Financials lift Sensex 508 pts up; pharma stocks, HCL Tech miss D-St rally

Stock market updates: A healthy management commentary by ICICI Bank, post its March quarter results announcement, fuelled rally across the financial sector at the bourses on Monday. Add to it, a positive investment sentiment in the global markets helped the benchmark S&P BSE Sensex and the Nifty50 indices vault over 1 per cent.

That apart, medical support from across the globe, to help India douse the Covid-19 fire, along with acceleration of the mass vaccination drive supported sentiment on Dalal Street.

Among the key headline indices, the 30-share index jumped 508 points to end the day at 48,386.5 levels. The index had started gap-up and had extended gains to hit a high of 48,668 in the intra-day deals.

Only seven of the index constituents ended the day in the red with HCL Tech (down 2.7 per cent) being at the forefront. Following a miss on Q4 result, most brokerages slashed their earnings expectations from HCL Tech, resulting in a dip in the stock. However, they remain bullish on the counter on account of inexpensive valuations and the probability of strong growth in FY22. READ MORE

On the upside, Axis Bank (up 4 per cent), ICICI Bank, Ultratech Cement, State Bank of India, and HUL ended the session as the top gainers. 

On the NSE, the broader Nifty50 index settled below the 14,500-mark at 14,485 levels, up 143.6 points. Earlier today, the index had hit a high of 14,557 levels. 

The broader markets, that were earlier performing in-line with benchmarks, evenutally underperformed at the bourses. The S&P BSE MidCap index closed 0.6 per cent higher while the BSE SmallCap index was up 0.8 per cent. 

Sectorally, investors booked profit in the pharma counters after a healthy rally over the past week. The index settled 0.87 per cent down and was dragged down by losses in Cipla, Aurobindo Pharma, Lupin, Torrent Pharma, and Biocon, down between 0.5 per cent and 3 per cent.

On the contrary, the Nifty Realty index gained 3.4 per cent on the NSE, followed by gains in The Nifty Metal index (up 2 per cent), Nifty Bank (up 1.7 per cent), and Nifty Financial Services (up 1.3 per cent).

Global markets
European stocks clawed their way higher on Monday as world markets began the week in a relatively upbeat mood following further signs last week that economies are recovering rapidly. The broader Euro STOXX 600 gained 0.23 per cent while Germany’s DAX rose 0.22 per cent. Britain’s FTSE 100 climbed 0.21 per cent. 

Asian shares also rallied where MSCI’s broadest index of Asia-Pacific shares outside Japan reached its highest since March 18. The MSCI world equity index, which tracks shares in 49 countries, rose 0.2 per cent.


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

Indian equity benchmark indices climbed on April 26 in line with other global peers. The Nifty opened up and made an intra day high at 1005 Hrs. It later fell making lower top lower bottom; but even then it ended 1% or 144 points higher (its biggest advance in almost two weeks) at 14485.
 
Nifty crossed 14526 but closed below it. Falling volumes on an up-day denotes caution while a healthy advance decline ratio and relatively better performance of broader indices means that the traders/investors are focused more on the broader markets than the largecaps, where there is a risk of selloff by institutions. In the near term, 14339-14405 band could offer support to the Nifty while a breach of 14526 could take the Nifty up to 14698.  

MARKET CLOSING COMMENT :: Ajit Mishra, VP - Research, Religare Broking

Markets started the week on an optimistic note led by supportive global cues. After a gap-up opening, the benchmark continued its positive momentum led by healthy buying in sectors such as banking(thanks to ICICI results), metals and consumer durables. The broader markets too traded in tandem and ended higher in the range of 0.6-0.9%. Finally, Nifty closed at 14,485 levels, up by 1%. 
 
Upbeat global cues combined with supportive earnings are helping the index to hold at higher levels despite COVID challenges. Also, the recent news of various countries extending help to India in the COVID flight further boosting the sentiment. We remain cautiously optimistic as volatility is likely to remain high on the back of derivative expiry and upcoming earnings announcements. Banking, metal and pharma are showing tremendous resilience and should be preferred for long trades on dips

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

The market manages to hold above the Nifty 50 Index support zone of 14400. The technical factors are aligned to support a range-bound market movement as we advance. Therefore, the short-term traders use the rally to exit while attempting to buy a dip approach. The market breadth to improve, indicating the likelihood of higher volatility in the market. A decisive breakout above 14500 is likely to turn the scenario bullish.

