KEY HIGHLIGHTS
FPIs Stay Net Seller For The Third Straight Day
Overseas investors in Indian equities remained net sellers for the third day in a row on Wednesday.
Foreign portfolio investors offloaded equities worth Rs 13.2 crore, according to data from the National Stock Exchange. They snapped a 10-day buying streak on Monday.
Domestic institutional investors snapped two day buying streak and sold stocks worth Rs 110.4 crore, the NSE data showed.
Foreign institutions have remained net sellers and have offloaded Rs 46,954.9 crore worth of stocks so far in 2023.
Yield On The 10-Year Bond Flat
The yield on the 10-year bond closed flat at 7.20% on Wednesday.
Source: Bloomberg
Indian Rupee Weakens Against U.S. Dollar
The local currency depreciated 19 paise to close at 82.23 against the greenback on Wednesday.
The rupee closed at 82.04 on Tuesday.
Source: Bloomberg
Sensex, Nifty Fall For The Third Straight Day
Indian equity benchmarks changed little as they continued to retreat for the third consecutive session on Wednesday. I.T., media and PSU banking stocks declined the most in trade.
Europe markets along with U.S. equity futures retreated in trade. The Stoxx Europe 600 index slipped about 0.4%, with the technology sector leading the decline. ASML Holding NV dropped more than 3% after the Dutch chip maker’s earnings report raised concerns about the demand outlook. Investors will be monitoring price data from the euro area that will determine European Central Bank’s monetary policy path.
Contracts on the rates-sensitive Nasdaq 100 fell about 0.7%, while those on the S&P 500 were down 0.5% ahead of the next batch of earnings reports by US banks.
The S&P BSE Sensex Index closed down 159 points or 0.27% at 59,567.80 while the NSE Nifty 50 Index was lower by 41 points or 0.23% at 17,618.75.
IndusInd Bank Ltd., Hindustan Unilever Ltd., Maruti Suzuki India Ltd., Tata Consultancy Services Ltd., and HCL Technologies Ltd. were negatively contributing to the change in the Nifty 50 Index.
Whereas, Housing Development Finance Corp Ltd., Axis Bank Ltd., HDFC Bank Ltd., JSW Steel Ltd., and Reliance Industries Ltd. were positively adding to the change.
Adani Group company stocks ended mixed, with Adani Wilmar Ltd. and Adani Enterprises Ltd. rising and all the other group stocks declining in trade.
The broader market indices ended mixed; S&P BSE MidCap Index was down by 0.18%, whereas S&P BSE SmallCap Index was lower by 0.12%.
Fourteen out of the 20 sectors compiled by BSE declined, with S&P BSE Information Technology, S&P BSE Power, S&P BSE Teck falling the most.
The market breadth was spilt between buyers and sellers. About 1,818 stocks rose 1,694 declined, and 122 remained unchanged on the BSE.
Patel Engineering Gains Over 19% After Large Trades
Shares of Patel Engineering Ltd. rose the most in over18 months following large trade.
At least 36.5 lakh shares, or 0.5% of equity shares, changed hands in two large trades, according to Bloomberg.
Shares of Patel Engineering Ltd. rose 16.83% to Rs 17.7 apiece as of 2:37 p.m., compared to a 0.29% decline in the benchmark NSE Nifty 50. The stock gained as much as 19.80% intraday, the most in over 18 months or one and a half year since Oct. 5, 2021.
The total traded volume so far in the day stood at 8.7 times its 30-day average. The relative strength index was at 71, implying that the stock maybe overbought.
Source: Bloomberg
Q4 Review : Angel One Chairman Dinesh Thakkar Shares FY24 Growth Projections
Jindal Stainless Announces Dividend Payout Post Merger
Stocks In Focus: Spotlight on SCI, Infosys, ICICI Lombard, Liquor Stocks
Most European Markets Decline
Stocks At 52-Week High Intraday
Nifty 500 stocks that hit 52-week low, intraday.
