Stock Market Highlights: Indian equity indices, Sensex and Nifty ended higher Wednesday boosted by IT, auto and financial stocks as continued fall in domestic COVID-19 cases improved investor risk appetite. Broader market supported the rally with midcap and smallcap indices closing with gains. Barring Nifty Metals and Nifty PSU Bank, all other sectoral indices ended in the green.
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Ajit Mishra, VP - Research, Religare Broking
Markets resumed the trend and gained over half a percent amid mixed cues. Most of the sectors are participating in the move now however a trader needs to identify the right sector/stock as the markets are almost at record highs. Besides, the scheduled derivatives expiry may result in a volatile session on Thursday i.e. May 27. We thus advise keeping a check on naked leveraged positions and continuing with the “buy on dips” approach.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty closed at the highest since Feb 16, 2021. It also closed at almost the day’s high accompanied by a strongly positive advance-decline ratio. IT sector witnessed rotational buying while Metals stocks came under pressure as metal prices continued to remain soft globally after a dream rally. 15,336-15,432 is the next resistance band for the Nifty while 15,211-15,256 is the support band for the near term.
Ruchit Jain, Senior Analyst - Technical and Derivatives, Angel Broking
Nifty started the day on a positive note and maintained a bullish bias throughout the day. Although it did not post any huge gains, the broader market was buzzing amidst which Nifty managed to end tad above 15,300 with gains of six-tenths of a percent. We expect the Nifty to continue its march higher towards our 14,335 (which is almost there), followed by new highs very soon. With this gradual advance, the supports are shifting higher and now the immediate supports are placed around 15,235 and 15,163. Hence, we continue with our advice for traders to continue with a positive bias and look for buying opportunities on intraday declines.
Manish Shah, Founder, www.Niftytriggers.com
Nifty closed the day marginally positive. Nifty is now just a couple of points away from making a new historic high. If Nifty manages to sustain above 15,430 we should be looking at a sustained rally over the next several weeks or months. Previous swing highs do act pressure points and we still need to see Nifty trading above the previous swing high with an increase in volumes and range. The rally from April 22 lows has been a gradual affair. A very steady pace. The shape of the rally is like a bowl and is what we see as a rounding pattern. Once Nifty manages to trade and hold above 15,430-15,450 it is likely that Nifty will see a rally towards 16,000-16,200 over the next several weeks. Support for Nifty is at 14,900 as long as support at 14,900-14,950 holds our view of a sustained rally remains intact.
Market At Close | Market breadth favours advances; Advance-Decline ratio at 2:1.
Market At Close | Bajaj Finserv top Nifty gainer, closes with a gain of more than 4%.
Market At Close | Market ends near record closing high. Broader markets underperform benchmarks; Midcap & Nifty Bank end flat.
Market At Close
- Market Ends Near Record Closing High
- Sensex Gains 392 Points To 51,029 & Nifty 93 Points To 15,301
- Broader Mkts Underperform Benchmarks; Midcap & Nifty Bank End Flat
- Nifty Bank Rises 22 Pts To 34,684 & Midcap Index 21 Pts To 25,566
- Metals Under Pressure On Falling Prices & CS Downgrading The Sector
- Hindalco, JSW Steel & Tata Steel Amongst Top Nifty Losers
- BPCL Closes With A Minor Cut Ahead Of Earnings & Dividend Announcement
- Bajaj Finserv Top Nifty Gainer, Closes With A Gain Of More Than 4%
- Bajaj Fin, Grasim, Infosys, UPL & Wipro Are Other Top Nifty Gainers
- Mahanagar Gas Surges Over 4% On Better-than-expected Q4 Earnings
- Realty Stocks Continue To Move Higher On Unlock Trade; DLF Up Over 4%
- Market Breadth Favours Advances; Advance-Decline Ratio At 2:1
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The index managed to cross 15,300; if we can sustain these levels, we should be headed to 15,500-15,600. We have a good support range at 15,000 and hence can buy into corrections. As long as the Nifty maintains 15,000 on a closing basis, we are in the bullish territory.
Closing Bell | Indian equity benchmark indices ended higher Wednesday boosted by IT, auto and financial stocks as continued fall in domestic COVID-19 cases improved investor risk appetite. Positive Asian market also lifted sentiment. The Sensex gained 379.99 points, or 0.75 percent, to end at 51,017.52, while the Nifty settled 93.00 points, or 0.61 percent higher at 15,301.45. Broader markets supported the rally with midcap and smallcap indices closing with gains.
Among sectors, the Nifty IT index jumped nearly 2 percent while Nifty Auto and Nifty Fin Services were up around half a percent each. FMCG and pharma sectors were also in the green. However, the metal index lost nearly 2 percent for the day. Bajaj Finserv, Bajaj Finance, Infosys, Grasim Industries and Wipro were the top gains among Nifty50 constituents, while PowerGrid Corporation, Hindalco Industries, JSW Steel, Tata Steel and NTPC were the top index losers.
