Financial, RIL drive Sensex 661 pts up; Nifty tops 14,500; TCS falls 4%

Topics MARKET WRAP | Markets | TCS

Illustration: Binay Sinha
Stock market updates: Breaking away from a range-bound trade, the benchmark indices zoomed over 1 per cent in the last-hour of trade on Tuesday amid broad-based buying. Barring the Nifty IT and Pharma indices, which ended over 3 per cent and 1 per cent lower, respectively on the back of profit-booking, all other sectoral indices ended the day in the green.

While the Nifty PSU Bank index surged 4 per cent after nursing a 9 per cent cut on Monday, the Nifty Bank, Private Bank, Financial Services, Metal, Auto and Realty indices gained between 3 per cent and 4 per cent. The Nifty FMCG index, meanwhile, ended 0.6 per cent higher. 

Among the frontline indices, the BSE barometer Sensex jumped 661 points, or 1.4 per cent, to settle the day at 48,544 levels. In the intra-day deals, the index had hit a high and low of 48,627 and 47,775, respectively.

On the NSE, the Nifty50 index closed the day at 14,505 levels, adding 194 points or 1.36 per cent. The index's high and low of the day were 14,529 and 14,275, respectively.

Mood in the broader market too remained upbeat. The S&P BSE MidCap index gained 1.46 per cent with IDBI Bank, Bank of India, Federal Bank, L&T Finance Holdings, IDFC First Bank, SAIL, and Shriram Transport Finance soaring between 5 per cent and 9.5 per cent.

The S&P BSE SmallCap index, on the other hand, ended 1.2 per cent higher.

Buzzing Stocks
Shares of information technology major Tata Consultancy Services (TCS) tumbled 5.1 per cent to Rs 3,074.55 apiece on the BSE in the intra-day deals on Tuesday as investors booked profit in the counter. Even as TCS reported its highest-ever order book in a quarter, at $9.2 billion, and a 15 per cent rise in net profit at Rs 9,246 crore, analysts feel the stock is trading at premium valuations and has factored-in most of the positives. The stock ended 4.2 per cent lower on the BSE today. READ MORE

Shares of Adani Ports and Special Economic Zone, on Tuesday, fell 6 per cent to Rs 702 on the BSE after S&P Dow Jones Indices said it has removed the company from its sustainability index due to the firm’s business ties with Myanmar’s military which is accused of human rights abuses after a coup this year. READ MORE

Shares of public sector lender Bank of Maharashtra surged 20 per cent to hit an intra-day high of 27.3 apiece on the BSE on Tuesday after over 3 million shares changed hands on the counter in multiple block deals. By close, the stock 18 per cent higher at Rs 27 per cent as against a 1.4 per cent gain in the benchmark Sensex index. About 3.2 million shares changed hands on the counter on the BSE till 3:30 pm in multiple block deals. READ MORE

Shares of IDBI Bank jumped 10.6 per cent to hit an intra-day high of Rs 37.40 on the BSE on Tuesday after a Business Standard report stated that the Cabinet will soon consider the proposal to sell the government’s 45.5 per cent stake in the company, paving the way for strategic divestment in the lender. READ MORE

Global markets
Global stocks ticked up on Tuesday as China's exports in dollar terms rose 30 per cent YoY, boosting confidence for a rebound in its domestic demand. Besides, market players awaiting US data expected to show a pick-up in inflation.

The broad Euro STOXX 600 gained 0.3 per cent to near record highs, with export-heavy German shares up 0.2 per cent. Indexes in Paris and London shares fell 0.1 per cent.

In Asia, Japan's Nikkei added 0.7 per cent, South Korea's Kospi gained 1 per cent, but China's CSI300 index fell 0.16 per cent.

(With inputs from Reuters)

Note: Domestic equity markets shall remain closed on Wednesday, April 14, on account of Baba Saheb Ambedkar Jayanti holiday

LIVE UPDATES

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

Nifty broke a critical level of 14400 and is now expected to witness extended consolidation or a possible correction. The next few trading sessions are expected to witness high volatility. On the downside, 14000 can be tested if selling pressure continues. For investors we advise to remain buyer on dips as the medium term outlook remains positive; Leveraged traders are advised to keep exposure under check as volatility remains elevated.
 
