Market At Close | Here are the highlights of today’s market session
– Last-hour Fall Leads To A Near Day’s Low Close For Market
– Financials & Metals Under Pressure; Nifty Bank Slips Over 1%
– Metal Shrs Decline Following A Fall In Global Commodity Prices
– Nifty Slips 124 Points To 14,906 & Sensex 338 Points To 4949,564
– Nifty Bank Falls 351 Pts To 33,335 & Midcap Index 21 Pts To 25,212
– 37 Nifty Stocks End Lower; Tata Steel, Hindalco, Coal India Top Losers
– M&M, Cipla, BPCL, IndusInd, Titan Gain In A Weak Trading Session
– Britannia Slips 3% On Concerns w.r.t Related Party Transactions
– IOC Falls Over 2% Despite Reporting A Strong Set of Earnings For Q4
– Tata Motors Declines For 2nd Straight Day On A Cautious Mgmt Commentary
– Taro Pharma’s Weak Q4 Earnings Lead To A Fall of 2% In Sun Pharma
– Indiabulls Housing Surges 9% & Bosch 7% After A Strong Q4
– Just Dial, India Cements, Chola Investments, M&M Fin, PNB Top Midcap Gainers
– Market Breadth Neutral; Advance-Decline Ratio At 1:1
Manish Shah, Founder, www.Niftytriggers.com
Nifty closed the day marginally lower as it declined to fill the gap that caused it to move beyond the resistance at 15,000-15,050. Has declined for the last two days and it is at the “gap area”. The decline that happened today in the last one hour is due to weekly expiry day selling. Next week is going to be expiry week and it will be interesting to watch how the market pans out. Nifty has already broken above the resistance at 15,000-15,050 and obviously, there has been no follow-up to the rising prices. For the rally to continue Nifty needs to break above 15,050 which could mean a rally towards 15,450-15,500. The support zone for Nifty is at 14,750-14,700. If Nifty trades below 14,700 the breakout fails and we will see a grind between 15,050-14,300 for some more time.
Closing Bell | The Indian equity benchmark indices ended Thursday’s volatile session lower dragged by selling in metals and financial stocks. The Sensex slipped 337.78 points, or 0.68 per cent to 49,564.86, while the Nifty closed 124.10 points, or 0.83 percent lower at 14,906.05. Smallcap and midcap turned lower to end in the red.
Among sectors, Nifty Metal fell the most over 3 percent followed by private banks, financial services, FMCG and IT indices. Gains were seen in PSU Bank and realty sectors.On the Nifty50 index, Tata Steel, Hindalco, Coal India, Britannia and ONGC led the losses, while Cipla, M&M, BPCL, IndusInd Bank and Titan Company were the top index gainers.
MF Corner: Here’s how to construct a long-term portfolio
Mutual funds put in a net amount of Rs 5,526 crore in equities in April versus Rs 4,773 crore in March. However, SIP flows are now back at pre-Covid levels with an April inflow at Rs 8,590 crore. From drop-in net asset value (NAV) of Franklin Funds to how to construct a portfolio for the long-term, Anand Dalmia, Co-founder and Chief Business Officer at Fisdom and Gaurav Gupta, Director of G-Cube Investments answer all viewer queries in the special show ‘Mutual Fund Corner’. Watch here.
Unichem Laboratories | The company received ANDA approval for its Amitriptyline HCl Tablets USP, 10 mg, 25 mg, 50 mg, 75 mg, 100 mg and 150 mg from USFDA to market a generic version of ELAVIL (Amitriptyline Hydrochloride) 10 mg, 25 mg, 50 mg, 75 mg, 100 mg and 150 mg of AstraZeneca Pharmaceuticals LP.
Relaxo Footwears Q4FY21 | The company’s net profit jumped 97.2 percent to Rs 102.2 crore from Rs 51.8 crore, while revenue rose 38.3 percent to Rs 747.7 crore from Rs 540.6 crore, YoY. EBITDA increased 69.3 percent to Rs 163 crore from 96.2 crore and EBITDA margin improved by 400 bps to 21.8 percent from 17.8 percent, YoY.
