Sensex Ends Lower, Nifty Near 16,200; Metals Hammered, Banks, Fmcg Gain

RIL, Tata Steel drive Sensex lower 

View Full Image

Higher coal imports likely to increase cost for discoms by 4.5-5% in FY23: ICRA

Consumers should brace to pay more for the electricity they are consuming during the ongoing period of power crisis as increased use of expensive imported coal in generation is expected to elevate the cost of supply by up to 5% in the current fiscal year 2022-23.

Malaysia may cut palm oil export tax amid global supply crisis: Reuters 

Malaysia is considering cutting its export tax on palm oil and plans to slow implementation of its biodiesel mandate to help meet global demand amid an edible oil shortage, its commodities minister told Reuters on Tuesday.

The minister said importing countries have asked Malaysia to reduce its export taxes, and some – like India, Iran and Bangladesh – are proposing barter trade.

Ajanta Pharma board approves issue of bonus shares in the ratio of 1:2

China Car Sales Plunge as Shanghai Lockdown Takes Toll: Bloomberg 

China car sales plunged the most in two years in April as Covid-19 lockdowns in the auto industry hubs of Shanghai and Jilin province smashed production and kept buyers out of showrooms.

Passenger vehicle sales tumbled 35.7% last month from a year ago to 1.06 million units, the biggest decline since March 2020 as the pandemic kicked in and the lowest monthly total since February of that year, China Passenger Car Association data released Tuesday showed.

Asian Paints Q4: Net profit at ₹850.42 crore compared with ₹852.13 crore a year ago

Revenue from sales for the period was at ₹7,889.94 crore, up 20.6% from ₹6,541.94 crore a year ago.

Sri Lanka gives emergency powers to military, police after clashes kill seven: Reuters 

Malaysia end-April palm oil stocks at five-month high as exports plunge

Malaysia’s palm oil stocks at the end of April climbed to a five-month peak on improving production and a deeper-than-expected fall in exports, data from the industry regulator showed on Tuesday. Inventories in the world’s second-largest producer rose 11.48% from the previous month to 1.64 million tonnes, up for the first time in six months, according to the Malaysian Palm Oil Board (MPOB). Crude palm oil production expanded 3.6% from March to 1.46 million tonnes, its highest since November. Palm oil exports declined 17.73% to 1.05 million tonnes, lower than market expectations.

Sony aims to sell 18 million PS5 consoles this year amid China lockdown risk: Reuters 

European Stocks Rise From Two-Month Low as Dip Buyers Return: Bloomberg  

European stocks gained on Tuesday as traders returned to risk assets, encouraged by cheaper valuations following four straight days of steep declines amid fears of a recession.

The Stoxx Europe 600 Index was up 0.8%, after slumping on Monday to its lowest level in two months. Travel and leisure and technology shares were among the biggest gainers, while energy underperformed.

Temperatures are soaring but Voltas unable to find its cool

Voltas Ltd’s shares are down as much as 14% since it announced its March quarter results (Q4FY22) on Thursday after market hours. The company, which derives a good share of revenues by selling room air conditioners (ACs), put up a weak show. This is despite demand for ACs being strong. (Read here)

Sensex performance so far today 

View Full Image

Santoor maestro Pandit Shiv Kumar Sharma passes away at 84

Navine Fluorine – New Products and Customer Addition to Drive Growth; Maintain BUY: Axis Securities 

We maintain our BUY call with a TP of ₹4153/share, valuing the stock at a multiple of ~39x FY24E EPS. Key risks – a) Slower-than-expected ramp-up in commissioning of the Capex projects; b) Volatility in RM prices and Forex; c) delay in input costs pass through.

Nifty recovers in afternoon trade; midcaps, smallcaps  under pressure

View Full Image

Tiger Global hit by $17 billion losses in tech rout- Financial Times 

New York-based Tiger Global has been hit by losses of around $17 billion during this year’s technology stock selloff, marking one of the biggest dollar declines for a hedge fund in history, the Financial times reported on Tuesday.

The firm, one of the world’s biggest hedge funds, has erased around two-thirds of its gains in four months, the newspaper said, citing calculations by LCH Investments.

Market-leading technology and growth stocks have suffered this year as investors worry that rising interest rates will dent their future earnings.

Tiger Global did not respond to a Reuters request for comment outside business hours.

