Metals, pvt banks lead Sensex's 471-pts slide; Nifty ends below 14,700

Topics MARKET WRAP | Markets | Sensex

Stock market updates: Fanning inflation across the globe stoked fears in the investor community on Wednesday, keeping indices in the red for the second straight day. MSCI's broadest index of Asia-Pacific shares outside Japan slumped 0.9 per cent while Japan's Nikkei shedded 1.9 per cent and Taiwan's index slumped over 4 per cent.

On Wall Street, E-mini futures for the S&P 500 stumbled 0.2 per cent while futures for the tech-heavy Nasdaq were down 0.5 per cent.

Data from China on Tuesday showed that consumer price inflation hit a seven-month high in April, and factory gate prices rose at the fastest rate in three and a half years. Meanwhile, in Germany, wholesale price inflation hit a decade high. 

Now, ahead of retail inflation data from the US and India, slated to be released later in the day, domestic benchmark indices fell about a per cent on Dalal Street. Coupled with positions' unwinding due to weekly F&O expiry, the BSE barometer of 30-shares dropped 471 points to close at 48,691 levels. In the intra-day trade, the index hit a low of 48,551 levels. 

On the NSE, the Nifty50 declined 154 points and gave up 14,700-mark to settle at 14,696 levels. Earlier in the day, the index had touched a low of 14,650.

Tata Motors, PowerGrid, Titan Company, Maruti Suzuki, UPL, Cipla, State Bank of India, and NTPC were the top gainers on the 50-share index today, up between 1 per cent and 3 per cent. On the flipside, Tata Steel, JSW Steel, IndusInd Bank, Hindalco, HUL, SBI Life, and Grasim nursed losses up to 4 per cent.

The broader markets, too, succumbed to profit booking with the BSE MidCap and SmallCap indices falling 0.9 per cent and 0.6 per cent, respectively.

Among key sectoral indices, the Nifty metal index tumbled over 3 per cent, followed by the Nifty Private Bank index, down 1.6 per cent. 

On the upside, the Nifty PSU Bank index zoomed 3.3 per cent on possible short covering. Individually, Punjab and Sind Bank, Central Bank of India, UCO Bank, PNB, Union Bank of India, Bank of India and Bank of Baroda soared in the range of 4 per cent to 10 per cent.

According to an Edelweiss Research report, the index has added 20 per cent open interest in the last four trading days, highest in last 5 months, with stocks like PNB and Canara Bank witnessing highest trading as well as delivery volume this week.   

Buzzing stocks
Shares of Godrej Consumer Products soared 25 per cent to Rs 895 on the BSE in the intra-day trade on Wednesday after the fast moving consumer goods (FMCG) major announced that Sudhir Sitapati will take over as its managing director (MD) and CEO in October 2021. Sudhir Sitapati—who spent over two decades at FMCG Hindustan Unilever—is stepping down from the role of executive director of the company's foods and refreshment (F&R) business. READ MORE

Shares of Venky’s (India) hit a 52-week high of Rs 2,143 after rallying 20 per cent on the BSE in the intra-day trade on Wednesday after the company reported a standalone net profit of Rs 77.90 crore for the quarter ended March 2021 (Q4FY21). It had posted a net loss of Rs 96.73 crore in the year-ago quarter. On a sequential basis, however, the net profit was down 27 per cent from Rs 106.50 crore as the company witnessed some negative impact due to outbreak of bird flu. READ MORE

Siemens shares, on Wednesday, surged 10 per cent, hitting a new high of Rs 2,143.20, on the BSE in intra-day trade after the company reported a strong set of numbers for the quarter ended March 2021 (Q2FY21), with healthy order book position. The stock surpassed its previous high of Rs 2,055.10, hit on February 24, 2021. READ MORE

  

LIVE UPDATES

Market Holiday

Markets shall remain closed on Thursday, May 13, on account of Id-Ul-Fitr holiday.

MARKET CLOSING COMMENT :: Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities

Nifty remains in momentum uptrend with support zone seen at 14400-14500; on the higher side 15000-15100 is expected. Breach of 14400 is expected to result in increased volatility. We expect positive bias to continue with action seen in the AUTO, Realty and select midcap stock; Metals are expected to witness high volatility.

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst at HDFC Securities

The short term trend of Nifty seems to have reversed down within a broader range movement. There is a possibility of some more weakness in the coming sessions and we expect the recent swing low of 14416 could be protected and the market could bounce from the lows in short term. Immediate support is placed at 14620.

