PremiumIndian indices on Tuesday extended their losing streak for the fifth straight day in a choppy trading session. Heavy sell-off towards the end dragged the indices down as they shed almost 1.25% at close. On the sectoral front, IT, realty, FMCG, and power sector stocks crashed, while oil & gas managed to stay in the green. Concerns over rising inflation and foreign fund outflows in the wake of the uncertain geopolitical situation also sapped investor confidence. In Asia, shares in Japan, South Korea, and Australia advanced, while that in Hong Kong declined and were flat in Shanghai.
Indian indices edged lower on Tuesday after recording heavy losses in IT and FMCG stocks in a choppy session amid mixed global trends. Benchmark indices erased all the intra-day gains towards the end, dragged down by weakness in HDFC twins and Infosys, as Sensex and Nifty closed around 1.25% lower.
The Sensex slipped 703.59 points, or 1.23%, to close at 56,463.15, while Nifty50 lost 215 points to end at 16,958.65. IT, power, realty, and FMCG were the worst performing sectors.
On the 30-stock index, the RIL, SBI, ICICI Bank, and Bajaj Finance were the only stocks to manage gains, while Infosys, HDFC twins, ITC and TechM were among the biggest losers.
On Nifty50, Apollo Hospitals, Coal India, and Reliance made the most gains, while HDFC Bank, HDFC, HDFC Life and SBI Life were among the biggest laggards.
The rupee was stable against US dollar today despite the greenback surging against other major currencies. The rupee was trading at 76.29 vs USD after trading in the range of 76.29 and 76.40 in the session so far. On Monday, The rupee depreciated for the third straight session to close 10 paise lower at 76.29 against the US dollar.
Shares of index heavyweight Reliance Industries Ltd (RIL) surged more than 4% to ₹2,654 apiece on the BSE in Tuesday's session, supporting the benchmark indices. The stock is just less than ₹100 away from its all-time high level of ₹2,750 it had hit in October last year. On the BSE, RIL's market capitalization stood over ₹17.96 lakh crore, nearing the ₹18 lakh crore mark.
Stocks in Europe declined and bond yields climbed as markets reopened after a holiday amid hawkish comments by Federal Reserve officials and Russia’s renewed campaign in eastern Ukraine.
Healthcare stocks led the decline in the Stoxx Europe 600 index. Dutch automaker Stellantis NV slumped after halting output at factory near Moscow that makes vans, following a long list of manufacturers ceasing output at plants in Russia due to the war in Ukraine.
Energy stocks were led higher by TotalEnergies SE on a positive first-quarter report, while the raw-materials sector was in the green as gains for copper and other industrial metals pushed Bloomberg’s Commodities Spot Index to a record.
Cottonseed oil cake prices on Tuesday declined by ₹29 to ₹3,073 per quintal in futures trade as participants reduced their bets tracking a weak trend in spot market.
On the National Commodity and Derivatives Exchange, cottonseed oil cake for April delivery fell by ₹29 or 0.93 per cent to ₹3,073 per quintal with an open interest of 680 lots.
Analysts said sell-off by participants at existing levels amid subdued trend in market mainly weighed on cottonseed oil cake prices.
Chinese stocks closed down on Tuesday, despite the authorities vowing to support the economy amid a Covid-19 outbreak, with investors watching whether tough pandemic controls might be relaxed.
The blue-chip CSI300 index fell 0.8% to 4,134.90, while the Shanghai Composite Index lost 0.1% to 3,194.03 points.
The Hang Seng index fell 2.3%, to 21,027.76, while the China Enterprises Index lost 3.0%, to 7,167.67 points.
Zinc prices on Tuesday fell by 1.07 per cent to ₹377.60 per kg in futures trade as speculators reduced their exposure taking negative cues from spot market.
On the Multi Commodity Exchange, zinc contracts for April delivery traded lower by ₹4.10 or 1.07 per cent to ₹377.60 per kg in 1,484 lots.
Analysts said offloading of positions by participants, owing to slackened demand from consuming industries in the physical market, mainly weighed on zinc prices here.
Gold prices on Tuesday rose by ₹26 to ₹53,298 per 10 grams in futures trade as speculators created fresh positions on a firm spot demand.
