STOCK MARKET TODAY: TOP 10 THINGS TO KNOW BEFORE THE MARKET OPENS

The benchmark Sensex and Nifty indices are likely to open on a strong note on May 6 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 112 points.

Equity markets closed lower on Friday, driven by profit-taking as Nifty 50 hit new highs. Heavyweights like RIL, L&T, and HDFC Bank declined, with FPIs selling off.

Nifty reached 22,476 from a peak of 22,795, down 172 points (0.76%). Sensex swung 1,627 points intraday, ending at 73,878, down 733 points (0.98%). Market cap dropped by Rs 2.5 trillion to Rs 406 trillion. Factors such as elections, US economic uncertainty, FPI selling, and earnings anxiety fuel market volatility, as India VIX rises for the seventh straight session, closing at 14.6, up 8.7%.

Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.

Gifty Nifty

Trends in the GIFT Nifty indicate a gap-up start for the broader index in India, with a gain of 112 points or 0.5 percent. The Nifty futures were trading around the 22,693 level.

Results on May 6

Lupin, Marico, Arvind, CarTrade Tech, CG Power and Industrial Solutions, DCM Shriram, Godrej Consumer Products, Gujarat Gas, Happiest Minds Technologies, Indian Bank, Route Mobile, and Suven Life Sciences will release March FY24 quarter earnings on May 6.

Key events

S&P Global and HSBC to release India Services PMI and Composite PMI for April; RBI Governor Shaktikanta Das to speak at the BIS Innovation Summit 2024

US Markets

Stocks soared Friday, led by tech, after a weak jobs report. Warren Buffett's imminent appearance and AI earnings add to the buzz. Nasdaq surged 2%, S&P 500 rallied 1.8%, and Dow Jones rose 1.2%. Small caps also climbed. Key indexes closed near or above their 50-day moving averages.

April's jobs report disappointed, fueling investor optimism. Powell's dovish remarks added to the bullish sentiment. Economic calendar light next week; earnings season heats up. Berkshire Hathaway, Palantir, and Arm among notable reports.

Asian Markets

Asian stocks hold steady as traders await China's return from holiday, with mainland markets expected to rise due to supportive policies from Beijing.

Australia's stock index rose following a 1.3% gain in the S&P 500 on Friday, driven by weaker-than-expected US jobs data, which reignited expectations of a Federal Reserve interest rate cut this year. Chinese shares on the Nasdaq surged 5.5% last week, while Japanese markets remained closed for a holiday.

Crude oil

Oil prices rose in early trading after Israel closed the Kerem Shalom humanitarian crossing into Gaza on Sunday, responding to a rocket barrage fired by Hamas. This incident poses a risk to ongoing hostage and cease-fire negotiations. Additionally, Saudi Arabia increased the price of crude sold to Asia in an effort to tighten the oil market. Traders are also keeping an eye on central bank meetings this week, particularly the Reserve Bank of Australia, expected to adopt a hawkish stance after last month's stronger-than-expected inflation data. Furthermore, upcoming Chinese activity data and inflation readings in key emerging markets are anticipated.

IIHL targets $50 billion valuation by 2030, expands para banking portfolio

IIHL, chaired by Ashoka Hinduja, aims for a $50 billion valuation by 2030, up 25% from earlier targets. Emphasising digitisation for value creation, Hinduja eyes expansion in the BFSI suite. Plans include acquisitions abroad, with due diligence underway for banks in Switzerland, Liechtenstein, Germany, and Luxembourg. Calls for policy reforms to boost remittances and engage overseas Indians in India's growth.

Kotak Mahindra Bank Q4 earnings

Private sector lender Kotak Mahindra Bank on May 4 reported a net profit of Rs 4,133 crore for the January-March quarter of the financial year 2023-24, up by 18 percent from Rs 3,496 crore reported in the corresponding quarter of last year. The lender's net interest income came at Rs 6,909 crore, up by 13 percent YoY from Rs 6,103 crore last year. The net interest margin (NIM) of the lender was at 5.28 percent for Q4FY24.

The GNPA of the lender stood at 1.39 percent versus 1.78 percent last year and NNPA was at 0.34 percent compared to 0.37 percent last year. The advances of the bank increased 20 percent YoY to Rs 3.91 lakh crore versus Rs 3.25 lakh crore last year. Average current deposits grew to Rs 60,160 crore for Q4FY24 compared to Rs 58,415 crore for Q4FY23 and average savings deposits grew to Rs 1.23 lakh crore compared to Rs 1.17 lakh crore. Lender's term deposit grew to Rs 2.24 lakh crore for Q4FY24 compared to Rs 1.66 lakh crore.

Regulatory action on Kotak Mahindra Bank's digital banking could cut FY25 profit by Rs 300-450 crore, says CEO Ashok Vaswani. However, he assures minimal impact on existing customers, who can still access loans and make deposits. The bank will pivot focus to deepen existing customer relationships through cross-selling, mitigating the challenges ahead.

FII and DII data

Foreign institutional investors (FIIs) net sold Rs 2,391.98 crore worth shares, while domestic institutional investors (DIIs) pumped in Rs 690.52 crore on May 3, provisional data from the NSE showed.

Stocks under F&O ban on NSE

The NSE has added Balrampur Chini Mills and GMR Airports Infrastructure to the F&O ban list for May 6, while retaining Aditya Birla Fashion & Retail, Biocon, and Vodafone Idea to the said list.

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2024-05-06T01:24:01Z dg43tfdfdgfd