Stock Market Today: Nifty, Sensex Log Worst Week In Over A Month Amid Iran-Israel Conflict

• The local currency strengthened by 7 paise to close at 83.47 against the U.S dollar.

• It closed at 83.54 on Thursday.

Source: Bloomberg

India's benchmark indices reversed a four-day losing streak to end Friday higher as heavy-weight HDFC Bank Ltd., Bajaj Finance Ltd. rose. However, the benchmark posted worst weekly fall in over a month as worries over ongoing conflict between Israel and Iran dented investors' sentiment.

The NSE Nifty 50 settled 151.15 points or 0.69% higher at 22,147.00, and the S&P BSE Sensex ended 599.34 points or 0.83% up at 73,088.33.

Intraday, the benchmarks declined nearly 1% amid investor concerns that the West Asia turmoil might escalate to war after reports said Israel likely have launched an attack on Iran.

During the day, the Nifty slumped as much as 0.99% to 21,777.65, while the Sensex fell 0.93% to 71,816.46.

Key global equity indices were under pressure this week due to escalation in geopolitical events, said Shrikant Chouhan, head equity research, Kotak Securities. In the near term,  market participants will keep a tab of the geopolitical developments and the impact of that on equity markets and commodities including oil and gold.

"The BSE Midcap and the BSE Smallcap indices also ended in the negative this week but outperformed their large-cap peers. Most of the sectoral indices also ended the week in the red, with the BSE Oil & Gas index being an exception," he said.

The benchmark recorded worst weekly declines as ongoing conflict between Israel and Iran weighed on risk appetite of investors, prompting them to flock into safe haven assets.

The NSE Nifty 50 and the S&P BSE Sensex declined 1.65% and 1.56%, respectively in the week ended on April 19. This is the worst decline since March 15.

HDFC Bank Ltd., ICICI Bank Ltd., Bharti Airtel Ltd., Bajaj Finance Ltd., and Mahindra & Mahindra Ltd. added positively to the index.

Larsen & Toubro Ltd., Tata Consultancy Services Ltd., Infosys Ltd., Bajaj Auto Ltd., and HCL Technologies Ltd. limited gains in the index.

All 12 sectors ended lower this week on NSE, with the NSE Nifty IT emerging as the top loser.

Benchmark indices outperformed the broader markets. The S&P BSE Midcap ended 0.39% lower, and the S&P BSE Smallcap settled 0.04% lower.

On BSE, 11 sectors declined and nine advanced out 20. The S&P BSE Realy index was the worst performing sector, and the S&P BSE Bankex emerged as the top performing sector.

Market breadth was skewed in favour of the sellers. Around 2,063 stocks declined, 1,725 stocks advanced, and 115 remained unchanged on BSE.

• Softbank-Backed Oyo is looking to sell bond sales worth $450 million for refinancing.

Source: Bloomberg

• Hindustan Construction Co. Ltd. raised Rs 350 crore via rights issue.

• The rights issue was subscribed 2.5 times.

Source: Exchange filing

Shares of Bharti Airtel Ltd. rose 2.43% to Rs 1,296.50, the highest level since its listing on Feb 15, 2002. It was trading 1.30% higher at Rs 898.50 as of 2:52 p.m., as compared to 0.71% advance in the NSE Nifty index.

• Premier Explosives approved stock split in the ratio of 1:5.

• The company approved raising up to Rs 400 crore via multiple instruments.

Source: Exchange filing

• Revenue down 11% to Rs 7,549 crore from Rs 8,509 crore

• Ebitda down 14% at Rs 3,649 crore from Rs 4,255 crore

• Margin down 170 bps at 48.3% from 50%

• Net profit down 21% at Rs 2,038 crore from Rs 2,583 crore

Source: Exchange filing

• Saleable silver production is projected to be between 750-775 metric ton.

• Mined metal is expected to be between 1,100-1,125 kilo ton.

• Mefined metal is expected to be in the range of 1,075-1,100 kilo ton.

• Zinc cost of production is expected to be between US$ 1,050-1,100 per metric ton.

Source: Exchange filing

• The Rail Vikas Nigam Ltd. has emerged as the lowest bidder for a construction project for the South Central Railway.

• The construction project is to double the track of Ankai Station.

