After three days of stellar gains, benchmark indices on Thursday ended flat in a volatile session amid F&O expiry. Sensex gave up 50,000 mark, hit at open, and Nifty slipped below the 15,000 level. Sensex hit a high of 50,375, and a low of 49,535.98 intraday.
Sensex, Nifty end flat amid volatility
After a three-day rally, benchmark indices ended flat in a volatile session amid F&O expiry. Sensex came off the day’s high of 50,375, and ended at 49,766, with meagre gains of 32 points. Nifty ended at 14,895, up 0.2%.
On the sectoral front, metals and pharma led the rally, while auto, IT, and FMCG ended in the red.
Indian markets had opened on a positive note on global cues Sentiment was, however, positive in global markets as US President Joe Biden laid out a $1.8 trillion social-support plan and after the US Federal Reserve said it was too early to consider rolling back emergency support for the economy.
Bajaj Auto March-quarter profit up marginally at ₹13.32 billion rupees
Bajaj Auto March-quarter profit rose to ₹13.32 billion rupees vs ₹13.10 billion a year ago. Total revenue from operations rose to ₹85.96 billion from ₹68.16 billion. The board has recommend a dividend of ₹140 per share.
Rahul Bajaj has resigned as non-executive chairman of the company, while Niraj Bajaj has been appointed chairman with effect from 1 May.
Government relaxes customs procedure for oxygen-related medical devices
The government has allowed faster customs clearance for oxygen related medical devices necessary for critical covid-19 patients for a period of three months to meet the rising demand due to the escalating second wave of the coronavirus pandemic.
Earlier there was a legal requirement to do labelling before the goods are cleared by the customs authority at the port of entry. Now for speedy clearance of these goods, the labelling has been allowed to be done post customs clearance but before retail sale. (Full report)
Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers on market performance.
“Indian markets opened on a positive note following upbeat Asian market and positive overnight global cues as the U.S. Federal Reserve decided to leave short-term interest rates anchored near zero as it buys at least $120 billion of bonds each month. During the afternoon session, benchmarks managed to keep their head above water on back of buying in metals, pharma and chemicals stocks. Some solace came in as government allowed import of 17 medical devices for three months with mandatory declarations immediately after custom clearance and before sale of such products in the domestic market. To meet rising demand in the ongoing pandemic, the government has allowed import of medical devices like nebulizer, oxygen concentrators, oxygen cannister, oxygen cylinders, oxygen generators and ventilators. On sectoral front, metals, pharma, chemicals and financials stock led the rally while auto, IT, FMCG traded in red.”
Inox Leisure reports ₹93.69 crore loss in Q4
The multiplex chain operator on Thursday reported a consolidated loss of ₹93.69 crore for the fourth quarter ended March 2021, as the COVID-19 pandemic impacted the film exhibition business.
Tata’s acquisition of BigBasket gets CCI nod
The Competition Commission of India (CCI) has approved acquisition by Tata Digital Limited of up to 64.3% of the total share capital of Supermarket Grocery Supplies Private Ltd (SGS) and its sole control over Innovative Retail Concepts (IRC), the company that runs BigBasket.
Midcaps in the red; volatility index up 3%
BioNTech expects vaccine trial results for babies by September: Reuters
Asian, Europe markets rally
Asian and European markets rallied Thursday as traders welcomed blockbuster earnings from Wall Street titans and after the Federal Reserve painted a rosy picture of the US economic outlook, repeating a pledge to stick to its guns with an ultra-low monetary policy. The pan-European STOXX 600 index rose 0.5%.
Hong Kong’s Hang Seng Index closed up 0.8%., while Shanghai’s Composite rose 0.5%. Japan’s Nikkei 225 was closed for a holiday.
Bajaj Auto flat ahead of Q4 earnings
The two-wheeler major will announce its March quarter earnings on Thursday. The company had reported a 23% rise in standalone net profit at ₹1,556 crore for the quarter ended December.
