Market off day's low; Venus Pipes and Tubes fully subscribed

The domestic benchmark indices pared losses during mid-morning trade. The sectoral indices on the NSE were in red. The Nifty index traded above the 16,100 level.

At 11:21 IST, the barometer index, S&P BSE Sensex was down 377.08 points or 0.69% to 53,987.77. The Nifty 50 index fell 101.80 points or 0.63% to 16,138.25.

In the broader market, the S&P BSE Mid-Cap index shed 0.51% while the S&P BSE Small-Cap index declined 1.85%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 651 shares rose while 2,513 shares fell. A total of 115 shares were unchanged.

IPO Updates:

Prudent Corporate Advisory Services: The initial public offer (IPO) of Prudent Corporate Advisory Services received bids for 26,00,771 shares as against 60,18,689 shares on offer, according to stock exchange data at 11:33 IST on Wednesday (11 May 2022). The issue was subscribed 43%.

The issue opened for bidding on Tuesday (10 May 2022) and it will close on Thursday (12 May 2022). The price band of the IPO is fixed at Rs 595-630 per share. The company will offer a discount of Rs 59 per share to eligible employees. The offer includes a reservation of shares worth upto Rs 6.50 crore for eligible employees. An investor can bid for a minimum of 23 equity shares and in multiples thereof.

Delhivery: The initial public offer (IPO) of Delhivery received bids for 20,95,560 shares as against 6,25,41,023 shares on offer, according to stock exchange data at 11:33 IST on Wednesday (11 May 2022). The issue was subscribed 3%.

The issue opened for bidding on Wednesday (11 May 2022) and it will close on Friday (13 May 2022). The price band of the IPO is fixed at Rs 462-487 per share. An investor can bid for a minimum of 30 equity shares and in multiples thereof.

Venus Pipes and Tubes: The initial public offer (IPO) of Venus Pipes and Tubes received bids for 39,64,188 shares as against 35,51,914 shares on offer, according to stock exchange data at 11:36 IST on Wednesday (11 May 2022). The issue was subscribed 1.12 times.

The issue opened for bidding on Wednesday (11 May 2022) and it will close on Friday (13 May 2022). The price band of the IPO is fixed at Rs 310-326 per share. An investor can bid for a minimum of 46 equity shares and in multiples thereof.

Buzzing Index:

The Nifty IT index declined 1.11% to 30,089.95. The index fell 2.09% in two trading sessions from its previous closing high of Rs 30,733.30 posted on 9 May 2022.

Among the components of the Nifty IT index, L&T Technology Services (down 2.59%), Mphasis (down 2.06%), Infosys (down 1.79%), Larsen & Toubro Infotech (down 1.3%) and HCL Technologies (down 1.2%) were the top losers.

Among the other losers were Wipro (down 1.07%), Tata Consultancy Services (TCS) (down 0.94%), Mindtree (down 0.79%) and Tech Mahindra (down 0.2%).

On the other hand, Coforge (up 1.36%) edged lower.

Earnings Impact:

Cipla rose 0.37%. The company's consolidated net profit fell 12.4% to Rs 362 crore on 14.2% increase in total revenue from operations to Rs 5,260 crore in Q4 March 2022 over Q4 March 2021. On a consolidated basis, EBITDA fell 4.2% year-on-year to Rs 763 crore in Q4 March 2022. EBITDA margin stood at 14.5% in Q4 March 2022, lower than 17.3% in Q4 March 2021. During the quarter, Cipla's One India business grew 21% YoY across branded prescription, trade generics and consumer health; 15% YoY growth adjusted for covid portfolio. The SAGA region grew by 8% YoY basis in USD terms; private business grew 17% on a YoY basis in ZAR terms. SAGA includes South Africa, Sub-Saharan and Cipla Global Access business. US core formulation revenue stood at multi-quarter high of $160 million, a 17% YoY growth. It reported strong traction in respiratory assets as well as contribution from peptide assets. Cipla's R&D investments stands at Rs 322 crore or 6.1 % of sales; Higher by 16% YoY driven by initiation of clinical trials on a respiratory asset. For the year, consolidated net profit rose 4.7% to Rs 2,517 crore on 13.6% increase in total revenue from operations to Rs 21,763 crore. EBITDA rose 6.4% YoY to Rs 4,578 crore in FY22.

Gujarat Gas jumped 7.38%. The company reported 30.5% jump in standalone net profit to Rs 453.28 crore on a 36% rise in net sales to Rs 4,669.39 crore in Q4 FY22 over Q4 FY21. Profit before tax in Q4 FY22 stood at Rs 586.66 crore, up by 26.2% from Rs 464.89 crore in Q4 FY21. During the quarter, the company registered a total gas sales volume of 9.89 million metric standard cubic metre per day (mmscmd). Industrial sales volume was 6.70 mmscmd and CNG sales volume was 2.23 mmscmd in Q4 FY22. PNG domestic and commercial sales volumes during the period under review aggregated to 0.82 mmscmd and 0.14 mmscmd, respectively. The city gas distribution (CGD) company recorded 2.1% rise in standalone net profit to Rs 1,294.57 crore on a 66.8% increase in net sales to Rs 16,456.22 crore in FY22 over FY21.

Torrent Power declined 1.28%. Torrent Power reported a consoldiated net loss of Rs 488.04 crore on the back of an exceptional item of Rs 1300 crore in Q4 FY22. The integrated power utility arm of Torrent Group recorded an exceptional loss of Rs 1,300 crore in Q4 FY22. The company said based on the assessment, recoverable value of PPE by using value-in-use stood at Rs 1,378.90 crore, lower than the carrying amount of Rs 2,678.90 crore. Accordingly, Torrent Power reported an additional impairment loss of Rs 1,300.00 crore which has been disclosed as an exceptional item. The power utility company reported a net profit of Rs 369.9 crore in the corresponding quarter last year. Revenue from operations rose 21.4% to Rs 3,743.65 crore in Q4 FY22 from Rs 3,084.13 crore posted in Q4 FY21. The company reported a pre-tax loss of Rs 703.33 crore in Q4 FY22 as compared with a profit before tax of Rs 455.28 crore posted in Q4 FY21. EBITDA rose 15% to Rs 1088 crore in Q4 FY22 as compared to Rs 947 crore in Q4 FY21. On full year basis, the company reported a 64.8% decline in the net profit to Rs 453.97 crore despite a 17% rise in net sales to Rs 14,257.61 crore in financial year ended 2022 over financial year ended 2021.

Global Markets:

Asian stocks advanced across the board on Wednesday as investors watched for market reaction to the release of higher-than-expected Chinese inflation data for April. The producer price index (PPI) rose 8% year-on-year, the National Bureau of Statistics (NBS) said in a statement on Wednesday, following an 8.3% rise in March. Consumer inflation also rose more than expected. The consumer price index (CPI) gained 2.1% from a year earlier, the fastest pace in five months, speeding up from 1.5% growth in March.

In US, the S&P 500 and Nasdaq ended higher on Tuesday, with big growth shares rising after the previous day's selloff as Treasury yields tumbled. Bank shares fell along with yields.

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