View on market: Stay Cautious, be with quality business:
Stocks and U.S. equity futures declined Thursday as investors digested the minutes of the Federal Reserve’s March meeting. the U.S. central bank is considering half-point rate increases and plans to pare its balance sheet by more than $1 trillion a year. Equities in Japan, South Korea and Australia fell. Technology shares dragged as Nasdaq 100 logged its worst two-day loss in nearly a month. The Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50, fell 0.63% to 17,754.50 points as of 7:00 a.m. Commodity markets were volatile to disruptions sparked by Russia’s war in Ukraine and efforts to curb raw-material costs. Russia slipped closer to a technical default after foreign banks declined to process about $650 million of dollar payments on its bonds, forcing it to offer rubles instead. Oil pared a sharp slump after International Energy Agency’s decision to deploy 60 million barrels from emergency stockpiles. Bitcoin. Brent crude hovered around $102 per barrel. Elsewhere bitcoin slipped to $43,200 levels.
Economic Calendar:
- INR: Interest rate Decision on 8th April 2022.
- INR: RBI MPC Minutes on 7th April 2022.
- USD: Jobless Claims 7th April, 2022.
- USD: WASDE Report on 8th April, 2022.
Brokerage Radar:
JEFFERIES ON MACROTECH: Buy, TP Rs 1475 Lodha’s pre-sales surged 37% YoY to a record Rs34.6bn, helping co meet its Rs90bn pre-sales target for year A 36% rise in customer collections led to a 6% QoQ decline in India biz. net-debt, UK’s investments also did well with a further Rs17bn in sales during 4Q, helping part pre-payment of the associated bond. Strong housing demand & new project acquisitions are likely to help drive double-digit sales growth for Lodha.
MORGAN STANLEY ON TATA MOTORS: OW, TP Rs 561 Unveiled its 2nd-generation EV architecture, Curvv Architecture supports a higher range & is likely to strengthen co’s offerings in terms of range, performance & technology.
MORGAN STANLEY ON RELIANCE:OW, TP Rs 2926 RIL’s multi year earnings & NAV upgrade cycle is fully in play currently While stk has outperformed local indices YTD, it should get heightened investor appreciation into current qtry earnings Remains top pick.
CREDIT SUISSE ON COAL INDIA: O-P, TP Rs 225 Healthy power demand growth & elevated coal prices bode well for medium-term outlook While a higher focus on power plants implies a non-optimal mix, expect CIL’s profitability to improve, driven by vol growth & improvement in blended realizations
International Markets:
U.S. & Europe:
| Particulars | 6th Apr | Chg | Chg(%) |
| Nasdaq | 13,888.82 | -315.35 | -2.22 |
| Dow | 34496.61 | -144.67 | -0.42 |
| FTSE | 7,587.70 | -26.02 | -0.34 |
| CAC | 6,498.83 | -146.68 | -2.21 |
| DAX | 14,151.69 | -272.67 | -1.89 |
| Dow Fut.* | 34398.4 | -98.1 | -0.28 |
Asian markets:
| Particulars | 7th Apr | Chg. | Chg(%) |
| SGX Nifty | 17,777.50 | -90 | -0.5 |
| Nikkei | 26,803.34 | -546.96 | -2 |
| Straits Times | 3,401.50 | -21.45 | -0.63 |
| Hang Seng | 22,060.04 | -20.48 | -0.09 |
| Shanghai | 3,272.73 | -10.7 | -0.33 |
ADR Watch:
| Particulars | 6th Apr | Chg. | Chg.(%) |
| Dr Reddy | 56.31 | -0.36 | -0.64 |
| HDFC Bank | 62.89 | -1.86 | -2.87 |
| ICICI Bank | 19.48 | 0.07 | 0.36 |
| Infosys | 23.97 | -0.41 | -1.68 |
| Tata Motor | 29.65 | 0.14 | 0.47 |
| Wipro | 7.7 | -0.16 | -2.04 |
Commodities & Currency:
| Particulars | Current Price | Chg(%) |
| USD/INR | 75.76 | 0.44 |
| Brent | 103.31 | 2.22 |
| Gold | 1924.75 | 0.09 |
| Silver | 24.503 | 0.18 |
FIIs & DII:
| Particulars | 6th Apr | 5th Apr |
| FIIs | -2279.97 | 1152.21 |
| DIIs | 622.92 | 1675.01 |
News Update
Zee Entertainment: The company’s shareholder Invesco will sell 7.8% stake in the company. Once bookbuild is complete Invesco will continue to own in at least 11% stake of the company.
IDFC: The bank signed definitive agreement to sell IDFC asset management company and IDFC AMC trustee to consortium comprising Bandhan Financial Holdings, GIC and Chrys Capital for a consideration of Rs 4500 crore. It also declared interim dividend of Rs 1 per equity share, 10% of paid-up share capital.
Godrej Consumer: The company reported sales growth in high single digit, driven entirely by pricing. Unprecedented commodity inflation and subsequent price hikes impacted volumes. Within categories, personal care sustained its double-digit growth trajectory, primarily led by pricing. On the profitability front, the company is expected to deliver lower year-on-year EBITDA margins due to input inflation and weak performance in Indonesia.
Titan: The company’s overall revenue drops 3%. Revenue of its jewellery business dropped 4% YoY. Watches & Wearable business saw revenue growth of 12%. Eyecare, a relatively small business, recorded 5% growth over the previous year. Increase in sales from departmental stores and e-commerce led to a 21% YoY growth in fragrances and 67% growth in fashion.
Tata Steel: The company has executed share purchase agreement to acquire entire equity stake of Steel Authority of India held in S&T Mining Company, a Joint Venture between SAIL and the company. On completion of the acquisition, S&T Mining will become a wholly owned subsidiary of the company.
DCB Bank: The bank reappointed Murali M. Natrajan as the Managing Director & CEO, for further period of two years effective April 29, 2022.
Motherson Sumi: The company has completed acquisition of 55% stake in CIM Tools.
Bank of Baroda: The bank executed share purchase agreement to sell entire equity stake of 14% in India SME Asset Reconstruction Company.