Sensex, Nifty to rise; Coal India, Infosys, IndiGo, Vodafone Idea, Hindalco shares eyed

The Indian equity benchmarks, the BSE Sensex and the NSE Nifty, are set to open higher on Thursday, tracking mixed cues from Asian peers and a strong finish on Wall Street overnight. The positive trends on SGX Nifty also indicated a gap-up opening for the domestic bourses, with SGX Nifty futures trading 84 points, or 0.53%, higher at 16,105 on the Singapore Stock Exchange at 8:20 AM. The market will see stock specific movement as a slew of companies such as Hindalco Industries, Zee Entertainment, Berger Paints, Colgate Palmolive, NMDC, Oberoi Realty, are slated to release their results today.

On Wednesday, the domestic bourses ended lower for the third straight session as continued fund outflows by foreign investors and a rise in crude prices weighed on market sentiment. Reversing opening gains, the 30-share BSE Sensex ended 303 points, or 0.56%, lower at 53,749, and the broader NSE Nifty declined 99 points, or 0.62%, to settle at 16,026. The top losers on the BSE Sensex pack were Asian Paints, TCS, Tech Mahindra, Wipro, Larsen & Toubro, Infosys, HCL Tech, and SBI.

Stocks to watch

IndiGo: India's largest airline has posted a net loss of ₹1,681 crore in the quarter ended March as the Omicron variant hit the country's aviation sector earlier this year. The company's net loss stood at ₹1,147 crore in the same period last year. Revenue from operations jumped 28.9% year-on-year to ₹8,020 crore aided by a strong traffic rebound in the latter half of the quarter.

Adani Ports and Special Economic Zone Limited (APSEZ): The Adani group firm has reported a 21.78% decline in consolidated net profit to ₹1,033 crore for Q4FY22, compared to ₹1,321 crore in the corresponding period of the previous fiscal. Consolidated total income rose to ₹4,417.87 crore for the fourth quarter of the last fiscal as against ₹4,072.42 crore in the year-ago period.

Coal India: The state-owned coal miner has reported 46% growth in its net profit for the quarter ended March 31, 2022 in consolidated terms. India’s biggest coal miner had posted a consolidated net profit of ₹4,586.78 crore in the year-ago period. The company registered sales worth ₹30,046.25 crore during the quarter under review compared with ₹24,510.80 crore.

Bharat Petroleum Corporation Ltd (BPCL): The state-owned oil company posted a 82% slump in net profit at ₹2,131 crore in the quarter ended March 2022, due to decline in margins amid rise in international crude prices. The revenue from operations climbed 25% YoY to ₹1.23 lakh crore.

Bata India: The shoemaker posted over two-fold increase in its consolidated net profit at ₹62.96 crore for the fourth quarter ended March 31, 2022. Its revenue from operations rose 12.77% to ₹665.24 crore, versus ₹589.90 crore in Q4FY21.

National Aluminium Company Ltd (NALCO): The company posted a 9.5% YoY growth in consolidated profit at ₹1,025.46 crore for the quarter ended March 2022 on the back of higher income. Its consolidated income surged to ₹4,492.10 crore as against ₹2,874.47 crore a year ago.

Natco: The drug maker said that Johnson & Johnson and Momenta Pharmaceuticals have filed a patent infringement lawsuit against the company and its marketing partner Mylan Pharmaceuticals Inc, along with others, in the U.S.

Hindustan Zinc: The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the sale of the government’s remaining 29.5% stake in the mining company, as the Centre looks to accelerate its disinvestment drive. The transaction is expected to fetch the Centre ₹38,062 crore as per the company’s closing price on Wednesday.

Fortis Healthcare: The hospital chain has registered a 40% YoY rise in consolidated net profit at ₹87.03 crore in the fourth quarter ended March 31, 2022. The consolidated revenue from operations during the quarter under review stood at ₹1,378.1 crore as against ₹1,252,44 crore in the year-ago period.

