Sensex gains 257 pts, ends above 49K; Nifty holds 14,800; Nifty Metal up 5%

Topics MARKET WRAP | Markets | Sensex

Stock market updates: Firm global cues and healthy corporate earnings back home helped domestic equity indices to settle higher for third straight day on Friday. In Europe, stocks hit a record high as strong economic data from Germany and other major economies as well as upbeat earnings underpinned hopes of a swift economic recovery from the pandemic.

The pan-European STOXX 600 index rose 0.3 per cent while the German DAX rose 0.9 per cent. France's CAC 40 hit its highest level since November 2000 and the UK's FTSE 100 breached the 7,100 mark for the first time since February 2020.

Earlier in Asia, the Nikkei share average ticked up 0.09 per cent while the broader Topix rose 0.29 per cent. South Korea's Kospi added 0.6 per cent and Australia's S&P/ASX200 index gained 0.3 per cent.

Domestically, the frontline indices gained little over 0.5 per cent as volatility gauge, India VIX, eased 5.5 per cent, propelled largely by metal stocks. The Nifty Metal index advanced 5 per cent on the NSE while all other sectoral indices clocked gains between 0.04 per cent and 1 per cent. The Nifty PSU Bank index was the only loser, down 0.14 per cent.

Against this backdrop, the benchmark Nifty50 shut shop at 14,823 levels, up 98 points. On the BSE, the 30-share Sensex index closed 257 points higher at 49,206 levels.

Individually, Tata Steel, Hindalco, JSW Steel, Adani Ports, SBI Life, M&M, and HDFC were the top Nifty gainers of the day while Tata Consumer Products, Bajaj Auto, Hero MotoCorp, Bajaj Finance, and Eicher Motors declined up to 3.5 per cent.

Trading in the broader markets, however, remained mixed. The S&P BSE MidCap index dipped 0.04 per cent while the SmallCap index ended 0.15 per cent higher.

Buzzing stocks
Shares of Tata Steel moved higher by 8 per cent to Rs 1,185, their fresh record high on the BSE, in intra-day trade on Friday. The stock has gained 11 per cent in the past two trading days after the company reported its best-ever performance across metrics such as revenue, Ebitda, and net profit (excluding exceptional items). With the past two days' gain, Tata Steel has now rallied 97 per cent since the Finance minister presented the Union Budget 2021-22 on February 1. READ MORE

Shares of SBI Life Insurance rallied 7 per cent to hit a record high of Rs 1,040 on the BSE in intra-day trade on Friday after more than 40 million shares or 4 per cent equity of the insurance company changed hands via block deals. The stock surpassed its previous high of Rs 1,030 touched on October 30, 2019. READ MORE

Vedanta shares rallied 7 per cent and hit a three-year high of Rs 287.50 on the BSE in intra-day trade on Friday on healthy and improving operating performance, supported by stable volume across business segments and increased commodity prices. The stock was trading at its highest level since May 2018. Vedanta was trading higher for the fourth straight day, surging 12 per cent in that period. READ MORE

Shares of Tata Consumer Products dipped 6 per cent to Rs 614.25 on the BSE in the intra-day trade on Friday after the company reported a per cent rise in its consolidated earnings before interest, taxes, depreciation, and amortization (Ebitda) at Rs 317 crore for the quarter ended March 2021 (Q4FY21). Ebitda margin, too, contracted by 253 basis points (bps) to 10.44 per cent from 12.97 per cent in Q4FY20. READ MORE

  

LIVE UPDATES

TECH VIEW :: Ashis Biswas, Head of Technical Research at CapitalVia Global Research

The market witnessed extension in the trend that started yesterday after breaching the important level of 14700.The rally MIGHT continue till the level of 14900. Though it is subject to further price action but if the market breaks the level of 14900 and sustains above the level a new bullish rally will take place till the levels of 15200.the momentum indicators like RSI and MACD support the upside move and indicate potential upside from the current market level.

MARKET CLOSING COMMENT :: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Sec

Since the last few weeks, on a weekly closing of the market, the Nifty/Sensex failed to sustain at higher levels. The market breadth was healthy when it opened but due to some profit-taking in financials, Auto and Technology companies, the Nifty closed at opening levels. It has formed an indecisive formation on a daily chart, however, on a weekly basis, Nifty/Sensex gained 400/1200 points from the lowest levels. The positive part of the week that the Nifty-50 closed above the crucial resistance of 14800/49000.  Based on it, Nifty/Sensex would climb to a minimum of 15000/15050 levels.  However, the market would pick up the momentum, if it crosses 15150 levels. On the downside, 14600 and 14500 would be major supports. The bank-nifty closed below the psychological barrier of 33000 that would keep the financial sector selective. During the week, the FIIs sold heavily in the cash segment to the tune of 5500 crores that should reverse immediately otherwise it would minimize the upside for the market. In the coming week, again our focus should be on metals and pharmaceuticals stocks. From the defensive, we prefer the technology sector over the FMCG sector

MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services

Market opened with a gap up tracking heavyweights gains and was able to maintain its optimism to the end, supported by the global market. Global bourses were largely positive as easing restrictions on movement in the US & Europe along with the expectation of better US job data signalled a faster economic rebound in the western markets. Metals stocks are continuing its upbeat movement on improved sectoral outlook while mid-cap stocks underperformed their peers

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Metals fired up yet again to pull Indices up with support from key Pivotal. The broader markets witnessed buying interest in Mortgage companies post good earnings from HDFC. Profit Taking was witnessed in few high-quality Midcaps in Today's Trade

Markets this week

Top gainers: Tata Steel (7.4%), Bharti Airtel (5.9%), Adani Ports (5.26%), Hindalco (3.9%), JSW Steel (3.7%)

Top losers: Tata Consumers (6%), RIL (3.15%), Titan (3.03%), Cipla (3.02%), PowerGrid (2.5%)

Markets this week :: Market rises for 3 consecutive weeks for the first time since early January

Sensex, Nifty & Midcap Index gain 1% each

Nifty Bank up 0.4%
 
Nifty Metal Gains 10%

BSE Snapshot :: 274 scrips hit 52-week highs today


BSE Snapshot :: Top losers of the day


BSE Snapshot :: Top gainers of the day


Broader market check


Sector of the day :: PSU bank give market rally a miss


Sector of the day :: Nifty Metal index soars 5%


NSE Snapshot :: Top Nifty50 gainers today


Stocks that lifted the Sensex today


Sectoral trends on the NSE


Sensex Heatmap at Close

Top gainers: HDFC, Bajaj Finserv, M&M

Top losers: Bajaj Auto, Bajaj Finance, Infosys


CLOSING BELL

The benchmark Nifty50 shut shop at 14,823 levels, up 98 points. On the BSE, the 30-share Sensex index closed 257 points higher at 49,206 levels.
 

Result impact :: Dabur slides as Q4 nos miss estimates


Sensex Heatmap at this hour


Over 300 pharma, healthcare companies eligible for new Covid loans: Crisil

As many as 354 Crisil-rated companies, predominantly pharmaceutical firms and hospitals, with an aggregate bank exposure of Rs 40,000 crore will be eligible for Covid loans from lenders under RBI's liquidity facility.
 
Though pharmaceutical firms account for 68 per cent of rated bank exposure, hospitals (about 24 per cent of rated exposure) are likely to avail most of the funding available. READ MORE
 

Banks want RBI to relax NPA norms for lockdown-stressed MSME sector

Commercial banks have requested the Reserve Bank of India (RBI) to relax norms on the classification for non-performing loans for micro, medium and small enterprises (MSMEs) in view of the stress the sector is facing due to lockdowns imposed by different state governments following the second Covid-19 wave. Sources in the banking industry said a request was made to the banking regulator to extend the non-performing asset classification norms for MSME borrowers to 180 days from 90 days now. A sub-standard loan is the first category of NPA. READ MORE

Covid impact: Indian carriers risk consolidation, plane repossessions

Indian carriers are under renewed pressure to raise cash or face the risk of having to downsize, consolidate or have their planes repossessed by lessors as a surge of Covid-19 infections roils travel.
 
Passenger traffic fell nearly 30 per cent in April from a month before and has halved again so far in May, forcing even the country's biggest and most cashed-up carrier, IndiGo, to gear up for the storm. READ MORE

India VIX eases over 5%

>> VIX is a meeasure of market volatility 

>> VIX is hovering below 21 level

MARKET UPDATE:: HDFC twins, Bharti Airtel, and TCS among top contributors to Sensex's gain today


Adani Transmission rises 5%, hits new high post March quarter results

Shares of Adani Transmission (ATL) rose 5 per cent to Rs 1,187.60, also its new high, on the BSE in intra-day trade on Friday after the company’s consolidated profit after tax jumped over four-fold at Rs 257 crore in March quarter (Q4FY21). The transmission and distribution business arm of the Adani Group had posted profit of Rs 59 crore in the year-ago quarter. The stock surpassed its previous high of Rs 1,147, touched on April 6. READ MORE

 

Second Covid-19 wave poses a downside risk to economic growth: Finmin

The finance ministry on Friday said that the second wave of coronavirus (Covid-19) has posed a downside risk to economic activity in the April-June quarter of financial year 2022. However, it expects a muted economic impact as compared to the first wave. READ MORE

 

HDFC Q4 PAT up 42% YoY at Rs 3,180 cr; Board re-appoints Keki Mistry as MD

India’s leading housing financier HDFC on Friday reported a 42.43 per cent year-on-year growth in standalone net profit at Rs 3,179.83 for January-March quarter of FY21 (Q4FY21). This compares with profit of Rs 2,232.5 crore reported in the previous year period (Q4FY20). On a quarterly basis, the profit rose 8.6 per cent from Rs 2,925.8 crore reported in Q3FY21. HDFC’s Board also approved re-appointment of Keki M. Mistry as the managing director (MD) of the Corporation for a period of three years with effect from May 7, 2021. READ MORE

HDFC board okays reappointment of KK Mistry as MD for a period of 3 years

>> Board also approves raising Rs 1,25,000 crore via bonds in a year

MARCH QUARTER RESULTS :: HDFC

>> PAT at Rs 3,180 crore, up 42% YoY
 
>> Board recommends final dividend of Rs 23 per equity share

Broader market :: Nifty MidCap50 index in the red


SECTOR WATCH :: Nifty PSU Bank index worst sectoral performer


Nifty Metal index extends gain, up 4% now


India to breach fiscal deficit target in FY22: Fitch Solutions

India is likely to breach its fiscal deficit target in the financial year to March 2022 mainly due to revenue shortfall, Fitch Solutions said Friday.
 
The government is targeting a deficit between revenue it earns and what it spends at 6.8 per cent of the gross domestic product (GDP) in FY22 (April 2021 to March 2022).
 
"We at Fitch Solutions forecast the Indian central government deficit to come in at 8.3 per cent of GDP in FY22," it said. READ MORE

Q4 RESULTS | Steel Strips reports profit of Rs 44.6 crore as compared to loss of Rs 5.2 crore in year-ago qtr

-- Revenue up 81% YoY at Rs 699.9 crore

-- Ebitda up 1.7 times at Rs 86.1 crore

-- Margin up 420 bps at 12.3%

Tata Steel extends rally post Q4 results; stock zooms 97% since February

Shares of Tata Steel moved higher by 8 per cent to Rs 1,185, their fresh record high on the BSE, in intra-day trade on Friday. The stock has gained 11 per cent in the past two trading days after the company reported its best-ever performance across metrics such as revenue, Ebitda (earnings before interest, taxes, depreciation, and amortisation), and net profit (excluding exceptional items). READ MORE

MARKET UPDATE:: S&P BSE MidCap index pares gains, turns flat


Fall from intra-day high in BSE500 stocks in today's session

COMPANY DAY'S HIGH(RS) DAY'S LOW(RS) LATEST(RS) FALL(%)
JSW Energy 139.00 116.05 116.65 -16.08
SRF 6820.00 6226.00 6249.95 -8.36
Hawkins Cookers 6000.00 5418.05 5603.05 -6.62
Navin Fluo.Intl. 3659.00 3427.25 3440.00 -5.99
Click here for the full list

Amid rise in raw material costs, margin pressures to weigh on tyre stocks

The tyre sector is expected to be among the most impacted within the auto component space due to the surge in raw material costs in the March quarter. The impact is due to the rise in crude price derivatives and natural rubber costs which account for 55 per cent and 33 per cent of the raw material basket of tyre makers. While tyre companies could see sharp sequential moderation in margins in the March quarter, profitability of battery makers should hold up as the price of lead has been fairly steady, according to IIFL Research. READ MORE


Tata Steel, Tata Motors: No breaks on Tata Group stocks' rally just yet

Tata Group stocks have ruled at the bourses over the past one month, outperforming the benchmark Nifty50 index by a wide margin. Tata Steel BSL, for instance, has climbed 57 per cent over the past 30 days while Tata Metaliks, Tata Steel Long Products, Tata Elxsi, Tata Steel, Tinplate Company, Tata Coffee, and Rallis India have gained between 12 per cent and 37 per cent. READ MORE

MONTHLY ECONOMIC REVIEW | FIN MIN SAYS

>> 2nd wave presents a challenge to ongoing economic recovery
 
>> 2nd Covid wave poses downside risks to eco activity in Q1FY22
 
>> See reasons to witness a muted economic impact as compared to wave 1
 
>> Learning to operate with Covid-19 provides silver lining of eco resilience
 
>> Vaccination to be key to curb pandemic spread & to sustain eco recovery
 

India to breach fiscal deficit target in FY22: Fitch Solutions

India is likely to breach its fiscal deficit target in the financial year to March 2022 mainly due to revenue shortfall, Fitch Solutions said Friday. The government is targeting a deficit between revenue it earns and what it spends at 6.8 per cent of the gross domestic product (GDP) in FY22 (April 2021 to March 2022). READ MORE


MFs step up launches of schemes seeking to invest in foreign markets

The domestic mutual fund (MF) industry has launched a number of unique theme-based schemes seeking to invest in foreign markets. All of these schemes are so-called fund of funds (FoF). A FoF invests in other MF schemes instead of directly investing in stocks or debt instruments. Some of these include Mirae Asset NYSE FANG+ETF, which is a basket of growth stocks of next generation technology and tech-enabled companies.  READ MORE

Vaibhav Global trades ex-split; stock zooms 19%, scales new high

Shares of Vaibhav Global hit an all-time high in Friday's trade after they rallied 19 per cent to Rs 1,037.90 on the BSE as investors lapped up the stock after it turned ex-split. The company has split the stock in the ratio of 1:5, i.e. equity share of face value Rs 10 has been split into five shares of face value Rs 2. The company has fixed Monday, May 10, 2021, as the record date for determining the eligibility of shareholders for split/sub-division of equity shares. READ MORE

Stocks that hit 52-week high on BSE today

Company PRICE(rs) 52 WK HIGH CHG(%)
Aarti Industries 1757.00 1815.35 -1.62
Adani Enterp. 1299.90 1314.00 0.98
Adani Total Gas 1318.25 1350.00 1.47
Adani Transmissi 1178.60 1187.60 4.20
Ajanta Pharma 2013.20 2047.85 0.71
» More on 52 Week High

Maharashtra, UP, Delhi getting lower vaccine doses than needed: SBI report

As the country reels under the severe impact of the second wave of Covid, key states such as Maharashtra, Uttar Pradesh (UP), Chhattisgarh and the capital city Delhi are getting lower vaccine doses than they require, suggests a latest report by State Bank of India's (SBI's) economic wing, authored by Dr. Soumya Kanti Ghosh, their group chief economic adviser. READ MORE

 

Tata Consumer Products declines 6% on weak operational performance in Q4

Shares of Tata Consumer Products dipped 6 per cent to Rs 614.25 on the BSE in the intra-day trade on Friday after the company reported a per cent rise in its consolidated earnings before interest, taxes, depreciation, and amortization (Ebitda) at Rs 317 crore for the quarter ended March 2021 (Q4FY21). Ebitda margin, too, contracted by 253 basis points (bps) to 10.44 per cent from 12.97 per cent in Q4FY20. READ MORE

Small- and mid-cap stocks in chemical and pharma space outperform

Small and mid cap stocks in the chemical and pharmaceutical sectors have been among key gainers over the last month. HDFC Securities in a recent report highlighted that a majority of the better known names within this space have gained over 20 per cent since mid-April.
 
The upward move, according to them, is due to the China+1 strategy adopted by international buyers, higher commodity costs due to supply disruption and Covid related demand upsurge. READ MORE

India offers to lift regular Saudi oil volumes in June after May cuts

Indian state refiners on Thursday placed orders for regular supplies from Saudi Aramco for June, after reducing purchases this month, drawn by lower prices by the world's top oil exporter, four sources said on Thursday. The refiners - Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals Ltd - normally buy 14.8 million-15 million barrels of Saudi oil a month. READ MORE
 

Result today :: HDFC's Q4 PAT may jump up to 50% YoY amid decline in provisions

Sharekhan
 
With one of the most cautious estimates, the brokerage estimates HDFC’s net profit at Rs 2,770 crore, up around 20 per cent YoY and down 5 per cent QoQ. The operating profit, too, is seen declining around 1.5 per cent on a quarterly basis, but up 9 per cent YoY, to Rs 3,832 crore.
 
However, it expects HDFC to deliver a 12 per cent AUM growth led by a strong retail growth. Core NIM, it adds, is likely to expand due to improved business traction. READ MORE

NEWS ALERT :: Tata Motors increases Passenger Vehicle prices

Tata Motors has announced that effective 8th May, it will increase prices of its passenger vehicles, averaging 1.8%, depending on the variant and model.

However, Tata Motors will offer protection from the price increase to customers who have booked Tata passenger vehicles on or before 7th May.
 

Praj Ind jumps 11%, hits new high on robust Q4 nos; stock up 100% in 3 mths

Shares of Praj Industries hit a new high of Rs 276.80, as they rallied 11 per cent on the BSE in intra-day trade on Friday after the company's consolidated net profit more than doubled to Rs 52 crore for the quarter ended March 2021 (Q4FY21), on the back of higher operating income. The company had reported a profit of Rs 24.86 crore in the year-ago quarter. READ MORE

MARKET VIEW :: Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The Indian stock market is part of the global bull market and its resilience toward rising Covid-19 cases mainly arises from the 'hope trade' being fuelled by the expectation that the second wave will peak in May and the economy will quickly rebound. Moreover, Q4 results have been broadly above expectations. The market may continue to be resilient.
 
That said, investors need to be cautious since uncertainty is high and the second wave may impact the economy and earnings worse than presently expected.
It makes sense to partially book profits and move some money to the safety of fixed income"

Top gainers on the BSE at this hour

Company PRICE(rs) CHG(%)
South Ind.Bank 9.07 12.81
ERIS Lifescience 675.60 12.30
Hindustan Copper 166.75 6.62
MMTC 45.10 5.87
Raymond 346.95 5.73
» More on Top Gainers

Vedanta regains Rs 1-trillion m-cap; stock surges 7%, hits 3-year high

The stock was trading at its highest level since May 2018. Vedanta was trading higher for the fourth straight day, surging 12 per cent in that period. In the past six months, the stock has outperformed the market by zooming nearly 200 per cent, as compared to 18 per cent rise in the S&P BSE Sensex. READ MORE

Rupee opening

Rupee opens stronger at 73.63 per US dollar vs Thursday's close of 73.76/$

SBI Life Insurance surges 7%, hits record high after large block deals

Till 09:21 am, around 41.3 million equity shares, representing 4.13 per cent of the total equity of SBI Life Insurance had changed hands on the BSE, the exchange data shows. The names of the buyers and sellers were not ascertained immediately. READ MORE

SECTOR WATCH:: Nifty Metal index leads sectoral gainers


Most active stocks by volume

Company PRICE(rs) CHG(%) VOLUME
SBI Life Insuran 1007.95 3.99 41368099
Vodafone Idea 8.33 0.24 1674809
Natl. Aluminium 71.10 3.72 824764
B H E L 57.75 -0.43 803687
S A I L 137.90 3.18 673790
» More on Most Active Volume

Volatility Alert

India VIX slides 3% to 21.3 level

MARKET CHECK :: Sensex at day's high


BUZZING :: Sadbhav Infra skyrockets 16% on fund raising plan

The company has entered into the Debenture Trust Deed to raise Rs 700 crore from the investors led by Allianz Global Investors and AMP Capital out of which a sum of Rs 550 crore has already been funded by the investors. Further SIPL has sold 7 per cent of units in IndInfravit Trust to CPP Investments for a total consideration of Rs 441 crore.


IRCTC slips in a firm market on cancellation of trains

The Indian Railways on Thursday cancelled a slew of Rajdhani, Shatabdi and Duronto Express' trains from May 9, stating low patronisation and rising coronavirus cases as the reason behind the decision.


Praj Industries soars 9% on strong Q4 nos

Industrial biotechnology company Praj Industries reported a consolidated profit after tax (PAT) of Rs 52 crore for the quarter ended March 2021. The company's PAT stood at Rs 24.86 crore in the year-ago period, Praj said in a statement.


BUZZING :: M&M gains over 2%

The company said it will open an advanced design centre for mobility products in the UK. The company will set up Mahindra Advanced Design Europe in the West Midlands, UK. The new Centre of Excellence will be a part of the Mahindra Global Design Network that includes the Mahindra Design Studio in Mumbai, India, and Pininfarina Design in Turin, Italy.


Result Reaction :: Adani Transmission hits 52-week high

The company's March quarter consolidated profit more than doubled to Rs 238.42 crore from Rs 94.30 crore posted in the same period last year.


Result Reaction :: Hero MotoCorp trades mildly in the red

The two-wheeler maker reported a 38.2 per cent YoY increase in net profit to Rs 865 crore for the quarter ended March 31, as sales of its motorcycles and scooters improved on a low base of the year period and rise in demand for entry-level motorcycles in the rural and semi-urban markets.


Result Reaction :: Tata Consumer Products tanks 5%

The company reported a consolidated net profit of Rs 53.9 crore for the March quarter of FY21 as against a net loss of Rs 76.5 crore in the same quarter during the preceding fiscal. The company’s consolidated revenue from operations for the quarter surged 26 per cent YoY to Rs 3,037.2 crore.


Tata Steel extends rally into second day post stellar Q4 show


Sectoral trends on the NSE :: Metal index up 2%, Bank up 1%


Sensex Heatmap :: Only 3 counters trade in the red

Top gainers: M&M, Kotak Mahindra Bank, SBI

Top losers: Power Grid, Tech M, Bajaj Auto


Opening Bell :: Nifty near 14,850


Opening Bell :: Strong start for Sensex, up over 300 pts


Commodity corner :: Rally in prices continue


Top gainers and losers on the S&P BSE Sensex in Pre-open


Pre-open session :: Nifty reclaims 14,800


Pre-open session :: Sensex tops 49,100


BROKERAGE VIEW :: Kotak Institutional Equities on Tata Steel

Reco: Buy | TP: Rs 1,400

Tata’s 4QFY21 EBITDA came ahead of consensus with stronger India margins. Margins were at a record high and management confirmed further sequential expansion in coming quarters based on spot spreads. Net debt reduced sharply in FY2021 and deleveraging should continue. With net debt/EBITDA <1.5X over FY2022-24E despite growth capex and lower margins, TATA’s leverage issues are now behind. We raise earnings and FV to Rs1,400 (from Rs1,100). TATA has the most attractive risk-reward within the sector and is our top pick.

BROKERAGE VIEW :: Edelweiss Securities on Tata Steel

Reco: Buy | TP: Rs 1,101

Key points: 1) Higher realisation catapulted domestic EBITDA/t to record INR27,800/t. 2) Tata Steel Europe’s (TSE) EBITDA/t (adj. for carbon credit purchases) was USD92/t; 3) Debt reduction of INR200bn in Q4FY21 was ahead of our estimate.

Going ahead, we expect further improvement in performance owing to: 1) spot spreads in TSE getting reflected in contracts; 2) higher domestic/export realisation for India operations; and 3) sustained focus on deleveraging.

Further improvement in European spreads will be positive as it will improve TSE’s cash sustainability. We maintain ‘BUY/SO’ with TP of INR1,300 on 4.4x Q2FY23E EBITDA.

BROKERAGE VIEW :: Antique Stock Broking on Coforge

Reco: Buy | TP: Rs 3,850

We maintain our Buy rating on Coforge and expect company to report industry leading growth in near to medium-term. We value Coforge at 30x forward PE multiple on FY23e EPS with target price to INR 3,850 (vs INR 3,300 earlier) as outlook of the company remains better than its peers with expectations of revenue growth of at-least 17% for FY22 versus average 12-15% for its mid-cap peers.

We have increased earnings estimates by 4-5% for FY22/23e; while increase valuation multiple to 30x (from 27x earlier) on improved near to medium term growth expectations.

BROKERAGE VIEW :: Antique Stock Broking on Tata Steel

Reco: Buy | TP: Rs 1,385

China's withdrawal of export rebates could drive a structural change in the international steel market. This could translate into lower Chinese exports and support global steel prices for longer. International iron ore prices remain elevated which would push up the cost curve for non-integrated players. Domestic steel prices are at a discount to import parity prices allowing companies to push through price hikes. Iron ore integration in the domestic operations enables the company to capture the increase in steel prices in profits. European operations are also expected to remain profitable with an improvement in spreads.

We revise our domestic steel realization assumptions higher by 11% over FY22-FY23 leading to a revised SOTP target price of INR1,385 per share (previously INR763). We maintain our BUY rating on the stock.

BROKERAGE VIEW :: Prabhudas Lilladher on CEAT

Reco: Accumulate | TP: Rs 1,472

CEAT’s 4QFY21 consol results missed our estimates, as margin came lower at 11.4% (-130bp YoY/ 340bp QoQ) led by RM headwinds and lower replacement mix. As gross margins are anticipated to remain weak in H1 due to RM inflation (+8-10% increase in Q1) and weaker mix, we expect margins to remain weak in 1QFY22.

We cut FY22/23 consol EPS by 14.1%/9.5% as we built in i) high RM cost and ii) weaker mix. However, we are positive on CEAT led by factors such as i) healthy FY22/23 outlook for PVs/CVs (accounts for ~57% of revenue), ii) continue market share gains in PVs/truck segment led by ramp up in capacities and iii) cost control measures.

Consequently, we maintain Accumulate with revised price target of Rs1,472 (earlier Rs1,667), based on 16x Mar-23 consol EPS (unchanged). CEAT trades at 18x/15x FY22/23 consol EPS (in-line with 5yr LPA).

BROKERAGE VIEW :: Nirmal Bang on SRF

Reco: Accumulate | TP: Rs 6,600

SRF’s 4QFY21 performance was significantly ahead of our and consensus estimates on the back of robust growth in Chemicals and Packaging segments. Consolidated Revenue/EBITDA/APAT grew by ~40%/~78%/~96% YoY in 4QFY21. Specialty Chemicals vertical grew by ~45% in FY21 as against management’s guidance of ~25%. Strong demand from overseas markets and higher volume of key products from European clients aided this growth.

While the management has guided for ~10-15% growth in Specialty Chemicals in FY22, we believe that the lower number is a function of base effect and we do not expect demand moderation.

However, we are building in >500bps moderation in EBIT margin on account of normalization of spread in the next two years. On an overall basis, we are building in Revenue/EBITDA/APAT CAGR of 16%/19%/17% over FY21-23E.

While we remain structurally positive on the long-term prospects of the company, the stupendous rise in the share price is making us downgrade the stock from a Buy to an Accumulate with an unchanged Target Price of Rs6,600.

Fuel prices :: Prices hiked for 4th straight day

Petrol price raised by 27-28 paise; Diesel by 31-33 paise

NEWS ALERT :: Rajasthan imposes strict lockdown from May 10-24

>> Ban on marriage celebrations till May 31. Marriages only at home or in court with only 11 people.

>> All religious places to be shut, imposes temporary ban on large gatherings.

Top stocks to watch today

Earnings Today: A total of 25 companies are slated to post their March quarter numbers today, including HDFC, UltraTech Cement, Dabur India and Kansai Nerolac Paints.
 
Tata Consumer Products: The company reported a consolidated net profit of Rs 53.9 crore for the March quarter of FY21 as against a net loss of Rs 76.5 crore in the same quarter during the preceding fiscal. The company’s consolidated revenue from operations for the quarter surged 26 per cent YoY to Rs 3,037.2 crore. READ MORE

Bull spread strategy on Bharat Forge

Rationale:
 
-- We have seen long build-up in the Bharat Forge Futures during the May series till now where we have seen 7 per cent rise in the Open Interest with price rising by 7 per cent.
 
-- The stock's primary trend is positive where it is trading above all important moving averages. READ MORE

Stocks that Osho Krishan of Anand Rathi is bullish on

BUY INFOSYS LTD | TARGET: Rs 1,450 | STOP LOSS: Rs 1,300
 
INFY has been trading in a narrow range for the past few trading days and has recently rebounded from the supporting trend-line on the daily chart suggesting a good opportunity to accumulate the counter from a short to medium-term perspective with a favourable risk-reward ratio. The stock is comfortably placed near its 21 DEMA indicating a positive trend accompanied by the 14 period RSI has witnessed positive crossover re-affirming the positive biases in the counter. READ MORE

Bulk deals on the BSE as on Thursday

Bulk deals on the NSE as on Thursday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg


Oil check


SGX Nifty alert

>> At 8:20 am, the index was at 14,864, up 67 points

Wall Street check

US markets closed higher, bolstered by an upbeat weekly jobless claims report. The Dow clocked record closing high as it ended 0.93% up, while the S&P 500 gained 0.82%. The Nasdaq Composite climbed 0.37%.

Asian markets check

Asian stocks headed higher after rallies in US indices. Japan’s Topix Index climbed 0.5%, Hong Kong’s Hang Seng Index climbed 0.7% and Australia’s S&P/ASX 200 Index rose 0.5%.
 

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