Market closes lower, Delhivery’s IPO gets bids for 23% of the total available shares

Trendlyne Analysis

Nifty 50 extended its four-day losing streak and closed sharply below 16,000. The Indian volatility index, India VIX increased by 6.8% on a volatile day of trade. Asian indices closed lower after the US inflation print topped expectations at 8.3% but moderated from previous month’s high. US indices closed sharply lower on Wednesday as a high inflation level could lead to aggressive monetary tightening by the Federal Reserve. The tech-focused NASDAQ index lost 7.5% this week while the S&P 500 fell over 5%. Investors continue to monitor the effect of aggressive monetary policy on global economic growth. Crude oil prices moderate after rising sharply on late Wednesday as Russia sanctioned some European gas companies. European indices follow the global trend and trade sharply lower than Wednesday’s levels. In the last week, foreign investors have sold over Rs 12,545.6 crore worth shares of Indian companies.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty Media closed lower than Wednesday’s levels. Nifty IT closed in the red, tracking the tech-heavy NASDAQ 100, which fell over 3% on Wednesday.

Nifty 50 closed at 15,808.00 (-359.1, -2.2%), BSE Sensex closed at 52,930.31 (-1,158.1, -2.1%) while the broader Nifty 500 closed at 13,465.25 (-306.6, -2.2%)

Market breadth is moving down. Of the 1,872 stocks traded today, 323 were gainers and 1,540 were losers.

Saregama India, Nuvoco Vistas Corporation, KPR Mill, and J B Chemicals & Pharmaceuticals are trading with higher volumes as compared to Wednesday.
Nifty 50 sees a short build-up in its May 26 futures series as its open interest rises 13.8% with put to call ratio at 0.64.
Petronet LNG’s net profit rises 24% YoY to Rs 791 crore and revenue rises 47.4% YoY to Rs 11,241.7 crore on rising sales volumes. However, the operating margin falls by 393 bps YoY to 10.5% due to an increase in the cost of materials consumed by 55.6% YoY to Rs 9,782.8 crore.
Auto stocks like Bharat Forge, Tata Motors, Bosch, and TVS Motor among others are falling in trade. The broader sectoral index Nifty Auto is also trading in red.
Public sector bank stocks like Punjab National Bank, Bank of India, Punjab & Sind Bank, and Canara Bank among others are falling in trade. The broader sectoral index Nifty PSU Bank is also trading in red.
Delhivery’s Rs 5,235-crore IPO gets bids for 23% of the available 6.2 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 40% of the available 1.1 crore shares on offer.
Prudent Corporate Advisory Services’ Rs 538.6-crore IPO gets bids for 122% of the available 60.1 lakh shares on offer on the last day of bidding. The retail investor quota gets bids for 1.3X of the available 29.5 lakh shares on offer. The issue is entirely an offer for sale of Rs 538.6 crore.
ICICI Securities maintains a ‘Buy’ rating on Hindalco Industries with a target price of Rs 700, implying an upside of 65.4%. The brokerage believes the company is well placed to benefit from the improving demand for cans and specialty products in North America. The brokerage expects progressively higher contract prices across product segments to improve the company's margins in the medium term.
Venus Pipes and Tubes’ Rs 165.4-crore IPO gets bids for 4.2X of the available 35.5 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 7.5X of the available 17.7 lakh shares on offer.
Metal stocks like Tata Steel, APL Apollo Tubes, JSW Steel and Jindal Steel & Power among others are falling in trade. The broader sectoral index Nifty Metal is also trading in red.
Relaxo Footwears is trading with more than seven times its weekly average trading volume. KRBL, Kalyan Jewellers India, Punjab National Bank, and Aptus Value Housing Finance India are trading at more than two times their weekly average trading volumes.
One97 Communications (Paytm) and Aditya Birla Sun Life AMC touch an all-time low of Rs 517.2 and 483.2 respectively. One97 Communications (Paytm) is falling for three consecutive sessions while Aditya Birla Sun Life AMC is falling for two consecutive sessions.
Indian rupee falls to an all-time low of Rs 77.59 against the US dollar as high inflation print in the US strengthens prospect of aggressive rate hikes by the Federal Reserve. In addition, foreign investors sell Rs 12,545.6 crore worth of Indian shares in the last week.
ICICI Securities upgrades its rating on Zensar Technologies from ‘Hold’ to ‘Buy’ with a target price of Rs 294, indicating an upside of 17.8%. The brokerage has a positive outlook on the company as its gross margin increased by 50 bps QoQ to 30.1% due to improved utilization and volume mix. ICICI Sec expects the company’s revenue to grow at an 18.5% CAGR over FY22-24.
Punjab National Bank is falling as Q4FY22 profit falls 51.7% YoY to Rs 338.3 crore and revenue falls 6.3% YoY to Rs 21,350.6 crore. In FY22, profit rises 50.7% to Rs 3,860.7 crore.
Mangalore Refinery and Petrochemicals surges as its Q4FY22 net profit rises 11X YoY to Rs 3,008.4 crore due to rising sales volumes, and a deferred tax credit. Revenue rises 35.7% YoY to Rs 28,250.5 crore and EBITDA rises 3X YoY to Rs 2,937 crore.
Relaxo Footwears is falling as its Q4FY22 net profit falls 38.5% YoY to Rs 62.9 crore. Revenues decrease by 6.7% to Rs 704.1 crore. Operating profit margin falls by 5.9 percentage points YoY in Q4FY22 to 15.9% due to high raw material costs. Net profit falls 20.2% YoY in FY22 to Rs 233 crore but revenues rise 12.4% YoY to Rs 2,677 crore.
Kennametal India is falling despite a 22.2% YoY increase in Q4FY22 to Rs 26.9 crore. Revenues rise 7.2% YoY to Rs 247.8 crore. Revenue from hard metal products rises 6.7% YoY to Rs 209 crore while revenues from machining solutions rise 14.3% YoY to Rs 36.6 crore.
Coforge’s Q4FY22 net profit rises 13% QoQ to Rs 207.7 crore and revenue rises 6.3% QoQ to Rs 1,766.1 crore led by a robust growth of 21.4% QoQ in order intake. The maximum revenue growth came from Europe, Middle East and Africa segment at 24.2% QoQ. EBITDA margin rises by 68bps QoQ to 18.9% and the attrition rate rises by 140 bps QoQ to 17.7%.
JMC Projects (India) secures new orders worth Rs 2,348 crore. It includes water supply projects worth Rs 2,193 crore and building and factory projects worth Rs 155 crore. Kalpataru Power Transmissions, the holding company of JMC, receives new orders worth Rs 4,474 crore on a consolidated basis.
NCC’s Q4FY22 profit jumps 2.1 times YoY to Rs 242.2 crore mainly due to an exceptional item gain of Rs 172 crore that includes profit on the sale of one of its subsidiaries. Revenue rises 22.8% YoY to Rs 3,491.8 crore in Q4FY22. Net profit rises 79.8% YoY in FY22 to Rs 482.4 crore and revenues rise 39% to Rs 11,208.7 crore in FY22.
Birla Corporation’s Q4FY22 net profit falls 55.4% YoY to Rs 111 crore because of a one-off credit adjustment of Rs 124.9 crore in income tax expense in FY21. The management also believes that high fuel costs cut down profits. Fuel costs rise 27.8% YoY to Rs 450.1 crore. Revenue is up 6.2% YoY to Rs 2,264.2 crore. Revenue from the cement segment increases 6.2% YoY to Rs 2,150 crore and the jute segment rises 5.9% to Rs 114.2 crore.

