Stock Market Live: Sensex, Nifty Slip As Autos Drag; PI Industries Down 6.5%

Shares of the agri and fine chemicals maker fell as much as 7.2% after a disappointing fourth-quarter performance.

• Company’s Q4 operating profit margins contracted by 279 bps YoY, leading to Ebitda growth of 22%, according to note
  • Net profit for 4Q was Rs 180 crore, compared with a Rs 1.9-crore estimate in a Bloomberg survey
• Higher other income helped negate the poor performance, the note said

Indian sovereign bonds rise as a slide in crude prices eases concern about price pressures in the net-oil importing nation. The central bank’s plan to purchase Rs 35,000 crore ($4.8 billion) of government bonds Thursday is also aiding sentiment.

• Traders look forward to the results of a 360b-rupee ($4.9b) sale of Treasury bills due later on Wednesday
• 10-year yields down 1bp at 5.97%; 6.64% 2035 yield drops 1bp to 6.60%
• USD/INR falls 0.1% to 72.9650; pair down about 0.6% in four trading sessions

The first 2-3 months of the financial year are crucial for the RBI to keep it tight so that yields don’t flare up, Anoop Verma, bond trader at DCB Bank

• Eventually, the market starts believing that the RBI will always be there, and it won’t be wise to go short on bonds because then you get caught on the wrong foot
• Once the market starts believing it's not prudent to short, you can then only stay away from the market or go long

Shares of the Jaguar Land Rover owner dropped as much as 6.1% after it reported a surprise loss on account of exceptional items even as demand for its cars and utility vehicles lifted domestic sales.

The automaker reported a loss of Rs 7,585 crore in the January-March period against the Rs 2,941-crore profit in the quarter ended December, according to an exchange filing. A consensus of analysts tracked by Bloomberg had pegged the bottom line at Rs 2,774 crore. [read the full earnings report here]

Torrent Pharmaceuticals Ltd. rose 5%. Trading in the company's call options was quadruple the average.

• Trading volume was 470,561 shares, ten times the 20-day average of 47,422 shares for this time of day.
• Trading in the company's call options totalled 2,797 contracts, compared with the average of 749 over the past 20 days. Trading in the company's put options totalled 292 contracts, compared with the average of 94 over the same period.
• The relative strength index on the stock was above 70, indicating it may be overbought.
• Torrent Pharma trades at 39 times its estimated earnings per share for the coming year. It trades at 47 times trailing EPS.
• Analysts have 17 buy, eight hold, and nine sell recommendations on the stock.
• The price target of Rs 2,892.18 represents a 1.1% increase from the last price

India stocks swung between gains and losses as investors weighed declining coronavirus infections in the nation against the impact of global inflationary pressures and fund outflows.

The S&P BSE Sensex rose 0.1% to 50,260.42, trading at a two-month high. The NSE Nifty 50 Index also gained by a similar magnitude. Fifteen of the 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of realty companies. Both indices have gained about 3% this week.

The nation added 267,334 new cases in a day on Tuesday, sharply lower than over 400,000 at the start of the month. Still, death due to the virus have climbed above 4,500 to a record. Foreign investors have withdrawn $966 million from local stocks this month through Monday.