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Benchmarks pare losses; European markets decline

Published on May 04, 2022 13:28

The key equity indices came of day`s low, trading with modest cuts during the afternoon trade. The sectoral indices on the NSE trading in red. The Nifty index hovered tad above 16,900 mark.

At 13:24 IST, the barometer index, S&P BSE Sensex was down 547.79 points or 0.96% to 56,428.20. The Nifty 50 index lost 166.75 points or 0.95% and traded at 16,906.60.

In the broader market, the S&P BSE Mid-Cap index skid 0.91% while the S&P BSE Small-Cap index slipped 0.52%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,110 shares rose while 2,166 shares fell. A total of 126 shares were unchanged.

LIC IPO:

The initial public offering (IPO) of insurance behemoth Life Insurance Corporation (LIC) of India received bids for 5.90 crore shares as against 16.20 crore shares on offer, according to stock exchange data at 13:28 IST on Wednesday (4 May 2022). The issue was subscribed 36%.

The issue opened today (4 May 2022) and it will remain open for bidding till 9 May 2022. The IPO price band is Rs 902 to Rs 949 per equity share. An investor can bid for a minimum of 15 equity shares and in multiples thereof.

Gainers & Losers:

Britannia Industries (up 4.74%), Oil and Natural Gas Corporation (ONGC) (up 3.23), Power Grid Corporation Of India (up 2.01%), NTPC (up 0.98%) and Infosys (up 0.41) were major Nifty gainers.

Apollo Hospitals Enterprise (down 4.92%), Adani Ports and Special Economic Zone (APSEZ) (down 3.65%), Hindalco Industries (down 3.14%), Bajaj Finserv (down 2.94%) and Titan Company (down 2.93%) were majority Nifty losers.

Stocks in Spotlight:

Tata Steel fell 1.17%. The steel maker`s consolidated net profit rose 46.84% to Rs 9,756.20 crore on 38.57% rise in turnover to Rs 69,324 crore in Q4 March 2022 over Q4 March 2021. On a consolidated basis, profit before tax (PBT) rose 17% year-on-year to Rs 12,139.26 crore in Q4 March 2022. Adjusted EBITDA rose 14.05% YoY to Rs 15,891 crore during the quarter. Adjusted EBITDA rose 11.43% YoY to Rs 19,832 per ton in Q4 March 2022.

For the full year, the steel major`s net profit surged 436.08% to Rs 40153.93 crore on 55.91% rise in turnover to Rs 2,43,959 crore in the year ended March 2022 over the year ended March 2021. The company reported highest ever consolidated EBITDA of Rs 63,830 crore (up 106.62% YoY) with an EBITDA per ton of Rs 21,626 (up 99.54% YoY). In India, the steel major achieved highest ever annual crude steel production of 19.06 million tons, with a growth of 13% YoY. It reported highest ever deliveries of 18.27 million tons (up 5.61% YoY) despite COVID 2nd wave related disruption early in financial year. The company recommended a dividend of Rs 51 per share for the financial year ended 31 March 2022. The company`s board also recommended a 10:1 stock split.

Titan Company declined 2.93%. The Tata Group company reported 7.18% decline in standalone net profit to Rs 491 crore in Q4 FY22 from Rs 529 crore in Q4 FY21. The company said Q4 FY22 ended with a satisfactory performance despite partial lockdowns, volatility in gold prices and uncertainty in a fragile geo-political situation. Total income for the quarter ended March 2022 stood at Rs 7,352 crore, rising 3% from Rs 7,169 crore posted in Q4 FY21. Excluding bullion sale, revenue declined by 2% compared to Q4 FY21.

The exceptional item represented Rs 51 crore expense recognised in the books on account of voluntary retirement scheme that was offered to employees during Q4. Profit before exceptional item and tax stood at Rs 716 crore in the fourth quarter, rose 1.99% from Rs 702 crore in the same period last year. During the quarter, the company`s jewellery business registered an income of Rs 6,132 crore compared to Rs 6,397 crore in Q4 FY21 (excluding bullion sale), a decline of 4%. Jewellery business reported an EBIT of Rs 780 crore (before exceptional items) in Q4 FY22 compared to Rs 703 crore in Q4 FY21.

