Vinod Nair, Head of Research at Geojit Financial Services.
Strong buying interest from domestic investors and positive global trend resulted in a rebound. But volatility persists due to lockdown in China, Russia – Ukraine war and rate hikes.
However, dips are encouraging investors to accumulate quality stocks.
In a range bound market, it is advised to stick with sectors which are expected to be least impacted by inflation and rising bond yield, banking, IT, Pharma and themes like green energy.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty provided some breathing space to the bulls on April 26, who were beaten down in the last couple of sessions. With the bounce today, the index has filled up the recent gap area of 17054 – 17149. It halted near a falling trendline on the hourly chart, which is around 17200.
Additionally, the key daily moving averages are standing as barriers near 17200-17400 zone. The overall structure suggests that the index is trading near its short term hurdles & can slip down again in the coming sessions.
On the downside, the Nifty can test the swing low of 16824. This bearish stance holds true as long as the index trades below the swing high of 17415.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
While markets are in an oversold position, the falling yields in US markets and sliding crude oil prices came as a major respite for investors who partially covered their short positions. However, other concerns like China's coronavirus problems, likely interest rate hike woes in the US and the conflict between Russia & Ukraine will continue to be potential market spoilers.
Technically, once again the Nifty re-claimed the 17000 mark and succeeded to close above the 50-day SMA which is grossly positive for the markets.
After a promising pullback rally the index is trading near the 200-day SMA. For the short term traders, the support has shifted to 17100 from 17000. We are of the view that the intraday formation is positive and it is heading towards 17300-17350.
On the flip side, a quick intraday correction is not ruled out if the index trades below 17100 and below the same, it may retest the level of 17050-17000.
S Ranganathan, Head of Research at LKP securities:
Benchmark indices gained one and a half percentage today on expectations of record GST collections for April even as FII ownership dropped to multi-year lows at 20%.
Bajaj Group stocks, Autos & Real Estate stocks staged a smart recovery today with almost all sectoral indices ending in the Green.
FII's continue to be the second highest owners of Financials in India after the GOI despite the sector seeing the highest FII selling during the last one year.
The broader markets witnessed buying interest in Footwear stocks with half a dozen listed entities gaining share in both value for money as well as aspirational brands. Earnings expectations also buoyed stocks of state run enterprises of Gujarat in today's trade.
Market Close:
Benchmark indices broke two-day losing streak and ended higher with Nifty back to 17200 mark.
At close, the Sensex was up 776.72 points or 1.37% at 57,356.61, and the Nifty was up 246.80 points or 1.46% at 17,200.80. About 1886 shares have advanced, 1422 shares declined, and 108 shares are unchanged.
Bajaj Auto, Adani Ports, Hero MotoCorp, Power Grid Corp and M&M were among the top Nifty gainers while losers included ONGC, Apollo Hospitals, Axis Bank, Hindalco Industries and Asian Paints.
All the sectoral indices ended in the green with auto, realty and power indices gained 2-3 percent. BSE midcap and smallcap indices rose 0.7-1.6 percent.
Norbert Rücker, Head Economics and Next Generation Research, Julius Baer:
The oil market remains on a roller coaster ride with prices swinging up and down sharply. The concerns around China’s pandemic struggles and its economic impacts offset the fears surrounding the supply gap left by Russia’s shunned oil, which in fact seems less severe than initially feared.
Thanks to strategy storage releases, the petro-nations exiting their output restrictions, and the US shale business lifting production to fresh records, the oil market should ultimately cope well with Russia’s shortfall. We see lower prices in the longer term.
BSE Oil & Gas index rose 1 percent led by the Adani Total Gas, Reliance Industries, Indraprastha Gas
Sakshi Jain, Senior Research Analyst, Capitalvia Global Research:
On the strength of favourable signs from other Asian markets, the Dalal Street gained pace in the late morning session, with both the Sensex and Nifty retaining solid gains. Traders were upbeat, citing private projections claiming that real-time payments could improve India's GDP by $45.9 billion by 2026, with real-time payments transaction volumes expected to top 206 billion.
The Ministry of Commerce and Industry also stated that since 2014, there has been a five-fold increase in patent grants and a four-fold increase in trademark registrations.
