Sensex gains 84 pts as metal, IT stocks shine; broader markets outperform

Topics MARKET WRAP | Markets | Sensex

Stock market updates: A sudden bout of last-hour sell-off in the banking and financial stocks trimmed gains on the benchmark indices on Thursday. After surpassing the psychological levels of 50,000 and 14,900 on the Sensex and the Nifty, rising 0.5 per cent in the early morning deals, the indices ended around 0.2 per cent higher. 

The Nifty PSU Bank and Bank indices shed 0.8 per cent and 0.6 per cent, respectively today while the Nifty Private Bank and Financial Services indices slipped 0.6 per cent and 0.3 per cent, respectively.

On the upside, the Nifty Metal index jumped 4 per cent amid firm global cues and steady rise in the metal prices. Hot-rolled coil prices in China — that acts as the global benchmark for steel prices — are up 28 per cent since the beginning of the current calendar year; they are up 116 per cent in the past 12 months. 

That apart, investors also bought IT stocks ahead of a likely strong March quarter earnings' show. The Nifty IT index hit a record high of 27,413 in the intra-day trade, before ending at 27,134 level, up 1 per cent. 

Overall, the S&P BSE Sensex and the Nifty50 closed at 49,746 and 14,874 levels, up 84 points and 55 points, respectively. 

In the broader markets, the S&P BSE SmallCap index hit a record peak of 21,557 levels before closing at 21,449, up 0.73 per cent. The BSE MidCap index, on the other hand, ended at 20,778 levels, up 0.6 per cent.

Fiscal 2021-22 (FY22), according to G Chokkalingam, founder and chief investment officer at Equinomics Research will belong to the mid-and small-cap segments. He expects these two segments to outrun their large-cap peers going ahead. READ MORE

Global markets
Asian share markets lagged on Thursday as US stock futures nudged to another record high after the Federal Reserve underlined its commitment to keeping policy super loose even as the economy enjoys a rapid recovery.

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat while Japan’s Nikkei eased 0.3% and Chinese blue chips 0.1%, with trading very subdued.

In Europe, the pan-European STOXX 600 index rose 0.3 per cent.


LIVE UPDATES

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

The market witnessed a lackluster move in today's activity. It is suggested, a breakout above the resistance level above the Nifty50 Index level of 14900 is positive from a short-term perspective. Sustaining above 14900 levels, The market expects to gain momentum, leading to an upside projection till the 15300 levels. It is observed the momentum indicators like RSI and MACD support the upside move indicating that the short-term trend is likely to stay positive.

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

Let not the more or less flat closing in Thursday's trade take away the credit from the BULLS who simply took away the honours with a mighty rally across Metal names with admirable support from Cement stocks. The broader market witnessed sustained buying interest in Sugar & Fertiliser names

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

Domestic market continued its optimistic rally supported by dovish monetary policy though it witnessed consolidation during the second half due to selling in Banking stocks. Metal stocks led the sectorial rally on a strong outlook supported by rising steel prices and production. Q4 earnings season has started and the market is expected to have a stock centric rally in the coming days which has a very broad positive view

Index contributors :: TCS, HDFC, Infosys support Sensex


MidCap index up 0.6%; Jindal Steel, Natco Pharma jump over 7%


Broader markets outperform :: S&P BSE SmallCap index up 0.7%


Sectoral trends on the NSE


Sensex Heatmap at Close


CLOSING BELL

Overall, the S&P BSE Sensex and the Nifty50 closed at 49,746 and 14,874 levels, up 84 points and 55 points, respectively. 

Rupee trades near day's low


MARKET CHECK


IPO Alert :: Macrotech Developers subscribed 30% till 2:50 PM on Day 2 of the issue


Market Check | Sensex off day's high, up 100 points


JSW Steel joins Rs 1.5-trillion m-cap club, zooms 57% in a month

JSW Steel has joined the elite club of companies with Rs 1.5-trillion market capitalization (market-cap) on the BSE, after its share price rallied 14 per cent to hit an all-time high of Rs 638.90 in intra-day trade on Thursday.
 
