PremiumIndian indices may witnessed a negative start on Monday tracking weak Asian markets. Last week, the indices registered losses overall after shedding around 1.23% on Friday, spooked by US Fed chief Jerome Powell's hawkish statement, and poor results posted by heavyweights Infosys and HDFC Bank. Experts feel the markets are likely to favour bears this week as well and could see high volatility, with rising inflation, high crude prices, and Q4 results being the key drags. On Friday, the Wall Street tumbled over 2.5% as earnings news and Powell's comments soured the mood of the investors. Indices in Asia fell on Monday, tracking Wall Street's fall on worries over higher interest rates. Shares declined in Japan, South Korea, Australia, Hong Kong, and Shanghai in early trade.
Tata Consultancy Services (TCS) is expanding its strategic partnership with SBI Cards and Payments Services Ltd., India’s largest pure-play credit card issuer, to power the latter’s next leg of digital transformation. The new engagement is built on a decade-long partnership.
Rainbow Children's Medicare IPO (Initial Public Offering) is opening for subscription on 27th April 2022. The public issue worth ₹1,595 crore will remain open till 29th April 2022. As the issue opening date is fast approaching grey market has started giving signals in regard to the public issue as well. According to market observers, Rainbow Children's Medicare share price is quoting at a premium of ₹50 in grey market today.
Palm oil prices continued to harden after Indonesia said that that it would halt exports later this month. Palm oil futures for July delivery surged 6% to six-week high of 6,738 ringgit ($1,550) a ton in Kuala Lumpur. Indonesia accounts for almost 60% of global palm oil supply. The ban threatens to further stoke global food inflation, which has been accelerating since the war erupted in Ukraine.
Glenmark Pharmaceuticals Limited (Glenmark) has launched a novel fixed-dose combination (FDC) of a widely used DPP4 inhibitor (Dipeptidyl Peptidase 4 inhibitor), Teneligliptin, with Pioglitazone. This is the only available DPP4 and Glitazone combination brand in India for adults with uncontrolled Type 2 diabetes.
Ashish Kacholia portfolio: Popularly known as 'Big Whale', Ashish Kacholia almost overhauled his portfolio in Q4FY22. In recently-ended March quarter, he has added 5 new stocks and Creative Newtech shares are one of them. This new Ashish Kacholia share is one of the multibagger stocks in 2021 and it has delivered 565 per cent return in last one year. Ashish Kacholia has added this multibagger stock in his portfolio in Q4FY22 buying 2.80 per cent stake in the company.
Shares of Future Group firms on Monday faced heavy drubbing, tanking up to 20 per cent, after Reliance Industries said its ₹24,713-crore deal to acquire Future Group's assets cannot be implemented after secured creditors of the Kishore Biyani-led companies voted against the proposal.
The stock of Future Consumer plummeted 19.91 per cent, Future Supply Chain Solutions slipped 19.96 per cent, Future Lifestyle Fashions 19.89 per cent, Future Enterprises tumbled 9.87 per cent and Future Retail fell 4.96 per cent on the BSE.
Shares of Reliance Industries also dipped 1.75 per cent.
In a regulatory filing, Reliance said Future Group companies comprising Future Retail Limited (FRL) and other listed companies involved in the scheme have intimated the results of the voting on the scheme of arrangement by their shareholders and creditors at their respective meetings.
We maintain ADD rating on the stock and value it at 35x on FY24E earnings, arriving at target price of ₹4,583 /share. The stock trades at PER of 31.3x on FY24E EPS.
We maintain ‘Buy’ rating on ICICI with a revised price target of ₹1043: We value the standalone bank at 3.1x FY23 P/BV for an FY23E/24E RoE profile of 15.8/16.6%. We assign a value of ₹174 per share to the subsidiaries, on SOTP.
Friday’s session started with a gap down opening and intraday bounce got sold into. It poured complete water on Thursday’s attempt of recovery as we witnessed heavyweight sulking once again to conclude the week slightly below the 17200 mark.
