Stock Market Highlights: Indian equity indices, Sensex and Nifty ended higher on Monday led by strong gains in metals and pharma stocks amid positive global cues. Midcap and smallcap indices ended over 1 percent higher each. All the sectoral indices ended in the green with auto, energy, infra, pharma, metal, and PSU Bank indices rose 1-3 percent.
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Ajit Mishra, VP - Research, Religare Broking
Markets started the week on a firm note on the back of positive global cues. We remain cautiously optimistic on the back of rotational buying in select index majors amid the rising COVID cases. Besides, buoyant global cues are also helping in limiting the downside. Going forward, earnings announcement, macroeconomic data viz. IIP, CPI and WPI data along with COVID-19 updates would remain on participants' radar. Meanwhile, we suggest continuing with the "buy on dips" approach and focusing more on the selection of stocks.
Deepak Jasani, Head of Retail Research, HDFC Securities
Indian benchmark equity indices closed higher for the fourth straight session on May 10. Nifty has made another upgap in succession but ended with a Doji for the second consecutive session, indicating partial profit-taking towards the close especially as it approached 15,000. Investors are mindful of the market fallout as state after state locks itself down in India to contain the spread of the coronavirus as infections and deaths surge and hence keep taking profits rotationally. 15,044-14,863 is the band for the Nifty in the near term.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The markets have closed well above the 14,700 levels. The Nifty should be headed to 15,200-15,250 with strong support at 14,700. Any dip or correction can be utilized by traders to buy into this market for higher targets.
Rupee At Close | The Indian rupee ended at day’s high at 73.34 per dollar amid buying in the domestic equity market. The local currency opened lower by 13 paise at 73.63 per dollar against Friday’s close of 73.51 and traded in the range of 73.33-73.48.
Market At Close | Here are the highlights from today's market session
- Market Gains For 4th Straight Day To Close At A 2-month High
- Nifty Rises 119 Points To 14,942 & Sensex 296 Points To 49,502
- Midcap Index Ends At A Record Closing High; Up 231 Pts To 24,777
- Nifty Bank Gains 238 Points To 33,142; Kotak Bank & ICICI Top Gainers
- UPL Top Nifty Gainer After CLSA’s Positive Stance On The Stock
- Oil Mktg Cos Continue To Gain On Rising Fuel Prices; IOC Up 5%
- Surge In Global Prices Lifts Metal Stocks; Hindalco Up 6%, Tata Steel Up 3%
- UltraTech Reports Strong Earnings, But Demand Concerns Drag The Stock
- BHEL, Torrent Power, NMDC, Nalco, Motherson Top Midcap Gainers
- Market Breadth Favours Advances; Advance-Decline Ratio At 2:1
Closing Bell | Indian equity benchmark indices ended higher on Monday led by strong gains in metals and pharma stocks amid positive global cues. The Sensex rallied 295.94 points, or 0.60 percent to 49,502.41, while the Nifty closed 119.20 points, or 0.80 percent higher at 14,942.35. Midcap and smallcap indices ended over 1 percent higher each.
All the sectoral indices ended in the green with auto, energy, infra, pharma, metal, and PSU Bank indices rose 1-3 percent. On the Nifty50, Coal India, UPL, Hindalco Industries, IOC and Larsen & Toubro were the top gainers, while Shree Cement, Britannia Industries, UltraTech Cement, Infosys and Hero MotoCorp were the top losers.
Market Watch: Deepak Shenoy, Founder, Capitalmind
PSU metal stocks | PSUs stocks move last in a rally, I think these are trading plays, very short-term in nature. When I say short-term I am talking about 6 months to year. I see these stocks trading play so one should trade them with maybe a trading stop loss.
Coal India | In general, Coal India will hurt if the demand for metal and the demand for other commodities around the globe start to come down. Till then Coal India is a decent dividend yield play. We don’t own it that is only because I don’t see growth in it.