With the market-cap of Rs 1.54 trillion at 2 pm, JSW Steel stood at 24th position in overall market-cap ranking, the BSE data shows. Today, JSW Steel surpassed Bajaj Finserv, Sun Pharmaceutical Industries and HDFC Life Insurance Company in market-cap ranking during intra-day trade. READ MORE

Cement stocks rally on strong demand hopes; Shree, JK Cement hit new highs

Shares of cement companies were in focus in Thursday's trading session, with Ambuja Cements, Shree Cement, JK Cement and the Ramco Cement hitting their respective new highs on the BSE, on strong demand expectations. Besides these stocks, UltraTech Cement, ACC, JK Lakshmi Cement, India Cements, Orient Cement, Prism Johnson and Star Cement from the S&P BSE Allcap index were up in the range of 2-6 per cent on the BSE. In comparison, the S&P BSE Sensex was up 0.82 per cent at 50,067 around 01:35 pm. READ MORE

Analysts see rupee at 76.5; Four factors that may guide the trajectory

Amid the domestic headwinds and global tailwinds, analysts expect the rupee to drift lower towards the level of 76.30 to 76.50 over the next two to three months. Technically, USD-INR Spot holds resistance near 74.80-75.30 levels where support is at 74.20-74.00 levels over the short-term.
 
“Over the medium-to-long term, the dollar may return to 68.7 levels once the US Bond yield cools off and once crude oil prices come down,” said Kshitij Purohit, lead analyst - Currency & Commodities at CapitalVia Global Research. READ MORE

COVID-19 UPDATE :: 60-hour weekend lockdown in all Madhya Pradesh cities, says CM Chouhan

A lockdown will be enforced in all cities of Madhya Pradesh from 6 pm on Friday to 6 am on Monday to check the spread of the coronavirus infection, Chief Minister Shivraj Singh Chouhan said on Thursday.
 
Talking to reporters here after chairing a meeting to review the COVID-19 situation in MP, Chouhan said his government aims to increase the number of beds for COVID-19 patients in the state to one lakh. READ MORE

European markets check

(Source: Reuters)


Small-Cap index hits new high; analysts see more upside

Shares of smallcap companies have been on a roll with the S&P BSE Small-Cap index hitting a new high in intra-day deals on Thursday. The rally has been fueled by an up move in stocks of chemicals, cement, graphite electrode makers, pharmaceuticals and information technology (IT) shares. In the past two weeks, since March 25, the index has outperformed the market by gaining 7.3 per cent. In comparison, the S&P BSE Midcap index was up 6.1 per cent, while the S&P BSE Sensex gained 3.6 per cent during the same period. READ MORE


After Airtel, Vi Business unveils integrated IoT solutions for enterprises

Vi Business, the enterprise arm of Vodafone Idea Ltd (VIL), has launched 'Integrated IoT Solutions' for enterprises. "With this industry first initiative, VIL has become the only telecom company in India to offer a secure end-to-end IoT solution offering that comprises connectivity, hardware, network, application, analytics, security and support," the company said in a regulatory filing. READ MORE


SECTOR WATCH:: Nifty Metal index surges 5%


NEWS ALERT | Sterling & Wilson Solar's term debt of the company reduces to Rs 94 cr from Rs 332 cr


Mid-market view | Gaurav Garg, Head of Research at CapitalVia Global Research

The market opened with positive momentum and breached a significant level of 14900 and has been trading above the same level. US markets remained near the previous closing levels making no significant movement. Asian markets were majorly trading in the green after the expectations of the boost in the economic recovery. We expect the market to gain further momentum, till the level of 15180-15200, if the market closes above the level of 14900.
 

