PremiumMarket Closing: Indian indices ended marginally lower on Wednesday amid mixed global trends27 min read.Updated: 18 May 2022, 03:47 PM ISTArindam Roy
Market Closing: Indian indices on Wednesday snapped a 2-day winning run as both the Sensex and Nifty declined marginally.
Indian indices on Wednesday wiped off early gains, in a volatile trading session, to end lower due to selling pressure in realty, telecom and IT stocks. Despite Wall Street recording gains in the overnight session, Asian indices struggled as investors evaluated fears of inflation, weak economic outlook and Covid restrictions in China. Shares rose in Japan, South Korea, Australia, and Hong Kong, while it slipped in Shanghai.
Indian indices on Wednesday slipped after registering gains in the early session, tracking weakness from Asian peers.
The Sensex lost 109.94 points, or 0.20%, to close at 54,208.53, while Nifty50 declined 19 points to end at 16,240.30. Sectorally, only FMCG and pharma managed to post gains, while realty, IT, and telecom came under selling pressure.
On the 30-stock index, the most gains were made by Ultratech Cement, Asian Paints, HUL, and Sun Pharma, among others, while PowerGrid, SBI, and TechM were among the biggest losers.
On Nifty50, Tata Consumer, Ultratech Cement, and HUL made the most gains, while PowerGrid, BPCL, and TechM were among the biggest laggards.
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Sensex at close
18 May 2022, 03:14:36 PM IST
ICICI Securities bullish on Tata Group chemical stock, sees upside in 3 months
The chemical sector is undergoing a higher base formation with stock specific outperformance after witnessing a stupendous rally in CY21. Tata Chemical is one such stock, as per brokerage firm ICICI Securities.
18 May 2022, 02:59:26 PM IST
Bajaj Electricals Q4 marred by rural slowdown, cost pressures
Bajaj Electricals Ltd. reported a 6% year-on-year (y-o-y) growth in its consolidated operating revenue to ₹1,334 crore for the March quarter (Q4FY22). The modest growth was on account of weak performance in the consumer products segment, contributing 78% to Q4 operating revenue, which in turn was due to muted rural demand and lower offtake in e-commerce channels. The segment's revenue grew 6% y-o-y.
Motilal Oswal Financial Services Limited announced on Tuesday about buyback of shares amounting to ₹160 crore. The financial company informed about the decision in exchange communication that Board of Directors of the company has approved buyback of shares at ₹1100 per share price for an aggregate amount not exceeding ₹160 crore. This Motilal Oswal Financial Services share buyback represents 0.98 per cent of total paid-up capital of the company or 14,54,545 shares.
18 May 2022, 02:31:32 PM IST
Bharti Airtel shares plunge after Q4 results. What should investors do?
Shares of Bharti Airtel plunged nearly 2% to ₹695 apiece in Wednesday's trading session on the BSE despite the telecom operator Bharti Airtel posting more than twofold year-on-year (YoY) jump in its consolidated net profit to ₹2,008 crore, buoyed by a lift in average revenue per user (ARPU) and an exceptional gain.
18 May 2022, 02:17:19 PM IST
This multibagger stock hits upper circuit before turning ex-bonus tomorrow
Sindhu Trade Links Ltd is a small-cap company with a market capitalization of ₹5,820 crore that specialises in the finance sector. After opening at a market price of ₹110, the BSE-listed stock hit its upper circuit of ₹113.25 (5 per cent) at 9.50 p.m. today. Sindhu Trade Links' stock has risen from ₹5.78 to ₹113 in the last year, representing a multibagger return of 1,846.37 per cent. The Board of Directors announced bonus shares in the ratio of 2:1 at the general meeting held on May 11, 2022.
18 May 2022, 02:05:45 PM IST
Dollar rebounds after Fed's Powell reaffirms hawkish outlook
The U.S. dollar bounced back on Wednesday, a day after its biggest daily loss in more than two months, as U.S. Federal Reserve chief Jerome Powell struck a more hawkish tone as the central bank battles to rein in surging inflation.
