Sensex ends lacklustre trade 272 pts up; Nifty tops 14,700; metal, IT rally

Topics MARKET WRAP | Markets | Sensex

Stock market updates: Market witnessed a lacklustre trade on the day of the weekly F&O expiry as consistent rise in Covid-19 cases kept investors on the fence. However, March quarter results did lead to a sharp, stock-specific movement in select counters. The benchmark S&P BSE Sensex swung within a band of 400 points, hitting a high and low of 49,011 and 48,614 levels, respectively. 

At close, the BSE barometer settled at 48,950 levels, up 272 points or 0.5 per cent. Bajaj Auto (up 2.5 per cent) closed the session as the top index performer, followed by HDFC, Tech Mahindra, Infosys, ICICI Bank, Nestle India, and Kotak Mahindra Bank. On the downside, Bajaj Finserv, PowerGrid, ONGC, Sun Pharma, IndusInd Bank, and NTPC settled as top laggards, down up to 1 per cent.

On the NSE, the 50-share index closed at 14,725 level, up 107 points or 0.7 per cent. About 35 of the 50 constituents on the index settled firm including Hindalco, Wipro, Hero MotoCorp, Tata Motors, Eicher Motors, and Bajaj Auto.

The broader markets, too, performed in-line with frontline indices. The S&P BSE MidCap index added 0.9 per cent while the S&P BSE SmallCap index gained 0.6 per cent. Motilal Oswal Financial Services, IDBI Bank, Mphasis, Jindal Steel, Coforge, Angel Broking, Datamatics, and Subex were some of the outperformers in the broader market space.

Sectorally, the Nifty PSU Bank and Pharma indices nursed losses on the NSE today, down 1.2 per cent and 0.3 per cent, respectively. On the upside, metals and IT stocks continued to shine with the Nifty Metal and IT indices soaring up to 2.5 per cent.

Global markets
European stocks inched higher on Thursday, hovering near record levels, as strong earnings reports from AB Inbev and several eurozone banks added to an upbeat mood sparked by solid economic data.

The pan-European STOXX 600 index rose 0.2 per cent, with food and beverage, utilities and telecoms leading the gains. 

In Asia, Japan's Nikkei jumped 1.8 per cent as it reopened after a five-day holiday while MSCI’s index of Asia-Pacific shares outside Japan gained 0.19 per cent. But Chinese shares, also resuming trade for the first time since last week, wobbled. The CSI300 fell 1.2 per cent, led by falls in biotech firms.


LIVE UPDATES

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

On the technical front, the index has confirmed the Bullish Harami Candlestick Pattern, which suggests bullishness in the counter. Moreover, the Index has given closing above the 21-Daily Moving Average, which points out strength in the counter. An oscillator Stochastic has indicated positive crossover, which supports the bullish trend for the near term. At present, the nifty index is holding support at 14500 levels while an upside resistance seems at 14860 levels.

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

 The underlying trend of Nifty continues to be positive with range bound action. A sustainable move above 14725 is likely to result further strengthening of upside momentum and that is likely to pull the market towards 14900-15000 levels again in the near term. Immediate support is placed at 14610.

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

On the day of the weekly expiry of index options, Nifty/Sensex closed at the highest point of the day. 
 
Today, Auto and Technology stocks lifted the market sentiment heavily. Due to the follow-up buying, we saw a recovery in the metal stocks from lower levels. 
 
On a daily chart, the market has formed a bullish continuation formation and we could see the levels of 14770/14850 (49100/49400) on the higher side, however, since last few weeks, the market is finding it tough to sustain at higher levels due to the pressure of the weekend news flow.
 
In brief, we need to be careful to add long positions at higher levels.  On the downside, 14600/48600 and 14500/48300 would be major supports.  The bank-nifty is consolidating and in the medium term a close above the levels of 33000. 
 
The focus should be on commodities, consumer durables and pharmaceutical stocks.

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

Indian benchmark equity indices rose for the second straight day following healthy global cues. The Nifty opened higher and kept making higher tops higher bottoms through the day. At close, Nifty gained 0.73% or 107 points to 14,724.80.
 
Volumes on the NSE were in line with recent averages. Among sectors, IT, Auto, Metals and Oil & Gas indices rose the most while there were no sectoral losers.
 
Nifty moved above the high of May 04, thus signalling that the May 03 bottom of 14416 is a short term bottom. The next resistance for the Nifty is at 14846 while the support is at 14601. FPI selling seemed to be subdued today, while local traders continued to ramp up prices of select small and midcap stocks. 

