Stock Market Highlights: Indian equity indices, Sensex and Nifty ended lower on Wednesday dragged by heavy selling in metals, IT, private banks and financial services stocks. Midcap and smallcap indices also declined. Gains were seen in PSU Banks, auto and media indices.
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Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services
After a blowout of US NFP data, the test case on US inflation has come back again and the anxiety is jolting the global risk appetite. Traders are gravitating around the dollar as the market expects US CPI to rise by 3.6% in April, the largest increase in almost a decade. If the inflation figure comes in line with market expectations then bets for a monetary tightening sooner than expected will push the USDINR spot prices even higher. But if it falls short of the forecast, then dollar will continue to remain subdued with a downside pressure on USDINR spot. The new trading range in spot has shifted to 73-74, and this may continue until the market gets a new catalyst to react to. Technically, 73 is a major support zone, consistent trading below that may push prices towards 72.75-72.50, while a reversal may take prices towards 73.75-74 zone.
Manish Shah, Founder, www.Niftytriggers.com
Nifty closed the day lower as most international markets declined on Wednesday’s trading. By expiry day standards it was still a low volatility day. Nifty trades in a band of 15,050 on the higher side to around 14,450-14,480 on the lower side. Nifty has made repeated attempts to move beyond the resistance at 15,050 but the market fails to break and trade beyond this level. Support for Nifty is at 14,620 and below that to 14,480-14,450. A break below 14,620 and Nifty will trade lower towards 14,480-14,450. On the upside, the resistance is at 15,050 which needs to be taken out. Should Nifty decline to 14,450-14,480 it will be an opportunity to buy as this is a support zone. Buying on declines to this could mean a bump up to 15,050. At least we have a good risk-to-risk ratio. With only one day to go for completion of the week; How the market behaves on Friday will depend on how the US behaves over the next two days.
Market At Close | Tata Motors, Titan, Maruti gain in a weak trading session.
Market At Close | Metal stocks see profit booking; Tata Steel, JSW top Nifty losers
Market At Close | Market slips amid weak global cues; Frontline indices fall 1% each.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Nifty has pierced 14,700 during the intraday session and managed to close around it. Hence traders would need to review the situation on Friday. If we are unable to hold this level, we could drop to 14,400. On the upside, if we can get back above 14,850, the index can scale up to 15,000 and then 15,200.
Market At Close | Here are the highlights of today's market session
- Market Slips Amid Weak Global Cues; Frontline Indices Fall 1% Each
- Nifty Fails To Hold 50-DMA, Closes 154 Pts Lower At 14,697
- Sensex Falls 471 Pts To 48,691 & Midcap Index 201 Pts To 24,770
- Nifty Bank Slips 420 Points To 32,452, Dragged By Kotak & ICICI
- Metal Stocks See Profit Booking; Tata Steel, JSW Top Nifty Losers
- Tata Motors, Titan, Maruti Gain In A Weak Trading Session
- Asian Paints Closes W/Minor Gains After Strong Q4 Volume Growth
- Voltas Slips Despite Reporting A Strong Set Of Earnings, Stock Down 4%
- Appointment Of New CEO Helps Godrej Cons Gains More Than 21%
- PSU Banks Post Strong Gains; PNB, BoB, Union Bank Top Gainers
- Market Breadth Neutral; Advance-Decline Ratio At 1:1
Closing Bell | Indian benchmark equity indices ended a percent lower on Wednesday dragged by losses in metals, IT, private banks and financial services stocks. The Sensex fell 471.01 points, or 0.96 per cent to 48,690.80, while the Nifty ended 154.25 points, or 1.04 percent lower at 14,696.50. Broader markets also ended lower for the day with the midcap and smallcap indices down 0.81 percent and 0.59 percent, respectively.
Among sectors, Nifty Metal fell the most, down 3 percent while Nifty Bank and Nifty Financial Services lost over a percent each. The IT index also lost 1 percent for the day. However, the Nifty PSU Bank index jumped over 3 percent and Nifty Auto also added 0.2 percent. On the Nifty50 index, Tata Steel, Hindalco Industries, JSW Steel, IndusInd Bank and BPCL and led the losses, while Tata Motors, Titan Company, Maruti Suzuki, PowerGrid Corporation and Cipla were the top gainers.
