Home / Markets / Live Blog /  Sensex soars 1041 pts, Nifty ends above 16,650; M&M, Titan roar, IT stocks shine

Sensex soars 1041 pts, Nifty ends above 16,650; M&M, Titan roar, IT stocks shine

Market Closing: Indian indices ended strongly on Monday, rising close to 2% amid positive global cues (MINT_PRINT)Premium
Market Closing: Indian indices ended strongly on Monday, rising close to 2% amid positive global cues (MINT_PRINT)

  • Market Closing: Indian indices on Monday surged around 1.9% supported by strong buying interest in IT, auto and realty stocks as markets continued its winning run amid positive global trends.

Indian indices on Monday continued their winning run as both the Sensex and Nifty advanced close to 2%, tracking supportive trends from Asian peers. Investors benefited from a rally in tech stocks as indices gained from a positive global mood and easing of restrictions in China. Shares rose in Japan, South Korea, Australia, Shanghai, and Hong Kong.

30 May 2022, 03:45:10 PM IST

Sensex jumps 1041 pts, Nifty ends above 16,650; all sectors in the green; IT, realty rally

Indian indices on Monday closed higher for the third straight session, tracking positive global trends, led by strong support in market heavyweights Titan, Infosys, M&M, Reliance, and TCS.

The Sensex gained 1041.08 points, or 1.9%, to close at 55,925.74, while Nifty50 added 308.95 points to end at 16,661.40. Sectorally, all the sectors ended in the green, with realty, IT, and auto stocks recording big gains.

On the 30-stock index, the most gains were made by M&M, Titan, Infosys, L&T, and HCL, among others, while Kotak Bank, Sun Pharma, and DRL were among the biggest losers.

On Nifty50, M&M, Infosys, Titan, and Adani Ports made the most gains, while Kotak Bank, JSW Steel, and Sun Pharma were among the biggest laggards.

Sensex at close
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Sensex at close
30 May 2022, 03:19:08 PM IST

The coming global recession - will India buck the trend?

After a two-year hiatus due to the Covid-19 pandemic, the world’s top leaders met at the Swiss mountain village ofDavosthis week to tackle global issues and find solutions to the world's most immediate challenges.

30 May 2022, 02:57:14 PM IST

Sensex at 3 pm: M&M, Titan, Infosys, TechM rally, Kotak Bank, Sun Pharma register losses 

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30 May 2022, 02:43:39 PM IST

Bounce Infinity to set up battery swapping infra across BPCL fuel stations

Bharat Petroleum Corporation Limited (BPCL) and Bounce Infinity have joined hands to fortify the Bounce Infinity’s extensive battery swapping infrastructure. Under this partnership, Bounce Infinity will set-up battery swapping stations across Bharat Petroleum fuel stations in a phased manner. The company aims to set up 3,000 stations across top 10 cities.

30 May 2022, 02:25:24 PM IST

Sectoral indices: Auto, PSU banks, realty, consumer durables surge

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30 May 2022, 02:04:20 PM IST

Stocks rise, dollar struggles on Fed bets

World shares rose on Monday and the dollar was pinned near five-week lows on hopes of an eventual slowdown in U.S. monetary tightening following sharp interest rate hikes in June and July.

Helping to mellow the mood was news that Shanghai authorities would cancel many restrictions on businesses resuming work from Wednesday, easing a city-wide lockdown that began two months ago.

The MSCI's benchmark for global stocks rose 0.6% to its highest in more than four weeks by 0745 GMT, driven by a positive open in Europe and strong gains in Asia overnight. The index is up 0.4% so far this month.

The pan-European STOXX 600 equity benchmark gained 0.7%, while Japan's Nikkei added 2.2% and Chinese blue chips firmed 0.7%.

30 May 2022, 01:55:14 PM IST

Bitcoin rallies as China’s Covid easing adds to risk-on mood

Bitcoin posted its biggest gain in two weeks, climbing close to $31,000 as China’s easing of Covid curbs stoked investor enthusiasm for riskier assets.

The largest cryptocurrency advanced as much as 5.8% to $30,858.53 on Monday morning in London. Ether and smaller tokens like Avalanche, which got pummeled last week even as Bitcoin held relatively steady, also gained. Stocks advanced in Asia and Europe after the S&P 500 rallied on Friday.

