RBI lifts restrictions on Bajaj Finance's eCOM, online digital ‘Insta EMI Card’ with immediate effect : Daily Market Update - 3 May 2024 | Globe Capital Market LTD.
03-May-2024
RBI lifts restrictions on Bajaj Finance’s eCOM, online digital ‘Insta EMI Card’ with immediate effect : Daily Market Update – 3 May 2024

The Reserve Bank of India (RBI) has lifted the restrictions on Bajaj Finance's two products eCOM and online digital ‘Insta EMI Card’, with immediate effect, company said in an exchange filing on May 2. The company further said that it would now resume sanction and disbursal of loans in the above two business segments including issuance of EMI cards.

Overview and Outlook

Global Stock Market Today

  • US equity markets were up nearly 1%.
  • Barring FTSE, other European equity markets ended on a flat to negative note.
  • Asian equity markets are trading on a mix note.
  • GIFT Nifty is up by 100 points, Nifty futures likely to open around 22900 levels (as on 8:30AM).

 

News highlights from across the globe

  • Majority of equity benchmarks in Asia-Pacific are trading higher tracking Wall Street as investors shift their focus to US employment report release after Federal Reserve’s policy meet.
  • US employment data will be crucial as it’ll provide insight into the job market, which has been resilient, defying decade high interest rates.
  • The world’s biggest technology companies drove a rebound in US stocks ahead of Apple Inc.’s earnings, with Wall Street also gearing up for Friday’s jobs report.

 

Important news updates from the domestic front

  • Coal India – (Consolidated, YoY) Revenue down 1.95% at Rs 37,410 crore vs Rs 38,152 crore. Ebitda up 21.47% at Rs 11,338 crore vs Rs 9,333 crore . Margin up 584 bps at 30.3% vs 24.46%. Net profit up 25.78% at Rs 8,640 crore vs Rs 6,869 crore. Board recommends final dividend of Rs 5 per share.
  • Coforge – (Consolidated, QOQ) Revenue up 1.51% at Rs 2,358 crore vs Rs 2,323 crore. EBIT down 4.1% at Rs 301 crore vs Rs 314 crore . EBIT down 74 bps margin at 12.76% vs 13.51%. Net profit down 5.6% at Rs 229 crore vs Rs 243 crore. Board approved fourth interim dividend of Rs 19 per share. Signs share purchase agreement to acquire up to 54% stake in Cigniti Tech.
  • KEI Industries – (Consolidated, YoY) Revenue up 18.76% at Rs 2319 crore vs Rs 1953 crore. Ebitda up 20.96% at Rs 245 crore vs Rs 202 crore. Margin up 19 bps at 10.54% vs 10.35%. Net profit up 22% at Rs 168 crore vs Rs 138.09 crore.
  • Bajaj Finance: The Reserve Bank of India lifted restrictions on the company’s eCOM and online digital Insta EMI Card products with immediate effect.
  • Adani Energy is in a pact with Windson Project to acquire Pointleap Projects for Rs 13.15 crore.
  • Mazagon Dock Shipbuilders received an international shipbuilding order worth $42 million to construct three hybrid-powered vessels.
  • Hindustan Unilever: HUL appointed Vipul Mathur as Executive Director, Personal Care, effective June 1.
  • Wipro will implement Wipro’s Medicare Prescription Payment Plan platform for the upcoming open enrollment period.
  • Birla Corporation approved the restructuring of the scope of the second phase expansion of the existing capacity of the grinding cement plant in Uttar Pradesh. The expansion will feature an investment of Rs 425 crore.
  • KEI Industries partnered with BRUGG to produce EHV cables up to 400 kV.

 

Nifty Overview & Outlook

Benchmark Nifty index settled on a flat to positive note at 22648 levels after a lackluster trading session.

Midcap index outperformed the benchmark as it was up over 0.5% while Small cap index traded in line with the benchmark, settled on a flat to positive note; resultant, flat market breadth.

Performance on the sectoral front was mix. Nifty Auto and Metal index were at the top of the tally as both the indices gained over 1% each followed by Nifty FMCG, Pharma and Oil & Gas indices that settled higher in range 0.5% to 0.80%. On the other hand, Media index was the top loser, down over 1.5%.

Technically, Nifty index is trading in a upward sloping channel for past couple of weeks. On levels front, support is placed around 22200 levels and resistance is at 22800 levels.

 

Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty, Banknifty and Finnifty futures on the price front, whereas on open interest front, Nifty and Finnifty futures added around 2.5% & 13% of open interest respectively and Banknifty futures shed around 3% of open interest.

Majority of sectoral indices settled higher. Amongst them, FMCG, Metal and Oil & Gas index witnessed maximum addition of long positions. Some short buildup was seen among Media stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 22700 CE and 22700 PE. Banknifty has maximum positions at 49000 PE and 49500 CE with fresh writing on the both sides, indicating a muted session.

 

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 964 Cr in the cash segment, bought stocks futures worth Rs 5163 Cr and also bought index futures worth Rs 364 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1352 Cr.

 

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22820-22950; Supports 22550-22500

Banknifty – Resistances 49700-50060; Supports 49080-48700

Finnifty – Resistances 21900-22020; Supports 21600-21480

 

F&O Securities in Ban Today – BIOCON, IDEA, ABFRL.

Important Results Today– ADANIGREEN, AARTIDRUGS, BRITANNIA, GODREJPROP, MRPL, RAYMOND

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