KEY HIGHLIGHTS
Rupee Flat Against U.S. Dollar
The local currency closed flat against the U.S. Dollar at 83.51.
Source: Bloomberg
Nifty, Sensex End Flat After Choppy Session
In yet another range-bound trade, India's benchmark indices ended flat as voting trends in the ongoing general election made traders cautious.
The NSE Nifty 50 settled flat at 22,302.5 and the S&P BSE Sensex declined 45.46 points or 0.06%, to end at 73,466.39
The Nifty hit an intraday low of 22,185.2, and the Sensex touched 73,073.9 earlier in the session. Volatility gauge, India VIX, ended 0.46% higher during the session.
"A lower percentage of the voter base turning up for the polls has led to a spike in India VIX," according to Aditya Agarwala, co-founder and director at Invest4Edu Pvt.
The Indian market echoed subdued investor sentiments akin to those of its Asian peers, and on worries about declining voter turnout, according to Vinod Nair, Head of Research, Geojit Financial Services. "Despite domestic Q4 earnings largely meeting estimates, the earnings landscape appears to be moderating."
The Indian rupee closed flat against the U.S. Dollar at Rs 83.5. The yield on the 10-year bond was trading higher at 7.14%.
Most stocks in Asia ended lower on Wednesday, as investors seek firm evidence of an earnings recovery before taking this month’s rally further, Bloomberg reported. Hong Kong's Hang Seng fell by 0.90, while S&P ASX closed higher by 0.14%.
Brent crude was trading 1.38% lower at $82.01 a barrel. Gold was lower by 0.16% at $2,310.36 an ounce.
Shares of Reliance Industries Ltd., Larsen & Toubro Ltd., Tata motors Ltd., State Bank of India and NTPC Ltd. were positively contributing to changes in the Nifty.
HDFC Bank, Infosys Ltd., ICICI Bank Ltd., Hindustan Unilever Ltd. and Asian Paints Ltd. added negatively to the index.
The sectors on the NSE ended higher, with the Nifty Oil and Gas and Nifty Auto advancing the most. Nifty Bank and Nifty Finance fell the most by 0.55% and 0.53%, respectively.
Broader markets outperformed the Frontline Index as Mid and Smallcaps soared over 0.50% each, Aditya Gaggar Director of Progressive Shares said. "Nothing has changed technically for the Index i.e. bullish gap zone of 22,160-22,200 will be considered support while 22,400 is an immediate hurdle."
Broader markets outperformed. The S&P BSE Midcap ended 1.52% higher ans S&P BSE Smallcap closed 0.78% higher.
Six out of 20 sectoral indices on the BSE ended lower while 14 advanced. S&P BSE Capital Goods was the top gainer.
The market breadth was skewed in the favour of buyers. Around 2,133 stocks rose, 1661 fell, and 132 remained unchanged on the BSE.
Canara Bank MD On RBI Project Finance Draft Norms
Do not see pressure on core capital and margins due to RBI's project finance draft norms, says Canara Bank MD & CEO K Satyanarayana Raju
--We will pass on the cost to infra borrowers
--Total exposure to project finance stands at about Rs 1- 1.1 lakh crore
--Entire project finance portfolio will not attract 5%
--Seeking clarifications from RBI on project finance norms
Source: Post-earnings call
Westlife Foodworld Q4 FY24 (Consolidated, YoY)
Revenue at Rs 562.28 crore vs Rs 556.37 crore, up 1.06%
EBITDA at Rs 74.91 crore vs Rs 88.66 crore, down 15.5%
Margin at 13.32% vs 15.93%, down 261 bps
Net profit at Rs 0.76 crore vs Rs 20.09 crore, down 96.21%
Hero MotoCorp Q4 Earnings Highlights
Net profit at Rs 1,016 crore vs Bloomberg estimates of Rs 1,048 crore
Revenue at Rs 9,519 crore vs Bloomberg estimates of Rs 9,401 crore
EBITDA at Rs 1,359 crore vs Bloomberg estimates of Rs 1,323 crore
Margin at 14.3% vs Bloomberg est of 14.1%
Board recommends a final dividend of Rs 40/share
US FDA Finds One Observation At Cipla Kurkumbh Facility
US FDA inspection at Kurkumbh facility in Maharashtra closes with 1 observation Source
Source: Exchange filing
Balaji Amines Q4 (Consolidated, YoY)
Revenue at Rs 413.94 crore vs Rs 471.39 crore, down 12.19%
EBITDA at Rs 97.72 crore vs Rs 93.13 crore, up 4.92%
Margin at 23.6% vs 19.75%, up 385 bps
Net profit at Rs 72.48 crore vs Rs 55.21 crore, up 31.28%
Canara Bank Q4 Results
Net profit at Rs 3,757 crore vs Rs 3,175 crore, up 18% YoY
Gross NPA at 4.23% vs 4.39% QoQ
Gross NPA at 4.23% vs 4.39% QoQ
NII at Rs 9,580 crore vs Rs 8,617 crore, up 11% YoY
Latent View Shares Gain After Q4 Results
Shares of Latent View Analytics gained as much as 4.97% after the company's net profit was in line with Bloomberg estimates.
