Apollo Hits Milestones

Aaj Ka Bazaar

The US market ended lower overnight, with the Nasdaq falling more than 1% and technology shares leading declines after a disappointing Salesforce forecast. Investors also digested data showing the economy had grown slower than expected in the first quarter. A separate report showed weekly jobless claims rose more than expected. Concerns about the outlook for interest rates also continued to weigh on the markets ahead of the release of closely watched inflation data on Friday. Asian market cut some early gains as official data showed Chinese manufacturing activity unexpectedly contracted in May - with the corresponding PMI falling to 49.5 from 50.4 in April. Indian market may open on a positive note Friday as weaker US growth data sent the dollar and bond yields tumbling and revived hopes for rate cuts by the Federal Reserve later this year. On stock-specific news, Apollo Hospital would be in focus today as it reported healthy performance in Q4FY24, with an increase in EBITDA and PAT margins annually. The revenue grew mainly due to the rise in its pharma distribution business, healthcare, and diagnostics services.

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Sector: Oil & Gas

ONGC tie up to build 100 CBG plants

Oil and Natural Gas Corp (ONGC) is partnering with EverEnviro Resource Management Pvt Ltd to build 10 compressed biogas (CBG) plants. This equal joint venture aims to utilize various waste sources like agricultural waste, energy crops, and municipal solid waste to reduce CO2 emissions by approximately 7.5 lakh tons annually. This move is part of ONGC's strategy to venture into renewable energy, including solar, wind, and biofuels, as it targets net zero emissions by 2038. EverEnviro, established by Eversource Capital, is already working on over 20 CBG projects and aims to expand to more than 100 plants. This collaboration aligns with government efforts to boost the CBG sector and reduce natural gas imports, which currently account for half of India's consumption.

Why it Matters:

EverEnviro’s ongoing projects and future plans to build over 100 CBG plants indicate a significant market opportunity. ONGC’s involvement in such large-scale projects can lead to substantial revenue growth. Investors might see this as a lucrative investment opportunity, with ONGC expanding its footprint in the renewable energy sector.

NIFTY 50 GAINERS

ADANIENT - 3,305.95?(3.50%)

M&M - 2,552.65?(2.37%)

LT - 3,718.00?(2.29%)

NIFTY 50 LOSERS

LTIM - 4,701.55?(-1.50%)

ONGC - 263.80?(-1.09%)

KOTAKBANK - 1,672.00?(-1.07%)

Sector: Healthcare

Apollo Hospitals Q4 numbers beat market estimates

Apollo Hospitals Enterprise Ltd. reported strong performance in Q4FY24, with consolidated revenue from operations reaching Rs. 4,944 crores, a 14.9% increase year-on-year and a 1.9% rise quarter-on-quarter. This growth was driven by the pharma distribution, healthcare services, and diagnostics services. EBITDA rose 31.2% year-on-year to Rs. 641 crores, with margins improving to 13.0%. Profit after tax stood at Rs. 258 crores, up 77.5% from the previous year. The hospital network had 7,945 operating beds, with an occupancy rate of 65%. Apollo also achieved significant milestones, including becoming the first private hospital group in India to complete a CAR-T cell program and being the first in South Asia to implement ZAP-X technology for brain tumour treatment. Additionally, Apollo Proton Cancer Centre completed over 1200 proton therapy treatments and launched a new emergency medical centre in Ayodhya. The company declared a final dividend of Rs 10 per share.

Why it Matters:

The robust financial performance, innovative healthcare solutions, efficient operational management, and commitment to shareholder returns make Apollo Hospitals an attractive investment opportunity. These positive developments are likely to boost investor confidence and potentially lead to an appreciation in the stock price, making it a key stock to watch in the healthcare sector.

Around the World

Asian stocks saw slight gains on Friday, with focus shifting to the upcoming U.S. PCE inflation data, a key indicator for the Federal Reserve. Chinese markets also rose, driven by hopes for additional stimulus following weak business activity data. Despite soft GDP data from the U.S. and concerns over economic growth, regional stocks showed resilience. China’s manufacturing PMI fell back into contraction, raising expectations for more government support. The Shanghai and Shenzhen indexes each gained 0.3%, while Hong Kong's Hang Seng index surged 1.3%, boosted by interest in discounted tech stocks. Overall, Asian markets had a mixed performance in May, influenced by high interest rates and inflation concerns. Japan's Nikkei and TOPIX indexes rose modestly but remained flat for the month. South Korea’s KOSPI and Australia’s ASX 200 also experienced minor gains, while futures for India’s Nifty 50 indicated a slight recovery after recent declines.

Option Traders Corner

Max Pain

Nifty 50 - 22,500

Bank Nifty - 48,800

Nifty 50 - 22,537 (Pivot)

Support - 22,368, 22,248, 22,079

Resistance - 22,657, 22,825, 22,946

Bank Nifty - 48,680 (Pivot)

Support - 48,315, 47,949, 47,584

Resistance - 49,046, 49,411, 49,777

Did you know?

Online Frauds goes down

The total amount involved in online fraud cases in the Indian banking sector in FY24 stood at Rs 13,930 crore, down from Rs 45,358 crore in FY22, according to the Reserve Bank of India.

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