According to a recent report from Elara Securities on Maruti Suzuki India, the fourth-quarter profitability was impacted by one-off expenses and a lower CNG mix, although experts anticipate a reversal in this trend.

Realization per vehicle saw a notable improvement of 10% year-on-year in FY24, and approximately 37% compared to FY21, attributed to the acceptance and success of Maruti Suzuki India’s higher-priced brands in the UV segment. The fiscal year 2024 also witnessed a remarkable growth of around 53% year-on-year in EBIT per vehicle to Rs 62,655, surpassing the earlier peak in FY18 by about 20%, highlighting an enhanced product mix.

Despite weakness in the entry-level car segment limiting the rise in volume market share to 60 basis points versus FY23 levels, there was a notable increase in revenue market share by 220 basis points year-on-year, driven by the success of newly-launched, higher-priced models.

Key factors to monitor, considered as triggers for the stock, include the return of first-time car buyers (down to 40-43% in FY24 from a peak of 48%), industry growth in FY25-26, and any potential hybrid tax cuts. Elara Securities has raised the FY25E-26E EPS estimates by approximately 5-6% each and introduced FY27E estimates.

The broking firm revised the target of Maruti Suzuki India to “Accumulate” from “Buy” given the sharp ~27% rally in the stock price over the past three months. The target price has been raised to Rs 13,722 from Rs 13,004 earlier, driven by the upward revision of EPS estimates and a PE of 26x (unchanged) FY26E P/E.

Commenting on the dollar rupee outlook Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas said that Indian Rupee fell by 9 paise on Monday on positive US Dollar in early trades and sustained FII outflows. FII outflows stood at Rs. 36,933 crores in April 2024 (MTD). However, positive domestic equities and softening crude oil prices cushioned the downside. US Dollar gained on Friday on rising inflation and weak Yen after Bank of Japan kept its monetary policy unchanged. Yen slipped to the lowest levels since 1986.

Choudhary also added that We expect Rupee to trade with a slight negative bias on selling pressure from foreign investors and expectations of a recovery in crude oil prices. However, improved global risk sentiments and contained geopolitical tensions in the Middle East may support the Rupee at lower levels. Investors may remain cautious ahead of FOMC meeting, ISM manufacturing and services PMI data and non-farm payrolls report from the US. Investors may also take cues from India’s manufacturing PMI. USDINR spot price is expected to trade in a range of Rs 83.20 to Rs 83.70.

Courtesy: NSE

Yes Bank, IDFC First Bank, ICICI Bank, Kotak Mahindra Bank, HDFC Bank are the top volume gainers in Bank Nifty Index.

The Bank Nifty Index gains over 1000 points to its new all time high of 49,216.30 lead by ICICI Bank, AU Small Finance, State Bank Of India, Axis Bank, IndusInd Bank, and Kotak Mahindra Bank.

Courtesy: NSE

Shares of HCL Technologies fell over 6% to an intraday low of Rs 1,328.10 after the company reported its Q4 results. The stock was among the key laggards in the Nifty 50 on April 29. HCL Tech’s stock touched its 52-week low of Rs 1,048.30 on May 04, 2023.

ICICI Bank, IndusInd Bank, BPCL, Ultra Tech Cement, and State Bank of India are the top gainers on NSE Nifty 50 index whereas the laggards include HCL Technologies, Apollo Hospitals, HDFC Life Insurance, Bajaj Auto, and LTIMindtree.

Yes Bank shares opened higher at Rs 27.50 apiece on the NSE and subsequently reached an intraday peak of Rs 28.55 per share after the market’s opening on April 29. This surge follows the bank’s announcement of robust Q4 2024 results on Saturday. Market analysts attribute the current uptrend in Yes Bank’s stock to the impressive quarterly performance reported by the bank. 

Also Read: Yes Bank shares jump 8% after the bank reports strong Q4 net profit

Courtesy: NSE

Following the bank’s results, JM Financial maintains its target price of ₹1,330 and retains a ‘Buy’ rating on the stock. This target price suggests a potential upside of 20% from the stock’s previous closing price of Rs 1,107.

The brokerage firm is confident in ICICI Bank’s ability to achieve an average Return on Assets (RoA) of +2.3% and a Return on Equity (RoE) of 18.5% over the estimated period of FY25–26.