30 May 2022, 01:32:34 PM IST

Margin expansion despite input inflation: ICICI Securities on Sumitomo Chemicals

We model Sumitomo to gain market shares from smaller players in Indian agrochemicals. We also believe outsourcing of products to global group companies offers huge value creation opportunity to Sumitomo India in medium-long term. It will benefit from its parent’s R&D support and distribution expansion in India. We model it to report earnings CAGR of 11.1% over FY22-24E and maintain ADD rating on the stock with a revised DCF-based target price of Rs465 (implied 44x FY24E EPS; earlier TP: Rs440).

30 May 2022, 01:29:37 PM IST

Subdued margin; slow recovery ahead: ICICI Securities on Jubilant Pharmova

We believe near to medium term growth would remain under pressure due to pricing pressures in the US, regulatory issues, slow recovery in the API business and inflated costs. However, recent correction (~44% in last 6 months) in the price makes valuations reasonable. Hence, we upgrade the stock to ADD from Hold with a revised TP of Rs447/share (earlier: Rs550/share)

30 May 2022, 01:15:32 PM IST

Equity markets extend Wall St rally as China eases curbs

Markets rose Monday as investors rediscovered some verve after the release of healthy US data and as China eases some of its strict Covid curbs in Shanghai and Beijing, lifting hopes for the world's number two economy.

The gains extended a positive end to last week for global equities with some commentators saying there was a growing hope that the months-long sell-off may have run its course.

Wall Street provided a strong lead and snapped a series of weekly losses, with Friday's rally supported by data showing an easing of the key personal consumption expenditures (PCE) price index.

Markets have been pummelled this year as soaring prices -- caused by the Ukraine war, supply chain snags and China's lockdowns among other things -- forced central banks to hike interest rates and warn of more to come.

30 May 2022, 01:14:11 PM IST

Terra Luna Classic rallies over 60% after crashing post 2.0 launch

The original Terra Chain has been rebranded as Terra Classic and Terra has been relaunched as Terra 2.0 as last week developers behind failed stablecoin TerraUSD have voted to abandon the token in favor of creating a new blockchain and digital asset weeks after the cryptocurrency collapsed.

30 May 2022, 12:59:02 PM IST

Nifty50 rises close to 2% in afternoon trade; M&M, Infosys, Titan, HCL top gainers, JSW Steel, Kotak Bank top losers

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30 May 2022, 12:54:14 PM IST

China stocks close up as Covid curbs ease

China stocks rose on Monday as the capital Beijing and financial hub of Shanghai eased stringent COVID-19 control measures, with consumer and travel stocks leading the gains on expectation of returning to normal life.

The blue-chip CSI300 index ended 0.7% higher at 4,029.02, while the Shanghai Composite Index gained 0.6% to 3,149.06 points.

30 May 2022, 12:37:03 PM IST

Pharma stock declares dividend at 200% for FY22

Unichem Laboratories said its board has recommended a dividend of 4 (200%) per equity share of 2/- each, for FY22, subject to approval of shareholders at the ensuing Annual General Meeting (AGM). Shares of Unichem Labs rallied more than 17% to 278 apiece on the BSE in Monday's trading session.

30 May 2022, 12:26:27 PM IST

Subdued quarter; upgrade to BUY on valuation comfort: Reliance Securities on BEML

We upgrade our rating to BUY from HOLD as the stock has corrected more than 30% since 18th April, 2022 and provides 53% return from the current level. We maintain our earnings estimates and Target Price of Rs2,000, valuing the stock at an unrevised P/E of 40x FY24E earnings.

30 May 2022, 12:17:46 PM IST

Showing Resilience Amidst Challenging Times; Maintain BUY: Axis Securities on Bata India

Given the healthy business recovery in Q4FY22 and cautiously optimistic demand outlook going ahead, we maintain a BUY on the stock with an unchanged TP of 2,200/share and a target multiple of 43x (40-45x 5yr average PE band and discount to some of its listed retail peers) as we expect Bata’s valuations to catch up going ahead.

30 May 2022, 12:08:59 PM IST

Axis MF issues statement on reports of search operations at offices in front running case

Axis Mutual Fund (MF) said it continues to work and corporate with regulatory authorities after reports suggested that certain actions have been conducted by the regulatory authorities concerning the AMC, and related issues.