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

Amidst rising covid cases, hopes of recovery through vaccine drives and a positive global market is aiding the domestic market to ride a positive wave. Biden’s decision to waive intellectual property rights on vaccines pumped in global optimism. Metal stocks continued to outshine other sectors as it kick-started its earning season on a better-than-expected note. Auto and IT were the other sectoral leaders while mid and small-cap stocks mirrored the trend
 

BSE Snapshot :: M-cap of all BSE listed firms climbs above Rs 210-trillion mark


BSE Snapshot :: Top losers of the day


BSE Snapshot :: Top gainers of the day


Broader market check


Sector Watch :: Nifty Metal zooms 2.5%

Advances: 12

Declines: 3


Sector Watch :: Nifty PSU Bank end as top sectoral loser

Advances: 4

Declines: 7

Unchanged: 2


NSE Snapshot :: Top Nifty50 gainers of the day


HDFC, Infy, ICICI Bank :: Heavyweights that supported the Sensex today


Sectoral trends on the NSE


Sensex Heatmap at Close

Top gainers: Bajaj Auto, HDFC, Tech M

Top losers: Power Grid, Bajaj Finserv, IndusInd Bank


Rupee Closing

Rupee ends stronger at 73.76 per US dollar vs Wednesday's close of 73.91/$

CLOSING BELL

At close, the BSE barometer settled at 48,950 levels, up 272 points or 0.5 per cent.  On the NSE, the 50-share index closed at 14,725 level, up 107 points or 0.7 per cent. 

ArcelorMittal Nippon Steel India EBITDA up nearly 3x at $403 mn in Q1

ArcelorMittal Nippon Steel India (AMNS India) has recorded a 47 per cent higher EBITDA quarter-on-quarter and 188 per cent year-on-year to $403 million for the quarter ended March 31, 2021.
 
Announcing the earnings, which were the best in a decade for ArcelorMittal, the company said that in the Q1 of Calendar 2021, AMNS India achieved solid production, annualising at 7.3 million tonnes (MT). The company achieved $403 million EBITDA (with a FY21 run rate of $1.6 billion) with a greater focus on export markets. READ MORE

BUZZING STOCK:: Hero MotoCorp rises to day's high ahead of Q4 results


Heatmap: S&P BSE Sensex gainers and losers at this hour


FIIs turn sellers after 6 months but bet big on these 2 sectors in April

The FIIs, which pulled out $1.29 billion from the equity markets last month -- their highest ever since March last year, still ploughed money in the FMCG and real estate sectors for two months in a row, shows a report by Edelweiss Securities. READ MORE

Covid: Asian vaccine makers' shares fall as US backs patent waiver

U.S. support for a proposal to waive intellectual-property protections for Covid-19 vaccines might be good news for the global inoculation campaign, but it’s an unwelcome turn for firms whose share prices have been buoyed by profits from coronavirus shots. Pfizer Inc., BioNTech SE, Novavax Inc. and CureVac NV declined Thursday in U.S. premarket trading. Shanghai Fosun Pharmaceutical Group Co., which has the rights to develop and market BioNTech’s shot in China, plunged 14% in Hong Kong, the most ever. READ MORE

HDFC Q4 preview: PAT may jump up to 50% YoY amid decline in provisions

Backed by strong individual loan book, healthy net interest income (NII), and fewer provisions, Street expects mortgage lender HDFC to report nearly 50 per cent year-on-year (YoY) increase in net profit for March quarter of FY21 (Q4FY21) on May 7. "We foresee improvement across earnings drivers (AUM growth, net interest margin and credit costs) for HDFC over FY22-23 spurring a significant rise in ROA and ROE (high teens). We expect 16 per cent AUM CAGR, over 3 per cent NIM sustenance and less than 2 per cent NPA levels," notes Shweta Daptardar, analyst at Prabhudas Lilladher. READ MORE

Q4 RESULTS | IIFL Finance Q4 cons net profit at Rs 247.6 cr vs Rs 58.7 cr (YoY)

-- Revenue up 22% YoY at Rs 1,598.5 cr vs Rs 1,306.2 cr

Tata Steel: Stellar Q4 show sets stage for a better Q1FY22, say analysts

Propelled by an all-round beat in the March quarter (Q4FY21), Tata Steel shares hit a fresh record high of Rs 1,128.8 apiece on the BSE after they rallied 6 per cent in the intra-day deals. Recovering 8 per cent from the day’s low, the stock surpassed its previous record high of Rs 1,088.8 touched on May 5, 2021. In the past one month, the stock of the Tata Group firm has zoomed 30 per cent as against a 0.74 per cent decline in the benchmark S&P BSE Sensex. READ MORE

IT shares in focus; Wipro, Coforge, Mindtree, Mphasis hit new highs

Shares of information technology (IT) companies were in focus at the bourses, on Thursday, with Coforge rallying 18 per cent to Rs 3,399.85, also its new high, on the BSE after the company reported a healthy set of numbers for the quarter ended March 2021 (Q4FY21).
 
