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Yield on the 10-year bond shed 3bps to 7.11% during the session.
Source: Bloomberg
Rupee closed 9 paise lower at 76.52, in a day of lackluster trading. With a truncated week, traders are staying away from taking large bets ahead of US FOMC meeting on Wednesday. Our bias continues to be a range, between 76 and 77. Strong US Dollar Index and fragile equity markets are USD supportive, whereas RBI intervention and LIC related flows are Rupee positive. Therefore, it can be rangeboundAnindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives, Kotak Securities Ltd.
"Early losses were mostly in reaction to the slump seen on Wall Street on Friday, but markets recovered most of its early losses as investors covered some shorts ahead of the trading holiday on Tuesday", according to Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities Ltd. He added, "the robust GST collections for April also calmed the nerves of investors, who are already facing the brunt of the ongoing war and volatile oil prices".
"Investors are also keenly awaiting the outcome of the US Fed's monetary policy announcement scheduled later this week. The Nifty is holding above the level of 16800, but at the same time, it is failing to show a sustained momentum. In short, the market is consolidating within a broad trading range of 17,400 and 16,800".
Shares of CG Power & Industrial Solutions Ltd. fell nearly 17%, the most in more than two years after the company reported a YoY decline in net profit for the quarter-ended March.
Trading volume on the stock is more than thrice the 30-day average.
Source: Bloomberg, Exchange filing
Net profit jumped 287% YoY, while revenue rose 58%.
Ebitda rose 118% YoY, while margin expanded to 12.98% compared to 9.4% YoY in Q4FY2020-21.
Trading volume on the stock is nearly 20 times the 30-day average.
Source: Bloomberg, Exchange Filing
Retail Stock Ownership At 14-Year High
Minimum investment grade rating for deposits of NBFCs set at BBB- from any SEBI registered credit rating agency.
Alert: As per 2016 Master Circular, minimum required rating differed across agencies. Was set at FA- for CRISIL, MA- for ICRA, BBB (FD) for CARE.
Source: RBI
Total size of all the three proposed funds and schemes is $325 million (Rs 2,485 crore) with Temasek and InfoEdge committing 50% each.
IE Venture Fund Follow-on I, a $100 million (Rs 760 crore) fund intended to consolidate its position in the best companies of its earlier funds.
IE Venture Investment Fund II, a $150 million (Rs 1,145 crore) fund to invest in new startups in consumer internet, B2B Commerce, SaaS sectors, among others.
Capital 2B Fund I, a $75 million (Rs 575 crore) fund with a focus on deep tech and IP.
Source: Exchange filing
Delta Corp falls for seventh day, on track for longest streak in over 25 months since March 25, 2020.
Jindal stainless falls for sixth day, on track for longest losing streak since the period ended Sept. 24, 2020.
VA Tech Wabag shares declined for seventh day, on track for the longest streak in over 25 months, since the period ended March 24, 2020.
Source: Bloomberg
A total of 15 people - 12 passengers and three cabin crew members, were injured in the flight due to severe turbulence.
Eight of those hospitalised have been discharged so far: SpiceJet spokesperson
Source: PTI
HDFC Q4 Results: Net Profit Up 16% On Higher Loan Growth
Ashok Leyland raised to 'buy' from 'hold' at Systematix Shares & Stocks; price target set at Rs 155, an implied upside of 22%.
IndusInd Bank raised to 'buy' from 'accumulate' at Arihant Capital; price target set at Rs 1,236, an implied upside of 23%.
Wipro cut to 'accumulate' from 'buy' at Asian Markets; price target set at Rs 605, an implied upside of 22%.
Source: Bloomberg
Maruti Suzuki raised to 'buy' from 'accumulate' at Elara Securities India; price target set at Rs 9,800, an implied upside of 28%.
Supreme Industries cut to 'accumulate' from 'buy' at Asian Markets; price target set at Rs 2,300, an implied upside of 15%.
Mahindra Logistics cut to 'sell' from 'hold' at Mahindra Logistics; price target set at Rs 525, an implied upside of 2.8%.
Source: Bloomberg
Neo banking fintech Open has raised a $50 million round at a $1-billion valuation led by IIFL Finance.
Existing investors Temasek and Tiger Global also participated.
Source: Bloomberg
European markets fall amid weak macro data and rising geopolitical tensions.
German retail sales data fell in March.
Data released over the weekend also showed that China's factory activity contracted in April.
Source: Bloomberg
The S&P BSE MidCap almost mirrored its larger peers. The S&P BSE SmallCap underperformed Sensex and Nifty falling 0.9%. Barring S&P BSE Oil & Gas and Realty, all the other 17 sectoral indices compiled by BSE Ltd. declined with S&P BSE Information Technology losing 2%.
