Share Market Highlights 2nd May 2024: Sensex and Nifty trade flat amidst mixed global cues; metal, auto stocks gain

Fresh From Farm, a B2B2C platform for consolidating fresh fruit demand, has raised $2 million in a pre-series A round, with participation from Inflection Point Ventures. Spearheading this investment, is Ashish Kacholia, an investor in the public markets.

Dabur India posted a consolidated net profit of ₹350 crore for the fourth quarter ended March 31, up 16.2 per cent from ₹301 crore a year earlier. Consolidated revenue stood at ₹2,815 crore, up 5.1 per cent in the quarter under review.

​Larsen & Toubro Limited​ made payment of interest for its 7.58% non-convertible debt securities, amounting to ₹1,500 crore. Shares up by 0.14% to Rs 3599.25 on the ​BSE​

Blue Star Limited’s reported FY24’s operating profit up by 34.9% to ₹664.94 crore. The company’s consolidated financial performance for Q4FY24 showed revenue from operations increasing by 26.8% to ₹3,327.77 crore, and net profit for the quarter excluding exceptional items was ₹159.71 crore. Blue Star’s board has recommended a dividend of ₹7 per equity share for FY24. Shares were down by 1.52% to Rs 1472.85 on the BSE

Oil and Natural Gas Corporation Ltd extended support of ₹5,615 crore for Compulsorily Convertible Debentures (CCDs) issued by ONGC Petro-additions Limited (OPaL), a joint venture. Shares were up by 0.05% to ₹283 on the NSE.

Skipper Limited reported its FY’24 results with profit after tax at ₹817 million, up by 130%. In Q4, the company achieved quarterly revenue of ₹11,535 million, showing a year-on-year growth of 76%. The company also secured new orders worth ₹11,410 million in Q4. The shares were down by 0.14% to Rs 356 on the BSE

Dabur India’s Q4 Consolidated Net Profit, on a like-to-like basis, reported a 22.7% upsurge to Rs 370 Crore. Revenue stood at Rs 2,815 crore, up 5.1% on INR basis from 2,678 Crore a year earlier. Consolidated Revenue for FY 24 at Rs 12,000 Crore up 7.6% over the previous year’s Rs 11,530 Crore. Consolidated Net Profit for FY 24 was up 7.9% to Rs 1,843 Crore, from Rs 1,707 crore a year ago. Dabur India FMCG Business posted a Volume Growth of 5.5% for the full year.

Steel Exchange India Limited confirmed the payment of interest to holders of Secured Non-Convertible Debentures on April 30, 2024, as per the due date, totalling Rs 4.22 crore. The shares were up by 0.28% to Rs 14.13 on the BSE.

G R Infraprojects Limited received a Provisional Completion Certificate for the “Four-laning of Galgalia-Bahadurganj section of NH-327E” project in Bihar, on Hybrid Annuity Mode. The shares were up by 2.37% to Rs 1402 on the BSE.

Dalmia Bharat Limited’s subsidiary, Dalmia Cement Limited received two orders imposing a total penalty of Rs 40,000 for delayed payment of admitted tax liability for FY 2018-19 under the Central Goods and Services Tax Act, 2017. The shares were down by 2.02% to Rs 1798 on the BSE.

Datamatics Global Services Ltd.’s TruCap+ Intelligent Document Processing Solution earned ‘Major Contender’ status in Everest Group’s IDP Products PEAK Matrix Assessment 2024. The shares were down by 0.65% to Rs 594.25 on the BSE.

Aurum PropTech Limited reported 95% receipt of First Call amount for partly paid-up equity shares, totaling Rs 121.20 crore, with 3,99,93,830 shares credited and listed for trading from May 07, 2024. The call required payment of Rs 30.00 per equity share, including face value and securities premium. The shares were up by 0.42% to Rs 156.30 on the BSE.

Adani Ports and Special Economic Zone Ltd (APSEZ) reported a 50% increase in net profit for FY24, reaching Rs 8,104 crore, driven by a 24% growth in cargo volume to 420 MMT and a 28% rise in revenue to Rs 26,711 crore. The company also acquired Gopalpur Port and Karaikal Port

REC stock rallied over 8 per cent on the NSE on Thursday after the company reported its financial results for the quarter and year ended March 2024 on April 30, 2024.

The stock traded higher by 8.46 per cent at ₹550.75 as of 1.08 pm, and has hit a 52-week high at ₹555.70.

The State-owned on Tuesday posted a 33 per cent rise in its consolidated net profit to ₹4,079.09 crore during the March quarter on account of higher income.

Bank of Maharashtra revised its Marginal Cost of Funds Based Lending Rate (MCLR), with rates for three and six months increasing to 8.45% and 8.65%, respectively. The changes are effective immediately. Shares were down by 0.46% to Rs 69.69 on the BSE.

Infosys Ltd. reported that it is recognized as a Leader in Application Modernization and Migration Services by Forrester, citing its Cloud and AI capabilities through Infosys Cobalt and Infosys Topaz. The company scored in strategy and current offerings and global delivery strategy. The shares were down by 0.05% to Rs 1420.35 on the BSE.

Ester Industries Ltd. and Loop Industries Inc. collaborated with a Joint Venture Agreement to establish an Infinite Loop manufacturing facility in India. The facility aims to produce RDMT, RMEG, and specialty polymers using waste polyesters for reduced carbon footprint. The shares were up by 7.15% to Rs 128.25 on the BSE.

Landmark Cars Limited expanded into Rajasthan with its eleventh state dealership in Jaipur, Alwar, and Bhiwadi, acquiring existing operations from Honda Cars India Limited. Shares were down by 0.31% to Rs 793 on the BSE.

A total of 3,815 stocks were actively traded, 1,965 advanced, while 1,685 declined and 165 stocks remained unchanged where 228 stocks hit a 52-week high and 9 stocks hit a 52-week low on the BSE.

