Closing Bell: Nifty ends near 17,600, Sensex falls 159 pts; IT, power major drag

Ajit Mishra, VP - Technical Research, Religare Broking

Markets settled marginally lower in a dull trading session, in continuation to the prevailing consolidation phase. After the flat start, Nifty hovered in a narrow range and finally closed at 17,618.75 levels. Most sectors traded in sync with the move wherein pressure in the IT majors was weighing on sentiment. The broader indices also took a breather and ended almost unchanged.

We are seeing a healthy consolidation in the index and expect the same to end soon. However, prevailing underperformance of select sectors like IT and energy might cap the momentum in the following sessions. Meanwhile, participants should continue with a stock-specific approach and prefer sectors like banking, financials, auto and FMCG for the long trades.

Prashanth Tapse, Senior VP (Research), Mehta Equities

The Nifty has been falling for the past three days as a result of deteriorating risk sentiment globally and growing investor anxiety about a probable recession. The downward trend has also been influenced by Infosys and TCS dismal Q4 reports.

The Pharma, Metal, and Realty Indices all saw some buying despite the general decrease, with the Nifty Metal Index outperforming and the Nifty IT Index underperforming.

With support at 17573 and resistance at 17863, the Nifty is likely to stay choppy and volatile. Strength will only be confirmed above the 17863 level. The 21 DMA, 50 DMA, and 200 DMA are being attentively examined by professional analysts for any indications of trends, which are now neutral. The overall range for the Nifty is expected to be between 17500-17750.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

While the markets have seen FIIs paring equity exposure in last few sessions, the recent dismal earnings show from select frontline IT companies have been a sour point which has led to broad-based selling, especially in IT counters.

Currently the Nifty is trading near the 200-day SMA (Simple Moving Average) level and the texture is suggesting a strong possibility of a fresh rally from the current levels only after dismissal of 17675. Above which, the index could retest the level of 17800-17825.

On the flip side, as long as the index is trading below 17675, the correction wave is likely to continue and could slip till 17500-17475.

Vinod Nair, Head of Research at Geojit Financial Services.

The dark clouds of weak Q4 numbers are haunting the domestic market leading to a consecutive third fall in the week. IT stocks continued their selling spree ahead of the release of earnings from other tech majors. Tepid cues from the global peers are also creating havoc as the market prices in the possibility of another rate hike by the Fed. The biggest risk for the market today is a downgrade in the corporate earnings forecast.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services:

Nifty opened flat and continued to remain in negative territory throughout the session to close with a loss of 41 points at 17,619 levels. Sectorally,it was a mixed bag with IT continuing to remain under pressure. However, traction is seen in specialty chemicals on account of attractive valuation and the expectation of improved export demand. Rice-producing companies rallied today after a report by research agency Fitch Solutions said that the global market was to log its biggest shortfall in two decades this year in rice.

Nifty after gaining nine consecutive trading sessions, has now been consolidating below the 17,800 zones for the last 3 days. Even FIIs have turned net sellers and have added to the overall weakness. For now, the market is stuck in a narrow range due to a lack of major triggers. There is some action seen in the broader market with niche sector-specific momentum. We expect further momentum in pharma, specialty chemicals, sugar, rice and realty to continue over the next few days.

Vinod Nair, Head of Research at Geojit Financial Services:

The dark clouds of weak Q4 numbers are haunting the domestic market leading to a consecutive third fall in the week. IT stocks continued their selling spree ahead of the release of earnings from other tech majors. Tepid cues from the global peers are also creating havoc as the market prices in the possibility of another rate hike by the Fed. The biggest risk for the market today is a downgrade in the corporate earnings forecast.

Dilip Parmar, Research Analyst, HDFC Securities

The Indian rupee headed lower for the third day in trot following the rebound in the US Treasury Yields and foreign fund outflows. Tracking the weak regional currencies, the rupee today fell to its weakest level after April 4.

Spot USDINR has reclaimed the 100-day simple moving average after broadly trading in the range of 82.20 to 81.77 for the last couple of weeks. The pair has the next crucial resistance at 82.40, the 50-day simple moving average and support shifted upward to 81.85.

