Opening Bell:
Gift Nifty is up by 9.5 points in the early morning trade, indicating a positive opening for Indian stock market
Asian stocks are uncertain after a quiet US session. Some investors doubt the recent rally’s sustainability amid economic uncertainties. While Japan’s equities fell, South Korea and Australia rose. Futures in Hong Kong suggest a neutral opening. The yen weakened slightly due to US reluctance to intervene. Japan’s Finance Minister pledged readiness for necessary measures. Attention shifts to President Xi Jinping’s European tour and evolving trade dynamics. Tensions escalate as the US revokes Huawei licenses from Qualcomm and Intel. Despite challenges, global stocks aim to rebound, hoping for Federal Reserve rate cuts and strong earnings prospects.
On Tuesday, Wall Street investors tempered their gains amid considerations of potential adjustments to Federal Reserve rates. The dollar’s strength further weakened the yen. Global stocks, as gauged by MSCI, rose by 0.30 percent, propelling European shares to fresh record highs. Treasury yields experienced a slight decline, while the dollar strengthened on expectations of robust economic growth in the US and the possibility of rate hikes. The Dow Jones index inched up by 0.08 percent, the S&P 500 posted a gain of 0.13 percent, and the Nasdaq saw a slight dip of 0.1 percent. Concerns emerged over disappointing US jobs data and sluggish GDP growth, prompting speculation about potential rate cuts by the Fed.
Stocks News:
👉Pidilite Industries: The firm disclosed a 6.4% year-on-year increase in net profit to ₹304.3 crore for the fourth quarter ending March 31, 2024. Revenue from operations rose by 7.9% to ₹2,901.9 crore. EBITDA surged by 25.6% to ₹576.9 crore in the fourth quarter of this fiscal year. The board of directors has proposed a dividend of ₹16 per equity share of ₹1 each for the financial year ending March 31, 2024.
👉 Dr. Reddy’s Laboratories: The pharmaceutical giant disclosed a net profit of ₹1,307 crore for Q4FY24, marking a 36% year-on-year surge, largely propelled by robust performance in the US market. Revenue for the quarter escalated to ₹7,083 crore, reflecting a 12% year-on-year expansion. For the entire fiscal year FY24, DRL posted a net profit of ₹5,568.4 crore, representing a 36% upswing, with total revenues reaching ₹27,920 crore, up 14% year-on-year. Anticipating FY25 to deliver double-digit growth, the company projects a 25% Ebitda. The global generics segment witnessed a 13% revenue surge to ₹6,120 crore, driven primarily by increased base business volumes and the introduction of new products.
👉 PB Fintech: The parent entity of Policybazaar announced a net profit of ₹60.19 crore for Q4FY24, a significant turnaround from a loss of ₹9.34 crore in the corresponding period last year. Consolidated revenue for the quarter stood at ₹1,089.57 crore, reflecting a 25.36% increase from the previous year. Total insurance premium for the quarter amounted to ₹5,127 crore, contributing to an Annual Recurring Revenue (ARR) of ₹20,000 crore in insurance premiums. This growth stemmed largely from the expansion in the new health and life insurance segments. The company’s cash position improved by ₹259 crore year-on-year, reaching ₹5,263 crore, propelled by a 39% year-on-year growth in core online revenue, totaling ₹2,375 crore. Adjusted EBITDA surged to ₹324 crore from ₹107 crore, elevating the margin from 6% to 14%.
👉 JSW Energy: The firm disclosed a 29% surge in its consolidated net profit to ₹351 crore in the March quarter, driven chiefly by increased revenues. Total revenue for the quarter climbed by 3% year-on-year to ₹2,879 crore. The board proposed a dividend of ₹2 per equity share of ₹10 (20%) and sanctioned the raising of funds not exceeding ₹10,000 crore in one or more tranches.
👉 FIIs sold shares worth Rs 3,668.84 crore. DIIs pumped in Rs 2,304.50 crore worth of stocks on May 7
Domestic and International Events
- India’s exports of diesel and petrol fell by a fifth year-on-year to $33 billion in 2023-24 due to declining international prices. Diesel generated the largest share of export revenues for Indian refiners, accounting for $22 billion of the $48 billion earned by exports of refined fuels. The war in Ukraine and Western sanctions on Russia caused fuel prices to rise, boosting export earnings for Indian refiners.
- This month, Treasury yields have been regressing to provide some comfort for the stock market, after surging higher at the beginning of the year as expectations for a Federal Reserve interest rate cut dwindled. As per an AP news report, US The 10-year Treasury’s yield decreased from 4.49% late Monday to 4.45%. Falling from 4.83% to 4.82%, the two-year yield tracks the Fed’s projections more closely.
- Gold slid as the US dollar strengthened, driven by hawkish comments from a Federal Reserve official hinting at potential monetary tightening. Despite a 0.4 percent dip earlier, bullion remained steady in early Asia trading. Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, suggested maintaining current interest rates for an extended period with possible future hikes. Both higher rates and a robust dollar typically suppress gold prices, as it’s denominated in US currency and offers no interest. Traders monitored escalating tensions in the Middle East, particularly Israeli control of the Rafah border crossing in Gaza, which could prompt investors to seek gold as a safe-haven asset if tensions escalate further.
- Oil stabilized near its mid-March lows amidst tensions in the Middle East and a somewhat bearish US stockpiles report. Brent hovered around $83 per barrel, just above its 100-day moving average, while West Texas Intermediate remained above $78. Israel’s military entered Rafah amid ongoing but inconclusive truce negotiations with Hamas.
| EMERGING | LATEST | % 1D |
| Hang Seng | 18,479 | (0.5) % |
| Shanghai Composite | 3,148 | 0.2 % |
| DEVELOPED | LATEST | % 1D |
| Dow Jones | 38,884 | 0.1 % |
| DAX | 18,430 | 1.4 % |
| FTSE 100 | 8,314 | 1.2 % |
| Nikkei | 38,835 | 1.6 % |
| Straits Times | 3,300 | (0.1) % |