On the Multi Commodity Exchange, gold contracts for June delivery traded higher by ₹26 or 0.05 per cent at ₹53,298 per 10 grams in a business turnover of 17,734 lots.
Fresh positions built up by participants led to the rise in gold prices, analysts said.
Globally, gold was trading 0.31 per cent lower at $1,980.30 per ounce in New York.
State-owned fuel retailers IOC, BPCL and HPCL may suffer marketing losses in January-March 2022 quarter for holding petrol and diesel prices despite a rise in cost but robust core refining margins and windfall inventory gains should mitigate the potential losses in near term, Fitch Ratings said Tuesday.
The three fuel retailers kept petrol and diesel prices unchanged for a record 137-days between November 2021 and March 2022 despite a nearly USD 27 per barrel rise in crude oil prices. The three companies raised the rates by ₹10 per litre over 16 days beginning March 22 before again hitting a pause button.
PB Fintech is well placed to benefit from the rising insurance penetration in India, especially through digital distribution and high growth, operating leverage, strong balance sheet and established brand recall among the Indian populace are its key business moats, as per brokerage and research firm ICICI Securities.
Shares of Tata Power continued to extend decline with the stock down about 12% in the last five trading sessions. Analysts believe that the sharp rally in the multibagger stock, that is up over 169% in a year's period, leaves limited room for upside.
Trent Ltd is enjoying the optimism surrounding the rebound in demand as the economy opens up. The retailer’s shares are just about 7% lower from the 52-week high of ₹1346.85 apiece seen on 7 April. Store additions, recovering footfall and pent-up demand are likely to support Trent’s operations.
Oil marketing companies (OMC) have kept retail prices of petrol and diesel unchanged for the 13th straight day.
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Shares of Ducon Infratechnologies Ltd continue to surge for the second straight session after its bonus shares issue as it was trading over 10% higher at ₹30 apiece on the BSE in Tuesday's early deals. The stock turned ex-bonus on Monday, a day ahead of its record date on April 19, 2022 for the bonus issue of equity shares in the ratio of 1:10.
A fledgling class of crypto that feasts on risk is outshining a wider market paralyzed by war and inflation.
Coins backed by gold are newer variants of "stablecoins", which are typically pegged to the dollar to tame volatility. The largest, Pax Gold or PAXG, has jumped 7.4% in 2022, while main rival Tether Gold has leapt 8.5%.
By contrast, bitcoin has lost over 13% and ether is down 20%.
In cryptocurrencies, Bitcoin price today surged above the $40,000 mark after falling to its lowest level in more than a month on Monday. The world's largest and most popular cryptocurrency rose more than 2% to $40,712. The global crypto market’s value gained about 2% in the past 24 hours to $1.98 trillion, according to pricing from CoinGecko.
The rupee depreciated 6 paise to 76.35 against the US dollar in opening trade on Tuesday, weighed down by the strength of the greenback and significant foreign fund outflows.
At the interbank foreign exchange, the rupee opened at 76.34 against the American dollar, then lost ground to quote at 76.35, registering a fall of 6 paise from the last close.
On Monday, The rupee depreciated for the third straight session to close 10 paise lower at 76.29 against the US dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.14 per cent higher at 100.92.
Shares of HDFC Bank continued to fall in Tuesday's early deals by plunging more than 2% to ₹1,362 apiece on the BSE, marking its ninth straight session of loss. The bank's stock is down about 9% as compared to a 3% fall in benchmark Sensex in the last five trading sessions.
Midcap IT services provider Mindtree Ltd. saw yet another quarter of more than 5% revenue growth. In constant currency (CC) terms, revenue rose 5.2% sequentially, ahead of consensus estimate. Growth was broad-based, across most verticals and geographies.
India’s leading crypto exchange CoinDCX has raised over $135 million in Series D funding round, led by Pantera and Steadview.
Inline performance on both revenue and operating margin front
Reported strong financial performance with revenue and EBIT margin broadly inline with estimates for the quarter. Robust deal booking provides strong revenue visibility.
Attrition remains high but expected to stabilize over next 6 months. Client mining strategy of upselling and cross selling among top clients continues to serve it well. We expect certain costs related to travel and admin to come back as IT companies switch to hybrid mode of working. However, improving employing pyramid, positive operating leverage and the efficiency measures should help to broadly maintain stable margin going ahead. We estimate revenue CAGR of 17.4% over FY22‐24E with average EBIT margin of 17.6%. High revenue concentration from top client at 24.9% remains a risk factor.