Bombay HC refuses to hear PIL seeking uniform rate of COVID-19 vaccines: PTI
HCL Tech to laggard; down 1.5%
BSE Auto Index down 0.8%
HUL March quarter profit jumps 41% to ₹2,143 crore, announces dividend of ₹17 per share
Biocon Q4 net profit surges 86% to ₹296 crore
Remdesivir injection production to be increased to 3 lakh vials per day: ANI
Bajaj Finserv up 5%; top Sensex gainer at this hour
Jio’s Q4 revenue, Arpu may fall; subscriber addition seen picking up
Reliance Jio Infocomm Ltd is expected to report a sequential decline in revenue for the March quarter, with key metric such as average revenue per user (Arpu) likely to fall as much as ₹12-14, as operators scrapped interconnect usage charge (IUC), which contributes 7-8% in revenues across the industry, from 1 January.
The Mukesh Ambani-led telecom operator had clocked an Arpu of ₹151 during October-December, up from ₹145 a quarter ago.
“Arpu should see about 8% quarter-on-quarter moderation as IUC fell to zero from January 2021 (from six paise per minute) for all operators, impacting Jio’s Arpu by ₹12-14, and because of lower number of days during the quarter. This, however, will be partly offset by an uptick due to customer upgrades to high-value recharges,” Morgan Stanley said in a report. (Full report)
Sterlite Tech Q4 net profit up 43% QoQ at ₹124 crore
Metals outshine; JSW Steel, Tata Steel lead pack
Goldman Sachs pledges additional $10 million to support India’s covid situation
Goldman Sachs on Thursday said it will commit an additional $10 million towards supporting relief and recovery efforts amid continued surge in covid infection cases and deaths in India.
The additional funding for India will focus on support for front line health facilities that are leading the fight against covid-19 in cities such as Bengaluru, Hyderabad, Mumbai and New Delhi, including ongoing vaccination efforts.
Oil prices extend gains, bullish demand outlook outweighs India concerns
Oil prices extended gains on Thursday after rising 1% the previous session, as bullish forecasts on recovering demand this summer outweighed concerns about the impact of rising covid-19 cases in India, Japan and Brazil.
Brent crude for June rose 42 cents, or 0.6%, to $67.69 a barrel by 0622 GMT, while U.S. West Texas Intermediate crude for June was at $64.22 a barrel, up 36 cents, or 0.6%.
Midcaps in red
Sensex flat amid volaitlity
Biocon up 2.4%; reports 105% growth in Q4 net profit
Pricey valuations, near-term demand concerns lower spirits of the United Breweries’ stock
Shares of United Breweries Ltd are about 10% away from its pre-covid highs seen in February 2020. What’s more, valuations are not cheap. At Wednesday’s closing price of Rs1206.65 apiece, the stock trades at 58 times estimated earnings for financial year 2022, based on Bloomberg data.
Additionally, the second covid-19 wave is likely to weigh on demand in the foreseeable future. Dolat Capital Market Pvt. Ltd said in a report on 28 April, “Barley price inflation (about 15% year-on-year) and second wave of covid-19 in key beer season are near-term dampener.” The brokerage has reduced its financial year 2022 estimates to factor the impact of covid in the half year ending September (H1FY22).
CPPIB, Capital Group among top anchor investors in PowerGrid InvIT
Canada’s largest pension fund Canada Pension Plan Investment Board, US based Capital Group and domestic institutional investors SBI Mutual Fund and HDFC Mutual Fund are the top anchor investors in PowerGrid Infrastructure Investment Trust public issue.
PowerGrid Invit has raised nearly ₹3480 crore from anchor investors ahead of its public issue, which opened on Thursday. It has decided to allot 348.07 million shares at ₹100 a share to 47 institutional investors.
Among the anchor investors are SBI Mutual Fund (MF), HDFC MF, Tata MF, Fidelity Funds, Tata AIA Life Insurance Company, Tata AIG General Insurance Company, SBI Life Insurance Company, UTI MF, ICICI Prudential MF, Sundaram MF, Rainbow Investments Ltd and CPP Investment Board Private Holdings.
BSE MidCap down
Tata Communications stock slips on muted Q4 earnings
Shares of telecom services provider Tata Communications Ltd fell more than 2% in Thursday’s opening trade on the NSE reacting to its muted March quarter earnings. Operating margins and revenue growth both missed expectations.