Riding High:

Largecap and midcap gainers today include Gujarat Gas Ltd. (566.95, 5.50%), Ambuja Cements Ltd. (373.55, 4.04%) and NHPC Ltd. (31.30, 2.29%).

Downers:

Largecap and midcap losers today include Punjab National Bank (28.60, -13.60%), Adani Green Energy Ltd. (2,436.80, -7.98%) and Bank of India (41.00, -6.50%).

Movers and Shakers

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

Top high volume gainers on BSE included KRBL Ltd. (235.05, 15.59%), Avanti Feeds Ltd. (456.35, 13.22%) and Johnson Controls-Hitachi Air Conditioning India Ltd. (1,792.20, 3.41%).

Top high volume losers on BSE were Punjab National Bank (28.60, -13.60%), Punjab & Sind Bank (14.15, -5.98%) and Emami Ltd. (450.75, -4.93%).

Relaxo Footwears Ltd. (1,018.75, -1.04%) was trading at 10.6 times of weekly average. TTK Prestige Ltd. (771.25, -1.01%) and Kalyan Jewellers India Ltd. (61.85, 0.65%) were trading with volumes 7.6 and 6.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

93 stocks tanked below their 52-week lows.

Stocks making new 52 weeks lows included - Akzo Nobel India Ltd. (1,758.55, -1.52%) and Amara Raja Batteries Ltd. (500.10, -1.99%).

5 stocks climbed above their 200 day SMA including DCM Shriram Ltd. (1,051.15, 5.21%) and Triveni Turbine Ltd. (179.15, 3.95%). 33 stocks slipped below their 200 SMA including Elgi Equipments Ltd. (259.55, -6.77%) and Adani Ports & Special Economic Zone Ltd. (713.30, -6.13%).