The market breadth was skewed in the favour of bears. About 1,118 stocks advanced, 2,221 declined and 189 remained unchanged.
Welspun Corp has secured an order worth Rs 706 crore from Indian Oil Corporation.
The order pertains to the construction of a large sector of Mundra Panipat Crude Oil Pipeline project. The order will be executed in FY2022-23.
Besides this, the company has secured orders worth Rs 2,450 crore, across oil and gas, CGD and water sectors. Most of these orders are to be executed within this financial year.
Source: Exchange filing
Maintains 'accumulate' and reduces target from Rs 571 to Rs 501, an implied return of -1.53%.
Wipro's underperformance stems from increasing doubts over the turnaround story after two quarters of average QoQ growth in both Q3 and Q4 of FY22.
The promise of 'profitable growth' has been dented with margins being reset downwards quite a few times.
Believes that FY23 revenue growth guidance is palatable, but margin guidance is disappointing.
Believes clients will tighten IT spending owing to profit pressure from the stagflationary environment.
Lowers estimates for margins by 100bps as well as organic growth by 150bps.
Maintains 'buy' and reduces target from Rs 735 to Rs 616, an implied return of 21.07%.
Believes that the revenue growth guidance for Q1FY2023 was weaker than expected.
Cuts EPS estimates by 7.5% for FY2023/24 led by cut in Ebit margin by 120bps/110bps, due to margin pressures.
Believes that mega deal wins or increase in organic revenue growth guidance from Q2 FY2023 will be the key triggers for the stock.
Source: Brokerage notes
SBI Cards Q4 Review: Analysts Say 'Buy' On Better Spends, Asset Quality; Stock Falls
Disclosure Of Vaccine Trial Data: Supreme Court says data on adverse effects should be made public.
Supreme Court affirms government’s vaccine policy but adds that no individual can be forced to be vaccinated.
Supreme Court says all vaccine trial data should be made public while protecting individual privacy.
The petition had sought the release of segregated trial data and direction against vaccine mandates.
Maturities across the India sovereign yield curve were little changed in Monday morning trading.
The 2-year yield rose 1.3bps to 5.505%
The 10-year yield fell 0.8bps to 7.132%
The 18-year yield remained unchanged at 7.33%
The 2-year-10-year yield spread was 162.7bps, vs previous close 164.8bps
The NSE Nifty 50 Index fell 0.8%.
Source: Bloomberg
Maruti Suzuki Q4 Review: Analysts Say Margin Recovery On Track, Demand Outlook Healthy; Shares Volatile
Wipro Q4 Review: Analysts Cut Target Prices On Margin Woes
Manufacturing PMI Expands In April Despite Inflationary Pressures
The broader indices almost mirrored their larger peers. All the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Consumer Durables shedding nearly 2%.
The market breadth was skewed in the favour of bears. About 920 stocks advanced, 1,791 declined and 126 remained unchanged.
Reliance Industries Ltd. is planning to build a mega land bank in its bid to set up renewable energy parks and projects, Mint reported, citing people it didn’t identify.
Land aggregation exercise is underway to set up solar power projects of 100 GW by 2030: Mint
Takes around four acres of land to set up solar panels for installing 1 MW capacity: report
Ashok Leyland reported vehicle sales for April of 11,847 units vs 8,340 YoY.
Vehicle sales: 11,847 units, up 42% YoY
Local sales: 11,197 units, up 41% YoY
Source: Exchange Filing
Analysts reiterated 'buy' on SBI Cards & Payment Services Ltd. after the company reported net income for the fourth quarter that beat average analyst estimate.
Revenue fell 1.3% at Rs 2,850.31 crore Vs Rs 2,889.46 crore
EBIT up 61.57% at Rs 880.74 crore Vs Rs 545.13 crore
EBIT margin 30.9% Vs 18.87%
Net profit up 50.57% at Rs 580.86 crore Vs Rs 385.78 crore
Gross NPA at 2.22% vs 2.4%
Dividend per share: Rs 2.5
Maintains 'buy' and keeps target price unchanged at Rs 1,150
25% YoY operating profit growth and 45% YoY decline in provisions aided 3.3x earnings growth in Q4.
Believes that the lender is entering FY2023 with a solid balance sheet and positive intent.
NII growth is showing acceleration but still lags receivable growth.
Strong recovery in spends and healthy card additions supported interchange fee growth.
Headline NPA ratios are nearly back to pre-covid levels.
Identifies weak growth in revolvers, impact of MDR regulations and competition as key issues that would take time to resolve.
Reiterates 'buy' with the target price unchanged at Rs 1,250, an implied return of 50.45%
Lower credit cost drove PAT beat.
Strongly believes that SBI Cards in entering a transitory phase, where revolver book will build up in FY23F.
Believes that asset quality drags are completely behind.
