Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
We did not break 14200-14250 on a closing basis and hence the onset of a bear market cannot be confirmed. This patch is a good support for the Nifty and if we disrespect this, we can drift to 13800-13900. Since the upside is capped at 15000, a view on the long side can be only be taken post that level. Until then the index will remain sideways with a downward bias.
Yash Gupta Equity Research Associate, Angel Broking:
Jubilant Pharma Limited, a subsidiary of Jubilant Pharmova Limited, announces successful completion of safety and pharmacokinetic/absorption studies in animals and healthy human volunteers in India using a novel oral formulation of remdesivir against the commercially available injectable formulation of remdesivir.
Jubilant has sought authorization for additional studies for this novel oral formulation from the Drug Controller General of India (DCGI). Jubilant is hoping to provide an affordable, more convenient, easy-to-administer and potentially effective treatment option for COVID-19 patients.
The proposed oral treatment is expected to be for 5 days, a duration similar to the injectable dosage form. Remdesivir is the first and the only antiviral drug fully approved by the US FDA for the treatment of patients with COVID-19 requiring hospitalization.
We expect this to be a very short-term benefit for the company, as we expect more players to develop this medicine for covid 19 and once cases in India come down the use of remdesivir will also come down.
Naveen Kulkarni, Chief Investment Officer, Axis Securities:
The economic impact of the current rise in covid cases will be significant in the short term as it will lead to lockdowns across many states in the country. However, the demand is never fully destroyed, and will come back.
For many industries like travel, tourism, restaurants and hotels the impact will be significant. IT, Pharma, Metals, Telecom and Consumer staples will be less impacted and provide support. Discretionary consumption will be the most impacted sector and will see challenges.
Rupee Close
:Indian rupee ended lower by 52 paise at 74.87per dollar,amid Indian benchmark indices shedover1.5percent on concern over rising Covid cases nationwide.
It opened 43 paise lower at 74.78 per dollar against previous close of 74.35 and traded in the range of 74.77-75.04.
Market Close:
Benchmark indices ended lower on April 19 on the back of fresh covid concern.
At close, the Sensex was down 882.61 points or 1.81% at 47949.42, and the Nifty was down 258.40 points or 1.77% at 14359.50. About 723 shares have advanced, 2091 shares declined, and 157 shares are unchanged.
Adani Ports, Power Grid Corp, ONGC, Hero MotoCorp and Bajaj Finserv were among major losers on the Nifty, while gainers were Dr Reddy's Laboratories, Cipla, Britannia Industries, Wipro and Infosys.
Nifty PSU Bank shed over 4 percent, while auto, infra, metal and energy indices slipped 1-2 percent. BSE Midcap and Smallcap indices shed 1.5-2 percent.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed some swift recovery from its short-term support around the Nifty50 Index level of 14300. The expected level should range between 14300 and 14500, and it’s going to be crucial for the short-term market scenario to hold above the 14300 levels.
The market breadth to recover significantly after a gap down opening that causes it to turn deep negative, while other momentum indicators are recovering from oversold reading, market to consolidate in the short term.
Bajaj Consumer Care Q4:
The company has posted consolidated net profit at Rs 54.7 crore against Rs 23.3 crore, YoY and Rs 57.3 crore, QoQ.
The revenue was up 39% at Rs 249 crore versus Rs 179 crore.
Bajaj Consumer Care touched a 52-week high of Rs 323.50 and was quoting at Rs 302.25, down Rs 3.15, or 1.03 percent on the BSE.
Subex to launch new AI Automation platform:
Subex will be launching the new AI automation platform on April 22, 2021 and specific details of the same will be unveiled on the launch day, company said in the release.
The share touched a 52-week high of Rs 53.80 and trading at Rs 52.20, up Rs 6.85, or 15.10 percent on the BSE.
BSE Realty index shed 3 percent dragged by the Indiabulls Real Estate, DLF, Prestige Estate
Rupee Updates:
Indian rupeeistrading lower at 74.84per dollar,amid Indian benchmark indices shed 2 percent on concern over rising Covid cases nationwide.It opened 43 paise lower at 74.78 per dollar against previous close of 74.35.