TECH VIEW :: Sumeet Bagadia, Executive Director at Choice Broking

On the technical front, the Index has been trading in Lower Highs & Higher Lows formation and tested the rising trendline, sustained above it can show bounce-back movement in the counter. Furthermore, the index has taken support from the 100-Hourly Moving Average as well as momentum indicator MACD has shown positive crossover, which points out the strength for the upcoming session. At present, the Index support comes at 14600 levels while the upside resistance seems to be at 14900.

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Retail Research at HDFC Securities

Indian benchmark equity indices fell for the second consecutive session on May 12 on the back of negative global cues. Nifty opened gap down, but made an attempt to recover. At 1230Hrs, the previous day’s low proved to be a tough resistance for the Nifty and it began to fall making lower tops and lower bottoms. At close, the Nifty was down 154.30 points or 1.04% at 14696.50.
 
Nifty fell on May 12 filling the upgap made on May 07. It closed near the intra day low, Advance decline ratio fell into the negative suggesting nervous profit taking by investors across stocks. Fears of a high April CPI number in the US today evening has dragged global stocks down. However unless the figure is substantially higher than forecast of 3.6%, markets could bounce in the near term. 14611-14790 is the band for the Nifty in the near term.

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

One more negative session witnessed & index given close at 14700 with loss of one percent and formed a bearish candle on daily chart. Index again backed in the descending channel after showing profit booking from the upper band now strong hurdle is coming near 14780-14880 zone immediate breakout above only 14880 zone and trading below said levels we may see some dips towards 14600-14500 zone which is good support on the downside also from mentioned support one can expect good bounce

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

Indian indices extended its losses due to concerns over hike in global interest rates and bond yield due to rising commodity prices and inflationary pressure. All major indices belled the day in negative terrain including metals while PSU banks and media stocks managed to stay afloat. International commodity prices will have to stabilize, to provide sustenance in the equity market
 

Volatility Alert

India VIX ends 1.3% higher at 20 levels.

BSE Snapshot :: Top losers of the day


BSE Snapshot :: Top gainers of the day


NSE Snapshot :: Top Nifty50 gainers of the day


Heavyweights that dragged the Sensex today


NSE snapshot :: Sectoral trends on the NSE


Sensex Heatmap at Close

Top losers: IndusInd Bank, HUL, ICICI Bank

Top gainers: Titan, Power Grid, Maruti Suzuki


CLOSING BELL

Coupled with positions' unwinding due to weekly F&O expiry, the BSE barometer of 30-shares dropped 471 points to close at 48,691 levels. In the intra-day trade, the index hit a low of 48,551 levels. 
 
On the NSE, the Nifty50 declined 154 points and gave up 14,700-mark to settle at 14,696 levels. Earlier in the day, the index had touched a low of 14,650.

UK economy showed resilience ahead of big lockdown easing

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Covid woes :: Most of India should remain locked down for 6-8 weeks: ICMR chief

The head of the main Indian health agency responding to the coronavirus has said districts reporting a high number of infections should remain locked down for another six to eight weeks to control the spread of the rampaging disease.
 
Dr. Balram Bhargava, head of the Indian Council of Medical Research (ICMR), said in an interview that lockdown restrictions should remain in place in all districts where the rate of infection is above 10% of those tested. READ MORE

March Quarter Results :: Asian Paints reports profit of Rs 850 crore

>> Revenue at Rs 6,651 crore

>> Declares dividend of Rs 14.5/share


MARKET UPDATE:: Sensex slips to day's low ahead of weekly options expiry


SECTOR WATCH :: Metal stocks crack the most


IPO boom: $140.3 billion raised globally via 670 offers in 2021

The global primary market is on fire with 670 initial public offers (IPOs) of companies raising a collective $140.3 billion thus far in calendar year 2021 (CY21) till May 10, suggests a latest report by Refinitiv – a global provider of financial market data and infrastructure. This is nearly four times the amount raised during the corresponding period in CY20. READ MORE

New CEO at Godrej Consumer Products drives a sharp rerating for the stock

In a weak market, the Godrej Consumer Products stock shot up 21 per cent, its single largest daily gain thus far after brokerages upgraded the stock. The rally is on the hope that Sudhir Sitapati, the new managing director and chief executive officer will be able to reverse the sluggish growth trajectory of its key segments over the past few years and bridge the gap in capital efficiency with peers in the consumer space. Given the wide gap in growth metrics and return ratios, the stock has been trading at a sharp discount to peers. READ MORE

