KEY HIGHLIGHTS
FPIs Snap Ten-Day Buying Streak To Turn Net Sellers
Foreign investors in Indian equities turned net sellers on Monday, after a ten-day buying spree.
Foreign portfolio investors offloaded equities worth Rs 533.20 crore, according to data from the National Stock Exchange.
Domestic institutional investors turned net buyers, snapping three day selling streak and mopped up stocks worth Rs 269.65 crore.
Foreign institutions have remained net sellers and offloaded Rs 46,131.11 crore worth of stocks so far in 2023.
Yield On The 10-Year Rises
The yield on the 10-year bond closed 2 bps higher at 7.23% on Monday. It closed at 7.21% on Thursday.
Source: Bloomberg
Rupee Weakens Against The U.S. Dollar
The local currency depreciated about 11 paise to close at 81.97 against the greenback on Monday.
The rupee closed at 81.86 on Thursday.
Source: Bloomberg
Sensex, Nifty Snap Nine Days Of Gain
Indian equity benchmarks declined on Monday, following the weak Q4 results from the I.T. bellwether, Infosys Ltd., which fell the most in 3.5 years intraday. The indices snapped nine sessions of advances, breaking the longest gaining streak in 30 months as the S&P BSE Sensex Index slipped below 60,000 level, whereas, NSE Nifty 50 ended below 17,800 mark.
European markets posted modest gains along with U.S. share futures at the start of the week with more earnings to provide a barometer of corporate health and the threat of recession.
The Stoxx Europe 600 was trading higher with miners and energy companies outperforming. S&P 500 futures rose around 0.2% while contracts for the Nasdaq 100 were marginally higher. Shares in Hong Kong and Shanghai rose before data Tuesday that’s projected to show China’s economic reopening gaining momentum.
Meanwhile in India, information technology stocks plunged as much as 6.5%, intraday after software firm Infosys Ltd. slumped the most in over three years on weak growth guidance in early trade.
The S&P BSE Sensex Index closed down 520 points or 0.86% at 59,910.75 while the NSE Nifty 50 Index was lower by 121 points or 0.68% at 17,706.85.
HDFC Bank Ltd., Infosys Ltd., Larsen & Toubro Ltd., Tata Consultancy Services Ltd., Housing Development Finance Corp Ltd., Maruti Suzuki India Ltd., JSW Steel Ltd., Tech Mahindra Ltd., HCL Technologies Ltd., Bharti Airtel Ltd., and Reliance Industries Ltd. were negatively contributing to the change in the Nifty 50 Index.
Whereas, Kotak Mahindra Bank Ltd., Power Grid Corp of India Ltd., IndusInd Bank Ltd., State Bank of India, and Nestle India Ltd. were positively adding to the change.
Most Adani Group company stocks advanced in trade. However, Ambuja Cements Ltd., Adani Wilmar Ltd. and NDTV Ltd. declined in trade.
The broader market indices ended higher; S&P BSE MidCap Index was up by 0.56%, whereas S&P BSE SmallCap Index was higher by 0.13%.
Six out of the 19 sectors compiled by BSE declined, while the other 13 sectors advanced in trade.
The market breadth was split between the buyers and the sellers. About 1,856 stocks rose 1,731 declined, and 181 remained unchanged on the BSE.
ITC Shares At A Life-Time High
ICICI Bank To Consider Raising Funds On April 22
The board will consider and approve, raising funds via debt securities on April 22, 2023.
The funds will be raised via the issuance of non-convertible debentures in single or multiple tranches on either public or private placement basis.
Source: Exchange filing
Bank Of Baroda To Consider Raising Funds On April 21
The board will consider and approve, raising foreign currency funds on April 21, 2023.
The funds will be raised via the issuance of bonds, certificate of deposits or other borrowing methods.
Source: Exchange filing
Adani Transmission's Q4 System Availability Rose 99.70% In FY23
The company added 1,704 circuit km to its operational power transmission network in FY23.
FY23 system availability was maintained at more than 99.7%.
Distribution business sold 90.5 crore units of power in FY23, compared with 79.7 crore, the year ago.
