PremiumIndian indices bounced back strongly on Thursday, with stocks rising across the board as risk appetite returned to the Dalal Street following positive earning numbers posted by tech firms in the US. Major heavyweights Infosys, L&T, and Reliance contributed significantly to the rally, while Hindustan Unilever advanced to a nine-week high following quarterly results. Upbeat earnings bolstered bull case in global markets, while China's pledge to support the economy calmed the nerves in Asia. The markets this week witnessed turbulence over multiple crises including the Ukraine war, surging inflation, central bank monetary tightening and Chinese Covid lockdowns. In Asia, shares registered solid gains in Japan, South Korea, Hong Kong, Shanghai, and Australia on Thursday.
Indian indices edged higher on Thursday led by healthy gains in power, FMCG, and banking stocks as positive global trends boosted market sentiments.
The Sensex rose 701.67 points, or 1.23%, to close at 57,521.06, while Nifty50 lost 206.65 points to end at 17,245.05. Sectorally, most sectors ended in the green with realty, power, FMCG, and banking stocks logging the biggest gains.
On the 30-stock index, the most gains were made by Hindustan Unilever, Asian Paints, NTPC, Power Grid, and L&T, among others, while Bharti Airtel, M&M, and HCL Tech were among the losers.
On Nifty50, HDFC Life, Hindustan Unilever, SBI Life, and UPL made the most gains, while Bajaj Auto, Bharti Airtel, and Hindalco were among the biggest laggards.
The COVID-19 pandemic has disrupted the soft drinks market in last 2 years. Moreover, consumption shifted towards healthier drink alternatives. Considering this trend, the beverage makers have started introducing various fruit-based drinks to tap this trend. Indian soft drinks industry is rapidly changing, with the companies like PepsiCo India and Coca-Cola India are bringing healthier options, as they are getting transformed from cola makers to beverage makers. VBL’s alliance with PepsiCo India is mutually beneficial for both in terms of market share gain and geographic consolidation. This is the first strong season for beverage makers after 2 years of subdued performance consecutively due to pandemic. Therefore, with sharp recovery, expansion of capacity, new product line add up of “Kurkure Puffcorn" in CY22 and likely margin expansion, we maintain BUY on VBL. Post Conference call, we will update our earnings estimate and target price.
With more and more domestic companies adopting digital transformation initiatives, the Indian information technology (IT) industry grew 7.2% year-on-year in 2021, higher than the 5.3% rise seen previous year. According to a report by market research firm the International Data Corp. (IDC), the domestic IT services industry was valued at $14.15 billion in 2021.
We recommend a BUY rating on the stock and assign a 38x P/E multiple to its FY24E earnings of ₹126.8/share to arrive at a TP of ₹4,820/share, indicating an upside potential of 18% from the CMP.
Stock to buy today: After doubling shareholders' money in strong upside move from April to August 2021, URI AMC share price has been nosediving since then. This stock has been in consolidation phase for more than 6 months and now Yes Securities is expecting it to rebound. The stock that has shed near 22 per cent in 2022, is expected to go up to ₹1248 in long term. UTI AMC share price today is ₹830. So, Yes Securities is expecting up to 50 per cent rise in this Asset Management Company stock in long term.
Technological advancements have rendered a number of jobs in the modern world obsolete to the extent that certain sectors might die by 2040
FMCG major Hindustan Unilever (HUL) yesterday reported its March 2022 quarter earnings after market hours.
Ashish Kacholia portfolio: Fondly called as 'Big Whale', ace investor Ashish Kacholia's stock portfolio contains a good number of multibagger stocks. However, some of his stocks have turned some of his stocks have delivered staggering return in last one year. Yasho Industries shares are one of those stocks. In fact it is not just a multibagger, it's a four bagger stock that has delivered near 400 per cent return to its shareholders in last one year.
