MarketBuzz
1250: Marketbuzz Podcast With Hormaz Fatakia: Tata Motors, Eicher, Piramal Pharma in focus
Good morning and welcome to CNVCTV18's Market Bus Podcast. I am Harmas Patakya and it is the start of a brand new week and with earning season drawing to a close, the focus will slowly shift back to the Lok Sabha elections and its potential outcome. Not that it already isn't to begin with considering how the market has moved over the last 7-10 days, but there will be a greater focus as June 4 draws closer. And speaking of the Lok Sabha elections, voting for 96 Lok Sabha seats across 10 states and union directories has begun in the 4th phase of polling. All 25 seats of Andhra Pradesh and 17 in Telangana are going to polls today, along with some other seats in West Bengal, Maharashtra, Madhya Pradesh, Bihar and other areas. So, people in this region who are tuning in do head to the polling station to exercise your franchise. Back to the markets then and after 5 days of losses during which the Nifty shaved off nearly 700 points, it needed some relief at lower levels which it did get on Friday. Although there was no relief rally of sorts, the index ending just 100 points higher was enough considering the week that we had ahead of Friday. Yet the Nifty was down 2% on a weekly basis marking its worst performance in 2 months. However, one must note that Friday's move cannot be called a reversal of the trend by any means. Analysts say that the index still faces some resistance between 20 to 150 and 20 to 200. And if these levels are crossed, then the 50-day moving average of 20 to 300 will act as a barrier. The Nifty saw some relief, but the Nifty bank had no resemblance of relief whatsoever. It ended lower on Friday as well after opening higher faced resistance at higher levels and then sold off to end in the red. Now for the week, the Nifty bank was down 3% and that should be kept on the radar today as well. The other two factors that are keeping the market on the edge are consistent FII selling. Foreign investors dumped shares with over $2 billion or 21,000 crore rupees last week. Now DIIs have tried offsetting as much of the selling pressure as possible as was evident from the domestic SIP figures last week which crossed the 20,000 crore rupee mark for the first time ever. And second is the weeks which rose for the 12th straight day on Friday ending near levels of 18 and a half. And the weeks had seen levels like these last in October of 2022. My colleague Nigel DeSouza has drawn parallels to the current search in the weeks with that in 2019. And you can view that on our social media platforms. In some keystops that you need to focus on today, Tara Motors provided cautious commentary at its earnings call with a muted outlook. The biggest negative here is the fact that the EBIT margin guidance for JLR is flat for FY25 and that may happen due to higher marketing spends. However, the company maintained its FY26 guidance of 10% margins for JLR and its FY25 guidance to be debt-free for JLR. The management also expects this April to June period which is the first quarter of FY25 to be week. Brokerages have price targets ranging between 1100 rupees to 1250 rupees on Tara Motors post its earnings with no significant upgrades or downgrades coming in there. Now no surprises also from Eissher Motors on the earnings front but the operational performance was strong and that was on expected lines. Revenue was the highest ever in the fourth quarter while margins were also at a multi-quarter high. Now barring Jeffries, most brokerage is remaining neutral to underweight on Eissher Motors and that is due to expensive valuations and fears of moderating volume growth due to increased competition. ABB India's results were well above expectations with revenue growth of close to 30% and order inflow increasing by 15% from last year. Jeffries has raised its price target on ABB India to 8845 rupees and expects order inflow to increase further after the elections are over. Now Parable Pharma will be the one to watch out for this morning because its net profit doubled from last year. Margins also expanded by nearly 500 basis points and the company said that its saw increased order inflows amidst a difficult biotech funding environment. There has also been debt reduction at the company with net debt to ABBita now at 2.9 times from 5.6 times at the start of FY24. The CLSA has upgraded Dr. Lal pathlabs to outperform with a price target of 25.90 and they are saying that the Swastvith bundle test and the Pananda expansion should drive growth going forward for the company. But on the flip side, Goldman Sachs has accelerating on the stock saying that the emergence of competition in key regions for the company has led to a structural volume decline. Now plenty of other earnings reactions as well. Today there were a lot of them that came out on Friday evening and over the weekend as well. Bank of India, Bank of Baroda, ITDC, VIP Industries, RT Industries, Newland Laboratories, Thermax and so many more and we will keep an eye out on all of these result reactions today. While we do not have any nifty earnings today, we will see stocks like UPL which is the recent nifty exclusion along with JSPL, Zomato, Varun Beverages that will be reporting results today. The handover from Wall Street is relatively positive from Friday night but then that has been the case for most of last week and something that our own markets have failed to capitalize on. The Dow had its best week of 2024 having gained for the 8th straight day on Friday. The Asian markets have opened mixed after China's CPI data came in marginally higher than expected. The gift nifty as we speak is indicating a slightly negative start for our own markets. That's all for today. We wish you a happy day of trade and for the best market insights. Stay tuned to CMBCTV18 and CMBCTV18.com and of course, don't forget to vote. [BLANK_AUDIO]