IndusInd Bank Enters Long-Term Loan Agreement For Rs 821.11-Crore With JBIC
lnduslnd Bank's GIFT City IBU branch signed $100 million (Rs 821.11 crore) loan agreement with Japan Bank for International Cooperation.
Under this initiative, the bank will provide credit facilities to companies that comprise the supply chain of the Japanese original equipment manufacturers in India.
This is the first of its kind lending by JBIC through any IFSC Banking unit at GIFT city.
Mizuho Bank Ltd. Japan, the Shizuoka Bank Ltd. Singapore and the Joyo Bank Ltd. will also co-finance in this facility.
Source: Exchange Filing
Som Distilleries Shares Gain As Commercial Production Begins At Hassan Facility
Shares of Som Distilleries and Breweries Ltd. advanced the most in nearly three weeks after the company started commercial production at its facility in Karnataka.
The company commenced commercial production at its expanded capacity at a facility in Karnataka's Hassan, according to an exchange filing.
"This will lead to better supply of our products across all the distribution points in the relevant markets," the company said.
This will also enable Som Distilleries to take advantage of the peak beer consumption season, it said.
Bajaj Electricals Shares Jump 4% After A Large Trade
Shares of Bajaj Electricals Ltd. rose the most in over six weeks in trade on Wednesday as 1.9% of equity shares changed hands in a bunch.
The company had about 21.40 crore shares deal in a block on BSE, according to data compiled by Bloomberg.
Shares of Bajaj Electricals Ltd. rose 3.44% to Rs 1,079.25 apiece, as of 12:19 p.m., in trade on Wednesday compared to the decline in the benchmark, NSE Nifty 50 Index by 0.01%
The stock gained as much as 4.38% intraday, the most in over six weeks since March 6, 2023. Total traded volume stood at 96.8 times its 30-day average. The relative strength index was at 51.5.
Out of the 21 analysts tracking the company, 15 maintain a 'buy' rating, five recommend a 'hold' and one suggests 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 20.7%.
Source: Bloomberg
Sensex, Nifty Trade Lower Amid Volatility As I.T. Stocks Drag; Metals Pharma Gain
Indian equity benchmarks changed little as they continued to trade lower amid volatility through midday on Wednesday. While, the shares of metal and pharmaceutical companies gained, I.T. stocks extended declined.
Asian markets fell as traders weighed earnings from Wall Street. MSCI Inc.’s Asia Pacific Index declined 0.4% while the Hang Seng China Enterprises Index slid as much as 1.5% before paring losses. Shares of some Korean drama production studios also slipped after Netflix Inc.’s subscriber numbers trailed Wall Street estimates.
Futures for the S&P 500 and the Nasdaq 100 both declined. Cboe Volatility Index stayed at the lowest since January 2022, remaining below 17. Bank of America’s GFSI Market Risk Index, held near the lowest since February 2022.
As of 12:05 p.m., the S&P BSE Sensex Index was down 42 points or 0.07% at 59,685.27 while the NSE Nifty 50 Index was lower by 4 points or 0.02% at 17,656.60.
IndusInd Bank Ltd., Hindustan Unilever Ltd., Maruti Suzuki India Ltd., Tata Consultancy Services Ltd., and HCL Technologies Ltd. were negatively contributing to the change in the Nifty 50 Index.
Whereas, JSW Steel Ltd., Reliance Industries Ltd., HDFC Bank Ltd., HDFC Ltd., and Larsen and Toubro Ltd. were positively adding to the change.
Adani Group company stocks were mixed in trade, with Ambuja Cements Ltd., Adani Enterprises Ltd., Adani Ports and SEZ Ltd. amd ACC Ltd. rising less than 1% in trade.
The broader market indices opened higher; S&P BSE MidCap Index was up by 0.08%, whereas S&P BSE SmallCap Index was higher by 0.39%.
Eight out of the 20 sectors compiled by BSE declined, while 12 sectors advanced in trade.
The market breadth was skewed in the favour of the buyers. About 1,906 stocks rose 1,425 declined, and 127 remained unchanged on the BSE.
