Closing Bell: Nifty closes around 18,070, Sensex down 700 points;HDFC Bank, HDFC, IndusInd Bank top losers

Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities:

The Bank Nifty bears took over control and the index fell by more than 2 percentbreaking the support of the 43,000-42,800 zone. The index if sustained below 43000 will witness further correction towards the 42,500-42,300 zone where the next demand area is visible. The upside resistance of 43,000 if taken out decisively will lead to further short covering toward 43,300 levels.

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

Nifty Index gained marginally 0.46 percent, while Sensex gained 0.39percentin the past week. BSE Midcap and BSE SmallCap outperformed with gains of around 1.71percentand 1.52 percent. Indian equity markets remained concerned about growth prospects, even as inflation continued its downward trajectory both globally and domestically. Global equity markets remained volatile as market participants continued to seek clarity on the evolving growth-inflation balance. Indian equity markets continued their recent strong outperformance on better growth outlook on a relative basis, while the Q4FY23 earnings prints reported until now were ahead of muted expectations. Meanwhile, concerns about weak global growth resulted in crude prices declining to US$72.6/bbl from US$81.3/bbl last week.

Going forward, D-street will focus on the macro trends. Markets going ahead may be dominated by global news flows and steps taken by different governments to tackle their economy. On the economy front, the US Fed raised its interest rates by 25 bps, but suggested that the rate hike cycle may be paused, if data remains supportive. Both DIIs and FIIs were net buyers during the week.

Mitul Shah - Head of Research at Reliance Securities:

Indian equity markets ended lower tracking weak global cues. Nifty was down 1 percent. Broader markets also ended in the red as Nifty Mid Cap and Nifty Small Cap were down by 0.7percentand 0.8percent,respectively. The majority of sectoral indices ended in red. Nifty Pvt Bank (-2.8 percent) was the major laggard followed by Nifty Fin Service (-2.4 percent) and Nifty Bank (-2.3 percent). Nifty Consumer Durable (+1 percent) was the primary gainer followed by Nifty Auto (+0.4 percent).

The markets will keep one eye on the quarterly results & the management commentary while also focusing on the US regional banking crisis, US government debt concerns, unemployment data and crude oil prices. Meanwhile, as expected the FED increased interest rates by 25 bps. Indian bond yields have corrected by ~50bps from their peak to 7.02percentlowering the borrowing cost for government and corporates. A steep correction in Brent crude prices is an additional tailwind for the Indian economy.

Amol Athawale, Technical Analyst (DVP), Kotak Securities

In lieu of a steep fall in the US markets, domestic investors resorted to profit-taking in banking & financials, metals and IT stocks that saw the Sensex almost slip below the 61,000 mark. Indian markets have been on a roll in recent weeks and have been shrugging off global challenges for a while, and hence today's profit-taking did not come in as a major surprise. Although the domestic undertone remains bullish, markets may still remain choppy and move in tandem with the global mood.

Technically, on daily and weekly charts the Nifty held the higher bottom formation but on weekly charts, it has formed a Hammer candlestick pattern which is broadly negative. For traders, 18,200 would be the key resistance zone, below the same the market could retest the level of 17,900. On further correction, the index could slip till 17,800. On the flip side, a fresh uptrend rally is possible only after the dismissal of 18,200. Above the same, the market could move up till 18,300-18,350. Meanwhile, after a strong uptrend rally, last Friday the Bank Nifty formed a reversal formation. In the near future, as long as it is trading below 43,400 the correction wave is likely to continue and could slip to 42,300-42,000 levels. On the other side, above 43,400 it could move up to 43,700-43,900.

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

Nifty opened lower and saw some profit booking amid volatility. The index closed with a loss of 188 points at 18,068 levels. HDFC twins were major losers today, dragging benchmark and Banking indices down. The majority of the sectors ended in red. Despite weak global markets, Indian equities remained resilient on the back of positive economic data, Healthy Q4FY23 results, and FIIs turning net buyers. FIIs bought more than Rs10k in the last six trading sessions. After the sharp rise in the last few days, Nifty is now consolidating around 18,000-18,200 zones. While the overall market structure remains positive, expect Nifty to consolidate in the near term on the back of subdued global cues and profit booking in index heavyweights. Next week market would also take cues from inflation, state election outcome and ongoing earning season.