Latent View Analytics (Consolidated, QoQ)
Revenue up 3.59% at Rs 172 crore vs Rs 166 crore (Bloomberg estimate Rs 173 crore).
EBIT up 10.61% at Rs 37.93 crore vs Rs 34.29 crore (Bloomberg estimate Rs 37.2 crore).
Margin up 140 bps at 22.09% vs 20.69% (Bloomberg estimate 21.5%).
Net profit down 2.75% at Rs 45.24 crore vs Rs 46.52 crore (Bloomberg estimate Rs 44.6 crore).
Delta Corp In Pact With Alpha Alternatives Fund Advisors
In pact to establish a real estate development platform
Platform to deploy up to Rs 765 crore for residential re-development in the Mumbai Metropolitan Region and other areas
Co to invest Rs 90 crore in platform for 11.76% stake
Source: Exchange filing
CreditAccess Grameen Jumps The Most In Four Months After Q4 Results
Shares of CreditAccess Grameen Ltd. rose over 7% after the microfinance company reported a 34% jump in net profit at Rs 397 crore in the fourth quarter of the financial year 2024.
On the NSE, CreditAccess Grameen rose as much as 7.23% during the day to Rs 1,523.40 apiece, the highest jump since Jan 05. It was trading 1.54% higher at Rs 1,442.65 per share, compared to a 0.18% advance in the benchmark Nifty 50 at 1:12 p.m.
The share price has fallen 9.49% on a year-to-date basis but 45.97% in the last 12 months. The total traded volume so far in the day stood at 8.1 times its 30-day average. The relative strength index was at 47.19.
Nineteen out of the 20 analysts tracking the company have a 'buy' rating on the stock and one recommend 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 27.6%.
Sterlite Technologies Q4 (Consolidated, YoY)
Revenue at Rs 1,140 crore vs Rs 1,872 crore, down 39.11%
EBITDA at Rs 53 crore vs Rs 256 crore, down 79.29%
Margin at 4.64% vs 13.67%, down 902 bps
Net loss at Rs 82 crore vs profit of Rs 63 crore
Bharat Forge Q4 Earnings (Consolidated, YoY)
Revenue at Rs 4164.2 crore vs Rs 3629.1 crore, up 14.74%
EBITDA at Rs 643.28 crore vs Rs 438.51 crore, up 46.69%
Margin at 15.44% vs 12.08%, up 336 bps
Net profit at Rs 227.12 crore vs Rs 127.74 crore, up 77.79%
Air India Express Employees Union Sent Letter To Tata Sons Chairman On April 26
Letter expresses issues at Air India Express, after acquisition by Tata
Voice growing unrest and dissatisfaction among employees
Issues Expressed In The Letter
Terminations of several employees contrary to assurances by Finance Minister
Hiring concerns: People with less experience assigned higher designations
Remuneration issues: HRA, TA, DA and DH removed from compensation after merger
Improper implementation of SOPs
Source: Copy of letter reviewed by NDTV Profit
Indian Coast Guard Signs MoU With Jindal Steel
MoU for supply of indigenous marine grade steel
Source: PIB
Nifty, Sensex Off Day's Low Led By Gains In RIL, SBI: Midday Market Update
Benchmark equity indices erased most of their losses and traded flat through midday on Wednesday as losses in the shares of HDFC Bank Ltd. and ICICI Bank Ltd. were offset by gains in Reliance Industries Ltd. and Larsen & Toubro Ltd.
At 11:52 a.m., the NSE Nifty 50 was trading flat at 22,306.95, and the S&P BSE Sensex was also flat at 73,467.70.
The benchmarks have been a little jittery, said Amit Goel, founder of Amit Ventures. He is more concerned about the Nifty, which has created a double-top formation.
He expects the index to remain rangebound but with a bearish bias until the general elections are over.
Goel sees no strong traction till the index crosses the 22,800 mark, and if it falls to the 22,000–21,900 mark, investors should start building long positions.
