India VIX was Zoomed 11% on Wednesday.
(Image: REUTERS)Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic benchmark equity indices closed with gains Wednesday. Sensex gained 379 points to close at 51,017 while Nifty 50 was above 15,300. Bajaj Finserv, Infosys, Bajaj Finance, and Mahindra & Mahindra were the top index gainers. Broader markets closed with gains, except Nifty Next 50 and the Midcap 50 index. India VIX skyrocketed 11.11% on closing. Bank Nifty was in the green, Nifty Metal and the PSU Bank index closed in the negative.
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Highlights
After two consecutive days of trading flat, domestic equity markets surged higher on Wednesday and closed with gains. Sensex added 379 points to close at 51,017 while Nifty 50 was above 15,300. Among the top gainers were Bajaj Finserv, Infosys, Bajaj Finance, and Mahindra & Mahindra were the top index gainers. Most broader markets concluded Wednesday’s trade with gains, except Nifty Next 50 and the Midcap 50 index. India VIX skyrocketed 11.11% on closing. Among sectoral indices Bank Nifty was in the green but, Nifty Metal and the PSU Bank index closed in the negative.
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Sensex closed above 51,000 ahead of the monthly F&O expiry session. Nifty 50 was at 15,301. The volatility index skyrocketed 11.11%.
India VIX is now up 12%, breaching the 21 levels ahead of the closing bell on Wednesday.
After spending most of the day in the positive territory, the Nifty PSU Bank index was down in the red with minutes left to go before the closing bell. Union Bank, J&K Bank, and PSB were the worst performers.
India VIX, the volatility index, is up 10.6% ahead of the closing bell. The index was down at 17.23 levels earlier in the day.
Sensex is just below 51,000 with minutes left to go before the closing bell. Nifty, meanwhile, is just shy of 15,300.
TTK Prestige’s 4QFY21 beat ours as well as street’s expectation. Revenue grew by 45% YoY (HSIE 31%), clocking 12% 2-year CAGR. It was broad-based growth as cookers/cookware/appliances posted 49/67/34% YoY growth. Kitchen and home appliances categories have recovered well in 2HFY21 and TTK has capitalised on the spur in demand. It gained 1-1.5% market share in cookers and cookware. However, the big surprise came at gross margin, which expanded by 200/400bps YoY/QoQ to 45.6% (40-quarter high) despite the steep raw material inflation. It was driven by favourable product mix and channel mix (traditional channel is margin accretive), price hike, and benefit of carry forward old inventory. Hence, EBITDA margin expanded by >900bps YoY to 18.5% (an all-time high). TTK has recovered well after a weak quarter 1HFY21, clocking 5/21% revenue/EBITDA growth in FY21. Even though we had non- consensus earnings and TP, we increase our EPS by 4% for FY23. As the company is a pure B-C play and its earnings visibility is improving, we increase the target multiple to 40x (38x earlier) on Jun-23E EPS. Our target price is INR 8,880. Maintain ADD.
~ HDFC Securities
Power Grid, NTPC, ONGC, Dr Reddy's, Kotak Mahindra Bank, and ITC were the only stocks on Sensex to be trading with losses.
The Nifty Metal index is down 1.57% on Wednesday while all other sectoral indices on NSE were trading with gains. AMong the top laggards on the index were JSW Steel, SAIL, and Jindal Steel.
"Market sentiments have turned positive with the decline in the ferocity of the second wave of COVID-19. The supply situation of vaccine is also likely to significantly improve over next few months. The risk of further acceleration of COVID-19 has now reasonably subsided, so the focus is back on economic recovery and structural factors driving the economic growth. India is likely to be amongst the fastest growing countries for this year and for a long term investor, every correction is a buying opportunity," said Mohit Ralhan, Managing Partner and Chief Investment Officer, TIW Private Equity.
"Gold prices have been steadily rising in the past few sessions tracking international gold futures prices. The rally in the yellow metal continued past Rs 49,000/10gm earlier today to make a 4-month high. The rise in the yellow metal has been on account of the fall in US Treasury yields, softer US dollar which pushes up the gold prices. The commentary by the US Fed on rising inflation has also helped gold prices. The dollar index is currently over a 4-month low. The current scenario combined with the rising number of cases due to the second wave will lead to investors turning to a safe haven and help further rally in gold prices," said Nish Bhatt, Founder & CEO, Millwood Kane International.
With an increasing number of youngsters joining the workforce across the Asia Pacific region, consumption trends are expected to evolve. Global brokerage and research firm CLSA believes that Generation Z -- as the people born in or after 1995 are referred to -- will dictate what consumers spend on once they start reaching peak earnings by 2030. The brokerage firm highlighted that as Gen Z reach their peak earnings, per capita consumer expenditure in Asia will have risen to $5,832, up from $3,268 in 2020. To bank on this shift in dynamics, the brokerage firm has picked 23 Asia stocks to play the Gen Z theme, with the second-highest weightage to India with four stocks.
