Closing Bell: Nifty ends above 17,900 on expiry day; Sensex gains 349 points

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

Markets turned extremely bullish on the F&O expiry day, which shows that investors are willing to bet big on local stocks irrespective of the current global macroeconomic challenges. It looks like strong FII participation also contributed to the broad market surge as IT, realty and select metal stocks attracted significant buying.

Technically, post the intra-day breakout of 17,820 level, the positive momentum intensified. The index has also formed a bullish candle on daily charts which is grossly positive.

As long as the Nifty is trading above 17,820, the positive sentiment is likely to continue. Above the same, the market could move up to 18,000-18,050. However, below 17,800, the index could slip till 17,750-17,725.

Rupak De, Senior Technical Analyst at LKP Securities.

The Bank Nifty continues to move higher during the day. On the daily chart, the index has remained above the consolidation breakout point. Besides, the index has remained above the critical moving average.

On the higher end, Bank Nifty might move towards 43,300/43,500 over the near term. On the lower end, support is placed at 42,750.

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

The Nifty opened on a flat note and continued to inch higher throughout the day and closed with handsome gains of ~100 points. More importantly it is closed above the previous swing high of 17,863 which confirms that it has started the next leg of upmove. On the way up, Nifty is likely to target levels of 18,100 from short term perspective.

On the daily charts, the momentum indicator has triggered a fresh positive crossover which is likely to provide speed to the current upmove. Thus, both price and momentum indicator are now in sync and suggest that the current rally is likely to continue.

As long as the Nifty continues to trade above 17,720 – 17,700 support zone, we expect the positive momentum to continue.

Ajit Mishra, VP - Technical Research, Religare Broking

Market traded firm on the monthly expiry day and gained nearly half a percent. After the flat start, the Nifty index gradually inched northward and finally settled around the day’s high to close at 17,915.05 levels.

The majority of sectors contributed to the move wherein realty, IT and auto were the top gainers. The broader indices traded in sync with the trend and gained in the range of 0.5 percent-0.8 percent.

Nifty has surpassed the hurdle at 17,850 and looks set to inch toward the 18,100+ zone now. Though it is still a banking-led recovery, we are seeing a marginal improvement in participation from other sectors as well. Participants should continue with a stock-specific trading approach and align the positions according to the trend.

Vinod Nair, Head of Research at Geojit Financial Services

The domestic market is gradually shifting towards a positive terrain, supported by FIIs inflows and positive Q4 earnings from banks. On the global front, the US Q1 GDP number which will be unveiled today is anticipated to moderate on a QoQ basis amid concerns over banking contagion and a slowing economy.

The next week's Fed policy will be keenly monitored. The FED may further hike by 25 basis points, but the expectation is that this will represent the peak and a long pause.

Rupak De, Senior Technical Analyst at LKP Securities

The headline index Nifty has moved up higher towards the closing. On the daily chart, the index has given an inverted head and shoulder pattern, suggesting a bullish reversal. Besides, the index has remained above the critical moving average.

On the higher end, Nifty might move towards 18,000/18,100 over the near term. On the lower end, support is placed at 17,800.

Rupee Close:

Indian rupee ended marginally lower at 81.84 per dollar on Thursday versus previous close of 81.76.

Market Close

: Benchmark indices ended higher with Nifty above 17900 on April F&O expiry day.

At close, the Sensex was up 348.80 points or 0.58 percentat 60,649.38, and the Nifty was up 101.40 points or 0.57percentat 17,915. About 1,970 shares advanced, 1,421 declined, and 126 were unchanged.

Bajaj Auto, Bajaj Finance, BPCL, Bajaj Finserv and Bharti Airtel were among the biggest gainers on the Nifty, while losers included HDFC Life, HUL, Power Grid Corp, Adani Ports and Axis Bank.

Except for power, all other sectoral indices ended in the green with auto, pharma, realty, information technology, capital goods, metal up 0.5-1 percent.

The BSE midcap and smallcap indices added 0.5 percent each.

RVNL bags order worth Rs 121 crore from North Central Railway

Rail Vikas Nigam has received Letter of Acceptance(LOA) for “Provision of E1 based Automatic Signaling with continuous track circuiting and other associated worksincluding suitable Indoor alteration in Electronic Interlocking/RRI/PI stations enroute in Jhansi (incl)-Gwalior (Incl.)
section of Jhansi Division of North Central Railway.

The cost of project is Rs121,05,77,446.

Morgan Stanley View On SBI Life Insurance Company

-Overweight rating, target at Rs 1,650 per share
-VNB better-than-expectations owing to sharp decline in proportion of ULIP in APE
-Retail protection APE shrank YoY & has been sluggish in Q2 & Q3 as well
-Negative Eco variance was higher than peers with increased interest rate sensitivity

SBI Life Insurance Company was quoting at Rs 1,138.20, up Rs 21.25, or 1.90 percent.