Vinod Nair, Head of Research at Geojit Financial Services:

The Indian market was dragged down by heavy selling in HDFC twins on fears of post-merger fund outflow. In addition, the cues from global peers were lacklustre as the ECB raised rates by 25bps and signalled the need for further rate hikes. Wall Street has witnessed prolonged selling pressure due to apprehensions in the banking sector about the strength of regional banks.

Market at close

Market records biggest single-day fall in two months dragged by sell-off inHDFC twins.

The Sensex was down 694.96 points or 1.13 percent at 61,054.29, and the Nifty was down 186.80 points or 1.02 percent at 18,069 points. About 1,499 shares advanced, 2,015 declined, and 127 were unchanged.

Dr Reddy's gets Form 483 with one observation for the Bollaram API unit

Manappuram Finance Promoter VP Nandakumar's Personal Assets Frozen: Clarifies to Exchange

Manappuram Finance has clarified to the exchange that its promoter VP Nandakumar's personal assets, including 19,29,01,996 equity shares in the company held by him, have been frozen on May 4, 2023, under section 17(1-A) of the Prevention of Money Laundering Act, 2002.

Market at 3.10 pm

Benchmark indices remained weak, with the Nifty trading around 18,500 points.

The Sensex was down 700 points or 1.13 percent at 61,051.18, and the Nifty was down 191.30 points or 1.05 percent at 18,064.50. About 1,462 shares advanced, 1,999 declined, and 150 were unchanged.

Geojit on Havells India: Performance stable ...margin pressure to ease

Revenue grew by 10 percentYoY, in line with our expectation, aided by strong growth in switch gears & Lloyd.

Due to higher costs, EBITDA margins fell by 80 bps YoY to 10.9 percent. But, on a sequential basis, margins improved by 70 bps, indicating gradual improvement.

Weak consumer sentiments and volatility in commodity prices are near-term headwinds.

However, real estate and construction demand remains steady, which is expected to drive consumer spending going ahead.

We expect a strong earnings recovery in FY24 as RM prices normalise and revenue growth momentum picks up led by volumes.

Given the strong earnings outlook, we value HAVL at a P/E of 48x on FY25E and maintain a BUY rating with a target price of Rs.1,462.

Geojit on UltraTech Cement: Margin set to expand as input costs decline

UltraTech posted robust financial results driven by solid demand and volume growth. The company’s margin also improved due to a decline in input costs.

With a strong outlook for the cement industry and the company’s effort to enhance operational efficiencies, UltraTech is poised for continued growth and profitability. We, therefore, reiterate our BUY rating on the stock with a revised target price of Rs. 8,760 based on 16x FY25E EV/EBITDA

Gati Business Update

Gati’s total volume, including surface and express, for the month of April 2023 was down 2.1 percentas compared to April 2022 and down 15.8percentas compared to March 2023.

After a very strong March, volumes softened a bit for the month of April. Volume degrowth for the month was driven by softness in volume contribution from Key Enterprise Accounts (KEA) while the performance of SME and Retail accounts remained relatively strong.

The month saw weakness in volumes driven by softness in the consumer durables and automobile sectors. Further, crop damage also impacted rural demand.

Gati added 530 new customers during the quarter ending March 2023 including 419 MSME accounts.

Aurionpro Payments gets in-principle nod from RBI to operate as payment aggregator

Aurionpro Payment Solutions, also known as AuroPay, on May 5 said it received an in-principle approval from the Reserve Bank of India (RBI) to operate as a payment aggregator.

AuroPay, a subsidiary of Aurionpro Solutions, will be able to commence its payment aggregator business on receiving the final certificate of authorization from the RBI.

“With the achievement of this significant milestone, AuroPay remains on track to launch comprehensive payment services in the market,” the company told exchanges.

“We are extremely delighted ... This is a substantial stride forward in our mission to facilitate seamless online digital payments in the country, especially in the area of B2B payments,” Balkrishna Pangam, CEO, Aurionpro Payments, said in a release.

Marico re-appointed Saugata Gupta as MD & CEO

Marico re-appointed Saugata Gupta as managing director and chief executive officer for two years.

Rane Madras reports Q4 earnings

Net profit at Rs 9.5 crore vs loss Rs 2.5 crore on year

Revenue up 23 percentat Rs 621.6 cr vs Rs 505.4 cr (YoY)

EBITDA at Rs 55.6 crore vs Rs 26.8 crore (YoY)

EBITDA margin at 8.9 percentvs 5.3percent(YoY)

Sutlej Textiles Q4 earnings

Net loss at Rs 23.8 crore vs profit of Rs 51.6 crore(YoY)

Revenue down 16.4 percentat Rs 744.1 cr vs Rs 890.5 crore (YoY)

EBITDA down 78.9percentat Rs 25.8 crore vs Rs 122.1 crore (YoY)

EBITDA margin at 3.5 percent vs 13.7percent(YoY)

One-time loss at Rs 16 crore vs gain of Rs 8 crore (YoY)

FACT Q4 earnings

Fertilizers and Chemicals Travancore posted a 26.9 percent on year decline in its net profit for the fourth quarter of FY23 at Rs 165.60 crore. The net profit in the corresponding quarter last year was at Rs 227 crore.

The weak bottomline was on account of a fall of 26.2 percent year-on-year in revenue which came at Rs 1,248 crore, down from Rs 1,692.50 crore last year. EBIDTA margin also witnessed a contraction to 14.7 percent in January-March as against 17.5 percent in the year-ago period.

Bharat Forge Q4 earnings

Bharat Forge posted a net profit of Rs 244.5 crore for the fourth quarter of FY23, reflecting a decline of 6.7 percent on year from Rs 262 crore in the same period last year.The decline in net profit was on account of a one-time loss of Rs 41 crore in the quarter under review.

Revenue grew19.3 percent on year to Rs 1,997.2 crore from Rs 1,674 crore last year. EBIDTA margin contracted to 24.4 percent in January-March from 25.8 percent in the corresponding quarter last year.

Market at 1 pm

Indices were trading off the day's lows with the Nifty around 18,150 points.

The Sensex was down 350.05 points or 0.57 percent at 61,399.20, and the Nifty was down 95.90 points or 0.53 percent at 18,159.90. About 1,379 shares advanced, 1,757 shares declined, and 128 shares were unchanged.

UBS On TVS Motor

-Buy rating, target raised to Rs 1,430 per share

-Delivers margin expansion despite an adverse mix

-QoQ margin progression despite EV ramp-up points to an improvement in unit economics for EVs

-TVS credit services & Indonesia arm posted PBT of Rs 140 crore and Rs 40.5 crore

-Managementcommentary on EV franchise, market share gains paint promising outlook for FY24

Morgan Stanley on Godrej Properties

-Upgrade to 'equal-weight' rating, target at Rs 1,354 per share

-Co is now generating meaningful cash flows from ops

-Cash flows largely sufficient to fund new project acquisitions

-Co has achieved meaningful geographic diversification, making business model resilient

ITC buys 39.42% stake in Sproutlife Foods for Rs 175 crore

ITC acquired 2,443 equity shares and 7,215 compulsorily convertible preference shares of Sproutlife for an aggregate consideration of Rs. 175 crores.

With the aforesaid acquisition, the company’s shareholding in Sproutlife aggregates 39.42 percent of its share capital on a fully diluted basis.

SJVN bags project from Rajasthan govt having a cost of construction of Rs 600 crore 

The Company bagged a 100 MW project on the build own and operate basis under the Open Competitive Tariff bidding process touted by the Rajasthan Urja Vikas Nigam. With the allotment of this capacity, SJVN’s renewable portfolio in Rajasthan has reached to 1,100 MW which includes 1,000 MW Bikaner Solar Project which is in the advanced stage of commissioning.

The cost of construction/development of this project shall be approximately Rs 600 crores. The project is expected to generate 252 MWin the 1st year and the project's cumulative energy generation over a period of 25 years would be about 5,866 MU.

The commissioning of this project is expected to reduce 2,87,434 tonnes of carbon emission and would contribute to GoI'smission of reduction in carbon emission. SJVN’s renewable project portfolio now stands at 3,183 MW and the same is at different stages of implementation. With the allocation of this project, the portfolio of the company is now 47,179 MW.

Sundram Fasteners hits life-time high; gains 5% on robust Q4 earnings

Shares of Sundram Fasteners rallied nearly 5 per cent to hit a new all-time high at Rs 1,090 in Friday's intra-day trade after the company reported robust Q4 performance.

The auto component major posted a 19 per cent rise in consolidated net profit at Rs 127.47 crore for the fourth quarter ended March 2023 as against Rs 107.43 crore during the same period in the previous year. The company's consolidated revenue from operations rose 8.1 per cent year-on-year (YoY) to Rs 1,447.95 crore from Rs 1,339.84 crore in the same period.

For the entire financial year 2022-23, the company's net profit was seen up at Rs 500.35 crore as against net profit of Rs 461.83 crore in FY22. Total income increased by 15.5 per cent to Rs 5,662.75 crore.

In the quarter under review, the TVS Group company had won its biggest contract in the EV segment worth $250 million from a leading global automobile manufacturer for the supply of sub-assemblies for its electric vehicle (EV) unit.

CEAT zooms on 4x rise in Q4 profits and surprise gross-margin growth

After reporting an impressive growth in fourth-quarter earnings, tyre-maker CEAT rose by more than 5.5 percent in the morning trade.

Industry experts point particularly to the gross margin expansion to 40.1 percent, increasing 658 bps YoY and 556 bps QoQ. According to them, tyre companies had guided for a 3-4 percent fall in raw-material prices but their prices corrected by 8-9 percent, which could be due to the fall in crude prices. Crude prices fell from $80.92/bbl to $78.54/bbl from January 2023 to March 2023, which was below FY23’s average of $93.15/bbl, according to PPAC data.

Net profit saw a whopping 420.7 percent growth YoY to touch Rs 132 crore versus Rs 25.4 crore a year ago. Net profit for the whole fiscal was Rs 182.4 crore, which was a 158.4 percent rise from Rs 70.6 crore a year ago.Consolidated revenue for the quarter grew 10.9 percent YoY to Rs. 2,875 crore and EBITDA margin rose 553 bps YoY to 13.1 percent.

Paytm stock climbs 4% as street expects robust Q4

The share price of One97 Communications, which owns Paytm, has gained 4 percent in the early trade on May 5 ahead of its Q4 result. Paytm is expected to release its quarterly results for the March-ended quarter on May 6 with analysts largely anticipating a robust performance for the quarter.

According to market expectations, Paytm is likely to report healthy Q4FY23 results on a sequential basis on the back of improved numbers on loan disbursal as well as new device addition front, according to analysts at Yes Securities who have given the stock a ‘Neutral’ rating with a target price (TP) of Rs 700. Read More

CLSA on Tata Power

-Sell rating, target price of Rs 189
-Quality of results remains challenging, with many one-offs supporting PAT & continued clean-up at subsidiaries such as Tata Projects

Alert | Suryoday Small Finance Bank revises its FD rates by 49 to 160 basis points in 1 to 5-year slabs

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Mohit Malhotra, Dabur on Q4 results

Speaking to CNBC-TV18:
-Not worried about volume growth,case sale growth was 11%
-FY24 volume growthseen in mid-high single digit
-Expect low double-digitrevenue growth in FY24
-Will see gross margin expansion& increased ad spends
-EBITDA margin will be in the range of 19-19.5%
-Margin expansion needs to be sustainable, investments need to be made
-Expect low double-digitvalue growth next year

Also Read:Dabur India down for second day on weak Q4 but brokerages still upbeat. Here's why

Cement makers increase focus on premium products for better margins

Goldman Sachs on Hero Moto

-Sell rating, target at Rs 2,170 per share

-Q4 Beat, better operating leverage from favourable seasonality

-Rationale for gross margin upside, in context of similar product mix vs Q3

-Factors behind VIDA electric 2-wheeler price cuts

-Drivers of the higher other income in Q4

-Commentary around rural 2-wheeler demand trends in current subdued market environment

