Market Live: Sensex Soars 1100 Pts, Nifty Above 16,150; Metals, Banks Rally

Robust performance in challenging time; Maintain Buy: Axis Securities on JK Lakshmi Cement

We roll over our estimate to FY24 and retain our BUY rating on the stock and value the company at 7x FY24E EV/EBITDA to arrive at a target price of ₹620/share,implying an upside of 48% from the CMP.

Ashok Leyland shares in fast lane on Q4 margin beat

Ashok Leyland Ltd’s shares rose more than 5% in opening deals Friday on the National Stock Exchange, as investors cheer the company’s better than expected March quarter (Q4FY22) results.

ITC share price near highest in 3 years. What’s moving the stock?

Riding on strong quarterly numbers fueled by robust growth in cigarette volumes, ITC shares have climbed to near 3 years highest levels. ITC share price today opened upside and went on to hit its new 52-week high of ₹282.35 apiece levels on NSE. As per the stock market experts, ITC shares are in bull trend and it may go up to around ₹320 levels in short term.

Sharp operating miss; recovery remains elusive: Prabhudas Lilladher on Lupin

Rating: HOLD | CMP: Rs635 | TP: Rs600

We cut our FY23E EPS est. by 46% and FY24E EPS by 35% to factor in lower margins. Margins in base business continues to disappoint and recovery remains elusive. Lupin’s (LPC) FY22 profitability has been impacted, on account of low GMs and high overheads along with subdued US sales. We believe LPC’s recovery in US sales will be gradual and may hinge on timely niche launches. Further margins will improve only from HFY23 with likely savings and niche launches, which may see delay. We downgrade stock to ‘Hold’ from Accumulate with TP of Rs600/share, 20x FY24E EPS.

Strong US show; margin recovery is key: Prabhudas Lilladher on DRL

Rating: BUY | CMP: Rs3,929 | TP: Rs4,900

Dr Reddy’s (DRRD) Q4FY22 US and India revenues were healthy. We continue to expect steady earnings momentum and pick up in US generic business along with cost optimization. Also, strong pipeline/new launches will drive steady growth in India and RoW markets. We expect 13% EPS CAGR over FY22-24E (ex of Revlimid) and broadly maintain our estimates at ‘Buy’ rating with revised TP of Rs4,900/share. At CMP, DRRD is trading at 17.5x P/E on FY24E adjusted for Revlimid. We assign 22x (23x earlier) FY24E EPS plus Rs250/share for Revlimid NPV. Delay in key ANDA approvals and prolonged inflationary environment of raw material prices are key risks to our call.

Aether Industries IPO: GMP ahead of subscription opening next week

Specialty chemicals company Aether Industries initial public offering (IPO) will open for public subscription next week on Tuesday, May 24 and conclude on May 26. The bidding for anchor investors will open on May 23. The firm has fixed a price band of ₹610-642 per share for its initial public offering (IPO).

Multibagger stock turns ex-dividend today. Details here

Dividend paying stock: Taneja Aerospace and Aviation Limited is going to turn ex-dividend stock today as the aviation company has fixed 21st May 2022 as record date for dividend payment. The dividend paying stock informed Indian exchanges that the Board of Directors of the company has declared 40 per cent interim dividend for FY2021-22 and record date for interim dividend payment will be 21st May 2022.

Rupee surges 7 paise to 77.49 against US dollar in early trade

The rupee appreciated 7 paise to 77.49 against the US dollar in opening trade on Friday as crude oil prices retreated from the elevated levels.

At the interbank foreign exchange, the rupee opened at 77.51 against the American dollar, then gained further ground to quote at 77.49, registering a rise of 7 paise from the last close.

On Thursday, the rupee had settled at 77.56 against the US dollar.

Global oil benchmark Brent crude futures fell 0.71 per cent to USD 111.24 per barrel.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.29 per cent higher at 103.02.

