The broader indices underperformed their larger peers with S&P BSE MidCap adding 1.3% and S&P BSE SmallCap rising 1.7%. All the 19 sectors compiled by BSE Ltd. advanced with S&P BSE Finance surging over 4% and S&P BSE Bankex gaining 3.45%.
The market breadth was skewed in the favour of bulls. About 2,679 stocks advanced, 848 declined and 145 remained unchanged.
HDFC Bank-HDFC Merger: Analysts React
Bank of Maharashtra's shares rose over 3.7% after the company reported 8.59% QoQ growth in deposits in the quarter ended March, according to its latest business update.
Gross advances rose 5.96% QoQ to Rs 1,36,733 crore (provisional) while CASA grew 14.26% QoQ to Rs 1,17,383 crore (provisional).
CASA ratio was 57.93% compared to 55.05% QoQ
Source: Exchange Filing
Both parties will approach the high court on the issue of injunction against takeover of stores of Future Retail.
The Supreme Court will follow up the case after the parties mention before the high court.
No formal order today on the resumption of arbitration.
Both parties asked to file a joint note giving their position on resuming the arbitration.
Godrej Consumer Products rises for the sixth straight day, on track for the longest winning streak since December 30, 2020.
Quess Corp gains for the eight straight day, on track for the longest winning streak in three years.
Source: Bloomberg
Live: Indian Rupee Rises 0.36% To 75.55 Against U.S. Dollar
India, Australia Sign Economic Deal to Deepen Trade Ties
Coal exchange will allow buyers and sellers of coal to arrive at a market-determined price.
Companies which export coal to India can also participate on the exchange.
Source: Bloomberg
The broader indices underperformed their larger peers, with S&P BSE MidCap adding 0.75% and S&P BSE SmallCap gaining 1.3%. Barring S&P BSE Realty and Teck, all the other 17 sectoral indices compiled by BSE Ltd. advanced, with S&P BSE Finance rising over 3.25%.
The market breadth was skewed in the favour of bulls. About 2,545 stocks advanced, 855 declined and 161 remained unchanged.
Yields on India's 10-year government bond rose to a two-month high after the borrowing target for H1FY2022-23 was set higher-than-expected.
The rise in yields comes ahead of RBI's policy decision due on Friday.
Source: Bloomberg
HDFC Bank-HDFC Ltd. Merger Live: Managements Address Press Conference
Nifty Will Offer Zero Returns In 2022, Says JPMorgan's Sanjay Mookim
Vedant Fashions: IIFL initiated coverage on the stock with a recommendation of 'buy'; price target set at Rs 1,180.
Source: Bloomberg
Punjab National Bank has 1.05 million shares change hands in a large trade.
Details of buyers and sellers are not known immediately.
Source: Bloomberg
Shares of SML Isuzu surged over 19% after the company decided to decided to increase the prices of its products in the range of 3-4%, effective April 4, 2022.
The price hike is effective across all the models - trucks and buses. The company said that the price hikes were necessitated by uptick in commodity prices and input costs.
Today's rise follows over 18% gains on Friday after the company reported 43% YoY growth in sales in March.
Trading volume is nearly 30 times the 30-day average volume at this time of the day.
The relative strength index is at 78, suggesting that the stock may be overbought.
Share price rose above the 200-day simple moving average, indicating potential upward price momentum.
Source: Exchange Filing, Bloomberg
This is the largest and most transformational merger in the Indian financial services sector. With this merger HDFC bank gets an unparalleled advantage through the mortgage portfolio providing it a quantum leap in distribution to semi urban and rural areas with a huge opportunity to cross sell bank products to a very very sticky client base. The combined entity will be able to extract substantial synergy benefits which abode well for all stakeholders and shareholder. We are already seeing that in the market reaction to this unprecedented announcement today.Samir Bahl, CEO, Investment Banking at Anand Rathi Advisors
Yields rose across the India sovereign yield curve in Monday morning trading.
