Closing Bell: Market closes near day's high; IT, financials shine, pharma drags

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

Indian markets outperformed their Asian peers as Sensex closed above the 60,000 mark on strong buying in financial stocks after earnings from ICICI Bank and Reliance Industries matched street expectations. After witnessing a sluggish trend over the past few sessions, fresh buying emerged ahead of the monthly F&O expiry later this week.

While the markets may still be choppy and volatile, we may see select bouts of buying going ahead. Technically, on daily and intraday charts the Nifty has formed a reversal formation and on daily charts it has also formed a reversal candle which is largely positive. For the bulls now, 17,700-17,650 would act as a key support zone. Above this,the index could retest the level of 17,825-17,850. On the flip side, below 17,650, traders may prefer to exit from the trading long positions.

Santosh Meena, Head of Research, Swastika Investmart:

Contrary to last week, this week started on a strong footing thanks to broad-based buying in banking names post-ICICI Bank results. HDFC Twins also supported the market after some relief from the RBI on priority sector lending. The headline indices outperformed, while the broader market slightly underperformed after last week's outperformance. This week is an earning-heavy week, and we also have April's F&O expiration; therefore, volatility may increase.

Technically, both Nifty and Bank Nifty witnessed a breakout of the bullish flag formation, where 17,800–17,860 is an immediate resistance zone for the Nifty; above this, we can expect a rally towards the 18,100–18,200 zone. On the downside, the 200-daily moving averagearound 17,600 will act as a strong support level.

Bank Nifty is near the critical supply zone of 42,700–43,000; above this, we can expect a rally towards 43,500 and 44,000 levels. On the downside, 42,000 has become a near-term floor.

Vinod Nair, Head of Research at Geojit Financial Services:

The positive market sentiment in the domestic market was boosted by strong earnings reported by heavyweights. This led to a reversal in the cautiousness from the initial below-expectation Q4 results. However, the weak global sentiment did raise some concerns midway. But the banking sector played a key role in this upward trend, with sector majors reporting strong earnings.

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

The Nifty opened on a flat note and witnessed a consolidation during the first half of the trading session. The action picked up during the second half and Nifty managed to close above 17,700 which indicates that it has started the next leg of upmove. On the daily chart, the Nifty has managed to hold on to the lower end of the rising channel and the 200-day moving average (17,615) which is a bullish sign. The daily momentum indicator has a negative crossover and since prices have resumed their up move, it is likely that the momentum indicator shall provide a positive crossover over the next few trading sessions. Considering the above parameters, we change the short-term outlook to positive and expect the Nifty to target levels of 18y,100. In terms of levels, 17,620 – 17,600 shall act as a crucial support zone while 17,860 – 17,900 is the immediate hurdle zone for the Nifty.

Taking stock: Nifty rises 119 point to close just shy 17,750; Sensex jumps 410 points

After a week of weakness, the benchmark indices made a comeback on April 24 following some strong earnings announcements by private lenders over the weekend and today that lifted the overall mood on Dalal Street.

During the last week, most market participants were cautious after the IT sector earnings were way below expectations. Meanwhile, hawkish commentary by some of the US central bank office bearers also did not help the bulls. However, some low level buying eventually came in IT and bank indices on April 24.

The Nifty 50 index rose 0.68 percent or 119.35 points to 17,743.40 and the BSE flagship Sensex also inched higher by 0.67 percent or 410.04 points to 60,056.10.

Market at close

Benchmark indices settled the session near the day's high, with Nifty around 17,750.

The Sensex settled 401.04 points or 0.67 percent higher at 60,056.10, and the Nifty gained119.40 points or 0.68 percent at 17,743.40. About 1,847 shares advanced, 1,643 shares declined, and 159 shares were unchanged.

Among sectors, information technology, and financials were major gainers whilepharmafaced selling pressure.

The Nifty Midcap 100 index underperformed the headline Nifty 50, but endedhigher. The Nifty Smallcapindex also ended in the green.

CLSA View on Reliance Industries

The brokerage house maintained the 'buy' rating on the stock with a target of Rs 2,970 per share. The Q4 consolidated PAT was ahead of estimates, helped by a notably lower-than-expected tax rate. Consolidated EBITDA was 1 percent ahead of estimates, with a 7 percent miss in retail EBITDA offset by a beat in O2C, while Jio had an in-line quarter.