Berger Paints Q4 earnings beat estimates on all fronts expect margin.
Bitcoin reclaims $40,000 for first time this week, volatility lingers
Bitcoin climbed back above $40,000 on Wednesday for the first time this week, as the volatility in the cryptocurrency market is showing signs of dampening. Bitcoin was trading 5 percent higher at $40,199, according to data from CoinMarketCap. Altcoins, or alternative coins that follow Bitcoin also gained some ground, with Ether rising as much as 10 percent to $2,858.
Divis Laboratories | The company said it is MSD's Authorized manufacturer for Molnupiravir API and allowed to supply this API to MSD's VL partners in India.
Market resilient in uncertain times; global markets providing tailwind, says Envision’s Nilesh Shah
The Indian equity market has been resilient in these uncertain times, said Nilesh Shah, MD & CEO of Envision Capital, on Wednesday. Speaking in an interview with CNBC-TV18, he said, “Market has been a lot more resilient than what it could have been especially the kind of impact the second wave of COVID is having or is likely to have in this quarter.” But Shah added that earnings have been strong which is a big driver and that domestic liquidity continues to be extremely strong. Moreover, he noted that there is a strong tailwind which our markets are enjoying because of global markets - the global markets too have been extremely resilient and buoyant and that’s encouraging the markets here as well, said Shah. Read here.
MSCI emerging market currency index hits fresh record high
MSCI's emerging market currency index hit a fresh record high on Wednesday as the dollar wallowed near its weakest point since early January amid Fed's insistence to continue stimulus despite inflationary pressures.
Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services
Gold prices continue to trade higher, as it breached the physiological level of $1900 hovering around a 4-1/2-month high amidst a drop in US Treasury yields and a weaker dollar. Broader range on COMEX could be between $1,870- 1,920 and on the domestic front, prices could hover in the range of Rs 48,800- 49,360.
Manappuram Finance Q4FY21 | The company's net profit rose 17.6 percent to Rs 468.3 crore from Rs 398.2 crore and revenue grew 1.1 percent to Rs 1,622.3 crore from Rs 1,605.3 crore, YoY. Provisions were at Rs 106.6 crore as against Rs 80.2 crore, QoQ.
Market Watch: Aditya Agarwala of Yes Securities
- Buy Bajaj Finance at current levels for a target of Rs 6,050 and put a stop loss of Rs 5,600 on the downside.
- Buy TVS Motors at current levels for a target of Rs 685 on the upside and put a stop loss at Rs 630 on the downside.
CLSA on Emami
Emami reported in-line top line, but Ebitda and adjusted Pat growth at about 65% each was below expectations. For FY22, management expects 50-100 bps YoY gross margin contraction. A strategic call to address distribution gaps, leverage healthcare opportunities (looking to grow in the double digits YoY on a high base), and improved international business are key positives. Capturing near-term demand and margin pressure, we cut FY22 EPS estimates 5% (unchanged for FY23). We maintain an Outperform rating and an Rs 520 target price.
FMCG companies outperform Nifty in the last two decades
The consumer staple sector has significantly outperformed the broader market over the past twenty years. The Nifty has risen around 10x in the last 20+ years, while the FMCG index is up around 17x over the same period. Most of this outperformance was reported in the last decade (2010-20), with FMCG returns at 15 percent CAGR, materially higher than those generated in Nifty (9 percent CAGR). In the prior decade (CY00-10), the sector performed broadly similar to the broader market although there were periods of significant underperformance and outperformance, according to Jefferies report. Sticky nature of demand, strong brand equity and pricing power, ability to ring-fence profitability are a few reasons for the FMCG sector's resilient earnings and stock price performance during disruptive periods. Read here.
Arvind Q4FY21 | The company reported a net profit at Rs 53.2 crore as compared to a loss of Rs 12.3 crore, YoY. Revenue rose 0.8 percent to Rs 1,655 crore from Rs 1,641.6 crore, YoY. EBITDA increased 32 percent to Rs 208 crore from Rs 157.6 crore and EBITDA margin improved by 300 bps to 12.6 percent to 96 percent, YoY.
Nish Bhatt, Founder & CEO, Millwood Kane International
Gold prices have been steadily rising in the past few sessions tracking international gold futures prices. The rally in the yellow metal continued past Rs 49,000/10gm earlier today to make a 4-month high. The rise in the yellow metal has been on account of the fall in US Treasury yields, softer US dollar which pushes up the gold prices. The commentary by the US Fed on rising inflation has also helped gold prices. The dollar index is currently over a 4-month low. The current scenario combined with the rising number of cases due to the second wave will lead to investors turning to a safe haven and help further rally in gold prices.
Bodal Chemicals | The shares of Bodal Chemicals rallied over 10 per cent after the company announced that it has incorporated a wholly-owned subsidiary in Indonesia.