Besides, Coforge, Wipro, Mindtree, Mpahsis and Firstsource Solutions hit their respective record highs on the BSE. Mastek, Intellect Design Arena, Sasken Technologies, Newgen Software Technologies, Nucleus Software Services and Sonata Software were up in the range of 5 per cent to 11 per cent. READ MORE

Covid bringing renewed challenges for India; GDP growth seen at 9.5%: Fitch

The spiralling crisis from resurgence of COVID-19 cases in India has dented support for the ruling BJP but voter support for Prime Minister Narendra Modi and his party will remain strong over the coming quarters and through this humanitarian crisis, Fitch Solutions said Thursday. The sudden and steep surge in the number of coronavirus cases the highest-ever 4,12,262 new infections and a record 3,980 daily death toll in a day has swamped the health system, which seemed to have collapsed. READ MORE

European markets check

(Source: Reuters)


Sensex heat map


Markets at 2pm


Hero MotoCorp Q4 preview

Analysts see up to 60% YoY rise in Ebitda
HeroMoto Corp, slated to report its March quarter results (Q4FY21) on May 6, is expected to post nearly 60 per cent year-on-year growth in earnings before interest, tax, depreciation, and amortization (Ebitda) aided by healthy sales volume and low base effect. However, price hikes taken due to BS-VI transition and to off-set increase in input costs may not be enough to cushion Ebitda margin hit, say analysts. READ MORE

Photo: Shutterstock

KNIGHT FRANK PRIME GLOBAL CITIES INDEX Q1-2020

(RANKED BY ANNUAL % CHANGE)

 

Kotak Institutional Equities on Varun Beverages


Centrum on Ashok Leyland

We initiate coverage on Ashok Leyland (AL) with a BUY rating and a one year target price of Rs161 as we believe that the CV industry is getting into an economic recovery led upcycle for the next 2-3 years. CV industry declined by 29%/21% in FY19/FY20 pushing the sales down to a decade low levels. 
 
Our target price is based on 15.5x FY23E EV/EBITDA which is its long term average. A pandemic led slower than expected economic recovery is the main risk to our estimates.
 

Anand Rathi on Godrej Properties


INTERVIEW OF THE DAY :: Marc Faber, Editor and Publisher of The Gloom, Boom & Doom Report

In the last five years, growth stocks have outperformed value stocks. And I think we are now coming to a stage where value stocks will outperform growth stocks going ahead. That said, in India, some stocks are still not very expensive. Among the lot, I find bank stocks to be very expensive in India FULL INTERVIEW HERE

Marc Faber

From the research vault...Buy, sell or hold?

Are you looking fo rthe latest reserach report from a leading brokerage on your favourite stock? Your search ends now. CLICK HERE and get access to all the latest reports across companeis and sectors from top research and broking houses in the country



BSE 500 :: Hourly gainers

COMPANY PRICE AT  
13:00 13:34 GAIN(RS) GAIN(%) LATEST
Sundram Fasten. 729.00 749.00 20.00 2.74 749.00
Netwrk.18 Media 39.10 40.10 1.00 2.56 40.10
TV18 Broadcast 34.35 35.20 0.85 2.47 35.20
Thermax 1488.65 1522.85 34.20 2.30 1522.85
Varroc Engineer 377.95 386.15 8.20 2.17 386.15

Full list here

MUST READ :: Parekh brings Infosys back to a position where it is bagging large deals

It has been a little over three years since Salil Parekh, CEO of Infosys, unveiled his strategic review and came out with a strategy that had four core focus areas: Agile Digital Business, Energise the core, Reskilling and Localisation. Take any of the parameters, since Parekh took over, all have improved and brought the company back to a position where it is bagging large deals. FULL STORY HERE


IIFL on L&T Infotech (LTI)

The company expects the growth momentum to continue and aspires to be in the industry growth leadership quadrant in FY22. Margins would be under pressure, given the second round of wage hikes, increased hiring and investments. We forecast 15% USD revenue Cagr over FY21-23ii led by LTI’s superior execution capabilities. We cut FY22ii-23ii EPS by 1-3% and our 12-mth TP to Rs3,950, based on 25x 2YF EPS. The stock justifiably trades at a premium to midcap peers. ADD.

Jefferies on Tata Steel


Angel Broking zooms 20% post March quarter results; stock up 77% in a month

Shares of Angel Broking were locked in the upper circuit of 20 per cent at Rs 512.20 on the National Stock Exchange (NSE) in Thursday's trade after the company reported a healthy 39 per cent quarter-on-quarter (QoQ) jump in its consolidated net profit at Rs 102 crore in the March quarter (Q4FY21) on the back of strong operational income. READ MORE

SECTOR WATCH:: IT stocks gain momentum

Company LATEST(rs) CHG(%)
Wipro 510.50 4.01
Firstsour.Solu. 131.80 3.37
HCL Technologies 921.00 1.24
Infosys 1361.85 1.51
TCS 3127.45 1.00
» More

