Weekly Trading Diary: 2nd to 6th May 2022

A thread for discussing all your trades, strategies, ideas, news, stories, etc.

A look back at the market performance in the previous week:

Markets continued to remain volatile in the previous week, with both Sensex and Nifty ending up in losses for third successive week. Markets around world remained weak as well, US benchmarks being the worst hit.

Here’s how the sectoral indices fared in the week ended April 29:

Things to watch out for in the coming week

All eyes in the coming week will be on the LIC IPO. The much awaited IPO finally opens for subscription on 4th May and closes on 9th May.

Period Price Range Minimum Bid Quantity
LIC 4th to 9th May Rs. 902 - 949 15 and in multiples thereof

At Rs. 21,000 crore the LIC IPO is the largest ever in India:

You can check out more details on the LIC IPO here:

Earnings to watch out for:

2nd May 3rd May 4th May 5th May 6th May 7th May
Alembic Pharmaceuticals Adani Enterprises ABB India CEAT Canara Bank Navin Fluorine
Britannia Industries Godrej Properties Deepak Nitrite Cholamandalam Investment Finance Federal Bank
Castrol India Hero MotoCorp EIH Ltd. Dabur Tata Power
HDFC Ltd. JSW Energy Havells India Exide Industries
IDBI Bank Tata Steel Kotak Mahindra Bank Indus Towers
M&M Financial Services Titan OFSS Marico
Mahindra Holiday and Resorts Network 18 Tata Consumer Products Procter & Gamble Health
Devyani International TV18 Broadcast Adani Green Energy TVS Motors
Adani Total Gas Voltas
Adani Transmission
Happiest Minds

Key Macroeconomic events around the world:

Globally, focus will be on Fed interest rate decision, which is scheduled on Wednesday, 4th May.

2nd May 3rd May 4th May 5th May 6th May
US ISM Manufacturing PMI (APR) Eurozone Unemployment Rate Eurozone Services PMI (APR) UK BoE Interest Rate Decision Japan CPI Inflation (APR)
Eurozone Manufacturing PMI (APR) UK Manufactuing PMI (APR) Markit Composite PMI (APR) Services PMI (APR) US Nonfarm Payrolls
US Fed Interest Rate Decision Composite PMI (APR) Unemployment Rate (APR)
Nonfarm Employment Change (APR) US POMC Press Conference
Services PMI (APR) Jobless Claims
Markit Composite PMI (APR)
Crude Oil Investories

What are you looking forward to in the coming week? Join the discussion below :point_down:


Nifty and Sensex rebounded from early morning lows but closed another day in red. US futures are trading higher, indicating a positive opening for US markets.

:oil_drum: Brent Crude: 104.56 -1.81%
:heavy_dollar_sign: USD INR Spot: 76.515 +0.12%
:scroll: India 10Y Bond yield: 7.118 -0.29%

On the sectoral front, Nifty IT and Auto indexes were the top draggers for the day. IT index was down by 1.53% while Auto, 1.26%. Nifty Metal was the top gainer, up by around half a percent.

Amongst the F&O stocks

:chart_with_upwards_trend: Tata Chemicals was the top gainer.

:chart_with_downwards_trend: Dixon Technologies was the top loser.

:page_with_curl: Earnings Update:

HDFC: Net Profit: Rs. 3,700 cr :arrow_up: 16.36% YoY; Net Interest Income: Rs. 4,601 cr :arrow_up: 14% YoY.

IDBI Bank: Net Profit: Rs 6,90.6 cr :arrow_up: 34.8 % YoY; Net Interest Income : Rs. 2,420.5 cr :arrow_down: 25.3% YoY.

Britannia: Net Profit: Rs 378 cr :arrow_up: 5% YoY; Revenue: Rs. 3,550.5 cr :arrow_up: 13.4% YoY.

:newspaper: In the news

The monthly collection under the GST has peaked to an all-time high of Rs. 1.68 lakh crore in April 2022, according to a statement by the Finance Ministry.

ISMC, a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel’s Tower Semiconductor, has announced that it has signed MoU with the Karnataka government to set up a semiconductor chip manufacturing plant and will invest up to $3bn for its chip manufacturing facility.

The Manufacturing PMI compiled by S&P Global, improved to 54.7 in April from 54.0 in March as factory activity in India picked up last month, bolstered by increase in demand as pandemic restrictions were eased, but rising energy prices pushed input costs to a five-month high.