Campus Activewear IPO Updates:
The initial public offering (IPO) of Campus Activewear, the largest sports and athleisure footwear brand in India, has received bids for 2.92 crore shares against IPO size of 3.36 crore shares, getting subscribed 87 percent on April 26, the first day of subscription.
Retail investors are at the fore, buying shares 1.48 times their portion, while non-institutional investors bid for 52 percent of their quota.
The part set aside for qualified institutional investors was subscribed 9 percent while employees have bought 51,153 of the two lakh shares reserved for them.
HDFC Life Insurance Company Q4 Earnings:
HDFC Life Insurance Company has posted Q4 consolidated net profit at Rs 506.2 crore against Rs 319.1 crore, YoY
The company’s Value of New Business (VNB) was at Rs 895 crore and VNB margin was at 29.3%.
HDFC Life Insurance Company was quoting at Rs 553.25, up Rs 13.00, or 2.41 percent on the BSE.
Buzzing
Private sector life insurer HDFC Life Insurance Company share price is trading in the green as the company is expected to report 12 percent on year growth in consolidated net profit on April 26 when it declares results for the quarter ended March.
Experts expect the company to report a net profit of Rs 355 crore on the back of its well-balanced product mix and a strong distribution mix as well as reasonable growth in annual premium equivalent (APE). On a sequential basis, the profit is expected to jump 30 percent.
Net premium income for the HDFC group company is expected to grow 12 percent on year to Rs 14,400-14,500 crore for the quarter. On a sequential basis, growth is expected to be 20 percent.Click To Read More
Market at 3 PM
Benchmark indices were trading higher in the final hour of the trading with Nifty above 17100.
The Sensex was up 507.81 points or 0.90% at 57087.70, and the Nifty was up 166.10 points or 0.98% at 17120.10. About 1757 shares have advanced, 1403 shares declined, and 103 shares are unchanged.
HAL & BEL Sign Contract for Indigenous IRST
HAI, and BEL signed a contract for co-development and co-production of Long Range Dual Band Infra-Red Search and Track System (IRST) for Su-30 MKI here today under the MAKE-II procedure of Defence Acquisition Procedure (DAP) 2020, as part of the 'Make in India' initiative.
Tata Teleservices Q4 earnings:
Tata Teleservices (Maharashtra) has posted net loss at Rs 280.6 crore in the quarter ended March 2022 against loss of Rs 302.3 crore in December 2021.
Revenue of the company was down 4% at Rs 272.8 crore versus Rs 284.2 crore, QoQ.
Earnings before interest, tax, depreciation, and amortization (EBITDA) was up 3.2% at Rs 120.7 crore versus Rs 117 crore and margin was at 44.3% versus 41.2%, QoQ.
Finance Ministry sources to CNBC-TV18
: GST collections likely to range between Rs 1.45-1.50 lakh crore in April. Government expects record high GST collections in April.
Sanofi India Q1
Net profit jumped 63.4% at Rs 238.4 crore against Rs 145.9 crore YoY. Revenue slipped 2.5% at Rs 707 crore against Rs 725.1 crore (YoY). EBITDA rose 2.7% at Rs 194.5 crore against Rs 149.4 crore(YoY). Margin at 27.5% against 26.1% YoY. The stock was trading atRs 7,102.45, up Rs 123.05, or 1.76 percent. It has touched an intraday high of Rs 7,200 and an intraday low of Rs 6,960.
European Markets Updates
Gateway Distriparks Q4
Net profit jumped 85.2% at Rs 85 crore against Rs 45.9 crore (YoY). Revenue was up 2.5% at Rs 359.1 crore against Rs 350.3 crore (YoY). EBITDA slipped 0.4% at Rs 94.9 crore against Rs 95.3 crore (YoY). EBITDA margin at 26.4% against 27.2% (YoY). The stock was trading atRs 76.95, down Rs 2.05, or 2.59 percent. It has touched an intraday high of Rs 80.40 and an intraday low of Rs 71.45.
