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Will IT support the rally in Nifty?

Good Morning Everyone, as discussed in the weekly meeting yesterday, With major IT results expected next week, we might see some rally on the IT side, but all can go well only if the Russia-Ukraine issue does not give any big bad news.

Our major focus will be on the IT sector this week as the result season starts this month.

Global Markets:

The S&P 500 rose modestly to kick off the second quarter on Friday, as the monthly jobs report indicated a strong labor market and is likely to keep the Federal Reserve on track to maintain its hawkish policy stance.

The Dow Jones Industrial Average rose 139.92 points, or 0.4 percent, to 34,818.27, the S&P 500 gained 15.45 points, or 0.34 percent, to 4,545.86 and the Nasdaq Composite added 40.98 points, or 0.29 percent, to 14,261.50.

US employers maintained a brisk pace of hiring in March, driving the unemployment rate to a new two-year low of 3.6 percent, while also boosting wages, resulting in a further tightening of labor market conditions and opening the door to a hefty 50 basis points interest rate hike from the Federal Reserve in May.

Indian Market:

Trends on SGX Nifty indicate a negative opening for the broader index in India with a loss of 31 points.

India's FY23 GDP growth estimated at 7.4%; RBI rate hike of 50-75 bps seen by FY-end: FICCI survey

India's annual median GDP growth forecast stood at 7.4 percent for 2022-23, according to a survey by the Federation of Indian Chambers of Commerce and Industry (FICCI) released on April 3. The Economic Outlook Survey estimates a minimum and maximum growth of 6.0 percent and 7.8 percent, respectively.

According to the industry chamber's survey, the median growth forecast for agriculture and allied activities has been put at 3.3 percent for 2022-23. The industry and services sectors are expected to grow 5.9 percent and 8.5 percent, respectively, during the fiscal year.

India's exports rise to record high of $418 billion in FY22

India's merchandise exports spurt to a record high of USD 418 billion in the 2021-22 fiscal on higher shipments of petroleum products, engineering goods, gem and jewellery and chemicals, according to official data released on Sunday.

India's goods trade (exports and imports) crossed $1 trillion during 2021-22 as the country's imports too have touched an all-time high of $610 billion. Outbound shipments touched an all-time monthly high of $40.38 billion in March 2022, Commerce and Industry Minister Piyush Goyal told reporters here. Exports stood at $35.26 billion in March 2021.

Indian Railways freight loading up record 15% in 2021-22 to 1,418 MT

The Indian Railways' total freight loading rose 15 percent year-on-year to 1,418.10 million tonne (MT) in 2021-22, the ministry of railways said on April 1. The transporter earned Rs 1.43 lakh crore of gross freight revenue in 2021-22, which was 15.7 percent higher than 2020-21.

The ministry has raised the target for loading to 1,475 MT in 2022-23, while also increasing the revenue target to Rs 1.65 lakh crore.

Stock Specific News:

TVS Motor Company | Subsidiary TVS Motor (Singapore) has acquired 70 percent stake in UK-based EBCO, for GBP 1,163,070. EBCO provides smart connected mobility solutions through a pipeline of e-bikes across the city and mountain biking segments. In addition, TVS Motor registers sales of 3.07 lakh units in March 2022, which fell compared to 3.22 lakh units sold in same month last year.

Hero MotoCorp | The company sold 4.50 lakh units of motorcycles and scooters in March 2022, declining sharply compared to 5.76 lakh units sold in the corresponding month last year. In FY22, sales dropped to 49.44 lakh units, compared to 57.91 lakh units sold in previous year.

HDFC Bank | Deposits rose nearly 17 percent YoY and 8 percent QoQ in Q4 FY22 while advances gained 21 percent YoY and near 9 percent QoQ. CASA Ratio was at an all-time high of 48.2 percent.

Dr Reddy's Laboratories | The company has entered into an agreement with Novartis AG to acquire the cardiovascular brand Cidmus in India. The acquisition cost is $61 million.

Wipro | The company has collaborated with the University of South Carolina to advance AI-led Innovation. It has also collaborated with the Indian Institute of Technology, Patna to Advance AI-led Innovation.

GOCL Corporation | The company has received a notice of demand of Rs 45.72 crore from the Income Tax Department. This notice is in connection with Joint Development Agreement for the land at Kukatpally, Hyderabad, pertaining to the assessment year 2013-14. But as per the company, aforesaid notice is not tenable in law.

Karnataka Bank | The bank clocked a 6.27 percent growth in core deposits at Rs 80,385 crore for the year ended March 2022 compared to the previous financial year, and gross advances during the same period grew by 9.5 percent to Rs 57,726 crore. The share of CASA to total deposits stands increased at 32.97 percent in March 2022, against 31.5 percent at the end of March 2021. The private sector lender expects 12 percent growth in deposits and about 17 percent in gross advances for FY23.

JSW Energy | Subsidiary JSW Neo Energy has entered into an agreement with the Government of Chhattisgarh for setting up a 1,000 MW capacity of hydro pumped storage project in Chhattisgarh.

Alkem Laboratories | ISP Chile (Public Health Institute of Chile) had conducted an inspection at the company's manufacturing facility at Daman, India from March 28 to April 1, 2022. At the end of the inspection, no observations critical to good manufacturing practices were detected.

Lupin | The company has signed an agreement with Anglo-French Drugs & Industries for acquiring a portfolio of brands. This will strengthen the company's presence in vitamins, minerals & supplements and CNS segments.

MOIL | MOIL has increased the prices of its products by 7.5-20 percent. With this, the stock rose about 6 percent higher but settled 2.96 percent higher.

Coal India | Shares of the coal major closed 1.61 percent higher, off its 2 percent intraday high, after Coal India said that its production fell 1 percent YoY at 80.3 mt while offtake rose 3 percent at 62 mt.

M&M | The automobile company reported better-than-expected auto sales for March, which drove the stock to close 2.31 percent higher.

NMDC | NMDC has hiked lump ore price by Rs 100 per tonne and Fines price by Rs 200 per tonne. Post this, the scrip closed 2.31 percent higher.

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