Top gainers on the NSE at 12 pm include- Power Grid corporation (3.21%), Bharat petroleum corporation (-2.09%), Mahindra and Mahindra (2.07%), Grasim industries (1.47%), Asian paints (1.45%)

Top losers include- Kotak Mahindra Bank (-3.77%), Hindalco industries (-2.09%), Tata consumers (-1.85%), Wipro (-1.33%), Maruti Suzuki (-1.24%)

At 12 pm, the BSE Sensex rose 261.08 pts or 0.35% to 74,743.86 and the NSE Nifty gained 79.55 pts or 0.35% to 22,684.40.

Shares of Kotak Mahindra Bank on Thursday declined over 4 per cent after the company announced that its joint managing director K V S Manian, a veteran at the lender, has stepped down with immediate effect.

The private sector lender’s stock tanked 4.38 per cent to hit its 52-week low of Rs 1,552.55 on the BSE.

At the NSE, it went lower by 4.40 per cent to Rs 1,552.40 -- the 52-week low.

Manian, who had been with the lender for nearly three decades, was elevated in a management rejig in January.

The surprising news of the departure came days after the RBI put severe business restrictions on the lender, including stopping it from selling new credit cards for shortcomings in its tech architecture. - PTI

Aluminium futures (May contract) on the Multi Commodity Exchange (MCX) hit a high of ₹244 last week. It then moderated and closed at ₹236.1 on Wednesday.

Note that the chart of the continuous contract of aluminium futures hit resistance at ₹250 last week and then declined. This is strong resistance, and so there is a good chance for the contract to see a corrective decline from the current level.

Infibeam Avenues Ltd, a leading AI-powered listed fintech company and provider of innovative payment solutions, is excited to announce a strategic partnership between its flagship payment brand, CCAvenue, and Shivalik Small Finance Bank. This collaboration marks a significant milestone in expanding payment options for merchants and customers alike.

Aditya Birla Sun Life AMC Ltd has announced the launch of Aditya Birla Sun Life Nifty PSE ETF an open-ended exchange traded fund tracking the Nifty PSE Index. The New Fund Offer (NFO) will remain open from May 2 to May 16.

The Aditya Birla Sun Life Nifty PSE ETF offers a combination of benefits where investors can gain exposure to leading public sector companies with strong market positions, potentially benefiting from both high dividend yields and long-term growth.

· The ETF offers investors an opportunity to invest in India’s Public Sector Enterprises (PSEs) that will be responsible for propelling the growth of India going forward.

Avaada Energy on Thursday said that it has secured Rs 1,190 crore loan for a new solar project in Gujarat from the State Bank of India.

The financing, sanctioned and disbursed as a 20-year project loan facility, will support the development of a 400 MWp utility-scale solar PV power project in the Surendra Nagar district of Gujarat, a company statement said.

Power generated from the project will be procured by Gujarat Urja Vikas Nigam Limited (GUVNL), an apex body of the government of Gujarat, engaged in the bulk purchase and sale of electricity. - PTI

Commercial vehicle maker Ashok Leyland on Thursday reported a 10 per cent increase in total wholesales at 14,271 units in April as compared to 12,974 units in the same month last year.

Domestic sales increased 9 per cent to 13,446 units last month as compared to 12,366 units in April 2023, Ashok Leyland said in a statement.

Sales of medium and heavy commercial vehicles in the domestic market were 16 per cent higher at 8,611 units as against 7,422 units in the year-ago month, it added.

Light commercial vehicle sales slipped 2 per cent to 4,835 units from 4,944 units in the same month last year. - PTI

“The US Federal Reserve’s decision to maintain benchmark interest rates unchanged underscores its cautious approach towards managing inflationary pressures. With concerns over the persistent lack of progress towards achieving the Committee’s two per cent inflation target, the Fed has chosen to exercise patience and vigilance. This move is as expected given the Personal Consumption Expenditure data, rose by 2.7% in March.

From the point of view of foreign investors, US treasury bonds remain attractive. The Indian rupee will continue to remain weaker against the dollar as well, further dampening US investors’ returns from Indian investments. Therefore greater foreign inflows to equities in emerging markets such as India may have to wait a while longer.

However, by reducing the monthly redemption cap on Treasury securities from $60 billion to $25 billion starting in June, the Fed aims to slow down the pace of unwinding its bond holdings accumulated during previous quantitative easing (QE) measures. Given likely cuts in the future, private investors are now more likely to redirect some of their assets towards riskier investments like US stocks over the medium term.”

Bank Nifty began today’s session lower at 49,262 versus previous session’s close of 49,397. The index recouped the losses and is now hovering around Tuesday’s closing level.

The advance/decline ratio of the index stands at 7/5, giving a minor bullish bias. Federal Bank, up 3.2 per cent, is the top performer whereas Kotak Mahindra Bank, down 3.6 per cent, is the top loser.

As the output growth slowed, manufacturing-related Purchasing Managers’ Index (PMI) dropped to 58.8 in April as against 59.1 in March. However, the good news is that job creation was good.

“April’s manufacturing PMI recorded the second fastest improvement in operating conditions in three-and-a-half years, bolstered by strong demand conditions which resulted in a further expansion of output, albeit slightly slower than in March,” Pranjul Bhandari, Chief India Economist at HSBC, said. The PMI, prepared and S&P Global and christened as HSBC PMI, is released much in advance of the government data and gives a quick insight of industrial activity in private sector. The index is prepared on the basis of responses from purchasing executives of 400 companies.

Nifty 50 opened with a gap-down today at 22,568 versus Tuesday’s close of 22,605. But it recovered post the open and is now trading around 22,660, up 0.3 per cent.

The advance/decline ratio stands at 32/18, giving the index a bullish bias. Power Grid Corporation of India, up 4.3 per cent, is the top gainer in the index. Kotak Mahindra Bank, down 3.8 per cent, is the top loser.

Insolation Energy Limited’s subsidiary, Insolation Green Energy Private Limited, secured orders worth Rs 93.52 crore for Solar PV Modules Mono Perc M-10 from APM Projects Pvt. Ltd. and Rotomag Motors & Controls Pvt. Ltd. The shares were up by 5% to Rs 1655.85 on the BSE.

Genus Power Infrastructures Limited acquired Genus Alfa Smart Metering Private Limited, a wholly-owned subsidiary, operating in the Power Infrastructure and Distribution industry. The acquisition, with a subscribed capital of Rs 1 lakh, aims to bolster Genus’s presence in the Advanced Metering Infrastructure Service Provider (AMISP) sector. The shares were up by 2.50% to Rs 305.27 on the BSE.

