L&T Q4 results, Shipping corporation surges, Rate sensitive sectors see buying interest

Indian Markets:

• The underlying nervousness among investors regarding the upcoming US inflation data, which will heavily influence the tone of the next Federal Open Market Committee (FOMC) meeting, was palpable on Dalal Street.
• During the trading session, there was notable buying interest in private banks, automobile, and realty sectors, all of which are sensitive to changes in interest rates. Conversely, public sector banks experienced continued selling pressure, which has been intensifying over the past few days.
• On the global front, investors exercised caution as they awaited the release of US inflation data and a crucial meeting between US political leaders to address fiscal concerns.
• Additionally, oil prices witnessed a slight decline due to industry data revealing an unexpected surge in US crude stock, which suggests a potential weakness in demand.

Global Markets:

• Shares in both Europe and Asia declined on Wednesday, following a fall in the US stock market overnight. Investors are growing increasingly cautious ahead of a critical inflation report and concerns over the US debt ceiling.
• The market is closely monitoring the Labor Departments CPI report for clues on whether inflation is continuing to ease.
• Despite negotiations between US President Joe Biden and congressional Republicans, little progress has been made to avert a possible US default, and talks on spending are ongoing.

Stocks in Spotlight:

• Aarti Industries witnessed a decline of approximately 9 percent in its share value, just one day after the release of its Q4 earnings report. The results shed light on a challenging demand environment in crucial markets and the discretionary segment for the specialty chemical company. In terms of year-on-year (YoY) performance, Aarti Industries’ profit experienced a modest growth of 2 percent, reaching Rs 149 crore, while its revenue exhibited a more significant increase of 15 percent, amounting to Rs 1,656 crore. 
• Shipping Corporation of India witnessed a significant surge of approximately 6 percent in its share price following an impressive performance in the quarter ending in March. The company reported a remarkable net profit of Rs 376.9 crore for the quarter, showcasing substantial growth compared to the Rs 148 crore recorded in the same period last year. Additionally, the company’s revenue experienced a healthy year-on-year (YoY) increase of 8.3 percent, reaching Rs 1,418.1 crore, while its EBITDA soared by an impressive 42 percent to Rs 464.5 crore.
• Larsen and Toubro (L&T) announced its consolidated net profit for the quarter ending March 2023, reaching an impressive Rs 3,987 crore. This represents a notable growth of 10 percent compared to the same quarter of the previous year, when the net profit stood at Rs 3,621 crore. The company also reported a robust revenue from operations amounting to Rs 58,335 crore for the quarter, reflecting a substantial increase of 10 percent from Rs 52,851 crore. In an exchange filing, L&T revealed that international revenues accounted for 39 percent of the total revenues during this period. 

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