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CLOSING BELL: Dismal March quarter earnings by HDFC Bank & Infosys, coupled with fears of aggressive rate hikes amid rising inflation, soaring bond yields, & resurgence in Covid-19 cases hit sentiment

Bear market, Stock market

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		<b>CLOSING BELL</b><br />
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			Dismal March quarter earnings by HDFC Bank and Infosys, coupled with global headwinds such as likely aggressive rate hikes amid rising inflation, soaring bond yields, and resurgence in Covid-19 cases in parts of the world, weighed on investor confidence on Monday.</div>
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			The benchmark S&P BSE Sensex tanked nearly 1,500 points intra-day to hit a low of 56,842. It, however, erased losses mildly to end at 57,167, down 1,172 points or 2 per cent. On the NSE, the Nifty50 tumbled about 400 points intra-day to slip below the 17,100-mark. It ended at 17,174, down 302 points or 1.7 per cent.</div>
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			Infosys was the biggest laggard on the 30-pack index as it shed 7.2 per cent. The stock reported its sharpest intra-day fall in past two years. Earlier, on March 23, 2020, Infosys had plunged 12 per cent in the intra-day trade on the BSE, data shows. <a href="https://www.business-standard.com/article/markets/infosys-records-sharpest-intra-day-fall-in-2-yrs-post-weak-q4-nos-tanks-9-122041800154_1.html" target="_blank"><strong>READ MORE</strong></a></div>
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			Similarly, shares of HDFC Bank cracked about 4.7 per cent after the lender&#39;s operating perfornmance hit multi-year low. <a href="https://www.business-standard.com/article/markets/hdfc-bank-q4-result-analysis-merger-valuation-concerns-may-weigh-in-near-term-say-analysts-122041800229_1.html" target="_blank"><strong>READ MORE</strong></a></div>
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			<a href="https://www.business-standard.com/markets-stocks" target="_blank"><strong>Check other gainers and losers on the index here</strong></a></div>
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			In the broader markets, the BSE MidCap and SmallCap indices slipped aboput 1 per cent. Sectorally,the Nifty IT index plunged over 4 per cent, the Nifty PSU Bank index 2.3 per cent, and the Nifty Financial Services and Bank indices up to 2 per cent. The Nifty FMCG index, on the other hand, added 0.7 per cent.</div>
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			<strong>Key reasons for market fall</strong></div>
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			The sacrosanct support of &#39;20-day EMA&#39; is positioned at 17,450 for the Nifty, which coincides with the breakout point of the previous congestion zone. Till the time Nifty holds 17,400 &ndash; 1,200, we remain hopeful of some recovery.<a href="https://www.business-standard.com/article/markets/sensex-tanks-1-300-points-in-trade-today-key-reasons-behind-the-sharp-fall-122041800244_1.html" target="_blank"><strong> READ MORE</strong></a></div>
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			<strong>Global markets</strong></div>
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			Asia markets struggled for direction on Monday, with investors reacting to the release of Chinese economic data, including first-quarter gross domestic product figures. In Japan, the Nikkei 225 fell 1.08 per cent to close at 26,799.71 as shares of Fast Retailing declined 1.25 per cent. The Topix index shed 0.86 per cent to 1,880.08.</div>
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			Mainland Chinese stocks closed mixed, with the Shanghai composite down 0.49 per cent to 3,195.52 and the Shenzhen component climbing 0.368 per cent to 11,691.47.</div>
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			Meanwhile, the benchmark 10-year US Treasury yield rose Monday to a level not seen in more than three years, as traders continued to assess rising inflation.</div>
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			The yield on the 10-year Treasury note rose 5 basis points to 2.866 per cent, a level last seen in late 2018. The yield on the 30-year Treasury bond jumped 2 basis points to 2.942 per cent.&nbsp;</div>
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Sensex sinks 1,172 pts, Nifty below 17,200; Infosys tanks 7%, HDFC Bank 5%

Business Standard

Ferguson Maidment & Co audited the annual accounts that Adani Energy Holdings and its subsidiaries filed with British government agency Companies House last month, FT reported


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Russia-Ukraine War

The year 2022 is coming to an end and a lot has happened that shaped the world in the year. Let's have a look at some of these significant events

In February 2022, Russia attacked Ukraine&amp;#39;s capital, Kyiv, from the north in an attempt to overthrow President Volodymyr Zelensky&amp;#39;s government. In the months following, artillery bombardment and street fighting continued, with Russia seizing multiple cities.

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After a slew of scandals in his term spanning three years, UK Prime Minister Boris Johnson resigned from office in July. Johnson was succeeded by Liz Truss, who took over the office in September.
						
						But after 45 days in the office, she resigned, becoming the shortest-serving PM in UK history. Her budgetary plans, at the centre of which were tax cut plans, had crashed the markets, making her lose the confidence of almost all her own MPs.
						