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Bank Nifty is up 0.36% at 34,786 on Wednesday. The index has recouped all intra-day losses and surged higher.
“The yellow metal has continued to show strength and the safe-haven demand will remain intact in general. While, DXY is struggling to extend recovery moves. MCX gold has hit the higher end of the range around 49000, further upside is possible only if prices hold on to these areas for few sessions. Else a correction towards 48000/47500 should be seen," said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.
Mahanagar Gas’ (MGL) 4QFY21 EBITDA of INR3.2bn (+30% y-y, flat q-q) was 2%/5% below of our estimates/Bloomberg consensus. The miss was due to lower volume but part offset by higher margins. Overall volume at 2.89mmscmd (+4% y-y and q-q) further recovered, but was 5% below our estimate (3.04 mmscmd). We use a DCF methodology to value Mahanagar Gas, assuming a WACC of 10% and a terminal growth rate of 2%, with cash flows discounted back to Sep 2022F. This derives a target price of INR1,300. The stock trades at 13.4x FY22F (EPS of INR84.7).
~ Nomura
Some of the biggest names in the global tech space – the likes of Facebook, Google and Amazon – to consortiums formed by domestic companies like Cholamandalam Investment and Finance Company (Chola), which is the financial services arm of over Rs 38,000-crore Murugappa Group, will be awaiting the outcome around September when the Reserve Bank of India (RBI) is likely to announce the players who may get the new umbrella entity (NUE) licence for retail payments.
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50-stock NSE Nifty has breached 15,300 after surging higher from an intra-day low of 15,194.
Sensex has hit an intra-day high of 50,998 on Wednesday as the benchmark index flirts with 51,000 levels.
Emami 4QFY21 result was a mixed bag with marginal beat in revenue and miss in EBITDA margin. Revenue posted 37% YoY growth (HSIE 34.5%), clocking a two-year revenue CAGR of 7%. It was a broad-based recovery with most brands and channels seeing healthy trends. We increase EPS estimate by 2/3% for FY22/FY23. We value Emami at 25x P/E on Jun-23E EPS to derive a TP of INR 450. Maintain REDUCE.
~ HDFC securities
"The intraday supports for the index are placed around 15,165 and 15,135 whereas resistances are around 15,300 and 15,335. We expect the market to gradually move higher and surpass the resistances to march toward new highs in the near term. Hence, buying on dips and having stock specific trades remains a pragmatic approach," said Sameet Chavan Chief Analyst-Technical and Derivatives, Angel Broking.
Sensex jumped over 250 points on Wednesday, breaching the 50,900 mark. Nifty 50 was also moving higher nearing the 15,300 mark.
On a high base of FY21 (41% YoY growth), we expect 8% earnings CAGR over FY21-23E, led by 11%/14% sales CAGR in the US/DF segment on account of new launches and better traction in existing products in the US and strong growth in Antibiotic, VMN, and Pain Relief in DF. Continued efforts toward cost optimization and savings from digital initiatives such as digital conferences is expected to reduce opex structurally in the DF segment, which will help sustain profitability over the next two years. We maintain our FY22E/FY23E EPS estimate. We continue to value ALKEM at 23x 12-months forward earnings to arrive at our TP of INR3,500. We remain positive on ALKEM on the back of industry outperformance in DF in its focused therapies and better growth outlook in the US as well. Maintain Buy.
~ Motilal Oswal
Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were moving higher on in India on Wednesday, following global rates as investors weighed in the comments by Federal Reserve officials who sought to soothe concerns about inflation. On Multi Commodity Exchange, gold June futures were trading Rs 126 or 0.26% higher at Rs 48,939 per 10 gram, as against the previous close of Rs 48,867. Silver July futures were trading at Rs 72,503 per kg, up Rs 390 or 0.54 per cent, as compared to the last close of Rs 72,140 per kg. COMEX gold was trading 0.4% higher near $1906/oz adding to the 0.7% gain yesterday.
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"We reiterate our positive stance on the market and expect Nifty to challenge lifetime high of 15400 in coming sessions. Key point to highlight in the current up move off May low (14416) is that, the secondary corrections have been shallower in nature, highlighting elevated buying demand that makes us confident to revise our target to 15700 for the month of June 2021, as it is 123.6% external retracement of Feb-April Correction (15432-14151). Hence, round of volatility owing to F&O expiry week should be capitalised as incremental buying opportunity in quality large-cap and midcaps," said ICICI Direct.
