Here's how market performed this week:
1. Market gains for 4th consecutive week; Sensex & Nifty up 1.5% each
2. Nifty Bank gains 2.5%, Midcap index 1.4% this week
3. Nifty Metals gains the most amongst indices, up 3.5%
4. Bajaj Finance, Hindalco, IndusInd Bank, SBI top Nifty gainers this week
5. Bharti Infratel, Adani Ports, ITC, ONGC top Nifty losers this week
Here are the key highlights from today's trading session:
1. Financials drag market; Sensex & Nifty end 0.4% lower
2. Nifty Bank slips 2.2% with all its constituents in the red
3. RIL lifts Nifty by 45 points while HDFC twins & ICICI Bank drag by 61 points
4. 3 of top-5 Nifty losers are financials; Axis Bank & IndusInd Bank down 3% each
5. Nifty falls 45 points to 10,768 & Sensex 143 points to 36,594
6. Nifty Bank underperforms frontliners, slips 509 points to 22,398
7. Midcap index closes Friday trade with a cut of 109 points at 15,254
8. Reliance Industries closes at record high with market cap surging to Rs 11.9 lakh crore
9. Reliance Industries gains market cap of over Rs 34,000 crore in Friday's trade
10. TCS gains 2% from lows to end 1% higher on positive management commentary
11. Britannia surges to life high; HUL & Sun Pharma other top Nifty gainers
12. HDFC Life Insurance & SBI Life Insurance gain on significant improvement in premium MoM
13. Market Breadth favours declines; advance-decline ratio at 1:2
Closing Bell: Market ends the day lower but the week with gains; RIL top contributor, surges over 3%
The Indian indices ended lower on Friday as banking and financial names slipped in trade.
At close, the Sensex ended 146.36 points or 0.39 points lower while the Nifty index ended at 10,768, down 45 points or 0.42 percent lower.
Meanwhile, broader indices also remained subdued during the day. Nifty Midcap100 index ended 0.71 percent lower and Nifty Smallcap100 index also ended with losses, down 0.20 percent.
Reliance Industries, Hindustan Unilever, Sun Pharma, Britannia and Bharti Airtel were the Nifty50 top gainers while Axis Bank, GAIL, ICICI Bank, IndusInd Bank and HDFC were the top losers.
Nifty Pharma was the best-performing index of the day, ending 0.85 percent higher while Nifty Bank remained the worst-performing index, down 2.22 percent.
Market breadth remained in favour of the losses. 1,914 stocks in the NSE ended with losses while 619 managed to end with gains.
TCS Q1FY21 earnings: Brokerages see recovery in business but limited room for stock run
The country’s largest software services exporter Tata Consultancy Services (TCS) reported below-expectations earnings for the first quarter of fiscal 2021 even though new deal wins remained strong with a stable cashflow and an optimistic outlook.
The company’s net profit in Q1FY21 fell 12.9 percent to Rs 7,008 crore as against Rs 8,049 crore in the previous quarter. Revenue declined 4.1 percent to Rs 38,322 crore from Rs 39,946 crore, QoQ. Dollar revenue was down 7.1 percent at $5,059 million while constant currency revenue growth slipped to -6.9 percent, QoQ.
EBIT fell 9.7 percent to Rs 9,048 crore while EBIT margin contracted 148 bps to 23.61 percent, QoQ.
TCS management believes the impact of COVID-19 has "bottomed out" and that the company should now start tracing its path to growth Q2 onwards. Read more here
Stock Update: State Bank of India informs exchanges that it will hold a board meeting on Kuly 15 to discuss and consider raising funds. The Bank said that it will seek approval to raise additional tier-1 and tier-2 capital through Basel-III compliant debt instruments in US dollars or the Indian rupee for FY21. At 3:05 pm, the stock traded 1.46 percent lower to Rs 196.20 per share on the NSE.
Pharma sector Q1 preview: Brokerages expect a weak quarter, list top picks
The pharma sector is expected to report weak earnings in the April-June quarter with flat revenues and a decline in EBITDA on the back of coronavirus-induced lockdown. The sector witnessed a decline in elective surgeries, fall in injectable sales and non-functioning of outpatient departments (OPDs) owing to lockdowns across the world.
The Nifty Pharma index has rallied over 40 percent in the FY21 June quarter versus a 10.8 percent fall in the FY20 March quarter.
Brokerage firm Emkay believes the sector will see a 12 percent decline in EBITDA and 260 bps fall in margins. Continue reading!
Investing in broader markets? Jefferies lists its top midcap picks
Nifty Midcap, as well as Smallcap indices, touched their year to date (YTD) lows in March 2020 as India entered the COVID-19 lockdown. However, with gradual unlocking of the economy and resumption activity, these indices witnessed strong pullback. All three indices have recovered around 30 percent from March lows.
In a recent report, Jefferies mentioned that despite the strong uptick, the 10-year average PE for the midcap and smallcap indices still trade at a discount of -2 percent and -20 percent to Nifty 10-year. Click here to read more
Hemen Kapadia of KRChoksey Securities suggests 3 buy calls
Hindustan Unilever (HUL) has been moving sideways and looks will break out from here, says Hemen Kapadia of KRChoksey Securities. He further said, "Indicators are supportive here given it has made a range at current levels, therefore we are bullish on the stock."
HUL is currently at Rs 2,210; so I would say to buy it at Rs 2,200, keeping a stop loss of Rs 2,175 and target at Rs 2,250.
In case of IT, NIIT Technologies continues to move higher and the volume also supports the stock. One can buy the stock at Rs 1,585, with stop loss of Rs 1,570 and target at Rs 1,615, Kapadia added.
"United Spirits is an uptrend phase Buy United Spirits at Rs 630, stop loss at Rs 622, and target at Rs 646," said the technical analyst.
Gold Update: Gold prices in India traded flat with a negative bias on the Multi Commodity Exchange (MCX) Friday tracking muted trend in the international spot prices even as concerns over the pandemic prevailed, analysts said.
At 11:35 am, gold futures for August delivery fell 0.06 percent to Rs 48,850 per 10 grams as against the previous close of Rs 48,878 and opening price of Rs 48,919 on the MCX. Silver futures traded 0.06 percent lower at Rs 51,060 per kg. The prices opened at Rs 51,163 as compared to the previous close of Rs 51,091 per kg.
“The gold prices eased from all-time high levels due to profit booking and a rise in the US dollar. However, concerns over rising coronavirus cases limited losses in the yellow metal,” said Ajay Kedia, director, Kedia Commodity Comtrade.
Sebi revises shareholding limit for exchanges operating in IFSC
Markets regulator Sebi on Thursday revised the eligibility and shareholding limit for stock exchanges desirous of operating in international financial services centres to streamline operations at IFSCs.
The decision has been taken based on the internal discussions and consultations with the stakeholders, the Securities and Exchange Board of India (Sebi) said in a circular. Read here for more
TCS Q1 earnings: Profit, revenue miss street estimates; management says worst over
The country's largest software services firm Tata Consultancy Services (TCS) on Thursday reported its first-quarter net profit at Rs 7,008 crore versus a CNBC-TV18 poll of Rs 7,690 crore and Rs 8,049 crore in the previous quarter. The company reported its first-quarter revenue at Rs 38,322 core versus an expectation of Rs 38,795 crore. This is a slip of four percent when compared to the last quarter.
The earnings before interest and taxes (EBIT) has been reported at Rs 9,048 crore versus Rs 10,025 crore in the fourth quarter and this is a fall of 9.4 percent. The EBIT margin has come in at 23.61 percent versus 25.10 percent in the previous quarter. Read more