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PremiumAfter clocking gains in the last four days, Sensex and Nifty ended Friday's session with 2% loss, amid weak Asian cues and rising covid cases. Banks, financials and FMCG stocks were the biggest laggards. Pharma sector was the lone gainer.
Benchmark indices snapped a four-day gaining streak to end 2% lower on Friday amid sell-off in most sectors, especially banks and financials. Sensex ended at 48,782.36, down 983 points and Nifty ended at 14,631, down 263 points. Pharma sector was the lone gainer among sectors. HDFC twins were the biggest laggards through the day. Only ONGC, Sun Pharma, Dr Reddy's and Bajaj Auto ended in the green on the 30-share index.
India will get a shipment of 450,000 vials of remdesivir from US-based innovator of the drug, Gilead Sciences Inc, and its Egypt-based voluntary licensee Eva Pharma in various tranches till July, the Ministry of Chemicals and Fertilizers said in a statement on Friday.
“The first Consignment of 75,000 vials will reach India today... It is expected that Gilead Sciences will dispatch 75,000 to 100,000 vials in the next one or two days," the ministry said, adding that Gilead will also supply another 100,000 vials by 15 May.
Tata Sons Pvt. Ltd, the holding company of Tata Group, has quoted a higher price than SpiceJet promoter Ajay Singh for Air India Ltd in the preliminary bidding round, two people with direct knowledge of the development said, seeking anonymity. The government hopes to privatize India’s flag carrier by the end of the current fiscal year.
According to the people, Tata Sons is in the driver’s seat in the proposed disinvestment process, with the second wave of covid resulting in reduced load factor and suspension of air travel, constricting the cash flows of Air India and lowering its valuation. (Full report)
Atul Ltd consolidated net profit rose 24% to ₹175 crore in the MArch quarter. Revenue was up at 15.6% to ₹1,115.9 crore. EBITDA margin at 22.8% vs 19.5%
Amid the second wave of the covid pandemic, labour ministry-run Employees’ Provident Fund Organization (EPFO) has increased the death insurance benefit for its insurance subscribers.
In a gazette notification, the social security body that serves at least 50 million active subscribers, says while the minimum insurance has been increased to Rs250,000 and the maximum limit has been increased to Rs700,000. (Read more)
Mahindra Logistic Ltd. reported total revenue from operations up by 20% YoY Q4FY21. Revenue from non M&M SCM at 4338 Cr up by 30% in Q1FY21. Gross margin at ₹95 Cr was up by 13% as compared to Q4FY2020. EBITDA for the quarter at 51 crores up by 24% in Q4FY21 as compared to Q4FY20. Profit after tax for the quarter at ₹12 crores in Q4FY21 up by 29%, Profit after tax includes exceptional loss of 2.7 Cr due to impairment of long term investment.
Company reported very good business growth of 20% along with this revenue from warehouse service & solution grew by 12%. We have a neutral outlook on the company.
Minority shareholders have rejected a special resolution to appoint founder and chairman Samit Ghosh as MD & CEO of the company with only 70.5% votes received in favour. The special resolution needed 75% votes to be passed. Shareholders also rejected reappointment of Abhijit Sen as an independent director for five years.
Asian markets ended lower on Friday as investors struggled to take the lead from a record performance on Wall Street, and following below-forecast Chinese factory data.
Nikkei closed 0.8% lower, Hong Kong's Hang Seng fell 1.7% and Shanghai - Composite ended down 0.8.
Dr. Reddy’s Laboratories Ltd. along with its subsidiaries today announced the launch of Albendazole Tablets, USP, a therapeutic equivalent generic version of Albenza Tablets, 200 mg, approved by the U.S. Food and Drug Administration. The Albenza brand and generic had US sales of approximately $27 million MAT for the 12 months ended November 2020, according to IQVIA Health. Albenza is a trademark of Glaxosmithkline.
This is a positive development for the company but we don’t expect it to make any huge difference on Dr Reddy's topline as product sales in the US market was less.
IDFC First Bank has cut interest rate on savings accounts from 6% to 4-5% for minimum account balance above ₹1 lakh. The new rate will be effective from 1 May.
The private sector lender is offering an interest rate of 4% for minimum account balance of ₹2 crore to ₹10 crore, 5% for balance up to ₹2 crore and 4.5% for ₹1-10 lakh.
IDFC was one of the few private sector banks, besides RBL and Bandhan Bank, offering the highest saving account interest rates.
Shares of Titan Co. Ltd have underperformed the broader market this calendar year. On a year-to-date basis, the stock has declined by 5% vis-à-vis the 6% gain in the Nifty 100 index. For investors, the stock’s pricey valuations have always been a concern and that’s one reason why the shares have underperformed so far this year.