:earth_americas: Around the World

The dollar rose back towards a 20-year high on Monday as the Euro struggled around the $1.05 mark, with investors preparing for a busy week of central bank meetings including a likely Federal Reserve interest rate hike.

Australian bonds sold off as investors anticipate the nation’s central bank will raise interest rates on Tuesday for the first time since 2010. Yields on benchmark 10-year government notes jumped 14 basis points to 3.26%, the highest since November 2014.

Eurozone manufacturing output growth stalled last month as factories struggled to source raw materials while demand took a knock from steep price increases and fears about the economic outlook, a survey showed.

What is it going to be about ?

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Benchmark indices plunged more than 2.2% following the surprise repo rate hike by the RBI at an unscheduled meeting. US markets look set for a good start.

:oil_drum: Brent Crude: 108.91 2.92%
:heavy_dollar_sign: USD INR Spot: 76.4125 -0.13%
:scroll: India 10Y Bond yield: 7.378 3.64%

All sectoral indices finished the day in red. Nifty Media index tumbled the most, falling over 4%, followed by the Nifty Realty and Metal indexes, both dropping more than 3%.

Amongst the F&O stocks

:chart_with_upwards_trend: Rain Industries was the top gainer.

:chart_with_downwards_trend: Alembic Pharma was the top loser.

:page_with_curl: Earnings Update:

Kotak Mahindra Bank: Net Profit: Rs. 3,892 cr :arrow_up: 50% YoY; Net Interest Income: Rs. 4,521 cr :arrow_up: 18% YoY.

Tata Steel : Net Profit: Rs 9756 cr :arrow_up: 46.8 % YoY; Revenue : Rs. 69323.5 cr :arrow_up: 38.6% YoY.

Hero Motocorp: Net Profit: Rs 621 cr :arrow_down: 30 % YoY; Total Sales: 11.9 Units :arrow_down: 24% YoY.

Titan : Net Profit: Rs. 491 cr :arrow_down: 7.18% YoY; Revenue: Rs. 6749 cr :arrow_down: 3.46% YoY

:newspaper: In the news

RBI Governor Shaktikanta Das announced a 40-basis-point hike in the key lending rate and raised the cash reserve ratio (CRR) by 50 basis points in an unscheduled announcement on May 4. The revised repo rate now stands at 4.40 percent and the CRR at 4.5%.

India’s merchandise exports in April grew 24.2 % YOY to their 3rd highest level of $38.2 billion on the back of higher commodity prices amid the ongoing Russia-Ukraine war. Imports in April surged 26.6% to $58.3 billion, leading to a trade deficit of $20.1 billion during the month.

UPL announced its acquisition of OptiCHOS, a naturally derived fungicide for its Natural Plant Protection (NPP) business unit, whose NPP portfolio houses natural and biologically derived agricultural inputs and technologies.

:earth_americas: Around the World

The European Union’s chief executive on Wednesday proposed a phased oil embargo on Russia, sanctions on its top bank, and a ban on Russian broadcasters from European airwaves in its toughest measures against Moscow.

Iceland’s central bank increased the seven-day term deposit rate by 100 bps to 3.75% delivered. Its biggest hike since the 2008 financial crisis to try to curb inflation and rein in Europe’s fastest house-price rally.

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Nifty and Sensex erased gains and closed flat in a choppy session following the weakness in global markets. Dow and Nasdaq futures indicate a weak opening for US markets.

:oil_drum: Brent Crude: 110.98 0.82%
:heavy_dollar_sign: USD INR Spot: 76.255 -0.21%
:scroll: India 10Y Bond yield: 7.403 0.34%

Nifty IT was the top gainer for the day, up by 2.07%, while Nifty Realty was the top loser, down 1.62%.

Amongst the F&O stocks

:chart_with_upwards_trend: ABB was the top gainer.

:chart_with_downwards_trend: Intellect Design Arena was the top loser.

:page_with_curl: Earnings Update:

Dabur: Net Profit: Rs. 294.3 cr :arrow_down: 22% YoY; Revenue: Rs. 2,517.8 cr :arrow_up: 7.8% YoY.

Marico: Net Profit: Rs. 257 cr :arrow_up: 13.2% YoY; Revenue: Rs. 2,161 cr :arrow_up: 7.4% YoY.