Powell pledged that the U.S. central bank would ratchet up interest rates as high as needed, including taking rates above neutral, to kill a surge in inflation that he said threatened the foundation of the economy.
The neutral rate is the level at which economic activity is neither simulated nor constrained.
18 May 2022, 02:05:25 PM IST
Stock market rebound fizzles, UK inflation hits 40-year high
A rebound in stocks ran out of steam on Wednesday as concerns about the economic growth outlook and rising inflation knocked sentiment, while a UK inflation reading of 9% underlined just how much higher interest rates might be headed.
Asian stocks managed to eek out their fourth straight session of gains but in Europe shares were mixed and futures on Wall Street pointed to a weaker open.
18 May 2022, 02:04:51 PM IST
Asian markets mixed after US retail data boosts Wall Street
Asian stocks were mixed Wednesday following a strong start in some markets, which took the lead from Wall Street where traders were cheered by brisk US retail sales data.
The US Federal Reserve's tightening of monetary policy to contain surging inflation has sent jolts through global markets, deepening the apprehensions of investors already roiled by China's Covid-19 lockdowns and the Russian invasion of Ukraine.
But there was some good news out of the United States, with data showing increased spending by Americans in April. Retail sales rose 0.9 percent -- partly boosted by a rebound in auto purchases.
18 May 2022, 01:46:00 PM IST
Stocks stall, Futures dip on Powell’s hawkish turn
Stocks in Europe struggled to build on Tuesday’s rally as traders assessed hawkish comments from Federal Reserve Chair Jerome Powell and the latest data on inflation and economic activity.
The Stoxx Europe 600 index was little changed the open, with ABN Amro slumping almost 10% after the Dutch lender reported first-quarter results burdened by rising costs. Siemens Gamesa Renewable Energy SA surged after Bloomberg reported Siemens Energy AG is planning to buy the shares it doesn’t own in its Spanish unit.
US futures dipped after the S&P 500 added 2% in a risk rebound Tuesday. Treasury yields ticked lower and the dollar snapped a three-day losing streak after Powell said the Fed “won’t hesitate" to tighten policy beyond neutral to curb high inflation. MSCI Inc.’s Asia-Pacific equity index rose for a fourth day, the longest such streak since February. Oil held around $113 a barrel and Bitcoin traded near $30,000.
18 May 2022, 01:36:03 PM IST
Top BSE losers in afternoon session: ACRYSIL, Bajaj Electricals, Hindustan Petroleum Corporation bleed
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BSE
18 May 2022, 01:31:08 PM IST
Top BSE gainers in afternoon session: MRPL, Sudarshan Chemical Industries, Wockhardt lead
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BSE
18 May 2022, 01:22:53 PM IST
Weakness persists on both growth and margin fronts; downgrade to ADD despite structural positives: YES Securities on Zydus Wellness
We see a long growth headroom for the company given strong brand equity and leadership position in most segments, less than 20% penetration across its categories, multiple brand extension opportunities especially in health and wellness, strong R&D capabilities of the parent company and best‐in‐class brand spends, all of which can help the company grow above industry growth rates over the longer term. Margins should start improving post 1H as headwinds persist due to uncertainty around inflation and inferior product mix. Category decline in key segments leading to growth headwinds and competitive intensity expected to delay the recovery in margins makes us cut our earnings by 7‐9% and thereby downgrade our rating to ADD from Buy despite the structural positives.
18 May 2022, 01:17:41 PM IST
Satisfactory performance in challenging environment; maintain BUY; de‐merger to unlock value: YES Securities on Bajaj Electricals
We expect growth momentum in the consumer business to continue as BJE has been launching new SKU’s across the categories at the premium end. This has resulted in market share increase in urban markets which was been a weak area for BJE. EPC business is now expected to turn profitable from FY23 on sustainable basis leading to a higher multiple. We have cut our FY23 and FY24 earnings as profitability is expected to improve only from 2HFY23 as commodity prices stabilize. We build in FY22‐24E Revenue/EBITDA/PAT CAGR of 13%/54%/84% and maintain BUY with PT of Rs1,286 continuing to value the company at 35x FY24EPS. We expect the stock to re‐rate with a further improvement in efficiencies and profitability in EPC business and concentrated focus on Consumer business.
