Stock Market Highlights: Indian equity indices, Sensex and Nifty ended higher Thursday led by gains in metals, auto, and IT stocks. Broader markets, midcap and smallcap indices supported the upward momentum. Selling was seen in PSU Bank and pharma stocks.
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Manish Hathiramani, proprietary index trader and technical analyst at Deen Dayal Investments
We have crossed the 14,700 mark today. What needs to be seen is if the Nifty is able to sustain above this level for a day or two. If we are successful in doing so, the markets can scale up to 15,100-15,200. On the flip side, if this poses to be a resistance level, we could drop back to 14,400 and continue downwards to 14,000-14,100. We are in a “wait and watch” situation and have to tread this phase patiently.
Deepak Jasani, Head of Retail Research, HDFC Securities
Indian benchmark equity indices rose for the second straight day following healthy global cues. The Nifty opened higher and kept making higher tops higher bottoms through the day. Nifty moved above the high of May 04, thus signalling that the May 03 bottom of 14,416 is a short term bottom. The next resistance for the Nifty is at 14,846 while the support is at 14,601. FPI selling seemed to be subdued today, while local traders continued to ramp up prices of select small and midcap stocks.
Manish Shah, Founder, www.Niftytriggers.com
Nifty closed the day higher and the pattern in play in the last three days is a three inside-out pattern. This is a bullish pattern that has worked well in the last three months and usually, Nifty sees a follow-up rally at least for a couple of days. Nifty still has to cross over the recent highs at 15,000-15,050. This is the critical level for the index to clear if the uptrend needs to be sustained. This zone has been tested thrice in the past and the general rule is that a zone could get tested thrice; the fourth time it goes thru. If this adage holds we should see Nifty see a breakout from 15,000 to 15,050 this time. If Nifty trades and holds above 14,750 expect a rally to around 15,050-15,000 in the next couple of days. Support is at 14,650-14,630. A break below this could mean a drop to 14,500. Nifty is showing a tendency to bounce off the lows. Any drop at 14,500 would mean a buying opportunity.
Market At Close | Here are the highlights from today's markets session
- Market Recovers From Opening Lows To Close Near Day’s High
- Sensex Gains 336 Points & Nifty 113 Points From Lows
- Financials Relatively Underperform With Nifty Bank Closing Flat
- Midcap Index Gaining 1%, Helps Market Breadth In Favour Of Advances
- Nifty Closes 107 Points Higher At 14,725 & Sensex 272 Points Higher At 48,950
- Nifty Bank Gains 44 Points To 32,828 & Midcap Index 229 Points To 24,639
- Metal & IT Gain The Most Amongst Indices; Nifty Metal Up 2.5% & IT Up 2%
- Tata Steel Closes Off Highs But 3% Higher After Strong Q4 Earnings
- 2-wheelers Stock Move Higher With Hero Gaining Over 4% & Eicher 3%
- Coforge Surges 17% After Better-than-expected Q4 Earnings & Guidance
- Strong Earnings Lead To Big Gain Midcap IT Stocks; Mphasis Up 6%, Mindtree 4%
Ambareesh Baliga, Independent Market Expert
With near lockdown in most of the states, the economy has to slowdown. I would assume that it will be at least about 400-500 basis points lower than our earlier estimate. Corporates are also talking of lower estimated results for FY22 with Q1 more or less a washout. So, looking at all this, I don’t see how the markets can continue moving up, except for the confidence that retail investors have. So, I would be very cautious at this time, but traders should play with very strict stop losses.
Closing Bell | Indian equity indices ended higher Thursday led by gains in metals, auto, and IT stocks amid positive global cues. The Sensex added 272.21 points, or 0.56 percent to close at 48,949.76, while the Nifty ended 106.95 points, or 0.73 percent higher at 14,724.80. Broader markets, Nifty Midcap100 and Nifty Smallcap100 indices ended 0.94 percent and 0.70 percent higher, respectively.
Among sectoral indices, Nifty Metal ended over 2 percent higher, followed by IT, auto and media indices that rose 1 per cent each. Selling was seen in PSU Bank and pharma indices. Hindalco Industries, Hero MotoCorp, Wipro, Tata Motors and Tata Steel were the top Nifty50 gainers, while UPL, Bajaj Finserv, PowerGrid Corporation, Sun pharmaceuticals and NTPC were the top losers.
Tough to manufacture COVID vaccines sans tech transfers: Zydus Cadila
The United States has backed the plan to suspend COVID vaccine patents. However, Dr Sharvil Patel, MD of Zydus Cadila said that patents do not cover every detail of the biological process and it will be difficult to manufacture COVID vaccines on our own without technology transfers. “Practically if one has to do a technology transfer, I would believe it would require at least 6 months. Not only do you need to do the technology transfer which is at small scale, but when you have to scale this process up to make a good vaccine that matters in terms of population, you will have to do a capital investment which again is going to take anywhere between 6-9 months even if you are very aggressive,” he said in an interview to CNBC-TV18. Read more.
Indian monsoon onset expected around June | Monsoon rains that mark the start of the four-month rainy season are likely to enter India through the southern coast around June 1, in line with typical patterns, a top government official said on Thursday. India’s weather office will issue its official forecast for this year’s monsoon onset on May 15.