Apollo Hospitals Enterprises: The healthcare firm saw its consolidated profit after tax declining by 46% YoY to ₹90 crore for the fourth quarter ended on March 31, 2022. The revenue from operations, however, increased to ₹3,546 crore in the fourth quarter as against ₹2,868 crore in the same period last year.

Vodafone Idea: Markets regulator Sebi has exempted the central government from making an open offer to the telecom major’s shareholders for its proposed acquisition of over 33% stake in the company on conversion of dues into equity.

Whirlpool of India: The consumer durables maker posted a 35% YoY drop in consolidated net profit to ₹84.48 crore for the fourth quarter ended in March 2022, weighed down by weak demand and higher input costs. Its revenue from operations was down by 4.07 per cent at ₹1,706.91 crore during the quarter under review as against ₹1,779.39 crore in the same period of the previous fiscal.

Torrent Pharmaceuticals: The pharma company reported a net loss of ₹118 crore for the fourth quarter ended March 31, 2022, compared with profit of ₹324 crore in the corresponding quarter of last year. Its revenue, however, rose by 10% YoY to ₹2,131 crore in Q4 FY22, driven by strong growth momentum in branded generic markets.

Here are the key things investors should know before the market opens today:

Wall Street closes higher post Fed minutes

In the overnight trade, the U.S. indices ended higher after minutes from the Federal Reserve's latest monetary policy meeting eased recession concerns. The minutes from May meeting indicated that policymakers unanimously felt the U.S. economy was in strong shape, despite rising inflation and there was no sign of a recession. The Dow Jones Industrial Average ended 0.6% higher, S&P 500 rose 0.95%, and the Nasdaq Composite rallied 1.51%.

Asian stocks trade mixed

Shares in the Asia-Pacific region traded mixed in early deals on Thursday, undermining a strong finish on Wall Street overnight, as traders weighed a stark warning on China’s economy by Premier Li Keqiang. The Chinese politician said that the world’s second-largest economy may struggle to record positive growth in the current quarter due to economic disruption caused by the Covid-19 lockdowns.

Reacting to the news, shares in the mainland China and Hong Kong slipped in red. In the mainland China, the Shenzhen Component and the Shanghai Composite traded marginally lower.

The Hang Seng index in Hong Kong dropped 0.7%, while Indonesia’s Jakarta Composite and Taiwan’s Weighted index 0.4% and 0.2%, respectively.

Bucking the trend, Japan’s Nikkei 225 traded flat with positive bias, while South Korea’s KOSPI rose 0.5%. The Straits Times Index in Singapore rallied over 1%.

Crude prices steady at $111

The price of Brent and U.S. crude were steady on early trade on Thursday as the long-term outlook for oil prices remained bullish on prospects of improving fuel demand in China with easing Covid-19 restrictions. In Asian trading hours, the Brent oil for July delivery rose 0.5% to $111.5 per barrel, while the U.S. West Texas Intermediate (WTI) crude July futures rose 0.85% to $110.9 a barrel.

FIIs remain net sellers, DIIs net buyers

The foreign institutional investors (FIIs) extended their selling spree in the Indian equity market on May 25, while domestic institutional investors (DIIs) continued to support the market. As per the exchange data, FIIs net sold shares worth ₹1,803.06 crore, while DIIs net purchased shares worth ₹2,229.82 crore.

Corporate earnings

The major companies that are expected to release their March quarter earnings today include Hindalco Industries, Zee Entertainment Enterprises, Muthoot Finance, Aarti Surfactants, Aban Offshore, AllCargo Logistics, Ansal API, Astrazeneca Pharma, Berger Paints, Colgate Palmolive India, Cummins India, Good Year India, Gujarat State Fertilizers Corporation, India Glycols, Jet Airways, Kirloskar Industries, Chemcon Speciality Chemicals, Motherson Sumi Systems, NMDC, Oberoi Realty, Page Industries, Prestige Estate Projects, Quess Corp, Shalimar Paints, and Sudarshan Chemicals.