Caplin Point Laboratories gets final approval from USFDA:
Caplin Steriles, a subsidiary company of Caplin Point Laboratories, has been granted final approval from the United States Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Milrinone Lactate Injection USP, 10 mg/10 mL (1 mg/mL), 20 mg/20 mL (1 mg/mL), 50 mg/50 mL (1 mg/mL), Single-dose vial presentation, a generic therapeutic equivalent version of (RLD), PRIMACOR Injection, 1 mg/mL, of Sanofi-Aventis U.S. LLC, as per company's release.
Caplin Point Laboratories was quoting at Rs 497.35, up Rs 31.15, or 6.68 percent on the BSE.
GE Shipping took delivery of secondhand Midsize Gas Carrier:
Great Eastern Shipping Company took delivery of a secondhand Midsize Gas Carrier “Jag Vikram” of about 35,188 cbm. The company had contracted to buy the vessel in Q4 FY21, company said in release to the exchanges.
Great Eastern Shipping Company was quoting at Rs 293.60, down Rs 5.20, or 1.74 percent on the BSE.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities:
Gold prices traded higher with COMEX spot gold prices were trading half a percent up at $1786 per ounce on Monday. Gold June future contract at MCX were trading up by 0.82% at Rs. 47740 per 10 grams by noon.
We expect gold prices to trade higher for the day with COMEX spot gold support lies at $1770 and resistance at $1800. MCX Gold June support lies at Rs. 47400 and resistance lies at Rs. 48000.
Market update: Sensex is down 881.69 points or 1.81% at 47950.34, and the Nifty fell 255.90 points or 1.75% at 14362.
European markets are trading in the green with FTSE up half a percent
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
: The rising cases of COVID have soured sentiments in the rupee. The result of which has been a broad-based depreciation in the Indian rupee. Inspite of a weak US dollar globally, rupee is under pressure. RBI is expected to be active and may intervene aggressively to curb volatility. Over the near term, we expect a range of 74.00 and 75.50.
Nimish Shah, Chief Investment Officer – Listed Investments, Waterfield Advisors:
April 2021 is surely different than the sudden fear that caught us in April 2020. This time round, the rate of case increase is so strong that one hopes that the rate of case decrease could also be as strong. People and markets are better prepared and know the devil that is causing the problem, unlike in April 2020.
We believe that a correction of up to 10% from the Nifty peak of 15200 would be a good support level - ie. levels of 13600-13700. However, now is the time to start stocking up as the downside is not likely to be as deep and long. The growth for FY 22 and FY 23 looks realistic and encouraging and this current period may not materially de-rail growth expectations.
One needs to be selective on stocks in sectors like auto, large private sector banks, large NBFCs, home improvements / electrical appliances companies, chemical, and pharma. Choose companies with good market share and consistent profitability, even if they are relatively more expensive.
Copenhagen Fintech announces collaboration with Infosys
Fintech innovation cluster Copenhagen Fintech announced a collaboration with Infosys to strengthen connections across the innovation ecosystem and support the development of new and compelling fintech solutions for the global financial services industry, Infosys said in its release.
Infosys was quoting at Rs 1,370.55, up Rs 18.00, or 1.33 percent on the BSE.
Gaurav Garg, Head of Research, CapitalVia Global Research:
The market opened with a huge gap down despite the positivity in the other Asian markets. Traders got worried, as the Shopping Centre Association of India (SCAI) said that businesses have been severely impacted, with the revenue falling by almost 50 percent due to localized lockdowns to prevent the spread of COVID-19 in the country. US markets are recovering fast and closed with another high. Asian markets were trading with positivity in the market following the positive global cues.
We expect the Indian market to trade in a consolidated range between 14200-14350. 14180-14200 will act as a support in the short term. If the market breaks the support range, we can expect the market to correct to the level of 13600. All major sectors other than the Health care sector are trading in red.
Nifty Bank index fell 4 percent dragged by the RBL Bank, AU Small Finance Bank, IDFC First Bank:
Heena Naik, Research Analyst - Currency, Angel Broking:
According to the RBI data, the Indian foreign exchange reserves surged to $581.21 billion from $576.87 billion in the week ended April 9. FPI’s have pulled out a net Rs 4,615 crore from Indian markets in April so far amid a sharp escalation in covid-19 cases and strict restrictions imposed by various states. Japan's exports posted their strongest growth in more than three years in Mar’21 led by a surge in China-bound shipments.
US Dollar Index plunged towards 91.48 levels after the US Feds reiterated its view that any spike in inflation was likely to be temporary. Oil prices have fallen on concerns that surging caseloads of coronavirus infections in the world could disrupt economic activities and hit the global demand for the crude.