Source: Exchange filing
Stocks Hitting 52-Week High Intraday
Nifty 500 stocks hitting 52-week low, intraday
Infosys Shares Tank On Weak Q4; Should You Buy Or Sell?
Stocks In Focus :IT Stocks, HDFC Twins, Power Grid And More
March Wholesale Price Inflation Eased To 1.34%
WPI in March 2023 rose 1.34% which was the lowest since October 2020, when it was at 1.31%.
Source: PIB
Sensex, Nifty Extend Plunge As I.T. Stocks Lead Declines: Midday Market Update
Indian equity benchmarks slid nearly 1% in trade through midday on Monday, following the weak Q4 results from the I.T. bellwether, Infosys Ltd., which fell the most in 3.5 years intraday. The S&P BSE Sensex fell below 60,000 level; whereas NSE Nifty 50 was trading below 17,700.
Asian markets were mixed while the U.S. and European share futures rose slightly as investors weighed the prospect of more rate hikes and an economic slowdown.
Stocks pared gains in Japan and Australia amid cautious sentiment after equities on Wall Street ended lower on Friday. Shares fluctuated in Hong Kong and climbed in Shanghai after the People’s Bank of China kept a key lending rate unchanged and made the smallest net injection of liquidity since November.
Meanwhile in India, information technology stocks plunged as much as 6.5% after software firm Infosys Ltd. slumped the most in over three years on weak growth guidance. That weighed on the benchmark Nifty 50, which slid about 1%.
S&P 500 futures rose around 0.2%, as did those for the Euro Stoxx 50, while contracts for the Nasdaq 100 were little changed.
As of 12:00 p.m., the S&P BSE Sensex Index was down 674 points or 1.12% at 59.757.05 while the NSE Nifty 50 Index was lower by 169 points or 0.95% at 17,659.10.
HDFC Bank Ltd., Larsen & Toubro Ltd., Infosys Ltd., Tata Consultancy Services Ltd., Housing Development Finance Corp Ltd., Maruti Suzuki India Ltd., JSW Steel Ltd., Tech Mahindra Ltd., HCL Technologies Ltd., Bharti Airtel Ltd., and Reliance Industries Ltd. were negatively contributing to the change in the Nifty 50 Index.
Whereas, Kotak Mahindra Bank Ltd., Power Grid Corp of India Ltd., State Bank of India, Hindustan Unilever Ltd., and Nestle India Ltd. were positively adding to the change.
Most Adani Group company stocks advanced in trade. However, Ambuja Cements Ltd. and NDTV Ltd. declined in trade.
The broader market indices were mixed; S&P BSE MidCap Index was up by 0.14%, whereas S&P BSE SmallCap Index was lower by 0.03%.
Eight out of the 19 sectors compiled by BSE declined, while the other 11 sectors declined in trade.
The market breadth was skewed in the favour of sellers. About 1,583 stocks rose 1,806 declined, and 164 remained unchanged on the BSE.
FMCG Company Shares Advance
Shares of fast moving consumer goods companies were trading higher on Monday as the NSE Nifty FMCG Index advanced 1.23%, as compared to a 0.94% decline in the NSE Nifty 50.
Twelve out of the 15 constituents compiled by the gauge advanced, United Spirits Ltd., Tata Consumer Products Ltd. and Dabur India Ltd. declined in trade.
Shares of Nestle India Ltd., United Breweries Ltd., Britannia Industries Ltd., Hindustan Unilever Ltd., ITC Ltd., Colgate Palmolive Ltd., and Godrej Consumer Products Ltd., advanced over 1% intraday.
Source: NSE
Kiocl Surges The Most In Nine Months On Multiple Order Wins
Shares of Kiocl Ltd. jumped in trade on Monday after the company received two mineral exploration project orders aggregating to Rs 3.81 crore.
The Karnataka order entails a reconnaissance survey for polymetallic mineralisation in Nagavanda gold and base metal blocks in parts of Dhanvangere, Haveri, and Shimoga districts at Rs 1.48 crore.
The second order includes preliminary exploration for amalgamated Kalaburagi limestone blocks in the Jevargi region at Rs 2.33 crore.
