PremiumIndian indices on Thursday continued the winning streak, staging solid recovery after recent pains, with support from most counters. Market heavyweights Reliance Industries, Maruti, TCS, HDFC, and M&M contributed significantly to the rally. Sectorally, all the sectors except metals were in the green, with auto, IT, banks, financials making healthy gains. Globally, shares in Europe and US were mixed as inflation worries, crude prices, and the war in Ukraine kept the investors cautiously optimistic. In Asia, shares in Japan, South Korea, and Australia advanced, while that in Hong Kong and Shanghai declined.
Indian indices made healthy gains on Thursday, with the help of strong buying support in Reliance, M&M, Maruti, and HDFC stocks amid positive global cues. Investors' risk appetite made a comeback as they bought stocks across the board despite inflation concerns.
The Sensex added 874.18 points, or 1.53%, to close at 57,911.68, while Nifty50 gained 256.05 points to end at 17,392.60. IT, bank, financials, auto were among the best performing sectors, while metals and telecom were muted.
On the 30-stock index, the most gains were made by M&M, Maruti, Bajaj Finance, Asian Paints, Reliance, while Tata Steel, Bharti Airtel, and Nestle India were the only losers.
On Nifty50, Eicher Motors, Coal India, Adani Ports, and M&M made the most gains, while CIPLA, Hindalco, and ONGC were among the laggards.
Reliance Industries' shares
Reliance rose for a third session and was among the top three gainers on the Nifty 50 index, up 2.34%.
Morgan Stanley raised its target price on the conglomerate's stock to 3,253 rupees ($42.61) from 2,926 rupees and said it expects up to a 10% boost to the company's net asset value in anticipation of quicker hydrogen monetization.
Despite a sharp economic recovery following the easing of curbs after the second wave of the pandemic subsided, infrastructure credit growth has slowed down. In the first nine of FY22, infrastructure-focused loan books witnessed moderate annualised growth for both non-banking finance companies (NBFCs) and banks, ratings agency Icra Ltd. said on Thursday.
Investments in the Indian capital markets through participatory notes (P-notes) dropped to ₹87,979 crore as of March-end, with experts believing that foreign investors will continue to adopt a cautious stance.
"We will see some liquidity drying up from global markets over the coming months resulting in the continuation of pressure in P-notes participation for a few months.
"However, we believe that the India story is intact and the world's leading economies are looking at trade partnerships with us," said Divam Sharma, founder at Green Portfolio, a Sebi-registered portfolio management service provider.
Oil prices rose on Thursday as concerns about supply as the European Union (EU) mulls a potential ban on Russian oil imports, days after diminished supplies from Libya rocked the market.
Brent crude futures rose $1.11, or 1%, to $107.91 a barrel at 0852 GMT. U.S. West Texas Intermediate (WTI) crude futures gained 87 cents, or 0.9%, to 103.06 a barrel.
Analysts said market volatility is likely to pick up again soon, with the EU still weighing a ban on Russian oil for its invasion of Ukraine, which Moscow calls a "special military operation".
India's federal financial crime fighting agency raided offices of Jindal Steel & Power Ltd (JSPL) in New Delhi on Thursday over suspected violation of foreign exchange regulations, a source familiar with the matter said.
Leading agri-commodity bourse NCDEX on Thursday said its average daily turnover rose 47.26 per cent year-on-year to ₹1,857 crore in the last fiscal despite suspension of trading in some commodities.
The exchange's average daily turnover in the previous fiscal was higher than ₹1,261 crore in FY21 and even higher than ₹1,794 crore that prevailed during the pre-pandemic 2019-20 year, it said in a statement.
The government is likely to take a call on the timing of Life Insurance Corp. of India’s initial public offering (LIC IPO) this week. "A decision on timing the IPO would be taken this week," an official told PTI.
Three of India's most industrialised states plan to import 10.5 million tonnes of coal in the coming months as officials scramble to arrest widespread power cuts, a move that could push global coal prices to new highs.
Athleisure footwear company Campus Activewear on Thursday fixed a price band of ₹278-292 a share for its ₹1,400-crore initial public offering (IPO).
The three-day initial share-sale will open for public subscription from April 26 and the bidding for anchor investors will open on April 25, according to the company.
