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May 25, 2023

*Macro and Market update this morning*
*India's RBI chief says inflation moderated, flags El Nino worries*
India's inflation has moderated, but lingering weather-related uncertainties still pose headwinds, the governor of the Reserve Bank of India said. "The war on inflation is not over, we have to remain alert," Shaktikanta Das said. There is no room for complacency. We will have to see how the El Nino factor plays out.", he added.
*India to become major exporter of green hydrogen in 15 years: Petroleum and Natural Gas Minister*
India will be a major green hydrogen hub in the next 15 years, meeting not only domestic demand but also becoming a key exporter of the promising fuel, Petroleum and Natural Gas Minister Hardeep Singh Puri said. Puri said the demand for green alternatives to traditional fuel has been growing in India at a fast clip, and from various sources.
*Indian Govt aims to reduce logistics cost to 9% of GDP: Nitin Gadkari at CII event*
The government is working to bring down logistics cost to 9% of GDP in the next three years from the current 14-16%, Union Minister Nitin Gadkari said. India's exports will increase when its logistics cost will come down to single digit. The government is going by certain estimates which suggest that logistics cost in India is in double digits.
*Fed agreed need for more rate hikes after May meeting was 'less certain': FOMC Minutes*
Federal Reserve officials "generally agreed" last month that the need for further interest rate increases "had become less certain," with several saying that the quarter-percentage-point hike they approved might be the last, according to minutes of the May 2-3 meeting. Several participants noted that if the economy evolved along the lines of their current outlooks, then further policy firming after this meeting may not be necessary," the minutes said, adding weight to expectations the Fed is likely to pause its aggressive rate-hike campaign at its June 13-14 meeting.
*Fed's Waller sees a rate 'hike' or a 'skip' in June, but no 'stop'*
Federal Reserve Governor Christopher Waller said he is concerned about the lack of progress on inflation, and while skipping an interest rate hike at the U.S. central bank's meeting next month may be possible, an end to the hiking campaign isn't likely. "I do not support stopping rate hikes unless we get clear evidence that inflation is moving down towards our 2% objective," Waller added.
*EU sets out plans to cut the price of financial products*
The European Union set out plans to cut how much retail investors pay banks and insurers for financial products to encourage investment and make its capital market deeper and more efficient. The retail investment package toughens up existing EU investment laws by including a ban on banks and insurers paying commission on sales of their products by brokers who gave no advice to customers, the EU's executive arm, the European Commission said.
*UK headline inflation moderated; core inflation increased*
The consumer price inflation in the UK fell to 8.7% year-on-year in April 2023, the lowest since March 2022. Still, the inflation rate exceeded market expectations of 8.2% and remained well above the Bank of England's target of 2.0%. Core inflation rate accelerated to 6.8% in April of 2023, the highest since March of 1992, compared to 6.2% in the previous month and higher than market forecasts of 6.2%.
*Germany Ifo Business Climate Index dropped in May 2023*
The Ifo Business Climate indicator for Germany dropped by 1.7 points from a month earlier to 91.7 in May 2023, down from the previous month's 14-month high and falling short of market expectations of 93.0.
*Asian markets*
Asian markets opened on a negative note in today’s session amid US debt ceiling deal stand-off.
Brent oil $78.39, DXY 103.862, US10y 3.739%, SGX Nifty -0.07%
*Macro and Market update this morning*
*India's RBI chief says inflation moderated, flags El Nino worries*
India's inflation has moderated, but lingering weather-related uncertainties still pose headwinds, the governor of the Reserve Bank of India said. "The war on inflation is not over, we have to remain alert," Shaktikanta Das said. There is no room for complacency. We will have to see how the El Nino factor plays out.", he added.
*India to become major exporter of green hydrogen in 15 years: Petroleum and Natural Gas Minister*
India will be a major green hydrogen hub in the next 15 years, meeting not only domestic demand but also becoming a key exporter of the promising fuel, Petroleum and Natural Gas Minister Hardeep Singh Puri said. Puri said the demand for green alternatives to traditional fuel has been growing in India at a fast clip, and from various sources.
*Indian Govt aims to reduce logistics cost to 9% of GDP: Nitin Gadkari at CII event*
The government is working to bring down logistics cost to 9% of GDP in the next three years from the current 14-16%, Union Minister Nitin Gadkari said. India's exports will increase when its logistics cost will come down to single digit. The government is going by certain estimates which suggest that logistics cost in India is in double digits.
