Infosys Collaboration, Tata communication Earnings, Adani’s Joint Venture, Zee’s NSE Update, and ICICI Lombard’s Performance

Opening Bell: 

Gift Nifty is up by 19.0 points in the early morning trade, indicating a positive opening for Indian stock market

Asian markets saw a mixed performance after Wall Street experienced losses overnight. Japan’s Nikkei 225 dropped by 0.82%, and the Topix fell by 0.38%. South Korea’s Kospi surged by 1.04%, with the Kosdaq rising by 1.16%. Hong Kong’s Hang Seng index futures suggested a weaker start.

On Monday, US stocks ended the day significantly down, initially boosted by robust retail sales data before succumbing to heightened Treasury yields and apprehensions surrounding escalating geopolitical tensions between Iran and Israel. The Dow Jones Industrial Average dropped by 248.13 points, or 0.65 percent, closing at 37,735.11. The S&P 500 retreated by 61.59 points, or 1.20 percent, settling at 5,061.82, while the Nasdaq Composite slid by 290.07 points, or 1.79 percent, finishing at 15,885.02.

Stocks News:

👉 Infosys, India’s second-largest IT services company, has partnered with Proximus, Belgium’s top digital services provider, to collaborate on the ServiceNow platform. Infosys assisted Proximus in standardizing its processes on ServiceNow, thereby transforming its customer service management operations. Additionally, Infosys is set to announce its Q4 earnings today.

👉 Tata Communications, a Tata Group Company, reported a consolidated net profit of Rs 321.2 crore for the quarter ended March FY24, a 1.5% decrease from the previous year due to weak operating margin performance. However, revenue from operations grew by 24.6% year-over-year to Rs 5,691.7 crore for the quarter.     

👉 Adani Enterprises’ step-down subsidiary, Mumbai Travel Retail, has completed the incorporation process of a joint venture company (KPO), in Singapore with KING Power International Pte, Singapore. Mumbai Travel Retail will hold a 50% share capital in KPO for retail and wholesale business.

👉 Zee Entertainment Enterprises: On April 16, the National Stock Exchange announced the removal of the media and entertainment company from the futures and options segment, effective June 28. Existing unexpired contracts for April, May, and June 2024 will remain tradable until expiry, with new strikes introduced during these months. However, trading in ZEEL stock contracts will cease after June 28. Additionally, ZEEL has opted to withdraw its merger implementation application filed with the National Company Law Tribunal in Mumbai against Sony, following consultation with legal experts.

👉 ICICI Lombard General Insurance Company recorded a net profit of Rs 520 crore for the quarter ended March FY24, marking a 19% growth over the previous year. Gross direct premium income increased by 22% year-over-year to Rs 6,073 crore during the quarter, with the combined ratio improving to 102.2% in Q4 FY24 from 104.2% in Q4 FY23. Return on average equity (ROAE) stood at 17.8% in Q4 FY2024, compared to 17.2% in Q4 FY2023.

👉 Foreign institutional investors (FIIs) net sold shares worth Rs 4,468.09 crore, while domestic institutional investors (DIIs) purchased Rs 2,040.38 crore worth of stocks on April 16, provisional data from the NSE showed.

Domestic and International Events

• On April 16, the International Monetary Fund (IMF) revised India’s FY25 GDP growth forecast upward by 30 basis points to 6.8 percent from its previous January estimate of 6.5 percent. This adjustment is attributed to robust domestic demand conditions and a growing working-age population. India maintains its position as the world’s fastest-growing economy, surpassing China’s growth projection of 4.6 percent for the same period. For FY26, the IMF anticipates India’s GDP growth to be at 6.5 percent. Additionally, the global financial agency forecasts India’s retail inflation to be 4.6 percent in FY25 and 4.2 percent in FY26.

• India’s crude oil imports dropped 16% in the fiscal year ending March 31, driven by lower international prices. Despite stable import volumes, the country’s import bill decreased from USD 157.5 billion to USD 132.4 billion. However, India’s dependency on overseas suppliers rose to a record high of 87.7%, up from 87.4% the previous year, as domestic production remained stagnant at 29.4 million tonnes.

• Following a selloff, US bonds experienced a rebound, leading to a decline in Treasury yields. The 10-year Treasury yields retreated by 8 basis points (bps) to 4.58%, while the two-year yields fell even lower, dipping below the 5% threshold.

• Crude oil prices rose on Thursday, paring the previous session’s 3% losses, after the US said it would reinstate oil sanctions on Venezuela, Reuters reported. Brent futures gained 0.11% to $87.39 a barrel, while US crude futures traded 0.01% higher at $82.70 a barrel.