Prestige Estates Q4 Update 

Prestige Estates registers quarterly sales of Rs 3888.8 crore up by 19 percent on year and quarterly collections of Rs 2763.3 crore which grew 12 percent on year during Q4. For FY23, the company posted its highest ever sales of Rs 12,930.9 crore, up by 25 percent YoY while collections also jumped 31 percent to Rs 9805.5 crore.

Rupee Close:

Indian rupee closed 19 paise lower at 82.23 per dollar versus previous close of 82.04.

Market Close

: Benchmark indices ended lower in the volatile session on April 19.

At close, the Sensex was down 159.21 points or 0.27 percent at 59,567.80, and the Nifty was down 41.40 points or 0.23 percent at 17,618.80. About 1,768 shares advanced, 1,650 shares declined, and 117 shares were unchanged.

HCL Technologies, Infosys, IndusInd Bank, SBI Life Insurance and Wipro were among the top losers on the Nifty, while gainers included BPCL, Divis Laboratories, Bajaj Auto, Axis Bank and M&M.

On the sectoral front, information technology and power indices lost 1 percent each. However, buying was seen in the metal, oil & gas and pharma names.

The BSE midcap and smallcap indices ended flat.

Jefferies View On ICICI Lombard 

-Buy rating, target cut to Rs 1,560 per share
-For Q4FY23, company’s profit was ahead of estimate aided by higher investment income
-Premium growth was softer partly due to sell-down & higher base
-Combined ratio was up 100 bps YoY to 104 percent
-Watch for impact of rise in reinsurance cost & Industry discipline under EOM regime in FY24
-Trim estimates by 3-5 percentto factor such risks
-Stake sale & CEO succession may limit re-rating

South Indian Bank to raise lending rates from April 20

South Indian Bank is going to raise the marginal cost of funds based lending rates by 5-10 bps across tenures with effect from April 20.

South Indian Bank was quoting at Rs 15.64, up Rs 0.18, or 1.16 percent.

JPMorgan View On Coal India 

-Overweight rating, target raised to Rs 290 from Rs 285 per share
-Expect FSA coal price hikes to come through & offset wage hike
-Company’s is due for a hike as last hike was on Jan 18, especially as wage bill has been finalised
-Stable to higher earnings should translate into strong dividends

Coal India was quoting at Rs 230.65, down Rs 1.60, or 0.69 percent on the BSE.

Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas

Indian Rupee depreciated on Wednesday on weak domestic equities and a strong US Dollar. FII outflows over the past two sessions also weighed on Rupee. European markets too traded in the red with UK markets as the biggest loser amid elevated inflation. Dollar gained on rising expectations of further tightening of monetary policy by US Federal Reserve in its next FOMC meeting in May. Most of the Fed officials are advocating for a 25-bps rate hikes in their respective speeches.

We expect Indian Rupee to trade with a negative bias on risk aversion in global markets and a recovery in the greenback. If we see further FII outflows, it may put downside pressure on Rupee. However, softening of crude oil prices may prevent sharp fall in the domestic currency. USDINR spot price is expected to trade in a range of Rs 81.70 to Rs 82.80 in the near term.

Som Distilleries starts commercial production of expanded beer capacity in Karnataka

Som Distilleries and Breweries has commenced commercial production of the expanded capacity of bear at Hassan, Karnataka. This will lead to better supply of its products across all the distribution points in relevant markets.

Timescan Logistics gets approval to set up a unit in MEPZ SEZ, Chennai

Timescan Logistics has received approval from MEPZ Special Economic Zone & HEOU’s in Tamil Nadu, Pondicherry, Andaman & Nicobar Island on April 17 for setting up a unit in MEPZ SEZ, Tambaram, Chennai.

Timescan Logistics India was quoting at Rs 118.65, up Rs 5.65, or 5.00 percent on the NSE.

UBS View on ICICI Lombard General Insurance Company

-Buy rating, target at Rs 1,445 per share
-Mixed results, net income beat, claims elevated
-Premium growth slower than industry, combined ratio remains elevated
-Management maintained its guidance of 102 percent COR by FY25
-Net income was above estimate, helped by higher-than-expected investment income & lower commissions

ICICI Lombard General Insurance Company was quoting at Rs 1,078.00, down Rs 52.55, or 4.65 percent on the BSE.

Market at 3 PM

The Sensex was down 214.43 points or 0.36 percentat 59,512.58, and the Nifty was down 60 points or 0.34percentat 17,600.20. About 1,589 shares advanced, 1,651 shares declined, and 101 shares were unchanged.

