Stock Market Highlights: The Indian benchmark equity indices, Sensex and Nifty ended higher Tuesday led by strong gains in metals, banks and auto stocks. Broader markets supported the rally with smallcap and midcap indices rising over 1.5 percent each. All the sectoral indices ended in green.
Ajit Mishra, VP - Research, Religare Broking
Markets extended yesterday’s gain and ended higher over a percent. The benchmark opened flat amid mixed global cues however it gradually inched higher as the day progressed citing investors’ expectations from earnings outcome by heavyweights. Sectors such as banking, metals, consumer durable witnessed healthy buying interest from participants. In addition, the progress of the vaccination drive and a dip in the COVID cases further boosted sentiments. We’re currently dancing to the global tunes and prospects of upbeat earnings have further strengthened the recovery. We feel Nifty can test 14,800 next if it manages to hold above the 14,600 zones. Participants should align their positions accordingly and prefer sectors that are showing consistent buying interest.
Ruchit Jain, Senior Analyst - Technical and Derivatives, Angel Broking
The index started the session on a flat note today, but it witnessed a gradual upmove throughout the day. Amidst participation from the broader market, Nifty ended at its high point of the day around 14,650 with gains of over a percent. Today we witnessed good participation from the broader markets and if the momentum has to continue, then Nifty will have to break the above-mentioned barrier. Traders are advised to keenly keep a tab and look for opportunities where price up moves or consolidation breakouts are supported by good volumes.
Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities
The market continues to remain positive for the second day in a row. Today once again the benchmark index -- Nifty/Sensex opened with a strong gap and quickly surpassed the 14,550/48,600 mark, which is short term resistance level. The important point is, market not only crossed the resistance mark but even traded above 14,550/48,600 levels which is grossly positive for the Nifty/Sensex. Technically, the Nifty has held a level of 14,550/48,600 which suggest bulls are in total control and would like to take this ride towards 14,750-14,800/49,300-49,800 levels.
Above 14,550/ 8,600 levels, we may see a pullback rally to continue up to 14,700-14,750/49,100-49,300. There is a possibility of a further upside that may continue to push the index upwards, till 14,800/49,800. On the flip side, dismissal of 14,550/48600 could open one more leg of correction up to 14,485/ 48,200 levels.
Manish Shah, Founder, Niftytriggers.com
Nifty closed the day sharply higher and this was a conviction candle that has a wide trading range. Nifty has finally closed above the gap formed between 16-19th of April. This is a bullish development. On the lower time frame charts there is a pattern of higher highs and higher lows. A sign of a change in trend. Nifty is now below the resistance of falling trendline and minor high at 14,700-14,750. A breakout out 14,700-14,750 would mean a breakout of a falling wedge pattern. If this happens it will be a very bullish development. Current momentum needs to sustain and move beyond 14,700-14,750 for the rally to continue to 15,430 and higher. The support at 14,380 is important and any decline to this level could be a buying level. We are two more days to April expiry. The volatility could be high. Guess May could be an important month for Nifty.
Rupee At Close | The Indian rupee ended marginally higher at 74.66 per dollar, amid buying in the domestic equity market. The local currency opened higher by 5 paise at 74.67 per dollar against the previous close of 74.72 and traded in the range of 74.51-74.73.
Market At Close
- Market Gains For 2nd Straight Day To Close At A Nearly 3-week High
- Frontline Indices Post Gains Of Over 1% Each
- 41 Nifty Stocks Close In The Green; Hindalco, Tata Steel, L&T Top Gainers
- Sensex Rises 558 Points To 48,944 & Nifty 168 Points To 14,653
- Midcap Index Gains 372 Pts To 24,047 & Nifty Bank 460 Pts To 32,735
- Market Breadth Favours Advances With Advance-Decline Ratio At 5:2
- Metal Shrs Move Higher On Rising Prices; Hindalco Up 5%, Tata Steel Up 4%
- Reliance Biggest Nifty Contributor To Nifty For 2nd Straight Day
- Bajaj Finance Closes With Gains Of Nearly 3% Ahead Of Its Earnings
- Maruti Slips 1% Amid Volatility Post Mixed Earnings For Q4
- Kotak Bk Closes With A Minor Cut After RBI’s Rule On MD & CEOs’ Tenure Of Bks
- Alkyl Amines & Balaji Amines hit Upper Circuit On Demand Rise
Closing Bell | The Indian equity market ended higher Tuesday led by strong gains in metals, banks and auto stocks. The Sensex surged 557.63 points, or 1.15 percent to 48,944.14, while the Nifty closed 168.85 points, or 1.17 percent higher at 14,653.85. Broader markets supported the rally with smallcap and midcap indices rising over 1.5 percent each.
All the sectoral indices ended in the green with Nifty Metal and Nifty PSU rallying over 2 percent each followed by pharma, auto, financial services and IT indices. Hindalco Industries, Tata Steel, Larsen & Toubro, Divi's Laboratories and Bajaj Finance were the tp Nifty50 gainers, while HDFC Life Insurance, SBI Life Insurance, Maruti Suzuki, NTCP and Nestle India were the top index lsoers.
OPEC+ to meet Tuesday amid concern about rising virus cases
OPEC and its allies led by Russia will meet on Tuesday to discuss production policy amid upbeat forecasts for energy demand despite concerns about new coronavirus spikes in India, Brazil and Japan. The group, known as OPEC+, will hold its joint ministerial monitoring committee (JMMC) meeting on April 27 instead of April 28 as planned earlier, according to three OPEC+ sources and an OPEC+ document seen by Reuters.
