Sensex, Nifty Fall Dragged By I.T. Stocks Ahead Of Q4 Earnings; Power Stocks Surge

India's stock benchmarks declined, dragged by information technology stocks ahead of March-quarter earnings. Tata Consultancy Services is scheduled to report Q4 earnings post market hours on Monday.

The Sensex shed over 0.8% to 58,964.57. The Nifty also declined by similar magnitude to 17,674.95.

The broader indices outperformed their larger peers with S&P BSE MidCap and S&P BSE SmallCap rising 0.4%. Ten of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Information Technology losing 1.5%. On the flipside, S&P BSE Utilities and S&P Power rose over 5%.

The market breadth was skewed in the favour of bulls. About 2,116 stocks advanced, 1,440 declined and 129 remained unchanged.

• NCLT, Mumbai allows 60 days to Kalrock Jalan consortium to implement resolution plan

• The consortium had moved an application seeking extension of resolution plan deadline

• Jet Aircraft Maintenance Engineers Welfare Association had opposed the application saying 270 days is the maximum time limit for implementation of resolution plan

Source: NCLT proceedings

• AU Small Finance Bank rises for eighth day, on track for longest winning streak in 14 months

• Indian Bank rises for ninth day, extending longest winning streak in five years.

• JK Cement rises for 10th day, on track for longest winning streak in five years

• Angel One rises for ninth day, set for longest winning streak

Source: Bloomberg

• PE firm KKR to acquire a 9.99% stake in Shriram General Insurance.

• KKR says investment builds on strong tailwinds in the Indian general insurance industry and Shriram General’s continued expansion into new segments and investment in its digital capabilities.

Source: Press release

Shares of Ambuja Cements rose over 9.5%, on course to extend winning streak for the seventh day.

• This is the most intraday gain for the stock in 16 months.

• The company said that it was well-placed to meet cement demand, which it expects to grow 7% in 2022, in its annual report on April. 4.

• Trading volume on the stock is nearly six times the 30-day average volume at this time of the day. The relative strength index on the stock is 75, suggesting it may be overbought.

• Of the 46 analysts tracking the company, 34 maintain 'buy', eight suggest 'hold' and four recommend 'sell'. The return potential on the stock is 39%.

Source: Exchange filing, Bloomberg

Mixed start for European markets ahead of key earnings, central bank meetings. French CAC advances after President Macron and his challenger Marine Le Pen look set to contest for the country's Presidency.

• NTPC has 4.77 million shares change hands in a large trade.

• Indus Towers has 1.28 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

Shares of Sandur Manganese & Iron Ores climbed 20% on the BSE to a record.

The company approved raising funds via a rights issue.

• Rights issue of 1.8 crore equity shares.

• 2 new equity shares for 1 equity share held as on the record date.

• Rights issue priced at Rs 10 per share.

The Karnataka-based company also entered into a power purchase agreement with Renew Green Energy Solutions for supply of solar and wind power.

Over the last 52 weeks, the stock has risen 296.20%. Trading volume is over seven times the 30-day average volume at this time of the day. The relative strength index on the stock is 77, suggesting it may be overbought.

Source: Exchange Filing, Bloomberg

India's stock benchmarks declined, dragged by information technology stocks ahead of Q4 earnings season. Tata Consultancy Services Ltd. is scheduled to report its earnings for quarter-ended March post market hours on Monday.

The Sensex fell over 350 points to 59,091.77. The NSE Nifty declined 0.5% to hover around 17,700.

The broader indices outperformed their larger peers with both S&P BSE MidCap and SmallCap gaining 0.6%. Fourteen over the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Utilities and Power jumped over 2.7%. On the flip side, S&P BSE Information Technology shed nearly 1.5%.

The market breadth was skewed in the favour of bulls. About 2,190 stocks advanced, 1,294 declined and 124 remained unchanged.

Godrej Capital is the financial services arm of the Godrej Group and is the holding entity for Godrej Housing Finance and Godrej Finance.

• The company aims to build a balance sheet of Rs 30,000 crore by 2026.

• Godrej Industries to invest Rs 1,500 crore in Godrej Capital and expects the business to require Rs 5,000 crore of equity investment by 2026.