Shares of Reliance Industries Ltd., Larsen & Toubro Ltd., NTPC Ltd., State Bank Of India, and Coal India Ltd. were contributing to the Nifty.
While those of HDFC Bank Ltd., ICICI Bank Ltd., Hindustan Unilever Ltd., Asian Paints Ltd., and Dr Reddy's Laboratories Ltd. were weighing on the index.
Most sectoral indices erased early loss and rose with Nifty PSU Bank and Nifty Oil and Gas leading.
Broader markets outperformed their larger peers, with the S&P BSE Midcap rising 0.56% and S&P BSE Smallcap gaining 0.6% through midday on Wednesday.
Six out of 20 sectoral indices on the BSE declined, while 14 gained. S&P BSE Energy was the top gainer and S&P BSE Auto fell the most.
The market breadth was skewed in favour of the buyers. Around 2,102 stocks rose, 1,447 declined, and 165 remain unchanged.
Pidilite Shares Hit Nearly Two-Month Low Q4 Net Profit Misses Estimates
Shares of Pidilite Industries Ltd. fell to its lowest level in nearly two months after the company's net profit for the quarter ended March was lower than Bloomberg's estimates.
Citi Research in a note said, "With soft RM prices likely to be largely offset by subdued revenue growth (double-digit volume growth offset by price cuts) and higher investment in brands and customer-facing initiatives, overall earnings growth may lag revenue growth ahead."
The brokerage reiterated its "sell" rating for the stock and a price target of Rs 2,200, implying a downside of 25.43%.
Pidilite Industries (Consolidated, YoY)
Revenue up 7.9% at Rs 2902 crore vs Rs 2689 crore (Bloomberg estimate Rs 2,831 crore).
EBITDA up 25.64% at Rs 576.93 crore vs Rs 459.16 crore (Bloomberg estimate Rs 621 crore).
Margin up 280 bps at 19.88% vs 17.07% (Bloomberg estimate 21.9%).
Net profit up 6.45% at Rs 304 crore vs Rs 286 crore (Bloomberg estimate Rs 425 crore).
Board recommended dividend of Rs 16 per share.
The scrip fell as much as 5.87% to Rs 2,777 apiece, the lowest level since March 14. It pared losses to trade 4% lower at Rs 2,831.35 apiece, as of 12:44 p.m. This compares to a 0.09% advance in the NSE Nifty 50 Index.
It has risen 4.20% on a year-to-date basis and 8.38% in the last twelve months. Total traded volume so far in the day stood at 3.17 times its 30-day average. The relative strength index was at 39.27.
Out of the 19 analysts tracking the company, eight maintain a 'buy' rating, four recommend a 'hold,' and seven suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 2.6%.
Jindal Saw Shares Fall As Q4 Results Misses Estimates
Shares of Jindal Saw fell today after the its results for the quarter ended March fell short of what Bloomberg had estimated. The company's net profit rose 61.46% to Rs 480 crore as against Bloomberg estimates of Rs 576 crore.
Jindal Saw (Consolidated, YoY)
Revenue up 4.56% at Rs 5425 crore vs Rs 5188 crore (Bloomberg estimate Rs 5,785 crore).
Ebitda up 53.4%at Rs 920 crore vs Rs 600 crore (Bloomberg estimate Rs 1064 crore).
Margin up 540 bps at 16.96% vs 11.56% (Bloomberg estimate Rs 18.4%).
Net profit up 61.46% at Rs 480 crore vs Rs 298 crore (Bloomberg estimate Rs 576 crore).
The scrip fell as much as 6.67% to Rs 530.05 apiece, the lowest level since April 25. It pared gains to trade 5.98% lower at Rs 533.90 apiece, as of 11:36 a.m. This compares to a 0.17% decline in the NSE Nifty 50 Index.
It has risen 29.58% on a year-to-date basis and 119.57% in the last twelve months. Total traded volume so far in the day stood at 2.33 times its 30-day average. The relative strength index was at 53.85.
Out of the two analysts tracking the company, one maintain a 'buy' rating, one recommend a 'hold,' and none suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 21.7%.
Bankers Seek Clarifications On RBI’s Project Finance Draft Circular
Banks to seek graded provisioning requirement for higher rated project loans
Bankers feel 5% flat provisions are too onerous
Banks to seek Rs 1,500 crore cut-off for guidelines to apply
Banks to ask RBI for more lenient terms on project finance draft guidelines
Banks in the process of assessing financial impact of draft guidelines
IBA to approach RBI to ease norms
Banks to seek clarification on calculation of net present value of loan assets
Banks to seek DFS support in discussions with RBI
Source: People In The Know
REC Snaps Two-Day Fall As It Sees No Impact Of New RBI Guidelines
Shares of REC Ltd. snapped their two day fall and rose today after the company said that the new RBI draft guideline will not impact the company's profitability, book value or net worth.