Source: Exchange filing

• Revenue up 33% to Rs 564.6 crore from Rs 424.5 crore

• Ebitda up 46.01% at Rs 135.5 crore from Rs 92.8 crore

• Margin up 213 bps at 23.99% from 21.86%

• Net profit up 52.57% at Rs 103.6 crore from Rs 67.9 crore

• Elecon Engineering Co. Ltd. recommended dividend share at Rs 2 per share.

• The company proposed stock split at Rs 1 per share from Rs 2 per share.

Source: Exchange filing

The benchmark equity indices continued to trade lower on Friday as reports of tension in West Asia impacted investor sentiments. Larsen & Toubro Ltd., Infosys Ltd. and Axis Bank Ltd. weighed the most amid weak global cues. Intraday, the benchmarks declined nearly 1% amid investor concerns that the West Asia turmoil might escalate to war. As of 12:08 p.m., the NSE Nifty 50 was trading 76.15 points or 0.35% lower at 21,919.70 and the S&P BSE Sensex was trading 253.11 points or 0.35% down at 72,235.88.

During the day, the Nifty slumped as much as 0.99% to 21,777.65, while the Sensex fell 0.93% to 71,816.46.

"Safe-haven currencies, gold and crude oil jumped after reports of a sharp escalation in Middle East conflicts," Avdhut Bagkar, technical and derivatives analyst at StoxBox, said.

The Indian market looks set to extend recent losses on Friday as upbeat US economic data and hawkish comments from more Fed officials poured cold water on rate-cut hopes, Bagkar said.

Larsen & Toubro Ltd., Infosys Ltd., Axis Bank Ltd., Tata Consultancy Services Ltd. and Reliance Industries Ltd. weighed on the Nifty.

HDFC Bank Ltd., ITC Ltd., Mahindra & Mahindra Ltd., Grasim Industries Ltd. and Bharti Airtel Ltd., limited losses in the index.

All the 12 sectors on the NSE were trading in the red, with the Nifty Realty falling the most.

The broader markets underperformed the benchmark indices. The BSE MidCap fell 0.97% and the BSE SmallCap declined 0.65%.

All the sectors on the BSE were trading in negative, with Realty emerging as the top loser.

The market breadth was skewed in favour of the sellers as 2,380 stocks declined, 1,195 rose and 130 remained unchanged on the BSE.

Benchmark indices pared losses after falling almost 1% each on weak global cues. Sensex was trading 0.3% higher at 72,705.76, while the Nifty 50 was up 0.2% at 22,038.80 as of 1:05 p.m.

Shares of Bata India Ltd. declined 2.72% to Rs 1,307, the lowest level since April 26, 2021. It was trading 1.73% down at Rs 1,320.25 as of 1:03 p.m., as compared to 0.18% advance in the NSE Nifty index.

• Deepak Fertilisers And Petrochemicals Corp Ltd.'s unit Mahadhan Agritech has signed a pact with Israel's Haifa Group for agricultural innovation.

Source: Exchange filing

• Manappuram Finance Ltd. has approved raising up to $500 million via dollar bonds.

Source: Exchange filing

• Canara Bank Ltd. set May 15 as record date for stock split.

Source: Exchange filing

• Motilal Oswal Financial Services Ltd.'s Board will meet on April 26 to consider issuance of bonus shares.

Source: Bloomberg

• Dixon Technologies (India) Ltd.'s subsidiary Padget Electronics in pact with Longcheer Mobile.

• The pact is for manufacturing and sale of smart phones for global brands.

Source: Exchange filing

There's no damage to Iran's I nuclear sites, the International Atomic Energy Agency said in a post on X. The director general reiterated its view that nuclear facilities should never be a target in military fights, and called to exercise 'extreme restraint' from everybody.

Early in the morning, news reports said Israel likely have launched an retaliatory attack on Iran after an explosion was heard on Iran's central city Isfahan. The city has several military base and nuclear facilities.

• Ind-Swift Laboratories Ltd. is to open its subsidiary in Dubai.

• The wholly-owned subsidiary will be named Ind-Swift (Dubai) Ltd.