Healthy growth across geographies and durables: ICICI Securities on V-Guard

V-Guard’s revenue grew 23.7% YoY, led by strong growth in consumer durables and electricals, and price hikes across products. We like company’s continued growth in Non-South India (though tad slower than South India). Despite price hikes, inflation in input material continues to take toll on the profitability of the company. We believe the company will likely take further price hikes to pass on the commodity cost pressures. We continue to like V-Guard’s business model due to (1) strong market shares in stabilizers, water heaters and pumps, (2) investments in distribution and brand-building and (3) investments and likely success in kitchen appliances over the medium term. However, we cut our earnings estimates due to continued input material inflation. We maintain ADD rating with a revised DCF-based TP of Rs250 (implied P/E 34x FY24E).

BSE metal index shines, gains over 3%; Vedanta, JSW Steel, Tata Steel top performers

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Top Sensex losers: Godrej Consumer, OnMobile Global, Oil India, Equitas Holdings decline in early trend

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BSE indices in early trade: Sensex jumps over 1000 points, tracking positive Asian cues 

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Top BSE gainers in early trade: Surya Roshni, Sunflag Iron & Steel, Elecon Engineering advance

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Sensex begins the session with positive rally, jumps almost 1000 points

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Nifty50 surges above 16,050 at open; JSW Steel, Hindalco, Tata Steel shine

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Sensex soars over 700 points at open; Tata Steel, Axis Bank soar 

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Nifty50 at pre-open: Trades above 16,000; Hindalco, JSW Steel, Tata Steel top gainers,

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Sensex at pre-open: Jumps over 700 points; all the stocks in the green

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Ethos IPO: What GMP (grey market premium) reflects on last day of subscription

Ethos IPO: The public issue worth ₹472.29 crore opened for subscription on 18th May and it will remain open for bidding till 20th May 2022, which means investors have just one day left to apply for the IPO (Initial Public Offering). After two days of subscription opening, the public issue has been subscribed 0.44 times whereas its retail portion has been subscribed 0.68 times. Meanwhile, Ethos shares have become available for trade in grey market from Thursday. According to market observers, shares of Ethos Limited are available at a premium of ₹7 per equity share.

China cuts key mortgage reference rate as Covid bites

China on Friday announced it would cut a key interest rate as the country fights to boost its virus-hit economy and Covid-19 restrictions rip across major cities.

Prolonged virus lockdowns have constricted supply chains, quelled demand and stalled manufacturing in the last major economy welded to a ‘zero-Covid’ approach to the pandemic.

“The five-year loan prime rate (LPR) is 4.45 percent,” China’s central bank said on Friday, lowering the rate — on which many lenders base their mortgage rates — from the previous 4.6 percent.

The one-year loan prime rate, which guides how much interest commercial banks charge to corporate borrowers, remained unchanged at 3.7 percent.

Prudent Corporate share listing today. Experts predict ‘moderate’ debut

Prudent Corporate IPO: Shares of the retail wealth management services company is going to hit the Dalal Street today. As per the information available on BSE website, the equity shares of Prudent Corporate Advisory Services Limited shall be listed and admitted to dealings on the exchange in the list of ‘B’ group of securities on 20th May 2020 i.e. today in a Special Pre-open Session. According to stock market experts, much will depend upon the market mood. They said that the stock may have a ‘moderate’ debut and it may open at a discounted price if the market continue to remain under the sell-off heat.

Dollar falls for first week in seven amid U.S. yield retreat

The U.S. dollar headed for its worst week since early February against major peers on Friday, weighed down by a retreat in Treasury yields and fatigue after the currency’s breathless 10%, 14-week surge.

The dollar index, which measures it against six major rivals, was down 1.5% for the week to 102.96, on track to snap a six-week winning run. A week earlier it had soared to the highest since January 2003 at 105.01.

Even with global stocks continuing to slide amid risks to growth from aggressive monetary tightening, led by the Federal Reserve, and China’s strict lockdowns to quash a COVID-19 outbreak, the dollar’s appeal as a haven was eclipsed by a decline in U.S. yields as investors rushed for the safety of Treasury bonds.

The benchmark 10-year Treasury yield sank overnight to a more than three-week low of 2.772%, from a 3 1/2-year high of over 3.2% earlier this month.