Varun Beverages on Thursday announced that its board at its meeting held today have recommended bonus issue of equity shares in the proportion of one for every two held by the shareholders of the company i.e., 1:2. Shares of Varun Beverages were trading nearly 3% higher at ₹1,080 apiece on the BSE in afternoon deals.
Packaged consumer goods company Hindustan Unilever Ltd. (HUL) saw three of its brands--Vim, Rin, and Dove--hit ₹2,000 crore in sales last fiscal, the company said announcing its fourth quarter and full year earnings on Wednesday.
European stocks rallied with U.S. equity futures Thursday after upbeat earnings bolstered the bull case for the economy and markets, dispelling growth fears for now.
The Stoxx Europe 600 Index rose more than 1% with every industry group in the green. Big individual contributors included TotalEnergies SE, Glencore Plc and Capgemini SE, which all posted gains on buoyant earnings. Futures on the S&P 500 also gained more than 1%.
Contracts on the technology-heavy Nasdaq 100 jumped more than 2%, paced by gains in Meta Platforms Inc. after Facebook’s main social network added more users than projected.
Almost 70 companies in Europe are due to publish results Thursday. About 61% of the companies that have reported so far having beaten estimates, according to Sanford C. Bernstein.
Oil prices dropped on Thursday on caution about dwindling fuel demand in China, the world's biggest oil importer, due to the economic impact of COVID-19 restrictions.
Brent crude futures had fallen 62 cents, or 0.59%, to $104.70 a barrel by 0712 GMT. U.S. West Texas Intermediate crude futures slipped 48 cents, or 0.47%, to $101.54 a barrel.
Both contracts had settled over 30 cents higher on Wednesday on worries about tight worldwide oil supplies and another drawdown in U.S. distillate and gasoline stocks.
The U.S. Energy Information Administration said crude stocks rose by just 692,000 barrels last week, short of expectations, but distillate inventories, which include diesel and jet fuel, fell to their lowest since May 2008.
Brokerage MIB Securities believes Tata Power is best placed to benefit from India’s push to increase RE capacity to 500GW by 2030. There are multiple catalysts from RE assets value-unlocking, sale of non-core assets, tariff resolution and tax benefit from merger of Mundra assets in the standalone entity and new renewable and distribution contracts, it said.
Tier-II IT company Persistent Systems Ltd reported a sequential dollar revenue growth of 9.1% in the March quarter of fiscal year 2022, ahead of analysts' estimates. Growth was mainly aided by its services vertical, while the IP segment registered a sequential decline in revenue in the March quarter.
Adani Green shares are one of the multibagger stocks in 2022. Out of 190 multibagger stocks in FY22, Adani Green Energy share price has delivered staggering return to its shareholders in last one year. Like any other Adani group stocks, this Adani shares' PE ratio is also very high at around 1076 and its market capital is ₹4.48 lakh crore.
Trent Ltd reported 53% year-on-year (y-o-y) growth in standalone revenue from operations to ₹1185 crore in the March quarter (Q4FY22). This is despite the adverse impact of the third wave in January and February.
Rakesh Jhunjhunwala portfolio: Despite hospitality industry reeling under the Covid-19 pandemic heat for last two years, Indian Hotel share has delivered multibagger return in last one year. In last one year, it has shot up to the tune of 125 per cent whereas in 2022, this Rakesh Jhunjhunwala stock has surged to the tune of 35 per cent. However, ICICI Securities sees more upside in this multibagger stock. According to ICICI Securities research report post-Q4FY22 results of Indian Hotels Company Limited, the brokerage has revised Indian Hotel share price target to ₹292 levels.
Asian shares logged moderate gains on Thursday after Wall Street stabilized following a sell-off in tech stocks the day before.
Tokyo's Nikkei 225 rose 1per cent to 26,642.88 after the Bank of Japan wrapped up a policy meeting with no major changes, maintaining its near-zero interest rate stance despite a sharp weakening of the yen against the dollar and rising costs for many imported commodities.