Source: Exchange filing

Most brokerages have cut the earnings estimates of HDFC Life Insurance Co. and trimmed their target price due to a weaker value of new business for the company. The VNB margin missed forecasts and product mix and guidance for the current financial year was healthy, yet relatively conservative compared to past years, Morgan Stanley said in a note on April 18.

• Aurionpro Solutions Ltd. acquired up to 67% stake in Arya.ai operated via legal entity Lithasa Technologies.

Source: Exchange Filing

Shares of Sun Pharma Advance Research company declined as much as 5.00% to Rs 332.55, the lowest level since Feb 13. It remained locked in the lower circuit as of 10:39 a.m., compared to 0.61% decline the NSE Nifty 50 index.

The scrip has hit 5% lower circuit on April 10, and struggling to come out it for six sessions.

Indus Towers rose to their highest level since listing as the company signed a memorandum of understanding with the NTPC Green Energy to develop renewable power projects.

The company, a joint venture with the NTPC Green energy, develop the grid connected renewable energy based power projects including solar, wind, Energy storage, according to an exchange filing.

Shares of Indus Towers Ltd. rose 4.15% to Rs 358.70, the highest level since its listing on Dec 28, 2012. It was trading 4.02% higher at Rs 358.25 as of 10:02 a.m., as compared to 0.45% decline in the NSE Nifty 50 index.

The scrip has gained 161.97% in 12 month, and on year-to-date basis it has risen 80.38%. Total traded volume so far in the day stood at 0.64 times its 30-day average. The relative strength index was at 80.91, which implied the stock is overbought

Out of 22 analysts tracking the company, 11 maintain a 'buy' rating, six recommend a 'hold,' and six suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 29.3%

Shares of Infosys Ltd. declined nearly 3% Friday after the tech giant's revenue declined in the fourth quarter and guided for a modest revenue increase in FY25.

India's second-largest IT giant's revenue declined 2.3% on sequential basis to Rs 37,923 crore, compared to Rs 38,576 crore estimate by a Bloomberg survey.

The scrip fell as much as 2.85% to Rs 1,378.75 apiece and pared losses to trade 2.69% lower at Rs 1,381.1 apiece, as of 9:20 a.m. This compares to a 0.66% decline in the NSE Nifty 50 Index.

Infosys has risen 12.08% in 12 months. The relative strength index was at 22.

Out of 46 analysts tracking the company, 32 maintain a 'buy' rating, seven recommend a 'hold,' and seven suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 16.0%.

India's benchmark indices opened lower Friday as risk off sentiment heightened among investors after Israel allegedly launched retailatory attack against Iran. 

Losses in shares of Infosys Ltd., Larsen & Toubro Ltd., and HDFC Bank Ltd. pressured the indices further.

As of 09:22 a.m., the NSE Nifty was trading 172.95 points or 0.79% lower at 21,822.90, and the S&P BSE Sensex was trading 546.00 points or 0.75% down at 71,942.99.

Friday, early morning, an explosion was heard in Iran's Isfahan city, which is one of the launch site for the missile and drone attack on Israel on Iran, Fars News agency reported.

The Nifty 50 index has failed to cross 22,300 levels and witnessed sharp profit booking across sectors and stocks to close at three-weeks low, Vikas Jain, senior research analyst at Reliance Securities. RSI and other technical indicators are oversold on hourly charts after a strong volatility with respect to the weekly expiry. Highest call OI has moved lower to 22,300 strike while on the downside the highest put OI is at 22,000 for the monthly expiry  

Infosys Ltd., Larsen & Toubro Ltd., Reliance Industries Ltd., Axis Bank Ltd., and Tata Consultancy Services Ltd. dragged the benchmark

ITC Ltd., Oil and Natural Gas Corp of India, Apollo Hospitals Enterprises Ltd., Cipla Ltd., Tata Steel Ltd. limited losses in the benchmark index.

All 12 sectors declined on NSE. The NSE PSU Bank plunged over 2% to become the top loser among sectoral indices. The NSE Nifty FMCG index emerged as the top performer.

Broader markets underperformed benchmark indices. The S&P BSE Midcap index fell 1.05%, and the S&P BSE Smallcap index declined 1.17%.

On BSE, all 20 sectors declined with the S&P BSE Realty sector emerging as the top loser. 

Market breadth was skewed in favour of the sellers. Around  2,114 stocks rose, 672 stocks decliend, and 89 stocks remained unchanged on BSE.