Sensex and Nifty opened in the red after another surge in coronavirus infections over the weekend increased the risk of more broad-based lockdowns. Indian rupee is likely to weaken tracking the bearish sentiments in local equities coupled with opportunistic dollar buying by the importers and banks at lower levels.
Saurabh Joshi, Research Analyst, Marwadi Shares and Finance:
We have issued a Not Rated IPO note on Macrotech Developers and as expected the IPO opens at discount to the issue price. The company has a substantial amount of debt and contingent liabilities and the impact of covid on the business is still uncertain.
Moreover, the company is hugely focused on the MMR region which is worst affected by the covid, hence we advise the investors of this IPO to exit in case of any bounceback in the share price.
HCL Tech signs multi-million dollar contract with Japanese firm
HCL Technologies has signed a multi-million dollar digital transformation and hybrid cloud contract with UD Trucks, a leading Japanese commercial vehicle solutions provider.
HCL will deliver end-to-end IT transformation spanning across digital platforms, agile digital application development, migration, support and maintenance and digital workplace services, company said in its release.
HCL Technologies was quoting at Rs 1,016.00, up Rs 3.45, or 0.34 percent on the BSE.
BSE Auto index slipped 3 percent dragged by the Bajaj Auto, Eicher Motors, Ashok Leyland
Anu V Pai, Commodity Research Analyst:
Sentiments were mudded in the natural rubber markets in the week gone by. In the overseas market, it pared losses and posted gains, while in the Indian market it ended down for the week. The surge in Covid-19 infections continued to weigh on the overall market sentiments. However, upbeat data from China and the rise in crude oil prices lent support.
For the week ahead, the outlook seems to be a bit hazy with sentiments being mixed. Ongoing lean production phase and sanguine data may continue to lend support. However, the simmering Covid-19 crisis and movement in crude oils will influence the market directions.
Rupee Updates:
Indian rupee has extended the early losses and trading near the day's low at 74.90 per dollar, amid Indian benchmark indices shed 2 percent on rising Covid cases nationwide.
It opened 43 paise lower at 74.78 per dollar against previous close of 74.35.
BSE Midcap is down 2 percent dragged by AU Small Finance Bank, RBL Bank and Bank of India
Anand Rathi on Inox Leisure:
After trailing PVR for several years, we find Inox best suited to make the most of the situation as it has a strong balance sheet with Rs 1.3 billion net cash, less cash burn/month till normalcy returns and has grown faster over FY17-FY20 on several key operating parameters: ATP (4%, vs. PVR’s 1% CAGR), spend/ head (9% vs. 7%) and ad revenue/screen (12% vs. 4%). All these factors enable Inox to expand faster in the next phase of the growth cycle and reduce the gap in the footprint with PVR (~643 screens, vs. PVR’s ~844). We introduce our FY23e and maintain our buy rating with a new target price of Rs 340.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
: Markets are finding it hard to establish a trend. It is not being able to get past 14,900-15,000 on the upside and neither is it being able to break the 14,200 level on a closing basis. If we break 14,200 on a closing basis, we can slide to 13,800-13,900. For the time being, the upside seems to be capped at 15,000.
Kshitij
Purohit, Product Manager, Currency & Commodities at CapitalVia Global Research:The USD/INR Future traded firm at 74.70 against dollar. The currency pair is trending firm against the dollar due to the record high covid cases in India. The increase in covid-19 cases in India has dampened investor sentiment and the expectation is that rupee to steadily weaken USD/INR opened on a negative note on Monday morning and is moving in a bullish trend.
The rupee is expected to trade in a zigzag pattern with a trading range of 74.50 to 75.50 for further sessions, with a downside bias.
Any rupee recovery above the 74.50 level would be unsustainable and serve as a strong resistance level. It is unlikely that the 75.50 mark will be broken in the near future. USDINR future is trading near 74.70 levels and expected to trade in the range of 74.40 – 74.90 for the day.
Market Updates
Benchmark indices slipped over 2 percent with Nifty below 14300.
At 10:27 IST, the Sensex was down 1,168.60 points or 2.39% at 47663.43, and the Nifty was down 337.40 points or 2.31% at 14280.50. About 465 shares have advanced, 2001 shares declined, and 124 shares are unchanged.
Macrotech Developers share price debuts at discount to issue price:
Mumbai-based realty company Macrotech Developers share price opened the first trade with 10 percent discount to issue price on April 19, which was on expected lines given the volatility in equity markets and muted IPO subscription.