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

With the support of strong global markets, accumulation in the domestic market increased as the rate of infection is slowing down with a flattening path. Buying interest was broad-based led by banking, realty and metal stocks with a hope that we are nearing the peak of infection. Banking stocks outshined other major sectoral indices due to the positive beginning of quarterly results. The market may remain volatile in the coming days as covid cases continue to be high, April F&O expiry and upcoming FOMC meeting

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

Positive global cues coupled with good numbers from ICICI Bank ensured a strong opening on Monday for markets led by BFSI and Metals. However, we did see bouts of profit-taking in Afternoon Trade-in FMCG & Pharma stocks ahead of a big earnings day tomorrow

MARKET CLOSING COMMENT :: Mohit Nigam, Head, PMS & Advisory at Hem Securities

Markets took a breather from the downward movement it witnessed in the past week and moved up by around 1% today. Financials were the key drivers today leading the momentum after a decent result declared by ICICI Bank. We feel that Covid related developments in the next 2 weeks, corporate results & commentary are going to be very crucial to gauge the direction of the markets in the following months. 14200 remains a key support on the downside.

BSE Snapshot :: M-cap of all BSE listed firms climbs above Rs 204-trillion mark


Broader market :: Vimta Labs, BGR Energy, Srei Infra lift SmallCap index


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

>> SAIL, Future Retail, Gidrej properties, and Natco Pharma end as top gainers on the index


ICICI Bank, RIL :: Stocks that lifted the Sensex today


Sectoral trends on the NSE


Sensex Heatmap at Close

Top gainers: Axis Bank, ICICI Bank, Ultratech Cemekt

Top drags: HCL Tech, Sun Pharma, HDFC Bank


CLOSING BELL

Among the key headline indices, the 30-share index jumped 508 points to end the day at 48,386.5 levels. The index had started gap-up and had extended gains to hit a high of 48,668 in the intra-day deals.

On the NSE, the broader Nifty50 index settled below the 14,500-mark at 14,485 levels, up 143.6 points. Earlier today, the index had hit a high of 14,557 levels. 

RIL, BP start Satellite Cluster gas field production ahead of schedule

Mukesh Ambani-led Reliance Industries (RIL) and BP today announced the start of production from the Satellite Cluster gas field in block KG-D6, ahead of schedule.
 
The second of the three deep-water gas developments planned jointly, was expected to start production in mid-2021.
 
RIL and BP have been developing R Cluster, Satellite Cluster and MJ in the KG-D6 block– which together are expected to produce around 30 mmscmd (1 billion cubic feet a day) of natural gas by 2023, meeting up to 15 percent of the country’s gas demand, said RIL in its exchange filing today. READ MORE

Gold gains as rising virus cases, easing dollar boost safe-haven appeal

Gold gained on Monday, as surging COVID-19 cases boosted the metal's safe-haven appeal, aided by a weaker dollar ahead of the U.S. Federal Reserve's meeting this week, while auto-catalyst palladium held below a record peak scaled last week.
 
Spot gold was up 0.1% at $1,778.22 per ounce by 0707 GMT. U.S. gold futures fell 0.1% to $1,775.70 per ounce. READ MORE

India VIX rises over 3% to top 23 level

> VIX is a measure of market volatility

Top gainers and losers on the S&P BSE Sensex at this hour


Maruti Q4 preview: PAT seen up 32% YoY; commodity prices to dent margins

Buoyed by rural demand despite a slowing economy and a gradual uptick in commodity prices, the auto sector is likely to report a healthy growth in sales numbers at the aggregate level during the January – March 2021 (Q4FY21) quarter, say analysts. Operating margins, however, are likely to remain under pressure during the period under review. READ MORE


Nestle confirms discussions to acquire vitamin maker Bountiful

Nestle is in discussions to buy nutritional supplement maker The Bountiful Company, the Swiss food giant said on Monday, confirming earlier reports it was close to a deal in the mid-single digit billions.
 
"Nestle S.A. today announced that it is in discussions to acquire all or part of The Bountiful Company," Nestle said, following reports last week. READ MORE

NEWS ALERT :: Karnataka govt imposes 14-day lockdown starting Tuesday

>> Essential services to stay open from 6 AM to 10 AM. 