RBI's relief measures to only delay stress for financial institutions: Fitch
Relief measures announced by India’s central bank last week to help lenders and borrowers during the new devastating wave of COVID-19 infections will only delay the stress for financial institutions, Fitch Ratings said on Monday. The Reserve Bank of India (RBI) rolled out last Wednesday a slew of measures including a loan restructuring scheme to help lenders tide over mounting bad loans and give some borrowers more time for debt repayment. Fitch said these measures would provide some relief to financial institutions over the next 12-24 months but at the expense of delaying the recognition and resolution of underlying asset-quality problems. The central bank may unveil more measures to support the financial sector, like credit guarantee schemes or a blanket moratorium, if indications of economic stress mount, the ratings agency said. Read full report here.
Markets Watch: Rajesh Bhatia, MD & CIO, Investment Trust of India (ITI) Long -Short Equity Fund
Auto and Financials | Auto has underperformed or declined probably by 10 percent and so are financials. Some of the larger banks have declined by 10-12 percent also. It is time to build some of those positions back on to a long side.
Metals | Metals are a major portion of our portfolio. There is a shortage of commodities in the spot market as we speak and this is before even the global recovery has reached a certain momentum. So the thesis seems to be fairly attractive
Buzzing | Vivimed Labs shares hit 5% upper circuit after co gets nod to manufacture Favipiravir tablet
The shares of Vivimed Labs were locked in a 5 percent upper circuit at Rs 28.45 per share on Monday after the company received approval to manufacture Favipiravir tablet for COVID-19 treatment. The company announced the receipt of approval from the government to manufacture and market Favipiravir Tablet 200 mg and 400 mg under Vivimed’s own brand name “Favulous” across India. It is used for the treatment of mild to moderate cases of COVID-19, it said in a BSE filing. Read here.
M&As rise 8% to $32.3 bn till April despite Covid wave: Report
A massive 133 percent jump in the proceeds from initial public offerings (IPOs) has seen the deal street on a near roll in spite of the raging second wave of the pandemic, with the value of mergers and acquisitions increasing by 8 percent to USD 32.3 billion across 437 deals till end-April this year, says a report. As many as 28 initial public offerings (IPOs) raised USD2.7 billion in proceeds till the end April, which is a massive 133 percent more than the same time last year, according to the latest data collated by Refinitiv, which is a global leader in financial markets data and is an arm of the London Stock Exchange. Read here.
COVID-19 fallout: Lockdown impact on Hero Moto, Maruti, Tata Metaliks and TTK Prestige
Auto majors Hero Motocorp and Maruti Suzuki India have announced that they are extending their shutdown by one more week. In the month of April, Hero Motocorp had taken a four days shutdown in a staggered manner but from May 1, operations have been shut for Hero Motocorp and now even for Maruti. So, the first half of the month has been wiped off for both these two auto majors. Tata Metaliks said that in compliance with the West Bengal lockdown orders, operations will be restricted to 50 percent of their total strength. For TTK Prestige, it will be the impact of the Tamil Nadu lockdown where their factories at Hosur as well as Coimbatore will be shut for two weeks starting from May 10. Watch here.
Total vehicle registrations in India slip 30% to 1.52 crore units in 2020-21: FADA
The total vehicle registrations in India fell by 29.85 percent to 1,52,71,519 units in financial year 2020-21, the lowest in the last eight years, the Federation of Automobile Dealers Associations (FADA) said on Monday. Total vehicle registrations were at 2,17,68,502 units in fiscal year 2019-20. All categories of vehicles, except tractors were in red in FY21 with a two-wheeler (2W), three-wheeler (3W), commercial vehicles (CV) and passenger vehicles (PV) falling by 31.51 percent, 64.12 percent, 49.05 percent, and 13.96 percent respectively — the lowest in last eight years and way below the FY13 levels, FADA said in a statement. Read more.