Shares Of Prestige Estates Projects Rise After Acquiring 51% In Dashanya Tech Park
Shares of Prestige Estate Projects Ltd., as of 11:05 a.m., advanced 1.58% to Rs 446.15 apiece in trade on Wednesday compared to a flat Nifty 50.
The company's wholly owned subsidiary Prestige Exora Business Parks Ltd. acquired 7.65 lakh equity shares or 51% shareholding in Dashanya Tech Parkz Pvt. Ltd. on April 18 for $660.7 million (Rs 66.07 crore), as per an exchange filing.
Dashanya Tech Parkz is engaged in the business of development and construction of commercial office space. It recorded a turnover of Rs 245.10 crore for the year ended March 31, 2022, according to the filing.
Shares of Prestige Estates Projects gained as much as 4.28% intraday, rising the most in over eight months since April 12, 2023.
Total traded volume of the scrip stood at 1.9 times its 30-day average.
Out of the 20 analysts tracking the company, 19 maintain a 'buy' rating and one recommends a 'hold', as per the Bloomberg data.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 31.4% over the next 12 months.
Source: Bloomberg, Exchange filing
Piramal Pharma Shares Jump The Most Since Listing As U.S. FDA Closes U.S. Facility Inspection
Shares of Piramal Pharma Ltd. surged the most since its listing in October 2022 as it received a report on the closure of inspection for one of its facilities from the U.S. drug regulator.
The U.S. Food and Drug Administration issued an establishment inspection report for the company’s manufacturing unit in Sellersville, U.S. and closed the inspection of the same facility.
Shares of Piramal Pharma Ltd. rose 8.91% to Rs 78.25 apiece, as of 11:00 a.m., in trade on Wednesday compared to the decline in the benchmark, NSE Nifty 50 Index by 0.10%.
The stock advanced as much as 10.30% intraday, the most in 18 months or one and a half years since its listing on Oct. 19, 2022. Total traded volume stood at 8.8 times its 30-day average. The relative strength index was at 61.
Out of the five analysts tracking the company, 22 maintain a 'buy' rating, four recommend a 'hold' and two 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 42%.
Source: Bloomberg, Exchange filing
South Indian Bank Shares Gain After Hiking Lending Rates By 5-10 Bps
Shares of South Indian Bank Ltd. were trading higher on Wednesday after it raised lending rates.
It hiked the lending rates across tenors in the range of 5-10 basis points, with effect from April 20, 2023, according to an exchange filing.
The scrip rose as much as 4.21%, the most since April 3. It was trading 3.88% higher at Rs 16.05 per share as of 10:34 a.m. Total traded quantity so far in the day stood at 1.8 times the 30-day average volume.
Of the five analysts tracking the stock, three maintained 'buy' and two suggested 'hold'. The average of 12-month price target estimated by analysts implies potential upside of 37.1%.
Source: Bloomberg
Glenmark Pharmaceuticals, Merck Group Agrees To Settle Patent Litigation For Cholesterol Drug
Glenmark, Merck group inked settlement pact to pay $48 million to direct purchasers.
The patent litigation was regarding cholesterol drug Zetia.
The settlement will make clear that company denies all allegations against it and has not conceded or admitted any liability.
The trial for this case is scheduled to begin on April 19, 2023 in the U.S. courts.
Source: Exchange filing
Infosys Weak Revenue Outlook Continues To Drag Coforge, HCL Tech And Other Peers
Shares of Infosys Ltd., followed by HCL Technologies Ltd., Coforge Ltd. and LTIMindtree Ltd. fell over 1% in as the former continued dragging its peers after reporting lower-than-expected Q4 results and a lower FY24 outlook.
Shares of India's second-largest software services provider plunged the most in a single day since 2019 on Monday and dragged peers along.
The Bengaluru-based IT services firm pegged its revenue growth at 4-7% in the ongoing financial year. That compares with an average analyst estimate of 10.6% and FY23's 15.4%, which was below the 16–16.5% guided earlier.
Brokerages have downgraded the stock and reduced the target price. Shares were trading 0.14% higher as of 11.20 a.m. on Tuesday
Shares of Infosys Ltd. fell 1.53% % to Rs 1,240.1 apiece, as of 10:10 a.m., in trade on Wednesday compared to the decline in the benchmark, NSE Nifty 50 Index by 0.21%.