Tata Steel hits all-time high; stk soars 25% in a month on ratings upgrade

Shares of Tata Steel hit an all-time high of Rs 924.25 as they rallied 6 per cent on the BSE in intra-day trade on Thursday. The stock surpassed its previous high of Rs 924 touched on October 29, 2007. In the past one month, the Tata group company has rallied 25 per cent after the global rating agencies upgraded the outlook on Tata Steel to stable, citing a recovery in Q3 of the financial year 2020-21 (Q3FY21). READ MORE

Top gainers on the BSE at this hour

Company PRICE(rs) CHG(%)
Deepak Fertiliz. 264.25 10.33
R C F 82.40 8.92
HEG 2334.15 8.39
Just Dial 955.10 7.84
JSW Steel 605.25 7.64
» More on Top Gainers

Nomura sees Nifty at 15,340 by March'22; sees risks to FII flows in FY22

A sharp spike in Covid cases over the past few weeks, movement curbs imposed to in select cities to ‘break the chain’, elevated commodity prices that may stoke inflation coupled with the rich valuation of Indian markets has led Nomura to cut its Nifty50 target to 15,340 for March 2022 (earlier target: 14,680 by December 2021) – a modest rise of 2.7 per cent from the current levels. READ MORE


Tech view: Near-term outlook on chemical stocks remains highly bullish

Chemical stocks continued to shine at the bourses on Thursday with Camlin Fine, Himadri Special, Laxmi Organics, and Tata Chemcials surging between 1 per cent and 8 per cent on the BSE. In comparison, the benchmark S&P BSE Sensex was up 0.5 per cent at 49,918 at 11:45 am. So far in the month of April, stocks of most of the chemical firms have outperformed the benchmark index by soaring up to 42 per cent riding on the back of a firm pricing environment due to strong demand. READ MORE


PV retail sales up 28%, two-wheeler registrations drop 35% in March: FADA

Automobile dealers' body FADA on Thursday said passenger vehicle (PV) retail sales in March witnessed a year-on-year growth of 28.39 per cent to 2,79,745 units, as compared to the year-ago period which saw disruptions in the market due to COVID-19 led lockdown. According to the Federation of Automobile Dealers Associations (FADA), which collected vehicle registration data from 1,277 out of the 1,482 regional transport offices (RTOs), PV sales stood at 2,17,879 units in March 2020.

(Text Source: PTI)


Vedanta open offer subscribed just 58% after failed delisting bid

Over 377 million shares were tendered in the voluntary open offer launched in Anil Agarwal-owned Vedanta. After a failed delisting bid, promoter Vedanta Resources offered to buy up to 651 million shares (17.5 per cent equity) at Rs 235 apiece from the public shareholders of the company. However, it could mop up only 58 per cent of the maximum shares it intended to buy through the open offer. READ MORE

Kalyan Jewellers posts revenue growth of 60% in Q4 FY21 for India operations

> We witnessed a robust increase in consumer demand in Q4 FY 2021, resulting in a revenue growth of approximately 60% for our India operations, as compared to the same quarter in the prior year. 
 
> Revenue growth for the first two months of the quarter (January & February) was approximately 35%, while growth in March was significantly higher, skewed by the loss of sales we experienced in the base due to the COVID-19 pandemic’s impact on our retail operations in March 2020. 
 
> The vast majority of our growth in the recent quarter was same store sales driven, as only two stores were opened during the past one year period. 
 
> For Q4 FY 2021, our Middle East business witnessed a decline in revenues of approximately 20% over Q4 FY 2020, partially attributable to our decision to close 7 of our stores in the region (out of a 37 total base at the time) during FY 2021. 

(Source: BSE Filing) 
 

Ashok Leyland to set up green arms; stock rallies 7%, nears 52-week high

Shares of Ashok Leyland, on Thursday, surged 7 per cent to Rs 124.80 on the BSE after the commercial vehicles major said it has decided to form two new subsidiaries as part of its plans to strengthen green transport solutions. The company, through its subsidiary Switch Mobility Ltd -- the UK-based electric vehicle producer of buses and vans, is creating two units, Ashok Leyland said in a statement. The first unit -- Switch Mobility Automotive Ltd -- is being formed to carry on the electric vehicle strategy in India and forms part of its global entity. READ MORE

Prakash Industries hits 52-week high on clocking highest-ever sales volume

Shares of Prakash Industries snapped their two-day losing run and jumped over 9 per cent to scale a fresh 52-week high of Rs 88.80 on the BSE in intra-day trade on Thursday after the firm said it has recorded the highest-ever sales volume in the financial year 2021-22 (FY21). Around 11.20 am, the scrip was trading 6.59 per cent higher at 86.50 on the BSE as against a 0.84 per cent gain in the BSE barometer Sensex. In the past month, the stock has outperformed Sensex with a surge of nearly 47 per cent as against the index's 1.5 per cent decline. READ MORE


Volatility Alert

>> India VIX, the volatility gauge, was down 2 per cent at 11:40 am at 19.83 levels.

Growth triggers, valuations drive Britannia stock; Covid impact subdued

Britannia Industries has gained 10 per cent over the last couple of weeks, driven by a rebound in demand, expectations of steady performance in the March quarter, lower impact of the second wave of Covid infections, and attractive valuations. Analysts, led by Amnish Aggarwal of Prabhudas Lilladher, highlighted in a recent report that demand in the biscuit segment had returned to pre-Covid levels. READ MORE

NBFC sector under pressure as Covid-19 cases rise, lockdowns resume: Fitch

India's non-bank financial institutions (NBFC) face renewed asset quality and liquidity risks as a second wave of coronavirus infections sweeps the country and could delay recovery in the sector, said Fitch Ratings. The agency said challenges are likely to increase if recent restrictions to contain the pandemic are expanded or prolonged, leading to greater economic and operational disruption. READ MORE


NEWS ALERT :: Alembic Pharma JV receives US FDA's tentative approval for Efinaconazole Topical Solution

>> Alembic Pharmaceuticals Limited today announced that its joint venture Aleor Dermaceuticals has received tentative approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Efinaconazole Topical Solution, 10%

>> Efinaconazole Topical Solution, 10% has an estimated market size of US$ 233 million for twelve months ending December 2020 according to IQVIA. Aleor has settled the case with Bausch Health and. will launch its generic as per the terms of settlement.

How the second Covid-19 wave could mar the summer of recovery for airlines

Within two weeks of many airlines deciding to roll back salary cuts encouraged by a steady increase in traffic flow, a second wave of coronavirus along with rules of compulsory RT-PCR test has hit forward bookings. The fears of last summer, when the pandemic had overturned all the wisdom of airline boardrooms, have returned to haunt the aviation industry. READ MORE


SECTOR WATCH:: Nifty Metal index rises 2%


Rupee surges 10 paise to 74.37 against US dollar in early trade

After logging its biggest single-day fall in nearly two years on Wednesday, the rupee appreciated by 10 paise to 74.37 against the US dollar in opening trade on Thursday supported by positive domestic equities and weak American currency. At the interbank forex market, the local unit opened at 74.38 against the US dollar, then inched higher to 74.37 against the greenback, registering a rise of 10 paise over its previous close of 74.47.

(Text Source: PTI)

Fertiliser shares in focus; Deepak Fertilisers, RCF rally over 10%

Shares of fertilisers companies were in focus at the bourses on Thursday, with Deepak Fertilisers & Petrochemicals Corporation, Rashtriya Chemicals & Fertilizers (RCF) and National Fertilizers rallying between 10 per cent and 18 per cent on the BSE in intra-day trade on expectation of higher demand. Zuari Agro Chemicals, Chambal Fertilisers & Chemicals, Coromandel International, Gujarat State Fertilizers & Chemicals (GSFC) and Gujarat Narmada Valley Fertilizers & Chemicals were up 3 per cent to 5 per cent on the BSE. READ MORE


KPTL arm acquires 51% stake in Fasttel

Kalpataru Power Transmission (KPTL) said that its arm Kalpataru Power Do Brasil Participacoes, Brazil, has completed the acquisition of 51 per cent stake in Fasttel along with management control on April 7, 2021.

Bond Market Alert

10-year benchmark bond yield falls to seven-week low of 6.04%

Most active stocks by volume

Company PRICE(rs) CHG(%) VOLUME
Vodafone Idea 9.88 1.13 7372688
ICICI Bank 584.05 1.13 2485954
Tata Motors 313.60 1.88 2099185
Infosys 1442.90 0.88 1652056
ITC 215.15 0.63 1557360
» More on Most Active Volume

How should bond, equity investors place themselves post RBI policy outcome?