18 May 2022, 01:08:23 PM IST
Tata Consumer appoints Monica Jain as senior VP and GM for US business
Packaged consumer products company Tata Consumer Products Ltd. (TCPL), on Wednesday announced the appointment of Monica Jain as senior vice president and GM of the company’s US business.
18 May 2022, 01:00:59 PM IST
Ruchi Soya to acquire food retail business of Patanjali Ayurved
Ruchi Soya has entered into an agreement with Patanjali Ayurved Limited (PAL) to acquire the latter's food retail business undertaking which consists of manufacturing, packaging, labelling and retail trading of certain food products, along with manufacturing plants located at Padartha, Haridwar, and Newasa, Maharashtra, subject to approval of shareholders and other authorities.
18 May 2022, 12:52:20 PM IST
Airtel outperforms peers in Q4; debt reduction underwhelms
Bharti Airtel Ltd’s March quarter (Q4FY22) results were good on many counts. For one, sequential net additions in mobile subscriber base stood at 3 million. This compares to a fall in Reliance Jio’s net subscribers of 10.8 million and Vodafone Idea’s decline of 3.4 million. However, Airtel’s churn remained elevated at 2.8%.
18 May 2022, 12:45:40 PM IST
Gold dips as dollar checks slide, Fed
Gold prices fell on Wednesday as the dollar recovered slightly, piling pressure on greenback-priced bullion alongside firm Treasury yields and an aggressive inflation stance by the U.S. Federal Reserve chief.
Spot gold dropped 0.2% to $1,810.49 per ounce, by 0557 GMT. U.S. gold futures slipped 0.6% to $1,808.10.
Abbott India’s strategy of ‘Beyond the Pill’ comprising awareness, diagnosis, treatment and compliance for consumers is expected to deliver continued growth for the business. Therefore, we maintain a BUY rating on the stock with a Target Price of ₹20,000/share.
18 May 2022, 12:18:08 PM IST
GM improves; demand momentum is strong: Prabhudas Lilladher on V.I.P. Industries
Though VIP’s topline was 10%/7% below our/consensus estimates, GM of 53.3% surprised positively despite RM cost inflation. Price hike of ~4.5% taken in March, favorable product mix and rising contribution from low cost destination Bangladesh cushioned margins.
While we cut our FY23E EPS estimates by 6% as we trim our GM assumption by 100bps amid persistent cost inflation and emerging supply side constraints as RM at Bangladesh unit comes from China, our FY24E estimates are broadly intact. VIP has ear-marked a capex of Rs300-350mn for FY23E to further expand own manufacturing capacity at Nashik/Bangladesh. Increased self-sufficiency in manufacturing will reduce reliance on imports and not only eliminate currency volatility but also reduce freight cost resulting in margin expansion. We retain BUY with a revised TP of Rs817 (45x FY24E EPS) as 1) demand recovery is sharp and 2) structural margin levers are in place. VIP trades at 42x/33x our FY23E/FY24E EPS estimates with sales/PAT CAGR of 28%/96% over FY22-FY24E.