The stock fell as much as 1.69% intraday, the most in since Monday, April 17, 2023. The relative strength index was at 24, implying that the stock maybe oversold.
Out of the 48 analysts tracking the company, 30 maintain a 'buy' rating, nine recommend a 'hold' and nine suggests 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 20.3%.
Shares of information technology services companies were trading lower on Wednesday as the NSE Nifty IT Index fell 0.97%, as compared to a 0.21% decline in the NSE Nifty 50.
Nine out of the 10 constituents compiled by the gauge declined, whereas, Persistent Systems Ltd. advanced in trade.
Infosys Ltd., Coforge Ltd., HCL Technologies Ltd., LTIMindtree Ltd., Mphasis Ltd., Wipro Ltd., Tech Mahindra Ltd., L&T Technology Services Ltd., and TCS Ltd. declined nearly 1% in trade.
Source: Bloomberg
Shipping Corporation Shares Surge After After A Price Band Revision To 20%
Shares of Shipping Corporation of India Ltd. surged the most in over ___ weeks after its price band revision.
The National Stock Exchange revised the price band of Shipping Corporation of India Ltd. from 5% To 20%.
Shares of Shipping Corporation of India Ltd. rose 6.53% % to Rs 96.25 apiece, as of 9:46 a.m., in trade on Wednesday compared to the decline in the benchmark, NSE Nifty 50 Index by 0.14%.
The stock gained as much as 9.80% intraday, the most in over seven weeks since Feb. 23, 2023. Total traded volume stood at 8.2 times its 30-day average. The relative strength index was at 55.2.
One analysts tracking the company recommends a 'hold' on the stock, as per the Bloomberg data.
Source: Bloomberg, Exchange
ICICI Lombard Shares Decline Despite An Annual Jump Of 40% In net Profits
Shares of ICICI Lombard General Insurance Co. fell the most in 13 weeks in trade on Wednesday, despite a rise in the fourth-quarter profit, which beat analysts' estimates.
The general insurer's net profit rose 40% year-on-year to Rs 437 crore in the quarter ended March, it said in an exchange filing. That compares with the Rs 394 crore consensus estimate of analysts tracked by Bloomberg. The net premium earned rose to Rs 3,726 crore, a rise of 12% over a year earlier.
ICICI Lombard General Insurance Company Q4FY2023 (Consolidated, YoY)
Revenue up 13% at Rs 5,256 crore. (Bloomberg estimate: Rs 4,299 crore)
Ebitda up 27% at Rs 1,279 crore.
Ebitda margin at 24.3% vs 21.8%
Net profit up 40% at Rs 437 crore. (Bloomberg estimate: Rs 394 crore)
The board approved a final dividend of Rs 5.50 per share for the 2023 fiscal.
Shares of ICICI Lombard General Insurance Co. fell 3.43% to Rs 1,092 apiece, as of 9:31 a.m., in trade on Wednesday compared to the decline in the benchmark, NSE Nifty 50 Index by 0.15%.
The stock declined as much as 4.28% intraday, the most in thirteen weeks since Jan. 18, 2023. Total traded volume stood at 25.9 times its 30-day average. The relative strength index was at 49.8.
Out of the 28 analysts tracking the company, 22 maintain a 'buy' rating, four recommend a 'hold' and two 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 24.5%.
Source: Bloomberg, Exchange filing
Most Adani group Company Stocks Advance
Most Adani group company stocks advanced in trade, with only Adani Total gas Ltd., Adani Transmission Ltd. and Adani Green Energy Ltd. declining in trade.
Broader Markets Open Higher
The broader market indices opened higher; S&P BSE MidCap Index was up by 0.16%, whereas S&P BSE SmallCap Index was higher by 0.43%.
Six out of the 19 sectors compiled by BSE declined while 13 sectors advanced in trade.
The market breadth was skewed in the favour of the buyers. About 1,554 stocks rose 656 declined, and 102 remained unchanged on the BSE.
