Dr Reddy's Leaps Ahead
Aaj Ka Bazaar
The US market gave up early gains to end flat as investors awaited more clarity on when the Federal Reserve may start cutting interest rates. However, US Treasury yields were mostly lower on Tuesday as investors considered the outlook for Federal Reserve monetary policy following the latest economic data and remarks from central bank officials. Asia-Pacific markets were mixed on Wednesday, mirroring moves in Wall Street’s yesterday session. Investors will also brace for key economic data from China and Japan on Thursday, with China releasing its April trade data and Japan announcing its March pay statistics. Indian market may struggle for direction at open on Wednesday as US rate concerns remain and signs of escalating tensions in the Middle East.? On the earnings front, Hero MotoCorp, L&T and Tata Power are among the prominent companies that will unveil their quarterly earnings results today.
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Markets Around Us?
BSE Sensex - 73,246.54 (-0.36%)
Nifty 50 - 22,207.00 (-0.43%)
Bank Nifty - 48,168.10 (-0.24%)
Dow Jones - 38,861.54 (-0.08%)
Nasdaq - 16,394.47 (0.28%)
FTSE - 8,313.67 (1.21%)
Nikkei 225 - 38,273.32 (-1.45%)
Hang Seng - 18,465.08 (-0.08%)
Sector: Pharmaceuticals
Dr Reddy's Q4 numbers beat market estimates
The company has delivered healthy revenue growth during the quarter, aided by new product performance, an increase in the volume of base business in the US, new product launch momentum, and strong performance in Europe and partly offset by price erosion in the US and Europe. During the quarter, the company launched five new products in the US market. The company is focused on higher investments in sales & marketing activities to strengthen existing brands and new business initiatives including scaling up OTC and consumer health & wellness businesses, digitalization initiatives and building strong commercial capabilities. The company will also actively look for new investment avenues for growth across all the business segments and strengthen its R&D in the biosimilar products pipeline, development efforts across generics, and novel oncology assets.?
Why it Matters:
Dr Reddy's long-term growth outlook remains intact and we expect the company to continue to deliver robust performance in the upcoming quarters, led by new product launches, market share gains and an increased volume of the base business.
NIFTY 50 GAINERS
COALINDIA - 462.05?(1.33%)
领英推荐
BPCL - 611.15?(1.13%)
MARUTI - 12,503.90?(1.13%)
NIFTY 50 LOSERS
DRREDDY - 6,040.85?(-3.46%)
ASIANPAINT - 2,872.20?(-1.40%)
LT - 3,391.70?(-1.05%)
Sector: Financial Institution
REC aims to double its loan book by FY30
REC Ltd, is aiming to increase its loan book to Rs 10 lakh crore by 2029-30, focusing mainly on traditional power projects like generation, transmission, and distribution, which will make up 50-60% of their loans, and 30% on renewable energy projects. Currently, the company manages assets worth Rs 5 lakh crore. The power ministry has indicated a future need for up to 85 GW of coal-based power capacity by FY32. REC is seeing more opportunities in the power distribution and transmission sectors, especially with the Revamped Distribution Sector Scheme (RDSS) which plans to modernize this area with a total investment of Rs 3 lakh crore from 2021 to 2026. Even beyond this period, continuous investment will be necessary to upgrade the infrastructure. REC is also expanding into financing non-power infrastructure like airports and roads, expected to form 15-20% of their loan portfolio by 2030. On the renewable energy front, REC sanctioned about Rs 1.36 lakh crore in projects last fiscal year and anticipates increasing this to Rs 1.50-1.75 lakh crore this year.
Why it Matters:
By venturing into financing projects outside of the power sector, such as infrastructure for airports, roads, and metro rails, REC is diversifying its portfolio, which could mitigate risks associated with the power sector's volatility. This diversification might appeal to investors looking for companies with a balanced risk profile.
Around the World
Most Asian stock markets were mostly unchanged or slightly down on Wednesday, taking a pause after a recent rally in Chinese stocks. This slowdown came as some U.S. Federal Reserve officials hinted that interest rates might not be cut this year, contrary to what many were expecting after weaker U.S. job data suggested a possible rate cut in September. The Shanghai Shenzhen CSI 300 and Shanghai Composite indexes in China both dropped slightly, pulling back from six-month highs reached after signs of economic improvement and investment easing in China. Meanwhile, optimism in Chinese markets was initially driven by stimulus measures and the end of some investment restrictions. Looking ahead, investors are waiting for more economic updates from China, including trade data expected on Thursday. In contrast, Hong Kong's Hang Seng index went up by 0.5%, reaching an eight-month high, helped by gains in technology and real estate stocks.
Option Traders Corner
Max Pain
Nifty 50 - 22,400
Bank Nifty - 48,500
Nifty 50 - 22,344 (Pivot)
Support - 22,190, 22,077, 21,923
Resistance - 22,457, 22,611, 22,724
Bank Nifty - 48,507 (Pivot)
Support - 47,991, 47,697, 47,181
Resistance - 48,801, 49,317, 49,611
Did you know?
Loan Default
The loan amount of Rs 4,616 crore Jaiprakash Associates, the parent company of Jaypee Group, has defaulted on, including a principal of Rs 1,751 crore and interest payments of Rs 2,865 crore.