Reliance industries beats Q4 profit estimates on boost from energy unit: Daily Market Update - 23 April 2024 | Globe Capital Market LTD.
Reliance industries beats Q4 profit estimates on boost from energy unit: Daily Market Update – 23 April 2024

Reliance Industries reported fourth-quarter profit above analysts' estimates on Monday, boosted by strength in its mainstay oil to chemicals (O2C) segment. Company said its consolidated profit fell about 2% to 189.51 billion Indian rupees ($2.27 billion) in the January-March quarter, but edged past analysts' average estimate of 185.22 billion rupees, according to LSEG data. The company, said its consolidated revenue gained 11.6% to 2.41 trillion rupees, helped by a 10.9% jump in its oil-to-chemicals unit on improved price realisation and higher sales of transportation fuels.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range 0.67% to1%.
  • European equity markets also settled higher in range 0.5% to1.5%.
  • Asian equity markets are trading in green.
  • GIFT Nifty is little changed, Nifty futures likely to open around 22390 levels (as on 8:30AM).


News highlights from across the globe

  • Markets in Asia-Pacific region rose for second day in a row on Tuesday ahead of the release of business figures around the globe, and on anticipation of positive earnings from Big Tech.
  • US stocks rebounded on Monday, with Corporate America kicking off the busiest week for first-quarter earnings that will be key in shaping the outlook for equities.
  • Brent crude was trading 0.46% higher at $87.42 a barrel. Gold was higher by 0.30% at $2,334.32 an ounce.


Important news updates from the domestic front

  • Reliance Industries (Consolidated, QoQ): Revenue at Rs 2.37 lakh crore vs Rs 2.25 lakh crore. Ebitda at Rs 42,536 crore vs Rs 40,656 crore . Margin at 18% vs 18.06%. Net profit at Rs 21,243 crore vs Rs 17,265 crore.
  • Tejas Network (Consolidated, YoY): Revenue up 343.29% at Rs 1,327 crore vs Rs 299 crore. Ebitda at Rs 306.5 crore vs loss of Rs 8.19 crore . Margin at 23.09% . Net profit at Rs 146.78 crore vs loss of Rs 11.47 crore .
  • Rallis India (Consolidated, YoY): Revenue down 16.64% at Rs 436 crore vs Rs 523 crore. Ebitda at Rs 6 crore vs loss of Rs 64 crore. Margin at 1.37%. Net loss at Rs 21 crore vs loss of Rs 69 crore. Board approved the dividend of Rs 2.5 per share.
  • Mahindra Logistics (Consolidated, YoY): Revenue up 14% at Rs 1,450 crore vs Rs 1,272 crore . Ebitda down 11.15% at Rs 56.61 crore vs Rs 63.72 crore . Margin down 110 bps at 3.9% vs 5% . Net loss at Rs 12.85 crore vs loss of Rs 0.82 crore . Recommended the final dividend of Rs. 2.50 per share. Approved re-appointment of Rampraveen Swaminathan as MD and CEO for 5 years effective Feb. 4, 2025.
  • Indian Overseas Bank will raise up to Rs 1,000 crore via debt and Rs 5,000 crore via equity.
  • Patel Engineering  board approved the opening of the QIP issue at a floor price of Rs 59.5 per share, which is a 10% discount to the current market price. The company may offer a discount of up to 5% on the floor price.
  • IndusInd Bank launched the pilot of programmable central bank digital currency in collaboration with Circularity Innovation Hub India.
  • Pantanjali Foods incorporated two wholly owned subsidiaries, Contemporary Agro and Rishikrishi Farming for Rs 20 lakh each.
  • HPL Electric and Power launched a new product, HPL Fans, in SAARC countries, the Middle East and African countries.


Nifty Overview & Outlook

Benchmark Nifty index opened with a gap on the higher side and settled higher at 22336 levels after adding 189 points to its previous closing values.

Small cap index outperformed the benchmark as it rose over 1% while Mid cap index was up 0.63% against 0.86% advances of frontline index.

All the sectoral indices tracked at NSE settled higher. Amongst them, Nifty PSU Bank and Consumer Durables index were at the top of the tally gained 3% and 2.5% respectively, while majority of sectoral indices were up nearly 1% each.

Going ahead, we expect markets to remain volatile amid geopolitical unrest in the Middle East; hence, suggest traders to keep check on leveraged positions. On levels front, 22400-22500 zones will act as the immediate resistance on the higher side whereas 21750-21630 will act as immediate support on the down side.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty, Banknifty and Finnifty futures with increase in open interest by 1%, 1.4% and 5% respectively.

Nifty, Banknifty and Finnifty futures have rolled 38%, 41% and 21% of open interest respectively into next contracts so far.

On options front, put writing was seen at multiple strikes and maximum positions are at 23000 CE closely followed by 22500 CE and 22000 PE closely followed by 22300 PE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 2915 Cr in the cash segment, bought stocks futures worth Rs 3415 Cr and sold index futures worth Rs 491 Cr. DIIs were net buyer in the cash segment to the tune of Rs 3543 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22500-22585; Supports 22260-22090

Banknifty – Resistances 48180-48440; Supports 47710-47400

Finnifty – Resistances 21480-21650; Supports 21210-21090


F&O Securities in Ban Today  – BIOCON, HINDCOPPER, IDEA, PEL,  SAIL, ZEEL.




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