Sensex sinks 1,172 pts, Nifty below 17,200; Infosys tanks 7%, HDFC Bank 5%

CLOSING BELL: Dismal March quarter earnings by HDFC Bank & Infosys, coupled with fears of aggressive rate hikes amid rising inflation, soaring bond yields, & resurgence in Covid-19 cases hit sentiment

3:15 PM

L&T Infotech and Mindtree to merge to create $22-bn firm: Report

Larsen & Toubro Ltd. is weighing a merger between two of its publicly traded software firms, according to people familiar with the matter, as the Indian conglomerate seeks scale to compete with global digital giants. READ MORE HERE

3:09 PM

Cement stocks edge lower; India Cements declines over 3%

3:04 PM

Gold prices hit 1-month high as Ukraine crisis dulls risk appetite

Gold prices rose on Monday to their highest since mid-March, as the uncertainty surrounding the Russia-Ukraine conflict dampened risk sentiment and drove investors towards the safety of bullion. READ MORE HERE

3:01 PM

Sarda Energy gains over 3.5%; to consider buyback on April 23

 

2:52 PM

SECTOR OUTLOOK :: Why IT sector may underperform in near-term

Nifty IT is underperforming Nifty 50 due to supply-side pressures, the possibility of reduction in demand due to macro headwinds in the western nations, and overstretched valuations.

Indian IT sector is trading at 28x 1-year forward P/E vs. past 10-year P/E of 18x, thus leaving a little room for potential upside in the short to medium term.

Both TCS and Infosys results had a common theme, attrition remains at an all-time high, competitive intensity is increasing and companies are losing their pricing power, wage hikes, a gradual return to the office, and an increase in discretionary spending will put pressure on EBIT margins.

There is a consensus among IT companies that the clients are willing to spend for digitization regardless of their financial conditions and industry position. But this phenomenon might change due to inflationary headwinds and weak global economic cues, which will affect the client’s ability to pay, thus reducing their discretionary spending towards digitization.

Another point to note is that the global interest rates are rising, therefore money is moving from growth stocks to value stocks.

In short, we believe that the IT sector will underperform in the short to medium term.

Views by: Santosh Meena, Head of Research, Swastika Investmart Ltd.

2:51 PM

Tech stocks drag Indian shares lower; Infosys hits 8-month low

Indian shares touched three-week lows on Monday, hammered by losses in IT stocks after Infosys crashed 9% on missing March-quarter profit estimates, while inflation concerns globally also weighed on investors' sentiment. READ MORE HERE

2:40 PM

MARKET COMMENT :: Naveen Kulkarni, Chief Investment Officer, Axis Securities

We expect FY23 to witness continued volatility in equity markets, especially in the first half of the year with rising interest rates globally and high inflation, which is expected to persist. In this scenario, we expect money to move from long-duration debt funds to equity funds in the second half of the year, which should bode well for equities. We continue to remain positive on sectors like Metals, Hospitals, Hospitality, Oil Refining, Capital Goods, etc. Some underperforming sectors might include Discretionary Consumption, IT, NBFCs, etc

2:34 PM

Ashok Leyland to enter used commercial vehicles business

The phygital platform, as part of the partnership, will facilitate exchange and proper disposal and purchase of old commercial vehicles. READ MORE HERE

2:24 PM

Paint stocks edge lower as Brent crude hovers above $111 a barrel

2:16 PM

Mahindra Lifespace slips nearly 3%; co acquires 11.5 acre land parcel in Pune

 

2:14 PM

Sugar stocks turn sweeter despite market fall

2:07 PM

NEWS ALERT: Italy pushes for EU price cap on Russian gas

2:05 PM

Investors' wealth tumbles over Rs 3.39 trillion as markets plunge

Investors' wealth tumbled over Rs 3.39 lakh crore in morning trade on Monday as equity markets went into a tailspin, with the Sensex plunging 1,291.93 points. READ MORE HERE

 

1:57 PM

Varun Beverages hits record high on strong demand for soft drinks

Shares of Varun Beverages hit a record high of Rs 1,055, up 4 per cent on the BSE in Monday’s intra-day trade as reports suggested that demand for soft drinks and ice-creams has touched a five-year high, with the early onset of summer and rise in mobility. READ MORE HERE

 

1:52 PM

Markets not fully pricing in possibility of higher inflation: Analysts

India's March wholesale price index-based inflation (WPI) surged to 14.55 per cent on rising edible oil prices and increase in power prices. WPI inflation in February stood at 13.11 per cent. READ MORE HERE