Chinese benchmarks recovered from sharp drops as officials highlighted efforts to counter the impact of pandemic shutdowns in many cities.
The Shanghai Composite index gained 0.6per cent to 2,975.28 and Hong Kong's Hang Seng jumped 1.4per cent to 20,218.39.
Elsewhere, the Kospi in Seoul added 0.5per cent to 2,953.09. Australia's S&P/ASX 200 surged 1per cent to 7,333.50.
Wall Street ended Wednesday with a lackluster finish as traders braced for more earnings reports from major U.S. companies this week.
The S&P 500 saw most of a midday rally evaporate and wound up with a gain of just 0.2per cent, at 4,183.96. The Dow Jones Industrial Average also added 0.2per cent, to 33,301.93. The Nasdaq was barely changed at 12,488.93, while the Russell 2000 fell 0.3per cent to 1,884.04.
From among the top 20 aggregate institutional holdings, active positions (relative to the MSCI Index) rose the most for Reliance Industries (RIL) as institutions like FPIs, mutual funds, DFIs probably had to catch up with the stock's outperformance, highlighted global brokerage Morgan Stanley in a note.
Godrej Properties Ltd (GPL) Thursday said it has acquired 58 acres of land in Nagpur, which will comprise primarily of plotted residential units and offer an estimated saleable area of 1.5 million sq ft.
Asian oil refiners are reaping their highest profits ever this week, spurred by higher fuel demand during peak holiday seasons as more economies recover from the COVID-19 pandemic while the region ramps up exports to Europe to replace a Russia shortfall.
Profit margins for a complex refinery in Singapore, the bellwether for Asian refiners, tipped over $20 a barrel on Wednesday.
Gasoline, diesel and jet fuel crack spreads hit new highs of $22, $46 and $36 per barrel respectively amid a transport boom as more economies ease COVID restrictions.
The rupee depreciated 10 paise to 76.67 against the US dollar in the opening trade on Thursday, weighed down by the strength of the greenback and significant foreign fund outflows.
At the interbank foreign exchange, the rupee opened at 76.60 against the American dollar, then lost ground to quote at 76.67, registering a fall of 10 paise from the last close.
On Wednesday, the rupee had settled almost flat at 76.57 against the US dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.37 per cent higher at 103.34.
Forex traders said there is risk aversion among investors amid mounting challenges posed by the indication of aggressive tightening by the US Fed and geopolitical uncertainties.
Insights
Bank Nifty has seen decrease in Open Interest of -46.02% with decrease in price of -2.27% indicating Long Unwinding.
Nifty has seen decrease in Open Interest of -50.66% with a decrease in price of -2.05% indicating Long Unwinding.
Option data indicates a probable trading range of Bank Nifty for the day between 35,800 to 36,800 & that for NIfty at 17,300 to 16,900.
BANK NIFTY Strategy : - PUT Spread
View: Moderately BEARISH.
Rationale: - Traders could initiate this spread strategy to make modest returns with limited risk and reward. The spread suggested consists of buying one lot of 36,000 strike PUT option and simultaneously selling one lot of 35,500 strike PUT Option.
Auto industry-focused KPIT Technologies on Wednesday reported a 53 per cent rise in its March 2022 quarter net at ₹80.5 crore.
Shares of Indian Energy Exchange (IEX) plunged nearly 3% to ₹213 apiece on the BSE in Thursday's early deals after the company posted a rise of over 45% in its consolidated net profit at ₹88 crore in the quarter ended March 2022, compared to the year-ago period, mainly on the back of higher revenues.
Rating: BUY | CMP: Rs2,145 | TP: Rs2,384
We expect 11.0% Sales and 13.6% PAT CAGR over FY22-24 and assign a DCF based target price of ₹2384 ( ₹2356 earlier). We have marginally increased our FY23/24 EPS by 0.7%/1.2% on calibrated price hikes & cost synergies. Risk reward is favorable at 44x FY24 EPS and ~2% dividend yield, however we expect the returns to be back ended given near term volume pressures and volatility in Input costs. Retain Buy.