 

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

After a flat opening, the benchmark Nifty index slipped lower and made a low of 14296.45, but in the second half of the session, it recovered from the bottom, and managed to close at 14525.70 levels with a gain of 215 points. Bank Nifty closed at 31771.60 levels with a gain of more than 3% in a day. All the Nifty indices settled at green notes except Nifty IT & Pharma, whereas Nifty IT was the prime laggard for the day. On the stock front, M&M, BAJAJFINSERV, TATAMOTORS, MARUTI were the top gainer while TCS, DR.REDDY, TECHM, WIPRO were the losers for the day. On the daily chart, the benchmark index has reversed from its immediate support of 14250 levels and settled above 14500 territories.  Moreover, an oscillator Stochastic has also pulled back from the oversold zone with positive crossover. At present, the Nifty index has an immediate support at 14250 levels, while on the higher side it may find resistance around 14700 levels.

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

On Tuesday, the Nifty/Sensex after a subdued first half posted a sharp bounce back to close higher at 14,504,80/48544.06. Today, the market remained well above the previous day's low of 14275/47775, but in the latter, the market managed to move beyond the level of 14450/48550, which was a significant resistance for the market. This was a unique day for the market and on Thursday the market could trade between the levels of 14550/49000 and 14250/47690. Above 14550/49000 level, Nifty could reach 14650/14670 (49400 - Sensex) level  On the other hand, 14450/48550 and 14250/47690 will serve as the major support in the market. Below 14250/47690 levels, the Nifty/Sensex would fall to 14000/47000 levels.   As long as the market does not break 14250/47690, the market will remain in the trading range. The focus should be on insurance and technology stocks.

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

The absence of follow through weakness on Tuesday and a strong comeback of bulls from the crucial lower supports/range could mean more upside in the short term. The formation of present pattern and the confirmation in the next sessions (follow-through upmove on Thursday) could eventually indicate a chances of revisit of the upper range of around 14800-14900 levels in the coming weeks. Immediate support is placed at 14420.

MARKET CLOSING COMMENT :: Anand James, Chief Market Strategist at Geojit Financial Services

The week had opened on a low note and sentiments remained downbeat as rising infections and prospects of lockdown led to a retest of March's lows. But this also prompted bargain hunters to regroup today, keeping Nifty from falling further. Sectoral rotation was seen with IT and Pharma finding funds moving out and into other sectors. The shot in the arm came in the second half of the day, with emergency approvals for foreign vaccines and a new mechanism for trials prompted short-covering in Nifty lifting it to the vicinity of 14500s

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

The market witnessed some lackluster movement in the first half of the trading session and an attempt to break the resistance level around the Nifty 50 Index level of 14500. The short-term technical condition appears like a sideways consolidation in the process. Sustaining above 14500 levels, the market to gain momentum, leading to an upside projection till 14800 levels. The momentum indicators like RSI, MACD to show divergence, indicating a likelihood of further consolidation around the current market level.

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

Market attempted to pull back from yesterday’s selloff but wasn’t that enthusiastic.  IT sector broke the trend due to profit booking as initial Q4 results were in line with expectations not providing enough leeway to a highly valued sector. While Industrial production for February declined by 3.6% primarily due to contraction in the manufacturing and mining sectors. India’s retail inflation for March also rose to 5.52%, however, it did not harm the market sentiment as it was in line with the recent RBI policy forecast. How the lockdowns will affect the economy will determine the trend of the domestic market, in the short-term

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

On an auspicious day today we saw a partial reversal of the speculative unwinding witnessed yesterday, Bulls regained the momentum in Afternoon Trade as the see-saw battle between the Virus & Vaccine tilted towards the latter with the approval of the Third Vaccine. The dovish stance of the RBI gained over inflation in the minds of investors as we saw investor interest in BFSI. The broader markets though did see profit-taking in IT & Pathology names today
 

BSE Snapshot :: M-cap of all BSE listed firms riss to Rs 203 trillion


Sector of the day :: PSU Banks rally ahead of likely meeting on privatisation slated tomorrow


Sector of the day :: Nifty Pharma down 1%; 6 of 10 constituents end in the red


Sector of the day :: Nifty IT skids 3% amid profit-booking


Broader market :: S&P BSE MidCap index outperforms benchmarks


Stocks that drove the Sensex today


Sectoral trends on the NSE


Sensex Heatmap at Close


CLOSING BELL

Among the frontline indices, the BSE barometer Sensex jumped 661 points, or 1.4 per cent, to settle the day at 48,544 levels. In the intra-day deals, the index had hit a high and low of 48,627 and 47,775, respectively.
 