Like cement stocks; won’t buy consumer stocks, says Nepean Capital’s Gautam Trivedi
Gautam Trivedi, Co-Founder and Managing Partner, Nepean Capital like cement stocks. “The area where we think there is incrementally more interest and more potential is cement,” he said in an interview with CNBC-TV18. “I would hold off on consumer stocks because the valuations on consumer stocks aren’t cheap anymore. People would be wary of coming out and immediately spending in fear of the third wave of COVID-19,” he added. According to him, anything that is related to infrastructure and housing will do better than consumer stocks. He sees a lot of FPI money waiting to come into the Indian market. Read here.
Expect NPK fertiliser subsidy to go up, like in DAP, says FACT’s Kishor Rungta
The government has increased the subsidy on di-ammonium phosphate (DAP) fertiliser by 140 percent. Farmers will now get a subsidy of Rs 1,200 per 50-kilogram bag of DAP instead of the Rs 500 earlier. Kishor Rungta, CMD of FACT shared his views. “Because of the increase in government price and with the increase in subsidy, we will be able to maintain the earlier MRP. So this is a good relief,” he said. “We produce other fertilisers, we call it NPK. Right now the government of India has increased the subsidy for DAP, we are expecting the same percentage to be increased for NPK. Right now we don’t have DAP in our portfolio,” he added. Read here.
Moving towards low-cost distribution structure, says Indiabulls Hsg Fin’s Gagan Banga
Mortgage financier Indiabulls Housing Finance on Wednesday reported a two-fold jump in its profit after tax (PAT) to Rs 276 crore in the quarter ended March 2021 helped by stable asset quality. Speaking to CNBC-TV18, Gagan Banga, VC & MD of the company said that it has made a provision of 110 basis points in FY21 and will make more provisions in FY22. “We last year made provisions of about 110 basis points. To our equity stakeholders we have reiterated that we will continue with provisioning as is expected right now of another 100-125 basis points for FY22,” he said. Read here.
Market Watch: Himanshu Gupta, Globe Capital
– Buy Mahindra and Mahindra with a stop loss of Rs 790 and a target of Rs 825.
– Buy Piramal Enterprises Ltd (PEL) with a stop loss of Rs 1,680 and a target of Rs 1,750.
– Buy McDowell with a stop loss of Rs 574 and a target of Rs 600.
HPL Electric Power | The company has bagged orders worth over Rs 372 crore for consumer electrical products.
Steel Strips Wheels | The company confirms export orders of over 97,000 wheels for US trailer & EU caravan market, US Mobile Home and US Truck trailer market. The company will complete their execution by early July 21 from its Chennai & Dappar plants.
Yash Gupta Equity Research Associate, Angel Broking
S&P BSE Metal index has seen some profit booking as the metal index has become 3x in the last 1 year, we have seen a one-sided rally in the metal index from lows of 6145 in May 2020 to highs of 20429 in May 2021. We may see some health corrections of 10%-15% from highs in metal index as well as in stocks. Fundamentals also look stretched on the higher side despite above expectation results from metal companies in this quarter and several companies are focusing on deleveraging their balance sheet by paying off the debt within the next 1 year. We expect this correction in the metal index can be 10%-15% and from there stock will rebound, we suggest investors to be invested in metal stock and expect very good returns in the next couple of years.
