Stock Market Highlights: The Indian equity indices, Sensex and Nifty ended Monday's volatile session higher led by gains in banking and financial stocks. Midcap and smallcap indices outperformed the benchmarks. Among sectors, Nifty PSU Bank rallied the most over 2 percent followed by realty, media, IT, and pharma indices, while metals and FMCG indices closed in the red.
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Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty has closed mildly higher on May 24, forming a doji after a rise, suggesting indecision at higher levels even as the Nifty approached past resistance levels. Largecaps are finding it difficult to rise as a group while the broader market still keeps doing well. 15,256-15,108 is the band for the Nifty for the near term.
Ajit Mishra, VP - Research, Religare Broking
Markets traded volatile in a range and ended marginally in the green amid mixed cues. After the initial uptick, the benchmark hovered in a range till the end while the movement on the broader front kept the participants busy. Markets are likely to take cues from the last leg of earnings and scheduled F&O expiry. Besides, global cues and news related to COVID cases and vaccine drive will be closely monitored by the participants. We reiterate our bullish yet cautious stance and suggest keeping the focus on the selection of sectors and stocks.
Market At Close | Cement stocks (India Cements, Ramco & Shree) close lower post Q4 earnings
Market At Close | Oil marketing cos gain ahead of BPCL’s earnings; IOC up 5%, BPCL 3%
Market At Close | Financials fail to hold surge seen in 2nd half; Sensex & Nifty close flat. Midcap & Small Cap indices continue to hit record highs.
Manish Shah, Founder, www.Niftytriggers.com
Nifty closed the day marginally positive. It was a flat rotational day as the index remained traded in a range between 15,160-15,250. Nifty is now a tad below the all-time high of 15,431. For the day the pattern was a ‘Doji’ which was preceded by a long green candle. This pattern suggests that there could be a pause for a day or two after which the rally will continue. At times “Doji” does result in a contraction of volatility for a couple of days. As we go into the last few days of May expiry Nifty could see a range-bound action between 15,310-15,000 for the next couple of days. Expecting that Nifty will not trade above 15,430 before the end of May expiry.
Rupee At Close | The Indian rupee ended 13 paise lower at 72.96 per dollar, amid volatility in the domestic equity market. The local currency opened marginally lower at 72.86 per dollar against Friday's close of 72.83 and traded in the range of 72.86-72.98.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
15,200-15,250 is posing a short-term resistance for the Nifty. However, the trend continues to remain positive and we should be able to achieve 15,300. Until then, dips or intraday corrections can be used to enter long positions. The support of 15,000 is an important one and as long as that holds on a closing basis, we are in a bullish market.
Market At Close | Here are the highlights from today’s market session
- Financials Fail To Hold Surge Seen In 2nd Half; Sensex & Nifty Close Flat
- Midcap & Small Cap Indices Continue To Hit Record Highs
- Sensex Gains 31 Points To 50,571 & Nifty 22 Points To 15,198
- Nifty Bank Rises 337 Pts To 34,944 & Midcap Index 171 Pts To 25,584
- Market Breadth Remains In Favour Of Advances; Adv-Decline Ratio At 3:2
- Oil Marketing Cos Gain Ahead Of BPCL’s Earnings; IOC Up 5%, BPCL 3%
- SBI Continues The Gaining Momentum On Strong Q4; Stock Up 3%
- LLF Agreement With Railways Helps CONCOR Surge Over 8%
- Nod For Cancer Drug (Revlimid) Lifts Natco Stock Nearly 10%
- Pidilite Joins Rs 1 Lakh Cr Mkt Cap Club; Stock Up Over 4%
- Realty Stocks Move Higher On Unlock Trade; DLF, Godrej Up Over 3%
- Cement Stocks (India Cements, Ramco & Shree) Close Lower Post Q4 Earnings
Closing Bell | The Indian equity benchmark indices ended Monday's volatile session higher led by gains in banking and financial stocks. The Sensex gained 111.42 points, or 0.22 percent to 50,651.90, while the Nifty closed at 15,197.70, up 22.40 points, or 0.15 percent. Broader indices outperformed the benchmarks as the Nifty Smallcap100 index jumped 1 percent and Nifty Midcap100 rallied 0.67 percent.
Among sectors, Nifty PSU Bank rallied the most over 2 percent followed by realty, media, IT, and pharma indices, while metals and FMCG indices closed in the red. IOC, BPCL, SBI, Larsen & Toubro and Eicher Motors were the top Nifty50 gainers, while Shree Cement, JSW Steel, Tata Steel, Britannia Industries and IndusInd Bank were the top index losers.
Market Watch: Deepak Shenoy Founder, Capitalmind
SBI | This has been a good quarter but giving a 2x book to State Bank of India (SBI), I do not think is a wise deal because they are so big that if anything happens that is bad in either the retail or the corporate books in India because of the lockdowns, SBI is bound to get affected as it’s the largest bank in India and one should play momentum here and not bet on 5-6 year fundamental story to get in at a price of Rs 400.
Pidilite Industries | If you want to pay high PE, I would pay it for a company that is growing at 50-60 percent or 40-50 percent, but I do not know if I would do the same for the Pidilite going forward. I think at this time we are paying a lot of money for the stock and hope performance comes in in terms of profit growth, but have to be watchful of valuation.
TVS Motor Company | TVS Motor (Singapore) Pte Limited, an overseas subsidiary of the TVS Motor has acquired a company in Singapore for Sg $1, and thereby it has become a subsidiary of TVSM Singapore as well as to the company. The newly acquired company has been renamed TVS Digital Pte Ltd.
