PremiumIndian indices on Monday continued their winning run as both the Sensex and Nifty advanced close to 2%, tracking supportive trends from Asian peers. Investors benefited from a rally in tech stocks as indices gained from a positive global mood and easing of restrictions in China. Shares rose in Japan, South Korea, Australia, Shanghai, and Hong Kong.
Indian indices on Monday closed higher for the third straight session, tracking positive global trends, led by strong support in market heavyweights Titan, Infosys, M&M, Reliance, and TCS.
The Sensex gained 1041.08 points, or 1.9%, to close at 55,925.74, while Nifty50 added 308.95 points to end at 16,661.40. Sectorally, all the sectors ended in the green, with realty, IT, and auto stocks recording big gains.
On the 30-stock index, the most gains were made by M&M, Titan, Infosys, L&T, and HCL, among others, while Kotak Bank, Sun Pharma, and DRL were among the biggest losers.
On Nifty50, M&M, Infosys, Titan, and Adani Ports made the most gains, while Kotak Bank, JSW Steel, and Sun Pharma were among the biggest laggards.
After a two-year hiatus due to the Covid-19 pandemic, the world’s top leaders met at the Swiss mountain village ofDavosthis week to tackle global issues and find solutions to the world's most immediate challenges.
Bharat Petroleum Corporation Limited (BPCL) and Bounce Infinity have joined hands to fortify the Bounce Infinity’s extensive battery swapping infrastructure. Under this partnership, Bounce Infinity will set-up battery swapping stations across Bharat Petroleum fuel stations in a phased manner. The company aims to set up 3,000 stations across top 10 cities.
World shares rose on Monday and the dollar was pinned near five-week lows on hopes of an eventual slowdown in U.S. monetary tightening following sharp interest rate hikes in June and July.
Helping to mellow the mood was news that Shanghai authorities would cancel many restrictions on businesses resuming work from Wednesday, easing a city-wide lockdown that began two months ago.
The MSCI's benchmark for global stocks rose 0.6% to its highest in more than four weeks by 0745 GMT, driven by a positive open in Europe and strong gains in Asia overnight. The index is up 0.4% so far this month.
The pan-European STOXX 600 equity benchmark gained 0.7%, while Japan's Nikkei added 2.2% and Chinese blue chips firmed 0.7%.
Bitcoin posted its biggest gain in two weeks, climbing close to $31,000 as China’s easing of Covid curbs stoked investor enthusiasm for riskier assets.
The largest cryptocurrency advanced as much as 5.8% to $30,858.53 on Monday morning in London. Ether and smaller tokens like Avalanche, which got pummeled last week even as Bitcoin held relatively steady, also gained. Stocks advanced in Asia and Europe after the S&P 500 rallied on Friday.
We model Sumitomo to gain market shares from smaller players in Indian agrochemicals. We also believe outsourcing of products to global group companies offers huge value creation opportunity to Sumitomo India in medium-long term. It will benefit from its parent’s R&D support and distribution expansion in India. We model it to report earnings CAGR of 11.1% over FY22-24E and maintain ADD rating on the stock with a revised DCF-based target price of Rs465 (implied 44x FY24E EPS; earlier TP: Rs440).
We believe near to medium term growth would remain under pressure due to pricing pressures in the US, regulatory issues, slow recovery in the API business and inflated costs. However, recent correction (~44% in last 6 months) in the price makes valuations reasonable. Hence, we upgrade the stock to ADD from Hold with a revised TP of Rs447/share (earlier: Rs550/share)
Markets rose Monday as investors rediscovered some verve after the release of healthy US data and as China eases some of its strict Covid curbs in Shanghai and Beijing, lifting hopes for the world's number two economy.
The gains extended a positive end to last week for global equities with some commentators saying there was a growing hope that the months-long sell-off may have run its course.
Wall Street provided a strong lead and snapped a series of weekly losses, with Friday's rally supported by data showing an easing of the key personal consumption expenditures (PCE) price index.