• The yield on the 10-year bond opened flat at 7.20%.

Source: Bloomberg

The NSE Nifty 50 was trading 34.35 points or 0.61% lower at 21,861.50, and the S&P BSE Sensex was 454.69 points or 0.62% down at 72,488.99.

• The local currency weakened 4 paise to 83.58 against the U.S. Dollar, marking the lowest level.

• It closed at 83.54 on Thursday.

• The currency also recorded its lowest opening at 83.55 against the greenback

Source: Bloomberg

• Indo Count Industries Ltd. has acquired home fashions brand Wamsutta from the US-based Beyond Inc for $10.25 million.

Source: Exchange filing

• Happiest Minds Technologies Ltd. is to acquire Macmillan Learning India for Rs 4.5 crore.

Source: Exchange filing

Brent crude oil prices surged 3.74% to $90.37 per barrel on Friday after media reports said that Israel launched a missile attack as a retaliatory measure against Iran's drone attack on April 13.

Brent prices have risen 3% since the start of April and 18.43% year-to-date due to various geopolitical tensions in West Asia, along with a tight market for crude supply.

• Inox Wind Ltd. received a repeat order for 210 Megawatt for its 3 Megawatt wind turbine Generators.

• Order from Hero Future Energies includes multi-year operations and maintenance services.

Source: Exchange filing

• U.S. Dollar Index at 106.28

• U.S. 10-year bond yield at 4.52%

• Brent crude up 3.10% at $89.81 per barrel

• Nymex crude up 3.23% at $85.40 per barrel 

• Bitcoin was down 4.12% at $60,911.43

• Motilal Oswal maintains 'buy' on Infosys with a target price Rs 1,650 per share.

• Strong deal wins improve visibility for FY26 growth.

• Management sees a good pipeline of large deals despite the unchanged demand environment.

• Expects FY25 dollar constant currency revenue growth of 2.5% year-on-year.

• Expects double-digit dollar CC revenue growth in FY26 as macro visibility improves.

• Expects FY25 EBIT margin of 21.1%, up 40 basis points year-on-year.

• Lowers FY25/FY26 earnings-per-share estimates by 5–6% on weak Q4, muted FY25 revenue growth guidance.

• Views Infosys as a beneficiary of IT spending acceleration over the medium term.

• Citi Research maintained a 'Neutral' rating with revised price target of Rs. 1,550. The price target implied an upside of 8.7%.

• The brokerage believes correlation between TCV and growth is limited for the sector

• It recommend to buy Infosys stock at dips at Rs. 1,350 levels.

• Citi Research retained pair trade of UW TCS and OW Infosys.

• Infosys 1QFY25 should be better on the back up ramp up of deals.

• Jefferies maintained a 'Buy', while it cut the Target Price to Rs 1,630 from Rs. 1,740.

• The target price implied an upside of 14% as the stock trade below its 5 year median.

• Infosys's revenue missed estimates mainly due to contract re-negotiation and reduction in scope.

• Strong deal wins will provide the software services giant comfort over FY24-FY27.

• They expect the margins to rise to 21.1% by FY27.

• The company may offer higher dividends vs buybacks, which should support multiples.

Dhanlaxmi Bank Ltd. has received the Reserve Bank of India's nod for appointment of Ajith Kumar KK as MD and CEO for three years.

Source: Exchange filing

• Nomura maintains 'buy' rating on HDFC Life but has also cut the target price from Rs 740 to Rs 680 apiece, implying a potential upside of 12% from the previous close.

• FY24 margin contraction due to operating leverage gap, rising share of the low-margin ULIPs.

• Builds VNB margins of 27%, lower than FY23 levels.

• Maintains rating on balanced product/distribution profile.

• Morgan Stanley maintains an 'overweight' rating on HDFC Life Insurance Co. and cuts the target price from Rs 780 apiece to Rs 745 per share, implying a potential upside of 23% from the previous close.

• Cuts FY25/26 value of new business estimates by 7%/8%.

• Expects muted stock performance in the near term.

• Sees upside for HDFC Life from one-year perspective.

Indus Towers Ltd. signed a MoU with NTPC Green Energy for joint development of renewable energy-based power projects, including solar, wind and energy storage solutions.

