vs Rs 1,907.67 crore (Bloomberg Consensus Estimate: Rs 2,983.08 crore)

• Revenue up 73% at Rs 26,968.1 crore Vs Rs 15,549.07 crore (Estimate: Rs 25,539.23 crore)

• Ebitda up 45% at Rs 3,714.54 crore Vs Rs 2,564.83 crore (Estimate: Rs 3,969.23 crore)

• Ebitda margin at 13.77% Vs 17.14%

• Recommended payment of final dividend of Re 1 per equity share, subject to shareholders' approval

India's stock benchmarks rose and are near day's high, aided by gains in information technology, banking, auto, consumer discretionary stocks. The Sensex and Nifty are on course for gains in a week where volatility was a major factor.

The Sensex jumped over 1.1% to 54,866.53. The Nifty also advanced by similar magnitude to 16,340.90.

The S&P BSE MidCap outperformed its larger peers, rising 1.3% while the S&P BSE Smallcap almost mirrored Sensex and Nifty. Fifteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Information Technology gaining over 2%.

The market breadth was skewed in the favour of bulls. About 2,138 stocks rose, 1,064 fell and 130 remained unchanged.

Shares of Delhivery rose over 8.75%, and are on course to log their first day of gains since its market debut on Wednesday.

• The rise comes after the logistics services firm announced that it was awarded a U.S. patent on Tuesday. The patent covers Delhivery's innovation in address verification and location mapping - Addfix.

• Addfix takes incomplete or error-ridden addresses provided by customers and breaks them down into geographical elements like country, stake, city etc. to give an accurate location for an address.

• The system is built using the data collected from over 1 billion successful deliveries since inception of the company.

Source: BSE, Bloomberg

• 10-year bond yield rises 5bps to 7.34%

Source: Bloomberg

Shares of Page Industries gained over 8%, the most in over seven months, to Rs 45,180 apiece.

• The rise comes after several brokerages raised medium-term growth assumptions after the company reported net income for Q4 that beat analyst estimate, during market hours on Thursday.

• Dolat Capital and Asian Markets have upgraded the stock to 'accumulate' after the earnings.

• Trading volume is 5.5 times the 30-day average. Share price crossed above 50-day simple moving average, indicating potential upward price momentum.

Source: Bloomberg, Brokerage notes

Shares of Muthoot Finance fell nearly 10% to a 52-week low of Rs 1,026.7 apiece.

• The steep decline comes after the company reported net income that missed analyst estimate for the quarter-ended March, post market hours on Thursday.

• Analysts expect FY2022-23 to be a difficult year for the company, with a clear trade-off between growth and margin. Concerns around muted gold loan growth could lead to corresponding decline in profitability.

• Trading volume is 13 times the 30-day average. The relative strength index is at 29, suggesting the stock may be oversold. Of the 22 analysts tracking the company, 17 maintain 'buy', two suggest 'hold' and three recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 34.4%.

Source: Exchange filing, Bloomberg, Brokerage notes

• Sharp movements in global commodity prices impacting food inflation.

• A scenario in which crude prices persist above $100 per barrel poses a major upside inflation risk.

• Upside inflation risks may emerge from second-round effects across manufacturing and services prices.

• Supply side policy such as interventions could provide some offset.

• Faster resolution of geopolitical conflict and no further Covid waves could reverse inflation.

Source: Annual Report for the Year 2021-22, RBI

• Capacity utilisation in several industries is moving closer to normal levels, although rising input costs and persisting supply bottlenecks, may impede or delay a fuller recovery.

• Contact-intensive sectors are expected to rebound over the year ahead, with positive implications for the workforce and for consumption demand.

Source: Annual Report for the Year 2021-22, RBI

The prospects for agriculture and allied activities are brightening at this juncture on the prediction of a normal monsoon

• Terms of trade gains anticipated from exports.

• Raising farm productivity remains a key concern, however.

Source: Annual Report for the Year 2021-22, RBI

• RBI balance sheet expanded 8.46% year-on-year.

• Income up 20.14% to Rs 1.6 lakh crore.

• Expenditure up 280% to Rs 1.3 lakh crore.

• Of expenditure, transfer to contingency fund at Rs 1.15 lakh crore.

