Indian indices witnessed a positive start on Friday amid positive global cues. Globally, the Wall Street stocks rallied in overnight trade after two down sessions ahead of key jobs data, as markets fixate on the implications for inflation and monetary policy. Oil held gains in Asia, and was set for a sixth weekly advance, after a keenly anticipated OPEC+ supply meeting delivered only a modest increase in output. In Asia, shares rose in Japan, Australia, and South Korea, while markets in Shanghai and Hong Kong were closed for public holidays.
Aether Industries share hits upper circuit after positive listing. Buy, sell or hold?
Aether Industries shares today made a positive debut on the BSE at ₹706.15 levels and continued to surge up to intraday high of ₹776.75 apiece levels, around 20 per cent higher from its upper price band of ₹642 per equity share, hitting the upper circuit level on its first day. The specialty chemical stock listed on NSE at ₹704 per share.
Power stocks slip close to 2%; Adani group stocks worst hit
Gold hits 1-month high as dollar weakens, set for weekly gain
Gold prices scaled a one-month peak on Friday, riding on a weaker U.S. dollar that has also put bullion on track for a third straight weekly gain.
Spot gold was steady at $1,867.33 per ounce, as of 0539 GMT, after hitting its highest level since May 9 of $1,873.79. Gold prices have risen about 0.8% so far this week.
U.S. gold futures edged up 0.1% to $1,872.10.
The dollar edged lower, making greenback-priced bullion more attractive for overseas buyers.
Mukesh Ambani surpasses Gautam Adani to regain Asia’s richest spot as RIL shares near record high
Mukesh Ambani has surpassed Gautam Adani to regain the spot of Asia’s and India’s richest man as Reliance Industries (RIL) shares continued to surge to trade near record high levels.
India rice farmers to maintain acreage on normal rain forecast
Rice farmers in India, the top exporter, will be working full tilt this growing season to take advantage of a good monsoon and prospects that the government will boost grain purchases to safeguard food security.
Rice has come into focus recently on worries that India may restrict exports of the crop next, after similar moves in wheat and sugar. Ample production will ensure the country has enough rice supplies and allay concern about curbs on overseas sales, which could have a devastating impact on global food security.
Charanjit Singh Gill, a farmer in Punjab — a region known as the country’s food bowl — said he will keep planting rice as it’s the best option during the rainy season. Rice in most Asian farms requires large amounts of water to grow.
Asian markets track Wall St up before jobs data, oil holds gains
Asian equities rose Friday following a strong performance on Wall Street ahead of a key US jobs data release, while crude gave up some of the previous day’s gains after an output hike disappointed traders.
A below-forecast reading on US private jobs offered some support to New York, even as inflation and interest rate hike concerns remained major headaches.
While observers said the reading from payroll firm ADP was not usually a good guide for the official report, a soft number on Friday could give the Federal Reserve a little room to ease off its rate hike drive and provide a much-needed boost to sentiment.
Views of Neeraj Chadawar of Axis Securities on market outlook
We have seen some recovery in the equity market in the last few trading sessions on account of positive global cues in which India VIX recovered by 20% in the last one week to 20 odd levels (currently below the long-term average). In FY23, so far, FIIs pulled out $ 9 Bn from the Indian equity market while DIIs have added $11 Bn. 80% of the FIIs outflow is from the Financial and Tech sector in the last eight months as per NSDL data. The pace of selling has reduced in the last few trading sessions, creating positive sentiments in the domestic market. Currently, the market is eyeing the central bank’s guidance on the interest rate trajectory. Both the RBI and FED meeting is scheduled in June and we have to wait and watch to see how central banks influence the path of interest rates trajectory to maintain growth and inflation dynamics. Keeping these developments in view, we expect the market performance to remain range-bound in the near term, and a clear trend is likely to emerge only if volatility stays at lower levels for a longer time. Investors should focus on asset allocation and use this volatility to build long-term positions in quality companies, where the earnings visibility is high.
Broad market indices: Nifty50 gains 0.78% amid firm global trends
Bank stock revises dividend upwards for FY22. Details inside
Bank of Baroda (BoB) has revised its final dividend upwards to ₹2.85 per equity share for the FY 2021-22, subject to the shareholder’s approval, from ₹1.20 per equity share its board had proposed to declare earlier.
Reliance Industries (RIL) shares inch closer to record high. Should you accumulate?
Reliance share price: On account of Castrol India Limited joining hands with Reliance Jio BP to sell lubricants in India and market buzz about the company’s mood to enter the EV charging infra business, shares of Reliance Industries Limited have surged closed to its record high. Reliance share price today opened with upside gap and went on to hit its intraday high of ₹2808 apiece levels on NSE, which is just ₹48 per share away from its life-time high of ₹2856.15 per share.
China faces the perfect storm: global tightening, capital flight, over-capacity (ICICI Securities)
China’s foreign exchange reserves declined by US$130bn for Jan-Apr’22, despite cumulative trade surpluses of US$215bn over the period, suggesting substantial capital flight. This severely constrains China’s ability to ease monetary policy, especially amidst a concerted global monetary tightening.
China’s M2 money supply is up 500% since Aug’08 (pre-GFC), while US M2 has expanded only 180% over the period. China’s record monetary growth (the biggest monetary expansion by any country in history) has funded massive over-capacity in industry and the property sector. As liquidity tightens globally, it is becoming progressively more difficult for China to maintain sufficient domestic liquidity to sustain demand for its vast industrial and real-estate capacity, with the latter particularly seeing downward price pressure.
China’s real GDP is unlikely to exceed 4.5% growth in 2022, well short of the 5.5% growth target set in this politically-crucial year, when the communist party’s politburo will be replaced with new members in Q4CY22. Global monetary tightening will reinin China’s property market, and constrain FAI growth, likely tipping the financial system towards crisis. A receding Chinese growth engine enhances India’s importance to the global economy. And as China’s over-investment stalls, it creates room for India and other economies to get their investment cycles off the ground.
MTAR Tech gains over 2% after announcement of acquisition of GEE PEE Aerospace & Defence
Prabhudas Lilladher on Sun Pharma
Rating: BUY | CMP: Rs888 | TP: Rs1,020
Sun Pharma (SUNP) reported strong EBIDTA growth of 21% YoY in FY22 aided by 1) global ramp-up of specialty products, 2) focus on domestic market and 3) steady ROW market. Company’s significant investments and efforts in specialty business has started paying off in upward trajectory with 39% YoY growth in FY22. Sustained momentum in specialty will help in improving operating leverage and margins too. Also, domestic formulations (32% of total revenue) continues to outperform IPM. Our FY23E and FY24E EPS stands marginally cut by 3% to factor in higher other expenses. We maintain our ‘Buy’ rating with revised TP of ₹1020 ( ₹1050 earlier) based on 25x FY24E earnings. SUNP remains our top pick in large cap space.
What Greaves Cotton’s EV deal means for the stock
Shares of Greaves Cotton continued to surge for the second consecutive session on the BSE in Friday’s early deals after the…