Closing Bell: Nifty ends above 18,300, Sensex up 234 pts; pharma, IT, metals rally

Ajit Mishra, VP - Technical Research, Religare Broking

Markets started the week on a firm note and gained over half a percent, in continuation to Friday's rebound. Meanwhile, a mixed trend on the sectoral front kept the traders busy wherein stocks from IT, metal and pharma space witnessed rebound while the banking and financials were slightly on the back foot. Consequently, Nifty settled at 18,314.40 levels; up by 0.61%.

Markets are taking comfort from rotational buying across sectors amid mixed global cues. The recent participation from the IT majors is certainly encouraging but sustainability would be the key ahead. Amid all, we reiterate our positive view and suggest continuing with the stock-specific trading approach.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

The benchmark indices experienced a significant rebound, with the Nifty ending 101 points higher. This was accompanied by strong buying momentum in Adani stocks, supported by the performance of IT stocks. Among the sectors, the Metal and IT indices outperformed, with the Metal index gaining over 3 percent and the IT index rallying 2.35 percent.

From a technical perspective, after a reversal on the previous Friday, the market continued its positive momentum and formed a bullish candle on the daily charts, which is largely seen as a positive signal. It is believed that the index has completed one leg of a pullback rally and is currently trading near an important retracement resistance zone.

Overall, the market has shown positive signs with a strong bounce back, supported by the performance of specific sectors. However, caution is advised around the important retracement resistance zone, and traders should monitor the levels mentioned for potential market movements. Nifty having strong support at 18200 range while having resistance on higher side at 18375 to 18400 range.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services:

Nifty opened on a flat but gradually recovered to close with gains of 111 points (+0.6 percent) at 18314 levels. The broader market too ended in line with the Nifty midcap 100 and smallcap 100 up 0.6 percent. All sectors ended in the green, except for Banking and Financials. Metals were the top gainers up 3 percent, followed by IT up 2 percent.

The market has resumed its upward journey after taking a pause last week. Positive commentary from US Fed, consistent FII buying and healthy results from Index heavyweights supported the sentiments.

Overall market outlook remains positive with stock-specific action. Over the next few days, investors would take cues from global events like FOMC minutes, GDP numbers in the US, and CPI inflation in UK and Japan.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas:

The Nifty witnessed the continuation of the positive momentum from the previous trading session and ended the day with handsome gains of more than 100 points. On the daily charts, we can observe that the rally which started from the 20-day moving average (18115) has continued today as well. On the upside, the zone of 18350 – 18375 where crucial Fibonacci retracement levels are placed can act as immediate hurdles from a short-term perspective.

The daily momentum indicator has a negative crossover which is a sell signal and suggests that there could be consolidation going ahead as without the support of the momentum indicator it would be difficult for prices to sustain at higher levels.

On the downside, the key hourly moving averages placed in the range 18210 – 18250 shall act as a cushion and provide support in case of a slide. Overall, we still believe that the Nifty is in a consolidation mode and the range of consolidation is likely to be 18000 – 18400.

Vinod Nair, Head of Research at Geojit Financial Services

The domestic market inched higher in anticipation of possible progress in US debt ceiling negotiations. Despite a weak fourth-quarter performance, IT stocks rebounded on account of bargain opportunities and pent-up demand. Investors remain watchful ahead of the release of US FOMC minutes on Wednesday, as the minutes may give some indication of a pause on rate hikes.

Dilip Parmar, Research Analyst, HDFC Securities 

The Indian rupee depreciated for the fourth day in a row following weaker Asian currencies. However, the greenback declined versus major currencies in anticipation of a pause in interest rate increases from FOMC next month. A soft landing for the US economy is seen as the biggest risk to dollar bulls.

Technically, spot USDINR is in an uptrend and has psychological resistance at 83 while the support has been placed at 82.50. We expect bullish momentum to continue in the coming days as long as the regional currencies remain weak against US dollar.

Rupee Close:

Indian rupee closed 16 paise lower at 82.82 per dollar on Monday against Friday's close of 82.66.

Market Close:

Benchmark indices ended higher on May 22 with Nifty above 18,300 supported by metal, IT and pharma names.

At close, the Sensex was up 234 points or 0.38percentat 61,963.68, and the Nifty was up 111 points or 0.61percentat 18,314.40. About 1,724 shares advanced, 1,776 shares declined, and 172 shares were unchanged.