What’s more, with the ongoing second wave, covid-19 has returned to haunt Titan again. The company told analysts that half of its stores are shut owing to the pandemic. JM Financial Institutional Securities Ltd said in its March quarter results review on 29 April, “Near-term demand condition is also uncertain, with around 50% of Tanishq stores closed for business for now, following the re-imposition of localized lockdowns in the country in recent weeks." (Full report)
The Hyderabad-based drug major has launched generic Albendazole tablets, used in the treatment of a variety of parasitic worm infestations, in the US market. The product is a generic version of GlaxoSmithKline's Albenza tablets (200 mg).
ITC Ltd on Friday said it is extending support including arrangement of beds, monitors, oxygen, furniture, and initial medical supplies towards setting up of a 200 to 300 bed medical facility in the city of Kolkata managed by Medica Superspecialty hospital that will treat covid-19 patients.
"To contribute to enhancing availability of Covid healthcare facilities in Kolkata, ITC is humbled by the opportunity to support the setting up of a 200 to 300 bed medical facility in Kolkata by Medica Superspecialty hospital for the treatment of COVID-19 positive patients and administering vaccines," the company said in a statement.
AMFI has reduced the ARN (AMFI registration number) registration and renewal fees for most distributor types, including individual distributors, by 50%, effective 1 May.
The EUIN (employee unique identification number) registration and renewal fees for the employees too have been reduced to ₹500 from ₹1,500 and ₹750, respectively.
The ARN registration and renewal fees for the individuals and proprietorship firm has been reduced by 50% to ₹1,500 and ₹750, respectively, while for the Post Office and microfinance institutions (MFIs) the registration and renewal fees stand reduced by 50% to ₹7,500 and ₹3,750, respectively.
“Nifty started the session with a gap up around the 15000 mark. It traded above that level for the first half and hour, but it then corrected sharply to mark a low of 14815. The index then recovered from the lows but no follow up buying was seen and it ended the expiry day on a flat note.
The index reclaimed the 15000 mark at opening after one and a half month. However, as the index have already seen a sharp upmove in last few sessions, the momentum readings on the lower time frame chart reached overbought zone and thus, we witnessed profit booking which weighed down heavily around this psychological mark of 15000. Since the Nifty has given a breakout from a channel on Wednesday, the short term trend remains up but some bouts of corrections can be there due to overbought set ups. On dips, the immediate support is placed around the hourly 20 EMA at 14790 while the resistance is around the 15000 mark. A sustained move above the 15000 level could then lead the index towards its next zone of 15150.
Some of the sectoral charts are interestingly placed. The Bank Nifty index too had seen a sharp surge in this week and yesterday’s high in morning was around a falling trendline resistance from where we witnessed profit booking. Also the midcap index is around the trendline resistance of the recent consolidation phase. It would be important to see how momentum unfolds in these two indices as they play a key role in lifting the benchmark. On the other hand, the dream run continues for the metal counters as they continued to see buying interest. Traders are advised to look for such potential out performers and trade with the trend."
Investors who picked up Au Small Finance Bank Ltd shares at its qualified institutional placement (QIP) last month have got a sour deal. Shares of the small finance bank have dropped roughly 15% since then. What could be painful is that the turnaround looks long drawn now.
AU Small Finance Bank’s March quarter performance has offered little to assure investors. Sequentially, operating profit plummeted 57% because core interest income didn’t grow much. What’s more is that operating profit was propped up by a jump in other income. On a year-on-year basis, the metrics were decent but far from the historic trend by the lender. (Full report)
The Mukesh Ambani-led company will declare its March quarter earnings on Friday. The company had posted a consolidated net profit of ₹14894 crore, up 25.8% for the fiscal third-quarter ended December.
The highlight of Ambuja Cements Ltd March quarter earnings was its operating performance. Thanks to its continued costs savings efforts, the company clocked its best Ebitda ever and managed to beat consensus estimate by 33%. Its Ebitda in the March quarter stood at all-time high of ₹977 crore, much higher than consensus estimates of ₹740 crore. On a per unit basis, Ebita rose 25% year-on-year, ahead of estimates. (Full report)
The impact of the second wave of the covid-19 on the overall economy and the consequent stretched resources of states is leading to the holding back of the rollout of the four labour codes perceived as a major labour reform in the country.
The plan was to roll out the labour codes on 1 April. However, the second surge in coronavirus cases has come as a big setback in the implementation of this plan. The codes, passed by Parliament last year, promise flexibility and ease of doing business to industries but were also at the same time expected to increase their employee cost. (Read more)
India’s top packaged consumer goods company Hindustan Unilever Ltd, the maker of Dove soaps and Kissan jams, on Thursday beat street estimates with a 41% jump in quarterly net profit, as it reported broad-based growth across categories such as skin cleansing, tea, ketchup, and laundry detergents. A lower base quarter helped it report impressive sales.
