Equity indices failed to hold on to their gains in see-saw trade on Tuesday, ending in the red for the third straight session despite a tentative recovery in global equites. The rupee too bounced back from historic lows, but the overall sentiment remained risk-averse amid concerns over economic recovery in a high interest rate scenario.
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Wall Street opens higher after three-day slump
- The Dow Jones Industrial Average rose 258.4 points, or 0.80%, at the open to 32504.09. The S&P 500 rose 43.9 points, or 1.10%, at the open to 4035.18, while the Nasdaq Composite rose 277.1 points, or 2.38%, to 11900.343 at the opening bell.
Q4 EARNINGS: VODAFONE IDEA
– Revenue at Rs 10,166.2 cr vs Rs 9,644.8 cr QoQ
– Loss of Rs 6,461 cr vs loss of Rs 7,188.9 cr QoQ
Markets are witnessing volatile swings as various factors like rising interest rates, concerns over slower economic growth and further tightening measure in China continued to weigh on investors. Nifty has corrected sharply by 6.5% in the last 7 trading sessions. While the secondary market is struggling with volatility, we are witnessing lot of action in the primary market. LIC IPO was oversubscribed 2.95x despite being one of the largest fund raise ever in India. Also we saw strong listing of Campus Activewear on Monday. Three more IPO are lined up this week with Prudent Corporate Advisory Services ipo opened on 10th while Delhivery and Venus Pipes and Tubes opening on 11th May.
– Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services
Akhil Chaturvedi of Motilal Oswal AMC on AMFI data
Despite volatility in markets and fear around macros both globally and locally, it is good trend to see continues positive flows in equities. Though lower than last month which may be due to NFO allotment, SIP flows are holding strong which is also very positive. It will be interesting to see ongoing investment trends given the intensity of volatility being very high, I do expect positive trend to continue going forward though.
Nifty settled lower at the end of a volatile session. The weakness remained intact as the benchmark index has continued to remain below the important short term moving average. Besides, the daily RSI is in the bearish crossover. The trend is likely to remain bearish as long as the Nifty fails to move above 16400. On the lower end, Nifty may move down towards 16100/15900 over the short term.
– Rupak De, Senior Technical Analyst at LKP Securities
As the much buzzed initial public offering (IPO) of Life Insurance Corporation of India (LIC) closed for subscription on Monday, demand for its shares in the grey market nosedived. In the unofficial market, shares of LIC were exchanging hands at a minuscule premium of Rs 8-10 per share over the issue price, which is 90 per cent below the premium of Rs 100-105 per share it was commanding a week earlier.
We reiterate our bearish stance on the markets, in absence of any positive trigger. Participants shouldn’t read much into a single-day rebound and wait for some decisive reversal signal. Besides, stability on the global front is equally critical for any sustained move. Meanwhile, since most of the sectors are trading under pressure, the focus should be on stock selection and using intermediate rebound to create shorts.
– Ajit Mishra, VP – Research, Religare Broking
Samco Sec on Delhivery IPO: Avoid
The Indian logistics business is poised for tremendous expansion, and Delhivery, with its focus on the fast-growing e-commerce market, has promising growth potential ahead of it. Although the company’s revenues are increasing at a rapid pace, the company’s EBITDA and cash flow from operations remains negative. We expect that the company will continue to experience increasing cost pressures, at least in the short term, due to rising fuel costs. In addition, the issue looks to be sharply valued at a price-to-sales ratio of 5.5x of annualised FY22 revenue, when compared to its listed peers. Considering the current increasing interest rate environment, where valuations of high growth companies across the globe are taking a beating, Delhivery’s expensive valuation is concerning. So we have an AVOID rating for this IPO.
Cipla announces appoitment of Dinesh Jain, Senior Vice President – Corporate Finance, as Interim Chief Financial Officer and Key Managerial Personnel w.e.f today
Price as on 10 May, 2022 04:27 PM, Click on company names for their live prices.
What moved market today?
— Vinod Nair, Head of Research at Geojit Financial Services
A weakening rupee despite forex swaps by the Central Bank failed to lift IT stocks even after good deal wins and management commentary post-earnings. FMCG stocks saw investor interest today as Bulls attempted to halt the famous adage – Sell in May & Go Away. The Metal Index however played spoilsport for the Bulls and dropped over 5% today in Afternoon Trade led by Aluminium & Steel. The Indices in no way represented the damage done today in the broader markets with the Advance-Decline ratio describing the weak undertone.
– S Ranganathan, Head of Research at LKP securities
Top 5 gainers & losers in today’s trade
Price as on 10 May, 2022 03:40 PM, Click on company names for their live prices.
Sector Watch: Pharma, realty & metal indices worst losers
Nifty Metal tanks 5%, most since Sept 2021
Sensex update: 20 of 30 index stocks end in the red
CLOSING BELL: Sensex takes losing run to 3rd day, falls 106 pts, Nifty below 16,250; Tata Steel plunges 7%
AMFI DATA UPDATE
#AMFI Data | Net inflow at Rs 72,847 cr; equity inflow at Rs 15,890 cr. Total AUM at Rs 38.9 lk cr; equity AUM at R… https://t.co/y5rILicNw9
— ET NOW (@ETNOWlive) 1652176129000
Rupee consolidated in a narrow range after falling to fresh all time lows yesterday. Broader strength in the dollar against its major crosses kept the rupee weighed down. On the domestic front focus will be on the CPI number and a higher number could cap gains for the currency. From the US, market participants will be keeping an eye on the CPI number that will be released tomorrow.
– Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services
ArcelorMittal to enter race?
#ETNOWExclusive | Big twist in @Holcim exit from ACC, Ambuja! @ArcelorMittal to enter race? To bid for ACC, Ambuja… https://t.co/7mwaCQiv25
— ET NOW (@ETNOWlive) 1652166905000
Sensex today LIVE: Index off day’s high, turns flat
Market LIVE updates: Ajanta Pharma board approves issue of bonus shares in the ratio of 1:2
Price as on 10 May, 2022 02:17 PM, Click on company names for their live prices.
- Asian Paints on Tuesday reported consolidated net profit for the March quarter at Rs 850.42 crore compared with Rs 852.13 crore in the same quarter last year. This compares with ET Now analyst poll estimate of Rs 923 crore.
- The revenue from sales for the period came in at Rs 7,889.94 crore, up 20.60 per cent from Rs 6,541.94 crore that it reported in the corresponding quarter last year.
- Adani Ports and Special Economic Zone is likely to see a drop in the March quarter profit to the tune of 20 per cent, according to analysts tracking the company. They, however, have different views on the company’s top line growth.
- Centrum Broking expects adjusted profit after tax (PAT) to decline about 19 per cent compared to the corresponding quarter last year to Rs 1,040 crore. It expects revenue to rise about 14 per cent in the same period. The broker further expects Ebitda to decline over 10 per cent with margins shrinking by about 14 percentage points.
Asian Paints is likely to report a single-digit growth in profit for the March quarter even as analysts see a 10-21 per cent plus growth in sales. Margins are seen shrinking by 200-400 basis points on a jump in raw material cost. Volume growth is seen at 6-7 per cent. Analysts said investors may watch out for commentary on the demand outlook after recent price hikes.
Cosmo Films Q4 profit up 45% to Rs 108 cr
Cosmo Films has reported an increase of 45.30 per cent in consolidated net profit at Rs 108.18 crore for the fourth quarter ended March 2022, helped by higher sales and better operating margins. The company had posted a consolidated net profit of Rs 74.45 crore for January-March period a year ago, Cosmo Films said in a BSE filing. Revenue from operations was at Rs 820.88 crore as against Rs 671.80 crore in the year-ago period.
Top 10 gainers in the afternoon trade
Price as on 10 May, 2022 01:12 PM, Click on company names for their live prices.