30 May 2022, 12:05:47 PM IST

Asia stocks swing to 3-week high, dollar struggles

Asian stocks tracked Wall Street higher on Monday while the dollar was pinned near five-week lows as investors wagered on an eventual slowdown in U.S. monetary tightening, albeit after sharp hikes in June and July.

Helping to mellow the mood was news that Shanghai authorities will cancel many conditions for businesses to resume work from Wednesday, easing a city-wide lockdown that began two months ago.

The Memorial Day holiday in the United States made only a limited impression on month-end demand and MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1.9% to a three-week high.

30 May 2022, 12:04:06 PM IST

M&M shares rally to record high post strong Q4 show

Shares of Mahindra & Mahindra (M&M) rose to record high of 1,006 apiece on the BSE in Monday's early deals after the automaker reported a five-fold jump in standalone profit at 1,192 crore for its fourth quarter that ended March 31, 2022.

30 May 2022, 11:44:14 AM IST

Gold prices gain as dollar weakness lifts appeal

Gold prices rose on Monday as the U.S. dollar weakened, but recent gains are unlikely to stave off another monthly fall for greenback-priced bullion.

Spot gold was up 0.4% at $1,860.77 per ounce, as of 0451 GMT. U.S. gold futures also climbed 0.4% to $1,865.00.

"With the three-day holiday in the United States, which means lower liquidity than usual, and a lack of top-tier data until Wednesday, we may find that gold will remain nailed to its tight range around $1,850 unless a new catalyst arrives," City Index senior market analyst Matt Simpson said.

30 May 2022, 11:39:49 AM IST

Commodities turn higher as China loosens its virus restrictions

Industrial commodities in China mostly rose as the number of Covid-19 cases fell and the government began to loosen its restrictions that were choking the economy.

The virus is now deemed under control in Beijing, while Shanghai’s outbreak appears to be heading that way as officials outlined their plan to revive the city after a two-month lockdown. Measures include allowing manufacturing to restart, accelerating property approvals and making car purchases cheaper, all metals-intensive areas that had been hit hard by the virus.

30 May 2022, 11:37:37 AM IST

Dollar slides toward monthly loss as Fed bets ease

The dollar was under pressure in Asia on Monday and was headed for its first monthly drop in five months as investors have scaled back bets that rising U.S. rates will spur further gains and as fears of a global recession have receded a little. The week ahead is full of data that could provide clues on the outlook for global growth, U.S. interest rates and the dollar with Chinese Purchasing Managers' Index figures, U.S. jobs numbers and growth data in resource bellwether Australia.

30 May 2022, 11:36:05 AM IST

US economy kicks off second quarter on strong note; rise in inflation slowing

U.S. consumer spending rose more than expected in April as households boosted purchases of goods and services, and the increase in inflation slowed, which could underpin economic growth in the second quarter amid rising fears of a recession.

The economy's near-term prospects were also brightened by other data from the Commerce Department on Friday showing the goods trade deficit narrowed sharply last month. A record trade deficit caused a contraction in output in the first quarter.

30 May 2022, 11:29:11 AM IST

Ethos shares make discounted debut. Buy, sell or hold?

Ethos shares made a discounted debut at 825 per share levels on NSE and at 830 apiece on BSE, around 6 per cent lower from its upper price band of 878 per shares. However, weakness in the stock further continued as Ethos share price slipped below 800 levels making intraday low of 792 per share on BSE. According to stock market experts, Ethos shares were priced at higher valuations and weakness in the stock may continue for few more sessions. They said that the stock may go down up to 640 to 650 levels. They advised allottees to exit on major bounce back while they strictly advised positional investors to avoid any fresh position in the counter.

30 May 2022, 11:25:28 AM IST

Broad market indices: Nifty50 gains over 2%; India VIX eases 5.3%

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30 May 2022, 11:08:52 AM IST

Mixed quarter; optimistic outlook: YES Securities on Cummins India

We expect the company to report Revenue/PAT CAGR of 22%/21% over FY21‐24E factoring the 1) change in product mix, 2) price hike, 3) margin expansion and 4) recovery in export markets. The stock is trading at 31.0x/25.5x FY23E/24E. We maintain our BUY rating with a TP of Rs1,195, valuing the stock at PE of 30x FY24E, given strong export visibility. We slightly tweak our FY23E/FY24E EPS estimates by ‐ 1%/3% respectively to account for margin pressures going ahead.