Adani Enterprises, Adani Ports, Divis Laboratories, Apollo Hospitals and Tech Mahindra were among the biggest gainers on the Nifty, while losers were Nestle India, Hero MotoCorp, Eicher Motors, Axis Bank and Coal India.

Among sectors, the metal index was up 3 percent, the information technology index rose 2 percent, while capital goods, oil & gas and healthcare indices were up 1 percent each.

The BSE midcap index added 0.7 percent and smallcap index was up 0.4 percent.

Nomura View On Siemens

-Downgrade to reduce from neutral, target raised to Rs 3,521 from Rs 3,008 per share
-Concerns arise on fairness of valuation for busines being sold to the parent
-Raise our EPS estimates by 15-20 percent for FY23-25
-Cut 1-year forward P/E multiple to 48x from 50x on outlook concerns

Expect the USDINR spot to trade between 82.40 to 83.30 in the near term: Anuj Choudhary - Research Analyst, Sharekhan by BNP Paribas

Indian Rupee depreciated today to the lowest levels since February 2023 overall on underlying strength in the greenback and buying of Dollars by the RBI to shore up its forex reserves. However, the weak tone in crude oil prices and positive domestic equities cushioned the downside. US Dollar eased slightly on a dovish statement by Fed Chair Jerome Powell and debt ceiling talks being stalled.

We expect Rupee to trade with a negative bias on risk-off sentiments amid concerns over the debt ceiling talks. However, expectations that crude oil prices may decline further amid sluggish demand from China may prevent a sharp fall in Rupee. Dovish hints by Powell may also support Rupee at lower levels.

Markets participants may remain cautious ahead of FOMC minutes this week. We expect the USDINR spot to trade between 82.40 to 83.30 in the near term.

Gold struggles for direction with US debt talks in standstill

Gold prices were flat on Monday, as traders looked for more clarity around the U.S. debt ceiling negotiations and the Federal Reserve's interest rate path.

Spot gold was steady at $1,978.32 per ounce by 0843 GMT, while USgold futures were down 0.2percentto $1,978.10.

HFCL receives orders worth Rs 222 crore

HFCL, along with its material subsidiary, HTL Limited, has received the Purchase Orders aggregating to Rs 221.95 crores, consisting Purchase Orders of ~ Rs 179.24 Crores from Reliance Projects & Property Management Services Limited for supply of Optical Fiber Cables and of ~ Rs 42.71 crores from Reliance Jio Infocomm Limited for supply of indigenously designed, developed and manufactured 700 MBPs and 1GPBS Point to Point Unlicensed Band Radios (UBRs).

Market at 3 PM

The Sensex was up 244.28 points or 0.40percentat 61,973.96, and the Nifty was up 111.20 points or 0.61percentat 18,314.60. About 1,624 shares advanced, 1,709 shares declined, and 141 shares were unchanged.

Crompton Greaves Consumer Electricals Q4 profit drops 26%

Crompton Greaves Consumer Electricals has reported a 25.7percentyear-on-year decline in consolidated profit at Rs 131.2 crore for the March FY23 quarter impacted by lower operating numbers. Revenue from operations grew by 15.7percentto Rs 1,791 crore compared to the same period last fiscal.

Jayesh Faria, Director, Regional Head - West, Motilal Oswal Private Wealth

Since 2022, RBI’s focus has shifted towards inflation management while supporting growth, hence has taken steps like cumulatively hiking policy rates by 250bps, and normalizing system liquidity with an intention to get real rates above long-term inflation levels.

The current fall in 10-year yield below 7 percenthas been due to multiple factors like the cumulative impact of past rate hikes, global financial instability, moderation in domestic inflation and neutral liquidity position in domestic markets.

CESC Q4 results

The company has posted 2.1 percent jump in its Q4 net profit at Rs 433 crore versus Rs 424 crore and revenue was up 3% at Rs 3,102 crore versus Rs 3,011 crore, YoY.

CESC was quoting at Rs 71.07, down Rs 0.62, or 0.86 percent on the BSE.

Nomura View On Zomato

-Maintain reduce call, target at Rs 45 per share
-Food delivery slowdown continues, improvement likely in Q1FY24
-Margin improvement better than expected
-Lower our growth assumptions for its FD’s GOV growth, from 20 percent to 17 percent
-Raise our FY24 contribution margin estimate from 5.8 percent to 6.5 percent
-To achieve its target of 4-5 percent EBITDA margin, company will need 7-8 percent CM margin
-Will find difficult to achieve double-digit CM, with high growth in the long term

Zomato was quoting at Rs 64.60, up Rs 0.06, or 0.09 percent on the BSE.

