Sensex, Nifty Log Worst Weekly Losing Streak In Over Two Years

• Yield on the 10-year bond rose 8bps to 7.32%

• The 10-year yield added 10bps to 7.34% during the session.

• For the week, the yield fell 13bps from 7.46% on May 6 amid reports that RBI may step in to cool yields.

Source: Bloomberg

• Rupee rose 0.20% to 77.27 against the dollar, during the session.

• Indian currency reverse gains in the final time to close at 77.45. The Rupee has closed above 77 in all the five sessions this week.

• The fall in Rupee in intraday session is commensurate with the steep decline in equities in the last couple of hours of the session.

Source: Bloomberg

India's stock benchmarks extended decline for the sixth day as well as the fifth week. This is the longest weekly losing streak for Sensex and Nifty in over two years since the run ended April 2020.

All the sectoral indices tumbled in the week., with Nifty Metal and PSU Banks falling the most. Over the last two weeks, the Sensex and Nifty have lost nearly 8%.

On Friday, it was a session of two halves with markets reverses gains with a steep decline in the final two hours.

The Sensex fell 0.26% to 52,793.62. The 30-stock gauge rose to an intraday day high of 53,785.71 before reversing the gains in the final two hours. The Nifty also declined by similar magnitude to close below 15,800.

The broader indices outperformed their larger peers with MidCap gauge gaining 0.8% and SmallCap measure rising 1.3%. Ten of the 19 sectoral indices compiled by BSE Lt. declined with Telecom, Utilities, Metal and Power indices falling over 2%.

The market breadth was skewed in the favour of bulls. About 2,163 stocks advanced, 1,172 declined and 137 remained unchanged.

• Onset of southwest monsoon over Kerala is likely to be on 26 May 2022 with a model error of +/- 3 days.

Source: Skymet

• Trade deficit was at $20.11 billion in April 2022 compared to $18.51 billion in March.

• Exports rose by 30.7% year-on-year to $40.19 billion.

• Imports rose by 30.97% year-on-year to $60.30 billion.

• Exports eased by 4.8% on a month-on-month basis and imports eased by 0.7% on a month-on-month basis.

Source: Ministry of Commerce and Industry

• Aim to raise our return on equity ratio to 15%, already reached 13.9%

• Bulk of the growth in Q4 was from corporate sector, while personal segment also contributed to growth

• Almost 75% of our total book is linked to MCLR, external benchmark etc.

• EBLR constitutes 22% of the book, while loans linked to treasury bills constitute 11%.

• Going forward as deposit rates get repriced, we should see a positive impact on NIMs.

• Seeing traction in corporate book since Q3

• Going forward we are seeing much better working capital utilisation

• Still have about Rs 4 lakh crore in unused limits under working capital

• Considering the unutilised portion and demand, we have a visibility of about Rs 4.6 lakh crore worth loan proposals

• Have made additional investment in Jio Payments Bank

• We are a minority partner, the call to develop that bank will have to be taken by our partner

• Looking at the investments being made by our partner, it seems the plan has not yet been shelved

Source: SBI press conference

• Retail loan book rose 15.11% year-on-year to Rs 10.02 lakh crore

• Home loan book rose 11.5% year-on-year to Rs 5.61 lakh crore

• Corporate loan book up 6.35% year-on-year to Rs 8.7 lakh crore

Source: SBI presentation

Shares of Matrimony.com rose over 18%, most in 15 months since February 2021.

• The company reported sequential growth in net profit, revenue for the quarter-ended March post market hours Thursday.

• The company approved proposal of buy back shares of face value of Rs 5 each for an amount not exceeding Rs 75 crore.

• The company also recommended final dividend of Rs 5 per share.

• Trading volume is nearly 28 times the 30-day average. Share price crossed above the 50-day simple moving average, indicating potential upward price momentum.

Source: Exchange filing, Bloomberg

Indian currency rose 0.20% to 77.27 against the dollar, during the session.

Source: Bloomberg

SBI Q4 Net Income Misses Estimate

Q4FY22 (Standalone)

• Net Profit at Rs 9,114 crore vs Rs 6,451 crore (YoY) (Bloomberg Consensus Estimate: Rs 10,183 crore)

• NII at Rs 31,198 crore vs Rs 27,067 crore (YoY)

• Gross NPA at 3.97% vs 4.5% (QoQ)

• Net NPA at 1.02% vs 1.34% (QoQ)

• Yield on the 10-year bond rose 9bps to 7.34% during the session.

• The rise in yield comes after retail inflation for the month of April rose to an eight-year high.