The 2-year yield rose 3.7bps to 5.009%
The 10-year yield rose 7.1bps to 6.914%
The 19-year yield remained unchanged at 7.178%
The 2-year-10-year yield spread was 190.5bps, vs previous close 187.1bps
Source: Bloomberg
Manufacturing PMI stood at 54 in March 2022 compared to 54.9 in February.
Source: IHS Markit
Tata Power Renewables, a wholly-owned subsidiary of Tata Power has commissioned 300 Mega Watt solar project in Dholera, Gujarat.
The project will generate 774 MUs annually and reduce 7,04,340 million tonnes/year of carbon emission.
This is India's largest single-axis solar tracker system.
Source: Exchange filing
Shares of Tata Power rose 2% after the company received the approval from NCLT Mumbai for the composite scheme of arrangement between Coastal Gujarat Power Ltd. and Tata Power and their respective shareholders.
The scheme provides for amalgamation of CGPL with Tata Power.
The scheme is expected to lead to streamlining of the corporate structure and consolidation of assets and liability of CGPL with Tata Power.
Of the 24 analysts tracking the company, 12 maintain 'buy', five suggest 'hold' and seven recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies a downside of 9.9%.
Source: Exchange filing, Bloomberg
Treasury stock will be cancelled.
Bank will have the capacity to meet regulatory requirements
We have a lot of high quality liquid assets
Subsidiaries of HDFC Ltd will be subsidiaries of the bank.
If RBI requires these subsidiaries to move to a holding company, we can do that.
Need regulatory clarity on whether HDB Financial would need to be merged.
Need clarity on whether the NBFC HDB Financial will need to be merged.
Approvals will take 14-18 months, giving enough time to raise resources for regulatory requirements.
We have enough time to mobilise the extra reserves as regulatory approval will take 14-18 months.
- Sashidhar Jagadishan, CEO, HDFC Bank
Initial thoughts on HDFC and HDFC Bank merger
Merger will be beneficial for HDFC Ltd as the Mortgage business leverage will go up leading to better business RoE adjusted for regulatory cost and will be valued higher in the bank.
Bank will benefit in terms of balance sheet size and market share but will be margin dilutive given higher share of mortgage business.
Risk adjusted margins will still be positive.
This merger will pave way for holding structure norms from RBI as NBFC owning bank was one of the hurdle. As per the norms, the non lending business will have to be outside bank, under the holding company. This would have repercussions for other banking conglomerates like Kotak, ICICI, SBI and Axis.
I think it is a good thing for Indian banking system. India wants to upsize its banks to a global scale and it (the merger) will be a good thing for Indian banking, especially private sector banks.Duvvuri Subbarao, Former RBI Governor
Over the last few years, various regulations for banks and NBFCs have been harmonised, thereby enabling the potential merger. The resulting larger balance sheet would allow underwriting of large ticket infrastructure loans, accelerate the pace of credit growth in the economy, boost affordable housing and increase the quantum of credit to the priority sector, including credit to the agriculture sector.Deepak Parekh, Chairman, HDFC Ltd.
Gujarat State Petronet has 1 million shares change hands in a bunched trade.
Details of buyers, sellers are not known immediately.
Source: Bloomberg
March Update
Vehicle sales at 2,97,188 units, down 20% YoY
Motorcycle sales at 2,56,324 units, down 22% YoY
Exports down 0.3% YoY at 1,70,436 units
Source: Exchange Filing
HDFC shareholding in HDFC Bank will be completely extinguished
HDFC shareholders will hold 41% in HDFC Bank
All-stock merger of HDFC Bank and HDFC Ltd approved by boards, regulatory permissions pending.
Timing for merger is good now.
Regulatory requirements have been harmonised.
HDFC Ltd required to hold SLR and maintain liquidity coverage ratio.
Merger between HDFC Bank and HDFC Ltd to benefit both
HDFC Ltd will benefit from lower funding costs.
