The domestic equity benchmarks tumbled on Thursday, amid weak global cues. Continuous selling by foreign investors coupled with mounting fears of an economic slowdown dented investors sentiment. All the sectoral indices in the NSE ended in the red. IT, metal and media stocks slumped. The Nifty ended a tad above 15,800, coming off the day's high of 15,984.75 hit in early trade. Trading was volatile due to expiry of weekly index options on the NSE.
The barometer index, the S&P BSE Sensex, tumbled 1,416.30 points or 2.61% at 52,792.23. The Nifty 50 index lost 430.90 points or 2.65% at 15,809.40.
The broader market dropped. The S&P BSE Mid-Cap index slumped 2.66% while the S&P BSE Small-Cap index dropped 2.29%.
Sellers outnumbered buyers. On the BSE, 845 shares rose and 2,482 shares fell. A total of 120 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 10.14% to 24.56.
Numbers to Track:
The yield on India's 10-year benchmark federal paper fell to 7.323% compared with 7.355% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 77.74, compared with its close of 77.62 during the previous trading session.
MCX Gold futures for (3 June 2022) settlement rose 0.35% to Rs 50,395 per 10 gram.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.35% to 103.45.
In the commodities market, Brent crude for (June 2022) settlement fell $1.29 or 1.18% at $ 107.82 a barrel.
Global Markets:
In the US, Dow Jones index futures were down 319 points, indicating a weak opening in the US stocks today.
European shares fell across the board while while most Asian shares ended in the red on Thursday. Rising inflation, the conflict in Ukraine, prolonged supply chain snarls, pandemic-related lockdowns in China and prospects of aggressive policy tightening by central banks have weighed on the markets recently.
In the U.K., data showed inflation soared to a 40-year high of 9% in April as food and energy prices spiraled.
Wall Street ended sharply lower on Wednesday, with US retail giant Target losing around a quarter of its stock market value and highlighting worries about the US economy after the retailer became the latest victim of surging prices.
Shares of US retail giant Target plunged 25% as higher costs and disrupted logistics hit its profit margins. Walmart, the world's largest bricks-and-mortar retailer, cut its earnings guidance on challenging soaring inflationary trends.
Buzzing Index:
The Nifty IT index slumped 5.74% to 28,352.15. The index has lost 6.18% in two trading sessions.
Mphasis (down 7.18%), L&T Technology Services (down 6.98%), Coforge (down 6.84%), Mindtree (down 5.98%), HCL Technologies (down 5.8%), Wipro (down 5.78%), Larsen & Toubro Infotech (down 5.24%), Infosys (down 5.18%), TCS (down 5.13%) and Tech Mahindra (down 5.04%) slumped.
Earnings Impact:
ITC jumped 3.43% after the company's standalone net profit rose 11.81% to Rs 4,190.96 crore on 16.49% increase in net revenue to Rs 15,331.48 crore in Q4 March 2022 over Q4 March 2021. EBITDA improved by 16.8% to Rs 5,224 crore in Q4 FY22 from Rs 4,473 crore in Q4 FY21. Profit before tax in the fourth quarter stood at Rs 5,442 crore, up by 12.1% from Rs 4,854 crore reported in the same period last year. The board recommended a final dividend of Rs 6.25 per share for the financial year ending 31st March 2022.
Dr Reddy's Laboratories rose 0.82% after the drug maker's consolidated net profit tumbled 76% to Rs 87.50 crore in 15% increase in revenues to Rs 5436.80 crore in Q4 March 2021 over Q4 December 2021. On a consolidated basis, Dr Reddy's Laboratories' profit before tax tumbled 60% year-on-year to Rs 248.30 crore in Q4 March 2021. EBITDA for Q4 FY22 is at 1300 crore. The EBITDA margin stood 23.9% in Q4 March 2021 higher than 23.8% in Q4 December 2021 and 23.8% in Q3 December 2021.
Lupin slumped 7.11% after the company reported a consolidated net loss of Rs 518 crore in Q4 FY22 as against a net profit of Rs 460.4 crore in Q4 FY21. Income from operations rose by 2.8% YoY to Rs 3,864.5 crore during the quarter. While the total revenue from formulations was Rs 3,644.2 crore (up 4% YoY), the revenue from API was Rs 220.3 crore (down 13.8% YoY) in Q4 FY22.
Manappuram Finance slumped 9.61% after the company reported a 44.2% fall in consolidated net profit to Rs 261.10 crore on an 8.5% decline in total income to Rs 1,491.31 crore in Q4 FY22 over Q4 FY21. The NBFC's revenue declined after its flagship Gold loans business income fell 17.6% to Rs 1109.18 in Q4 FY22 from Rs 1346.48 crore posted in Q4 FY21. Meanwhile, revenues from Microfinance segment grew 34.6% to Rs 382.13 crore in Q4 FY22 over Q4 FY21.
Pidilite Industries fell 2.08% after the company reported a 17.7% fall in consolidated net profit to Rs 254.35 crore in Q4 FY22 compared with the net profit of Rs 308.89 crore in Q4 FY21. Net sales stood at Rs 2,507.10 crore for the quarter ended 31 March 2022 as against Rs 2,235.52 crore during the same period in the previous year, registering a growth of 12.1%.
Ucal Fuel Systems surged 8% after the company's consolidated net profit surged 276.04% to Rs 12.71 crore on 13.01% decline in net sales to Rs 170.76 crore in Q4 March 2022 over Q4 March 2021. On a consolidated basis, profit before tax (PBT) surged 213.64% year-on-year (YoY) to Rs 12.42 crore in Q4 March 2022
JK Lakshmi Cement (JKLC) soared 7.20% after the company's net profit rose 25.80% to Rs 171.73 crore on 13.29% rise in net sales to Rs 1497.64 crore in Q4 March 2022 over Q4 March 2021. Profit before tax (PBT) rose 6.11% year-on-year to Rs 197.93 crore in Q4 March 2022. EBIDTA before other income increased 3.12% YoY to Rs 276.23 crore.
Sandur Manganese & Iron Ores jumped 4.70% after the company's net profit surged to Rs 235.52 crore in Q4 FY22 from Rs 70.91 crore in Q4 FY21. Net sales during the quarter doubled to Rs 716.24 crore from Rs 357.68 crore recorded in the same period last year.
Granules India tumbled 6.65% after the drug maker reported a 13% fall in consolidated net profit to Rs 111 crore in Q4 FY22 from Rs 128 crore posted in Q4 FY21. Consolidated income from operations grew by 29% year on year to Rs 1,030 crore in Q4 FY22 as compared to Rs 799 crore posted in Q4 FY21, across all geographies and segments.
IPO Updates:
Paradeep Phosphates (PPL): The issue received bids for 46,96,87,750 shares as against 26,86,76,858 shares on offer, according to stock exchange data at 16:45 IST on Thursday (19 May 2022). The issue was subscribed 1.75 times.
The issue opened for bidding on Tuesday (17 May 2022) and it will close on Thursday (19 May 2022). The price band of the IPO is fixed at Rs 39-42 per share. An investor can bid for a minimum of 350 equity shares and in multiples thereof.
ETHOS: The issue received bids for 17,47,889 shares as against 39,79,957 shares on offer, according to stock exchange data at 16:45 IST on Thursday (19 May 2022). The issue was subscribed 44%.
The issue opened for bidding on Wednesday (18 May 2022) and it will close on Friday (20 May 2022). The price band of the IPO is fixed at Rs 836-878 per share. An investor can bid for a minimum of 17 equity shares and in multiples thereof.
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