SBI beats Q4 estimates, ITC posts impressive Q4 results

Indian Markets:

• Domestic equity benchmarks encountered moderate losses for the second consecutive day on Wednesday, primarily attributed to the prevailing weak global sentiment. 
• The cautious approach of investors was driven by concerns over a possible recession in the United States, which were further exacerbated by the ongoing impasse regarding the U.S. debt ceiling.
• While the automotive and FMCG sectors demonstrated resilience and performed well, the realty and IT sectors witnessed a decline, reflecting the impact of the overall market sentiment.

Global Markets:

• Markets in Europe and Asia were mixed on Wednesday as investors keep an eye on debt ceiling negotiations in the U.S.
• Japans economy grew 1.6% in the first quarter of the year on an annualized basis, economic data showed on Tuesday. Quarter-on-quarter, the economy grew 0.4%, also higher than forecasts to see 0.1% growth.
• US stocks declined on Tuesday with a disappointing forecast from Home Depot, mixed economic data and worries over the debt ceiling impasse keeping investors nervous.
• Treasury Secretary Janet Yellen on Tuesday warned that a US default on government debt would leave millions of Americans without income payments, potentially triggering a recession that destroys many American jobs and businesses.
• US retail sales rose by 0.4% in April after falling by a revised 0.7% in March.

Stocks in Spotlight:

• SBI exceeded analysts’ expectations by reporting an impressive 83% surge in net profit for the fourth quarter. This growth was driven by higher core income and reduced provisions. Additionally, SBI showcased effective management of non-performing assets (NPAs), with the net NPA declining to Rs 21,466 crore in the March quarter from Rs 27,965 crore previously
• ITC Ltd. reported a quarterly profit that surpassed analyst expectations, driven by the strong performance of its consumer goods and hotel divisions. The hotel vertical experienced a significant boost in revenue, nearly doubling to Rs 808.72 crore compared to the same period before the pandemic. This growth was attributed to the revival of leisure and business travel. Meanwhile, cigarette sales increased by 12.6% to Rs 8,082.26 crore, although the pace of revenue growth slowed compared to the previous quarter. 
• A consortium of private-equity firms, including Advent and General Atlantic, along with Jubilant Foodworks, the operator of Domino’s in India, are currently engaged in discussions to acquire Everstone’s complete stake in Restaurant Brands Asia. Restaurant Brands Asia operates various fast food chains, including Burger King. The proposed deal involves Everstone selling its stake in the Singapore-based holding company. 

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