TaMO zooms 5% as Q4 JLR sales rise


Tata Motors in focus

JLR retail sales in Q4 rise 12.4% YoY to 1.23 lakh units

March Quarter Results :: Voltas declares divided of Rs 5 per share

>> PAT: Rs 237 crore

>> Revenue: Rs 2,651 crore

>> Ebitda: Rs 330 crore

>> Ebitda margin: 12.5%


Multiples Alternate Asset Mgt-led group to buy Cadila's animal health biz

The deal is to sell one of the two business undertakings of ZAHL on a slump sale basis as a going concern, for a lump sum consideration of Rs 2,921 crore on a cash-free and debt-free basis, subject to certain closing date adjustments and other conditions. The transaction involves transfer of immovable assets, movable assets, inventory, brands and intangible assets, contracts, licenses and permissions, business records, employees along with employee benefit funds, insurance policies, other assets and assumed liabilities. READ MORE

Indian April fuel demand dips; coronavirus wave clouds outlook

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Zomato IPO will test Indian investors' unicorn appetite: Analyst's note

Food consumption in India was about $670 billion in 2019--driven by home-cooked food. Food services, defined as non-home-cooked food or restaurant food, contribute around 10 per cent to the consumption market. This is lower than the United States and China where food services contribute about 54 per cent and about 58 per cent of total consumption. READ MORE

SoftBank posts $37-bn Vision Fund profit in Q4 on Coupang, eyes more IPOs

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European markets check

(Source: Reuters)


NEWS ALERT :: ITD Cementation bags orders worth Rs 950 crore

Project 1: Provision of Infrastructure works consisting of Roads & Bridges, Drains, Water Supply, Sewerage, Slope Protection, Waste Management, Power System including Water and Sewage Treatment Plants including operation and maintenance of selected facilities during Operation and Maintenance (O&M) Period(s) from Government of India – Value INR 898 crores

Project 2: Piling and Ground Improvement work at Paradip from M/s Technip – Value INR 52 crores
 

NEWS ALERT

> Cabinet briefing by Union Minister Prakash Javdekar at 3 pm
 

Recovery from intra-day lows in today's trade

COMPANY DAY'S LOW(RS) DAY'S HIGH(RS) LATEST(RS) RISE(%)
Godrej Industrie 510.70 610.60 610.60 19.56
Venky's (India) 1790.00 2130.00 2094.00 16.98
Godrej Consumer 750.15 894.00 867.55 15.65
Chambal Fert. 228.80 268.00 260.00 13.64
Click here for the full list

MARKET UPDATE:: ICICI Bank, HUL, RIL among top Sensex drags


Zomato IPO :: Huge market, but business is tough and competitive

Food aggregator Zomato has filed a draft prospectus with SEBI for a ~$1.1bn issue (Rs82.5bn), comprising a fresh issue of Rs75bn and an OFS of Rs7.5bn. (Info-edge now has an 18.55% stake.) The company will be utilising Rs56.25bn (~75%) of the fresh issue to fund organic (~Rs30bn) and inorganic growth (~Rs26.25bn). The rest will be used for general corporate purposes. 

Zomato and Swiggy have established a duopoly in the food-delivery market in India with a combined ~90% market share. Amazon, which started its food delivery service, Amazon Food, in Bengaluru last year in four zip codes, has expanded to 62 zip codes now. Food delivery is free to its prime members. Even as it is limited to one key market in India, Amazon Food is vigorously trying to undercut competition.
 
Zomato,a strategic call to focus only on India market. Soon after its launch, Zomato started venturing outside; by 2012, it had set up shop in the UK, Dubai, Philippines, Qatar and many other countries. It had a two-pronged approach: launch its own product and buy out the competition. This did not work out and it wrote off its overseas investments. Now it has decided to focus only on the India market.

(Views by Anand Rathi Shares)

NEWS ALERT :: Bajaj Finance cuts rates on fixed deposits by 47-50 bps across tenures, suggests report


MARKET VIEW :: Should you buy gold this Akshya Tritiya?