Markets have been pummelled this year as soaring prices -- caused by the Ukraine war, supply chain snags and China's lockdowns among other things -- forced central banks to hike interest rates and warn of more to come.
The original Terra Chain has been rebranded as Terra Classic and Terra has been relaunched as Terra 2.0 as last week developers behind failed stablecoin TerraUSD have voted to abandon the token in favor of creating a new blockchain and digital asset weeks after the cryptocurrency collapsed.
China stocks rose on Monday as the capital Beijing and financial hub of Shanghai eased stringent COVID-19 control measures, with consumer and travel stocks leading the gains on expectation of returning to normal life.
The blue-chip CSI300 index ended 0.7% higher at 4,029.02, while the Shanghai Composite Index gained 0.6% to 3,149.06 points.
Unichem Laboratories said its board has recommended a dividend of ₹4 (200%) per equity share of ₹2/- each, for FY22, subject to approval of shareholders at the ensuing Annual General Meeting (AGM). Shares of Unichem Labs rallied more than 17% to ₹278 apiece on the BSE in Monday's trading session.
We upgrade our rating to BUY from HOLD as the stock has corrected more than 30% since 18th April, 2022 and provides 53% return from the current level. We maintain our earnings estimates and Target Price of Rs2,000, valuing the stock at an unrevised P/E of 40x FY24E earnings.
Given the healthy business recovery in Q4FY22 and cautiously optimistic demand outlook going ahead, we maintain a BUY on the stock with an unchanged TP of ₹2,200/share and a target multiple of 43x (40-45x 5yr average PE band and discount to some of its listed retail peers) as we expect Bata’s valuations to catch up going ahead.
Axis Mutual Fund (MF) said it continues to work and corporate with regulatory authorities after reports suggested that certain actions have been conducted by the regulatory authorities concerning the AMC, and related issues.
Asian stocks tracked Wall Street higher on Monday while the dollar was pinned near five-week lows as investors wagered on an eventual slowdown in U.S. monetary tightening, albeit after sharp hikes in June and July.
Helping to mellow the mood was news that Shanghai authorities will cancel many conditions for businesses to resume work from Wednesday, easing a city-wide lockdown that began two months ago.
The Memorial Day holiday in the United States made only a limited impression on month-end demand and MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1.9% to a three-week high.
Shares of Mahindra & Mahindra (M&M) rose to record high of ₹1,006 apiece on the BSE in Monday's early deals after the automaker reported a five-fold jump in standalone profit at ₹1,192 crore for its fourth quarter that ended March 31, 2022.
Gold prices rose on Monday as the U.S. dollar weakened, but recent gains are unlikely to stave off another monthly fall for greenback-priced bullion.
Spot gold was up 0.4% at $1,860.77 per ounce, as of 0451 GMT. U.S. gold futures also climbed 0.4% to $1,865.00.
"With the three-day holiday in the United States, which means lower liquidity than usual, and a lack of top-tier data until Wednesday, we may find that gold will remain nailed to its tight range around $1,850 unless a new catalyst arrives," City Index senior market analyst Matt Simpson said.
Industrial commodities in China mostly rose as the number of Covid-19 cases fell and the government began to loosen its restrictions that were choking the economy.
The virus is now deemed under control in Beijing, while Shanghai’s outbreak appears to be heading that way as officials outlined their plan to revive the city after a two-month lockdown. Measures include allowing manufacturing to restart, accelerating property approvals and making car purchases cheaper, all metals-intensive areas that had been hit hard by the virus.
The dollar was under pressure in Asia on Monday and was headed for its first monthly drop in five months as investors have scaled back bets that rising U.S. rates will spur further gains and as fears of a global recession have receded a little. The week ahead is full of data that could provide clues on the outlook for global growth, U.S. interest rates and the dollar with Chinese Purchasing Managers' Index figures, U.S. jobs numbers and growth data in resource bellwether Australia.