Adani Power: Net Profit: Rs. 4,645 cr against 13 cr profit YoY; Revenue : 13,308 cr :arrow_up: 93% YoY.

Exide: Net Profit: Rs. 271.1cr :arrow_down: 17.8% YoY; Revenue: Rs. 3,408.6 cr :arrow_up: 16% YoY

TVS Motor: Net Profit: Rs 274.5 cr :arrow_down: 5.1% YoY; Revenue: Rs. 5,530.3 cr :arrow_up: 3.9% YoY.

:newspaper: In the news

Activity in India’s services sector grew at its fastest pace in five months in April on strong demand. The S&P Global India Services PMI rose to 57.9 in April from 53.6 in March, its highest since November.

Automobile retail sales in India increased by 37% in April on a low base of COVID-hit April last year, as per automobile dealers body FADA. Total sales across categories rose to 16,27,975 units in April, as compared to 11,87,771 units in the year-ago period.

L&T’s railways business bags bullet train project in the range of ₹2,500-5,000 cr from National High-speed Rail Corporation.

:earth_americas: Around the World

The Federal Reserve delivered the biggest interest-rate increase since 2000 and signaled it would keep hiking at that pace over the next couple of meetings, unleashing the most aggressive policy action in decades to combat soaring inflation.

Global steel giant ArcelorMittal on Thursday posted 80.52% growth in net income at $4,125mn for the first quarter ended March 31, 2022. It had posted a net income of $2,285mn for the year-ago quarter.

The Bank of England hiked interest rates to 1%, the highest since the financial crisis and warned the economy is on course to shrink under pressure from double-digit inflation.

Hong Kong’s retail sales plummeted 13.8% in March, the first back-to-back contraction in more than a year.

Turkey’s inflation accelerates to 70% in April driven by a rally in global energy prices and domestic food costs.

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Benchmark indices tanked by over 1.5% amid a sell-off in markets around the world. US markets are staring at another negative opening, extending on yesterday’s brutal sell-off.

:oil_drum: Brent Crude: 113.24 +2.05%
:heavy_dollar_sign: USD INR Spot: 76.915 +0.87%
:scroll: India 10Y Bond yield: 7.451 +0.65%

Apart from Nifty Energy index closing marginally in gains, all other sectoral indices ended the day lower. Nifty Realty was the top loser, down by 3.56% followed by IT and Metals, each down by over 2%.

Amongst the F&O stocks

:chart_with_upwards_trend: Tata Communications was the top gainer.

:chart_with_downwards_trend: Cholamandalam Investment Finance was the top loser.

:page_with_curl: Earnings Update:

Canara Bank: Net Profit: Rs. 1,666.2 cr :arrow_up: 64.9% YoY; Net Interest Income: Rs. 7,005 cr :arrow_up: 24.84% YoY.

Federal Bank: Net Profit: Rs. 540.54 cr :arrow_up: 13.13% YoY; Net Interest Income: Rs. 1,525.21 cr :arrow_up: 7.38% YoY.

:newspaper: In the news

Larsen & Toubro L&T announced the merger of its two software companies, L&T Infotech and Mindtree.The name of the combined entity will be “LTIMindtree”.

Gross revenue of telecom service providers declined by 2.64% to Rs 69,695 cr in Dec 21 quarter as per latest TRAI data. AGR, on which the govt. charges various levies, increased by 15.81% to Rs 55,151 cr in the Dec 21 quarter from Rs 47,623 cr in the corresponding quarter of 2020

ONGC has won 18 out of the 21 areas offered for finding and producing oil and gas in the sixth bid round under Open Acreage Licensing Policy, according to the upstream regulator DGH.

:earth_americas: Around the World

The U.S. dollar hit 20-year highs and world stocks fell towards their lowest in over a year on Friday as markets anticipated more U.S. interest rate rises, while Asian stocks fell on worries about the hit to growth from China’s zero-COVID policy.

ECB Governing Council member Francois Villeroy de Galhau said interest rates may be raised back above zero this year if the euro-zone economy doesn’t suffer another setback.

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usa bond armaggedon

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usa online retail massacre :expressionless:

indian govt 10 year bond securities reached highest yield :melting_face:
FII dont believe govt tax defecits ,corp profits under infaltion .
they are selling rupee, govt bonds and stocks. Domestic investment can not match outgo.