The impact of the said guidelines will be on Tier 1 capital only, however, 80% of current projects already commissioned, the company said in an investor call.
The stock had fallen over 10% in the last two sessions when the RBI's draft guidelines mentioned that 5% general provision should be made on all existing and fresh project loans which are in the "construction phase," meaning before commercial operations commence.
The company said that the guidelines are unlikely to have an impact on borrowing costs for borrowers in renewable projects and borrowers of non-renewable projects are unlikely to be subjected to higher rates as they have plenty of supply borrowers.
Moreover, metro projects supported by the State Govt will not attract the draft proposed regulation, according to the company. However, in case of an impact, the capability will pass on the rates.
It also said that an impairment reserve is not required since its provisioning is more than required by IRAC norms.
The scrip rose as much as 6.37% to Rs 539.35 apiece, the highest level since May 6. It pared gains to trade 5.2% higher at Rs 533.80 apiece, as of 10:49 a.m. This compares to a 0.4% decline in the NSE Nifty 50 Index.
It has risen 29.37% on a year-to-date basis an 276.86% in the last twelve months. Total traded volume so far in the day stood at 1.09 times its 30-day average. The relative strength index was at 64.68.
Out of the six analysts tracking the company, five maintain a 'buy' rating, one recommend a 'hold,' and none suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 11%.
Shares of PFC had also fallen nearly 12% in their two day fall. Today, they rose as much as 5.44% to Rs 444.50, its highest level since May 6.
L&T Gets Multiple Major Orders
Gets orders worth Rs 5,000-10,000 crore including floating solar plants
Source: Exchange filing
Sonata Software Falls The Most In Over Four Years After Weak Q4 Results
Shares of Sonata Software recorded their steepest fall in over three years after the company reported a sequential fall in its net profit and revenue for the quarter ended March.
The company's revenue was slightly higher than what Bloomberg had estimated but net profit missed the expectations.
Sonata Software (Consolidated, QoQ)
Revenue down 12.11% at Rs 2,192 crore vs Rs 2,493 crore (Bloomberg estimate Rs 2179 crore).
EBIT down 36.51% at Rs 110 crore vs Rs 174 crore (Bloomberg estimate Rs 168.5 crore).
EBIT margin down 193 bps at 5.03% vs 6.97% (Bloomberg estimate 7.73%).
Net profit down 22.85% at Rs 33.22 crore vs Rs 43.06 crore (Bloomberg estimate Rs 128.25 crore).
Board recommends final dividend of Rs 4.4 per share.
The scrip fell as much as 14.6% to Rs 545.05 apiece, the lowest level since Oct. 26. It pared losses to trade 12.97% lower at Rs 555.05 apiece, as of 10:08 a.m. This compares to a 0.9% decline in the NSE Nifty 50 Index.
It has fallen 25.24% on a year-to-date basis and 14.3% in the last twelve months. Total traded volume so far in the day stood at 6.96 times its 30-day average. The relative strength index was at 17.91, indicating that the stock may be oversold.
Out of the six analysts tracking the company, fove maintain a 'buy' rating and one recommend a 'hold', according to Bloomberg data. The average 12-month consensus price target implies an upside of 45.8%.
Dr Reddy's Shares Fall Nearly 5% After Q4 Results
The stock extended losses in the third consecutive day today and fell nearly 5% to hit Rs 5,952.70, its lowest level since April 25.
Voltas Shares Down After Results
The stock fell as much as 9.16% to hit its lowest level since April 5. It has risen 33% on a year-to-date basis and 58.42% in the last twelve months.
Nifty, Sensex Open Lower As HDFC Bank Drags: Opening Bell
Benchmark equity indices extended losses in the fourth consecutive session and opened lower with shares of HDFC Bank dragging the most.
At pre-open, the Nifty was at 22,231.20, down 71.30 points or 0.32% and the Sensex was down 286.85 points or 0.39% at 73,225.
"The previous bullish gap zone of 22,160-22,200 will be considered support while 22,400 is an immediate hurdle," said Aditya Gaggar, director of Progressive Shares.
Shares of HDFC Bank Ltd., Larsen & Toubro Ltd., Tata Consultancy Services Ltd., Infosys Ltd., and Dr. Reddy's Laboratories Ltd. dragged the Nifty.
While those of Reliance Industries Ltd., ITC Ltd., Maruti Suzuki Ltd., Coal India Ltd., and Bharat Petroleum Corp. Ltd minimised the losses.