18 May 2022, 12:14:58 PM IST
Volatile times ahead given high marketing losses: Prabhudas Lilladher on Indian Oil Corporation
Rating: HOLD | CMP: Rs124 | TP: Rs131
We cut our FY23E IOCL’s earnings estimate by 45% as we cut our marketing assumptions (diesel and petrol margins of –Rs3/0/litre vs +Rs3.5/3/litre earlier), even as we increase our GRM estimates to USD14/bbl vs USD7.4bbl earlier. We also lower our FY24E estimates by 19%. IOCL reported lower than expected Q4 results with standalone EBITDA of Rs116.3bn (+24%QoQ; PLe ₹1860bn) and PAT of Rs60.2bn (+3%QoQ; PLe Rs120bn), due to lower than expected marketing earnings as calculated marketing EBIDTA loss increased to Rs54.8bn in Q4 vis-à-vis loss of Rs3.9bn in Q3. For FY22, consolidated EBIDTA/PAT was at Rs477bn (+18%YoY) and Rs257bn (+18%YoY). We believe OMCs earnings will be hit by sharp jump in marketing losses, despite improvement in refining profitability. We downgrade to ‘’HOLD from ‘BUY’ given high crude price volatility with PT of Rs131 (Rs150 earlier). Any sharp correction in crude prices is an upside risk to our estimates.
18 May 2022, 12:06:13 PM IST
India's heatwave to lift AC sales to record, but supplies from China delayed
Indian air conditioner manufacturers are expecting record sales this year as a heatwave scorches most of the country, an industry body told Reuters, but delayed arrivals of components from COVID-hit China may cause shortages of premium products.
With temperatures this month breaching 49 degrees Celsius in New Delhi, sales are set to reach 8.5-9 million units this year, up from 2019's previous record of 6.5 million, the head of the Consumer Electronics and Appliances Manufacturers Association (CEAMA) said.
"The market has been extremely good because this year, we got the heat in the second half of March rather than April," CEAMA President Eric Braganza, formerly the India head of China's Haier Appliances, said on Tuesday.
Power demand has also hit a record high as India registered its hottest March in more than a century and an unusually hot April.
18 May 2022, 11:57:16 AM IST
Oil pushes on as gasoline market tightens, China may ease curbs
Oil advanced on further signs of tightness in key US product markets and speculation that China may be moving closer to easing anti-virus lockdowns that have sapped crude demand in the world’s top importer.
West Texas Intermediate rose toward $114 a barrel after falling on Tuesday. The American Petroleum Institute reported gasoline inventories sank by more than 5 million barrels last week, according to people familiar with the data, which also showed lower crude holdings. Official figures come later Wednesday.
In Asia, meanwhile, traders are on the lookout for signals that Chinese officials may be poised to ease curbs imposed on Shanghai and other cities to combat a coronavirus outbreak, potentially reviving energy consumption. The main commercial hub again reported no new cases outside of quarantine.
18 May 2022, 11:42:47 AM IST
Stock rally losing puff as economic growth doubts grow
Asia's stock markets eked out their fourth straight session of gains on Wednesday, but the recent rally lost momentum as nagging doubts about inflation and the drag from rate rises overshadowed bits and pieces of good news about the global growth outlook.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5% and is on its longest winning streak since February. Japan's Nikkei rose 0.6% and miners led Australian shares about 0.9% higher.
Gains followed a surge on Wall Street and a slump in the dollar as investors pushed worries about inflation and recession to the back of their minds.
But analysts doubted it could last and both the greenback and futures were steadying in Asia. S&P 500 futures fell 0.2%, Nasdaq 100 futures fell 0.4% while FTSE futures were flat and European futures rose 0.2%.
18 May 2022, 11:39:20 AM IST
S&P cuts FY23 India growth forecast to 7.3% on rising inflation, Russia-Ukraine war
S&P Global Ratings on Wednesday cut India's growth projection for the current fiscal to 7.3 per cent from 7.8 per cent earlier on rising inflation and the longer-than-expected Russia-Ukraine conflict.
In its Global Macro Update to Growth Forecasts, S&P said inflation remaining higher for long is a worry, which requires central banks to raise rates more than what is currently priced in, risking a harder landing, including a larger hit to output and employment.
S&P had in December last year pegged India's GDP growth in the 2022-23 fiscal, which began on April 1, 2022, at 7.8 per cent.
