Stock Market Highlights: Indian equity indices, Sensex and Nifty ended higher Thursday led by strong gains in banks and IT stocks amid positive global cues. Broader markets supported the rally with the smallcap and midcap indices closing higher each. Among sectors, PSU Bank, IT, metals and auto indices led gains, while Nifty Realty and Nifty Pharma ended in the red.
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Manish Shah, Founder, www.Niftytriggers.com
Nifty had a flattish close with a candle that is showing signs of indecision. The last three days have had positive closes but there is no urgency on part of the bulls to push the index higher with power that one usually associates with breakout. Nifty is now in the area of sellers. The size of the real bodies and volumes are also not showing any appreciable increase. Nifty needs to break above the resistance at 15,430 for the rally to continue if there is a failure to do this there could be selling pressure coming into the market. Breakouts need to be strong and sure if the rally has to continue. In last couple of weeks, many stocks with dubious and shaky fundamentals have been rallying this is a sign that masses are active and usually that is the time when market makes a significant top. What we need is a breakout of the resistance zone at 15,430-15,500 for the rally to continue. On the lower side support is pegged at 15,190. If Nifty breaks below 15,190-15,170 it could be time to get cautious in the market. Tomorrow is the weekly close and maybe things will get clarified then.
Ajit Mishra, VP - Research, Religare Broking
Markets traded volatile and settled marginally in the green on the day of the monthly expiry of May month contracts. The benchmark indices witnessed a firm start but profit-taking at higher levels capped the upside as the day progressed. Meanwhile, volatile swings witnessed across the board wherein banking showed tremendous resilience while oil & gas and realty traded subdued and ended lower.
Markets are now eyeing announcements on unlocking by the states which are fueling the recovery. Besides, stability in the global markets after the Fed assurance is also helping the index to sustain at higher levels. We’re currently seeing most sectors, barring metal, participating in the move and expect this trend to continue. Participants should continue with the “buy on dips” with a focus on sector and stock selection.
Rupee At Close | The Indian rupee ended higher by 19 paise at 72.58 per dollar amid volatility in the domestic equity market on F&O May series expiry day. The local currency opened flat at 72.75 per dollar versus Tuesday’s close of 72.77 and traded in the range of 72.53-72.76.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Index has maintained above the 15,300 levels today. This should allow the index to move higher to levels closer to 15,600. Any intraday correction or dip can be utilized to accumulate long positions on the Nifty. We have good support at the 15,000 levels and as long as we do not break this on a closing basis we are in the bull territory!
Market At Close | Market breadth favours advances; Advance-Decline ratio at 1:1.
Market At Close | Nifty Bank rises 411 points to 35,095 & Midcap index 139 points to 25,705.
Market At Close | Market ends May series higher; Nifty at record closing high.
Market At Close | Here are the highlights of today's market performance
- Market Ends May Series Higher; Nifty At Record Closing High
- Financials Lift Market With Nifty Bank Gaining More Than 1%
- Sensex Gains 100 Points To 51,118 & Nifty 36 Points To 15,338
- Nifty Bank Rises 411 Pts To 35,095 & Midcap Index 139 Pts To 25,705
- Private Banks (Kotak, Axis, HDFC Bank) & SBI Top Contributors To Nifty
- IT Gains On positive Commentary In Analyst Meet; Wipro Top Gainer
- Shree Cement Top Nifty Gainer With Stock Moving Up 4%
- BPCL Fails To Hold Opening Gains Despite Strong Results; IOC Slips Too
- PSU Bank Pack Makes An All-round Gain; PNB Up 7%, BoB Gains 4%
- Piramal Ent Rises 6% Following NCLAT’s Stay On NCLT Order In DHFL Case
- Page Ind, Cadila Close The Session With Minor Gains After Q4 Earnings
- Market Breadth Favours Advances; Advance-Decline Ratio At 1:1
Closing Bell | Indian benchmark equity indices ended higher Thursday led by strong gains in banks and IT stocks amid positive global cues. The Sensex rose 97.70 points, or 0.19 percent to close at 51,115.22, while the Nifty gained 36.40 points, or 0.24 percent, to end the May F&O series at record close closing high of 15,337.85. Broader markets supported the rally as the Nifty Smallcap100 index closed over 1 percent higher, while the Nifty Midcap100 index gained over half a percent.
