Sensex Zooms 550 Points, Nifty Reclaims 15,000 Mark; Tata Steel & IndusInd Bank Among Top Gainers

Thu, 29 Apr 09:30 am | Yash Vora, TM Team

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Asian share markets rose in early trade today 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 US$ 1.8 trillion stimulus package.

The Hang Seng is trading up by 0.9% while the Shanghai Composite is up 0.2%. Markets in Japan are closed for a holiday.

Fed Chair Jerome Powell said on Wednesday that "it is not time yet" to begin discussing any change in policy after the US central bank left interest rates and its bond-buying programme unchanged, despite taking a more optimistic view of the country's economic recovery.

Powell's comments came before Biden's unveiling of a sweeping package for families and education in his first speech to Congress.

In US stock markets, Wall Street indices declined as the Federal Reserve signaled a continuation of accommodative monetary policies.

The Dow Jones Industrial Average finished down 0.5% while the tech-heavy Nasdaq Composite lost 0.3%.

Back home, Indian share markets have opened on a strong note, following the trend on SGX Nifty.

Hindustan Unilever, Titan, Bajaj Auto, Ambuja Cements, Motherson Sumi, Bajaj Holdings, Shriram Transport and Laurus Labs are among companies scheduled to announce their quarterly results today.

The BSE Sensex is trading up by 565 points. Meanwhile, the NSE Nifty is trading higher by 166 points.

IndusInd Bank is among the top gainers today. Nestle, on the other hand, is among the top losers today.

The BSE Mid Cap index and the BSE Small Cap index have opened up by 0.9% and 1%, respectively.

All sectoral indices are trading in green with stocks in the metal sector and banking sector witnessing most of the buying interest.

Shares of Galaxy Surfactants and KPIT Technologies hit their 52-week highs today.

The rupee is trading at 74.18 against the US$.

Gold prices are trading up by 0.4% at Rs 47,266 per 10 grams. Gold rose today bolstered by the US Federal Reserve's pledge to maintain easy monetary policy to aid economic recovery.

Meanwhile, silver prices are trading up by 1.1% at Rs 68,520 per kg.

Speaking of stock markets, in his latest video for Brijesh Bhatia talks about the never-ending debate between PSU banks and private banks.

In this debate between PSU and private banks, which ones should you buy? Brijesh answers this question in the video below.

Brijesh also explains why PSU banks have a long way to go. Tune in to the video to find out more:

In news from the capital goods sector, Carborundum Universal is among the top buzzing stocks today.

Carborundum Universal's net profit declined 2% to Rs 905.3 million in the quarter ended March 2021 as against Rs 923.3 million during the previous quarter ended March 2020.

The company's sales rose 28% to Rs 7,502.6 million in the quarter under review as against Rs 5,860.2 million during the previous quarter ended March 2020.

On a standalone basis, net profit declined by 8% to Rs 580 million from Rs 620 million in the year-earlier period.

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Income from operations jumped by more than 41% to Rs 5,030 million, driven by steady performance across business segments, the Murugappa group firm said in a filing.

During FY21, the company incurred a capital expenditure of Rs 1,030 million.

For the full year, net profit rose 4.4% while sales rose 1.4%.

On Wednesday, the company's board recommended a final dividend of Rs 1.50 per share.

Carborundum Universal share price has opened the day up by 3.4%.

Speaking of the capital goods sector, here's an interesting data:

Had you instead invested in the BSE Capital Goods index in 2002, you would have made a return of over 3,000% - a whopping 83% CAGR (compound annual growth rate) - over the next six years.

A Cycle of Great Returns

Here's what Aditya Vora, Research Analyst at Equitymaster, wrote about the capital goods sector in one of the editions of Profit Hunter:

• I'm a firm proponent of the economic revival theme in the stock market. I'm bullish on capital goods and infrastructure stocks.
  
  These sectors have emerged stronger from an elongated down cycle. There is also a strong momentum in economic indicators which is in favour of these stocks.
  
  Indicators like rising construction equipment sales, record highway construction run rate, capacity expansion by private players in the cement, metals, and consumer durables gives us confidence of a strong capex cycle ahead.
  
  There may be a near term speed bump to the economic recovery due to the rising covid cases and lockdowns. However, I believe we are at an inflection point with regards to the capex cycle.
  
  The cycle has turned up.

The recent Hidden Treasure recommendation is a fundamentally strong business in the capital goods space that is 'essential' to the infrastructure revival. You can read the report here. (requires subscription)

And if you're not a subscriber, here's where you can sign up.

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Moving on to news from the pharma sector, Biocon has reported a 105% growth in its net profit to Rs 2.5 billion, while revenue grew 26% to Rs 20.4 billion during the March quarter on the back of higher growth in biosimilar business.

In the year-ago period, the Bengaluru-headquartered biopharma company had reported a net profit of Rs 1.2 billion.

The company reported a gain of Rs 1.6 billion arising on the fair valuation of Bicara Therapeutics Inc. due to loss of control from Subsidiary to Associate and is reported under "Other income" for the quarter.

While Biocon's biosimilars business saw 53% growth in revenue to Rs 6.6 billion, its research services grew 8% to Rs 6.6 billion. The company's generics business grew 3% to Rs 5.8 billion.

For the fiscal year 2020-21, Biocon reported a 1% decline in net profit to Rs 7.4 billion while revenue grew 14% to Rs 73.6 billion.

Biocon share price has opened the day up by 2.7%.

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