Source: Exchange filing

Money Market Update

The Indian rupee had closed at a new low of Rs 83.543 against the greenback on Thursday.

• Nifty April futures down by 0.54% to 22,055.2 at a premium of 99.35 points.

• Nifty April futures open interest up by 4.13%.

• Nifty Bank April futures down by 1.01% to 47,175.05 at a premium of 105.6 points.

• Nifty Bank April futures open interest up by 2.83%.

• Nifty Options April 25 Expiry: Maximum call open interest at 23,000 and maximum put open interest at 22,000.

• Bank Nifty Options April 24 Expiry: Maximum call open interest at 49,000 and maximum put open interest at 45,000.

• Securities in ban period: Balrampur Chini Mills, Bandhan Bank, Exide Industries, GNFC, Hindustan Copper, Idea, Metropolis, National Aluminium, Piramal Enterprises, SAIL, and Zee Entertainment Enterprises.

• Moved out of short-term ASM framework: Coffee Day Enterprises, Indostar Capital Finance, Paramount Communications, Ujjivan Small Finance Bank.

• Price Band change from 10% to 5%: Dolphin Offshore Enterprises (India).

• Price Band change from 20% to 10%: Ramco Systems

• Ex/record AGM: Schaeffler India.

• Ex/record dividend: Schaeffler India.

• GMR Power and Urban Infra: Saraswati Commercial (India) bought 40 lakh shares (0.66%) at Rs 54.96 apiece. Varanium India Opportunity sold 34.5 lakh shares (0.57%) at Rs 54.97 apiece.

Vodafone Idea: The FPO was subscribed 0.26 times on day 1. The bids were led by institutional investors (0.61 times), followed by non-institutional investors (0.28 times) and retail investors (0.06 times).

• Nestle: The company reaffirmed its commitment to high standards of nutrition, quality and safety. It also claimed that the media reports had no material impact on its operations or performance.

• Gokaldas Exports: The Bengaluru-based apparel maker has launched a qualified institutional placement to raise Rs 600 crore. The issue price has been set at Rs 775 apiece, representing a discount of 4.05% to the last closing price. The floor price is Rs 789.99.

• ITC: The company’s arm has acquired a 100% stake in Blazeclan Tech for Rs 485 crore.

• Infosys: The company's arm will acquire a 100% stake in In-Tech Holding GmbH, engaged in engineering R&D services.

• GMR Airports Infrastructure: The company's Delhi, Hyderabad and Mopa airports reported increased passenger traffic and handled the highest-ever cargo volumes in FY24.

• BSE: The company clarified that the CEO doesn't endorse any investment advisory communication based on a fake video of MD and CEO Sundararaman Ramamurthy being circulated on social media.

• Rail Vikas Nigam: The company signed an MoU with Turkish engineering consulting and contracting firm Tumas India for collaboration in public transportation and infrastructure projects in India.

• Torrent Power: The company acquired SPV MSKVY Ninth Solar as part of the 306 MW Nasik project for Rs 50 lakh.

• Container Corp.: The company signed an MoU with PSA Mesa Supply Chain to collaborate in offering seamless and cost-effective end-to-end logistics services to customers.

• Hindustan Construction Co.: Rahul Rao has resigned from the position of chief financial officer and key managerial personnel of the company, effective April 18, and appointed Girish Gangal for the same.

• Oriental Hotels: The company appointed Paras Puri as CFO, effective April 19. Nitin Bengani will step down as CFO due to internal transfers.

• Goa Carbon: The operations at the company's Bilaspur Unit have been temporarily shut down for maintenance work.

• SJVN: The company’s unit incorporated a JV with an Assam power distribution company named SGEL Assam Renewable Energy Ltd. to carry out business in the field of power generation from all renewable energy sources, including hydropower, by setting up power plants.

• Hinduja Global Solutions: The company’s unit entered into an agreement to acquire 51% of Seven Star Balaji Broadband for Rs 18.4 crore. The acquisition will open growth opportunities in internet services, especially in Mumbai.

• Mahindra Lifespace Developers: The company sold homes worth Rs 350 crore at the Bengaluru project in two days.

• Federal Bank: The company received an RBI nod to open a representative office in Saudi Arabia.