Most sectoral indices were lower at open. Onlt Nifty PSU Bank and Nifty Oil & Gas gained. Nifty Realty and Nifty Pharma were among the top losers.
Broader markets outperformed. The S&P BSE Midcap was up 0.30% and S&P BSE Smallcap gained 0.27%.
Eleven out of 20 sectors on the BSE fell and nine gained. S&P BSE Oil & Gas was the top gainer and S&P BSE Realty fell the most.
The market breadth was skewed in the favour of buyers. As much as 1,747 stocks rose, 1,135 declined, and 100 remained unchanged on the BSE.
Nifty, Sensex Lower At Pre-Open
At pre-open, the Nifty was at 22,231.20, down 71.30 points or 0.32% and the Sensex was down 286.85 points or 0.39% at 73,225.
Retail Auto Sales Grew 27% YoY In April 2024
Two-wheeler retail sales up by33% YoY to 16,43,510 units
Three-wheeler retail sales up 9% YoY to 80,105 units
Car retail sales up 16% YoY to 3,35,123 units
CV retail sales up 1% YoY at 90,707 units
Tractor retail sales up 1.37% YoY to 56,625 units
Factors driving retail sales growth:
New launches in PV and 2W category
Bulk and corporate deals in CVs
Stable fuel prices, healthy monsoon outlook
Festive demand, wedding season
Incoming challenges
Ongoing Lok Sabha elections
Limited financing options
Overcapacity in the CV segment
Extreme summers
Source: FADA Statement
Yield On The 10-Year Bond Flat
The yield on the 10-year bond opened flat at 7.13%.
Source: Bloomberg
Rupee Flat Against U.S. Dollar
The local currency opened flat against the U.S. Dollar at 83.50.
Source: Bloomberg
Nomura Retains Neutral Rating On Dr Reddy's Labs
Price target of Rs 6,499, implying 3.9% upside
Q4FY24 Sales/EBITDA/PAT were 1%/2%/15% higher than consensus expectations
Key reason for earnings surprise was higher North America Generic (NAG) revenue
NAG revenue declined by $9mn sequentially vs estimate of $40mn decline
Contribution from gRevlimid led to EBITDA beat despite higher R&D costs
Citi Reiterates 'Sell' on Hindustan Zinc
Target price unchanged at Rs 325
Board approved first interim dividend of Rs 10/sh implying 37% payout on FY25 estimates
Sees likely limited upside to zinc/silver prices and stretched valuations
If NCLT approves transfer from GR to RE, sees potential for additional dividend of Rs25/sh
Estimate FY25e net debt at Rs 25.3 billion
Brokerages On Voltas
Nomura maintains 'Buy' on Voltas; Target Rs 1,450 (+5%)
Revenue was 4% above estimates, 9% above Bloomberg estimates
Margins disappointed across segments
Unitary Cooling Products margin came at 9.2% vs 10% estimated
UCP business outperformed
Services margin declined to 30.6% vs 32% estimated
Expect 20% and 15% volume growth in FY25 / FY26
SOTP based TP of Rs 1,450, currently trading at 42x EPS
UBS Maintains Buy on Voltas; Target Rs 1,800 (+30%)
Despite operating leverage benefit; RAC product category margins declined 90 bps YoY
Market share trend in Q1FY25 should start showing improving trend
Rs 1.1 bn loss in project business (mainly Qatar) provided for in Q4, impacting results
UCP segment margins will continue to see gradual improvement
Brokerages On JSW Energy
Citi Raises Target To Rs 435 (25% downside)
Maintains 'Sell' on JSW Energy,
Q4 net generations, ebitda in line with estimates
Maintains sell rating on higher valuations
Receiving LoA/LoIs for 3.2/3.6 GW L1 bids provides visibility
3.6 GW won capacity to be commission post FY26
Raise FY25 EPS by 14%
Jefferies Raises Target To Rs 690 (19% upside)
Maintains 'Buy' on JSW Energy,
Q4 Ebitda in line, driven by capacity additions, higher merchant sales
Mytrah acquisition to have Rs 1650 annual Ebitda run rate by FY25
Revise FY25-26 merchant tariff higher to Rs 6/unit given peak demand trend
Forecasts 33% EPS CAGR in FY24-27
Key risks: execution delay, aggressive bidding
Morgan Stanley Upgrades Container Corp to Equal Weight
Target price Rs 1,076 (+4%)
Rail freight market share to improve from 29% to 35% by FY31
Volume growth to benefit the Co
Expect margins of double stacking to be retained by the Co
Seen strong rally on bidding war for govt stake
