Podcast | Sensex & Nifty gain 5% each in April series; Nifty rollover at 65%

The S&P BSE Sensex rallied over 200 points while Nifty50 managed to close above its crucial resistance level of 10600 on Thursday. But, if we look at April series, both Sensex and Nifty jumped 5 percent each.

The Nifty rollover for May series stood at 65 percent which was almost similar to the 3-month average of 65.33 percent, according to preliminary data. BankNifty rollover stood at 80 percent which was higher than March rollover of 75 percent.

Late bounce helped market to end April series on a high. Banks outperformed with Niftybank gaining 196 points to close above 25,000. The rally in the banking pack was led by Yes Bank which contributed 135 points to Nifty Bank gains after strong Q4 earnings. IT stocks continue to trade with gains as rupee remains under pressure against the dollar.

The finally tally on D-St: Sensex rose 212 points or 0.62 percent to close at 34,713. It rose to an intraday high of 34,747.97, and an intraday low of 34,505.62.

The Nifty50 closed 0.45 percent higher or 47.25 points at 10,617.80. It rose to an intraday high of 10,628.40, and a low of 10,559.65.

Sectorally, the S&P BSE FMCG index rose 1.2 percent, followed by the S&P BSE IT index which was up 1.1 percent, and the S&P BSE Banking index gained 0.8 percent on Thursday.

On the other hand, the S&P BSE Telecom index dropped by 2.5 percent, followed by the S&P BSE Realty index which slipped 0.7 percent, and the S&P BSE Capital Goods index which was down 0.5 percent.

The S&P BSE Midcap index slipped marginally to 0.2 percent while the S&P BSE Smallcap index rose 0.25 percent.

Sensex gainers include names like Yes Bank (up 8.2%), HUL (up 2%), TCS (up 2.09%), IndusInd Bank (up 1.6%), and Kotak Bank (up 1.4 %).

Sensex losers include names like Dr Reddy’s (down 2.09%), Wipro (down 2%), SBI (down 1.7%), Tata Steel (down 1.2%), and L&T (down 1%).

Stocks in news:

Yes Bank: Private sector lender Yes Bank’s net profit for the March quarter rose 29 percent year-on-year to Rs 1,179.44 crore beating estimates, because of a healthy net interest income growth and stable asset quality. The stock closed 8.2% higher.

Wipro: Shares of Wipro trimmed losses to 2 percent from nearly 5 per cent fall seen in afternoon trade. Wipro on Wednesday posted over 20 per cent decline in consolidated profit to Rs 1,800.8 crore for the March quarter, 2017-18. Most brokerage firms reduced their target price post Q4 results.

CLSA has maintained sell rating on Wipro with target of Rs 260 from previous target of Rs 275. It cut FY19-20 revenue estimates by 4% and margin by 80-110 bps. The broking firm don't see recovery to peer growth rates in foreseeable future.

HIL: HIL share price gained 4.6 per cent after its Q4 net profit jumped sharply to Rs 20.2 crore from Rs 6.5 crore and revenue grew by 22.3 percent to Rs 335.2 crore from Rs 274 crore YoY.

Uniply Industries Ltd: Uniply Industries share price rallied 3 percent after Malabar India Fund raises stake in the company to 8.49 percent on Wednesday.

IDFC: Shares of IDFC rose 5.8 per cent on a media report that the company is in talks to sell its mutual fund and broking units in a deal that could be worth up to Rs 6,000 crore.

Shah Alloys: The share price of Shah Alloys has locked at 5 percent upper circuit as company signed settlement pact with ARCIL.

In other News/Global update:

In what could be an indication that lending interest rates could soon be on upward cycle, HDFC Bank has increased interest rates on term deposits by up to 100 basis points. The bank has also hiked interest rates on fixed deposits (FDs) under Rs 1 crore. The new rates are effective from April 24, according to the bank’s website.

Among global markets, shares were trading higher in Europe as investors looked to digest corporate earnings trends. The Stoxx 600 was up around 0.3 percent during mid-morning deals.