"15,300 is the key level to watch out for. We need to get past this to scale higher to the next target zone which is 15,500-15,600. The support for the Nifty is at 15,000 so any intraday correction or dip can be strategically utilized to buy into this market," said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Globally the equity markets are stabilizing as Federal Reserve officials tried to soothe concerns about inflation. The 10-year bond yield in the US is cooling off from the highs of 1.69 and currently, it is at 1.59. It has triggered weakness in the dollar index, which is comfortably quoting below the psychological support at 90. It is positive for the emerging markets as it increases inflows and the same is getting reflected in the performance of the Asian markets.
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The resolution of the LLF issue provides comfort and clears the path for disinvestment. The Company is now looking to enter into long term lease agreements with Railways and buy new terminals which would save on costs. While Q4 has been impacted by several one‐time costs, the margins are expected to improve from FY22 onwards. As DFC becomes operational, the volumes should pick up from FY23 onwards. While we have lowered our estimates for FY22, to factor in the weak economic activity during Q1, we expect FY23/24 to be strong on the base of increase in volumes and some benefits of DFC coming through. We have rolled forward our estimates to FY24 and retain our ADD rating on the stock for target of Rs669/share (24x FY24 EPS).
~ Yes Securities
"A significant feature of the ongoing global stock market rally is that it has demonstrated great resilience even in the midst of the second wave of the pandemic. The factors driving the rally like the huge liquidity, historically low-interest rates, widespread retail participation and hope of a vaccine-triggered recovery are still favourable. Even the fear of inflation is subsiding as indicated by the decline in US 10-year yield to 1.56 % and the weakness in the US dollar index. So the broad market construct is favourable. Q4 results continue to be good and many midcaps' results have beaten street expectations. Weakness and volatility in banking stocks are likely to be a short-term phenomenon which will provide buying opportunities for long-term investors," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Senex opened in the green and neared 50,800 minutes into the trade. Nifty was above 15,200.
Sensex is down from initial highs but still sitting with gains in the pre-open session. Nifty added 50 points.
"If we can get past that (15,300), 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," said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Sensex and Nifty surged higher during the day's pre-open session. Sensex was above 51,000 mark while the Nifty 50 index neared 15,250.
"The Major trend remains bullish above 15,100 and use dips as buying opportunities. Supports are placed at 15,145 and 15,115 while resistance is expected at 15,300 and 15,430. A new all-time high should happen sooner than later," Rahul Sharma of JM Financial said.
"Nifty found resistance near the 15,300 mark and paved the way for some profit booking. Market breadth remained neutral. Global cues are flat to positive this morning. FII's continued to buy in cash segment and also added longs in Index futures. Nifty saw major addition in the strangle of 15,200 put and 15,300 calls. Bank Nifty witnessed huge addition at 35,000 calls," said Rahul Sharma of JM Financial.
"Technically, Nifty has to hold above 15150 zones to witness an up move towards 15300 then life time high of 15431 marks while on the downside support exists at 15100 and 15000 zones. The overall structure of the market remains positive as many states are planning to ease restrictions in June which will help in revive economic activities. Stimulus if announced by government will further provide support to much needed sectors. Thus, as the 2nd Covid-19 wave recedes in India (active cases down ~1/3rd in 3 weeks from the recent peak) and pace of vaccination picks up in rest of the CY21, we hope and expect the journey will become little more smoother. Easing of inflation worries by Fed further adds to the positivity. Investors this week would watch out for US GDP data on global front while monthly F&O expiry would keep markets volatile on domestic front," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: Prices of Petrol and Diesel were left unchanged on Wednesday. So far this month, fuel prices have been increased 13 times, with the most recent hike coming earlier on Tuesday. Petrol in Delhi today costs Rs 93.44 per litre, while diesel in the capital city costs Rs 84.32 litre today. Petrol price in Delhi has been increased by Rs 3.04 so far in May, while diesel price has surged Rs 3.59 per lire. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices on a daily basis in line with benchmark international price and foreign exchange rates.
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"In absence of any major event, global cues will continue to dictate the market trend in near future. Besides, any news of unlocking by the state governments will also be closely watched as we’re seeing a sustained decline in new COVID cases. We feel the choppiness may continue especially in the F&O stocks ahead of the upcoming monthly expiry of May month contracts. Traders should align their positions accordingly and continue with the “buy on dips” approach," said Ajit Mishra, VP - Research, Religare Broking Ltd and Thematic Report by Religare Broking.
Nifty futures on Singapore Exchange were down 44 points on Wednesday morning, hinting at a gap-down start for domestic equity markets. Headline indices on Dalal Street have been moving flat for the last two days now. However, Sensex and Nifty have held above their support levels and technical analysts continue to believe that the short term trend is positive. “There is a possibility of further consolidation or minor weakness in the next 1 or 2 sessions before showing upside bounce from the lows. Immediate support is placed at 15,130,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. Investors could go for stock-specific trades in such a market.
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SGX Nifty is down 44 points on Wednesday morning. Domestic markets have been trading flat for two consecutive trading sessions now.