Panacea Biotec | The Russian Direct Investment Fund (RDIF, Russia’s sovereign wealth fund) and Panacea Biotec, today announced the launch of production of the Russian Sputnik V vaccine against coronavirus. The first batch produced at Panacea Biotec’s facilities at Baddi will be shipped to the Gamaleya Center for quality control. Full-scale production of the vaccine is due to start this summer. The company’s facilities comply with GMP standards and are prequalified by WHO.
WPIL | The company has received an Acceptance Order (LOI) from the Government of West Bengal (Central Circle P.H.E. Directorate) for the execution of a Project, comprising of designing, surveying, engineering, supplying and constructions, erection, installation, testing and commissioning of fixed type Intake Jetty with Pump House, Sub-Stations, Booster Stations and Water treatment Plants for and aggregate order value at Rs 409.70 crore to be completed over a period of 36 months
Sub-10% GDP growth for FY22 a distinct possibility: SBI’s Soumya Kanti Ghosh
The COVID-19 pandemic rages on in the country and though new case additions have been on a decline, the slow pace of vaccination and the demand-supply mismatch is a concern. Several brokerages have downgraded India's gross domestic product (GDP) estimates for FFY22 with the latest being JPMorgan which has lowered the forecast to 9 percent from 11 percent. Soumya Kanti Ghosh, Group Chief Economic Advisor at State Bank of India discussed the macro picture in detail. He has also written a report on the template for making state vaccine procurement more efficient. Read here.
Poly Medicure Q4FY21 | The company's net profit jumped 70.9 percent to Rs 38.8 crore from Rs 22.7 crore and revenue rose 24.3 percent to Rs 213 crore from Rs 171.3 crore, YoY. EBITDA increased 34.8 percent to Rs 54.2 crore from Rs 40.2 crore, while EBITDA margin improved to 25.4 percent from 23.5 percent, YoY.
Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services
Gold steadied near the highest level in more than four months amid weaker dollar and pullback in US yields showing the investors increased optimism on the precious metal. The dollar stood near its lowest levels in three months; whereas US 10 year yields were hovering near a week low. The Fed has kept its focus on attaining better job data, although now few fed officials have begun lowering expectations for May jobs growth in the US as business hiring plans continue to outrun the supply of people able or willing to work. The economic calendar is muted for the day, although the focus will remain on the US consumer confidence and GDP data scheduled later this week. Holdings of SPDR Gold, rose 0.6 percent to 1042.92 tonnes on Friday. Broader range on COMEX could be between $1,865- 1,900 and on the domestic front, prices could hover in the range of Rs 48,400- 48,900.
Canara Bank | The bank will consider fundraising via QIP/FPO/Rights Issue/Preferential Issue or any other mode on May 28.
Punjab & Sind Bank shares jump nearly 7% after Q4 profit
Shares of Punjab & Sind Bank on Monday jumped nearly 7 percent as the company turned profitable in the fourth quarter of FY21 after eight consecutive quarters of losses. The state-run bank turned profitable in the fourth quarter of FY21 after eight consecutive quarters of losses, posting a profit after tax of Rs 161 crore on the back of improvement in recoveries and decline in bad loans. The lender had registered a net loss of Rs 236.3 crore in the year-ago period. However, for the full year, its loss widened to Rs 2,732.9 crore as against Rs 990.8 crore in FY20. Read here.
Market Watch: Ruchit Jain of Angel Broking
- Buy Exide Industries with a stop loss of Rs 186.50 and a target of Rs 200
- Buy Mahindra & Mahindra Financial Services Limited with a stop loss of Rs 158 and a target of Rs 174
Expect FY22 loan growth at 10%, moving towards improving RoA, says SBI's Dinesh Kumar Khara
The country’s state-owned largest lender State Bank of India (SBI) reported strong earnings for the quarter ended March 2021 with an 80 percent rise in net profit to Rs 6,450.7 crore, while lower slippages aiding the improvement in asset quality. Speaking to CNBC-TV18, SBI Chairman Dinesh Kumar Khara said that the bank witnessed decent recoveries during the quarter given a raging pandemic and it would move towards improving return on assets. “With the resurgence of the demand, we will see better utilisation of the working capital and if the concerns relating to partial lockdown gets over, there would be better availment of term loans also. So that will give us some help in improving our loan growth,” Khara said. Further, before going for fundraising, the bank will wait for clarity on economic scenario. Read here.
Hindalco sees strong demand from pharma in Q4; mgmt expects auto sector demand to bounce back
Hindalco witnessed strong demand from the pharma space in the fourth quarter, Satish Pai, managing director (MD), told CNBC-TV18. Hindalco Industries reported a sharp 51.8 percent jump in its net profit for the fourth quarter of fiscal 2021 at Rs 495 crore. The Aditya Birla Group company had posted a net profit of Rs 326 crore in the year-ago period. The revenue during Q4FY21 increased 44.2 percent to Rs 14,412 crore from Rs 9,992 crore, YoY. “The pharmaceutical and the packaging industry have been the biggest demand drivers for us. Now the auto sector has picked back up and the underlying demand is strong. The building and construction sector had started to show green shoots. We have to see what happens in this quarter because the underlying demand is there but workers have not been able to work on the construction sites,” Pai said. Read here.
Oil prices regain some losses amid potential Iran hitch; GS bullish
Oil prices rose on Monday as a potential snag emerged in reviving the 2015 Iran nuclear deal that could add more oil supply, while Goldman Sachs said the case for higher prices remains intact even with increased Iran exports. Brent crude oil futures for July rose 72 cents, or 1.1 percent, to $67.16 a barrel, while US West Texas Intermediate for July was at $64.25 a barrel, up 67 cents, or 1.1 percent.