It was a complete roller-coaster move for our markets but unfortunately for most part of the week, we remained timid and the way banking space ended the week, it certainly does not bode well for the bulls. Honestly, last week’s movement indicates clueless market and so as we. Although, we remain hopeful till the time 17000 – 16800 remains defended, the overall positioning at the end of the week is not so convincing. So, first couple of sessions of this week remains crucial for markets. Also, one must keep a close tab on how global markets behave. As far as levels are concerned, 17300 – 17450 are to be treated as immediate hurdles; whereas on the flipside, the crucial support remains at 17000 – 16800. Traders are advised not to trade aggressively till the time trend becomes clear and also, unlike the previous weeks, we are not left with any convincing idea in individual stock as well. So one needs to be very selective when it comes to stock centric approach and should ideally follow strict stop losses for momentum bets.
Gold prices were under pressure for the sixth straight day in Indian markets as global rates remained subdued amid firm US dollar and bond yields. On MCX, gold futures were down 0.44% to ₹52,030 per 10 gram while silver futures slumped 1.3% to ₹65,745 per kg. In six days, gold has so far fallen about ₹1,600 per 10 gram.
China stocks fell on Monday, with the CSI300 index set to hit a 23-month low and the Shanghai composite index hovering just above the key 3,000-point level, as China's zero-COVID policy and monetary-easing restraint dents investor sentiment.
The CSI300 index fell 2.2% to 3,925.30 points at the end of the morning session, while the Shanghai Composite Index lost 2.4% to 3,012.18 points.
Both indexes have erased all gains made since Vice Premier Liu He's pledge on March 16 to support the economy and financial markets.
The Hang Seng index dropped 2.6% to 20,103.67 points. The Hong Kong China Enterprises Index lost 2.7% to 6,781.49.
The rupee declined 23 paise to 76.65 against the US dollar in the opening trade on Monday tracking the strength of the dollar in the overseas market.
At the interbank foreign exchange, the rupee opened on a muted note at 76.58 against the American dollar, then fell and touched an early low of 76.65 in initial deals, registering a fall of 23 paise over its previous close.
On Friday, The rupee declined by 25 paise to close at 76.42 against the US currency.
The rupee opened weaker against the US dollar weighed by hawkish comments from Federal Reserve Chair Jerome Powell last week, said Sriram Iyer, Senior Research Analyst at Reliance Securities.
Most Asian and emerging market peers are trading weaker this Monday morning and could weigh on sentiments.
Reliance Retail Ventures Ltd. has called off its plan to acquire businesses of Future Group after some lenders voted against the proposed takeover, the company said.
While unsecured lenders and shareholders of Future Retail Ltd. voted in favor of the takeover by billionaire Mukesh Ambani’s company, the secured creditors opposed the proposal prompting the deal’s cancellation, it said in an exchange filing on Saturday.
Dolly Khanna portfolio: Tinna Rubber and Infrastructure shares are one of the Dolly Khanna shares that have given stellar return to its shareholders. In fact, it is one of the multibagger stocks in 2021 and it is considered one of the multibagger stocks for 2022. This stock has delivered around 85 per cent return to its shareholders in 2022 and in last one year, it has surged from around ₹34 to ₹340 apiece levels, logging near 900 per cent rise in this period.
U.S. equities closed lower for the week with Dow Jones dipped 1.9%, the S&P lost 2.8%, and the tech-heavy Nasdaq declined by 3.8%. The 10-year U.S. Treasury yield remained at 2.9%. Moreover, market sentiments will heavily rely on earnings for the biggest companies namely, Apple, Microsoft, Amazon and Google parent Alphabet, which are due this week. Markets in Europe were digesting Powell’s statement as European Central Bank signalled that it might start hiking euro zone rates as early as July. Furthermore, the prolonged lockdown in Shanghai weighed on market and the Chinese currency.
The Indian indices ended the week with sharp losses on weak global stocks. Continuous FII selling, soaring inflation, uncertainty surrounding Russia-Ukraine and US Fed chair's comment of aggressive rate hike of 50 bps by May dented investors sentiment. The Sensex fell 2% while the Nifty lost 1.7%. Nifty Mid-Cap declined by 1.6% while small cap lost 1.9%. As per IMD, India is likely to witness normal rainfall during the southwest monsoon season this year. On macro front India's WPI stood at 14.55% in Mar’22 compared with 7.9% YoY. The IMF has cut its growth forecast for India for FY23 by 80 basis points to 8.2%, warning that Russia's invasion of Ukraine would hurt consumption.
