Sensex, Nifty Fall For Second Day As I.T., FMCG, Power, Metal Stocks Drag

• Yield on the 10-year bond sheds 3bps to 7.36%.

• The 10-year bond yield lost 5bps during the session.

Source: Bloomberg

• Rupee depreciated 0.20% to 77.52 during the session. The Indian currency trimmed its losses, but ended up snapping a two-day winning streak.

Source: Bloomberg

India's stock benchmarks fell for the second day, dragged by losses in information technology, healthcare, fmcg, metals, power and realty stocks, in a volatile session. The decline comes amid global fall in equities amid rising fears over price pressures and global growth outlook.

The Sensex fell 0.43% to 54,052.61, nearly 500 points off the day's high of 54,524.37. The Nifty also declined by similar magnitude to 16,125.15. Infosys led the decline, falling 1.9% while Divi's Laboratories had the largest decline, losing 6.1%. Today 35 of 50 shares logged losses while 15 gained.

The broader indices underperformed their larger peers with S&P BSE MidCap losing 0.8% and S&P BSE SmallCap falling over 1%. Sixteen of the 19 sectoral indices compiled by BSE Ltd. declined with telecom, power, information technology indices shedding the most.

The market breadth was skewed in the favour of bears. About 1,040 stocks advanced, 2,266 declined and 124 remained unchanged.

Balrampur Chini mills reported net income for the quarter-ended March, that beat average analyst estimate.

Q4FY2021-22 (Consolidated, YoY)

• Net income at Rs 240.48 crore Vs Rs 235.50 crore (Bloomberg Consensus Estimate: Rs 174 crore)

• Revenue at Rs 1,279.61 crore Vs Rs 1,019.36 crore (Estimate: Rs 1,229.20 crore)

• Ebitda at Rs 331.03 crore Vs Rs 332.24 crore (Rs 252 crore)

• Ebitda margin at 25.87% Vs 32.59%

• JSW Steel will consider raising of long-term funds (including QIP) in its board meeting on May 27. The company will also report its earnings for the quarter-ended March on Friday.

Source: Exchange filing

Shares of Shilpa Medicare rose nearly 15%, the most in at least a year. The surge comes after the company reported YoY growth in net profit, revenue and Ebitda in the quarter-ended March post market hours on Monday.

• ICICI Securities upgraded the stock from 'sell' to 'reduce' after the earnings and revised the target from Rs 381 to Rs 355.

• Trading volume is 27 times the 30-day average. Share price crossed above the 50-day simple moving average, indicating potential upward price momentum.

Source: Exchange filing, Bloomberg, ICICI Securities note

Q4 FY2021-22 (Consolidated, YoY)

• Revenue up 10% at Rs 547 crore Vs Rs 495 crore (Bloomberg Consensus Estimate : Rs 538 crore)

• Net profit up 35% to Rs 37 crore Vs Rs 27* crore (Estimate : Rs 40 crore Profit) *after exceptional loss related to household insecticide segment

• EBITDA down 19% to Rs 57 crore from Rs 71 crore (Estimate : Rs 64 crore Profit)

• Margins at 10.5% Vs 14.3% (Estimate : 11.8%)

• EPS at Rs 1.03 per share Vs Rs 0.8 (Estimate : Re 1)

Zee Entertainment has signed a long term media right contract to globally broadcast the UAE cricket league matches.

• Zee will be able to air the league exclusively on its 10 TV channels and online streaming platform, ZEE5.

• Zee has not specified the tenure of the media rights contract and the money paid for it.

Source: Company Statement

Shares of electric bus maker Olectra Greentech rose over 8% in two days.

• The company informed exchanges that it was awarded with Letter of Award for 2,100 electric buses for one of the State Transport undertaking, during market hours Monday.

• The order is on gross cost contract/OPEX model for a period of 12 years.

• The value of these 2,100 buses supply would be approximately Rs 3,675 crore.

• Trading volume is nearly five times the 30-day average.

Source: Exchange filing, Bloomberg

• VA Tech Wabag, a leading pure-play water technology firm signed a concession agreement with Ghaziabad Nagar Nigam to design, build, finance and operate a new MLD recycle and re-use tertiary treatment reverse osmosis (TTRO) plant. WABAG will be the technical partner of the project and will execute the Design-Build-Operate contract with SPV worth Rs 594 crore.

Source: Exchange filing

Shares of sugar stocks tumbled amid reports that government is mulling restrictions on sugar exports as a precautionary measure to safeguard its own supplies.

• Government is planning to cap sugar exports at 10 million tonnes for the marketing year that runs through September, Bloomberg reported citing a person familiar with the matter.

