Overnight Digest: Stocks to be kept an eye on May 13

Inflation data in the US, prediction of rate hikes, all-time low rupee, and aggressive selling portrayed by foreign portfolio investors have drowned the market sentiments.

The benchmark indices continued trading in red for the fifth consecutive trading session. On Thursday, S&P BSE Sensex rattled about 1,300 points to hit a low of 52,787 on an intraday trade basis whereas Nifty 50 index slid down to 15,758 levels. Inflation data in the US, prediction of rate hikes, all-time low rupee, and aggressive selling portrayed by foreign portfolio investors have drowned the market sentiments. 

In the broader markets too, the Mid-Cap and the small-cap indices dipped 2 per cent & 1 per cent, respectively. On the sectoral front, all the indices traded in the red territory with the indices pertaining to metal, power, and public sector banks being majorly hit, facing the brunt of the sell-off.  

Keep a watch on these stocks for Friday's trading session - 

Relaxo Footwears - This footwear company's stock tumbled 10 per cent in a single day after reporting weak Quarterly Results for Q4FY22. Due to a sharp rise in the raw material prices and GST rate differential on inventory, EBITDA margins squeezed 596 basis points (bps). Net profit after tax was recorded 38 per cent lower than the number recorded in Q4FY21, on the back of increased operational expenses and weak sales. On the other hand, revenue from operations dropped 7 per cent on a YoY basis. At the end of the trading session, the stock erased the major losses and closed 0.08 per cent up on BSE.  

One97 Communications - The stock of Paytm hit a new low of Rs 517.25 per share, slipping nearly 3 per cent on Thursday. It traded lower for six trading days, losing 14 per cent during this period. In March 2022 quarter, the foreign portfolio investors (FPI) have reduced their holdings by almost more than half to 4.42 per cent, 4.94 percentage points down. Due to heavy FPI selling, the market value of Paytm shares got reduced by 61 per cent. With the recent downfall, the shares of Paytm are trading 76 per cent lower than its issue price of Rs 2,150 per share. 

Hindalco Industries - The share price slumped 5 per cent despite its subsidiary Novelis Inc recording a 21 per cent YoY growth in its net income at $217 million in the quarter ending March 31, 2022, underpinned by topline and lower tax costs. Meanwhile, its net sales zoomed 34 per cent to $4.8 billion as compared to the year-ago period, primarily driven by higher average aluminum prices and local market premiums. On the other hand, adjusted EBITDA stood at $431 million, falling 15 per cent mainly due to short-term operational cost challenges. 

Adani Green Energy - The company informed that its management committee, at its meeting held on Thursday, approved the allotment of the equity shares of the company by way of the private placement on a preferential issue basis to Green Energy Investment Holding RSC. The equity shares will be listed on BSE and NSE. The shares of Adani Green dropped 8.57 per cent during Thursday's trading session, closing at Rs 2,435.60 per share.