Tata Communications Ltd implemented a sustainability-linked loan framework, for environmental responsibility and to get sustainability-conscious investors. The shares were up by 0.51% to Rs 1738 on the BSE.

Mahindra & Mahindra Ltd. reported a 13% increase in overall auto sales for April 2024, totaling 70,471 vehicles, including exports. Within the Utility Vehicles segment, domestic sales surged by 18%, with 41,008 SUVs sold, contributing to the overall 41,542 vehicles sold, while Commercial Vehicles domestic sales reached 22,102 units. The shares were up by 1.43% to Rs 2187 on the BSE.

Aurobindo Pharma Limited completed the disposal of business assets of Eugia US Manufacturing LLC, its wholly owned step-down subsidiary, the shares were up by 0.16% to Rs 1154 on the BSE.

Bajaj auto Ltd. reported it’s sales for April 2024, Two-wheeler sales surged to 2,16,950 domestically and 1,24,839 in exports, marking a 19% and 18% increase respectively, while Commercial Vehicle sales totaled 32,133 domestically and 14,334 in exports, reflecting a 3% and 20% rise. Overall, total sales including Two-wheelers and Commercial Vehicles reached 3,88,256 units, showing a 17% increase from the previous year. The shares were up by 1.71% to Rs 9060 on the BSE.

L&T Technology Services and FORVIA inked a €45 million partnership focusing on ultra-low emissions engineering in Germany and India. Approximately 300 engineers from FORVIA’s sites in Augsburg and Bangalore have transitioned to LTTS, to ensure collaboration and support for end customers across digital PLM initiatives. Shares were up by 0.06% to Rs 4640 on the BSE.

Neogen Chemicals Limited reported that it maintained revenue at Rs 691 crore for FY24, EBITDA reached Rs 110 crore. However, PAT stood at Rs 36 crore, impacted by increased depreciation and interest expenses due to CAPEX in the Battery Materials division. Additionally, Q4 FY24 saw EPS at Rs. 6.42 per share. The shares were up by 3.08% to Rs 1589 on the BSE.

Adani Ports and Special Economic Zone Limited reported a 12% year-on-year surge in cargo volumes for April 2024, reaching 36.2 million metric tons. Dhamra Port achieved a monthly cargo volume of 4.38 MMT, the logistics segment reported growth, with rail volumes up by 5%. Shares were down by 0.67% to Rs 1315.97 on the BSE.

Allsec Technologies Ltd. disclosed the sale of its subsidiary, LLC Business, with revenue accounting for 9.52% of the total revenue and net worth at 3.73%. The agreement was executed on February 6, 2024, with an expected completion date of March 31, 2024, for a base price of Rs 27 crore to Aparajitha Corporate Services Private Limited. The shares were up by 5.27% to Rs 805.70 on the BSE.

The rupee traded on a flat note at 83.43 against the US dollar in early trade on Thursday amid a strong greenback after the American central bank decided to keep interest rate unchanged.

Forex traders said that an upward movement in the crude oil prices also pressured the Indian currency. However, it found support from positive domestic equity market sentiment and inflow of foreign capital.

At the interbank foreign exchange, the domestic unit opened strong at 83.41 but later slipped to its previous closing level of 83.43 against the dollar.

The rupee had settled 2 paise higher at 83.43 against the dollar on Tuesday, a day after losing 7 paise on Monday. - PTI

Major gainers on the NSE at 9.40 am include - Power Grid corporation of India (2.53%), Bharat petroleum corporation (1.87%), Mahindra and Mahindra (1.79%), Asian paints (1.53%), Grasim industries (1.34%)

Major losers include- Kotak Mahindra Bank (-3.97%), Hindalco industries (-2.09%), Maruti Suzuki (-1.88%), HDFC life insurance company (-1.40%), Tata Consumer products(-1.02%)

Cognizant Technology Solutions reported a 6 per cent drop in net profit to $546 million for the first quarter ended March 31, 2024, compared to $580 million for the same period last year. Revenue of $4.8 billion declined 1.1 per cent year-over-year. 

Bookings in the first quarter declined 6 per cent year-over-year. On a trailing twelve-month basis, bookings grew 1 per cent year-over-year to $25.9 billion, representing a book-to-bill of approximately 1.3X. 

Crude oil futures traded higher on Thursday morning following the market speculation over possible replenishment of strategic petroleum reserves in the US. At 9.30 am on Thursday, July Brent oil futures were at $83.92, up by 0.58 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $79.47, up by 0.59 per cent. May crude oil futures were trading at ₹6642 on Multi Commodity Exchange (MCX) during the initial hour of trading on Thursday morning against the previous close of ₹6622, up by 0.30 per cent, and June futures were trading at ₹6620 against the previous close of ₹6596, up by 0.36 per cent.

A total of 2,986 stocks were actively traded, 1,810 advanced, while 1,051 declined and 125 stocks remained unchanged where 135 stocks hit a 52 week high and 8 stocks hit a 52 week low on the BSE.

Copper prices dropped as funds took profits near the $10,000 per tonne mark after a sharp rally. Three-month copper on the London Metal Exchange fell 0.8 per cent to $9,916 a tonne. Chinese copper producers are planning to export up to 100,000 tonne of metal, the largest volume in 12 years, in an attempt to cool the rally and alleviate pressure on their order books.

However, shipping 100,000 tonne of copper out of China in a few weeks would be logistically difficult.

Copper inventory in Shanghai warehouses are close to four-year highs, indicating sluggish demand.

The arbitrage between LME and ShFE (Shanghai Futures Exchange) prices is making it lucrative to export copper. 

Chinese copper smelters plan to export 20,000 tonne a month if LME prices remain high.

Silver prices rose as the Federal Reserve maintained its benchmark interest rate unchanged, as predicted, and signalled that it is still leaning towards further rate reduction. The Fed maintained interest rates constant, but raised concerns about recent lacklustre inflation readings, which might delay rate decreases. Chair Jerome Powell said that although his projection for inflation to decline during the year is unchanged, “my confidence in that is lower than it was.” According to a Labour Department data, job vacancies in the United States reached a three-year low in March, while the number of individuals departing their positions decreased.

