Asian stocks are poised for a weak start Thursday on the back of declines in the U.S. after Federal Reserve Chair Jerome Powell lowered expectations of rate cuts anytime soon.
Even as banking turmoil led to mounting pressure from lawmakers to pause, the Federal Open Market Committee delivered a quarter point hike taking the federal fund rates in the range of 5% to 5.25%, the highest since 2007.
Equity futures for Australia and Japan declined, while those for Hong Kong rose. U.S.-listed shares of Chinese companies dropped in a sign of souring risk sentiment. Contracts for U.S. stocks fell in early Asia trading after the S&P 500 closed near session lows.
In a typical choppy Fed day of trading, U.S. equities rallied after the Fed raised rates by a quarter-point as economists forecast and hinted at a possible pause in the most aggressive hiking cycle since the 1980s. However, equities turned lower later as Powell said there won't be any rate cuts if the inflation rate remains too high.
Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.34%. Crude prices fell to $71-mark, while Bitcoin rose above 29,000-level.
At 5:45 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index's performance in India, was down 0.25% at 18,115.5
Domestic benchmark indices—BSE Sensex and NSE Nifty 50—started the week strong by closing 0.4% and 0.46% higher, respectively, carried on the back of a rally in metals, IT and energy stocks.
Indian rupee snapped its three-day decline against the U.S. dollar to close in green for a third day as strong domestic equities failed to spur investor interest ahead of the U.S. Fed policy announcement.
Foreign investors were net buyers for the fifth day and bought equities worth Rs 1,338 crore. On the other hand, domestic institutional investors were sellers for the second straight day and sold stocks worth Rs 583.99 crore, the NSE data showed.
Earnings
Titan Q4 FY23 (Consolidated figures, YoY)
Revenue up 33% at Rs 10,360 crore (Bloomberg estimate: Rs 9,322.18 crore)
Ebitda up 37% at Rs 1,089 crore (Bloomberg estimate: Rs 1072.42 crore)
Ebitda margin at 10.5% Vs 10.2% (Bloomberg estimate: 11.5%)
Net profit up 40% at Rs 736 crore (Bloomberg estimate: Rs 746.70 crore)
The board has recommended a dividend of Rs 10 per share, to be paid on or after the seventh day from the conclusion of the 39th annual general meeting.
Tata Chemicals Q4 FY23 (Consolidated, YoY)
Revenue up 26.6% at Rs 4,407 crore (Bloomberg estimate: Rs 4,319.80 crore)
Ebitda up 46.88% at Rs 965 crore (Bloomberg estimate: Rs 979.13 crore)
Ebitda margin at 21.9% vs 18.87% (Bloomberg estimate: 22.7%)
Net profit up 53.56% at Rs 711 crore (Bloomberg estimate: Rs 487.33 crore)
The board approved a dividend of Rs 17.50 a piece for the fiscal 2023.
Petronet LNG Q4 FY23 (Consolidated, YoY)
Revenue up 24.31% at Rs 13,873.93 crore (Bloomberg estimate: Rs 1,20,919 crore)
Ebitda down 19.35% at Rs 942.53 crore (Bloomberg estimate: Rs 14,201.40 crore)
Ebitda margin at 6.79% vs 10.47% (Bloomberg estimate: 11.7%)
Net profit down 21.77% at Rs 618.8 crore (Bloomberg estimate: Rs 8,475.10 crore)
The board has recommended a final dividend of Rs 3 a share for the fiscal 2023. The board has also approved the appointment of Milind Torawane as additional director, with effect from April 10, 2023.
Sona BLW Precision Forgings Q4 FY23 (Consolidated, YoY)
Revenue up 43% at Rs 742.59 crore vs Rs 517.9 crore (Bloomberg estimate: Rs 714.2 crore)
Ebitda up 94% at Rs 200 crore vs Rs 103.2 crore (Bloomberg estimate: Rs 191.3 crore)
Ebitda margin at 26.9% vs 19.9% (Bloomberg estimate: 26.8%)
Net profit up 14% at Rs 119.8 crore vs Rs 104.7 crore(Bloomberg estimate: Rs 106.9 crore)
The board recommended a final dividend of Rs 1.53 for the financial year 2022-23.
"Achieved highest quarterly revenue, EBITDA and net profit in Q4 FY23," says Vivek Vikram Singh, MD & Group CEO.
ABB India Q1 CY23 (Consolidated, YoY)
Revenue up 22.5% at Rs 2,411 crore (Bloomberg estimate: Rs 2,229.95 crore)
Ebitda up 52% at Rs 285.31 crore (Bloomberg estimate: Rs 215.3 crore)
Ebitda margin 11.8% Vs 9.5% (Bloomberg estimate: 9.65%)
Net profit fell 34% at Rs 244.89 crore (Bloomberg estimate: Rs 183.9 crore)
Bajaj Consumer Care Q4 FY23 (Consolidated, YoY)
Revenue up 14.29% at Rs 249.42 crore (Bloomberg estimate: Rs 233.26 crore)
Ebitda up 20.11% at Rs 41.69 crore (Bloomberg estimate: Rs 35.72 crore)
Ebitda margin at 16.72% vs 15.91% (Bloomberg estimate: 15.3%)
Net profit up 12.95% at Rs 40.46 crore (Bloomberg estimate: Rs 36.50 crore)
The company announced a final dividend of Rs 5 per share for the financial year 2022-23.
