· Better than expected quarterly results announced by Reliance Industries& ICICI Bank, RBI approval on HDFC and HDFC Bank merger and RBI says that the economy moving into low inflation regime will be positive for the market sentiment. SGX Nifty is up by quarter percent or 50 points while Asian market are witnessing mixed bag. US Market managed to end in positive territory on Friday after stronger-than-expected US services PMI data fuelled expectations that the Federal Reserve will keep hiking interest rates to contain inflation. This week will be important not only in the domestic market but also in the global market. Investors await a flood of earnings headlined along with global economy data to be release this week which is a key direction for the market. IndusInd, Bajaj Finance, Axis Bank, Kotak Bank, Bajaj Auto, Maruti, HUL, Nestle ACC would release their Q4 numbers to be announce this week. US tech giants Amazon, Microsoft, Google parent Alphabet and Facebook owner Meta are publishing results this week. Apart from results, investors this week would also keep an eye on key global events viz. Bank of Japan interest rate decision, GDP data for several important countries including US, Euro zone, Germany, France and Italy. Back home, banking stocks will be in focus after the better than expected quarterly results announced by ICICI Bank. Metal stocks may be positive after US March PMI data reported ahead of Bloomberg expectation.
· US Market – US stocks gained marginally on a narrow range most part of the day as investors waded through a slew of mixed earnings reports and US business activity data, while awaiting big tech reports next week to gauge the health of corporate America. Nasdaq and Dow Jones gained 0.1% each after the release of the purchasing managers’ index data, which unexpectedly climbed this month to nearly a one-year high, a worrisome sign that threatens to reignite inflationary pressures. US, Manufacturing PMI, Composite PMI and Service PMI reported better than expectation.
· Global market summary – Credit Suisse, Coca-Cola, First Republic Bank results today. Brent Crude fell to 1-month low, US Service PMI in March reported over 1-year high. US 2-Year Bond 1-month high at 4.20%
· Asian Market – Stocks in Asia were mixed in early trade, while US equity futures fell as investors prepare for a busy week of economic data that will help illuminate the path forward
· for interest rates. Shares edged higher at the open in Japan, but declined in South Korea and Australia
· European Market – European Indexs edged higher on Friday following mixed economy data announced in the Euro zone. Germany and France index ended the day half a percentage point higher after purchasing managers' index (PMI) survey data showed eurozone business activity growth accelerated in April on the buoyant services sector -- but manufacturing shrank. UK Index edged up as investors eyed rebounding UK business activity despite sliding retail sales.
· Oil –Brent crude declined 2% to $81/bbl as worries about demand linked to a weakening economic backdrop. Hawkish commentary by the US Federal Reserve to hike in interest rate pulled down oil price
· Gold – Gold slipped 1% to below $2000/ounce after stronger-than-expected US services data fuelled expectations that the Federal Reserve will keep hiking interest rates to contain inflation
· Previous Day market update – Equity benchmark index managed to end on a positive note amid range bound market ahead of heavyweight Reliance quarterly results to be announce post market today. Moreover, traders had cautious approach on account of weakness in the global markets. ITC, HDFC, Asian Paints, Britannia and TCS were major gainers in the Nifty stocks while Maruti, Ultratech and ICICI Bank were major losers. There was gain in IT and FMCG stocks offset by losses in banking and auto stocks. Paint stocks witnessed fresh buying due to benefit of fall in oil price. Market consolidated in the last few sessions and Nifty respected its 50 DEMA level. Nifty mid-cap Index declined half percent Nifty 500 stocks advance decline ratio was 1:1.5. Sensex index ended 22 points or 0.04% higher at 59,655, while Nifty ended flat at 17624 but ended above the 17,600 level. FIIs were net sellers Rs2117cr while DIIs were net buyers Rs1633cr on Friday.
· Nifty Technical Levels - Nifty formed a small bodied Bearish candle on daily frame with longer lower shadow. It formed a Bearish engulfing candle on weekly frame and negated its higher lows formation of the last three weeks. Now it needs to hold above 17620 zones to witness an up move towards 17717 and 17777 zones while on the downside supports are placed at 17550 and 17442 marks.