30 May 2022, 11:01:45 AM IST

Moving up the curve: YES Securities on PSP Projects

PSP Projects Ltd (PSPPL) 4Q performance was healthy with revenues and margins coming above our estimates. With Surat Diamond Bourse being on the verge of completion and expected to be done in 1QFY23; the company would be eligible to focus on single large ticket size project worth Rs20‐25bn. On the back of strong awarding momentum and robust order book of Rs43bn, the management gave guidance of 20‐25% YoY revenue growth along with EBITDA in the range of 11‐12% in FY23.

With strong order book, timely project execution and prudent management pedigree, we expect PSPPL to post a revenue / EBITDA CAGR of 15%/14% over FY22/FY24E.

At the CMP, the stock trades at an EV of 6.7x/ 5.1x FY23E/ FY24E EBITDA. Looking at the strong guidance we have revised our target from Rs675 to Rs716 and continue to maintain ‘BUY’ rating on the stock valuing the EPC business at 12x FY24E EPS, implying an upside potential of 38% from the current levels.

30 May 2022, 10:57:31 AM IST

Tata Motors signs agreement for potential purchase of Ford's Gujarat plant

Tata Motors Ltd said on Monday its electric mobility unit has signed an agreement to potentially acquire Ford Motor's Sanand vehicle manufacturing facility in Gujarat.

The U.S. automaker last year stopped production in India, where it had a less than 2% share of the passenger vehicle market and had struggled to turn a profit for more than two decades.

The company said earlier this month it was seeking options for its two factories in the country while shelving plans to make electric vehicles in India for exports.

The memorandum of understanding between Tata Passenger Electric Mobility Ltd, Ford India Private Ltd and the government of Gujarat includes the land, assets and all eligible employees working at the Sanand facility.

30 May 2022, 10:55:21 AM IST

Earnings miss estimates on higher expenses:  YES Securities on ONGC

We maintain our REDUCE rating on ONGC, with a TP of 150/sh, as we believe that inspite of current high crude oil price environment, in the longer run, alleviation of geopolitical tension, restoration of demand-supply balance and focus on sustainable energy would likely put a lid on crude oil rally. Our TP of 150/sh comprises of a) 114/sh for the stand-alone domestic business, valued on DCF basis (Terminal value : 0; WACC: 13%) , b) 7.3/sh for OVL on EV/EBITDA of 4x FY24e and c) 28/sh for investment in listed equities, valued at 20% hold-co discount to 3M average market price

30 May 2022, 10:44:03 AM IST

Lower LPG -LHC sales lead to miss on estimates: YES Securities on GAIL

We maintain our BUY rating on GAIL, with a revised Mar’23 TP of 230/sh (from 250/sh), as we make minor adjustments to our earning estimates. Our SOTP based TP is a sum of a) stand-alone business valued at 154/sh on DCF basis , b) Listed investment valued at 39/sh and unlisted investments at 35/sh.

30 May 2022, 10:38:15 AM IST

Multibagger stock: Brewery stock turns ₹1 lakh to ₹1.08 crore in 19 years

Multibagger stock: Investing in a stock is like investing in a business. According to American billionaire Charlie Munger, money is not in buy or sell of stocks, but in wait. Means, one should hold a stock as long as one can after investing. Brewery stock Radico Khaitan is a glaring example of how 'buy, hold and forget' strategy pays to its shareholders. Radico Khaitan share price has surged from 7.60 apiece levels to 826 per share levels in last 19 years, delivering around 10,700 per cent return to its shareholders.

30 May 2022, 10:30:49 AM IST

Top BSE losers: Hikal, ESAB India, Dhampur Surgar Mills bleed

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30 May 2022, 10:24:12 AM IST

Top BSE performers: Unichem Labs, 3M India, Timken India shine

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30 May 2022, 10:22:20 AM IST

BSE indices in early trade: Sensex jumps over 900 points

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30 May 2022, 10:18:11 AM IST

Rupee surges 12 paise to 77.46 against US dollar in early trade

The rupee appreciated 12 paise to 77.46 against the US dollar in opening trade on Monday, supported by a fall in the dollar index and positive domestic equities.