SPARC reports 15% jump in Q4 net profit

Net loss at Rs 82 cr Vs Rs 71 cr (YoY)

Revenue was up 89.3percentat Rs 47.7 cr Vs Rs 25.2 cr (YoY)

EBITDA loss at Rs 89.6 cr Vs EBITDA loss of Rs 66.6 cr (YoY)

Board approves fundraise of up to Rs 1,800 cr via eq & convertible warrants

India Appellate Court upholds Go Air insolvency ruling

--Go Air Lessors may seek Aircraft repossession from India NCLT

--India Appellate court order on Appeal by lessors in Go Air case

Market at 3 PM

The Sensex was up 172.65 points or 0.28% at 61,902.33, and the Nifty was up 88.30 points or 0.49% at 18,291.70. About 1613 shares advanced, 1680 shares declined, and 150 shares unchanged.

Sun Pharma Advanced Research Company board approves fundraising

The company board considered and approved for seeking approval from the shareholders of the Company by passing an enabling special resolution at the ensuing Annual General Meeting of the Company, to authorize the Board to raise the funds, for an aggregate consideration of up to Rs.1,800 crore or in equivalent foreign currency, subject to necessary approvals as may be required under the applicable laws.

Sun Pharma Advanced Research Company was quoting at Rs 188.40, down Rs 5.95, or 3.06 percent.

Thangamayil Jewellery Q4 Results

Thangamayil Jewellery has reported net profit of Rs 31 crore against Rs 8 crore and revenue was up 26.7% at Rs 771.5 crore versus Rs 609 crore, YoY.

Som Distilleries forms strategic tie-up with Carlsberg India for Odisha plant

The company announced strategic tie-up with Carlsberg India Private Limited (Carlsberg) a renowned name in the brewing industry for the Odisha plant.

Under this strategic tie-up, Som’s state-of-the-art plant in Odisha will be partly utilized to produce a wide range of world-class beverages, including popular brands from Carlsberg India Private Limited's portfolio.

Som Distilleries and Breweries was quoting at Rs 199.45, up Rs 9.00, or 4.73 percent and touched a 52-week high of Rs 203.20.

Nomura View On Alkem Laboratories

-Downgrade to neutral from buy, target cut to Rs 3,632 from Rs 3,772 per share
-Q4FY23 missed our estimates on higher cost pressure
-Lower our earnings estimates for FY24/25 by 0.9 percent/3.7 percent
-We factor in 16.3 percent EBITDA margin for FY24

Ramco Industries Q4 results

Ramco Industries has posted 26percent jump in its Q4 net profit at Rs 58.4 crore versus Rs 46.3 crore and revenue was down 10.4 percent at Rs 350 crore versus Rs 390.7 crore, YoY.

Ramco Industries was quoting at Rs 152.45, up Rs 0.60, or 0.40 percent on the BSE.

Hindustan Copper Q4 profit jumps 49%

Hindustan Copper has reported a 48.7percent year-on-year growth in consolidated profit at Rs 132.3 crore for the March FY23 quarter, driven by healthy operating numbers and lower employee expenses. Revenue grew by 2.6percentto Rs 559.8 crore compared to the same period last year.

Hindustan Copper was quoting at Rs 103.35, up Rs 1.80, or 1.77 percent on the BSE.

Minda Corporation Q4 profit jumps 61% YoY to Rs 122 crore; stocks gain

Minda Corporation has reported a 60.7percentyear-on-year growth in consolidated profit at Rs 121.9 crore for the March FY23 quarter despite weak operating margin performance, driven by tax write-back. Revenue from operations during Q4FY23 increased by 13.4 percentto Rs 1,074.6 crore compared to the corresponding period last fiscal.

Minda Corporation was quoting at Rs 283.95, up Rs 2.80, or 1.00 percent on the BSE.

Suzlon Energy wins a 204 MW order from Serentica Renewables

Suzlon Group has bagged a significantly large order for its 3 MW series of wind turbines from Serentica Renewables ‐ a decarbonization platform that seeks to accelerate the energy transition for energy‐intensive industries.