Key economic data slated for release includes German Final Manufacturing PMI from Euro Zone and Unemployment Claims, Factory Orders m/m, Trade Balance from US Zone.

Gold climbed beyond $2,315 as traders weighed the latest Federal Reserve policy decision. The Fed maintained its funds rate unchanged for the sixth meeting in a row, citing a lack of progress in combating inflation and a tight labour market. The central bank has also maintained that it does not want to reduce borrowing prices until it is more sure that inflation is slowly approaching its objective. Traders have reduced their expectations on Fed rate reduction this year owing to robust US economic statistics and sustained inflation. Meanwhile, the World Gold Council announced that global gold demand rose 3% to 1,238 metric tonnes in the first quarter, the best start to a year since 2016.

Key economic data slated for release includes German Final Manufacturing PMI from Euro Zone and Unemployment Claims, Factory Orders m/m, Trade Balance from US Zone.

Downgrade to REDUCE from BUY

TP cut to Rs1530 from Rs2095 

Target P/BV at 1.7x FY26E from earlier 2.2x 

Downgrade on back-to-back negatives 

KVS Manian resigned after 20 years of service 

He was recently promoted to Jt MD 

Many senior exits bynched up over 6 months, higher-than-industry attrition rate & RBI’s digital ban 

Recent changes shall hurt growth & profit for at least next 12-18 months

Jefferies on Kotak BK

Hold, TP Rs 1970 

Bank’s Jt. MD Mr Manian has resigned to pursue opportunities in financial sector 

Watch out for more senior & mid-mgt exits that can add to drag from RBI’s restrictions on credit cards & digital. 

Can affect growth & vals

Upgrade To Buy, Target Rs 2,550

Stellar SUV Performance & Tractor Recovery Warrant Valuation Expansion 

SUV 3XO – Major Game Changer For The Co 

Expect >8,000 Monthly Stable Vol, Driving Its SUV Growth To 20% In FY25 

Expect Vol CAGR Of 10% Over FY24-FY26, As Against Industry Growth Of 6-7% 

Operating Scale, Better Mix Would Drive EBITDA Margin Expansion Of 100 bps 

EBITDA Margin Expansion Of 100 bps From Current Level To 13.8% In FY26 

Tractor Rebound, & Better Pricing Would Also Drive EBITDA Margin Expansion 

Buy Call, Target Rs 195

Q4 Sharply Below Estimates On Surprising Inventory Loss & Weaker Refining Margins 

Refining Outlook Remains Healthy For CY24 Underpinned By Favorable Demand-Supply 

Global Inventories Remain Well Below Five-year Average Levels

Buy Call, Target Raised To Rs 4,445

Co’s Strategic Decision To Place An Order For 30 A350-900s Looks Sensible 

Co’s Strategic Decision To Place An Order With Option For Additional 70 Aircraft Looks Sensible 

It Is Too Early To Predict The Outcome 

Most Of Drivers Are Favourable; Product Quality And Execution Will Be Key 

Despite Strong Competition, Think Well-Supported Strategy Is Sound

Sell Call, Target `2,100/Sh 

G&B To Own Vikhroli Land, Co To Be Development Manager 

Restructure Lends Clarity On Vikhroli Land; Rules Out Any Option Value 

Maintain Sell On Rich Valuation

Reduce Call, Target Cut To Rs 810

Q4 Results Missed Est Due To Weaker Realisations-led Margin Pressure In US & India 

Soda Ash Fundamentals Have Weakened & Expect A Difficult Period Of Re-balancing 

Salt And Bicarb Remain Robust

Buy Call, Target Rs 775

Strong Performance In A Tough Quarter 

Q4 Beats Consensus Led By Higher Revenues 

Lower FY25/26 Revenue Estimates By 10%/4% 

Lower FY25/26 Margin By 130/40 bps To 28.5%/29.6%, Leading To A 17%/5% EPS Cut 

Stock Currently Trades At 37x FY26 EPS Which Is Attractive 

FY26 EPS Looks Attractive Given A 37% EPS CAGR Over FY24-26

CLSA on Indus Towers

Buy Call, Target Rs 450 

Q4 Revenue Of Rs 7,200 Cr, Up 7% YoY/Flat QoQ In-line 

Core Revenue Of Rs 4,580 Cr Was Up 8% YoY/2% QoQ 

Core Revenue Is Ahead With Indus Tenancy Up 2% QoQ At 3.68 Lk & Tenancy Ratio At 1.69x 

EBITDA At Rs 4,100 Cr & PAT Up 32% YoY/20% QoQ Were Both Above Estimate 

Co Added More Than Expected Towers 

CEO Said Network Expansion/5G Rollout Will Provide A Fillip To Growth 

CEO Said Supplemented By Voda Idea’s Recent Fundraise, Will Provide A Fillip To Growth 

UBS on Indus Tower

Neutral. TP Rs 220 

Q4: In line rev but higher EBITDA 

Indus added a record-high 7961 towers highest in past 3 yrs 

Management mentioned discussions with VI started but no final decision on pace of network expansion &/or receivable clearance has been made

UBS on Havells

Buy, TP raised to Rs 2040 from Rs 1800 

Q4 - Profitability is back, sustainability key 

Believe stocks underperformance for past 12 mths vs peers should reverse led by favourable real estate demand & upcoming capacities 

CLSA on Havells

Downgrade to Sell from U-P, TP Rs 1560 

4Q ahead of est. on better margins, while top line was lower. 

Lloyd reported a sharp improvement in margins while growth was soft (+6% YoY), indicating market share loss 

HSBC on Havells

Buy, TP Raised to Rs 1800 

Q4 FY24 profit beat consensus expectations due to a sharp improvement in Lloyd profitability 

Management commentary on growth outlook was upbeat 

Think Havells is now firmly on a strong profit growth path 

MOSL on Havells

Downgrade to Neutral, TP Rs 1780 

Strong revenue growth in ECD/cables; Lloyd turns EBIT positive 

Promising start of summer season driving revenue growth 

Raise EPS est. for FY25/FY26 by 4%/5% to a/c for better margins in cables & switchgear businesses

Jefferies on Chola Fin

Buy, TP Rs 1400 

CIFC’s PAT was Rs10.6bn (+24% YoY), 15% beat vs. est. due to higher fee income & lower provision. 

