Shares in Asia are set to decline after Wall Street fell on renewed concern about the banking sector before a Federal Reserve's decision on Wednesday where policy makers are expected to raise interest rates.
Equity futures in Japan, Australia and Hong Kong all declined, while U.S. contracts edged lower in early Asian trade. The S&P 500 slipped 1.2% Tuesday with the financial sector the second-worst performer after energy.
U.S. regional lenders PacWest Bancorp and Western Alliance Bancorp both slid at least 15% just a day after JPMorgan Chase & Co.'s acquisition of First Republic Bank seemed to bolster confidence in the sector.
Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.42%. Crude prices fell 5% below $76-mark, while Bitcoin was trading above 28,000-level.
At 5:42 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index's performance in India, was down 0.39% at 18,149.5.
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 continued its downtrend against the U.S. dollar 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 fourth straight day and bought equities worth Rs 1,997.35 crore. On the other hand, domestic institutional investors turned sellers, snapping their two-day buying streak and offloaded stocks worth Rs 394.05 crore, the NSE data showed.
Earnings
Tata Steel Q4 FY23 (Consolidated, YoY)
Revenue down 9.18% at Rs 62,961.54 crore (Bloomberg estimate: Rs 60.827.16 crore)
Ebitda down 51.97% at Rs 7,219.2 crore (Bloomberg estimate: Rs 5,711.28 crore)
Ebitda margin at 11.47% vs 21.68% (Bloomberg estimate: 9.4%)
Net profit down 82.53% at Rs 1,704.86 crore (Bloomberg estimate: Rs 330.37 crore)
The company declared a net profit of Rs 3.60 apiece for the fiscal 2023. Shareholders will vote on the same on July 5, 2023, and if approved, the dividend will be paid on and from July 10, 2023.
Ambuja Cements Q4 FY23 (Standalone, YoY)
Revenue up 8.39% at Rs 4,256.31 crore (Bloomberg estimates: Rs 4,184.90 crore)
Ebitda down 0.64% at Rs 788.26 crore (Bloomberg estimates: Rs 827.14 crore)
Ebitda margin at 18.52% vs 20.20% (Bloomberg estimates: 19.8%)
Net profit up 1.62% at Rs 502.4 crore (Bloomberg estimates: Rs 493.48 crore)
The board recommended a final dividend of Rs 2.50 per share for the fiscal 2023.
KEI Industries Q4 FY23 (Consolidated, YoY)
Revenue up 9.06% at Rs 1,954.53 crore (Bloomberg estimates: Rs 1,926.67 crore)
Ebitda up 18.51% at Rs 203.81 crore (Bloomberg estimates: Rs 213.05 crore)
Ebitda margin at 10.43% vs 9.6% (Bloomberg estimates: 11.1%)
Net profit up 19.07% at Rs 138.1 crore (Bloomberg estimates: Rs 138.70 crore)
DCM Shriram Q4 FY23 (Consolidated, YoY)
Revenue down 0.86% at Rs 2,848.65 crore
Ebitda down 45.44% at Rs 346.22 crore
Ebitda margin at 12.15% vs 22.09%
Net profit down 53.47% at Rs 186.67 crore
The company declared a dividend of Rs 3.6 per share for the fiscal 2023. It also announced the appointment of Aditya Sharma as Deputy Managing Director of the company, with effect from July 2, 2023.
Astec Lifesciences Q4FY23 YoY
Sales down 53% at Rs 127 crore vs Rs 272 crore
EBIDTA Margin at 4.3% vs vs 24%
Loss of Rs 5 crore vs PAT of Rs 43 crore
Results
Petronet LNG, Adani Wilmar, Titan Company, KEC International, Havells India, Tata Chemicals, SIS, ABB India, Solar Industries, KPR Mill, Godrej Properties, Sona BLW Precision Forgings, Jyothy Labs, Anupam Rasayan, Aavas Financiers, Bajaj Consumer Care, MRF, Reliance Power, PNB Gilts, Cholamandalam Investment & Finance, Sula Vineyards, Foseco India, R Systems International, ISMT, Vishnu Chemicals.
