Share Market News Today | Sensex, Nifty, Share Prices Highlights: Indian benchmark indices recouped majority of early losses to end on a flat note in the volatile session with selling seen in the capital goods, auto and IT indices. The BSE Sensex closed 84.88 points or 0.15% at 56,975.99, and the NSE Nifty 50 settled 33.40 points or 0.20% down at 17,069.10. Apollo Hospitals, Eicher Motors, Titan Company, Bajaj Auto and Wipro were among the top Nifty losers, while gainers were IndusInd Bank, Coal India, Tata Steel, Power Grid Corporation and HDFC. Among the sectors, capital goods, auto and IT indices fell a percent each. However, some buying was seen in the FMCG, metal, power and realty names. In Broader markets, the BSE midcap index fell 0.47% and smallcap index shed 0.87%. This week is going to be a truncated one as the market will remain shut on Tuesday on account of Ramzan Eid.
Share Market Today | Sensex, Nifty, BSE, NSE, Share Prices, Stock Market News Live Updates
Indian benchmark Indices recouped majority of early losses to end on a flat note in the volatile session with selling seen in the capital goods, auto and IT indices.
The BSE Sensex closed 84.88 points or 0.15% at 56,975.99, and the NSE Nifty 50 settled 33.40 points or 0.20% down at 17,069.10. Sectorally, capital goods, auto and IT indices fell a percent each. However, some buying was seen in the FMCG, metal, power and realty names. In Broader markets, the BSE midcap index fell 0.47% and smallcap index shed 0.87%.
"The quarterly results from HDFC Ltd. are largely in line with expectations. The company has shown a healthy improvement in all key metrics – disbursement, net interest margin, credit cost, asset quality, and dividend payout ratio. However, in an environment of deteriorating credit quality analysts are going to closely look at the adequacy of provisioning even when HDFC has disclosed the NPLs as per RBI norms. The potential impact of higher provisioning over the next 12 months will keep the analysts on the cautious side. The higher cost of borrowing will depress the escalated net interest margins. We expect the demand for home mortgages to remain robust but at the same time, there is aggressive competition from PSU banks and well-funded NBFCs. HDFC has a strong leadership position in the mortgage industry and its management will be tested over the next year as it tries to find the right balance between growth and asset quality," said Abhay Agarwal, Founder, and Fund Manager, Piper Serica, SEBI Registered Portfolio Management Service Provider.
Bank Nifty was up 0.11% on Monday afternoon while Sensex and Nifty were down with losses.
Housing Development Finance Corporation (HDFC) on Monday said its standalone net profit for the quarter ended March 2022 stood at Rs 3,700.32 crore, up 16.36% compared to Rs 3,179.83 crore it reported a year back. The board of directors also announced a dividend of Rs 30 per share for the financial year ended March 2022. This is more than Rs 23 per share the company announced last year
LIC IPO: This week will mark the beginning of the much-awaited Life Insurance Corporation of India (LIC) IPO (Initial Public Offering). The LIC IPO will open for investors to bid on later this week on May 4 and close on May 9. Investors will be allowed to bid for the public issue in the fixed price band of Rs 902-949 per share, which translates to Rs 21,008 crore on the upper end of the price band, however, LIC has offered various discounts to investors, which makes the net issue size to Rs 20,558 crore. The public issue of LIC will be the biggest ever witnessed by Dalal Street. Just ahead of the LIC IPO opening, the timing for the IPO market has been increased from 10 AM till 7 PM for all the days.
"Though there are concerns over LIC regarding market share loss in individual insurance business and historically lower margins, we believe that valuations factor in most of the negatives. Expected improvements in product mix and greater transfer of surplus to shareholders account over the coming years are expected to drive profits from current low levels, which along with cheap valuations provide comfort. Moreover, discount of Rs 45 and Rs 60 for retail investors & LIC policyholders makes the issue more attractive for them. Hence, we are assigning a “SUBSCRIBE” recommendation to the issue."
~Angel One
"At the upper price band of Rs.949, LIC is available at P/EVPS (Embedded Value Per Share) of 1.1x which is at a discount of 65% compared to the average valuation of private life insurance players. Even though headwinds like declining market share, lower short-term persistency ratios and sub-par margins demand a discount to private players, the current valuation is attractive considering its strong market presence, improvement in profitability due to changes in surplus distribution norms. Hence, we assign a “Subscribe” rating on a short to medium term basis."
~ Geojit Financial Services
IDBI Bank has posted 34.8% jump in its Q4 net profit at Rs 690.6 crore versus Rs 512.2 crore and net interest income (NII) was down 25.3% at Rs 2,420.5 crore versus Rs 3,240 crore, YoY, reported CNBC-TV18. IDBI Bank was quoting at Rs 45.60, up Rs 0.25, or 0.55% on the BSE.