Zydus Lifesciences gets final USFDA approval for Roflumilast Tablets

Zydus Lifesciences has received final approval from the United States Food and Drug Administration (USFDA) to manufacture and market Roflumilast Tablets, 250 mcg.

Roflumilast reduces inflammation in the lungs that leads to chronic obstructive pulmonary disease (COPD).

Kotak Institutional Equities On Titan Company

-Add Rating, target at Rs 2,700 per share
-Company reduced commissions of L2/L3 franchisees of Tanishq to earn store-level operating leverage gains
-The change in terms of trade is rare & indicates company’s focus on expanding jewelry EBIT margin
-The change indicates defending margin in the event of any rise in competitive intensity
-Softness in demand led by sharp rise in gold prices continues, could weigh on near-term growth

Titan Company was quoting at Rs 2,564.55, down Rs 11.85, or 0.46 percent on the BSE.

AU Small Finance Bank gets RBI licence as authorized dealer to deal in foreign exchange

Reserve Bank of India has granted Licence to act as Authorized Dealer Category-I (AD-I) under section 10 of FEMA, 1999 to deal in foreign exchange subject to compliance of applicable regulations in this regard.

Patel Engineering jumps 18% after huge block deal

Patel Engineering's share price surged by 18 percent following a significant block deal where approximately 3.65 million shares, representing 0.5 percent stake in the company, were exchanged in two bunches, as per Bloomberg reports. However, the identities of the buyers and sellers remain undisclosed.

Mirza International surges over 60% in last seven sessions

Mirza International Ltd's shares have continued their upward trend, hitting the 20 percent upper circuit for the second consecutive session, driven by higher trading volumes. The stock has witnessed a remarkable surge of more than 60 percent over the past seven sessions, making it a multibagger stock. In 2022, it has already advanced by nearly 97 percent, following a growth of over 120 percent in 2021.

Remarkably, over the last two years, the stock has generated a return of 570 percent. For instance, an investor who had invested Rs 1 lakh in the company's shares two years ago, would now have holdings valued at over Rs 5.70 lakhs.

Market at 2 PM

Benchmark indices extended the losses and were trading at day's lowwith Nifty at 17,600.

The Sensex was down 232.94 points or 0.39 percentat 59,494.07, and the Nifty was down 65.20 points or 0.37percentat 17,595. About 1,639 shares advanced, 1,572 shares declined, and 107 shares were unchanged.

JK Tyre to pump in Rs 800 crore to expand output

JK Tyre and Industries will be ramping up its current capacity by 2 million units per annum by the end of financial year 2023-24. The homegrown tyremaker will be spending Rs 800 crore on this scaling-up exercise, a senior company official told Moneycontrol. Read More

Nifty PSU Bank index down 0.5 percent dragged by Punjab & Sind, JK Bank, Indian Bank

Pearl Global Industries expands Indonesia facility

Pearl Global Industries has announced expansion at its Indonesia facility. This new facility has been built on the land acquired in the year 2021 for expanding operations and the new facility replaces the one old facility which was on lease.

Total capacity after new facility is over 35 percenthigher compared to earlier lease facilities in Indonesia. New facility will be able to manage more complex processes, which will help us to deliver more value-added products to the clients, which shall result in improved per piece realizations. This higher capacity is expected to yield higher revenues for Indonesia in FY 24-25, company said.

Pearl Global Industries was quoting at Rs 423.50, up Rs 1.70, or 0.40 percent on the BSE.

ITC arm incorporates a wholly owned subsidiary in Mexico

ITC Infotech India Limited, a wholly owned subsidiary of ITC, incorporated a wholly owned subsidiary in Mexico under the name of ‘ITC Infotech de México, S.A. de C.V.’.

Consequently, ITC Mexico has become a step-down wholly owned subsidiary of ITC with effect from 17th April, 2023

ITC was quoting at Rs 400.20, up Rs 1.75, or 0.44 percent on the BSE.

Sharekhan View on ICICI Lombard General Insurance Company:

The company's leading premium market share in the industry with secular growth potential, its profit focus with a profit share that is almost ~5x its premium market share, and its leading RoE profile make it a compelling investment for long-term financial services portfolios.