On a standalone basis—net profit for the three months ended 31 March 2021, rose to ₹2,143 crore from ₹1,519 crore a year. Revenue for the quarter jumped 34.6% to Rs12,132 crore from Rs9,011 crore the company reported a year earlier.
Gold prices today extended decline to the seventh straight day in Indian markets amid weak global cues. On MCX, gold futures were down 0.07% to ₹46,691 per 10 gram while silver rates fell 0.3% to ₹68439 per kg. In the previous session, gold and silver had declined 0.75% and 0.6% respectively. MCX gold faces resistance at ₹47780 and support at ₹45,760.
The Indian rupee rose 7 paise to 74 per US dollar in early trade
Embassy Office Parks REIT expects leasing sentiment to remain muted for another 2-3 quarters before picking up sometime in the latter half of 2021-22, with the the second wave of covid-19 cases.(Read more)
The Nifty seems a little lost in its direction this morning. However, the current trend continues to remain bullish and dips like these can be utilized to trickle in buy positions for a higher target of 15100. A strong support lies at 14400 and since that is a steep stop to maintain, a buy on dips approach would be most advisable.
Post completion of Capco acquisition on 29 April, Wipro has raised its flagship IT services revenue growth guidance for the June quarter to 8-10% sequentially in the range of $2.32 billion-$2.36 billion. This excludes revenue from the acquisition of Ampion, an Australia-based cyber security and engineering services firm it agreed to buy for $117 million.
During the March quarter earnings, Wipro said it expects revenue from its IT services business for the quarter to grow 2-4% in the range of $2.19 billion to $2.23 billion, backed by a strong demand environment and robust pipeline of digital deals.
As many as 386,829 people tested positive for covid-19 in the last 24 hours, taking the cumulative cases to 1,87,62,976, the Union health ministry said on Friday morning.
Maharashtra continues to be the worst-affected state as it logged 66,159 new cases on Thursday, taking the active tally to 6,70,301.
Karnataka has jumped to the second position after an alarming increase of 39,047 fresh cases, overtaking Uttar Pradesh.
Daily fatalities have dipped marginally with 3,498 more people succumbing to the disease in the last 24 hours. The number stood at 3,645 on Thursday. The cumulative death toll now stands at 2,08,330.
"Domestic equities do not look to be encouraging at the moment. Benchmark indices have clearly defied ongoing concerns of rapid rise in COVID-19 cases and threat to earnings recovery. We note that absence of nationwide lockdown and high chances of reversal in cases by the end of May or mid of June’21 offered comfort", said Binod Modi, Head Strategy at Reliance Securities.
Post completion of Capco acquisition on 29 April, Wipro has raised its flagship IT services revenue growth guidance for the June quarter to 8-10% sequentially in the range of $2.32 billion-$2.36 billion. This excludes revenue from the acquisition of Ampion, an Australia-based cyber security and engineering services firm it agreed to buy for $117 million.
During the March quarter earnings, Wipro said it expects revenue from its IT services business for the quarter to grow 2-4% in the range of $2.19 billion to $2.23 billion, backed by a strong demand environment and robust pipeline of digital deals.
Life Insurance Corp of India booked a record ₹37,000 crore profit from share sales in 2020-21, the highest in its 65-year history, as the stock market reached record highs. The latest profit is a 44.4% jump against its ₹25,625 crore profit from stock sales in fiscal 2020.
During the fiscal year, India’s largest institutional investor purchased shares amounting to ₹94,000 crore, also its highest ever.
Exit polls on Thursday forecast a tight contest between the incumbent Trinamool Congress and the BJP in the high-profile West Bengal assembly polls, while the ruling Left combine was projected to retain power in Kerala and so was the case for BJP in Assam.
However, exit polls projected DMK-led opposition alliance as a winner in Tamil Nadu, while the Congress-led alliance was seen losing the neighbouring Puducherry by some pollsters. (Full story)
Oil prices slipped on Friday, taking a breather after touching their highest in six weeks as economic recovery and bullish summer fuel demand outlook outweighed concerns of wider lockdowns in India and Brazil to curb covid-19 pandemic.
Brent crude fell 26 cents, or 0.4%, to $68.30 a barrel by 0041 GMT, the last day's trading for the front-month June contract. U.S. West Texas Intermediate crude for June was at $64.73 a barrel, down 28 cents, or 0.4%.
Indian equity markets are likely to be volatile on Friday, while trends in SGX Nifty suggest a weak opening for domestic benchmark indices. On Thursday, the BSE Sensex ended at 49,765.94, up 32.10 points or 0.06%. The Nifty closed at 14,894.90, up 30.35 points or 0.20%.
Reliance Industries and IndusInd Bank are among stocks that will be in focus today as they will report their March quarter earnings today. Ajanta Pharma, Atul, Indian Hotels, Marico, will also announce their results today
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