Morning Update :–US stocks closed higher on Tuesday after top-tier companies reported positive earnings, and investors were looking ahead to quarterly results from the Magnificent Seven and other megacap growth stocks.
Sensex – Rise 170 Points at 73,908
Nifty 50 – Rise 43 Points at 22,411
Indian Market
FII AND DII
| FII Sold | 3,044.54 Cr |
| DII Bought | 2,918.94 Cr |
Indian Market News
- Wall Street closes higher as investors digest earnings and megacap forecasts.
- Asian markets trade higher; Nikkei and Kospi are up 2% each.
- Oil prices edge up after data shows an unexpected drop in US crude stocks.
- The dollar is shaky following the euro’s rebound, and the yen has reached a 34-year low.
- The Indian rupee opened at 83.37 against the US dollar, compared to the previous close of 83.33
- Morgan Stanley maintains an underweight call on Tata Elxsi, targeting Rs 6,860.
- India’s inflation is at risk due to extreme weather and geopolitical issues, according to an RBI bulletin.
- CLSA maintains underperform rating on Tata Consumer, targets Rs 1,288.
- NSE retains Vodafone Idea and Zed Entertainment in the F&O ban list.
- Jefferies issues a ‘buy’ call for ICICI Prudential Life, raising the target price to Rs 680 per share.
- UBS downgrades Gujarat State Petronet to’sell’ and lowers target price to Rs 280 per share.
- India VIX rebounds from yesterday’s sharp drop, up more than 2%.
Global Markets updates
GIFT Nifty
With a gain of 78 points, or 0.35 percent, the GIFT Nifty trends suggest that the wider index in India is off to a good start. The 22,454.50 level was the trading range for the Nifty futures.
US Market
US stocks closed higher on Tuesday, with the Dow Jones Industrial Average rising 263.71 points to 38,503.69, the S&P 500 increasing 59.95 points to 5,070.55, and the Nasdaq Composite increasing 245.34 points to 15,696.64. Investors were primarily focused on quarterly results from Magnificent Seven and other megacap growth stocks.
Asian Market
Japan’s Nikkei led Asia’s gains, with the benchmark jumping 2.02% and the Kospi up 1.7%, following Wall Street’s second consecutive day of rally.
Crude
Oil prices rose in early trade on Wednesday due to a drop in U.S. crude stocks, a positive sign for demand, and a shift away from Middle East hostilities. Brent crude futures rose by 0.1% to $88.51 a barrel, while US West Texas Intermediate crude futures gained by 0.11 percent to $83.45 a barrel.
Dollar
Due to a combination of surprisingly strong European activity data and slowing US business growth, the dollar suffered significant losses versus the euro and sterling on Wednesday.
Gold
Tuesday saw a steadying of gold prices following a two-week low due to waning concerns about a spike in Middle East tensions. Investors are now waiting for important economic data to provide more clarity on when U.S. interest rate cuts will occur.
News Updates
Extreme weather and geopolitical concerns could threaten India’s inflation: RBI bulletin
The Reserve Bank of India (RBI) stated in its most recent bulletin on Tuesday that although growth in the South Asian country is showing an uptrend, extreme weather conditions and ongoing geopolitical tensions could pose a risk to India’s inflation trajectory.
The RBI staff stated in a “State of the Economy” article that “the pressures on food prices have been interrupting the ongoing disinflation process even as shocks from adverse climate events and geopolitical tensions add uncertainties to the outlook.”
According to a report released earlier this month by the Indian weather office, there will probably be more heat-wave days than typical between April and June.
Today is Hindustan Unilever’s Q4 earnings report.
Hindustan Unilever (HUL) is anticipated to release a Q4 earnings report that is somewhat muted due to the muted rural demand that hindered volume growth during the quarter.
The FMCG major is expected to report revenue of Rs 14,913 crore, clocking an on-year fall of approximately one percent from Rs 15,053 crore in the same quarter of the previous year, according to a Moneycontrol poll of nine brokerage estimates.
The consumer staples giant will make Rs 2,435 crore in profit, according to the poll, a decrease of nearly 4% from the same quarter last year.
Experts predict that the EBITDA margin will decrease as a result of increased royalties, increased advertising expenses, and slower sales growth.
Stocks in news
Tata Consumer Products: Despite strong operating results and a topline negatively impacted by an exceptional loss of Rs 216 crore, the FMCG company’s consolidated net profit for the quarter ended March FY24 was Rs 268 crore, a sharp decline of 23% from the same period previous fiscal year. For the quarter, operating revenue reached Rs 3,927 crore, up 9% year over year.
ICICI Prudential Life Insurance Company: In the March FY24 quarter, the life insurance company reported profit after taxes of Rs 174 crore, a 26% decrease from the same period in the previous fiscal year. During the quarter, value of new business (VNB) decreased by 26.4 percent year over year to Rs 776 crore, and VNB margin decreased by 1,050 basis points to 21.5 percent during the same period.
Tata Elxsi: Due to lower topline and subpar operating results, the Tata Group company reported a 4.6 percent year-over-year decline in net profit at Rs 196.9 crore for the quarter ended March FY24. During the quarter, revenue from operations decreased by 0.9 percent on an annual basis to Rs 905.9 crore.
Gokaldas Exports: At an issue price of Rs 775 per share, the company has raised Rs 600 crore by distributing 77,41,935 equity shares to qualified institutional buyers who meet the eligibility requirements.
Cyient DLM: Despite a weak operating margin, which was driven by other income and topline, the electronics manufacturing solutions provider reported consolidated net profit of Rs 22.7 crore for the March FY24 quarter, up 80.7 percent over the same period in the previous fiscal year. During the quarter, revenue from operations climbed by 30.5 percent on an annual basis to Rs 361.8 crore.
IIFL Finance: On April 23, the Reserve Bank of India (RBI) ordered a special audit to be conducted. The RBI had on March 4 suspended the company’s ability to make new gold loans until the audit had been satisfactorily completed. This step was taken as part of the RBI’s supervisory action in response to issues with specific loan disbursement procedures.
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