It was another quarter of big expansion for retail in Q4, implying a huge 58 percent rise in retail selling space in FY23. However, for FY23, FCF dipped to negative driven by a large capex of $17 billion led by retail and telecom.

The broking firm raises the 24/25 EPS estimates by 3 percent/4 percent.

Reliance Industries was quoting at Rs 2,356.90, up Rs 8.00, or 0.34 percen on the BSE.

Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas

Indian Rupee appreciated on Monday on strong domestic equities and a soft US Dollar. Weak tone in crude oil prices also supported Rupee. However, FII outflows capped sharp gains. US Dollar declined amid recession concerns in US while expectations of a hawkish Fed supported the greenback at lower levels. Upbeat PMI data from US cushioned sharp fall in US Dollar on Friday.

We expect Indian Rupee to trade with a positive tone on easing global crude oil prices and positive domestic equities. Dollar may continue to remain weak as overall economic data continues to remain largely weak, leading to increasing concerns over recession. However, hawkish sentiments from FOMC meeting may weigh on risk assets, which may put downside pressure on Rupee at higher levels.

Selling pressure from FIIs may also weigh on Rupee at higher levels. Important data from US for the week is US consumer confidence and Advanced GDP, which are expected weaker than previous reading. USDINR spot price is expected to trade in a range of Rs 81.50 to Rs 82.30 in the near term.

Market at 3 PM

Benchmark indices extended the gains and were trading at the day's high with Nifty above 17,700 and Sensex at 60,000.

The Sensex was up 355.54 points or 0.60 percentat 60,010.60, and the Nifty was up 104.30 points or 0.59percentat 17,728.30. About 1,695 shares advanced, 1,614 shares declined, and 137 shares were unchanged.

Goldman Sachs View on ICICI Bank

Goldman Sachs has kept the 'buy' rating on the stock with a target of Rs 1,100 per share. The bank's operational performance was in-line, and market share gains are expected to continue with a strong pre-provision operating profit to return on assets (PPOP-ROA).

It believes that the core PPOP growth could likely slowdown in FY24E/FY25E. This was one of the reasons for taking ICICI Bank off its Conviction List recently, even though it remains a buy.

ICICI Bank was quoting at Rs 904, up Rs 19.80, or 2.24 percent on the BSE.

Gujarat Natural Resources subsidiary completes well drilling campaign at Kanwara oil fields

Gujarat Natural Resources' subsidiary GNRL Oil & Gas has completed the drilling campaign for its three wells (K11, K14 and K15) at Kanwara oil fields. At present, one of the well is tied back to the existing production set up and producing approximately 180 barrels per day of oil and 7,000 scmd gas.

The other two wells are on initial production testing stage and efforts are being made to put them on production by end of April, 2023 after upgrading production facilities.

Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas

WTI crude oil recorded its first weekly decline of 5.6 percent, for the month asrenewed concerns over rate hikes from global central banks to tackle inflation resurfaced. The core inflation has edged higher due to rising rents and surging food prices.

On the other hand, the economic data from US & Eurozone showed the persistent weakness of the underlying economy. Global oil supplies are showing signs of growth with Russia’s crude exports bouncing back above 3 million barrels a day last week, while in global fuel markets, gasoline and diesel are slowing at a time when they should be ramping up or peaking.

The short-term price outlook could be choppy over lack of clarity on rates, but the longer-term prospect remainsbullish driven by OPEC+ cuts and China’s fuel demand recovery in the second half of 2023. Expect oil prices to trade in the range of USD 74-80 and the weaker economic data may push oil to test the support of USD 75 level this week.

BSE Healthcare index shed 0.6 percent dragged by Take Solutions, Healthcare Global, Piramal Pharma

IndusInd Bank posts 49.8% jump in Q4 net profit at Rs 2040.5 crore

IndusInd Bank has posted 49.8 percent jump in its Q4 net profit at Rs 2040.5 crore versus Rs 1,361.4 crore, YoY.

Net Interest Income was up 17.1% at Rs 4,669.4 crore against Rs 3,985.2 crore, YoY.

Gross NPA at 1.98% against 2.06% and Net NPA at 0.59% versus 0.62%, QoQ.

IIFL Finance repays $400 million maiden dollar bonds issue on maturity

IIFL Finance has fully repaid its $400 million maiden dollar bonds issue on maturity, i.e. April 2023. The company had raised $400 million through a medium-term note (MTN) program in February 2020.