Cyient Ltd. said on Thursday it is set to acquire Singapore-based Grit Consulting for a total consideration of $37 million, to strengthen its technology consulting practice and gain access to new customer portfolios.
Rainbow Children's Medicare IPO (Initial Public Offering) hit Indian primary markets on 27th April 2022 and it will remain open for bidders till 28th April 2022. So, bidders have two more days left to apply for the public issue worth ₹1595 crore. As per Rainbow Children's Medicare IPO subscription status, the public offer has been subscribed 0.29 times whereas its retail portion has been subscribed 0.48 times. Grey market is also giving positive signals in regard to Rainbow Children's Medicare IPO. According to market observers, shares of Rainbow Children's Medicare are available at a premium of ₹20 in grey market today.
Indian Hotels' Q4 revenue was in line, while EBITDA came in below our estimate. The Tata group hospitality firm reported a consolidated net profit of ₹71 crore in the fourth quarter while revenue from operations during the quarter under review stood at ₹872 crore.
On Wednesday, it was reported that Bodhi Tree Systems, an investment venture of James Murdoch's Lupa Systems and Uday Shankar, ex-Chairman of Star and Disney India, will invest ₹13,500 crore in broadcaster Viacom18 as part of a tripartite partnership with billionaire Mukesh Ambani's Reliance, to form one of the largest TV and digital streaming firms in India.
Yesterday’s opening was a replica of Friday’s session where markets had left us with lot of promising signs on the previous day but due to the global uncertainty, starts the day on a weak note. The correction extended in the following hours to almost test the 16950 mark around the mid-session. Fortunately, the bulls are not willing to give up as they once again pulled the markets higher in the latter half. Although there has not been a complete recovery; Nifty at least managed to hold 17000 on a closing basis.
One day up one day down is a clear sign of directionless market. Overall sentiments are a bit cautious and in this environment, we are quite fortunate that we are not replicating the corrective moves we are seeing in global markets. We reiterate that we remain hopeful till the time 16800 is defended successfully and there is some possibility of a recovery in coming days if nothing escalates on the global front. For the coming session, 17000 followed by 16900 are to be seen as sacrosanct supports and one can take a punt by going long around it. On the flipside, 17100 – 17230 are to be seen as immediate hurdles.
As of now, it appears as if we are going to see dull movement on the expiry day. Only if we see the upper boundary taken out, a lot of individual stocks would start to give sharp rebounds. Traders are advised to keep focusing on stocks that may still outperform the benchmark index.
Campus Activewear IPO (Initial Public Offering) opened for subscription on 26th April 2022 and it will remain open for subscription till 28th April 2022. Means bidding for this public issue is going to end today. After two days of bidding, Campus Activewear IPO subscription status suggests that the public offer has been subscribed 3021 times whereas its retail portion has been subscribed 3.94 times. Grey market is also giving positive response in regard to Campus Activewear IPO as grey market premium (GMP) of the public issue has been rising continuously. According to market observers, Campus Activewear shares are available at a premium of ₹105 in grey market today.
U.S equities recouped gains and ended higher led by a rally in shares of tech giant Microsoft, after it reported a double-digit revenue growth. The Dow Jones rose 0.19%, the S&P 500 gained 0.21% while the Nasdaq dropped 0.01%. The yield on the benchmark 10-year U.S. Treasury note rose to 2.817%. Brent crude, increased 0.3% to end at $105.32 a barrel. Meanwhile, Facebook’s parent company, Meta Platforms, reported its slowest sales growth in a decade but surpassed Wall Street consensus forecast for its profits. Moreover, investors digested earnings reports and weighed concerns about inflationary pressures, the prospect of faster monetary policy tightening by the Federal Reserve and the surging cases of Covid-19 in China.