Among sectors, PSU Bank, IT, metals and auto indices led gains, while Nifty Realty and Nifty Pharma ended in the red. On the Nifty50 index, Shree Cement, SBI, Bajaj Auto, Kotak Mahindra Bank and Tech Mahindra were the top gainers while HDFC, ONGC, IOC, Bajaj Finance and Bharti Airtel led the losses.
Market Watch: Nischal Maheshwari, CEO of Institutional Equities & Advisory at Centrum Broking
On IT: Midcap IT has been outperforming frontline IT. The focus is now going back to midcaps and I think midcaps are now getting a better discounting because of the growth rate which they will be able to achieve. The preference is for midcaps.
On financials: I believe there is more pain on the ground than what we see right now. It is best to be avoided all banks and financial companies which have large exposure on SME and MSME – it is to be avoided for at least next one-two quarters
Second COVID wave to impact asset quality of vehicle financiers: India Ratings
India Ratings, in its note on the impact of the second wave of COVID-19 on vehicle financiers, is seeing a significant hit on the asset quality. According to the report, borrowers are grappling with reduced capacity utilization, increased operating cost due to rising fuel cost, and reduced ability to service debt. India Ratings says that this could lead to a rise in loss given default for collaterals. Prakash Agarwal, Director and Head-Financial Institutions at India Ratings & Research said that most of the vehicle financiers would be looking at a collection efficiency of about 80 percent. “May, the first fortnight, the data was that we are already short of about 20 percent collection efficiency. So, if you look at the current number, we are in the vicinity of 80 percent give or take a few 100 basis points,” he told CNBC-TV18. Read here.
Strides Pharma Science | TLC and Strides Pharma Science announced that the Central Drugs Standard Control Organization (CDSCO) of India has approved TLC’s New Drug Application (NDA) of Amphotericin B Liposome for Injection 50mg (known as Ampholipad in Taiwan and AmphoTLCTM in India) for immediate importation per approved usage and indication, to aid in the country’s emergency of acute liposomal amphotericin B shortage.
FY22 sees biggest earnings upgrades, but how much is priced in? Find out
Indian markets have been on a high, trading near record-high levels on the back of March quarter earnings and decline in COVID-19 cases. However, one must ask, how much is priced in? Sectors including steel, cement and auto have been seeing a lot of earnings upgrades with steel seeing the biggest consensus earnings upgrades for the full after the Q4FY21 earnings. Individually, stocks like Tata Steel, JSW Steel, and JSPL have seen earnings upped between 30-65 percent. Also, earnings estimates for Ambuja Cement, Godrej Properties, and Tata Motors have been increased between 6-7 percent for the full year post Q4FY21 earnings. On a year-to-date (YTD) basis, the stocks are up between 45 and 70 percent. However, the stocks have not moved up significantly post the Q4FY21 earnings. This is because based on the expectations of strong quarter gains preceded the earnings and a lot of it was already in the price. Watch here.
Reliance to vaccinate 1.3 million employees and their families
Reliance Industries Limited has chalked out a detailed plan to vaccinate over 1.3 million employees and their families in what will be the biggest corporate vaccination drive in the country. The beneficiaries of the drive include employees' spouse, parents, grandparents, parents-in-law, eligible children, and siblings. RIL's associates, partner companies, their employees, retired employees (with family members) are also part of the massive vaccination drive. The company aims to vaccinate employees and their families in over 880 Indian cities with the first dose, free of cost, by June 15. Over 3.30 lakh employees and their family members have already received the first jab. Those who got vaccinated outside the program will be fully reimbursed for the vaccination expenses. Read here.
