Indian indices ended weak on Tuesday dragged by profit booking in heavyweights. HDFC twins were in the red after a stellar run on Monday. Indian investors are focussing on the outcome of the RBI's monetary policy committee's meeting on Friday, while crude prices and the Russia-Ukraine war continue to remain major headwinds. Shares edged higher in Asia with Nikkei ending with gains
Markets end lower: Sensex sheds 435 points, Nifty below 18,000
Benchmark Indian equities indices, Sensex and Nifty, declined on Tuesday due to profit booking in heavyweights like HDFC twins. After a sharp rally on Monday, Sensex ended 435 points lower at 60,176.50, while Nifty lost over 0.5% to end below the 18,000 mark. The markets started the day on a positive note but slipped into red soon after opening in volatile trade.
While banks and financials were the biggest laggards among sectors, auto and FMCG were the outperformers.
HDFC Ltd and HDFC Bank that had led the stock market's rally on Monday, declined on profit booking and were the biggest laggards on the indices. NTPC, Power Grid and Adani were among the major gainers in trade on Tuesday.
BSE Midcap and Smallcap indices were the outperformers, ending with stellar gains of over 1.3% each.
I&B ministry has blocked 22 YouTube based news channels, three Twitter accounts, one Facebook account, and one news website for spreading false news about the country.
Dr Reddy's launches generic Methylprednisolone Sodium Succinate for injection in US
Pharma major Dr Reddy's Laboratories Ltd on Tuesday said it has launched its generic Methylprednisolone Sodium Succinate for injection, indicated for various conditions including arthritis, blood disorders and severe allergic reactions, in the US market.
The injection is the generic equivalent of SOLU-MEDROL and has been approved by the US Food and Drug Administration (USFDA), the company said in a regulatory filing. (PTI)
Sensex at day's low, sheds over 300 points to 60,245
Tata Housing plans ₹1,200 cr investment to acquire land for premium housing, plotted development
Producers raise concerns over PVR, INOX merger
Producers said the merged entity could dictate terms on show timings, revenue share and even the window between theatre and OTT release of films. (Read here)
India's direct tax mop-up touched nearly ₹14 trillion in 2021-22, which is about a whopping ₹1.5 trillion higher than the revised estimates
Zomato says will continue to work closely with CCI in their investigation.
A day after India's antitrust body ordered a probe into the anti-competitive practices of food delivery platforms, Zomato said it will continue to work closely with CCI to assist them with their investigation.
BSE Auto index jumps 1.3%; Tata Motors, Eicher, Tube Investments gain most
Sensex down 200 points in volatile trade; ITC top gainer
Lupin says US FDA inspection of Tarapur manufacturing facility closed with four observations. The inspection was carried out between 22 March and 24 April: CNBC-TV18
Oil prices, Asian shares gain tracking rally on Wall Street
Shares edged higher in Asia and oil prices also advanced after a tech-driven rally on Wall Street. Trading was light with many regional markets including those in China closed for holidays. The Nikkei index inched up 0.19% to close at 27,787.98, after falling as much as 0.26% earlier in the session.
NRAI 'extremely happy' with CCI order against Zomato, Swiggy
Restaurant association the National Restaurant Association of India (NRAI) on Tuesday said it is “extremely happy" with the Competition Commission of India’s (CCI) directive to order a probe into alleged anti-competitive practices followed by food aggregators Zomato and Swiggy.
Last year, the industry association that has been rallying for a level playing field in the online food delivery market—approached the competition watchdog with evidence to back “anti-competitive“ practices such as data masking and charging exorbitant commissions by food aggregators.
Market recovers losses; Sensex now in the green; HDFC twins lag
L&T Construction bags significant orders
The construction arm of Larsen & Toubro (L&T) has secured significant orders for its transportation infrastructure business. The company classifies orders worth ₹1,000 crore to ₹2,500 crore as ‘significant’.
Passenger vehicle retail sales dip 5% in March to 2,71,358 units: FADA
"Passenger vehicles continue to see high demand and long waiting periods as semiconductor availability still remains a challenge, even though supplies slightly improved from previous month," FADA President Vinkesh Gulati noted.
Zomato down 2.6%; CCI ordered probe into allegations of anti-competitive practices against the company and Swiggy
PhonePe to double its employee count by December
Digital payments platform PhonePe will double its total employee strength by the end of December 2022. The company plans to hire across levels and functions for Engineering, Product, Analytics, Business Development, and Sales teams. There are about 2800 open job positions that the company is planning to fill in the next 12 months across the country.