· Bank Nifty Technical Levels – Bank Nifty formed a small Bearish candle on daily scale as buying is seen at lower zones but follow up is missing at higher zones. On weekly scale it has formed a Bearish candle which suggests selling pressure is visible at higher zones but supports are intact at lower levels. Now it has hold above 42000 zones for an up move towards 42500 then 42750 levels while on the downside support are seen at 41750 then 41600 zones.
· Actionable BUY – HDFC, PNC Infra, Reliance Industries, ICICI Bank,
· Brokers Radar – Reliance Industries – CLSA TGT at 2970, JP Morgan TGT at 2960 and Jeffries TGT at 3125. ICICI Bank – CLSA TGT at 1200, JP Morgan TGT at 1150. Citi TGT on Hindustan Zinc at 240, Macro Tech Developers TGT by Jefferies at 1325. Morgan Stanley TGT on Paints Sectors – Asian Paints TGT at 2546, Berger Paints TGT raised to 611 from 507 and . Kansai Nerolac TGT reduce from 380 to 322. Haitong International initiated coverage of Mahindra Logistics with TGT set to Rs490.
· Events – Bank of Maharashtra board meeting for fund raising plan.
· Results – Bank of Maharashtra, Century Textiles, Indusind Bank, Maharashtra Scooter, Nelco, Mahindra Logistic, Persistent Systems, Tata Teleservices and TMB
· Corporate Action - NETTLINX LTD Bonus 1:1.
· Global Data – Chicago Fed Nat Activity Index, Retail sales (US), House Price Index (UK). Export and Import (Germany), ECB Governing Council members Boris Vujcic, Francois Villeroy de Galhau, speak at events.
· Market Summary –Reliance Industries announced better than expected Q4 results. RBI gives HDFC Bank selective regulatory relief post HDFC merger, Vedanta Says Confident on Paying Dollar Debt Starting This Month, Solar Industries to supply UAV 'Nagastra' to Indian ArmyKumar Mangalam Birla returns to Vodafone Idea board as additional director, Bank of Baroda approves raising up to $7bnn, SEBI plans to allow mutual funds with performance-based fees, Economy Moving Into Low Inflation Regime, RBI Says. ICICI Bank announced inline with expected Q4 results. Uday Kotak To Transition To Non-Executive Role After CEO Tenure At Kotak Mahindra Bank. Macrotech Developers (Lodha) announced better than expected Q4 results.
· Uday Kotak is set to retire as MD & CEO of the Kotak Mahindra Bank in December 2023. Kotak Mahindra Bank has received shareholder approval to appoint Uday Kotak as a non-executive, non-independent director after his tenure as CEO ends later this year.- We are positive on the stock.
· HDFC and HDFC Bank - The Reserve Bank of India (RBI) has allowed HDFC Bank Ltd and HDFC selective regulatory relief to smooth out the merger between the two organisations, set to conclude by July this year. RBI has permitted the bank to meet priority sector lending requirements in a staggered fashion over three years – Positive
· Lodha (Mcrotech Developers) – Company approves bonus in the ratio of 1:1- positive
· Macrotech Developers (Lodha) Business Update – Company maintained its sales run-rate with bookings of Rs3000cr (in line with our estimate of Rs3100cr b), down 12% YoY and flat QoQ, Company has surpassed its FY23 pre-sales guidance of Rs11500cr by delivering pre-sales of Rs12100cr , up 34% YoY. In FY23, LODHA raised prices by 8% at the portfolio level. – positive
· Mahindra & Mahindra Financial Services: The company raised Rs 682 crore via allotment of non-convertible debentures on private placement basis. - positive
· Wipro share buy-back - : The company's board of directors will consider the proposal over its meeting on April 26-27. The decision regarding buyback of equity shares will be communicated on April 27.