>> Construction, manufacturing, agriculture, medical sectors will continue to operate

Sensex Heatmap | Top gainers & losers at this hour


Mphasis surges 6% as Blackstone to buy controlling stake in firm

Shares of Mphasis jumped over 6 per cent in intra-day trade on Monday after private equity (PE) firm Blackstone Group said it will buy a majority stake in the company for a consideration of $2.8 billion. A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), UC Investments and other long-term investors will be co-investing along with Blackstone. READ MORE

Vedanta up 5% as Tamil Nadu govt allows Sterlite plant to produce oxygen

Shares of Anil Agarwal-led Vedanta Ltd jumped 5 per cent to Rs 239 on the BSE in the intra-day deals on Monday amid report that Tamil Nadu chief minister K Palaniswami has allowed the company to operate its Tuticorin plant to produce oxygen amid sharp surge in Covid-19 cases in the country.
 
According to a PTI report, an All-party meeting by Tamil Nadu CM K Palaniswami, convened earlier today, allowed Vedanta's Sterlite Industries in Tuticorin to produce oxygen for four months. READ MORE

TN: Vedanta's Sterlite in Tuticorin allowed to produce oxygen for 4 months

An all-party meeting convened by the Tamil Nadu government on Monday resolved to allow Vedanta's Sterlite Industries in Tuticorin to produce oxygen for a four-month period amid surging covid cases, paving the way for the partial reopening of the copper smelter closed in 2018 over pollution concerns. READ MORE


Power Grid launches PGInvIT, could offer 18 more assets in future

State-owned largest power transmission company Power Grid Corporation of India (PGCIL) launched its Infrastructure Investment Trust (InvIT), becoming the first public sector company to do so. After IndiGrid and IRB InvIT fund, Power Grid InvIT (PGInvIT) will be the third publicly listed InvIT in the country and second in the power transmission sector. READ MORE


Top Sensex contributors at this hour


Axis Bank Q4 preview: Low provisioning likely, but asset quality may worsen

ICICI Securities expects the lender’s loan book to grow 6 per cent on year to Rs 6.04 trillion from Rs 5.71 trillion reported at the end of Q4FY20 as “the bank is not chasing growth and is lending to right people at a right price”. Sequentially, the loan book would expand from Rs 5.82 trillion.
 
The deposits are expected to grow at 8 per cent YoY and 6 per cent QoQ to Rs 6.91 trillion from Rs 6.4 trillion and Rs 6.54 trillion, respectively. READ MORE

5 stocks to make your portfolio Covid-proof

The second wave of Covid-19 has hit the economy and the stock market hard with normalcy taking a backseat yet again. At the bourses, portfolio returns have turned negative, with benchmark indices declining over 4 per cent each over the past one month. However, the current market turmoil can be used as an opportunity to add Covid-related plays to ones portfolio. READ MORE


Britannia Q4 preview: Here's what to look out for in the numbers

Good Day and Tiger Biscuit-maker Britannia Industries is expected to report a strong set of numbers for January-March quarter of FY21 (Q4FY21) as consumer goods’ demand reaches pre-Covid levels. Analysts forecast a high, single-digit growth in sales volume along with up to 25 per cent YoY growth in net profit for the FMCG giant, which is slated to report its Q4 results on Tuesday, April 27. READ MORE


India Inc may have to keep date with filings as Sebi cites partial lockdown

The Securities and Exchange Board of India (Sebi) may not extend the deadline for listed companies to file their earnings reports for the fourth quarter and the full financial year 2021.
 
However, the capital market regulator could relax compliance requirements for brokers and depository participants as India finds itself in the worst phase of the pandemic so far, according to sources. READ MORE

Market Check | Sensex off day's high, still up 500 points


Retail investors may remain fence-sitters amid market uncertainty

A key trigger for the increased retail participation in FY21, analysts say, was the lockdown triggered by Covid-19 that saw investors channelize their savings to capital markets in search of better return on their investments and the need to increase their disposable income. Retail investors, experts say, usually fancy momentum-driven counters where the chances of making good return in a short period of time remain high. READ MORE

UBS bets on emerging markets; India among most preferred destination

Despite the raging Covid pandemic and its impact on the economy, India is one of the ‘most preferred’ equity market for UBS. Besides India, China and Singapore markets also figure as the ‘most preferred’ destinations. At a macro level, however, it remains bullish on emerging markets (EMs) as compared to the developed market (DM) peers, where it feels that the returns will remain in single-digits going ahead. READ MORE


