Daily Market Update- Equity 26 May 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 26 May 2023

US economic growth in the first three months of the year was faster than previously estimated

Overview and Outlook

Global Market Update

  • US equity markets ended mix, Nasdaq was up 1.71% while Dow Jones ended on flat to negative note
  • European equity markets were down in range 0.31 to 0.74%
  • Asian equity markets are trading in mix
  • SGX Nifty is trading down by 40 points (as on 8:30AM)


News highlights from across the globe

  • US economic growth in the first three months of the year was faster than previously estimated the Commerce Department reported on Thursday. GDP, the broadest measure of economic output, increased at an annualized rate of 1.3% in the first quarter, up from an initial estimate of 1.1% reported last month.
  • Asian markets are likely to find some support from signs of progress in debt-ceiling talks and gains in U.S. equities with a frenzy of interest in the artificial intelligence sector.
  • Fitch Ratings warned that the US’s AAA rating is under threat, though it still expects politicians will reach an agreement before time runs out.
  • The yield on 10-year treasuries in the U.S. was trading at 3.81%. Crude was trading above $76-mark


Important news updates from the domestic front

  • Reliance Industries: Step-down FMCG subsidiary Reliance Consumer Products completed the acquisition of 51% controlling stake in Lotus Chocolates for an aggregate consideration of Rs 74 crore and subscribed to non-cumulative redeemable preference shares of the company for Rs 25 crore.
  • Praj Industries: The board approved forming a 50:50 joint venture with Indian Oil Corporation to set up biofuel production facilities and market CBG, Ethanol, SAF and various coproducts and intermediates.
  • Vedanta: Cairn Oil & Gas announced reserves and resources portfolio crossed 1.1 billion barrels of oil equivalent.
  • Tata Power: Life Insurance Corporation of India has increased its stake in the company to 7.94% from 5.91%.
  • Bata India: Life Insurance Corporation of India has increased its stake in the company to 6.53% from 4.5%.
  • Page Industries: Q4 FY23 (Consolidated, YoY) Revenue down 12.78% at Rs 969.09 crore, Ebitda down 49.71% at Rs 134.33 crore, Ebitda margin at 13.86% vs 24.04%, Net profit down 58.88% at Rs 78.35 crore, The board approved a fourth interim dividend of Rs 60 per share.
  • Gujarat State Fertilizers & Chemicals: Q4 FY23 (Consolidated, YoY) Revenue up 17.15% at Rs 2,383.87 crore, Ebitda down 22.19% at Rs 326.10 crore, Ebitda margin at 13.68% vs 20.6%, Net profit down 21.26% at Rs 224.91 crore. The company announced a dividend of Rs 10 per share.


Nifty Overview & Outlook

The benchmark Nifty index rebounded smartly from days’ low after two days of decline and settled on a flat to positive note at 18321 levels after adding 35 points to its previous closing values after a highly volatile trading session on monthly expiry day.

Mid-cap index outperformed the benchmark as it was up by 0.69% while Small cap index ended on a flat note. The market breadth was slightly tilted towards the advancing side.

Majority of sectoral indices tracked at NSE settled higher. Amongst them, Nifty Realty was the top performer, up over 1% followed by FMCG index that rose 0.61%. On the other hand, Nifty PSU Bank witnessed some selling pressure, settled lower by 0.45%.

Going ahead, we reiterate our sideways view on the Nifty index till it is trading in 18050-18450 range. Either side break from this range will set the tone for the next directional move in that direction.


Derivatives Overview & Outlook

Yesterday, Nifty & Banknifty futures remained almost unchanged on the price front and shed around 32% of open interest each as long unwinding on expiry day.

Nifty futures rolled 70% into next contracts which were slightly higher than the previous month rollovers of 64% whereas Banknifty futures rolled 78% of open interest into next contracts which were slightly lower than the previous month rollover of 81%.

On options front, Nifty will start the new weekly contract with maximum positions at 18300 PE and 18200 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 589 Cr in the cash segment, sold stocks futures worth Rs 582 Cr and also sold index futures worth Rs 988 Cr. DIIs were net buyers in the cash segment to the tune of Rs 338 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18430-18500; Supports 18250-18125

Banknifty – Resistances 44150-44450; Supports 43700-43400


Important Results: Oil and Natural Gas Corporation, Mahindra & Mahindra, Samvardhana Motherson International, Sun Pharmaceutical Industries, Bharat Heavy Electricals, Chambal Fertilisers & Chemicals, BEML, Maharashtra Seamless, Power Mech Projects, City Union Bank, TCI Express, Indigo Paints, , Sunteck Realty, Nucleus Software Exports, Info Edge (India), NCC, Nexus Select Trust, Optiemus Infracom, PNC Infratech, Polo Queen Industrial and Fintech, Precision Camshafts, Primo Chemicals, Puravankara, Shree Renuka Sugars, Repco Home Finance, Savita Oil Technologies, Steel Strips Wheels, Styrenix Performance Materials, Supriya Lifescience, TCPL Packaging, Tide Water Oil (India), Vidhi Specialty Food Ingredients,


Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, ICEX and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.