AUM grew 37% YoY ahead of our 34% est. (auto 26% YoY). 

NIM was steady QoQ. 

GNPA fell 33bps QoQ to 2.5% 

Nomura on Chola Fin

Reduce, TP Rs 1000 

Strong quarter driven by lower credit costs 

Improvement in asset quality & lower ECL/EAD drive credit cost moderation 

Margins expand driven by rise in yields & stable CoF 

Rich val leave no margin of safety 

CLSA on Chola Fin

U-P, TP Rs 1300 

4Q PPOP broadly in line while PAT beat est. 

While AUM growth is strong at 37% YoY, there is deceleration in disbursements growth across segments, especially vehicle finance 

Expect AUM Cagr to moderate to 22% in FY25/26 

The beginning of May month saw a slightly positive trend for India’s benchmark indices, Sensex and Nifty, as they opened amidst mixed global and domestic cues. The 30-share BSE Sensex rose by 143.33 points to 74,626.11 in early trade, while the NSE Nifty increased by 47.15 points to 22,652. 

The US Fed’s decision to hold the rates and confused signals keep market watchers perplexed. 

Fed Chair Jerome Powell said that after starting 2024 with three months of faster-than-expected price increases, it “will take longer than previously expected” for policymakers to become comfortable that inflation will resume the decline towards 2 per cent that had cheered them through much of last year. 

Meanwhile, in India, the GDP collection for April month hit an all-time high of ₹2.10-lakh crore even as core group output grew 5.2 per cent in March 2024, slower than 7.1 per cent growth in February 2024. 

Suman Chowdhury, Chief Economist and Head – Research, Acuité Ratings & Research, said: Mar’24 data for the eight core industries (ECI) further confirms our view that the core sector has been a key driver of the Indian economy in FY24 and is likely to remain one in FY25 as well.” 

“With the consistent focus on ramping up public infrastructure spend, most of the core industries except the oil and gas segment have got an impetus which is beyond the usual cyclicality in the sector. The key industries which has boosted the output of the core sector in FY24 are – steel, coal, cement and power. The weighted growth in these four core industries amounted to 9.90% during the year and if it were not for the weak output in crude oil and refined petroleum production, the reported core sector growth would have been closer to double digits,” it added. 

Gunjan Prabhakaran, Partner & Leader, Indirect Tax, BDO India, said the all-time high GST collection on April 24 has come on the back of strong growth in GST collections from northern states like UP, Punjab, Haryana, Delhi, etc. 

“The GST collection in April month has traditionally been higher (the previous highest GST collection was also achieved in April, 23), given that it reflects the economic activity in the month of March, which is the last month of the fiscal year,” he added. 

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities, said: the long-short ratio jumped to 43 per cent on April 29 from 35 per cent on April 26 as foreign portfolio investors (FPIs) built long positions and liquidated short positions in Index futures. 

“Significant call writing was observed at the 22,800 Strike in the index. The put writers cut their exposure at the 22,700 Strike towards the last hour of the day which led the down move in Nifty. The option activity at the 22,800 Strike will provide cues about Nifty’s direction ahead of the weekly expiry on Thursday, May 2,” he added. 

Ajit Mishra – SVP, Research, Religare Broking Ltd, said: “We view the intermediate profit-taking in the index as a healthy correction and anticipate Nifty to maintain support around the 22,300-22,400 zone. Most key sectors, except IT, are participating in the movement, so participants should adjust their positions accordingly.”

Company Update

Mcap: Rs88bn; CMP: Rs4354; TP: Rs5000; Upside: 15%; Rating: BUY

~ We raise TP to Rs5000 (previously Rs4250) and continue BUY rating on Vesuvius India Ltd (VIL). Rise in TP is due to increase in revenue growth, margins in CY24E/CY25E and valuation rollover.

~ 1QCY24 was a beat to our estimates on both revenue growth and margins due to i. sectorial tailwinds (crude steel production grew +15% yoy), ii. strong volume growth in flow control refractories which helped in outperformance, iii. benefits of low RM cost and iv. efficiencies of scale.

~ Despite looming concerns over price corrections, we expect margins to stay buoyant at ~18% levels in CY25/26. We expect momentum on sales volume growth to continue due to VIL’s leadership in flow control, product additions and continuous capex commitment. Remain positive on VIL.

Detailed Report

(Nirmal Bang Retail Research)

Result is above expectations led by strong recoveries and writeback of credit costs

NII came at Rs. 4487.5 Cr vs YoY Rs. 3497.2 Cr, QoQ Rs. 4290.7 Cr

PBP came at Rs. 4360.1 Cr vs YoY Rs. 3492.1 Cr, QoQ Rs. 4161.7 Cr

Provision came at Rs. -711.9 Cr vs YoY Rs. -319.7 Cr, QoQ Rs. 55.9 Cr

PAT came at Rs. 4016.3 Cr vs expectation of Rs. 3468.1 Cr, YoY Rs. 3000.9 Cr, QoQ Rs. 3269.3 Cr

Quarter EPS is Rs. 15.3

Stock is trading at P/E of 8.9x FY25E EPS & 1.9x trailing P/BV

(Nirmal Bang Retail Research)

Result ahead of Expectation

Revenue from Operations came at Rs. 4009.4 Cr (4.4% QoQ, 13.2% YoY) vs QoQ Rs. 3840.5 Cr, YoY Rs. 3543 Cr

EBIDTA came at Rs. 516.2 Cr (17.3% QoQ, 40.6% YoY) vs QoQ Rs. 439.9 Cr, YoY Rs. 367.2 Cr

EBITDA Margin came at 12.9% vs QoQ 11.5%, YoY 10.4%

Adj. PAT came at Rs. 283.8 Cr vs QoQ Rs. 240.3 Cr, YoY Rs. 207.8 Cr

Quarter EPS is Rs. 3.3

Stock is trading at P/E of 31.7x FY25E EPS

(Nirmal Bang Retail Research)