HDFC Securities on Brigade Enterprises
Brigade Enterprises reported another record quarter as presales grew to 1.7msf (+57%/+9% YoY/QoQ). Presales value jumped to Rs10.2 billion (+56%/+10% YoY/QoQ). Construction progress led to a record collection of Rs 8.4 billion in residential business (vs INR 5.1bn in 3QFY21). Collection in the commercial portfolio continued to be healthy at 99% in 4QFY21. While retail consumption reached 90% of the pre-COVID level, hospitality GOP margin improved QoQ to 22% from 16%. Despite the mid-term challenges in hospitality and retail business, we maintain ADD with an increased TP of Rs 296 (vs Rs 288 earlier), given the strong momentum in residential business. We have cut our estimates to account for weakness in hospitality, retail/office lease and slower residential construction.
Will maintain 20% guided growth despite COVID challenges, says PI Industries’ Mayank Singhal
PI Industries Q4FY21 profit is up over 60 percent aided by strong exports but margins are under pressure. Detailing the numbers, Mayank Singhal, VC and MD of the company said that the margins were impacted by reduced Merchandise Exports From India Scheme (MEIS) benefits and change in sales mix. “Margin shrinkage has been driven by MEIS and that is about 1.5-1.6 percent. The balance of the margin has been contributed due to a different product mix. Also, on the other hand, we have started some new products. So there is a startup cost that is being built into this margin. But we believe that going into the future, this will be back up,” he said in an interview with CNBC-TV18. He also said that the company has not seen any impact on production and capacity utilization due to the second wave of COVID-19 and expects to maintain the 20 percent guided growth despite COVID challenges. Read here.
CLSA maintains Buy on Mahindra and Mahindra; cuts target
CLSA has maintained a buy rating on the stock but cut the target price to Rs 1,060 from Rs 1,150 per share. The brokerage also cut FY22/23 core EPS by 13%/9%. It expects weak tractor volumes in FY22 and delay in new SUV launches, however, the underlying macro fundamentals are strong for a rebound in H2FY22 & FY23.
Market Watch: Jay Thakkar of Marwadi Shares & Finance
– Buy Ramkrishna Forgings with a stop loss of Rs 610 and a target of Rs 680-720
– Buy Lupin with a stop loss of Rs 1,190 and a target of Rs 1,250-1,270.
Coca Cola United deal margin to be around 26%, says Happiest Minds Technologies
Happiest Minds Technologies has partnered with Coca Cola United to streamline order and invoicing procedures for the freestyle vending machine. Rajiv Shah, President and CEO, Digital Business Services, Happiest Minds discussed this further. “Coca Cola United had introduced a touchscreen freestyle dispenser at customer locations and maintenance of those dispensers was a problem. We approached the problem through the Internet of Things (IoT) as well as digital process automation,” he said. The company has developed four different Bots, which allows Coca Cola United to look at the complex 11-step process without any human intervention and improving predictability. Read here.
IOC Q4FY21: Seeing 15% impact on demand due to 2nd wave of COVID, says management
Indian Oil Corporation (IOC), India’s biggest oil firm, on Wednesday, reported a net profit of Rs 8,781.30 crore for the January-March quarter, helped by higher refining margins. Detailing the numbers, Shrikant Madhav Vaidya, Chairman of the company said that there has been a 15 percent impact on demand due to the second wave of COVID. However, he clarified that the impact is not as much as it was last year. “Last year there was a nationwide lockdown due to which the refinery runs had come to nearly 47-49 percent in the month of April. This year because different geographies have different type of lockdown the refinery runs in April were at about 96 percent and in the month of May it is 84 percent. So 15 percent is the demand destruction that we are seeing at this point of time,” he said in an interview to CNBC-TV18. Read here.
Shakti Pumps surges 16% on robust Q4 earnings
Shakti Pumps share price surged 16 percent intraday after the company declared its Q4 results. The company reported quarterly net profit at Rs. 23.25 crore in March 2021 up 462.91 percent from Rs. 6.41 crore in March 2020. Its net sales came in at Rs 308.24 crore in March 2021 up 280.19 percent from Rs. 81.08 crore in March 2020. The company’s EBITDA stands at Rs. 41.91 crore in March 2021 up 1596.79 percent from Rs. 2.80 crore in March 2020.
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