The domestic benchmark indices suffered heavy losses on Thursday, falling almost 5% in five consecutive sessions. The Nifty index recovered from its day's low of 15,735.75, to cross 15,800 level at the fag end of market hours. All the sectoral indices on the NSE were in the red. Rising global inflation and hawkish monetary policy action by major central banks spooked investors.
As per provisional closing basis, the barometer index, S&P BSE Sensex fell 1,158.08 points or 2.14 % at 52,930.31. The Nifty 50 index lost 359.10 points or 2.22% at 15,808.00.
Selling was wide spread. The S&P BSE Mid-Cap index lost 2.24%. The S&P BSE Small-Cap index shed 1.96%.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 772 shares rose while 2,591 shares fell. A total of 84 shares were unchanged.
IPO Updates:
Prudent Corporate Advisory Services: The initial public offer (IPO) of Prudent Corporate Advisory Services received bids for 62,78,885 shares as against 60,18,689 shares on offer, according to stock exchange data at 15:06 IST on Thursday (12 May 2022). The issue was subscribed 1.04%.
The issue opened for bidding on Tuesday (10 May 2022) and it will close on Thursday (12 May 2022). The price band of the IPO is fixed at Rs 595-630 per share. The company will offer a discount of Rs 59 per share to eligible employees. The offer includes a reservation of shares worth upto Rs 6.50 crore for eligible employees. An investor can bid for a minimum of 23 equity shares and in multiples thereof.
Delhivery: The initial public offer (IPO) of Delhivery received bids for 1,42,63,620 shares as against 6,25,41,023 shares on offer, according to stock exchange data at 15:06 IST on Thursday (12 May 2022). The issue was subscribed 23%.
The issue opened for bidding on Wednesday (11 May 2022) and it will close on Friday (13 May 2022). The price band of the IPO is fixed at Rs 462-487 per share. An investor can bid for a minimum of 30 equity shares and in multiples thereof.
Venus Pipes and Tubes: The initial public offer (IPO) of Venus Pipes and Tubes received bids for 1,38,51,888 shares as against 35,51,914 shares on offer, according to stock exchange data at 15:06 IST on Thursday (12 May 2022). The issue was subscribed 3.90 times.
The issue opened for bidding on Wednesday (11 May 2022) and it will close on Friday (13 May 2022). The price band of the IPO is fixed at Rs 310-326 per share. An investor can bid for a minimum of 46 equity shares and in multiples thereof.
Buzzing Index:
The Nifty Financial Services index fell 3.20% to 15,462.95. The index had risen 0.82% in the past two trading sessions.
Among the components of the Nifty Financial Services index, Shriram Transport Finance Company (down 5.39%), Muthoot Finance (down 3.81%), Bajaj Finance (down 3.74%), HDFC Bank (down 3.53%) and ICICI Prudential Life Insurance Company (down 3.52%) were the top losers.
Among the other losers were Axis Bank (down 3.47%), State Bank of India (SBI) (down 3.43%), Bajaj Finserv (down 3.37%), Piramal Enterprises (down 3.34%) and Housing Development Finance Corporation (HDFC) (down 2.97%).
Earnings in Spotlight:
BSE down 2.14%. The company's consolidated net profit rose 128.68% to Rs 74.48 crore and sales rose 34.44% to Rs 204.59 crore in Q4 March 2022 over Q4 March 2021.
Punjab National Bank tumbled 13.75%. The PSU bank's net profit declined 65.6%to Rs 202 crore on 1.4% fall in total income to Rs 21,095 crore in Q4 March 2022 over Q4 March 2021. Net interest income (NII) improved by 5% to Rs 7,304 crore in Q4 FY22 from Rs 6,957 crore in Q4 FY21. Operating profit increased to Rs 5265 crore during Q4 FY22, with YoY growth of 17.30%. The bank's profit before tax (PBT) shrunk by 56.4% to Rs 413 crore in Q4 March 2022 over Q4 March 2021.
Relaxo Footwears fell 0.13%. The footwear maker posted a 38.4% decline in net profit to Rs 62.93 crore in Q4 FY22 from Rs 102.17 crore recorded in Q4 FY21. Revenue from operations fell nearly 7% year on year to Rs 698 crore in Q4 FY22 from Rs 748 crore reported in the same period last year. Profit before tax declined by 38.6% to Rs 84.44 crore in Q4 FY22 over Q4 FY21. EBITDA was down by 32% to Rs 111 crore in the quarter ended 31 March 2022 from Rs 163 crore in the same quarter last year. Meanwhile, EBITDA margin slumped by 586 basis points to 15.9% in Q4 FY22 from 21.8% in Q4 FY21.