On the NSE, the Nifty50 index closed the day at 14,505 levels, adding 194 points or 1.36 per cent. The index's high and low of the day were 14,529 and 14,275, respectively.
 

Gold price fall not a worry for NBFCs, but banks need to be watchful: Report

The correction in gold prices in recent months is not expected to materially impact the asset quality of non-banking financial companies (NBFCs) lending against gold. Apart from periodically collecting interest over the past few fiscals, they have ensured that disbursement loan-to-value (LTV) is maintained below 75 per cent, ratings agency Crisil said.
 
On a 30-day rolling basis, gold price has corrected 10 per cent over the past six months, while on an absolute basis it fell twice that rate. READ MORE

JLR retail sales up 12% in Q4, continuing recovery from Covid-19 impact

Tata Motors said on Tuesday its British luxury unit Jaguar Land Rover (JLR) achieved retail sales of 123,483 vehicles in Q4 fiscal 2020-21, 12.4 per cent higher than the same quarter last year.
 
China sales were up 127 per cent compared to a year ago when that market was heavily impacted by Covid-19. Sales in North America were also up year-on-year (plus 10.4 per cent) while other regions remain lower than pre-Covid levels, including overseas markets (minus10 per cent), the UK (minus 6.8 per cent) and Europe (minus 4.9 per cent). READ MORE
 

Volatility Alert

>> India VIX cools off 10 per cent to 20.66 level

MARKET UPDATE:: ICICI Bank, HDFC twins, and Bajaj Finance among top contributors to Sensex's 600-pts rally


Bitcoin rallies to all-time high of $62,741 before landmark Coinbase IPO

Bitcoin hit a record of $62,741 on Tuesday, extending its 2021 rally to new heights a day ahead of Coinbase's initial public offering. The largest U.S. cryptocurrency exchange's listing on the Nasdaq on Wednesday is considered a landmark victory for cryptocurrency advocates. The world's biggest cryptocurrency, which has growing mainstream acceptance as an investment and a means of payment, rose as much as 5% on Tuesday. Smaller rival Ethereum also reached a record high of $2,205. READ MORE

Cipla doubles remdesivir production to meet 'unprecedented' demand

India's Cipla Ltd has doubled production of COVID-19 medication remdesivir to help meet "unprecedented demand" as the country battles a massive second wave of infections, the drugmaker said on Tuesday.
 
India has overtaken Brazil as the world's second-worst coronavirus-hit country after the United States, having administered about 107 million vaccine doses among a population of 1.4 billion. READ MORE
 

Sensex at day's high; here are the top gainers & losers from the index


Sebi comes out with new guidelines on reporting formats for mutual funds

Capital markets watchdog Sebi on Monday came out with fresh guidelines on reporting formats for mutual funds.
 
The formats for the reports to be submitted byasset management companies (AMCs) to trustees, by AMCs to Sebi and by trustees to the regulator have been revised on the basis of consultation from the industry. READ MORE

Recovery from intra-day lows in today's trade

COMPANY DAY'S LOW(RS) DAY'S HIGH(RS) LATEST(RS) RISE(%)
Gujarat Alkalies 378.00 469.15 443.85 17.42
Bank Of Maha 23.00 26.30 26.05 13.26
Sobha 475.00 548.00 532.05 12.01
Bank Of India 66.20 73.40 72.35 9.29
Click here for the full list

IDBI Bank jumps 8% as Cabinet may soon consider disinvestment proposal

Shares of IDBI Bank jumped 8 per cent to hit an intra-day high of Rs 36.50 on the BSE on Tuesday after a Business Standard report stated that the Cabinet will soon consider the proposal to sell the government’s 45.5 per cent stake in the company, paving the way for strategic divestment in the lender. READ MORE

European markets check

(Source: Reuters)


MARKET UPDATE:: Sensex surges 400 pts


India fast tracks emergency approvals for foreign made Covid-19 vaccines

The union government is speeding up emergency approvals for foreign-made vaccines that have been granted emergency use authorisation (EUA) in other countries amid alarming spike of coronavirus infections across the country.
 