*Fed agreed need for more rate hikes after May meeting was 'less certain': FOMC Minutes*
Federal Reserve officials "generally agreed" last month that the need for further interest rate increases "had become less certain," with several saying that the quarter-percentage-point hike they approved might be the last, according to minutes of the May 2-3 meeting. Several participants noted that if the economy evolved along the lines of their current outlooks, then further policy firming after this meeting may not be necessary," the minutes said, adding weight to expectations the Fed is likely to pause its aggressive rate-hike campaign at its June 13-14 meeting.
*Fed's Waller sees a rate 'hike' or a 'skip' in June, but no 'stop'*
Federal Reserve Governor Christopher Waller said he is concerned about the lack of progress on inflation, and while skipping an interest rate hike at the U.S. central bank's meeting next month may be possible, an end to the hiking campaign isn't likely. "I do not support stopping rate hikes unless we get clear evidence that inflation is moving down towards our 2% objective," Waller added.
*EU sets out plans to cut the price of financial products*
The European Union set out plans to cut how much retail investors pay banks and insurers for financial products to encourage investment and make its capital market deeper and more efficient. The retail investment package toughens up existing EU investment laws by including a ban on banks and insurers paying commission on sales of their products by brokers who gave no advice to customers, the EU's executive arm, the European Commission said.
*UK headline inflation moderated; core inflation increased*
The consumer price inflation in the UK fell to 8.7% year-on-year in April 2023, the lowest since March 2022. Still, the inflation rate exceeded market expectations of 8.2% and remained well above the Bank of England's target of 2.0%. Core inflation rate accelerated to 6.8% in April of 2023, the highest since March of 1992, compared to 6.2% in the previous month and higher than market forecasts of 6.2%.
*Germany Ifo Business Climate Index dropped in May 2023*
The Ifo Business Climate indicator for Germany dropped by 1.7 points from a month earlier to 91.7 in May 2023, down from the previous month's 14-month high and falling short of market expectations of 93.0.
*Asian markets*
Asian markets opened on a negative note in today’s session amid US debt ceiling deal stand-off.
Brent oil $78.39, DXY 103.862, US10y 3.739%, SGX Nifty -0.07%
Trading Tweaks
Price Band Revised From 10% to 5%: Adani Wilmar
Price Band Revised From 20% to 10%: Refex Industries
Ex-Date Interim Dividend: Great Eastern Shipping Company, Manappuram Finance
Ex-Date Income Distribution: National Highways Infra Trust
Ex Date Final Dividend: Rossari Biotech
Move Into Short-Term ASM Framework: Gland Pharma, Kaynes Technology India and Kokuyo Camlin
Move Out of Short-Term ASM Framework: Manorama Industries and Raymond
Who’s Meeting Whom
Adani Transmission: To meet analyst and investors on May 25 and June 6-7.
Delhivery: To meet analyst and investors on May 24
CreditAccess Grameen: To meet analyst and investors on May 24.
Maruti Suzuki India: To meet analyst and investors on May 25.
Bharat Forge: To meet analyst and investors on May 24.
T-1 Roll Over Analysis – Long Rolls
*AUTO* – Rolls 75%
Stocks – *Apollo Tyre – 72%, HEROMTR – 70% TVSMTR – 73%*