The Reserve Bank of India (RBI) at its first policy outcome for the financial year 2021-22 struck a dovish tone, much along expected lines, as the monetary policy committee unanimously voted to keep the key repo rate unchanged at 4 per cent and vowed to hold 'accommodative' stance.
 
But what really became the centerpiece of the policy outcome was the announcement of the secondary market G-sec acquisition programme which the bond market needed the most. The move was well-received by the money market as the yield on the 10-year government bond fell by nearly 6 basis points to 6.078%. While the central bank kept the growth projections unchanged at 10.5% for FY22, it flagged off Covid as a key risk to the outlook. Amid this backdrop, what should investors do now? LISTEN TO THE PODCAST HERE

Barbeque Nation shares extend rally, zoom 47% from Wednesday's low

Shares of Barbeque-Nation Hospitality, on Thursday, were locked in 20 per cent upper circuit, for the second straight day, at Rs 708.45 on the BSE. With today’s rally, the stock has surged 47 per cent from its Wednesday’s low of Rs 481.35. Currently, the stock was up 42 per cent against its issue price of Rs 500 per share after a weak market debut, yesterday. READ MORE


Realty, insurance corner bulk of FPI flows at $500 mn each in March

Companies in the real estate and insurance sector cornered the bulk of the foreign portfolio investor (FPI) flows—half a billion dollars each—in March. The oil & gas sector too reported strong inflows of close to $460 million. Analysts believe the spike in flows in the real estate sector is a case of foreign funds taking a bullish view on select stocks and not the entire sector. READ MORE


Sector Watch :: Nifty IT index hits record high


ALERT :: Sensex reclaims 50,000-mark


Barbeque Nation freezes at 20% upper circuit for second straight day

>> UTI Mutual Fund bought 2.50 lakh shares at Rs 579.62 per share while Integrated Core Strategies Asia PTE sold 4.01 lakh shares at Rs 545.15 per share.


Hindustan Copper slumps 4% after firm opens QIP

>> The company said the company opened its qualified institutional placement issue for subscription on April 7. The floor price has been fixed at Rs 125.79 per share.


Fitch Ratings on Indian NBFCs

> Covid-19 surge could delay NBFCs' recovery
 
> Indian NBFCs face renewed asset quality, liquidity risks amid second wave
 
> IIFL Finance most vulnerable to recent developments

IRCTC slips over 1% on suspension of Lucknow-New Delhi Tejas Express

>> The company has temporarily suspended Lucknow-New Delhi Tejas Express until April 30, due to recent increase in coronavirus cases.


UCO Bank gains around 1%

>> The lender on Wednesday said its board has approved allotment of preference shares to the government for infusing Rs 2,600 crore capital.


Wipro holds gains in early deals

>> The IT major said it has appointed former Walmart executive Subha Tatavarti as its Chief Technology Officer. The company has also appointed Suzanne Dann as Senior Vice President and Sector Head for Capital Markets and Insurance, North America region.


Tanla Platforms up 1.5% as firm appoints new CFO

>> The communications services firm announced the appointment of Aravind Viswanathan as chief financial officer effective June 1, 2021. Viswanathan joins the company from Wipro, where he served as senior vice president and CFO -– iDEAS Global Business Line.


Ashok Leyland rallies 3% on new subsidiary formation plan

>> The company said it has decided to form two new subsidiaries as part of its plans to strengthen green transport solutions. The first unit -- Switch Mobility Automotive Ltd -- is being formed to carry on the electric vehicle strategy in India and forms part of its global entity. The second subsidiary -- OHM Global Mobility Pvt Ltd -- will focus on providing mobility as a service offering.


RIL trades in the green despite Sebi's penalty

>> Sebi imposed a total penalty of Rs 25 crore on Mukesh Ambani, Anil Ambani, other individuals and entities for non-compliance with takeover norms in a Reliance Industries case dating back to 2000.