Collection efficiency has declined due to COVID-19 second wave: DCB Bank
DCB Bank is higher in trade despite its weak Q4 results. Murali M Natrajan, the MD and CEO of the bank spoke to CNBC-TV18 to give the fine print and outlook going ahead. On collections, Natrajan said, “Once the moratorium ended from there step by step collection efficiency have been improving steadily. In fact, in the month of March, it was just a shade or two below what it was prior to the COVID times. So, March in fact was really good and we ended quite strongly. However, from April 10, there has been a fair amount of disruptions necessitated by this second wave which has been pretty severe on us. Hence, there has been some drop in the collection efficiency.” Read here.
LIC’s shareholding in listed companies falls to an all-time low
The shareholding of Life Insurance Corporation of India (LIC) in the listed companies dropped to an all-time low in the January-March period of 2021 as India’s largest institutional investor booked profits, benefiting from the rally in stocks in the past year. The ownership of LIC in publicly traded companies fell to an all-time low of 3.66 percent as of March 31, 2021, down from 3.70 percent as of December 31, 2020. LIC’s ownership hit an all-time high of 5 percent as of June 30, 2012, as per data compiled by Prime Database. Read more here.
Demand should return in June if second COVID wave peaks by May-end: M&M's Hemant Sikka
As India's COVID-19 cases spike as the country battles the second wave of the pandemic, almost all states have some fresh restrictions in place. Hemant Sikka, President - Farm Equipment Sector at Mahindra and Mahindra (M&M) discussed the demand picture in this environment as well as the outlook ahead of the monsoon season. He believes that demand will come back in June if cases peak at the end of May. “If we are able to see cases go down by end of May, the demand should come back in the month of June,” he stated. On the financing side of the supply chain, things are looking good and are holding up very well, he shared. Read here.
Market Watch: Ruchit Jain, Angel Broking
- Buy Larsen and Toubro with a stop loss of Rs 1,345 and a target of Rs 1,450.
- Buy Engineers India Ltd with a stop loss of Rs 75 and a target of Rs 85.
Greenply Industries | The company’s board has approved the incorporation of a wholly-owned subsidiary for the manufacturing of plywood and its allied products. It also approved the setting up of a new unit in Sandila Industrial Area, Sandila, Dist.- Hardoi, Uttar Pradesh, for manufacturing of plywood and its allied products by the said proposed wholly-owned subsidiary.
CSB Bank shares jump 8% after it posts record net profit for FY21
The share price of CSB Bank surged nearly 8 percent on Monday after the lender posted its highest ever net profit in FY21. The bank recorded an all-time high net profit of Rs 218.40 crore in FY21 as against Rs 12.72 crore in FY20, an increase of 1,617 percent, it said in a regulatory filing. For the March quarter, the lender reported a net profit of Rs 42.89 crore as against a loss of Rs 59.70 crore in the same quarter a year ago. The stock rose as much as 7.8 percent to its day's high of Rs 278 per share on the BSE. Read here.
Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
For almost two months, Nifty has been consolidating within an 800 point range, with the region around 14,200 acting as a strong support and the region around 15,000 acting as a formidable resistance. It has been a very sector-specific market over the last few sessions, with metals and pharma shining while the rest continue languishing. Broader markets, however, have continued outperforming large-caps and this trend looks set to continue in the short term.
From a technical standpoint, Nifty is forming inverse Head and Shoulder, which is a bullish price pattern. The neckline of this pattern coincides near the 15,000 levels. If Nifty sustains above this level for a day or two, it could finally exit this range and resume its uptrend in the days ahead. In such a case, we could see the Nifty surpassing its lifetime high of 15,431. On the downside, the region around the 50-DMA (currently at 14,735) now becomes the immediate support. Break of this would indicate further consolidation.
Steel Strips Wheels | The company confirms export orders of over 5,25,000 wheels for US & EU caravan trailer market, US Mobile Home and US Truck trailer market.