Source: BSE
Top Contributors To The Change In The Nifty 50 Index
Housing Development Finance Corp Ltd., Axis Bank Ltd., Larsen & Toubro Ltd., HDFC Bank Ltd., and JSW Steel Ltd. were positively contributing to the change in the Nifty 50 Index.
Whereas, Hindustan Unilever Ltd., IndusInd Bank Ltd., Nestle India Ltd., Tata Consultancy Services Ltd., Infosys Ltd. were negatively adding to the change.
Sensex, Nifty Decline At Opening Bell
Indian equity benchmarks drifted lower at the opening bell on Wednesday after they fell for the second consecutive trading session on Tuesday.
Asian markets traded slightly lower on Wednesday after stocks were little changed on Wall Street as investors weighed earnings and comments from Federal Reserve officials who favor continued rate hikes.
The MSCI Asia Pacific Index fell 0.3% as shares in Japan and Hong Kong declined, while those in South Korea and Australia posted small gains. U.S. equity contracts inched down during Asian trading.
The S&P 500 fluctuated before ending just 0.1% higher while the Cboe Volatility Index hit its lowest since January 2022, remaining below 17. Bank of America’s GFSI Market Risk Index — a gauge of global volatility across assets — also remained near the lowest level since February 2022.
At pre-open, the S&P BSE Sensex Index was up 19 points or 0.03% at 59,745.89 while the NSE Nifty 50 Index was lower by 7 points or 0.04% at 17,653.35.
Sensex, Nifty Mixed At Pre-Open
At pre-open, the S&P BSE Sensex Index was up 19 points or 0.03% at 59,745.89 while the NSE Nifty 50 Index was lower by 7 points or 0.04% at 17,653.35.
Source: Bloomberg
Yield On The 10-Year Bond Flat
The yield on the 10-year bond opened flat at 7.20% on Wednesday.
Source: Bloomberg
Rupee Weakens Against The U.S. Dollar
The local currency depreciated about 6 paise to open at 82.10 against the greenback on Wednesday.
The rupee closed at 82.04 on Tuesday.
Source: Bloomberg
Pharma Sees Continuous Follow Up Action: Trade Setup
Government Raises Windfall Tax On Crude Output To Rs 6,400/Tonne From Nil
Ministry of Finance raised the windfall tax on crude production to Rs 6,400 per tonne from nil.
It reduced the windfall gain tax on diesel export to nil from Rs 0.50 per litre.
The notification will come into effect on April 19, 2023.
Source: Ministry of Finance
Global Cues
U.S. Dollar Index at 101.8
U.S. 10-year bond yield at 3.58%
Brent crude up 0.02% to $84.79 per barrel
Nymex crude up 0.04% to $80.89 per barrel
Dow Jones Futures down 0.18% at 34,061
S&P 500 Futures down 0.14% at 4,174
Nasdaq Futures down 0.18% at 13,169.75
SGX Nifty down 0.04% at 17,714.5 as of 8:15 a.m.
Bitcoin down 0.58% at $30,246
Pledge Share Details
Sterling and Wilson Renewable Energy: Promoter Khurshed Yazdi Daruvala created a pledge of 5 lakh shares on April 13.
Trading Tweaks
Price Band Revised From 5% To 20%: Shipping Corporation of India
Bulk Deals
Avalon Technologies: Goldman Sachs Investment (Mauritius) bought 4.45 lakh shares (0.68%) at Rs 408.13 apeice, Goldman Sachs India bought 3.50 lakh shares (0.53%) at Rs 412.91 apiece.
Stocks To Watch: ICICI Lombard, Tata Communications, ICICI Securities, Tata Coffee, Crisil In Focus
State Bank of India: The bank’s board committee approved raising up to $2 billion, or Rs 16,412 crore, during the current fiscal through public offer and/or private placement of senior unsecured notes denominated in U.S. dollars or other convertible foreign currencies.
Bank of India: The lender’s board approved raising up to Rs 6,500 crore, including Rs 4,500 crore via fresh equity capital and/or additional tier-1 bonds, and Rs 2,000 crore by the issuance of Tier-2 bonds, during the 2024 fiscal.