Reliance Power Q4 FY23 (Consolidated, YoY)
Revenues down 6.28% at Rs 1,729.84 crore
Ebitda loss of Rs 159.14 crore vs Ebitda profit of Rs 185.15 crore
Net profit of Rs 321.79 crore vs net loss of Rs 657.89 crore
Results
Tata Power Company, Adani Enterprises, Hero MotoCorp, TVS Motor Company, Ceat, Dabur India, Blue Star, United Breweries, Firstsource Solutions, Sundram Fasteners, Mindspace Business Parks REIT, 360 ONE WAM, Aptus Value Housing Finance India, Housing Development Finance Corporation, IDFC, Choice International, AGI Greenpac, Bombay Dyeing and Manufacturing Co., Filatex India, Jammu and Kashmir Bank, Responsive Industries, RattanIndia Power.
Stocks To Watch
Central Bank of India: The state-run bank clarified that it has a total exposure of Rs 1,987 crore to Go Air as of March 31, 2023, representing 0.91% of total advances.
SJVN: The company bagged an order of Rs 1,200 crore from Gujarat Urja Vikas Nigam to develop a 200 MW grid-connected solar power project in Khavda Solar Park, Gujarat.
GR Infraprojects: The company has been selected as the lowest bidder for the construction of four-lane highway along the NH-731A in Kausambi, Uttar Pradesh. The bid project cost is Rs 737.17 crore.
AstraZeneca Pharma India: The company has received approval from Central Drugs Standard Control Organisation to import breast cancer drug Trastuzumab deruxtecan, or Enhertu, for sale and distribution in India.
TVS Motor Company: The company declared a goodwill benefit scheme for customers who paid over and above the threshold limit fixed by FAME scheme. The overall cost impact of the scheme is expected to be under Rs 20 crore.
Dabur India: Dabur Nepal, a subsidiary of the company, received the approval of Investment Board of Nepal for an additional investment of 969 crore Nepalese rupees (approximately Rs 608 crore) . The capital will enable Dabur Nepal to fund its capacity expansion, product diversification, factory upgradation, etc. over next four to five years.
HG Infra Engineering: The company will sell its entire shareholding in four wholly owned subsidiaries—Gurgaon Sohna Highway, HG Rewari Ateli Highway, HG Ateli Narnaul Highway, and HG Rewari Bypass—to Highway Infrastructure Trust for an equity value of Rs 531 crore.
Seamec: The company completed the acquisition of 100% stake in Aarey Organic Industries for a consideration of Rs 17.40 crore.
Bosch: Markus Bamberger has resigned as the chairman and director of the company, with effect from close of business hours on Aug. 1, 2023, as part of succession planning.
Karur Vysya Bank: The lender appointed Jana Sivaramakrishna as its chief risk officer, with effect from May 3, 2023, following the resignation of S Kalyanram from the position.
Hero MotoCorp: The company said it will expand its e-mobility brand Vida to 100 cities across India by the end of 2023.The company reduced prices for its electric scooters Vida V1 Plus and Vida Vi Pro to Rs 1.2 lakh and Rs 1.4 lakh, respectively (ex-showroom), including portable charger and FAME II subsidy.
Bulk Deals
Kolte Patil Developers: Societe Generale bought 18.45 lakh shares (2.42%) and PGIM India Mutual Fund sold 18.65 lakh shares (2.45%) at Rs 245 apiece.
Som Distilleries & Breweries: Jagdish Kumar Arora bought 82,250 shares (0.10%), Gurmukh Das Saluja sold 18,803 shares (0.02%) and Santosh Bhadoriya sold 53,445 shares (0.06) at Rs 23.85 apiece.
Power Mech Projects: Banyantree Growth Capital II sold 1.54 lakh shares (1.03%) at Rs 2,600.94 apiece.
Suryoday Small Finance Bank: Jhelum Investment Fund sold 5.41 lakh shares (0.51%) at Rs 102.09 apiece.
Who's Meeting Whom
AU Small Finance Bank: To meet investors and analysts on May 5.
Century Textiles and Industries: To meet investors and analysts on May 4.
Ujjivan Small Finance Bank: To meet investors and analysts on May 11.
Tata Consumer Products: To meet investors and analysts on May 4.
Trading Tweaks
Ex-Date Final Dividend: Castrol India
Record Date Final Dividend: Castrol India
Ex-Date Interim Dividend: Crisil
Record Date Interim Dividend: Crisil
Ex-Date Income Distribution RITES: Embassy Office Parks REIT
Insider Trading
Rajnish Wellness: Promoter Rajnish Kumar bought 3.52 lakh shares on May 2.
F&O Cues
Nifty May futures ended at 18,147.30, a discount of 65.85 points.
Nifty May futures fell 0.14% and 278 shares in Open Interest.
Nifty Bank May futures ended at 43,320 a premium of 47.25 points.
Nifty Bank May futures rose 0.29% and 272 shares in Open Interest.
Securities added to the ban period: Manappuram Finance
Securities removed from the ban period: Nil
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