Nifty and Sensex may open in green today amid positive global cues. The Nifty futures on the Singapore Exchange (SGX) were trading 35 pts or 0.20% higher at 17,452.50 in the early morning trade. “FPI investment in March stood at Rs 7109 crores inclusive of the Rs 15446 crores invested by GQG through bulk deals in Adani stocks. FPIs have been consistent buyers in capital goods and alternating between buying and selling in financial services. The sustained selling by FPIs appears to be over since they have turned buyers in the last few days. The near-term outlook for FPI looks much more positive now. Even though Indian valuation continues to be relatively high, the recent market correction has made valuations a bit more reasonable than earlier. An important factor is the impressive turnaround in India’s CAD which has improved substantially due to rising exports. The CAD which was 4.4% in Q2FY23 has turned into surplus in Q3 FY23. Therefore, the INR is likely to be stable, going forward. This may restrain FPIs from turning aggressive sellers. FPIs turning buyers in banking will help banking stocks scale higher levels assisted by good Q4 results,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Stocks in focus on Monday 3 April
Maruti Suzuki India
Maruti Suzuki sold 1.7 lakh units in March 2023, dipping 0.2% over the same month last year, with domestic sales (contributed 82% to total sales) tanking 2.7% and exports surging 13.7% to 30,119 units. In FY23, total sales volumes rose by 19% to 19.66 lakh units compared to the previous year with domestic sales climbing 20.7% and exports up 8.8%.
Hero MotoCorp
Hero MotoCorp sold 5.19 lakh units in March 2023, rising 15% from 4.5 lakh units sold in the same month last year. Domestic sales volume grew by 21% on-year to 5.02 lakh units, but exports fell 52% to 16,612 units.
TVS Motor Company
TVS Motor registered a growth of 3% with sales increasing from 3.07 lakh units in March 2022 to 3.17 lakh units in March 2023, but exports fell 31.6% on-year to 75,037 units in March. TVS iQube electric recorded sales of 15,364 units in March 2023 as against sales of 1,799 units in March 2022.
Eicher Motors
Eicher Motors’ commercial vehicle sales volume in March jumped by 35.2% to 11,906 units compared to the year-ago month driven by domestic business, but exports dropped 36.5% on-year to 414 units. In FY23, the company sold 79,623 units, a 39.5% growth over the previous year as domestic sales volumes jumped 53.6% to 72,827 units, but exports fell 41.5% to 4,933 units. Royal Enfield announced its sales for March 2023 at 72,235 motorcycles, up 7% on-year and recorded total sales of 8.34 lakh motorcycles in FY23, registering its highest-ever overall sales in history, up 39% over the previous financial year.
Adani Ports and Special Economic Zone
Adani Ports completed the acquisition of Karaikal Port (KPPL) after the NCLT approval. Karaikal Port, an all-weather deep-water port on India’s eastern coast, handled ~10 MMT of cargo in FY23 and the acquisition cost of Rs 1,485 crore implies an EV/EBITDA multiple of ~8x on FY23 EBITDA number.
Hindustan Aeronautics
HAL registered the highest-ever revenue from operations of around Rs 26,500 crore for FY23, increasing 8% over revenue of Rs 24,620 crore in FY22. The order book stood at around Rs 82,000 crore at the end of March 2023.