Stock Market Today: Positive global cues to lift investor mood
Share Market LIVE Updates: Indices have shed almost all the gains and have turned flat towards the end of the session. Finance remains in green, while Pharma, PSU Bank, Auto and Realty shed. Bajaj Finance and Airtel shine; ITC and Titan fall.
Zydus Lifesciences’s net profit for the fiscal fourth quarter ended March 2023 dropped 25.4% to ₹296.6 crore from ₹397.4 crore in the corresponding quarter of last fiscal. The sharp decline in profit was largely due to a one-time loss of ₹601.3 crore.
The company’s consolidated revenue from operations in Q4FY23 increased 29.7% to ₹5,010.6 crore from ₹3,805.6 crore, YoY.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 75.1% to ₹1,257 crore from ₹718 crore, while EBITDA margin expanded by 640 bps to 25% from 18.6%, YoY. (Read More)
State Bank of India (SBI), the country’s largest bank, on Thursday reported a net profit of ₹16,694.5 crore for the quarter ended March 2023, a rise of 83% from ₹9,113.5 crore in the corresponding quarter last year.
SBI’s net interest income (NII) during Q4FY23 increased 29.5% to ₹40,392 crore from ₹31,197 crore. YoY. The bank's domestic net interest margin (NIM) for Q4FY23 increased by 44 bps YoY to 3.84%.
Operating profit during the quarter grew by 24.87% YoY to ₹24,621 crore. (Read More)
BNP Paribas India recommendations on AU Bank: BUY - Don’t let the rally temper your interest
Santanu Chakrabarti, Analyst – Banking and Finance of BNP Paribas recommends BUY for AU Bank:
Don’t let the rally temper your interest: AUBANK stock has rallied c31% from its low reached last month as the promoter-CEO’s term was extended by a full three years. We believe this should not deter new investors from entry as the merits of AUBANK’s investment case at current market price (CMP) remain compelling in the broader BFSI context.
· Long-term investment case holds even at CMP: Prolonged, well-underwritten and yield-remunerative 25%+ y-y loan growth in core SME/vehicle segments in legacy “Goldilocks" geographies is our central investment premise.
· Enviable positioning provides tactical assurance: We recognise that investment horizons shorter than the above decadal analysis have to be more careful about relative valuation considerations. We recognise that investment horizons shorter than the above decadal analysis have to be more careful about relative valuation considerations.
· Maintain as top mid-cap pick: AUBANK’S steady-state ROE production capability is 13-17% across a capital-raise cycle (stable ROA). Its valuation of 3.9x FY24E P/B has to be judged in the context of the premise of over 25% growth sustainability and boosts from future dilutions. Maintain BUY.
Upside risks for inflation sizable, central banks must stay resolute: IMF's Gita Gopinath
Price pressures seem entrenched in many economies, including emerging markets, and upside inflation risks are sizeable, said Gita Gopinath, First Deputy Managing Director at International Monetary Fund (IMF), adding that central banks must keep their monetary policies tight.
Gopinath was addressing the Annual Conference of the Central Bank of Brazil in Brasilia on Wednesday (local time).
"...markets are probably too optimistic about what it will take to bring down inflation in EMs. Despite encouraging signs, I am worried that price pressures seem entrenched in many economies and that upside inflation risks are sizeable," she said at the conference.
Hence, she said central banks must remain resolute in keeping policies tight and recognize that insufficient monetary tightening now may necessitate even more painful actions down the road - a lesson from the high inflation period of the 1970s that very much applies today. (ANI)
Mint Snapview: WPI contraction doesn't guarantee that RBI's fight against inflation is over
Wholesale prices have gone into deflation territory for the first time in three years. Slowing for the 11th straight month, the wholesale price index (WPI) dropped 0.92% in April 2023 from the same month last year.
Although the Reserve Bank of India (RBI) committee that sets interest rates targets retail inflation (the consumer price index, or CPI), economists still track the WPI, especially when it enters the deflationary zone. That’s because manufactured products account for two-thirds of the total weight in WPI.
In April all three sub-indices of the WPI – mineral oil, food and manufactured products – saw a significant decline. Manufactured products inflation hit its lowest level since October 2015. (Read More)
India VIX indicates calm in market; is it an investment opportunity or should you book profit? Here's what experts say
Volatility is not negative for all investors. Some analysts and investment gurus see it as an opportunity to buy undervalued companies. World's one of the most successful investors Warren Buffett said “The true investor welcomes volatility".
Investors look at the volatility index to measure market risk, fear and stress, before making investment decisions.