We maintain ADD Rating on the stock with revised target price of ₹4507, valuing the stock at 34x on FY24E EPS. We have cut down our target PE multiple from 41x to 34x to account higher cost of capital(WACC) going ahead. The stock trades at PER of 29.9x on FY24E EPS.
India’s JSW Group, which runs emissions-heavy businesses including steel, cement and energy, plans to switch a majority of its bonds to green instruments as the industrial giant seeks access to longer-term borrowings.
Axis Bank has hiked its Marginal Cost of Funds based Lending Rate (MCLR) by 5 basis points (bps) with effect from 18 April. The benchmark one-year tenor MLCR will rise to 7.35 per cent. The overnight, one-month, three-month and six-month MCLRs have been hiked by 0.05 per cent each to 7.20%, 7.30% and 7.35% respectively.
Asian stocks were digesting news about growth concerns in China and rising interest rates in the United States on Tuesday with Japan edging marginally higher, but Hong Kong falling sharply in early trade.
Chinese growth numbers for the first quarter of 2022 exceeded expectations on Monday but the government warned of "significant challenges" ahead.
Shanghai, the country's economic centre, is in the throes of an intense Covid-19 lockdown with restrictions -- which have also hit tech hub Shenzhen and the northeastern grain basket of Jilin -- shutting supply lines.
Investors were left weighing whether attempts to lift the economy by Chinese policymakers -- who have held off cutting interest rates -- would offset Beijing's zero-Covid policies.
Shares of Mindtree slipped nearly 1% to ₹3,926 apiece in Tuesday's opening deals on the BSE after the IT company registered a 49% from a year earlier jump in its consolidated net profit at ₹473 crore in the fourth quarter. The Bengaluru-based software services firm's revenue grew 37% year-on-year (YoY) and 5.4% on a sequential basis to ₹2,897 crore.
On 18th Apr’22, USDINR made a gap up opening at 76.40 levels from its previous closing of 76.17 levels. Thereafter it moved down south towards 76.23 levels despite the huge fall in local equities. The reason behind the same could be attributed to huge dollar selling by exporters and banks who wanted to take an advantage of higher USDINR. In the upcoming trading session, the possibility of the Rupee trading weaker is higher on the back of sour global sentiments as geopolitical tensions still persist coupled with the disappointing release of WPI data from the nation. USDINR shall trade in a range between 75.90 to 76.50 levels.
World Bank Chief Economist Carmen Reinhart said the global economy is passing through a period of “exceptional uncertainty" and added that she wouldn’t rule out further downgrades to the growth outlook.
The Washington-based institution has lowered its estimate for global growth in 2022 to 3.2% from a January prediction of 4.1%, spurred by a cut in the outlook for Europe and central Asia that includes Russia and Ukraine. The new forecast compares with a 5.7% expansion in 2021.
“I think what’s really clear is that the risks lay on the downside," Reinhart said in an interview with Bloomberg Television’s “Daybreak: Australia" on Tuesday. “The array of disruptions" from China’s Covid lockdowns to the impact on food prices of Russia’s war on Ukraine all point to that, she said.
The Jaipur-based AU Small Finance Bank has informed BSE that the meeting of the Board of Directors of the company will be held on 26th April at Jaipur.
Gold prices steadied on Tuesday, after getting within a stone's throw of the key $2,000 per ounce level in the previous session, as lower U.S. Treasury yields offset pressure from two-year highs in the dollar.
Poonawalla Fincorp Limited (Formerly Magma Fincorp Limited), has entered the digital consumption loans space through a tie up with KrazyBee. Under this partnership, Poonawalla Fincorp will offer small ticket personal loans to individuals. Poonawalla Fincorp focuses on consumer and small business finance as a part of its stated strategy.
China sees multiple risks to the economy as Covid outbreaks worsen, yet pledged to still meet its ambitious growth target and stabilize jobs.
The economy is facing “greater downward pressure, and difficulties and challenges have increased significantly," the state-run Xinhua News Agency wrote in a set of questions and answers late Monday, citing unnamed “authoritative departments and persons."
