Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 ended over 2.5 per cent higher on Tuesday, on the back of broad-based buying. BSE Sensex ended 1344.63 points or 2.5 per cent up at 54,318, while NSE Nifty 50 settled at 16259. All the 30 stocks on S&P BSE Sensex ended in the positive territory, with Tata Steel, Reliance Industries Ltd (RIL), ITC, L&T, Wipro and ICICI Bank leading the gains. India VIX, the volatility index, fell 7.27 per cent to settle at 22.74 levels. On the sectoral front, Nifty Bank index jumped 2.10 per cent to settle at 34,302.
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BSE Sensex ended 1344.63 points or 2.5 per cent up at 54,318, while NSE Nifty 50 ended at 16259
BSE Sensex and Nifty 50 rose nearly 2 per cent on Tuesday led by strong gains in index heavyweights ICICI Bank and Reliance Industries Ltd (RIL). BSE Sensex crossed the 54000 level, while NSE’s Nifty jumped to 16,182.50 levels. Other stocks too, such as ITC, Infosys, Tata Steel, and L&T contributed the most to the indices’ gain. On the S&P BSE Sensex, just three stocks — Mahindra & Mahindra (M&M), Power Grid Corporation of India, and HDFC Bank — were trading in the red. Analysts say that positive global cues, buying in index heavyweights, and rebound in beaten down metal stocks on the back of updates on reopening in China lifted key indices on Tuesday.
Abhinav Capital Services, Avro India, Axita Cotton, CWD, Galactico Corporate Services, Gorani Industries, GSS Infotech, Honda India Power Products, Life Insurance Corporation of India (LIC), Megastar Foods, Panchsheel Organics, SAI Capital, Shish Industries, Silver Touch Technologies, Trans Financial Resources, Multipurpose Trading & Agencies were among the stocks that hit 52-week on BSE. Meanwhile, Amber Enterprises India, Aurobindo Pharma, Campus Activewear, Dai-ichi Karkaria, Fermenta Biotech, Galaxy Surfactants, HDFC Asset Management Company, HIL, Milkfood, Nilkamal, Orient Electric, Solara Active Pharma Sciences, Vanta Bioscience were among the securities that hit 52-week low. Read full story
“The Indian rupee has depreciated nearly 6% in the past 1 year, in the process hitting multiple lows. The INR hit a fresh all-time low due to a rise in the Dollar index and concerns around global economic growth. The weak economic data around the world, especially in China has put pressure on the dollar index which hit a nearly two-decade high. Domestically, we are witnessing an outflow of funds as investors move funds to high-yielding investment instruments. A rise in interest rates in the US will result in further outflows. We expect the currency to face pressure as inflation is on an upward spiral raising concerns about further rate action by the central bank.”
~Nish Bhatt, Founder & CEO, Millwood Kane International
After having been listed at a sharp premium over the IPO price, shares of Data Patterns (India) have now scaled lower from their highs amid various headwinds on Dalal Street. However, the stock still trades at close to a 20% premium to the issue price and analysts at ICICI Direct believe they could go higher. Initiating the coverage of Data patterns, ICICI Direct has pinned a ‘Buy’ tag on the stock with a target price of Rs 886, which is nearly 25% above the current trading price of Rs 711 apiece. Shares of Data Patterns were listed on NSE and BSE in December last year.
The all-time high level of WPI inflation at 15.08% in April was driven by the rise in prices across the board with manufactured products and fuel and power leading the charge. The double-digit inflation level was very much in line with the CareEdge expectation of 15%. Higher energy and metals prices due to supply-side bottlenecks have added to the input cost pressures for the domestic producers. As inflation is primarily supply-driven, we expect upward price pressures to persist in the near term. With recovery in demand, producers are expected to pass on the rising costs to consumers which could push retail inflation even higher.
~ Rajani Sinha | Chief Economist, Care Ratings
Shares of LIC (Life Insurance Corporation of India) have got their first rating on Dalal Street as Macquarie analysts initiated coverage of the stock with a ‘Neutral’ tag. However, despite the neutral tag, Macquarie has pinned a target price of Rs 1,000 per share on the stock, which is 14% above the listing price of Rs 872 per share and even above the IPO price of Rs 949. LIC, as expected, marked a discounted debut on Dalal Street. “We value the stock on an appraisal value method by using FY23E EV and a P/VNB multiple of 10x on FY24E VNB to arrive at a Rs 1,000 target price,” analysts said in the report.