Source: Bloomberg

India's stock benchmarks rebounded and are on course to snap a five-day losing streak, aided by gains in auto, energy, fmcg, consumer durables, oil and gas stocks.

The Sensex added 640 points (over 1.20%) to 53,563.28. The 30-stock gauge rose over 750 points to intraday high of 53,695.91. The Nifty advanced by similar magnitude to 16,036.05. Tata Motors was the top gainer, rising over 10%.

The broader indices outperformed their larger peers, with MidCap and SmallCap indices gaining over 2.3%. Barring S&P BSE Telecom, all the other 18 sectoral indices rose, with S&P BSE Auto advancing 4%.

The market breadth is skewed in the favour of bulls. About 2,546 stocks rose, 697 fell and 116 remained unchanged.

Shares of Sun Pharmaceutical Industries rose over 4.3%, the most in two weeks.

• The company received final approval from U.S. FDA for its Abbreviated New Drug Application (ANDA) for generic Mesalamine Extended Release Capsules, 500 mg.

• The drug is based on Pentasa Extended Release Capsules, which had an annualised sales of $213 million in U.S., as of March 2022, according to IQVIA.

• The drug is indicated for treatment of mild to moderate exacerbation of ulcerative colitis.

• Sun Pharma announced that it will report its earnings for the quarter-ended March on May 30. The company will also consider approval of final dividend, if any, for FY2021-22.

• Trading volume is twice the 30-day average. Of the 44 analysts tracking the company, 40 maintain 'buy', two suggest 'hold' and two recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 15.3%.

Source: Exchange filings, Bloomberg

Shares of RBL Bank climbed over 13%, the most in over 15 months after the lender posted a sequential decline in bad loans for the quarter-ended March, post market hours Thursday.

• Gross NPA for Q4 improved to 4.40% compared to 4.84% in Q3.

• Provision coverage ratio improved 750bps sequentially to 70.4% to 62.9% in Q3.

Trading volume is quadruple the 30-day average at this time of the day. The stock has been upgraded to 'buy' at Emkay Global and Equirus Securities after the Q4 results.

Source: Exchange filing, Bloomberg

Shares of Mahindra Lifespace Developers Ltd. rose over 11%, the most in six weeks.

• The advance comes after the company was included in MSCI India Domestic Small Cap Index as of the close of May 31.

• Trading volume is more than twice the 30-day average. All five analysts tracking the company maintain 'buy'. The return potential of the stock is 23.3%.

Source: Bloomberg

Shares of Anupam Rasayan rose over 12.5%, the most in over two months to Rs 878.6 apiece after the company reported 108% YoY rise in net profit and 55% YoY Ebitda growth for the quarter-ended March, post market hours Thursday

Anupam Rasayan Q4 FY22 (Consolidated, YoY)

• Revenue up 16.77% at Rs 317.23 crore

• EBITDA up 55% at Rs 97.28 crore

• EBITDA margin at 30.67% vs 23.12%

• Net profit up 108% at Rs 46.1 crore

• Recommended final dividend of Rs 1 per share

The trading volume is more than five times the 30-day average. Of the eight analysts tracking the company, seven maintain 'buy' and one suggests 'sell'. The return potential of the stock is 32.6%.

Source: Exchange filing, Bloomberg

Shares of Larsen and Toubro gained 2.4%, the most in over two weeks, after analysts reiterated 'buy' after Q4 results.

• Analysts see pickup in order inflows as a key growth driver. Trading volume on the stock is nearly five times the 30-day average.

• Of the 41 analysts tracking the company, 39 maintain 'buy', one suggest 'hold' and one recommends 'sell'. The return potential of the stock is 38.5%.

Source: Exchange filing, Bloomberg, Brokerage notes

• Yield on the 10-year bond rose 8bps to 7.32% during the session.

• The rise in yield comes after India's retail inflation in April rose to a 8-year high.

• Rise in crude prices and U.S. treasury yields also weighed on bonds.

Source: Bloomberg

• Indian currency appreciated 0.17% to 77.30, during the session.

• Rupee slipped to record low 77.63 on Thursday.

Source: Bloomberg

India's stock benchmarks rose nearly 1%, amid rebound in global equities after volatile close on Wall Street. Rise in retail inflation in April to a eight-year high adds to rising concerns for markets like supply snags, volatility in crude and commodity prices and fears of the global growth slowdown.

The S&P BSE Sensex rose nearly 400 points to 53,323.25. The NSE Nifty 50 advanced 1% to 15,958.75.

