Market closes lower, LIC’s IPO gets bids for 2.5X of the total available shares

Trendlyne Analysis

Nifty 50 closed in the red, with the Indian volatility, India VIX rising above 22%. Asian stocks trade lower, tracking the US indices, which closed in the red on Friday. Market volatility is expected to continue this week as investors remain cautious of prevailing high inflation levels and the impact of rate hikes on the economy. China tightened the lockdown in Shanghai to curb the spread of Covid 19 leading to concerns about slow economic growth. Crude oil falls as investors monitor talks at the European Union on a Russian oil embargo that is expected to tighten global supplies. European indices follow the global trend and trade lower than Friday’s levels.

Nifty Smallcap 100 and Nifty Next 50 closed in the red, following the benchmark index. Nifty Energy and Nifty Auto also closed lower than Friday’s levels. Nifty IT closed flat with the prospect of an increase in profitability through forex gains as the Indian rupee hits a new lifetime low of Rs 77.48 against the US dollar.

Nifty 50 closed at 16,301.85 (-109.4, -0.7%), BSE Sensex closed at 54,470.67 (-364.9, -0.7%) while the broader Nifty 500 closed at 13,991.75 (-154, -1.1%)

Market breadth is overwhelmingly negative. Of the 1,896 stocks traded today, 412 were gainers and 1,444 were losers.

Tube Investments of India, Saregama India, Krishna Institute of Medical Sciences, and Aditya Birla Sun Life AMC are trading with higher volumes as compared to Friday.
Navin Fluorine International sees a short build-up in its May 26 futures series. Its open interest rises sharply by 24.6% with put to call ratio at 0.41
Larsen & Toubro receives order worth Rs 1,000-2,500 crore from the department of water resources, the Government of Jharkhand to execute the Masalia Ranishwar megalift irrigation scheme on a turnkey basis. The scope of the project includes survey, design, and construction of a 158 m long barrage across the Sidheshwari river.
HDFC Securities maintains a ‘Buy’ rating on Cholamandalam Investment and Finance with a target price of Rs 788, indicating an upside of 23.9%. The brokerage is positive about the company’s prospects due to its robust disbursals, high growth of new business, and rising assets under management.
Media stocks like Zee Entertainment Enterprises, Sun TV Network, Network 18 Media & Investments, TV 18 Broadcast, and Saregama India, among others are falling in trade. The broader sectoral index Nifty Media is also trading in the red.
ICICI Bank, Ambuja Cements, Tata Chemicals, and KPIT Technologies, among others, are outperforming the Nifty 50 index over the past week, post Q4FY22 results.
Life Insurance Corporation of India’s Rs 21,008.4-crore IPO gets bids for 2.9X of the available 16.2 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 1.9X of the available 6.9 crore shares on offer.
UPL’s Q4FY22 net profit rises 29.7% YoY to Rs 1,379 crore and revenue rises 24.2% YoY to Rs 15,977 crore on the back of price hikes and a better product mix. EBITDA margin rises by 7.5 percentage points YoY to 35.9% on higher revenue.
Apollo Tricoat Tubes' Q4FY22 net profit falls 10% YoY to Rs 30.8 crore despite its revenues rising 77.5% to Rs 830.5 crore. Sales growth is primarily driven by realizations as volumes fell 2% YoY to 64,746 tonnes. Moreover, higher inputs costs ultimately hit the profitability of the company.
DCB Bank’s Q4FY22 net profit rises 45.5% YoY to Rs 113.4 crore and revenue rises 6.5% YoY to 1,034.7 crore on rising business volumes from the retail banking segment. The retail banking segment rises 10.5% YoY to Rs 879.4 crore. Net interest margin rises 47 bps YoY to 3.9% and net NPA ratio falls by 34 bps YoY to 1.97%.
Aditya Birla Sun Life AMC is trading with more than 12 times its weekly average trading volume. Procter & Gamble Health, Privi Speciality Chemicals, Navin Fluorine International, and Go Fashion (India) are trading at more than two times their weekly average trading volumes.
BOB Capital Markets maintains a ‘Hold’ rating on Blue Star with a target price of Rs 1,200, indicating an upside of 10%. The brokerage remains positive about the company's prospects in its electro-mechanical and commercial air conditioning systems segment. The brokerage expects the company’s revenue to grow at a 15.2% CAGR over FY22-24.
Indian rupee falls to an all-time low of Rs 77.4 against the US dollar. This is because of the continuous dump of domestic stocks by foreign investors. Foreign investors sell Rs 6,400 crore worth of shares in the last week.
SJVN wins a 25-year floating solar power project worth Rs 585 crore based in Madhya Pradesh. The company will generate 218.5 million units of power in the first year and 5,158 million units of power for the entire duration of the project. The company also bags a wind-solar hybrid project worth Rs 195 crore.
Navin Fluorine International’s Q4FY22 net profit rises marginally by 0.5% YoY to Rs 75.2 crore. However, revenue rises 17.1% YoY to Rs 421.3 crore driven by robust growth of 21.4% YoY in the speciality chemicals segment. EBITDA margin falls by 238 bps YoY to 23% due to high input costs and employee costs.
Campus Activewear shares list at a 23% premium to the issue price of Rs 292 on its debut on the bourses after getting bids for 51.2X of the total shares on offer.
Lupin receives US Food & Drug Administration (USFDA) approval for its Lloperidone tablets and Pregabalin capsules. Lloperidone is a generic equivalent of Fanapt tablets, which has a US market size of $162 million. Pregabalin capsule is a generic equivalent of Lyrica capsule that has a US market size of $263 million.
Larsen & Toubro Infotech's Chief Executive Officer and Managing Director Sanjay Jalona resigns from the position due to personal reasons on Friday.
Larsen & Toubro Infotech (LTI) and Mindtree are set to merge, creating India’s sixth-largest IT services company a with combined revenue of Rs 26,000 crore. The merged entity is to be called LTIMindtree. According to the merger terms, shareholders of Mindtree will be issued 73 shares of LTI for every 100 shares held in Mindtree.
Tata Power’s Q4FY22 net profit rises 28% YoY to Rs 503.1 crore which includes a deferred tax credit of Rs 588 crore. The company’s revenue rises 16.8% to Rs 12,219.4 crore on the back of growth in its transmission and distribution businesses. Net profit rises 54.5% YoY in FY22 to Rs 1,741.5 crore and revenues increase by 32% to Rs 43,735.6 crore.
Reliance Industries falls even though its Q4FY22 net profit rises 22.5% YoY to Rs 16,203 crore with increase in revenue by 36.7% YoY to Rs 2.1 lakh crore. Most of the revenue growth came from O2C (oil to chemicals) because of high energy prices and its retail business. The company recommends a dividend of Rs 8 per equity share.

