The benchmark indices closed with major gains on Wednesday, snapping a five-day losing streak. The Nifty 50 index fell 4.64% in the past five sessions. Auto, oil & gas and IT scrips boosted the market while banks and metal stocks declined. The Nifty managed to close above 17,100 mark, rising from the day's low of 16,978.95 in the morning trade.
As per provisional closing basis, the barometer index, S&P BSE Sensex rallied 574.35 points or 1.02% at 57,037.50. The Nifty 50 index rose 177.90 points or 1.05% at 17,136.55.
The S&P BSE Mid-Cap index gained 0.45%. The S&P BSE Small-Cap index added 0.36%.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,751 shares rose while 1,645 shares fell. A total of 114 shares were unchanged.
COVID-19 Update:
India reported 2,067 new cases of COVID-19 - more than double the infections recorded a day beforeand 40 related deaths in the last 24 hours, the Union Ministry of Health and Family Welfare said on Wednesday. There were 1,247 cases and 1 death on Tuesday, according to the health ministry. The ministry's data also showed that 480 active cases were recorded in the same period, taking the total active case count to 12,340.
Economy:
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The International Monetary Fund (IMF) has cut its growth forecast for India for FY23 by 80 basis points to 8.2%, warning that Russia's invasion of Ukraine would hurt consumption and hence, growth, by way of higher prices.
"Notable downgrades to the 2022 forecast include Japan (0.9 percentage point) and India (0.8 percentage point), reflecting in part weaker domestic demand - as higher oil prices are expected to weigh on private consumption and investment - and a drag from lower net exports," the IMF said in its World Economic Report, released on 19 April 2022.
Buzzing Segment:
The Ministry of Defence (MoD) on Wednesday said that it utilised 65.50% of the capital acquisition budget on domestic procurement in the last financial year, exceeding the target of 64%. The MoD had earmarked 64% of capital acquisition budget for domestic industry in fiscal year 2021-22. Further, as per preliminary expenditure report of March 2022, the MoD was able to utilise 99.50% of the defence services budget in FY 2021-22, the ministry said in a statement.
Among defense stocks, Premier Explosives (up 3.85%), Bharat Electronics (BEL) (up 1.22%), Bharat Forge (up 0.92%), Astra Microwave Products (up 0.71%) and Bharat Heavy Electricals (BHEL) (up 0.56%) advanced.
Meanwhile, Bharat Dynamics (down 5.17%), Dynamatic Technologies (down 2.31%), Hindustan Aeronautics (HAL) (down 0.73%), BEML (down 0.67%) and Larsen & Toubro (L&T) (down 0.44%) declined.
Stocks in Spotlight:
ACC rallied 7.29%. The firm's consolidated net profit dropped 29.66% to Rs 396 crore on a 2.58% increase in net sales to Rs 4,322 crore in Q1 March 2022 over Q1 March 2021. On a consolidated basis, profit before tax (PBT) skid 29.44% to Rs 532 crore in Q1 March 2022 from Rs 754 crore in Q1 March 2021. The company's efficiency project 'Parvat' helped it to deliver 1% lower per ton freight & forwarding cost despite fuel inflation and its cost control measures enabled reduction in fixed cost as compared to previous year.
Consolidated EBITDA declined 26.16% to Rs 635 crore in Q1 March 2022 as against Rs 860 crore in Q1 March 2021, due to significant fuel cost increase despite project 'Parvat' delivering strong internal efficiencies. The EBITDA margin stood at 14.7% during the quarter as against 20.4% in the corresponding quarter, last year.
Larsen & Toubro Infotech (LTI) dropped 5.13%. The technology consulting and digital solutions company reported 4.1% rise in consolidated net profit to Rs 637.50 crore on 4% increase in revenue to Rs 4301.60 crore in Q4 March 2022 over Q3 December 2021. As compared to Q4 March 2021, the company's consolidated net profit and revenue increased by 16.8% and 31.6%, respectively.
EBITDA rose 1.8% quarter-on-quarter (QoQ) and 18.3% year-on-year (YoY) to Rs 846.40 crore in Q4 FY22. EBITDA margin was at 19.7% as in Q4 FY22 as against 20.1% in Q3 FY22 and 21.9% in Q4 FY21. In dollar terms, Larsen & Toubro Infotech (LTI) registered 3.1% increase in consolidated revenue to $570.4 million in Q4 FY22 over Q3 FY22. Constant currency revenue growth was 3.6% QoQ and 29.0% YoY.
