Goldman Sachs bullish on Adani Ports and SEZ, Nifty realty up 2.8 percent on RBI rate hike pause

Indian Markets:

• Nifty 50 Movement: The Nifty 50 index opened lower and hit the days low of 17,502.85 in morning trade.
• The equity market continued its upward trend on Thursday, marking the fifth consecutive trading session of gains.
• This boost in the market came after a surprise decision from the Reserve Bank of India (RBI) to maintain its key policy rate, which prompted a surge in interest rate sensitive stocks such as auto, realty, and financial shares. 
• In contrast, stocks in the FMCG, IT, and consumer durables sectors experienced a decline in demand. RBIs Monetary Policy Committee (MPC) at its meeting today (6 April 2023) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50%.

Global Markets:

• European markets advanced while Asian stocks ended mixed on Thursday as Wall Street digested the latest ADP private payrolls report, which showed slowing job growth in March.
• Chinas service sector activity continued to expand in March, according to the latest Caixin services purchasing managers index that rose to 57.8. The reading marks the fourth month of acceleration and above the 50-point mark that separates growth from contraction. It also reached the highest reading since November 2020. 
• US stocks ended mixed on Wednesday as investors look towards OPEC+ production cuts and inflation impact of the same with uncertainty still looming for the global economy.
• Meanwhile, private company hiring in the US fell sharply in March and was well below expectations, according to a report from payroll processing firm ADP. Company payrolls rose by just 145,000 for the month, down from an upwardly revised 261,000 in February.

Stocks in Spotlight:

• In a positive development for Adani Ports and Special Economic Zone, the company’s shares witnessed a nearly two percent increase in trading on the afternoon of April 6, following Goldman Sachs’ decision to maintain its “buy” rating on the stock. The bank’s decision was based on the news that volumes for Adani Ports had recovered in March 2023, and that the full-year volume for FY23 is expected to reach 339 MT, exceeding Goldman Sachs’ previous estimate of 337 MT.
• Dabur has revealed that its India business is poised to achieve mid-single digit revenue growth in the fourth quarter of FY23, while its international business is expected to deliver high single-digit growth in constant currency. As a result, Dabur’s consolidated revenue is projected to register mid-single digit growth for the quarter.
• The Reserve Bank of India’s decision to maintain its key policy rate, after six consecutive hikes since May 2022, is expected to provide some respite to home loan borrowers and boost the growth momentum in the housing sector. However, the RBI Governor cautioned that it was only a temporary pause and not a permanent shift in policy. The move comes as home loan EMIs have increased by 15-17 percent since April 2022 and home prices have risen by 4-12 percent during the same period. The decision strikes a balance between containing inflationary pressures and supporting economic growth.

News from the IPO world?

• Avalon Technologies IPO fully subscribed on last day
• Zaggle Prepaid IPO gets SEBI go ahead for IPO
• Healthvista India gets SEBI nod to float IPO

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