The IT index slipped 4.7 percent while realty and bank indices slid 1 percent each. However, buying was seen in the auto, metal, FMCG, and power names.
Benchmark indices extended profit booking on the fourth day in a row on April 18 amid selling in the IT and banking counters. At close, the Sensex was down 1,172.19 points or 2.01% at 57,166.74, and the Nifty was down 302 points or 1.73% at 17,173.70.
Infosys | CMP: Rs 1,622.30 | The stock price tumbled over 7 percent after several analysts cut its margin estimates over its weaker-than-expected earnings for the March quarter. Jefferies India cut its margin estimates by 100-170 basis points to factor in the miss and expected 21.9 percent margin in FY22. Nomura Research expects FY23F EBIT margin to drop 100bp year-on-year to 22 percent and lower FY22-24 earnings per share by 5-7 percent primarily on its lower margin expectations. Infosys reported revenue growth of 1.2 percent on-quarter in constant currency terms due to contractual client provisions impact and less number of calendar working days. Infosys margin was down by 193 basis points QoQ at 21.6 percent largely due to lower working days (160bps), and contractual client provision (60bps), partially negated by pyramid optimisation.
Tata Steel | CMP: Rs 1,340.25 | The share price ended in the green as the company plans stock split. A meeting of the board of directors of Tata Steel will be held on May 3 to consider the share sub-division and take on record the audited standalone and unaudited consolidated financial statements and results for the quarter ended March 31, 2022, according to a press release issued by the company. The Board will also recommend dividends, if any, for the financial year ended March 31, 2022, on that day.
HDFC Bank | CMP: Rs 1,397.50 | The scrip fell over 4 percent on April 18. HDFC Bank on April 16 reported a 23 percent year-on-year (YoY) growth in standalone net profit at Rs 10,055.2 crore for the quarter ended March 2022 as bad loan provisions declined 29 percent, with further improvement in asset quality. Net interest income (NII) increased 10.2 percent YoY to Rs 18,872.7 crore in Q4, with credit growth of nearly 21 percent and 16.8 percent growth in deposits YoY. Credit Suisse feels that there were strong growth trends, while NIM remains soft. The capital levels remain strong and increase EPS estimates by 2-3 percent. It expects an RoE of 16-17 percent, reported CNBC-TV18.
Tata Power | CMP: Rs 258 | The stock price was down over 5 percent on April 18. BlackRock Real Assets, together with Mubadala, will invest Rs 4,000 crore ($ 525 million) for a 10.53 percent stake in Tata Power’s subsidiary Tata Power Renewables. The investment has taken a base equity valuation of the subsidiary to Rs 34,000 crore.
Maruti Suzuki India | CMP: Rs 7,579.50 | The auto maker’s share price ended in the green after the company announced a change in prices across models owing to an increase in various input costs. The weighted average increase across models is 1.3% – Ex-Showroom Prices (Delhi). These new prices will come into effect from 18th April 2022, the company said in its release.
JSPL | CMP: Rs 554.90 | The scrip ended in the green after the firm ended FY22 on a high with the company reporting record sales in March of 0.79 mt. Strong sales were driven by record production of 0.77mt (+5% YoY). The strong operational performance resulted in the company reporting the highest-ever production for the quarter of 2.11mt (+2% Y-o-Y), the company said in its press release.
Larsen & Toubro | CMP: Rs 1,742 | The scrip ended in the red – down over a percent on April 18. Larsen & Toubro Ltd. is weighing a merger between two of its publicly traded software firms (Mindtree Ltd. and Larsen & Toubro Infotech Ltd), according to a Bloomberg report, as the conglomerate seeks scale to compete with global digital giants. The boards of the two software units controlled by the Mumbai-based engineering firm could consider share swap ratios for the merger as early as next week, the report said.
NBCC | CMP: Rs 39.65 | The share ended in the red on April 18. NBCC (India) secured a total business of Rs 981.17 crore in March 2022. Out of this, an intimation of work order for Rs 500 crore (approx) namely “for Providing Comprehensive, Design, Engineering and Project Management Consultant (PMC) Services for various works in UT Ladakh” has already been submitted on March 17, 2022.
Mahindra Lifespaces | CMP: Rs 372.90 | The share price shed over 2 percent on April 18. Mahindra Lifespace Developers Ltd. announced it has purchased 11.5 acres of land in the rapidly developing micro-market of Pimpri, Pune. The land is estimated to have a developable potential of approximately 2 million square feet of saleable area and a Gross Development Value of around Rs 1,700 crore.
Asahi Songwon | CMP: Rs 336 | The stock jumped over 6 percent after the firm executed a Share Purchase Agreement with Atlas Life Sciences Private Limited (ALSPL) and certain identified promoters of ALSPL for the acquisition of 100% stake in ALSPL in three tranches from certain identified promoters and other shareholders of ALSPL. Also, the acquisition of shares under the first tranche i.e. 78% stake in ALSPL was completed today i.e. April 18, 2022.
Sandip Das
