Markets rallied towards the end amidst volatility with some support from strong economic data from the US. Apart from global cues, quarterly earnings reports from heavyweights remained the key accelerator with most results being in line with the estimates and mainly driven by sectors such as banking, automobiles and cement.
Indices rally towards the end to close around 0.5% higher; IT, Bank and Auto indices lead the rally
Equity benchmark indices traded volatile after a firm start on Friday but closed with decent gains amid positive trends in the global stock markets and foreign fund inflows. However, both benchmark indices shed around 0.8% overall this week.
The 30-share BSE Sensex climbed 300 points to close at 61,730. The NSE Nifty advanced 74 points to close at 18,203. Five of the 15 Nifty broad sectoral indices ended in red in today's session.
Tata Motors, Tech Mahindra and Infosys jumped around 2% each, followed by HCL Tech, M&M and Axis Bank. Powergrid, NTPC, Asian Paints and Titan were the main laggards in the S&P Sensex stock chart on Friday.
IT index jumped around 1.5% with Auto, Bank and Realty also ending in the green. Pharma, Consumer Durable and Oil & Gas shed in today's session.
Asian shares were mostly higher on Friday as hopes grow that the US Congress will reach a deal to avoid defaulting on the nation's debt.
Japanese stocks continued their upward trajectory, with the Nikkei 225 Stock Average reaching its highest level in nearly three decades, as optimism surrounding the avoidance of a US default contributed to the bullish sentiment that has fueled one of the strongest equity rallies of 2023.
The Nikkei 225 climbed 0.8% 35, propelling the blue-chip index to levels not seen since August 1990. Meanwhile, the Topix, which had already reached a 33-year high earlier this week, experienced a 0.2% gain, with the electronics manufacturers and service-sector companies providing significant support.
China stocks closed down on Friday as a slew of weak data weighed on investor sentiment. Hong Kong stocks, too, declined, led by tech shares after e-commerce giant Alibaba Group Holding Ltd posted weaker-than-expected earnings.
China's blue-chip CSI300 Index closed down 0.3%, while the Shanghai Composite Index lost 0.4%. Hong Kong's benchmark Hang Seng Index was down 1.4%, while the China Enterprises Index fell 1.8%. For the week, CSI300 Index edged up 0.2%, while Hang Seng Index declined 0.9%.
Europe's stock markets rose in opening deals on Friday, extending a global rally as optimism continued to grow that the United States would avoid a catastrophic debt default.
UK's main indices rose on Friday as data showing British consumer confidence hit a 15-month high added to the optimism that a deal over the U.S. debt ceiling was imminent.
Japan ‘seriously looking’ at joining India's UPI payments system
Japan is “seriously" evaluating adopting India’s UPI payments system as both governments look at promoting digital cooperation by creating interoperability where the digital payments system could bring ease of cross-border payments.
“Japan and India are trying to promote digital cooperation. We are now seriously thinking about joining the Indian UPI payment system," Japan's minister for digital affairs Kono Taro told Wion news on Thursday. (Read More)
Indian Oil eyes processing bio-naphtha for petrochemicals -chairman
Indian Oil Corp, the leading refiner in India, announced on Friday its plans to decarbonize its petrochemical feedstocks by incorporating bio-naphtha into its crackers.
The company aims to reduce carbon emissions and enhance sustainability by introducing bio-based alternatives in its production processes.
"To attain sustainability, bio-based feedstocks such as bio-naphtha and bio-ethanol are being envisaged as the natural transition for the petrochemical industry," the company's Chairman Shrikant Madhav Vaidya said at Asia Petrochemical Industry Conference, without providing a timeline. (Reuters)
FPIs back to black in Indian stocks, inflow of ₹14,500 crore in 2023 so far after record selling in 2022
After a record selling in 2022, foreign portfolio investors (FPIs) are back to black, and that too in just less than 5 months of 2023. Strong buying since March has finally replaced the FPIs selling into inflows in Indian stocks. Year-to-date, FPIs have recorded an inflow of ₹14,562 crore in Indian equities. May becomes the biggest monthly buying so far in 2023.