HDFC Bank will benefit from HDFC Ltd’s strength in housing finance market.
HDFC Bank will be able to cross-sell products to large customer base of HDFC Ltd.
Permission has been sought for phased compliance with regulatory requirements.
Bank has requested RBI to allow phased compliance with CRR and SLR ratios.
Bank has sought permission to allow HDFC Bank to hold stake in subsidiaries or HDFC Ltd,
Merger will be EPS accretive immediately on completion.
Merger will be EPS accretive in year one itself as 21% of the shares will be cancelled.
From a capital adequacy perspective, merger will be positive.
The Indian rupee could gain as a continued drop in oil prices eases the burden on the net energy importer. Bonds are likely to fall after the authorities unveiled a bigger-than-expected borrowing plan for the first half.
USD/INR fell 0.2% to 75.7862 on Thursday
10-year yields rose 5bps to 6.84% on Thursday
Source: Bloomberg
The merger is a long term positive. For now, the initial merger ratio appears more favourable to HDFC Ltd. When valuing HDFC Ltd we were building in a holding company discount that’s not reflected in the swap ratio.Ashutosh Mishra, Head of Research, Institutional Equity at Ashika Stock Broking
Breaking News: HDFC Bank, HDFC Ltd. Set To Merge
The S&P BSE Midcap underperformed their larger peers, rising over 0.6%, while the S&P BSE SmallCap almost mirrored Sensex and Nifty. Barring S&P BSE Auto, Realty and Teck index, all the other 16 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Finance gaining over 2%.
The market breadth was skewed in the favour of bulls. About 2,328 stocks advanced, 394 declined and 123 remained unchanged
Breaking News: HDFC Bank, HDFC Ltd Set To Merge
Cargo volume in March is at 29.16 million tonnes, up 21% MoM and 12% YoY.
This is the highest ever monthly cargo handled by the company.
FY2021-22 cargo volume at 312.39 million tonnes, up 26% YoY.
FY2021-22 container volume at 8.2 million TEUs, up 14% YoY.
Source: Exchange filing
Indian firms making apparel, drugs and jewelry will be in focus after the South Asian nation signed a wide-ranging economic pact with Australia which will ease duties imposed on a number of products traded between the two countries.
The pact will allow exports from sectors such as textiles & apparels, leather, gems & jewelry and drugs from India, according to a government statement over the weekend
STOCKS TO WATCH
Garment exporters: KPR Mill, Trident, Indo Count Industries, Aditya Birla Fashion, Gokaldas Exports, Kitex Garments, Vardhman Textiles
Jewelry stocks: Rajesh Exports, Vaibhav Global
Also watch: Sun Pharma, Aurobindo, Motherson Sumi, Minda Industries
Resources stocks will also be in focus as tariffs on entry into force for coal, alumina, metallic ores, including manganese, copper and nickel; and critical minerals including titanium and zirconium will be eliminated
In Focus: Coal India, MOIL, Hindustan Zinc, Hindalco
Source: Bloomberg
Indian Oil cut to 'neutral' from 'buy' at Goldman Sachs; price target set to Rs 135.
PB Fintech raised to 'overweight' from 'equal-weight' at Morgan Stanley; price target set at Rs 945.
HDFC Life raised to 'overweight' from 'equal-weight' at Morgan Stanley; price target set at rs 675.
Source: Bloomberg
The total increase in rates in the last two weeks stands at Rs 8.40 per litre.
Petrol in Delhi now costs Rs 103.81 per litre against Rs 103.41 earlier.
Diesel rates have risen to Rs 95.07 per litre against Rs 94.67 per litre.
This is the 12th increase in prices since March 22.
Source: PTI
HDFC: Bank’s loan book stood at Rs 8,367 crore in Q4 compared to Rs 7,503 crore in the corresponding quarter of the previous year. The bank’s gross income from dividend stood at Rs 128 crore on March 31, 2022.