Life Insurance Corporation of India (LIC) shares made a tepid debut on stock exchanges today. The stock got listed at Rs 867 on BSE, against the IPO price of Rs 949 apiece, eroding over Rs 43,000 crore overall investor wealth. At listing, LIC had a market capitalisation of Rs 5.57 lakh crore, as compared to Rs 6 lakh crore market value at the issue price. Soon after the LIC share listing, Macquarie analysts initiated coverage of the stock with ‘Neutral’ rating, and with a price target of Rs 1,000 – a 14 per cent upside from the listing price. The government of India sold 3.5 per cent stake to the public through the issue, down from 5 per cent that was earlier announced. Read full story
Rupee fell fresh all-time low as broader strength in the dollar continued and also as global crude oil prices continued to trade higher. Last week's inflation number released on the domestic front and from the US came in higher that disturbed the overall market sentiment. We expect the momentum for the USDINR to remain positive and quote in the range of 77.40 and 78.20. Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services
Crude oil continued the gain for the third week in a row, as traders tracked developments around a proposed EU ban on Russian oil, a move that would tighten global supply further. However, demand concerns from China were keeping a lid on prices. Chinese lockdowns were dragged on for more than a month now, directly curbing crude demand by more than 1.2 million barrels per day. The latest data pointed to lower demand from the world’s second-largest economy as China processed 11% less crude oil in April than a year ago due to Covid lockdowns. Meantime, in its monthly report, OPEC said it expects global demand to slow to 1.9 million barrels per day in Q2. Read full story
At current prices, LIC is trading at a P/EV (embedded value) of ~1.08x which is at a significant discount to other listed private life insurance companies like HDFC Life, ICICI Pru Life, and SBI Life. As expected given the adverse market conditions listing has been muted for LIC. However, cheap valuations as compared to other listed players offer comfort, and investors with a longer time horizon can hold on to their positions while retail traders with a short-term view can exit their positions in case there is any upside movement over the next few days. Yash Gupta- Equity Research Analyst, Angel One
At higher price band of Rs. 42, PPL is demanding an FY21 EV/Sales multiple of 0.7x, which is at significant discount to the peer average of 1.1x. Considering the above observations, we assign a “SUBSCRIBE” rating for the issue. Choice Broking
LIC is a typical blue-chip company which is expected to give steady returns over a long period of time and therefore returns over a day is not relevant. It is expected to remain quite attractive for investors. Mohit Ralhan, Managing Partner, TIW Capital Group
While LIC debuted at a slight discount to its issue price, investors should not look to exit at current levels and hold the stock from a medium to long-term perspective. We believe LIC continues to be a solid bet in the long run as it is a play on the growth story of the under-penetrated life insurance industry. Its sustained market leadership position, robust pan-India distribution network, and shifting focus towards profitable products, thus supporting margins and improving persistency ratios, will collectively make LIC an attractive pick from a long-term perspective. B Gopkumar, MD & CEO, Axis Securities
Shares of LIC (Life Insurance Corporation of India) have got their first rating on Dalal Street as Macquarie analysts initiated coverage of the stock with a ‘Neutral’ tag. However, despite the neutral tag, Macquarie has pinned a target price of Rs 1,000 per share on the stock, which is 14% above the listing price of Rs 872 per share and even above the IPO price of Rs 949. LIC, as expected, marked a discounted debut on Dalal Street. “We value the stock on an appraisal value method by using FY23E EV and a P/VNB multiple of 10x on FY24E VNB to arrive at a Rs 1,000 target price,” analysts said in the report. Read full story
The initial public offer (IPO) of Paradeep Phosphates opens for subscription today (17 May), and will close on Thursday (19 May). The price band for the Rs 1,501 crore IPO has been fixed at Rs 39-42 per equity share of face value Rs 10 each. The shares will be listed on BSE as well as NSE. Paradeep Phosphates shares on Tuesday were commanding a premium of Rs 3 in the grey market, 10% on the issue price. Ahead of the IPO, several brokerages have given a subscribe rating to the issue given its fair valuations compared to its peers.