Suzlon will install 68 wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 3 MW each for Serentica’s 204 MW wind power project coming up at Koppal in Karnataka. The project is expected to commission by early 2024.

USFDA GMP inspection clears Shilpa Medicare with VAI Classification

US FDA GMP inspection performed on Shilpa Medicare's Analytical Services Division situated on first Floor of Unit 7, Nacharam, Hyderabad, Telangana, has been cleared with a status of ‘voluntary action indicated (VAI)’.

The inspection was held during 08 Mar 2023 to 10 Mar 2023, with issuance of 2 observations.

The VAI inspection classification indicates that the US FDA will not take or recommend regulatory or enforcement action because the observations do not meet the threshold for action at this time. The company is committed to ensure continued compliance with cGMP’s.

Thisisthe second US FDA GMP inspection of thisfacility within one year. The facility isidentified astesting laboratory in numerous ANDAs filed by the company and its agreed parties.

Market at 1 PM

Benchmark indices were trading firm in the afternoon session with Nifty around 18300.

The Sensex was up 181.50 points or 0.29 percent at 61,911.18, and the Nifty was up 93.40 points or 0.51percentat 18,296.80. About 1,618 shares advanced, 1,627 shares declined, and 153 shares were unchanged.

Multi Commodity Exchange of India Q4 profit tanks 85%

Multi Commodity Exchange of India has registered an 85 percentyear-on-year decline in consolidated profit at Rs 5.45 crore for the quarter ended March FY23. Revenue from operations for the quarter at Rs 133.75 crore grew by 25.6percentover a year-ago period. The board has recommended a final dividend of Rs 19.09 per share.

Elgi Equipments shares gain 14%

Elgi Equipments has recorded a massive 133 percentyear-on-year growth in consolidated profit at Rs 170.1 crore for the March FY23 quarter as Patton’s Inc, USA, a subsidiary of Elgi Compressors USA Inc, has recognised a net gain of Rs 105.38 crore ($13.08 million) on completion of the sale of land and building held in Charlotte, North Carolina, USA. Revenue from operations for the quarter at Rs 835.7 crore grew by 14.86percentover the corresponding period last fiscal.

Cochin Shipyard Q4 profit plunges 86%

Cochin Shipyard's consolidated profit tumbled by 86 percent year-on-year to Rs 39.3 crore for the quarter ended March FY23 on weak operating and topline numbers. Revenue from operations fell by 50.5percentto Rs 600 crore compared to the same period last year.

BSE Oil & Gas index up 1 percent led by Adani Total Gas, GAIL India, IOC

Godawari Power slumps 5% as March quarter numbers disappoint

The shares of Godawari Power & Ispat slumped 5 percent on May 22, reacting to a disappointing performance in the March quarter of the financial year 2022-23.

The company’s consolidated revenue from operations declined to Rs 1,316.59 crore from Rs 1,437.93 crore in the year-ago quarter last year. Profit from continuing operations came in at Rs 169.57 crore in the March quarter, down from Rs 406.52 crore in the year-ago period, the company said on May 20.

Market at 12 PM

Benchmark indices were trading higher with Nifty at 18300.

The Sensex was up 211.94 points or 0.34 percentat 61,941.62, and the Nifty was up 97.30 points or 0.53 percent at 18,300.70. About 1,641 shares advanced, 1,559 shares declined, and 149 shares were unchanged.

Sun TV Network Q4 Results

Sun TV Network has reported a 7.3percentyear-on-year decline in consolidated profit at Rs 380.2 crore for the March FY23 quarter, impacted by weak topline and operating numbers. Revenue for the quarter dropped 2 percentto Rs 840.4 crore compared to the year-ago period.

Sun TV Network was quoting at Rs 431.35, up Rs 5.45, or 1.28 percent.

NLC India Q4 profit surges 153% YoY to Rs 830 crore; stock rises 6%

NLC India has reported a massive 153 percentyear-on-year increase in consolidated profit at Rs 830 crore for the quarter ended March FY23, impacted by healthy topline and operating income.

Revenue from operations for the quarter increased by 66.4percentto Rs 5,134 crore compared to the similar period last fiscal.

Bharat Electronics Q4 profit jumps 20%

Bharat Electronics has registered nearly 20 percentyear-on-year growth in consolidated profit at Rs 1,382 crore for the quarter ended March FY23, driven by healthy operating numbers. Revenue grew by 2.2percentto Rs 6,479.1 crore compared to the same period last year.