Weekly Market View – 2nd April, 2022

Indian Market Outlook:

The Key benchmark indices rose over 3 percent during the week led by rally in Bank stocks and fall of crude oil prices. Nifty logged the second best week in nearly seven months ended the week with 3.02 percent higher at 17670.45 points while the Sensex ended with 3.34 percent higher at 59277 points. The rally was also supported by Reliance Industries. Broader market performed mixed during the week with BSE Midcap index ended 2.75 percent higher, while the BSE Small cap index rose 3.23 percent. Bank Nifty rose more than 4.91%. Foreign Institutional Investors were the net buyers during the week; bought equities worth Rs. 5590 crores while the DIIs were the net buyers of Rs. 5052 crores.  After the release of oil from its massive reserve by the United States, crude prices have retreated this week. This is seen as a positive for India, the world’s third-largest importer and consumer of oil. On Friday, Automobile companies reported March auto sales above the estimates. Maruti Suzuki India reported a 2% rise in total wholesales to 1,70,395 units in March and clocked its highest-ever exports of 2.38 lakh units in FY22. Tata Motors also registered 30% YoY growth in total domestic sales. Going forward, Russia- Ukraine war, movement of crude and RBI monetary policy meeting would be closely watched next week. On Macro front India’s Nikkei Markit Manufacturing PMI and Nikkei Services PMI (Mar) would be announced on 4^th and 6^th April, 2022 respectively. Also, RBI Interest Rate decision is scheduled on 8^th April, 2022.

Source: Investing, NDTV, BSE, CNBCTV18, Moneycontrol,

Economic News:

• Goods and services tax (GST) collections touched an all-time high of over ₹1.42 lakh crore in March, boosted by improved economic activity as the Omicron wave waned as well as anti-evasion measures and rate rationalisation. Separately released data showed the Indian Railways achieved the highest ever loading in a month during March at 139.25 million tonnes (MT), providing more evidence of economic recovery. Data released on Thursday showed core sector growth at a four-month high of 5.8% in February.

• Merchandise exports touched a record $40.38 billion, while imports rose to $59.07 billion, a government source said on Friday, referring to provisional trade data. Monthly trade deficit in March was estimated at $18.69 billion, according to Reuters calculations. Merchandise exports for the financial year 2021/22 ending in March touched $417.81 billion while imports rose to $610.22 billion, the source said.

 

Industry News:

• Manufacturers of air conditioners and refrigerators have increased production to full capacity from 60-70% till two weeks ago amid a surge in demand triggered by the heatwave in several parts of the country and pent-up demand of the last two summers, which were impacted by the Covid-19-induced lockdowns. Companies such as Voltas, Haier, Godrej Appliances and Lloyd said sales of cooling appliances grew up to 15% in March as compared to 2019, surpassing industry expectations and necessitating an increase in production.

• Hero MotoCorp Ltd. sold 3,58,254 units in March. While Hero MotoCorp’s sales fell 22% over the same period last year, but it rose 25.62% over the preceding month. Sales of TVS Motor Company Ltd. fell 4.55% over the year-ago period to 3,07,954 units in March 2022, according to an exchange filing on Friday. Tata Motors Ltd. rose 30% over the year-ago period to 86,718 units in March 2022. In the three months ended March 31, the company sold 28% more compared to the fourth quarter of fiscal 2021. Mahindra and Mahindra Ltd.’s auto segment posted an overall sales of 54,643 units in March, a rise of 35% over the same period last year even as the company continue to closely monitor the chip shortage related parts crunch. Total sales of Ashok Leyland Ltd. rose 17% over the year-ago period to 20,123 units.

 Company News:

• Hindustan Aeronautics Limited said on Friday it has recorded highest ever revenue of over Rs 24,000 crore (provisional and unaudited) for the financial year ended on March 31, 2022, registering a six per cent growth over the previous fiscal. The corresponding figure for the previous year stood at Rs 22,755 crore. “Despite the challenges of the second wave of Covid-19 during the first quarter of the year and the consequent production loss, the Company could meet the targeted revenue growth with improved performance during the balance period of the year,” said HAL CMD, R Madhavan.

• Multiplex operator PVR on Friday said it has discontinued operations of 23 screens across nine properties after the expiry of their lease with Cineline India. After this, PVR’s screen count as on date has come down to 848 at 172 properties in 73 cities, the company said in a regulatory filing.

• HDFC Ltd on Friday said it has posted a 12 per cent growth in individual loans at Rs 8,367 crore for the fourth quarter ended March 31. The amount of individual loans disbursed was at Rs 7,503 crore in the corresponding quarter of the previous year, HDFC said in a regulatory filing. The individual loan business continued to see strong momentum during the quarter ended March 31, 2022, it said.

• Tata Power on Friday said it has received the National Company Law Tribunal’s (NCLT) approval to merge its wholly-owned subsidiary Coastal Gujarat Power (CGPL) with itself. The merger of CGPL, which operates 4,000 MW lossmaking ultra mega power project in Gujarat, will provide the parent a tax break of Rs 10,000 crore over several years.

Global News

• S. added close to half a million jobs in March and the unemployment rate fell by more than expected, highlighting a robust labor market that’s likely to support aggressive Federal Reserve tightening in the coming months. Nonfarm payrolls increased 431,000 last month after an upwardly revised 750,000 gain in February, a Labor Department report showed Friday. The unemployment rate fell to 3.6%.

• China’s home sales slump deepened in March, keeping pressure on cash-strapped developers even as policy makers vow to support the property market. The 100 biggest companies in China’s debt-ridden property industry saw a 53% drop in sales from a year earlier, according to preliminary data from China Real Estate Information Corp. That’s the steepest decline this year.

 

(Source:Bloomberg Quint, Economic Times, BusinessToday,Business Standard, Financial Express,Investing, Moneycontrol, livemint)

Source: BSE, Elite wealth Research

 

Major Economy Indicators

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