						In the days that followed, Rishi Sunak took over as Britain&amp;#39;s 57th prime minister and vowed to fix the mistakes made by his predecessor, Liz Truss.

Russia Invades Ukraine

In April, protests began in the nation following a sharp rise in food and fuel costs. Thousands demanded the resignation of now-ousted President Gotabaya Rajapaksa. The people faced long power cuts daily and shortages of basics, including fuel and food. Sri Lanka&amp;#39;s doctors said they were nearly out of life-saving medicines.
						
						Rajapaksa&amp;#39;s government was being blamed for the chronic mismanagement of the country&amp;#39;s finances. In July, protestors stormed Rajapaksa&amp;#39;s home, pushing him to flee the nation before resigning from office.

UK&amp;#39;s political crisis

In September, 22-year-old Iranian girl Mahsa Amini died after being detained for allegedly violating Iran&amp;#39;s laws requiring women to wear a headscarf. Authorities said she died of illness, but her family claimed she fell into a coma after being mistreated by the police. Sources said the police beat Amini with a baton and banged her head against a vehicle. At her funeral on September 17 in Saqez, women protested by ripping off their hijabs. Protests sparked by her demise have since roped in ethnic minorities and even school children. Thousands of women since then have been showing solidarity by cutting their hair and burning their hijabs in public.
						
						Now, the unrest has spread beyond a women&amp;#39;s right to a movement that is calling for an end to theocratic rule. The protests are now the most broadly supported movement in Iran in over four decades.

Sri Lanka economic crisis

In October, Chinese President Xi Jinping was handed a historic third term in office. He became the first leader of the ruling Communist Party after party founder Mao Zedong to get a third term in power.
						
						This came as China&amp;#39;s economy was running out of steam after decades of high growth. Many expect Xi&amp;#39;s third term may see China revert to more old-school economic management, focusing on shoring up the heavy industry and continuing a crackdown on big tech.

Uprising mounts again in Iran

In a historic first, rich countries agreed to pay for losses and damages caused by climate change. For 30 years, developing nations have been calling for developed countries to compensate for the costs of climate disasters caused by climate change. And rich nations that caused the pollution resisted the demand. But this changed in 2022.

Chinese President Xi Jinping starts record third term in power

In 2022, inflation was rising worldwide, with food and energy prices hitting record highs. The hike was mainly driven by pent-up consumer demand after the pandemic and Russia&amp;#39;s invasion of Ukraine. As the pandemic waned, people wanted to return to normalcy and spend more. This led to companies demanding higher prices. Companies also hired more to serve the pent-up demand. They had to increase wages to attract workers and raise prices to compensate for that.

A landmark deal UN Climate Change Conference (COP27)

In September, Queen Elizabeth II, Britain&amp;#39;s longest-serving monarch, died at 96 after reigning for 70 years. Many said her death would mark a turning point for commonwealth nations as many may disassociate themselves.

The global economy at crossroads

In October, Brazil&amp;#39;s former president, Luiz In&amp;aacute;cio Lula da Silva beat Jair Bolsonaro in the country&amp;#39;s closest presidential race in history. Silva&amp;#39;s win marked Latin America&amp;#39;s shift to the left and pointed to an extraordinary comeback for a man in jail for corruption three years ago.

Queen Elizabeth II dies

In October, billionaire Elon Musk closed his $44 billion deal to buy Twitter after months of dilly-dallying, drama and a lawsuit. The Tesla owner&amp;#39;s Twitter takeover is also one of the biggest tech acquisitions of all time. May fear that Musk&amp;#39;s takeover may turn the social media giant into a hotbed of hate speech.
					
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Brazil elections

Google Messages

In January, Google rolled out end-to-end encryption in group chats for messages app users enrolled in the beta programme

Blend launches Blend Studio: AI tool for ecommerce photography

New Delhi [India], March 16 (ANI/PNN): Blend, an AI-powered design and photography application for DTC brands and ecommerce sellers, recently launched Blend Studio - the Chat GPT for product photos.

Celebrity and Travel Photographer Rahul Lokare from Flamingo Productions creates waves of change in the world of photography.

Xiaomi 13 Pro

Priced at Rs 79,999 for the 12GB RAM and 256GB on-board storage, the Xiaomi 13 Pro offers a novel imaging experience on top of a premium package

Market view: S Ranganathan, Head of Research at LKP Securities

<blockquote>
	<p>
		Indices opened gap down on the back of weak global cues as the federal reserve tightens policies to tame inflation. Benchmark Indices never really recovered during the day from the twin blow of the IT Index &amp; the Bank Nifty with rising oil prices and inflationary pressures adding to the woes. The broader markets did see buying interest in select pockets like Defence, Paper &amp; Fertilisers on the back of continued positive tailwinds.</p>
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Market view: Vinod Nair, Head of Research at Geojit Financial Services