Authorities are “firmly confident" and will strive to achieve the full-year targets as the economy still has “many strategic advantages," it said in the report, which was also published on the front page of Communist Party’s flagship newspaper People’s Daily.
7 stocks to buy or sell today — 19th April
The Japanese yen hit a 20-year low against the dollar on Tuesday, supported by high U.S. Treasury yields and likely comparatively good U.S. economic data this week.
The dollar rose 0.37% on the yen to 127.44 yen in early trade, its highest level since May 2002.
It has risen 4.5% on the Japanese currency so far this month, which would be its second-biggest monthly percentage gain since 2016 behind March's 5.8%.
The dollar was also firm against most other currencies and the dollar index was at 100.8, just off Monday's two-year high of 100.86.
Federal Reserve Bank of St. Louis President James Bullard said the central bank needs to move quickly to raise interest rates to around 3.5% this year with multiple half-point hikes and that it shouldn’t rule out rate increases of 75 basis points.
“More than 50 basis points is not my base case at this point," Bullard said in a virtual presentation to the Council on Foreign Relations on Monday adding the Fed under Alan Greenspan did such a hike in 1994 leading to a decade-long expansion. “I wouldn’t rule it out, but it is not my base case here."
Fed Chair Jerome Powell has said that a 50 basis-point increase is possible at the Fed’s May 3-4 meeting. Comments by colleagues since then have hardened expectations they’ll make that move, as officials extend a hawkish pivot to curb the hottest inflation since 1981.
Oil steadied after a four-day run of gains as investors weighed the threat to energy consumption from a slew of lockdowns in major centers in China against interruptions to crude supplies from Libya.
West Texas Intermediate traded above $108 a barrel after closing at the highest in more than three weeks on Monday. China is battling a renewed Covid-19 outbreak, imposing harsh curbs to stem its spread. As that hurts the economy, the central bank has moved to aid individuals and small businesses.
Libya’s oil production has fallen by more than half a million barrels a day and there’s a risk of further losses as a wave of political demonstrations engulfs the OPEC member. The Sharara field in the west of the country, which can pump 300,000 barrels a day, has been closed as protests spread.
Stocks closed slightly lower after a wobbly day of trading Monday, as worries about interest rates and inflation keep a lid on Wall Street despite some better-than-expected profit reports.
The S&P 500 slipped less than 0.1%. The benchmark index was coming off its second straight week of losses. Like it, the other two major U.S. stock indexes also rolled between small gains and losses Monday. The Dow Jones Industrial Average and Nasdaq each fell 0.1%.
Among S&P 500 companies, a slide in health care, industrial and other sectors narrowly edged out gains in technology, financial, energy and other stocks.
That pulled the index 0.90 points lower to 4,391.69. The Dow, meanwhile, dropped 39.54 points to 34,411.69.
Stocks have struggled this year as the highest inflation in generations forces the Federal Reserve into a U-turn on the low-interest-rate policies that helped markets soar and the economy to rev in recent years.
Hong Kong stocks slid down in early trade on Tuesday after a four day holiday weekend, tracking growth concerns in China and modest falls on Wall Street.
The Hang Seng Index fell 1.78 percent, or 382.28 points, at 21,135.80.
The Shanghai Composite Index rose in early trade, up 0.15 percent, or 4.71 points, at 3200.24, while the Shenzhen Composite Index on China's second exchange edged up 0.51 percent, or 10.31 points, to 2032.83.
Tokyo stocks opened higher on Tuesday as investors bargain hunted shares that dipped after modest falls on Wall Street.
The benchmark Nikkei 225 index was up 1.04 percent, or 278.29 points, at 27,078.00 in early trade, while the broader Topix index gained 0.94 percent, or 17.64 points, to 1,897.72.
"Japanese shares are seen starting with rebounds after limited falls in the post-holiday US markets," Okasan Online Securities said in a note.
A cheaper yen against the dollar is supporting some export-oriented shares including automakers, analysts said.
The dollar fetched 127.04 yen in early Asian trade, after the yen dipped to a new 20-year low of below 127 yen in New York.
Among major shares in Tokyo, Toyota was up 0.74 percent at 2,171 yen after it revised down its production plans for May by 100,000 vehicles to 750,000 units.
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