Domestic equities ended lower following a sell-off in global markets as concerns over world economic growth68 emanated. Nifty lost 0.98%, while broader markets outperformed the main indices as Nifty MidCap and Nifty SmallCap declined 0.9% and 0.6% respectively. All sectoral indices ended in red. Nifty Fin Service plummeted the most at 1.5%, followed by Nifty Bank and Nifty PVT Bank which fell 1% and 0.9% respectively. Additionally, news flow on the Russia-Ukraine crisis and resurgence of COVID cases remained in focus. FIIs net sold shares worth Rs4,064 crore while DIIs net bought shares worth Rs1,918 crore. The market is likely to remain volatile this as traders roll over their positions in the F&O segment from the April series to May series. The next batch of Q4 results and management commentary, global stock market trends, and the movement of rupee and crude oil prices are likely to assess market sentiments in the near future. Moreover, the ongoing Russia-Ukraine crisis and sanctioning of Russian products would have high negative bearings on global and Indian equities.
The markets are likely to see gap up opening, SGX nifty is up 147 points compared to Yesterday’s spot Nifty closing. Asian markets trading in green with Nikkei is up 0.6%, while Hang Seng is up 0.8%.
On 27th Apr’22, USDINR made a gap up opening at 76.67 levels and surged towards 76.75 levels tracking bearish Asian equities. However, soon the trend of the currency changed, pulling it towards 76.51 levels on the back of huge dollar selling by exporter companies. In the upcoming session, we may see Rupee testing 77 levels once after which we could see some opportunistic selling happening to bring it once again to the positive territory. Not forgetting, the upcoming IPO-related inflows that could give a further boost to the currency.
In cryptocurrencies, Bitcoin price today surged even as it remained below the $40,000 mark. The world's largest and most popular cryptocurrency surged more than 2% to $39,230. The global crypto market’s value today gained over 3% in the past 24 hours to $1.9 trillion, according to pricing from CoinGecko.
Gold prices weakened on Thursday to a two-month low as an elevated dollar hurt demand for greenback-priced bullion, while an impending U.S. interest rate hike also dampened the metal's appeal as an inflation hedge.
Spot gold was down 0.2% at $1,882.49 per ounce, as of 0225 GMT, after hitting its lowest since Feb. 24 earlier in the session. U.S. gold futures slipped 0.4% at $1,881.40.
Gold has been holding very well above $1,900, but has seen pressure from the dollar, and the underlying factor of the Fed being expected to raise interest rates by 50 basis points next week, said Brian Lan, managing director at dealer GoldSilver Central.
Our channel check suggests that March saw strong growth in most of the categories led by increased stocking by dealers/retailers in anticipation of sustained price increase. After two consecutive bad summers, we have seen strong offtake in air conditioner category even as demand for air-cooler remain soft. In whitegoods, demand for Direct cool (DC) refrigerator category remains muted; whereas there is continuous shift towards premium products (Frost Free Ref, front load washing machine). Channel feedback suggest that rising inflation may adversely impact demand in appliances and white goods. Demand remains muted in rural India given increased prices in basic categories across all products (particularly in fans).
We maintain Crompton consumer as our top pick given strong market position in core categories, expected synergy gains from butterfly acquisition and attractive valuation (28x FY24 EPS). Voltas will be a key beneficiary of strong AC demand, in our view. We retain hold on Voltas as Volt-Bek JV continues to be under investment phase and ramp-up is slower than expectations, in our view.
Japanese shares rose on Thursday as technology heavyweights led the gains, although investors remained cautions ahead of an outcome of a two-day Bank of Japan (BOJ) policy meeting.
By 0149 GMT, the Nikkei share average was up 0.5% at 26,516.32, after entering negative territory earlier in the session. The broader Topix had risen 0.83% to 1,876.13.
"Sentiment was supported by a very limited loss on the Nasdaq overnight after its big losses in its previous session," said Takatoshi Itoshima, a strategist at Pictet Asset Management.