• Net income at Rs 30,311 crore.

• Surplus transferred to government at Rs 30,307 crore.

Source: RBI Annual Report

Q4FY2021-22 (Standalone, YoY)

• Net loss at Rs 23.71 crore Vs net profit of Rs 71.63 crore (Bloomberg consensus estimate: Net profit of Rs 34.78 crore)

• Revenue at Rs 1,391.99 crore Vs Rs 1,449.62 crore (Estimate: 1,456.58 crore)

• Ebitda at Rs 61.45 crore Vs Rs 200.52 crore (Estimate: Rs 151.70 crore)

• Ebitda margins at 4.41% Vs 13.83%

• Approved dividend of Re 1 per equity share of Rs 10 each for FY2021-22.

Shares of oil producers like ONGC, Oil India, RIL fell in trade.

• Hindustan Times Newspaper reported that government is considering a windfall tax on oil and gas producers to offset ballooning public expenditure on fuel, food and fertiliser subsidies amid surge in inflation, citing two people familiar with the development on the condition of anonymity.

• The tax may be levied when crude oil jumps over a certain threshold and will help boost government's finances, according to the report.

Source: Hindustan Times, Bloomberg

Shares of Piramal Enterprises fell nearly 9.9% to a 52-week low.

• The declines comes after the company reported its Q4 results post market hours on Thursday.

• Net profit rose 302% YoY while Ebitda fell and margin contracted. The company also recommended a final dividend of Rs 33 per share of face value of Rs 2 each for FY2021-22.

• Motilal Oswal, in its note, wrote that the phase 1 and 2 of the transformation story of Piramal Enterprises was a 'trust me' story, but the current phase 3 will have to be a 'show me' story.

• Motilal Oswal cut its target multiple for financial services business as well as pharma business and slashed the target price from Rs 3,200 to Rs 2,250, still an implied upside of 23.69%. The brokerage maintained 'buy' on the stock

Source: Exchange filing, Bloomberg, Motilal Oswal note

• Indian currency was little changed at 77.63 against the dollar

Source: Bloomberg

• 10-year bond yield rises 4bps to 7.33%, during the session.

Source: Bloomberg

• Paradeep Phosphates’ pre-market discovery price at Rs 43.5 per share, compared to its IPO price of Rs 42.

• The company’s IPO subscribed 1.75 times.

Source: BSE

• Sun Pharmaceutical Industries announced that its Romanian subsidiary has acquired Uractiv portfolio from Fiterman Pharma in Romania.

• The portfolio comprises food supplements including minerals, vitamins, cosmetics, medical devices used to maintain urinary tract health.

• Uractiv portfolio has annualised revenue of approximately $8.7 million.

• The acquisition is subject to regulatory approvals. The financial terms of the transaction are confidential.

Source: Exchange filing

India's stock benchmarks advanced, aided by gains in information technology and realty stocks, amid a global rebound in equities.

The S&P BE Sensex rose 0.7% to 54,639.25. The NSE Nifty 50 advanced by similar magnitude to 16,291.35. About 40 of the Nifty stocks rose, 10 fell.

The broader indices outperformed their larger peers, with both the S&P BSE MidCap and SmallCap rising 1%. Barring S&P BSE Energy and Oil and Gas, all the other 17 sectoral indices compiled by BSE Ltd. advanced, with S&P BSE Information Technology gaining over 2.2%.

The market breadth was skewed in the favour of bulls. About 1,829 stocks advanced, 457 declined and 79 remained unchanged.

Logistics services firm Delhivery has been awarded a U.S. patent on Tuesday. The patent covers Delhivery's innovation in address verification and location mapping - Addfix.

• Addfix takes incomplete or error-ridden addresses provided by customers and breaks them down into geographical elements like country, stake, city etc. to give an accurate location for an address.

• The system is built using the data collected from over 1 billion successful deliveries since inception of the company.

Source: BSE

Shares of Paper-linked firms are in focus after the government amended the import policy of major paper products from 'Free' to 'Free subject to compulsory registration under Paper Import Monitoring System.

• The order is applicable on a range of paper products including newsprint, handmade paper, wallpaper base, duplicating paper, coate paper, uncoated paper, litho and offset paper, tissue paper, parchment paper, carbon paper, wall paper, envelops, toilet paper, cartons, account books, labels etc.