This is being done to expand the basket of vaccines for domestic use and hasten the pace and coverage of vaccination, according to an official statement from the government. READ MORE

Monsoon likely be normal this year in India, marking a hat-trick: Skymet

Skymet, a private weather forecasting agency, said on Tuesday the southwest monsoon in 2021 that will start from June is expected to be ‘normal’ at 103 per cent of the Long Period Average (LPA). The LPA for June to September rainfall is estimated to 880.6 mm, meaning that if the forecast come true, the actual rainfall in the country is expected to be around 907 millimeters. READ MORE

Wall Street for all? India's beleaguered cryptocurrency crowd fights back

In this world, Wall Street's capabilities will be available to everyone, according to angel investor Balaji Srinivasan, formerly the chief technology officer at Coinbase Global Inc., the largest U.S. crypto exchange about to go public. “We could turn every phone into not just a bank account but a bonafide Bloomberg Terminal,” he writes on his blog. READ MORE

Infosys Q4FY21 preview: PAT seen rising 14-23%; buyback details eyed

Driven by the ramp-up of large deals and strong bookings in the earlier quarters, analysts expect information technology (IT) bellwether Infosys to post steady growth in revenue and profits for the March quarter of the financial year 2020-2021 (Q4FY21). However, they expect a sharp contraction in the Ebit (earnings before interest and tax) margins. READ MORE


Second Covid-19 wave poses threat to India's economic recovery: Moody's

The second wave of Coronavirus (Covid-19) infections is credit-negative and poses threat to economic recovery in India, according to global rating agency Moody’s. The second wave of infections presents a risk to growth forecast as the reimposition of virus management measures will curb economic activity and could dampen market and consumer sentiment. READ MORE


Stocks that hit 52-week high on BSE today in an otherwise rangebound market

Company PRICE(rs) 52 WK HIGH CHG(%)
Cipla 896.95 932.40 -0.67
Dr Lal Pathlabs 3051.55 3356.95 -8.60
EClerx Services 1141.00 1245.00 -5.16
Gujarat Alkalies 450.60 469.15 11.94
Gujarat Fluoroch 728.90 745.00 3.08
» More on 52 Week High

MARKET UPDATE:: Sensex regains momentum


RIL, Voda Idea, Escorts: These 38 stocks breached 200-DMA amid market crash

Domestic equity markets have turned extremely volatile over the past few days as investors grapple with record Covid-19 infections in the country and fars of subsequent derailemnt of a fragile economic recovery. So far in the month of April, the benchmark S&P BSE Sensex and the Nifty50 indices have cracked 3.2 per cent and 2.5 per cent, respectively as India's new Covid cases soared from 72,115 as on March 31 to 160,838 as on April 12. READ MORE



NEWS ALERT :: Skymet predicts 'normal' monsoon for 2021

>> This would be third consecutive year of good monsoon

>> Skymet assumes 60% probability of normal monsoon; 15% probability of above-normal monsoon


Investors look for bargain hunts as markets crash, brokers advise caution

On a day the market crashed by more than 3 per cent, brokers were inundated with queries from customers on buying opportunities and bargain hunts, especially in the large cap space. There was renewed interest in banking, IT, pharma and infrastructure stocks.
 
On Monday, banking, media, realty, metal and auto stocks fell the most, with the Bank Nifty falling as much as 5.1 per cent per cent. READ MORE

Input costs and demand concerns may impact Marico in the near term

With a double-digit volume growth for the third consecutive quarter as well as price hikes, demand trends continue to be robust for Marico. In a recent update, the company indicated a ‘very strong double-digit volume growth’ on a low base for the India business which accounts for three fourths of its overall revenues.
 