"But, investors were very cautious as they await the outcome of the BOJ's policy meeting. It is unlikely that the central bank would change its dovish stance, but if it does, the currency market could move and that would affect the stock market."
6 stocks to buy or sell today — 28th April
The global economy will expand more slowly than predicted three months ago, according to Reuters polls of over 500 economists, who said higher commodity prices and an escalation in the Russia-Ukraine war could prompt another downgrade.
Already under pressure from monetary tightening as central banks try to stem rising inflation, world economic output was dealt a body blow when Russia invaded Ukraine on Feb. 24, sending commodity prices through the roof and triggering waves of economic sanctions.
When asked to name the biggest two downside risks to the global economy this year, the top picks of roughly 200 respondents were persistently higher commodity prices and a further escalation in the Russia-Ukraine war.
Share markets steadied on Thursday, taking comfort in technology earnings, though an energy crisis in Europe and China's lengthy lockdowns kept the mood cautious and have propelled the dollar close to 20-year highs as investors seek out safety and yield.
Nasdaq 100 futures were up 1% in the Asia session and S&P 500 futures rose 0.7% after Facebook owner Meta beat Wall Street profit forecasts and said it had eked out user growth, sending its shares up almost 20% after hours.
A rally in Microsoft shares overnight also helped Wall Street indexes to a steady close.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5%, led by a 1% bounce in Australian stocks from Wednesday's one-month trough.
Oil prices edged lower in early Asian trade on Thursday as concerns about rising coronavirus cases in China, the world's biggest oil importer, weighed on futures markets.
China's capital Beijing reported 48 new symptomatic and 2 new asymptomatic COVID-19 cases for April 27, state broadcaster CCTV reported on Thursday.
The city recorded 31 symptomatic cases a day earlier and three asymptomatic ones, as it began a mass testing program aimed at containing a new outbreak.
Brent crude futures fell 37 cents, or 0.4%, to $104.95 a barrel by 0006 GMT. U.S. West Texas Intermediate crude futures fell 27 cents, or 0.3%, to $101.75 a barrel.
Eurozone stocks wobbled and the euro struck a five-year low against the dollar on Wednesday as worries over gas supplies ratcheted higher.
Meanwhile, Wall Street saw something of a recovery from sharp losses the previous day caused by ongoing worries about growth, rising interest rates and inflation, though the Dow and S&P 500 won only 0.2 percent each and the hard-hit tech stocks in the Nasdaq ended flat.
Facebook rebounded from a drop in users early this year and its parent Meta posted a profit ahead of Wall Street targets, defying low investor expectations with a quarterly report that sent shares up 20%.
Meta CEO Mark Zuckerberg also said that the company would scale back costs and was investing in artificial intelligence tools to improve recommendations and ads, a sign Meta is buckling down to make money while working on its long-term ambitions to build the metaverse.
Its stock rose 19% in after-hours trade on Wednesday.
Key U.S. equity indexes ended higher after choppy trade on Wednesday on a boost from strong earnings from Microsoft and Visa, as commodity stocks lifted European shares to their first gain in four sessions.
The euro dropped to its weakest since 2017 after Russia halted gas supplies to Bulgaria and Poland, and investors fretted more about the region's economy.
The dollar continued its surge, on course for its biggest monthly gain since January 2015 as expectations mounted that the U.S. Federal Reserve will hike interest rates aggressively in coming months and the American economy will be stronger than the euro zone.
The Dow Jones Industrial Average rose 0.19% to end at 33,301.93 points, while the S&P 500 gained 0.21% to 4,183.92.
The Nasdaq Composite dropped 0.01% to 12,488.93.
Microsoft Corp jumped 4.8% % and Visa Inc surged 6.5%% on strong earnings, helping boost the S&P 500.
Some of Wall Street's biggest names have reported results this week, with investors seeking a counterweight to the deluge of negative news that has pounded stocks.
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