The midcap index added over a percent led by Ruchi Soya Industries, Cholamandalam Investment and Adani Power
Atul Q4
: Net profit was down 22 percent at Rs 136.3 crore against Rs 175 crore (YoY). EBITDA was down 19.35% at Rs 205.2 crore against Rs 254.3 crore. EBITDA margin at 15% against 22.8% (YoY).
Market Update at 2 PM: Sensex is up 585.51 points or 1.03% at 57165.40, and the Nifty jumped 184.80 points or 1.09% at 17138.80.
Buzzing
Bajaj Finance is all set to report strong numbers for the quarter ended March aided by reopening of the economy.
The non-bank lender is expected to report a 75 percent year on year growth in net profit at Rs 2,353 crore aided by strong growth in topline and operating performance, according to five brokerages polled by Moneycontrol.
The net interest income is likely to soar 40 percent to Rs 5,383 crore driven by high disbursements. Bajaj Finance earlier this month said that new loans jumped 15 percent year on year. Click to Read More
U.S. Food and Drug Administration (USFDA) begins audit of Sun Pharma's Halol plant today, quoting Sources, reported CNBC-TV18.
Sun Pharmaceutical Industries was quoting at Rs 914.75, up Rs 14.95, or 1.66 percent on the BSE.
Nifty Pharma index gained 1 percent led by the Lupin, Glenmark Pharma, Alembic Pharmaceuticals
BSE Information Technology index added 1 percent supported by the Tanla Platforms, Kellton Tech Solutions, Ramco Systems:
Shareholders, creditors approves Scheme of Arrangement between Jindal Stainless and Jindal Stainless (Hisar)
The ongoing merger process of Jindal Stainless Limited (JSL) and Jindal Stainless (Hisar) Limited (JSHL) achieved another milestone. As per regulatory requirement, the Companies convened meetings of their shareholders and creditors for approving the Scheme of Arrangement between the two Companies. The Scheme was approved by an overwhelming majority, said Jindal Stainless in its press release.
Jindal Stainless was quoting at Rs 189.05, down Rs 1.65, or 0.87 percent and Jindal Stainless (Hisar) was quoting at Rs 369.55, down Rs 2.65, or 0.71 percent on the BSE.
Endurance Technologies Large Trade | 23.2 lakh shares (1.6% equity) worth Rs 270 crore change hands at Rs 1,162 per share.
Market at 1 PM
Benchmark indices erased some of the intraday gains with Nifty holding above 17000.
The Sensex was up 397.02 points or 0.70% at 56976.91, and the Nifty was up 135.30 points or 0.80% at 17089.30. About 1829 shares have advanced, 1263 shares declined, and 133 shares are unchanged.
S Ranganathan, Head of Research at LKP Securities:
Footwear stocks made a comeback today as the Rs 550 billion footwear market in India is witnessing consumerism once again aided by both Value for Money and Aspirational brands.
The sector is likely to see double-digit growth over the next few years aided by very low per capita consumption and should help the half a dozen listed footwear entities gain market share.
Steel Exchange India shares rises 4% on reporting 286% growth in Q4 profit
Steel Exchange India share price rose over 4 percent intraday on April 26 after company reported a massive 286 percent year-on-year growth in profit at Rs 112.5 crore driven by tax write-back in the quarter ended March 2022.
Revenue grew by 12 percent to Rs 367 crore compared to year-ago quarter
Buzzing:
Gujarat Mineral Development Corporation share price gained after company recorded consolidated profit at Rs 177 crore for the quarter ended March 2022, against loss of Rs 184.64 crore in same period last year, driven by topline.
Revenue grew by 87 percent year-on-year to Rs 1,057.3 crore in the same period.
Gujarat Mineral Development Corporation was quoting at Rs 205.20, up Rs 1.85, or 0.91 percent on the BSE.
Yesha Shah, Head of Equity Research, Samco Securities:
Given Campus’s strong brand image, its omnichannel presence, and that the sports & athleisure segment is expected to grow at a 25% CAGR till FY25, Campus has a strong runway for growth. Campus also is operationally efficient which is reflected in the fact that it managed to maintain healthy return ratios and EBITDA margins even during the pandemic phase.