Brokerages on Indraprastha Gas
Citi Maintains 'Buy' On Indraprastha Gas
Q4 EBITDA 12% below brokerage estimate
Lower margins on higher opex, volume mix
Industrial volumes in line with estimates, CNG volumes disappointing
Partial impact of CNG price was felt in Q4
Await for management commentary before reviewing estimate
Jefferies Raises Target To Rs 450 (1.4% upside)
Maintains 'Hold' on Indraprastha Gas
Q4 Ebitda missed estimates by 18% on higher gas costs
FY24 volumes 3% below mgmt guidance
Pressure on near-term profitability on lower volume growth, full impact of CNG price cut from Q1FY25
Expect CNG volume growth of 5% CAGR over FY24-26
Pressure on FY25 profitability due to rising APM gas shortfall, limited HPHT gas tie ups
EV adoption in Delhi NCR puts 30% volume risk
Growth in new GAs may not compensate for slowdown in NCR
Devyani International Head Of Finance Resigns
Gaurav Gupta resigns as Head of Finance effective May 7
Source: Exchange filing
Brokerages On Vodafone Idea
Citi Research Maintains Neutral, Target Rs 15, upside of 21%
We are enthused by the Rs 200 billion equity raise
This will enable VI to accelerate network investments and narrow the gap with peers on 4G coverage & 5G rollouts
Tariff hikes & arresting the subscriber decline is driving our high risk rating
We incorporate the equity raise, increase our FY25-26E EBITDA by 5-18%
Nuvama Maintains Hold on VI; Target: Rs 14
Management upbeat, post the capital raise
Tariff hike a necessity for industry
Expects all 3 players to participate in Tariff hikes
Hopeful of some relief on AGR front
Assessment: Better than before, but not yet out of the woods
Jupiter Wagons Q4FY24 (Consolidated, YoY)
Revenue up 57% at Rs 1,115 crore vs Rs 712 crore
Ebitda up 60% at Rs 147 crore vs Rs 92 crore
Margin at 13.2% vs 12.9%
Net profit up 167% at Rs 105 crore vs Rs 39 crore
Global Cues
U.S. Dollar Index at 105.51
U.S. 10-year bond yield at 4.46%
Brent crude down 0.28% at $82.93 per barrel
Nymex crude down 0.24% at $78.19 per barrel
Bitcoin was down 0.79% at $62,475.30
GIFT Nifty traded at 22,395, down 11 points or 0.05% as of 6:53 a.m.
F&O Cues
Nifty May futures down by 0.78% to 22,381.8 at a premium of 79.3 points.
Nifty May futures open interest down by 3.8%.
Nifty Bank May futures down by 1.46% to 48,349.05 at a premium of 63.7 points.
Nifty Bank May futures open interest up by 6.93%.
Nifty Options May 9 Expiry: Maximum call open interest at 23,000 and maximum put open interest at 22,000.
Bank Nifty Options May 8 Expiry: Maximum call open Interest at 49,500 and maximum put open interest at 47,000.
Securities in ban period: Aditya Birla Fashion, Balarampur Chini Mills, Biocon, GMR Infra, Vodafone Idea, PNB, SAIL, and Zee Entertainment Enterprises.
Trading Tweaks
Moved out of short-term ASM framework: Dolat Algotech, Vesuvius India.
Ex/record Dividend: Laurus labs.
Bulk Deals
Cartrade Tech: Sector Investment Funds PLC - Sector Global Emerging Markets Fund bought 2.42 lakh shares (0.51%) at Rs 854.93 apiece.
Cigniti Technologies: Rajasthan Global Securities bought 1.5 lakh shares (0.54%) at Rs 1320.79 apiece.
IPO Offering
Indegene: The public issue was subscribed to 7.35 times on day 2. The bids were led by institutional investors (5.59 times), non-institutional investors (18.03 times), retail investors (3.82 times) and a portion reserved for employees (3.18 times).
TBO Tek: The company will offer its shares for bidding on Wednesday. The price band is set from Rs 875 to Rs 920 per share. The Rs 1,550.8-crore IPO is a combination of a fresh issue of Rs 400 crore and the rest of the offer for sale. The company has raised Rs 696 crore through anchor investors.
Aadhar Housing Finance: The company will offer its shares for bidding on Wednesday. The price band is set from Rs 300 to Rs 315 per share. The Rs 3,000-crore IPO is a combination of a fresh issue of Rs 1,000 crore and the rest of the offer for sale. The company has raised Rs 898 crore through anchor investors.
