View on market: Stay Cautious, be with quality business:
Equities and U.S. contracts rose on Monday as investors assessed the outlook for growth in some of the world’s largest economies. Equities clocked modest gains in Japan, Australia and South Korea, while Nasdaq 100 and S&P 500 futures added 1% each. The S&P 500 dropped for a seventh straight week–a stretch of weakness not seen since 2001. The Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50, fell more than 0.5% to 16,171.50 points as of 6:30 am. In China, traders will watch if stocks can maintain gains after the Chinese banks cut a key interest rate for long-term loans by a record amount as a property slump and Covid-19 lockdowns weigh on the economy. Nymex crude rose 0.2% to $110.53 a barrel. Bitcoin recovered to $30,200.
Economic Calendar:
- INR: FX Reserve on 27thMay
- INR: GDP Quartely on 31st May 2022.
- USD: Chicago Fed National Activity 24th May, 2022.
- USD: Manufacturing PMI 24th May, 2022.
Earnings Today: Steel Authority of India, Zomato, Bharat Electronics, Divi’s Laboratories, HLE Glascoat, Ramco Cements, The New India Assurance Co., Graphite India, BirlaSoft, Kaveri Seeds, National Highways Infra Trust, Shilpa Medicare, Sansera Engineering, HG Infra Engineering, Rolex Rings, Rupa & Co., Dollar Industries, Thomas Cook India, Action Construction Equipment.
Q4Fy22 Earning:
Paytm Q4 FY22 (YoY) Paytm’s operator One 97 Communications Ltd. reported a net loss of Rs 760 crore for the March quarter, versus a loss of Rs 780 crore a quarter earlier. Revenues rose to Rs 1,540 crore from Rs 1,460 crore.
Shree Cement Q4 FY22 (YoY) Revenues up 3.6% at Rs 4,098.8 crore Net profit down 15.9% at Rs 645.2 crore EBITDA down 22.9% at Rs 910.6 crore EBITDA margin at 22.2% vs 29.9%
NTPC Q4 FY22 (Standalone, YoY) Revenue up 23.86% at Rs 32,905.02 crore EBITDA up 55.51% at Rs 10,120.56 crore EBITDA margin 30.76% vs 24.5% Net profit up 25.51% at Rs 5,621.89 crore Recommended final dividend of Rs 3 per share
Thermax Q4 FY22 (Consolidated, YoY) Revenue up 26.51% at Rs 1,991.92 crore EBITDA fell 3.87% at Rs 135.22 crore EBITDA margin 6.79% Vs 8.93% Net profit fell 4.48% at Rs 102.54 crore Recommended dividend of Rs 9 per share
Sobha Q4 FY22 (Consolidated, YoY) Revenue up 32.15% at Rs 731.3 crore EBITDA up 36.47% at Rs 204.30 crore EBITDA margin 27.94% vs 27.05% Net profit up 39.6% at Rs 25 crore Recommended dividend of Rs 3 per share
Brokerage Radar:
NOMURA ON ASHOK LETLAND: Buy, TP raised to Rs 168 4Q ahead; play on strong CV upcycle MHCV cycle set for a likely sharp recovery over FY22-24F CNG range could improve market share.
NOMURA ON ZYDUS LIFE: Q4 in-line Gross margins, adjusted for inventory write-off, surprisingly expanded 200bp q-q on better product mix, favorable currency & higher prices in consumer wellness segment Co expects to deliver single-digit growth in US
CLSA ON STEEL: Downgrade Steel stks & Cut Est Tata Steel to U-P from Buy, TP cut to Rs 1120 from Rs 1645 JSW To Sell from U-P, TP Cut to Rs 550 from Rs 770 JSPL to O-P from Buy, TP Cut to Rs 540 from Rs 695 Domestic steel prices to correct as demand-supply balance .
International Markets:
U.S & Europe:
| Particulars | 20th May | Chg | Chg(%) |
| Nasdaq | 11,354.62 | -33.88 | -0.3 |
| Dow | 31261.3 | 8.77 | 0.01 |
| FTSE | 7,389.98 | 87.24 | 1.19 |
| CAC | 6,285.24 | 12.53 | 0.2 |
| DAX | 13,981.91 | 99.61 | 0.72 |
| Dow Fut.* | 31431.70 | 170.50 | 0.55 |
Asian markets:
| Particulars | 23rd May | Chg. | Chg(%) |
| SGX Nifty | 15,992.00 | 207 | 1.31 |
| Nikkei | 26,712.36 | 309.52 | 1.17 |
| Straits Times | 3,229.68 | 38.97 | 1.22 |
| Hang Seng | 20,452.21 | 331.53 | 1.65 |
| Shanghai | 3,118.35 | 21.39 | 0.69 |
ADR Watch:
| Particulars | 20th May | Chg. | Chg.(%) |
| Dr Reddy | 55.03 | 3.68 | 7.17 |
| HDFC Bank | 53.8 | 1.16 | 2.2 |
| ICICI Bank | 18.1 | 0.29 | 1.63 |
| Infosys | 18.7 | 0.07 | 0.38 |
| Tata Motor | 26.76 | 0.75 | 2.88 |
| Wipro | 5.94 | 0.03 | 0.51 |
Commodities & Currency:
| Particulars | Current Price | Chg(%) |
| USD/INR | 77.55 | 0.01 |
| Brent | 110.59 | 0.55 |
| Gold | 1852.64 | 0.57 |
| Silver | 21.861 | 0.85 |
FIIs & DII:
| Particulars | 20th May | 19th May |
| FIIs | -1265.41 | -1254.64 |
| DIIs | 2148.95 | 375.61 |
News Update
Infosys: The Bengaluru-based IT services firm has reappointed Salil Parekh as CEO and MD for a period of five years.
UPL: The company completed buyback of 1.33 crore equity shares at Rs 813.92 apiece aggregating to Rs 1,093.73 crore, representing 99.43% of maximum buyback size.
Jet Airways: The company has been re-issued air operator certificate by Directorate General of Civil Aviation for commercial flights.
Zydus Lifesciences: The company’s promoters may participate in the buyback of 1.15 crore shares representing 1.13% of total equity shares at price of Rs 650.