• All imports arriving on or after October 1, 2002 will be governed by this policy.

• The move is aimed at addressing dumping concerns of domestic paper industry.

Source: PIB

Paradeep Phosphates: Shares to list today. The IPO was subscribed 1.75 times.

• GAIL India

• Godrej Industries

• JSW Steel

• Jindal Steel & Power

• PB Fintech

• United Spirits

• TCI Express

• Unichem Laboratories

• VRL Logistics

• Sadbhav Infrastructure Projects

• India Cements

• Ircon International

• Lemon Tree Hotels

• GR Infraprojects

• Glenmark Pharma

• Fine Organics

• Akzo Nobel India

• Arvind Fashions

• Astral

• Crompton Greaves Consumer Electricals

• BEML

• Engineers India

• BPCL: The government called off EoI process for divestment of its 52.98% stake. Owing to prevailing conditions in the global energy market, the majority of QIPs have expressed their inability to continue in the current process of disinvestment of BPCL, the government said.

• Tata Motors: The company incorporated a wholly owned subsidiary, TML Smart City Mobility Solutions for undertaking urban mass mobility business. It intends to bring specific focus to its Electric Vehicles segment as a service offering across its portfolio of commercial vehicles.

• ONGC: The company has allocated capital expenditure of Rs 31,000 crore in the next three fiscals (FY 2022-25) for exploration.

• Union Bank of India: The bank approved raising Rs 3,800 crore through Public Issue/Rights issue/private placement including QIP and Rs 4,300 crore via green/foreign currency denominated AT1 /Tier 2 bonds.

• Tata Power: The company’s subsidiary Tata Power Renewable Energy has commissioned 100 MW/138MWp project for Maharashtra State Electricity Distribution Company in Maharashtra. The installation is comprised of over 4,11,900 numbers of monocrystalline PV modules and is expected to reduce around 234 million tons of CO2 annually.

• Torrent Pharma & Dr Reddy’s: Torrent Pharmaceuticals entered into an agreement with Dr. Reddy's Laboratories to acquire four of its brands -- Styptovit-E, Finast, Finast-T and Dynapress.

Hindalco Industries Q4 FY22 (Consolidated, QoQ)

• Revenue up 10.9% at Rs 55,764 crore Vs Rs 50,272 crore (Bloomberg estimate: Rs 53,387.4 crore)

• EBITDA down 0.4% to Rs 7,597 crore from Rs 7,624 crore (Bloomberg estimate: Rs 5,898.5 crore)

• EBITDA margins at 13.6% Vs 15.2% (Bloomberg estimate: 11%)

• Net profit up 4.8% to Rs 3,851 crore Vs Rs 3,675 crore (Bloomberg estimate: Rs 2,959.2 crore)

Zee Entertainment Q4 FY22 (Consolidated, QoQ)

• Revenue up 10% at Rs 2322.90 crore Vs Rs 2112.64 crore

• EBIT up 6% at Rs 439.15 crore Vs Rs 414.56 crore

• EBIT margin 18.91% Vs 19.62%

• Net profit fell 39% at Rs 181.93 crore Vs Rs 298.73 crore

• Recommended dividend of Rs 1 per share of face value of Rs 3 each

Berger Paints Q4 FY22 (Consolidated, YoY)

• Revenue up 8% at Rs 2,187.51 crore Vs Rs 2,026.09 crore

• EBITDA up 3.2% at Rs 346.44 crore Vs Rs 335.57 crore

• EBITDA margin 15.84% Vs 16.56%

• Net profit up 5.6% at Rs 220.29 crore Vs Rs 208.60 crore

• Recommended dividend of Rs 3.1 per share of face value of Rs 1 each

Piramal Enterprises Q4 FY22 (Consolidated, YoY)

• Revenue up 16% at Rs 573.64 crore Vs Rs 493.59 crore

• EBITDA fell 21% at Rs 232.35 crore Vs Rs 294.50 crore

• EBITDA margin 40.5% Vs 59.6%

• Net profit up 302% at Rs 316.23 crore Vs Rs 78.71 crore

• Recommended final dividend of Rs 33 per share of face value of Rs 2 each

Motherson Sumi Systems Q4 FY22 (Consolidated, YoY)