Price hikes taken to offset the rise in input costs is expected to keep the revenue growth at elevated levels.  READ MORE

MARKET VIEW | Gaurav Garg, Head of Research, CapitalVia Global Research

Market opened on a flat note and soon bulls came in the market and showed some positivity in the initial hour in the morning but couldn’t sustain the higher levels and break down below the opening levels. US markets showed some correction after breaking the higher levels. Asian markets were mostly trading in the green after some positivity due to increased demands in some markets. Poor performance in the manufacturing sector in India continued and has seen the sharpest contraction in the last six months. This has shown that the markets are yet to see the worse impact on the demand of the manufacturing products. We can expect the sluggish market to continue and if the market breaks the level of 14200 we can expect the market to fall the 13600. 

Adani Ports slips 5% as firm removed from S&P sustainability index

Shares of Adani Ports and Special Economic Zone, on Tuesday, fell 5 per cent to Rs 704 on the BSE after S&P Dow Jones Indices said it has removed the company from its sustainability index due to the firm’s business ties with Myanmar’s military which is accused of human rights abuses after a coup this year. The changes will be made to the index prior to the open on Thursday, April 15, S&P Dow Jones Indices said in a statement. READ MORE


Bank of Maharashtra soars 16% as over 1 million shares change hands on BSE

Shares of public sector lender Bank of Maharashtra surged as much as 15.6 per cent to hit an intra-day high of 26.3 apiece on the BSE on Tuesday after over one million shares changed hands on the counter in multiple block deals. At 11:48 am, the stock was ruling 8 per cent higher at Rs 24.6 per cent as against a 0.14 per cent gain in the benchmark Sensex index. About 1.25 million shares had changed hands on the counter on the BSE till the time of writing of this report. READ MORE


VIEW | Brokerage Anand Rathi on IIP contraction, rise in inflation

With contraction in industrial production and higher-than-expected inflation, fear of stagflation is likely to set in with negative financial-market implications. Yet, stagflation seldom persists and pro-growth policies are likely to continue. The overwhelming priority of macroeconomic policies in India and elsewhere remains promotion of growth. With continued concerns regarding growth, the rise in retail inflation would be largely ignored by the RBI unless it breached 6% for several months, which seems unlikely.
 

Market Check | Sensex erases gains, slips into the red


Paul Hickin :: Crude oil will climb above $70; energy security could reappear on the radar

The global physical oil benchmark Dated Brent is hovering in the low $60s/barrel, having risen more than 50 per cent since demand-led optimism over the Covid-19 vaccine rollout back in November. And oil prices could shift higher again once the market shakes off the latest bout of coronavirus jitters. READ MORE

BUZZING :: Adani Ports slips 4% as S&P Dow Jones removes the stock from the index

>> S&P Dow Jones Indices said it has removed India's Adani Ports and Special Economic Zone Ltd from its sustainability index due to the firm's business ties with Myanmar's military which is accused of human rights abuses after a coup this year.


Inox Leisure commences operations at new multiplex in Bangalore

Multiplex operator Inox Leisure on Tuesday said it has commenced commercial operations at a new multiplex in Bangalore in Karnataka, taking its total count to 153. The company has commenced the commercial operations of a multiplex cinema theatre taken on lease basis, located in Bangalore with effect from April, 2021, Inox Leisure Ltd said in a regulatory filing.

(Source: PTI)

MARKET UPDATE:: Sensex climbs off day's high


Sector watch :: Nifty IT index slides 3%


The second wave: Pharma stocks make a comeback as Covid-19 cases rise

After underperforming the broader market for the most of the past six months, pharmaceutical stocks are back in favour as Covid-19 cases rise, pushing the equity market into a tailspin. The BSE Healthcare index has risen 9 per cent in two weeks, against a 4 per cent decline in BSE Sensex.
 
On Monday, the BSE Healthcare fell just 0.8 per cent, while the Sensex declined 3.44 per cent. Dr Reddy’s Laboratories was the only index stock to gain on Monday, rising 5 per cent. READ MORE

Bandhan Bank gains 4% as loan growth jumps 21% YoY in March quarter

Shares of Bandhan Bank rallied 4 per cent to Rs 341 apiece on the BSE in Tuesday's intra-day session after the lender reproted a healthy growth in business for March quarter of FY21 (Q4FY21). The private lender, on Monday, reported a 21 per cent yearly growth in loans and advances to Rs 87,054 crore as of March 31, 2021 from Rs 71,846 crore as on March 31, 2020. READ MORE