This optimistic outlook is underpinned by the bank’s robust asset quality and consistent growth trajectory, despite expectations of marginal easing in margins. ICICI Bank consistently surpasses its larger private sector peers in terms of returns, which the brokerage believes will help sustain its premium valuation.

Also Read : ICICI Bank shares spike over 2% on 18% increase in net profit; Here are some brokerage views

“Despite facing selling pressure from higher levels, the BankNifty index managed to defend the crucial support at 48000. The bullish sentiment persists as long as it remains above this level, where significant open interest is concentrated on the put side. Currently, the immediate hurdle lies at 48600, and a decisive breakthrough above this level could pave the way for new all-time highs in the index,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Shares of the Bombay Stock Exchange (BSE) experienced a significant decline of up to 18% on Monday, marking the biggest single-day drop since its listing in 2017. The stock came under scrutiny following a directive to pay regulatory fees to market regulator SEBI based on the annual turnover calculated from the ‘notional value’ of its options contracts.

Motilal Oswal reiterates a ‘BUY’ recommendation with a Target Price of Rs 14,700, based on 26 times FY26 EPS. Currently, the stock is trading at 25 times and 22.5 times FY25E and FY26E consolidated Earnings Per Share (EPS) respectively.

According to the latest report from Motilal Oswal on Maruti Suzuki India, the financial outlook for FY25-26 has been marginally raised by 2-4%. The report forecasts Maruti Suzuki to maintain its outperformance relative to industry growth in FY25.

Despite the majority of input cost benefits likely being realized, the company is anticipated to achieve approximately 70 basis points margin improvement to around 12.5% in FY25, primarily driven by an enhanced product mix.

This projected improvement is expected to fuel a steady 13% earnings Compound Annual Growth Rate (CAGR) over the period FY24-26E.

The report also suggests that any potential GST cuts or favorable policies regarding hybrids by the government could lead to a rerating of Maruti Suzuki’s stock, as the company stands to be a key beneficiary of such changes.

Read More: Maruti Suzuki share gains 2% as net profit jumps 48%; Find out what brokerages say

SBI Life Insurance, ICICI Bank, IndusInd Bank, Divis Labs, and Tech Mahindra are the top gainers at NSE Nifty 50 index whereas the top losers include Apollo Hospitals, HCL Technologies, Shriram Finance, Mahindra & Mahindra, and Bajaj Auto.

Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said The Nifty remained under selling pressure throughout the session as the index failed to sustain above the crucial level of 22500. On the daily chart, a dark cloud cover pattern is observed, indicating a potential bearish reversal. Immediate support is situated at 22300, below which the Nifty could extend its losses towards 22000. On the other hand, the level of 22500 might act as a technical resistance for the Nifty.

The NSE Nifty 50 opens up by 0.25% at 22,475.55, while the BSE Sensex jumps 0.34% to 73,982.75 in the opening trade.

Shares in the Asia-Pacific region are trading in positive territory on Monday morning. The Asia Dow is trading up by 0.14%, where as the Japan’s Nikkei 225 is trading in green, up by 0.80%, Hong Kong’s Hang Seng index is ended higher by 2.12% and the benchmark Chinese index Shanghai Composite is ended up by 1.17%.

The NSE has added Vodafone Idea in F&O on April 29, 2024.

Foreign institutional investors (FII) offloaded shares worth net Rs 3,408.9 crore, while domestic institutional investors (DII) bought shares worth net Rs 4,356.8 crore on April 26, 2024, according to the provisional data available on the NSE.

On Monday morning, WTI crude prices traded at $83.24, marking a 0.57% increase, while Brent crude prices stood at $88.80, up by 0.55%.

The US Dollar Index (DXY), gauging the dollar’s value against a basket of six foreign currencies, experienced a 0.13% decline, reaching 105.95 in trading.

According to Bloomberg, a surge in the world’s largest technology companies propelled stock markets upwards. Wall Street also found relief as recent economic data didn’t weaken the case for rate cuts this year. The Nasdaq Composite, known for its tech focus, closed up by 316.14 points or 2.03% at 15,927.90. The S&P 500 surged by 51.54 points or 1.02% to 5,099.96, while the Dow Jones Industrial Average concluded the session higher by 153.86 points or 0.40% at 38,239.66.