• The aim is to ensure there are adequate stockpiles before the next sugar season starts in October, according to the report.

Source: Bloomberg

Shares of Ramco Cements Ltd. dropped 3.6% to the lowest level since July 2020 after the company's net profit for the fourth quarter missed the average estimate by analysts.

The company posted a net profit of Rs 124 crore, down 42% year-on-year, and lower than the Rs 144-crore estimate.

The company's revenue howeever jumped 5% to Rs 1,700 crore but were also lower than the estimate of Rs 1,800 crore.

Shares of SKF India Ltd. gained 3.5%, the most in eight weeks. Trading volume was five times the average for this time of the day.

Shares of Grasim Industries Ltd. fell 5.3%, the most since Feb. 24, ahead of its scheduled earnings release today.

The stock's trading volume of 17% is above the three-month, full-day average, and is set to decline for the second day.

Shares of Life Insurance Corporation of India Ltd. gained after the company said it will consider a dividend on May 30.

The company is scheduled to announce its Q4 results on May 30.

Shares of Piramal Enterprises Ltd. fell as much as 7.6%, the most in 11 weeks.

Trading in the company's put options was five times the average.

The decline came after the board approved the issuance of secured, rated, listed non-convertible debentures up to Rs 50 crore along with an option to retain oversubscription of up to Rs 550 crore aggregating up to Rs 600 crore on private placement basis.

Alembic Pharma received final approval from U.S. FDA for Pirfenidone tablets, 267 mg and 801 mg.

• The drug, which is therapeutically equivalent to Esbriet tablets of Genentech, is used for treatment of idiopathic pulmonary fibrosis.

• The tablets have an estimated market size of $548 million for twelve months ending December 2021, according to IQVIA.

Source: Exchange filing

• 10-Year Bond Yield loses 3bps To 7.35%, during the session.

Source: Bloomberg

Shares of Vaibhav Global fell nearly 8%, the most in almost four months.

• The jewelry and watch maker reported a 61% YoY decline in net profit for the quarter-ended March, post market hours on Monday.

• Trading volume is nearly twice the 30-day average volume.

Source: Bloomberg, Exchange filing

• Indian currency fell 0.1% to 77.59 during the session, before trimming losses.

Source: Bloomberg

• Shares of Grasim fell over 5.3%, the most in three months.

• The company is scheduled to reported its March-quarter earnings today.

• Trading volume is more than thrice the 30-day average. Of the nine analysts tracking the firm, eight maintain 'buy' and one suggests 'hold'. The return potential of the stock is 34.4%.

Source: Bloomberg

GIC will invest Rs 770 crore towards subscription of equity and warrants, followed by up to Rs 1,425 crore in one or more tranches within 18 months upon exercise of warrants.

• Post the investment, GIC will own 7.5% stake in ABFRL, while Aditya Birla Group will hold 51.9% stake.

• ABFRL plans to use this capital to accelerate its growth engine built around the strength of its current businesses along with a rapidly evolving play in emerging high-growth business models.

Source: Exchange filing

• Venus Pipes’ pre-market discovery price at Rs 335 per share, compared to its IPO price of Rs 326.

• The company’s IPO subscribed 16.31 times.

Source: Bloomberg

• Delhivery’s pre-market discovery price at Rs 493 per share, compared to its IPO price of Rs 487.

• The company’s IPO subscribed 1.63 times.

Source: BSE

Shares of Divi's Laboratories extended their decline for second day to hit a 52-week low. The stock over 5% in intraday trade after shedding 9.5% on Monday despite Q4 beat.

The fall comes after analysts slashed target price estimates after Q4, citing fall in Covid-relate drugs' sales among others.

Trading volume is more than 17 times the 30-day average. Of the 23 analysts tracking the company, 15 maintain 'buy', three suggest 'sell' and five recommend 'sell'. The return potential of the stock is 15.9%.

Source: Bloomberg, Brokerage notes

India's stock benchmarks opened higher, aided by metal, power, energy stocks.

The S&P BSE Sensex opened little changed, but gained 0.2% to 54,420.79. The NSE Nifty 50 rose by similar magnitude to 16,252.75. About 30 of the Nifty 50 constituents gained, 19 fell and 1 remained unchanged

The S&P BSE MidCap almost mirrored its larger peers, while S&P BSE SmallCap outperformed, rising 0.4%. Thirteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal adding over 1%.

The market breadth was skewed in the favour of bulls. About 1,378 stocks rose, 864 fell and 93 remained unchanged.