Prudent IPO subscription details: Day 1

View Full Image

Sun Pharma gets 10 observations from US FDA for Halol facility: BSE release 

The US FDA conducted a Good Manufacturing Practices (GMP) inspection of Sun Pharmaceutical Industries Limited’s Halol facility in Gujarat from April 26 to May 9. At the conclusion of the inspection, the US FDA issued a Form-483, with 10 observations. The Company is preparing a response to the observations, which will be submitted to the US FDA within 15 business days. The Company is committed to addressing these observations promptly. The Company remains committed to working closely with the US FDA and continues to enhance its GMP compliance on an ongoing basis.

Oil drops as economic worries, strong dollar weigh

Oil prices dropped more than 1% on Tuesday, extending the previous day’s steep declines as coronavirus lockdowns in top oil importer China, a strong dollar and growing recession risks fed worries about the outlook for global demand.

Brent crude was down $1.19, or 1.1%, at $104.75 a barrel, after slipping to as low as $103.19. U.S. West Texas Intermediate crude fell $1.07, or 1%, to $102.02 a barrel after hitting an intraday low of $100.44.

Result Update – Voltas Ltd: ICICI Securities 

The company’s Q4 performance was hit by lower EMPS revenues and sharp decline in the profitability of UCP segment.

· Voltas reported a muted topline growth of ~1% YoY to ₹2667 crore due to de-growth in EMPS segment. UCP segment grew 10% led by price hikes

· EBITDA margin down 268 bps YoY to 9.8%, led by high raw material costs. Gross margin declined 278 bps YoY. EBIT margin of Unitary cooling products (UCP) dipped 522 bps to 10.6%

· PAT declined ~24% to ₹183 crore tracking lower EBITDA in Q4FY22

Key triggers for future price performance

· Structural demand owing to changing consumer lifestyle (work from home) post pandemic is likely to drive near term demand for RAC

· On a long term basis, we believe, rising income and aspirations of middle class household in India will be a key demand driver for cooling products. AC’s penetration at 7% is lowest among white goods segment

· Higher demand of energy efficient products would help drive premiumisation in the air conditioner industry.

Recommend HOLD: We model Voltas to report revenue, EBITDA and PAT CAGRs of 15.3%, 14% and 24.2%, respectively, over FY22-24E and RoE to move to 12.5% in FY24 from 9.7% in FY22. While we remain positive on the company due to strong brand equity of Voltas and established distribution network, we believe upside is capped at current valuations (45x of FY24E EPS). We assign HOLD rating to the stock with DCF-based target price of Rs1,033 (implied P/E of 44x of FY24E).

Nasdaq Futures Up 1%, Dollar Dips as Mood Steadies: Markets Bloomberg 

U.S. equity futures climbed and stocks pared losses, providing some respite for global markets from concerns about an economic downturn.

An Asia-Pacific equity gauge Tuesday trimmed a drop of about 2% in half, aided by a turnaround in China. S&P 500, Nasdaq 100 and European contracts rose, pointing to steadier sentiment following a Monday rout in U.S. shares.

KEC International – 4QFY22 Update – Order Inflow Peaks; Lower Margin Continues: Reliance Securities 

We maintain our BUY rating on the stock, with a revised 1-year Target Price of Rs521 from Rs569, maintaining the target multiple of 15x FY24E EPS.

Indian rupee better placed than EM peers, despite touching new low

The Indian rupee hit a new low of 77.48 against the US dollar Monday, breaching it’s previous low seen in March, following the escalation of the Russia-Ukraine conflict.

Fears of a slowdown in global growth amid upcoming interest rate hikes by the US Federal Reserve have dampened investors’ sentiment towards emerging market (EM) currencies, including the Indian rupee.

BharatPe initiates action against former founder to claw back restricted shares: PTI 

BharatPe on Tuesday said it has initiated necessary action against a former founder to claw back his restricted shares following a governance review.

In a statement, the firm said it will take all steps to enforce its right under the law.

In January 2022, the board of BharatPe initiated the corporate governance review of the company.

Malaysia palm oil production, exports to rise 30% by end-2022: Reuters 

Malaysia’s production and exports of palm oil are expected to rise 30% by the end of this year, amid increased demand after neighbouring Indonesia banned exports and following the re-entry of plantation workers from abroad, a minister said.