At the interbank foreign exchange, the rupee opened at 77.53 against the American dollar, then gained further ground to quote 77.46, registering a rise of 12 paise from the last close.

On Friday, the rupee had settled at 77.58 against the US dollar.

Global oil benchmark Brent crude futures surged 0.54 per cent to USD 120.08 per barrel.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.11 per cent lower at 101.55.

30 May 2022, 10:14:36 AM IST

Ethos shares fall further after listing at discount

Shares of Ethos made a tepid stock market debut on Monday with the stock listing at 825 on the NSE, a discount of more than 6% from its IPO issue price of 878 per share. On the BSE, Ethos shares started trading at 830 apiece, and fell further to 807 within minutes post listing.

30 May 2022, 10:03:47 AM IST

Petrol, diesel prices today: Fuel rates remain unchanged, Check latest rates

The prices of petrol and diesel remained steady on Monday since Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by 8 per litre, and 6 rupees per litre on diesel.

30 May 2022, 09:58:57 AM IST

Sensex jumps over 915 points in early trade

Equity benchmarks extended their rally on Monday, with the Sensex jumping over 915 points in early trade, aided by heavy buying in index majors Reliance Industries and Infosys amid a firm trend in Asian equities.

The 30-share BSE Sensex rallied 915.36 points to 55,800.02 in early trade. The broader NSE Nifty jumped 262.75 points to 16,615.20.

From the Sensex pack, Infosys, Titan, HCL Technologies, Larsen & Toubro, Reliance Industries, UltraTech Cement, Wipro, TCS and HDFC were the major gainers in early trade.

In contrast, Dr Reddy's was the only laggard from the 30-share pack.

Elsewhere in Asia, markets in Seoul, Shanghai, Tokyo and Hong Kong were trading in the green.

30 May 2022, 09:56:40 AM IST

Ethos share listing today. Experts predict 'tepid' debut

Ethos IPO listing date today: Shares of Ethos Limited are going to make debut on the Dalal Street today. As per the information available on the BSE website, the equity shares of Ethos Limited shall be listed and admitted to dealings on the BSE and NSE in the list of 'B' group of securities on 30th May 2022. Ethos shares will be listed in a special pre-open session (SPOS) at 10:00 AM today. According to stock market experts, Ethos shares may have a tepid but positive listing and Ethos share price may open around 900 to 930 apiece on Indian bourses.

30 May 2022, 09:51:44 AM IST

Rakesh Jhunjhunwala portfolio sees a hit of ₹540 crore in one month from these 2 stocks

Rakesh Jhunjhunwala portfolio: Following weakness in stock market, shares of Star Health and Insurance and Metro Brands have retrace4d up to 7 per cent in last one month. In last one month, Metro Brands share price has corrected from around 562 to 523, losing around 7 per cent whereas Star Health share price has retraced from around 700 to 663, logging near 5.50 per cent in this period. Due to this steep fall in these two Rakesh Jhunjhunwala stocks, Big Bull has lost near 540 crore in these two stocks in last one month.

30 May 2022, 09:46:01 AM IST

Nykaa shares surge post Q4 results. What analysts say

Shares of Nykaa surged nearly 3% to 1,390 apiece on the BSE in Monday's opening deals even as FSN E-Commerce, which operates under the Nykaa brand, reported a decline of about 57% in its consolidated profit to 7.57 crore for the fourth quarter ended March 2022, mainly account of new investments.

30 May 2022, 09:43:19 AM IST

Gold, silver rates today in India (30 May 2022): Yellow metal rises, silver prices go up

Gold and silver prices edged higher in Indian markets today but still remained in a narrow range. On MCX, gold futures rose 0.12% to 50,974 per 10 gram while silver edged up 0.2% to 62,247 per kg. In global markets, gold rates were choppy today as a weakening US dollar supported the precious metal but gains were capped amid an improvement in global risk sentiment that buoyed equities. Spot gold was up 0.2% at $1,856 while spot silver rose 0.1% to $22.13.

