Stock Market Highlights: Indian equity indices, Sensex and Nifty ended higher Tuesday led by strong gains in auto, IT and metal stocks amid positive global cues. Midcap and smallcap indices ended over 1.5 percent each. Selling was seen in PSU Bank, FMCG and pharma indices.
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Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term trend of Nifty continues to be positive. The unfilled opening upside gap and the formation of a small positive candle could hint at a possibility of profit booking emerging from the highs. Hence, bulls need to be cautious at the swing highs. Nifty not showing any profit booking in the next couple of sessions could open the next upside levels of 15,450-15,500 in the near term. Immediate support is placed at 15,000 levels.
Manish Shah, Founder, www.Niftytriggers.com
Nifty closed the day sharply higher as Nifty broke above the major consolidation pattern. The barrier at 15,050-15,000 is now standing clear. The range-bound action in the last three months is now coming to an end. Nifty was locked in a trading range for the last two months and as the market gapped above the resistance zone this seems to be a breakaway gap. Price gapping out of a consolidation area enhances power of a breakout. With this Nifty is likely to see a rally towards the recent high at 15,430-15,500 and a break above zone could mean a rally towards 16,000-16,100 over the next several weeks Oscillators are also showing that the momentum is picking. After a gap of two months, RSI has managed to move above 60. MACD is in buy mode. As long as Nifty holds above 14,750 the trend has changed from sideways to up. Traders should be long this market.
Ajit Mishra, VP - Research, Religare Broking
Nifty has finally regained momentum after spending nearly two months in a consolidation range and reclaimed the 15,000 mark. The rise can be attributed to a decline in India's COVID cases and stability in the global markets. Among the sectoral indices, banking and auto have witnessed decent traction in the last two sessions after underperforming for nearly a month or two. Indications are in the favor of prevailing up move to continue thus we suggest continuing with the “buy on dips” approach.
Sugandha Sachdeva, VP- Commodity & Currency Research, Religare Broking
A relentless rally in the domestic equities, strong portfolio inflows and a weak dollar index are steering the Indian rupee on a higher trajectory. The accelerated vaccination drives in the US and the UK are leading to optimism with regards to robust global economic growth and have boosted 'risk-on' sentiments in the markets. Even as inflation worries persist, the recent statements from the US Fed officials have eased concerns with regards to a sooner than expected rate hike by the US Fed. That's suppressing the greenback and favouring an appreciation bias for the domestic currency in the near term. Markets will now look forward to minutes of the Fed's April meeting for further cues about the central bank's monetary policy stance. As of now, we expect the rupee to post further gains towards the 72.70 mark, from where we may see it reversing course.
Market At Close | Bharti Airtel top Nifty loser after a mixed set of earnings in Q4.
Market At Close | M&M, Bajaj Auto, Titan, Bajaj Fin & Tata Motors top Nifty gainers.
Market At Close | Market gains for second straight day; Midcap index at record high.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Index maintained its bullish stance till the end of trade today. If we can keep this momentum going, the next target for the Nifty is 15,250. The markets have a good support level at 14,700 and as long as that is holding, any intraday dip or correction can be utilized to enter long positions for higher targets.
Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
Nifty has finally managed to break out of its 2-month consolidation range, primarily underpinned by a sharp rally among banking stocks over the past two sessions. In doing so, Nifty has also broken above the neckline of an inverse Head and Shoulder pattern, which is a bullish pattern that signals at price gains. Going forward, the 15,000-14,970 zone should now act as a support for Nifty. As long as this zone holds, we expect the index to march higher to fresh highs in the days ahead.
Meanwhile, strength is seen among the broader markets as well, with the Midcap 100 index rising to fresh lifetime highs and the Smallcap 100 index advancing to its highest level since January 2018. Over the last few sessions, both the indices have managed to break out of a consolidation pattern and are indicating further strength going forward. Meanwhile, from a relative strength perspective, the broader markets are continuing to outperform Nifty and we expect this trend to persist in the short term.