Malaysia, the world’s second-largest palm oil producer after Indonesia, stands to benefit from a global edible oil shortage exacerbated by Jakarta’s export ban last month, but has struggled with a prolonged labour crunch after coronavirus border curbs halted the entry of migrant workers for its plantations.

UPL – Rating: BUY | CMP: Rs778 | TP: Rs1,010: Himanshu Binani – Research Analyst at Prabhudas Lilladher

We expect UPL to clock Revenue/PAT CAGR of 9%/19% over FY22-24E. Maintain ‘BUY’ with a revised TP of ₹1010 (earlier ₹980) based on 14xFY24E EPS.

Indian rupee near record lows at 77.245 against the US dollar

Nifty Metal among worst hit sectoral indices 

View Full Image

JSW Steel April crude steel production at 1.7 mn tn, up 22% YoY

View Full Image

Russia gas flow stop could erase post-COVID recovery across EBRD region – Reuters

An abrupt halt of Russian gas exports could see economies in emerging Europe, central Asia and north Africa slide back to pre-pandemic GDP levels, the European Bank for Reconstruction and Development warned on Tuesday.

Many countries in the EBRD’s region of operation, which covers some 40 economies stretching from Mongolia to Slovenia and Tunisia, depend on Russian gas and a sudden ceasing of supplies would lower output per capita by 2.3% this year and 2% in 2023, according to the lender’s latest report.

Cipla inks pact with Genes2Me to launch COVID-19 RT PCR test kit: BSE release 

Rainbow Children’s Medicare shares list at discount

Rainbow Children had raised ₹1,581 crore through its public issue that consisted of a fresh issue of ₹280 crore and an offer for sale of ₹1,301 crore worth of shares by existing shareholders. 

The stock opened at ₹506, against issue price of ₹542 on the BSE, while the listing price on the NSE was ₹510.

View Full Image

Subscribe to Delhivery IPO: Yes Securities 

We recommend SUBSCRIBE rating from a long term perspective on DELHIVERY Ltd IPO issue given it being:

1) largest and fastest growing 3PL express parcel delivery player

2) having unified infrastructure network

3) proprietary technology stack and capabilities,

4) vast amount of data intelligence and R&D,

5) experienced professional management team and

6)strong relationship with diversified customer base.

We believe Delhivery’s asset light business model and its cutting‐edge engineering and automation capabilities along with its new age technologies will help company leverage its operating efficiencies and improve the profitability in the coming years.

India active COVID-19 cases dip to 19,637: PTI

With 2,288 new coronavirus infections reported in a day, India’s tally of COVID-19 cases rose to 4,31,07,689, while active cases fell to 19,637, according to Union Health Ministry data updated on Tuesday.

The death toll climbed to 5,24,103 with 10 fresh fatalities, the data updated at 8 am stated.

The active cases comprise 0.05% of the total infections, while the national recovery rate was 98.74%, the ministry said.

Bitcoin Drops Below $30,000 for the First Time Since July 2021: Bloomberg 

Domestic fuel prices unchanged for 34 days now 

Rupee surges 20 paise to 77.24 against US dollar in early trade: PTI

Asian Paints top gainer among Sensex stocks in opening deals 

View Full Image

Nifty holds above 16,300 at open 

View Full Image

Sensex rises at open 

View Full Image

Sensex flat in pre-open 

View Full Image

Nifty holds above 16,300 in pre-open 

View Full Image

India’s inflation likely accelerated to an 18-month high in April: Reuters poll

India’s retail inflation likely surged to an 18-month high in April, largely driven by rising fuel and food prices and staying well above the Reserve Bank of India’s upper tolerance limit for a fourth consecutive month, a Reuters poll found.

Food inflation, which accounts for nearly half the consumer price index (CPI) basket, reached a multi-month high in March and is expected to remain elevated due to higher vegetable and cooking oil prices globally.

These factors likely pushed inflation in Asia’s third-largest economy to 7.5% on an annual basis in April, according to a May 5-9 Reuters poll of 45 economists, from 6.95% in March.

If realised, that would be the highest inflation rate since October 2020 and well above the RBI’s upper 6% limit.

Forecasts for the data, due to be released on 12 May, ranged between 7.0% and 7.85%.

Titagarh Wagons set to hit the US market soon in a made-in-India first

Titagarh Wagons is planning a post-pandemic turnaround, involving growing revenue three times over the next three years and targeting new markets in Africa, West Asia, South East Asia, Australia and the US with its made-in-India freight wagons and transit trains.