30 May 2022, 09:33:01 AM IST

Day trading guide for Monday

6 stocks to buy or sell today — 30th May

30 May 2022, 09:24:19 AM IST

Nifty50 at open: Surges over 16,550; Infosys, Tata Motors, M&M, Grasim shine; JSW Steel cracks

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30 May 2022, 09:20:52 AM IST

Sensex at open: Jumps over 600 points; Infosys, M&M, Wipro, HCL top performers

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30 May 2022, 09:14:11 AM IST

Nifty50 at pre-open: Trades above 16,500; M&M, TechM, Infosys top gainers

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30 May 2022, 09:12:23 AM IST

Sensex at pre-open: Jumps over 600 points; M&M, TechM, Infosys gain over 2%

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30 May 2022, 08:50:58 AM IST

LIC Q4 earnings today, dividend to be key focus

State-run insurance behemoth Life Insurance Corporation of India (LIC)'s board will meet today to consider payment of dividend, if any, and approve the audited Annual Financial Results (standalone and consolidated) for the quarter/year ended on March 31, 2022.

30 May 2022, 08:49:26 AM IST

Aether IPO: Latest GMP, how to check allotment status online

Aether Industries IPO allotment date: After closure of subscription, bidders and market observers are anxiously waiting for finalisation of share allocation of Aether Industries Limited IPO (Initial Public Offering). The tentative Aether IPO allotment date is 31st Mary 2022 and bidders are advised to check Aether Industries IPO allotment status online by logging in at BSE website or at the official registrar of the IPO — Link Intime India Private Ltd. Meanwhile, grey market is signaling change in sentiment after the relief rally on the Dalal Street last Friday. According to market observers, shares of Aether Industries Limited are available at a premium of 17 in grey market today.

30 May 2022, 08:42:40 AM IST

Growth engines fired, aided by strong execution; Maintain BUY: Axis Securities on Praj Industries

Praj’s reported the highest-ever quarterly revenue of 829 Cr (our estimate - 689 Cr),up 46%YoY and 42% QoQ. It posted an EBITDA of 74 Cr (our estimate – Rs59 Cr), a 3% YoY and 57% QoQ. Praj reported an EBITDA margin of9% (beating our estimate – 8.6%), an88bps QoQexpansion as operational leverage kicks in and raw material prices show signs of stabilising. PAT came in at 58 Cr (our estimate - 43 Cr) as compared to 52 Cr in Q4FY21, a growth of 11% YoY. The orderbook execution rate remained constant at 32%. The company’s key growth levers remain robust and therefore we maintain our BUY rating on the stock with an unchanged Target Price of 477/share, valuing the company at 22xFY24EPS.

30 May 2022, 08:40:00 AM IST

Views of Mitul Shah, head of research at Reliance Securities, on market

US equities extended gains and snapped the weekly losing streak. Both the S&P 500 and Dow finished with their best week since Nov’20. For the week, S&P 500 gain 6.6%, Nasdaq was up 6.8%, while the Dow Jones climbed 6.2%. The yield on the benchmark 10-year US Treasury note fell to 2.748%. US households boosted spending for a fourth straight month. Moreover, few retailers gained ~20% for the week led by strong earnings. Fears of a worst-case scenario appeared to abate this week. Stocks rose despite Fed’s latest meeting minutes, which showed a 50bps increase planned at each of the next two meetings.

Domestic equities ended mix in the week, taking positive cues from the US markets. For the week, Nifty increased by 0.5%, Nifty Mid-Cap was largely flat with a 0.1% rise and Nifty-Small Cap declined by 3.4%. Most sectoral indices ended in red for the week. Nifty Metal declined the most at 8.7%, followed by Nifty Commodities that was down 4.7%. Nifty Fin Service was the major gainer for the week and was up 4.3%, followed by Nifty PVT Bank, which was up 4%. RBI is looking at another phase of coordinated action between fiscal and monetary authorities. More rate hikes are on the way. And all eyes are on RBI and the US Fed, which are meeting in June, as the economic landscape goes through a furious churn. The Indian government has rolled out a string of measures to keep prices in control by reducing petrol and diesel prices. The borrowing plan for FY23 remains firmly on course despite an inflationary environment, reduced revenue after the fuel duty cut and a higher subsidy outgo for food and fertilizer.