*BANKING* – Rolls 78%
Stocks – *AUBANK 81%, BANDHANBK 81% and INDUSINDBK 84%*
*CAP. GOODS* - Rolls 79%
Stocks – *CROMPTON 89%, DIXON 76%, HAVELLS 84%*
*CHEMICALS* - Rolls 75%
Stocks – *DEEPAKNTR 81%, TATACHEM 82%,*
*FINANCE* - Rolls 79%
Stocks – *CANFINHOME 78%, CHOLAFIN 83%, L&TFIN 87%, PEL 81% and SBILIFE 81%*
*FMCG* – Rolls 81%
Stocks – *BERGERPT 90%, MCDOWELL 85%,*
*METALS* – Rolls 77%
Stocks – *COALINDIA 85%, and VEDL 87%*
*PHARMA* – Rolls 76%
Stocks – *DIVISLAB 75% and LAURAUS LAB 76%*
*REALTY* – Rolls 76%
Stocks – *DELTACORP 80%, DLF 80% and INDHTL 75%*
*IT* – Rolls 79%
*INFY – 83%, INTELLECT 72%, TCS 86% and TECHM 85%*
*India Daybook – Stocks in News*
*ICRA:* Net profit up 14.9% at Rs 38.4 cr Vs Rs 33.4 cr, Revenue up 16.4% at Rs 109 cr Vs Rs 93.7 cr (YoY) (Positive)
*Bannari Amman Sugars:* Net profit at Rs 49.9 cr Vs Rs 24.3 cr, Revenue up 42.1% at Rs 656.4 cr Vs Rs 461.9 cr (YoY) (Positive)
*Aptech:* Net profit up 31% at Rs 33.4 cr Vs Rs 26 cr, Revenue at Rs 178.5 cr Vs Rs 64.7 cr (YoY) (Positive)
*JB Chem:* Net profit up 3.3% at Rs 87.6 cr Vs Rs 85 cr, Revenue up 22% at Rs 762.3 cr Vs Rs 624.6 cr (YoY) (Positive)
*Wonderla:* Net profit at Rs 35.1 cr Vs Rs 9 cr, Revenue up 69.7% at Rs 98.6 cr Vs Rs 58.1 cr (YoY) (Positive)
*Venus Pipes:* Net profit up 67.5% at ₹13.4 cr vs ₹8 cr, Revenue up 60% at ₹176.2 cr vs ₹110.1 cr (YoY) (Positive)
*NALCO:* Net profit at Rs 495 cr Vs poll of Rs 378 cr, Margin at 20.9% Vs poll 18.4% (YoY) (Positive)
*TWL:* Net profit of Rs 48.2 cr Vs loss of Rs 24.9 cr, Revenue at Rs 974.2 cr Vs Rs 422.2 cr (YoY) (Positive)
*LIC:* Net profit jumped at Rs 13,428 crore, Revenue at Rs 201022 cr Vs Rs 215487 cr (YoY) (Positive)
*Fortis:* Net profit up 58.9% at Rs 138.3 cr Vs Rs 87 cr, Revenue up 19.2% at Rs 1,642.7 cr Vs Rs 1,378. 1 cr (YoY) (Positive)
*Infosys:* The company has announced its collaboration with Adobe to transform the digital workforce (Positive)
*Wipro:* The company has announced a partnership between its Engineering Edge business line and Spartan Radar (Positive)
*B L Kashyap:* Company bags an order worth Rs 132 cr (Positive)
*Ceramic companies:* Gujarat Gas cuts industrial gas price to Rs 38.43/scm from June 1, sources (Positive)
*Rice exporters:* Centre allows conditional export of broken rice, lifts absolute Prohibition (Positive)
*Tata Motors:* The Tata Group is expected to pick the UK as the preferred site for the lucrative electric battery plant to supply its JLR requirements (Positive)
*Salzer Electronics:* Investor Vikas Vijaykumar Khemani bought 86,000 shares. (Positive)
*Oil India:* Net profit up 2.4% at Rs 1,788.3 cr Vs Rs 1,746.1 cr, Revenue up 0.4% at Rs 5,397.9 cr Vs Rs 5,376.2 cr (QOQ) (Neutral)
*Fine organics:* Net profit up 40.7% at Rs 149.4 cr Vs Rs 106 cr, Revenue down 21.4% at Rs 596.6 cr Vs Rs 759.5 cr (YoY) (Neutral)
*Pennar Ind:* Net profit up 41.1% at Rs 23.3 cr Vs Rs 16.5 cr, Revenue down 3.5% at Rs 668.4 cr Vs Rs 692.8 cr (YoY) (Neutral)
*India Glycols:* Net profit down 40% at Rs 40.3 cr Vs Rs 67.1 cr, Revenue down 3.6% at Rs 619.3 cr Vs Rs 642.5 cr (YoY) (Neutral)
*63 Moons:* Net loss of Rs 17.6 cr Vs profit of Rs 20.5 cr (QoQ) Revenue up 19.7% at Rs 111.6 cr Vs Rs 93.2 cr (QoQ) (Neutral)
*GPPL:* Net profit up 30.8% at Rs 97.3 cr Vs Rs 74 cr, Revenue up 6.9% at Rs 234.7 cr Vs Rs 219.6 cr (YoY) (Neutral)
*Hawkins:* Net profit up 6.7% at Rs 22.8 cr Vs Rs 21.4 cr, Revenue down 6.6% at Rs 253.9 cr Vs Rs 271.8 cr (YoY) (Neutral)