IIFL Finance was quoting at Rs 459.95, up Rs 6.65, or 1.47 percent on the BSE.

Kotak Institutional Equities View on Reliance Industries

Kotak Institutional Equities keeps 'buy' rating and a target of Rs 2,800 per share. The report notes that the Q4 consolidated EBITDA was 5 percent ahead of estimates, with the beat mainly due to O2C. Digital services fared well, while retail and E&P were marginally below expectations.

The firm suggests that a strong petrochemical recovery should cushion O2C earnings, and capex further rose to Rs 44,400 crore in Q4. However, reported net debt was flat quarter-over-quarter. It believes that with 5G capex likely peaking soon, and believes that net debt has likely peaked.

Geojit View on Mankind Pharma:

At the upper price band of Rs 1,080, Mankind Pharma is available at a P/E of 30x (FY22), which appears reasonably priced compared to peers. Considering under-penetration of healthcare services and lower consumer expenditure in healthcare in India, Mankind Pharma’s focus on chronic therapeutic areas, emphasis on increasing penetration in metro and Class I cities, growth in consumer healthcare business, good financial performance and strong distribution network, we assign a “Subscribe” rating on a long term basis.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:

The decline in crude prices has a two-dimensional positive impact for India. One, India’s trade and current account deficit will decline, boosting India’s macros. Also, this is positive for the rupee and, thereby, favourable for increased portfolio inflows into India.

From the micro perspective, segments like paints, adhesives, tyres and aviation will benefit from lower input costs. If the decline in crude prices sustain it will boost the bottom line of these companies using crude derivatives as inputs. Their stocks also should respond positively. But it is important to understand that the decline in crude prices is sustainable and is not a one off.

Airtel partners with Secure Meters to deploy 1.3 million NB-IoT powered smart meters in Bihar

Bharti Airtel announced its partnership with Secure Meters for deploying Narrow Band (NB-IoT) services that will power 1.3 million homes in Bihar through a smart meter solution.

This deployment will be India’s first NB-IoT solution on a narrow band with a fall-back option that will work on 2G and 4G and ensure real-time connectivity and uninterrupted transfer of critical data.

Bharti Airtel was quoting at Rs 759.10, down Rs 6.05, or 0.79 percent on the BSE.

Market at 2 PM

Benchmark indices were trading near the day's high with Nifty around 17700.

The Sensex was up 262.96 points or 0.44 percentat 59,918.02, and the Nifty was up 72.50 points or 0.41percentat 17,696.50. About 1,714 shares advanced, 1,565 shares declined, and 141 shares were unchanged.

Ajmera Realty arm acquires land worth Rs 76 crore in Mumbai

Ajmera Realty & Infra India's subsidiary Shree Yogi Realcon has acquired 5,017 square meter land worth Rs 76 crore at Vikhroli, Mumbai, from Tata Communications. The acquisition is intended for the residential development with an estimated gross sales value of Rs 550 crore.

Bank of Maharashtra net profit surges 136% in March quarter

Bank of Maharashtra reported a net profit of Rs 840 crore in March quarter, up 136 percent from Rs 355.23 crore a year ago. Net interest income rose 35.66 percent to Rs 2,186.94 crore. Provisions jumped 62 percent year on year to Rs 945 crore. The lender said its board approved raising Rs 7,500 crore via follow-on public offerings or QIP or bonds.

CLSA View on ICICI Bank

The broking firm has kept 'buy' rating on the stock and raised target of Rs 1,200 per share. The bank delivered an impeccable Q4, with core pre-provision operating profit (PPOP) growth driven by another 25 basis points sequentially/19 percent on year of NIM expansion. Management has indicated that it does not see any growth or deposit challenges.

The bank plans to use its high profitability phase to invest in more branches in FY24. Its RoRWA (return on risk-weighted assets) of 3.1-3.2 percentis best in class.

The earnings multiples of 14x/12x FY24/25CL are undemanding.

Nifty PSU Bank index up 1 percent led by Punjab and Sind Bank, Bank of Maharashtra, UCO Bank

Dalmia Bharat subsidiary commences production at second cement line at Bokaro

Dalmia Bharat's subsidiary Dalmia Cement (Bharat) has commenced commercial production at its second cement line at Bokaro, in Jharkhand Cement Works (JCW2), with capacity of 2.5 million tonne. With addition of this line 2 at JCW2, total cement capacity of Dalmia Cement (Bharat) and its subsidiaries has been enhanced to 41.1 million tonnes.