Stocks to Watch
Patel Engineering: The company and its joint venture partner emerged as the lowest bidders for an irrigation project worth Rs 343 crore. The company’s share in the irrigation project stands at Rs 120 crore.
Mahindra and Mahindra: The NCLT approved the merger of Mahindra Heavy Engines, Mahindra Two Wheelers and Trringo.com with the company.
Tata Elxsi: The company collaborated with Arm to accelerate the software-defined vehicle journey for OEMs.
LTIMindtree: The company and IBM will set up a joint generative AI centre of excellence in India.
Dixon Technologies: The company's arm, Dixon Electro Appliances, entered into a pact with Nokia for the development and manufacturing of telecom products.
Earnings Post Market Hours
Dr Reddy's Laboratories (Consolidated, YoY)
Revenue up 12.6% at Rs 7,114 crore vs Rs 6,315.2 crore (Bloomberg estimate Rs 7,026 crore).
Ebitda up 19.4% at Rs 1,831 crore vs Rs 1,534 crore (Bloomberg estimate Rs 1809 crore).
Margin at 25.7% vs 24.3% (Bloomberg estimate 25.8%).
Net profit up 36.4% at Rs 1,310 crore vs Rs 960 crore (Bloomberg estimate Rs 1,214 crore).
Board recommended final dividend of Rs 40 per share.
Pidilite Industries (Consolidated, YoY)
Revenue up 7.9% at Rs 2902 crore vs Rs 2689 crore (Bloomberg estimate Rs 2,831 crore).
Ebitda up 25.64% at Rs 576.93 crore vs Rs 459.16 crore (Bloomberg estimate Rs 621 crore).
Margin up 280 bps at 19.88% vs 17.07% (Bloomberg estimate 21.9%).
Net profit up 6.45% at Rs 304 crore vs Rs 286 crore (Bloomberg estimate Rs 425 crore).
Board recommended dividend of Rs 16 per share.
United Breweries (Consolidated, YoY)
Revenue up 17.34% at Rs 2,133 crore vs Rs 1766 crore (Bloomberg estimate Rs 1,968 crore).
Ebitda up 166.28% at Rs 143 crore vs Rs 53.63 crore, (Bloomberg estimate Rs 261 crore).
Margin up 365 bps at 6.69% vs 3.03%, (Bloomberg estimate 8.9%).
Net profit up 726.24% at Rs 81.55 crore vs Rs 9.87 crore (Bloomberg estimate Rs 208 crore).
JSW Energy (Consolidated, YoY)
Revenue up 3.21% at Rs 2756 crore vs Rs 2670 crore.
Ebitda up 56.78% at Rs 1169 crore vs Rs 745 crore.
Margin up 1448 bps at 42.4% vs 27.91%.
Net profit up 22.42% at Rs 345.27 crore vs Rs 282.03 crore.
Board recommends dividend of Rs 2 per share.
IRB Infrastructure Developer (Consolidated, YoY)
Revenue up 27.23% at Rs 2,061 crore vs Rs 1,620 crore (Bloomberg estimate Rs 2,247 crore).
Ebitda up 17.28% at Rs 890 crore vs Rs 759 crore (Bloomberg estimate Rs 968 crore).
Margin down 366 bps at 43.17% vs 46.83%, (Bloomberg estimate 43.1%).
Net profit up 45.11% at Rs 189 crore vs Rs 130.15 crore, (Bloomberg estimate Rs 201 crore).
Navin Fluorine (Consolidated, YoY)
Revenue down 13.65% at Rs 602 crore vs Rs 697 crore (Bloomberg estimate Rs 547 crore).
Ebitda down 45.45% at Rs 110 crore vs Rs 202 crore (Bloomberg estimate Rs 97.38 crore).
Margin down 1066 bps at 18.28% vs 28.94% (Bloomberg estimate Rs 17.8%).
Net profit down 48.66% at Rs 70 crore vs Rs 136 crore (Bloomberg estimate Rs 48.01 crore).
Board recommends a final dividend of Rs 7 per share.
Jindal Saw (Consolidated, YoY)
Revenue up 4.56% at Rs 5425 crore vs Rs 5188 crore (Bloomberg estimate Rs 5,785 crore).
Ebitda up 53.4%at Rs 920 crore vs Rs 600 crore (Bloomberg estimate Rs 1064 crore).
Margin up 540 bps at 16.96% vs 11.56% (Bloomberg estimate Rs 18.4%).
Net profit up 61.46% at Rs 480 crore vs Rs 298 crore (Bloomberg estimate Rs 576 crore).