The market is likely to remain volatile this week as traders roll over positions in the F&O segment from the April series to May series. Next batch of Q4 results and management commentary would be the key event that the market would be looking for in the near future. Trend in global stock markets, the movement of rupee and crude oil prices will dictate trend in the near term. Over the near-term, war issue and sanctions on Russian products would have high negative bearings on global and Indian equities. The markets are likely to see gap down opening, SGX nifty is down 224 points compared to Friday’s spot Nifty closing. Asian markets trading in red with Nikkei is down 1.9%, while Hang Seng is down 2.8%).
Maruti Suzuki India (MSI) will keep consolidating its existing product line-up, including hatchbacks, while bolstering presence in the fast growing SUV segment to power its way back to 50 per cent market share in the domestic passenger vehicle market, as per a senior company official.
The country's largest carmaker, which has seen its market share drop to 43.38 per cent in FY22 from 47.7 per cent in FY21, aims to bring in multiple SUV products with focus on new technologies like hybrid powertrains in order to enhance fuel efficiency, making them comparable or better than diesel-powered models that are currently being sold in the market, especially by its Korean rivals.
With no intention of making a comeback in the diesel segment, MSI is also focusing on increasing its play in the CNG segment to bring in additional volumes.
The company had a market share of 51.22 per cent in 2018-19 and 51.03 per cent in 2019-20.
Gold prices edged lower on Monday near their lowest level in two weeks touched in the previous session as an elevated U.S. dollar continued to pressure demand for greenback-priced bullion.
Asian markets sank Monday on growing concerns of a sharp hike in US interest rates as officials struggle to contain runaway inflation, while oil was hit by expectations Chinese demand will dry up owing to Covid lockdowns.
The losses extended a sell-off across the world last week fuelled by comments from Federal Reserve boss Jerome Powell indicating officials will hike borrowing costs by half a point next month and possibly several times more by year's end.
Investors have been fleeing risk assets as they become worried that the tightening -- to fight inflation at more than 40-year highs -- will knock the pandemic economic recovery off course and dent companies' bottom line.
Oil markets were also sharply lower as China continues to struggle to get a grip on a Covid outbreak that has forced Shanghai -- the country's biggest city -- into lockdown and dealing a blow to demand.
Fuel prices remain steady. Check latest fuel rates here
7 stocks to buy or sell today — 25th April
Cryptocurrency price today 25th April: Most of the cryptocurrencies, except a few, have registered dip in their prices in last 24 hours. Prices of major cryptocurrencies like Bitcoin, Ethereum, Dogecoin, Shiba Inu have nosedived up to near 4.1 per cent in last 24 hours. However, Tether price today is up by near 0.35 per cent in last 24 hours.
Hong Kong stocks opened Monday morning sharply lower, in line with a sell-off across Asia and following a painful end to last week for Wall Street as traders prepare for a big interest rate hike by the Federal Reserve next month.
The Hang Seng Index sank 1.71 percent, or 353.92 points, to 20,284.60.
The Shanghai Composite Index also shed 1.71 percent, or 52.65 points, to 3,034.27, while the Shenzhen Composite Index on China's second exchange lost 1.79 percent, or 34.26 points, to 1,879.85.
We expect HCLT to report a significant revenue, with 13% revenue CAGR over FY22-FY24E, driven by consistent transformation deal wins, increasing focus on ER&D services and rising share of Mode 2 business. We lower our FY23E and FY24E EPS estimates by 10% and 8.7%, due to margin contraction despite deal wins. We retain our BUY recommendation and revise the target price to Rs1,351 (vs. earlier Rs1,480), valuing the stock at an unrevised P/E multiple of 22x FY24E earnings.
Indonesia, the largest producer/exporter of palm oil, has announced a ban of palm oil exports. The ban comes as another blow after the surge in oils due to the Ukraine-Russia war. Given that plamoil is 60% of oil imports and Indonesia being the second largest seller, it will push up domestic prices in coming months.