Promoter VP Nandakumar Reviewing Legal Options in ED matter, says Manappuram Finance

-Promoter VP Nandakumar received ED order of freezing his personal asset on May 4

-ED freeze also includes 19.29 crore shares held by VP Nandakumar in co

-Shares frozen by ED are worth approx Rs 2,000 crore, but the value attributed by ED is Rs 140 crore

-Amount of pending deposits to which matter pertains is less than Rs 10 lakh lying in escrow account

-VP Nandakumar says he is reviewing legal options in this matter

AGI Greenpac jumps 20% as strong Q4 earnings prompt investors to buy stock

Shares of AGI Greenpac soared 20 percent on May 5 as strong quarterly earnings prompted investors to buy the stock.

In Q4 FY23, the company reported revenue of Rs 680 crore, compared to Rs 432 crore in Q4 of FY22, registering a robust growth of 58 percent on a YoY basis. It delivered an EBITDA of Rs 196 crore, registering a growth of 111 percent YoY while net profit rose 152 percent YoY to Rs 96 crore.

The sales and profitability improved on a YoY and QoQ basis an improved product mix, and an increase in demand for the non-alcoholic & alcoholic beverages and packed food segment for the glass containers products, the company said in an exchange filing.

Dabur India shares fall on weak Q4 earnings

Extending losses for second day in a row, Dabur India shares are trading 1.5 lower on May 5 on weak Q4 results. The homegrown FMCG major posted 0.5 percent year-on-year decline in Q4 net profit at Rs 292.7 crore and its domestic volume growth at 1 percent lagged expectations.

Market at 10 am

The market remained lower as HDFC twins lost over 4 percent each.

The Sensex was down 249.31 points or 0.40 percent at 61,499.94, and the Nifty was down 67.90 points or 0.37 percent at 18,187.90. About 1,620 shares advanced, 1,158 shares declined, and 112 shares were unchanged.

Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One:

The surge in gold prices continues for another day, as the yellow metal gained 0.49 percent and conclude at 2051.1$ per ounce. With this strong momentum, gold is on track for its highest weekly rise in almost two months, as anticipation of a pause in the US Federal Reserve's rate hiking cycle and banking concerns boosted the safe-haven metal's attractiveness.

On Thursday, gold rose near highs as US banking fears increased demand for the safe-haven metal. Economic uncertainty and falling interest rates drive up demand for zero-yielding bullion.

Gold prices are expected to remain elevated as economic uncertainty and the possibility of the US Fed stopping interest rate hikes keep the demand line ticking higher.

Manappuram Finance tanks 14% as ED freezes assets worth Rs 143 crores

Shares of Manappuram Finance tanked 14 percent in early trade as Enforcement Directorate froze assets worth Rs 143 crore of prominent Kerala-based NBFC’s MD and CEO VP Nandakumar after it conducted raids as part of investigation in a money laundering case.

A total of six premises in Thrissur, where the company is headquartered, were covered during the searches launched on Wednesday. The case pertains to allegations of money laundering through "illegal" collection of deposits from the public, the agency said in a statement.

During the course of searches, the ED said, it was found that the proceeds of crime have been "diverted and invested" by V P Nandakumar into immovable properties in his name, in the name of his spouse and children and into the shares of Manappuram Finance Ltd.

"Hence, ED has freezed the assets of V P Nandakumar under the Prevention of Money Laundering Act (PMLA), totalling Rs 143 crore," it said. The frozen assets include deposits kept in eight bank accounts, investment in listed shares and shares of Manappuram Finance Limited, the agency said Various "incriminating" documents showing money laundering and property documents of 60 immovable properties were also seized during the course of the searches, it said.

Sanjay Mookim, JPMorgan India

On CNBC-TV18

-Will wait before deploying money into midcaps

-Will continue to stick to large cap names

-Decline in oil prices is a negative for the world, positive for India

-Won’t buy into IT space just yet