Market View 30th May 2022

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

Asian markets were poised for a cautious open on Tuesday as White House and Republican congressional leaders stepped up lobbying to ensure Congress passes a debt-accord to head off a U.S. default. Futures for Japan and Australia pointed to the slimmest of moves when those two markets open, while contracts for Hong Kong suggest more declines. A key gauge of Chinese shares is within a whisker of a bear market as a wobbling economic recovery, intensifying geopolitical tensions and a weaker yuan kept investors away. Contracts on the S&P 500 and Nasdaq 100 rose 0.3% and 0.5%, respectively, as they opened in Asia after each making small gains Monday in holiday-thinned trading. U.S. markets were closed for Memorial Day. European stocks wavered in muted holiday-affected trading Monday. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.77%. Crude was trading above $77-mark, while Bitcoin traded around 28,000-level. At 05:33 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, up 0.02% at 18,694.5. Domestic benchmarks held on to steady gains to end higher as U.S. lawmakers reached a debt ceiling limit settlement, with NBFC and consumer durable stocks leading the advance. The Indian rupee closed lower against the U.S. dollar as it faced a stronger greenback in the overseas markets.

Economic Calendar:

• USD : CB Consumer Confidence (May) on 30^th May, 2023
• USD : JOLTs Job Openings (Apr) on 31^st May, 2023
• INR : Federal Fiscal Deficit (Mar) on 31^st May, 2023
• INR : GDP Quarterly (YoY) (Q4) on 31^st May, 2023

Q4 Results Today: Patanjali Foods, Adani Ports and Special Economic Zone, Apollo Hospitals Enterprise, Welspun Corp, Torrent Pharmaceuticals, Aegis Logistics, Prestige Estates Projects, Mazagon Dock Shipbuilders, V-Guard Industries, Rhi Magnesita India, Graphite India, Action Construction Equipment, FIEM Industries, Greenply Industries, Lemon Tree Hotels, 3M India

Brokerage Radar:

MS ON RIL: Monthly margin tracker points to an oil to chemicals margin recovery despite volatility in fuel margins; Chemicals to drive EPS upgrade cycle; RIL’s energy vertical is key to keeping net debt/EBITDA below one; It usually invests $17 billion annually in chemicals, telecoms, new energy and retail

NOMURA ON ASHOK LEYLAND: Maintain Buy, TP Rs.184; Q4 EBITDA margin beats consensus, Operating leverage and higher gross margins boost EBITDA margin, See further scope of improvement in realization and CV cycle to stay positive

International Markets

U.S & Europe:

Asian markets

ADR Watch:

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Reliance Industries: NBC Universal (NBCU) and JioCinema, Viacom18’s streaming service, have entered into a multi-year partnership to offer films and TV series in India. Under the partnership, the over-the-top (OTT) platform will stream Comcast NBCUniversal’s production entities and brands. The deal will give JioCinema’s premium subscribers access to popular hollywood shows. JioCinema is the streaming platform run by India’s Reliance Industries.

Rail Vikas Nigam: The company has recorded a 5% year-on-year decline in consolidated profit at Rs 359 crore for quarter ended March FY23, impacted by lower topline. Consolidated revenue from operations dropped 11.1% to Rs 5,720 crore compared to corresponding period last fiscal, but operating profit margin was better due to lower operation expenses.

Torrent Power: The power utility has registered a consolidated profit of Rs 449 crore for the quarter ended March FY23, as against a loss of Rs 488 crore a year ago. Profit in Q4FY23 was boosted by healthy revenue growth, while loss in Q4FY22 was due to one-time loss of Rs 1,300 crore. Revenue from operations grew by 61.3% to Rs 6,038 crore compared to corresponding period last fiscal.

Indian Railway Catering and Tourism Corporation: The company has recorded a massive 30.4% year-on-year growth in standalone profit at Rs 278.8 crore for March FY23 quarter despite weak operating margin, driven by healthy topline, higher other income and exceptional income. Revenue from operations grew by 40% to Rs 965 crore compared to corresponding period last fiscal.

 Source: Moneycontrol, Bloomberg Quint, Investing 

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