• Vesuvius India: The company inaugurated a new Mould Flux plant in Visakhapatnam to increase investment outlay to up to Rs 1,000 crore to strengthen manufacturing capabilities in India.

• Landmark Cars: The company’s Q4 pro-forma revenue was up 8.2% at Rs 1,311 crore and partnered with three new OEMs and entered new geographies in FY24.

Earnings in Focus

Wipro, Hindustan Zinc, Jio Finance, HDFC AMC, Elecon Engineering.

Infosys Q4 Earnings (Consolidated, QoQ)

• Revenue down 2.3% at Rs 37,923 crore vs Rs 38,821 crore.

• EBIT down 4.3% at Rs 7,621 crore vs Rs 7,961 crore.

• Margin at 20.1% vs 20.5%.

• Net profit up 30.45% at Rs 7,975 crore vs Rs 6,113 crore. Note: Net profit was above estimates due to the Rs 1,934 crore interest on the income tax refund.

• To pay a final dividend of Rs 20 per share and a special dividend of Rs 8 per share.

Bajaj Auto Q4 Earnings (Consolidated, YoY)

• Revenue up 29% at Rs 11,485 crore vs Rs 8,905 crore (Bloomberg estimate: Rs 11,114 crore).

• Ebitda up 34.3% at Rs 2,306 crore vs Rs 1,717 crore (Bloomberg estimate: Rs 2,187 crore).

• Margin at 20.1% vs 19.3% (Bloomberg estimate at 19.7%).

• Net profit up 35% at Rs 1,936 crore vs Rs 1,433 crore (Bloomberg estimate: Rs 1,844 crore).

• Recommended a dividend of Rs 80 per share.

ICICI Securities Q4 Earnings (Consolidated, YoY)

• Net profit at Rs 537 crore vs Rs 263 crore (Bloomberg estimate at Rs 478 crore).

• Total income up 75% at Rs 1,544 crore vs Rs 885 crore.

• Board approved the re-appointment of Vijay Chandok as MD and CEO, effective May 7.

• Board approves appointment of T. K. Srirang as the joint MD effective May 1 for five years.

Benchmarks in Japan fell sharply after data showed the country's inflation rose less than expected, which weighed on investors' expectation of a rate hike in the near term.

Japan's CPI came at 2.7% in March, just below 2.8% forecasted by economists in a Bloomberg's survey. Traders expect the Bank of Japan to hold rate steady in the upcoming week, and hike in October, Bloomberg reported.

The Nikkei 225 was trading 874.62 points or 2.30% lower at 37,199.74 as of 06:55 a.m.

Markets in Australia, South Korea were trading in loss, tracking overnight decline on Wall Street after Treasury yields rose.

The KOSPI was trading 36.52 points or 1.43% lower at 2,597.10, and the S&P ASX 200 was 103.80 points or 1.41% down at 7,538.30 as of 06:56 a.m.

US Treasury yields edged higher after solid economic data spurred bets the Federal Reserve will be in no rush to cut interest rates, reported Bloomberg.

The S&P 500 index and Nasdaq Composite declined by 0.22% and 0.52%, respectively, as of Thursday. The Dow Jones Industrial Average rose by 0.06%.

Brent crude was trading 0.20% lower at $86.91 a barrel. Gold was up by 0.02% to $2,379.57 an ounce.

The GIFT Nifty was trading 137 points lower or 0.62 down 21,888.00 as of 06:58 a.m.

India's benchmark stock indices erased intraday gains to extend their losing streak to the fourth session on Thursday as Axis Bank Ltd., ICICI Bank Ltd. and HDFC Bank Ltd. dragged.

The benchmarks have now recorded the longest losing streak since Oct. 26. The NSE Nifty 50 closed 152.05 points, or 0.69%, lower at 21,995.85 and the S&P BSE Sensex ended 454.69 points, or 0.62%, lower at 72,488.99.

Overseas investors remained net sellers of Indian equities on Thursday for the fourth consecutive session. Foreign portfolio investors offloaded stocks worth Rs 4,260.3 crore and domestic institutional investors remained net buyers for the seventh day in a row and mopped up equities worth Rs 2,285.5 crore, the NSE data showed.

The Indian rupee closed at a new low of Rs 83.543 against the greenback.