The stock price started off the first session at Rs 439 on the BSE, against issue price of Rs 486.
Rupee Opens:
Indian rupee slipped in the early tradeon Monday. It opened 43 paiselowerat 74.78per dollar against previous close of 74.35, amid selling seen in the domestic equity market.
On April 16 the domestic currency ended higher at 74.35 per dollar against Thursday's close of 74.92.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
The health crisis India is going through and localised lockdowns & restrictions on economic activity warrant a market correction. The targets of around 11% GDP growth and above 30% earnings growth for FY 22 that the market had assumed pre-second wave are likely to fall short. The steady rise in test positivity cases and the steady decline in recovery rates are areas of serious concern. But, this negativity need not reflect fully in the market since the global clues are positive.
The sharp recovery in global growth led by the US and China augur well for markets globally. The decline in US 10-year yield from the recent high of 1.75% to 1.56% presently is a major relief & support to markets. Bulls would be reluctant to go long; bears would hesitate to go short massively. Time to wait & watch.
Mindtree share price rises 2% post Q4 earnings
The company reported 2.8 percent sequential decline in consolidated profit at Rs 317.3 crore for the quarter ended March 2021.
Consolidated revenue grew by 4.2 percent quarter-on-quarter to Rs 2,109.3 crore and the dollar revenue at $288.2 million was up by 5.2 percent from the previous quarter.
Mindtree was quoting at Rs 2,118.45, up Rs 50.85, or 2.46 percent on the BSE.
HDFC Bank slips 3% post Q4 numbers:
HDFC Bank reported an 18.2 percent year-on-year (YoY) growth in its standalone profit at Rs 8,186.5 crore for the quarter ended March 2021 (Q4FY21) on account of low base in the corresponding period. The profit in Q4FY20 stood at Rs 6,927.69 crore.
HDFC Bank was quoting at Rs 1,380.35, down Rs 48.10, or 3.37 percent on the BSE.
ICICI Direct:
Due to weakness in the Dollar index, the rupee started strengthening once again from the hurdle of 75.5. However, fears that a surge in domestic Covid-19 cases and lockdown in some states could hamper economic recovery could dent the money market
The dollar-rupee April contract on the NSE was at Rs 74.55 in the last session. The open interest increased 6% for the April series.
Nifty PSU Bank index shed 5 percent dragged by the Bank of India, Bank of Maharashtra, Canara Bank
All stocks on BSE Sensex in the red
Govt bans supply of oxygen to industries:
The Centre on April 18 banned the supply of oxygen for industrial purposes except in nine specified industries in view of shortage of the essential public health commodity in several states amid a spike in COVID-19 infections.
The decision will come into effect from April 22.
Market Opens:
Indian indices opened weak on April 19 with Nifty below 14300.
At 09:18 IST, the Sensex was down 1,061.72 points or 2.17% at 47770.31, and the Nifty was down 359.90 points or 2.46% at 14258. About 183 shares have advanced, 615 shares declined, and 53 shares are unchanged.
Gold firms as softer US dollar, yields lift appeal:
Gold edged higher on Monday, hovering near a seven-week peak hit in the previous session, as a weaker dollar and lower U.S. Treasury yields supported prices.
ICICI Direct:
Indian markets are likely to see a gap down opening tracking continuously rising Covid-19 cases in the country despite positive global cues. However, global news flows and sector specific development will be key monitorables. US markets ended higher amid continued optimism over upbeat economic data from the US & China and corporate earnings results.
Market at pre-open:
Benchmark indices are trading weak in the pre-opening session with Nifty below 14400.
At 09:02 IST, the Sensex was down 491.98 points or 1.01% at 48340.05, and the Nifty was down 276.50 points or 1.89% at 14341.40.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services:
Indian markets are likely to be highly volatile and would be an interplay of resurgence in COVID-19 cases and the pace of vaccination. As availability of more vaccines and the pace of vaccination picks-up, we expect the narrative to gradually shift from Covid-19 and restrictions back to growth/cyclical recovery and rebound corporate earnings. We believe this correction is a buying opportunity and it doesn’t change the medium term thesis. Valuations at 20x FY22 Nifty EPS, are not exorbitantly expensive either given the benign equity-bond yields metric and turn in earnings cycle after a decade-long tepid earnings delivery.