Maha IPO, Musk Gets Twitter and The Tussle for Cement | Weekly Market Wrapup 29 April
In this article
- What to expect from the markets
- Market Outlook
- Stock Recommendation
- Option Hub
- Key Results
- Quick Bites
- IPO Corner
- Sustainability Corner
A blue feather got added to Elon Musk’s cap this week as Twitter accepted Musk’s full and final offer. Musk will now acquire the microblogging website for $40 billion.
The much-awaited LIC IPO was announced this week. The IPO size was reduced in view of the market volatility arising out of the Russia-Ukraine crisis.
As India experiences its highest temperatures in the heatwave this summer, a war is brewing in the cement sector as JSW and Adani line up lenders to acquire stakes in Ambuja, and ACC as an aftermath of Holcim’s exit plans.
The benchmark indices fell flat on the week as a whole. Nifty closed the week with a 0.4% loss and ended at 17,103, losing 69 points. BSE Sensex ended the week at 57,060 losing 136 points. Bank Nifty was up 0.12% during the week, ending at 36,088.
| Nifty 17,103, ▼0.4% | Sensex 57,060 ▼0.24% | Bank Nifty 36,088, ▲0.12% | Nifty Midcap 10029,880, ▼1.44% |
📊What to Expect from the Markets
-Mr. Abhishek Jain, Research Head, Arihant Capital
Indian markets closed with negative momentum dragged by losses in heavyweights Reliance Industries, Axis Bank, and Maruti Suzuki.
On the sectoral front, all the sectoral indices ended on a negative note for the week ending 29th April except Nifty Auto and FMCG on a positive note. The Nifty Media, IT, Realty, Nifty PSU Bank, and Metal lost at 6.15%, 2.48%, 0.97%, 1.01%, and 2.88%. Whereas, Nifty Auto and FMCG gain at 0.45%, and 1.13% respectively.
We continue to believe the stock-specific approach is more prudent with some cash that can be kept on the sidelines. The market would keep an eye on LIC IPO which has been starting from May 4th.
📈Market Outlook
–Mr. Ratnesh Goyal, Senior Research Analyst
Nifty
The daily chart shows the Nifty struggling to close above its 200 SMA and the weekly chart shows a “Doji” formation. We conclude that the market may consolidate with some pressure from a higher level. If it crosses the 17,250 level then it will see a bounce towards the 17,400 and 17,550 levels. But, if it crosses below 17,025 then it can test 16,900 and 16,700 levels.
Bank Nifty
Bank Nifty’s daily chart shows a supply area near the 200 SMA and the weekly chart shows a breakdown of lower channel lines. The technical chart of Bank Nifty looks weaker and traders need to be cautious from higher levels. This week Bank Nifty futures closed at 36,082 levels. In the coming trading session if it holds below 35,800 then weakness could take it to 35,500 and 35,200 whereas minor resistance on the upside is capped around 36,500-36,800 levels.
💰Stock Picks
-Mr. Abhishek Jain, Research Head, Arihant Capital
From the Fundamental Desk
NBFCs, HFCs & MFIs have been posting a good set of numbers. Investors can accumulate them at current levels. As a stock-specific approach, Equitas Holdings, Ujjivan Financials, Can Fin Homes & LIC Housing can be accumulated at current levels.
🏷️Options Hub
-Kavita Jain, Head Learning and Senior Research Analyst
📝Key Results
- Yes Bank Q4 profit ₹367 crores NII rises 84% YoY.
- Maruti Suzuki’s Q4 sales were ₹25,514 crores, an 11.1% increase from Q4’21. Net profit ₹1,839 crore (up 58% from Q4’21). Dividend ₹60 per share.
- Ultratech consolidated PAT for Q4 was 2,620 crores, up 47.6% YoY. Net sales were up 9.31% at ₹15,557 crores. Dividend of ₹38 per share
- Wipro posted a consolidated net profit of ₹3,087 crores, revenue from operations at ₹20,860 crores, were up 4% and 28% from Q4’21. IT services revenue during the March quarter stood at $2,721.7 million – an increase of 26% year-on-year.
- Vedanta has announced the first interim dividend of ₹31.5 per equity share for FY 2022-23
- HUL posted an 8.6% YoY increase in net profit at ₹2,327 crores for Q4’22. The company’s board has recommended a final dividend of ₹19.
- SBI Life recorded a 26.3% increase in its net profit at ₹672 crores for Q4’22.
- Axis Bank reported a 54% year-on-year (YoY) increase in net profit at ₹4,117.8 crores for Q4’22. Net interest income (NII) of the bank rose 17% year on year to ₹8,819 crores. It announced a dividend of ₹1 per share.
- Bajaj Auto Ltd reported a 10% Yoy growth in net profit at ₹1,469 crores. It announced a dividend of ₹140 per share.
- ICICI Bank reported a 58% YoY increase in Q4’22 consolidated net profit to ₹7,719 crores. The bank has declared a dividend of ₹5 a share.
