IDFC First surges on robust Q4 results, ONGC up on lower windfall tax

Indian Markets:

• Nifty 50 Movement: Indices extended its winning streak for six sessions, increasing by 82.65 points or 0.46% to 18,147.65.
• Indian benchmark indices showed an upward trend, defying the global trend, supported by strong Q4 earnings and favorable domestic macroeconomic data.
• Sectors such as metals, oil and gas, and IT witnessed high demand, while those in pharma, FMCG, and realty experienced a downturn.
• The surge in demand in metals, oil and gas, and IT sectors indicates a positive sentiment in the Indian market, while the pharma, FMCG, and realty sectors under pressure can be attributed to unfavorable industry developments or company-specific issues.

Global Markets:

• European shares declined while Asian peers advanced on Tuesday, with investors awaiting the commencement of the U.S. Federal Reserves monetary policy meeting.
• According to Eurostat, the Eurozones headline inflation for last month was 7%, after dropping to 6.9% in March. Meanwhile, core inflation, which does not take into account food and energy prices, remained at 5.6% in April, down from 5.7% in March.
• U.S. stocks remained relatively unchanged on Monday, with investors reacting to the weekend auction of First Republic Bank and preparing for the Federal Reserves expected interest rate hike later this week.

Stocks in Spotlight:

• ONGC surged by over 3% following the government’s decision to lower the windfall tax on crude oil to Rs 4,100 per tonne, down from Rs 6,400 per tonne, with immediate effect. Notably, the government has retained the windfall tax on petrol, diesel, and aviation turbine fuel at zero. This move is expected to benefit ONGC and potentially stimulate the oil and gas sector, which has been facing headwinds due to fluctuating global oil prices and the expectations of economic slowdown.
• IndiaMART InterMESH witnessed a 5% rise in its share prices on May 2, buoyed by robust quarterly sales and optimistic guidance. The company has been making strategic investments in various areas, including manpower, product and technology, and sales and servicing. Given the strong earnings report, ICICI Securities has increased its target price for the stock. This positive outlook suggests that the market has confidence in IndiaMART InterMESH’s growth prospects and business strategy
• IDFC First Bank witnessed a surge of over 5% in its stock prices following its announcement of doubling its net profit to Rs 803 crore for the March quarter, which marked its highest ever quarterly profit. The bank’s net interest income also saw a substantial growth of 35% YoY, rising from Rs 2,669 crore in Q4 FY22 to Rs 3,597 crore. Additionally, the bank’s core operating profit grew by 61% YoY to Rs 1,342 crore.

News from the IPO world?

• Coforge to go for US IPO as soon as public market revives
• IPO bound OYO become profitable
• Akums Drugs plans IPO within 3 years

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