The growth projection has been cut to 7.3 per cent for the current fiscal. For the next fiscal the growth has been pegged at 6.5 per cent.
18 May 2022, 11:38:34 AM IST
Stock recommendations: Reliance Research
STOCK IN FOCUS
TCS (CMP Rs.3,452)
In view of strong revenue growth (14% over FY22-24E), elevated EBIT margin and industry leading return ratios we have BUY rating on TCS with a 1-Yr target price of Rs4,250, valuing the stock at a P/E multiple of 30x FY24E earnings.
Intraday Pick
HDFC (PREVIOUS CLOSE: 2191) BUY
For today’s trade, long position can be initiated in the range of ₹2170- 2191 for the target of Rs. 2260 with a strict stop loss of ₹2150.
LALPATHLAB (PREVIOUS CLOSE: 2185) SELL
For today’s trade, short position can be initiated in the range of ₹2230-2240 for the target of Rs.2150 with a strict stop loss of ₹2265.
TORNTPOWER (PREVIOUS CLOSE: 440) BUY
For today’s trade, long position can be initiated in the range of ₹435- 440 for the target of Rs. 457 with a strict stop loss of ₹430.
18 May 2022, 11:34:07 AM IST
Pharma stock declares final dividend of ₹145, special dividend of ₹130
Pharmaceutical major Abbott India announced that its board has approved a payment of final dividend of ₹145 and special dividend of ₹130 per share of ₹10 each for the year ended March 2022. The aforesaid final dividend, if approved by the members, will be paid on and after August 17, 2022 onwards.
18 May 2022, 11:17:32 AM IST
Nifty Bank index seen at attractive levels. Analysts suggest these stocks
Stocks to buy today: After dipping over 11 per cent in last one and half months, Nifty Banking index has come to an attractive PE multiple of 17.64 that has gained attention of the Dalal Street observers. According to stock market experts, after the pull-back rally on Tuesday session, Bank Nifty has got strong support at 33,000 levels and it may go up to 35,500 levels in short term. Banking stocks like State Bank of India (SBI), Kotak Mahindra Bank, Federal Bank, ICICI Bank and HDFC Bank is expected to pull Nifty Bank index further northward in short to medium term.
18 May 2022, 11:01:21 AM IST
Nifty50 at 11 am: Trades above 16,300; Bjaja Auto, Axis Bank, Adani Ports top gainers, PowerGrid, Airtel top losers
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NSE
18 May 2022, 10:59:04 AM IST
BSE indices in early trade: BSE Sensex gains over 330 points
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BSE
18 May 2022, 10:57:07 AM IST
Anand Rathi sees potential upside on this multibagger chemical stock
Sharda Cropchem shares have risen 10.95 percent in the previous five trading days, outperforming the benchmark Sensex, which has gained 0.35 percent. Despite the BSE Sensex having fallen 8.92 percent in the previous six months, the stock has produced a multibagger return of 110.84 percent. The stock is up 98.43% year to date (YTD), including a multibagger return of 105.53 percent vs the benchmark's 8.22% increase in 1 year. After the company's Q4 results, the brokerage firm Anand Rathi is bullish on the stock and has given a buy rating for a target price of ₹835 per share against the current market price of ₹706.
Bitcoin back below $30,000; dogecoin, ether fall while Tron, Litecoin gain
18 May 2022, 10:44:43 AM IST
LIC share price edges up on Day 2. Buy, sell or hold?
LIC share price: After debuting at over 8 per cent discount on Tuesday, Life Insurance Corporation (LIC) share price today edged higher in early morning deals. LIC share price today opened with an upside gap of around ₹10 per share and went on to hit intraday high of ₹891 levels. However, LIC shares soon retraced from the intraday higher after the profit booking trigger at Wednesday highs.
18 May 2022, 10:34:28 AM IST
Rakesh Jhunjhunwala stock gives 150% return in last two years. Do you own?