Result is ahead of expectation

Revenue from Operations came at Rs. 1002.2 Cr (-11.6% QoQ, 13.5% YoY) vs expectation of Rs. 937.3 Cr, QoQ Rs. 1133.4 Cr, YoY Rs. 883.1 Cr

EBIDTA came at Rs. 257.3 Cr (-16.9% QoQ, 72.4% YoY) vs expectation of Rs. 215.1 Cr, QoQ Rs. 309.7 Cr, YoY Rs. 149.3 Cr

EBITDA Margin came at 25.7% vs expectation of 23%, QoQ 27.3%, YoY 16.9%

Adj. PAT came at Rs. 154.4 Cr vs expectation of Rs. 154.6 Cr, QoQ Rs. 228.9 Cr, YoY Rs. 165 Cr

Quarter EPS is Rs. 47.6

Stock is trading at P/E of 52x FY26E EPS

(Nirmal Bang Retail Research)

Result marginally ahead of expectation

Revenue from Operations came at Rs. 5434.3 Cr (23.5% QoQ, 12.1% YoY) vs expectation of Rs. 5480.9 Cr, QoQ Rs. 4400.6 Cr, YoY Rs. 4849.6 Cr

EBIDTA came at Rs. 636.8 Cr (47.2% QoQ, 20% YoY) vs expectation of Rs. 562.6 Cr, QoQ Rs. 432.6 Cr, YoY Rs. 530.8 Cr

EBITDA Margin came at 11.7% vs expectation of 10.3%, QoQ 9.8%, YoY 10.9%

Adj. PAT came at Rs. 448.9 Cr vs expectation of Rs. 393.3 Cr, QoQ Rs. 287.9 Cr, YoY Rs. 361.7 Cr

Quarter EPS is Rs. 7.2

Stock is trading at P/E of 63.8x FY25E EPS

(Nirmal Bang Retail Research)

Result is above expectations due to lower credit cost

NII came at Rs. 2355 Cr vs YoY Rs. 1765 Cr, QoQ Rs. 2171 Cr

PBP came at Rs. 1628 Cr vs expectation of Rs. 1627 Cr, YoY Rs. 1273 Cr, QoQ Rs. 1516 Cr

Provision came at Rs. 191 Cr vs expectation of Rs. 377 Cr, YoY Rs. 114 Cr, QoQ Rs. 359 Cr

PAT came at Rs. 1058 Cr vs expectation of Rs. 940 Cr, YoY Rs. 853 Cr, QoQ Rs. 876 Cr

AUM came at Rs. 145572 Cr (+9% QoQ, +37% YoY)

Disbursement came at Rs. 24784 Cr vs (+11% QoQ, +18% YoY)

Gross NPA (%) came at 3.54% vs QoQ 3.92%

Net NPA (%) came at 2.32% vs QoQ 2.56%

Quarter EPS is Rs. 12.6

Stock is trading at P/E of 23.5x FY25E EPS & 5.1x trailing P/BV

(Nirmal Bang Retail Research)

Result has improved

NII came at Rs. 462 Cr vs YoY Rs. 346 Cr, QoQ Rs. 421 Cr

PBP came at Rs. 333 Cr vs YoY Rs. 232 Cr, QoQ Rs. 300 Cr

Provision came at Rs. 19.4 Cr vs YoY Rs. 7.4 Cr, QoQ Rs. 10.2 Cr

PAT came at Rs. 233 Cr vs YoY Rs. 169 Cr, QoQ Rs. 215 Cr

AUM came at Rs. 9641 Cr (+8% QoQ, +39% YoY)

Disbursements came at Rs. 1336 Cr (+11% QoQ, +20% YoY)

Gross NPA (%) came at 1.38% vs QoQ 1.4%

Net NPA (%) came at 0.63% vs QoQ 0.65%

Quarter EPS is Rs. 8

Stock is trading at 6.4x trailing P/BV

Last date for Cum-Dividend Today

Abb India Limited

Dividend Per Share Rs.23.8

Previous day Closing Price – Rs. 6542.35

Crisil Ltd.

Dividend Per Share Rs.7

Previous day Closing Price – Rs. 4361.6

Mafia Trends Ltd

Dividend Per Share Rs.0.1

Previous day Closing Price – Rs. 17.54

Sanofi India Ltd

Dividend Per Share Rs.117

Previous day Closing Price – Rs. 8324.1

Citi on Maruti: Maintain Buy on Company, target price at Rs 15100/sh (Positive) 

Citi on Hero Motocorp: Maintain Buy on Company, target price at Rs 5500/sh (Positive) 

Citi on Sona BLW: Maintain Buy on Company, target price at Rs 725/sh (Positive) 

Nomura on Sona BLW: Maintain Buy on Company, target price at Rs 775/sh (Positive) 

DAM on M&M: Upgrade to Buy on Company, target price at Rs 2550/sh (Positive) 

Citi on IOCL: Maintain Buy on Company, target price at Rs 205/sh (Positive) 

Nomura on IOCL: Maintain Buy on Company, target price at Rs 195/sh (Positive) 

HSBC on Indigo: Maintain Buy on Company, raise target price at Rs 4445/sh (Positive) 

Jefferies on Chola Fin: Maintain Buy on Company, target price at Rs 1400/Sh (Positive) 

UBS on Havells: Maintain Buy on Company, raise target price at Rs 2040/sh (Positive) 

HSBC on Havells: Maintain Buy on Company, raise target price at Rs 1800/sh (Positive) 

CLSA on Indus Towers: Maintain Buy on Company, target price at Rs 450/Sh (Positive) 

Nuvama on Exide: Maintain Buy on Company, raise target price at Rs 540/Sh (Positive) 

MS on Exide: Maintain Overweight on Company, raise target price at Rs 504/Sh (Positive) 

CLSA on REC: Maintain Buy on Company, raise target price at Rs 595/Sh (Positive) 

Emkay on IOCL: Maintain Add on Company, target price at Rs 180/sh (Neutral) 

Nomura on Birlasoft: Maintain Buy on Company, target price at Rs 860/Sh (Positive) 

