Stock Market Highlights: Indian equity indices, Sensex and Nifty ended lower Wednesday dragged by selling in metal, auto and private banking stocks. Broader markets closed mixed as smallcap index gained, while midcap index ended in the red. Gains were seen in pharma, realty, PSU Banks and media sectors.
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Ajit Mishra, VP - Research, Religare Broking
Markets took a breather after the recent surge and lost nearly half a percent. We feel it's a healthy pause and expects the prevailing up move to continue. Meanwhile, participants should keep a close eye on the global cues and COVID-related updates. We've started seeing rotational buying across the sectors so the focus should be on sector and stock selection.
Sugandha Sachdeva, VP- Commodity & Currency Research, Religare Broking
The Indian rupee has seen a significant rise in the past few sessions amid a strong rally in global equity markets and a softer dollar index. However, it has pared gains today as the risk sentiment has weakened on concerns over the new virus strain in the Asia Pacific region, which could hamper growth. That coupled with a possibility of an earlier-than-expected rate hike by the Fed have led to some risk-off. Markets will be eyeing today’s Fed minutes for further cues.
We reckon that the rupee may not be able to strengthen above the 72.70 mark at least in the near-term as the current levels provide a good opportunity for importers to hedge their payables. Moreover, it is certain that the Fed will not be able to stay ultra dovish for longer, given the US economy is showing strong signs of rebound. That, coupled with mounting inflation pressures, may prompt the Fed to opt for a rate hike earlier than expected and a bond taper could be hinted at by September-October. Given the global circumstances and rising crude oil prices, we think the rupee is poised for depreciation hereon. We expect the rupee to trade in a broad 72.70 to 73.80 band in the near term.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty made a double top – the same as the previous day and later fell to enter the upgap area. Lower volume on May 19 suggests the absence of enthusiasm on the part of traders at these levels especially in the face of the negative inflation and commodity price data and release of US Fed minutes. 14,938-14,967 will be the support for the Nifty while 15,137 will act as a resistance.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The index is facing resistance at higher levels. In the last couple of instances, the Nifty has crossed 15,000 with gusto and has turned back from there. If we can sustain above the 15,150 level, we will break out on the upside and climb towards 15400. On the downside, there is good support at 14,700 and as long as that is holding, the market trend remains positive. If we break 14,700 on a closing basis, we will drift downward to 14,400.
Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services
The Covid cases are moderating in India and Fed's music will remain the same, so chances of USDINR bouncing are very low. Still, traders are awaiting tonight’s Fed minutes for the clues about the outlook. The USDINR spot is hovering around 73 zone, the only fear is of RBI intervention in between 72.75-73 zone to curb any excess volatility. But in absence of RBI, the downtrend in USDINR spot may continue and USDINR spot may trade in between 72.75-73.30.
Rupee At Close | Indian rupee erased intraday gains and ended lower by 12 paise at 73.16 per dollar, amid selling in the domestic equity market. The local currency opened flat at 73.02 per dollar against the previous close of 73.04 and traded in the range of 72.93-73.18.
Manish Shah, Founder, www.Niftytriggers.com
Nifty closed the day marginally lower. It was a narrow ranged day after two days of solid rally. The support for Nifty is within 14,950-15,000 area and any dips to this zone should provide a buying opportunity. Nifty should not break below the support at 14,750 and some leeway could be given to this number. On the lower time frame charts a break above 15,150 could signal a continuation of the up move. Nifty offers one of the best buying opportunities in the last three months and we should see a rally to 15,450-15,500 before the end of the current expiry. Punts on the long side would prove fruitful.
Market At Close | Market breadth favours advances; Advance-Decline ratio at 3:2
Market At Close | HDFC, Bajaj Fin, M&M, JSW Steel & UltraTech amongst top Nifty losers.
Market At Close | Market closes in the red but Nifty holds on to 15,000. Nifty Bank falls the most amongst frontline indices, down 0.7%
Market At Close | Here are the key highlights of today's market session
- Market Closes In The Red But Nifty Holds On To 15,000
- Nifty Bank Falls The Most Amongst Frontline Indices, Down 0.7%
- Sensex Slips 291 Points To 49,903 & Nifty 78 Points To 15,030
- Nifty Bank Falls 237 Points To 33,685 & Midcap Index 34 Pts To 25,233
- Market Breadth Favours Advances; Advance-Decline Ratio At 3:2
- Tata Motors Top Nifty Loser On A Cautious Commentary By Mgmt
- Bharti Airtel Falls For 6th Straight Day; Q4 Earnings Below Expectations
- HDFC, Bajaj Fin, M&M, JSW Steel & UltraTech Amongst Top Nifty Losers
- IOC Closes 1% Higher After Reporting Better-than-expected Earnings
- BPCL Slips As Divestment Is Likely To Be Delayed By At Least 3 Months
- Coforge Falls Over 4% After a Block Deal Of Over 6% Equity Today
- Aarti Ind, JSPL, Ujjivan SFB, Nalco Top Midcap Losers
Closing Bell | Indian equity benchmark indices ended lower Wednesday dragged by selling in metal, auto and private banking stocks. The Sensex fell 290.69 points, or 0.58 percent to 49,902.64, while the Nifty ended 77.95 points, or 0.52 percent lower at 15,030.15. Broader markets closed mixed as smallcap index gained, while midcap index ended in the red.
