Stock Market Highlights: Indian equity indices, Sensex and Nifty ended lower Friday after the RBI kept the key policy rates unchanged while maintaining an accommodative stance. Broader markets outperformed the benchmarks as the midcap and smallcap indices closed higher. Among sectors, gains were seen in metals, auto and realty indices, while banks, FMCG and pharma indices ended in the red.
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Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term uptrend status of Nifty remains intact and the last two sessions consolidation movement has not changed the positive sentiment of the market. The next upside levels to be watched around 15,800-15,900 levels, before showing any downward correction from the highs. This could be achieved by next week. Immediate support is placed at 15,600 levels.
Ajit Mishra, VP - Research, Religare Broking
Markets traded volatile in a range and ended flat as participants preferred to book some profit at higher levels. The MPC’s monetary policy outcome came in line with street expectations thus failed to trigger any major reaction. With no major domestic event, the focus would shift to global indices for cues. Besides, as new COVID cases have seen a considerable decline, all eyes would be on state governments for further easing of the restrictions. We may see some profit-taking or consolidation in the benchmark early next week however the trend would remain positive. Traders should maintain their focus on identifying the right stocks and utilize the dips to accumulate.
Nirali Shah, Head of Equity Research, Samco Securities
Nity50 index has crossed the major rising channel support and is now trading around it. Market breadth also remained positive for most of the week but BankNifty is still a point of concern given that it is still trading below its previous resistance. BankNifty might take its own time to catch up but it can also turn out to be a classic Dow Theory divergence where one index is making a new high but the other is making a lower high. Until we don't see any significant bearish evidence, we suggest traders maintain a mildly bullish outlook. The immediate support is now placed at 15,350.
The fourth-quarter result season pace has been relatively slower this fiscal wherein relatively fewer companies from several sectors have announced their earnings till now. The coming weeks could see a number of PSU heavyweights including SAIL, NTPC, Coal India etc. in focus as they come out with their numbers. Further, key developments on the disinvestment story could also keep the PSU stocks on radar. Investors should therefore place trades cautiously on PSUs to buffer from any unforeseen shocks owing to such announcements. Meanwhile, Indian markets could continue to mimic the movement across global commodities and equities.
Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services
The RBI policy did not have a major reaction on the fx market, and USDINR spot is flat as traders wait for the US NFP data. The US NFP data will be a key determinant of the market mood for June. After yesterday’s ADP jobs data, expectations have increased for a strong reading of nonfarm payrolls and a stronger-than-expected figure will squarely puts the focus on the FOMC meeting on 16 June, probably sending the dollar higher against its major peers. In USDINR spot, 73.25-73.30 is a crucial resistance, a consistent above that can push prices towards 73.60-73.75 zone while 72.75-72.50 will act as crucial support.
Manish Shah, Founder, Niftytriggers.com
Nifty closed the week with a net gain of 1.5 percent over the close of the previous week. Nifty on the weekly time frame has closed above the prior swing high and this is a trend continuation signal. A close above 15,650 means that Nifty should continue its up move and trend pattern remains unhindered. On the weekly time frame the MACD line has “hooked” up and it is just a tad below the signal line. RSI has also moved above 60 and this underlying trend is strong. Weekly charts point out towards trend continuation to 15,800-15,850 on the way towards 16,250 as an achievable target. On the last day of the week, Nifty just snaps its winning streak as the day closed almost unchanged. Nifty is in a state of a strong trend and at best we could see 1-3 days of corrective decline. The low of the day Nifty took support at the gap area between 15,600-15,610 and bounced off the lows. This is a trend continuation signal. Buy dips or endure a couple of days of listless action. Nifty should see a steady rally to 15,800-15,850 and notwithstanding short-term declines. Rally over the course of the month should hit 16,000+ levels. Stay with the trend.
Market At Close | Market Gains For 3rd Straight Week; Nifty & Sensex Rise Over 1% Each.
Market At Close | Market Breadth Favours Advances; Advance-Decline Ratio At 4:3
Market At Close | Sensex & Nifty Close Flat With Banks Dragging The Market. Midcaps Outperform Frontliners With Midcap Index Gaining Nearly 1%.
