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View on market: Stay Cautious, be with quality business:

Stocks declined and U.S. equity futures fell Monday as inflation worries and China’s Covid lockdowns weighed. Equities fell in Japan, Australia and South Korea. Markets in China and Hong Kong are shut for holidays. U.S. futures stabilized after the markets logged one of their worst monthly drops since the pandemic first led to a steep decline in markets in early 2020. The Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50, fell over 1% to 16,951.50 points as of 6:45 am. The Federal Reserve is expected to raise rates by a half point Wednesday, the largest increase since 2000. Price pressures due to disruptions from Russia’s war in Ukraine could intensify, as the European Union is set to propose a ban on Russian oil by the end of the year, with restrictions on imports introduced gradually until then, according to people familiar with the matter. West Texas Intermediate crude was near $105 a barrel. Elsewhere, bitcoin hovered around 38,700.

Economic Calendar:

  • INR: Manufacturing PMI on 02ndMay
  • INR: Service PMI on 05th May 2022.
  • USD: Non Payroll Employment order 4th May, 2022.
  • USD: Factory Order 3rd May, 2022.

Earnings: Adani Wilmar, Jindal Stainless, INOX Leisure, IDBI Bank, HDFC, Castrol India, Britannia Industries, Meghmani Organics, Mahindra Holidays & Resorts, Mahindra and Mahindra Financial Services, JBM Auto, EIH Associated Hotels, Dwarikesh Sugar, Devyani International, CG Power and Industrial Solutions, Alembic Pharmaceuticals, Saregama India, Olectra Greentech

Q4Fy22 Earning:

Wipro Q4 FY22 (Consolidated, QoQ) Revenue up 2.69% at Rs 20,860 crore Vs Rs 20,313.6 crore (Bloomberg Estimate: Rs 20,821.3 crore) EBIT fell 4.82% at Rs 3,402.9 crore Vs Rs 3,575.2 crore (Bloomberg Estimate: 3,603 crore) EBIT margin 16.3% Vs 17.6% (Bloomberg Estimate: 17.3%) Net profit up 3.03% at Rs 3,087.3 crore Vs Rs 2,969 crore (Bloomberg Estimate: Rs 3,005 crore) Attrition rose to 23.8% on to 23.8% on trailing twelve months basis

IndusInd Bank Q4 FY22 Net Interest Income: Rs 3,985 crore vs Rs 3535 crore (YoY) Net Profit: Rs 1400.6 crore vs Rs 926 crore (YoY) GNPA: 2.27% vs 2.48% (QoQ) NNPA: 0.64% vs 0.71% (QoQ)

Tata Chemicals Q4 FY22 (Consolidated, YoY) Revenue up 32% at Rs 3,480.67 crore Vs Rs 2,636.21 crore EBITDA up 132.5% at Rs 657.37 crore Vs Rs 282.72 crore EBITDA margin 18.89% Vs 10.72% Net profit up 3,833.56% at Rs 462.98 crore Vs Rs 11.77 crore

Tanla Platforms Q4 FY22 (Consolidated, QoQ) Revenue fell 3.6% at Rs 853.05 crore Vs Rs 884.92 crore EBIT fell 9.29% at Rs 173.92 crore Vs Rs 191.74 crore EBIT margin 20.39% Vs 21.67% Net profit fell 11% at Rs 140.62 crore Vs Rs 158 crore Recommended a final dividend of Rs. 2 per share

Brokerage Radar:

CITI ON MPHASIS: Neutral, TP cut to Rs 3130 from Rs 3625 In-line 4Q Revise FY23-24E EPS by 2-3%; trim multiple to 31x (vs 35x earlier) given demand/supply risks in sector & concerns on digital risk Decent net new deal TCV, up 28.5% yoy – provides visibility.

UBS ON WIPRO: Neutral, TP Rs 660 Lack of beats likely to put focus back on M&A synergies Given lower Q1 FY23 revenue guide and miss on Q4 FY22 margins, expect earnings cuts, reinforcing concerns on earnings growth for sector

CLSA ON ULTRATECH: Buy, TP Rs 7980 4Q above est on lower costs; capacity expansions to drive growth Price increase to offset near-term cost inflation, but demand outlook uncertain Driven by strong FCF, despite a weak FY23, expect co to be net cash by FY24.

CITI ON MARUTI: Buy, TP Rs 10700 4Q: Higher Operating Leverage Drives Beat Demand is robust, & with upcoming new model launches planned over FY24, Maruti should see increase in market share Chip shortage remains a concern though & is a possible downside risk

International Markets:

U.S. & Europe:

Particulars 29th Apr Chg Chg(%)
Nasdaq 12,334.64 -536.89 -4.17
Dow 32977.21 -939.18  -2.77
FTSE 7,544.55 35.36 0.47
CAC 6,533.77 25.63 0.39
DAX 14,097.88 118.04 0.84
Dow Fut.* 33125.4 153.7 0.46

Asian markets:

Particulars 02nd May Chg. Chg(%)
SGX Nifty 16,874.50 -252 -1.47
Nikkei 26,704.60 -143.3 -0.53
Straits Times 3,356.90 21.81 0.65
Hang Seng 21,089.39 813.22 4.01
Shanghai 3,047.06 71.58 2.41

ADR Watch:

Particulars  29th Apr Chg. Chg.(%)
Dr Reddy 53.68 -0.02 -0.04
HDFC Bank 55.21 -1.05 -1.87
ICICI Bank 19.04 -0.48 -2.46
Infosys 19.87 -0.63 -3.07
Tata Motor 28.21 -0.24 -0.84
Wipro 6.44 -0.37 -5.43

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 76.43  -0.07
Brent 106.11    -0.89
Gold 1887.21   1.28
Silver 22.641   2.01

FIIs & DII:

Particulars 29th Apr                             28th Apr
FIIs -3648.30                                         -1174.05                                         
DIIs 3490.30 1643.84

News Update

Suzlon Energy: The company has signed a Rupee Term loan agreement for availing financial assistance for refinancing
Eicher Motors: April vehicle sales rise 158% YoY to 5,525 units

HDFC: Raised retail prime lending rate on housing loans by 5bps, from May 1.

Maruti Suzuki: April Total sales down 6 % YoY to 1,50,661 units.
NTPC: Invited EoI to produce torrefied biomass pellets from Indian startups.

Sun Pharmaceutical: Firm’s $485 million antitrust deal gets court nod.

Tata Motors: April vehicle sales up 74% YoY to 72,468 units.

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