Do not subscribe to Shalby OFS: Yash Gupta Equity Research Associate, Angel Broking
Shalby Ltd. one of the promoter groups came up with the Offer for sale at Rs 111 which is 1 percent discount to its current market price of Rs 112.25. The company announced Offer for Sale of shares of the company by one of its Promoter, Shah Family Trust through the Stock Exchange Mechanism. Promoter has set the floor price of Rs 111 for Non-retail as well as retail shareholder. The company has fixed the 27th April 2021 as a time window for retail participants to apply for an offer for sale. Promoter has offered 5.38 percent of the total paid up equity share capital of the company.
We suggest retail investors not to apply for this OFS as there will be very remote chances of getting any gains. After the OFS stock may see some pressure for a couple of weeks.
State Bank of India | SBI to consider fundraising up to $2 billion in FY22 via unsecured notes in its board meeting on April 28.
Sanofi India Q4FY21 | The company's profit rose 70.8 percent YoY to Rs 145.9 crore. Revenue fell 7.6 percent to Rs 725.1 crore.
Global Markets: Stocks dip from record levels ahead of Fed
Shares dipped from record highs on Tuesday as optimism about the economic recovery was dented by caution ahead of the Federal Reserve’s policy decision and a raft of earning updates. The MSCI world equity index, which tracks shares in 49 countries, fell 0.1 percent, following a muted session in Asia and slight early losses in Europe. The index is up 9 percent year-to-date, underpinned by expectations that rising vaccination rates will allow more economies to recover and give a big boost to company profits.
IT sector outlook: Positive on Mphasis & Wipro, says HDFC Securities
Apurva Prasad of HDFC Securities spoke to CNBC-TV18 to discuss earnings from the IT space. Prasad said, “There were some pockets of misses but I would broadly characterise results to be fairly strong especially in context of the guidance that the companies have given. There is much higher visibility especially the near-term visibility based on the strong sign-ins as well as strong hiring trends.” He added, “In terms of which companies posted numbers slightly better than expected on most parameters I would say Wipro can be characterised within that.” On Wipro he said, “We have an add rating on Wipro, we don’t think that the upside potential is significant, there has been a fair amount of re-rating that has happened and the discount to valuations to larger peers is a lot lower so to that extent I would say lot of positives are getting factored into this.” Read more.
Market Watch: Rahul Sharma of Equity99 Advisors
LT Foods is a buy at current market price with a target of Rs 85, stop loss at Rs 67.
COVID surge: CRISIL maintains India’s FY22 GDP forecast at 11%
India's daily infections recorded the highest number of cases in a single day among countries worldwide in the last week, and daily deaths have crossed the peak of the first wave. CRISIL has written a report on the impact on key economic indicators and to discuss that CNBC-TV18 spoke to Dipti Deshpande, Senior Economist at CRISIL. On the second wave, Deshpande said, “The second wave was anticipated, what was not is the extent of spread, the rapid spread and its impact it is causing on healthcare. So lockdown and restrictions have become inevitable in certain parts of the country and therefore an impact on the economy is definitely going to happen to some extent.” Read here.
TVS Motors Q4FY21 preview: Revenue growth seen at 51%; margins to also improve
TVS Motors will be reporting its Q4FY21 earnings today. The company is expected a report a good set of numbers as it has been a very good quarter, especially for the scooter and motorcycle segment. The revenues are expected to grow 51 percent and the EBITDA is expected to grow by 83 percent, while margins could improve to 9.2 percent versus 7.6 percent the same time last year. Overall volumes went up 45 percent year-on-year (YoY) and the net realization could go up by about 5 percent because of the BS-VI product cost that was passed on to the consumer. Gross margins may decline by about 270 basis points because of higher raw material costs, but EBITDA margins overall will rise because of better operating leverage. Read here.
Market Watch: Sunil Subramaniam, MD & CEO, Sundaram Mutual Fund
On Markets | There is a short term blip and there is going to be panic selling in maybe some counters, but as a long term player, it is a good opportunity to buy because all things will pass and a year down the road this will be just like a bad dream.
On Sectors | Manufacturing will give you the opportunity to buy at reasonable prices for a longer period, but services will see a sharper correction and sharper bounce back. So, buying those stocks now makes sense.
Heena Naik, Research Analyst - Currency, Angel Broking
In its two day meeting ending tomorrow i.e 28th April 2021, the US Federal Reserve is expected to continue with its dovish tone. They are expected to leave monetary policy rates and quantitative easing monthly asset purchases unchanged. However, given the improvement in some key macro data points, the odds of an earlier-than-anticipated rate increase are rising. As the US economy continues to reopen and the pace of vaccination rise, markets expect Q1 GDP data to be decent, led by consumer spending backed by stimulus. With outlook on the jobs market improving, expectations are that the US GDP will grow in double-digits in the second quarter. The committee is expected to acknowledge improvement in economic activity and reiterate that it is in no hurry to scale back asset purchases or increase interest rates.
Coforge | The company has raised Rs 340 crore through issuance of non-convertible bonds on private placement basis.
Oil rebounds, but gains limited amid demand concerns as India reels from COVID-19
Oil prices rebounded on Tuesday after falling in the previous session, but gains are likely to be capped amid growing concern about fuel demand in India, the world's third-biggest crude importer now slammed by spiralling new coronavirus cases. Brent crude was up 40 cents, or 0.6 percent, at $66.05 a barrel, after dropping 0.7 percent on Monday. US oil gained 40 cents, or 0.7 percent, to $62.31, having declined by 0.4 percent in the previous session.