IPO-bound companies wary as Sebi tightens promoter norms

A recent regulatory move tightening disclosures about promoter groups of market-bound companies has set off concerns among investment banks who fear estranged family members could misuse them and delay share sale.

Oil tumbles on global economic worries, strong dollar

Oil prices tumbled more than 1% on Tuesday, extending the previous day’s steep declines, as coronavirus lockdowns in top oil importer China, a strong dollar and growing recession risks fed worries about the outlook for global demand.

Brent crude fell $1.31, or 1.2%, to $104.63, after slipping to as low as $103.19 a barrel. U.S. West Texas Intermediate crude fell $1.25, or 1.2%, to $101.84 a barrel after hitting an intraday low of $100.44.

On Monday, both benchmarks posted their biggest daily percentage fall since March, dropping by 5-6%.

Stocks to Watch

Shares of RIL, Asian Paints, HCL Tech, JSW Group, NTPC, Adani Ports, among others, could be in focus today. 

Asian Paints, Cipla, Vodafone Idea, Gujarat Gas, Ajanta Pharma, Cera Sanitaryware, Chalet, Electrosteel Castings, Kansai Nerolac Paints, Max Financial Services, Mahanagar Gas, Reliance Capital, Torrent Power are among the companies due to announce quarterly results on 10 May.

Bitcoin trading near 10-month low at around $30,600

For Nifty, 16100-16000 to be crucial supports: Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One

The volatility index has gained traction in the past couple of trading sessions, raising concerns for the participants. Simultaneously, the relentless selling spree in the market has certainly showcased the tightening of the bearish grip. On technical levels, the 78.60% of the Fibonacci retracement placed around the 16190 odd level is expected to be an intermediate cushion to any fall, followed by the psychological mark of 16000. While on the higher end, a decisive closure above the unfilled gap of 16480-16650 could only direct some assurance to the bulls.

Going forward, till the global bourses remain under pressure, our market is likely to remain tentative with huge whipsaw movements. Also, till the upside gap remains unfilled, we would advocate avoiding aggressive bets and advise having a close tab on the mentioned levels with global developments.

Rupee slides to lifetime low, stocks continue fall

The rupee plunged to 77.46 against the dollar on Monday after hitting a record low of 77.52 in intraday trading, as foreign investors continued to pull money from Indian assets as the dollar strengthened after the US Federal Reserve raised interest rates.

LIC IPO shrugs off market jitters, gets subscribed 3 times

India’s largest initial public offering received bids for nearly three times the shares on offer, helping the government raise ₹21,000 crore by selling 3.5% in Life Insurance Corp. of India.

SGX Nifty futures fall 

Nifty futures on the Singapore Exchange were down 106.50 points, or 0.65%, at 16,185 in early deals on Tuesday, indicating a gap-down start for Indian benchmarks. 

On Monday, the benchmark Sensex fell 364.91 points to end the day at 54470.67, and the Nifty was down 109.40 points at 16301.90.

Asian shares slump on investor concern about global growth

Stocks slid and bonds rallied Tuesday as concerns about a darkening economic outlook reverberated around global markets.

An Asia-Pacific equity gauge fell to the lowest since July 2020 amid drops in Japan, China and Hong Kong, where technology shares slumped. S&P 500 and Nasdaq 100 futures wavered after U.S. stocks hit a 13 month-low.

Oil fell toward $100 a barrel on economic concerns and the European Union’s move to soften some proposed sanctions on Russian oil over the Ukraine war.

A dollar gauge is at the highest level since 2020, while China’s economic slowdown amid Covid lockdowns is putting pressure on the yuan.

S&P 500 futures fell 0.2%, Nasdaq 100 futures fell 0.1%, and Euro Stoxx 50 futures lost 0.7%.

Japan’s Topix index shed 1.8%, Australia’s S&P/ASX 200 Index dropped 2.2%, South Korea’s Kospi index declined 1.8%, China’s Shanghai Composite index fell 1.2%, and Hong Kong’s Hang Seng index was 2.9% lower. 

Overnight, the Dow Jones Industrial Average fell 653.67 points, or 1.99%, to 32,245.7, while the S&P 500 lost 132.1 points, or 3.20%, to 3,991.24, its lowest close since March 31, 2021. The Nasdaq Composite dropped 521.41 points, or 4.29%, to 11,623.25.