Overnight Digest: Stocks to be kept an eye on May 20
On an intraday basis, India VIX jumped 10.15 per cent to settle at 24.56 level on Thursday.
Due to the global sell-off, the Indian equity markets traded under pressure with Sensex rattling 1,416.30 points or 2.61 per cent ending at 52,792.23 level while Nifty declining 430.90 points or 2.65 per cent at 15,809.40 level.
Wipro, HCL Technologies, TCS, Tech Mahindra, and Infosys were among the top Nifty losers while the gainers included ITC, Dr Reddy's Laboratories, and Power Grid Corporation. On Sensex, ITC, Dr Reddy's Laboratories, and Power Grid Corporation were the only gainers.
On the sectoral front, all the indices ended in the red with metal & IT indices falling between 4 and 5 per cent. Mirroring the benchmark indices, BSE Midcap and Smallcap indices lost over 2 per cent each.
Keep a watch on these stocks for Friday's trading session -
ITC - In an otherwise weak market, the share of ITC hit over a three-month high rising 5 per cent on an intraday basis. The company reported strong results with a growth of around 9 per cent in the cigarette volume for Q4FY22. A final dividend of Rs 6.25 per share is also recommended by the company. On a YoY basis, it reported an 11.60 per cent increase in consolidated net profit, standing at Rs 4,260 crore led by growth across segments. Consolidated revenues recorded at Rs 17,754 crore, growing 15.25 per cent from Rs 15,404 crore in Q4FY21.
HDFC Bank - Plunging 26 per cent since the announcement of the merger with the housing finance company, HDFC Ltd, the stock of HDFC Bank hit a new 52-week low during the first half of Thursday's trading session. On April 4, HDFC and HDFC Bank announced that their boards have approved an all-stock amalgamation of the former into the latter to create a banking behemoth, subject to regulatory approvals. On the daily charts, the stock is trading below all its key moving averages whereas the RSI & MACD indicators are showing weak indications.
IT stocks - The IT stocks traded on a weak note during Thursday's trading session with BSE IT index falling beyond 5 per cent on talks that foreign brokerage firm JP Morgan has downgraded the IT sector and also, cut target multiples. Among the individual stocks, Infosys, Tech Mahindra, Wipro, Larsen & Toubro Infotech, Coforge, Mphasis, L&T Technology Services, and Mindtree slipped in the range of 5.3 per cent to 8 per cent. Despite the weak performance, the top IT stocks within BSE IT index that gained up to 6.2 per cent were Expleo Solutions, 63 Moons Technologies, Nelco, Cigniti Technologies, and Hinduja Global Solutions.
Lupin - The shares fell to a two-year low of Rs 622, declining 9 per cent due to a disappointing set of numbers for Q4FY22. The company reported a consolidated loss of Rs 512 crore, on higher manufacturing costs as against a consolidated profit of Rs 464 crore reported in Q4FY21 whereas Rs 549 crore in the previous quarter Q3FY22. On a YoY basis, Lupin’s revenue improved 3 per cent to Rs 3,883 crore wherein, domestic formulations grew 5 per cent to Rs 1,351 crore while US revenues squeezed 5 per cent to Rs 1,416 crore. The share closed 7 per cent lower at Rs 635.4 per share on Thursday.