BSE FMCG index up 1.32%; Avanti Feeds soars 7.5%
Anarock acquires co-working firm myHQ
Property advisory Anarock Group on Tuesday said it has acquired co-working platform myHQ, to strengthen its flexible workspace portfolio.
Markets at noon: Sensex at 216 points; Nifty hovers around 18,000
Bajaj Auto's March sales volume worst hit among 2Ws
Bajaj Auto Ltd's two-wheeler volumes continued to decline in March, falling 8% sequentially and 22% year-on-year (y-o-y) to 2.6 lakh units. Subdued domestic demand in the two-wheeler segment coupled with a severe shortage of semiconductors led to a 41% slump in domestic volumes. Flattish exports, however, cushioned some of the fall.
BSE SmallCap outshines broader market; jumps 400 points
Avalanche of bond supply pressures RBI to stem yield shock
Traders in India are pinning their hopes on the central bank stepping in to manage bond-market liquidity at this week’s policy review as the market confronts record debt supply.
The Reserve Bank of India faces the challenge of keeping bond yields in check as the government kicks off an unprecedented 14.31 trillion rupees ($190 billion) of annual borrowing in April. At the same time, surging oil prices threaten to accelerate inflation, putting pressure on policy makers to hike rates. (Bloomberg)
Nifty Bank down 0.8%; HDFC Bank, Federal Bank, Kotak Bank biggest laggards
Gold slipped on Tuesday as the U.S. dollar held firm on rising prospects of more sanctions against Russia
Wipro shares down ahead of record date for interim dividend
Nifty's FY22 returns second-best returns in last seven years
Indian equity market has given solid returns in financial year 2022, this is despite geopolitical concerns playing a spoilsport in the last quarter of FY22. An analysis by domestic brokerage house Motilal Oswal Financial Services showed that in FY22, the Nifty50 recorded an impressive 19% year-on-year gain and ended the financial year with the second-best returns in seven years.
Heavyweights HDFCBank, HDFC Ltd, Reliance drag Sensex in early trade
Centre may shore up capital at weak state-run banks this fiscal
The government may consider capital support for state-run banks in FY23 based on a fresh assessment by the finance ministry later this year, two officials aware of the matter said, though the Union budget does not envisage any bank recapitalization during the year. (Full report)
The Indian rupee rose 6 paise to 75.47 against the US dollar in early trade
ICICI Securities on HDFC-HDFC Bank merger
The Board of Directors of HDFC Ltd and HDFC Bank, at their respective meetings, inter alia, approved a composite scheme of amalgamation for amalgamation of: (i) HDFC Investments Ltd and HDFC Holdings Ltd, with and into HDFC Ltd; and (ii) HDFC Ltd with and into HDFC Bank, and their respective shareholders and creditors.
Key Highlights
· Subsidiary/associates of HDFC Ltd will become subsidiary/associates of HDFC Bank
· HDFC Bank will be 100% owned by public shareholders and existing shareholders of HDFC Ltd will own 41% of HDFC Bank
· Closing is expected to be achieved within ~18 months, subject to completion of regulatory approvals and other customary closing conditions
· Combined balance sheet of | 17.87 lakh crore and | 3.3 lakh crore net worth
· HDFC Ltd would benefit from the bank’s lower funding cost
· HDFC Bank would gain product expertise in mortgage space and help reduce cost/income ratio
· Better cross sell opportunities for bank with direct access to HDFC Ltd’s customer base
· The proposed transaction will result in reducing HDFC Bank's proportion of exposure to unsecured loans
HDFC Bank down 3%; India’s most valuable lender has agreed to acquire its parent HDFC Ltd
Smallcap, Midcap indices buck the trend to trade higher; Volatility index up 3%
Nifty players: Bajaj Finance, HDFC twins lag; Adani Ports best gainer
Sensex at open: Banks and financials top losers, while IT and auto stocks were the best gainsers
Nifty50 at pre-open: Trades above 18,050; Adani Ports up over 2.6%
Sensex at pre-open: NTPC, Hindustan Unilver, Tata Steel lead; Axis Bank drags
Technical & derivatives report by Sameet Chavan, chief analyst-technical and derivatives, Angel One
Yesterday morning, the SGX Nifty was indicating a sluggish start owing to subdued global cues. However, during the pre-opening period, the news came out with respect to the merger of two giant companies, HDFC Ltd and HDFC Bank. This resulted in a complete gush in these two heavyweights and then rub off of this was seen across the broader market. In this process, the key indices, Nifty and Bank Nifty just took off right from the word go. Since the HDFC conglomerate is known for its reputation, this news flow provided the much-needed impetus to the rally. As a result, Nifty zoomed towards 18000 and despite some small profit booking around the mid-session, maintained its sturdy posture throughout the day.
The Nifty is now back above the psychological mark of 18000 and banking was the major charioteer of the move. Although this announcement was a surprise for the participants, the market had given some indication of positivity on Friday and that’s the reason we had stated in our previous comments about the possibility of reaching the 18000 mark this week. This has come much faster than we had anticipated and it's certainly a pleasant development for the bulls. Now, January’s high of 18350 is not so far away, and considering the ongoing momentum, we advise traders to use intra-week decline to add longs.
As far as supports are concerned, 17850 – 17800 is likely to provide an immediate cushion; whereas on the flip side, 18200 – 18350 are the levels to watch out for. On expected lines, banking proved its mettle and is back in the driver’s seat. This is certainly a healthy sign and hence, one should avoid taking contradictory bets at the current juncture. Apart from this, the midcap universe did extremely well which is likely to continue for a while. Traders must try to identify potential movers who are likely to give some quick moves in the coming days.
Bitcoin, ether, dogecoin, Terra gain while Solana, Shiba Inu fall
Gold eases as dollar holds firm on safe-haven flows
Gold inched lower on Tuesday as the U.S. dollar held firm on rising prospects of more Russian sanctions, and bigger interest-rate hikes by the Federal Reserve to rein in inflation.
Veranda Learning IPO share allotment today
Markets protected by retail investors: FM
Retail investors have put their faith in the Indian stock market and they are protecting it from volatility due to the fund flows of foreign investors, finance minister Nirmala Sitharaman said.
Oil extends surge on specter of fresh sanctions against Russia
Oil advanced for a second day as the U.S. and Europe prepared to impose a fresh wave of sanctions on Russia for alleged atrocities committed by its forces against civilians in Ukraine.
West Texas Intermediate topped $105 a barrel after closing 4% higher on Monday, the biggest gain in two weeks. Washington will announce additional measures this week, according to National Security Advisor Jake Sullivan, who said these may contain curbs on energy. European policy makers including French President Emmanuel Macron also flagged scope for further steps.
Oil rallied to the highest level since 2008 in the first quarter as Russia’s invasion disrupted supplies in an already tight market faced with roaring demand and dwindling stockpiles. The U.S. and U.K. have already moved to bar Russian oil and there’s gathering momentum for some form of similar action from the European Union, although its dependence on flows is higher.
LME copper firms on Chile supply concerns; strong dollar caps gain
London copper prices rose for a second session on Tuesday, supported by worries about supplies from top producer Chile, although a stronger dollar and lingering concerns over Chinese demand kept gains in check.
Chile's copper production fell 7.5% in February to 394,700 tonnes, the State Chilean Copper Commission (Cochilco) said in a report on Monday.
Stocks waver, crude rises amid tension over Russia
Stocks in Asia were mixed Tuesday and crude oil climbed as investors evaluated the prospect of tougher sanctions against Russia for alleged atrocities during its war in Ukraine.
Shares rose in Australia but retreated in Japan and South Korea, where faster inflation added to the case for more interest-rate hikes. U.S. equity futures dipped after the technology sector bolstered Wall Street on Monday.
Tokyo shares give up gains on profit-taking
Tokyo shares opened higher Tuesday following gains on Wall Street led by tech giants, but soon receded on profit-taking, with investors cautious over uncertainties linked to Ukraine.
The benchmark Nikkei 225 index initially climbed at the open, but dipped 0.11 percent, or 31.91 points, to 27,705.28 in early trade.
The broader Topix index fell 0.26 percent, or 5.08 points, to 1,948.55.
Mizuho Securities said in a note that "buying was likely to dominate today, with equities, particularly high-tech stocks, expected to be buoyed by the rise in the Nasdaq index."
Wall Street up broadly, tech stocks fired up by Twitter rally after Musk purchase
Wall Street's three major equity indexes rose about 1% on the average with shares of Twitter, particularly, outperforming on news that flamboyant tech-entrepreneur and influencer Elon Musk had become the largest shareholder in the microblogging site.
The three indexes - the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite - also rose broadly for a second day in a row after closing first quarter trading last week with the biggest slump since the coronavirus breakout of two years ago.
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