Muthoot Finance gains over 1% on fund raising plan

>> The company is planning to raise Rs 1,700 crore through public issue of secured redeemable non-convertible debentures. The issue opens on April 8 and will close on April 29.


Sectoral trends on the NSE :: All indices in the green; metals outperform


Sensex Heatmap :: Bulls on front foot; 28 of 30 counters in the green


Early deals :: Nifty reclaims 14,900


Early deals :: Sensex opens 300 pts up


Commodity prices in early deals


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


Pre-open session :: Nifty tops 14,850


Pre-open session :: Sensex up 0.4%


Cadila Health in focus :: Zydus gets US FDA nod for Macitentan tablets and Ibrutinib Capsules

>> Zydus Cadila has received final approval from the USFDA to market Macitentan Tablets, 10 mg. Macitentan is used to manage the symptoms of pulmonary arterial hypertension.

>> Zydus Cadila has also received final approval from the USFDA to market Ibrutinib Capsules, 70 mg and 140 mg. Ibrutinib belongs to a class of drugs known as kinase inhibitors and is used to treat certain cancers, such as mantle cell lymphoma or marginal zone lymphoma, chronic lymphocytic leukemia/small lymphocytic lymphoma, and Waldenstrom's macroglobulinemia.

Kalpataru Power in focus

Kalpataru Power completes acquisition of 51% stake in Fasttel along with management control on April 7

JSW Steel in focus :: Q4 crude steel production up 2% QoQ and 6% YoY at 4.2 mt

>> FY21 production down 6% at 15.1 mt

Commodity corner :: Trading strategies for gold and zinc

Buy Gold around 45,800 | TGT: 46,800 | Stoploss: 45,500
 
Gold has made double bottom around 44,150 and bounced back sharply. In COMEX, it has scaled back above $1,700 and in MCX, prices have breached its 50-DMA, confirming the ongoing bullish trend. There is no divergence in RSI on daily scale with RSI trading around 60. We recommend long positions near 45,800 with expected target of 46,800 and stoploss of 45,500. READ MORE

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


Bulk deals on the NSE as on Wednesday

Bulk deals on the BSE as on Wednesday

Top stocks to track in today's session

Muthoot Finance: The company is planning to raise Rs 1,700 crore through public issue of secured redeemable non-convertible debentures. The issue opens on April 8 and will close on April 29.
 
Reliance Industries: Sebi imposed a total penalty of Rs 25 crore on Mukesh Ambani, Anil Ambani, other individuals and entities for non-compliance with takeover norms in a Reliance Industries case dating back to 2000. 
 
Ashok Leyland: The company said it has decided to form two new subsidiaries as part of its plans to strengthen green transport solutions. The first unit -- Switch Mobility Automotive Ltd -- is being formed to carry on the electric vehicle strategy in India and forms part of its global entity. The second subsidiary -- OHM Global Mobility Pvt Ltd -- will focus on providing mobility as a service offering. READ MORE

Rupee check

Source: Bloomberg


Oil falls after US gasoline inventories unexpectedly surge

Oil prices fell on Thursday after official figures showed a big increase in US gasoline stocks, causing concerns about demand for crude weakening in the world’s biggest consumer of the resource at a time when supplies around the world are rising.
 
Brent crude eased 36 cents, or 0.6%, to $62.80 a barrel. US oil fell 38 cents, or 0.6%, to $59.39 a barrel.

(Source: Reuters)

SGX Nifty alert

>> At 8:27 am, the index was trading 61 points higher at 14,924 levels

Wall Street alert

the S&P 500 and Dow closed slightly higher after minutes from the Federal Reserve’s latest meeting reiterated its commitment to keep interest rates low until the US economy makes a more secure recovery.
 
The Dow Jones Industrial Average rose 0.05%, the S&P 500 gained 0.15% and the Nasdaq Composite dropped 0.07%.

Asian markets trade higher

Most Asian equities tracked Wall Street's cautious gains and were up marginally. Australia’s S&P/ASX 200 Index rose 0.7%, Hong Kong's Hang Seng index added 0.43% while Japan's Nikkie 225 index shed 0.43%.

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