Stock Market Highlights: Indian equity indices, Sensex and Nifty ended with robust gains on Monday led by banking and financial stocks amid positive global cues. Broader markets supported the rally with the midcap and smallcap indices closing over a per cent higher each. Among sectors, Nifty PSU Bank rallied the most, followed by financial services, private banks, metal and auto indices. Selling was seen in the pharma and media sectors.
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Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing weakness amidst a range movement in the last couple of sessions, Nifty witnessed a sharp comeback on Monday and closed the day with hefty gains of 245 points. The short term trend of Nifty seems to have reversed up firmly, after a reasonable weakness of the last few sessions. Having placed at the crucial overhead resistance around 15,000 levels, there is a possibility of volatility emerging or minor downward correction from the highs in the next few sessions and that is going to be a buy on dips opportunity in the market. Immediate support is placed at 14,780 levels.
Rupee At Close | The Indian rupee ended higher by 7 paise at 73.22 per dollar, amid buying in the domestic equity market. The local currency opened flat at 73.27 per dollar against Friday’s close of 73.29.
Manish Shah, Founder, Niftytriggers.com
On Monday, Nifty closed the day sharply higher with the index rising by close to 1.68 percent in a day. It was a wide-ranged candle that closed at the top end of the day’s trading range. It is a range expansion candle with its true range highest in the last couple of weeks. Bulls showed massive strength for the day. This pattern appears below the resistance at 15,050-15,100 points. Nifty still needs to close above the resistance at 15,050-15,100. This is the barrier that has halted many advances the recently in last couple of weeks. MACD signal line has crossed above zero and MACD is in a buy mode and Nifty has again moved above 50 period moving average. The crucial piece of evidence need is a high conviction close above 15,050-15,100. Once this happens we can brace for a rally to the prior swing high at 15,430-15,450. A breakout should signal a sharp rally over the next couple of weeks.
Dilip Bhat Joint MD, Prabhudas Lilladher
Market has rallied but one should not be in a hurry to buy from the current levels. The market will spend more time sideways, consolidating, there may not be any major correction downwards but there will not be any runaway rise on the upside. So even for the banks, I would prefer to wait and watch, not be in a hurry to buy some of the stocks.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The markets have zoomed past a resistance block of 14,850 and this should keep the Nifty bullish. Strong support lies at 14,700 and the index would turn bearish if we break this level on a closing basis. If the Nifty can keep above 14,850, we can claim higher levels of 15,000 and then 15,200. If we break 14,700, the markets could fall further to 14,400.
Market At Close | Here are the key highlights from today's market session
- Market Snaps 3-day Losing Streak; Financials Top Gainers
- Nifty Bank Surges 4% To Record Biggest Single-day Gain Since Budget Day
- Sensex & Nifty Move Nearly 2% Higher; Biggest 1-day Gain In 2 Mths
- Midcaps Gain In-line With Frontliners; Index Up Almost 2%
- Sensex Gains 848 Points To 49,581, Nifty 245 Points To 14,923
- Nifty Bank Rises 1,290 Pts To 33,459 & Midcap Index 449 Pts To 24,813
- Market Breadth Favours Advances; Advance-Decline Ratio At 2:1
- 40 Nifty Stocks End In The Green; Top 5 Gainers Are Banks
- IndusInd Bank, SBI, ICICI, HDFC Bank & Axis Bank Are Top Nifty Gainers
- Bharti Airtel Slips 2% Ahead Of Earnings; L&T Down 2% Post Mixed Q4
- Strong Earnings Lead To A Gain Of 10% For Balkrishna Ind
- Colgate Closes 2% Higher After Posting Better-than-expected Earnings
- Metal Stocks Recover From Opening Lows; JSPL Up 5%, Tata Steel Up 2%
- BSE Cos Gain Market Cap Of More Than Rs 3 Lakh Cr Today
Closing Bell | Indian equity benchmark indices ended with robust gains on Monday led by banking and financial stocks amid positive global cues. The Sensex rallied 848.18 points, or 1.74 percent, to 49,580.73, while the Nifty closed 245.35 points, or 1.67 percent higher at 14,923.15. Broader markets supported the rally with the midcap index up 1.9 percent and smallcap index up 1.2 percent.
Among sectors, Nifty PSU Bank rallied the most, followed by financial services, private banks, metal and auto indices. Selling was seen in the pharma and media sectors. On the Nifty50 index, IndusInd Bank, SBI, ICICI Bank, HDFC Bank and Axis Bank were the top gainers while Cipla, Bharti Airtel, Larsen & Toubro, SBI Life and Nestle India led the losses.
Bitcoin hits 3-month low and then rallies on Musk tweets
Bitcoin rallied from a three-month low on Monday in a volatile session that saw investors initially selling and then buying cryptocurrencies in the wake of Tesla boss Elon Musk's tweets about the carmaker's bitcoin holdings. In his latest tweet, Musk said "Tesla has not sold any bitcoin". That seeming clarification came after weekend tweets hinted that Tesla was considering or may have already sold some of its massive holdings. Bitcoin fell more than 9% on Monday to as low as $42,185, its lowest since Feb. 8, but rallied back to around $45,190. Ether, linked to the ethereum blockhain, fell to as low as $3,123.94, and then bounced back to $3,540. Dogecoin fell nearly 7%, and all three are well under recent records.
Market Watch: Rohit Srivastava, Founder & Strategist, Indiacharts.com
The dollar index, which is the primary indicator we look for in the commodity cycle, might bounce back. So that will keep the pressure around the metal stocks even they may bounce around up and down a bit. The downside may be limited but we will see pressure in the metal space. So metals will pick up after the bounce is over or in the latter part of the month or in June. In the meantime, the focus may shift towards other sectors which are likely to be the public sector stocks which have been in the limelight through last week also when the metals were correcting and we are seeing strength in the public sector banks. So within the PSU space, even the PSU banks are doing well. So these two are where I am going to be focused over the next couple of days.