Latent View Analytics (Consolidated, QoQ)
Revenue up 3.59% at Rs 172 crore vs Rs 166 crore (Bloomberg estimate Rs 173 crore).
EBIT up 10.61% at Rs 37.93 crore vs Rs 34.29 crore (Bloomberg estimate Rs 37.2 crore).
Margin up 140 bps at 22.09% vs 20.69% (Bloomberg estimate 21.5%).
Net profit down 2.75% at Rs 45.24 crore vs Rs 46.52 crore (Bloomberg estimate Rs 44.6 crore).
Sonata Software (Consolidated, QoQ)
Revenue down 12.11% at Rs 2,192 crore vs Rs 2,493 crore (Bloomberg estimate Rs 2179 crore).
EBIT down 36.51% at Rs 110 crore vs Rs 174 crore (Bloomberg estimate Rs 168.5 crore).
EBIT margin down 193 bps at 5.03% vs 6.97% (Bloomberg estimate 7.73%).
Net profit down 22.85% at Rs 33.22 crore vs Rs 43.06 crore (Bloomberg estimate Rs 128.25 crore).
Board recommends a final dividend of Rs 4.4 per share.
IGL (Consolidated, QOQ)
Revenue up 1.12% at Rs 3597 crore vs Rs 3,550 crore.
Ebitda down 6.33% at Rs 521 crore vs Rs 556 crore.
Margin down 117 bps at 14.48% vs 15.66%.
Net profit down 8.86% at Rs 433 crore vs Rs 475 crore, (Bloomberg estimate Rs 375.15 crore).
CreditAccess Grameen (Standalone, YoY)
Total income up 36.84% at Rs 1459 crore vs Rs 1066 crore.
Net profit up 33.86% at Rs 397 crore vs Rs 296 crore.
Board recommends a one-time final dividend of Rs 10 per share.
PB Fintech (Consolidated, QoQ)
Total income up 23.16% at Rs 1,188 crore vs Rs 964.5 crore.
Net profit up 61.67% at Rs 60.19 crore vs Rs 37.23 crore (Bloomberg estimate Rs 60.48 crore).
Max Financial (Consolidated, YoY)
Total income up 49.97% at Rs 14,898 crore vs Rs 9,934 crore.
Net loss of Rs 50.08 crore vs profit of Rs 52.45 crore.
Earnings in Focus
Larsen & Toubro, Tata Power, Canara Power, TVS Motor, Hero MotoCorp, Bharat Forge, SKF India, Gujarat State Petronet, Piramal Enterprises, Kalpataru Projects International, Kirloskar Oil Engines, Westlife Foodworld, Godrej Agrovet, Home First Finance, HG Infra Engineering, Balaji Amines, and Vijaya Diagnostic Centre.
GIFT Nifty Trades Near 22,400
The May futures contract of the GIFT Nifty traded lower by 7.5 points at 22,398 as of 7:10 a.m.
Among other Asian indices, while the Nikkei lost nearly 1% in the early trade, Hong Kong's Hang Seng was marginally higher. Australia's S&P ASX 200 and South Korea's Kospi traded flat.
The focus for the Asian markets will be on Chinese President Xi Jinping’s trip to Europe and how trade relations will develop from here. In another sign of growing tension, the US has revoked licences allowing Huawei Technologies Co. to buy semiconductors from Qualcomm Inc. and Intel Corp., Bloomberg reported.
The rally in US stocks in May struggled to gain much traction on Tuesday, with investors split on whether the market can sustain the advance given all the economic crosscurrents.
The S&P 500 rose 0.13%, while the Nasdaq Composite fell 0.10% respectively, as of Tuesday. The Dow Jones Industrial Average rose 0.08%.
The Brent crude was down 0.28% at $82.93 per barrel. Gold fell 0.15% at $2,310.56 an ounce.
India's benchmark stock indices ended lower on Tuesday as heavyweights HDFC Bank Ltd., ICICI Bank Ltd., and Reliance Industries Ltd. declined. Nifty extended its loss to a third session, while the S&P BSE Sensex reversed gains from Monday.
The NSE Nifty 50 settled 140.20 points, or 0.62%, lower at 22,302.50, and the S&P BSE Sensex ended down 383.69 points, or 0.52%, at 73,511.85.
Overseas investors in Indian equities remained net sellers on Tuesday for the fourth consecutive session. Foreign portfolio investors offloaded stocks worth Rs 3,668.8 crore.
Domestic institutional investors remained net buyers for the eighth day and mopped up equities worth Rs 2,304.5 crore, the NSE data showed.
The Indian rupee closed 2 paise weaker against the U.S. dollar at 83.51.
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