Among sectors, Nifty Financial Services, Nifty Metal, Nifty Auto and Nifty Private Bank fell the most, while, gains were seen in pharma, realty, PSU Banks and media indices. Tata Motors, Bajaj Finanserv, M&M, HDFC and JSW Steel were the top losers on Nifty50 constituents, while Coal India, Cipla, Sun Pharmaceutical Industries, UPL and Nestle India wwre the top index gainers.
Sensex may hit 61,000 by December 2021: Morgan Stanley
Sensex could hit 61,000-levels by December 2021 in a bull case scenario, said Morgan Stanley. The 61,000 levels for Sensex indicate an upside of 22 percent for the BSE frontline index from the current levels of 50,000. Even in a base case scenario, Sensex could hit the 55,000 levels, indicating a 10 percent upside, said the brokerage house. In the bear case scenario, it pegs the Sensex at 41,000 levels by December 2021. In a recent note, the brokerage house stated that it is overweight on India in a global emerging markets (GEMs) context and expects Indian equities are likely to outperform their emerging market (EM) peers in 2021. Read full report here.
ICICI Direct on Torrent Pharmaceuticals
Q4 operational performance was in line with I-direct estimates whereas bottomline was better amid higher-than-expected other income and lower interest cost. Overhang pertaining to two US focused plants notwithstanding, Torrent continues to impress thanks to its robust margin profile that can be attributed to global portfolio that comprises ~ 60% branded generics. We expect a further improvement in this matrix, product rationalisation to further strengthen margins. The company’s portfolio is finely balanced between India, Brazil, Germany and the US with India being the leader.
With consistent FCF generation, moderation in core capex, we expect the leverage situation to improve substantially. With these key characteristics we believe the premium valuation is justified. We maintain buy with a target price of Rs 3,290 (unchanged) based on 32x FY23E EPS of Rs 102.8.
Happiest Minds Technologies | The company has executed a digital transformation project for Coca Cola Bottling Company United for streamlining its order management with RPA in Microsoft Power Automate.
Just In | Royal Enfield to recall 2.37 lakh motorcycles of the Classic, Bullet, Meteor models due to a defect in one of the parts.
Indian Oil Corporation Q4FY21 | The company's net profit was at Rs 8,781 crore as against CNBC-TV18 Poll of Rs 5,741 crore. Revenue was at Rs 1.24 lakh crore versus estimates of Rs 1.2 lakh crore. EBITDA was reported at Rs 13,501 crore, while EBITDA margin was at 10.9 percent for the quarter.
Emkay Global on Bharti Airtel
Bharti Airtel reported in-line EBITDA, but ARPU of Rs 145 missed our estimate by 1.8%. This indicates a deceleration in the mix improvement-led ARPU uptick that has been seen over the last two quarters. Healthy performance of enterprise and home broadband segments continued, with the latter seeing the highest customer additions, yet again. Market share gains across the business segments reflect the strength of the underlying customer winning strategy.
We keep our estimates largely unchanged. We expect a tariff hike in H2FY22. This is crucial for fast-paced balance sheet deleveraging, in turn, driving next leg of re-rating for the stock. We maintain Buy with a SoTP-based TP of Rs 686.
Gateway Distriparks Q4FY21: Mgmt expects double-digit volume growth in rail, CFS biz in FY22
Logistics company Gateway Distriparks posted a robust set of numbers for the quarter ended March with their EBITDA rising 41 percent year-on-year (YoY). The company's rail and container freight segments (CFS) also reported higher volumes and revenues. Detailing the numbers, Prem Kishan Gupta, CMD of the company said that the volumes are good so far in rail and container freight segments in Q1FY22.
“As far as this quarter (Q1FY22) is concerned, so far the going is good. The volumes are there both in the import as well as in the export direction. But going forward, we have visibility of imports coming in, but exports have been down because of the lockdowns. But nevertheless, the volumes, both in the rail and the CFS business are good till now and we hope that this quarter will do well,” he said in an interview with CNBC-TV18. According to Gupta, H1FY21 was a washout due to lockdown, but for FY22 he is expecting double-digit growth in volumes in both rail and CFS. Read here.
Market Watch: Aditya Agarwala, Yes Securities
- Buy Britannia with a stop loss of Rs 3,490 and a target of Rs 3,600.
- Buy Shalimar Paints with a stop loss of Rs 95 and a target of Rs 110.
Market Watch: Sudheer Guntupalli, Lead Analyst-Tech, ICICI Securities
Currently midcap IT is trading at 20 percent premium to Nifty IT and if I were to go by the precedent over the last 15-20 years, this happens only once and that did not sustain for a long period of time which essentially means time maybe ripe for a correction in the midcap IT names. In terms of broader IT sector also, valuations have run up much ahead of fundamentals in which condition the demand is going to be significantly higher post-COVID, profitability is going to be significantly higher post-COVID, market has spiced up the multiples to a significant extent and that’s why we see a reason to be cautious on the sector right now.
Commodity Outlook by Ajay Kedia
Gold prices are trading near to $1,868. A breach above $1,872.00 will activate the positive effect followed by rallying to achieving new gains that reach $1,900.00 - $1,918 level as long as prices are trading above $1,858. Strong bullish trend above $1,872.
Silver prices are trading near $28.00. Overall outlook remains bullish for a target located at $29.00 and above same can test $29.60. Holding above 27.75 is a bullish sign and vice-versa.