Stock Market Highlights: Indian equity indices, Sensex and Nifty ended at record closing highs on Friday led by gains in metal and IT stocks. Broader markets supported the rally with both smallcap and midcap indices closed higher. Among sectors, Nifty Metal index gained the most followed by Nifty IT, Nifty Pharma and Nifty Auto. Selling was seen in banks, financials and FMCG sectors.
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Nirali Shah, Head of Equity Research, Samco Securities
Nifty50 index closed on a positive note touching new all-time high. The index now seems to be finding the new range on the higher side as the dip up to 15,560 on Wednesday was quickly bought into. The Nifty index rallied more than 10% from the recent correction low and hence a mild pullback cannot be ruled out. Given that the market is rallying on a slowed-down momentum, which can be properly visualized with the help of negative divergence in RSI on daily timeframe. Any sustained close below 15,400 should be treated as RED signal for the short term. As long as the benchmark index is trading above 15,400, we suggest traders maintain a bullish bias on market.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term uptrend continued in the market after one day of recent dips. Though momentum on the upside has slowed down, the market breadth remains intact and there is no indication of any profit booking or reversal emerging from the highs. The next upside levels to be watched around 16,000 and immediate support is placed at 15,690.
Ajit Mishra, VP - Research, Religare Broking
Markets extended gains in a range-bound session, in continuation to prevailing trend. After the initial uptick, the benchmark hovered in a range till the end however healthy buying in sectors such as metals, IT and auto kept the participants busy. Further, the anticipation of faster economic recovery and vaccination drive picking up pace too boosted sentiments. Consequently, the Nifty ended at 15,799 levels, up by 0.4%. The broader markets ended in positive in the range of 0.1-0.4%.
Markets will first react to the IIP numbers in early trade on Monday. Going ahead, the progress of the vaccine drive and updates on the monsoon will be closely watched by the participants for cues. While the trend is bullish, the underperformance of the banking pack is certainly hurting the sentiment however we expect the bias to improve next week. Meanwhile, traders should focus on other sectors and use intermediate dips to add the selected stocks.
Mohit Nigam, Head, PMS - Hem Securities
Nifty50 showed some resistance in the 15,800-15,850 zone. We believe a convincing closing above 15,850 levels will open the gates for 16,000 on Nifty50. Strong buying was witnessed in Metal and IT stocks while some selling pressure was seen in selected FMCG and banking stocks. Immediate resistance levels for Nifty50 are 15,850 and 16,000 while key support levels for Nifty50 are 15,500 and 15,300.
Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services
The focus now turns on the big final event, the Fed's meeting next week, although there may not be much of a shift in rhetoric. If Fed hints that tapering discussion may be closer than before, a knee-jerk spurt may be witnessed in USDINR spot, but Fed won't rush into tightening the stimulus so overall the dollar will remain soft. The USDINR spot is hovering around 73 zone, and fears of rising international crude oil prices is leading to importers demand. In spot, the immediate resistance lies around 73.20-73.30, only consistent trading above that can push prices towards 73.60-73.75 zone while 72.70-72.50 will act as crucial support.
Market At Close | Market breadth slightly in favour of advances; advance-decline ratio at 1:1.
Market At Close | Metal stocks top Nifty gainers followed by PSUs like Coal India & PowerGrid.
Market At Close | Sensex, Nifty & Midcap index post record close.
Rupee At Close | The Indian rupee ended near the day's low at 73.07 per dollar amid buying in the domestic equity market. The local currency opened higher at 72.94 per dollar against the previous close of 73.06 and traded in the range of 72.91-73.09.
Market This Week | Here are the highlights of market performance for this week
- Sensex, Nifty & Midcap Index Extend gaining Streak To 4 Weeks
- Sensex & Nifty Up Nearly 1% Each, Midcap Index Up 3%
- Nifty Bank Snaps 3-week Gaining Streak, Slips 0.7%
- IT, Media & PSU Top Gaining Indices This Week
- Nifty IT Gains Over 4% This Week To Record Biggest Weekly Gain In A Month
- PowerGrid, NTPC, Coal India, Tech Mahindra, HCL Tech Top Nifty Gainers This Week
- HDFC, Bajaj Finserv, L&T, Bajaj Auto Top nifty Losers This Week
Market At Close | Here are the highlights of today’s trading session
- Sensex, Nifty & Midcap Index Post Record Close
- Financials Continue To Underperform Benchmark Indices
- Market Breadth Slightly In Favour Of Advances; Advance-Decline Ratio At 1:1
- Nifty Gains 62 Points To 15,799 & Sensex 184 Points To 52,485
- Nifty Bank Falls 84 Points To 35,047 While Midcap Index Gains 61 Pts To 27,329
- Metal Stocks Top Nifty Gainers Followed By PSUs Like Coal India & Pwr Grid
- IT & Pharma Gain As Well; Nifty IT & Nifty Pharma Up Over 1% Each
- SBI Life, HDFC Life, Axis Bank, IndusInd & Bajaj Finserv Top Nifty Losers
- SAIL Surges 5% After A Strong Set Of Earnings In Q4
- AU Small Bk, NCC, Aurobindo, L&T Info, Ashok Leyland Top Midcap Gainers
Closing Bell | Indian benchmark equity indices ended at record closing highs on Friday led by IT, metal and pharma stocks, as more states eased pandemic restrictions. The Sensex ended 174.29 points, or 0.33 percent, higher at a record closing high of 52,474.76; while the Nifty gained 61.60 points, or 0.39 per cent, to settle at a new closing high of 15,799.35. Broader markets were also in the green for the day with the midcap index up 0.2 percent and smallcap index up 0.6 percent.
Among sectors, Nifty Metal index gained the most followed by Nifty IT, Nifty Pharma and Nifty Auto. Selling was seen in banks, financials and FMCG sectors. On the Nifty50 index, Tata Steel, JSW Steel, Coal India, Dr Reddy’s Laboratories and Hindalco Industries were the top gainers while Axis Bank, Divi’s Laboratories, IndusInd Bank, L&T and Bajaj Finserv led the losses.
Oil rises to fresh multi-year highs on demand recovery
Oil prices rose on Friday to fresh multi-year highs and were set for their third weekly jump on expectations of a recovery in fuel demand in Europe, China and the United States as rising vaccination rates lead to an easing of pandemic curbs. Brent crude futures edged up 21 cents to $72.73 a barrel, after closing at its highest since May 2019 on Thursday. US West Texas Intermediate (WTI) crude futures also rose 17 cents to $70.46 a barrel, after climbing on Thursday to its highest close since October 2018.
Ipca Laboratories | The company has acquired an additional 13.09 percent stake in Trophic Wellness, taking the total stake to 52.35 percent in the company.
HDFC Securities on Star Cement
Star Cement reported a weak show in 4QFY21. Consolidated revenue rose 10% YoY to INR 6.03bn on 4/12% volume/NSR growth. However, EBITDA declined 16% YoY to Rs 1.04 billion due to significant cost inflation. Lower tax rate moderated APAT (at Rs 853 million) decline to 1% YoY. We expect margin to expand FY22 onwards on production ramp-up. We maintain our BUY rating with a revised our target price of Rs 125 (8x FY23 consolidated EBITDA).
eClerx Q4FY21: Will be able to maintain 30% of EBITDA despite wage hike, says management
eClerx stock locked at 20 percent upper circuit post its strong Q4FY21 results boosted by the Personiv acquisition. The company reported a margin of 27.1 percent which is the highest in 4 years. Speaking to CNBC-TV18, Rohitash Gupta, CFO of the company, said that there will be wage hikes in the current quarter which will have a 200 basis points impact on EBITDA. “The only headwind on the margin side will be the wage hikes that were effective from April 1 for our global staff. Wage hikes impact could be about 200 basis points on EBITDA levels. Wage hikes are pretty normal in terms of mid-single digits -- depending upon geography, it can move up or down,” he said. However, he believes that the company will be able to maintain 30 percent of EBITDA despite the wage hike. Read here.
