Market Close Highlights: Sensex, Nifty end with marginal gains, snap 5-day losing streak;

Benchmark indices Sensex and Nifty closed with mild gains on Friday after five days of losses, driven by buying interest in Tata Steel, Larsen & Toubro, and select bank shares. All eyes are now on the exit polls on Saturday and the GDP data to be released later on Friday.

Top Nifty gainers included Adani Enterprises, Adani Ports, Shriram Finance, Coal India, and Tata Steel, while the losers were Divis Labs, Nestle India, Infosys, Maruti Suzuki, and TCS.

Among sectors, metal, power, and realty indices rose by 1-2%, while pharma and information technology indices fell by 0.5% each. 

Adani group stocks were the best performers while Nestle, TCS, Maruti Suzuki and Divi’s Lab were the laggards. The BSE midcap index ended flat, while the smallcap index gained 0.8%.

The Indian rupee declined on Friday, ending at 83.4625 to the U.S. dollar, from 83.3175 in the previous session. 

 Amara Raja will incur significant capex to become future ready in the Li-ion segment (FCF may take a hit in the medium term). The next leg of valuation re-rating is likely if it is able to tie up with a large firm for technology tie-up in the Li-ion cell space, which could open up the PV Li-ion cell opportunity size of ~45GWh by FY30E, in our view. We continue to monitor new order wins in the lithium-ion space, especially for anchor customers in the 2W space. Auto replacement demand will keep core business revenue and profitability insulated from the cyclicality of the OEM business. 

We expect a revenue CAGR of 9%, an EBITDA CAGR of 13% and a PAT CAGR during FY24-26E, with margin expansion of 80bp. We reiterate ‘accumulate’ with a higher target price of ₹1,341 from ₹1,031 on 20x (from 15x) on June 2026E P/E.

The wired internet industry is betting on growing its user base two-and-a-half times to 100 million in the next five financial years as multiple-device households and an increase in streaming video content drive demand for high-speed fiber connections. It is also banking on attracting many of the 63 million subscribers of D2H television by offering internet protocol television (IPTV) and wired broadband as a bundled service.

The Indian economy likely ended the previous financial year on a strong footing, despite a slower fourth quarter, according to a Mint poll of economists.

According to the median estimate of the 20 economists, India’s Q4 GDP growth slowed to 7.0% from 8.4% the previous quarter mainly due to the slowdown in industrial growth and subdued agricultural activities.

However, strong growth in all quarters, with three of the four printing 8%-plus growth, would result in GDP growth rising to 7.9% in FY24 from 7.0% the previous year, according to estimates by 19 economists.

GDP data for January-March and FY24 are scheduled to be released on 31 May.

Emami Ltd’s shares hit a new 52-week high of ₹646.20 on the NSE in early trade on Friday. The stock is up about 15% since the company declared its March quarter (Q4 FY24) results on Wednesday even though Ebitda came in slightly under some analysts’ expectations.

Praj Industries reported a 4.3% year-on-year increase in net profit to ₹91.9 crore for the fourth quarter, up from ₹88.1 crore in the same quarter the previous fiscal year. Revenue grew by 1.5% to ₹1,018.6 crore compared to ₹1,003.9 crore in the corresponding period of the previous fiscal year.

The Indian economy’s performance moderated in April, with six of the 16 high-frequency indicators tracked by Mint falling below their five-year averages during the month, as against four in the previous month.

Most markets rose on Friday after a week of declines, as below-forecast US economic data revived hopes that the Federal Reserve might cut interest rates this year. 

Tokyo’s Nikkei 225 gained 0.2% to close at 38,119.96, while Hong Kong’s Hang Seng Index also rose 0.2% to 18,266.89. In contrast, Shanghai’s Composite Index fell by 0.2% to close at 3,086.81. London’s FTSE 100 edged up by 0.1% to 8,238.25.

In the past few days, shipbuilding companies have caught the attention of investors and shares of Cochin Shipyard, Garden Reach Shipbuilders and Mazagon Dock Shipbuilders have all jumped. What is the reason? Equitymaster explains

Oil prices fell in Asia on Friday following comments from a Federal Reserve official that reinforced expectations of prolonged higher interest rates. This outlook will be further tested with the release of a highly anticipated U.S. inflation report later in the day. Brent futures fell 3 cents, or 0.04%, to $81.83 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 10 cents, or 0.13%, to $77.81.

As India counts down the days to the 2024 Lok Sabha election results, key brokerage firms are bolstering their defences, preparing for potential market volatility that often accompanies poll outcomes.

Brokerage firms like HDFC Securities, Prabhudas Lilladher, and Nirmal Bang are actively working to safeguard their clients and minimize capital loss risks.

NIFTY: The rollover percentage is at 72%, consistent with the three-month average. The option chain indicates a wide range for the series, with significant activity seen in 23500CE and 22000PE.

BANK NIFTY: Rollovers were relatively low at 68%, indicating an indecisive trend for the index. The option chain highlights aggressive positions at 49000CE and 48000PE.

FIIs: The long-short ratio is at extreme lows of 13% longs and 87% shorts, suggesting a potential turnaround event, possibly leading to a short covering rally.

Sector Performance: Strong rollovers were observed in several sectors including Banking, Metals, Energy, Capital Goods, Pharmaceuticals, Technology, Automotive and Cement.

Muthoot Finance reported a 17% increase in consolidated net profit to ₹1,182 crore for the March quarter. Total income rose to ₹4,179 crore from ₹3,298 crore a year ago. Expenditure during the quarter increased to ₹2,594 crore from ₹1,943 crore.

Fearing a deluge of Chinese electric vehicles (EVs) and their batteries following developments in the US and EU, the Centre is ramping up its vigilance mechanisms to better monitor and prevent dumping of Chinese electric vehicle (EV) batteries as well as EVs themselves, two people aware of the matter said.

