Motilal Oswal reiterates a Neutral rating for UPL with a target price of Rs 560. This valuation is based on 12x FY26 EPS, representing a ~25% discount to its five-year average and a one-year forward P/E of 16x.

The report on UPL highlights anticipated challenges for the global agrochemical industry in the first half of FY25. The firm cites the liquidation of high-cost inventory, which will result in lower margins.

Motilal oswal also adds the stabilization of agrochemical prices at lower levels as key factors. However, they expect a recovery in overall demand and pricing in the second half of FY25. Despite these short-term challenges, cash flow generation and debt repayments remain critical areas to monitor.

Motilal Oswal has raised its FY25 EPS estimate by 21%, reflecting a better-than-expected performance in the fourth quarter and an improving operating scenario in FY25, while maintaining the FY26 EPS estimate.

“A clear change in the market direction will happen when clarity emerges on the election results in India. A high probability is DIIs, HNIs and retail investors buying aggressively if the election results are favourable from the market perspective. Such aggressive buying can put the FIIs on the back foot. FIIs-heavy largecaps will continue to be weak and this will be an opportunity for investors to accumulate them,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said The bulls propelled the index higher following a positive trading session. However, the index closed just below the lower band of the rising channel. The Nifty managed to close above the crucial level of 22,200; nonetheless, it needs to return within the channel to sustain momentum in the upcoming days. In the near term, a decisive move above 22,250 could propel the index towards the higher level of 22,600 in the short term. Conversely, a failure to maintain levels above 22,200 might trigger selling pressure in the market.

Cipla, NTPC, Bharti Airtel, Coal India, and Hindalco are the top gainers on NSE nifty 50 ndex whereas top laggards include HDFC Bank, Eicher Motors, HDFC Life Insurance, JSW Steel, and Shriram Transport Finance.

“Nifty has now entered into the most crucial resistance zone of 22200-300. The probability of a sell-off cannot be ruled out. However, the support base has moved higher to 22100 hinting at a limited downside. On the upside, a decisive close above 22300 will set the tone for the anticipated trending move towards 22750-800. Look for buying opportunities on dips to 22070-22100 area with a SL of 21950. In case there is no dip, buy only on an intraday move above 22340 with a SL of 22200 for a target of 22600/22750. Avoid directional trades within 22200-300 band,” said BlinkX & JM Financial in a pre-opening comment.

The NSE has added Balrampur Chini Mills, Birlasoft, Canara Bank, GMR Infra, Hindustan Copper, Vodafone Idea, Piramal Enterprises, Sail, and Zee Entertainment Enterprise in F&O on May 15, 2024.

Foreign institutional investors (FII) offloaded shares worth net Rs 4,065.52 crore, while domestic institutional investors (DII) mopped shares worth net Rs 3,527.86 crore on May 14, 2024, according to the provisional data available on the NSE.

US is 26% of world GDP and 65% of market cap. It also reflects US companies’ share in global GDP. Indian companies can take larger share of world GDP and attract global capital while nurturing Indian savers. That will enable our market cap being larger than our GDP sustainably.

On Wednesday morning, WTI crude prices were trading at $78.44, up 0.54%, while Brent crude prices were trading at $82.74, up 0.44%.

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down 0.16% to 105.03.

MSCI’s gauge of global stocks was set for a record high close on Tuesday, while the U.S. dollar edged lower as investors digested U.S. producer prices data and comments from Federal Reserve Chair Jerome Powell, Reuters reported. The tech-heavy Nasdaq Composite rose by 122.94 points, or 0.75%, to 16,511.18. The S&P 500 increased by 25.26 points, or 0.48%, to 5,246.68, while the Dow Jones Industrial Average gained 126.60 points, or 0.32%, to 39,558.11.