Avenue Supermarts’ Strong Performance, Kotak Mahindra Bank’s Profit Surge, Titan’s Growth Amid Margin Challenges, Tata Technologies’ Revenue Struggles

Opening Bell: 

Gift Nifty is up by 102.5 points in the early morning trade, indicating a positive opening for Indian stock market              

Asian markets saw gains, mirroring the positive momentum on Wall Street following upbeat US jobs data. Japan and South Korea’s markets remained closed for a public holiday, while Hong Kong’s Hang Seng index futures pointed to an upward opening. In contrast, Australia’s S&P/ASX 200 rose by 0.46%.

Friday witnessed a robust surge in the US stock market, fueled by a weaker-than-anticipated employment report that strengthened the argument for Federal Reserve rate cuts. The Dow Jones Industrial Average soared by 450.02 points, or 1.18%, closing at 38,675.68, while the S&P 500 surged by 63.59 points, or 1.26%, to reach 5,127.79. Additionally, the Nasdaq Composite concluded 315.37 points, or 1.99%, higher at 16,156.33.

Stocks News:

👉 Titan Company: The jewelry and watch manufacturer posted a standalone net profit of Rs 786 crore for the quarter ending March FY24, marking a 7.1 percent increase over the corresponding period of the previous fiscal year, impacted by a weakened operating margin. Quarterly revenue from operations reached Rs 11,257 crore, a 16 percent rise compared to the same period in the previous fiscal year. The company declared a dividend of Rs 11 per share for FY24 and re-appointed C. K. Venkataraman as Managing Director effective from October 1 this year.

👉 Avenue Supermarts: The company, operating large-format retail stores under the brand DMart, reported a 22% year-on-year increase in net profits for Q4FY24, with the profit after tax reaching ₹563.1 crore. Revenue from operations grew by 20% to ₹12,726 crore.

👉 Kotak Mahindra Bank: The bank’s profit after tax for FY24 rose by 26% year-on-year to ₹13,782 crore. PAT for Q4FY24 stood at ₹4,133 crore, marking an 18% year-on-year increase. The bank’s Net Interest Income (NII) for FY24 increased by 21% year-on-year to ₹25,993 crore. The Net Interest Margin (NIM) for Q4FY24 was reported at 5.28%. The bank’s board proposed a dividend of ₹2 per share.

👉 Tata Technologies: The global provider of product engineering and digital services recorded a consolidated net profit of Rs 157.2 crore for the March FY24 quarter, declining by 27.4 percent compared to the same period in the previous fiscal year despite a healthy operating margin, affected by weak revenue. Revenue from operations decreased by 7.2 percent year-on-year to Rs 1,301 crore for the quarter, while EBITDA during the same period declined by 1.1 percent to Rs 240 crore, with margins expanding by 110 basis points to 18.4 percent. The company announced a total dividend of Rs 10.05 per share, including a special dividend of Rs 1.65 per share.

👉 Foreign institutional investors (FIIs) net sold Rs 2,391.98 crore worth shares, while domestic institutional investors (DIIs) pumped in Rs 690.52 crore on May 3, provisional data from the NSE showed.

Domestic and International Events

• India’s metallurgical coal imports from Russia have increased by three-fold in the last three years, reaching 15.1 million tonnes in 2023-24, mainly due to lower prices. This increase is attributed to lower prices, which are cheaper for domestic steel players. Australia, a major supplier of met coal to India, has seen a decline in its exports to India. The rise in imports is attributed to “cost-benefit” reasons, as imports from Russia are costing less to domestic steel players.

• India’s foreign exchange reserves saw a decline of $2.41 billion to $637.92 billion as of April 26, according to the latest data from the Reserve Bank of India (RBI). This follows a previous decrease of $2.83 billion to $640.33 billion for the week ending on April 19, 2024. The RBI’s Weekly Statistical Supplement revealed that Foreign Currency Assets (FCAs) dropped by $1.16 billion to $559.7 billion, while gold reserves decreased by $1.28 billion to $55.53 billion.

• The US dollar stabilized following a nearly 5% decline against the yen last week, while Treasury yields retreated after a softer-than-expected US payrolls report. The dollar index, gauging the US currency against six peers, stood at 105.12, rebounding from a three-week low of 104.52 reached on Friday. Benchmark US 10-year Treasury yields decreased by 6.1 basis points to 4.51%, whereas the 2-year note yield dropped by 6.5 basis points to 4.8119% from 4.877%. The 10-year yield recorded a nearly 17 basis points decline over the week, marking its most substantial weekly drop since mid-December, while the 2-year yield was down approximately 19 basis points, representing its most significant weekly decline since early January.

• Crude oil prices steadied after the biggest weekly drop since February as Saudi Arabia hiked selling prices for grades to Asia for the third month in a row. Brent crude rose 0.01% to $82.97 a barrel after a 7.3% drop last week, while West Texas Intermediate was flat at $78.11.

EMERGING	LATEST	% 1D
Hang Seng	18,476	1.5 %
Shanghai Composite	3,105	(0.3) %

DEVELOPED	LATEST	% 1D
Dow Jones	38,676	1.2 %
DAX	18,002	0.6 %
FTSE 100	8,213	0.5 %
Nikkei	38,236	(0.1) %
Straits Times	3,293	(0.1) %