Expects EPS CAGR of 37% over FY22-25F, with RoEs averaging 26-27% over FY23-25F and spends/loan growth at a 21% CAGR.
Reiterates 'buy' and reduces target from Rs 1,120 to Rs 1,100; an implied return of 33%.
Sharp decline in provisions aided the earnings beat in March-quarter.
Expects the company to deliver 50% earnings CAGR over FY22-24 leading to RoA/RoE of 7.3%/30.6%.
Rupee bonds traders will watch for inflows from Life Insurance Corporation of India’s initial share sale, which opens this week. Dollar strength may weigh on the country’s currency at the open.
USD/INR little changed at 76.4325 on Friday
10-year bond yields fell 2bps to 7.14% on Friday
Global funds sold net Rs 3,650 crore of India Stocks Friday: NSE
They bought Rs 47 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 67 crore of corporate debt
State-run banks sold Rs 786 crore of sovereign bonds on April 29: CCIL data. Foreign banks bought Rs 105 crore of bonds.
Source: Bloomberg
Analysts slashed target price of Wipro Ltd. citing company's weaker-than-expected revenue growth guidance for the June-quarter, pressure on margin due to supply side challenges.
Wipro reported net income for the fourth quarter above the average analyst, post market hours on Friday, but margin contracted to 16.3% in Q4 compared 17.6% in the quarter-ended December.
Of the 45 analysts tracking the company, 20 maintain 'buy'. 16 suggest 'hold' and nine recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 21.9%. Shares of Wipro have fallen 29% in 2022 so far ahead of market opening on May 2 compared of 18.28% loss for NSE Nifty IT index. Wipro is among the worst performance on the information technology index.
Here's a gist of brokerages' view on Wipro's Q4 earnings and growth outlook.
Maintains 'Overweight/In-line' with the target price reduced from Rs 690 to Rs 640, still an implied return of 25.79%.
Company's March-quarter performance was mixed compared to expectations.
Company's guidance for quarter-ending June was weaker than expected.
Maintains forecast of 11% YoY organic growth in constant currency terms in FY23.
Company's commentary on demand environment, pipeline and order booking remains robust.
Maintains 'buy' and cuts target price from Rs 730 to Rs 690, an implied upside of 35.61%
BFSI, manufacturing and technology segments drove growth.
Company's revenue growth guidance for June Quarter is below our expectation of 2-4%.
Expects USD revenue growth of 13.5% in FY23F (including 2% from the recent acquisition - Rizing).
Expects company's Ebit margin to remain under pressure due to supply-side challenges such as attrition, higher-than-usual salary hikes, increasing freshers hiring program.
Maintains 'reduce' and cuts target price from Rs 595 to Rs 520, an implied return of 2.2%
Revenue growth guidance for June quarter was muted due to weak deal signings.
Low margins, high costs due to large acquisitions to augment capabilities are areas of concern.
All verticals grew at a reasonable rate except for healthcare and communications segments in quarter-ended March.
Expects organic revenue growth to moderate to 10.4% in FY2023E compared to 14.2% in FY2022.
Adani Group is in discussions with healthcare players for investments in the sector in India and has earmarked up to $4 billion in debt and equity for this purpose, Mint reported, citing two people directly aware of the group’s plans.
The group is in talks with investors and lenders for a long-term funding plan to back investments in the healthcare sector, according to the report. The plan may involve the acquisition of hospitals, diagnostic chains as well as pharmacies.
A spokesperson for the Adani Group did not respond to Mint’s queries.
Adani Wilmar
Jindal Stainless
INOX Leisure
IDBI Bank
HDFC
Castrol India
Britannia Industries
Meghmani Organics
Mahindra Holidays & Resorts
Mahindra and Mahindra Financial Services
JBM Auto
EIH Associated Hotels
Dwarikesh Sugar
Devyani International
CG Power and Industrial Solutions
Alembic Pharmaceuticals
Saregama India
Olectra Greentech
GE Power: The company has been awarded a contract worth Rs 863.4 crore ($113 Million) by GREENKO to Design, Engineering, Model Testing, Manufacture, Shop Testing, Packing, Supply, Insurance, Transportation and Deliver at project site of complete electro-mechanical package from Main Inlet Valve to LV Terminal connection of Generator Transformer including critical and mandatory Spares" for 3 x 320 MW + 2 x 160 MW Vertical Francis Pump Turbine Fixed Speed Machines at Saundatti, Belagavi, Karnataka.
Suzlon Energy: The company has signed a rupee term loan agreement for availing financial assistance for refinancing the existing debt facilities with the consortium of lenders led by the REC.
Eicher Motors: April vehicle sales rise 158% YoY to 5,525 units
HDFC: Raised retail prime lending rate on housing loans by 5 bps, from May 1.