Escorts fell 1.21%. The company announced that its division, Escorts Agri Machinery (EAM), will increase the prices of its tractors from Wednesday, 20 April 2022. There has been a steady rise in commodity prices necessitating a price hike to offset the impact of the continuing inflation. The increase in prices would vary across models and variants, the company further stated.
Tata Steel Long Products tumbled 6.55%. The company reported 82.5% drop in net profit to Rs 59.62 crore in Q4 FY22 from Rs 339.85 crore in Q4 FY21. Net sales during the quarter increased by 16.3% YoY to Rs 1,799.40 crore. Total expenditure increased by 55.9% to Rs 1,635.06 crore in Q4 FY22 over Q4 FY21, due to higher raw material costs (up 68.5% YoY) and higher other expenses (up 28.6% YoY). Profit before tax in Q4 FY22 stood at Rs 85.43 crore, down by 77.7% from Rs 383.17 crore in Q4 FY21. The company wrote back taxes aggregating to Rs 6.42 crore during the period under review.
Mastek slipped 0.21%. The company reported 5.7% rise in net profit to Rs 88.2 crore on a 5.4% increase in revenue from operations to Rs 581.5 crore in Q4 FY22 over Q3 FY22. Total EBITDA improved by 13.7% to Rs 138.6 crore in Q4 FY22 from Rs 122 crore in Q3 FY22. Total EBITDA margin in the fourth quarter was 23.1% as compared with 21.9% recorded in the same period last year. In dollar terms, the company's revenue was $77.2 million (CC growth of 5.3% QoQ). The company added 49 new clients in Q4FY22. Total active clients during Q4FY22 was 450 as compared to 421 in Q3FY22.
Alembic Pharmaceuticals rose 1.60%. The drug maker received tentative approval from the US Food & Drug Administration (USFDA) for ivabradine tablets. Ivabradine Tablets are indicated to reduce the risk of worsening heart failure in adult patients with stable, symptomatic chronic heart failure with left ventricular ejection fraction.
HDFC advanced 2.25%. The housing financer said it will sell 10% stake in HDFC Capital Advisors (HCAL) to an affiliate of the Abu Dhabi Investment Authority (ADIA) for around Rs 184 crore. Housing Development Finance Corporation (HDFC) will sell 2,35,019 equity shares, or 10% equity, or HCAL at Rs 7,841.49 per equity share. India's largest private mortgage lender will continue to hold the balance 90% stake in HCAL post the stake sale that values the private equity real estate firm at over Rs 1,840 crore. The sovereign wealth fund owned by the Emirate of Abu Dhabi is also the primary investor in the alternative investment funds managed by HCAL.
PI Industries lost 0.74%. The company said that the company and Polymath Holding mutually decided not to pursue the intended joint ventures and record termination of the joint venture agreements. Earlier in October 2021, PI Industries announced execution of two joint venture agreements with Polymath Holding. The first joint venture was executed to undertake the business of manufacturing and selling the products for bio chemistry. Meanwhile, the second was formed to undertake the business of manufacturing and selling the bio chemical enabled pharmaceutical intermediates.
Global Markets:
European stocks advanced across the board on Wednesday, as investors monitor developments in Ukraine and assess the IMF's latest global economic forecasts.
The Russia-Ukraine conflict has entered a second phase in which fierce fighting has begun in the east of the country. Ukraine said on Monday that Russia's offensive in the eastern Donbas region had begun, with a top official describing it as the second phase of the war. The eastern city of Kreminna fell to Russian forces on Tuesday, its regional governor said, marking the first city to be captured in this phase of the war.
On Tuesday, the IMF cut its global growth projections for 2022 and 2023, saying the economic impact from Russia's invasion of Ukraine will propagate far and wide.
Meanwhile, Asian stocks closed mixed on Wednesday as China defied expectations by keeping its benchmark lending rate unchanged. China on Wednesday kept its one-year loan prime rate unchanged at 3.7%, while also holding steady on the five-year LPR at 4.6%.
Crypto Market:
Among the popular crypto currencies, Doge Coin (Doge) (up 3.51%), Ethereum (ETH) (up 1.90%), Bitcoin (BTC) (up 1.74%) and Binance Coin (BNB) (up 0.92%) advanced.
However, Tether (USDT) (down 0.40%) declined.
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