TechM Q4 preview: Analysts see 52-59% YoY rise in PAT, muted revenue rise

Tech Mahindra is likely to post modest revenue growth in the fourth quarter of the financial year 2020-21 (Q4FY21), believe analysts, led by seasonal strength in Comviva, an entity acquired by the firm in 2012, and improving traction in the manufacturing, BFSI (banking, financial services & insurance) and technology segments. The profit after tax (PAT) during the quarter under review is expected to vault between 52-59 per cent year-on-year (YoY), as per analysts. Although, the same is likely to decline on a sequential basis. READ MORE


Natco Pharma rallies 7% as firm seeks nod for Covid medicine Molnupiravir

"Pre-clinical data have shown that Molnupiravir has broad anti-influenza activity, including highly potent inhibition of SARS-CoV-2 replication. Patients treated with Molnupiravir achieved response within 5 days of therapy indicating that the duration of treatment with Molnupiravir is short, with the additional advantage of being an oral therapy," the firm said in an exchange filing. READ MORE

NEWS ALERT | Mindtree and Duck Creek collaborate with UPC Insurance

Mindtree has partnered with Duck Creek to improve customer experience for UPC Insurance customers through the implementation of SaaS-based core systems. This includes policy, billing, claims, data insights, and insurance technology solutions as well as the consolidation of multiple applications on a single integrated platform, made possible with Duck Creek OnDemand, the provider’s SaaS solution for the property and casualty (P&C) insurance industry. 

Srei Infra Finance hits 20% upper circuit on receiving EoI from Cerberus

Shares of Srei Infrastructure Finance (Srei) were locked in 20 per cent upper circuit limit on the BSE in Monday's intra-day session after the company's wholly-owned subsidiary Srei Equipment Finance (SEFL) received an expression of interest (EoI) for equity infusion from global private investment firm Cerberus Global Investments. Srei group, however, did not disclose the committed size of the infusion. READ MORE


NEWS ALERT :: Glenmark Pharma's Ryaltris nasal spray receives approval in Europe

>> Ryaltris, developed by Glenmark, is a novel fixed-dose combination nasal spray of an anti-histamine and a steroid, indicated for treatment of symptoms associated with allergic rhinitis (AR) in patients over 12 years of age. It relieves symptoms of allergic rhinitis, including stuffy nose, runny nose, nasal itching, sneezing, as well as itchy, red and watery eyes.

>> Ryaltris will shortly be available in Austria, Belgium, Czech Republic, Germany, Denmark, Spain, Finland, France, Ireland, Italy, The Netherlands, Norway, Poland, Romania, Slovakia, Sweden, and the UK.


Hathway Cable gains 3% as Reliance Industries launches Rs 442-crore OFS

Shares of Hathway Cable and Datacom advanced 3.4 per cent to Rs 22.4 apiece on the BSE on Monday as promoter group Reliance Industries launched an offer for sale (OFS) to pare stake in the DTH firm. At 10:53 am, the stock was quoting at Rs 22 per share on the BSE, up 2 per cent, as against a 1 per cent gain in the benchmark S&P BSE Sensex. A combined 3.2 million equity shares had changed hands on the counter on the BSE and NSE till the time of writing of this report. READ MORE

Chart check: How to trade HCL Tech and ICICI Bank post their Q4 results?

After dipping below the 100-day moving average (DMA), ICICI has displayed a firm reversal from Rs 530 to Rs 525 levels. This move needs to scale above 50-DMA, which is currently placed at Rs 600 levels in a decisive manner to embark on a new breakout. If that happens, a rally towards the next resistance of Rs 635 cannot be ruled out. READ MORE


Blackstone commits up to $2.8 billion to acquire controlling stake in Mphasis

Blackstone on Monday announced that private equity funds managed by Blackstone have entered into definitive agreements to acquire a majority stake in Bengaluru-headquartered IT services company Mphasis Limited. A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), UC Investments and other long-term investors will co-invest along with Blackstone, a joint statement said.