As per NSDL data, in 2023 till date, FPIs have purchased ₹14,562 crore worth of equities. May has recorded a whopping ₹29,141 crore inflow from the 1st to the 18th. It also needs to be noted that May has seen the biggest buying in 6 months. (Read More)
BNP Paribas India recommendations on SBI: Maintain BUY with an unchanged SoTP-based TP of INR740.-
Santanu Chakrabarti, Analyst – Banking and Finance, BNP Paribas India on State Bank of India:
Good performance on most parameters - SBIN’s 4QFY23 PAT of cINR167b (+c83% y-y) was c7%/c12% ahead of BNPPe/Bloomberg consensus estimates (BBGe) primarily due to lower provisions and a lower effective tax rate. PPoP of INR 246.2b missed BNPPe/BBGe by c9%/c6% mainly on higher opex costs. Management expects the cost-to-income ratio, which moved up 47bps y-y/561bps q-q to 54.7% because of wage revisions, to normalize in FY24. Net annualised credit costs remained low at 42bps, lower by 67bps y-y and 34bps q-q. NIM, at 3.4%, remained healthy despite moderately contracting by 14 bps q-q. Loan growth stayed robust at 16% y-y and management guided for 12-14% loan growth for FY24. Management remains confident of funding growth through internal accruals (CAR: 14.7%) and potential liquidity release from its still-high excess SLR portfolio.
· Asset quality remains robust - Asset quality remained strong with annualized credit costs at a meagre 42bps for 4QFY23 and 56bps for FY23. Slippages for FY23 stood at 68bps with GNPA/NNPA at 2.78%/0.67%. Corporate GNPA PCR stood at 98.6%. The restructured and SMA 1 and 2 book was just 0.9% of total loans with management highlighting that 30% of this aggregate has already been provided for.
· Strong operational performance - Loan growth remained robust at c16% y-y and c4.3% q-q, with growth across segments - Retail (+4.9% q-q), Agri (+4.7% q-q), SME (+2.5% q-q), Corporate (5.9% q-q) and Overseas (+1.3%). Deposits growth of 9.2% y-y remained in-line with system, led by TD (+11.4% y-y). CASA grew by 4.9% y-y. FY23 ROA was 1% with the bank delivering ROA in excess of 1% over the last three quarters.
· Retain BUY - We continue to ascribe 1.1x target multiple to 3QFY25E core banking P/BV as we expect SBIN’s ROE to hover in the mid-teens in the early part of the credit cycle over the next few years. We maintain BUY with an unchanged SoTP-based TP of INR740.
Tesla stops short of committing to India plant in renewed talks
A delegation of Tesla Inc. executives to India discussed the possible local sourcing of components and incentives but stopped short of proposing to build vehicles in the country, people familiar with the matter said, after the electric carmaker reopened dialog with the government after a year-long impasse.
While the automaker will eventually look to establish a domestic factory to tap India’s vast consumer market, it hasn’t yet presented a formal plan, the people said, asking not to be identified because the matter is private. The executives reiterated their concern about India’s high tariffs on imported cars during this week’s meeting, but the government doesn’t plan to change its tax regime to accommodate one automaker, one of the people said. (Read More)
Dev Information Technology announces excellent earnings for Q4 & FY23, Q4 revenue up 40% YoY
Dev Information Technology Q4 FY23 Earnings Report:
Key performance highlights (Q4FY23 vs Q4FY22 vs Q3FY23) (Consolidated)
- Revenue stood at ₹442.6 mn up 40% YoY and 62% QoQ
- EBITDA stood at ₹48.5 mn up 218% YoY and turns profitable QoQ (Q3 was loss)
- EBITDA Margin stood at 11% up 613 bps YoY
- Net Profit stood at ₹36 mn vs ₹1.6 mn last year Q4 and vs ₹16.6 mn in Q3 (QoQ)
- PAT Margin stood at 8.1% vs 0.50% last year in Q4
- EPS stood at ₹1.62 vs ₹0.07 Q4FY22 and ₹1.20 in Q3 (QoQ)
Key performance highlights (FY23 vs FY22) (Consolidated)
- Revenue stood at ₹1241.5 Mn up 24.37% YoY
- Net Profit stood at Rs. 90.20 Mn (turned profitable YoY)
- EPS Stood at Rs. 4.06 vs (0.03)
Angel One Ltd on why Tech stocks are rallying in today's session: Major Midcap IT counters have started gaining traction for quite some time which has been lately followed by the heavyweights as well
Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One Ltd: The Nifty IT index has seen some respite in today’s session amidst the positive sentiments in the global markets, especially in the US bourses. Major Midcap IT counters have started gaining traction for quite some time which has been lately followed by the heavyweights as well, construing a positive development in the index. The Nifty IT index has been in a slender range for the past couple of trading weeks and any sustainable buying in the followed-up session could attribute to the bullish quotient in the overall space. For the time being, 28000-27800 is likely to act as strong support in the near period, while on the higher end, the 200 SMA of the 28850 odd zone is expected to act as the immediate hurdle for the index in the comparable period.
PL Stock Report - Restaurant Brands Asia (RBA IN) : India remains steady; Indonesia set to improve - Accumulate
Amnish Aggarwal - Head of Research, Prabhudas Lilladher Pvt Ltd on Restaurant Brands Asia (RBA IN): Rating: ACCUMULATE | CMP: Rs123 | TP: Rs132
Q4FY23 Result Update - India remains steady; Indonesia set to improve
§ Targets 450 stores for BK India in FY24
§ Indonesia expected to breakeven supported by corrective measures in FY24
Restaurant Brands Asia (RBA) Mgt has given an optimistic outlook as domestic business parameters are improving in terms of ADS & profitability and business restructuring in Indonesia should provide breakeven by FY24. RBA reported EBITDA margin slippage of 136bps QoQ due to increase in operating expenses and demand slowdown which resulted in ADS dropping to Rs108k. Indian unit has seen launch of Rs99 value meal, new variants in Whopper and Masala Chai in BK Café which is expected to increase throughput in coming years. Indonesia operations continue to have lower ADS vs pre COVID; new strategy is expected to improve ADS with 1) relaunch/innovation in Whopper range 2) increased focus on chicken offering 3) launch of desserts and 4) focus on FSDT format & store rationalization.
We believe RBA India operations are on track and should report low to mid-single digit pre IND AS EBIDTA in FY24 with meagre profits in FY26. We believe Indonesia business will take time to turnaround despite corrective measures implemented in FY23 given initial losses in Popeyes (25 stores in FY24). We value the company at ₹132 (Rs121 earlier) on SOTP basis. Maintain ACCUMULATE.
Axita Cotton hit 5% lower circuit as Board to consider share buyback next week
Shares of Axita Cotton hit a lower circuit during the afternoon deals on Friday, after the company announced that the Board is going to consider share buyback proposal next week. The stock opened today's trading session at an upside gap of ₹27.01 apiece and went on to hit a lower circuit limit of ₹24.70.
“This is to inform you that the meeting of Board of Directors of the Company is scheduled to be held on Tuesday, May 23, 2023, inter-alia to consider In terms of Regulation 29(1)(b) of the Listing Regulations, Proposal for buyback of fully paid-up equity shares of the Company, in accordance with the applicable provisions under the Companies Act, 2013 (including the rules and regulations framed thereunder), the Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018, as amended, and other applicable laws," said Axita Cotton in a stock exchange filing. (Read More)
Gland Pharma’s miserable Q4 weighs on the stock; challenges galore ahead
Gland Pharma’s shares plunged 20% in Friday’s morning trade on the National Stock Exchange, and also hit a new 52-week low. The reason is not surprising. The latest financial results for the three months ended March (Q4FY23) are quite disappointing with consolidated Ebitda falling as much as 52% year-on-year to ₹168 crore. Ebitda is earnings before interest, tax, depreciation, and amortization.
Analysts have cut their earnings estimates for the company post Q4 results. To be sure, it is not that Gland was having a good run prior to the March quarter results.
“Issues keep mounting for Gland, from supply chain issues to now heightened competition, price erosion and client-related issues (including regulatory challenges and inventory rationalization)," said analysts from Nirmal Bang Institutional Equities in a report on 19 May. They remain cautious on Gland due to elevated competition in key products and client-related issues. “If competition intensifies further and margins also abate, then we may further reduce our earnings," said Nirmal Bang’s analysts. (Read More)
Kotak Mahindra Asset Management views on today's market: With markets trading close to long-term average valuations, earnings delivery is likely to be crucial for the markets going forward
Shibani Sircar Kurian, Senior EVP & Head- Equity Research, Kotak Mahindra Asset Management Company: The Indian equity markets remained volatile though with an upward bias for the week ended 19th May 2023. On key trend emerging is that Foreign institutional investors have turned net buyers of Indian equity. So far in FY24, net FII inflows stood ~USD3bn vs outflows of USD17bn and USD6bn in FY22/23 respectively.
The US Federal Reserve hiked the target range for the Federal Funds rate by 25 bps to 5-5.25% during its May 2023 meeting. The decision took into account the modest pace of economic activity in 1QCY23, robust job gains in recent months, a low unemployment rate, and persistence of elevated inflation. However, globally and in India, inflation has started to ease. April CPI inflation in India moderated to 4.7% vs 5.6% in March 2023.
The domestic Q4FY23 corporate earnings season is underway and so far results have been largely in line with estimates driven by sectors such as banking, automobiles and cement. Margins have started to improve sequentially with the correction in commodity costs. FY24 nifty earnings estimates have been stable with the consensus baking in mid to high teen earnings growth. Earnings growth continues to be led by domestic facing sectors.
With markets trading close to long term average valuations, earnings delivery is likely to be crucial for the markets going forward. Further, rural wage growth appears to have bottomed out and has hovered around 6% YoY levels for the past 6 month. One key monitorable for rural demand would be trajectory and dispersion of monsoons especially given the fear of El-Nino.
GAIL India Q4 results: Share price falls over 3% as Q4 net profit tanks 77.5% to ₹603.52 crore
GAIL India share price fell over 3% Friday, a day after the company reported a sharp drop in its profit for the quarter ended March 2023. The stock declined as much as 3.10% to hit an intraday low of ₹102.95 apiece on the BSE.
The largest gas distributor in the country, GAIL India's net profit in Q4FY23 plummeted significantly by 77.5% to ₹603.52 crore from ₹2,683.11 crore, YoY, due to weakness in its gas transmission and petrochemicals segment.
Revenues during the quarter increased 22% to ₹32,858 crore led by high gas prices. (Read More)
India and Germany plan to broaden trilateral development partnership initiatives; to focus on SDGs in developing countries
India and Germany are planning to expand their trilateral development partnership initiatives, focusing on Sustainable Development Goals (SDGs) in the global south across Asia, Africa and the Indo-Pacific region, according to persons aware of the matter.
Launched in 2022, these trilateral projects have seen India engage with developing countries such as Peru, Malawi, Cameroon and Ghana on various fronts so far. The projects range from promoting agri-business amongst women in Malawi to increasing potato yields in Cameroon through agri-tech innovation. (Read More)
Pharma index sheds a per cent with most stocks trading in the red; Gland Pharma hits lower circuit
BYJU'S refutes claims of hiding $500 million through US-based subsidiary BYJU Alpha
Edtech giant BYJU'S has refuted claims that it is hiding $500 million through its US-based company, BYJU'S Alpha. Terming BYJU's Alpha as a non-operative US entity with no employees, the ed-tech company called the claims made in the Delaware court ‘bewildering’.
In a statement about the matter, the company said, “This is an interim order of a Delaware Court to maintain status quo in relation to BYJU’S Alpha, a non-operative US entity set up to receive the Term Loan B, with no employees."
“The litigants have made bewildering claims that BYJU'S “moved" $500 million from BYJU'S Alpha, insinuating that these acts were somehow wrongful. This is entirely incorrect. We categorically deny these allegations." the company added. (Read More)
Kamdhenu Steel Q4 FY23 Results: Revenues grow 22% YoY to ₹732 crores
Kamdhenu Limited, manufacturer and seller of TMT Bars, has delivered revenue growth of 22% YoY to ₹732 crores, EBITDA grew by 10% YoY to ₹60 crores and PAT growth of 4% YoY to ₹ 41 crores for FY23. In a press statement, the company said that total brand sales turnover increased by 32% YoY to over ₹21,000 crores with franchisee volumes growing 21% YoY. Revenue from royalty income went up by 25% to ₹114 crores for FY23.
Tokyo Stocks Extend Rally as Nikkei 225 Reaches 1990 High
Japanese stocks continued their upward trajectory, with the Nikkei 225 Stock Average reaching its highest level in nearly three decades, as optimism surrounding the avoidance of a US default contributed to the bullish sentiment that has fueled one of the strongest equity rallies of 2023.
The Nikkei 225 climbed 0.8% to reach 30,808.35, propelling the blue-chip index to levels not seen since August 1990. Meanwhile, the Topix, which had already reached a 33-year high earlier this week, experienced a 0.2% gain, with the electronics manufacturers and service-sector companies providing significant support.
Both indices completed their sixth consecutive week of gains, as analysts from Goldman Sachs Group Inc. to Macquarie Group Ltd. expressed confidence in a sustained bull run, citing corporate governance reforms that boosted valuations and accommodative monetary policies as tailwinds. Morgan Stanley predicted that the Topix could potentially rise an additional 9% to reach 2,350, driven by factors such as improvements in return-on-equity and a favorable yen exchange rate. (Bloomberg)
Textile stock jumps 4% after announcement of ₹5.75 per share dividend
Textile stock Arvind shares are one of the multibagger stocks that have delivered stellar returns to its shareholders in the post-Covid market rebound. In the post-Covid rally, Arvind share price has surged from around ₹20 to ₹120 apiece levels, delivering around a 500 per cent return to its positional shareholders. However, this is not the end for Arvind shareholders. The small-cap multibagger stock has declared a 5.75 dividend payment to its eligible shareholders, which is around 5 per cent of Arvind share price today. The small-cap textile stock announced dividend payment while announcing its Q4 results on Thursday. (Read More)
Noon Update: Indices turn green towards noon as IT stocks lift Sensex by 100 pts and Nifty by 20 pts
Interglobe Aviation stock volatile after Q4 numbers: What should investors do, buy or sell?
India's largest airline in terms of market share, Intergloble Aviation traded on a volatile note on Friday after its fourth quarterly figures for FY23. The stock jumped by 2% in the opening bell but corrected soon after. Experts have given a mixed reaction to Indigo's earnings and their recommendation on the stock price also varies accordingly.
Analysts at JM Financial in their note said, " Indigo delivered a profit of ₹9.1 billion lower than JMfe of ₹11.6 billion. The miss was primarily driven by higher-than-expected supplementary rentals and aircraft maintenance. The company expects the lease rentals to remain at higher levels on account of lease extensions and higher interest rate." (Read More)
Sebi mulls streamlining regulatory framework for Foreign Venture Capital Investors registration
The Securities and Exchange Board of India (Sebi) has put forward a proposal to simplify the regulatory framework for the registration of Foreign Venture Capital Investors (FVCIs).
According to Sebi's consultation paper, it has recommended that the granting of registration to FVCIs and handling other post-registration matters be assigned to designated depository participants (DDPs) in alignment with the provisions established for Foreign Portfolio Investors (FPIs).
To obtain a registration certificate as an FVCI, an applicant would be required to engage the services of a DDP.
Currently, Sebi handles the processing of registration applications for FVCIs and conducts the necessary due diligence. (PTI)
Tata Motors shines and is the only non-IT stock in the top 5 gainers in today's session
NCLT rejects IDBI Bank's insolvency plea against Zee Entertainment
Notably, IDBI Bank appelaed to the NCLT in December last year claiming an amount of ₹149.60 crore. The amount was under dispute between Zee Entertainment and IDBI Bank.
Metal index drags in today's session as it sheds 0.8% with almost all stocks in the index trading in the red
Gland Pharma Q4 results: Share price falls 20% to hit 52-week low after dismal Q4
Gland Pharma shares were locked at 20% lower circuit, hitting a 52-week low of ₹1,070.80 apiece on Friday, after the company reported a weak set of numbers for the fourth quarter of FY23.
The company’s net profit in Q4FY23 plunged 72% to ₹78.68 crore from ₹285.90 crore reported in the year-ago quarter. The net profit was also impacted by a one-off expense worth ₹56.46 crore towards an impairment loss.
The drugmaker’s revenue from operations declined 29% YoY to ₹785 crore during Q4. Gland Pharma attributed this decline to a shutdown in the production line during the quarter at its Pashamylaram (Telangana) Penems manufacturing facility due to line degradation. (Read More)
Oil prices rebound on optimism of diminishing risk of US debt default
Oil prices bounced back on Friday, recovering from losses exceeding 1% on the preceding day, as investors cautiously embraced a more optimistic outlook regarding the waning possibility of a U.S. debt default.
According to the latest reports, Brent futures saw a surge of 59 cents, equivalent to 0.8%, reaching $76.45 per barrel by 0420 GMT. Meanwhile, U.S. West Texas Intermediate crude witnessed an increase of 48 cents, or 0.7%, reaching $72.34.
Yeap Jun Rong, a market strategist at IG, stated that the markets have factored in the diminishing risks of a U.S. debt default, resulting in an environment that is more inclined towards taking risks. This has led to some buying of Brent crude after previous oversold conditions.
Earlier this week, U.S. President Joe Biden and Speaker of the House of Representatives Kevin McCarthy reaffirmed their commitment to reaching an agreement to raise the federal debt ceiling, currently at $31.4 trillion. They have agreed to initiate discussions as early as Sunday. (Reuters)
Rupee falls 14 paise to 82.76 against US dollar
The Indian rupee faced a depreciation of 14 paise against the US dollar during early trading hours on Friday. The decline was attributed to the negative performance of Asian currencies and the relative strength of the American currency in the global market, impacting investor sentiments.
At the commencement of the interbank foreign exchange session, the domestic unit experienced a drop to 82.76, signifying a decrease of 14 paise compared to its previous closing rate.
On the preceding day, Thursday, the rupee had concluded at 82.62 against the dollar. (PTI)
Oil & Gas index sheds more than a per cent with almost all stocks trading in the red
Nexus Select Trust debuts at premium, stock soars 4% against IPO issue price
India's first retail-focused REIT debuted on Friday. The REIT witnessed a single-digit premium listing, however, gained momentum as it opened on BSE and NSE. Nexus owns India's largest portfolio of consumption centres.
At the time of writing, Nexus' share price traded at ₹104 apiece on BSE, up by 1.7%. But compared to The stock is listed at ₹102.27 apiece which is 2.3% premium from its upper price band in IPO.
On NSE, the REIT's stock performed at ₹103.63 apiece. Here, the stock price debuted at ₹103 apiece, a 3% premium from IPO's issue price. (Read More)
JM Financial recommendations on ITC, SBI, GAIL, and Zydus Lifesciences: BUY
ITC Ltd (ITC IN): 4QFY23 | Strong delivery in FMCG; cigarettes mostly on expected lines
Result Update BUY INR 475 - Richard Liu
Recent government actions reflect a pretty supportive policy environment for the legal cigarettes industry. The government has also recently effected an amendment to the GST Compensation Cess schedule, which we believe is a move to help cast the tax net wider on non-cigarettes forms of tobacco (specifically gutkha, pan masala, chewing tobacco etc). We expect the stock to continue to do well; the lower-hanging fruits are now mostly in the bag, though.
State Bank of India | Strong show continues
Result Update BUY INR 700 - Sameer Bhise
Management indicated that SBIN hold non-NPL provisions of INR 356bn (1.1% of loans) which should aid SBIN in transitioning to ECL methodology devoid of any shocks. We believe delivery of growth on guided lines, sustenance of NIMs near current levels and controlled asset quality parameters driving moderate credit costs will drive incremental stock returns for SBIN. We build in RoA/ RoE of 1.0%/17.3% for FY25E. We value the core banking business at 1.2x FY25E P/BV and we arrive at our revised SoTP-based target price of INR 700. Maintain BUY.
GAIL | Earnings impacted by multiple one-offs
Result Update BUY INR 125 - Dayanand Mittal
We maintain BUY on reasonable valuation, higher tariff and steady growth visibility in the gas transmission business on account of various policy tailwinds (given the government’s target to increase the share of gas in India’s energy mix to ~15% by 2030 vs. ~7% currently).
Zydus Lifesciences | Strong near-term US outlook
Result Update BUY INR 570 - Cyndrella Carvalho
Consumer Wellness delivered on expectations in their seasonally strong 4Q despite slowdown in rural demand, which is expected to recover going forward. EMs and Europe reported exceptional growth of 30%YoY driven by robust growth momentum across markets. FY23 EBITDA margin of 22.9% has surpassed management guidance of 21-22%. We upgrade our earnings by 7%/8% for FY24/25 to factor in higher US sales and better margins. We believe domestic earnings momentum, near-term US launches and margin sustenance will facilitate ZYDUSLIF to continue on a sustainable growth path. We maintain BUY with a Mar’24 Price Target of INR 570 (including gRevlimid NPV of INR 20).
Bata India Q4 results: Share price rallies over 4% in strong March Q4 earnings
Bata India shares rallied over 4% on Friday after the company reported its earnings for the quarter ended March 2023. The stock jumped as much as 4.62% in the early trade to ₹1,596.10 apiece on the BSE.
Bata India Ltd on Thursday reported a 4.5% rise in standalone net profit to ₹65.55 crore for the quarter ended March 2023 as compared to ₹63 crore in the corresponding quarter last fiscal.
The revenue from operations rose by 17% to ₹778.5 crore in Q4FY23 as against ₹665.3 crore, YoY. (Read More)
Delhivery Q4 results: Share price gains over 2% ahead of March Q4 earnings
Delhivery share price rose over 2% in the early trade on Friday ahead of the company’s March quarter earnings slated to be announced later today.
The stock rose as much as 2.46% to ₹374.50 apiece on the BSE.
Logistics company Delhivery’s consolidated loss for the quarter ended December 31, 2022 widened to ₹195.7 crore compared to ₹126.5 crore during the same period last year. (Read More)
IT index shines in early trading as all the stocks in the index are trading in the green; HCL Tech and Infosys gain 1% each
Gold, silver rate today under pressure as US dollar climbs to two month high
Gold rates today are on the course of logging the biggest weekly loss in the last three and half months as the US dollar climbed to near two-month highs. After losing 0.75 per cent on Thursday, the gold June future contract on Multi Commodity Exchange (MCX) today opened higher at ₹59,766 per 10 gm but remained in a tight range. In the international market, gold price today is quoting around $1,963 per ounce levels with some marginal gains during the early session in the Asian stock market.
Likewise, the silver rate today opened higher at ₹72,336 per kg levels on MCX but the white precious metal also remained in a tight range. In the international market, the silver price is up 0.60 per cent and it is quoting around $23.60 per ounce.
On why gold and silver rates are falling today, Navneet Damani, Senior VP – Commodity Research at Motilal Oswal said, “Gold price continues to inch lower as the dollar advanced after hawkish comments from US Federal Reserve officials raised doubts over a slowdown in interest-rate hike in the coming meetings. Few fed governors continue to maintain a hawkish stance, amidst concerns regarding inflation, which is still far away from their target of 2 per cent." (Read More)
ITC sheds more than a per cent in early trading despite a better-than-expected quarterly earnings report
Nazara's subsidiary Nodwin Gaming raises $28mn from new, existing investors
Nazara Technologies' subsidiary NODWIN Gaming on Thursday announced that it has signed a definitive to raise $28 million crore for new and existing investors.
The majority of these funds will be channelized towards growing the gaming and esports ecosystem of Nodwin by expanding and incubating newer IPs, growing its emerging market footprint and for strategic acquisitions that drive value to the network.
All existing investors of Nodwin Gaming, which includes Nazara, KRAFTON, Inc. and JetSynthesys will join new incoming investors in this funding round, said Nazara Technologies in its filing. (Read More)
Sensex and Nifty start in the green as IT and PSU Bank indices gain in early session; Nexus Select to debut today
Sensex starts flat at the preopen session; Nexus Select to debut today; focus also on ITC and Reliance
Byju’s sued by agent tied to $1.2 billion loan
One of India’s hottest tech companies, Byju’s Alpha, was sued by an agent for lenders owed $1.2 billion after months of negotiations between creditors and the education technology firm.
The lawsuit was filed by Glas Trust Company and investor Timothy R. Pohl against Byju’s Alpha, Tangible Play, Inc. and Riju Ravindran. The two companies being sued are units of Think and Learn Private, the edtech empire founded by Byju Raveendran. Ravindran is a director of Think and Learn, according to a regulatory filing.
It’s the latest setback for the once high-flying startup. Byju’s had been scrambling to appease creditors on the restructuring of a $1.2 billion term loan before an anti-money laundering probe kicked off in April. The Bengaluru-based company has been working toward an initial public offering of its tutoring unit for several years. (Read More)
Sebi proposes overhaul of expenses charged to mutual fund investors; proposal among 15 topics of consultation
The Securities and Exchange Board of India (Sebi) in a 40-page consultation paper has proposed a slew of changes to the total expense ratio (TER) that is charged to mutual fund investors. The paper is currently at the consultation stage, awaiting feedback from industry participants. The paper in all put forth 15 topics of consultation.
The market regulator has proposed that TER should be calculated at the AMC (asset management company) level, instead of the scheme level. According to the regulator, this would encourage more competition and help smaller AMCs, as well as help to pass on the benefit of the economies of scale to the investors. (Read More)
Stocks to Watch: ITC, IndiGo, Nexus Select Trust, Reliance Industries, Bata India, Nazara Technologies, United Sprits, REC, Gland Pharma, and Tata Elxsi
Abbott India, Bandhan Bank, Crompton Greaves, JSW Steel, Delhivery, Godrej Industries, NTPC, Powergrid, PNB, Zomato, and Sun Network will be among the stocks in focus as they will be declaring their March quarter earnings today. (Read More)
High cost of living top concern of Gen Zs; nearly 50 pc Gen Zs have side jobs: Report
Nearly half of Gen Zs interviewed felt more concerned about the high cost of living followed by unemployment and climate change as they live from paycheck to paycheck, a survey has said.
The high cost of living is top societal concern of Gen Zs, who say they live paycheck to paycheck and growing numbers are taking on side jobs to address financial concerns, according to Deloitte's 2023 Gen Z and Millennial Survey.
About 46 per cent of Gen Zs and 37 per cent of Millennials have taken on either a part or full-time paying job in addition to their primary job, it said.
This has postponed their big life decisions like buying a house or starting a family, and adopting behaviours that save money such as buying second-hand clothes or not driving a car, the survey added.
Gen Zs are people who were born between the late 1990s and the early 2010s, while Millennial are those born in the 1980s or 1990s.
The Deloitte Global 2023 'Gen Z and Millennial Survey' is based on responses of 22,856 respondents of which 14,483 were Generation Zs and 8,373 were Millennials from 44 countries across North America, Latin America, Western Europe, Eastern Europe, the Middle East, Africa, and Asia Pacific. (PTI)
Buy or sell: Vaishali Parekh recommends three stocks to buy today: Nava, LT Food, and Himatsingka Seide
Vaishali Parekh has recommended three stocks to buy today, here we list out important details in regard to those intraday stocks for today:
1] NAVA: Buy at ₹248.50, target ₹257, stop loss ₹244;
2] LT Foods: Buy at ₹115.50, target ₹120, stop loss ₹113; and
Tata Elxsi Q4FY23 Results: Net profit up nearly 26% to ₹201.5 crore, declares dividend
Tata Elxsi Ltd on Thursday reported a 26% year-on-year rise in its net profit for the fiscal's fourth quarter ended March (Q4FY23) to ₹201.5 crore. The Tata Group company had reported a profit of ₹160.01 crore in the year-ago period. Tata Elxsi Ltd share price closed at ₹7,001.85 apiece, down nearly 1.35% on BSE.
The company's revenue from operations for Q4FY23 rose 23% on year to ₹838 crore from ₹681.7 crore. Sequentially, it rose 2.5% from ₹817.7 crore. The IT company's total income for Q4FY23 rose 23.4% on year to ₹863.6 crore from ₹699.8 crore in Q4FY22. (Read More)
Shein Makes a Comeback in India, Teams Up with Reliance Retail
Shein is set to re-enter India as soon as this month by partnering with one of the country’s largest retail businesses, according to people familiar with the matter, in a bid to tap India’s growing consumer market and diversify its China-centric supply chain.
The Indian government has approved a partnership between the online fashion retailer and the retail unit of conglomerate Reliance Industries, the people said.
Reliance is a major player in India’s economy and its unit Reliance Retail operates more than 15,000 stores across India that sell a wide range of products including groceries and clothes. (Read More)
Tata Group leans toward UK over Spain for battery plant: Report
Britain is close to winning a major battery plant for electric vehicles as Tata Group, the parent company of Jaguar Land Rover, leans toward choosing it over Spain.
Tata, a conglomerate involved in industries from cars to salt, is currently favoring a factory in England after the UK government offered a support package, according to people familiar with the matter.
No final decision has been made, and Tata could still decide on another location, the people said. (Read More)
IndiGo reports record profit of ₹919.2 crore in March quarter on robust demand
InterGlobe Aviation Limited, which operates India’s largest airline IndiGo, on Thursday reported a record profit of ₹919.2 crore in the March quarter on the back of robust demand for air travel during the period.
In a post-earnings conference call, the airline’s management termed the last financial year as the year of recovery and growth.
The management said that the forward bookings remain robust and the airline will expand further in Central and South Asia, along with Middle East. The airline is also in the process to hire 5,000 employees and aims to double its size by 2030. (Read More)
RBI board to meet today, expected to consider dividend payout to government
The Reserve Bank of India’s (RBI) board will meet on today i.e. on 19 May. During the meeting, the board is expected to consider a dividend payout to the government, people with knowledge of the matter told Bloomberg.
As per the report, the meeting will be held in Mumbai. During the May board meeting, the authority typically reviews its finances and how much it can transfer to the government.
The government has budgeted to receive a total 480 billion rupees ($5.8 billion) from the RBI and other financial institutions it holds stakes in. (Read More)
Nexus Select Trust IPO listing date today. GMP, experts signal decent debut of shares
Nexus Select Trust IPO listing date has been fixed on 19th May 2023 i.e. today. As per the information available on BSE website, effective from Friday, May 19, 2023, the units of Nexus Select Trust shall be listed and admitted to dealings on the BSE and NSE in the list of ‘IF’ group of securities in Special Pre-open Session (SPOS) on Friday.
According to stock market experts, Nexus Select Trust share price may have a decent debut on Dalal Street. Market experts said that Nexus Select Trust IPO was offered at an attractive valuation and its price to book is also favourable for investors that we saw in strong response during bidding. (Read More)
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