Life Insurance Corporation of India (LIC) shares made a tepid debut on the stock exchanges today, listing at a discount to the IPO price. Shares of the insurance behemoth started trading on BSE and NSE on Tuesday morning at Rs 872 per share, down 8.11% from its IPO price of Rs 949 per share. Shares traded lower even as benchmark indices Sensex and Nifty were in the green on Tuesday. LIC’s Rs 21,000-crore public issue is the largest ever witnessed by Dalal Street. The issue had garnered a strong response from all investor categories earlier this month on a massive six-day subscription window, unlike the usual three-day window. Read full story
The major event of the day is the LIC listing. The performance of LIC stock post listing will have a near term sentiment impact on markets. Markets will remain highly volatile in the short-term. High inflation and Fed tightening will continue to be short-term challenges for the market. In the medium-term, there is a possibility of inflation peaking off and if that happens the central banks may not tighten as much as the market fears now. In such a scenario markets can bounce back sharply. But this is some time away. In the near-term the market is likely to remain weak amidst high volatility. Long-term investors can buy high quality stocks across sectors, particularly in financials, IT and pockets of autos. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Domestically, at a time when global risk-off sentiments, higher oil prices and FII's outflows are weighing on the Indian rupee, RBI is supporting the currency by intervening across markets as the forex reserves decline for yet another week by $1.77 bn to $595.95 bn. Its stance on inflation and interest rates still lacks clarity after losing its credibility, but it has made it very clear to prevent the one-go slide in the Indian Rupee from the start. Overall, we expect that RBI will allow a steady slip in the currency and we expect the pair to trade in the wide range of 76.50-78.50 in the short to medium term. Amit Pabari, managing director, CR Forex Advisors
We expect LIC to do well in near future as LIC will be trading at P/EV (embedded value) of 1.1x at an upper price band of ₹949 which is at a significant discount to other listed private life insurance companies like HDFC Life, ICICI Pru Life, and SBI Life. LIC IPO initially may see some selling pressure as all the retail investors have received the allotment. Looking at the cheap valuations of LIC as compared to other listed players offers comfort and investors with a longer time horizon can hold or buy more. Yash Gupta- Equity Research Analyst, Angel One
Nifty Bank was up more than 1 per cent to 33,939 levels
Sun Pharma, Infosys, Asian Paints, TCS, Tech Mahindra were among top index losers
Tata Steel, IndusInd Bank, Reliance Industries Ltd (RIL), HCL Tech, ICICI Bank, Axis Bank, Bajaj Finance, SBI, HUL were among top index gainers
BSE Sensex was up 292 points or 0.6 per cent to 53,266, while NSE Nifty 50 index reclaimed 15950 level
BSE Sensex jumped above 53000 levels, while NSE Nifty 50 topped the crucial 15900 level in pre-opening session on Tuesday
The market volatility is likely to weigh on the listing day performance of LIC. We expect LIC to debut at a discount, and it is unlikely for investors to book any listing gains. However, owing to the discount offered to the policyholders and retail investors, they could end up making a marginal gain on the listing. Axis Securities
The Indian Rupee is likely to appreciate against the US Dollar on Tuesday amid rise in risk appetite in global markets. However, gains may be capped by persistent FII outflows, elevated crude price. Rupee hit a new all-time low versus the US dollar last week. With the global stock markets extending their string of losses, cryptocurrencies seeing a sharp sell-off and the US dollar moving to a 20-year high, the fall in rupee was not entirely unexpected. The local unit has depreciated by 4.18% since the beginning of the year and closed in the previous trading session at 77.44 against the greenback.
