The Indian equity benchmarks, the NSE Nifty and the BSE Sensex plummeted tracking a global sell-off after The Bank of England and the US Fed hiked interest rates. The RBI too hiked interest rates and increased the cash reserve ratio. All sectors on the NSE were deep in the red, dragged by financial, IT and auto shares amongst others.
The Sensex lost 2787.18 points or 4.84% and closed at 54,835.58. The NSE Nifty closed at 16,411.25 after losing 914.80 points or 5.28%. An increase in rates by central banks, spiralling oil prices, FPI outflows and the LIC IPO contributed to selling pressure.
Market Movers
On the weekly charts, ITC, Hero Motocorp, Tata Steel, Tech Mahindra, Gail India, ONGC, Power Grid Corporation and Kotak Mahindra Bank were the top Gainers.
The top losers include Axis Bank, Vedanta, Titan Company, Eicher Motors, Bajaj Finance, Hindalco, Bajaj Finserv, Bajaj Auto, Grasim Industries, Adani Ports and SEZ, Maruti Suzuki, Indusind Bank, Wipro, Asian Paints, Reliance Industries, Indiabulls Housing, and Tata Motors.
Currencies
| Price | Change | %Change | |
| Dollar-Rupee | 76.9150 | +0.66 | +0.87 |
| Euro-Rupee | 81.2520 | +0.63 | +0.78 |
| Pound-Rupee | 94.8860 | +0.31 | +0.33 |
Commodities
| Price | Change | %Change | |
| GOLD | 51259.00 | +360.00 | +0.71 |
| SILVER | 62520.00 | +184.00 | +0.30 |
| CRUDEOIL | 8460.00 | +195.00 | +2.36 |
Market Recap
In this week’s recap, we shall discuss the LIC IPO, Upstox taking a lead, the biggest FMCG company in India, the RBI’s surprise, Q4 Results, L&T’s Merger and more.
LIC IPO: Here’s what you need to know about the insurance behemoth’s IPO
The LIC IPO was subscribed to 67% on day 1 and 103% on Day 2. Its retail portion got fully subscribed on Day 3.
Government-owned State Bank of India (SBI) on Friday said that it will keep all branches open on May 8th to accept applications for LIC’s IPO. The RBI has directed all ASBA designated branches to remain open for the mega IPO on Sunday. Source
The Grey market premium prevailing on Friday was ₹ 65 per share.
Upstox zoom passed Zerodha in terms of the number of users
Upstox doubled its user base from 5 million six months ago to more than 10 million this month. This number is 1 million more than Zerodha which has 9 million users.
However, Zerodha takes the lead when it comes to the number of active users. It has 6.2 million active users, whereas Upstox has only 5 million active users as per FY22 data.
Upstox aims to have a user base of anywhere between 25 and 30 million by the end of FY23. It aims to be a wealth management platform and will look at adding more products to allow its customers to manage all investments in one place.
This Adani Group Company beat HUL to become the biggest FMCG Company in India
Most stocks of the Adani group rallied in the past few weeks. Thanks to the spiralling inflation on account of the Russia Ukraine war, the hike in the rates by the US Fed and other geopolitical factors.
Recently Adani Wilmar beat Hindustan Unilever Ltd to become the largest FMCG company in India in terms of revenue.
It reported total revenue from operations of ₹ 54,214 crores for FY22 whereas HUL reported yearly revenue of ₹ 51,468 crores during the same period.
The RBI hiked interest rates and took the market by surprise
The central bank hiked the policy repo rate under the liquidity adjustment facility (LAF) by 40 basis points to 4.40% with immediate effect, on Wednesday.
It adjusted the standing deposit facility to 4.15%, the marginal standing facility (MSF) rate and the Bank Rate to 4.65%.
Markets snapped on Wednesday as RBI surprised by hiking the repo rate by 40 basis points sending shockwaves among investors.
L&T Infotech and Mindtree Merger to become 5th largest IT service provider in India
Mindtree and LTI approved a composite scheme of amalgamation of both these independently listed IT services companies under the Larsen & Toubro Group.
They will join strengths to create an efficient and scaled up IT services provider exceeding $3.5 Bn.
All shareholders of Mindtree will be issued shares of LTI in the ratio of 73 shares of LTI for every 100 shares of Mindtree.
Q4 Results that delighted the D-Street
Adani Power reported a multifold rise in profit after tax (PAT) at ₹ 4,645 crores as against ₹ 13 crores in the corresponding quarter last year, with Consolidated revenue of ₹ 13,308 crores (up 93%). It gained 5% in share prices on Friday.
Indus Towers‘ net profit jumped 34.1% to ₹ 1,828.50 crores. Its net sales increased 9.6% to ₹ 7,116.30 crores.
Kotak Mahindra Bank today reported a net profit of ₹2,767 crores, up 65% from ₹1,682 crores in Q4FY21, on a standalone basis.
Exide Industries on Thursday reported a consolidated net profit of ₹ 3,953 crores for Q4FY22, up 1135.31%.
Q4 Results that disappointed the D-Street
Tyre major Ceat reported an 84 per cent decline in its consolidated net profit to ₹ 25 crores. Its revenue from operations increased from ₹ 2,290 crores to ₹2,592 crores.
Voltas Ltd, a Tata Group company reported a 23% year-on-year (YoY) decline in its quarterly consolidated net profit at ₹182.7 crores. Its income stood at ₹2,703.7 crores, up 0.7% YoY.
Morepen Laboratories’ consolidated net profit declined by 55% to ₹ 12 crores for Q4 FY22. Its total income increased from ₹ 291 crores to ₹ 371 crores. The scrip lost 2.69% on Friday.