Rupee At Close | The Indian rupee ended lower at 73 per dollar, amid selling in the domestic equity market after RBI kept the key rates unchanged. The local currency opened lower at 73.02 per dollar against Thursday’s close of 72.91 and traded in the range of 72.95-73.12.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The index has closed a few points below 15,700 but the trend still remains positive and we should head to 15,900-16,000. The Nifty has multiple supports at 15,600,15,400 and 15,300. The most crucial of these is the 15,300 level which needs to be respected on a closing basis. Intraday dips should be utilized to accumulate buy positions on the index for higher targets.
Market This Week | Here are the highlights of market performance in this week
- Market Gains For 3rd Straight Week; Nifty & Sensex Rise Over 1% Each
- Midcap Index Gains Over 3% & Nifty Bank 0.4%; Realty Index Top Gainer
- 40 Of 50 Nifty Stocks Give Positive Returns This Week
- ONGC, Adani Ports, Bajaj Fin, Titan, Tata Motors Top Nifty Gainers
- M&M, ITC, Infosys Top Nifty Losers This Week
Market At Close | Here are the highlights of today’s market performance
- Sensex & Nifty Close Flat With Banks Dragging The Market
- Midcaps Outperform Frontliners With Midcap Index Gaining Nearly 1%
- Sensex Slips 132 Points To 52,100 & Nifty 20 Points To 15,670
- Nifty Bank Falls 357 Pts To 35,292 While Midcap Index Rises 189 Pts To 26,552
- PSUs Like ONGC, Coal India & IOC Amongst Top Nifty Gainers
- L&T Rises Nearly 2% Post Positive Comment From Management
- Adani Stocks Continue To Move Higher; Adani Ent Up 8%, Adani Pwr Up 5%
- Housing Fin Cos Gaining On Continued Upmove In PNB Housing
- Indiabulls Housing Fin Surges 14%, LIC Hsg 6% & HDFC Over 1%
- Bharat Forge Surges 8% On Better-than-expected earnings & Strong Outlook
- NMDC Rises 4% As Private Miners Likely To Have Hiked Prices
- Spandana Sphoorty Rises 7% On Rpts Of Axis Bk Mulling To Buy The Company
- Market Breadth Favours Advances; Advance-Decline Ratio At 4:3
Closing Bell | Indian equity benchmark indices ended lower Friday after the RBI kept the key policy rates unchanged while maintaining an accommodative stance. The Sensex fell 132.38 points, or 0.25 percent, to close at 52,100.05, while the Nifty settled 20.10 points, or 0.13 percent, lower at 15,670.25. Broader markets outperformed the benchmarks with the midcap and smallcap indices up 0.7 percent and 0.4 percent, respectively.
Among sectors, gains were seen in metals, auto and realty indices, while banks, FMCG and pharma indices ended in the red. On the Nifty50 index, Tata Motors, Grasim Industries, Coal India, Bajaj Finserv and ONGC were the top gainers while Nestle India, SBI, Hindalco Industries, HDFC Bank and Axis Bank led the losses.
Market Watch: Dipan Mehta, Director, Elixir Equities
On BPCL & CONCOR | It is an economically sensible stock, so whenever the economy and the industrial activities will improve, CONCOR will immediately get higher revenues and then operating leverage also will come into play. So from a disinvestment point of view one should stick to BPCL and CONCOR.
On Bharat Forge | Given its present valuation, which is quite stretched at this point of time, I would give Bharat Forge a pass for the time being. a lot of the revenues are coming because of pent-up demand as well and one doesn’t know a couple of years down the line, how the actual growth rates will pan out of Bharat Forge. On an overall basis, on a risk-return profile, I don’t think that Bharat Forge can give exceptional returns from this point of time.
Bank of India logs profit of Rs 250 cr in Q4
State-owned Bank of India on Friday reported a standalone net profit of Rs 250.19 crore for the quarter ended March 31, 2021. It posted a net loss of Rs 3,571.41 crore in the year-ago period. However, the net profit in the period under review was lower than Rs 540.72 crore in December quarter 2020-21, Bank of India said in a regulatory filing. Total income during March quarter 2020-21 was down at Rs 11,379.84 crore as against Rs 12,215.78 crore in the year-ago period. For full-year 2020-21, the standalone net profit was registered at Rs 2,160.30 crore against a net loss of Rs 2,956.89 crore in the previous year. Read here.
