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

Asian stocks fluctuated while U.S futures fell as traders weighed potential slowdown in the global economy and China’s measures to boost growth. Equities were volatile in Japan, Australia and South Korea. Nasdaq futures tumble after Snap Inc. said it would not meet revenue and profit forecasts for the second quarter. Futures of Meta Platforms Inc. and Alphabet Inc. tumbled following Snap’sstatement. The Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50, rose nearly 0.5% to 16,253 points as of 6:30 am. In focus today are U.S. President Joe Biden’s comments that China tariffs imposed by the Trump administration are being reviewed. Elsewhere, West Texas Intermediate crude fell 0.5% to $109.74 a barrel. Bitcoin fell nearly 4% to $29,000.

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: Adani Ports, Grasim Industries, Zee Media Corporation, Balrampur Chini, Dalmia Bharat Sugar and Industries, Ipca Laboratories, Jyothy Labs, RITES, Strides Pharma Science, Gujarat Alkalies and Chemicals, Asian Granito, e-Clerx Services, Bank of India, Aster DM Healthcare, Minda Industries, Metropolis Healthcare.

Q4Fy22 Earning:

Steel Authority of India Q4 FY22 (Consolidated, YoY) Revenue up 32.1% at Rs 30,758.82 crore EBITDA down 29.52% at Rs 4,337.56 crore EBITDA margin at 14.1% vs 26.43% Net profit down 28.56% at Rs 2,478.82 crore Recommended final dividend of Rs 2.25 per share

Zomato Q4 FY22 (YoY) Revenue up 75% at Rs 1,211 crore EBITDA loss at Rs 449 crore vs EBITDA loss of Rs 154 crore Net loss at Rs 360 crore vs net losss at Rs 134 crore Gross Order Value at Rs 585 crore vs Rs 331 crore Average monthly transacting customers: 1.57 crore vs 0.98 crore

Bharat Electronics Q4 FY22 (Consolidated, YoY) Revenue down 8.35% at Rs 6,339.81 crore EBITDA down 20.36% at Rs 1,577.53 crore EBITDA margin at 24.88% vs 28.64% Net profit at 15.63% at Rs 1,154.2 crore Recommended final dividend of Rs 1.5 per share

Ramco Cements Q4 FY22 (Consolidated, YoY) Revenue up 4.88% at Rs 1713.4 crore EBITDA down 34.32% at Rs 294.90 crore EBITDA margin at 17.21% vs 27.48% Net profit down 45.15% at Rs 118.57 crore Recommended dividend of Rs 3 per share

BirlaSoft Q4 FY22 (Consolidated, QoQ) Revenue up 2.76% at Rs 1101.44 crore EBIT up 7.35% at Rs 154.58 crore EBIT margin at 14.03% Vs 13.43% Net profit up 16.61% at Rs 132.89 crore Recommended final dividend of Rs 3 per share Approved buyback of up 78 lakh shares at Rs 500 apiece

Brokerage Radar:

MORGAN STANLEY ON ZOMATO: OW, TP Rs 135 Qtry nos in line to better, with improved transparency on segment disclosures, better outlook for 1Q, & a tighter framework around capital allocation With these results, co is moving in the right direction although it needs consistent execution.

UBS ON ZOMATO: Buy, TP Rs 130 Q4: Healthy qtr despite reopening headwinds Co’s disclosures have also improved this quarter, which is a positive Believe growth drivers continue to remain strong.

CITI ON RAMCO CEMENT: Sell, TP cut to Rs 600 from Rs 650 4Q EBITDA Ahead; Maintain Sell on Industry Pricing Outlook Think overall industry pricing trends should remain muted In absence of substantial cement price acceleration, net D/EBITDA could remain high.

GOLDMAN SACHS ON DIVIS LABS: Buy, TP Rs 4850 Strong 4Q beat While co did not quantify Molnupiravir contribution, our calculations suggest c.$250m sales in FY22 (21% of sales) Key debate on stock has been sustainability of this revenue stream Cut FY23/24E EPS est by 3-8%

International Markets:

U.S & Europe:

Particulars       23rd May    Chg Chg(%)
Nasdaq 11,535.28 180.66      1.59
Dow 31880.24 618.34      1.98
FTSE 7,513.44 123.46 1.67
CAC 6,358.74 73.5 1.17
DAX 14,175.40 193.49 1.38
Dow Fut.* 31740.80    -140. 00      -0.44

Asian markets:

Particulars    24th May    Chg. Chg(%)
SGX Nifty 16,205.00 29.5 0.18
Nikkei 26,863.33 -138.19 -0.51
Straits Times 3,215.19 1.54 0.05
Hang Seng 20,247.48 -222.58 -1.09
Shanghai 3,138.91 -7.95 -0.25

ADR Watch:

Particulars     23rd May Chg. Chg.(%)
Dr Reddy 55.07 0.04 0.07
HDFC Bank 53.64 -0.16 -0.3
ICICI Bank 18.45 0.35 1.93
Infosys 18.89 0.19 1.02
Tata Motor 27.38 0.62 2.32
Wipro 6.04 0.1 1.68

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 77.52  -0.04
Brent 110.22     -0.53
Gold 1850.03    0.12
Silver 21.727    0.02

FIIs & DII:

Particulars         23rd May                                  20th May
FIIs -1951.17                               -1265.41                         
DIIs         1445.39        2148.95

News Update

Maruti Suzuki: The carmaker has bought 12.09% stake in AI software company Sociograph Solutions for Rs 1.99 crore to create customised sales experience on the web, and in virtual and augmented reality.

Marico: The consumer goods maker has acquired 53.98% stake in healthy breakfast and snack company HW Wellness.

Natco Pharma: FMC Corporation has filed a suit against the company for a Process Patent in Delhi High court. The patent covers a process to prepare Chlorantraniliprole that is set to expire on Dec. 6, 2025.

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