Weekly Market Analysis: Dalal Street closes lower on negative sentiments; RIL, HDFC, Airtel and Infosys in news

Benchmark indices closed lower as overall negative sentiments prevailed among investors due to the ongoing Russia-Ukraine conflict and higher commodity prices. For the week, the Nifty fell 0.78% to 17,153 and the Sensex lost 0.87% to close at 57,362.20.

Top losers among Nifty sector indices were FMCG [-3.43%], Bank [-2.8%], Auto [-2.1%], PSU Bank [-1.5%]. Top gainers were Media [6.95%], Metal [5.12%], Energy [2.1%] and IT [1.43%].

FIIs selling in the cash segment continued and they were net sellers for Rs 5,344.4 crore and DIIs were net buyers for Rs 2,820.8 crore.

Oil prices remained elevated with Brent Crude trading at $120.65 per barrel and WTI Crude trading at $113.90 a barrel.

Company News

Reliance Industries Ltd (RIL): The company’s telecom arm Reliance Jio is raising about Rs 5,600 crore through an offshore syndicated loan, the Economic Times newspaper reported, citing two sources with direct knowledge of the matter. The funds raised will be used for future capacity expansion and the agreement is likely to be signed this week. Bank of America, Credit Agricole, HSBC, SBI, Japanese banks MUFG, Mizuho and SMBC are likely to syndicate the five-year offshore loan.

HDFC Ltd: The mortgage lender has approved Rs 2 lakh crore-worth of home loans in FY22. This is the highest ever approvals in a single financial year by the company. HDFC said that demand for housing continues to come from first-time home buyers and those buying bigger homes. The company had approved Rs 1.55 lakh crore in FY21.

Bharti Airtel: Telecom operator said that it has paid Rs 8,815 crore to the government towards part prepayment of deferred liabilities pertaining to spectrum acquired in the 2015 auction. The prepayment is for instalments due in FY2027 and FY2028, the company said in a statement.

Infosys Ltd: The IT bellwether will acquire digital experience and marketing agency, oddity, for a cash consideration of up to 50 million euros. The strategic acquisition will further strengthen Infosys’ digital experience capabilities in Germany, across Europe, and Northeast Asia.

YES Bank: The private-sector lender is in talks with Brookfield and BlackRock for raising capital against 5-10 per cent equity stake via qualified institutional placement (QIP), sources told ET NOW. The bank is also in discussion with multiple private equity players for raising Rs 10,000 crore, the report said.

Jubilant Foodworks: The company will acquire 10% more stake in Jubilant Golden Harvest, from Golden Harvest. After this buyout, Jubilant Food would have 100% stake in Jubilant Golden Harvest, making it a wholly owned subsidiary Jubilant Golden Harvest has franchise rights to develop and operate Domino’s Pizza restaurants in Bangladesh.

Adani Green Energy: The renewable energy company has raised $288 million for its under-construction renewable asset portfolio. The funds will be utilized to finance 450 megawatt solar and wind projects in Rajasthan. With this capital raising, Adani Green’s revolving project finance facility pool has increased to $1.64 billion. Seven international banks, including BNP Paribas, Standard Chartered Bank and Societe General, have funded he facility, which is certified green hybrid project loan.

HDFC Bank, Kotak Mahindra Bank and Axis Bank: The three private-sector banks have been allotted 10 lakh equity shares of face value Rs 10 each by Open Network for Digital Commerce (ONDC) for a consideration of Rs 100 per share, totalling to Rs 10 crore. All the three banks will hold 7.84% of the equity share capital of ONDC.

Zee Entertainment Enterprises Ltd (ZEEL): Invesco Developing Markets Fund, the largest shareholder of the company, said that it had decided not to pursue an extraordinary general meeting (EGM) to add six independent directors as Zee’s merger with Sony will achieve the fund’s aim of strengthening board oversight. Larsen & Toubro (L&T): The engineering conglomerate has approved long-term borrowings of as much as ₹10,000 crore ($1.3 billion), including refinancing, the company said in a regulatory filing. The debt can be via modes including external commercial borrowings, term loans, non-convertible debentures.

Tata Motors: The automaker plans to increase prices of its commercial vehicles from April 1. The price hike will be in the range of 2-2.5%. The decision to hike prices comes amid a rise in price of commodities like steel, aluminium and other precious metals, and higher raw material cost.

Maruti Suzuki India Ltd: The automaker’s parent company Suzuki Motor announced that it would invest Rs 10,440 crore by 2026 to build new electric car and battery factory in India. The Japanese firm has signed a MoU with Gujarat government at the India-Japan Economic Forum.

Tata Consultancy Services (TCS): The IT major has announced that it has been selected by Sodexo, the France-headquartered company, to transform and consolidate its legacy ERP estate on the TCS ERP on Cloud platform, with SAP SoH on Microsoft Azure, to drive its future growth. With this partnership, Sodexo will have a secure, resilient, and scalable cloud infrastructure, 35% leaner than before.

Multi Commodity Exchange of India (MCX): Market regulator Sebi allowed exchanges having a commodity derivative segment to facilitate trading in options on commodity indices. The move is part of efforts to have more products in the commodity derivatives market. Exchanges will have to seek a prior approval from the market regulator before allowing trading in this segment.

Iraprastha Gas Ltd: The company has increased piped natural gas (PNG) prices by ₹1 per cubic meter across cities after global LNG costs jumped. PNG prices have been raised to ₹36.61 in Delhi, ₹35.86 in Noida, Greater Noida and Ghaziabad and ₹34.81 in Gurugram.

Global Markets

Major equity indices in the US ended higher as technology stocks rose and continued rise in many commodity prices boosted energy- and materials-related shares. For the week, the S&P rose 1.79%, the Dow advanced 0.31%, the Nasdaq jumped 1.98%.

Chinese markets fell amid delisting fears for U.S.-listed Chinese companies arising from a simmering bilateral dispute over auditing standards. Chinese regulators also instructed some of the country’s U.S.-listed companies to prepare audit documents for the financial year 2021, Reuters reported, citing unnamed sources. For the week, the large-cap CSI 300 index fell 2.1% and the Shanghai Composite index shed 1.2%, according to Reuters.

Japan’s stock markets rose during the week as investors’ sentiments were boosted by hopes of further economic stimulus by the government and accommodative monetary policies stance by the country’s central bank. Japan’s Nikkei 225 index gained 4.93% and the broader Topix index was up 3.78%.