Revenue at Rs470 crore, was down 3.5% sequentially and below analysts estimates impacted by decline in voice business and data business. The former was down 17% quarter-on-quarter and the latter fell by a percent sequentially. Analysts attribute the decline in data revenue to longer deal conversion and execution cycle due to Covid19 and the moderation of UCC traffic. According to analysts at Motilal Oswal Financial Services Ltd, the decline in EBITDA margins of the data segment, which forms a chunk of the overall EBITDA, can be attributed to a fall in revenue, coupled with higher marketing expenses and one-time catch up costs. (Full report)
RattanIndia Enterprises hits 5% upper circuit
The company has acquired a substantial stake in EV two-wheeler maker Revolt Intellicorp for ₹150 crore to foray into the fast-expanding electric vehicle business. It will have a 50% board presence in the Gurugram-headquartered Revolt Intellicorp Pvt Ltd with Rajiv Rattan heading the company’s board as its chairman.
Covid update: India reports nearly 3.8 lakh new cases
As many as 3,79,257 more people tested positive for Covid-19 in the last 24 hours, taking the cumulative caseload to 1,83,76,524, said the Union health ministry on Thursday morning.
This is the biggest spike in new cases the country has see as it continues to reel under an alarming second wave.
Maharashtra continues to be the biggest contributor to the daily tally as the state saw 66,358 new cases on Wednesday. It was followed by Kerala with 35,013 cases while Uttar Pradesh reported 29,824 new infections.
The country has been seeing a huge spike in daily fatalities too with 3,645 more people succumbing to the disease in the last 24 hours. The cumulative death toll in India now stands at 2,04,832.
Sensex slips below 50000
The Indian Rupee surged 16 paise to 74.20 against the US dollar in early trade on Thursday.
ONGC up 1%
The state-owned oil and gas producer said it is seeking foreign partners for yet-to-be-developed fields in lesser prospective areas but is shackled by uneconomic gas prices and tax structure. It has also said any “potential” restructuring of the company would not significantly affect
Nifty slips below 15000 mark; as banks turn red
Domestic gold prices rise
Gold prices today edged higher in Indian markets after a five-day decline. Gold futures on MCX were up 0.4% to ₹47,265 per 10 gram while silver futures rose 1.1% to ₹68534 per kg.
India Inc wary of second covid wave’s impact on business
India Inc fears the second wave of the covid pandemic could set back the gains made by the Indian economy in the last two quarters following the ending of the lockdown measures imposed last year.
“As a consumer and businessman, I am worried about what the economy would look like in a few years going forward, considering that the impact of first wave one was already in a negative way. But we will get to know by the end of May, because right now we are in a rising tide of what we have to handle,” said Vijay Shekhar Sharma, founder and CEO of Paytm, speaking at the Mint India Investment Summit 2021, which kicked off on Wednesday. (Full report)
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets are performing just as expected. Beyond the level of 14700, it is now headed to 15000-15100 which should be the first pit stop. If we can sustain there, the next level should be the previous high of 15300-15350. A strong support for the Nifty is 14300 now and any downward correction can be utilized to enter the index for higher targets.
Sensex Contributors: Reliance, Bajaj Finance
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services on markets
“The favorable global market scenario is playing an important role in this vaccine-powered hope trade. The FOMC meet, as expected, has kept rates and the bond-buying program unchanged, reiterating the accommodative stance. Sustained bond-buying has the risk of higher ‘ asset price inflation and froth in the market… Even while enjoying the bull run investors have to be guarded against potential froth and bubbles. The localised lockdowns & curfews have not impacted industrial activity much but there is a downside risk to GDP growth & earnings estimates. The pain in segments like aviation, hotels, restaurants and retail trade will linger for some time. Financials have emerged stronger after the initial good Q4 results.”
Nifty Bank up 1.5% led by Indusind Bank, Axis Bank
Nifty above 15,000 for the first time since 16 March
Sensex reclaims 50,000 after 12 trading sessions
Sensex, Nifty zoom at open
Sensex soared 500 points to cross the 50,000 mark and Nifty gained 1% to top the 15,000 mark tracking global cues. Bajaj Auto, HUL and Titan are in focus as they will report their quarterly earnings today.
