Markets opened with a gap up and managed to post gains of 0.5% ahead of FOMC. The key trigger which may act as a major reversal in Indian markets would be a decline in USDJPY and a simultaneous rise in Brent Crude prices. The Nifty may see a sustained decline on move below 19,600 with immediate reaction expected towards 19,100. USDJPY is positioned to move towards 130 in the near term while a breakout in Brent Crude prices can stretch rally all the way beyond USD 100. With the slide in the Dollar index, we expect base metals and precious metals to post gains while the financials, technology, services, and consumption sectors may see a significant sell-off in the coming days.
FOMC hiked by 25 basis points was in line with market expectations. The statement was somewhat hawkish, and Powell’s tone gradually shifted to dovish/optimistic.
BSE Bankex
Stocks to watch
Positive Read Through
- TATA Consumer Q1 results are in line with estimates, India business revenue growth is above estimate at 15.5 pct YoY
- Dr. Reddy’s Q1 results are above estimates, EBITDA rises 20.1 pct YoY
- Colgate Q1 results above estimates, EBITDA rises 28.4 pct YoY
- Jindal Stainless revenue rises 25 pct, margin at 11.1 pct vs 10.3 pct YoY
- Marico to acquire 58 pct stake in plant-based protein brand owner Satiya Nutra for Rs *3690 mn
- RBL Bank- M&M acquires 3.53 pct stake for Rs 4170 mn, may consider raising stake further
- Vesuvius India EBITDA rises 70 pct, margin at multi-year high of 17.2 pct
- SYNGENE EBITDA rises 22.6 pct, net profit up 26.4 pct YoY
- SIS revenue rises 11.15 pct YoY, margin rises 70 bps in the last 3 Qtrs
- ION Exchange EBITDA rises 48.3 pct, margin at 10.2 pct vs 8.6 pct (YoY)
- SCHAEFFLER India EBITDA rises 6.3 pct, revenue up 4.6 pct YoY
- Lemon Tree signs license agreement for an 80-room property in Zirakpur, Punjab
- HFCL EBITDA up 25.8 pct, margin at 14.7 pct vs 11.1 pct ( YoY)
Negative Read Through
- M&M acquires 3.53 pct stake in RBL Bank for Rs. 4170 mn, may consider raising stake further
- Tech Mahindra cc rev declines by 4.2 pct vs estimates of 2-2.5 pct fall, $ revenue down 4 pct QoQ
- Axis Bank NIM is lowest 3 qtrs at 4.1 pct, ops profit declined QoQ for the second straight Qtr
- SUN Pharma Taro Pharma Q1 ops loss at $7.9 m vs income of $14 m, net income declines YoY
- RVNL government to sell up to 5.36 pct stake in the company via OFS, Floor price at Rs 119/sh
- REC NIM at 8-year low, NII down 12 pct YoY
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