The primary focus in the coming weeks will be on central banks’ policy measures to stabilize inflation. Changes in oil prices and amendments to import and export duties might play a role in assessing the market’s trajectory. The downside in Indian equities is likely to be limited as most of the macro risks are priced in, while the valuation and excess global liquidity are likely to provide support. However, the continued selling by FIIs and plunging rupee are likely to have economic implications in the near term. Globally, the Russia-Ukraine crisis and supply chain disruptions continue to impact global and Indian equities. The markets are likely to see gap up opening, SGX nifty is up 143 points compared to Friday’s spot Nifty closing. Asian Markets are trading in green, Nikkei is up 2% while Heng Seng is up 2.2%.

30 May 2022, 08:37:52 AM IST

Oil climbs ahead of EU meeting on Russia sanctions

Oil prices rose to two-month highs on Monday as traders waited to see if the European Union would reach an agreement on banning Russian oil ahead of a meeting on a sixth package of sanctions against Moscow for its invasion of Ukraine.

Brent crude futures gained 46 cents, or 0.4%, to $119.89 a barrel at 0111 GMT, while U.S. West Texas Intermediate (WTI) crude futures jumped 60 cents, or 0.5%, to $115.67 a barrel, extending solid gains from last week.

The EU is due to meet on Monday and Tuesday to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, which Moscow calls a "special operation" to disarm its neighbour.

30 May 2022, 08:35:26 AM IST

High realization to drive earnings: Prabhudas Lilladher on Oil India

We increase our FY23-24E estimates by 21%/26% to factor in higher crude oil (+USD85/75bbl vs USD80/70/bbl earlier) and LPG realization (USD700/600/ton vs USD500/ton earlier). OINL reported strong operational results with Q4 consolidated EBIDTA/PAT of Rs38.3bn (+74%Q/Q) and Rs25.2bn (+66%Q/Q), led by strong NRL profitability. Standalone EBIDTA/PAT was at Rs19.6bn (+55%Q/Q PLe Rs16.3bn) and Rs16.3bn (+31% Q/Q; PLe Rs9.8bn). We believe OINL’s earnings will ride on improving crude oil and gas realization, along with expansion of Numaligarh refinery (NRL) by 6MTPA (3MTPA capacity). Maintain ‘BUY’ with TP of Rs344 (Rs360), based on 3.5x/EV/E FY24E (5x earlier) and add value of investment in IOCL. We cut our target multiple due to concerns of subsidy sharing given large marketing losses which should come off as global refiners come back from maintenance shutdown.

30 May 2022, 08:29:38 AM IST

Intense competition affecting yields: Prabhudas Lilladher on Muthoot Finance 

Muthoot Finance (MUTH) recorded strong loan growth (6% QoQ and 10.3% YoY) led by gold loan AUM at 580bn, but growth came at the cost of lower yields (down by 200bps QoQ due to increased competition). PAT at 9.6bn came below our estimates of 10.8bn on account of weak NII, down 8.8% QoQ and 6.4% YoY. Write back of provisions aided PAT. Lower yields resulted in fall of NIM to 12.2% vs 13.7% in Q3’22.

We have reduced our EPS estimates for FY23 by 27% on account of lower NII driven by lower yields (we have lowered our yield to 18.5% from 22% earlier). We have maintained a 14% CAGR in gold AUM book. Our core book multiple stands at 2.6x PABV Sep’23E. Subsequently our SoTP now stands at Rs. 1,431 down from Rs1,714 earlier (standalone: Rs1,429 & subsidiary: Rs15). Reiterate BUY.

30 May 2022, 08:28:23 AM IST

Reliance Securities on JSW Steel

While JSW steel reported strong sales volume, EBITDA came under extreme pressure. JSTL has been the fastest-growing company in the Indian steel sector with capacity and volume growth of 10.3%/9.5% CAGR over the past 11 years. The company has the lowest conversion cost within India and scores very high compared to global peers as well. Over the past decade, on a standalone basis, JSTL has delivered an average EBITDA of Rs8,300/tonne. We currently have a BUY rating on the stock

30 May 2022, 08:17:49 AM IST

Tech-heavy stock markets see $63 billion of outflows in Asia

Tech-heavy stock markets in Asia are bearing the brunt of foreign selling as global growth concerns spurred by rising borrowing costs and the war in Ukraine sap appetite for risk assets.