Asian Paints Q4FY21 | The company’s net profit rose 81.1 percent to Rs 870 crore from Rs 480.2 crore, while revenue increased 43.5 percent to Rs 6,651.4 crore from Rs 4,635.4 crore, YoY. The company posed volume growth at 48 percent versus CNBC-TV18 poll of 35-36 percent. EBITDA jumped 53.4 percent to Rs 1,318.3 crore from Rs 859.4 crore and EBITDA margin grew by 130 bps to 19.8 percent from 18.5 percent, YoY.
Dwarikesh Sugar Q4FY21 | The company’s net profit rose 9 percent to Rs 48.2 crore from Rs 44.3 crore and revenue increased 30 percent to Rs 600 crore from Rs 461.7 crore, YoY. EBITDA jumped 47.5 percent to Rs 82.4 crore from Rs 55.9 crore, while EBITDA margin grew by 160 bps to 13.7 percent from 12.1 percent, YoY.
ITD Cementation India | The company received LOA for provision of Infrastructure works consisting of Roads & Bridges, Drains, Water Supply, Sewerage, Slope Protection, Waste Management, Power System including Water and Sewage Treatment Plants including operation and maintenance of selected facilities during Operation and Maintenance (O&M) Period(s) from Government of India – value Rs 898 crore. Also, piling and ground improvement work at Paradip from M/s Technip – value Rs 52 crore, the company said.
UK economy shrinks by only 1.5% in Q1 despite lockdown
Official figures show that the British economy contracted by 1.5 percent in the first quarter of 2021, a relatively modest contraction given that the country was in the midst of a strict lockdown to combat a second wave of the coronavirus. The Office for National Statistics also said Wednesday that the economy even managed to grow by 2.1 percent in March when the country began easing some of the restrictions. The overall first-quarter figures provide further evidence that businesses and consumers have adapted to the constraints of lockdown by increasing their online activities. Read more.
Voltas reports better than Q4 earnings better than estimates.
Cadila sells animal health business for Rs 2,921 cr; here’s what analysts say
Cadila Healthcare is in focus after it sold its animal health business to a clutch of investors. The consortium includes Canada Pension Plan Investment Board and RARE Enterprises. The transaction has happened at Rs 2,921 crore. The deal has happened at a valuation which is about 24 time EBITDA multiple which is in-line with what Sequent Scientific is trading at.
Reacting to the deal, Surajit Pal of Prabhudas Lilladher said that the animal health business was never the main focus for Cadila and hence this will beneficial for the company. “I think this is beneficial for two reasons. One thing is that it will realign the resources inside the company and secondly it will also help them to get better-thinking process of the management,” he said. Watch here.
Saregama Q4FY21 | The company's net profit jumped to Rs 37 crore from Rs 15.8 crore, while revenue rose 13.6 percent to Rs 123.5 crore from Rs 108.7 crore, YoY. EBITDA increased 60 percent to Rs 34.4 crore from Rs 21.5 crore and EBITDA margin was at 27.8 percent against 19.8 percent, YoY.
Anand Lakra, Partner, J Sagar Associates on SEBI Consultation Paper on “Review of the regulatory framework of promoter, promoter group and group companies"
If implemented, the proposals will reduce disclosures in IPO documents and provide liquidity to pre-IPO shareholders (including promoters) by reducing the lock-in period. SEBI's proposal to shift from promoter to persons in control is a welcome change from the existing stand of 'once a promoter, always a promoter'. Under current norms, until reclassification, promoter shareholders who are not in control continue to bear the burden which promoters are subject to. However, given that the concept of promoter is widely legislated, SEBI would need to make necessary amendments to the impacted SEBI regulations and in particular, such amendments may warrant a re-look at the definition of control.