Zerodha’s Nithin Kamath on tech stocks
The sharp fall in the stock prices of high growth tech companies across the globe is getting crazy, feels like the… https://t.co/L7YWhSgeC6
— Nithin Kamath (@Nithin0dha) 1652165634000
Prudent IPO subscription status: Issue receives 25% bids so far on Day 1
Sensex today LIVE: Index extends gains, trades at day’s high
The cryptocurrency market witnessed a bloodbath on Tuesday amid sinking global markets and diminishing risk appetite of investors. Following a 13 per cent decline, Bitcoin breached the $30,000 mark in the last 24 hours. It is the lowest level of the largest digital token since July 2021. It hit an intraday low of $29,944.80. According to data from Coinmarketcap, Bitcoin has tumbled about 25 per cent in the last six days. The crypto behemoth has tanked about 60 per cent from its peak scaled in November 2021.
USFDA conducted a Good Manufacturing Practices (GMP) inspection of Sun Pharmaceutical Industries Limited’s Halol facility (Gujarat, India) from April 26 to May 9, 2022. At the conclusion of the inspection, the US FDA issued a Form-483, with 10 observations.
Price as on 10 May, 2022 11:38 AM, Click on company names for their live prices.
As per RBI’s own calculations, almost every 5% depreciation in the rupee adds about 10-15 bps to the inflation. So given the fact that inflation is already very high and the RBI has been quite late to play catch up as far as raising interest rates to tackle inflation is concerned, going forward the outlook is not too good for the Indian rupee.
– Mythili Bhusnurmath, Consulting Editor, ET Now
Market LIVE Updates: Nifty Auto rallies over 1%
Sensex Today LIVE: Index off day’s low, trades nearly 100 points up
Drug major Cipla on Tuesday said it has launched a COVID-19 RT PCR testing kit in the country in partnership with diagnostics firm Genes2Me. With the launch of the “RT-Direct multiplex COVID-19 RT PCR” test kit, the Mumbai-based drug firm is expanding its diagnostics offerings, it said in a regulatory filing.
Price as on 10 May, 2022 10:34 AM, Click on company names for their live prices.
The upswing yesterday could take Nifty only as far as 16,400, the previous breakdown point, which de facto became a significant resistance. The rejection thereof would mean that we would start today just like yesterday, with a downside gapped opening followed by attempts to rise. Meanwhile,16,250 vicinity will take on the role donned by 16,400 yesterday, by keeping a lid on upsides, and 16,060 that of 16,250 by attempting to stage an upside reversal. The 15,800 region lies in wait, and so is a much larger 14,500 move, but our bets today are on 16,060 holding for an upswing towards 16,250 early in the day, with potential for extended upsides, while above 16,180.
– Anand James – Chief Market Strategist at Geojit Financial Services
Market LIVE Updates: Rainbow Children’s Medicare shares list at 6% discount
Barring the dollar-pegged stable coins, all major crypto tokens and altcoins were bleeding. Terra tanked over 49 per cent, wiping off half of the investor wealth, whereas Shiba Inu’s 17 per cent drop pulled it out from the top-15 crypto tokens. Bitcoin slumped about 10 per cent to hit 10-month lows, while Ethereum dropped another 8 per cent. Solana, Cardano, Avalanche, BNB plunged in the range of 12-16 per cent each.
The mother market US has turned distinctly weak with Nasdaq, S&P 500 and Dow at 1-year lows. European markets are moving in tandem with US markets. Relatively India is doing better thanks to the consistent buying by DIIs and retail investors. Retail investors should not rush in to buy aggressively now since the market is not at buyable valuations. Since there is a risk off environment globally, FIIs are likely to sell at every bounce in the market. High quality stocks like leading financials may be bought in small quantities.Rupee depreciation, which may continue, will impart resilience to IT stocks.
– Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
FOREX MARKET UPDATE: Rupee surges 20 paise to 77.24 against US dollar in early trade
STOCK IN NEWS: JSW STEEL
#StocksToWatch | JSW Steel: April crude steel production at 1.7 mn tn, up 22% YoY @jswsteel #Steel… https://t.co/qdgYAChOPb
— ET NOW (@ETNOWlive) 1652155404000
IT, Metal only sectoral losers in early trade on NSE
Voda Idea, YES Bank, Tata Power among most active stocks on NSE
Price as on 10 May, 2022 09:28 AM, Click on company names for their live prices.
Sensex Heatmap: Most index stocks in the green in opening trade
- TOP GAINERS: Asian Paints, Ultratech, Maruti
- TOP LOSERS: RIL, Infosys, Titan
OPENING BELL: Sensex gains 100 points, Nifty50 at 16,330; Asian Paints jumps 3%, Ruchi Soya 2%
Pre-open session: Sensex slips 350 points, recovers; Nifty50 flat
Q4 results today
SGX Nifty signals a gap-down start
Nifty futures on the Singapore Exchange traded 145 points, or .89 per cent, lower at 16,146.50, signaling that Dalal Street was headed for a gap-down start on Tuesday.
Tech View: Nifty50 forms small bullish candle
Nifty50 on Monday saw a gap-down start, but the index managed to close above the opening level, forming a small bullish candle on the daily scale. The formation, made after a Doji in Friday’s trade, made some analysts hopeful, even as the index continued its lower-high low formations. Avoid shorts for now, they suggested.
Hong Kong shares slump more than 4% in early trade
Hong Kong’s benchmark share index returned from a one-day holiday sharply lower on Tuesday, slumping more than 4% as worries over higher interest rates and slowing economic growth sapped investor sentiment. The Hang Seng index fell as much as 4.11% in early trade, dragged lower by index heavyweights Alibaba Group Holding , Meituan and Tencent Holdings Ltd, which slumped between 4% and 7%.
S&P500 futures down 0.5%
S&P 500 stock futures and Dow Jones futures both fell 0.5% and Nasdaq futures were down 0.6%. Overnight, US stocks extended Friday’s bruising sell-off as investors rushed to protect themselves against the prospect of a weakening economy. Central banks in the United States, Britain and Australia raised interest rates last week and investors girded for more tightening as policymakers fight soaring inflation.
Asian stocks hit 2-year low on rate hike worries
Asian shares tumbled to their lowest in nearly two years on Tuesday as investors shed riskier assets on worries about higher interest rates and their impact on economic growth, while the dollar held near 20-year highs. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.8%, falling for a seventh straight session and extending declines to 17% so far this year. The Nikkei lost 0.9%, Australian shares shed 2.5% and Korean stocks lost 2%.
S&P500 ends below 4,000 for 1st time since March 2021
The S&P 500 ended below 4,000 for the first time since late March 2021 and the Nasdaq dropped more than 4% on Monday in a selloff led by mega-cap growth shares as investors grew more concerned about rising interest rates. The Dow Jones Industrial Average fell 653.67 points, or 1.99%, to 32,245.7, while the S&P 500 lost 132.1 points, or 3.20%, to 3,991.24, its lowest close since March 31, 2021. The Nasdaq Composite dropped 521.41 points, or 4.29%, to 11,623.25.
Rupee slumps to all-time low of 77.44 on forex outflows
Extending its losses for a second day, the rupee on Monday slumped by 54 paise to close at a record low of 77.44 against the US dollar, pressured by the strength of the American currency overseas and unabated foreign fund outflows. Forex traders said risk appetite has weakened amid rising bond yields in the US and mounting concerns about inflation that may trigger more aggressive rate hikes by global central banks.
Sensex, Nifty on Monday
Equity benchmarks began the week on a downbeat note on Monday, weighed by heavy selling in market heavyweight Reliance Industries and persisting weakness in global bourses. Slipping for the second straight session, the 30-share BSE Sensex shed 364.91 points or 0.67 per cent to close at 54,470.67. During the day, it tanked over 900 points to 53,918.02.Similarly, the NSE Nifty tumbled 109.40 points or 0.67 per cent to end at 16,301.85.