• Godrej Capital currently is operational in Mumbai, Bengaluru, Delhi NCR, Ahmedabad, and Pune and will soon be operational in six new cities.

• The company will continue to focus on the growth of secured loans consisting of home loans and loans against property.

Source: Exchange filing

Multi Commodity Exchange of India plans to advise Chittagong Stock Exchange on setting up a commodities derivatives platform in Bangladesh.

• The two firms will sign an agreement on APril 12.

• MCX will provide consultancy in regulations, products, clearing and settlement services, trading and warehousing.

Source: Exchange Filing

Indian government bond yield rose as traders weighed the likelihood of rate hikes after a hawkish turn by the central bank at its policy review on Friday. The rupee was little changed.

• 10-year yield advanced 5bps to 7.17%, adding to last Friday’s move of 20bps which was the biggest one-day increase in nearly two years.

• USD/INR steady at 75.915

Source: Bloomberg

• Bharti Airtel has 1.4 million shares change hands in a large trade

• Zomato has 1 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

Most yields along the India sovereign yield curve rose, with 5-year bonds moving the most in Monday morning trading.

• The 1-year yield remained unchanged at 4.856%

• The 10-year yield rose 6.1bps to 7.18%

• The 30-year yield rose 6.3bps to 7.466%

• The 2-year-10-year yield spread was 199.4bps, vs previous close 195.8bps.

Source: Bloomberg

Tata Steel acquired 32.64 crore equity shares of Rs 10 each at premium of Rs 9.15 per share, for Rs 625 crore.

• Post the acquisition, Tata Steel Mining will continue to be a wholly-owned subsidiary of the company.

• Tata Steel logged a revenue of Rs 536.73 crore for FY2020-21.

Source: Exchange filing, Bloomberg

• LIC Housing raised to 'accumulate' at Prabhudas Lilladher; price target set at Rs 420, an implied upside of 6.5%.

• Federal Bank raised to 'buy' from 'accumulate' at Prabhudas Lilladher; price target set at Rs 135, an implied return of 34%.

Source: Bloomberg

Shares of Hyderabad-based biotech firm SMS Lifesciences hit 20% upper circuit, the first such instance in nearly 10 months since June 21, 2021.

• U.S. FDA completed inspection at the company's API manufcturing facility located in Telangana.

• The inspection commenced on April 4 and concluded on April 8.

• Trading volume is over 68 times the 30-day average volume at this time of the day. The relative strength index on the stock is at 76, suggesting it may be overbought.

Source: Exchange filing, Bloomberg

Shares of Ruchi Soya Industries surged for the third day in a row. The stock added over 8.2%. Over the last three days, the scrip has risen over 25%.

• The rise comes after the company's shares issued in the recently-concluded FPO started trading on Friday.

• In an exchange notification, Ruchi Soya said that the company has approved evaluating the best way to enhance synergies with Patanjali Ayurved Ltd.

• The company has also decided to change the name to Patanjali Foods Ltd.

Source: Exchange filing

• Veranda Learning’s pre-market discovery price at Rs 157 per share, compared to its IPO price of Rs 137.

• The company’s IPO subscribed 3.53 times.

Source: Bloomberg

• Tata Teleservices has 1.93 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

Shares of Hindustan Aeronautics Ltd. rose nearly 3.8% to a record Rs 1,681.4 apiece.

• The company, along with L&T consortium, has emerged as L1 to make 5 PSLVs for ISRO.

• PSLV is Polar Space Launch Vehicles.

• The contract is yet to be formalised or awarded.

• Trading volume on the stock in more than 7.5 times the 30-day average volume at this time of the day. The relative strength index on the stock is 80, suggesting it may be overbought.

Source: Exchange Filing, Bloomberg

India's stock benchmarks opened lower, dragged by financials and information technology stocks, amid concerns over inflation following hawkish comments from U.S. Federal Reserve officials. Focus shifts to March-quarter earnings with Tata Consultancy services kickstarting the season on Monday. Investors will also await U.S. and India's CPI Inflation data due on Tuesday. This is a truncated week due to local market holidays on Thursday and Friday.

