PremiumIndian indices on Tuesday continued on a positive trajectory for the second straight day, tracking positive cues from global markets. The investors pegged their hopes on a positive outcome from the Russia-Ukraine peace talks, while a near 8% dip in oil price provided further support. While these developments have kept the market positive, US inflation and interest rate hike by US Fed continue to remain two major headwinds for the investors. In Asia, shares in Japan, South Korea, Hong Kong, and Australia advanced, while that in Shanghai declined at close on Tuesday.
Indian indices climbed higher on Tuesday amid volatility, adding gains for the second straight day, as shares in Asian and European market largely remained positive. Solid decline in crude oil prices and ceasefire talks between Russia and Ukraine boosted market sentiments.
The Sensex added 350.16 points, or 0.61%, to close at 57,863.93, while Nifty50 gained 103.30 points to end at 17,325.30. Strong buying support was seen in realty, pharma, and financial stocks, while oil & gas, energy, and auto indices dragged.
On the 30-stock index, the most gains were made by Bharti Airtel, HDFC twins, and UltraTech Cement among others, while ITC, Tata Steel, and SBI were among the top losers.
On Nifty50, Adani Ports, Eicher Motors, Divi's Lab, HDFC and JSW Steel made the most gains, while Hero Moto, ONGC, and Coal India were among the top laggards.
The Income Tax Department has found that Hero MotoCorp made more than ₹1000 crore bogus expenses and over ₹100 crore cash transactions for a farmhouse in Chhattarpur, Delhi, sources told ANI.
Ruchi Soya has announced the revised timeline with respect to its Follow on Public Offer (FPO) that had opened on March 24. The bidding in the issue was closed on Monday i.e. March 28, 2022, and accordingly no further Bids were accepted.
India's largest private sector bank by assets, HDFC Bank is set to infuse ₹3 crore in the first tranche to acquire a portion of shareholding in the India Debt Resolution Company Limited (“IDRCL") by way of subscription to equity securities. Overall, HDFC Bank plans to pump in ₹7.50 crore in IDRCL to acquire about a 15% stake.
Tata Motors, India's top-selling electric carmaker, said the cost of battery cells had increased by around 20% because of a global surge in raw material prices, mainly lithium, putting pressure on the company in the short-term.
Gold futures on Tuesday fell by ₹347 to ₹51,224 per 10 grams as participants cut down their bets amid a weak global trend.
On the Multi Commodity Exchange, gold contracts for April delivery declined by ₹347 or 0.67 per cent to ₹51,224 per 10 grams in a business turnover of 4,786 lots.
Analysts attributed the fall in prices to trimming of positions by investors, tracking a weak trend in international market.
Globally, gold was trading 1.06 per cent lower at USD 1,924 per ounce in New York.
Saudi Arabia's oil chief said markets are going through a “jittery period" and reiterated on Tuesday that the kingdom's ability to ensure energy security is no longer guaranteed.
Energy Minister Prince Abdulaziz bin Salman said cross-border attacks have put to question “our ability to supply the world with the necessary energy requirements." The attacks have been carried out by Yemen's rebel Houthis, who are supported by Iran.
“In the old days, we, along with our friends here in the UAE, worked on a collective effort to assure and ensure energy security. These pillars are no longer there," the minister said.
The Saudi energy minister spoke at the World Government Summit, an event sponsored by the government of Dubai, United Arab Emirates.
Oil prices, already at their highest in years, have shot up further amid attacks from the Houthis on Saudi Arabia, OPEC's largest oil producer. Brent crude prices are trading above USD 110 a barrel, though have soared at times past USD 120.
The rupee appreciated 23 paise to 75.93 against the US dollar in the opening trade on Tuesday, following a positive trend in domestic equities amid softening global crude oil prices.
A weak American currency in the overseas market also helped the domestic unit, forex traders said.
At the interbank foreign exchange, the rupee opened strong at 75.97 against the US dollar and gained further ground to quote at 75.93, a rise of 23 paise over the previous close.
In the previous session, the rupee had settled at 76.16 against the greenback.