Benchmark indices were trading lower in the volatile trade with Nifty hovering around 17000. The Sensex was down 255.08 points or 0.45% at 56805.79, and the Nifty was down 89.80 points or 0.53% at 17012.70.
SBI Cards and Payment Services share price trading in the red after company clocked a massive 231% on-year growth in profit at Rs 581 crore as impairment loss and bad debts declined 44% on-year to Rs 393 crore for the quarter ended March 2022. Total revenue from operations grew by 23% to Rs 2,850 crore during the same period, led by higher income from fees & services and interest income. SBI Cards & Payment Services was quoting at Rs 818.35, down Rs 11.40, or 1.37% on the BSE.
"Life Insurance Corporation (LIC) is the largest life insurer in India, with 61.6% market share in terms of premiums (or GWP), and 71.8% market share in terms of the number of individual policies issued as of December 31, 2021. LIC is synonymous with insurance in India and enjoys a phenomenal brand recall. We believe India’s highly underpenetrated life insurance space is still at a nascent stage and is attractively positioned to capture the huge growth opportunity. LIC enjoys many competitive advantages like strong brand value, extremely large scale of operations, a huge network of agents, and an envious distribution network. . The issue is priced at ~1.1 times Embedded Value, which is at a steep discount compared to its Indian & global peers. Nevertheless, first-time investors must be aware that the business of insurance is long-term in nature; therefore we recommend this issue for the long term only."
~Parth Nyati, Founder, Tradingo
"Even post the listing, the government will still be the major shareholder and key manager, thus any future government intervention might be detrimental to shareholders. Insurance is a complex business for novice investors to understand as many terms are based on lots of estimates and assumptions, new investors will take time to get used to insurance terms like embedded value, VNB margins, APE, GWP, etc. There are concerns with the company like losing market share to private players, lower profitability & revenue growth compared to private players, lower VNB margins, and short-term persistency ratios. However, the company has made plans to address these issues and planning to take steps like increasing up-selling and cross-selling, increasing direct sales of their individual products on their website, designing products for the millennials, focusing more on non-par products, and protection based products, and linked products."
~Parth Nyati, Founder, Tradingo
TVS Motor Company sales grew by 24% from 238,983 units in the month of April 2021 to 295,308 units in April 2022. TVS Motor Company was quoting at Rs 645.55, down Rs 9.55, or 1.46 percent on the BSE.
Total two-wheelers sales grew by 24%, from 226,193 units in April 2021 to 280,022 units in April 2022. Domestic two-wheeler sales grew by 37%, from 131,386 units in April 2021 to 180,533 units in April 2022.
Motorcycle sales grew by 4%, from 133,227 units in April 2021 to 139,027 units in April 2022. Scooter sales of the Company grew by 57%, from 65,213 units in April 2021 to 102,209 units in April 2022.
Rainbow Children’s Medicare’s Rs 1581-crore IPO, which got 12.43 times subscription, will finalise the share allotment on Thursday, 5 May. The initiation of refunds or unblocking of funds from ASBA account will take place on 6 May, and the equity shares will get credited to depository accounts of allottees on 9 May. Rainbow Children’s Medicare IPO is likely to list on stock exchanges on 10 May 2022, according to RHP. The IPO shares were sold at a price range of Rs 516-542 per share. Read full story
Foreign Institutional Investors (FII) continued to trim their stake in domestic stock markets in the January-March quarter, pulling out $13.5 billion from domestic stocks and reducing their holdings in the Nifty 500 to a multi-quarter low. Data sourced by brokerage firm Motilal Oswal showed that FII holding in Nifty 500 was down 40bp sequentially and down 210bp on year to 20.3% in the last quarter of the previous fiscal year. On the other hand, Domestic Institutional Investors (DII) were net buyers and pumped in $11.5 billion into equities during the same period.
Shares of Solara Active Pharma Sciences hit a 52-week low of Rs 545.75, sliding 15% on the BSE in Monday's intra-day trade, after the company announced that Rajender Rao Juvvadi has resigned from the position of Managing director and CEO (MD & CEO).
"The current triangle consolidation is expected to break down if we close below 16,950 on the spot. Nifty needs to close above 17,200 for any chance of reversal in current trend. Traders will be keeping a close eye on the post policy press conference from Jerome Powell & Bank of England meet scheduled this week."
~Rahul Sharma, Director, Head- Technical & Derivatives Research, JM Financial Services
Wipro shares declined 3% to Rs 493.55, falling 5% from its intra-day high of Rs 519 on the BSE, in Monday's intra-day trade after it reported a disappointing margin for March quarter (Q4FY22). The stock of the information technology (IT) software & consulting company was close to its 52-week low price of Rs 477.80, touched on May 4, 2021. In the past one month, it has slipped 18% as compared to 4% decline in the S&P BSE Sensex.