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Mastek reported a strong quarter with revenue and margin both coming in line. The order book improved 25.4% YoY, boosted by a $65 mn+ win from the UK government (home office), following a $60 mn NHS deal in Q3FY22. The management is aiming to reach $1 billion revenue in the next five years, implying an organic revenue CAGR of >20%.
ITC on Thursday said it will acquire 10.07 per cent stake in Blupin Technologies Pvt Ltd, the company behind direct-to-consumer(D2C) brand, Mylo for up to ₹39.34 crore.
L&T Infotech Ltd. (LTI) will likely have a robust FY23 as the company continues to benefit from strong demand environment which is expected to last three to five years, according to a post earnings report by Motilal Oswal.
Gold is proving remarkably resilient, gaining almost 7% this year as investors shrug off surging real yields and strengthening dollar to focus on political and economic risks.
Multibagger stock: After following IT stock crash post-weak Infosys results, Tata Elxsi share price rebounded strongly ahead of its Q4FY22 results as market was expecting strong Tata Elxsi results on Wednesday. However, the Tata group IT company reported better-than-expected Q4 results, which triggered fresh buying in Tata Elxsi shares in early morning deals. After making a close at ₹7600 per share levels on NSE on Tuesday, Tata Elxsi share price today surged up to ₹8190 apiece levels, logging around 7.75 per cent in two straight sessions.
Life Insurance Corp. of India’s (LIC) first-year premium collection, a key metric, rose 7.9% to ₹1.98 trillion for the year ended 31 March, data reviewed by Mint showed, boosting the prospects of the state-run insurer as the government gets ready to brave choppy markets to take the company public.
Asian shares were mixed in choppy trading Thursday, as inflation worries and the war in Ukraine had investors partly optimistic while staying cautious.
Benchmarks rose in Japan, South Korea and Australia, boosted by the overnight rally in Europe and in the Dow in the U.S. Investors were also watching South Korean trade numbers for April, which showed a trade deficit, although both imports and exports rose.
The ₹2,000-crore initial share sale of multi-speciality pediatric hospital chain Rainbow Children's Medicare Ltd will open for public subscription on April 27.
The-three day initial public offering (IPO) will conclude on April 29, and the bidding for anchor investors will open on April 26, the red herring prospectus (RHP) with Sebi showed on Thursday.
The public issue comprises a fresh issue of equity shares aggregating up to ₹280 crore and an offer sale of up to 2.4 crore equity shares by the selling shareholders.
Japan's Nikkei rose on Thursday to its highest close in more than two weeks, driven by technology heavyweights, as U.S. futures advanced and after longer dated U.S. treasury yields tumbled overnight.
The Nikkei share average ended 1.23% higher at 27,553.06, its highest close since April 5. The broader Topix gained 0.67% to 1,928.00. Both indexes rose for the third straight session.
A market participant from a Japanese brokerage said the Nikkei's gains were capped as investors awaited corporate earnings and currency moves weighed on risk appetite.
The dollar added 0.34% to 128.305 yen, after soaring to a two-decade high of 129.430 on Wednesday as the Bank of Japan stepped in to the bond market for the third time in three months to defend its zero-percent yield target, drawing a stark contrast with the Fed's increasingly hawkish posture.
Angel One (Angel) successfully maintained its business momentum in Q4FY22 with 101%/24% YoY/QoQ PAT growth. We estimate PAT CAGR of 15% over FY22-FY24E and value the stock at 22x FY24E EPS of Rs101 (earlier: FY23E EPS of Rs86.5). Maintain BUY with a revised target price of Rs2,230 (earlier: Rs1,900).
il prices rose on Thursday as concerns about supply due to a potential European Union (EU) ban on Russian oil came to the fore, days after diminished supplies from Libya rocked the market.
Brent crude futures rose $1.32, or 1.24%, to $108.12 a barrel at 0636 GMT. U.S. West Texas Intermediate (WTI) crude futures gained $1.26, or 1.23%, to 103.45 a barrel, adding to a 19 cent gain in the previous session.
Analysts said market volatility is likely to pick up again soon, with the EU still weighing a ban on Russian oil for its invasion of Ukraine, which Moscow calls a "special military operation".
As per media reports, the boards of L&T Infotech (LTI) and Mindtree (MTCL) may consider merging both the companies soon. While both have clarified that the reports are speculative, the potential merger has been deemed an eventuality since Mindtree's acquisition by L&T (conglomerate parent) in March 2019, as per IIFL.
FMCG major Nestle India Ltd on Thursday reported a 1.25 per cent decline in its net profit to ₹594.71 crore for the first quarter ended March 2022.
The company, which follows January-December financial year, had posted a profit of ₹602.25 crore in the same period a year ago, Nestle said in a BSE filing.
However, Nestle India's net sales increased 9.74 per cent to ₹3,950.90 crore during the quarter against ₹3,600.20 crore in the corresponding period last fiscal, the company added.
Its total expenses in the January-March quarter rose 12.98 per cent to ₹3,195.90 crore compared to ₹2,828.61 crore a year ago.
Nestle India’s domestic sales surged 10.23 per cent to ₹3,794.26 crore from ₹3,442.03 crore in the January-March quarter of 2021.
As the world retools the way it produces and uses energy, and as energy security takes center-stage, green hydrogen is gaining attention. Hydrogen adoption plans are quickly progressing, with RIL best positioned to capitalize, as per global brokerage Morgan Stanley. The energy upcycle should help fund its growth and lift multiples.
Gold prices fell for the fourth day in a row in Indian markets. On MCX, gold futures were down 0.12% at ₹52567 per 10 gram while silver dipped 0.4% to ₹68,136 per kg. The yellow metal has been under pressure amid multi-year high US bond yields and a strong US dollar. Gold had hit a high of ₹55,700 per 10 gram last month in domestic markets.
Campus Activewear IPO: The Initial Public Offering (IPO) is going to hit the primary markets next week on Tuesday, 26th April 2022. As per the information available on BSE website, Campus Activewear IPO's price band has been fixed at ₹278 to ₹292 per equity share. The book built issue will remain open for bidders till Thursday, 28th April 2022.
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EMIs for home, car and personal loans are set to go up as major lenders like the State Bank of India (SBI), Axis Bank, Bank of Baroda (BoB) and Kotak Mahindra Bank have hiked their benchmark lending rates. State Bank of India has increased its marginal cost of funding based lending rate (MCLR) by 10 basis points (bps) across tenors, as per data available on the SBI website.
The rupee started the session on a flat note against the US dollar on Thursday amid strong American currency in the overseas market and a firm trend in the domestic equities.
Besides, unabated foreign fund outflows and fluctuations in international crude prices weighed on investor sentiments, forex traders said.
At the interbank foreign exchange, the rupee opened slightly strong at 76.28 against the US dollar but soon shed the gains to quote at 76.31, registering a fall of just 1 paisa over the last close.
In the previous session, the rupee rose 20 paise to close at 76.30 against the US dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, surged 0.14 per cent to 100.56.
Shares of index heavyweight Reliance Industries Ltd (RIL) hit a fresh all-time high level by surging more than 2% to ₹2,775 apiece on the BSE in Thursday's early deals, supporting the benchmark indices. RIL's market capitalization stood over ₹18.7 lakh crore on the BSE.
Overall, the performance in the quarter was slightly below expectation due to flattish onsite volume sequentially resulting in modest performance for the quarter. Demand environment continues to remain robust for the company as reflected in its deal pipeline. Offshore employee attrition has started to moderate, and it will take around another 2 quarters for onsite attrition to come in control. We expect it to be among the growth leaders in the Tier 2 IT companies led by its capabilities across verticals and service lines and should be able to maintain net margin of 14‐15% for FY23. Employee addition continues to be robust and that offers strong revenue growth visibility. It continues to remain one of our top picks in Tier‐2 IT space, well positioned to capitalize on demand environment. We expect revenue CAGR of 19.5% over FY22‐FY24E, with average EBIT margin of 17.6%.
We maintain BUY on the stock with revised target price of ₹6,451/share at revised multiple of 34x on FY24E EPS. The stock trades at PER of 27.2x on FY24E EPS.
Ashish Kacholia portfolio: In Q4FY22, ace investor Ashish Kacholia added 4 new stocks in portfolio. Out of these 4 new portfolio stocks, 3 are multibagger stocks. Gravita India shares are one of those 3 multibagger stocks that have entered Ashish Kacholia portfolio during January to March 20222 quarter. As per Gravita India Limited shareholding pattern for recently ended March 2022 quarter, Ashish Kacholia's name appears in the list of individual shareholders of the company. This means ace investor entered this multibagger stock in Q4FY22.
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