Maruti Suzuki: April Total sales down 6 % YoY to 1,50,661 units.
NTPC: Invited EoI to produce torrefied biomass pellets from Indian startups.
Sun Pharmaceutical: Firm's $485 million antitrust deal gets court nod.
Tata Motors: April vehicle sales up 74% YoY to 72,468 units.
Wipro Q4 FY22 (Consolidated, QoQ)
Revenue up 2.69% at Rs 20,860 crore Vs Rs 20,313.6 crore (Bloomberg Estimate: Rs 20,821.3 crore)
EBIT fell 4.82% at Rs 3,402.9 crore Vs Rs 3,575.2 crore (Bloomberg Estimate: 3,603 crore)
EBIT margin 16.3% Vs 17.6% (Bloomberg Estimate: 17.3%)
Net profit up 3.03% at Rs 3,087.3 crore Vs Rs 2,969 crore (Bloomberg Estimate: Rs 3,005 crore)
Attrition rose to 23.8% on trailing twelve months basis
IndusInd Bank Q4 FY22
Net Interest Income: Rs 3,985 crore vs Rs 3535 crore (YoY)
Net Profit: Rs 1400.6 crore vs Rs 926 crore (YoY)
GNPA: 2.27% vs 2.48% (QoQ)
NNPA: 0.64% vs 0.71% (QoQ)
SBI Cards and Payment Services Q4 FY22 (Consolidated, QoQ)
Revenue fell 1.3% at Rs 2,850.31 crore Vs Rs 2,889.46 crore
EBIT up 61.57% at Rs 880.74 crore Vs Rs 545.13 crore
EBIT margin 30.9% Vs 18.87%
Net profit up 50.57% at Rs 580.86 crore Vs Rs 385.78 crore
Tata Chemicals Q4 FY22 (Consolidated, YoY)
Revenue up 32% at Rs 3,480.67 crore Vs Rs 2,636.21 crore
EBITDA up 132.5% at Rs 657.37 crore Vs Rs 282.72 crore
EBITDA margin 18.89% Vs 10.72%
Net profit up 3,833.56% at Rs 462.98 crore Vs Rs 11.77 crore
L&T Finance Holdings
Revenue fell 0.8% at Rs 2946.78 crore Vs Rs 2970.75 crore
EBIT up 2.65% at Rs 1,691 crore Vs Rs 1647.32 crore
EBIT margin 57.38% Vs 55.45%
Net profit up 5% at Rs 342.24 crore Vs Rs 326 crore
Recommended a dividend of Rs 0.5 per share of face value of Rs 10 each
Approved raising funds by issuance of non-convertible securities upto Rs. 2,000 crores
Star Health and Allied Insurance Q4 FY22 (Consolidated)
Net premium earned up 295% at Rs 2621.17 crore Vs Rs 663.82 crore (YoY)
Net loss fell 91.5% at Rs 82.04 crore Vs Rs 956.92 (YoY)
Tanla Platforms Q4 FY22 (Consolidated, QoQ)
Revenue fell 3.6% at Rs 853.05 crore Vs Rs 884.92 crore
EBIT fell 9.29% at Rs 173.92 crore Vs Rs 191.74 crore
EBIT margin 20.39% Vs 21.67%
Net profit fell 11% at Rs 140.62 crore Vs Rs 158 crore
Recommended a final dividend of Rs. 2 per share of face value of Rs 1 each
HFCL Q4 FY22 (Consolidated, QoQ)
Revenue fell 2.6% at Rs 1182.98 crore Vs Rs 1215.21 crore
EBIT fell 32.76% at Rs 101.42 crore Vs Rs 150.83 crore
EBIT margin 8.57% Vs 12.41%
Net profit fell 16.67% at Rs 65.32 crore Vs Rs 78.38 crore
Recommended dividend of Rs 0.18 per share of face value of Rs 1 each
Stocks declined and U.S. equity futures fell on Monday as inflation worries and China’s Covid lockdowns weighed.
Equities fell in Japan, Australia and South Korea. Markets in China and Hong Kong are shut for holidays. U.S. futures stabilized after the markets logged one of their worst monthly drops since the pandemic first led to a steep decline in markets in early 2020.
The Singapore-traded SGX Nifty, an early barometer of India's benchmark Nifty 50, fell over 1% to 16,951.50 points as of 6:45 a.m.
The Federal Reserve is expected to raise rates by a half point Wednesday, the largest increase since 2000. Price pressures due to disruptions from Russia’s war in Ukraine could intensify, as the European Union is set to propose a ban on Russian oil by the end of the year, with restrictions on imports introduced gradually until then, according to people familiar with the matter.
West Texas Intermediate crude was near $105 a barrel. Elsewhere, Bitcoin hovered around 38,700.
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