Riding High:

Largecap and midcap gainers today include Indus Towers Ltd. (205.90, 3.52%), Federal Bank Ltd. (93.80, 2.96%) and Oil India Ltd. (236.40, 2.83%).

Downers:

Largecap and midcap losers today include Canara Bank (201.35, -8.21%), Tata Power Company Ltd. (230.00, -6.20%) and Adani Green Energy Ltd. (2,706.40, -5.86%).

Volume Shockers

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

Top high volume gainers on BSE included BASF India Ltd. (2,808.55, 8.40%), NOCIL Ltd. (245.60, 6.41%) and Cholamandalam Financial Holdings Ltd. (613.70, 4.50%).

Top high volume losers on BSE were Hindustan Copper Ltd. (94.40, -9.75%), Bajaj Electricals Ltd. (1,011.15, -7.45%) and Bajaj Consumer Care Ltd. (152.05, -6.03%).

DCB Bank Ltd. (80.90, 3.78%) was trading at 24.5 times of weekly average. Kajaria Ceramics Ltd. (1,010.35, -1.24%) and Procter & Gamble Health Ltd. (4,388.50, 1.44%) were trading with volumes 8.7 and 5.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock hit their 52-week highs, while 42 stocks tanked below their 52-week lows.

Stock touching their year highs included - Power Grid Corporation of India Ltd. (245.15, 2.83%).

Stocks making new 52 weeks lows included - 3M India Ltd. (18,735.75, 1.55%) and Amara Raja Batteries Ltd. (520.70, -1.83%).

4 stocks climbed above their 200 day SMA including Federal Bank Ltd. (93.80, 2.96%) and Krishna Institute of Medical Sciences Ltd. (1,286.70, 2.55%). 39 stocks slipped below their 200 SMA including Canara Bank (201.35, -8.21%) and APL Apollo Tubes Ltd. (893.75, -5.92%).