Stock Market Highlights: The Indian equity indices, Sensex and Nifty ended over 1 percent higher Monday led by gains in metals, banks and financial stocks amid positive global cues. Broader markets, smallcap and midcap indices supported the rally closing with strong gains. Barring Nifty Pharma, all other sectoral indices ended in the green led by Nifty Realty, Nifty Metal, Nifty PSU Bank and Nifty FMCG.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty crossed 14,526 but closed below it. Falling volumes on an up-day denotes caution while a healthy advance-decline ratio and relatively better performance of broader indices mean that the traders/investors are focused more on the broader markets than the large caps, where there is a risk of selloff by institutions. In the near term, the 14,339-14,405 band could offer support to the Nifty while a breach of 14,526 could take the Nifty up to 14,698.
Ajit Mishra, VP - Research, Religare Broking
Markets started the week on an optimistic note led by supportive global cues. Upbeat global cues combined with supportive earnings are helping the index to hold at higher levels despite COVID challenges. Also, the recent news of various countries extending help to India in the COVID flight further boosting the sentiment. We remain cautiously optimistic as volatility is likely to remain high on the back of derivative expiry and upcoming earnings announcements. Banking, metal and pharma are showing tremendous resilience and should be preferred for long trades on dips.
Rupee At Close | The Indian rupee ended near the day's high at 74.72 per dollar, amid buying saw in the domestic equity market. It opened higher by 16 paise at 74.85 per dollar against Friday's close of 75.01.
Manish Shah, Founder, Niftytriggers.com
Nifty closed the day higher by around 149 points. In last four days we see a series of bullish candles. It seems that Thurday’s bullish piercing line is giving way to bullish sentiments in the market. But we still need additional confirmation of a change in trend which on the last available data point is absent. Nifty has immediate resistance at 14,550-14,4570 a break above this and the index should see a move up towards 14,700. On the lower side, 14,350-14,320 should act as a support. Nifty shows a downsloping wedge pattern and the pattern breakout is around 14,700-14,750. For any substantial move on the upside to emerge, we need to see Nifty Breakout out of the pattern. Till this time expect the market to move listlessly for some more time.
Market At Close
- Market Closes Higher, Led By ICICI Bank, Reliance & Axis Bank
- Nifty Bank Rises 553 Points With ICICI Bank Contributing 287 Points
- Midcap Index Gains 1%; Market Breadth Favours Advances
- 38 Nifty Stocks Close Higher; ICICI, Axis, UltraTech & JSW Top Gainers
- Sensex Gains 508 Points To 48,387 & Nifty 144 Points To 14,485
- Nifty Bank Rises 553 Pts To 32,275 & Midcap Index 182 Pts To 23,675
- ICICI Bank Is Up Nearly 4% After Reporting A Strong Set Of Earnings
- Axis Bank Gains Over 4% & Bajaj Fin Over 2% Ahead Of Earnings
- M&M Fin Falls 9% After Reporting The Lowest AUM Growth In 5 Yrs
- Moody’s Changing Outlook To Positive Lifts Macrotech 9%
- SAIL, ICICI Pru, Godrej Prop, Vedanta, TVS Amongst Top Midcap Gainers
Closing Bell | The Indian equity market ended over 1 percent higher Monday led by gains in metals, banks and financial stocks amid positive global cues. The Sensex gained 508.06 points, or 1.06 percent to 48,386.51, while the Nifty ended 143.65 points, or 1.00 percent higher at 14,485.00. Broader markets, smallcap and midcap indices supported the rally closing with strong gains.
Among sectors, Nifty Realty gained the most over 4 percent followed by Nifty Metal, Nifty PSU Bank, Nifty FMCG and Nifty IT. Selling was seen in the pharma index. Axis Bank, JSW Steel, UltraTech Cement, ICICI Bank and Grasim Industries were the top Nifty50 gainers, while Cipla, Britannia Industries, HCL Technologies, BPCL and Sun Pharmaceuticals were the top index losers.