The love for the yellow metal among Indians is no secret, and buying gold on Akshaya Tritiya is considered auspicious. But this time around gold buying may get affected due to the outbreak of the second wave of COVID in cities in India. It is advisable for investors and gold buyers to not venture out during these times and opt for digital/paper gold instead of physical gold. Gold prices are on an up move, helped by the weak jobs data, softness in the USD, a broader view that the interest rates will be low in the US for a long time. Gold prices are trading near a 3-month high in international markets, domestically gold prices are hovering near the Rs 48,000/10 gm level. The vaccination drive, control over the number of cases, and lockdowns internationally coupled with the movement of the USD will drive prices of gold moving forward.
 
- Nish Bhatt, CEO & founder, Millwood Kane International

Passenger vehicle sales dip 10% in April due to Covid led restrictions

Passenger vehicle wholesales in India declined by 10 per cent to 2,61,633 units last month as compared to March this year as COVID-19-led restrictions across various states impacted demand, auto industry body SIAM said on Wednesday. Passenger vehicle sales in March 2021, stood at 2,90,939 units. There were no passenger vehicle sales in April 2020, due to coronavirus-led nationwide lockdown. READ MORE

Pipeline outage causes US gasoline supply crunch, panic buying

Gas stations from Florida to Virginia began running dry and prices at the pump rose on Tuesday, as the shutdown of the biggest U.S. fuel pipeline by hackers extended into a fifth day and sparked panic buying by motorists. The administration of U.S. President Joe Biden projected that the Colonial Pipeline, source of nearly half the fuel supply on the U.S. East Coast, would restart in a few days and urged drivers not to top up their tanks. READ MORE

SECTOR WATCH:: PSU banks rally


India's second Covid wave flattening but won't end before July: virologist

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Angel Broking, Geojit: More upside likely for brokerage-related stocks

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SECTOR WATCH :: Nifty PSU Bank index rises over 3%


US federal reserve says inflation temporary, but markets unsure

Over and over again, Federal Reserve officials have advised that any pickup in inflation this year was bound to be transitory. Traders in financial markets, however, aren’t so sure. Investors have become fixated on widespread signs of price pressures as commodities like copper and lumber surge to records, and the bond market’s expectation for inflation over the next decade climbs to an eight-year high. The focus is triggering swings in the stock market, sending the Cboe Volatility Index to the highest since March on Tuesday. READ MORE

Margin and valuation concerns could limit upsides in L&T Infotech

L&T Infotech ended FY21 on a strong note outperforming its mid-cap peers with steady revenues and best-in-class margins. Though growth in the quarter was broadbased, the 4.4 per cent sequential uptick on a constant currency basis was driven by hi-tech and media sectors with the former benefiting from the $204 million Injazat deal. Even in FY21, the company’s growth of 9.5 per cent in dollar terms was in the top quadrant led by the financial services space and recovery in other verticals. READ MORE

Iron ore prices surge as global economy rebounds, Covid-19 pandemic recedes

The rebound in the global economy as the Covid-19 pandemic recedes has sent rust on a wild ride. Prices for futures in Singapore have nearly doubled in the past six months to a record high of $226.55 a metric ton Monday. China’s Dalian Commodity Exchange raised trading limits and margin requirements Tuesday after futures the previous day rose by the daily maximum of 10%. READ MORE


Sensex Heatmap | Top gainers & losers at this hour


Venkys (India) rallies 10%, hits 52-week high post Q4 results

Shares of Venky’s (India) hit a 52-week high of Rs 1,968.60 after rallying 10 per cent on the BSE in intra-day trade on Wednesday after the company reported a standalone net profit of Rs 77.90 crore for the quarter ended March 2021 (Q4FY21). It had posted a net loss of Rs 96.73 crore in the year-ago quarter. On a sequential basis, the net profit was down 27 per cent from Rs 106.50 crore as the company witnessed some negative impact due to outbreak of bird flu. READ MORE


Telecom firms see red as protests against 5G spectrum trials mount

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Top losers on BSE at this hour

Company PRICE(rs) CHG(%)
Dishman Carbogen 165.00 -13.20
Bliss GVS Pharma 119.40 -6.83
Suzlon Energy 5.77 -6.03
Vaibhav Global 883.00 -5.69
Granules India 340.80 -5.31
» More on Top Losers