Shares of Koicl Ltd. jumped 11.85% to Rs 201.5 apiece, as of 10:21 a.m., in trade on Monday compared to the decline in the benchmark, NSE Nifty 50 Index by 1.13%.
The stock rose as much as 18.21% intraday, the most in over nine months since July 5, 2022.
Total traded volume stood at 41.8 times its 30-day average. The relative strength index was at 70.7, implying that the stock maybe overbought.
HDFC Bank Shares Fall The Most In Four Weeks As Net Profit Misses Analyst Estimates
Shares of India's largest private lender HDFC Bank Ltd. declined the most in over five weeks on Monday after the bank saw its January-March quarter profit rise 20% year-on-year, on higher core income, lower provisions.
Net profit for the fourth quarter stood at Rs 12,047 crore, compared with Rs 10,055 crore a year ago. However, the net profit missed estimates as the analysts polled by Bloomberg forecast a net profit of Rs 12,137 crore for the quarter.
Net interest income, or core income, rose 24% from last year and stood at Rs 23,352 crore. Other income too rose 14.3% year-on-year to Rs 8,731 crore.
Asset quality for the quarter improved with gross non-performing asset ratio at 1.12%, down 11 basis points quarter-on-quarter. Net NPA ratio too improved 6 basis points sequentially to 0.27%.
HDFC Bank Q4FY23
Net Profit: Rs 12,047 crore Vs Rs 10,055 crore (YoY) (Bloomberg Estimate: Rs 12,137 crore)
NII: Rs 23,352 crore Vs Rs 18,873 crore (YoY)
GNPA: 1.12% Vs 1.23% (QoQ)
NNPA: 0.27% Vs 0.33% (QoQ)
Shares of HDFC Bank Ltd. fell 1.99% to Rs 1,658.8 apiece, as of 9:54 a.m., in trade on Monday compared to the decline in the benchmark, NSE Nifty 50 Index by 1.22%.
The stock fell as much as 2% intraday, the most in over five weeks since March 10, 2023.
Total traded volume stood at three times its 30-day average. The relative strength index was at 59.5.
Out of the 43 analysts tracking the company, 40 maintain a 'buy' rating and three recommend a 'hold' the stock, as per the Bloomberg data.
The average calculated from the 12-month price target given by analysts implies a potential upside of 20.8%.
Source: Bloomberg, Exchange filing
Infosys Hits 52-Week Low As Q4 Earnings Miss Estimates
Revenue at India’s second-largest IT services firm, Infosys Ltd. fell 2.28% over the previous three months to Rs 37,441 crore in the quarter ended March 31, according to an exchange filing Thursday. That compares with the Rs 38,770 crore consensus estimate of analysts tracked by Bloomberg.
The Bengaluru-based IT services firm has pegged its revenue growth guidance at 4-7% in the fiscal ended March 31, 2024. That compares with an average analyst estimate of 10.6% and 15.4% clocked in FY23, which too was a miss from the 16–16.5% guided earlier.
"The Q4 revenue growth was surprising and is likely to have a dampening effect on Infosys’ FY24 growth, particularly since it suggests a significant impact on the firm’s discretionary business due to the macro slowdown," Mukul Garg, research analyst at Motilal Oswal, said in an April 14 note co-authored by Pritesh Thakkar and Raj Prakash Bhanushali.
Infosys Q4 Results: Key Highlights (QoQ)
Revenue down 2.28% to Rs 37,441 crore (Estimate: Rs 38,770 crore)
EBIT down 4.42% at Rs 7,877 crore (Estimate: Rs 8,263 crore)
EBIT margin at 21.03% versus 21.5% (Estimate: 21.6%)
Net profit down 6.86% at Rs 6,134 crore (Estimate: Rs 6,582 crore)
Shares of Infosys Ltd. fell 12.03% to Rs 1,222.1 apiece, as of 9:37 a.m., in trade on Monday compared to the decline in the benchmark, NSE Nifty 50 Index by 1.09%.
The stock fell as much as 14.68% intraday, hitting its 52-week low at Rs 1,185.3 apiece.
