Indian stock market: From Meta and Tesla shares to Treasury yields; 7 key things may impact stocks today in trade today

Indian stock market: The Indian equity market indices, Sensex and Nifty 50, are expected to open lower on Thursday following weakness in global peers.

Asian markets traded lower, while the US stock markets ended mixed overnight dragged by technology stocks as investors reacted to Meta Platforms results and rising Treasury yields.

On Wednesday, the Indian stock market indices closed in the green for the fourth consecutive session driven by gains in select heavyweights amid broadly positive global cues,

The Sensex gained 114.49 points, or 0.16%, to close at 73,852.94, while the Nifty 50 settled 34.40 points, or 0.15%, higher at 22,402.40.

“We expect this bullish momentum to continue in the markets. Further, a sharp decline in India’s VIX amid the start of elections indicates lower market volatility in the near term. Niche sectors would continue to remain in momentum,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — April 25

Here are key domestic and global market cues for Sensex today:

Asian Markets

Asian markets traded lower on Thursday tracking overnight movement on Wall Street ahead of key economic data releases. The Bank of Japan monetary policy meeting begins today amid weakness in yen.

Japan’s Nikkei 225 declined 1.2%, while the Topix fell 0.65%. South Korea’s Kospi dropped 1%, while the Kosdaq was marginally lower. Hong Kong’s Hang Seng index futures indicated a weak opening.

Gift Nifty Today

Gift Nifty was trading around 22,365 level, a discount of nearly 50 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.

Also Read: Market fear gauge VIX sees sharpest fall in 5 yr before change in Nifty lot size

Wall Street

The US stock market ended Wednesday’s choppy session mixed, weighed down by an uptick in Treasury yields amid ongoing corporate results announcements.

The Dow Jones Industrial Average declined 42.77 points, or 0.11%, to 38,460.92. The S&P 500 rose 1.08 points, or 0.02%, to 5,071.63, while the Nasdaq Composite gained 16.11 points, or 0.10%, to close at 15,712.75. 

Among stocks, Meta Platforms share price fell 11% in extended hours trading on reporting that its capital expenditure could reach up to $40 billion in 2024. Tesla shares jumped 12% on plans to boost production and roll out more affordable models.

Alphabet shares fell 3% and Microsoft share price declined 2% in extended trade. Nvidia share price dropped 1.4% and Amazon shares declined 2.6%.

Boeing share price fell 2.8% after its first quarterly revenue dropped in seven quarters, even though the result beat analyst expectations. Enphase Energy stock price dropped 5.5%, Texas Instruments shares jumped 5.6%, while Biogen shares surged 4.5% and Boston Scientific rose 5.7% after the medical device maker raised its annual profit forecast.

Meta Shares Sink

Meta Platforms share price plunged about 15% in extended trade after the company forecast of higher expenses and lighter-than-expected revenue. Meta’s market capitalization dropped $200 billion to about $1 trillion.

The Facebook and Instagram parent Meta expects April-June revenue in the range of $36.5 billion-$39 billion, with a midpoint of $37.8 billion, compared with analysts’ estimates of $38.3 billion, according to LSEG data, Reuters reported. 

The comapny raised its 2024 total expense forecast to $96 billion-$99 billion, from $94 billion-$99 billion. It also expects 2024 capital expenditure to fall within a range of $30 billion-$40 billion, up from its earlier forecast of $35 billion-$37 billion.

Read here: Meta Q1 Results: Facebook parent more than doubles profit to $12.37 billion, revenue up 27% to $36.46 billion

US Treasury Yields

The US bond market remained under pressure after a $70 billion auction of five-year notes “tailed slightly.” The auction was awarded at 4.659%, a bit higher than the 4.655% yield in pre-auction trading. The benchmark 10-year Treasury note rose six basis points to 4.66%, while the yield on the 2-year note surpassed 4.95% during the session.

RBI Action on Kotak Mahindra Bank

The Reserve Bank of India (RBI) directed Kotak Mahindra Bank to cease onboarding new customers through its online and mobile banking channels and issuing fresh credit cards with immediate effect. The central bank has barred the private sector lender from new issuances due to deficiencies in the bank’s IT system in 2022 and 2023. 

Read here: RBI bars Kotak Mahindra Bank from adding new customers; Is your money in the bank safe?

Q4 Results

Axis Bank Q4 Results: Axis Bank reported a net profit of ₹7,130 crore in the March quarter, compared to a loss of ₹5,728.4 crore in the corresponding period last year. The lender’s net interest income (NII) rose 11.5% YoY to ₹13,089 crore, while net interest margin (NIM) narrowed to 4.06% from 4.22% YoY, but rose from 4.01% QoQ. Asset quality of the bank improved.

HUL Q4 Results: FMCG major Hindustan Unilever (HUL) posted a standalone net profit of ₹2,406 crore in Q4FY24, a decline of 6% from ₹2,552 crore in the same period last year. Its revenue from operations rose to ₹14,693 crore from 14,638 crore, YoY. EBITDA declined 1% to ₹3,435 crore, while EBITDA margin contracted 20 bps to 23.1%. The FMCG major declared a dividend of ₹24 per share

LTIMindtree Q4 Results: LTIMindtree Q4 net profit fell 5.9% to ₹1,100.7 crore from ₹1,169.3 crore in Q3, while its revenue declined 1.4% to ₹8,893 crore from ₹9,016.6 crore, QoQ. Operating profit or EBITDA in Q4FY24 decreased 5.6% QoQ to ₹1,308.7 crore, while EBITDA margin contracted by 70 bps to 14.7%.

(With inputs from Reuters)

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