Market Watch: Dinshaw Irani, CIO of Helios India
On portfolio composition: We have three themes. First theme is private sector banks, infrastructure and healthcare – that seems to account for roughly around 30 percent of our portfolio. Same is the case with IT and pharmaceuticals, which is in the third bucket of our theme. That is around 29-30 percent of the portfolio and the middle theme is consumer discretionary – that is around 34-35 percent. Financials will definitely be a big chunk for us. NBFCs fall in the second bucket that is consumer-facing NBFCs.
On consumer discretionary: Autos is one thing that we will not be touching. Commodity prices are going to hit them. We have never been into multiplexes, we think the trend is changing. OTT is going to be the way forward rather than multiplexes. We are not into FMCG. Consumer discretionary is more of consumer durables which are underpenetrated durables. So those are the plays that we will play around with rather than pure consumer discretionary names and FMCG names.
Bitcoin jumps 8%, on course to snap five days of losses
Bitcoin jumped as much as 8 percent on Monday and was on course to snap five straight days of losses, though the cryptocurrency has slumped almost a fifth from its all-time high hit earlier this month. Bitcoin was last up 6.7 percent at $52,452 after touching its lowest since early March on Sunday. Other major coins ethereum and XRP, which tend to move in tandem with bitcoin, were up around 5 percent and 11 percent respectively.
Buzzing | Natco Pharma shares rally over 7.5% in trade today: Here's why
Natco Pharma Ltd share price jumped over 7.5 percent on Monday, touching an intra-day high of Rs 945 apiece. The uptrend in Natco Pharma stock price came in after the company said it is seeking an emergency approval of Molnupirair capsules for the COVID-19 treatment. Natco Pharma has applied to the Central Drugs Standard Control Organisation (CDSCO) in India for approval of Phase 3 clinical trial of the drug for the treatment of the COVID-19 positive patients. Read more.
Power Mech Projects | The company has bagged order worth Rs 343.44 crore from The Singareni Collieries Company Ltd for operations and maintenance work of 2x660 MW STPP.
Tata Teleservices (Maharashtra) Q4FY21 | The company’s net loss narrowed to Rs 288.29 crore from Rs 297.95 crore in the previous quarter. Revenue fell 4.7 percent to Rs 265.29 crore from Rs 278.41 crore, QoQ.
Meera Industries | The company has received a domestic order worth Rs 3.45 crore. Dodhia Synthetics Ltd, one of the largest exporters of carpet yarns from India has ordered 3 Sets of CT-260 Twister/Cabler machines, the company said. Meera Industries already has a strong presence in the carpet yarn manufacturing segment with its range of Cabling / Twisting and Continuous Heat setting machines.
Market Watch: Ruchit Jain, Angel Broking
- Buy SBI Life at current levels keeping a stop below Rs 915 for a target of Rs 970.
- Buy CCL Products with a stop below Rs 258 for a target of Rs 290.
Global Markets: Stocks start week in upbeat mood as recovery bets dominate
European stocks clawed their way higher on Monday as world markets began the week in a relatively upbeat mood following further signs last week that economies are recovering rapidly. The start to the week was relatively quiet, however, as investors refrain from taking on large positions ahead of a two-day Federal Reserve meeting beginning on Tuesday and quarterly gross domestic product numbers for the United States. But the general sentiment remained bullish with Wall Street hitting another intraday record-high on Friday and European shares not far off record highs in early Monday trading.
The broader Euro STOXX 600 gained 0.23% while Germany's DAX rose 0.22%. Britain's FTSE 100 climbed 0.21%. Asian shares also rallied where MSCI's broadest index of Asia-Pacific shares outside Japan reached its highest since March 18, despite a late sell-off in Chinese shares. Wall Street futures pointed to a slightly weaker open. The MSCI world equity index, which tracks shares in 49 countries, rose 0.2%.
Tamil Nadu to allow sterlite plant to reopen to provide oxygen supply
The Tamil Nadu government has passed a resolution paving way for the reopening of Vedanta’s Sterlite Copper plant in Thoothukudi for four months. The decision will aid in the augmentation of oxygen production in the state amid the surge in COVID-19 cases. The decision regarding the opening of the controversial plant came after an all-party meeting was convened to deliberate the stand to be taken by Tamil Nadu on Vedanta's plea in the Supreme Court, seeking its nod to open the company's Sterlite copper unit. During the meeting, all the parties, including the AIADMK, DMK, Congress, BJP, PMK and Left parties, endorsed the reopening of the plant for oxygen production.