Lupin Q4FY21 preview: Street to eye launch of inhaler drug Spiriva, sales of Albuterol
Lupin's fourth-quarter results will be keenly watched for the management's commentary regarding the launch of inhaler drug Spiriva and sales of Albuterol. Overall the revenue is expected to be flat, the EBITDA is likely to be up around 34 percent with margins at 18 percent odd and profit around Rs 307 crore. There is a weak flu season to reckon with in the US which has impacted most of the companies with Tamiflu generic, so that should impact the US business.The pharma major has also faced some supply issues when it comes to the inhaler Albuterol, which is expected to be easing out now but that could have impacted the US business too. Read here
Expect Godrej Consumer growth in double digits, says Nisaba Godrej after Sudhir Sitapati's appointment
Godrej Consumer is the big mover post its fourth-quarter earnings and the appointment of new MD & CEO - Sudhir Sitapati. Shares of the company zoomed nearly 25 percent after the company reported a 59.13 percent increase in its consolidated net profit for the fourth quarter ended March 2021. The stock after starting the trade on a bullish note further rallied 24.86 per cent to Rs 894 its 52-week high on BSE. Nisaba Godrej, Chairperson & MD, Godrej Consumer Products spoke to CNBC-TV18 on the quarterly performance. Watch full interview here.
Kalpataru Power able to maintain double-digit margin despite rise in commodity prices, says management
Kalpataru Power stock is trading higher post its Q4FY21 earnings. Detailing the numbers, Amit Uplenchwar, Director of the company said that they have been able to maintain double-digit margin despite rise in commodity prices and the pandemic. “We have done that primarily by managing our working capital prudently. We have also managed to bring down our costs and we have looked at areas which probably would have gotten overlooked over the good years and that is why we have been able to give a good performance on both standalone and consolidated basis,” he said in an interview to CNBC-TV18. He said that they will also be able to book the same amount of orders as they did in the last financial year. “We might do close to Rs 16,000 crore at KPTL consolidated level order booking for the current year,” he said. Read here.
Bharti Airtel | Airtel Africa has posted 38.9 percent rise in its Q4 net profit at USD 132 million versus USD 95 million, QoQ. The underlying revenue was up 0.4 percent at USD 1,038 million against USD 1,034 million and operating profit was down 2.7 percent at USD 319 million versus USD 328 million, QoQ.
Yash Gupta Equity Research Associate, Angel Broking
As we earlier caution the retail investors that 15,050 will be a very important level for the Nifty to break for the start of a new bull run. But Nifty is again in the profit booking zone and seeing the selling pressure. Yesterday both DII & FII net sold off around Rs 1,000 crore. We expect Nifty to trade in a range of 14,200 on the downside and 15,100 on the upside. If Nifty is able to cross these levels then only our view will be changed. Option sellers can look to sell strangle on Nifty option, as we expect Nifty to trade in rangebound.
Indian equity market to move higher on supportive global backdrop: Mirae’s Rahul Chadha
Mirae Asset Global Investments expects the Indian market to move higher as the global backdrop remains supportive, said Rahul Chadha, chief investment officer of Mirae Asset Global Investments. “It is highly likely that we trend higher from here because the global backdrop is very strong from an economic recovery perspective and key economic regions like the US, Europe bouncing back well and it’s a reflationary trade and with that reflationary trade the Indian market benefits,” Chadha said in an interview with CNBC-TV18. He further observed that markets been fairly resilient in light of the second wave and hopes is that this wave peaks out in the next 3-4 weeks. Once that plays out then we can see interest coming back to domestic cyclical, he added. Read here.
Godrej Consumer change of guard: Here's what brokerages make of Sudhir Sitapati's appointment
Godrej Consumer Products Ltd (GCPL) surged 15 percent in trade after the company announced the appointment of Sudhir Sitapati as the new MD and CEO of the company effect from October 18. The joining is six months away but the stock has done more than what it has done in the last twelve months already on one day. Sitapati is a Hindustan Unilever Ltd (HUL) veteran, he was there for 22 years and has been responsible for creating clusters of growth out there including the latest biggest one, the GSK Consumer acquisition. Brokerages are rather upbeat on this appointment. The brokerage firms see this as a potential rerating opportunity for a stock. Watch here.