Stock Market Highlights: Sensex ends flat, Nifty holds above 15,200; IT, metals shine; banks drag

Market At Close | Here are the highlights from today’s market session

– Financials Keep Market Under Pressure; Nifty Bank Down 1%

– Sensex & Nifty & Midcap Index Close Flat

– Nifty Gains 11 Points To 15,208 & Sensex 26 Points To 50,678

– Midcap Index Slips 40 Pts To 25,544 & Nifty Bank 282 Pts To 34,662

– HDFC Bank Drags Nifty By 32 Points & Nifty Bank By 253 Points

– Metal Stocks Rebound In Today’s Trade; JSW Steel Rises 3%

– Titan Moves 3% Higher As Govt Makes Hallmark Compulsory

– Paints & Autos Gain On Unlock Trade; Asian Paints & PVR Up 4% Each

– CONCOR Continues The Gaining Momentum Following LLF Resolution

– Colgate Gains 5% To Hit Record High Following An Upgrade By UBS

– Alkem & Emami Slip Following A Weak Set Of Earnings

– Market Breadth Favours Advances; Advance-Decline Ratio At 1:1

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

15,300 has posed as a resistance today. If we can get past that, we will achieve 15,550-15,600. We have good support at 14,900-15,000 and till we hold that level, we are in bullish territory and can utilize any correction to accumulate long positions.

Closing Bell | Indian benchmark equity indices ended Tuesday’s volatile session flat as banking and financial stocks dragged. The Sensex fell 14.37 points, or 0.03 percent to 50,637.53, while the Nifty ended 10.75 points, or 0.07 per cent higher at 15,208.45. Broader markets erased gains as the midcap and smcallcap indices closed in the red.

Among sectors, gains were seen in IT, metals, pharma, FMCG and auto indices. On the Nifty50 index, Asian Paints, Titan Company, JSW Steel, Eicher Motors and Britannia Industries were the top gainers while HDFC Bank, HDFC Life, Axis Bank, Reliance Industries and Coal India led the losses.

Oil steady near one week high as prospect of Iran glut wanes

Oil prices were steady on Tuesday, holding around one-week highs after jumping more than 3 percent the previous session as investors tempered expectations of an early return of oil exporter Iran to international crude markets.

Subex | The company’s US subsidiary Subex Inc has received a waiver for an amount of US$ 799,167 along with interest of US$ 8,302.46 received as a business loan under Paycheck Protection Program from the United States Federal Government.

Bajaj Electricals Q4FY21 | The company posted a net profit of Rs 54.6 crore as agains a loss of Rs 1.1 crore, YoY. Revenue fell 3.2 percent to Rs 1,258.5 crore from Rs 1,300.7 crore, YoY. EBITDA rose 94.9 percent to Rs 72.7 crore from Rs 37.3 crore, while EBITDA margin rose by 290 bps to 5.8 percent from 2.9 percent, YoY.

NHPC | The company has awarded an EPC contract to M/s Tata Power Solar Systems on May 24, 2021 for development of 40 MW Solar Power Project in Ganjam District, Odisha for total amount of Rs 188.19 crore.

Alkem Laboratories Q4FY21 | The company’s net profit rose 27.1 percent to Rs 240 crore from Rs 188.8 crore and revenue increased 7 percent to Rs 2,192.2 crore from Rs 2,049 crore, YoY. EBITDA declined 3.9 percent to Rs 291.1 crore from Rs 303 crore, while EBITDA margin decreased by 150 bps to 13.3 percent from 14.8 percent, YoY.

Tata Power ‘goes big on renewable energy’, expects 10x growth of sector in 5-7 years

As Tata Power “goes big on renewable energy,” the firm seems optimistic about the exponential growth of the sector in the next four to five years. “Tata Power is going very big on renewables,” Praveer Sinha, managing director (MD) and chief executive officer (CEO) of Tata Power told CNBC-TV18 on May 25. Sinha is confident of the space become the “very biggest” and asserted that it will grow very fast in the next four-five years. Talking about Tata Power’s projects in the renewable energy sector, Sinha said, “…we will look at putting up a new greenfield manufacturing capability. Our EPC (engineering, procurement, and construction) has grown tremendously in the last year.” He added that the firm has a pending order book of around Rs 9,000 crore. Read here.

