Morning Update :–Kotak Mahindra Bank, LTIMindtree, HUL, Titan Company, and Maruti Suzuki were among the Nifty’s biggest losers, while Axis Bank, HCL Technologies, Eicher Motors, Tech Mahindra, and Infosys gained ground.
Sensex – Fall -15 Points at 73,837
Nifty 50 – Fall -11 Points at 22,391
Indian Market
FII AND DII
| FII Sold | 2,511.74 Cr |
| DII Bought | 3,809.90 Cr |
Indian Market News
- Asian markets trade weak, with the Nikkei and Kospi down 1% each.
- GIFT Nifty is down 65 points, indicating a negative start.
- Oil prices fall as US demand concerns outweigh fears about Middle East conflicts.
- Happiest Minds will acquire PureSoftware Tech for up to Rs 779 crore.
- S&P 500 ends higher as markets weigh rising yields and positive corporate results.
- Morgan Stanley maintains its overweight call on Axis Bank, targeting Rs 1,450.
- HSBC maintains a hold rating on HUL, targeting Rs 2,300.
- Nomura continues to reduce its rating on LTIMindtree, targeting Rs 4,170.
- South Korea’s Q1 GDP growth surpasses expectations.
- RBI directs Kotak Mahindra Bank to stop issuing new credit cards.
- Citi maintains neutral rating on Kotak Mahindra Bank, targets Rs 2,040.
- Reliance Industries acquires a 100% stake in SPV1, SPV2 from MSEB Solar Agro.
- TCS signs multi-year partnership with AWS.
Global Markets updates
GIFT Nifty
The GIFT Nifty has lost 61.50 points, or 0.27 percent, suggesting that the wider index in India is off to a bad start. Around 22,358.50 was the trading level for the Nifty futures.
US Market
The S&P 500 closed higher in a choppy trade on Wednesday, influenced by an increase in Treasury yields and positive corporate results from technology giants. The Nasdaq Composite added 16.11 points to reach 15,712.73, while the Dow Jones Industrial Average fell 42.77 points to 38,460.92.
Asian Market
After two days of nonstop gains, Asian markets rested, following Wall Street’s actions ahead of the US first-quarter GDP estimates that are scheduled for release on April 25.
Crude
Oil prices fell moderately on Wednesday due to easing Middle East conflict concerns and slowed business activity in the world’s largest oil consumer. However, a fall in US crude oil inventories limited losses. Brent crude futures fell 27 cents to $88.15 a barrel, while US West Texas Intermediate crude futures fell 38 cents to $82.98.
Dollar
The US dollar recovered after significant losses against the euro and sterling, while the yen remained near 34-year lows despite increased intervention warnings by Japanese officials.
Gold
Gold prices remained stable on Wednesday due to eased risk premiums over Middle East tensions and anticipation of US economic data. Spot gold remained flat at $2,322.60 per ounce, while U.S. gold futures fell 0.3% to $2,336.10. Spot silver dipped 0.2% to $27.22.
News Updates
Bajaj Finance to announce Q4 earnings
Bajaj Finance, India’s largest non-banking lender, is set to announce strong fiscal fourth quarter earnings on April 25 due to increased assets under management. Analysts predict a 22% year-on-year increase in net profit, primarily driven by credit growth, but warn that higher fund costs could impact the margin outlook. The bank’s net profit is expected to rise by 22% to Rs 3,836 crore in Q4FY24, while net interest income is expected to rise 40% to Rs 8,764 crore.
Axis Bank posts Rs 7,130-cr net profit in Q4
Axis Bank reported a net profit of Rs 7,130 crore for the fiscal fourth quarter, up from a loss of Rs 5,762 crore in the previous year. The lender’s net interest income increased by 11.47 percent to Rs 13,089 crore, while its gross non-performing asset (NPA) decreased from 2.02% to 1.43 percent, and net NPAs were at 0.31 percent compared to 0.39 percent.
HUL Q4 net profit falls 6% to Rs 2,406 crore
Hindustan Unilever reported a 6% decrease in standalone net profit to Rs 2,406 crore in Q4 2021, compared to the previous year. Sales rose to Rs 14,693 crore, but revenue in the key beauty and personal care segment declined by 2.7%. The company also announced a final dividend of Rs 24 per share for FY24.
Tech Mahindra to announce Q4 results
Tech Mahindra is predicted to experience a decline in Q4 revenue due to its telecom business weakness, while its net profit may increase by 39% to Rs 709.47 crore, while revenue is expected to decline by 1.33 percent to Rs 12,926.7 crore, according to an average estimate from seven brokerages.
Stocks in news
Kotak Mahindra Bank: Citing supervisory concerns over its technology platforms, the Reserve Bank of India prohibited Kotak Mahindra Bank from issuing new credit cards and from onboarding new customers through its online and mobile banking channels.
Hindustan Unilever: Weak topline and operating results contributed to the FMCG giant’s standalone net profit of Rs 2,406 crore for the quarter that ended in March of FY24, a decrease of 5.7% from the same period last year. Despite a 2% increase in volume, the operating revenue for the quarter decreased by 0.2 percent on an annual basis to Rs 14,857 crore.
Axis Bank: Despite increased provisions for bad loans, the private sector lender reported standalone net profit of Rs 7,130 crore for the March FY24 quarter, up from a loss of Rs 5,728.4 crore in the same period of the previous fiscal year. For the quarter, net interest income increased by 11.5 percent on an annual basis to Rs 13,089 crore, with a net interest margin of 4.06 percent.
ITC: The FMCG company announced that an electronic meeting of ordinary shareholders will be held on June 6 to discuss the proposed Scheme of Arrangement between ITC and ITC Hotels.
LTIMindtree: Due to weak topline and operating statistics, the IT services provider reported consolidated net profit of Rs 1,100.7 crore for the March FY24 quarter, a 5.9% decrease from the prior quarter. Operating revenue for the quarter was Rs 8,893 crore, a decrease of 1.4% on a sequential basis.
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