Shrey Jain, founder and CEO of SAS Online said the lower VIX can create a sense of stability and increase investor confidence and can lead to a more positive investor sentiment and potentially attract more investment into the market. (Read More)
Retail sales up 6% in April, says survey; southern and eastern India lead sales growth with a 7% jump
Retail sales rose 6% year-on-year in April, indicating moderate growth for the sector, according to findings of the monthly Retail Business Survey by industry body Retailers Association of India (RAI).
Retail sales reported a sluggish growth in northern India, while markets in southern and eastern parts of the country led sales growth with a 7% year-on-year jump during the month.
Among the sectors tracked by the survey, Quick Service Restaurants (QSR) reported a growth of 16% in April, followed by food and grocery at 15%. Meanwhile, categories such as furniture and furnishings, and consumer durables and electronics (CDIT), reported annual growth of 14% and 9%, respectively, last month. (Read More)
Vedanta shares witnessed buying interest among stock market bulls after the announcement of Vedanta dividend record date on Wednesday. In early morning deals, the Vedanta share price today opened upside and went on to hit an intraday high of ₹284.20 apiece on NSE, logging around 1.70 per cent rise against its Wednesday close price of ₹279.45 on NSE. The dividend stock declared on Wednesday that the board of directors of the company is going to consider and approve the second interim dividend for the financial year 2023-24. The board meeting for consideration and approval of the interim dividend has been fixed on 22nd May 2022. However, the board has declared the dividend record date on 30th May 2023. (Read More)
Indiabulls Real Estate will move National Company Law Appellate Tribunal (NCLAT) to challenge the NCLT Chandigarh bench order withholding its merger with NAM Estates and Embassy One Commercial Property Developments (Embassy One).
The Chandigarh bench of the National Company Law Tribunal (NCLT) had earlier this month withheld the merger of Embassy Group's certain residential and commercial projects with Indiabulls Real Estate. (Read More)
UK Announces Japan Chips Partnership as Fears Grow Over Taiwan
Rishi Sunak announced £18 billion ($22.5 billion) of new investment by Japanese businesses in the UK, mostly in clean energy, as well as a bilateral “semiconductor partnership" aimed at boosting supply chain resilience amid fears over Chinese interference in Taiwan.
A “Hiroshima Accord" seeks to deepen economic, security and tech cooperation between the two countries, the British premier said as he landed in Japan on Thursday ahead of the Group of Seven summit.
Stress testing and strengthening supply chains are a key aim of the leaders in the wake of Russia’s war in Ukraine and the Covid-19 pandemic, with their reliance on chips from Taiwan high on the agenda. The UK will unveil its long-awaited Semiconductor Strategy Friday.
Sunak said he and Japanese Prime Minister Fumio Kishida are “closely aligned on the importance of protecting peace and security in the Indo-Pacific and defending our values, including free and fair trade." (Bloomberg)
Offshore parents of FPI's to be considered ‘Legal entity’: Report
The parent organisations of Foreign Portfolio Investors (FPIs) trading on Indian stock exchanges, that are incorporated in jurisdictions like Luxembourg and Singapore will now have to declare themselves as the "legal entities" of such FPIs, a report said.
This will make the parent organisations of FPIs as the ‘client’ of the fund custodian, making a significant change in the current compliance framework, as per a report in Economic Times. (Read More)
Rupee sinks to near 8-wk low on higher U.S. yields, dollar
The Indian rupee inched down on Thursday to a nearly eight-week low on the back of higher U.S. bond yields and a firmer dollar as risk sentiment improved on hopes of an imminent debt ceiling deal.
The rupee was down at 82.4750 against the U.S. dollar, compared to its previous close of 82.38. It hit its lowest since March 24 at 82.4825.
"The recent breakout of the U.S. dollar is giving a directional move in USD/INR and oil has also swung back, which is adding some pressure to the rupee," said Anand James, chief market strategist at Geojit Financial Services.
"Rupee is moving to a consolidation zone after the recent weakness," James added.
Meanwhile, U.S. Treasury yields rose overnight and the dollar index surged to an over seven-week high in the wake of positive signs on the debt ceiling negotiations and upbeat housing data. (Reuters)
ITC share price jumps ahead of Q4 results today; strong results expected as all segments of the company are expected to perform well
ITC share price today witnessed buying interest among stock market bulls during early morning deals on Thursday. ITC share price today opened upside at ₹430 apiece levels and went on to hit intraday high of ₹432.45 per share levels, logging more than one per cent rise against its Wednesday close of ₹427.60 per share levels.
According to stock market experts, ITC share price is rising as the company is going to announce its Q4 results today. They said that market is expecting strong ITC results as all segments of the company — tobacco, hotels, FMCG, agriculture, etc. — are expected to perform well during January to March 2023 quarter. They said that ITC share price may remain in bull trend as the market is expecting some announcement from the management in regard to the demerger of any segment in ITC. (Read More)
