Stock Market Highlights: The Indian equity indices, Sensex and Nifty ended sharply lower dragged by heavy selling in banking and financial stocks. Midcap and smallcap indices declined 0.4 percent each. Barring Nifty Pharma, all other sectoral indices were ended in the red with Nifty Private Bank, Nifty Financial Services, Nifty FMCG and Nifty Auto losing the most.
Ajit Mishra, VP - Research, Religare Broking
Markets declined on Friday and lost nearly two percent, after four days of successive rise. Despite firm global cues, the benchmark opened gap down and gradually drifted lower as the day progressed. Among the sectoral indices, profit taking in banking and financial stocks pushed the bulls on the backfoot. Markets will first react to Reliance Industries earnings and monthly auto sales numbers in early trade on Monday. Besides, participants will be eyeing the election results of 5 states on May 2. Put together, traders should prepare themselves for a volatile start. We suggest limiting naked leveraged positions and preferring defensive on dips.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The sharp weakness of Friday, after the failed upside breakout attempt of upper range at 15,000 of Thursday seems to have dampened the effort of bulls. The overall chart setup from smaller to larger time frame signal chances of upside bounce in the market from the lower levels and a formation of higher bottom around the support of 14,500-14,400 levels by next week. On the upside 14,850 is likely to act as a hurdle.
Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services
The FX market has factored in the Covid related shortfall in economic output, but if the situation goes out of control, then we may again see an increase in USDINR bids. For now, the focus will be on US economic data and slew of IPOs due to hit the local equity market in the coming sessions. The USDINR spot is hovering around 74 zone, there are no signs of Fed withdrawing policy accommodation so we expect the spot to remain sideways within 73.50-74.50.
Manish Shah, Founder, www.Niftytriggers.com
Nifty closed the day lower by around 230 points as Nifty was not able to clear the resistance of 15,000-15,050. On the weekly, the pattern that is seen is a green candle with a long upper shadow. Clearly, the bulls were not able to move a distance despite trying their best. On the monthly we see the index closing with a net loss of around points for the month and it is a candle with a long lower shadow. In a full-fledge pandemic Nifty remains resilient to the onslaught made by the bears. The candle on the monthly is bullish. Nifty needs to move above the resistance at 15,000-15,050 points and it seems that there could be some waiting before this happens. In the interim, the Nifty could remain range-bound between 15,050- 14,500 for some time.
Last two days of decline could be a corrective action of the rally from 14,200-15,050 rally. Nifty should take support at 14,500-14,550 and move higher. What we need is a push above 15,050 for Nifty to move higher. MACD is in a buy mode and Directional movement index is also in a buy mode. Seems there could be some waiting before we see Nifty giving us that elusive breakout above 15,050.
Market This Week
- Market Gains For 2nd Straight Week; Sensex & Nifty Up 2% Each
- Nifty Bank Gains 3% For 2nd Straight Week
- Nifty Bank Posts Biggest Weekly Gains Since The Budget Week
- Metal, PSU Bank & PSU Top Gaining Indices This Week
- Bajaj Fin, JSW Steel, Tata Steel, Bajaj Finserv Top Nifty Gainers This Week
- HCL Tech, Britannia, Maruti, M&M Top Nifty Losers This Week
Market At Close
- Market Closes Near Day’s Low With Financials Being Top Losers
- Market Erases Half Of Week’s Gains With Today’s Fall
- Sensex & Nifty Slip 2% Each & Nifty Bank Is Down 3%
- Banking Heavyweights Like HDFC Bk, ICICI & Kotak Bk Are Top Losers
- Nifty Falls 264 Points To 14,631 & Sensex 984 Points To 48,782
- Nifty Bank Drops 933 Points To 32,782 & Midcap Index 91 Pts To 24,196
- 4 Of Top 5 Nifty Losers Are Financials; HDFC, HDFC Bk, ICICI Top Losers
- OMCs Gain On CS Report Of Cos May Look To Raise Fuel Prices Post May 2
- Pharma Stocks Continue To Gain Of Drug Demand; Divi’s Lab Up 4%
- Sun TV Gains 5% After Exit Polls Predict A Majority For DMK In Tamil Nadu
- Marico Fails To Hold Post Earnings Gains, Closes Flat
- Market Breadth Favours Declines; Advance-Decline Ratio At 3:4
Closing Bell | The Indian equity market ended sharply lower dragged by heavy selling in banking and financial stocks. The Sensex plunged 983.58 points, or 1.98 percent to end at 48,782.36, while the Nifty closed 263.80 points, or 1.77 percent lower at 14,631.10. Midcap and smallcap indices declined 0.4 percent each.
