Morning Update :–The Nifty saw significant gains from Tech Mahindra, Hindalco, SBI Life Insurance, ITC, and Tata Steel, while Bajaj Finance, Bajaj Finserv, Apollo Hospitals, Eicher Motors, and ICICI Bank fell.
Sensex – Rise 95 Points at 74,435
Nifty 50 – Rise 27 Points at 22,597
Indian Market
FII AND DII
| FII Sold | 2,823.33 Cr |
| DII Bought | 6,167.56 Cr |
Indian Market News
- Asian markets trade higher; Kospi, Taiwan Weighted, Hang Seng up 1-1.5 percent.
- Wall Street stocks fall as weak GDP growth spreads gloom over rate cuts.
- Oil prices rise as US officials ease market concerns about economic headwinds.
- CLSA maintained its buy rating on Tech Mahindra, with a target price of Rs 1,589.
- HSBC maintains its buy rating for IndusInd Bank, with a target price of Rs 2,020.
- US economic growth slows in first quarter, while inflation surges.
- Macquarie maintains a neutral rating for Bajaj Finance.
- CITI maintains a buy rating on Bajaj Finance.
- Morgan Stanley maintains its overweight call on IndusInd Bank, targeting Rs 1,925.
- 1.02 million shares of KPIT Technologies traded in a bunch, according to Bloomberg.
Global Markets updates
GIFT Nifty
The GIFT Nifty, which gained 87 points, or 0.39 percent, suggests that the wider index in India is off to a good start. The 22657.5 level was the trading range for the Nifty futures..
US Market
Wall Street stocks closed lower on Thursday due to slower-than-expected US economic growth and persistent inflation, as well as a sell-off in largecap stocks triggered by disappointing results from Meta Platforms. The US economy grew at its slowest pace in nearly two years in the first quarter, and inflation accelerated, dampening hopes of the Federal Reserve cutting interest rates this year. The Dow Jones Industrial Average fell 375.12 points, the S&P 500 lost 23.21 points, and the Nasdaq Composite lost 100.99 points.
Asian Market
Friday’s trading session on Asian markets was uneventful as investors in the region await the Bank of Japan’s policy decision and Tokyo’s inflation data.
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.
Gold
Gold prices weakened as U.S. Treasury yields rose due to persistent inflation data, reducing hopes of Federal Reserve interest rate cuts.
News Updates
First-quarter US economic growth slows; inflation soars
The US economy grew at its slowest pace in nearly two years, driven by a rise in imports to meet consumer spending and a trade deficit. However, inflation also accelerated, indicating that the Federal Reserve would not cut interest rates before September. The Commerce Department reported a 1.6% annualized GDP increase in Q4, largely supported by consumer spending. The economy grew at a 3.4% rate in Q4, below the central bank’s non-inflationary growth rate of 1.8%. Inflation surged, with the personal consumption expenditures price index increasing at a 3.7% rate, excluding food and energy, after rising at 2% in the fourth quarter. The Commerce Department’s report also reflected a slower pace of business inventory accumulation and a downshift in government spending.
Stocks in news
Mahindra Tech: Despite a weak top line that was somewhat helped by other income, the multinational IT services company reported a consolidated net profit of Rs 661 crore for the quarter that ended in March FY24, a sharp increase of 29.5 percent over the previous quarter. For the quarter, revenue from operations decreased by 1.8% on a sequential basis to Rs 12,871.3 crore.
Bajaj Finance: Leading non-banking finance company Bajaj Finance reported a net profit of Rs 3,825 crore for the March FY24 quarter, up 21% from the same period in the previous fiscal year. For the quarter, net interest income increased by 28% on an annual basis to Rs 8,013 crore.
IndusInd Bank: For the quarter ended in March of FY24, the private sector lender reported a 15% year-over-year increase in standalone net profit at Rs 2,347 crore. This increase was primarily due to lower bad loan provisions and higher pre-provision operating profit. For the quarter, net interest income reached Rs 5,376.44 crore, up 15.1% on an annual basis.
L&T Technology Services: Under pressure from the EBIT margin, the engineering services provider reported net profit of Rs 341.4 crore for the January–March quarter of FY24, up 1.4 percent from the prior quarter. For the quarter, revenue from operations reached Rs 2,537.5 crore, up 4.8 percent on a sequential basis.
Cyient: Thanks to a low base, the engineering and technology solutions company’s consolidated net profit for the quarter that ended in March FY24 was Rs 196.9 crore, up 28.5 percent from the prior quarter. The extraordinary loss of Rs 50.3 crore had an effect on the profit in Q3FY24. For the quarter, revenue from operations increased by 2.2 percent on a QoQ basis to Rs 1,860.8 crore.
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