Market At Close | Here are the highlights of today's market performance
- Market Gains For 2nd Straight Day; Midcap Index At Record High
- Sensex & Nifty Close At 2-month Highs, led By RIL & Financials
- Nifty Rises 185 Points To 15,108 & Sensex 613 Points To 50,193
- Nifty Bank Gains 463 Pts To 33,922 & Midcap Index 454 Pts To 25,267
- Market Breadth Favours Advances; Advance-Decline Ratio At 3:2
- M&M, Bajaj Auto, Titan, Bajaj Fin & Tata Motors Top Nifty Gainers
- Bharti Airtel Top Nifty Loser After A Mixed Set Of Earnings In Q4
- Canara Bank Falls Over 4% After Lower-than-expected Q4 Results
- ONGC & Oil India Move Higher As Brent Crude Rises Above $70/bbl
Closing Bell | The Indian equity benchmark indices ended higher Tuesday led by strong gains in auto, IT and metal stocks amid positive global cues. The Sensex jumped 612.60 points, or 1.24 percent to 50,193.33, while the Nifty closed at 15,108.10, up 184.95 points, or 1.24 percent. Broader markets outperformed the benchmarks as the Nifty Midcap100 and Nifty Smallcap100 indices ended 1.83 percent and 1.59 percent, respectively.
Among sectoral indices, Nifty Auto index rallied the most over 3 percent, followed by metal, financial services, private bank and media indices that rose over 1 percent each. Selling was seen in PSU Bank, FMCG and pharma indices. On the Nifty50 index, M&M, Bajaj Auto, Titan Company, Bajaj Finance and Adani Ports & SEZ were the top gainers while Bharti Airtel, ITC, Coal India, Dr Reddy's Laboratories, and Divi's Labs were the top losers.
Greenpanel Ind Q4FY21: Expect FY22 margins at 23-24.5%, says management
Greenpanel Industries delivered strong Q4 numbers, with its EBITDA and net profit figures surging on a year on year basis. The company's CFO V Venkatramani spoke to CNBC-TV18 on what aided this performance in the quarter gone by and what is the outlook going ahead in the current situation. On margins and debt reduction Venkatramani said, “Margins blended for MDF and plywood put together can be between 23-24.50 percent depending upon the capacity utilisations. We are targeting a reduction of Rs 150 crore at the net debt level during the current year and possibly we will target a similar number next year.” Read here.
FIIs shift to IT services, staples, energy from banks, NBFCs and healthcare in April
Foreign institutional investors (FIIs) cut weights in banks, materials, NBFCs and healthcare to push up their positioning in IT, staples, energy and discretionary in April 2021, according to CLSA. “On a MoM basis in April 2021, FIIs cut relative weights in banks, materials, NBFCs, healthcare and communication services to fund their weight additions in IT services, consumer staples, energy, discretionary and utilities,” CLSA said in its latest report. FIIs turned net sellers in April, selling equities worth $1.3 billion, after six consecutive months of strong inflows. They have sold shares worth another $0.9 billion in the first half of May 2021. The 'overweight' stance of FIIs on banks is now at a multi-year low, while their 'underweight' stance on materials is at a multi-year high, according to CLSA. Read here.
Abbott India Q4FY21 | The company's net profit rose 37.4 percent to Rs 152.5 crore from Rs 111 crore, while revenue grew 14 percent to Rs 1,095.5 crore from Rs 961.2 crore YoY. EBITDA jumped 48.5 percent to Rs 205.5 crore versus Rs 138.4 crore YoY and EBITDA margin came at 18.7 percent versus 14.4 percent, YoY. The board of directors recommended payment of a final dividend of Rs 120 and a special dividend of Rs 155 per equity share of Rs 10 each for the year ended March 31, 2021.
SEBI proposes framework for gold exchange, suggests trading in electronic gold receipts
Markets regulator SEBI on Monday proposed an elaborate framework for setting up a gold exchange wherein the yellow metal will be traded in the form of electronic gold receipts and will help in having a transparent domestic spot price discovery mechanism. Also, the proposed denominations -- reflecting underlying physical gold -- of Electronic Gold Receipts (EGRs) are 1 kilogram, 100 grams, 50 grams and subject to conditions, those can also be even for 5 and 10 grams. Apart from issuing a consultation paper on the gold exchange, the watchdog has come out with draft norms for vault managers and they will be registered as SEBI intermediaries. Read here.
