The benchmark indices hovered in the negative territory throughout the trading session on Monday. The barometers extended its losses for the second consecutive day. The Nifty index corrected from its intraday high of 16,403.70, to end tad above 16,300 level. Metal and FMCG were among the top laggards during the day.
Shares of index heavyweight Reliance Industries (RIL) fell 3.97% in reaction to its Q4 results declared after market hours on Friday. Weakness in global stocks weighed on sentiment adversely.
As per provisional closing basis, the barometer index, S&P BSE Sensex dropped 364.91 points or 0.67% at 54,470.67. The Nifty 50 index lost 109.40 points or 0.67% at 16,301.85.
The S&P BSE Mid-Cap index fell 1.89%. The S&P BSE Small-Cap index slipped 1.67%.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,047 shares rose while 2,417 shares fell. A total of 150 shares were unchanged.
LIC IPO:
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The initial public offering (IPO) of insurance behemoth Life Insurance Corporation (LIC) of India received bids for 45.95 crore shares as against 16.20 crore shares on offer, according to stock exchange data at 15:27 IST on Monday (9 May 2022). The issue was subscribed 2.84 times.
The issue opened on 4 May 2022 and it will close today, 9 May 2022. The IPO price band is Rs 902 to Rs 949 per equity share. An investor can bid for a minimum of 15 equity shares and in multiples thereof.
Buzzing Index:
The Nifty FMCG index fell 1.47% to 36,732. The index lost 4.05% in four trading sessions.
Among the components of the Nifty FMCG index, Marico (down 2.78%), Nestle India (down 2.77%), Radico Khaitan (down 2.7%), United Spirits (down 2.1%) and Hindustan Unilever (HUL) (down 1.54%) were the top losers.
Among the other losers were Britannia Industries (down 1.48%), Varun Beverages (down 1.45%), ITC (down 1.28%), Dabur India (down 1.22%) and Tata Consumer Products (down 1.04%).
On the other hand, Colgate-Palmolive (India) (up 0.05%) and Godrej Consumer Products (up 0.02%) edged higher.
Stocks in Spotlight:
Reliance Industries declined 3.97%. On a consolidated basis, Reliance Industries (RIL) reported 20.2% increase in net profit to Rs 18,021 crore on 38.64% rise in net sales to Rs 207,375 crore in Q4 March 2022 over Q4 March 2021. Profit before tax (PBT) rose 36.8% to Rs 22,411 crore in Q4 March 2022 over Q4 March 2021. EBITDA increased by 27.7% to Rs 33,968 crore from Rs 26,602 crore in the corresponding quarter of the previous year. EBITDA growth was driven by strong operating performance across businesses. Finance cost decreased by 12.1% to Rs 3,556 crore as against Rs 4,044 crore in the corresponding quarter of the previous year. Lower finance costs reflect large paydown of debt and other liabilities.
Revenue of O2C was driven by improved price realization on the back of steep rise in crude oil prices and higher volumes. Retail segment revenues increased by robust performance with broad-based double-digit growth across all consumption baskets. Revenue of oil & gas segment increased primarily due to higher Gas price realization in KG D6 & CBM. Digital services revenues was primarily driven by higher ARPU and ramp up of wireline services.
UPL fell 1.18%. The company reported a 29.7% rise in consolidated net profit to Rs 1,379 crore on a 23.9% increase in net sales to Rs 15,861 crore in Q4 FY22 over Q4 FY21. Consolidated profit before tax jumped 18.8% to Rs 2,000 crore in Q4 FY22 from Rs 1,683 crore reported in Q4 FY21. EBITDA rose 26% to Rs 3,591 crore in Q4 FY22 from Rs 2,839 crore in Q4 FY21. EBITDA margin improved to 23% in the quarter ended 31 March 2022 from 22% in the quarter ended 31 March 2021. Finance Cost in Q4 FY22 stood steeply higher at Rs 800 crore in Q4 FY22 as compared to Rs 421 crore in Q4 FY21 on the backdrop of mark to market losses of Rs 172 crore in respect of advance sales orders and higher cost of non-recourse.
Tata Power Company dropped 6.24%. The firm reported 28% rise in consolidated net profit to Rs 503.11 crore on a 15.4% increase in net sales to Rs 11,959.96 crore in Q4 FY22 over Q4 FY21. Total expenses during the quarter increased by 15.4% YoY to Rs 11,951.68 crore. Profit before exceptional items and tax in Q4 FY22 was Rs 688.83 crore, which is higher by 48.9% as compared with Rs 462.65 crore in Q4 FY21. During the quarter ended 31 March 2022, based on current operational performance, the company has reassessed the recoverability of its investment in Adjaristsqali Netherlands B.V. (ABV), held through its wholly-owned subsidiary Tata Power International (TPIPL), and accordingly has recognized an impairment provision of Rs 150 crore as an exceptional item in the financial results. Profit before tax in the fourth quarter stood at Rs 538.56 crore, up 16.4% YoY.