U.S. consumer spending rose more than expected in April as households boosted purchases of goods and services, and the increase in inflation slowed, which could underpin economic growth in the second quarter amid rising fears of a recession.
The economy's near-term prospects were also brightened by other data from the Commerce Department on Friday showing the goods trade deficit narrowed sharply last month. A record trade deficit caused a contraction in output in the first quarter.
Ethos shares made a discounted debut at ₹825 per share levels on NSE and at ₹830 apiece on BSE, around 6 per cent lower from its upper price band of ₹878 per shares. However, weakness in the stock further continued as Ethos share price slipped below ₹800 levels making intraday low of ₹792 per share on BSE. According to stock market experts, Ethos shares were priced at higher valuations and weakness in the stock may continue for few more sessions. They said that the stock may go down up to ₹640 to ₹650 levels. They advised allottees to exit on major bounce back while they strictly advised positional investors to avoid any fresh position in the counter.
We expect the company to report Revenue/PAT CAGR of 22%/21% over FY21‐24E factoring the 1) change in product mix, 2) price hike, 3) margin expansion and 4) recovery in export markets. The stock is trading at 31.0x/25.5x FY23E/24E. We maintain our BUY rating with a TP of Rs1,195, valuing the stock at PE of 30x FY24E, given strong export visibility. We slightly tweak our FY23E/FY24E EPS estimates by ‐ 1%/3% respectively to account for margin pressures going ahead.
PSP Projects Ltd (PSPPL) 4Q performance was healthy with revenues and margins coming above our estimates. With Surat Diamond Bourse being on the verge of completion and expected to be done in 1QFY23; the company would be eligible to focus on single large ticket size project worth Rs20‐25bn. On the back of strong awarding momentum and robust order book of Rs43bn, the management gave guidance of 20‐25% YoY revenue growth along with EBITDA in the range of 11‐12% in FY23.
With strong order book, timely project execution and prudent management pedigree, we expect PSPPL to post a revenue / EBITDA CAGR of 15%/14% over FY22/FY24E.
At the CMP, the stock trades at an EV of 6.7x/ 5.1x FY23E/ FY24E EBITDA. Looking at the strong guidance we have revised our target from Rs675 to Rs716 and continue to maintain ‘BUY’ rating on the stock valuing the EPC business at 12x FY24E EPS, implying an upside potential of 38% from the current levels.
Tata Motors Ltd said on Monday its electric mobility unit has signed an agreement to potentially acquire Ford Motor's Sanand vehicle manufacturing facility in Gujarat.
The U.S. automaker last year stopped production in India, where it had a less than 2% share of the passenger vehicle market and had struggled to turn a profit for more than two decades.
The company said earlier this month it was seeking options for its two factories in the country while shelving plans to make electric vehicles in India for exports.
The memorandum of understanding between Tata Passenger Electric Mobility Ltd, Ford India Private Ltd and the government of Gujarat includes the land, assets and all eligible employees working at the Sanand facility.
We maintain our REDUCE rating on ONGC, with a TP of ₹150/sh, as we believe that inspite of current high crude oil price environment, in the longer run, alleviation of geopolitical tension, restoration of demand-supply balance and focus on sustainable energy would likely put a lid on crude oil rally. Our TP of ₹150/sh comprises of a) ₹114/sh for the stand-alone domestic business, valued on DCF basis (Terminal value : ₹0; WACC: 13%) , b) ₹7.3/sh for OVL on EV/EBITDA of 4x FY24e and c) ₹28/sh for investment in listed equities, valued at 20% hold-co discount to 3M average market price
We maintain our BUY rating on GAIL, with a revised Mar’23 TP of ₹230/sh (from ₹250/sh), as we make minor adjustments to our earning estimates. Our SOTP based TP is a sum of a) stand-alone business valued at ₹154/sh on DCF basis , b) Listed investment valued at ₹39/sh and unlisted investments at ₹35/sh.
