Bernstein initiates coverage on Delhivery, Avalon Technologies muted debut

Indian Markets:

• Nifty 50 Movement: The Nifty 50 index closed below the 17,700 level despite reaching a high of 17,766.60 in early trading.
• Pharma and healthcare stocks performed well, but consumer durables, financial services, and FMCG stocks declined.
• Investors are closely monitoring corporate results and any comments from Fed Reserve officials regarding interest rate hikes.
• Stronger-than-expected Chinese economic data failed to boost investor sentiment, and Bank of International Settlements head Agustín Carstens warned that interest rates may need to remain high for longer due to high inflation and the growing risk of instability in the global economy.

Global Markets:

• The Dow Jones futures were up 60 points, indicating a positive opening in the US stocks today.
• European shares advanced while Asian stocks ended mixed on Tuesday as fears of rising U.S. interest rates largely offset optimism over stronger-than-expected Chinese economic growth.
• Chinas economy grew more than expected in the first quarter of 2023. Chinas gross domestic product rose by 4.5% in the first quarter of 2023, the National Bureau of Statistics said Tuesday. The economy expanded 2.9% in the fourth quarter of 2022.
• The Reserve Bank of Australia warned of further tightening in monetary policy could come if needed, minutes released from its April meeting showed on Tuesday. The RBA kept its policy rate unchanged earlier this month.
• US stocks rose on Monday as traders combed through the latest batch of corporate earnings results, searching for clues on the health of corporate America.

Stocks in Spotlight:

• Bernstein, a foreign research and broking firm, has initiated coverage on Delhivery with a market-perform rating, indicating a positive outlook for the company’s long-term growth prospects. The firm has set a target price of Rs 360 for the stock, which represents an upside potential of over 11% from Monday’s closing price.
• HCL Technologies‘ stock rebounded by over 2% after two consecutive days of losses. The stock had hit a one-year low of Rs 1,016.25 on April 17, when Nifty IT also hit a near-two-year low at 26,182.85 points due to weak earnings of Infosys during the March quarter.
• Avalon Technologies, an electronic manufacturing services company, disappointed investors on its debut as the stock closed with nearly a 9% loss on April 18. The poor performance may be attributed to the subdued market conditions and muted response from investors, with the exception of QIBs, during the company’s IPO. Avalon Technologies had raised Rs 865 crore via its maiden public issue, which included fresh issuance of shares worth Rs 320 crore.

News from the IPO world?

• EbixCash receives SEBI clearance to float IPO
• Mankind Pharma IPO to open on April 25
• Zepto hires new CFO ahead of IPO

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