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Market snaps 2-day rising streak; Nifty ends below 18,000; broader mkt rally

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Capital Market
Last Updated : Apr 05 2022 | 6:04 PM IST

Key indices ended with modest losses on Tuesday, snapping a two-day rising streak. The Nifty closed below the 18,000 mark after hitting the day's high of 18,095.45 in afternoon trade. Banks and financial stocks took a breather after a stellar rally in the previous session. Meanwhile, FMCG and consumer durables stocks were in demand.

The S&P BSE Sensex slipped 435.24 points or 0.72% at 60,176.19. The Nifty 50 index shed 96 points or 0.53% at 17,957.15. Both the indices rose about 3.5% in the previous two sessions.

The broader indices outperformed the main stock indices. The S&P BSE Mid-Cap index rose 1.28% while the S&P BSE Small-Cap index gained 1.37%.

The market breadth was strong. On the BSE, shares 2,347 rose and 1,054 shares fell. A total of 106 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 3.23% to 18.4875.

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The yield on India's 10-year benchmark federal paper rose to 6.90% from its previous close of 6.89%.

In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 75.27, compared with its close of 75.53 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement fell 0.18% to Rs 51,441.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.01% to 98.99.

In the commodities market, Brent crude for May 2022 settlement rose $1.15 or 1.07% at $108.68 a barrel.

Global Markets:

European market declined while most Asian stocks advanced on Tuesday.

Investors remain closely attuned to developments in Ukraine and prospects for central bank policy around the world in the face of surging inflation. The United States and Europe are considering new punitive sanctions against Russia after allegations of civilian killings in Ukraine.

Buzzing Segments:

Consumer durables stocks rallied on hopes of uptick in demand for air-conditioners and refrigerators during summer season.

The Nifty Consumer Durables index jumped 2.40% to 28,100.65. The index has rallied 4.98% in six sessions.

Havells India (up 6.5%), Dixon Technologies (India) (up 5.15%), Kajaria Ceramics (up 4.25%), Orient Electric (up 2.83%), Voltas (up 2.76%), Blue Star (up 2.67%) and Titan Company (up 1.31%) advanced.

Stocks in Spotlight:

HDFC Bank fell 2.98% and HDFC declined 2.12% on profit selling after a steep rally on Monday. Both these stocks surged about 10% in the previous session on merger announcement.

Mortgage firm HDFC will merge with HDFC Bank. Shareholders of HDFC as on the record date will receive 42 shares of HDFC Bank, for 25 shares held in HDFC, and the equity shares held by HDFC in HDFC Bank will be extinguished as per the merger scheme.

Post merger, HDFC Bank will be 100% owned by public shareholders and existing shareholders of HDFC will own 41% of HDFC Bank.

Zomato fell 2.73% after Competition Commission of India (CCI) announced a probe on Zomato and Swiggy for 'unfair' practices. The CCI on 4 April 2022 ordered an investigation into alleged anti-competitive trade practices by food-ordering platforms Zomato and Swiggy. The order comes against the backdrop of complaints made by the National Restaurant Association of India (NRAI) against the food tech giants.

SBI Cards and Payment Services fell 4.32% to Rs 838.90 after the counter witnessed large block deals in the initial deals today.

At 9:16 IST, around 37.04 lakh equity shares, representing 0.39% of total equity of SBI Cards and Payment Services, changed hands at the counter on the BSE. Details of the buyers and sellers were not immediately known.

The media reported that private equity firm Carlyle Group will sell its entire stake in SBI Cards and Payments Services for as much as Rs 2,558 crore. CA Rover Holdings, a Carlyle entity which, as of 31 December 2021, held 2.92 crore shares or 3.09% stake, in SBI Cards, will sell its entire stake in the firm through a block trade. The shares are being offered at Rs 851.50 - 876.75 each, representing around 3% discount to the stock's last closing price on the BSE.

Ramkrishna Forgings surged 6.84% after the company said that it received an export order worth Rs 135 crore from a Euroasian OEM manufacturer. The order is for the heavy duty commercial vehicle crank shafts (06 CYL) business to be executed in next five years.

