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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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.