‘HUL is a leadership factory,’ experts weigh on the high-profile leadership changes in FMCG sector
The fast-moving consumer goods (FMCG) space has been replete with high profile CEO changes. We have seen big changes at the helm of Godrej Consumer, Bata India, and VIP Industries in just the past few days. In this special discussion with Arun Maira (former chairman of Boston Consulting Group and former member of Planning Commission of India); Vinita Bali (former MD & CEO of Britannia Industries and Bhaskar Bhat, non-executive director of Titan discussed at length about the value creation by these key leaders and the returns they have been able to clock for these mega-companies over the years. First up, Bhat said CEOs can change people, processes, and performance in FMCG companies. Read here.
Indian rupee at 1-1/2-month highs on share gains, weak dollar
The Indian rupee rose for a third straight session on Tuesday, strengthening above the psychological 73 per dollar level for the first time since end-March, tracking sharp gains in the local share market and a broadly weaker US dollar. The partially convertible rupee was trading at 72.98/99 per dollar, after touching 72.9650, its highest since March 30 and stronger than its close of 73.21 on Monday.
Cipla Q4FY21 below estimates; mgmt says Remdesivir production ramped up
Cipla's Q4FY21 earnings came in below estimates. Revenue is lower due to India business slowing down and the API business also declining 10 percent on a year-on-year (YoY) basis. Umang Vohra, MD and Global CEO of Cipla discussed the performance. “We have guided to maintaining our track of profitability and growing the business from where we are. Our momentum is pretty strong as we look at our business trajectory with the upcoming launches in the US or with what we are doing in India, both for COVID disorders and disorders not related to COVID,” he said. “We feel confident about the momentum,” he added. Read here.
Market Update | Easy Trip +20%, GATI +20%, Burger King +10%, Snowman Logistics +8%, Allcargo Logistics +7%, Atul Auto +8%, IndiaMart +6%, Concor +7%.
Emkay Global on Colgate-Palmolive India
We remain positive on Colgate and expect management actions on innovations/GTM to improve growth and market share. Valuation at 35x FY23E EPS is reasonable and offers rerating potential. Maintain Buy with TP of Rs 1,820 (40x Jun-23E EPS) versus Rs 1,800 earlier.
Yash Sawant, Research Associate, Angel Broking
Industrial metal prices picked up in the latter half of yesterday’s trading session as the increase in Yangshan copper premium for the first time in the past couple of months infused optimism of recovery in demand in the world’s largest metal consuming nation, China. The base metals complex remained under pressure in the earlier weeks on signs of stalling demand from China. The gains came despite of the fact that China’s factory activities eased in April’21 in comparison to the earlier month as rising commodity prices and power consumption norms took a hit on their industrial sector. Also, retreating US Treasury yield on fading hopes over an interest rate hike any time soon kept a lid on the greenback which further support the Dollar-denominated industrial metals.
Hemang Jani, Head Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services
The Nifty Midcap 100 index yesterday crossed the 25,000-mark for the first time and continues to hit an all-time high as the sentiments improve. Over last 1 year, Nifty Midcaps have clearly outperformed, giving returns of ~94% vis-à-vis 65% return in Nifty. As domestic covid cases fell below the 3 lakh mark for the second day in a row since mid-April, helped by the extended lockdowns by majority states, sentiments have turned buoyant. Hopes have accelerated that soon restrictions/curbs would be eased once cases decline further. Even the news flows around vaccination front is boosting confidence as more Pharma companies are tying up for vaccine manufacturing. Visibility on economic recovery front improves as industrial activities largely continued even during the lockdown and now with restrictions likely to ease, consumer demand is expected to make a come-back. Thus investors are heading more for mid-cap stocks as growing risk appetite and cheaper valuations of these companies compared to large-cap peers have revived their popularity.