Citi on TVS Motors: Maintain Sell on Company, target price at Rs 1450/sh (Neutral) 

Citi on Havells: Maintain Neutral on Company, target price at Rs 1814/sh (Neutral) 

Jefferies on Havells: Maintain Hold on Company, raise target price at Rs 1600/sh (Neutral) 

MOSL on Havells: Downgrade to Neutral on Company, target price at Rs 1780/sh (Neutral) 

CLSA on Godrej Prop: Maintain Sell on Company, target price at Rs 2100/sh (Neutral) 

Nomura on Chola Fin: Maintain Reduce on Company, target price at Rs 1000/Sh (Neutral) 

HSBC on Tata Chem: Maintain Reduce on Company, cut target price at Rs 810/Sh (Neutral) 

Jefferies on Kotak Bank: Maintain Hold on Bank, target price at Rs 1970/sh (Neutral) 

Macquarie on Kotak Bank: Maintain Neutral on Bank, target price at Rs 1860/sh (Neutral) 

Citi on Kotak Bank: Maintain Neutral on Bank, target price at Rs 2040/sh (Neutral) 

Nuvama on Kotak Bank: Downgrade to Reduce on Bank, cut target price at Rs 1530/sh (Negative) 

CLSA on Havells: Downgrade to Sell on Company, target price at Rs 1560/sh (Negative)

Retail and wealthy individuals are gravitating towards writing options contracts — the more riskier side of the options market which was once the preserve of large institutions or expert traders.

The shift to options writing comes amid regulatory concerns on increasing retail participation in the derivatives segment. F&O trading results in losses for 90 per cent of individual traders, a SEBI study estimates.

Passenger vehicle (PV) market leaders, including Maruti Suzuki India (MSIL), Hyundai Motor India (HMIL) and Tata Motors, on Wednesday, reported flat or marginal growth in sales in April compared with the corresponding month last year because of a high-base effect and ongoing elections possibly dampening demand.

All in all, the wholesales (dispatches to dealers) of PVs reached 3,38,341 units in April (3,32,468 units), a year-on-year growth of 1.77 per cent.

Godrej group stocks, Airtel, Automobile cos, Kotak Mahindra Bank, Wipro, Coal India, Jindal Stailness, Granules India, KPI Green Energy, Kings Infra, Orient Cement, PB Fintech, Megellanic Cloud

📌 Market Levels

BSE Sensex: 74482.78 (-188.50)

Nifty 50: 22604.85 (-38.55)

NIFTY MID CAP 100: 50868.20 (+33.75)

NIFTY SMALL CAP 100: 17011.80 (-6.05)

📌 Index PE & PBV

SENSEX PE / PBV : 23.91 / 3.63

NIFTY 50 PE / PBV : 

22.00 / 3.96

NIFTY MIDCAP 100 PE / PBV : 34.53 / 4.46

NIFTY SMALLCAP 100 PE / PBV : 28.09 / 4.07

📌 Inflow/Outflow (Daily/MTD) 

FII / FPI Activity: 1071.93 crs / (35691.99 Crs)

DII Activity: 1429.11 crs / 44186.28 crs

📌 Volatility Index

India VIX - 12.87

📌 Commodities

Brent Crude: $87.50

Gold USD Oz/10 gm: $2306.86 = INR 70712

Silver: INR 79516

📌 Currency

Rs/$: 83.44

US Dollar Index (DXY) - 106.04

📌 10 Year Yield

7.18% GOI 2033: 7.19% (New)

US 10 Yr Yield - 4.67%

TRANSACTION CHARGES Per Crore

- Up to 3 Crores NO Change at Rs. 500

- More than Rs 3 Crores upto Rs 100 Crores: Rs. 4950 Vs Rs. 3750

- More than Rs 100 Crores upto Rs 750 Crores: Rs. 4700 Vs Rs. 3500

- More than Rs 750 Crores upto Rs 1500 Crores: Rs. 4200 Vs Rs. 3000

- More than Rs 1500 Crores upto Rs 2000 Crores: Rs. 3700 Vs Rs. 2500

- Above Rs 2000 Crores : Rs. 2950 Vs Rs. 2000

Source Link:

TVS Motor

Motorcycle sales at 1.88 lk units, [GU] 24% YoY EV sales at 17,403 units 

Exports at 80,508 units, up 12% YoY 

Three-wheeler sales at 9,023 units 

April total two-wheeler sales at 3.75 lakh, up 27% YoY

Eicher Motors

April domestic sales at 4,898 units, up 20.3% YoY 

April VECV sales at 5,377 units, up 18.1% YoY 

April exports at 356 units, up 38.5% YoY

Maruti Suzuki

April total sales at 1.68 lk units, up 4.7% YoY 

April exports at 22,160 units, up 31% YoY 

April local sales at 1.46 lk units, up 1.7% YoY

Tata Motors

Total sales of Tata Motors Ltd. rose 11.38% over the previous year to 77,521 units, according to an exchange filing on Wednesday. 

Total India sales rose 12% YoY to 76,399 units 

India CV sales rose 33% YoY to 28,516 units 

India car sales rose 2% YoY to 47,883 units India 

EV sales fell 2% YoY to 6,364 units

The automaker sold a total of 29,538 units in April, clocking a 31% growth year-on-year. Total car sales rose 2% year-on-year to 47,983 units.

Escorts Kubota

In April 2024, Domestic tractor sales fell 1.2% YoY to 7,168 units. 

Tractor exports rose 10.9% YoY to 347 units. 

Total tractor sales fell 0.7% YoY to 7,515 units.

“Despite the festive season shifting to April this year, the demand for tractors was impacted due to ongoing elections, low reservoir levels, decreased haulage, and moderate rabi output,” the company said in an exchange filing on Wednesday.

“However, we expect sentiments to improve post elections, especially with forecasts predicting near- to above-normal monsoon this year.”