Overseas funds have sold about a net $63 billion worth of shares in Taiwan, South Korea and India so far this year, according to the latest available data compiled by Bloomberg. The tech sector’s weighting in the Taiex, Kospi and Sensex gauges is higher than that in the broader MSCI Asia Pacific Index.

The exodus is the worst in Taiwan, with foreign investors having dumped a net $28.1 billion year-to-date. That’s even as global funds last week bought the most shares in two months.

30 May 2022, 08:11:46 AM IST

Gold prices dip as risk appetite climbs

Gold prices eased slightly on Monday, as investors turned to riskier assets in Asia, although a weakened dollar provided some support to greenback-priced bullion. Spot gold was down 0.2% at $1,849.37 per ounce, as of 0044 GMT. U.S. gold futures were down 0.2% at $1,848.50.

30 May 2022, 08:06:30 AM IST

Blackstone targets $5 billion for Asia private credit business

Blackstone Inc. is seeking a tenfold increase of assets in its Asia-Pacific private credit business to tap a market with a growing appetite for such financing.

The U.S. alternative asset manager aims to expand its private credit assets to at least $5 billion in the “near term" from the $500 million committed as of the fourth quarter of last year, said Paulo Eapen, who heads the operations in Europe and Asia-Pacific. Blackstone Credit began investing actively in the region in 2021.

While Asia makes up only a tiny fraction of the global private credit market, Blackstone is betting that demand will build as companies in the region increasingly look to diversify debt financing away from bank loans.

30 May 2022, 08:03:24 AM IST

Rally in emerging markets currencies is quickly losing steam

This month’s rebound in emerging-market currencies is set to falter, if technical indicators and economic forecasts are any guide.

A rally of about 2% in the MSCI Emerging Markets Currency Index has pushed the gauge to overbought territory on key momentum measures, just weeks after it climbed off an 18-month low. The basket of currencies also to close above key resistance on closely watched Fibonacci charts.

The deteriorating outlook for world growth adds to the headwinds, with the danger that China’s slowdown, the war in Ukraine and aggressive interest rate hikes combine to trigger recession across the globe. It’s a scenario the World Bank has warned of, and one that would see money flow into dollar-denominated haven assets at the expense of developing economies.

30 May 2022, 07:41:03 AM IST

Dollar drifts toward monthly loss as Fed bets ease

The dollar nursed last week's losses on Monday and was headed for its first monthly drop in five months as investors have scaled back bets that rising U.S. rates will spur further gains and as fears of a global recession have receded a little.

The week ahead is full of data that could provide clues on the outlook for global growth, U.S. interest rates and the dollar with Chinese Purchasing Managers' Index figures, U.S. jobs numbers and growth data in resource bellwether Australia.

Trade was likely to be lightened through Monday as U.S. stock and bond markets close for the Memorial Day public holiday.

Early in the Asia session the dollar was a fraction weaker on the euro at $1.0728, just above a five-week low, having dropped about 1.5% on the common currency last week.

30 May 2022, 07:36:22 AM IST

Hong Kong, mainland shares start with healthy gains

Hong Kong and mainland Chinese stocks opened higher Monday, in line with gains across Asia and following another rally on Wall Street, with confidence boosted by an easing of long-running Covid curbs in Shanghai.

30 May 2022, 07:30:10 AM IST

Asia stocks, US Futures rise as China curbs eased

Stocks in Asia and US futures advanced Monday after China eased some virus curbs and Wall Street had its best week since November 2020.

Japanese equities led gains as Australia and South Korea also rose. S&P 500 and Nasdaq 100 contracts climbed in a sign the bounce may have further to run. The S&P 500 wiped out its May losses and snapped a string of seven weekly declines as institutional investors rebalanced portfolios into the end of the month.

The dollar was steady and the euro fluctuated as the European Union failed to agree on a revised package of Russian sanctions. Cash Treasuries won’t trade in Asia because of the US Memorial Day holiday.

China reported fewer Covid-19 cases in Beijing and Shanghai, spurring the government to stimulate the faltering economy by easing some of the strictest virus controls.

Trader are pondering whether the bottom of the selloff is near as investors have been buying the dip after one of the worst starts to the year for equities. However, a wall of worries remains from hawkish central banks underscoring fears of a recession, escalating food inflation from the war in Ukraine and China’s lockdowns stunting economic activity.

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