Filatex India on Tuesday announced that its board at its meeting held today has approved share buyback of upto ₹59.5 crore at ₹140 per share. Shares of Filatex India were trading about 0.8% higher at ₹128 apiece on the BSE in Tuesday's early deals.
Aurobindo Pharma (Aurobindo) has entered into the domestic formulation business with acquisition of Veritaz Healthcare Limited (Veritaz). Aurobindo will acquire the business and certain assets of Veritaz for a cash consideration of Rs1.71bn. The acquisition is valued at ~1x FY22E revenues and 10.4x FY22E EBITDA. Anti-infectives and pain-management are the key therapeutic areas where Veritaz currently operates. The transaction is expected to be complete by May’22 and go into effect from 1st Apr’22. Veritaz is controlled by the promoters of Aurobindo and the deal is a related-party transaction. Aurobindo has set an ambitious sales target of Rs10bn in three years from the domestic formulation business with a mixed strategy of acquisitions and organic launches. Maintain ADD with a target price of Rs750/share.
A tectonic shift is taking place in the multiplex industry with the top 2 operators (PVR and INOX) deciding to merge their operations. The merged company would be financially strong and can grow faster than possible individually. It would help them tap growth even from smaller markets (Tier 2 and below). Merger will also help fight the OTT penetration by creating strong cinema experience and cost-saving from a larger combined operation. We like the merger announcement, which has balanced valuations and execution. Mr. Ajay Bijli is credited with creating the best multiplex business in India and expanding it to F&B and allied businesses unlike global peers. Strong cinema performance in Mar’22 should recede the fear of OTT disruption. Also, big-budget movies, which justify cinema spend (as in Hollywood) is playing out in India too. We remain constructive on the multiplex sector. Key to watch: 1) possibility of a fresh covid wave hitting India and causing another temporary disruption; and 2) CCI observation, if any, on the merger.
In the year 2021, the primary market gained strong traction and about 63 companies raised around ₹1.2 lakh crore via initial public offerings (IPOs). Many of the newly listed stocks have seen correction, mongst them, brokerage house Religare Broking has shortlisted 5 stocks which it believes have good long-term growth potential.
The BSE has invited applications for the post of Managing Director and Chief Executive Officer for the stock exchange. “BSE India Inviting applications for the post of Managing Director & Chief Executive Officer (MD & CEO),"BSE India tweeted.
Bharti plans to achieve stronger growth in the payment bank business. We come convinced that 5G capex will have limited upside risk. Company plans monetisation of its payment bank and data centre businesses in the future, while digital and other businesses may remain under the Bharti Airtel umbrella. Maintain BUY.
The government on Monday told Rajya Sabha that the airfares on certain routes are monitored in a 15-day cycle to ensure reasonable flight tickets.
Multibagger IPO: Adani Wilmar share price today tested ₹500 levels for the first time since listing on 8th February 2022 and hit its new all-time high of ₹504.65 per share levels on NSE. While ascending to its new peak, Adani Wilmar shares doubled its lucky allottees money in around 2 months of investment as the issue price of Adani Wilmar IPO was at ₹218 to ₹230 per equity share. Earlier, AWL shares had hit fresh high on 25th March 2022, and this newly listed Adani stock hit upper circuit on Monday session as well.
Ruchi Soya Industries Ltd has lodged an FIR in Haridwar to investigate circulation of unsolicited messages regarding the company’s ₹4,300 crore follow-on public offer (FPO).
Apollo Hospitals will replace Indian Oil Corporation (IOC) in the Nifty 50 index, whereas, within Nifty Bank, Bank of Baroda will be included as RBL Bank gets excluded from the banking index, as per the stock exchange's circular released last month, which will be effective from March 31, 2022.
Uma Exports IPO (Initial Public Offering) got fully subscribed on day one. As per Uma Exports IPO subscription status by day 1, the public issue worth ₹60 crore got subscribed 2.14 times after completion of first day of bidding on 28th March 2022. Retail portion of the public issue got subscribed 2.90 times on day one of bidding. However, market observers said that Uma Exports IPO GMP is still not available as shares of Uma Exports are yet to make its debut in the grey market.