Nifty sectoral indices at this hour


MARCH QUARTER RESULTS :: Caplin Point

>> Consolidated PAT at Rs 67.92 cr vs Rs 48.86 cr YoY; up 39%
 
>> Consolidated Operating Revenue at Rs 278.71 cr vs Rs 215.23 cr YoY; up 29.5%
 
>> Consolidated EBITDA at Rs 95.15 cr vs Rs 73.44 cr YoY
 
>> Declared an Interim Dividend of Rs 1.50
 

MARKET CHECK :: Sensex trades near day's high


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

Nifty has been trading in a consolidated manner near the level of 14,650. If the index breaches the level of 14,700, we might see a small rally in the market. Technical factors in the market are aligned to show that market will trade in a range of 14,500-14,900. 14,500 will be an important support level in the short term.

Q&A | Quality mid-, small-caps may continue to do well: Reliance Securities CEO

Outperformance of midcaps and smallcaps was mainly on account of improved earnings visibility of corporate India. As valuations of largecaps appeared to be out of whack, investors started lapping up quality midcaps and smallcaps, which were available at relatively comfortable valuations.  READ FULL INTERVIEW HERE
Lav Chaturvedi, ED & CEO of Reliance Securities

Cognizant revises full year guidance for CY2021; Q1 revenue up 4.2%

Nasdaq-listed IT major Cognizant reported a better set of numbers for the first quarter of CY2021, as the company saw recovery in its healthcare vertical. The company also revised upwards its full year revenue guidance from 7 per cent to 9 per cent (5.5-7.5 per cent in constant currency). At the end of its fiscal year in December 2020, the company had guided for a revenue growth of 5.5 to 8.5 per cent (4-7 per cent in constant currency). READ MORE

Anupam Rasayan rallies 13% in 2 days after Plutus Wealth buys stake

Shares of Anupam Rasayan India gained 5 per cent to Rs 716 on the BSE in intra-day trade on Thursday, rallying 13 per cent in the past two trading days, after Plutus Wealth Management bought 1 million shares of the company via open market on Wednesday. The stock is trading at its highest level since its listing on March 24, 2021. READ MORE

 

Sector Watch :: Tyre stocks under pressure


Delta Corp in focus :: All casinos to remain shut in Sikkim

Due to a surge in Covid-19 cases being witnessed in Sikkim, the government of Sikkim has amongst various other measures, directed all establishments to close as per the instructions laid down.
 
Accordingly, our Casino in Sikkim will remain closed until May 16, 2021. We are unable to estimate the quantum of potential losses on account of this temporary closure and the pandemic at this time.
 

Jeff Bezos sells $2.5 billion of Amazon and signals more coming

Jeff Bezos sold about $2.5 billion of Amazon.com Inc. stock, his first big disposal this year after offloading more than $10 billion worth of shares in 2020.
 
Bezos sold around 739,000 shares this week under a pre-arranged trading plan, according to U.S. Securities and Exchange Commission filings. He plans to sell as many as 2 million shares, according to a separate filing. READ MORE

Coforge advances 10% on healthy March quarter performance

Shares of Coforge moved higher by 10 per cent to Rs 3,181.65 on the BSE in intra-day trade on Thursday after the company reported a robust financial and operating performance during the March quarter of the financial year 2020-21 (Q4FY21). The IT firm reported continued growth-led momentum, with consolidated revenue growing 7.1 per cent sequentially in dollar terms to $172.1 million during the January-March quarter. In constant currency (CC) terms, revenue grew 5.1 per cent over the preceding quarter. In rupee terms, revenue was up by 6 per cent sequentially and up by 13.7 per cent year-on-year (YoY) at Rs 1,261 crore during Q4FY21. READ MORE

Markets may be ignoring banks' NPA risk from second coronavirus wave

The RBI’s new measures to tackle the Second Wave seem to have lifted sentiments in the financial sector, temporarily at least. The key points of the Governor’s statement can be summarised as follows. Global economic activity seems to be picking up but the Second Wave has put the brakes on fast domestic recovery. The next few months are likely to be bad and the central bank will do what it can, to support life and maintenance of livelihood through a difficult period. READ MORE

US-listed Emerging Markets ETFs see 26th straight week of inflows

US-listed exchange traded funds (ETFs) that invest in emerging markets (EMs) saw positive inflows for a 26th week in a row, the Bloomberg data showed. Total inflow was $341.7 million for the week ended April 30, up from $81.1 million in the previous week. If not for the $583-million inflow into ETFs that invested in China and Hong Kong, the flows could have turned negative for the EM pack. The $4.4-billion KraneShares CSI China Internet ETF, or KWEB, received $255 million last week. READ MORE

NEWS ALERT :: Angel Broking plans to foray into AMC business, suggests report

>> Angel Broking aims to float a MF

>> Will focus on tech-backed passive investment products

(Source: TV Report)

Results today :: Analysts see up to 60% YoY rise in Hero MotoCorp's Ebitda

Nomura
 
The global brokerage has one of the most conservative estimates for the New Delhi-based firm with standalone net profit seen at Rs 794 crore, up around 28 per cent YoY, during the quarter under review. This compares with PAT of Rs 620.7 crore posted in Q4FY20 and Rs 1,084.5 crore in Q3FY21.
 
