Super Six: Sensex, Nifty Post Sixth Straight Weekly Advance
Closing Bell: Sixth Weekly Advance
Indian equity markets staged a sharp recovery from the day's low, led by index heavyweight Reliance Industries to end little changed, thereby posting its sixth straight weekly advance.
The S&P BSE Index ended nearly unchanged at 38,128 - 380 points off the day's low of 37,748. The NSE Nifty 50 index ended 0.15% lower at 11,198, over 100 points off the day's low of 11,090.
Buzzing Stock: Deepak Nitrite
- Trading at an all-time high
- Gains as much as 8.1% to Rs 596
- Biggest single-day gain in three months
- Up for the fourth straight day
- Longest winning streak in over five months
- Has gained 14% in the last four trading sessions
- Today's volumes are nearly quadruple its 20-day average
- Stock has entered overbought territory with Relative Strength Index (RSI) at 71
- Has more than doubled from its 52-week low of Rs 257 on August 23, 2019
- All six analysts tracking the stock have a buy recommendation
- Return potential of the stock as per Bloomberg data is 4.2%
Earnings Reaction: Asian Paints Q1FY21
- Revenue down 43% to Rs 2,922 crore
- Net profit down 67% to Rs 218.4 crore
- Ebitda down 58% to Rs 484.2 crore
- Ebitda margin at 16.6% from 22.7%
- Paints segment revenue down 43% to Rs 2,870.6 crore
- Home Improvement down 52% to Rs 52 crore
- Healthy double-digit volume growth in June
- International business did well supported by favourable operating conditions in the middle east and Africa
- Key markets like Nepal and Bangladesh were impacted by pandemic related lockdowns.
- Profitability across business supported by softer raw material prices and various cost control measures
Shares are off the day's low, currently trading 1% lower at Rs 1,712.5.
Stock Reaction: CSB Bank
The Fairfax-backed private lender has informed the exchanges that SBI Funds Management has secured approval from the Reserve Bank of India, to acquire 10% stake in the bank.
The fund house currently holds 4.734% stake in the paid-up capital of the lender, as per the bank's exchange filing.
SBI Funds Management will acquire 10% stake through various schemes of SBI Mutual Fund.
Shares gained as much as 7.5% to Rs 198.6, post the announcement.
Reliance Industries: Active Stock Options
- 2,200 Call: Premium up 267% to Rs 40.9. The contract has added 15.9 lakh shares in Open Interest.
- 2,100 Call: Premium up 150% to Rs 84.4. The contract has shed 8.7 lakh shares in Open Interest.
- 2,000 Put: Premium down 52% to Rs 12.1. The contract has added 8 lakh shares in Open Interest.