Indian indices witnessed a positive start on Wednesday. On Tuesday, heavy sell-off towards the end in the IT, FMCG, realty sector dragged the indices down as they shed almost 1.25% at close. The indices on the Wall Street closed higher on Tuesday on the back of stronger-than-expected corporate earnings, but cut in global economic growth projection, high inflation, Russia-Ukraine war continue to spook market investors. Growth concerns weighed on oil markets Tuesday, reversing recent gains in the commodity amid some concerns about global supply. In Asia, shares in Japan and Australia were advanced, while that in South Korea, Hong Kong, and Shanghai declined.
LME copper edges higher as stimulus hopes offset firm dollar, growth woes
London copper prices edged higher on Wednesday, as hopes of more stimulus from top metals consumer China eclipsed pressure from a stronger dollar and global growth worries.
Benchmark three-month copper on the London Metal Exchange (LME) was up 0.1% at $10,319 a tonne, as of 0510 GMT, after hitting a two-week peak on Tuesday.
The most-active May copper contract on the Shanghai Futures Exchange ended the morning session down 0.7% at 74,620 yuan ($11,664.11).
China central bank urged financial institutions to step up support for the contact-intensive service sector and small firms affected by the COVID-19 pandemic, it said in a statement on Wednesday.
Tokyo stocks end higher on US gains, cheap yen
Tokyo stocks closed higher on Wednesday, helped by a cheaper yen and gains on Wall Street, where investors were encouraged by better-than-expected US housing starts data and solid corporate earnings.
The benchmark Nikkei 225 index added 0.86 percent, or 232.76 points, to 27,217.85, while the broader Topix index rose 1.03 percent, or 19.45 points, to 1,915.15.
YES Securities on ACC Limited
NSR rescued margin; input cost still a headwind
ACC’s higher capacity utilization rate (+90%) due to slower capacity addition than industry resulted in stagnant volumes and market/capacity share loss. Recently, ACC lined up capacity addition that would provide production headroom to grow its volume from CY22E onwards. Therefore, we expect a volume growth of 8% in both CY22/23E. Due to the elevated fuel & diesel price, we have lowered our EBITDA/PAT estimate by 19/26% for CY22E while kept unchanged for CY23E envisaging cost normalization. Additionally, ACC also eyeing to improve its operating efficiency by scaling up WHRS capacity to 75 MW. At CMP, stock is trading at 11/8x of EV/EBITDA on CY22/23E. Due to recent steep correction and TP of Rs2,400 at 10x EV/EBITDA on the CY23E estimate, we recommend ‘BUY’ (earlier ADD).
Target price: ₹2,400
Potential return: +17%
Stocks, Europe equity futures rise as Dollar dips
Stocks rose Wednesday and a selloff in Treasuries paused as investors evaluated the resilience of the global economic recovery to high inflation, a hawkish Federal Reserve and Covid lockdowns in China.
European equity futures advanced, while Japan bolstered an Asia-Pacific share gauge. But China dropped after its banks held lending rates, disappointing investors looking for a cut to support an economy sapped by Covid curbs.
Nasdaq 100 contracts retreated amid an after-hours slump in Netflix Inc. on poor subscriber numbers. That tempered some of the optimism from a rally in the S&P 500 index ahead of the streaming giant’s results.
Treasuries were steady but remain under longer term pressure from hardening expectations of sharp Federal Reserve policy tightening. Chicago Fed President Charles Evans said interest rates will probably exceed the neutral level in the campaign to damp price pressures.
The dollar declined and the yen revived after a prolonged slump. The yen remains the weakest performer in the Group of 10 this year on the policy contrast with the U.S.: the Bank of Japan offered to buy an unlimited amount of bonds to contain yields, underscoring its desire for loose monetary settings.
Salasar Techno Engineering Ltd. up by 4% in a neutral market on stock split plan
Shares of Salasar Techno Engineering Ltd. were up 4 per cent at ₹269 on the BSE in Tuesday’s intra-day trade, in an otherwise neutral and volatile market, the stock has hit the high of ₹279 in its early trade on Tuesday, after the company said the board will meet on April 30, 2022 to consider stock split proposal.