Day trading guide for Friday

6 stocks to buy or sell today — 20th May

Delta Corp, PNB continue to be under NSE’s F&O ban stock list

As many as four stocks have been put under the ban for trade on Friday, May 20, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE). These securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.

eMudhra IPO opens for subscription today. GMP, key things to know before you apply

Digital signature certificate provider eMudhra Ltd’s initial public offering (IPO) will open for public subscription today. and conclude on Tuesday, May 24, 2022. The firm has fixed a price band of ₹243-256 a share for its issue. It has raised ₹124 crore from anchor investors ahead of its issue.

IMF urges Asia to be mindful of spillover risks from tightening

Asian economies must be mindful of spillover risks as a decade of unconventional easing policies by major central banks is withdrawn faster than expected, International Monetary Fund(IMF) Deputy Managing Director Kenji Okamura said.

This risk applied particularly to the most vulnerable economies, said Okamura, without naming them.

Asian economies faced a choice between supporting growth with more stimulus and withdrawing it to stabilise debt and inflation, he said.

Cooking oil prices to cool as Indonesia lifts export ban

Cooking oil prices in the domestic market are set to soften after Indonesia, the world’s largest producer of palm oil, Thursday decided to lift its export ban from next week. A prolonged ban would have doubled prices as India is the largest importer of palm oil from the Southeast Asian country.

Asia stocks, US futures rise as sentiment steadies

Stocks in Asia and US futures pushed higher Friday amid a bout of relative calm in markets, though worries about a darkening economic outlook and China’s Covid struggles could yet stoke more volatility.

Equities rose in Japan, South Korea and Australia, shrugging off modest losses for Wall Street shares Thursday. European contracts also made gains.

Sovereign bonds mostly held a rally, with the US 10-year Treasury yield at 2.85%. A dollar gauge trimmed its biggest one-day drop since 2020.

In China, banks may cut benchmark lending rates for a second time this year as Covid lockdowns sap growth, according to a Bloomberg survey.

Shanghai found three Covid cases outside quarantine, raising questions over whether plans to loosen curbs there will be impacted. The offshore yuan fell.

Oil hovered near $112 a barrel, gold held a rally and Bitcoin was near $30,000.

Markets continue to reflect mounting concerns about an economic downturn, in part as the Federal Reserve hikes interest rates to quell price pressures. Global shares are on course for an historic seventh week of declines.

World stocks slide as growth fears persist, safe-havens gain

Global equities fell further on Thursday, unable to sustain a late rally on Wall Street, as investors dumped stocks on fears of sluggish growth and bought safe-haven assets such as government debt and the Swiss franc.

Supply chain woes continued to fuel inflation and growth concerns as Cisco Systems Inc warned of persistent component shortages, knocking its shares down 13.7%. The plunge made it the latest big name stock this week to post its largest decline in more than a decade.

Data showed factory output in the U.S. Mid-Atlantic region decelerated far more than expected in May with the business outlook for the six months ahead the weakest in more than 13 years, a regional Federal Reserve bank survey said.

Some megacap growth stocks that have underperformed this year posted gains but the rally fizzled. The Dow Jones Industrial Average fell 0.75%, the S&P 500 lost 0.58% and the Nasdaq Composite dropped 0.26%.

Oil steady as economic worries offset possible China demand rise

Oil prices were little changed on Friday as worries about weaker economic growth offset expectations that crude demand could rebound in China as Shanghai lifts some coronavirus lockdowns.

Brent futures for July delivery fell 36 cents, or 0.3%, to $111.68 a barrel by 0015 GMT, while U.S. West Texas Intermediate (WTI) crude fell 36 cents, or 0.3%, to $111.85 on its last day as the front-month.

WTI futures for July, which will soon be the front-month, were down about 0.6% to $109.20 a barrel.

That put WTI on track to rise for a fourth week in a row for the first time since mid-February. Brent was up less than 1% after falling less than 1% last week.

Tokyo stocks open higher

Tokyo stocks opened higher on Friday despite falls on Wall Street as bargain-hunting purchases offset some risk-off sentiment among investors.

The benchmark Nikkei 225 index was up 0.14 percent, or 36.47 points, at 26,439.31 in early trade, while the broader Topix index was up 0.03 percent, or 0.49 points, at 1,860.57.

“Investors will stay cautious today on uncertainty over the US economy… but shares are likely to be bought because of their affordability,” Mizuho Securities said in a note.