Markets may see a cautious start today as US markets faltered overnight but SGX Nifty is aiming hard to flirt above the dotted lines. All investors eyes are glued to Life Insurance Corporation's (LIC) listing. However, Our call of the day suggests LIC is likely to witness a sluggish opening and perhaps the stock could list anywhere between Rs 900-Rs 945. LIC’s grey market premium (GMP) too is indicating a lackluster listing. LIC’s weak listing can dent sentiments further at Dalal Street. Another main reason for the pessimism can be attributed to relentless selling from the FIIs camp. FIIs continue to be net sellers for the 8th straight month since October 2021. The FIIs camp have sold shares worth Rs. 32,701 mark in the month of May. In yesterday’s trade too, FIIs sold shares worth Rs. 1788.90 Crores while DIIs bought shares worth Rs. 1428.40 Crores. Prashanth Tapse, Vice President (Research), Mehta Equities
The last three sessions’ lows are precisely the same and hence, the selling seems to have reduced a bit as we approached the key support zone 15700 – 15600. However, this does not mean we are completely out of the woods. For a time being, 15700 – 16100 has become a trading range for Nifty and only a sustainable move beyond 16100 would see some convincing rebound in the market. On the flip side, as of now, we do not expect a major downside below 15700 – 15600 as markets are extremely oversold and hence, any breach of lower levels would probably give some false breakdown. Hence, traders are advised not to trade aggressively on the short side here. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One
Nifty ended today’s session with a ‘Doji’ candlestick on the daily chart. This pattern indicates indecision, but given that the index was not able to surpass its hurdles inspite of positive market breadth is not a good sign. However, if we look at last three trading sessions, the index has consolidated within a range wherein 15735 have acted as a support. The previous swing low of March 2022 is also around 15670 and thus, 15670-15735 is the important support zone now for the index. On the flipside, the recent downtrend has been so strong that inspite of oversold set ups, we have not seen any strength to pull the indices higher. Ruchit Jain, Lead Research, 5paisa.com
Effective May 02, 2022, SEBI’s circular on segregation and monitoring of collateral at the client level has been implemented. This regulation is another important step to fortify the interests of investors, especially the retail participants, thereby helping strengthen the capital markets. Earlier, brokers were required to collect margins from clients and deposit the collateral with exchanges on an aggregate basis, i.e. at the trading member/broker level, without segregation at the client level, wherein at least 50% of the total collateral was required to be in the form of cash or cash equivalents. From May 02, 2022, under the new regulation on segregation of clients’ funds, brokers are now required to segregate cash & noncash margins at the client level and report to the same to exchanges. Narayan Gangadhar, CEO, Angel One
Paradeep Phosphates issue will open for subscription on 17 May and close on 19 May. The public issue consists of a fresh issue of shares worth Rs 1,004 crore while an offer-for-sale of up to 11.85 crore shares by existing shareholders and promoters. As part of the OFS, selling shareholders — Zuari Maroc Phosphates Pvt Ltd (ZMPPL) will offload 60.18 lakh equity shares and Government of India will sell up to 11.24 crore equity shares. Read full story
The S&P 500 ended lower on Monday, with Tesla and other growth stocks losing ground after downbeat Chinese economic data added to worries about a global slowdown and rising interest rates. China’s economic activity cooled sharply in April as widening COVID-19 lockdowns took a heavy toll on consumption, industrial production and employment, adding to fears the economy could shrink in the second quarter. Read full story
Analysts believe that the listing of the insurer will further raise the relevance of the industry in investor portfolios. “LIC’s listing will broaden investible universe … It will also help investors to better track sector dynamics as LIC disclosures become frequent,” analysts at Jefferies wrote in a note earlier this year. LIC will play on the growth story of the under-penetrated insurance industry. The stock movement will also depend on the government’s plan to dilute further. Read full story
Life Insurance Corporation of India (LIC): LIC will be listing its shares on the stock exchanges on Tuesday. The Rs 21,000 crore blockbuster initial public offering (IPO) of LIC had witnessed a good response from the investors getting subscribed 2.95 times after a marathon 6-day subscription period from May 4-9.
Interglobe Aviation (IndiGo): Shares of Interglobe Aviation will be in focus after the firm said it got DGCA communications on handling of special child at Ranchi Airport. DGCA prima facie found Indigo’s handling of special child at Ranchi Airport inappropriate. DGCA will issue a show-cause notice to Indigo to explain.
Petrol prices have now been left untouched for 41 consecutive days by oil marketing companies (OMC). Prices have not been changed since April 6, after OMCs hiked fuel rate by Rs 10 per litre through 14 price hikes across major cities that started on March 22. Petrol in the National Capital of Delhi is currently priced at Rs 105.41 per litre, after the last hike of 80 paise nearly a month ago. Diesel in the city is priced at Rs 96.67. In Mumbai, a litre of petrol and diesel cost Rs 120.51 and Rs 104.77, respectively. Public sector OMCs including Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices daily in line with benchmark international prices and foreign exchange rates.
LIC will be listing its shares on the stock exchanges on Tuesday. The Rs 21,000 crore blockbuster initial public offering (IPO) of LIC had witnessed a good response from the investors getting subscribed 2.95 times.
Aditya Birla Capital on Monday said that outgoing CEO Ajay Srinivasan is transitioning to a new role being crafted at the group level in consultation with him. Read full story
Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities said that Nifty will find support at 15671, indicating there is a possibility of a bounce-back in the very near term. “A pullback rally is possible only if the Nifty convincingly takes out the recent highs of 16084,” he added.