TCS fell 1.17%. The IT major on Monday said that it has signed a 'material multi-year contract' with a large US company, expanding its long-standing partnership to accelerate their cloud transformation journey.

In a separate announcement on Monday, TCS said that it has entered into a strategic partnership with Payments Canada, the country's largest payment organization, to transform its payment system operations and help implement the Real-Time Rail (RTR), the new real-time payments system that will allow Canadians to initiate payments and receive irrevocable funds in seconds, 24/7/365.

Bajaj Finance declined 1.33%. The new loans booked during Q4 FY22 stood at 0.63 crore as compared to 0.55 crore in Q4 FY21, recording a growth of 14.54% year-on-year (YoY). New loans booked during FY22 were at 2.47 crore as compared to 1.69 crore in FY21, registering a rise of 46.15% YoY. Assets under management (AuM) stood approximately at Rs 1,97,500 crore as of 31 March 2022 as compared to Rs 1,52,947 crore as of 31 March 2021, jumping 29.12% YoY. The core AUM i.e. net of short-term IPO financing receivable of approximately Rs 5,400 crore as of 31 March 2022 was Rs 1,92,100 crore, with a YoY growth of 26%. Core AUM addition in Q4 FY22 was approximately of Rs 10,900 crore.

Lupin fell 1.53%. The US-based drug regulatory body, United States Food & Drug Administration (USFDA), concluded an inspection at Lupin's Tarapur manufacturing facility in Maharashtra. The inspection was carried out between 22 March 2022 and 4 April 2022. The inspection closed with four observations. Lupin stated that they are, confident of addressing the observations to the USFDA's satisfaction. We are committed to adherence and full compliance with CGMP regulations and uphold the highest quality standards across our manufacturing sites.

Federal Bank declined 4.15%. The bank's CASA deposits aggregated to Rs 67,132 crore, recording a growth of 15% over Rs 58,370 crore as of 31 March 2021. CASA ratio stood at 36.94% in Q4 FY2022 as compared to 33.81% in Q4 FY2021 and 36.68% in Q3 FY2022. The CASA ratio stood at 36.94% in FY22 from 33.81% in FY21. The bank's retail deposits as per internal classification aggregated to Rs 1,71,569 crore, registering a growth of 10% over Rs 1,55,977 crore as of 31 March 2021.

IndusInd Bank fell 1.34%. The private lender's net advances stood at Rs 2,39,307 crore as of 31 March 2022, recording a growth of 13% over Rs 2,12,595 crore as of 31 March 2021 and a growth of 5% over Rs 2,28,583 crore as of 31 December 2021. The bank reported a 15% growth in deposits to Rs 2,93,685 crore as of 31 March 2022 as against Rs 2,56,205 crore as of 31 March 2021 and 3% increase to Rs 2,84,827 crore as compared to 31 December 2021. CASA ratio stood at 42.8% as of 31 March 2022 as compared to 41.8% as of 31 March 2021 and 42.2% as of 31 December 2021.

Yes Bank fell 0.61%. The private bank said its net advances rose 8.8% year-on-year and 3% quarter-on-quarter to Rs 181,508 crore in 31 March 2022. The bank's net advances stood at Rs 176,241 crore as on 31 December 2021 and Rs 166,893 crore in 31 March 2021. Gross retail disbursements stood at Rs 10,324 crore as on 31 March 2022 as against Rs 9,313 crore as on 31 December 2021 and Rs 7,530 crore as on 31 March 2021. Meanwhile, private bank's deposits increased by 7.1% YoY and 21.1% QoQ to Rs 197,281 crore as on 31 March 2022. Certificate of Deposits (CDs) aggregated to Rs 4,264 crore (down 38.17% YoY). CASA stood at Rs 61,449 crore, up 44.3% YoY as against Rs 42,587 crore posted in the same quarter last year.

Primary Market:

The initial public offer (IPO) of Hariom Pipe Industries received bids for 6,74,04,596 shares as against 85,00,000 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (5 April 2022). The issue was subscribed 7.93 times.

The issue opened for bidding on Wednesday (30 March 2022) and it will close on Tuesday (5 April 2022). The price band of the IPO is fixed at Rs 144 - Rs 153 per share.

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First Published: Apr 05 2022 | 5:17 PM IST

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