"The current triangle consolidation is expected to break down if we close below 16,950 on the spot. Nifty needs to close above 17,200 for any chance of reversal in current trend. Traders will be keeping a close eye on the post policy press conference from Jerome Powell & Bank of England meet scheduled this week," said Rahul Sharma, Director, Head- Technical & Derivatives Research, JM Financial Services.
"On Friday, the bullish vibes lived only till achieving our objective of 17370, post which buyers withdrew sharply, which now threatens a 16400-15800 plunge in the near term. Upside prospects today would rest on the ability to stage a pull back above 16950 after the downside gapped opening, which could pave the way for consolidation with 17170 as the lid, especially as VIX continues to remain below 20. Else, the hopes would be on 16800 to attract bargain hunters," said Anand James - Chief Market Strategist at Geojit Financial Services.
S&P Global India Manufacturing Purchasing Managers’ Index (PMI) was at 54.7 in April, up from 54 in March, showing an acceleration in India’s manufacturing sector activities and a strong start to new fiscal year 2023. The month of April witnessed accelerated expansions in new orders and production and international sales also grew solidly, following a contraction in March, according to the seasonally adjusted monthly survey published Monday.
IndusInd Bank share price jumped 4% to hit an intraday high of Rs 1,025 on Monday morning after the lender reported a growth of 51.2% on-year in its consolidated profit after tax (PAT) of Rs 1,400.5 crore as compared to Rs 926.07 crore registered a year back. The Net Interest Income (NII) for the private sector lender rose 12.7% on-year to Rs 3,985 crore. Brokerages remain bullish on the stock and see up to 35% upside, given the bank’s well-capitalized balance sheet, improvement in collection efficiencies in MFI business, reduction in fresh slippages/restructured book and high PCR levels.
YES Bank share price jumped 6% in early trade Monday as investors cheered the private lender’s Jan-Mar earnings performance, with a large reduction in provisions for bad debts boosting the bottom-line. The private lender reported a net profit of Rs 367 crore for the March 2022 quarter. FY22 is the first full-year profit since FY19. YES Bank’s share price rose to a high of Rs 14.51 as against Rs 13.63 at previous close on the BSE.
Mahindra & Mahindra today announced that its overall auto sales for the month of April 2022 stood at 45640 vehicles. In the Utility Vehicles segment, Mahindra sold 22168 vehicles in April 2022. The Passenger Vehicles segment (which includes UVs, Cars and Vans) sold 22526 vehicles in April 2022. Exports for the month were at 2703 vehicles.
Tata Chemicals share price surged 7% amid weak market post strong Q4 results. The stock of Tata Group commodity chemicals company had hit a 52-week high of Rs 1,158 crore on October 18, 2021. It traded 6% higher as compared to 0.59% fall in the S&P BSE Sensex.
Stocks of the aviation related industry are likely to see some action, as jet fuel prices were hiked by 3.22 per cent -- the ninth straight increase this year -- to an all-time high of Rs 1,16,851.46 per kl (Rs 116.8 per litre) in the national capital, according to a price notification of state-owned fuel retailers.
Bajaj Auto has reported total sales of 3,10,774 units against 3,88,016 units, fall by 20%, on-year. Its 2-wheeler sales were down 19% at 2,81,711 units against 3,48,173 units and commercial vehicle sales were down 27% at 29,063 units versus 39,843 units, on-year.
The global economic outlook remains murky as a robust recovery from the pandemic is tempered by the war in Ukraine and China’s continuing battle against Covid-19. Any escalation in the conflict, which is already weighing on growth forecasts, could further burnish the appeal of gold. Increasing geopolitical uncertainty following Russia’s invasion of Ukraine is also driving strategic portfolio diversification by investors who are less concerned about higher real rates. Read full story
IndusInd Bank share price soared 4% after the private lender reported a 51% on-year jump in net profit to Rs 1,401 crore in the January-March quarter, aided by lower provisions and higher net interest income. Net interest income (NII) increased by 13% on-year to Rs 3,985 crore.
"USDINR continues its broad consolidation of 76.20-76.70 levels. Overall strength in US$ as well as weakness in Chinese Yuan is being countered by flows related to IPO as well as the possibility of central bank selling. LIC IPO anchor investment flows may cap sharp upsides in the pair. Exporters to keep on selling on spikes above 76.60 while Importers to keep on buying near term on any dips below 76.35. We may get some meaningful move post the Fed outcome on Wednesday while also the upcoming Nonfarm payrolls remain a key trigger."
~Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors