Indian benchmark indices started in green but turned red towards the end of today's session. Investor sentiment improved in the first half on progress in debt ceiling negotiations in the US. However, mixed quarterly earnings from top corporates and profit booking dragged the markets down towards the end of the session.
Indices lose steam towards the end to close in the red as Sensex falls below 61,500 with Realty, PSU Bank, FMCG and Pharma dragging
Indian benchmark indices started on a stronger note amidst positive global cues, but shed in the second half to close in the red. The news of positive momentum on US debt ceiling talks gave a positive impetus to the market in the morning but profit booking and mixed corporate results depressed the market.
The 30-share Sensex fell 130 pts to close at 61,431. NSE Nifty 50 dropped 50 pts to end at 18,129. Eleven of the 15 broad Nifty sectoral indices ended in the red in today's session.
Realty sector shed more than 2.5% with all stocks ending in the red. PSU Bank, FMCG and Pharma also shed more than a per cent each and were among the biggest laggards. Nifty Bank and Finance ended in the green.
Bajaj Finance and Kotak Bank gained around a per cent each and topped the BSE Sensex stock chart. ITC, Titan, SBI, Powergrid, Tata Motors and L&T featured at the bottom of the chart with each of them shedding more than a per cent.
Asian stock markets followed Wall Street higher on Thursday on hopes US political leaders can reach an agreement to avoid a potentially disastrous default on government debt.
Japan's Nikkei share average rallied for a sixth straight session to scale a 20-month high on Thursday, as investors cheered chipmaking investment plans and reasonable April trade data. The Nikkei jumped 1.6% posting its biggest daily gain since March 22. The broader Topix jumped 1.14% to a 33-year high.
China's blue-chip stocks slipped on Thursday, while investors snapped up banking and artificial intelligence (AI) shares after data showed the country's economic recovery was losing steam.
China's blue-chip CSI300 Index closed down 0.1%, while the Shanghai Composite Index added 0.4%. Hong Kong's benchmark Hang Seng Index ended 0.9% higher, while the Hang Seng China Enterprises Index advanced 1.2%.
European stocks opened higher echoing the upbeat sentiment on Wall Street on signs that Washington was edging closer to a deal to raise the U.S. debt ceiling and avoid a default.
UK's FTSE 100 recovered on Thursday, tracking optimism in global markets, however, shares of BT Group tumbled and touched over a three-month low on reporting weak cash flows.
ITC Q4FY23 Results: Net profit up 22.7% to ₹5,225.02 crore, declares dividend
ITC Ltd on Thursday reported a 22.7% year-on-year rise in its consolidated net profit for the fiscal's fourth quarter ended March (Q4FY23) to ₹5,225.02 crore. The board has recommended a final dividend of ₹6.75 and a special dividend of ₹2.75 for the financial year ended March 31, 2023.
GAIL Q4 result: Net profit at ₹603.52 cr, revenue up 21% to ₹32,858.20 crore
GAIL (India) Ltd on Thursday reported a standalone net profit of ₹603.52 crore for the quarter ended March 2023. This is down 77.5 per cent against ₹2,683.11 crore in the corresponding quarter last fiscal.
The revenue from operations rose by 21.8 per cent to ₹32,858.20 crore as against ₹26,968.21 crore in the year-ago period.
India's coal production grows 8.5 pc to 73 MT in Apr; despatch rise 11.66 pc to 80.35 MT: Coal Ministry
India's coal production rose by 8.5 per cent to 73.14 million tonnes (MT) during April 2023, according to the ministry of coal.
In April 2022, the country's overall coal production was at 67.20 MT, as per the ministry data.
India achieved 94.89 per cent of the 77.08 MT production target for April 2023, the data showed.
Coal India along with its subsidiaries produced 57.57 MT coal, up 7.67 per cent over 53.47 MT in April 2022.
The coal production of Singareni Collieries Company Ltd (SCCL) rose by 4.77 per cent to 5.57 MT, from 5.32 MT in the same month a year ago.
While the production from other captive mines was at 10 MT, against 8.41 MT in April 2022, registering a rise of 18.93 per cent. (PTI)
Swiggy's food delivery business turns profitable: CEO
Homegrown food aggregator Swiggy turned profitable as of March, paving way for food tech platforms that have for long struggled with high costs of operating their business to swing to profit.
Swiggy's chief executive and founder, Sriharsha Majety, in a blog post on Thursday said that the company’s sharp focus on innovation, coupled with strong execution helped it achieve profitability, which factors in all corporate costs, excluding employee stock options. (Read More)
Dhruva Advisors on amendments to the current account rules for international credit card: Discourage individuals from spending in forex
Sudhir Nayak, Partner, Dhruva Advisors:
Key implications arising from the amendments to the Current Account Rules for International Credit Card(ICC) vide the notification dated 16th May 2023.
1. How will the bankers track the usage of the ICC if the individual is using multiple credit cards.
2. If an individual has already exhausted the LRS limit of 2,50,000 USD and is abroad at the time of the notification, the amount spent on or after 16th May 2023 by using ICC will technically breach the LRS which mandates approval from RBI.
3. If an individual has already exhausted the LRS limit of 2,50,000 USD and intends to travel abroad, they will need prior approval from RBI for using their ICC to meet their expense.
4. Further it will be interesting to see the impact of the amendment on the usage of the Corporate Credit card issued in the name of individual employees.
The above amendment coupled with the TCS @20% effective from 1st July 2023 will discourage individuals from spending in forex.
Zydus Lifesciences Q4 results: Net profit falls 25% YoY to ₹296.6 crore; declares dividend of ₹6
Zydus Lifesciences’s net profit for the fiscal fourth quarter ended March 2023 dropped 25.4% to ₹296.6 crore from ₹397.4 crore in the corresponding quarter of last fiscal. The sharp decline in profit was largely due to a one-time loss of ₹601.3 crore.
The company’s consolidated revenue from operations in Q4FY23 increased 29.7% to ₹5,010.6 crore from ₹3,805.6 crore, YoY.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 75.1% to ₹1,257 crore from ₹718 crore, while EBITDA margin expanded by 640 bps to 25% from 18.6%, YoY. (Read More)
SBI Quarter 4 results: Net profit jumps 83% YoY to ₹16,695 crore; NII up 29% to ₹40,392 crore
State Bank of India (SBI), the country’s largest bank, on Thursday reported a net profit of ₹16,694.5 crore for the quarter ended March 2023, a rise of 83% from ₹9,113.5 crore in the corresponding quarter last year.
SBI’s net interest income (NII) during Q4FY23 increased 29.5% to ₹40,392 crore from ₹31,197 crore. YoY. The bank's domestic net interest margin (NIM) for Q4FY23 increased by 44 bps YoY to 3.84%.
Operating profit during the quarter grew by 24.87% YoY to ₹24,621 crore. (Read More)
BNP Paribas India recommendations on AU Bank: BUY - Don’t let the rally temper your interest
Santanu Chakrabarti, Analyst – Banking and Finance of BNP Paribas recommends BUY for AU Bank:
Don’t let the rally temper your interest: AUBANK stock has rallied c31% from its low reached last month as the promoter-CEO’s term was extended by a full three years. We believe this should not deter new investors from entry as the merits of AUBANK’s investment case at current market price (CMP) remain compelling in the broader BFSI context.
· Long-term investment case holds even at CMP: Prolonged, well-underwritten and yield-remunerative 25%+ y-y loan growth in core SME/vehicle segments in legacy “Goldilocks" geographies is our central investment premise.
· Enviable positioning provides tactical assurance: We recognise that investment horizons shorter than the above decadal analysis have to be more careful about relative valuation considerations. We recognise that investment horizons shorter than the above decadal analysis have to be more careful about relative valuation considerations.
· Maintain as top mid-cap pick: AUBANK’S steady-state ROE production capability is 13-17% across a capital-raise cycle (stable ROA). Its valuation of 3.9x FY24E P/B has to be judged in the context of the premise of over 25% growth sustainability and boosts from future dilutions. Maintain BUY.
Upside risks for inflation sizable, central banks must stay resolute: IMF's Gita Gopinath
Price pressures seem entrenched in many economies, including emerging markets, and upside inflation risks are sizeable, said Gita Gopinath, First Deputy Managing Director at International Monetary Fund (IMF), adding that central banks must keep their monetary policies tight.
Gopinath was addressing the Annual Conference of the Central Bank of Brazil in Brasilia on Wednesday (local time).
"...markets are probably too optimistic about what it will take to bring down inflation in EMs. Despite encouraging signs, I am worried that price pressures seem entrenched in many economies and that upside inflation risks are sizeable," she said at the conference.
Hence, she said central banks must remain resolute in keeping policies tight and recognize that insufficient monetary tightening now may necessitate even more painful actions down the road - a lesson from the high inflation period of the 1970s that very much applies today. (ANI)
Mint Snapview: WPI contraction doesn't guarantee that RBI's fight against inflation is over
Wholesale prices have gone into deflation territory for the first time in three years. Slowing for the 11th straight month, the wholesale price index (WPI) dropped 0.92% in April 2023 from the same month last year.
Although the Reserve Bank of India (RBI) committee that sets interest rates targets retail inflation (the consumer price index, or CPI), economists still track the WPI, especially when it enters the deflationary zone. That’s because manufactured products account for two-thirds of the total weight in WPI.
In April all three sub-indices of the WPI – mineral oil, food and manufactured products – saw a significant decline. Manufactured products inflation hit its lowest level since October 2015. (Read More)
India VIX indicates calm in market; is it an investment opportunity or should you book profit? Here's what experts say
Volatility is not negative for all investors. Some analysts and investment gurus see it as an opportunity to buy undervalued companies. World's one of the most successful investors Warren Buffett said “The true investor welcomes volatility".
Investors look at the volatility index to measure market risk, fear and stress, before making investment decisions.
Shrey Jain, founder and CEO of SAS Online said the lower VIX can create a sense of stability and increase investor confidence and can lead to a more positive investor sentiment and potentially attract more investment into the market. (Read More)
Retail sales up 6% in April, says survey; southern and eastern India lead sales growth with a 7% jump
Retail sales rose 6% year-on-year in April, indicating moderate growth for the sector, according to findings of the monthly Retail Business Survey by industry body Retailers Association of India (RAI).
Retail sales reported a sluggish growth in northern India, while markets in southern and eastern parts of the country led sales growth with a 7% year-on-year jump during the month.
Among the sectors tracked by the survey, Quick Service Restaurants (QSR) reported a growth of 16% in April, followed by food and grocery at 15%. Meanwhile, categories such as furniture and furnishings, and consumer durables and electronics (CDIT), reported annual growth of 14% and 9%, respectively, last month. (Read More)
Nifty Bank remains stable amidst volatility in the market as most stocks in the sector trade in the green
Vedanta shares rise after announcement of dividend record date; dividend record date on 30 May
Vedanta shares witnessed buying interest among stock market bulls after the announcement of Vedanta dividend record date on Wednesday. In early morning deals, the Vedanta share price today opened upside and went on to hit an intraday high of ₹284.20 apiece on NSE, logging around 1.70 per cent rise against its Wednesday close price of ₹279.45 on NSE. The dividend stock declared on Wednesday that the board of directors of the company is going to consider and approve the second interim dividend for the financial year 2023-24. The board meeting for consideration and approval of the interim dividend has been fixed on 22nd May 2022. However, the board has declared the dividend record date on 30th May 2023. (Read More)
Indiabulls Real Estate to challenge NCLT order withholding its merger with Nam Estates, Embassy One
Indiabulls Real Estate will move National Company Law Appellate Tribunal (NCLAT) to challenge the NCLT Chandigarh bench order withholding its merger with NAM Estates and Embassy One Commercial Property Developments (Embassy One).
The Chandigarh bench of the National Company Law Tribunal (NCLT) had earlier this month withheld the merger of Embassy Group's certain residential and commercial projects with Indiabulls Real Estate. (Read More)
UK Announces Japan Chips Partnership as Fears Grow Over Taiwan
Rishi Sunak announced £18 billion ($22.5 billion) of new investment by Japanese businesses in the UK, mostly in clean energy, as well as a bilateral “semiconductor partnership" aimed at boosting supply chain resilience amid fears over Chinese interference in Taiwan.
A “Hiroshima Accord" seeks to deepen economic, security and tech cooperation between the two countries, the British premier said as he landed in Japan on Thursday ahead of the Group of Seven summit.
Stress testing and strengthening supply chains are a key aim of the leaders in the wake of Russia’s war in Ukraine and the Covid-19 pandemic, with their reliance on chips from Taiwan high on the agenda. The UK will unveil its long-awaited Semiconductor Strategy Friday.
Sunak said he and Japanese Prime Minister Fumio Kishida are “closely aligned on the importance of protecting peace and security in the Indo-Pacific and defending our values, including free and fair trade." (Bloomberg)
Noon Update: Finance and Bank sectors keep benchmark indices strong as Sensex is trading 250 pts higher and Nifty is up 80 pts
Offshore parents of FPI's to be considered ‘Legal entity’: Report
The parent organisations of Foreign Portfolio Investors (FPIs) trading on Indian stock exchanges, that are incorporated in jurisdictions like Luxembourg and Singapore will now have to declare themselves as the "legal entities" of such FPIs, a report said.
This will make the parent organisations of FPIs as the ‘client’ of the fund custodian, making a significant change in the current compliance framework, as per a report in Economic Times. (Read More)
Axis Bank remains strong in today's session as it jumps a per cent and is among the biggest gainers in Sensex stock chart
Rupee sinks to near 8-wk low on higher U.S. yields, dollar
The Indian rupee inched down on Thursday to a nearly eight-week low on the back of higher U.S. bond yields and a firmer dollar as risk sentiment improved on hopes of an imminent debt ceiling deal.
The rupee was down at 82.4750 against the U.S. dollar, compared to its previous close of 82.38. It hit its lowest since March 24 at 82.4825.
"The recent breakout of the U.S. dollar is giving a directional move in USD/INR and oil has also swung back, which is adding some pressure to the rupee," said Anand James, chief market strategist at Geojit Financial Services.
"Rupee is moving to a consolidation zone after the recent weakness," James added.
Meanwhile, U.S. Treasury yields rose overnight and the dollar index surged to an over seven-week high in the wake of positive signs on the debt ceiling negotiations and upbeat housing data. (Reuters)
ITC share price jumps ahead of Q4 results today; strong results expected as all segments of the company are expected to perform well
ITC share price today witnessed buying interest among stock market bulls during early morning deals on Thursday. ITC share price today opened upside at ₹430 apiece levels and went on to hit intraday high of ₹432.45 per share levels, logging more than one per cent rise against its Wednesday close of ₹427.60 per share levels.
According to stock market experts, ITC share price is rising as the company is going to announce its Q4 results today. They said that market is expecting strong ITC results as all segments of the company — tobacco, hotels, FMCG, agriculture, etc. — are expected to perform well during January to March 2023 quarter. They said that ITC share price may remain in bull trend as the market is expecting some announcement from the management in regard to the demerger of any segment in ITC. (Read More)
Realty index continues to drag as the sector sheds more than a per cent with all the stocks in the red
Two-wheeler electric vehicle may become expesnive as government plans to cut FAME II subsidy
Two-wheeler electric vehicles offered by Ola, Ather and others may cost more in the country soon. The Heavy Industries Ministry is reportedly planning to increase the outlay for e-two-wheelers from the current level of ₹2,000 crore under its flagship FAME-II scheme and reduce the subsidy per vehicle.
As per a PTI report, a government official who wished to remain anonymous said that there is no proposal at present for an extension of FAME-II beyond March 2024 or the introduction of FAME-III. (Read More)
YES Securities Reports: Oberoi Realty BUY; LIC Housing BUY; Sterlite BUY; Whirlpool BUY; Amber BUY
Oberoi Realty (OBER IN): Recommendation: BUY
Target Price: ₹1,229
Potential Return: +34%
Kolshet received RERA with proposed DOC Dec-28, Confident to sell Mulund in 2-3years
OBER delayed the launch of Thane projects and is now slated in H1FY24 even after receiving necessary approvals. OBER received RERA for Kolshet phase-I (0.99msf) and has 31st Dec-28 as proposed date of completion hence we believe it is on the verge of launch. Post result commentary was grossly weak due to lack of clarity of launch pipeline, while management was confident to monetize its Mulund projects (~40% inventory) in next 2-3 years. OBER received part OC for Commerz-III and plans to deliver fully in Mar-24 while Borivali mall in H1CY24. As Oasis Realty ceased to be recognized as a JV and will directly start contributing to the topline from FY24 onwards. We maintain BUY with 34% upside.
LIC Housing Finance Ltd (LICHF IN): Recommendation: BUY
Target Price: ₹470
Potential Return: +27.0%
NIM on strong footing
Management expects loan growth to gradually improve as interest rates stabilize/soften, NIM for full-year to be minimum 10 bps higher than FY23 and credit cost to stay at normalized run-rate of 45-50 bps on steady early delinquency buckets and expected NPL resolutions/recoveries. The co. is starting FY24 with stronger margin and incremental trends in yields & CoF are likely to be favourable in the first half of the year.
Our FY24/25 earnings estimates witness an upgrade of 12%/4% on the back of substantial PAT beat in Q4 FY23 and raising of NIM assumption. We see avg 13% RoE delivery over next two years on a portfolio growth of 10-11% pa. While valuation is undemanding at 0.7x FY25 P/ABV, a significant re-rating would be contingent on more confidence around growth and asset quality. Retain BUY with 12m PT of Rs470.
Sterlite Technologies (SOTL IN): Recommendation: BUY
Target Price: ₹210
Potential Return: +27.3%
Operating performance inline with expectation; continues to gain market share in OFC market
Sterlite Technologies (SOTL) reported inline operating performance for the quarter. Both, the sequential revenue growth and EBITDA margin were as per expectation. It reported revenue growth of 0.5% QoQ, led by 1.3% QoQ increase in Global networking segment; the Global Services segment declined by 7.6% QoQ as it continues to realign its Services segment with higher focus on profitability. There was sequential improvement in EBITDA margin (up 76 bps QoQ) led by control on direct cost. Order book was down 3% YoY to ₹111bn. We maintain our BUY rating on the stock with target price of ₹210/share based on EV/EBITDA of 7.5x on FY25E.
Whirlpool of India Ltd (WHIRL IN) Recommendation: BUY
Target Price: ₹1,690
Potential Return: +25.4%
Weak summer leads to muted demand; maintain BUY
Whirlpool’s consolidated revenue came in below ours and consensus estimates with, revenue declining 2.0% yoy. This decline is attributed to muted market growth in Q4 especially in refrigerators and air conditioners driven by a weak summer and concomitant declining entry segment markets. Margins were lower than expected on back of lower sales due to subdued market conditions and calibrated price correction action. We had already flagged off in our channel checks that company has taken price correction to win back the market share. Gross margins on standalone basis were stable despite lower pricing is a key positive. We have built in moderate estimates for FY24 and reduced maintain our BUY rating with PT of Rs1,690 valuing the stock at 40x.
Amber Enterprises Ltd (AMBER IN) Recommendation: BUY
Target Price: ₹2,614
Potential Return: +20.4%
Wallet share continues to increase; maintain BUY
AMBER delivered better than expected revenue growth while missing the margin estimates. Business from new customers has resulted in higher-than-expected revenue growth. There was strong demand across the business segments with subsidiaries faring better. The company’s market share in RAC and its components has increased to 29% in FY23 vs 26% in FY22. We however continue to maintain our positive stance; considering major capex cycle is behind and return ratios will start improving. We maintain BUY on the stock with revised PT of Rs2,614.
Titan share falls in today's sessions and is the biggest laggard in S&P Sensex stock chart
Patriarch’s Death Puts Spotlight on $14 Billion Hinduja Feud
For decades, Srichand Hinduja served as the patriarch of a sprawling business empire behind one of the world’s biggest family fortunes with origins dating back more than a century.
His death at age 87 raises questions over who’ll assume his role as de-facto head of the dynasty, whose legal battles in recent years over control of investments spanning banking, media and energy still threaten to tear apart the once tight-knit group.
Gopichand Hinduja, 83, is the British-Indian clan’s oldest member following Srichand’s death Wednesday in London. He and his two younger brothers — Prakash, 77, and Ashok, 72 – fought over the past three years with the patriarch and his daughter, Vinoo, over a letter signed by the four siblings that said assets held by one of them belonged to all.
While the family called a truce on the bitter power struggle in November, it emerged last month they’re still privately haggling on related issues.
The clan, which spans at least four generations, has a collective fortune of about $14 billion, putting it among Asia’s 20 richest dynasties, according to the Bloomberg Billionaires Index. (Bloomberg)
Gold rate today steady below $2000 on US dollar pullback from seven-week high
Gold rates today steadied below the psychological $2,000 per ounce levels as the US dollar pulled back marginally from its seven-week high during early morning deals. Amid traders and investors focus on US debt ceiling crisis, gold future contract on Multi Commodity Exchange (MCX) for June 2023 expiry opened lower and went on to hit intraday low of ₹60,049 per 10 gm levels. However, in the international market, gold price today sustained above the psychological $1,980 level and made an intraday high of $1,986 after hitting an intraday low of $1,980.54 per ounce within a few minutes of the Asian stock market's opening bell today. (Read More)
Pharma index sheds half a per cent in today's session as most stocks in the index are trading in the red
Devyani International shares jump over 5% despite fall in Q4 profit; can it rise more? Here's what top brokerages say
Shares of Devyani International rose over 5 per cent in morning trade on BSE on May 18, even as a day ago the company reported a fall in its net profit for the March quarter of FY23. The company, which is the largest franchisee of KFC and Pizza Hut in India, on May 17 reported a net profit of ₹60.7 crore in the quarter ended March 2023, registering a fall of 20.4 per cent from ₹76 crore in the same quarter year.
The revenue of the QSR chain during Q4FY23 rose 27.8 per cent to ₹755 crore from ₹590.7 crore, YoY.
Brokerage firm Kotak Institutional Equities has an 'add' call on Devyani International. The brokerage firm raised the target price on the stock to ₹180 from ₹160 while increasing its KFC store forecast and aligning it with management guidance, also tweaking margin assumptions and EBITDA estimates.
Kotak highlighted that for the KFC India segment, Devyani added 29 net new stores, taking the total count to 490. (Read More)
Bajaj Finance leads the S&P Sensex stock chart as it jumps more than a per cent in early trading
Rupee opens flat at 82.35 against US dollar
The Indian rupee opened marginally higher on Thursday against the US dollar amid a positive risk mood on optimism over an agreement on the US debt ceiling. The local unit opened at 82.35 per dollar against previous close of 82.38.
On Wednesday, the rupee fell 12 paise to close at 82.37 against the US currency, weighed down by the strength of the American currency in the overseas market and a negative trend in domestic equities. (Read More)
Metal index shines in early trading as it jumps more than a per cent with almost all stocks starting in the green
Nexus Select Trust IPO: What GMP signals as all eye set on listing date?
After the allotment of shares, allottees and market observers are eagerly waiting for the Nexus Select Trust IPO listing date, which is most likely on 19th May 2023 i.e. on Friday this week. Both market observers and lucky allottees are under pressure as the Indian stock market has remained under sell-off heat in the last two previous sessions and its impact is visible in the grey market as shares of Nexus Select Trust REIT are not available at a premium of ₹3 instead of ₹5 on Tuesday. So, in the last two days, Nexus Select Trust IPO grey market premium (GMP) has slipped from ₹5 to ₹3. (Read More)
Indices start on a positive note as Sensex jumps 300 pts and Nifty around 80 pts; Bank, Metal, IT shine
Angel One views on today's market: Traders should focus outside of the index during this consolidation phase to fetch better trading opportunities
Sameet Chavan, Head Research, Technical and Derivatives, Angel One Ltd: Tuesday night, the US stock markets experienced significant pressure, leading to a mild negative opening for our markets as indicated by the SGX Nifty. The Nifty started off slowly and showed some composure around the 18300 level during the opening trade, suggesting the possibility of a bullish recovery. However, profit booking resumed as the day progressed, causing the Nifty to test levels around 18100. Eventually, there was some relief in the second half as a slight recovery occurred, resulting in the Nifty ending just below 18200 with a loss just above half a percent.
Over the past three weeks, our markets have witnessed an impressive surge. However, on Tuesday, after the formation of a Bearish Engulfing pattern on the daily chart and a Rising Channel on the hourly charts, tentativeness was visible. However, honestly speaking we did not expect the Nifty and BANKNIFTY to sneak below key supports of 18200 and 43700, respectively. The global dampness added to this sluggishness and hence, we saw extended correction during the first half itself. Despite this, we maintain our positive outlook and construe this as a running correction, as the broader markets continue to demonstrate strength. Yesterday, prices found support around the previous swing high (18135), technically this is termed as retesting the breakout levels which augurs well for the bulls.
As far as levels are concerned, a crucial support zone lies between 18000 and 18100, coinciding with a 50% retracement of the recent rally and the 20 EMA. Only if this support is broken, we would see further weakness in the market. On the other hand, for the weekly expiry, immediate resistance is observed in the range of 18300 to 18400. We would also like to highlight that the broader markets and midcaps are displaying strength, and traders should focus outside of the index during this consolidation phase to fetch better trading opportunities.
Amazon's cloud unit to invest $12.7 billion in India by 2030, reports say
Amazon Web Services (AWS), the cloud computing division of Amazon.com Inc, said on Thursday it plans to invest $12.7 billion in India by 2030 to build its cloud infrastructure, Reuters reported.
AWS already has data centres in Mumbai and Hyderabad regions, the company said, adding, it has already invested $3.7 billion in India between 2016 and 2022.
The fresh outlay will include spending in construction, server computers and telecommunications infrastructure, it said. (Read More)
Sensex in the flat-to-green territory at the start of preopen; focus to remain on HDFC Bank, Uno Minda, Pricol, and Adani group
Credit card used abroad to count as foreign remittance
The finance ministry has included use of credit card abroad by an Indian resident within the $250,000 limit that an individual is allowed to remit abroad in a year under the liberalised remittance scheme (LRS), showed an official order.
Under this scheme, the Reserve Bank of India allows residents to spend funds abroad up to the specified ceiling for investment and expenditure, including travel, education, medical treatment and buying securities and physical assets. (Read More)
Vedant Fashions promoters launch offer for sale to offload 9.88% stake, fixes floor price
Promoter of Vedant Fashions, which runs clothing brand Manyavar, on Wednesday launched an offer for sale (OFS) to offload 9.88 per cent stake in the company.
Ravi Modi Family Trust, a promoter of Vedant Fashions has decided to offload 9.88 per cent stake at floor price of ₹1,161 per share, which is a discount 6.84 percent against the last closing price
The Ravi Modi Family Trust will offload 1,69,94,600 equity shares representing 7 per cent of the total issued and paid up equity share capital alongwith with an option to additionally sell 69,87,824 Equity Shares representing 2.88 per cent of it. (Read More)
Government makes renewed push to boost hardware manufacturing
The Union cabinet on Wednesday approved a six-year production-linked incentive (PLI) scheme for IT hardware, including laptops, tablets, personal computers, servers and edge computing devices, with an outlay of ₹17,000 crore.
Telecom minister Ashwini Vaishnaw said the scheme would attract top hardware companies such as HP, Dell and Apple to India.
“HP, Dell, Acer and others already have high volumes (market) in India. Apple is niche. The market is attractive; they’re also very seriously evaluating," he said in response to a question during a press briefing. Several companies welcomed the scheme, with some saying they are already evaluating availing of the scheme. (Read More)
Stocks to Watch: HDFC Bank, Pricol, Uno Minda, Adani Group, Jindal Stainless, Devyani International, JSW Ispat Special Products, PVR Inox, Vedant Fashions, REC, and JK Tyres
SBI, ITC, InterGlobe Aviation, Tata Elxsi, Gail India, Gland Pharma, and Bata India will be among the stocks in focus as they will be declaring their March quarter earnings today. (Read More)
Bharti Airtel may take control of Indus if volatility due to Vi persists: Gopal Vittal
Airtel is willing to take on the ownership of tower provider Indus Towers which has been facing issues due to financial troubles of its key customer Vodafone Idea, Airtel MD and CEO Gopal Vittal told analysts in the earnings call for Q4FY23.
“Tower business is our heartbeat, so we cannot afford to have that in any way face volatility. So if it means that in the short term to prevent volatility because one player could have challenges, that we have to creep up and actually take control, we will," he said, in response to a question on Indus Towers. He, however, added that if the tower business remained stable, the need for such a step would not arise and the carrier may look at reducing stake as it was a non-core business. (Read More)
Only 6 companies bids for Future Retail, big ones such as Reliance and Adani opt-out
The lenders of debt-ridden Future Retail Ltd (FRL) have received six bids from prospective buyers by May 15, which was the last date for submission of resolution plans.
The company is "in receipt of resolution plans/bids from 6 prospective resolution applicants in response to the Request for Resolution Plans" said the regulatory filing by FRL without disclosing the names.
According to the media reports, major corporate houses such as Reliance Retail, Jindal Power Ltd and Adani Group had not filed their bids despite being selected in the final list of 48 companies.
The deadline for submission of resolution plans was May 15, 2023, for 48 companies, which were in the final list of 'Eligible Prospective Resolution Applicants'.
This has happened despite FRL lenders coming with revised Expressions of Interest (EoIs) and inviting fresh bids after dividing its assets into clusters.
Future Retail has a debt of around ₹30,000 crore and the company is going through Corporate Insolvency Resolution Process (CIRP). (PTI)
Go First to resume flight operations from May 27, issues internal memo: Report
Go First, which recently filed for bankruptcy, is reportedly planning to resume flight operations from May 27, according to insiders familiar with the low-cost airline's strategy. As part of their preparations, the airline is organising training sessions for its pilots starting tomorrow.
Due to the hiatus in flying operations, an online ground refresher course has been scheduled, which is mandatory for pilots who have not been actively flying since May 3. The pilots were informed about the commencement of operations from May 27 in a memo reviewed by The Economic Times. LiveMint could not independently verify the report. (Read More)
Devyani International Q4 results: Net profit falls 20% YoY to ₹60.7 crore; revenue rise 27.8%
Devyani International, the largest franchisee of KFC and Pizza Hut in India, on Wednesday, reported a net profit of ₹60.7 crore in the quarter ended March 2023, registering a fall of 20.4% from ₹76 crore in the same quarter year.
The revenue of the QSR chain during Q4FY23 rose 27.8% to ₹755 crore from ₹590.7 crore, YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) increased 10.7% to ₹154.6 crore from ₹139.6 crore, while EBITDA margin contracted to 20.4% from 23.6%, YoY. (Read More)
Goldman Sachs slashes Adani Group stakes from its ESG funds: Report
The investment division of Goldman Sachs Group Inc. drastically decreased its exposure to the Adani Group in its ESG portfolios in the weeks following allegations of fraud made against the company by short-seller Hindenburg Research, reported Bloomberg.
According to data collated by Bloomberg, Goldman funds designated by the European Union as pursuing environmental, social, and governance goals sold 11.7 million shares in Adani firms in February. According to the statistics, Goldman Sachs Asset Management's actively managed ESG fund exposure to Adani was only ever a stake in Ambuja Cements Ltd. totaling about 400,000 shares after the retreat. (Read More)
Pricol files objection with CCI to resist Uno Minda’s takeover bid
Pricol, a Coimbatore-based driver information systems maker, has filed an objection with the competition regulator to block Uno Minda’s move to buy up to 24.5% in the company, Pricol told stock exchanges on Wednesday.
Uno Minda filed an application with the Competition Competition of India (CCI) to get clearance to acquire a 24.5% stake in Pricol, which is a leading manufacturer of instrument clusters in India, while Minda has a much smaller share of the market.
In February, Minda bought a 15.7% stake in Pricol for ₹400 crore in a surprise move that triggered a confrontation with the promoter group of the target company led by managing director Vikram Mohan. (Read More)
Buy or sell: Vaishali Parekh recommends three stocks to buy today: Equitas SFB, FACT, and Deepak Nitrite
Vaishali Parekh has recommended three buy or sell stocks for today, here we list out full details in regard to those day trading stocks for today:
1] Equitas Small Finance Bank: Buy at ₹82, target ₹86, stop loss ₹80.50;
2] FACT: Buy at ₹316.50, target ₹327, stop loss ₹311; and
3] Deepak Nitrite: Buy at ₹1972, target ₹2040, stop loss ₹1945. (Read More)
RBI allows SBI Funds Management to buy upto 9.99% stake in HDFC Bank within the next 6 months
The Reserve Bank of India (RBI) has given SBI Funds Management (SBIFML) -a joint venture between the State Bank of India and France's AMUNDI, permission to purchase up to a 9.99% stake in HDFC Bank and has recommended the company to do so within six months.
The permission has been given in tandem to the application submitted by SBIFML to RBI, according to the HDFC Bank, which added that the approval is subject to a few conditions.
The RBI asked SBIFML to purchase the aforementioned substantial stake in the bank within six months, or by November 15, 2023, the bank stated. (Read More)
Wall Street ends sharply higher on Wednesday, dollar hits seven-week high as debt limit talks advance
Wall Street rallied to a higher close on Wednesday, gathering momentum throughout the afternoon trading, and the dollar touched a six-week high as regional banks surged and negotiations in Washington over raising the debt ceiling progressed.
All three major U.S. stock indexes rallied to end up more than 1% as hopes of a deal to raise the debt limit helped investors look past dismal forecasts from retailers Target Corp and Home Depot Inc.
Regional banks provided some lift, with the KBW Regional Banks index surging 7.3% amid waning concerns of a liquidity crisis in the sector.
Debt ceiling negotiations, which have become a growing preoccupation of market participants, appeared to be moving in the right direction, with vows from U.S. President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy that the U.S. will avoid a catastrophic default.
"What we're seeing today is positive comments saying progress is being made toward a debt ceiling deal, and that’s given the market reason to put money back to work," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
The Dow Jones Industrial Average rose 408.63 points, or 1.24%, to 33,420.77, the S&P 500 gained 48.87 points, or 1.19%, to 4,158.77 and the Nasdaq Composite added 157.51 points, or 1.28%, to 12,500.57. (Reuters)
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