Emkay Global Financial Services on Rallis India
We remain constructive on Rallis India, given 1) strong revenue growth, 2) favorable comparable going into FY22, and 3) strong balance sheet. Over the last two years, the company has improved its product portfolio in the domestic business, expanded in the international business and increased own registration in the international markets, which should aid revenue growth over FY22-23E. Maintain Buy with a revised target price of Rs 330, based on 23x Mar'23E EPS.
Indian steel demand expected to be strong; likely to jump by 19.8% YoY
Steel prices are nearly 12 percent up in April. Trading at nearly all-time highs, prices are up 26 percent for the year. The World Steel Association suggested that the estimated global steel demand for 2021 could be up by 6.1 percent at around 1,875 million tonnes. China will comprise 3 percent of it at around 1,025 tonnes. Indian demand is expected to be quite strong. The demand could be up by 19.8 percent as compared to last year at around 106 million tonnes. Watch here.
Nestle confirms discussions to acquire vitamin maker Bountiful
Nestle is in discussions to buy nutritional supplement maker The Bountiful Company, the Swiss food giant said on Monday, confirming earlier reports it was close to a deal in the mid-single-digit billions. ”Nestlé S.A. today announced that it is in discussions to acquire all or part of The Bountiful Company,” Nestle said, following reports last week. The maker of KitKat chocolate bars and Nescafe instant coffee declined to give further details. Bountiful, which is majority-owned by private equity firm KKR Co & Inc, makes Nature’s Bounty vitamins, Osteo Bi-Flex joint-care supplements, and Puritan’s Pride vitamins and supplements. Read more here.
Packaging industry takes handsome strides in Q4; expects FY22 growth at 8-10%
The one sector that has done exceptionally well ever since COVID-19 emerge is the packing industry because now there is more emphasis on safety, sanitation and hygiene. In an interview with CNBC-TV18, Pankaj Poddar, CEO of Cosmo Films and Rajesh Bhatia, group president-finance and accounts & CFO of Uflex discussed at length whether the demand has gone up and how is the situation on the ground.
Poddar said that packaging demand has risen in a similar manner as last year. “Flexible packaging demand has gone up. Labelling demand because of sanitisers and drinks has done up, tape demand has gone up because there is more online ordering that consumers are doing. Only one segment which has been impacted is textile because retail is not open in many cities, but overall the demand is higher than the normal demand.” Read here.
HDFC Securities Institutional Research on ICICI Bank
ICICI Bank clocked an impressive all-round performance across metrics demonstrating high-quality market share gains on both sides of the balance sheet, strong operating profits and a future-proofed balance sheet to capitalise on tailwinds from receding competitive intensity. On the back of rising granularity on both sides of the balance sheet, industry-leading technology initiatives for new-to-bank (NTB) business sourcing, ICICI Bank is poised to scale its 15% ROE and above-industry growth aspirations. Despite macro-headwinds stemming from the second wave of the pandemic, we see limited speedbumps in ICICI Bank’s continued journey towards high growth and superior profitability. Maintain BUY with revised SOTP price of Rs 649.
Heranba Industries | The company has acquired Industrial Shed No-A/2211 measuring 2702 sq. mt. adjacent to Manufacturing Unit II of the company is located at Plot No. A-2/2214, A2/2215, III Phase GIDC, Vapi, Taluka – Pardi, District – Valsad, Gujarat.
Market Watch: Dhananjay Sinha, Director & Head-Institutional Research, Systematix Group
On Market: Correction in the market has been very shallow. It has been roughly about 5 percent from the peak. Deep correction has happened in PSU banks, Nifty Bank, autos, and domestic cyclicals. So, looking at ploughing back funds into cyclicals.
On Banks: Large banks who have raised money, have good ALM capacity and who have managed their credit cost well, I think they will continue to do very well and ICICI Bank has been our favourite pick.
On Nifty Bank: Nifty Bank had doubled and there has been a correction of about 14 percent from the peak. My view is that the Nifty Bank will still be going towards 40,000 largely driven by large private banks.
On Metals: Metals, IT has done well. They have risen by 20 percent and 11 percent respective since the second wave of COVID. Vedanta is the top pick in metals.