• Revenue up 28.5% at Rs 1,630.6 crore Vs Rs 1,269 crore

• EBITDA up 24% at Rs 215.66 crore Vs Rs 174.29 crore

• EBITDA margin 13.23% Vs 13.73%

• Net profit up 62% at Rs 397.27 crore Vs Rs 244.88 crore

• Recommended dividend of Rs 0.65 per share of face value of Rs 1 each

Muthoot Finance Q4 FY22 (Consolidated, QoQ)

• Revenue fell 4.27% at Rs 3,021.13 crore Vs Rs 3,155.78 crore

• EBIT fell 3.31% at Rs 2,364.29 crore Vs Rs 2,445.3 crore

• EBIT margin 78.26% Vs 77.5%

• Net profit fell 3.6% at Rs 1,006.22 crore Vs Rs 1,043.63 crore

Cummins Q4 FY22 (Consolidated, YoY)

• Revenue up 20% at Rs 1,502.12 crore Vs Rs 1,256.25 crore

• EBITDA up 23% at Rs 208.16 crore Vs Rs 169.75 crore

• EBITDA margin 13.86% Vs 13.51%

• Net profit up 28% at Rs 216.27 crore Vs Rs 168.56 crore

• Recommended final dividend of Rs 10.5 per share of face value of Rs 2 each

NMDC Q4 FY22 (Consolidated, YoY)

• Revenue fell 2% at Rs 6,702.24 crore Vs Rs 6,847.57 crore

• EBITDA fell 37% at Rs 2,682.57 crore Vs Rs 4,240.27 crore

• EBITDA margin 40% Vs 62%

• Net profit fell 36% at Rs 1,812.98 crore Vs Rs 2,835.54 crore

Bharat Dynamics Q4 FY22 (Consolidated, YoY)

• Revenue up 21.5% at Rs 1,381.07 crore Vs Rs 1,136.86 crore

• EBITDA up 17.4% at Rs 404.08 crore Vs Rs 344.3 crore

• EBITDA margin 29.3% Vs 30.3

• Net profit up 1.5% at Rs 264.36 crore Vs 260.36 crore

• Recommended dividend of Rs 1 per share of face value of Rs 10 each

AstraZeneca Q4 FY22 (Consolidated, YoY)

• Revenue up 10% at Rs 231.96 crore Vs Rs 210.25 crore

• EBITDA fell 7% at Rs 37.75 crore Vs Rs 40.4 crore

• EBITDA margin 16.3% Vs 19.2

• Net profit up 3% at Rs 27.98 crore Vs Rs 27.27 crore

• Recommended final dividend of Rs 8 per share

Bharat Rasayan Q4 FY22 (Consolidated, YoY)

• Revenue up 65% at Rs 444.78 crore Vs Rs 269.81 crore

• EBITDA up 32% at Rs 86.62 crore Vs Rs 65.62 crore

• EBITDA margin 19.5% Vs 24%

• Net profit up 38% at Rs 64.55 crore Vs Rs 46.8 crore

• Recommended final dividend of Rs 1.5 per share of face value of Rs 10 each

India Glycols Q4 FY22 (Consolidated, YoY)

• Revenue fell 7% at Rs 1,494.17 crore Vs Rs 1,604.14 crore

• EBITDA fell 8% at Rs 79.62 crore Vs Rs 86.73 crore

• EBITDA margin 5.3% Vs 5.4%

• Net profit fell 5.5% at Rs 67.08 crore Vs Rs 71 crore

• Recommended dividend of Rs 7.5 per share of face value of Rs 10 each

Stocks in Asia advanced on Friday after a recovery on Wall Street.

Japanese, Korean and Australian stocks gained. US futures were steady after S&P 500 rose from its lowest level in more than a year. The Nasdaq 100 added over 2%.

The Singapore-traded SGX Nifty, an early barometer of India's benchmark Nifty 50, rose nearly 0.50% to 16,257 points as of 6:50 a.m.

Elsewhere, West Texas Intermediate was at $113.85 a barrel. Bitcoin hovered around $29,000.