· HDFC AMC : The company received the final approval from markets regulator SEBI for change in control from HDFC to HDFC Bank. The move was necessitated due to change in co-sponsor of HDFC Mutual Fund, on account of amalgamation of HDFC with and into HDFC Bank - Positive
· Union Bank of India: The board will meet on April 26 to consider the bank’s capital plan. The plan proposed to raise equity capital via further public offer, rights issue, private placements, and issue of Basel III compliant Additional Tier 1 bonds and Tier 2 bonds. - positive
· Solar Industries – Company has bagged an order to supply unmanned aerial vehicle (UAV) 'Nagastra' to the Indian Army worth Rs212cr, beating competitors from Israel and Poland.- positive
· Bank of Baroda– Company approved raising of foreign currency funds via bond sales of as much as $1bn under the lender’s medium-term notes program. The board approved raising up to $3bn by issuing certificate of deposits in one or more tranches at an appropriate time. It also approved raising a further up to $3bn through bilateral or other borrowings – positive.
· Economy Moving Into Low Inflation Regime, RBI Paper Says - India’s economy is likely moving into a low inflation regime as supply shocks fade and demand cools, according to a paper co-authored by Reserve Bank of India Deputy Governor Michael Patra. – Expect positive for Banks, auto and real estate stocks on hope of RBI to cut interest rate in the next policy meeting.
· Power Mech Projects- Company has received orders worth Rs.720.00 Crores. Construction of Government Medical College for Uttarakhand worth Rs362.00 crores and Balance Erection works & Refurbishment of 2x525 MW Monnet ISpat, JSPL,Angul, Odisha - Rs. 106.00cr – positive.
· Dividend – Lodha Rs2, Tanfac announce dividend Rs6.50. Wendt Ltd Rs50 and dividend Rs8 a share, Ksolves Industries Rs8.
· Sun Pharma - The US FDA had conducted inspection at Sun Pharma's Mohali (Punjab) facility from August 3 to August 12, 2022. The US FDA had classified the inspection as "Official Action Indicated" (OAI). The Company has received a letter titled "CONSENT DECREE CORRESPONDENCE / NON-COMPLIANCE LETTER" from the US FDA. – Any sharp decline will be buying opportunity.
· Maharashtra Seamless – Company receives order of Rs. 262 crores from ONGC – Positive
· Dr Reddy – Company announced the launch of Treprostinil Injection in the U.S. market, a therapeutic equivalent generic version of Remodulin® (treprostinil) Injection, approved by USFDA - positive.
· PNC Infra- Company wins orders worth Rs819cr for construction of Highway projects – positive
· Max India – Company’s Antara Residences for Seniors Noida project Phase I of 340 apartments - sold out 100%. The company continues to be well-capitalized with a treasury corpus of Rs 290 crore as on March 31, 2023, and other monetizable assets of Rs 160 crore to support Antara's growth plans. – positive
· Heranba Industries – Company to launch five new products out of Sarigam technical plant. These products would be launched in both technical and formulations segments. Approvals for formulations are already in place with the company. – positive
· IIFL Finance - Credit rating from B2 to B1, retaining 'stable' outlook on the company which also includes the MTNs. Moody's said the upgrade has been driven by factors such as higher share of off-balance sheet loans; further fortifying its asset-light business model and improvement in the company's key metrics of funding, profitability. Earlier this month, IIFL Finance also secured $100 million in long-term funding, jointly, from Export Development Canada (EDC) and Deutsche Bank. – Positive
· Ashapura Minechem has approved the sale/transfer of its Chamotte Plant of the Company to M/s Orient Abrasives Ltd. The Company shall receive consideration of Rs. 21 Crores for the above sale/transfer. – positive
· Gujarat Industries Power - Comapny have considered / approved the procurement of Imported Coal for 500 MW Surat Lignite Power Plant (SLPP) and deliberation of EPC Contract capacity at Khavda, Great Rann of Kutch, Gujarat. – positive
· Kumar Mangalam Birla returns to Vodafone Idea board as additional director - Aditya Birla Group Chairman Kumar Mangalam Birla has returned to the board of debt-ridden Vodafone Idea as an additional director in a non-executive and non-independent role. Birla stepped down from the board of Vodafone Idea (VIL) in August 2021 for his role as non-executive chairman of the company. – Avoid due to poor balance sheet .
