Trends in Secondary Markets:

BSE Sensex started bullish in the month of April and crossed 60,000 points on 5th April, however it soon corrected and closed at 57,601 in April end 2022, down by 2.57% in the month. Nifty 50 closed at 17,103 that is 2.07% correction in the month of April. The correction was on account of inflation concerns, climbing U.S. bond market yields, strengthening dollar and weaker than expected Q4 results of IT companies like Infosys and blue chip companies like HDFC. Global markets have also remained weak as investors expect tightening of policies by central banks to address inflation.

 

Foreign Institutional Investors (FIIs) divested Rs. 40,652 Crore (Net Sales) while Domestic Institutional Investors (DIIs) invested Rs. 29,870 Crore (Net purchases) from the Indian equity markets in the month of April 2022.

 

 

 

Equity Markets

Apr-22

Mar-22

Change%

Sensex

57,061

58,569

-2.57%

Nifty 50

17,103

17,465

-2.07%

BSE 500

23,552

23,695

-0.61%

BSE Bankex

41,534

41,754

-0.53%

BSE Consumer Durables

42,667

42,272

0.93%

BSE Healthcare

24,341

24,304

0.15%

BSE FMCG

14,082

13,335

5.60%

 

 

 BSE Indices of power, utility, FMCG and Energy showed gains in April while IT, Tech and telecom were down.

  • While IT has corrected in month of April due to overvaluations, IT sector has shown consistent growth. Top three IT service providers, TCS, Infosys and HCL have added almost 2 lakh net recruits in FY2022 showing robust growth in revenue.
  • Infosys has recorded highest annual growth in revenue in a decade, it’s MD commented that Infosys has robust deal pipeline to have 13 to 15% growth in 2023, unlikely to be impacted by prevailing geopolitical issues. Mindtree’s Q4 profit surged by 50% year on year.
  • Metal sector has also been bullish recently. Tata steel MD commented that the steel prices will remain higher in next decade compared to last decade as China decreases its exports and the demand improves around the globe. China has cut down its steel exports to meet its emission goals.
  • Reliance Industries has reported 22.5% rise in Q4 profit on account of high oil refining margins due to Russia-Ukraine war, steady growth in telecom and growth in retail business.

 

Primary market Update:

There were three main board IPOs of Uma Exports Limited, Veranda Learning Solutions Limited and Hariom Pipe Industries Limited in April 2022 as against none in March 2022. There were three SME IPOs of Dhyaani Tile and Marblez Ltd., Sunrise Efficient Marketing Limited and Eighty Jewellers Limited as against four SME IPOs in March 2022.

Particulars

Feb-22

Mar-22

I. Equity Issue

9,671

4,461

a. IPOs (i+ii)

6,831

175

    i. Main Board

6,749

0

    ii. SME Platform

82

175

b. FPOs

0

0

c. Equity Rights Issue

112.64

878.9

d. QIP/IPP

1,952

2,079

e. Preferential Allotment

775

1,329

II. Debt Issue

49,999

77,732

     a. Debt Public Issue

695

178

     b. Private Placement of Debt

49,304

77,554

Total Funds Mobilised (I+II)

59,670

82,193

Acknowledgements: 

RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)

Disclaimer:

This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.

This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction. 

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