Lupin launches generic inhalation product in US market
Dug firm Lupin on Friday said it has launched Arformoterol Tartrate, an inhalation product to treat conditions like chronic bronchitis and emphysema, in the US market. The Mumbai-based company’s product is the generic version of Sunovion Pharmaceuticals Inc’s Brovana inhalation solution, Lupin said in a statement. Arformoterol Tartrate inhalation solution is indicated for the long-term treatment of bronchoconstriction in patients with chronic obstructive pulmonary disease (COPD), including chronic bronchitis and emphysema. It is for use by nebulisation only, the drugmaker noted.
Religare Finvest on RBI Monetary Policy 2021
The RBI has adopted a wait and watch strategy by adopting status quo on policy rates and this is on expected lines. At the same time, it has reiterated that growth remains a priority while the need for policy action from all sides to support business sentiment revival, including fiscal measures is warranted. It is now clear that RBI may be waiting for the second wave to abate (which it currently is showing the definite signs) and it is then expected to take action by further reducing policy rates to revive growth on a sustainable basis. At the same time, the central bank continues to assuage the markets by launching a host of measures to support growth and ensure adequate liquidity in the banking system. Further, RBI’s move to enhance the overall exposure from INR 25 crores to INR 50 crores under Resolution Framework 2.0 is expected to help more MSMEs, non-MSMEs and individuals who have taken loans but have been impacted by the pandemic. This will help bring down systemic risks in the banking system.
Bayer launches Consumer Health division in India
Global life sciences firm Bayer on Friday said it has launched its Consumer Health division in India comprising 10 brands across the categories of allergy, dermatology, nutrition, and analgesics. These brands include Saridon, Supradyn, Becozym C Forte, Benadon, Alaspan, Canesten, and Bayer’s Tonic. These products will be manufactured locally in India, Bayer said in a statement. ”The brands Saridon and Supradyn licensed to Piramal Consumer Products division in the past, have been transitioned back to Bayer’s new Consumer Health business at the end of the licensing agreement term. Piramal will continue to distribute these brands for Bayer Consumer Health in India,” it added. The Bayer Consumer Health division aims to expand access to everyday health solutions and reach over 100 million consumers across all communities in India over the next five years, the statement said. Read here.
Defence Ministry clears mega naval project to build 6 conventional submarines
The Defence Ministry on Friday cleared a mega project to build six conventional submarines for the Indian Navy at a cost of around Rs 43,000 crore, a decision aimed at narrowing the gap with the growing naval prowess of China, government sources said. The decision was taken at a meeting of the Defence Acquisition Council (DAC) chaired by Defence Minister Rajnath Singh. The DAC is the Defence Ministry’s highest decision-making body on procurement. Read here.
NIIT Q4FY21 | The company' consolidated net profit jumped to Rs 46.5 crore from Rs 0.6 crore, while revenue rose 30.5 percent to Rs 275.5 crore from Rs 211.2 crore, YoY. EBITDA increased to Rs 68.4 crore as against Rs 2.1 crore and EBITDA margin improved to 24.8 percent from 1 percent, YoY.
Carsten Menke, Head of Next Generation Research, Julius Baer
A better-than-expected gauge of the US labour market put pressure on gold and silver, suggesting that the metals’ focus is back on the economic outlook. We remain confident about recovering global growth and amid receding inflation risks, we believe the demand for gold and silver as a safe-haven should fade further. This is unlikely to be offset by rebounding Asian demand, and we see lower rather than higher prices ahead. As prices rebounded during the past few weeks, the gold and silver markets challenged our view that the economic outlook is the more dominant driver of prices, rather than the US inflation, the US dollar, or US bond yields.
Yash Gupta Equity Research Associate, Angel Broking
Real estate stocks are back in action after a long consolidation. The real estate market got hit by the COVID in March 2020 and after that the sector has shown a good recovery in the last 6 months. We have a buy call on Godrej Properties with a target price of Rs 1,600. Godrej Property has a robust pipeline of 12.3 msf for upcoming years and is expecting further new launches in Mumbai upon relaxation in lockdown. We are expecting a strong recovery in the residential market in the 2nd half of 2022. The company has a strong brand and we believe that the company would benefit from the trend of organized players gaining share.