View on market: Stay Cautious, be with quality business:
Stocks rose and bonds remained under pressure Wednesday as investors geared up for biggest U.S. Federal Reserve interest rate-hike since 2000 and awaited cues from the central bank for tackling inflation. Equities advanced in Australia and South Korea, while S&P 500 and Nasdaq 100 futures rose. Japan and China are closed for holidays. The Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50, rose over 0.5% to 17,073 points as of 7:00 am. The Fed later today is expected to raise interest rates by 50 basis points and detail plans for the reduction of its balance sheet. Key for markets will be Fed Chair Jerome Powell’s commentary, which might contains hawkish surprises. In commodities, oil was at about $103 a barrel and gold was little changed. Bitcoin hovered around $38,000.
Economic Calendar:
- INR: M3 Money Supply on 04thMay
- INR: Service PMI on 05th May 2022.
- USD: Non Payroll Employment order 4th May, 2022.
- USD: Federal Interest Rate Decision 4th May, 2022.
Earnings Today: Adani Total Gas, Adani Green Energy, Tata Consumer Products, Kotak Mahindra Bank, IIFL Wealth Management, ABB India, Havells India, Equitas Small Finance Bank, EIH Hotels, Deepak Nitrite, SIS, Rain Industries, Oracle Financial Services Software, MAS Financial Services, Laxmi Organic Industries, Cigniti Technologies, Bombay Dyeing, Aptech
Q4Fy22 Earning:
Hero MotoCorp: Q4 FY22 (Standalone, YoY) Revenue fell 15% to Rs 7,421 crore (BBG estimate: Rs 7,465 crore) Net profit fell 28% to Rs 627 crore (BBG estimate: Rs 625 crore) Ebitda down 32% at Rs 828 crore (BBG estimate: Rs 877 crore) Margin at 11.2 % vs 13.90% (BBG estimate: 11.75%)
Adani Wilmar: Q4 FY22 (Consolidated, YoY) Revenue up 40% at Rs 14,960.37 crore Net profit fell 26% to Rs 234.3 crore EBITDA rose 21% to Rs 425.72 crore Margins at 2.8% versus 3.3%
Jindal Stainless: Q4 FY22 (Consolidated, YoY) Revenue up 68% at Rs 6,563.51 crore Vs Rs 3,913.64 crore EBITDA up 55.2% at Rs 841.59 crore Vs Rs 542.22 crore EBITDA margin 12.82% Vs 13.85% Net profit up 154% at Rs 735.53 crore Vs Rs 289.19 crore
Castrol India: Q4 FY22 (Consolidated, YoY) Revenue up 8.5% at Rs 1,235.7 crore Vs Rs 1,138.7 crore EBITDA fell 6.7% at Rs 317.20 crore Vs Rs 340.1 crore EBITDA margin 25.67% Vs 29.87% Net profit fell 6.2% at Rs 228.4 crore Vs Rs 243.6 crore
Britannia Industries: Q4 FY22 Revenue up 13% at Rs 3,550.45 crore Vs Rs 3,130.75 crore (Bloomberg Estimate: Rs 3,457.8 crore) Net profit up 4% to Rs 379.87 crore from Rs 364.32 crore (Bloomberg Estimate: Rs 378.76 crore) EBITDA up 8.7 % to Rs 549.68 crore Vs Rs 505.39 crore (Bloomberg Estimate: Rs 526.51) Margins at 15.5% Vs 16.1% (Bloomberg Estimate: 15.2%)
Brokerage Radar:
CITI ON VARROC ENG: Sell, TP Rs 210 (Interesting Contra View) 4-W Lighting Biz Divested for an EV of €600m Think that while VLS had been accruing losses over last few qtrs. & there were near term headwinds, VLS biz did provide a long term growth opportunity.
JEFFERIES ON TITAN: Hold, TP Rs 2600 Lower than expected 4Q, mainly due to a miss on reported jewellery margins Series of adjustments on +ve (diamond inventory gains, higher studded) & -ve (VRS, ex-gratia) but LFL margins still are a miss.
MACQUARIE ON BRITANNIA: Neutral, TP Rs 3400 Britannia’s 4Q Ebitda above est as cost control offsets gross margin miss Volumes up 5% Plan to take calibrated price hikes.
JP MORGAN ON TATA STEEL: OW, TP raised to Rs 1940 (on roll fwd) Another year of earnings upgrades given strong Europe & India Strong 4QFY22 with Europe EBITDA/t at $241/t; DPS +104% y/y; Capex guidance muted Increase FY23 EPS est by 24%
International Markets:
U.S. & Europe:
| Particulars | 02nd Apr | Chg | Chg(%) |
| Nasdaq | 12,563.76 | 27.74 | 0.22 |
| Dow | 33128.79 | -67.29 | 0.20 |
| 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.* | 33134.8 | 6.00 | 0.02 |
Asian markets:
| Particulars | 04th 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 | 03rdMay | 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 | 76.52 | 0.12 |
| Brent | 106.02 | 1.00 |
| Gold | 1863.91 | -0.36 |
| Silver | 22.575 | -0.23 |
FIIs & DII:
| Particulars | 02nd May | 29th Apr |
| FIIs | -1853.46 | -3648.30 |
| DIIs | 1951.10 | 3490.30 |
News Update
Voltas: The company entered into a joint venture with Highly International (Hong Kong), a wholly owned subsidiary of Shanghai Highly (Group) Company, to engage in the business of design, development, manufacture, marketing, sale and service of inverter compressors for room air-conditioners, motors for inverter compressors, and their associated parts including sourcing of raw materials and components.
Bombay Dyeing: Chief Financial Officer Hitesh Vora resigned effective August 2.
Aurobindo Pharma: Says Unit Eugia Pharma gets approval for Bortezomib for injection.
Macrotech Developers: To merge nine-units with itself.
Source: Moneycontrol, Livemint,, Bloomberg, Investing
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