Birla Corporation declined 2.86%. The company reported 53.4% decrease in consolidated net profit to Rs 138.96 crore in Q4 FY22 as against Rs 298.38 crore in Q4 FY21. Net sales was at Rs 2,264.21 crore for the quarter ended 31 March 2022 as against Rs 2,132.61 crore during the same period in the previous year, registering a growth of 6.2% Y-o-Y (year-on-year). Profit before tax stood at Rs 153.18 crore in the fourth quarter, falling 14.8% from Rs 179.78 crore during the period under review. Profitability was dented after the company reported a 12.7% spike in total expenditure to Rs 2,025.95 crore in Q4 FY22 over Q4 FY21.
Sagar Cements skid 3.52%. The company reported consolidated net loss of Rs 11.51 crore in Q4 March 2022 as against net profit of Rs 48.25 crore in Q4 March 2021. Net sales rose 20.13% to Rs 501.72 crore in Q4 March 2022 over Q4 March 2021. Pre-tax loss stood at Rs 13.38 crore in Q4 March 2022 as against pre-tax profit of Rs 74.97 crore in Q4 March 2021. Sales Volume (MT) rose 10% to 11,27,902 MT in Q4 March 2022 over Q4 March 2021. The company's plants operated around 62% during the current quarter. Operating EBITDA stood at Rs 61.09 crore for Q4 FY22 and Rs 275.77 crore during FY22, down by 41% and 31%, respectively. EBITDA margin declined by 1,300 bps to 12% for Q4 FY22 (v/s Q4 FY21) while the same declined by 1,200 bps to 17% during FY22 (v/s FY21).
Hindalco Industries lost 4.08%. Novelis reported 15% fall in adjusted EBITDA to $431 million in Q4 FY22 from $505 million in Q4 FY21. Net sales of Novelis increased 34% to $4,849 million for the fourth quarter of fiscal year 2022, compared to $3,631 million in the prior year period, primarily driven by higher average aluminum prices and local market premiums.
Coforge fell 1.65%. The IT company reported 13% rise in consolidated net profit to Rs 207.7 crore on a 5.1% increase in gross revenues to Rs 1,742.9 crore in Q4 FY22 over Q3 FY22. As compared with Q4 FY21, the company's net profit and gross revenues are higher by 56.2% and 38.2%, respectively. EBITDA improved by 9% to Rs 329.3 crore in Q4 FY22 from Rs 302 crore in Q3 FY22. EBITDA margin was 18.9% in Q4 FY22 as against 18.2% in Q3 FY22. In dollar terms, the company's revenue for the quarter was $232.4 million, up 4.9% QoQ and up 35% YoY.
Nitin Spinners rallied 9%. The company's net profit almost doubled to Rs 85.47 crore in Q4 FY22 from Rs 42.85 crore in Q4 FY21. Revenue from operations rose by 50% YoY to Rs 769.06 crore during the quarter. Total expenses increased by 43% to Rs 637.14 crore in Q4 FY22 over Q4 FY21, due to higher raw material costs (up 56% YoY) and higher other expenses (up 34% YoY). Profit before tax in Q4 FY22 stood at Rs 132.43 crore, up by 99% from Rs 66.44 crore in Q4 FY21.
Avanti Feeds jumped 16.27%. The company reported a 21% jump in consolidated net profit to Rs 84.35 crore on a 21.3% rise in revenue from operations at Rs 1332.23 crore in Q4 FY22 over Q4 FY21. Sequentially, the net profit surged by 109.8% from Rs 4,019.32 while revenue from operations were up by 24.6% from Rs 1068.92 crore in Q4 FY22 over Q3 FY22. Consolidated profit before tax (PBT) surged 82.1% quarter on quarter and 30.1% year on year to Rs 120.80 crore in the quarter ended 31 March 2022.
Global Markets:
The Dow Jones Futures were down 241 points, indicating a negative start to the US market.
Shares in Europe and Asia tumbled on Thursday as investors kept an eye on high inflation and tightening monetary policies. Adding to the uncertainty for investors are the war in Ukraine and COVID-19 lockdowns in China that threaten to hurt the global economy.
Finland's President Sauli Niinisto and Prime minister Sanna Marin have called for the country to apply for Nato membership without delay. Sauli Niinisto and Sanna Marin said in a joint statement they expected a decision in the next few days. The move comes amid a surge in public support for Nato membership following Russia's invasion of Ukraine. Finland shares a 1,300-km (810-mile) border with Russia.
The U.K. economy shrank by 0.1% in March but expanded by 0.8% for the first quarter of 2022 as a whole, official figures showed on Thursday, reportedly missing consensus forecasts and signaling that the worst is yet to come as the country's escalating cost-of-living crisis bites.
The U.S. consumer-price index increased 8.3% in April from the same month a year ago, data released Wednesday showed, decelerating from an 8.5% annual rate in March.
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