Revenue and Ebitda, meanwhile, could rise 33 per cent YoY each to Rs 8,493.8 crore and Rs 1,102.3 crore, respectively. READ MORE
 

NEWS ALERT :: Kerala announces complete lockdown

Corporate India jittery about Q1 amid a relentless second Covid-19 wave

Early signals from the results of the fourth quarter of FY21 have been encouraging, but corporate India isn't celebrating. Reason: A broad swathe of companies across sectors believe that the first quarter of the current financial year will severely test their resilience amid a relentless second Covid-19 wave that has pushed India to the top of the list of the worst-affected countries in the world. READ MORE

NEWS ALERT :: J&K Bank Board to consider raising of capital on May 12

The Board of Directors of the Bank will meet on Wednesday, 12th May, 2021 inter-alia to consider/discuss the proposal of capital infusion by the Govt. of Jammu & Kashmir as its promoter shareholder to the tune of Rs 500 crores in the Bank

Indian Energy Exchange gains 5% on strong business update for April

Shares of Indian Energy Exchange (IEX) edged higher by 5 per cent to hit a new high of Rs 406 on the BSE in intra-day trade on Thursday after the company said it achieved a 90.2 per cent year-on-year (YoY) growth in power market trades at 7,707 million units (MU) volume in the month of April 2021. While the growing electricity consumption has been one of the key factors behind the consistent performance of the Exchange market, its robust value proposition in terms of the most competitive prices, flexible, and efficient procurement position Exchange as the most preferred destination for power procurement for both the distribution utilities as well as the industrial consumers, IEX said in a press release. READ MORE

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

COMPANY DAY'S HIGH(RS) DAY'S LOW(RS) LATEST(RS) FALL(%)
Shri.City Union. 1756.10 1587.15 1613.05 -8.15
IDBI Bank 43.50 40.15 40.90 -5.98
Tata Metaliks 1215.90 1131.00 1157.90 -4.77
Deepak Nitrite 1989.20 1887.25 1895.30 -4.72
Click here for the full list

Q&A | Return from Indian stocks in next 1-yr will be disappointing: Marc Faber

The Indian economy, I feel, should grow at 4 – 5 per cent in real terms in 2021. That said, it is difficult to predict the possibility of a recession right now for Indian economy. READ FULL INTERVIEW HERE

India's stock market shockingly resilient amid Covid-19 devastation

Why isn’t India’s stock market falling more? The question is a fair one, considering the risky asset class in a country struggling with its most horrific calamity since its violent partition and independence nearly 75 years ago. New daily Covid-19 infections have remained above 300,000 for two weeks now, the worst caseload the world has seen. The death rate is 3,700-plus — probably much higher if you discount the underreported official statistics. READ MORE


Bajaj Healthcare in focus :: Co launches Ivermectin Tablets

IVEJAJ tablets comprising Ivermectin. Ivermectin is an Anti-Parasitic Drugs, which is used to control parasitic roundworm infections and curing parasitic infections, helps to improve health of Covid-19 patients. 
 

MARKET CHECK :: Sensex slips into the red


Tata Steel gains 6%, hits new high on strong March quarter results

Shares of Tata Steel rose 6 per cent and hit a new high of Rs 1,128.80 on the BSE in intra-day trade on Thursday after the company reported a higher-than-expected consolidated net profit, attributable to owners of the company, at Rs 6,644 crore in the March quarter (Q4) of FY21, against a net loss of Rs 1,481 crore in the corresponding period last year.
 
Revenue from operations jumped 39 per cent year-on-year (YoY) to Rs 49,977 crore on the back of higher steel prices and strong volumes, leading to strong operational gains. READ MORE

March Quarter Results :: Coforge reports profit of Rs 133 crore

>> Revenue: Rs 1,261 crore


SECTOR WATCH:: Metals in focus


Sectoral trends on the NSE at this hour


IDBI Bank shares zoom 15% as Cabinet gives in-principle nod to divestment

Shares of IDBI Bank surged 15 per cent to Rs 43.50 on the BSE in the intra-day trade on Thursday after the Cabinet Committee on Economic Affairs gave its in-principle approval for strategic disinvestment along with transfer of management control in IDBI Bank. At 09:21 am, the stock was trading 9 per cent higher at Rs 41.35 on the BSE on the back of heavy volumes. Around 2.7 million equity shares had changed hands on the BSE in the first few minutes of trade, as compared to an average 1.74 million shares traded in the past two weeks. In comparison, the S&P BSE Sensex was up 0.10 per cent at 48,728 points. READ MORE

Adani Green rises 1.6% post Q4 nos

Adani Green Energy reported consolidated profit of Rs 104 crore for Q4FY21 against Rs 56 crore reported in Q4FY20.


