Indian indices witnessed a positive start on Wednesday. In the last trading session on Tuesday, the indices finished sharply higher after tracking positive trends in the Asian market. Despite positive trends, investors remain wary of rising inflation, weak economic growth, crude prices, and Ukraine war. However, the Wall Street investors shrugged off some of these concerns in the overnight session as the indices closed sharply higher after strong retail sales in April eased worries about slowing economic growth. The optimism was, however, not shared by all in Asia. Shares rose in Japan and Australia, while it wavered in South Korea, Shanghai, and Hong Kong.
This multibagger stock hits upper circuit before turning ex-bonus tomorrow
Sindhu Trade Links Ltd is a small-cap company with a market capitalization of ₹5,820 crore that specialises in the finance sector. After opening at a market price of ₹110, the BSE-listed stock hit its upper circuit of ₹113.25 (5 per cent) at 9.50 p.m. today. Sindhu Trade Links’ stock has risen from ₹5.78 to ₹113 in the last year, representing a multibagger return of 1,846.37 per cent. The Board of Directors announced bonus shares in the ratio of 2:1 at the general meeting held on May 11, 2022.
Dollar rebounds after Fed’s Powell reaffirms hawkish outlook
The U.S. dollar bounced back on Wednesday, a day after its biggest daily loss in more than two months, as U.S. Federal Reserve chief Jerome Powell struck a more hawkish tone as the central bank battles to rein in surging inflation.
Powell pledged that the U.S. central bank would ratchet up interest rates as high as needed, including taking rates above neutral, to kill a surge in inflation that he said threatened the foundation of the economy.
The neutral rate is the level at which economic activity is neither simulated nor constrained.
Stock market rebound fizzles, UK inflation hits 40-year high
A rebound in stocks ran out of steam on Wednesday as concerns about the economic growth outlook and rising inflation knocked sentiment, while a UK inflation reading of 9% underlined just how much higher interest rates might be headed.
Asian stocks managed to eek out their fourth straight session of gains but in Europe shares were mixed and futures on Wall Street pointed to a weaker open.
Asian markets mixed after US retail data boosts Wall Street
Asian stocks were mixed Wednesday following a strong start in some markets, which took the lead from Wall Street where traders were cheered by brisk US retail sales data.
The US Federal Reserve’s tightening of monetary policy to contain surging inflation has sent jolts through global markets, deepening the apprehensions of investors already roiled by China’s Covid-19 lockdowns and the Russian invasion of Ukraine.
But there was some good news out of the United States, with data showing increased spending by Americans in April. Retail sales rose 0.9 percent — partly boosted by a rebound in auto purchases.
Stocks stall, Futures dip on Powell’s hawkish turn
Stocks in Europe struggled to build on Tuesday’s rally as traders assessed hawkish comments from Federal Reserve Chair Jerome Powell and the latest data on inflation and economic activity.
The Stoxx Europe 600 index was little changed the open, with ABN Amro slumping almost 10% after the Dutch lender reported first-quarter results burdened by rising costs. Siemens Gamesa Renewable Energy SA surged after Bloomberg reported Siemens Energy AG is planning to buy the shares it doesn’t own in its Spanish unit.
US futures dipped after the S&P 500 added 2% in a risk rebound Tuesday. Treasury yields ticked lower and the dollar snapped a three-day losing streak after Powell said the Fed “won’t hesitate” to tighten policy beyond neutral to curb high inflation. MSCI Inc.’s Asia-Pacific equity index rose for a fourth day, the longest such streak since February. Oil held around $113 a barrel and Bitcoin traded near $30,000.
Top BSE losers in afternoon session: ACRYSIL, Bajaj Electricals, Hindustan Petroleum Corporation bleed
Top BSE gainers in afternoon session: MRPL, Sudarshan Chemical Industries, Wockhardt lead
Weakness persists on both growth and margin fronts; downgrade to ADD despite structural positives: YES Securities on Zydus Wellness
We see a long growth headroom for the company given strong brand equity and leadership position in most segments, less than 20% penetration across its categories, multiple brand extension opportunities especially in health and wellness, strong R&D capabilities of the parent company and best‐in‐class brand spends, all of which can help the company grow above industry growth rates over the longer term. Margins should start improving post 1H as headwinds persist due to uncertainty around inflation and inferior product mix. Category decline in key segments leading to growth headwinds and competitive intensity expected to delay the recovery in margins makes us cut our earnings by 7‐9% and thereby downgrade our rating to ADD from Buy despite the structural positives.
Satisfactory performance in challenging environment; maintain BUY; de‐merger to unlock value: YES Securities on Bajaj Electricals
We expect growth momentum in the consumer business to continue as BJE has been launching new SKU’s across the categories at the premium end. This has resulted in market share increase in urban markets which was been a weak area for BJE. EPC business is now expected to turn profitable from FY23 on sustainable basis leading to a higher multiple. We have cut our FY23 and FY24 earnings as profitability is expected to improve only from 2HFY23 as commodity prices stabilize. We build in FY22‐24E Revenue/EBITDA/PAT CAGR of 13%/54%/84% and maintain BUY with PT of Rs1,286 continuing to value the company at 35x FY24EPS. We expect the stock to re‐rate with a further improvement in efficiencies and profitability in EPC business and concentrated focus on Consumer business.
Tata Consumer appoints Monica Jain as senior VP and GM for US business
Packaged consumer products company Tata Consumer Products Ltd. (TCPL), on Wednesday announced the appointment of Monica Jain as senior vice president and GM of the company’s US business.
Ruchi Soya to acquire food retail business of Patanjali Ayurved
Ruchi Soya has entered into an agreement with Patanjali Ayurved Limited (PAL) to acquire the latter’s food retail business undertaking which consists of manufacturing, packaging, labelling and retail trading of certain food products, along with manufacturing plants located at Padartha, Haridwar, and Newasa, Maharashtra, subject to approval of shareholders and other authorities.
Airtel outperforms peers in Q4; debt reduction underwhelms
Bharti Airtel Ltd’s March quarter (Q4FY22) results were good on many counts. For one, sequential net additions in mobile subscriber base stood at 3 million. This compares to a fall in Reliance Jio’s net subscribers of 10.8 million and Vodafone Idea’s decline of 3.4 million. However, Airtel’s churn remained elevated at 2.8%.
Gold dips as dollar checks slide, Fed
Gold prices fell on Wednesday as the dollar recovered slightly, piling pressure on greenback-priced bullion alongside firm Treasury yields and an aggressive inflation stance by the U.S. Federal Reserve chief.
Spot gold dropped 0.2% to $1,810.49 per ounce, by 0557 GMT. U.S. gold futures slipped 0.6% to $1,808.10.
Sensex erases gains, trades 100 points lower; PowerGrid, Bajaj Finserv, Airtel, TechM top drags
Sensex turns volatile, trades flat
Axis Securities on Abbott India
Abbott India’s strategy of ‘Beyond the Pill’ comprising awareness, diagnosis, treatment and compliance for consumers is expected to deliver continued growth for the business. Therefore, we maintain a BUY rating on the stock with a Target Price of ₹20,000/share.
GM improves; demand momentum is strong: Prabhudas Lilladher on V.I.P. Industries
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