Sensex, Nifty Log Second Best Day In 16 Months Aided By Metals
Catch all live updates on share prices, index moves, corporate announcements and more from the Sensex and Nifty, today.
Rupee Depreciates To Record Low
Rupee fell to a record low 77.80 during the session.
The Indian currency trimmed losses to close at 77.56 (all-time closing low) against the dollar.
Source: Bloomberg
India Bond Yield Rises
Yield on the 10-year bond added 5bps to 7.37%.
The 10-year bond yield rose 6bps to 7.38% during the session.
Source Bloomberg
Closing Bell
India's stock benchmarks logged best day in over two months, aided by gains in metal, energy and oil and gas stocks. This is also the second best day for the Sensex and Nifty in over fifteen months as well as 2022.
The NSE Nifty Metal index surged nearly 7% to log best day in over two years.
The Sensex added 1,345 points (over 2.5%) to 54,318.47. The Nifty also advanced by similar magnitude to 16,259.30. The move was the biggest since rising 3% on Feb. 15, and is the best day in 16 months. Reliance Industries contributed most to index gain, rising 4.2% while Hindalco added nearly 10%
The broader indices almost mirrored their larger peers. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal gaining 7.62%.
The market breadth was skewed in the favour of bulls. About 2,627 stocks advanced, 715 declined and 120 remained unchanged.
ITC Gains Most In Five Weeks Ahead Of Q4 Results; Wheat-Linked Stocks Rise
Shares of ITC rose nearly 4.5%, the most in over five weeks. The company is scheduled to report the earnings for the quarter-ended March on Wednesday.
The rise comes amid disruption in global wheat industry after India restricted exports, resulting in surge in wheat prices to near record levels.
Trade ministry has announced some relaxation of its order restricting wheat exports to ensure that traders meet prior commitments.
Wheat export consignments handed over to customs for examination and registered in their system on or before May 13, will be cleared for exports.
Shares of other stocks linked to wheat industry such as Britannia, Kovilpatti Lakshmi Flour Mills and Adani Wilmar also logged gains.
Source: Bloomberg
Q4 Results: Bharat Forge's Deputy MD On Earnings, FY23 Projections
Q4 Results: JK Paper's Management On Earnings, Growth Outlook
Q4 Results: Tata Motors MD On Earnings & FY23 Projections
Abbott India Climbs As Q4 Net Income Beats Estimate
Abbott India- Q4 FY2022 (Consolidated, YoY)
Revenue up 15% at Rs 1,255 crore Vs Rs 1,096 crore (BBG estimate : Rs 1,193 crore)
Net profit up 39% at Rs 211 crore from Rs 152 crore (BBG estimate : Rs 183 crore Profit)
EBITDA up 43% to Rs 294 crore from Rs 206 crore (BBG estimate : Rs 244 crore Profit)
Margins at 23.4% Vs 18.8% (BBG estimate : 20.4%)
EPS at Rs 99.49 per share vs Rs 71.75 per share (BBG estimate : Rs 83.7)
Recommended final dividend of Rs 145 per share and special dividend of Rs 130 per share of face value Rs 10 each
Government Announces Relaxations In Wheat Exports
Allows export of wheat consignments handed over to customs and registered in their systems prior to May 13, 2022.
Allows a wheat consignment for Egypt, following a request by the Egyptian government. Consignment was under loading at Kandla port.
The relaxation comes after the government imposed a ban on wheat exports on May 14, 2022, with immediate effect.
Source: Ministry of Commerce & Industry
Aurobindo Pharma Loses Over 12% In Six Days Since U.S. FDA Issued 'Form 383' After Inspecting Hyderabad Plant
Shares of Aurobindo Pharma fell for the sixth day, the longest losing streak in over 11 weeks. The stock has lost over 12% in the last six sessions.
On May 10, the company was issued a 'Form 483' with six observations by U.S. FDA after the drug regulator inspected the company's oral manufacturing facility in Hyderabad.
Trading volume is nearly twice the 30-day average. The relative strength index of the stock is 19, suggesting it may be oversold.
Of the 33 analysts tracking the company, 28 maintain 'buy', three suggest 'hold' and two recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 49.3%.