*GR Shipbuilders:* Net profit up 17.2% at Rs 55.3 cr Vs Rs 47.2 cr, Revenue up 10.7% at Rs 601.2 cr Vs Rs 543.2 cr (YoY) (Neutral)
*Piramal Pharma:* Net profit down 75.4% at Rs 50.1 cr Vs Rs 204 cr, Revenue up 1.5% at Rs 2,163.6 cr Vs Rs 2,131.4 cr (YoY) (Neutral)
*Nykaa:* Net profit down 71.8% at Rs 2.4 cr Vs Rs 9 cr, Revenue up 33.7% at Rs 1,301.7 cr Vs Rs 973.3 cr (YoY) (Neutral)
*Brigade:* Net profit at Rs 69.3 cr Vs Rs 33 cr, Revenue down 10.6% at Rs 842.6 cr Vs Rs 942.3 cr (YoY) (Neutral)
*Mahindra CIE:* Mahindra & Mahindra sold 1.21 crore equity shares (Neutral)
*Deepak Spinners:* Net profit down 49.9% at Rs 6 cr Vs Rs 11.9 cr, Revenue down 22% at Rs 108 cr Vs Rs 138.4 cr (YoY) (Negative)
*Asian Granito:* Net loss of Rs 44.7 cr Vs profit of Rs 12.1 cr, Revenue down 4.7% at Rs 455.8 cr Vs Rs 478.4 cr (YoY) (Negative)
*Rupa & Company:* Net profit down 61.7% at Rs 18.9 cr Vs Rs 49.3 cr, Revenue down 11% at Rs 406.8 cr Vs Rs 456.6 cr (YoY) (Negative)
*Borosil:* Net profit down 85.5% at Rs 10.1 cr Vs Rs 70 cr, Revenue down 65.4% at Rs 309.1 cr Vs Rs 894 cr (YoY) (Negative)
*Shyam Metaliks:* Net profit down 39.4% at Rs 261.2 cr Vs Rs
*Good Morning*
• RBI Wants Nations With Excess Rupees to Tap Indian Bonds
o India has been trying to promote trade in local currency
• Tycoon Birla’s Aluminum Giant Eyes 30% Low-Carbon India Output
o Hindalco to certify 8% of production as low-carbon this year
• Modi’s Popularity Endures Despite Recent India State Poll Defeat
• BRICS 1Q GDP Forecast Steady in Past Week; India Seen at 4.6%
• Stocks in India Drop Tracking Global Peers; Adani Firms Decline
• Most Adani Stocks End Lower; Flagship Falls Most in Two Months
• Gold Rises With US Debt-Ceiling Negotiations at an Impasse
• Global Funds Buy Net INR11.9B of India Stocks on May 24: NSE
o Domestic funds buy net 3.01b rupees of stocks
• DGCA to conduct audit of airline’s preparedness before flight resumption, Go First tells staff: PTI
• ED raids at 25 locations for alleged forex violations by gaming apps: The Economic Times
• Sebi mulls prohibiting differential rights to AIF investors: The Economic Times
• Adani Ports (ADSEZ): Adani Ports Mulls $3 Billion Investment in Vietnam
o Adani Group Commits ~$10b Long-Term Investment in Vietnam
• Aptech (APTR): Approves free shares issue of 2 shares for every 5 shares held
• FSN E-Commerce (NYKAA): 4Q net income -72% Y/y to 24.1m rupees, mises est. 97.6m; revenue +34% to 13b
• Gujarat Pipavav (GPPV): 4Q net income +17% Y/y to 840.4m rupees, est. 779.5m; revenue +6.3% to 2.35b
• JB Chemicals (JBCP): 4Q Net Income +3.3% Y/y to 876.3m rupees, est. 1.02b; revenue +22% to 7.62b
• Life Insurance Corp of India (LICI IN): 4Q net income 134.3 billion rupees vs. 23.7 billion rupees y/y; net premium income falls 8.3% y/y.
• National Aluminium Co Ltd (NACL IN): 4Q net income 5.22 billion rupees, -49% y/y, beats estimate. Revenue 36.7 billion rupees, down 16% y/y.
• Oil India (OINL): 4Q net income +10% Y/y to 17.9b rupees, meets est. 17.77b; revenue +26% to 56.5b; dividend 5.5 rupees/share
• Wipro (WPRO): Says its engineering unit partners with Spartan Radar to enhance assisted and automated driving solutions on its ‘Cloud Car’ platform
• ZF Commercial Vehicle (ZCVCS): 4Q net income 1.01b rupees Vs. 566m Y/y; revenue +25% to 9.77b

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