Market closes higher, IDFC First Bank’s loan advances at the end of Q4FY22 grow 12.8% YoY

Trendlyne Analysis

Nifty 50 extended its gains throughout the day to end above 18,000 for the first time in two and a half months. The Indian Volatility index, India VIX falls for an eighth consecutive trading session. Most Asian indices trade higher but US treasury bonds fall with the possibility of the Fed taking a fast-track approach to raise interest rates. The two-year treasury yield exceeded the 30-year treasury yield for the first time since 2007 last week. Analysts believe that this bond yield inversion indicates that a recession could be in the cards. Most European indices trade flat as some European Union governments mull a new set of sanctions on Russia after allegations of war crimes emerged.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. All sectoral indices closed higher than Friday’s levels. Nifty IT closes higher, taking cues from the tech-heavy NASDAQ 100 futures, which is also trading higher.

Nifty 50 closed at 18,053.40 (383.0, 2.2%), BSE Sensex closed at 60,611.74 (1,335.1, 2.3%) while the broader Nifty 500 closed at 15,384.20 (296.9, 2.0%)

Market breadth is ticking up strongly. Of the 1,908 stocks traded today, 1,523 were on the uptrend, and 351 went down.

Tata Teleservices (Maharashtra), Cholamandalam Financial Holdings, Grindwell Norton, and Tube Investments of India are trading with higher volumes as compared to Friday.
Ashika Research initiates coverage on Aditya Birla Fashion and Retail with a ‘Buy’ rating and target price of Rs 350 indicating an upside of 16%. The brokerage is bullish for the company on the back of its various acquisitions and plans to create a D2C (Direct-to-Consumer) platform. The brokerage expects the company’s EBITDA to grow 53.6% YoY in FY23 over FY22.
PB Fintech is rising after Morgan Stanley upgrades its rating on the stock to 'Overweight'. The brokerage changes its stance on the stock as in its view the recent price correction makes the stock attractive. However, it is still cautious about the insurance sector due to the risk of lower growth and higher capital costs.
Hariom Pipes' Rs 130.1-crore IPO gets bids for 3.4X of the available 85 lakh shares on offer on the fourth day of bidding. Retail investors put in bids for 7.2X of the available 29.75 lakh shares. The offer comprises entirely of a fresh issue of Rs 130.1 crore.
IDFC First Bank’s loan advances at the end of Q4FY22 grow 12.8% YoY to Rs 1.32 lakh crore with retail and commercial loans rising 26.4% YoY. Retail loan is up as home loan segment rises 52.1% YoY. CASA deposits rise 12% YoY to Rs 51,407 crore.
Edelweiss maintains a ‘BUY’ rating on Cyient with a target price of Rs 1,030, indicating an upside of 11%. The brokerage remains positive about the company on the back of its expertise in areas of mapping and designing across diversified segments and in a variety of end-user IT environments. The brokerage expects the company’s revenue to grow at a 12.7% CAGR over FY22-FY24.
Bajaj Auto's March total wholesales fall 20% YoY to 2,97,188 units. Two-wheeler wholesales fall 22% YoY to 2,56,324 units but three-wheeler wholesales rise 4% YoY to 40,864 units. For FY22, the company's total wholesales rise 8% YoY to 43,08,433 units including a 22% YoY rise in exports to 25,06,626.
Housing Development Finance Corporation is trading with more than seven times its weekly average trading volume. Mazagon Dock Shipbuilders, Godrej Agrovet, HDFC Bank, and HDFC Life Insurance Company are trading at more than four times their weekly average trading volumes.
Indraprastha Gas increases the prices of compressed natural gas by Rs 0.80 per kg and piped natural gas by Rs 5.85 per standard cubic metre for Delhi with effect from April 1, 2022. This is the fourth price hike after the company hiked gas prices back in October 2021, January 2022 and March 2022.
HDFC Bank’s loan advances at the end of Q4FY22 grow 21% YoY to Rs 13.7 lakh crore with corporate loans growing 17.5% and commercial & rural banking loans rising 31% YoY. Deposits grow 16.8% YoY to Rs 15.5 lakh crore, with retail deposits rising 18.5% YoY and CASA deposits by 22% YoY to Rs 7.5 lakh crore.
NMDC is rising as its iron ore production rises 23% YoY to 42.15 million tonnes (MT) in FY22. NMDC also reports its highest ever production and sales numbers in the month of March. The iron ore production in March rises 9% YoY to 4.98 MT while the sales increased by 3% to 4.21 MT.
Adani Ports & Special Economic Zone (APSEZ) cargo volumes rise 12% YoY in March 2022 to 29.16 million metric tonnes. In FY22, APSEZ’s total cargo volumes rise 26% YoY to 312.39 million metric tonnes.
JSW Energy is rising as its wholly-owned subsidiary, JSW Neo Energy enters into a memorandum of understanding (MoU) with the government of Chhattisgarh to set up a 1,000 MW capacity hydro pumped storage project (PSP). PSP is a well-established technology that is mainly used to solve intermittent power supply issues through renewable energies.
HDFC Bank and HDFC's boards approve the merger scheme of both companies. It will be a two-step process with HDFC Investments and HDFC Holdings first merging with HDFC. Then, HDFC will merge with HDFC Bank. The share exchange ratio proposed is 42 equity shares of HDFC Bank for 25 fully paid-up equity shares of HDFC.

Riding High:

Largecap and midcap gainers today include HDFC Bank Ltd. (1,656.80, 10.01%), Housing Development Finance Corporation Ltd. (2,680.05, 9.29%) and Adani Green Energy Ltd. (2,110.45, 8.50%).

Downers:

Largecap and midcap losers today include GlaxoSmithKline Pharmaceuticals Ltd. (1,625.75, -1.96%), Kansai Nerolac Paints Ltd. (462.20, -1.62%) and ACC Ltd. (2,119.45, -1.47%).

Movers and Shakers

18 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Godrej Agrovet Ltd. (545.90, 18.93%), PTC India Ltd. (95.00, 10.27%) and HDFC Bank Ltd. (1,656.80, 10.01%).

Mazagon Dock Shipbuilders Ltd. (271.55, 7.99%) was trading at 11.7 times of weekly average. Housing Development Finance Corporation Ltd. (2,680.05, 9.29%) and J B Chemicals & Pharmaceuticals Ltd. (1,600.85, 2.83%) were trading with volumes 9.5 and 5.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

20 stocks made 52-week highs,

Stocks touching their year highs included - Adani Power Ltd. (211.95, 4.18%), Bajaj Holdings & Investment Ltd. (5,828.45, 7.96%) and Cummins India Ltd. (1,128.25, -0.74%).

29 stocks climbed above their 200 day SMA including HDFC Bank Ltd. (1,656.80, 10.01%) and Housing Development Finance Corporation Ltd. (2,680.05, 9.29%). 6 stocks slipped below their 200 SMA including TeamLease Services Ltd. (4,033.80, -5.03%) and Poly Medicure Ltd. (904.00, -3.10%).