Sensex hits 50,000 at pre-open
Consumers rein in spending amid covid
The virulent second covid-19 wave that is wreaking havoc in India is prompting consumers to cut back on discretionary spending, prioritize their health, shop online, and buy only essential goods, a trend that could take months to normalize, according to companies.
Consumers in India have once again turned to “cautious consumption”, Deloitte said on Wednesday after it released findings of a 30-day global consumer survey. Indians accounted for the most number of people who reported feeling anxious during the second wave, among 18 countries surveyed by Deloitte.
Retail borrowers make the most of recast plan
Retail loans restructured under a central bank scheme announced last year were more than thrice the corresponding figures for corporate loans, initial numbers released by top private sector lenders showed.
HDFC Bank Ltd, ICICI Bank Ltd and Axis Bank Ltd collectively implemented retail debt recasts of ₹6,603 crore and just ₹2,109 crore of corporate loans under the scheme. On a standalone basis, only ICICI Bank implemented more corporate recasts than retail. However, HDFC Bank’s ₹5,456 crore retail loan recast tipped the scales. Axis Bank restructured ₹504 crore of retail loans and ₹341 crore of corporate loans. (Read more)
Biden celebrates an America ‘on the move again’
US President Joe Biden on Wednesday delivered a speech to a joint session of Congress that he used to promote a $1.8 trillion plan he said is needed to compete with China. He said the notion of “we the people” is actually “the government, you and I.”
As Biden wrapped up his prime-time speech, he also spoke of the mob that on January 6 overran the Capitol building where he gave his address Wednesday night.
He said the United States is “on the move again”, calling for trillions of dollars to rebuild the post-Covid US middle class and give new life to “forgotten” workers.
Markets seen firm on global cues
Indian equity markets are likely to rise on Thursday following global cues. Trends in SGX Nifty indicate a firm opening for domestic benchmark indices. On Wednesday, the BSE Sensex ended at 49,733.84, up 789.70 points or 1.61%. The Nifty closed at 14,864.55, up 211.50 points or 1.44%.
Oil prices extended gains on Thursday after rising 1% in the previous session as bullish forecasts for a demand recovery this summer offset concerns of rising covid-19 cases in India, Japan and Brazil.
Brent crude for June rose 0.37%, to $67.52 a barrel while U.S. West Texas Intermediate crude for June was at $64.12 a barrel, up 0.41%.
Stocks to Watch: Reliance, ONGC, Bajaj Auto, Titan, HUL
RIL, ONGC, Tata Communications and Indiamart are some of the companies that will be in focus on Thursday. Nifty companies that will report March quarter earnings today are Bajaj Auto, Hindustan Unilever, and Titan. Other major companies that will announce results are Ambuja Cements, Zensar Technologies, AU Small Finance Bank, and Inox Leisure
Asia markets gain
Asian shares rose in early trade on Thursday after the US Federal Reserve said it was too early to consider rolling back emergency support for the economy, and as US President Joe Biden unveiled plans for a $1.8 trillion stimulus package.
Japan markets were closed on account of a holiday.
Australia’s S&P/ASX 200 Index gained 0.3%
South Korea’s Kospi Index rose 0.4%
Hong Kong’s Hang Seng Index climbed 0.9%
Shanghai Composite Index edged up 0.2%
Fed strengthens view of economy while keeping rates near zero
US Federal Reserve officials strengthened their assessment of the economy on Wednesday and signaled that risks have diminished while leaving their policy interest rate near zero and maintaining a $120 billion monthly pace of asset purchases.
Wall Street ends lower on Wednesday
Wall Street ended lower on Wednesday after the US Federal Reserve held interest rates and its monthly bond-buying program steady and gave no sign it was ready to reduce its support for the recovery.
The Dow Jones Industrial Average fell 0.48% to end at 33,820.38 points, while the S&P 500 lost 0.08% to 4,183.18. The Nasdaq Composite dropped 0.28%, to 14,051.03.