Adani group entities rally, Analysts bullish on NTPC and more

Indian Markets:

• The domestic benchmark indices showed positive momentum for the second consecutive session on Monday, driven by expectations of progress in US debt-ceiling negotiations.
• The Nifty index surpassed the 18,300 level, recovering from an initial dip to 18,178.85.
• Despite opening lower due to mixed global cues, the indices quickly reversed course and traded in the green for the rest of the session.
• The market gains were widespread, with buying observed across various sectors, excluding banking.
• IT stocks experienced a rebound as investors sought bargains.
• Tech Mahindra, Wipro, TCS, HCL Technologies, and Infosys played a significant role in boosting the indices, recording gains of 3.03%, 2.50%, 2.37%, 2.18%, and 1.91% respectively.

Global Markets:

• European shares declined as investors awaited the outcome of debt ceiling talks in the U.S.
• Asian stocks closed higher on Monday after the Group of Seven summit in Hiroshima concluded and the Peoples Bank of China left its 1-year and 5-year loan prime rates unchanged.
• Federal leaders are expected to continue with negotiations on the U.S. debt ceiling on Monday as the country approaches a potential default. President Joe Biden and House Speaker Kevin McCarthy, R-Calif., are scheduled to meet in person at the White House. Treasury Secretary Janet Yellen has said the U.S. could default on its debt as early as June 1.

Stocks in Spotlight:

• NTPC saw a notable increase in its stock value, driven by a combination of attractive valuation and positive commentary from analysts. Investors were drawn to the company as it is anticipated to report a steady compounded annual growth in EPS of 7 percent from FY23 to FY25. Moreover, NTPC is poised to commission an impressive 27GW of power projects within the next 3 to 4 years
• Divi’s Laboratories was up turnaround in its stock performance, with a 5 percent gain, as investors responded favorably to the drugmaker’s latest quarterly earnings report. Initially, there were concerns weighing on the company’s shares, stemming from the higher base of COVID sales of Molnupiravir and increased input costs. As a result, Divi’s Laboratories witnessed a substantial 63.89 percent year-on-year decline in net profit for the January-March quarter, amounting to Rs 318.79 crore. However, the company’s sequential performance told a different story, as its non-COVID custom synthesis projects played a significant role in driving a noteworthy 2.53-percent increase in its bottom line. 
• Adani Group companies experienced a sustained rally in their stock prices on Monday, with all ten listed firms witnessing notable gains. Adani Enterprises, surged by nearly 19 percent, as investor confidence received a significant boost from the findings of a Supreme Court-appointed panel. The panel’s investigation concluded that there was no evidence of stock price manipulation within Adani Group companies. 

News from the IPO world🌐

• Vinsys raises pre-IPO funding at Rs. 200 crore valuation
• SEBI proposes to cut down IPO listing timeline to 3 days
• Crayons Advertising IPO opens today

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