Rakesh Jhunjhunwala portfolio: Despite reeling under the sell-off heat triggered by Russia-Ukraine war, some quality Indian stocks have managed to give stellar return to its shareholders post-market bottom in March 2020, though these stocks too shed heavily in last two and half months. Titan Company shares are one of them. In last two and half months, this Rakesh Jhunjhunwala stock has dipped from around ₹2710 to ₹2185 apiece levels, logging around 20 per cent dip in this period. However, even after losing heavily in recent stock market rout, Titan share price has appreciated from around ₹860 to ₹2185 levels in last two years, logging near 150 per cent rise in this period.
18 May 2022, 10:13:03 AM IST
Rupee slips 6 paise to 77.50 against US dollar in early trade
The rupee depreciated 6 paise to 77.50 against the US dollar in the opening trade on Wednesday as a surging American currency in the overseas markets and persistent foreign fund outflows weighed on investor sentiment.
Besides, rising global crude prices impacted the domestic unit, forex traders said.
However, a higher opening in the domestic equity market restricted the rupee's fall, they added.
At the interbank foreign exchange, the rupee opened weak at 77.57 against the American dollar, then gained some lost ground to quote at 77.50, registering a fall of 6 paise over the last close. It was moving in a tight range of 77.57 to 77.48 in early deals.
In the previous session, the rupee had settled at 77.44 against the American currency.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.11 per cent higher at 103.47.
18 May 2022, 10:12:31 AM IST
Investors richer by over ₹12 lakh crore as markets record sharp gains
Equity investors became richer by over ₹12 lakh crore on Tuesday, helped by a smart rally in the broader market.
The 30-share BSE benchmark zoomed 1,344.63 points or 2.54 per cent to settle at 54,318.47 points with all of its constituents closing in the green
18 May 2022, 09:57:03 AM IST
BofA slashes Nifty target to 16,000 by December on inflation, rate hikes concerns
Citing the faster-than-expected interest rate hikes by the Reserve Bank and the mounting inflation worries, Wall Street brokerage Bank of America Securities has slashed its base case Nifty returns target and forecast the index to close the year at 16,000, down from 17,000 projected earlier.
In the negative case scenario, the brokerage warned of a massive 15 per cent correction and the index closing at 13,700 by December.
After scaling many new highs, Dalal Street ended the fiscal 2022 with a healthy 18 per cent gains, and ended calendar 2021 with a healthier 24 per cent gains.
18 May 2022, 09:46:44 AM IST
Aramco-style dividend is what LIC investors seek post flop debut
Disappointed by a 7.8% plunge that made for the world’s second-worst trading debut among large IPOs this year, shareholders of state-run Life Insurance Corp. of India will be counting on a bumper dividend if Prime Minister Narendra Modi’s government wants them to stay put.
The 65-year-old insurer, a household name in the country known as LIC, raised $2.7 billion last week in the country’s biggest initial public offering. After pricing at 949 rupees ($12.2) apiece, the top end of a marketed range, the stock plunged as much as 9.4% to 860 rupees in opening minutes on Tuesday, before paring losses.
Some investors and analysts are concerned that the price could drop even more because of little growth prospects for the legacy business, risks of further disinvestment by the government and the absence of major incentives for shareholders.
18 May 2022, 09:43:07 AM IST
These 3 stocks are under NSE's F&O ban list for today, Details here
Three stocks have been put under the ban for trade on Wednesday, May 18, 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.
18 May 2022, 09:40:20 AM IST
Venus Pipes IPO: What GMP signals, how to check share allotment status
Venus Pipes IPO: After three days bidding of the public issue, focus has now shifted towards the announcement of share allocation date as most likely Venus Pipes IPO allotment date is 19th May 2022 i.e. tomorrow. However, bidders will be able to check Venus Pipes IPO allotment status online only after the finalisation of share allocation. Meanwhile, after the trend reversal in secondary markets, grey market has gone slightly bullish on Venus Pipes IPO. As per the market observers, Venus Pipes share price is quoting at ₹30 premium in grey market today.
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