Palm oil is a key ingredient in major food processing industries, QSRs etc. will impact costs and margins in several consumer companies. FMCG staples majors such as Britannia, Hindustan Unilever, Nestle India and ITC would be amongst the key companies affected directly as a result of the ban and higher prices. We believe the impact would be seen most in categories such as biscuits, noodles, cakes, potato chips, frozen desserts etc. QSR’s like Westlife Development and Burger King can also feel the pinch given edible oil usage to cook/fry their patties/fries.
We believe increase in prices of palmoil will further impact the margins in 1QFY23. We expect margins to bottom out in 1HFY23 given inflation across inputs. We don’t rule out further cut in margins in 1H23. We expect weak to sideways movement for select consumer stocks in the near term.
Palmoil accounts for ~60-65% of India’s edible oil imports
India would be amongst the worst affected countries as it is the world’s largest palm oil importers which depends heavily on Indonesia & Malaysia. India, the world's leading vegetable oil buyer, imported 14-15 MT, of which palm oil stood at 8-9 MT.
Palm oil is the relatively cheaper oil amongst the other edible oils. This move is expected to cause a further price increase in other edible oils such as soyabean oil, sunflower oil etc.
The victory of Emmanuel Macron in France’s presidential election should be a relief for investors worried that a Marine Le Pen win would roil European markets.
The euro, French bonds and shares from the nation’s banks are among the assets that should benefit from Macron’s win for a second term, according to money managers. The euro rose as much as 0.6% against the dollar in early Asia trading, before trimming its advance to about 0.2% as of 7:48 a.m. in Hong Kong.
The risk of a victory by far-right nationalist and euroskeptic Le Pen had been keeping investors on edge, with some predicting European assets could suffer a selloff comparable to the euro crisis or Brexit.
Indonesia's ban on palm oil exports shocked global edible oils markets that already reached record high prices this year, and sparked alarm among major importers of the cooking medium.
Palm oil is the world's most widely used vegetable oil and is used in the manufacture of many products including biscuits, margarine, laundry detergents and chocolate.
Stocks, U.S. futures and commodities sank Monday as investors weigh China’s worsening Covid situtation and the potential for more aggressive interest-rate increases dragging on growth. Treasury yields retreated.
A sell-off deepened in Asia, where MSCI Inc.’s Asia-Pacific gauge fell for the sixth session in seven with declines in Japan, Hong Kong and China. S&P 500 and Nasdaq 100 futures contracts dropped in a sign of further weakness as traders ratchet up expectations for steep policy tightening to tame inflation.
Treasuries paused the rout of the past week that roiled markets trying to gauge how high yields can go. The dollar extended an advance as investors opted for safe havens. Crude fell below $100 a barrel -- after sliding for the third week in four -- as China lockdowns amplify demand fears.
Oil pushed lower at the start of the week on concerns that a spreading Covid-19 outbreak in China will weigh on global demand.
West Texas Intermediate futures dropped more than 2% to trade below $100 a barrel after capping a weekly decline. Shanghai reported record daily deaths over the weekend, while authorities in Beijing warned the virus was silently spreading. The world’s biggest crude importer is heading for the worst oil demand shock this month since the early days of the coronavirus.
China’s travails with Covid-19 add another source of volatility to an oil market that’s been whipsawed by the Russian invasion of Ukraine. The war has fanned inflation, and the European Union is discussing measures to restrict oil imports from Russia. That could tighten the market and drive prices higher.
Tokyo stocks opened lower on Monday after Wall Street shares plunged on anxiety over higher interest rates.
The benchmark Nikkei 225 index was down 1.53 percent, or 414.57 points, at 26,690.69 in early trade, while the broader Topix index was down 1.58 percent, or 30.16 points, at 1,874.99.
"Japanese shares are seen starting with falls, following declines in the US market," where worries over interest-rate hikes dampened investor sentiment, said senior analyst Toshiyuki Kanayama of Monex.
The dollar fetched 128.63 yen in early Asian trade, against 128.51 yen in New York late Friday.
Global stock markets dropped sharply ahead of the weekend as the latest hawkish commentary from the Federal Reserve sent investors fleeing equities.
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