Source: Exchange filing, Bloomberg
European Markets Advance
BSE Appoints SS Mundra As Chairman Of Board Of Directors
Bombay Stock Exchange has appointment SS Mundra, Public Interest Director as the Chairman of the Board of Directors of the company.
The appointment follows the board approval on Monday and is subject to approval by SEBI.
SS Mundra retired as Deputy Governor of Reserve Bank of India on July 30, 2017, after completing a stint of three years.
Source: Exchange filing
Paradeep Phosphates IPO Day 1: Subscription Updates
What Analysts Said On LIC Listing
The subdued listing of LIC is in-line with expectations in context to the drop in market dynamics from the opening of the IPO to the listing date. The listing price has fallen in tandem with the fall of insurance sector valuations, maintaining the discount of about 70% to the industry’s average. Positively, the stock was brought at the dip. We believe that LIC is a decent investment opportunity in the short to medium-term considering its strong market presence, improvement in future profitability due to the changes in surplus distribution norms and strong sector growth outlook.Vinod Nair, Head of Research, Geojit Financial Services
The current market is not conducive for primary issues and LIC being the largest IPO has witnessed a negative listing, the current market volatility has weighed down on the insurance titan’s listing. However, the prospects for the insurance industry in India are good due to the under penetration of insurance and a long runway of growth; hence LIC being the largest player will be the beneficiary in the long term. Insurance is a business of scale, and there is no company to match the scale of LIC, so we suggest investors not be bothered about the negative listing and stay with the company for the long term. Those who applied for listing gains can maintain a stop loss of Rs. 800. New investors can take advantage of the dips to accumulate this share for the long term.Santosh Meena, Head of Research, Swastik Investmart
The 8% lower debut of LIC shares is a commentary on the current state of global markets rather than the company itself. In terms of subscription, the LIC IPO was extremely successful given the fact that it was the biggest IPO of India. LIC has a solid business, trusted brand, and market leadership in an underpenetrated insurance market. In FY-21, LIC’s market share was about 75% for individual policies and 81% for group policies. It is the top life insurance company by a wide margin.Mohit Ralhan, Managing Partner, TIW Capital Group
IHC Invests Rs 15,400 Crore In Adani Portfolio Companies
Adani Portfolio Companies complete Rs 15,400 crore primary equity transaction with IHC. The Abu Dhabi-based global strategic investment company has provided capital to Adani Green Energy, Adani Transmission and Adani Enterprises, through the preferential allotment route.
IHC's investment aims to support and accelerate Adani Group's plan to supply 45 GW to the country by 2030. This accounts to 9% of India's non-fossil energy capacity.
IHC's investment in Adani Group constitutes 4.87% of total trade between the UAE and India.
Source: Exchange filing
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
Nifty Metal Index Rises Most In 11 Weeks
NSE Nifty Metal rose nearly 5.9% in intraday trade, the most in 11 weeks.
The metal index gained 6.3% on Feb. 25, a day after Russia launched the invasion of Ukraine, spurring volatility in metal and commodity prices.
All the 15 constituents of the index rose in today's session, with Vedanta and Hindalco rising over 9%.
The Nifty Metal index is the top sectoral gainer.
Source: Bloomberg
Mid-Day Market Update: Sensex Nears 54,000; Nifty Reclaims 16,100
India's stock benchmarks advanced and are on course to log gains for the second day, aided by broad based gains led by metals, energy stocks.
The Sensex added over 900 points (~1.70%) to 53,896.68. The Nifty advanced by similar magnitude to 16,135.75. Reliance Industries, contributed the most to the index gains, rising 3.3%, while Hindalco jumped the most among the index stocks, adding over 8%.
The S&P BSE MidCap underperformed its larger peers, rising 1.40% and S&P BSE SmallCap almost mirrored Sensex and Nifty. All the 19 sectoral indices compiled by BSE Ltd. advanced, with S&P BSE Metal gaining over 6%.
The market breadth was skewed in the favour of bulls. About 2,462 stocks advanced, 762 declined and 121 remained unchanged.
Minda Industries Rises Most In A Week
Shares of auto parts maker Minda Industries rose nearly 7%, the most in a week.