Karnataka Bank realigned loan book towards retail & mid corporate, says MD & CEO Mahabaleshwara
Karnataka Bank made an attempt to realign loan books towards retail and mid-corporate, Mahabaleshwara MS, managing director and chief executive officer, told CNBC-TV18 on Thursday. The bank reported its weakest ever set of earnings for the March-ended quarter. The loan book has declined sharply and asset quality has deteriorated with gross non-performing asset (NPA) at the highest level since FY18. “During the adverse conditions of COVID-19, we made an attempt to realign our loan book. We focused more on retail and mid-corporate and shed some flab in the large advances loan book. In fact, our retail and mid-corporate went up by 6 percent and 7 percent respectively,” Mahabaleshwara said. Read here.
Wockhardt Q4FY21 | The company reported a net loss of Rs 92.8 crore as against a profit of Rs 48.3 crore, YoY. Revenue fell 8 percent to Rs 631.96 crore from Rs 686.93 crore, YoY. EBITDA loss was at Rs 66.1 crore as against EBITDA of Rs 13.45 crore, YoY.
Strides Pharma Science Q4FY21 | The company reported a net profit of Rs 46.1 crore as against a loss of Rs 203.9 crore, YoY. Revenue rose 47 percent to Rs 911 crore from Rs 621.6 crore, YoY. EBITDA fell 4 percent to Rs 160.2 crore from Rs 68 crore, while EBITDA margin increased by 665 bps to 17.58 percent from 10.93 percent, YoY. The company reported one-time loss at Rs 0.9 crore as against a loss of Rs 171 crore, YoY.
CLSA cuts target for Vodafone Idea on delays in AGR hearing, fundraising, tariff hikes
CLSA has retained an 'underperform' rating on Vodafone Idea and reduced its target price for Vodafone Idea to Rs 9 per share from a previous target of Rs 12. The global brokerage believes that Vodafone Idea’s Adjusted Gross Revenue (AGR) dues of $9 billion recognised versus $3 billion self-assessed is a key regulatory overhang and has likely delayed planned fundraising. In September 2020, the telecom operator announced fundraising of Rs 25,000 crore, of which equity was expected to be Rs 15,000. The company has been is in talks with potential investors but fundraising appears unlikely before the SC allows review of AGR liabilities, the brokerage noted in a report. The company is under a huge debt of Rs 117,100 crore and includes Rs 94,200 crore of deferred spectrum debt. The debt also excludes lease liabilities. Read here.
Financials outperforms in 14 of 19 top world markets but underperforms in India YTD
Financial stocks have outperformed their country benchmarks in 14 of the top-19 world markets so far this year, as per a CLSA report. India, however, has underperformed owing to concerns over the second wave of the COVID-19, the global brokerage added. CLSA pointed that on a YTD basis, financials have rank outperformed in most large markets in the world. Notably, MSCI World Financials has outperformed MSCI World by 12.5 percentage points (ppt) YTD. The biggest outperformance of financials versus respective country benchmarks has been in Korea (+17.1ppts), the US (+16.6pts), Japan (+15.2pts) and France (+10.8ppts), it added. Read more.
Market Watch: Himanshu Gupta, Globe Capital
- Buy Snowman Logistics with a stop loss of Rs 52.80 and a target of Rs 62 and Rs 63.
- Buy Bank of Baroda with a stop loss of Rs 80 and a target of Rs 88.
- Buy Federal Bank with a stop loss of Rs 86 and a target of Rs 95.
Motilal Oswal on Manappuram Finance
The slowdown in the Gold Finance segment is a one-time blip due to a sharp correction in gold prices. The short loan tenure (three months v/s the industry average of 6-12 months) is resulting in a quicker downward re-pricing. Over the medium term, we expect MGFL to deliver 10-15% steady-state gold loan growth. In the other segments, there is a clear turnaround in terms of growth and collections. While the cost of funds is elevated, we expect some moderation in FY22E. Our EPS estimates are largely unchanged. We maintain our Buy rating with a TP of Rs 205 per share.
Page Industries Q4FY21 | The company’s net profit jumped to Rs 115.6 crore from 31 crore and revenue rose 62.7 percent to Rs 881 crore from 541 crore, YoY. EBITDA increased to Rs 169.8 crore from Rs 58.1 crore and EBITDA margin improved by 860 bps to 19.3 percent from 10.7 percent, YoY.