Market Watch: Shrikant Chouhan of Kotak Securities

– Buy Indiabulls Real Estate with a stop loss of Rs 92 and target of Rs 110

– Buy Hero MotoCorp with a stop loss of Rs 2,890 and a target of Rs 3,030.

Punjab & Sind Bank expects 12% loan growth for FY22

Punjab and Sind Bank posted its Q4FY21 earnings reporting profit after eight quarters. Though net interest income (NII) and net interest margins (NIMs) have slipped in Q4, on a year-on-year (YoY) basis NIM and NII have gone up. S Krishnan, Managing Director and CEO, Punjab and Sind Bank discussed the performance. “We have an internal target of 12 percent for the loan growth,” he said in an interview with CNBC-TV18. “During the last year, we have marginally brought down the gross non-performing assets (NPAs),” he stated. Read here.

Lincoln Pharmaceuticals Q4FY21 | The company’s net profit rose 40.6 percent to Rs 12.6 crore from Rs 8.9 crore and revenue increased 1.4 percent to Rs 79.6 crore from Rs 78.5 crore, YoY. EBITDA rose 78.2 percent to Rs 15.3 crore from Rs 8.6 crore, while EBITDA margin improved by 830 bps to 19.2 percent from 10.2 percent, YoY.

Anand Rathi on HDFC

HDFC continues to grow strongly given its strong market position in the housing finance sector, healthy spreads, sturdy capital position, conservative provisioning and strength from its subsidiaries. The company maintains higher levels of liquidity and has a strong deposit base. We maintain our Buy rating with a target price of Rs 3,100 per share.

Concor shares hit 52-week high as brokerages raise targets on LLF clarity

The share price of Container Corporation of India (Concor) rallied over 4 percent in early trade to hit a fresh 52-week high of Rs 664.50 apiece after brokerages raised the target price on clarity regarding the land licensing fee (LLF) and positive management guidance. Analysts believe this clears a major uncertainty and the process for divestment can be smoother. Nomura maintained a Buy rating on the stock and raised the target price to Rs 750 per share. Read here.

Aurionpro Solutions | The company’s subsidiary SC Soft Pte. Ltd. has announced its foray into Egypt as it has been selected by E-Finance led consortium to supply portable ticket validators for the Egyptian National Railway Project.

HCL Technologies | The IT firm has received an order from US-based McLaren Healthcare for digital solutions. The partnership will have HCL deliver IT services for all 15 McLaren system hospitals located in Michigan and Ohio. HCL services would include managing and transforming the digital infrastructure foundation and the core clinical and non-clinical applications utilizing HCL’s DRYICE automation framework, the company said in an exchange filing.

Punjab & Sind Bank expects 12% loan growth for FY22

Punjab and Sind Bank posted its Q4FY21 earnings reporting profit after eight quarters. Though net interest income (NII) and net interest margins (NIMs) have slipped in Q4, on a year-on-year (YoY) basis NIM and NII have gone up. S Krishnan, Managing Director and CEO, Punjab and Sind Bank discussed the performance. “We have an internal target of 12 percent for the loan growth,” he said in an interview with CNBC-TV18. “During the last year, we have marginally brought down the gross non-performing assets (NPAs),” he stated. The number of slippages in Q4FY21 for the bank is around Rs 1,500 crore. “The FY22 slippages will be little less than Q4FY21 slippages,” he mentioned. Read here.

Market Watch: Ajit Mishra, Religare Broking

– Buy Asian Paints with a stop loss of Rs 2,840 and a target of Rs 3,020.

– Buy Axis Bank with a stop loss of Rs 715 and a target of Rs 760.