Most active stocks by volume

Company PRICE(rs) CHG(%) VOLUME
IDBI Bank 41.40 9.09 3711390
B H E L 57.90 2.30 1689232
Vodafone Idea 8.35 -0.24 1218148
Suzlon Energy 5.08 0.20 1007434
Bank Of Maha 25.40 5.18 948681
» More on Most Active Volume

Praj Industries slips in a firm market

HDFC Mutual Fund sold 434,583 equity shares (0.24 per cent) in Praj Industries via open market transaction on May 3, reducing shareholding to 6.51 per cent.


Maharashtra Seamless rallies nearly 3% on new ordr win

ONGC has issued the letter of award to Jindal Drilling & Industries for deployment of Jack-up drilling rig 'Jindal Explorer' owned by Maharashtra Seamless on charter hire contract for a period of 3 years.


Tata Motors holds gains despite reports of CCI probe

The Competition Commission of India (CCI) has ordered a detailed probe against Tata Motors for alleged abuse of its dominant position with respect to dealership agreements.


Result Reaction :: Tata Steel up over 1%

Tata Steel reported a higher-than-expected consolidated net profit at Rs 6,644 crore in the March quarter (Q4) of FY21, against a net loss of Rs 1,481 crore in the corresponding period last year. The company’s performance was best-ever across metrics such as revenue, Ebitda and net profit (excluding exceptional items).


IDBI Bank jumps 10% as Cabinet approves divestment proposal

The Cabinet Committee on Economic Affairs has given its in-principle approval for strategic disinvestment along with transfer of management control in IDBI Bank Ltd, government said on Wednesday.


Opening Bell


Sensex Heatmap :: Bajaj Auto, ONGC top gainers


Opening Bell :: Sensex off to a firm start


Commodity prices in early deals


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


Markets at Pre-open


Markets at Pre-open


BROKERAGE VIEW :: Phillip Capital on Adani Ports and SEZ

Reco: BUY | TP: Rs 850

ADSEZ reported modest set of numbers, slightly below expectations. Revenue growth was slightly weak due to tepid SEZ & Logistics income, while margin remained stable. Overall port performance remained strong, as the company ended FY21 with cargo growth of +11% (+1.6% organic) – an achievement in the covid impacted year.

With the acquisition of Krishnapatnam and Gangavaram ports, the company now has a virtual monopoly in the ports sector (25% market share), and is expanding the same to logistics. We continue to view ADSEZ as an excellent way to play the economic recovery cycle, while owning a fundamentally superior business from a long-term perspective. Maintain BUY.

BROKERAGE VIEW :: Antique Stock Broking on Retail

Overall we believe that the retailers will witness a major impact from second half of April with gradual pick up in lockdown curbs across states However, the overall impact will not be as severe as FY21. As per our analysis, there could be an initial revenue impact of 9-16% and EBITDA impact of 14-35% across fashion retailers in FY22e.

On the basis of store exposure to the affected area, Shoppers Stop will witness the maximum impact while VMart will witness the minimum impact. Trent, ABFRL and VMart revenue to be impacted by 12%/ 9% and 15% respectively and EBITDA to be impacted by 24%/14% and 21% respectively in FY22e. We are not expecting any material impact on Avenue Supermarts as of now.

We maintain our HOLD recommendation for Avenue Supermarts and Trent and our BUY recommendation for ABFRL, VMart, V2 Retail and Shoppers Stop. We revise our target price of Avenue Supermarts, Trent, ABFRL, VMart, V2 Retail and Shoppers Stop to Rs 2,682, Rs  730, Rs 206, Rs 2981, Rs 223 and Rs 240 respectively.

BROKERAGE VIEW :: Antique Stock Broking on CEAT

Reco: BUY | TP: Rs 1,725

CEAT reported lower than expected EBITDA margin due to higher raw material prices. Revenue grew 46% YoY, led by strong volume growth across segments. EBITDA Margin of 11.4% was below our estimates on account of higher raw material cost. The pandemic induced lockdown remains a concern on OEM and retail demand in the near-term, even as the company's plants are operational currently. We expect strong growth in CEAT's sales over FY21-23E, led by demand growth in replacement and OEM segments and market share gain backed by capacity expansion.

The company has taken ~3-4% price increases to partly pass-on the increase in RM cost, however we expect EBITDA margin to decline 100bp in FY22E. The reduction in working capital and partial deferment of capex, combined with strong profitability in the last three quarters, has resulted in strong FCF and reduction in gross debt.