Barring Nifty Pharma, all other sectoral indices were ended in the red with Nifty Private Bank, Nifty Financial Services, Nifty FMCG and Nifty Auto losing the most. On the Nifty50, HDFC, HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Asian Paints led the losses, while ONGC, Coal India, Grasim Industries, Divi's Laboratoriesa and IOC were the top gainers.
Motherson Group completes acquisition of majority stake in Turkey's Plast Met Group
Auto components major Motherson Group on Friday said it has completed the acquisition of majority stake in Turkey’s Plast Met Group, a key supplier of plastic moulded parts, related sub-assemblies and injection moulding tools. The company, however, did not disclose the financial details of the transaction. In January this year, the group had announced that the acquisition is being carried out by Samvardhana Motherson Automotive Systems Group BV (SMRPBV), through its subsidiary Samvardhana Motherson Reflectec (SMR). As part of the deal, SMR was envisaged to acquire 75 per cent stake and enter into a partnership with the founder of Plast Met.
The acquisition includes two companies of Plast Met Group — Plast Met Kalip, Istanbul and Plast Met Plastik, Bursa — engaged in manufacturing of injection moulded parts, sub-assemblies for mirrors, trim modules and lighting systems. ”With the successful closure of this acquisition, Motherson Group now has access to the significant Turkish automotive market,” the group said in a statement. Read more.
Dalmia Bharat Q4FY21: Revenue, margins healthy; mgmt expects demand to stabilise soon
Cement maker Dalmia Bharat on Friday reported a sharp uptick in consolidated profit at Rs 640 crore for the fourth quarter ended March 31, 2021, on account of higher revenue from operations and tax credit. The company reported that revenue is up 32 percent and margins have also expanded. Further, the company has repaid gross debt of Rs 2,224 crore in FY21. Puneet Dalmia, MD at Dalmia Bharat spoke to CNBC-TV18 and said the company's cement capacity will move to 37 million tonne via expansions. “Current capacity is around 31 million tonne, we are in the process of executing another 5.50- 6 million tonne of capacity increase in terms of Murli and our grinding unit in Odisha so our total capacity should be around 37 million tonne.” Read more.
HDFC Securities on Titan Company
While Titan’s recovery execution (esp. in Jewelry) has been on point, a strong bounce-back in volumes is already baked in FY22 despite the impact of Apr-May-21 partial lockdowns in Maharashtra and Delhi. Against this backdrop, margin of safety seems non-existent at 58x FY23 P/E. Hence, we largely maintain our SELL recommendation with a DCF-based TP of Rs 1,300 per share (implying 50x FY23 P/E). FY22/23 EPS estimates remain unchanged.
HIL Ltd | The company said that Odisha Government’s State Level Single Window Clearance Authority (SLSWCA) has approved the application made by the company to set up a manufacturing plant of blocks (1,50,000 CuM PA), panels (36,000 MTPA) and boards (30,000 MT PA) at Balasore, Orissa. HIL continues to diversify, invest and expand its portfolio range in Tier II & III markets to ably cater to the upcoming Housing and infra projects and support the development of these markets. The Company has identified these as potential markets to spur the growth of these blocks, panels & boards, the company said.
