Market View 07th May 2022

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

U.S. futures and bonds fell amid rising inflation, monetary tightening and fears of global economic slowdown. Stocks in Japan led the decline in Asian markets while China has issued warnings about the jobs outlook as the country tightens curbs to prevent to spread of Covid-19. The Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50, fell over 1.2% to 16,215.50 points as of 6:45 a.m. Oil slipped from near $100 per barrel amid rising supply risks. Elsewhere, bitcoin hovered around $34,100.

Economic Calendar:

• INR: Trade balance on 13^thMay
• INR: CPI Inflation on 12^th May 2022.
• USD: Crude Oil Inventories 11^th May, 2022.
• USD: Core CPI 11^th May, 2022.

Earnings Today: UPL, Dalmia Bharat, Vedant Fashions, Central Bank of India, Suven Pharmaceuticals, Gujarat Narmada Valley Fertilizers & Chemicals, PVR, KEI Industries, Godrej Agrovet, BASF India, Mold-Tek Packaging, Craftsman Automation, Infibeam Avenues, Cosmo Films, CMS Info System, Borosil, Aarti Drugs

Q4Fy22 Earning:

Reliance Industries: Revenue up 10.78% at Rs 2,07,375 crore (less excise duty) Vs Rs 1,85,027 crore (Bloomberg Estimate: Rs 2,14,942.6 crore) EBITDA up 5.59% at Rs 31,366 crore Vs Rs 29,706 crore (Bloomberg Estimate: Rs 31,445.5 crore) EBITDA margin 15.1% Vs 16.05% (Bloomberg Estimate: 16.9%) Net profit fell 12.65% at Rs 16,203 crore.

Tata Power: Revenue up 15.41% at Rs 11,959.96 crore Vs Rs 10,362.6 crore (Bloomberg Estimate: Rs 11,515.2 crore) EBITDA up 20.06% at Rs 1,868.59 crore Vs Rs 1,556.41 crore (Bloomberg Estimate: Rs 1,805.3 crore) EBITDA margin 15.62% Vs 15.02% (Bloomberg Estimate: 15.67%) Net profit up 28.04% at Rs 503.11 crore Vs Rs 392.94 crore.

Grindwell Norton Q4 FY22 (Consolidated, YoY) Revenue up 9.84% at Rs 558.87 crore Vs Rs 508.8 crore EBITDA up 9.42% at Rs 123.64 crore Vs Rs 113 crore EBITDA margin flat at 22% Net profit up 11.4% at Rs 89.72 crore Vs Rs 80.54 crore Recommended dividend of Rs 12 per share of face value of Rs 5 each.

Brokerage Radar:

CLSA ON TATA POWER: Sell, TP Rs 212 Coal disappoints again Indonesia coal: both volume & ASP down QoQ Weak 4Q pepped-up by tax break on CGPL merger Remains expensive at 24x FY24CL EPS War-led commodity spikes & a retail frenzy provide an exit opportunity.

GOLDMAN SACHS ON RELIANCE: Buy, TP Rs 3200 Refining led earnings acceleration to drive consensus upgrades 4Q EBITDA grew 6% QoQ, 7th qtr of sequential growth led by telecom & refining Expect further acceleration in earnings with expectation of 21% QoQ growth in 1QFY23 led by refining & E&P.

JP MORGAN ON RELIANCE: Neutral, TP Rs 2575 Strong operating qtr, should get better with Refining, E&P & Telecom; Capex remains sharply elevated Seasonally entering news flow heavy period around AGM & given surge in diesel cracks & refining margins

International Markets:

U.S. & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII:

News Update

Mindtree/ Larsen & Toubro Infotech: LTI board approves merger of Mindtree with company. The share exchange ratio is 73 shares of face value Re. 1 each of L&T Infotech for every 100 equity shares of Mindtree of face value Rs. 10.

Lupin: The company has received FDA approval for Pregabalin Capsules to market a generic equivalent of Lyrica capsules.

HCL Technologies: The has signed a definitive agreement for the acquisition of Confinale AG, a Switzerland-based digital banking and wealth management consulting specialist and Avaloq Premium Implementation partner.
Future Consumer: The company will sell its 18.58% stake in Amar Chitra Katha for Rs 13.62 crore.

Indostar Capital: The company flags off deviations from processes in commercial vehicle loan portfolio and may be required to make an additional estimated credit loss provisioning between Rs 557 crore to Rs 677 crore. Following the additional provisions, capital adequacy ratio of entity to reduce from 35.1% to 25%.

Surya Roshni: The company has received order of Rs 53.06 crore for supply of API- 5L Grade X 70 3LPE Coated pipes from GAIL (India).

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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