L&T's Q4 revenue expected to grow on the back of higher execution

India’s largest engineering and construction (E&C) player, Larsen & Toubro’s (L&T’s) consolidated revenue is expected to witness a double-digit year-on-year growth in the March quarter (Q4), according to most analysts, led by higher execution in a seasonally strong quarter and a low base. The consolidated revenue growth will be largely led by a healthy 44 per cent year-on-year (YoY) growth in the infra segment, said analysts at CLSA in a report. READ MORE


Cadila Health in focus :: Zydus Animal Health and Investment to sell Animal Healthcare Biz

Zydus Animal Health and Investment Limited, a wholly owned material subsidiary of Cadila Healthcare Limited, has entered into a Business Transfer Agreement and other Ancillary Agreements for disposal of its Animal Healthcare Established Markets Undertaking (having animal healthcare business in India and certain other countries)

Business will be sold to Zenex Animal Health India Private Limited, by way of a slump sale, without values being assigned to the individual assets and liabilities on debt free and cash free basis.

Click here for more detail
 

Siemens surges 10%, hits new high on strong March quarter results

Siemens shares, on Wednesday, surged 10 per cent, hitting a new high of Rs 2,143.20, on the BSE in intra-day trade after the company reported a strong set of numbers for the quarter ended March 2021 (Q2FY21), with healthy order book position. The stock surpassed its previous high of Rs 2,055.10, hit on February 24, 2021. READ MORE


ALERT :: Indices extend decline; Sensex at day's low


BUZZING :: Godrej Consumer extends gains, hits 52-week high of Rs 883

>> GCPL sees record intra-day surge; at highest levels ince Sept 2018

Analysts downgrade IndiGo as second Covid-19 wave weakens outlook

The InterGlobe Aviation (IndiGo) stock ended flat in trade after the company announced plans to raise Rs 3,000 crore by issuing equity shares through the qualified institutional placement (QIP) route. The company is looking to improve its cash position after the second wave of infection has dented demand and led to dip in volumes.
 
In August last year, the company’s Board had approved a QIP of Rs 4,000 crore with the timing of the same linked to the sales trajectory. READ MORE

Oil prices climb on drop in US oil stockpiles; solid demand outlook

Oil prices rose on Wednesday, extending overnight gains, after industry data showed a drop in U.S. crude inventories, which reinforced OPEC's robust demand outlook, and as the shutdown of the biggest U.S. fuel pipeline headed into a sixth day. U.S. West Texas Intermediate (WTI) crude futures rose 21 cents, or 0.3%, to $65.49 a barrel at 0013 GMT, adding to a 36 cent rise on Tuesday. Brent crude futures climbed 15 cents, or 0.2%, to $68.70 a barrel, adding to a 23 cent gain on Tuesday. READ MORE

BUZZING STOCK:: Vodafone Idea surges 10%


Rupee opening

Rupee opens weaker at 73.50 per US dollar vs Tuesday's close of 73.34/$

Godrej Consumer soars 15% on Sudhir Sitapati's appointment as MD and CEO

Shares of Godrej Consumer Products (GCPL) soared 15 per cent to Rs 823.30 on the BSE in intra-day trade on Wednesday after the fast moving consumer goods (FMCG) major announced that Sudhir Sitapati will take over as its managing director (MD) and CEO in October 2021. Sudhir Sitapati—who spent over two decades at FMCG Hindustan Unilever—is stepping down from the role of executive director of the company’s foods and refreshment (F&R) business. READ MORE


Deal numbers touch a decadal high in April despite second Covid wave

Deal numbers, including private equity investments and mergers and acquisitions, touched a decadal high for any month at 161 in April, even as the country faced the second wave of the Covid-19 pandemic, a report said on Tuesday.
 
The total value of the transactions in April stood at over $13 billion, the report by Grant Thornton, a consultancy, said, pointing out that domestic M&A transactions led the pack by reporting over 30 transactions aggregating to $5 billion. READ MORE

Most active stocks by volume

Company PRICE(rs) CHG(%) VOLUME
Vodafone Idea 8.70 7.41 25412801
Trident 18.88 2.33 4592088
B H E L 74.15 1.09 4489375
Suzlon Energy 5.81 -5.37 4227316
NLC India 71.00 11.29 2640731
» More on Most Active Volume

MARKET VIEW | V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Globally the markets are now caught between two opposing forces - economic recovery and inflation fears. While the former is positive the latter is negative. Going forward, the market trend will depend on which of the two triumphs over the other. Today's inflation data from the US is important. The YoY inflation in the US is expected to come around 3.6%, pushed high mainly by the base effect and therefore may not sustain. But if the MoM inflation data shows a surge, the dovish Fed will be forced to take it seriously. The fact that the market is a bit apprehensive of rising inflation is reflected in the US 10-year yield rising above 1.6%. So this space has to be watched. Meanwhile in India Q4 results continue to be good with better than expected performance from mid-small-caps. Market action is likely to be stock specific based on results.