Talking about the risks, the company faces near term headwinds as the prices of its key raw material have risen dramatically. Also, the fact that the cash flow from operations of the company for 9MFY22 are negative, even though there has been an impressive jump in the revenue and profits, is a cause of concern. Lastly, the post-issue P/E of ~78x based on FY22 annualized earnings indicates that the valuations are quite steep.
Considering these factors, the overall volatile market sentiment and that the long term prospects of the company seem positive, only investors with healthy risk appetite are advised to ‘Subscribe for Long Term’
CLSA view on L&T:
Research house CLSA has maintained buy rating on L&T with a target price of Rs 2,340 per share.
The company is well-positioned to transition into an ESG-compliant business. Its tech business is now India’s 5th largest tech franchise by marketcap at USD 24.6 billion, said CLSA.
The key question is when will L&T cleans-up corporate structure of tech business, it added.
Larsen & Toubro was quoting at Rs 1,669.25, up Rs 11.85, or 0.71 percent on the BSE.
Adani Group to acquire a controlling stake in Ambuja Cements from Holcim
Sources say Adani Group could sign an agreement to acquire a controlling stake in Ambuja Cements from Holcim, as soon as in the coming days: Bloomberg
Simple Moving Average:
Market at 12 PM
Benchmark indices extended the gains and trading near day's high.
The Sensex was up 674.46 points or 1.19% at 57254.35, and the Nifty was up 210.40 points or 1.24% at 17164.40. About 2010 shares have advanced, 1046 shares declined, and 141 shares are unchanged.
Campus Activewear IPO Updates:
The initial public offering (IPO) of Campus Activewear, the largest sports and athleisure footwear brand in India, has received bids for 1.62 crore shares against IPO size of 3.36 crore shares, getting subscribed 48 percent on April 26, the first day of subscription.
Retail investors are at the fore, buying 92 percent shares of their portion, while non-institutional investors bid for 13 percent of their quota.
Qualified institutional investors are yet to participate while employees have bought 20,451 of the two lakh shares reserved for them.
ED raids multiple locations in ABG Shipyard bank loan fraud case
The Enforcement Directorate (ED) on Tuesday raided multiple premises in Mumbai, Pune and Surat in connection with a money laundering probe against ABG Shipyard Ltd in an alleged Rs 22,842 crore bank loan fraud case, officials said.
As many as 26 premises are being searched in these cities by the federal agency under the criminal sections of the Prevention of Money Laundering Act (PMLA), they said.
The ED had filed a money laundering case in February after studying a CBI FIR against the former promoters of the ship building company. Click To Read More
Buzzing
Meghmani Finechem touched 52-week high of Rs 1,469.55 after company posted net profit at Rs 99 crore in March 2022, up 202% from Rs 33 crore in March 2021.
Revenue from operation was at Rs 499 crore in March 2022, up 93% from Rs 259 crore in March 2021.
The volume growth is at 20% due to capex done 2 years back. Expect to maintain margin at 26-28% but difficult to maintain such high margin, Maulik Patel of Meghmani Finechem told to CNBC-TV18.
FY22 revenue growth driven by 20% volume growth & rest due to higher realisations and caustic soda growth in FY22 is at 90% YoY, he added.
Today’s Stock Market Action
Today’s Stock Market Action
Today’s Stock Market Action
Today’s Stock Market Action
Nifty Bank index rose 1 percent supported by the IndusInd Bank, AU Small Finance Bank, Federal Bank
Campus Activewear IPO updates
The initial public offering (IPO) of Campus Activewear, the largest sports and athleisure footwear brand in India, has received bids for 1.33 crore shares against IPO size of 3.36 crore shares, getting subscribed 40 percent on April 26, the first day of subscription.
Retail investors are at the fore, buying 56 percent shares of their portion, while non-institutional investors bid for 8 percent of their quota. Qualified institutional investors are yet to participate while employees have bought 6,579 of the two lakh shares reserved for them.
CAMS appointed registrar & transfer agent for Zerodha’s Proposed MF buziness
:
The company has been appointed by Zerodha Asset Management Private Limited as their Registrar and Transfer Agent for their proposed Mutual Fund business after an evaluation process. The appointment is subject to Zerodha receiving necessary regulatory approvals for launching their Mutual Fund, the company said in an exchange filing.