🔎Quick Bites
Economy
- India feels the heat: This is the hottest April in 122 years for central India.
- Power demand spikes to all-time high of 207 GW
- India’s foreign exchange reserves decreased by USD 3.271 billion to USD 600.423 billion in the week ended April 22.
- India’s core sector growth, as measured by the Index of Eight Core Industries (ICI) slowed to 4.3% in March. ICI recorded a growth of 6.0% in February 2022.
Automobile
- Bajaj Auto forecasts a 15-20% decline in motorcycle volumes in Q1 due to a shortage of semiconductor chips.
- TVS Motor has entered into a strategic partnership with Rapido to strengthen the hyperlocal mobility business.
- Maruti Suzuki has partnered with Indian Bank to facilitate easy finance for customers.
Banking and Finance
- CBI raids 3 top realtors’ sites in Maharashtra in the Yes Bank-DHFL case:
- Yes Bank moves NCLT to initiate insolvency proceedings against Zee Learn.
- Bank of India will raise up to ₹2,500 crores by issuing fresh equity shares.
Energy and Infrastructure
- BPCL & HPCL bagged licenses for retailing CNG to automobiles and piped cooking gas to households, in the latest bid round.
- NTPC will raise ₹1,500 crores by issuing non-convertible debentures on a private placement basis.
Industry
- Sansera Engineering has bagged a multi-year contract worth ₹3,066 crores for the manufacturing and supply of connecting rods.
- RIL became the first-ever Indian company to hit a market cap of ₹19 lakh crore.
- Jindal Stainless and Jindal Stainless (Hisar) to merge into a single entity
- RIL and UAE-based TA’ZIZ sign an agreement for a chemical project.
- Cyient to acquire Citec, an international plant, and product engineering services company, for $101 mn.
IT and Telecommunications
- Cyient announced the acquisition of Singapore-based Grit Consulting for $37 million (about ₹284 crores) in an all-cash deal.
- Infosys Collaborates with Nu Skin to drive social commerce-led transformation in the beauty and wellness sector.
- Wipro to acquire Rizing Intermediate Holdings Inc, a global SAP consulting firm for $540 million.
- Mindtree collaborates with Sapiens International Corporation to help insurance companies drive digital transformation.
Other
- Piramal Enterprises to raise up to ₹700 crores through the issue of NCDs on a private place bid
- PVR to introduce the concept of “cinema pods” in the Indian market.
- Bodhi Tree Multimedia partners with Reliance and Viacom18 to form one of the largest streaming companies in India.
- Air India has proposed to acquire AirAsia India. +Akasa Air’s launch has been delayed by a month to July, as per media reports.
- Veranda Learning: has acquired T.I.M.E. (Advanced Educational Activities Pvt Ltd), for ₹287 crores.
- Future creditors reject the Reliance deal. Reliance Industries announced that its ₹24,713-crore deal to acquire Future Group’s assets cannot be implemented now.”
- Religare Enterprises has paid ₹5.41 crore in settlement money to market regulator Sebi to settle its past cases.
🚀IPO Corner
- Rainbow Children’s Medicare IPO was subscribed 12.43 times on the final day. Retail investors bid 1.38 times the reserved portion.
- Campus Activewear IPO subscribed 51.75 times on the last day of subscription, Retail portion was booked 7.68 times
- LIC’s IPO is set to open for subscription on May 4 and close on May 9, as per various media reports. The government is planning to sell a 3.5% stake in the company through the offering, down from the 5% that was planned earlier.
- The price range for LIC IPO has been fixed at ₹902 – 949. The lot size for the IPO is 15 and the min investment amount is ₹13,530. Open for subscription on May 4. There is a discount of ₹45 per equity share for retail and eligible employee categories and of ₹60 per equity share for policyholders.
- Paytm has enabled HNI investors to place bids higher than ₹5 lakh for IPOs via UPI.
🔌Sustainability Corner
- Electric scooters will account for 20% of the overall 2w market by the end of the current fiscal, said Tarun Mehta, co-founder, and CEO of Bengaluru-based Ather Energy.
- Tata Elxsi opens a new technology development center in Thiruvananthapuram with 9 floors of EVs, connected cars, and other technologies.
- Tata emerges as the lowest bidder for the government e-bus tender.
- Tata Motors to reveal large EV concept car based on ‘Born Electric’ platform.
- TVS ties up with Rapido for hyper-local mobility.
- Varroc divests its four-wheeler lighting business to France’s Plastic Omnium.
- India to make hydrogen fuel cell vessels.
- Tatas plan to go Atmanirbhar with chip making, EV battery plans.
- Hero Electric had zero dispatches to dealers in April. The ongoing global semiconductor shortage led to a stoppage of production.
- Tata Power will install up to 5,000 EV charging points across members’ developer properties of the National Real Estate Development Council (NAREDCO).
- Hero MotoCorp is planning to export EVs to Latin America, Europe, Nepal, and Bangladesh.
- MG Motor and BPCL to install EV charging infrastructure in India.
That’s all for now folks! See you next week!