• Adani Ports

• Grasim Industries

• Zee Media Corporation

• Balrampur Chini

• Dalmia Bharat Sugar and Industries

• Ipca Laboratories

• Jyothy Labs

• RITES

• Strides Pharma Science

• Gujarat Alkalies and Chemicals

• Asian Granito

• e-Clerx Services

• Bank of India

• Aster DM Healthcare

• Minda Industries

• Metropolis Healthcare

• Maruti Suzuki: The carmaker has bought 12.09% stake in AI software company Sociograph Solutions for Rs 1.99 crore to create customised sales experience on the web, and in virtual and augmented reality.

• Marico: The consumer goods maker has acquired 53.98% stake in healthy breakfast and snack company HW Wellness.

• Natco Pharma: FMC Corporation has filed a suit against the company for a Process Patent in Delhi High court. The patent covers a process to prepare Chlorantraniliprole that is set to expire on Dec. 6, 2025.

Steel Authority of India Q4 FY22 (Consolidated, YoY)

• Revenue up 32.1% at Rs 30,758.82 crore

• EBITDA down 29.52% at Rs 4,337.56 crore

• EBITDA margin at 14.1% vs 26.43%

• Net profit down 28.56% at Rs 2,478.82 crore

• Recommended final dividend of Rs 2.25 per share

Zomato Q4 FY22 (YoY)

• Revenue up 75% at Rs 1,211 crore

• EBITDA loss at Rs 449 crore vs EBITDA loss of Rs 154 crore

• Net loss at Rs 360 crore vs net losss at Rs 134 crore

• Gross Order Value at Rs 585 crore vs Rs 331 crore

• Average monthly transacting customers: 1.57 crore vs 0.98 crore

Also Read: Zomato's Q4 Loss Widens Even As Revenue Jumps 75%

Bharat Electronics Q4 FY22 (Consolidated, YoY)

• Revenue down 8.35% at Rs 6,339.81 crore

• EBITDA down 20.36% at Rs 1,577.53 crore

• EBITDA margin at 24.88% vs 28.64%

• Net profit at 15.63% at Rs 1,154.2 crore

• Recommended final dividend of Rs 1.5 per share

Ramco Cements Q4 FY22 (Consolidated, YoY)

• Revenue up 4.88% at Rs 1713.4 crore

• EBITDA down 34.32% at Rs 294.90 crore

• EBITDA margin at 17.21% vs 27.48%

• Net profit down 45.15% at Rs 118.57 crore

• Recommended dividend of Rs 3 per share

The New India Assurance Company Q4 FY22 (Consolidated, QoQ)

• Revenue down 8.2% at Rs 8,132.61 crore

• EBITDA loss at Rs 945.52 crore vs EBITDA profit at Rs 93.41 crore

• EBITDA margin at -11.63% vs 1.05%

• Net loss at Rs 549.8 crore vs net profit at Rs 493.91 crore

• Recommended final dividend of Rs 0.3 per share

Graphite India Q4 FY22 (Consolidated, YoY)

• Revenue up 49.38% at Rs 844 crore

• EBITDA up 12.82% at Rs 88 crore

• EBITDA margin at 10.43% vs 13.81%

• Net profit up 48.44% at Rs 95 crore

• Recommended dividend of Rs 10 per share

• Appointed MK Chhajer as chief financial officer

BirlaSoft Q4 FY22 (Consolidated, QoQ)

• Revenue up 2.76% at Rs 1101.44 crore

• EBIT up 7.35% at Rs 154.58 crore

• EBIT margin at 14.03% Vs 13.43%

• Net profit up 16.61% at Rs 132.89 crore

• Recommended final dividend of Rs 3 per share

• Approved buyback of up 78 lakh shares at Rs 500 apiece

Vaibhav Global Q4 FY22 (Consolidated, YoY)

• Revenue down 8.7% at Rs 685.18 crore

• EBITDA down 54.83% at Rs 38.36 crore

• EBITDA margin at 5.6% vs 11.32%

• Net profit down 60.9% at Rs 27.2 crore

Asian stocks fluctuated while U.S futures fell as traders weighed potential slowdown in the global economy and China's measures to boost growth.

Equities were volatile in Japan, Australia and South Korea. Nasdaq futures tumble after Snap Inc. said it would not meet revenue and profit forecasts for the second quarter. Futures of Meta Platforms Inc. and Alphabet Inc. tumbled following Snap's statement. The Singapore-traded SGX Nifty, an early barometer of India's benchmark Nifty 50, rose nearly 0.5% to 16,253 points as of 6:30 am.

In focus today are U.S. President Joe Biden’s comments that China tariffs imposed by the Trump administration are being reviewed. Elsewhere, West Texas Intermediate crude fell 0.5% to $109.74 a barrel. Bitcoin fell nearly 4% to $29,000.