Broking house expect healthy premium growth, led by investments in the health distribution channel and benefits accruing from past investments in technology. Gradual improvement in the motor business and health business should boost profitability although commercial lines will likely face headwinds in the near term due to the removal of standardized tariffs and higher reinsurance rates.

It expect the company to deliver medium-term RoE of 18%. At the current price, the stock trades at 27.0x/23.7x its FY2024E/FY2025E EPS.

ICICI Lombard General Insurance Company was quoting at Rs 1,083.30, down Rs 47.25, or 4.18 percent on the BSE.

Macquarie View On United Spirits

-Underperform rating, target at Rs 650 per share
-New Delhi refuses to renew Pernod Ricard’s licence
-Benefit to company may take some time to flow through
-See risks to near-term margin given continued inflationary headwinds on input costs
-Limited room to cut overhead costs & back-ended gains from proposed manufacturing restructuring

UK inflation, highest in western Europe, falls only a little in March

Britain now has western Europe's highest rate of consumer price inflation after it fell by less than expected in March to 10.1 percentfrom February's 10.4 percent, official data showed on Wednesday.

Economists polled by Reuters had forecast that the annual CPI rate would drop to 9.8percentin March, moving further away from October's 41-year high of 11.1percentbut still eating into the spending power of workers whose pay is rising by less.

Despite falling in March, Britain's inflation rate was the highest in western Europe and the only country in the region to post a double-digit number for last month, after Austria recorded a higher inflation rate in February.

Zomato's rises 5% as Blinkit stores reopen after wage protests

The share price of Zomato rose 5 percent in the afternoon trade on April 19 after the food delivery firm said that most of its Blinkit stores had reopened after wage protests.

Blinkit's delivery executives have been on strike since April 12, demanding that recent changes to incentive structures be rolled back. Zomato is trying to shift from a fixed-fee model of Rs 25 a delivery to a hybrid-pricing structure of Rs 15 along with a supplementary incentive based on distance travelled, seen as a considerable cut in potential earnings by the delivery executives.

Blinkit, the food paltform's grocery unit, has around 400 stores in India, of which 50 were shut, mostly in and around New Delhi, on April 14 as employees demanded better wages.

Market at 1 PM

Benchmark indices were trading flat amid volatility.

The Sensex was down 28.27 points or 0.05 percentat 59,698.74, and the Nifty was down 4.90 points or 0.03percentat 17,655.30. About 1,807 shares advanced, 1,384 shares declined, and 93 shares were unchanged.

Goldman Sachs buys Rs 32.63 crore shares in Avalon Technologies

Goldman Sachs has bought Rs 32.63 crore worth shares in Avalon Technologies on its listing day.

Goldman Sachs Investments (Mauritius) I has purchased 4.45 lakh shares in the company via open market transactions at an average price of Rs 408.13 per share, and Goldman Sachs Funds - Goldman Sachs India Equity Portfolio acquired 3.5 lakh shares at an average price of Rs 412.91 per share.

Avalon Technologies was quoting at Rs 409.35, up Rs 11.90, or 2.99 percent.

Oil dips as potential Fed rate hike overshadows falling stocks

Oil dropped on Wednesday as the market weighed potential interest rate hikes from the U.S. Federal Reserve that could slow growth and dampen oil consumption, offsetting falling U.S. inventories and strong Chinese economic data.

Brent crude futures shed 35 cents, or 0.4 percent, to $84.42 a barrel as at 0641 GMT. West Texas Intermediate U.S. crude fell 33 cents, also 0.4 percent, to $80.53 a barrel.

Pidilite Industries inks asset purchase pact with Basic Adhesives LLC, USA

Pidilite Industries has entered into an agreement with US-based Basic Adhesives LLC for purchase of its certain assets comprising of technology, design, trademark, copyright, domain name and trade dress etc.

The company will pay the consideration in tranches over a period of time.

Pidilite Industries was quoting at Rs 2,415.00, down Rs 14.75, or 0.61 percent on the BSE.

Prestige Estates Projects arm acquires 51% stake in Dashanya Tech

Prestige Estates Projects' subsidiary Prestige Exora Business Parks has acquired 51percentshares in Dashanya Tech Parkz.

The acquisition cost for 51percentstake is Rs 66.07 crore.