The bleeding UK unit of Tata Steel Ltd will start generating operating profit from the latter half of this financial year, managing director T.V. Narendran said, once its blast furnaces are shut and the unit begins processing crude steel imported from India and the Netherlands. 

Ipca Laboratories reported a 22.12 % fall in Q4FY24 consolidated net profit to ₹59.59 crore. Its revenue rose 34.5% YoY to ₹2,033.01 crore.

Welspun Corp reported a 19.7% increase in net profit to ₹287.3 crore. Revenue rose by 9.6% to ₹4,461.2 crore. EBITDA margin contracting to 7.4% from 10.3% year-over-year.

Despite facing setbacks due to increased ocean freight costs and prolonged transit times sparked by the Red Sea crisis, India’s tile exports have shown remarkable resilience. After a decline to 41 million square meters in January 2024 from a peak of 62 msm in August 2023, a tangible turnaround has emerged. 

Shares of PTC Industries, a manufacturer of high-quality, high-precision metal components and materials for various critical and supercritical applications, soared 11% to ₹8,665 per share. The company reported a total income of ₹765.0 million in Q4FY24, up 22.0% year-on-year.

Meanwhile, Sun Pharma has agreed to a preferential offer to acquire a 14.28% stake in the Indian Foundation for Quality Management for ₹12.5 crore. 

Option sellers are baking in an almost 8% price swing in Nifty on Tuesday when results of the 18th Lok Sabha elections will be announced, according to National Stock Exchange data. This shows the extent of cushion the sellers, who are exposed to unlimited risk, are piling on in anticipation of wild swings that day, according to market analysts.

GSM Foils IPO began subscriptions on Friday, May 24, and ended on Tuesday, May 28. GSM Foils IPO price band was set at ₹32 per equity share with a face value of ₹10 each.

The RBI has moved a little more than 100 metric tons of gold from the UK to its domestic vaults, the Times of India newspaper reported on Friday, citing sources.

Apollo Hospitals posted revenues of ₹4,944 crore, a 15% year-on-year rise from ₹4,302.2 crore.

Domestic benchmark equity indices, Senex and Nifty, opened higher on Friday tracking Asian markets. Sensex was up 465 points at 74,350, while the Nifty 50 was up 122 points at 22,610.

Indian stock market is expected to see inflows worth more than $2 billion on Friday in FII passive flows following the adjustments to the MSCI Global Standard Index and MSCI India Smallcap Index.

In its May 2024 review, MSCI added 13 stocks and removed three from the MSCI Global Standard Index. The global index provider has included PB Fintech, Sundaram Finance, NHPC, Phoenix Mills, Indus Towers, Bosch, Jindal Stainless, Solar Industries, Torrent Power, Mankind Pharma, JSW Energy, Canara Bank and Thermax in the MSCI Global Standard Index.

Domestic benchmark equity indices, Senex and Nifty, were higher in the pre-opening session on Friday tracking Gift Nifty and trends in Asian markets.

IDFC First Bank Ltd’s board has approved a proposal to raise ₹3,200 crore through a preferential allotment of shares. The private sector lender will be issuing 39.68 crore shares to marquee investors at a price of ₹80.63 per share, IDFC First Bank said in an exchange filing.

The proposed issue price is at a premium of 4.51% to the last closing of ₹77.15, prior to the board meeting.

More than three-fourths of Wipro Ltd’s public shareholders voted against awarding $4.33 million ( ₹36.15 crore) in cash severance to former chief executive officer Thierry Delaporte, marking a rare episode of investor displeasure against a company perceived to put corporate governance at the heart of its business.

Parekh believes the Nifty 50 index is precariously placed with the significant 50EMA zone lying near 22,380 levels. She said the 50-stock index needs a decisive move past the 22,700 zone for the bias to improve. She noted that high volatility and fluctuations are expected in the coming days ahead of the Lok Sabha Election results.

She recommended three buy or sell stocks for today — JSW Energy, BF Utilities, and Sona Blw Precision Forgings

Besides Sun Pharma, Apollo Hospitals, Muthoot Finance, Jio Financial, and Tube Investments, markets will eye Aarti Industries, Suven Pharma, Welspurn Corp today.

China’s factory activity unexpectedly contracted in May, signaling trouble in the sector Beijing relies on most to drive economic growth.

The official manufacturing purchasing manager index fell to 49.5 in May, according to the National Bureau of Statistics, down from 50.4 in April and below the 50.5 forecast in Bloomberg’s economist survey.

Oil prices fell for a third consecutive day as a key market indicator highlighted oversupply concerns ahead of the OPEC supply meeting on Sunday.

Brent crude for August maintained was near $82 after a 1.9% drop on Thursday, while West Texas Intermediate traded below $78 a barrel, with both benchmarks heading for a monthly decline.

The dollar was recovering against peer currencies on Friday after a downward revision to U.S. GDP for the first quarter suggested potential for rate cuts this year, while investors awaited upcoming inflation data.

The dollar index, which measures the currency against six major peers, consolidated around 104.82 after dipping as low as 104.63 overnight.

Official data released overnight showed the U.S. economy grew at an annualized rate of 1.3% from January through March, down from the advance estimate of 1.6% due to downward revisions to consumer spending.

Asian stocks climbed on Friday, as the latest round of US economic data indicated a slowing momentum, strengthening the argument for the Federal Reserve to start cutting interest rates this year.

Australian and Japanese shares saw gains, while equity futures in Hong Kong pointed to an early rise. 

Wall Street traders sent stocks down on Friday after the latest round of economic data signaled a slowdown in momentum.

The S&P 500 dropped to around 5,230. The Nasdaq 100 fell 1%.