Market closes lower, Delhivery’s IPO gets bids for 5% of the total available shares

Trendlyne Analysis

Nifty 50 closed in the red with the Indian volatility index rising over 22.5%. Asian stocks closed mixed, tracking the US indices. The Nasdaq 100 and S&P 500 closed in the green whereas Dow Jones ended the day in the red. Investors remain indecisive as they continue to assess the impact of aggressive monetary policies on economic growth. Crude oil falls more than 8% this week as the Covid-19 lockdown in Shanghai reduced its demand. European indices trade in the green ahead of the US inflation print release later today. In the last week, foreign investors have sold over Rs 11,936 crore worth of shares of Indian companies.

Nifty Smallcap 100 and Nifty Midcap 100 close in the red, following the benchmark index. Nifty FMCG and Nifty Media close lower than Tuesday’s levels. Nifty IT closed in the red despite the tech-focused NASDAQ 100 closing in the green on Tuesday.

Gloom in markets in today's trading. Nifty 50 closed at 16,167.10 (-73.0, -0.5%), BSE Sensex closed at 54,088.39 (-276.5, -0.5%) while the broader Nifty 500 closed at 13,771.80 (-84.2, -0.6%)

Market breadth is overwhelmingly negative. Of the 1,870 stocks traded today, 331 were on the uptrend, and 1,522 went down.

Krishna Institute of Medical Sciences, Endurance Technologies, EPL, and Nuvoco Vistas Corporation are trading with higher volumes as compared to Tuesday.
The Ramco Cements sees a short build-up in its May 26 futures series as its open interest rises 18.5% with put to call ratio at 0.28
Delhivery’s Rs 5,235-crore IPO gets bids for 21% of the available 6.2 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 30% of the available 1.1 crore shares on offer. The public issue comprises of a fresh issue of equity shares of Rs 4,000 crore and an offer for sale of up to Rs 1,235 crore.
Venus Pipes & Tubes’ Rs 165.4-crore IPO gets bids for 2.4X of the available 35.5 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 4.1X of the available 17.7 lakh shares on offer. The offer comprises entirely of a fresh issue of Rs 165.4 crore.
Prudent Corporate Advisory Services’ Rs 538.6-crore IPO gets bids for 57% of the available 60.1 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 105% of the available 29.5 lakh shares on offer.
Public sector bank stocks like Indian Bank, Bank of Maharashtra, Bank of India, and Union Bank of India among others are falling in trade. The broader sectoral index Nifty PSU Bank is also trading in red.
Max Financial Services surges as its Q4FY22 net profit rises 88.9% YoY to Rs 117.7 crore as expenses of life insurance operations fall 8.9% YoY to Rs 8,793.1 crore. Revenue falls by 8.2% YoY to Rs 8,962.3 crore on lower investment income. Operating margin rises by 109 bps YoY to 1.79%.
Alembic Pharmaceuticals receives US Food & Drug Administration (USFDA) approval for its abbreviated new drug application, Arformoterol Tartrate inhalation solution. This drug is therapeutically equivalent to Sunovion Pharma’s Brovana inhalation solution, which has a US market size of $ 251 million.
Media stocks like Nazara Technologies, Network 18 Media & Investments, TV18 Broadcast, and Dish TV India among others are falling in trade. The broader sectoral index Nifty Media is also trading in red.
Gujarat Gas is trading with more than seven times its weekly average trading volume. Mahanagar Gas, Kansai Nerolac Paints, Nuvoco Vistas Corporation, and Orient Electric are trading at more than four times their weekly average trading volumes.
Neuland Laboratories’ Q4FY22 net profit rises 26% YoY to Rs 21.8 crore mainly due to deferred tax credit and changes in inventory of finished goods. Revenue decreases by 1.1% YoY to Rs 256.5 crore due to a volume drop in its generics business.
Kalyan Jewellers India's Q4FY22 profit falls 2.7% YoY to Rs 72 crore as revenue falls 6.5% YoY to Rs 2,857 crore. In FY22, the company makes a profit of Rs 224 crore against loss of Rs 6.1 crore in FY21.
Mahanagar Gas’ Q4FY22 net profit falls 38.1% YoY to Rs 131.8 crore on the back of a sharp rise in the cost of natural gas and excise duty by 2.75X YoY and 51.9% YoY, respectively. Operating margin falls by 22.2 percentage points YoY to 18.1%. However, revenue rises 51% YoY to Rs 1,210.3 crore.
Torrent Power posts a loss of Rs 488 crore in Q4FY22 against a profit of Rs 396.9 crore in the same quarter previous year. This is due to an exceptional item loss of Rs 1,300 crore pertaining to intermittent operation of its DGEN mega power project in Gujarat. However, revenue rises 23.3% YoY to Rs 3,840.6 crore in Q4FY22.
Texmaco Rail & Engineering receives an order for 20,067 wagons worth Rs 6,450 approximately. The order is to be executed over a period of thirty-nine months against the recent railway tender for wagons issued by the Indian Railway.
Zensar Technologies’ Q4FY22 net profit rises 42.7% QoQ to Rs 129.9 crore and revenue rises 8.8% QoQ to Rs 1,226.1 crore. The maximum revenue came from the digital and application services segment at Rs 943 crore. EBITDA margin falls by 20 bps to 14.1% due to a 5.6% QoQ rise in employee costs.
Kansai Nerolac Paints hits a 52-week low as its Q4FY22 net profit slumps 80.1% YoY to Rs 24.7 crore. However, the company’s revenue rises 5.3% YoY to Rs 1,536.6 crore. The cost of materials for the company increases 18.5% YoY to Rs 1,155.2 crore as the company continues to face inflationary pressures and volatility in crude prices. The management expects the effect of price hikes to reflect in FY22.
Venus Pipes & Tubes raises Rs 49.6 crore from investors by selling 15.2 lakh equity shares at Rs 326 per share to anchor investors. Investors include Nippon India, Kotak Life Insurance and India SME Investments.
Porinju Veliyath buys a 0.53% stake in McDowell Holdings in Q4FY22 taking his holding to 3% in the company.
Delhivery raises Rs 2,346.7 crore from investors by selling 4.8 crore equity shares at Rs 487 per share to 64 anchor investors. Investors include Tiger Global, Bay Capital, Steadview, Fidelity, GIC, Government Pension Fund Global, HDFC, State Bank of India, ICICI Prudential, Nippon, among others.
Gujarat Gas’ Q4FY22 net profit rises 26.6% YoY to Rs 444.4 crore and revenue rises 38.9% YoY to Rs 4,791 crore driven by the addition of new domestic and industrial customers. EBITDA rises 24.8% YoY to Rs 715.1 crore.
Cipla’s Q4FY22 net profit declines 12.4% YoY to Rs 362.1 crore due to a rise in Covid-19 inventory, employee costs, and other expenses. However, revenue rises 14.1% YoY to Rs 5,324.4 crore on the back of the company’s India business growing 15% YoY to Rs 2,183 crore. EBITDA margin falls by 279 bps YoY to 14.5%.
Vodafone Idea’s Q4FY22 losses narrow down by 9.1% QoQ to Rs 6,563 crore. Revenue from operations rise 5.4% QoQ to Rs 10,239.5 crore with income from services increasing 5.3% to Rs 10,228.9 crore. Its average revenue per user (APRU) increases 7.5% QoQ to Rs 124.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (2,648.05, 6.49%), Gujarat Gas Ltd. (537.40, 5.99%) and SRF Ltd. (2,234.25, 5.73%).