Kotak Mahindra Bank | The bank said that Mahesh Balasubramanian has been appointed as the Managing Director of Kotak Mahindra Life Insurance Company, a material unlisted subsidiary of Kotak Mahindra Bank, with effect from May 1, 2021, for a period of three years.
HDFC Securities on Mastek
Mastek delivered strong revenue growth in the quarter and an increase in order bookings by 19.3% QoQ was encouraging. The growth visibility has improved significantly, based on the three large deals that the company has bagged from the UK government. We increase our target multiple to 18x (earlier 15x) and revenue/EPS estimates by +6/5% for FY23E, based on acceleration in organic growth and the company’s ability to win large deals. Our TP of Rs 1,940 is based on 18x FY23E EPS. The stock is trading at a P/E 18.1/15.0x FY22/23E. Maintain Buy.
COVID-19 impact: Titan likely to close more stores, says CFO S Subramaniam
Titan is likely to close more stores, S Subramaniam, CFO of the company, told CNBC-TV18. Titan has reported earnings for the March-ended quarter, completely in line with estimates. The near-term continues to be uncertain with only 50 percent of their stores open currently. The company has refrained from providing guidance. “This month is a different story. We started well and up to mid-April things were normal, but post that we are starting to shut down a lot of our stores – one reason is proactively and the other is because of the lockdowns. As of now, 50 percent of our stores are open but business definitely is much lower.” Subramaniam said. Read here.
Market Watch: Hemen Kapadia of KRChoksey Securities
- Buy Piramal Enterprises at Rs 1,700, stop loss Rs 1,670, and target of Rs 1,760.
- Buy Amara Raja Batteries at Rs 810, stop loss Rs 785, and target of Rs 860.
- Buy Bata at Rs 1,370, stop loss Rs 1,350, and target of Rs 1,410.
Will be able to retain half the cost savings during pandemic: IndiaMART InterMESH
IndiaMART InterMESH posted a steady quarter. Revenue has gone up but margins start to moderate and are down 320 basis points on quarter on quarter. “After a long 9 months of ups and downs, finally January, February, and March almost felt like opening up of the economy as well as for settling down of the SMEs. Our collections from operations have grown over 35 percent in the quarter,” Dinesh Agarwal, Founder & CEO of the company told CNBC-TV18. “We could add 4,000 customers in the quarter,” he said. On qualified institutional placement (QIP) Agarwal said, “We completed our QIP of about Rs 1,070 crore, and we have done three investments out of that. All of these are basically investments or financial investments in strategic areas only.” Read here.
Buzzing | Shares of Persistent Systems jumped over 9 percent to hit a fresh 52-week high of Rs 2,184.60 apiece after the company reported higher profit of Rs 137.7 crore in Q4FY21 as against Rs 120.9 crore in Q3FY21. Revenue rose to Rs 1,113.3 crore from Rs 1,075.4 crore, QoQ.
Private banking stocks under pressure; HDFC bank falls over 3.5%
Shares of HDFC bank dipped over 3.5 percent to hit a low Rs 1,418.10 on Friday. HDFC bank shares dropped as much as 3.68 percent to Rs 1,418.10 apiece intraday on BSE. On the National Stock Exchange too, the lender's shares fell to as much as Rs 1,418.20 apiece, down 3.68 percent. HDFC bank shares traded 3.44 percent lower at Rs 1,421.75 apiece on the BSE. The benchmark Sensex index was 0.81 percent down at that time. Market breadth was mostly neutral, with 1,463 stocks trading higher on the BSE against 1,218 moving lower. On the NSE, 1,007 shares advanced while 803 declined. Among sectors, metal, IT and pharma indices traded higher, while selling was seen in the private banks and FMCG indices. Read here.
Dr Reddy's Laboratories | The company has launched Albendazole Tablets, USP, a therapeutic equivalent generic version of Albenza Tablets, 200 mg, approved by the US Food and Drug Administration (USFDA).