Stock Market LIVE Updates : Gift Nifty indicates Indian markets may open higher; markets trade steady

Alembic Pharma announced to exchanges that it received the establishment inspection report (EIR) from the US FDA for its Panelav oncology plant. This completes the set of EIRs for all its USFDA facilities.

Looking back at the previous week, the Rupee displayed a notable strength as it appreciated from the levels of 83.53 to 83.40, wrapping up the week on a higher note. This surge in the Rupee can be attributed to consistently positive data releases from India, contrasting with weaker outcomes from the US. Despite a slight dip from the exceptional 16-year high of 59.1 recorded in March, the manufacturing sector exhibited resilience in April, with the Purchasing Managers’ Index (PMI) standing at 58.8. This underscores India’s ascent on the global stage, particularly as other major economies grapple with recessionary pressures.

On the flows side, SBI plans to raise $2 billion through Offshore bonds, while JSW Energy is set to raise $0.60 billion. These flows could be positive and RBI may allow Rupee to sync with its fundaments.

Despite recent hurdles encountered by the Rupee, the overall outlook remains optimistic. Supported by strong fundamentals and bolstered by foreign investments and RBI reserves, the Rupee is poised for potential growth in the short term, with projections indicating a rise to levels between 83.20 and 83.00. Looking further ahead, medium-term expectations suggest stability around the 82.80 to 82.50 range.

Nifty is poised for a bullish start this Monday, buoyed by weaker-than-expected US jobs data, a dip in WTI oil prices, and a surge in Wall Street fueled by Apple’s stock repurchase plan. Market sentiment remains optimistic, supported by hopes of political continuity amidst ongoing general elections. However, concerns loom over inconsistent Q4 corporate earnings. Volatility is expected post-market open, with a focus on key earnings reports. Kotak Mahindra Bank’s robust performance stands out, while preferred trades include Nifty and Bank Nifty with specified targets and stop-loss levels. Stocks like Coal India, NTPC and Tata Motorsare viewed favourably on corrective declines, while IRCTC emerges as a top pick for its momentum potential.

–Angel One client base rises 3.4% MoM in April to 22.99 mln

–Gross Client acquisition falls 10.2% MoM

–Average daily orders fall 7.8% MoM

The multi-billion-dollar settlement entered by the third-generation members of the Godrej Family will not attract any capital gains tax, even though shares of over half a dozen companies owned by the family are changing hands, people with direct knowledge of the matter said.

The family has chosen to use the ‘family arrangement’ route under the tax law, which is outside the purview of the Income Tax Act that specifies the applicability of capital gains tax.

The Godrej restructuring fulfils the conditions prescribed under the family arrangement route required to avail of the tax benefits, the people said. The 127-year-old family conglomerate announced last week that it will split into two groups, with each of the family factions overseeing specific businesses. (Read more)

Lupin, Marico, Arvind, CarTrade Tech, CG Power and Industrial Solutions, DCM Shriram, Godrej Consumer Products, Gujarat Gas, Happiest Minds Technologies, Indian Bank, Route Mobile, and Suven Life Sciences will release March FY24 quarter earnings on May 6.

Motilal Oswal reiterate buy rating on DMart and increased its target price by 15 percent to Rs 5310 a share. Motilal Oswal notes that DMART’s revenue grew at a 20% CAGR from FY20-24, driven by an 18% increase in store count.

Despite subdued same-store sales growth (SSSG), attributed to larger stores and weak discretionary demand, DMART maintained its EBITDA margin at pre-COVID levels through robust cost-control measures. The recovery in revenue per square foot and narrowing gap between revenue per store and revenue per square foot indicate improved performance of large-format stores, signaling positive prospects.

Despite a 30% stock rally since last year’s upgrade, Motilal Oswal maintains its optimism based on expectations of improving SSSG and continued cost efficiency. Recovery in higher-margin categories remains a focus for margin enhancement, with management hinting at improved performance in the latest quarter. Maintaining estimates for FY25/FY26, Motilal Oswal forecasts a revenue/PAT CAGR of 23%/35% over FY24-26, supported by growth in footprints and revenue productivity, with an assigned 47x EV/EBITDA multiple (75x PE) on an FY26E basis.

JP Morgan upgraded Kotak Mahindra Bank (KMB) to overweight from neutral, citing supportive valuations post recent RBI actions and senior management departure. The target price has been raised to Rs 2070 per share, marking a 34 percent increase from the last close.

JP Morgan stated that the impact after RBI action on F25/26 growth should be minimal. In 4Q, the bank demonstrated strong core operating metrics, with headline profit adjusted for one-offs surpassing JPMe by 8%. Core PPOP growth stood at 12% y/y, accompanied by significant fee growth.

Kotak Mahindra Bank estimated the total impact of the RBI ban at a minimal Rs300-500 crore at the PBT level (2% of F26 PBT at the top end). During the analyst call, KMB expressed confidence in sustaining growth faster than the system, aiming for 1.5-2x nominal GDP, with F25 advances growth at -20%. Asset quality remains strong, and despite NIMs decreasing throughout the year, ROAs have remained steady. The new CEO prioritized strengthening core technology and resilience. Notably, KMB’s tech spending at 10% of opex compares favorably with large peers, although the absolute numbers may be lower due to scale.

Trends on GIFT Nifty indicate a positive start for the broader index in India, with a gain of 107 points or 0.47 percent. The Nifty futures were trading around 22,687.50 level.

-Carlyle-backed Indegene IPO opens for subscription; closes on May 8

-Fresh issue of 1.68 crore shares aggregating to `760 crore

-OFS of 2.39 crore shares worth `1,082 crore

-Price band fixed at `430-452 per share

-Objective: Debt repayment, capex needs, general corporate purposes

-1 lot equals 33 equity shares

-Tentative listing date fixed as May 13

Gold rose after conflicting signals from the US, where optimism about the economy’s soft landing is growing amid Federal Reserve efforts to combat inflation. The metal initially dropped 0.4% on Monday but rebounded, reversing its recent weekly losses. Investors are considering weaker-than-expected US job numbers, suggesting a gradual economic slowdown and easing concerns about high inflation and slow growth. Chicago Fed President Austan Goolsbee suggested that if reports like April’s continue, it could support the case for monetary easing this year, which traditionally affects gold negatively due to its lack of interest payments.

Oil prices rose in early trading after Israel closed the Kerem Shalom humanitarian crossing into Gaza on Sunday, responding to a rocket barrage fired by Hamas. This incident poses a risk to ongoing hostage and cease-fire negotiations. Additionally, Saudi Arabia increased the price of crude sold to Asia in an effort to tighten the oil market. Traders are also keeping an eye on central bank meetings this week, particularly the Reserve Bank of Australia, expected to adopt a hawkish stance after last month’s stronger-than-expected inflation data. Furthermore, upcoming Chinese activity data and inflation readings in key emerging markets are anticipated.

Brent crude futures for July rose 22 cents to $83.18 a barrel. U.S. West Texas Intermediate crude for June was up 25 cents to $78.36 per barrel.

-Kotak Bank: RBI ban to impact FY25 profit by Rs 300-450 cr

-Titan Q4 profit, margins miss estimate

-Britannia Q4 volume growth at 6%; higher end of expectations

-M&M Financial Q4 profit drops 10% YoY

-DMart Q4 profit & revenue see 20% Jump YoY

-Tata Tech Q4 profit falls; revenue drops marginally

-Lupin, Marico, GCPL, India Bank Q4 earnings today

-Paytm President and COO Bhavesh Gupta resigns