However, we do expect higher capex and an increase in working capital in FY22E, which will lead to an increase in gross debt. CEAT has announced an investment of INR 12bn to expand TBR capacity. We maintain BUY with a revised target price of INR 1,725 (previously INR 1,864).

BROKERAGE VIEW :: Antique Stock Broking on Blue Dart

Reco: BUY | TP: Rs 6,500

Bluedart Express (BDE) registered strong exit to FY21 with another quarter of robust operating performance. Company's topline grew 33% YoY to INR9.66bn (est: INR9.5bn), after a 21% YoY growth in 3Q, partly benefitting from soft base. Standalone EBITDA spiked 11x YoY to INR1.74bn (est: INR1.5bn). Operating margins remained steady and higher at 18% vs 16.8%QoQ (2.2%YoY) benefitting from positive operating leverage, higher pricing YoY and cost efficiency initiatives.

PAT in 4Q stood at INR891mn vs loss of INR238mn YoY. After bottoming in 1Q, the company has been delivering better than expected results for past 3 quarters on the back of improved economic activity (driving Topline), traction in ecommerce, higher pricing and several cost rationalization initiatives - all contributing to superior margins in consecutive quarters. Going forward, impact of partial lockdowns on account of second Covid wave is getting visible in slowing topline in May.

We have accounted for Topline moderation in 1HFY22; however, on higher margin assumptions, our EPS estimates still go up by 12%/20% for FY22/FY23. Else for the risk associated with Covid second wave, the upgrade would have been even higher. We raise Price Target to INR6,500 (earlier INR5,440), valuing the stock at 45x FY23 EPS. We maintain BUY rating on the stock.

BROKERAGE VIEW :: MOFSL on L&T Infotech

Reco: NEUTRAL | TP: Rs 3,680

LTI has deep domain capabilities, strong partnerships, and low exposure to segments that faced headwinds (legacy IMS and BPO). This is helping the company secure industry-leading growth rates.

On the margin front, we expect some normalization from current levels on account of the easing of utilization levels and investments needed by the management in S&M to drive growth.

Despite being confident of the company’s execution capabilities, we remain on the sidelines, led by significant multiple expansions. We value the stock at 26x FY23E EPS (in line with our TCS valuation, given LTI’s industry-leading growth). Our TP of INR3,680 per share implies a 6% downside. Maintain Neutral.

BROKERAGE VIEW :: ICICI Securities on Banks

Taking into consideration the current surge in covid cases and the related business disruption, the Reserve Bank of India has announced measures to: 1) provide immediate liquidity to ramp-up healthcare facilities, 2) support the smallest and the most vulnerable segments; and 3) ease the financial stress in the system.

This is the need of the hour to ensure financing support to healthcare infrastructure. Incentivising through PSL classification, higher rate on equivalent surplus liquidity and indirect delivery are steps in the right direction. Banks will also tend to be more proactive in lending for this purpose.

The resort to restructuring under the earlier scheme has been much lower than earlier envisaged. Leading banks have restructured less than 1% and even for financiers’ exposures to vulnerable segment, restructuring was not more than 3%. However, at that time, there was moratorium too co-existing that had deferred the payment obligations and the stress. Undoubtedly, it is a timely measure to provide an option of restructuring, but response to the same is yet to be seen
 

BROKERAGE VIEW :: Nirmal Bang on Tata Chemicals

Reco: SELL | TP: 546

We maintain Sell on Tata Chemicals Ltd (TTCH) based on marginal changes in estimates and 2.9% haircut in SOTP-based target price (TP) of Rs546 post the massive miss in 4QFY21 results due to one-off items hitting US and UK earnings. Long term outlook is positive based on management comments during the concall about demand returning to pre-Covid volume in all regions (including the troubled US business), The pressure on pricing outside India is likely to ease by 4QFY22 as quarterly contract prices are likely to be raised to align with market prices.

We have modelled positives like improving long term outlook for demand growth in Soda Ash. However we have tempered pricing/margin estimates as annual US contract prices are down US$5/te and increase in energy/freight cost remains a headwind in FY22. Our Sell is based on (i) 22.8% downside from CMP (ii) rich valuation at 18.1x on FY23E ~ 79.2% premium to 5-year median PE of 10.1x and (iii) lack of fresh catalysts over the next 1-2 years and (iv) single digit ROCE/RoE.

BROKERAGE VIEW :: ICICI Direct on Alembic Pharma

Reco: HOLD | TP: Rs 1,055

Q4 revenues grew 6.1% YoY to Rs 1,280 crore with strong growth in RoW formulations and API segment being partly offset by 17.7% YoY decline in US sales to Rs 475 crore. Domestic formulations grew 4.7% YoY to Rs 358 crore. RoW sales grew a robust 76.5% YoY to Rs 233 crore whereas API segment grew 38.1% YoY to Rs 214 crore.