ACC’s cost optimization focus saves Q1 but headwinds ahead
Large-cap cement manufacturer ACC Ltd.’s weak March quarter results (Q1CY22) have set the tone for the industry’s performance. ACC follows a January to December accounting year.
RIL shares surge to near all-time high. Key factors driving the stock
Reliance Industries shares have surged to near all-time high as Dalal Street is buzzing with strong Q4 numbers of Reliance Petrochemicals on improving GRM (gross refining margin) in recently ended March 2022 quarter. Extending its Tuesday rally on second successive session, RIL share price today opened with an upside gap of around ₹17 per share at ₹2657.10 apiece levels on NSE and went on to climb to its intraday high of ₹2731 levels, around ₹20 away from its all-time high of ₹2751.35 per share levels.
Energy, auto stocks drive Indian shares higher
Energy and auto shares lifted India’s blue-chip stock indexes on Wednesday, after a sharp sell-off in the previous session, while investors awaited key corporate earnings amid concerns about runaway inflation.
The NSE Nifty 50 index was up 0.94% at 17,118.55, as of 0449 GMT, while the S&P BSE Sensex rose 0.9% to 56,966.71.
Both the indexes fell sharply on Tuesday after Russia said it was starting a new stage of what it calls its special military operation in Ukraine.
HDFC Ltd rose 1.6% on Wednesday. The lender will sell 10% stake in its unit HDFC Capital Advisors to a unit of Abu Dhabi Investment Authority.
Asian shares mixed after tech-led rally on Wall Street
Stocks were mixed in Asia on Wednesday after a rally on Wall Street led by technology stocks.
Share benchmarks rose in Tokyo, Hong Kong and Sydney but fell in Shanghai. U.S. futures were lower and oil prices pushed higher.
Japan reported its trade deficit persisted in March as imports surged 31% thanks to soaring oil prices and a weakening yen. The deficit of 412 billion yen ($3.2 billion) for March was lower than the previous month’s 670 billion yen but was quadruple analysts’ estimates and a reversal from a surplus of 615 billion yen in March 2021.
Data for the fiscal year that ended in March showed exports jumped almost 24% but were outpaced by imports, which climbed 33%. The fiscal year deficit of 5.4 trillion yen (nearly $42 billion) was the highest in seven years.
4 stocks with sound management, strong fundamentals, high ROE. Worth a look?
Here’s the list of top 4 stocks, as determined by some of the company’s most critical qualitative attributes.
Rakesh Jhunjhunwala portfolio: Big Bull trims stake in this Tata stock in Q4FY22
Rakesh Jhunjhunwala portfolio: January to March 2022 quarter will be remembered for highly volatile sessions caused by Russia-Ukraine crisis and soaring global inflation concerns. In recently ended March 2022 quarter, even ace investors had to rejig their portfolio. Popularly known as ‘Warren Buffett of India’ Rakesh Jhunjhunwala too has done a lot of changes in his portfolio. The latest one is his partial profit-booking in Tata Motors DVR during Q4FY22. In this period, Big Bull has trimmed his stake from 3.93 per cent to 2.95 per cent in this Tata group stock.
Global Longlife Hospital IPO
Subscription date, price, other details in 10 points
Dolly Khanna trims stake in multibagger textile stock in Q4FY22
Dolly Khanna portfolio: Buying a good business at an attractive valuations is important but booking profit at right time is also important. Chennai-based ace investor Dolly Khanna has probably done the same after booking partial profit in this shares, which is one of the multibagger stocks in 2021. The marquee investor has booked partial profit in this multibagger textile stock trimming her stake in the company from 1.55 per cent to 1.42 per cent in recently ended March 2022 quarter.
HDFC Ltd to sell 10% equity in HDFC Capital to Abu Dhabi Investment Authority
HDFC Ltd has entered into binding agreements to sell 10% of share capital of HDFC Capital Advisors Ltd (HDFC Capital) to a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA)…