Total traded volume stood at 24.3 times its 30-day average. The relative strength index was at 23, implying that the stock maybe oversold.
Out of the 49 analysts tracking the company, 32 maintain a 'buy' rating, nine recommend a 'hold' and eight suggest to 'sell' the stock, as per the Bloomberg data.
The average calculated from the 12-month price target given by analysts implies a potential upside of 23.5%.
Source: Bloomberg, Exchange filing
Most Adani Group Group Company Stocks Decline
I.T. Services Company Stocks Declines
Shares of information services companies were trading lower on Monday as the NSE Nifty IT Index declined 0.88%, as compared to a 0.88% decline in the NSE Nifty 50.
All the 12 constituents compiled by the gauge declined.
Shares of Infosys Ltd., Persistent Systems Ltd., LTIMindtree Ltd., Tech Mahindra Ltd., and Mphasis Ltd. declined over 5% intraday.
Source: NSE
Top Stocks Dragging The Nifty 50 Index
ITC Ltd., State Bank of India, Larsen & Toubro Ltd., Reliance Industries Ltd., Wipro Ltd., Maruti Suzuki India Ltd., Housing Development Finance Corp Ltd., HCL Technologies Ltd., Tech Mahindra Ltd., JSW Steel Ltd., Infosys Ltd., Tata Consultancy Services Ltd., and HDFC Bank Ltd. were the top losers in the NSE Nifty 50 gauge.
Sensex, Nifty Decline At The Opening Bell
Indian equity benchmarks fell at the opening bell on Monday after rising for third straight week, for nine consecutive session on last Friday.
Asian markets were mixed and the U.S. and European futures rose slightly in a cautious start to trading on Monday as investors weighed the prospect of more rate hikes and an economic slowdown.
Stocks were higher in Japan and Australia while equities fluctuated in Hong Kong rose in Shanghai after the People’s Bank of China kept a key lending rate unchanged and made the smallest net injection of liquidity since November.
The S&P 500 fell 0.2% Friday, trimming its gain for the week to 0.8%, while The Nasdaq 100 managed to squeeze out a 0.1% gain over the five days, as policy-sensitive technology names like Microsoft Inc. and Apple Inc. dragged on the benchmark.
At pre-open, the S&P BSE Sensex Index was down 45 points or 0.07% at 60,358.90 while the NSE Nifty 50 Index was higher by 35 points or 0.20% at 17,863.
Sensex, Nifty Mixed At Pre-Open
At pre-open, the S&P BSE Sensex Index was down 45 points or 0.07% at 60,358.90 while the NSE Nifty 50 Index was higher by 35 points or 0.20% at 17,863.
Source: Bloomberg
Yield On The 10-Year Flat
The yield on the 10-year bond opened flat at 7.23% on Monday.
Source: Bloomberg
Rupee Weakens Against The U.S. Dollar
The local currency weakened about 4 paise to open at 81.90 against the greenback on Monday.
The rupee closed at 81.86 on Thursday.
Source: Bloomberg
Realty & Media May Outperform; I.T. May Drag: Trade Setup
HDFC Bank Expects To Merge With HDFC By July, Says Srinivasan Vaidyanathan, CFO
Have submitted applications to SEBI relating to promoter change and mutual fund orders.
Have also gone to IRDAI for necessary approvals.
Have to still go back to RBI for the final nod.
Source: HDFC Bank analyst call
Global Cues
U.S. Dollar Index at 101.7
U.S. 10-year bond yield at 3.51%
Brent crude up 0.08% to $86.24 per barrel
Nymex crude down 0.10% to $82.44 per barrel
Dow Jones Futures up 0.17% at 34,094
S&P 500 Futures up 0.17% at 4,171
Nasdaq Futures up 0.01% at 13,182.5
SGX Nifty down 0.50% at 17,781 as of 8:10 a.m.
Bitcoin down 0.98% at $30,063.23
Pledge Share Details
Jindal Stainless: Promoter Ratan Jindal released a pledge of 1.44 crore shares on March 11.