Pidilite Industries: The company entered into an asset purchase agreement with U.S.-based Basic Adhesives LLC for the purchase of certain assets, including technology, design, trademarks, copyright, domain names, and trade dress.
Prestige Estates Projects: The company’s wholly owned subsidiary, Prestige Exora Business Parks Ltd., acquired a 51% stake in commercial office space developer Dashanya Tech Parkz for a cash consideration of Rs 66.07 crore.
Zydus Lifesciences: The company received final approval from the U.S. FDA to manufacture and market the Estradiol Transdermal System, used for the prevention of postmenopausal osteoporosis.
South Indian Bank: The bank hikes lending rates across tenors in the range of 5-10 basis points, with effect from April 20, 2023.
Som Distilleries and Breweries: The company commenced commercial production at its expanded capacity at the facility in Hassan, Karnataka.
Piramal Pharma: The U.S. FDA has issued an establishment inspection report for the company’s manufacturing unit in Sellersville, U.S. and closed the inspection of the same facility.
Q4 Earnings Estimates
Tata Communications, ICICI Securities, Mastek, Alok Industries
Earnings Fineprint
ICICI Lombard General Insurance Company Q4FY2023 (Consolidated, YoY)
Revenue up 13% at Rs 5,256 crore. (Bloomberg estimate: Rs 4,299 crore)
Ebitda up 27% at Rs 1,279 crore.
Ebitda margin at 24.3% vs 21.8%
Net profit up 40% at Rs 437 crore. (Bloomberg estimate: Rs 394 crore)
The board approved a final dividend of Rs 5.50 per share for the 2023 fiscal.
Crisil Q1 CY23 (Consolidated, YoY)
Revenue up 20.16% at Rs 714.9 crore. (Bloomberg estimate: Rs 677.8 crore)
Ebitda up 15.43% at Rs 203.5 crore. (Bloomberg estimate: Rs 147.9 crore)
Ebitda margin at 28.46% vs 29.63%. (Bloomberg estimate: 21.8%)
Net profit up 19.84% at Rs 145.8 crore. (Bloomberg estimate: Rs 103.4 crore)
The board approved an interim dividend of Rs 7 per share for the year ended Dec. 31, 2023, to be paid on May 16. Crisil follows a January-December financial year.
Tata Coffee Q4 FY23 (Consolidated, YoY)
Revenue up 10.17% at Rs 723.1 crore
Ebitda down 4.79% at Rs 105.7 crore
Ebitda margin at 14.62% vs 16.92%
Net profit up 19.67% at Rs 48.8 crore
The board recommended a dividend of Rs 3 per share for FY23.
SGX Nifty Signals Muted Start For The Benchmarks
Asian markets traded mixed on Wednesday after stocks were little changed on Wall Street as investors weighed earnings and comments from Federal Reserve officials who favour continued rate hikes.
Shares in Japan declined slightly while those in South Korea edged up, and Australia’s benchmark was little changed. U.S. equity contracts inched down at the start of Asian trading.
The S&P 500 fluctuated before ending just 0.1% higher while the CBOE Volatility Index hit its lowest since January 2022, remaining below 17. Bank of America’s GFSI Market Risk Index, a gauge of global volatility across assets, also remained near the lowest level since February 2022.
The yield on the 10-year Treasury note in the U.S. was trading at 3.58%. Crude oil prices traded below the $85 mark, while Bitcoin was above $30,000 level.
At 8:15 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 0.04% at 17,714.5.
Benchmark indices—Sensex and Nifty—maintained a downward trend, falling for the second day in a row as power and telecom stocks declined.
The Indian rupee slipped further against the U.S. dollar as domestic equities remained under pressure.
Foreign investors were net sellers for the second day in a row on Tuesday and offloaded equities worth Rs 810.6 crore, according to data from the National Stock Exchange. On the other hand, domestic institutional investors were net buyers for the second straight day and mopped up stocks worth Rs 401.7 crore.
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