Adani Enterprises, Adani Ports and SEZ, L&T, Axis Bank, and Maruti Suzuki India are the top gainers on NSE Nifty 50 wheeas the top laggards include Sun Pharma, Power Grid Corp, Hindalco, Coal India and NTPC.

Motilal Oswal retains its FY25/FY26 estimates, valuing Sun Pharma at 30x 12-month forward earnings to arrive at a target price of INR 1,810. 

The brokerage expects an 18% earnings CAGR over FY24-26, driven by a 12-13% sales CAGR in the Domestic Formulation (DF), Emerging Markets (EM), and ROW markets, a 9% sales CAGR in the US market, and a 220 basis points margin expansion.

According to a report by Motilal Oswal, Sun Pharma reported a slight miss at the operational level for Q4FY24 due to lower-than-expected sales in the ROW market and higher-than-expected operating expenses for the quarter. 

Despite this, Sun Pharma surpassed USD 1 billion in sales in the global specialty segment for FY24, compared to USD 430 million in FY20, supported by enhanced product offerings and marketing activities in regulated markets.

The target action date of July 2024 for Deuruxolitinib is a key near-term trigger. Additionally, Sun Pharma has consistently outperformed the branded generics markets, providing healthy visibility for better earnings prospects.

“A 1000 points rally from 21800 levels as shorts get squeezed out of the system as FIIs positioning in long: short ratio bounces from 26% longs. Nifty futures witnessed 2.5% fresh longs on an intraday basis today till now. Nifty manages to cross crucial resistance of 22800+ levels at the back of weekly expiry today and can head towards the 23000 mark by the month-end expiry from current levels. Aggressive put options writing can be seen from the base of 22500 PE to all the way till 22800 PE forming a strong support base at 22600/22700 levels now,” said Soni Patnaik, Assistant Vice President of Equity Derivatives Research at JM Financial Services.

USDINR CMP- 83.29 (spot)

Commening on the dollar rupee outlook Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas said that Indian Rupee gained by 0.03% today on positive domestic markets and a decline in crude oil prices. However, overnight gains in the US Dollar and FII outflows capped sharp gains. US Dollar rose on hawkish FOMC meeting minutes. FOMC minutes showed that many members called for higher for longer rate regime and some of them questioned whether the rates were restrictive enough.

Choudhary also added that We expect Rupee to trade with a slight negative bias on weak global markets amid hawkish FOMC meeting minutes and expectations of a recovery in the US Dollar. FII outflows may also weigh on the Rupee. However, positive tone in the domestic markets and weak crude oil prices may support the Rupee at lower levels. Upbeat PMI data from Europe and UK may favour the Euro and Pound, which may limit sharp upside in the greenback. Traders may take cues from weekly unemployment claims, official PMI data and new home sales data from US. USDINR spot price is expected to trade in a range of Rs 83.10 to Rs 83.55.

“The Nifty hitting a new record is the market’s message of political stability after the elections. The rally is healthy since it is led by fairly valued largecaps,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The NSE Nifty 50 rose above 22,850 for the first time, touching an all-time high of 22,852.

By Santosh Meena, Head of Research at Swastika Investmart:

The Nifty index has surged to a record high after the Reserve Bank of India (RBI) announced a substantial ₹2.1 lakh crore dividend to the government. This development is a significant macroeconomic positive for the market, with direct implications for the fiscal deficit and bond yields.

The infusion of funds is akin to an indirect rate cut for the economy, as it is expected to lead to a reduction in bond yields. Since many investment instruments are linked to government bond yields, this reduction will likely have a broad positive impact across the financial markets. The improved fiscal position could also prompt upgrades in India’s economic outlook.

In the current market scenario, Foreign Institutional Investors (FIIs) have been net short, but the market is experiencing a short-covering rally that appears to have further momentum. Despite continuous selling by FIIs in the cash market, there is now an anticipation that they may shift to buying, which would provide additional support to the market.

Looking ahead, the Nifty index may witness further expansion. An immediate target of 23,000 is in sight, with the possibility of reaching 24,000 as the election outcome approaches. However, while large-cap stocks are expected to perform well, mid-cap and small-cap stocks may underperform from this point forward.

Courtesy: NSE

Axis Bank, Adani Enterprises, L&T, IndusInd Bank, and Eicher Motors were the top gainers in the Nifty 50. While Power Grid, Sun Pharma, Hindalco, Coal India, and Grasim Industries were the major losers in the Nifty 50 on May 23 during afternoon trade.

The NSE Nifty 50 was up 162.65 points or 0.72% at 22,760.45, while the BSE Sensex was up 542 points or 0.73% at 74,763.

The shares of Sun Pharma plunged over 4% in the early trading session on Thursday, despite the company reporting a 34% jump in net profit year-on-year in Q4FY24 on Wednesday. The share price of Sun Pharma slipped 4.69% to an intra-day low of Rs 1,467 on the NSE.

Courtesy: BSE

Jubilant FoodWorks’ share price surged over 4% in the early trading session on Thursday, following the company’s report of a seven-fold jump in net profit in the Q4 results year-on-year. The shares soared as much as 4.53%, reaching an intraday high of Rs 502.4 per share on the NSE.

Courtesy: NSE

Larsen & Toubro, Axis Bank, BPCL, ONGC, and Apollo Hospitals are the top gainers on NSE Nifty 50 index whereas the top laggards include Su Pharma, Powe Grid Corp, JSW Steel, Hindalco Industries, Grasim.

The broader index Nifty Midcap 100 touched its all-time high of 52,448.95 during the early trading hours.

The NSE Nifty 50 opened 0.02% lower at 22,593.85, while the BSE Sensex closed 0.03% lower at 74,198.28.

“On the daily charts, we can observe that the Nifty is steadily inching higher and has closed with gains for the fifth consecutive trading session. The Nifty has been able to hold on to the gains on account of sector rotation. Today it was FMCG, and Pharma that helped the Index. Overall, the index is steadily inching higher towards the previous all-time high of 22795. Intraday dips should be bought into one should keep a trailing stoploss of 22450 for the long positions,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.

Foreign institutional investors (FII) sold shares net worth Rs 686.04 crore. However, domestic institutional investors (DII) bought shares net worth Rs 961.91 crore on May 22, 2024, according to the provisional data available on the NSE.

WTI crude prices were trading at $76.95 down by 0.80%, while Brent crude prices were trading at $81.25 down by 0.78%, on Thursday morning.

“Gold may trade with a bearish bias on hawkish FOMC minutes; however, it is to be noted that the FOMC meeting happened before the release of the US data like nonfarm payroll, ISM services, retail sales, etc. All these data were underwhelming; thus, the impact of minutes may not last long,” said Praveen Singh, Associate Vice President of Fundamental Currencies and Commodities at Sharekhan by BNP Paribas.

The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, traded flat, 0.01% at 104.90.

The Wall Street or US market fell as soon as the Fed released minutes of the latest policy meeting, which showed Fed officials were disappointed with recent US inflation data. The Dow Jones Industrial Average dropped 201.95 points or 0.51% to 39,671.04. The S&P 500 fell 14.4 points or 0.27% to 5,307.01. The tech-heavy Nasdaq Composite pulled back 31.08 points or 0.18% to 16,801.54.