PVR rose 0.20%. The multiplex chain operator reported consolidated net loss of Rs 105.49 crore in Q4 March 2022, lower than net loss of Rs 289.21 crore in Q4 March 2021. On a consolidated basis, total revenues jumped 120.19% to Rs 579.66 crore in Q4 March 2022 over Q4 March 2021. EBITDA surged 468.24% year-on-year to Rs 142.40 crore during the quarter. After adjusting for the impact of IND-AS 116 - Leases, consolidated revenue, EBITDA, and PAT of the company was Rs 553.6 crore, Rs. (17.7) crore and Rs (95.6) crore respectively as against Rs 190.9 crore, Rs (118.2) crore and Rs (271.7) crore for Q4 FY21. For the year ended 31 March 2022, consolidated revenue jumped 121.14% to Rs 1,657.13 crore and EBITDA surged 221.30% to Rs 431.86. Net loss stood at Rs 488.51 crore, lower than net loss of Rs 748.21 in FY21. After adjusting for the impact of IND-AS 116 - Leases, consolidated revenue, EBITDA, and PAT of the company was Rs 1,408.70 crore, Rs (155) crore and Rs (419) crore respectively as compared to Rs 310.4 crore, Rs (424) crore and Rs (665.6) crore for FY21.
Housing Development Finance Corporation (HDFC) rose 0.86%. The housing finance major has increased its Retail Prime Lending Rate (RPLR) on Housing Loans by 30 basis points from 9 May 2022. "HDFC increases its Retail Prime Lending Rate (RPLR) on Housing Loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked by 30 basis points with effect from May 09, 2022," Housing Development Finance Corporation (HDFC) said in a statement on Saturday.
Sundaram-Clayton slipped 0.53%. The company reported 2.2% fall in consolidated net profit to Rs 163.50 crore on a 7.2% rise in net sales to Rs 6,901.63 crore in Q4 FY22 over Q4 FY21. Total expenditure increased by 7% YoY to Rs 6,002 crore during the quarter. Interest payments were at Rs 274.60 crore (up 25.1% YoY) and depreciation costs amounted to Rs 234.49 crore (up 31.4% YoY) in Q4 FY22. Profit before tax in Q4 FY22 stood at Rs 414.64 crore, down by 7.2% from Rs 446.71 crore in Q4 FY21. Current tax outgo during the period under review was Rs 124.06 crore (down 2% YoY).
Navin Fluorine International lost 0.33%. The firm reported a 3% rise in consolidated net profit to Rs 75.1 crore on a 22% increase in net sales to Rs 408.9 crore in Q4 FY22 over Q4 FY21. Profit before tax declined 15% year on year to Rs 94.1 crore in Q4 FY22. Meanwhile, total expenses rose 24.8% year on year to Rs 314.68 crore in the quarter ended 31 March 2022. Consolidated operating EBITDA advanced 10% to Rs 94.3 crore in Q4 FY22 from Rs 85.5 crore posted in Q4 FY21. EBITDA margin declined by 238 basis points to 23% in Q4 FY22 from 25.4% posted in Q4 FY21. The chemical maker said that margins were impacted largely due to higher employee cost and input costs.
Bajaj Consumer Care skid 5.94%. The company's net profit declined 28.81% to Rs 38.37 crore on 10.70% decline in net sales to Rs 216.05 crore in Q4 March 2022 over Q4 March 2021. On a standalone basis, profit before tax (PBT) fell 28.8% year-on-year to Rs 46.5 crore in Q4 March 2022. EBITDA declined 37.9% to Rs 38.6 crore during the period under review. EBITDA margin stood at 17.9% in Q4 March 2022, lower than 18.4% in Q3 December 2021 and 25.7% in Q4 March 2021. During the quarter, total expenses fell 1.91% to Rs 183.42 crore. Cost of material consumed fell 13.50% to Rs 57.90 crore while employee expense declined 8.93% to Rs 18.96 crore.
Global Markets:
The US Dow Jones index futures were down 398 points, indicating a weak opening in the US stocks today.
European markets declined while most Asian markets traded lower on Monday, tracking negative sentiment globally as investors continued to mull over persistently high inflation.
Investors also kept an eye on the war in Ukraine as dozens are feared dead after a school in the Luhansk region in eastern Ukraine was hit by Russian shelling. Luhansk is one of the two regions that make up the Donbas, where Russian troops are now largely concentrating their attacks.
U.S. first lady Jill Biden made a surprise visit to Ukraine on Sunday. The U.S. and Group of Seven countries announced that they would increase short-term financial support for Ukraine as the war with Russia nears the three-month mark.
US stock indexes extended losses for a second day on Friday as elevated US Treasury yields dragged growth shares after stronger-than-expected jobs data amplified investor fears of bigger interest rate hikes to tame surging prices.
The Labor Department's report showed nonfarm payrolls increased by 428,000 jobs in April. Unemployment rate remained unchanged at 3.6% in the month.
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