In an exchange filing today, the company said that it will consider and recommend final dividend for FY2021-22. It will also consider and recommend issue of bonus shares on May 24, 2022.
The company will report its earnings for quarter-ended March on the same day. The company plans to raise funds through issue of debt securities upto Rs 1,000 crore in one or more tranches.
Trading volume on the stock is nearly thrice the 30-day average.
Of the 22 analysts tracking the company, 12 maintain 'buy', six suggest 'hold' and four recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 28.5%.
Source: Exchange filing, Bloomberg
Rupee Falls To Record Low
The Indian currency fell 0.45% to 77.80 against the dollar. This is the third time Rupee slumped to record low against the dollar in the last two weeks.
The depreciation comes amid rise in oil prices and stronger dollar.
Source: Bloomberg
Stock Benchmarks Near Day's High
Wholesale Inflation Rises To A Series High Of 15.08% In April
WPI inflation rose to 15.08% in April compared to 14.55% in March 2022.
Source: Ministry of Commerce & Industry
Fine Organic Up Most In 11 Weeks
Shares of Fine Organic Ltd. gained as much as 7.8%, the most in at least 11 weeks.
The stock was the best performer among peers.
Of the 10 analysts tracking the company, four each maintain 'buy' and 'hold' and two recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an downside of 6.8%.
Earnings Tomorrow
Pidilite Industries
Granules India
TeamLease
Lupin
Tata Power Partners with Hyundai Motor India For EV Charging Infrastructure
Tata Power has entered into a strategic partnership with Hyundai Motor India Limited to build a EV charging network.
Under the partnership, Tata Power will install Tata Power EZ Charge fast chargers at Hyundai's existing 34 EV dealer locations across 29 cities along with supply, installation, and commissioning of home charging for Hyundai's EV customers.
Aditya Birla Capital Gains As Independent Committee Finds No Merit In Whistleblower Complaint Against Employees
Shares of Aditya Birla Capital rose over 4.5%, the most in this week so far.
The company said an independent committee investigating a whistleblower complaint did not find any merit in allegations made against Aditya Birla Sun Life and its employees.
Trading volume is twice the 30-day average. All 10 analysts tracking the company maintain 'buy'. The return potential of the stock is 53%.
Source: Exchange Filing, Bloomberg
LIC Lists At A Discount To IPO Price
Shares of Life Insurance Corporation of India Ltd. declined on listing after the nation's biggest initial public offering subscribed 2.95 times. The stock listed at Rs 867.2 apiece on the BSE, a discount of 8.6% to its IPO price of Rs 949.
Source: Bloomberg
LIC Pre-Market Price Discovery At 8% Discount To Issue Price
LIC's pre-market price at Rs 867.2 apiece on the BSE, a discount of 8.6% to its IPO price of Rs 949.
On the NSE, the stock is at Rs 872 apiece, a discount of 8.1%.
Source: BSE, NSE
Macquarie Initiates Coverage Of LIC With 'Neutral'
Macquarie
Initiates coverage of LIC with 'neutral', target price set at Rs 1,000, compared to the IPO price of Rs 949.
Volatility in Embedded Value remains a worry.
Important for the company to diversify the product mix in favour of high margin non-par products.
Company's market share in individual business (retail) has fallen due to lack of diversified product portfolio.
Sees several challenges for LIC in scaling up the non-par business.
Believes that any investor who is taking an exposure to LIC is indirectly taking an exposure to equity markets and its inherent volatility.
Estimates a 10% fall in equity markets can erode the Embedded Value of LIC by 7% compared to 1-2% for its private sector peers.
10-Year Bond Yield Rises 4bps To 7.36%
DIPAM Secretary: LIC As A Legacy Institution Had A Lot Of Work Cut Out
Opening Bell: Sensex, Nifty Gain; Reliance, Metal Stocks Advance
India's stock benchmarks opened higher after snapping a six-day losing streak on Monday. Metals, oil and gas and energy stocks aided the advance.
The S&P BSE Sensex rose 0.64% to 53,313.57. The NSE Nifty 50 also advanced by similar magnitude to 15,948.75.
