Market trade with heavy losses; RIL falls 3%

The benchmark indices continued to trade with major losses in morning trade. The sectoral indices on the NSE declined across the board. The Nifty index traded a tad below 16,250 level. Shares of index heavyweight Reliance Industries (RIL) fell 2.99% in reaction to its Q4 results declared after market hours on Friday. Weakness in global stocks weighed on sentiment adversely.

At 10:30 IST, the barometer index, S&P BSE Sensex dropped 575.41 points or 1.05% at 54,260.17. The Nifty 50 index skid 165.75 points or 1.01% at 16,245.50.

The S&P BSE Mid-Cap index fell 1.49%. The S&P BSE Small-Cap index slipped 1.53%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 820 shares rose while 2,357 shares fell. A total of 125 shares were unchanged.

Results Today:

UPL (up 1.50%), PVR (up 0.60%), Godrej Agrovet (down 2.30%), Dalmia Bharat (down 0.73%), Gujarat Narmada Valley Fertilizers & Chemicals (down 3.24%), Aarti Drugs (down 1.59%), BASF India (down 1.30%), Borosil (up 2.27%), Central Bank of India (down 0.82%), Vedant Fashions (down 1.72%), Suven Pharmaceuticals (down 0.19%) and VST Tillers & Tractors (down 0.62%) will announce its quarterly earnings on 9 May 2022.

Buzzing Index:

The Nifty Metal index declined 2.17% to 5,934.35. The index lost 4.23% in two trading sessions.

Among the components of the Nifty Metal index, APL Apollo Tubes (down 5.2%), Hindustan Copper (down 4.59%), Welspun Corp (down 4.4%), Jindal Stainless (Hisar) (down 4.24%) and National Aluminium Company (NALCO) (down 3.14%) were the top losers.

Among the other losers were Steel Authority of India (down 2.73%), NMDC (down 2.72%), JSW Steel (down 2.44%), Tata Steel (down 2.27%) and Vedanta (down 1.91%).

On the other hand, Hindustan Zinc (up 1.03%) edged higher.

LIC IPO:

The initial public offering (IPO) of insurance behemoth Life Insurance Corporation (LIC) of India received bids for 31.52 crore shares as against 16.20 crore shares on offer, according to stock exchange data at 10:30 IST on Monday (9 May 2022). The issue was subscribed 1.94 times.

The issue opened on 4 May 2022 and it will close today, 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.

Stocks in Spotlight:

On a consolidated basis, Reliance Industries (RIL) reported 20.2% increase in net profit to Rs 18,021 crore on 38.64% rise in net sales to Rs 207,375 crore in Q4 March 2022 over Q4 March 2021. Profit before tax (PBT) rose 36.8% to Rs 22,411 crore in Q4 March 2022 over Q4 March 2021. EBITDA increased by 27.7% to Rs 33,968 crore from Rs 26,602 crore in the corresponding quarter of the previous year. EBITDA growth was driven by strong operating performance across businesses.

Finance cost decreased by 12.1% to Rs 3,556 crore as against Rs 4,044 crore in the corresponding quarter of the previous year. Lower finance costs reflect large paydown of debt and other liabilities. Revenue of O2C was driven by improved price realization on the back of steep rise in crude oil prices and higher volumes. Retail segment revenues increased by robust performance with broad-based double-digit growth across all consumption baskets. Revenue of oil & gas segment increased primarily due to higher Gas price realization in KG D6 & CBM. Digital services revenues was primarily driven by higher ARPU and ramp up of wireline services.

For the year ended 31 March 2022, RIL achieved gross revenue of Rs 792,756 crore, as compared to Rs 539,238 crore in the previous year. EBITDA increased by 28.8% to Rs 125,687 crore from Rs 97,580 crore in the previous year, driven by robust operating performance across businesses. Profit after tax increased by 26.2% at Rs 67,845 crore as against Rs 53,739 crore in the previous year.

Housing Development Finance Corporation (HDFC) fell 0.99%. The housing finance major has increased its Retail Prime Lending Rate (RPLR) on Housing Loans by 30 basis points from 9 May 2022. "HDFC increases its Retail Prime Lending Rate (RPLR) on Housing Loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked by 30 basis points with effect from May 09, 2022," Housing Development Finance Corporation (HDFC) said in a statement on Saturday.

Olectra Greentech advanced 3.95%. Evey Trans was declared least quoted (L- 1) bidder from one of the State Transport Undertaking. Olectra Greentech on Saturday announced that Evey Trans (EVEY) was declared as the least quoted (L- 1) bidder for 1,400 electric buses from one of the State Transport Undertakings. The tender is for supply of electric buses on gross cost contract model for a period of 12 years (contract period).

Once the letter of award is received by EVEY, it shall procure (either directly by itself or through its special purpose vehicle) these electric buses from Olectra Greentech and which shall be delivered over a period of 12 months. The value of these 1,400 buses supply would be approximately Rs 2,450 crores for Olectra. Maintenance of these buses shall also be undertaken by Olectra during the contract period. The transaction between Olectra and EVEY is to be considered as related party transactions and shall be on arm`s length basis.

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