Stocks To Watch
Mahindra & Mahindra Financial Services: April Monthly Business Updates (YoY)
Overall disbursement increased 39% to Rs 3,775 crore.
Collection efficiency improved to 92%, against 90% a year ago.
Stage-3 and Stage-2 assets have remained range-bound compared with March.
The NBFC has a liquidity chest of around three months' requirement.
Vedanta/Hindustan Zinc: Promoter Vedanta had encumbered 8.05 crore shares of subsidiary Hindustan Zinc on April 28, representing 1.91% of the total share capital of the latter, for a loan to raise long-term working capital.
Indostar Capital Finance: The company will open its two-day offer for sale on May 3, where promoters Everstone Capital Partners II LLC and Indostar Capital will offload more than 1.93 crore shares, representing 14.21% stake of the company.
Ahluwalia Contracts: The company received an order worth Rs 2,450 crore from Rail Land Development Authority for redevelopment of Chhatrapati Shivaji Maharaj Terminus at Mumbai.
Infosys: The IT bellwether has collaborated with software provider SolarWinds to help the latter advance to a new SaaS model.
Indian Bank: The bank reduced treasury bills linked lending rates across tenors in the range of 5-25 basis points, effecting May 3, 2023. The bank has kept marginal cost of funds based lending rates unchanged across tenors.
Bharti Airtel: The Indian telecom major, along with Dialog Axiata Plc and Axiata Group Berhad, has signed a binding term sheet to combine operations of Bharti Airtel Lanka, the company's wholly owned subsidiary with Dialog. The deal will see Bharti Airtel acquire a stake in Dialog, representing the fair value of Airtel Lanka.
Mukand: The company completed the sale and transfer of 25.71 lakh shares, or 5.51% of the overall shareholding, of Mukand Sumi Special Steel, its joint venture with Bajaj Group, to Jamnalal Sons. The company had sold the stake at Rs 574 apiece for a consideration of Rs 147.58 crore.
Thomas Cook (India): Desert Adventures Tourism, a wholly owned subsidiary of the company, has signed a memorandum of understanding with Yusuf bin Ahmed Kanoo Company to develop a destination management company in the Kingdom of Saudi Arabia.
Grasim Industries: Operations had to be stopped at the company's VSF manufacturing unit due to a fire in Harihar, Karnataka. Production is expected to be resumed at the facility in three to four weeks' time, as per BSE filing.
Sterling & Wilson Renewable Energy: India Ratings and Research has downgraded the company's long-term issuer rating to ‘IND BBB+' from ‘IND A+' and placed it on rating watch with negative implications.
Godrej Consumer Products: During its meeting scheduled on May 10, the board will also consider a proposal to raise up to Rs 5,000 crore via non-convertible debentures.
Axiscades Technologies: During its meeting on May 6, the board of the company will consider a proposal to raise Rs 210 crore via non-convertible debentures to refinance existing debt.
Trading Tweaks
Price Band Revised From 10% To 5%: Saksoft
Price Band Revised From 20% To 10%: Axita Cotton
Price Band Revised From 5% To 20%: Allcargo Logistics
Insider Trading
Som Distilleries & Breweries: Promoter Jagdish Kumar Arora bought 10,000 shares on May 2.
Rajnish Wellness: Promoter Rajnish Kumar Singh sold 35 lakh shares on April 24.
Bulk Deals
Coforge: Motilal Oswal bought 4.85 lakh shares (0.79%) at Rs 4,125 apiece, Hulst BV sold 21.5 lakh shares (3.52%) shares at 4,125.44 apiece.
Ugro Capital: DBZ (Cyprus) sold 6.09 lakh shares (0.78%) at Rs 175.14 apiece.
Who's Meeting Whom
Mazagon Dock Shipbuilders: To meet investors and analysts on May 3.
F&O Cues
Nifty May futures ended at 18,204.75, a premium of 93.60 points.
Nifty May futures rose 9.51% and 16,652 shares in Open Interest.
Nifty Bank May futures ended at 43,347, a premium of 130 points.
Nifty Bank May futures rose 0.67% and 616 shares in Open Interest.
Securities added to the ban period: Nil
Securities removed from the ban period: Nil
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