The S&P BSE MidCap almost mirrored its larger peers while S&P BSE SmallCap outperformed, gaining 0.8%. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal rising 3%.
The market breadth was skewed in the favour of bulls. About 1,741 stocks advanced, 464 declined and 70 remained unchanged.
Rupee Falls To Record Low
Indian currency depreciated 0.34% to 77.71 against the dollar.
Source: Bloomberg
Trade Setup For Tuesday
Focus Shifts To The Much Anticipated LIC Listing; Here's A Quick Primer
Food Stocks In Focus As Wheat Prices Surge
Shares of firms linked to the global wheat industry are in focus. This comes after wheat surged to near record high after India restricted exports.
In Focus: ITC, Britannia, Adani Wilmar, Kovilpatti Lakshmi Flour Mills.
Source: Bloomberg
Earnings Today
Bharti Airtel
DLF
Dr Lal Path Labs
Minda Corporation
Abbott India
Automotive Axles
Bajaj Electricals
EID Parry (India)
EKI Energy Services
Galaxy Surfactants
GMR Infrastructure
Indoco Remedies
Indian Oil
IRB Infrastructure Developers
Jubilant Ingrevia
Kajaria Ceramics
Kirloskar Ferrous Industries
Nocil
PI Industries
Sapphire Foods India
Sun Pharma Advanced Research
Star Cement
Zydus Wellness
Stocks To Watch
SJVN: The company has signed a memorandum of understanding for development of 490 MW Arun-4 project in Nepal.
Aditya Birla Capital: The company said an independent committee investigating a whistleblower complaint did not find any merit in allegations made against Aditya Birla Sun Life and its employees.
KEC International: The company has received new orders of Rs 1,147 crore across its various businesses.
Kajaria Ceramics: The company has begun commercial production of ceramic floor tiles and vitrified tiles in manufacturing facilities in Gailpur, Rajasthan, and Chittoor, Andhra Pradesh, respectively.
Steel Exchange India: The company approved the proposal of splitting equity shares from face value of Rs 10 to Rs 1 each.
Max Healthcare Institute: Approves merger of units Alps, Max Hospitals
Earnings Post Market Hours
GSK Pharma Q4 FY22 (Consolidated, YoY)
Revenue up 8.76% at Rs 809.63 crore
EBITDA up 11.83% at Rs 175.22 crore
EBITDA margin 21.64% vs 21.05%
Net profit up 8,400% at Rs 1,219.05 crore
Recommended dividend of Rs 90 per share
Multi Commodity Exchange of India Q4 FY22 (Consolidated, QoQ)
Revenue up 18.8% at Rs 106.46 crore
EBIT up 60% at Rs 50.50 crore
EBIT margin 47.44% vs 35.23%
Net profit fell 5% at Rs 36.53 crore
Recommended final dividend of Rs 17.4 per share
Raymond Q4 FY22 (Consolidated, YoY)
Revenue up 43% at Rs 1,958.1 crore
EBITDA up 84% at Rs 284.40 crore
EBITDA margin 14.52% vs 11.33%
Net profit up 366% at Rs 263.31 crore
Recommended dividend of Rs 3 per share
PDS Q4 FY22 (Consolidated, YoY)
Revenue up 57% at Rs 2,775.43 crore
EBITDA up 6.2% at Rs 102.94 crore
EBITDA margin 3.71% vs 5.5%
Net profit up 27.87% at Rs 77.13 crore
Recommended final dividend of Rs 23.85 per share
Acquires 15% of Norlanka Brands for Rs 38.19 lakh
Sensex, Nifty Set To Rise; LIC Debut, Bharti Airtel, Indian Oil, DLF, SJVN In Focus
Asian stocks rose on Tuesday amid signs of an economic slowdown due to pandemic-induced curbs, inflation, and tightening monetary settings.
The Japanese markets advanced, U.S. and European futures rebounded after Wall Street logged losses on Monday. The Singapore-traded SGX Nifty, an early barometer of India's benchmark Nifty 50, rose nearly 0.20% to 15,872 points as of 7:00 am.
Commodity costs continue to climb with oil rising to $114 a barrel, while Bitcoin hovered around $30,000.