EBITDA margins declined 45 bps YoY to 26.7% with lower gross margins being mostly offset by lower employee cost. EBITDA grew 4.3% YoY to Rs 342 crore. Adjusted PAT grew 6.5% YoY to Rs 251 crore.

Q4 topline performance was in line with expectation (albeit skewed), impacted by decline in US sales. Profitability was better-than-expected due to lower-than-expected staff costs, other expenditure (ex-R&D) and a lower tax rate. Owing to pricing pressure across the Sartan portfolio, the management expects US quarterly sales to remain subdued in the near term. On the domestic front, the management expects a steady run rate, going forward. Additionally, in the API segment with Chinese players returning to the market, the management expects some sales moderation but expects steady growth.

Apart from this, the management is aggressively spending on R&D and manufacturing for US oncology, injectables, derma segments which provides growth optimism for medium to long-term but may impact near term margins. 

BROKERAGE VIEW :: IDBI Capital on L&T Infotech

Reco: ACCUMULATE | TP: Rs 4,309

Larsen & Toubro Infotech’s (LTI) Q4FY21 revenue growth of 4.4% QoQ in CC was in-line with our forecast. EBIT margin of 19.4%, -125bps, was higher than our forecast. EPS of Rs31.2, +5.1%/+27.3% QoQ/YoY, was even bigger beat to our forecast.

In Q4FY21, LTI has secured 2 large deals with net-new TCV of US$66 mn taking the FY21 TCV to a new-high of US$404 mn. It has added 2 more Fortune 500 client taking the total to 71. LTI confirmed that the deal-pipeline remains strong. It expects to remain in leaders quadrant as regards revenue growth in FY22.

We factor Q4FY21 beat and increase our FY22/FY23 revenue (US$) forecast by 1.3%/1.1% and EPS by 3.9%/4%. We now forecast revenue (US$)/EPS CAGR of 14.9%/13.9% over FY21-23. We increase our TP to Rs4,309 (Rs4,144 earlier) based on PER of 30x FY23E.

We now recommend ACCUMULATE vs. HOLD earlier.


BROKERAGE VIEW :: Kotak Institutional Equities on Banks

Outlook: ATTRACTIVE

The RBI has announced a few measures that aim to increase credit flow to specific sectors or arrest a possible increase in impairment ratios by extending or modifying the restructuring scheme for MSME borrowers. It is quite likely that the RBI is taking a more calibrated approach looking at the incoming data before new measures are introduced.

The overall usage of these schemes has been low suggesting lenders’ or buyers’ reluctance to take advantage of these schemes. We are not changing our view currently and keep our positive view on large banks; HDFC, STFC and Chola in diversified financials.

BROKERAGE VIEW :: Kotak Institutional Equities on L&T Infotech

Reco: REDUCE | TP: Rs 3,850

LTI reported a solid 4.4% sequential growth in c/c. Gross profit margin declined sharply, while SG&A pullback contained EBIT margin decline to 120 bps. LTI is set for consistent mid-teens growth led by strength in core modernization programs and rapidly growing cloud infrastructure practice backed by excellent sales and leadership teams.

However, these positives are more than captured in the current market price. We retain REDUCE rating on expensive valuations. We tweak estimates, incorporate revised INR/USD and roll over, leading to FV increase to Rs3,850 (Rs3,810 earlier) at unchanged 25X June 2023E earnings

Bulk deals on the NSE as on Wednesday

Bulk deals on the BSE as on Wednesday

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


Top stocks to watch today

Results today: A total of 25 firms are slated to post their March quarter numbers today, including Hero MotoCorp, Tata Consumer, Adani Power, Blue Star, Hikal, Icra and Raymond.
 
HeroMoto Corp, slated to report its March quarter results (Q4FY21) on May 6, is expected to post nearly 60 per cent year-on-year growth in earnings before interest, tax, depreciation, and amortization (Ebitda) aided by healthy sales volume and low base effect. However, price hikes taken due to BS-VI transition and to off-set increase in input costs may not be enough to cushion Ebitda margin hit, say analysts. READ MORE

Rupee check

Source: Bloomberg


Oil check :: Brent hovers around $69/barrel-mark


SGX Nifty alert

>> At 8:15 AM, the index was at 14,731 levels, up 38 points

Asian markets check

In Asia, stocks rose in early trade while US futures were steady. Japan’s Topix Index rose 1.5%, South Korea’s Kospi edged up 0.75% and Australia’s S&P/ASX 200 Index climbed less than 0.1%.

Wall Street on Wednesday

The Dow Jones Industrial Average ended at a record high in the overnight session, driven higher by energy and other economically sensitive sectors, while the Nasdaq closed in red as mega-cap growth stocks slipped.
 
The Dow closed up by 0.29%, while the S&P 500 gained 0.07% and the Nasdaq Composite gave up its earlier gains and ended 0.37% lower.

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