(Text Source: PTI)



HCL Tech tanks 3% post Q4 nos but brokerages remain bullish; here's why

Shares of HCL Technologies slipped over 3 per cent in Monday's intra-day session after the IT major's March quarter results for the financial year 2020-21 (FY21) missed Street estimates across the board. Following the results, most brokerages slashed their earnings expectations from HCL Tech, resulting in a dip in the stock. However, they remain bullish on the counter on account of inexpensive valuations and the probability of strong growth in FY22. READ MORE


Here is why analysts think ICICI Bank is the new growth leader post Q4 nos

The lender on Saturday reported a net profit of Rs 4,403 crore in the March quarter of FY21, up 260 per cent year-on-year (YoY) from Rs 1,221 crore reported in the same period last year. Its operating profit, meanwhile, grew around 16 per cent YoY driven by an 17 per cent YoY increase in net interest income (NII) at 10,431 crore. The same was Rs 8,927 crore in Q4FY20. Further, the net interest margin (NIM) was 3.84 per cent in Q4FY21 as compared to 3.67 per cent in Q3FY21 and 3.87 per cent in Q4FY20. READ MORE
ICICI Bank

Rupee opening

Rupee opens higher at 74.84 per US dollar vs Friday's close of 75.01/$

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

Covid news is bad but markets are sensible and therefore will discount the positive news like apparent flattening of the curve in states like Maharashtra. Going by the experience of countries that went through the second wave, it is likely that India's second wave will peak soon, but the pain and sufferings in the short run will be highlighted. Since the market is forward looking, its focus will be the medium to long-term trend. Meanwhile, Q4 results continue to be encouraging. ICICI Bank's results are very good on all parameters. This is good news for Bank Nifty. Even though HCL Tech's Q4 numbers are below expectations, their deal wins are impressive and indicative of the strong outlook for the sector. The sustained selling by FIIs in April, so far, is negative but FII selling is now more than compensated by DII buying. Market's resilience during this health crisis is positive and has to be taken seriously.

Second Covid wave singes retail, hotel, financials and realty stocks

The surge in Covid-19 infections has triggered a fall in the market, with the benchmark Nifty declining more than 6 per cent from its peak, recorded on February 15.
 
Companies in the retail, hotel, realty, and financials space have borne the maximum brunt of the latest fall in the equity market as curfews and strict restrictions on movements in various states have led to a slump in business activities. READ MORE

Tech Mahindra marginally up ahead of Q4 results


Buzzing Stock | Srei Infrastructure Finance locked in 20% upper circuit

Srei Equipment Finance, a subsidiary of Srei Infrastructure Finance, has received an expression of interest for equity infusion of an undisclosed amount from global private investment firm Cerberus Global Investments, according to a regulatory filing.

Ramkrishna Forgings gains 3% as firms starts production at Jamshedpur plant

The company has started commercial production of 7000 tonnes press from its Plant-V, situated at Saraikala, Jamshedpur from April 22, increasing the production capacity of the company by 17,000 tonnes per annum.
 

Hathway rises as OFS kicks off for non-retail investors

Promoters Jio Content Distribution Holdings, Jio Internet Distribution Holdings and Jio Cable and Broadband Holdings proposed to sell up to 20.54 crore shares or 11.61 per cent of the total equity of Hathway Cable through an offer for sale (OFS). The OFS opens for non-retail investors today and for retail investors tomorrow.

Earnings Reaction | HCL Tech slips post March quarter numbers


Result Reaction :: ICICI Bank jumps over 4%


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


Sensex Heatmap :: ICICI Bank leads 30-share pack


Opening Bell


Opening Bell


COMMODITY CHECK


Sensex Heatmap | Top gainers & losers in pre-open trade


Nifty50 nears 14,400 in pre-open session


Pre-open Session | Sensex jumps over 200 points


Stocks to watch: Tech Mahindra, ICICI Bank, HCL Tech, Hathway Cable

ICICI Bank: The private sector lender reported a nearly four-fold jump in its March quarter consolidated profit to Rs 4,886 crore as against Rs 1,251 crore in the year-ago period, and spoke of “calibrating” growth in the near term given the second wave of COVID-19 infections.
 
HCL Technologies: The IT company on Friday posted a 6.1 per cent decline in consolidated net profit in March quarter to Rs 2,962 crore but said it is confident of logging double-digit growth in FY22 revenue on the back of a strong deal pipeline. READ MORE


NSE Bulk deals on Friday

BSE Bulk deals on Friday

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


Rupee check

Source: Bloomberg


Oil check

US crude rose 4 cents to $62.18 per barrel in early deals on Monday and Brent was flat at $66.11.

SGX Nifty alert

At 8:14 am, the index was ruling 104 points higher at 14,444

Asian markets check

Stocks in Asia drifted higher as investors look for clues on the economic recovery in a big earnings week and a Federal Reserve meeting. Japan's Topix index was flat, South Korea's Kospi index rose 0.5% and Shanghai Composite Index added 0.3%. U.S. futures were little changed after most major groups in the S&P 500 advanced Friday.

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