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		Unfavourable start to earnings season in heavyweight stocks of IT and banking sector led to heavy sell-off. Lower-than-expected results prompted the market to worry about the headwinds faced by IT sector like attrition, wage inflation, lower utilization, and cut in IT spending by industries due to geopolitical and macro issue. The degree of downfall is high because the sector was trading at high valuation and risk of a downgrade in outlook has increased.</p>
</blockquote>

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Rupee slips 6 paise to close at 76.25 (provisional) against US dollar</p>&mdash; Press Trust of India (@PTI_News) <a href="https://twitter.com/PTI_News/status/1515996822036094978?ref_src=twsrc%5Etfw">April 18, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

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Closing bell: Over 1,200 stocks declined while 848 advanced

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Closing bell: Nifty IT worst sectoral performer; Infosys bleeds most in 8-months

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Closing bell: Infosys, HDFC Twins, Tech Mahindra top Nifty 50 losers

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Closing bell: NTPC, SBI Life, HDFC Life top Nifty 50 gainers

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Closing bell: Barring Auto & FMCG, all sectors sink in red

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Closing bell: Broader markets subdued; India Vix spikes to over 8%

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Closing bell: Only 10 Sensex stocks close in positive zone

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Closing bell: Sensex sheds over 1,150 points

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Closing bell: Nifty 50 closes below 17,200 levels

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Fertilizer stocks firm up; Chambal Fertilizers rallies over 6%

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L&T Infotech and Mindtree to merge to create $22-bn firm: Report

Larsen &amp; Toubro Ltd. is weighing a merger between two of its publicly traded software firms, according to people familiar with the matter, as the Indian conglomerate seeks scale to compete with global digital giants. <a href="https://www.business-standard.com/article/companies/l-t-infotech-and-mindtree-to-merge-to-create-22-bn-firm-report-122041800554_1.html?1650274867" target="_blank"><strong>READ MORE HERE</strong></a><br />
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	<img align="" alt="Company should follow A M Naik’s footsteps to thwart L&amp;T’s takeover bid 	Photo: Saggere Radhakrishna" class="imgCont" height="464" src="https://bsmedia.business-standard.com/_media/bs/img/article/2019-03/26/full/1553542449-8373.jpg" style="border: 1px solid #DDD; margin-right: 10px; padding: 1px; float: left; z-index: 0; width:100%" title="Mindtree" width="620" /></div>
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Cement stocks edge lower; India Cements declines over 3%

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Gold prices hit 1-month high as Ukraine crisis dulls risk appetite

Gold prices rose on Monday to their highest since mid-March, as the uncertainty surrounding the Russia-Ukraine conflict dampened risk sentiment and drove investors towards the safety of bullion. <a href="https://www.business-standard.com/article/markets/gold-prices-hit-1-month-high-as-ukraine-crisis-dulls-risk-appetite-122041800421_1.html?1650273716" target="_blank"><strong>READ MORE HERE</strong></a><br />
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	<img align="" alt="Photo: Bloomberg" class="imgCont" height="464" src="https://bsmedia.business-standard.com/_media/bs/img/article/2021-12/06/full/1638778503-3483.jpg" style="border: 1px solid #DDD; margin-right: 10px; padding: 1px; float: left; z-index: 0; width:100%" title="gold" width="620" /></div>

Sarda Energy gains over 3.5%; to consider buyback on April 23

SECTOR OUTLOOK :: Why IT sector may underperform in near-term

Nifty IT is underperforming Nifty 50 due to supply-side pressures, the possibility of reduction in demand due to macro headwinds in the western nations, and overstretched valuations.<br />
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Indian IT sector is trading at 28x 1-year forward P/E vs. past 10-year P/E of 18x, thus leaving a little room for potential upside in the short to medium term.<br />
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Both TCS and Infosys results had a common theme, attrition remains at an all-time high, competitive intensity is increasing and companies are losing their pricing power, wage hikes, a gradual return to the office, and an increase in discretionary spending will put pressure on EBIT margins.<br />
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There is a consensus among IT companies that the clients are willing to spend for digitization regardless of their financial conditions and industry position. But this phenomenon might change due to inflationary headwinds and weak global economic cues, which will affect the client&rsquo;s ability to pay, thus reducing their discretionary spending towards digitization.<br />
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Another point to note is that the global interest rates are rising, therefore money is moving from growth stocks to value stocks.<br />
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In short, we believe that the IT sector will underperform in the short to medium term.<br />
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<em>Views by: Santosh Meena, Head of Research, Swastika Investmart Ltd.</em>

Sensex sinks 1,172 pts, Nifty below 17,200; Infosys tanks 7%, HDFC Bank 5%

CLOSING BELL: Dismal March quarter earnings by HDFC Bank & Infosys, coupled with fears of aggressive rate hikes amid rising inflation, soaring bond yields, & resurgence in Covid-19 cases hit sentiment

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