ABB India up 1% despite plant closure

The company said it has closed its manufacturing facility in Peenya, Benguluru, from Monday onwards in view of Covid-19 restrictions in place in Karnataka.

Result impact :: Kalpataru Power gains over 2%

The power generator reported a multifold jump in consolidated net profit at Rs 187 crore for March quarter 2020-21 due to higher revenues. The net profit of the company in the year-ago period was Rs 13 crore.


Godrej Consumer Products zooms 10%

The company reported a 59.13 per cent YoY increase in its consolidated net profit to Rs 365.84 crore for the fourth quarter ended March 2021. The company had posted a net profit of Rs 229.90 crore in the January-March quarter a year ago.


Infosys slips half a per cent

The IT major has announced a strategic collaboration with Britvic to accelerate their digital strategy. Infosys will provide end-to-end IT services and deliver a technology-driven approach to fulfil Britvic’s business goals and strategic digital transformation roadmap.


Siemens hits 52-week high in a weak market

The company posted an over 90 per cent year-on-year (YoY) rise in consolidated net profit at Rs 334.4 crore for the March quarter, mainly on the back of higher revenues.


M&M slips 1% on weaker sales expectations

Mahindra & Mahindra (M&M) said its sales volume for the quarter ended June 2021 is estimated to be lower by 15-20 per cent as compared to the year-ago period due to the second wave of the coronavirus pandemic.


Sectoral trends on the NSE


Sensex Heatmap


Opening Bell


Opening Bell


Fuel price update

Petrol & diesel prices hiked by 25 paise each

Commodity prices in early deals


Pre-open session :: Nifty little changed


Pre-open session :: Sensex starts flat


Global Markets: Taiwan Index witnesses sudden slide


BROKERAGE VIEW :: Edelweiss Securities on Siemens

Reco: Buy | TP: Rs 2,095

Consistent with its parentco, Siemens India (SIEM) too surpassed consensus forecast on growth/profitability led by healthy double-digit growth in digital industries/smart infra with robust OPM. Delivering commendable execution in both business consolidation (C&S Electric, drives sale deals concluded in Q2) and business P/L, SIEM outperformed peers—evident from its healthy double-digit recurring growth in smart infra/digital industries and strong order intake. The company is poised to benefit from both infra and new manufacturing capex trend, unlike in the past.

SIEM’s conventional issues around sharp quarterly volatility/ growth avenues seem to be getting addressed. Seen as an infra proxy historically, we see a change brewing in SIEM’s offerings that makes it a proxy for both public and private capex. Retain ‘BUY/SO’ with a revised TP of INR 2,095 (vs INR2,000), as we roll forward to Sep-22E.

BROKERAGE VIEW :: Nirmal Bang on EIH

Reco: Buy | TP: Rs 108

4QFY21 results indicated that the company has built upon the signs of recovery that were seen in 3QFY21, with revenue growing by 21% QoQ. Growth in revenue was primarily driven by (1) Growth in occupancy from ~34% to mid-40% QoQ and (2) Growth in F&B revenue. Growth in occupancy was driven by pent-up demand for staycations, vacations etc. The occupancy of many leisure destinations increased strongly.

Reduction in restrictions by the Government on restaurants led to strong growth in F&B revenue. The management attributed this to increasing customer preference for dine-in experiences and increase in the number of weddings. EBITDA loss for 4QFY21 stood at Rs242mn and EBITDA margin stood at -11.2%. Expenses increased by 16.7% QoQ mainly because of pick-up in demand, leading to lower savings in variable expenses.

The management highlighted that some hotels turned EBITDA positive and some even turned PAT positive. Balance sheet remained strong with net debt to equity ratio of 0.09x following the QIP (EIH raised Rs3.5bn).

We remain optimistic about the stock and have valued EIH at 16x FY23E EV/EBITDA, leading to a revised target price (TP) of Rs108 (earlier Rs116).