Muthoot Finance declares interim dividend of Rs 20/share; stock rises 4%

Shares of Muthoot Finance gained 4 per cent at Rs 1,206.40 on the BSE on Tuesday after the company's board of directors approved payment of an interim dividend of Rs 20 per equity share.. Shareholders, who are entitled as on close of business hours on April 23, 2021, would be entitled to receive the interim dividend, the company said. The interim dividend will be paid to the shareholders within 30 days from the date of declaration, it said, in a filing to stock exchanges. READ MORE

Individual investors seeking yield in India snap up risky firms' debt

A further Rs 3,100 crore of bonds that individuals can buy into are being marketed right now, and another Rs 5,000 crore of such debt is in the pipeline including a deal from India Grid Trust announced late last week. Many savers desperate for yield are likely to jump at the chance to buy such notes. It’s because they are struggling with inflation pressure even as bank deposit rates have dropped. READ MORE

Here is why TCS shares declined 4% despite a strong Q4 earnings show

India's largest IT services player on Monday reported a strong set of numbers for its fourth quarter of FY21, as clients continued to spend on digital services and focused on reimagining their business operations. The biggest takeaway from the Q4 numbers was the order book at $9.2 billion, the highest-ever reported by TCS in a quarter since the company started reporting this metric. READ MORE

Top gainers on the BSE at this hour

Company PRICE(rs) CHG(%)
Gujarat Alkalies 461.35 14.61
Bank Of Maha 25.40 11.65
Graphite India 647.15 10.92
S H Kelkar & Co. 129.50 7.92
HEG 2193.60 7.24
» More on Top Gainers

Investors look for bargain hunts as markets crash, brokers advise caution

On a day the market crashed by more than 3 per cent, brokers were inundated with queries from customers on buying opportunities and bargain hunts, especially in the large cap space. There was renewed interest in banking, IT, pharma and infrastructure stocks. On Monday, banking, media, realty, metal and auto stocks fell the most, with the Bank Nifty falling as much as 5.1 per cent per cent. "We are getting a lot of queries from clients on what to buy. READ MORE

Most active stocks by volume

Company PRICE(rs) CHG(%) VOLUME
Vodafone Idea 8.89 1.48 6292599
Punjab Natl.Bank 34.40 1.18 1460532
Adani Power 89.20 -3.98 1285881
LIC Housing Fin. 386.50 0.98 1276857
Tata Motors 288.45 0.65 1209219
» More on Most Active Volume

NEWS ALERT :: Dr. Reddy's Labs gets Emergency Use Authorisation for Sputnik V in India

>> Dr. Reddy’s Laboratories today announced that it has received the permission from the Drug Controller General of India (DCGI) to import the Sputnik vaccine into India for restricted use in emergency situations as per the provisions of the New Drug and Clincial Trials rules, 2019 under the Drugs and Cosmetics Act.

Alert: In September 2020, Dr. Reddy’s had partnered with the Russian Direct Investment Fund (RDIF) to conduct the clinical trials of Sputnik V and distribute the vaccine in India. 
 

MARKET UPDATE:: Broader indices outrun benchmarks; India VIX cools off 4%


MARKET CHECK :: Indices at day's high


NBCC rises on new project award

>> The company said it has been awarded the work order for engagement as a project management consultant (PMC) for the construction of FCIL office building at Noida, Uttar Pradesh. The project value is Rs 65.10 crore at a PMC fee of 7 per cent.

L&T Finance Holdings advances 4% on merger plan

>> L&T Housing Finance and L&T Infrastructure Finance Company are to merge with L&T Finance, all wholly-owned subsidiaries of the company. The scheme of amalgamation is effective from April 12.


Hindustan Copper rallies over 3% as firm fixes issue price for QIP

>> The company closed its QIP and approved the issue price of Rs 119.60 per equity share for the issue.


Muthoot Finance gains over 1% on declaration of dividend

>> The board of Muthoot Finance approved payment of an interim dividend of Rs 20 per equity share.