Multibagger stock: Investing in a stock is like investing in a business. According to American billionaire Charlie Munger, money is not in buy or sell of stocks, but in wait. Means, one should hold a stock as long as one can after investing. Brewery stock Radico Khaitan is a glaring example of how 'buy, hold and forget' strategy pays to its shareholders. Radico Khaitan share price has surged from ₹7.60 apiece levels to ₹826 per share levels in last 19 years, delivering around 10,700 per cent return to its shareholders.
The rupee appreciated 12 paise to 77.46 against the US dollar in opening trade on Monday, supported by a fall in the dollar index and positive domestic equities.
At the interbank foreign exchange, the rupee opened at 77.53 against the American dollar, then gained further ground to quote 77.46, registering a rise of 12 paise from the last close.
On Friday, the rupee had settled at 77.58 against the US dollar.
Global oil benchmark Brent crude futures surged 0.54 per cent to USD 120.08 per barrel.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.11 per cent lower at 101.55.
Shares of Ethos made a tepid stock market debut on Monday with the stock listing at ₹825 on the NSE, a discount of more than 6% from its IPO issue price of ₹878 per share. On the BSE, Ethos shares started trading at ₹830 apiece, and fell further to ₹807 within minutes post listing.
The prices of petrol and diesel remained steady on Monday since Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by 8 per litre, and 6 rupees per litre on diesel.
Equity benchmarks extended their rally on Monday, with the Sensex jumping over 915 points in early trade, aided by heavy buying in index majors Reliance Industries and Infosys amid a firm trend in Asian equities.
The 30-share BSE Sensex rallied 915.36 points to 55,800.02 in early trade. The broader NSE Nifty jumped 262.75 points to 16,615.20.
From the Sensex pack, Infosys, Titan, HCL Technologies, Larsen & Toubro, Reliance Industries, UltraTech Cement, Wipro, TCS and HDFC were the major gainers in early trade.
In contrast, Dr Reddy's was the only laggard from the 30-share pack.
Elsewhere in Asia, markets in Seoul, Shanghai, Tokyo and Hong Kong were trading in the green.
Ethos IPO listing date today: Shares of Ethos Limited are going to make debut on the Dalal Street today. As per the information available on the BSE website, the equity shares of Ethos Limited shall be listed and admitted to dealings on the BSE and NSE in the list of 'B' group of securities on 30th May 2022. Ethos shares will be listed in a special pre-open session (SPOS) at 10:00 AM today. According to stock market experts, Ethos shares may have a tepid but positive listing and Ethos share price may open around ₹900 to ₹930 apiece on Indian bourses.
Rakesh Jhunjhunwala portfolio: Following weakness in stock market, shares of Star Health and Insurance and Metro Brands have retrace4d up to 7 per cent in last one month. In last one month, Metro Brands share price has corrected from around ₹562 to ₹523, losing around 7 per cent whereas Star Health share price has retraced from around ₹700 to ₹663, logging near 5.50 per cent in this period. Due to this steep fall in these two Rakesh Jhunjhunwala stocks, Big Bull has lost near ₹540 crore in these two stocks in last one month.
Shares of Nykaa surged nearly 3% to ₹1,390 apiece on the BSE in Monday's opening deals even as FSN E-Commerce, which operates under the Nykaa brand, reported a decline of about 57% in its consolidated profit to ₹7.57 crore for the fourth quarter ended March 2022, mainly account of new investments.
Gold and silver prices edged higher in Indian markets today but still remained in a narrow range. On MCX, gold futures rose 0.12% to ₹50,974 per 10 gram while silver edged up 0.2% to ₹62,247 per kg. In global markets, gold rates were choppy today as a weakening US dollar supported the precious metal but gains were capped amid an improvement in global risk sentiment that buoyed equities. Spot gold was up 0.2% at $1,856 while spot silver rose 0.1% to $22.13.