Expect 15% volume growth going ahead; surge in input price may impact margins: Kirloskar Ferrous
Kirloskar Ferrous is reacting to a stellar set of Q4 earnings. It was their best ever quarterly EBITDA with the Q4 EBITDA coming in at 90 percent of the entirety of FY20. RV Gumaste, MD of the company spoke to CNBC-TV18 to give the fine print and outlook going ahead. On volumes, Gumaste said, “The demand for both our products casting as well as pig iron continues to be quite good. But as you know the COVID-19 pandemic is a matter of concern for all the industries and as well to Kirloskar Ferrous. This year we can expect the increase in volumes of pig iron because we have our Hiriyur plant operational. Overall we should give good volume growth coming in the pig iron business as a total.” Read more here.
Copper and aluminium prices hit an all-time high; here’s what expert thinks
Copper and aluminium have seen an all-time high in Indian markets. For copper it has been about strong demand and the inventories which have continued to decline on LME and Shanghai as well. On aluminium - it is about China and Australia, we have seen a fallout there and there has been a statement from China saying all economic activities with Australia as of now stands suspended. So that is pushing the aluminium prices on the higher side as well.
On fallout between China and Australia and its impact on commodities, David Lennox of Fat Prophets said, “The information that has come out of China is somewhat disturbing from Australian point of view, but also it is now going to put a lot of tension inside the commodities market primarily because Australia is a major supply into the Chinese market. So if we do see the disruptions going through, that is going to cause in the near term anyways some significant requirement for the product to be found and sourced elsewhere from the Chinese. That is probably not going to be an easy task in the short-term.” Watch here.
Hikal Q4FY21 | The company's consolidated net profit jumped to Rs 50.9 crore from Rs 24.5 crore, while revenue increased 40.5 percent to Rs 532.5 crore from Rs 379 crore, YoY. Consolidated EBITDA rose 54.7 percent to Rs 109.3 crore from Rs 70.6 crore and EBITDA margin expanded by 190 bps to 20.5 percent from 18.6 percent, YoY.
HDFC Securities on L&T Infotech
We maintain ADD on L&T Infotech (LTI), following a strong 4Q and continuity in top quadrant growth ahead. LTI’s growth profile has been the most consistent and it’s expected to continue, based on net new large deal wins trajectory and consistent USD 20 mln+ net new wins; strong tractions in BFS and positive outlook on T1 account; recovery expectation in E&U vertical and Insurance vertical; investments to augment capabilities with hyperscalers – AWS/Azure, and continuity of strong new logo addition supplemented by LTI’s robust client mining program. Our Target Price of Rs 4,210 values LTI at 26x Mar-23E EPS, factoring in 17/22% CAGR in revenue/EPS over FY21-23E.
Market Watch: Himanshu Gupta of Globe Capital
- Vedanta is a buy with a stop loss below Rs 265 and target of Rs 285
- Bharti Airtel is a buy with a stop loss below Rs 552 and target of Rs 580
- ICICI Bank is a buy with a stop loss below Rs 603 and target of Rs 622
JB Chemicals & Pharmaceuticals | The company has announced its foray into the area of Nephrology with a new dedicated division called “RENOVA” which will endeavour to serve patients who are under treatment for Chronic Kidney Disease.
CLSA on Tata Steel
Tata Steel’s 4Q adjusted consolidated Ebitda of Rs 139 billion was above estimates with a beat across all segments. Standalone Ebitda/t of Rs 27,800 was its highest ever and 1QFY22 looks even better. Europe profitability of USD 66/t was better (awaiting clarity on carbon cost impact) and the spot spread is USD 240/t higher than in 4Q. Net debt fell Rs 107 billion QoQ, partly helped by proceeds from a share issuance (Rs36bn). Tata Steel resumed work on Kalinganagar expansion, which is positive following its strong debt reduction. It approved a dividend of Rs 25/share. The outlook for steel prices, Europe profitability and the timeline for expansion will be key from the call.
Sundram Fasteners Q4FY21 | The company's consolidated net profit rose to Rs 140.8 crore from Rs 54.6 crore, while revenue grew 53.2 percent to Rs 1,273.1 crore from Rs 830.9 crore, YoY. Consolidated EBITDA jumped 92.8 percent to Rs 236.8 crore as Rs 122.8 crore and EBITDA margin stood at 18.6 percent against 14.8 percent, YoY.
COVID vaccine capacity stumbling block, not patents: Biocon’s Kiran Mazumdar Shaw
US President Joe Biden on Wednesday threw his support behind waiving intellectual property rights for COVID-19 vaccines, bowing to mounting pressure from Democratic lawmakers and more than 100 other countries. However, according to Kiran Mazumdar-Shaw, executive chairperson of Biocon, just waving patents is not enough. “Vaccine inequity is raising a very serious debate about patent waivers. The point is that just waiving patents is not enough; this is not a stumbling block. I do not think patents are the stumbling block at the moment. The stumbling block is capacity for the world,” Mazumdar-Shaw told CNBC-TV18. Read more.
Emkay Global on RBI measures
We believe these measures are first in the series of the relief measures to be announced by RBI and more should come from RBI/Govt as the situation evolves. No moratorium announcement is good news as it disrupts credit discipline, and thus chances are low hereon as if it was to be announced, it would have been done now.
However, RBI still can provide forbearance (say for 30-90 days) on NPA recognition which has been done in the past (post Demonetisation) and is relatively less disruptive. Among the measures announced today, we believe SFBs (Equitas, Ujjivan, AU SFB) are the key beneficiaries given opening up of new SLTRO window for on-lending to small borrowers/PSL status for lending to small MFI.