Britannia Industries jumped 4.74%. The FMCG major reported 4.3% rise in consolidated net profit to Rs 379.87 crore on a 15.5% increase in net sales to Rs 3,508.35 crore in Q4 FY22 over Q4 FY21. Total expenditure during the quarter was Rs 3,000.77 crore, which is higher by 14.3% as compared with the same period last year. Consolidated operating profit for the fourth quarter was Rs 499 crore. registering with a growth of 10% on a YoY basis. Profit before tax in Q4 FY22 stood at Rs 518.91 crore, up by 5.3% from Rs 492.65 crore in Q4 FY21. The company recorded an 18.2% fall in consolidated net profit to Rs 1,524.82 despite an 8.2% rise in net sales to Rs 13,944.67 crore in FY22 over FY21. The board of directors has recommended a dividend of Rs 56.5 per share.

Hero MotoCorp shed 0.94%. The two-wheeler major`s standalone net profit declined 27.51% to Rs 627.05 crore on 14.55% fall in net sales to Rs 7,421.73 crore in Q4 March 2022 over Q4 March 2021. On a standalone basis, profit before tax (PBT) fell 28.95% year-on-year to Rs 802.21 in Q4 March 2022. Earnings Before Interest, Tax, Depreciation & Amortization (EBITDA) for the quarter stood at Rs 828 crore. EBITDA margin for the fourth quarter was at 11.2%. The company sold 11.9 lakh units of motorcycles and scooters sold in Q4 FY22. Hero MotoCorp`s standalone net profit declined 16.57% to Rs 2,473.02 crore on 5.05% fall in net sales to Rs 29,245.47 crore in the year ended March 2022 over the year ended March 2021. EBITDA stood at Rs 3,369 crore in FY22. The company sold 49.4 lakh units of motorcycles and scooters sold in FY`22.

JSW Energy added 2.18%. The company reported a multi-fold jump in consolidated net profit of Rs 864.35 crore in Q4 FY22 as compared to a net profit of Rs 106.60 crore in Q4 FY21. Net sales stood at Rs 2,440.68 crore in Q4 FY22 as against Rs 1,569.62 crore during the same period in the previous year, registering a growth of 55.5%. Profit before tax stood at Rs 968.98 crore in the fourth quarter, recording a robust growth of 635.7% from Rs 131.71 crore in the same period last year. Total expenditure spiked 39.7% to Rs 1,308.95 during the period under review. During the quarter, total revenue increased to Rs 2,655 crore from Rs 1,614 crore in the same period a year ago. As a result, EBITDA for the quarter was higher by 99% year-on-year at Rs 1,346 crore against Rs 677 crore in the corresponding period of previous year. EBITDA margin stood at 51% in Q4 FY22 as against 42% in Q4 FY21.

Global Markets:

European markets declined across the board on Wednesday as global investors await a crucial monetary policy decision from the U.S. Federal Reserve.

Most Asian stocks were trading lower on Wednesday, with investors looking ahead to the U.S. Federal Reserve`s interest rate decision expected later stateside. Markets in Japan and mainland China are closed on Wednesday for holidays.

Meanwhile, the British factory activity edged up in April after slowing to its weakest in just over a year in March following Russia`s invasion of Ukraine, but manufacturers remained wary about the outlook as costs leapt and demand faltered, a survey reportedly showed on Tuesday.

Investors kept an eye on the war in Ukraine, with the EU lining proposing additional oil sanctions on Russia as Russian forces continue to bombard targets in eastern Ukraine. The European Commission on Wednesday put forward new sanctions against the Kremlin which will include a six-month phase out of Russian crude imports.

The S&P Global/CIPS manufacturing Purchasing Managers` Index (PMI) rose to 55.8 in April from March`s 13-month low of 55.2, a slightly bigger rise than the increase to 55.3 in an earlier `flash` estimate.

Wall Street stocks ended higher on Tuesday after a choppy session in which each of the major indexes fluctuated between gains and losses as a key meeting of the Federal Reserve got under way.

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