The S&P BSE Sensex fell over 350 points (equivalent to 0.6% to 59,080.51. The NSE Nifty also declined by similar magnitude to 17,702.05.

The broader indices outperformed their larger peers with S&P MidCap gaining 0.4% and S&P BSE SmallCap adding 0.7%. Thirteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Power and Realty rising over 3%.

The market breadth was skewed in the favour of bulls. About 1,969 stocks advanced, 863 declined and 148 remained unchanged.

Glenmark Pharma's subsidiary has received approval from Drug Controller General of India to conduct a phase 1 clinical trial of its molecule to treat patients with advanced solid tumors and Hodgkin's Lymphoma.

• The study will ascertain the safety and tolerability of GRC 54256, the novel molecule, as monotherapy and also in combination with other checkpoint inhibitors.

• The trial will begin in India by June 2022.

Source: Exchange filing

Indian government bond yields may track a rise in their U.S. counterpart as quickening inflation fans fears of a tighter global monetary policy.

• 10-year yields soared 20bps to 7.12% on Friday, the biggest one-day increase in nearly two years

• USD/INR fell 0.1% to 75.9050 on Friday.

• Global funds sold a net Rs 575 crore of India stocks Friday: NSE

• They sold Rs 101 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 80 crore of corporate debt

• State-run banks bought Rs 4,110 crore of sovereign bonds on April 8: CCIL data. Foreign banks sold Rs 1,790 crore of bonds.

Source: Bloomberg

• Tata Consultancy Services: Macquarie reinstated coverage of the stock with a recommendation of 'outperform'; price target set at Rs 4,440, an implied return of 20%.

• Infosys: Macquarie reinstated coverage of the stock with a recommendation of 'outperform'; price target set at Rs 2,170, an implied return of 20%.

• Wipro: Macquarie reinstated coverage of the stock with a recommendation of 'neutral'; price target set at Rs 630, an implied return of 7.9%.

• HCL Technologies: Macquarie reinstated coverage of the stock with a recommendation of 'outperform'; price target set at Rs 1,410, an implied return of 21%.

• Tech Mahindra: Macquarie reinstated coverage of the stock with a recommendation of 'outperform'; price target set at Rs 1,710, an implied return of 18%.

• Tata Consultancy cut to 'sell' from 'buy' at Nirmal Bang; price target set at Rs 3,245, an implied return of -12%.

• Wipro cut to 'accumulate' from 'buy' at Nirmal Bang; price target set at Rs 571, an implied return of -2.2%.

• Infosys cut to 'sell' from 'accumulate' at Nirmal Bang; price target set at Rs 1,653, an implied return of -8.9%.

• HCL Tech cut to 'accumulate' from 'buy' at Nirmal Bang; price target set at Rs 1,262, an implied return of 8.3%.

• Persistent Systems cut to 'sell' from 'under review' at Nirmal Bang; price target set at Rs 3,535, an implied return of -25%.

• Tech Mahindra cut to 'accumulate' from 'buy' at Nirmal Bang; price target set at Rs 1,475, an implied return of 1.8%.

Source: Bloomberg

• Veranda Learning Solutions

• Tata Consultancy Services

• Delta Corp

• Kesoram Industries

• Wipro: The company appointed Anis Chenchah as CEO, Asia Pacific, India, Middle East and Africa region, after NS Bala decided to move back to the U.S. for personal reasons.

• Tata Motors: Jaguar Land Rover’s retail sales in Q4 continue to be hit by the global semiconductor shortage, but the company saw a gradual improvement in chip supply.

• IDBI Bank: The RBI imposes monetary penalty of Rs 90 lakh for non-compliance with guidelines on fraud classification and reporting, strengthening the controls of payment ecosystem and cyber security framework.

• Axis Bank: The RBI imposes penalty of Rs 93 lakh for non-compliance with RBI guidelines on loans and advances, know your customer and levy of penal charges on non-maintenance of minimum balance in savings accounts.

• Bandhan Bank: Housing Development Finance Corp. sold 49.63 million shares of Bandhan; Society General bought 19.08 million shares: BSE

• RITES: In pact with IIT-Delhi for road design, safety project.