Bandhan Bank zooms over 3% on healthy Q4 business update

>> The lender said it has witnessed a 21 per cent yearly growth in loans and advances to Rs 87,054 crore as of March 31, 2021. The bank's loans and advances stood at Rs 71,846 crore as on March 31, 2020. Total deposits of Bandhan Bank grew by 37 per cent YoY to Rs 77,972 crore as against Rs 57,082 crore during the reported period.


YES Bank trades marginally in the red

>> Sebi imposed a penalty of Rs 25 crore on Yes Bank in the matter of misselling the lender's AT-1 bonds few years ago. Besides, the watchdog has imposed a fine of Rs 1 crore on Vivek Kanwar, who was the Managing Director of Yes Bank, Rs 50 lakh each on Ashish Nasa and Jasjit Singh Banga, who were part of the bank's private wealth management team at the time of violation.


Result reaction :: TCS declines over 3%

>> he IT major's net profit for the March quarter rose 14.9% year-on-year (YoY) and 6.2% quarter-on-quarter (QoQ) to Rs 9,246 crore. Meanwhile, the revenue for the quarter stood at Rs 43,705 crore, up 5.9 per cent YoY and 4.2 per cent QoQ. The biggest takeaway from the Q4 numbers was the order book at $9.2 billion, the highest ever reported by TCS in a quarter since the company started reporting this metric.


Sectoral trends :: PSU Banks reverse Monday's losses; IT stocks drag


Sensex Heatmap :: TCS, Infy among top losers


Opening Bell :: Nifty attempts to reach 14,350


Opening Bell :: Sensex starts with a 200-pt gain


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 :: ICICI Securities on TCS

TP: Rs 3,350 | Reco: Downgrade to Hold

>> Reported growth and margins were in-line with our / consensus estimates. As we reach the fag end of the recovery leg, organic growth (2.6% QoQ, CC, our estimate) reverted more or less towards pre-Covid baseline levels for March quarter. This corroborates our argument that industry growth is unlikely to witness a meaningful acceleration (vs pre-Covid) over medium term as is expected by the street.

>> As we rebase our exchange rate estimates (now INR / US$ = 75 / 76 for FY22 / FY23E), FY22E EPS witnesses ~5% upgrade even as FY23E EPS remains largely stable.

>> Tactically, in the context of 2nd wave in India, TCS should command relative investor interest given (1) low / no disruption to IT and (2) perception of the stock as a cash proxy during heavy market volatility.

BROKERAGE VIEW :: Credit Suisse on TCS

Reco: Outperformance | TP: Rs 3,750
 
>> Strong end to the year, well positioned for robust FY22
 
>> Maintain FY22/23 estimates

>> Maintain +ve view as we believe sector has entered technology upcycle & expect TCS to continue to deliver industry leading growth
 

BROKERAGE VIEW :: Nomura on TCS

Reaffirm Neutral | TP: Rs 3,140
 
>> In-line 4Q; we await a better entry point

>> Best placed to benefit from rising spends on digital transformation initiatives at clients 

BROKERAGE VIEW :: Citi on TCS

Maintain Sell | TP: Rs 2,935 (Previous: Rs 2,870_ 
 
>> Continues to execute well; however, valuations at 31x 1yr forward (2sd above mean) price in positives

>> Raise EPS estimates by 2% for FY22E/23E (partly USDINR) 

>> Continue to prefer Infosys over TCS

Top stocks to watch today

TCS: The IT major's net profit for the March quarter rose 14.9% year-on-year (YoY) and 6.2% quarter-on-quarter (QoQ) to Rs 9,246 crore. Meanwhile, the revenue for the quarter stood at Rs 43,705 crore, up 5.9 per cent YoY and 4.2 per cent QoQ. The biggest takeaway from the Q4 numbers was the order book at $9.2 billion, the highest ever reported by TCS in a quarter since the company started reporting this metric.
 