The broader indices outperformed their larger peers with S&P BSE MidCap rising 1.8% and S&P BSE SmallCap gaining 1.7%. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Auto adding nearly 2.5%.

The market breadth is skewed in the favour of bulls. About 1,994 stocks rose, 424 fell and 71 remained unchanged.

• Tech Mahindra

• Eicher Motors

• State Bank of India

• Alkem Laboratories

• Bank of Baroda

• Hindustan Aeronautics Ltd.

• Bandhan Bank

• Gujarat Fluorochemicals

• Escorts

• Emami

• Carborundum

• JK Paper

• CESC

• Nazara Technologies

• DB Corp

• Sharda Cropchem

• Steel Strips Wheels.

• NHPC/Adani Infra/Tata Power: NHPC issued contracts worth Rs 6,604.42 crore for development of grid-connected solar PV projects of 1,000 MW capacity and transmission line for power evacuation.

  - Adani Infra was awarded contract for 600 MW capacity worth Rs 4,295 crore in Gujarat.

  - Tata Power Solar Systems received 300 MW capacity contract worth Rs 1,732 crore in Rajasthan.

  - SSEL-ASR JV got contract for 100 MW capacity in Andhra Pradesh for Rs 577 crore.

• Wipro: The company announced a five-year strategic engagement with Scania to transform the digital workplace.

• Sun Pharma: The company received final approval from the U.S. FDA for its abbreviated new drug application for generic Mesalamine extended release capsules.

• Indiabulls Housing Finance: Raised reference rates on housing loans and loans against property by 40 basis points. The new rates will be applicable for existing borrowers from June 1.

Larsen & Toubro Q4 FY22 (Consolidated, YoY)

• Revenue up 9.9% at Rs 52,850.67 crore

• EBITDA fell 20.53% to 6,520.52 crore

• EBITDA margin at Rs 12.34% vs 17.06%

• Net profit up 11.98% at Rs 4,138.47 crore

• Recommended final dividend of Rs 22 per share

Tata Motors Q4 FY2022 (Consolidated, YoY)

• Revenue down 11% at Rs 78,439 crore

• EBITDA down 32% at Rs 8,726 crore

• EBITDA margins at 10.6% vs 14.4%

• Net loss shrinks to Rs 1,033 crore

Siemens Q4 FY22 (Consolidated, QoQ)

• Revenue up 11.37% at Rs 3,954.7 crore

• EBIT up 43.14% at Rs 404.80 crore

• EBIT margin at 10.24% vs 7.96%

• Net profit up 36% at Rs 340 crore

Tube Investments Q4 FY22 (Consolidated, YoY)

• Revenue up 25% at Rs 3,414.96 crore

• EBITDA up 29.6% at Rs 359.04 crore

• EBITDA margin at 10.51% vs 10.14%

• Net profit up 57.45% at Rs 225.22 crore

• Recommended final dividend of Rs 1.5 per share

Apollo Tyres Q4 FY22 (Consolidated, YoY)

• Revenue up 11% at Rs 5,578.31 crore

• EBITDA fell 23.11% at Rs 626.34 crore

• EBITDA margin at 11.23% vs 16.21%

• Net profit fell 60.51% at Rs 113.45 crore

• Recommended final dividend of Rs 3.5 per share

Gujarat State Petronet Q4 FY22 (Consolidated, YoY)

• Revenue up 33% at Rs 5,094.21 crore

• EBITDA up 12% at Rs 1,010.6 crore

• EBITDA margin at 19.84% vs 23.55%

• Net profit up 10.74% at Rs 639.51 crore

• Recommended dividend of Rs 2 per share

Honeywell Automation Q4 FY22 (Consolidated, YoY)

• Revenue fell 0.64% to Rs 667.98 crore

• EBITDA fell 32.18% to Rs 87.30 crore

• EBITDA margin at 13.07% vs 19.15%

• Net profit fell 30.14% at Rs 72.67 crore

• Recommended dividend of Rs 90 per share

CreditAccess Grameen Q4 FY22 (Consolidated, QoQ)

• Revenue up 19.6% at Rs 821.89 crore

• EBIT up 23% at Rs 482.39 crore

• EBIT margin at 58.69% vs 57.08%

• Net profit up 37% at Rs 160.13 crore

Anupam Rasayan Q4 FY22 (Consolidated, YoY)

• Revenue up 16.77% at Rs 317.23 crore

• EBITDA up 55% at Rs 97.28 crore

• EBITDA margin at 30.67% vs 23.12%

• Net profit up 108% at Rs 46.1 crore

• Recommended final dividend of Rs 1 per share