Bharat Electronics: Achieves turnover of Rs 15,000 crore during FY2021-2 against turnover of Rs 13,818 crore. The company's order book as on April 1 is around Rs 57,000 crore.
Avenue Supermarts: Standalone revenue from operation for quarter ended March at Rs 8,606.09 crore.
IGL: The company raised piped gas price by Rs 5/SCM in Delhi. It also increases price of CNG by Rs 0.8/Kg effective April 1.
Hero MotoCorp: The company’s sales fell 21.98% in March 2022. Sales stood at 4,50,154 units as compared to 5,76,957 in March 2021.
PVR: The company has discontinued operations of 23 screens across 9 properties on expiry of their lease with Cineline India.
Dr. Reddy’s: The company will acquire cardiovascular brand Cidmus from Novartis AG for $61 million.
TVS Motors: The company’s sales fell 4.55% in March 2022. Sales stood at 3,07,954 units as compared to 3,22,643 in March 2021.
JSW Energy: The company subsidiary, JSW Neo Energy has entered with the government of Chhattisgarh for setting up a 1,000 MW capacity of Hydro Pumped Storage Project viz. Hasdev Bango Pumped Storage Project, in Chhattisgarh.
Eicher Motors: The company’s sales rose 2.45% in March 2022. Sales stood at 67,677 units as compared to 66,058 in March 2021.
Future Enterprise: The company has defaulted on an aggregate amount of Rs 2,835.65 crore as on March 31, to a consortium of banks and lenders under the one time resolution plan
Angel One: The company declared interim dividend of Rs 7 per share of face value of Rs 10 per share.
HCL Technologies: The company will consider declaration of interim dividend on April 21 and April 22.
Power Grid: The company has transferred balance 26% equity shareholding of Powergrid Vizag Transmission to PGlnvlT at a price of Rs 330.78 crore. The company has relinquished its right on additional revenue accruing to Powergrid Parli Transmission, Powergrid Warora Transmission and Powergrid Jabalpur Transmission to PGlnvlT for Rs 304.15 crore.
Cummins India: Cummins Research and Technology, a 50:50 joint venture between the company and its US arm is voluntary liquidated. CRTIPL, as on March 31, 2021 was Rs. 279 lakhs constituting 0.059% of the consolidated net worth of the company.
L&T Technology Services: The company will consider declaration of dividend on April 21.
NTPC: The company has commissioned 250 MW Captive Power Unit, at Rourkela, Odisha, of NTPC Sail Power, joint venture company. The installed and commercial capacity of NSPCL has become 1064 MW while the group installed capacity of NTPC has become 68881.68MW.
Supreme Petrochem: The company has received NCLT nod for reduction in paid up share capital from 94.02 crore to Rs 37.6 crore by reduction in face value from Rs 10 to Rs 4 each.
Acrysil: The company’s UK arm will acquire 100% shares of Tickford Orange, UK along with its wholly owned operating subsidiary Sylmar Technology for £11 million. STL is a manufacturer, distributer and customizer of high-quality solid surface products for kitchen and bathroom, for both domestic and commercial purposes for markets across UK.
Sandhar Technology: The company secured machining business from TVS Motors Company. With the award of this business, the company has entered machining for castings business.
Alkem Laboratories: ISP Chile had conducted an inspection at the Company's manufacturing facility located at Daman, India from March 28, 2022 to April 1, 2022. No observations critical to good manufacturing practices was detected.
Subex: The company has executed the transfer of Revenue Maximization Solution business from Subex Assurance LLP to the company.
PTC India: The company recorded volume of 8745 crore units of energy in FY 2021-22.
Vaibhav Global: The company has acquired 15 lakh shares of Vaibhav Lifestyle raising its stake from 75% to 100%.
Bhageria Industries: The company has commissioned 4.5 MW Solar Power Projects at Ahmednagar as turnkey EPC project for a client for their captive consumption.
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