Downers:

Largecap and midcap losers today include Ruchi Soya Industries Ltd. (944.95, -9.57%), Adani Transmission Ltd. (2,296.00, -7.51%) and JSW Energy Ltd. (258.50, -7.43%).

Volume Rockets

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

Top high volume gainers on BSE included Balaji Amines Ltd. (3,042.70, 6.83%), Prism Johnson Ltd. (111.30, 6.61%) and Gujarat Gas Ltd. (537.40, 5.99%).

Top high volume losers on BSE were Indiabulls Housing Finance Ltd. (111.15, -20.52%), Dishman Carbogen Amcis Ltd. (119.85, -19.89%) and Welspun India Ltd. (63.70, -17.59%).

ZF Commercial Vehicle Control Systems India Ltd. (7,500.95, -2.03%) was trading at 16.2 times of weekly average. Mahanagar Gas Ltd. (764.60, 2.33%) and Kansai Nerolac Paints Ltd. (411.80, -4.48%) were trading with volumes 8.1 and 6.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

84 stocks hit their 52-week lows.

Stocks making new 52 weeks lows included - 3M India Ltd. (17,778.60, -1.81%) and Ajanta Pharma Ltd. (1,684.70, 1.60%).

8 stocks climbed above their 200 day SMA including SRF Ltd. (2,234.25, 5.73%) and Navin Fluorine International Ltd. (3,946.65, 4.53%). 23 stocks slipped below their 200 SMA including Ruchi Soya Industries Ltd. (944.95, -9.57%) and TCNS Clothing Co. Ltd. (709.90, -6.29%).