Trading Tweaks
Move Into Short-Term ASM Framework: Unichem Laboratories
Stocks To Watch: Infosys, Reliance Industries, Zee Entertainment, SBI, Max Healthcare In Focus
TV18 Broadcast/Reliance Industries/Bodhi Tree Multimedia: Viacom18, a subsidiary of the company, closed the merger of Reliance Storage with itself and integrated JioCinema as well. Viacom18 allotted shares to RIL group entities and Bodhi Tree Systems as consideration for the scheme of merger.
Brightcom Group: SEBI found that the company overstated profit after tax for fiscals 2019 and 2020 by more than Rs 1,280 crore. The regulator has ordered the company to publish the correct shareholding pattern and its managing director and directors not to sell their shares.
Zee Entertainment: CEO Punit Goenka settled with SEBI a case of insider trading norms violation related to the Zeeplex rollout for Rs 50.7 lakh.
State Bank of India: The bank kept 1-year MCLR-based lending rates unchanged across tenures for the second month in a row.
Max Healthcare: The company completed the acquisition of an additional 34,000 shares of Eqova Healthcare for Rs 68.87 crore, taking its shareholding from 26% to 60%.
KIOCL: The company received two mineral exploration projects in Karnataka for a reconnaissance survey for polymetallic mineralisation in Nagavanda gold and base metal blocks in parts of Dhanvangere, Haveri, and Shimoga districts at Rs 1.48 crore and preliminary exploration for amalgamated Kalaburagi limestone blocks in the Jevargi region at Rs 2.33 crore.
HCL Technologies: Anand Birje, head of Digital Business Services, resigned from the company to pursue another opportunity.
Torrent Power: The company appointed Saurabh Mashruwala as chief financial officer, effective April 14, 2023, after the resignation of Lalit Malik from the post.
Q4 Results Today
Network18 Media & Investments, TV18 Broadcast, Angel One, Just Dial, Hathway Cable & Datacom
Earnings Fineprint
Infosys Q4 FY23 (Consolidated, QoQ)
Revenue down 2.28% at Rs 37,441 crore (Bloomberg estimate: Rs 38,770 crore)
EBIT down 4.42% at Rs 7,877 crore (Bloomberg estimate: Rs 8,263 crore)
EBIT margin at 21.03% vs 21.5% (Bloomberg estimate: 21.6%)
Net profit down 6.86% at Rs 6,134 crore (Bloomberg estimate: Rs 6,582 crore)
The board recommended a final dividend of Rs 17.50 per share for the 2023 fiscal.
HDFC Bank Q4FY23
Net Profit: Rs 12,047 crore Vs Rs 10,055 crore (YoY) (Bloomberg Estimate: Rs 12,137 crore)
NII: Rs 23,352 crore Vs Rs 18,873 crore (YoY)
GNPA: 1.12% Vs 1.23% (QoQ)
NNPA: 0.27% Vs 0.33% (QoQ)
SGX Nifty Hints At Lower Open For Benchmarks
Asian markets were mixed, while the U.S. and European futures contracts rose slightly in a cautious start to trading Monday as investors weighed the prospect of more rate hikes and an economic slowdown. Stocks crept higher in Japan and Australia while falling in Hong Kong and South Korea.
The S&P 500 fell 0.2% Friday, trimming its gain for the week to 0.8%, while the Nasdaq 100 managed to squeeze out a 0.1% gain over the five days, as policy-sensitive technology names like Microsoft Inc. and Apple Inc. dragged on the benchmark.
The yield on the 10-year Treasury note in the U.S. was trading at 3.51%. Crude oil prices traded above the $86 mark, while Bitcoin was above the $30,000 level.
At 8:10 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 0.50% at 17,781.
Indian benchmark indices—Sensex and Nifty—continued their rally for the ninth day in a row to end at a seven-week high with the longest winning streak in 2.5 years.
The Indian rupee extended its gains against the U.S. dollar by a lot on a weaker greenback in the global market.
Foreign institutional investors were net buyers for the tenth straight day and mopped up stocks worth Rs 221.9 crore during the day. On the other hand, domestic institutional investors were net sellers for the third straight day and offloaded stocks worth Rs 273.7 crore, the NSE data showed.
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