PVR and Inox Leisure have announced the merger to create the largest multiplex chain in the country. The combined entity will be named PVR INOX Ltd with the branding of existing screens to continue as PVR and INOX, respectively. New cinemas opened post the merger will be branded as PVR INOX.
Rating: BUY
CMP: ₹608
Target: ₹1,050
Upside: 73%
In the pressure cookers and cookware segment, over the last two years, the company has outperformed Industry and its peers. Post Covid, organized players are gaining market share from unorganized players which would benefit the player like SKL. Going forward, we expect SKL to report healthy top-line & bottom-line growth on the back of new product launches, strong brand name and wide distribution network.
The last expiry week of the FY22 started on a timid note taking cues from the mixed global bourses. The benchmark index Nifty50 tumbled as soon the market started towards the psychological support of the 17000 mark, from where a smart recovery poured in to pare down the initial losses. The index concluded the session positively with gains of 0.40 percent and settled a tad above the 17200 level.
The psychological mark of 17000 once again proved to be the sacrosanct support zone, which the bulls saw as an opportunity and pounced to witness a strong recovery among the various bourses. Though the index has been in a congestion phase for quite some time, the slender range-bound movement is evident. But as we have alluded to in the last few commentaries, that undertone remains bullish until the 17000 mark is being sustained in the market, and any dip towards the same could be seen as an opportunity for the bulls. While on the contrary, the immediate hurdle is placed around the 17350-17400 zone, followed by the sturdy wall of 17500 for the time being.
The broad-based recovery has been observed across the bourses on the sectoral front, wherein the significant benefactors that boosted the positive sentiments were the BFSI and Auto spaces. Looking at the recent development, traders are advised to keep following a stock-centric approach for obtaining better trading opportunities.
We expect the company to post 18.3%/24.3%/33.9% CAGR growth in revenues/EBIDTA/PAT over FY21-FY23 driven by strong growth in Life Science chemical and specialty chemical business. At current levels the stock is trading at P/E multiple of 15.8xFY23 EPS which is at a significant discount to other chemical companies. Therefore we believe that there is value in the stock at current levels and hence rate it a BUYwith a price target of Rs. 837.
Given best in class asset quality and expected rebound in growth from Q2FY22 we are positive on the bank given reasonable valuations at 3.0xFY23 adjusted book which is at a discount to historical averages. We value the stock at3.7xFY23 adjusted book and arrive at a target price of Rs. 1859.
In its recent meeting, Newgen Software's CEO and CFO highlighted that the Middle East and APAC regions are doing well but the US is lagging due to high employee attrition at clients, which is delaying decision-making, highlighted Jefferies in a note.
Tata Elxsi share price has scaled to its life-time high on two successive sessions. The multibagger IT stock that has given 235 per cent return to its shareholders in last one year, ascended to a new peak on Friday and the rally continued on Monday leading to a new high of ₹9,160 apiece levels on NSE. In last two trade sessions, this multibagger stock has surged to the tune of 18 per cent (from ₹7610 to ₹9010 apiece levels on NSE).
A total of three stocks have been put under the ban for trade on Tuesday, March 26, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE). These securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.
Veranda Learning IPO (Initial Public Offering) is opening for subscription today and it will remain open for bidding till 31st March 2022. Price band of the book built issue of face value ₹10 per equity share has been fixed at ₹130 to ₹137 per share. The coaching service company plans to raise ₹200 crore from its public issue. According to market observers, Veranda Learning IPO GMP (grey market premium) is not available as the stock is yet to make its debut in the grey market.
In cryptocurrencies, Bitcoin's rally continued as the digital token was trading at $47,550, up over a per cent. The world's largest and most popular cryptocurrency is up about 3% in 2022 (year-to-date or YTD) so far. It is about 30% far away from its record high of near $69,000 it had hit in November last year.
8 stocks to buy or sell today — 29th March