BROKERAGE VIEW :: Kotak Institutional Equities on Telecom sector

TRAI’s February 2021 subscriber data indicates (1) Bharti’s net additions moderated to 3.7 mn on overall as well as VLR base and 3.5 mn on mobile BB segment, (2) Jio’s wireless net additions increased to 4.3 mn although VLR base declined modestly by 0.2 mn and (3) VIL’s uptick of 0.65 mn is boosted by a surge of 1.56 mn subscribers in Mumbai, which is not confirmed by VLR data.

We prefer Bharti to play the potential recovery or consolidation in sector, either of which may play out in the medium term.

BROKERAGE VIEW :: Kotak Institutional Equities on Hindalco Industries

Reco: Buy | TP: Rs 400

UBC scrap spreads in April 2021 hit record high as market tightness eased on improved collection rates. Strong aluminum LME price, too, is outpacing scrap prices and Novelis margins should continue to witness strong tailwinds. Peers and customers of Novelis in the recent earnings commentary shared a buoyant outlook on the beverage can segment and saw limited impact of semiconductor shortage on auto body sheet demand. With strong end-use demand and robust scrap spreads, Novelis margins should improve further and drive upgrades.

Market Ahead Podcast

Indian equity markets eyed a negative start to Wednesday's session amid a weak global market setup but a drop in active Covid cases for the third day in a row could lend some support to the sentiment on the Street.
 
Furthermore, stock-specific action is likely following the latest MSCI rejig while high volatility cannot be ruled out ahead of the weekly F&O expiry. At 7.40 am, SGX Nifty was ruling 19 points down at 14,830. LISTEN TO THE PODCAST HERE

Top stocks to watch today

MSCI Rejig: Adani Enterprises, Adani Total Gas, Adani Transmission, Bharat Electronics, Cholamandalam Investment and SBI Card are among six firms that will be added to the MSCI India Index while Zee Entertainment will be deleted from it. The changes will come into effect on the close of May 27.
 
Airtel, RIL, VIL: Airtel added the highest number of active subscribers for the third straight month in February at 3.7 million, according to data released by the Telecom Regulatory Authority of India. On the other hand, Reliance Jio lost as many as 0.16 million active customers. However, it added 4.27 million gross subscribers in February. Vodafone Idea (VIL) added gross subscribers to its network for the first time since October 2019, gaining 0.65 million users. READ MORE

Top trading calls by Ajit Mishra

Buy Berger Paints (I) Limited
 
Target: Rs 780
 
Stop loss: Rs 710
 
Rationale: Berger Paints has been consolidating for the last four months, taking a breather after a phenomenal run. It has formed a base after hovering around the support of medium-term moving average (100 EMA) on the daily chart and looks all set for a rebound now. The chart pattern and confirmation indicators are also in sync with the view. Traders shouldn’t miss the opportunity and create fresh longs in the mentioned zone. READ MORE

'Nifty eyeing fresh breakout from consolidation phase'

Formation of higher bottom at 14,416 in Nifty, could be an advance signal of possible upcoming breakout. Confirmation of breakout in Nifty would come, once it sustains above 15,000 levels. Above 15,000, Nifty could extend its gains towards new all time highs above 15,431. Support for the Nifty would remain at 14,700, below which possible bullish setup would be violated. However, looking at the other indicators chances of bullish breakout seems higher than bearish breakout. READ MORE

Bulk deals on the NSE as on Tuesday

Bulk deals on the BSE as on Tuesday

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


Rupee check

Source: Bloomberg


Oil check


SGX Nifty alert

>> At 8:23 AM, the index was at 14,825 levels, down 25 points

Asian markets at 1-month lows

Asian markets declined and traded at one-month lows amid concerns that growing inflationary pressure in the United States could lead to earlier rate hikes and higher bond yields globally.
 
Australian stocks slipped 0.6% while South Korea's KOSPI index skidded 0.7%. Japan's Nikkei reversed early gains to be down 0.4%.
 

Wall Street slips for second day

US stocks closed lower in overnight session as rising commodity prices and labor shortages fed fears that despite reassurances from the US Federal Reserve, near-term price spikes could translate into longer-term inflation. While all three indexes pared their losses from session lows, the sell-off was fairly evenly dispersed across the sectors.
 
Dow Jones Industrial Average fell 1.36%, the S&P 500 lost 0.87% and the Nasdaq Composite dropped 0.09%.

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