European shares hit record high, bond yields fall as inflation fears ease
Shares gained on Friday and bond yields fell from the United States to Europe as investors shrugged off rising U.S. consumer prices, even as fears of longer-term inflation lingered. The Euro STOXX 600 added 0.3 percent to hit a record high and was on course for a sixth straight day of gains. London shares gained 0.6 percent, helped by a 1 percent gain for the mining sector, while Paris climbed 0.4 percent. Also boosting sentiment in Europe was the European Central Bank on Thursday raising its growth and inflation projections, while pledging a steady flow of stimulus for now. The MSCI world equity index, which tracks shares in 49 countries, gained 0.1 percent. Wall Street futures were flat.
Ashoka Buildcon | The company has emerged as the Lowest Bidder (L-1) for a project worth Rs 726 crore. The project includes the development of Memmadpur (Ambala) - Banur (IT City Chowk) — Kharar (Chandigarh) Corridor under Bharatmala Pariyojana - Package-Il - 6 laning of IT City Chowk to Kurali Chandigarh Road in the state of Punjab on EPC mode.
ED issues show cause notice to WazirX for transactions involving cryptocurrencies worth Rs 2,790 crore
Enforcement Directorate (ED) has issued a show cause notice to WazirX cryptocurrency exchange and its directors Nischal Shetty and Sameer Mhatre for contravention of the Foreign Exchange Management Act (FEMA), 1999 for transactions involving cryptocurrencies worth Rs 2,790.74 crore.
Deccan Cement Q4FY21 | The company reported a net profit at Rs 22.1 crore against a loss of Rs 3 crore, YoY. Revenue jumped 72.8 percent to Rs 213.8 crore as against Rs 123.7 crore, YoY. EBITDA rose to Rs 37 crore from Rs 11.3 crore, while EBITDA margin was at 17.3 percent as against 9.1 percent, YoY.
Virgin Atlantic partners with TCS to power recovery and transformation-led growth
Tata Consultancy Services (TCS) has expanded its strategic partnership with Virgin Atlantic, one of the UK's leading airlines, to help the latter embark on a "new phase of recovery and growth". The enhanced partnership builds on a 17-year relationship between the two organisations and will see TCS take exclusive responsibility for end-to-end operational management and digital transformation, the information technology services major said in a statement. This includes technology operations, where TCS will enable Virgin Atlantic to leverage the best of Microsoft Azure through a series of technology and business transformation initiatives, it said. In addition, TCS said it will build innovative digital solutions with 'Cloud First' guiding principles to help Virgin improve technology resilience, agility, and performance in its purpose-led transformation.
Goa Carbon Q4FY21 | The company psoted a net profit of Rs 6.6 crore against a loss of Rs 4.8 crore, YoY. Revenue rose 84.6 percent to Rs 127.9 crore from Rs 69.3 crore, YoY. EBITDA was at Rs 9.3 crore versus EBITDA loss of Rs 1.9 crore, YoY.
Market Watch: Hemen Kapadia of KRChoksey Securities
- Buy Mahanagar Gas Ltd (MGL) with a stop loss of Rs 1,204 and target price of Rs 1,272
- Buy Alembic Pharmaceuticals with a stop loss of Rs 990 and target price of Rs 1,050
- Buy ICICI Lombard with a stop loss of Rs 1,485 and target price of Rs 1,560
Expect FY22 volume to be better than FY21, says GAIL
AIL reported Q4FY21 numbers. ES Ranganathan, Director-Marketing of GAIL discussed the numbers. “We expect to have a better FY22 compared to FY21 in terms of volumes,” he said in an interview with CNBC-TV18. “There has largely been no impact of the second wave of COVID-19. The impact has been in the CNG sale of the city gas distribution (CGD) companies due to lockdown, but that is more than taken up by the fertiliser and power sector. So, we expect a stable volume during the lockdown also,” he added. He is confident of having a good Q1 of FY22. Read here.