Dalmia Bharat was quoting at Rs 1,935.85, up Rs 14.25, or 0.74 percent.

CLSA View on ICICI Bank

The broking firm has kept 'buy' rating on the stock and raised target of Rs 1,200 per share. The bank delivered an impeccable Q4, with core pre-provision operating profit (PPOP) growth driven by another 25 basis points QoQ/19 percent YoY of NIM expansion. Management has indicated that it does not see any growth or deposit challenges.

The bank plans to use its high profitability phase to invest in more branches in FY24. Its RoRWA (return on risk-weighted assets) of 3.1-3.2 percentis best in class.

The earnings multiples of 14x/12x FY24/25CL are undemanding.

Ami Organics shares surge 4% on plans to acquire 55% in Baba Fine Chemicals

Ami Organics shares jumped over 4 percent in early trade on April 24 on the company's plan to acquire 55 percent stake in Baba Fine Chemicals.

Ami Organics will pay Rs 68.21 crore for the deal, expected to completed in six months from approval.

Baba Fine Chemicals makes custom specialty chemicals used in the semiconductor industry. It reported a revenue of Rs 47.07 crore in FY23, up 29 percent over the previous year.

Vedanta Resources paid all maturing loans, bonds due April 2023 and reduces gross debt to USD 6.8 billion from USD 7.8 billion. Vedanta Resources sees further deleveraging in FY24: Bloomberg    

Vedanta was quoting at Rs 274.85, down Rs 1.95, or 0.70 percent.

Market at 1 PM

Benchmark indices were trading near the day's high with Nifty around 17,700.

The Sensex was up 193.33 points or 0.32 percentat 59,848.39, and the Nifty was up 52.20 points or 0.30 percent at 17,676.20. About 1,674 shares advanced, 1,559 shares declined, and 146 shares were unchanged.

Shree Cement upgrades cement plant capacity in Jharkhand

Shree Cement has completed the capacity up-gradation of its plant at Saraikela in Jharkhand and started the commercial operation on April 21.

With this, the cement capacity of the said unit stands increased from 2.50 MTPA to 3.00 MTPA. The said capacity upgradation was achieved by process optimization, de-bottlenecking and productivity enhancement initiatives.

The cement capacity of the company now stands increased to 46.90 million ton per annum (MTPA).

Maruti Suzuki launches Fronx SUV starting at Rs 7.46 lakh

Maruti Suzuki India starts retail sales of its new sporty compact SUV, FRONX, from NEXA at a starting price of Rs 7,46,500.

Globally unveiled at Auto Expo’23, the FRONX features NEXA’s signature design language “Crafted Futurism”. Its new-age SUV appeal has received phenomenal response from customers and critics alike, both for design and performance.

Maruti Suzuki India was quoting at Rs 8,475.00, down Rs 82.80, or 0.97 percent.

Market

Benchmark indices were trading flat amid volatility.

The Sensex was up 3.83 points or 0.01 percentat 59,658.89, and the Nifty was up 1 points or 0.01percentat 17,625. About 1,646 shares advanced, 1,522 shares declined, and 159 shares were unchanged.

Bernstein View on ICICI Bank

Bernstein has given ICICI Bank an 'overweight' rating with a target of Rs 1,000 per share. The bank reported very strong Q4 results with EPS increasing by 30 percent YoY. The EPS growth at 36 percent higher, for the full year was also strong.

The EPS growth was largely led by the 31 percent growth in Net Interest Income (NII) and a decline in provision expenses. There was little to complain about this quarter, except a weak deposit growth relative to its larger peer.

Motilal Oswal View on Reliance Industries

The broking firm rolled its valuations to FY25. Using SOTP, they value the Refining and Petrochemical segments at 7.5x EV/EBITDA, arriving at a valuation of Rs 879/share for standalone business.

It ascribe an equity valuation of Rs 800 per share to RJio and Rs 1,354 per share to Reliance Retail, factoring in the recent stake sale. It reiterated the 'buy' rating with a target price of Rs 2,800.

Reliance Industries was quoting at Rs 2,351.10, up Rs 2.20, or 0.09 percent on the BSE.

BSE Realty index added 1 percent led by Indiabulls Real Estate, Sobha, Prestige Estate

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