YES Bank: Sebi imposed a penalty of Rs 25 crore on Yes Bank in the matter of misselling the lender's AT-1 bonds few years ago. Besides, the watchdog has imposed a fine of Rs 1 crore on Vivek Kanwar, who was the Managing Director of Yes Bank, Rs 50 lakh each on Ashish Nasa and Jasjit Singh Banga, who were part of the bank's private wealth management team at the time of violation. READ MORE

BROKERAGE VIEW :: CLSA on TCS

TP: Rs 3,560 (previous: Rs 3,370) | Reco: Outperform

>> Lift FY22/23 EPS estimates by 3%/2% on Q4 margin defense and rupee-dollar reset

>> Valuations are rich and limit upside

>> Cash generation and liberal capital return policy should help maintain outperformance

>> Macro demand strength should maintain its relative outperformance

BROKERAGE VIEW :: Goldman Sachs on TCS

TP: Rs 3,646 | Reco: Buy

>> Key positives from the result was a very strong order book at $9.2 billion

>> Order book is of small deals, implying faster revenue conversion

>> Management sees double-digit revenue growth with current margin band beyond FY22

BROKERAGE VIEW :: Axis Securities on TCS

TP: Rs 3,500 | Reco: Add

>> TCS is witnessing a broad-based demand traction which will drive multi-year double digit growth trajectory with no structural headwind to margin. Expect 12.5% USD revenue CAGR and ~17% EPS CAGR over FY21-23. We increase EPS estimates by 1-2%. Maintain ADD with revised TP of Rs 3,500 (Rs 3,400 earlier), implying 28x FY23E EPS. Stock trades at 28/ 26x FY22/ 23E EPS.

BROKERAGE VIEW :: Kotak Securities on TCS

CMP: Rs 3,247 | TP: Rs 3,250 | Reco: Reduce

>> TCS delivered robust sequential and yoy growth of 4.2% and 5.9%. Revenue growth was led by a ramp-up of captive carve-out deals and continued spends by clients on digital programs. Deal TCV is strong and lays the ground for strong FY2022E revenue growth (KIE estimate of 15% in c/c). TCS is well prepared to manage the war for talent. We increase estimates by 2-3% on changes in INR/USD assumptions and marginal revision to operational estimates. REDUCE stays on full valuations. Fair value increases to Rs3,250 on roll over and EPS revision.

BROKERAGE VIEW :: Edelweiss Securities on TCS

CMP: Rs 3,247 | TP: Rs 4,176 | Reco: Buy

>> TCS delivered yet another robust performance--Q4FY21 revenue grew 5.0% QoQ (in USD) and 4.2% (in cc), slightly above Street’s expectation of 4.8% and 4.1%, respectively. Margin at 26.8% was higher than Street’s 26.6% estimate. Revenue growth and margin were slightly below our estimates, which were highest on the Street. The company has also declared a dividend of INR15/share.

>> Q4FY21 order book was at USD9.2bn--highest ever. LTM IT services attrition level was at the lowest ever of 7.2%. It added 19,388 employees during the quarter--highest ever. We continue to remain confident of strong growth trajectory for the next few years. 

>> Outlook: TCS delivered a strong set of numbers for third quarter in a row, highlighting our thesis of multi-year technology upcycle. Demand for core transformation continues to remain strong and coupled with exemplary execution is likely to drive strong earnings. We maintain ‘BUY/SO’ with an unchanged TP of INR4,176 (40x Q2FY23E).

Bulk deals on the NSE as on Monday

Bulk deals on the BSE as on Monday

FII sell shares worth Rs 1,750 cr on Monday


Rupee check

Source: Bloomberg


Oil edges higher on Mideast tension, likely crude stocks drawdown

>> Oil prices edged higher on Tuesday on tensions in the Middle East after the Yemen-based Houthi movement said it fired missiles on Saudi oil sites and on an expected drawdown in crude oil inventory in the United States.

>> Brent crude oil futures was up 9 cents, or 0.1%, at $63.37 a barrel while US crude oil futures gained 11 cents, or 0.2%, to $59.81 a barrel.

(Source: Reuters)

Flat-to-positive start on cards?

>> At 8:25 am, SGX Nifty index was ruling 22 points higher at 14,381 level

Asian markets' trend

In Asia, Japan's Nikkei and Hong Kong's Hang Seng traded over 1 per cent up in Tuesday's early deals, while South Korea's Kospi gained 0.76 per cent.

Wall Street check

The Wall Street indices ended lower on Monday, with investors waiting for cues from the upcoming corporate earnings season and a key inflation report later this week. Overall, the Dow Jones fell 0.16 per cent, the S&P 500 lost 0.02 per cent, and the Nasdaq Composite dropped 0.36 per cent.

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