HDFC Securities on Larsen & Toubro
With improving macro in international markets and the government’s focus on infrastructure at home, L&T is hopeful of low to mid-teens growth in order inflow. We maintain Buy on L&T, given its strong order book, healthy balance sheet, and robust services business. We cut our FY22 estimates by 9% to account for near-term execution challenges. We increase our SOTP-based target price to Rs 1,800 per share (Rs 1,657 earlier). Key risks: delay in asset monetisation and tepid order inflows.
IIFL on L&T: Enough headroom to grow and expand, Renu Baid
There is enough headroom for Larsen & Toubro (L&T) to grow and expand given the fact that earnings are looking to improve, said Renu Baid, vice president-research of IIFL Institutional Equities, on Monday. Indian multinational technology, engineering, construction, manufacturing and financial services conglomerate - L&T reported mixed earnings for the March-ended quarter. Revenue and profit were below estimates but margins have improved and order inflows have also come in better than expected. Speaking in an interview with CNBC-TV18, Baid said, “At Rs 1,400 it’s (the stock) back to where it was for the last one-and-a-half-two years. So there is enough headroom from here to grow and expand given the fact that earnings are now looking to improve back.” Read here.
Eli Lilly inks pact with Natco Pharma for COVID drug baricitinib
Drug firm Eli Lilly on Monday said it has signed a voluntary licensing agreement with Natco Pharma to further expedite the availability of baricitinib for COVID-19 patients in India. The company has issued an additional royalty-free, non-exclusive voluntary license to Natco Pharma and the Hyderabad-based company will be collaborating with Eli Lilly to further accelerate and expand the availability of baricitinib in India during this pandemic. Read here.
Cipla shares decline nearly 4% after Q4 earnings miss estimates
The share price of Cipla fell nearly 4 percent on Monday after the firm's earnings missed analysts' estimates on all parameters in the March quarter. The pharma company clocked a 72.2 percent year-on-year growth in consolidated profit at Rs 411.5 crore driven by operating performance. However, the profit was lower than Rs 559 crore that CNBC-TV18's analysts had estimated. Consolidated revenue grew by 5.3 percent year-on-year to Rs 4,606.4 crore, lower than the estimated Rs 4,919.4 crore. The stock fell as much as 3.8 percent to the day's low of Rs 870 per share on the BSE. Read here.
Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services
Gold prices continue to trade higher hovering near to around three-month highs, as a weaker dollar and a dip in US yields on the back of weak US economic data reported last week boosted metal's appeal. Dollar index fell to almost one week low: whereas US 10-year Treasury yields retreated further from a more than one-month high hit last week. Weak data from the US gave further support to the metal prices, as retail sales and industrial production numbers missed the expectations in April. Also, fear of rising inflation are weighing on consumer sentiment, adding to concerns about how quickly the US economy will be able to recover from the pandemic, and pushing away any noise about the changes in interest rate.
Economic calendar is muted for the day, although market participants will keep an eye on the FOMC minutes and preliminary Manufacturing and services PMI data expected from major economies, scheduled later in the week. Also, RBI’s latest tranche of the Sovereign Gold Bond(SGB) is starting from today for five days. Issue price for SGB Scheme 2021-22 is fixed at Rs 4,777 per gram, and a discount of Rs 50 per gram, less than the nominal value has been decided for the investors applying online. It is advised to invest in SGB or any other platform available like ETF or Digital gold based on one’s risk appetite. Broader range on COMEX could be between $1820- 1880 and on the domestic front prices could hover in the range of Rs 47,750- 48,300.
Market Watch: Siddhartha Khemka, Head-Retail Research, B&D, Motilal Oswal Financial Services
The overall commodities, at least the metal side, the cycle would continue for the next one-two years on back of strong demand, the unlock trade that is happening globally and prices sustaining at higher level. We are positive on State Bank of India (SBI) within the overall banking space. It is part of our top preferred ideas within the banking space. We believe that the bank is well placed to benefit out of the economic recovery that’s going to happen over next few years.
Market Watch: Ruchit Jain of Angel Broking
- Buy Axis Bank with a stop loss of Rs 684 and a target of Rs 735
- Buy VRL Logistics with a stop loss of Rs 218 and a target of Rs 240
Nish Bhatt, Founder & CEO, Millwood Kane International
The first tranche of Sovereign Gold Bond for FY22 opens today perhaps a little late, as many retail investors missed the opportunity to invest during the Akshaya Tritiya festival last week. Buying gold during this festival is considered auspicious. Investment in SGB tranche-1 makes sense as the bond will be available for a lower price as compared to the current prices of gold.
Gold prices have been on the rise due to uncertainties created by the second wave of COVID19 cases, softening of the Treasury yields, and concerns of rising inflation in the US. Gold prices have been trading near a 3-month high. Though the Fed Reserve has assured of low rates in the US for a long period of time, moving forward its commentary on the rising inflation, unemployment, and the impact of the second wave, geopolitical tensions in the middle east will guide gold prices.
Federal Bank Q4FY21 | The bank’s net profit rose 58.6 percent to Rs 477.8 crore from Rs 301.2 crore, while NII increased 16.8 percent to Rs 1,420.4 crore from Rs 1,216 crore, YoY. Gross NPA were at 3.41 percent versus 3.38 percent, and net NPA were at 1.19 percent versus 1.14 percent, QoQ.