Colgate Profit Growth, Siemens Surge Energy Business Demerger, Patanjali Profit Drop Strong Revenue, Apollo Tyres Decline Exceptional Losses

Opening Bell: 

Gift Nifty is up by 57.0 points in the early morning trade, indicating a positive opening for Indian stock market                            

Asia-Pacific markets started the day on a positive note Wednesday, taking cues from Wall Street’s performance despite robust inflation figures. The Nasdaq soared to a fresh all-time high. In April, the producer price index surpassed expectations at 0.5 percent, initially prompting a cautious response from the market. However, optimism prevailed as March’s wholesale prices underwent a downward revision. Notably, South Korea and Hong Kong markets remained closed for a holiday. Investors closely scrutinized Australia’s annual budget, contributing to a 0.44 percent increase in the S&P/ASX 200. Japan’s Nikkei 225 advanced by 0.75 percent, while the broader Topix index gained 0.53 percent.

According to an AFP report, investors shrugged off data revealing higher-than-expected wholesale inflation in April, propelling Wall Street stocks to rise on Tuesday. The Nasdaq achieved a new record high in the first of two highly anticipated US pricing reports. The S&P 500 index surged by 0.5%, or 25.26 points, to 5,246.68, rebounding from its recent dip in late March, where it had fallen by around 0.1%. Similarly, the Dow Jones Industrial Average climbed to 39,558.11, up by 126.60 points or 0.3%.

Stocks News:

👉 Colgate Palmolive (India) reported a net profit of Rs 379.8 crore for the March FY24 quarter, marking a 20.1 percent growth compared to the same period in the previous fiscal year, driven by robust growth in both revenue and operating figures. Revenue from operations surged by 10.3 percent year over year to Rs 1,490 crore. Additionally, the board announced an interim dividend of Rs 26 per share along with a one-time special dividend of Rs 10 per share.

👉 Siemens announced a 70% surge in its net profit for Q4FY24 to ₹803 crore, compared to ₹471 crore reported in the corresponding period the previous year. Revenue from operations also saw a notable increase of 18.4% to ₹5,750 crore from a year ago. Furthermore, the company’s board greenlit the demerger of its energy business into a distinct legal entity, named Siemens Energy India Limited. This new entity is slated for listing on both the BSE and NSE, as stated in a regulatory filing by the company.          

👉 Patanjali Foods, the FMCG firm, disclosed a 22% decrease in standalone net profit at ₹206.32 crore for Q4FY24, down from ₹263.71 crore in the corresponding period of the previous year. Despite this, the company’s revenue from operations increased by 4% to ₹8,221 crore. Notably, the food & FMCG segment of the company attained its highest-ever quarterly revenue of ₹2,704.61 crore in the March quarter, marking a sequential growth of 8.24%.

👉 Apollo Tyres, the tire manufacturing firm, posted a net profit of Rs 354 crore for the fourth quarter of the financial year 2024, marking a decline of 13.7 percent compared to the corresponding period in the previous year. This decline was influenced by an exceptional loss of Rs 36.8 crore (compared to an exceptional gain of Rs 22.6 crore YoY) and increased tax expenses. Additionally, subdued topline growth affected the bottom line, with revenue from operations edging up by 0.2 percent year over year to Rs 6,258 crore for the quarter.

👉 FIIs sold shares worth Rs 4,065.52 crore. DIIs pumped in Rs 3,527.86 crore worth of stocks on May 14

Domestic and International Events

• India’s steady inflation and the threat of rising food prices are likely to delay any interest rate cuts by the central bank. Consumer prices rose 4.83% in April, close to economists’ expectations. The Reserve Bank of India has maintained its 6.5% benchmark interest rate for over a year, with no cuts expected until the final quarter of the year. Food prices, a significant component of consumer prices, continue to rise, impacting the overall inflation rate. Erratic weather and the upcoming elections are additional factors complicating the central bank’s decision-making process.

• Any unchecked explosion of retail trading could trigger challenges for investor sentiment and markets, India’s finance minister said at a financial markets event organised by the Bombay Stock Exchange on Tuesday. “Any unchecked explosion in retail trading of futures and options can create future challenges, not just for the markets, but for investor sentiment and household finances,” Nirmala Sitharaman said in her first public comments on the issue. Regulators should proactively consult with the market for further tweaking of regulations, she added.

• Gold stabilized around $2,356 per ounce after a 1 percent rise on Tuesday, with investors eyeing US inflation data that could influence Fed decisions. Despite recent narrow trading, gold remains up approximately 14 percent this year, supported by central bank purchases, geopolitical tensions, and Chinese consumer demand, despite Fed policy shift delays.

• Oil prices rose as US inventories decreased, drawing attention to the upcoming International Energy Agency report on market balances. Brent neared $83 after a 1.2 percent decrease, while West Texas Intermediate exceeded $78. The American Petroleum Institute reported a 3.1-million-barrel decline in national crude stocks last week, including a reduction in Cushing, Oklahoma.

EMERGING	LATEST	% 1D
Hang Seng	19,074	(0.2) %
Shanghai Composite	3,146	(0.1) %

DEVELOPED	LATEST	% 1D
Dow Jones	39,558	0.3 %
DAX	18,716	(0.1) %
FTSE 100	8,428	0.2 %
Nikkei	38,356	0.5 %
Straits Times	3,313	0.3 %