· Suven Pharmaceuticals: The Competition Commission of India approved the acquisition of 76.1% of the company by Berhyanda. – positive
· Laxmi Organic Industries: The board approved the proposal to raise funds through equity and/or debt, as well as borrow Rs 2,000 crore. – positive
· JSW Energy – Company has commissioned 51 MW of wind power capacity under phase-wise commissioning of 450 MW ISTS-connected wind power project awarded under SECI tranche X in Tamil Nadu.- positive
· Ganesh Benzoplast receives favorable order from NCLAT in dispute against STC – positive
· Vedanta – Company said it will make bond payments due this month, a move that should assuage concerns about its liquidity after surging interest rates intensified pressure on low-rated borrowers with heavy debt loads.
· Market regulator SEBI is planning to permit a new category of mutual fund schemes where asset managers’ charges will partly be linked to performance, according to an official document reviewed by Reuters and a source directly familiar with the matter. As part of the proposal, the Securities and Exchange Board of India (SEBI) wants to allow additional charges if a fund consistently outperforms a relevant benchmark index and gives higher annualised returns, according to an internal SEBI document.
· Reliance Industries Q4 results - Company reported better than expected Q4 results. Company reported Q4 net profit Rs13820cr (up 24.6% YoY) – expectation Rs9380cr, Ebitda Rs18070cr (up 15.2% YoY) – Expectation Rs16250cr, Ebitda Margin 15.2% vs 11.3% (YoY) – expectation 13.6% and income Rs118700cr (down 8.3% YoY)- expectation Rs119880cr
· Macrotech Developers (LODHA) – Company reported better than expected Q4 results. Company reported Q4 net profit Rs743.4 (up 31% YoY) – expectation Rs380.5cr, Ebitda Rs771.7cr (up 23.7% YoY) – Expectation Rs597.6cr, Ebitda Margin 24.7% vs 23.6% (YoY) – expectation 23.2% and income Rs3255.4cr (down 5% YoY)- expectation Rs2571.7cr
· ICICI Bank announced in line with expected Q4 operating profit and improved asset quality. Company reported Q4 Net profit Rs9121cr (up 30% YoY) – Expectation Rs9160cr, NII Rs17667cr (up 40% YoY) – Expectation Rs17470cr, Other income was up 7.4% YoY at Rs 5,088 crore – Expectation Rs5070cr, Operating profit Rs13860cr (up 36% YoY) – expectation Rs14050, Net interest margin for the bank rose to 4.9% vs 4.65% (QoQ), GNPA at 2.81% vs 3.1% (QoQ), NPA at 0.48% vs 0.6%, Provision Rs1620cr (down 51.5% YoY) – expectation Rs1860cr, Total deposits rose 10.9% year-on-year to Rs 11.8 lakh crore and Dividend Rs8 a share.
· Hindustan Zinc announced lower than expected Ebitda and Ebitda and Margin. Company reported Q4 Income Rs8509cr (down 3.3% YoY) – expectation Rs8500cr, Ebitda Rs4255cr (down 14.2% YoY) – Expectation Rs4400cr, Ebitda Margin 50% vs 56.4% (YoY) – expectation 52.6% and Net profit Rs2583cr (down 11.8% YoY)- expectation Rs2800cr.
· Yes Bank Q4 Results - Yes Bank Q4 Results - Net Profit Rs202cr (down 45% YoY) – Bloomberg estimate Rs258cr, GNPA 2.17% VY 2.02% (QoQ), Provisions Rs618cr (down 27% QoQ), Net Interest Income Rs2110cr (up 16% YoY), Net interest margin 2.8% vs. 2.5% YoY, Operating profit Rs889cr (up 15% YoY) and Fresh slippages Rs1196cr (down 26% QoQ)
· Tejas Networks Q4 FY 23 (Consolidated, YoY) company announced impressive Q4 results.- Revenues up 136.62% at Rs 299.32 crore EBITDA loss narrows to Rs 8.19 crore vs Ebitda loss of Rs 88.11 crore , Net loss narrows to Rs 11.47 crore vs loss of Rs 49.62 crore . Anand S Athreya has been appointed as managing director and CEO designate from April 21, 2023, to June 20, 2023. He will take over as managing director and CEO on June 21, 2023
