Closing Bell: Nifty ends above 11,150, Sensex jumps 511 pts; OMCs gain

Taking Stock: COVID vaccine hopes fuel rally on D-Street; Sensex vaults 500 points

Sectorally, the S&P BSE Energy index rose 2.7 percent, S&P BSE Oil & Gas index was up 2.7 percent and the S&P BSE Bankex closed with gains of 2.3 percent.... Read More

The Nifty continued with its winning streak for yet another day. The index posted a positive daily close for the fifth consecutive session. The index is rallying along with the daily upper Bollinger Band, which itself is in an expansion mode. On the way up, the Nifty is forming runaway gaps on the daily chart. The recent one i.e. 11113 - 11037 will act as a near term support zone for any minor degree dip. Going ahead, 11280 will be the key level on the higher side to keep a tab on.

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FMCG major Hindustan Unilever on July 21 has reported a profit at Rs 1,881 crore for the quarter ended June 2020, compared to Rs 1,755 crore in same period last year.

Revenue from operations during the quarter stood at Rs 10,406 crore, increasing from Rs 9,984 crore in corresponding period last year.

Markets are inching higher with every passing day and Nifty may face the next hurdle around 11,250 level. The up move in the banking index is now helping the index to sustain at the higher levels while others are witnessing rotational buying. Traders should maintain their focus on trade selection and position management.

The markets held fort the entire day and also managed to close around the highest point of the day. While we do not rule out profit booking sessions, the overall trend of the market continues to remain bullish. Hence, if we see a slip in the markets, it would be a good opportunity to enter at lower levels to sell at higher levels. The support for the Nifty is now upgraded to 10800.

Indian equity benchmarks continued to rise for the fifth consecutive day on July 21. At close, the Nifty was up 140.10 points or 1.27% at 11162.30. Benchmark indices remained at their highest level since March 5, 2020. The Nifty 50 index has closed up in 12 out of the last 17 trading sessions. Broader markets underperformed in today's session.

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Benchmark indices again showcased volatility but showcased positive momentum, in sync with global cues. EU leaders have finally reached an agreement on a massive stimulus plan to combat the pandemic impact. News about successful progression of Covid-19 Vaccine trials also boosted the global markets while positive quarterly earnings results, especially from the leaders, provided an additional support to the Indian markets. Although the market uptrend remains intact, investors are advised to be cautious since it seems to be in overvalued territory. Result-heavy day today, and stock specific commentary will be looked at.

Bulls were in firm control today as heavyweights Reliance & HDFC held up well with gains. PSE Index led by Power Grid and Oil & Gas stocks were the smart gainers as their moves had an overall positive effect on PSU stocks.

Bulls remained in control on the Dalal Street for the fifth consecutive day on July 21 pushed the Sensex close to the 38,000 intraday and helped Nifty to close comfortably above 11,150.

At close, the Sensex was up 511.34 points or 1.37% at 37930.33, and the Nifty was up 140.10 points or 1.27% at 11162.30. About 1427 shares have advanced, 1223 shares declined, and 155 shares are unchanged.

Power Grid Corp, IOC, BPCL, Eicher Motors and Maruti Suzuki were among major gainers on the Nifty, while losers included Bajaj Finance, Bajaj Finserv, Britannia, Bharti Infratel and Cipla.

Mixed trend witnessed on the sectoral front with auto, bank, energy, metal and infra sectors ended in the green, while pharma and FMCG stocks remained under pressure.

The company posted net loss at Rs 3.6 crore in the quarter ended June 2020 versus profit of Rs 9.4 crore in a year ago period. Revenue of the company was down 64.8% at Rs 25.1 crore versus Rs 71.4 crore and EBITDA loss was at Rs 4.3 crore versus EBITDA of Rs 13.5 crore, reported CNBC-TV18.

Bajaj finance reported a mixed set of numbers considering lockdown led lower retail and business activity. AUM grew 7% YoY however declined 6% QoQ. NII grew by 10% in line with AUM growth. Controlled opex helped Bajaj finance to report the growth of 25% in Pre provision profit. Spike in provision of almost 2x of Q1FY20 impacted profitability.

On the asset quality front, lower slippages and write-off led to a decline in GNPA from 1.6% in Q1FY20 to 1.4% in Q1FY21. Moratorium books reduced from 27% to 15%. Credit cost guidance has been revised from Rs 5400 – Rs 5700 crore to Rs 6000- Rs 6300 crpre. Given the lockdown, the Company decided to convert some of its existing customers with no overdue and good repayment track record from the term loan to a Flexi loan. In Q1 FY21, the company converted Rs 8,600 crore of term loans into Flexi loans.

Private life insurer ICICI Prudential Life Insurance's Q1 FY21 net profit was flat at Rs 286.86 crore. The insurer had posted a profit after tax of Rs 284.64 crore in the year-ago period.

The annualised premium equivalent was Rs 823 crore in Q1 compared to Rs 1,470 crore in the year-ago period.