China @ Market Holiday 

10:30 INDIA HSBC Manufacturing PMI (Expected: 59.1 versus Previous: 59.1)

13:25 EURO German Final Manufacturing PMI (Expected: 42.2 versus Previous: 42.2)

18:00 U.S. Unemployment Claims (Expected: 212k versus Previous: 207k)

19:30 U.S. Factory Orders m/m (Expected: 1.6% versus Previous: 1.4%)

Novo Nordisk A/S (Pre market) (Sector - Healthcare) 

ConocoPhillips (Pre market) (Sector - Energy) 

The Cigna Group (Pre market) (Sector - Healthcare) 

Regeneron Pharmaceuticals, Inc. (Pre market) (Sector - Healthcare) 

Southern Company (The) (Pre market) (Sector - Energy) 

Intercontinental Exchange Inc. (Pre market) (Sector - Financials) 

Thomson Reuters Corp (Pre market) (Sector - Financials) 

Zoetis Inc. (Pre market) (Sector - Healthcare) 

Parker-Hannifin Corporation (Pre market) (Sector – Capital Goods) 

Moody’s Corporation (Pre market) (Sector - Financials) 

Becton, Dickinson and Company (Pre market) (Sector - Healthcare) 

Apollo Global Management, Inc. (Pre market) (Sector - Financials) 

IQVIA Holdings, Inc. (Pre market) (Sector - Healthcare) 

Dominion Energy, Inc. (Pre market) (Sector - Energy) 

Ares Management Corporation (Pre market) (Sector - Financials) 

Moderna, Inc. (Pre market) (Sector - Healthcare) 

AMTEK, Inc. (Pre market) (Sector – Capital Goods) 

Quanta Services, Inc. (Pre market) (Sector - Infrastructure) 

Exelon Corporation (Pre market) (Sector - Energy) 

Vulcan Materials Company (Pre market) (Sector - Realty) 

Chunghwa Telecom Co., Ltd. (Pre market) (Sector - Technology) 

Howmet Aerospace Inc. (Pre market) (Sector - Defense) 

Blue Owl Capital Inc. (Pre market) (Sector - Financials) 

Targa Resources, Inc. (Pre market) (Sector - Energy) 

Cardinal Health, Inc. (Pre market) (Sector - Healthcare) 

Zimmer Biomet Holdings, Inc. (Pre market) (Sector - Healthcare) 

Iron Mountain Incorporated (Pre market) (Sector - Realty) 

Eversource Energy (Pre market) (Sector - Energy) 

ArcelorMittal (Pre market) (Sector - Metals) 

Apple Inc. (Post market) (Sector - Technology) 

Amgen Inc. (Post market) (Sector - Healthcare) 

Booking Holdings Inc. (Post market) (Sector - Hotels) 

EOG Resources, Inc. (Post market) (Sector - Energy) 

Pioneer Natural Resources Company (Post market) (Sector - Energy) 

Motorola Solutions, Inc. (Post market) (Sector - Technology) 

Coinbase Global, Inc. (Post market) (Sector - Technology) 

Monster Beverage Corporation (Post market) (Sector - Miscellaneous) 

Fortinet, Inc. (Post market) (Sector - Technology) 

Block, Inc. (Post market) (Sector - Financials) 

Digital Realty Trust, Inc. (Post market) (Sector - Realty) 

Consolidated Edison Inc (Post market) (Sector - Energy) 

Cloudflare, Inc. (Post market) (Sector - Technology) 

Rocket Companies, Inc. (Post market) (Sector - Technology) 

Coterra Energy Inc. (Post market) (Sector - Energy) 

Ameren Corporation (Post market) (Sector - Energy) 

Illumina, Inc. (Post market) (Sector - Healthcare) 

Shell PLC (Tentative) (Sector - Energy) 

Canadian Natural Resources Limited (Tentative) (Sector - Energy) 

Ambev S.A. (Tentative) (Sector - Miscellaneous)

Fed’s Powell:

U.S. Federal Reserve Key Policy Rates

Current: 5.5 percent 

Expected: 5.5 percent 

Previous: 5.5 percent

(Policy rates are unchanged, focus would be on policy stance)

Policy is well positioned to deal with risks and uncertainties we face.

Reducing policy too soon or too much or too late or too little both have risks.

Slowing the pace of QT does not mean our balance sheet will shrink less than it would otherwise.

So far this year inflation readings have not given us that greater confidence.

We do not expect it will be appropriate to cut rates until we have greater confidence inflation is going back to 2%.

We believe it will be, over time, sufficiently restrictive.

To hike rates, we’d have to see evidence that policy isn’t sufficient to bring inflation back down to our goal.

We are focused on how long to keep policy restrictive.

The Fed does not expect it will be appropriate to cut rates until it has gained greater confidence inflation is moving sustainably toward 2%.

Economic activity continues to expand at solid pace, job gains have remained strong, unemployment rate has remained low.

Inflation has eased over the past year but remains elevated.

(US short-term interest-rate futures contracts rise after the Fed releases May 1st FOMC statement as traders forecast Fed rate cut most likely in November from the September)

Risks to achieving the dual goals have moved into better balance over the past year.

Inflation is still too high and further progress is not assured.

Restrictive stance has put downward pressure on inflation and the economy.

We are highly attentive to inflation risks. Inflation data received this year have been higher than expected.

Longer-term inflation expectations remain well anchored though.

(In line with policy decisions, Fed Chair’s speech mostly focused on inflation as of now)

Here’s an interesting stock idea: In the last two months, it saw some sideways price correction. But the rally on Tuesday has brought back the bullish momentum, which we think can take the share price higher.

Power Finance Corporation’s stock, after hitting a record high of ₹477.8 in early February, lost momentum and has been consolidating for the over two months. But there has been an uptick in price recently after it found support at ₹360. Notably, on Tuesday, the stock rallied sharply and broke out of the resistance at ₹430.

Here are the intraday supports and resistances for widely traded stocks such as Reliance Industries, ITC, ONGC, Infosys, HDFC Bank, TCS and SBI

The beginning of the new month will be negative amid mixed global and domestic cues. The US Fed’s decision to hold the rates and confused signals keep market watchers perplexed. 

Fed Chair Jerome Powell said that after starting 2024 with three months of faster-than-expected price increases, it “will take longer than previously expected” for policymakers to become comfortable that inflation will resume the decline towards 2 per cent that had cheered them through much of last year.