Morgan Stanley View On L&T Technology Services

-Underweight rating, target at Rs 3,200 per share
-Q4 better than consensus estimates
-FY24 organic revenue growth guidance of double-digit YoY shows resilience
-Despite positive management commentary, see limited upside to consensus estimates
-Remain underweight owing to moderating EBIT growth
-Dilution in free cash flow conversion from acquisition of SWC keep us underweight

L&T Technology Services was quoting at Rs 3,736.55, up Rs 288.60, or 8.37 percent on the BSE.

Laurus Labs Q4 Earnings:

The company's Q4FY23 net profit was down 56percentat Rs 103 crore versus Rs 234.3 crore and revenue was down 3.1 percentat Rs 1,381 crore versus Rs 1,425 crore, YoY.

Laurus Labs was quoting at Rs 292.70, down Rs 7.35, or 2.45 percent on the BSE.

Morgan Stanley View On Can Fin Homes 

-Equal-weight rating, target at Rs 550 per share
-PBT missed estimates by 5percentlargely owing to higher credit costs
-GNPA & provision coverage were largely stable QoQ
-PAT beat of 6percentlargely reflects low tax rate in 4Q
-Net loans grew 18percentYoY/5percentQoQ during quarter

Can Fin Homes was quoting at Rs 593.70, up Rs 12.00, or 2.06 percent on the BSE.

PVR gets 'reduce' rating from Elara Securities;

Brokerage firm Elara Securities has suggested a 'reduce' rating for PVR Ltd and raised the target price to Rs 1,510 per share.

PVR reported a sharp decline of around 30 percent in Hindi box office revenue compared to pre-Covid levels due to factors such as large budget films, talent preferences, direct OTT releases, and slowdowns by larger studios.

Elara believes that the revival of Hindi content relies on high-quality content, scripts, and franchise-driven, technologically advanced films utilising visual effects. In the medium term, regional content is expected to play a significant role in driving growth, with dubbed films accounting for 21 percent of Hindi box office revenue in FY23. Read More

Mankind Pharma IPO Updates:

The initial public offering of Mankind Pharma had been subscribed 10.41 times, largely on the back of qualified institutional buyers (QIBs), with bids coming in for 29.19 crore equity shares against an offer size 2.8 crore by noon on April 27, the final day of bidding.

The issue size has been reduced to 2.8 crore shares from over 4 crore after the company mobilised Rs 1,298 crore through the anchor book on April 24.

QIB investors had bid 33 times their allotted quota. The part set aside for high networth individuals was subscribed 3.05 times. The IPO has, so far, failed to enthuse retail investors who have only bid for 66 percent of the shares set aside for them.

The pharmaceutical firm has reserved half of its issue size for QIBs, 15 percent for high-networth individuals and the remaining 35 percent for retail investors.

Godrej Consumer clarifies on news report

Godrej Consumer has confirmed submitting non-binding offer with Raymond on January 20, while due diligence period for Raymond deal was from February 23-April 24.

Kolte-Patil Developers bags 2 new society redevelopment projects in Mumbai

Kolte-Patil Developers has signed two new society redevelopment projects in the Mumbai Metropolitan Region (MMR) with total saleable area of 7.3 lakh square feet translating into top-line potential of Rs 1,200 crore.

These two projects are strategically located in the prime residential areas of Mulund (West) in Mumbai, and Vashi in Navi-Mumbai, marking KPDL’s entry in these rapidly growing micro-markets of MMR.

Market at 3 PM

Benchmark indices were trading near the day's high with Nifty around 17900.

The Sensex was up 261.56 points or 0.43percentat 60,562.14, and the Nifty was up 74.40 points or 0.42percentat 17,888.00. About 1,808 shares advanced, 1,405 declined, and 98 were unchanged.

Dilip Buildcon executes concession agreements for 2 projects worth Rs 1,373.6 crore

Dilip Buildcon has executed the concession agreement with the National Highways Authority of India (Ministry of Road Transport and Highways) on April 26, 2023.

For development of Six-Lane Access controlled Greenfield Highway from Kodur to Vanavolu Bengaluru – Vijayawada Economic Corridor on HAM Mode under Bharatmala Pariyojana Phase-I in the State of Andhra Pradesh (Package-1). The project cost is Rs 599.50 crore.

And development of Six-Lane access controlled Greenfield Highway from Odulapalle to Nallacheruvu-palli of [NH-544G] Bengaluru Vijayawada Economic Corridor on HAM Mode under Bharatmala Pariyojana Phase-I in the State of Andhra Pradesh (Package-4). The project cost is Rs 774.10 crore.

Dilip Buildcon was quoting at Rs 179.30, up Rs 1.70, or 0.96 percent on the BSE.

Dwarikesh Sugar Q4 results

Dwarikesh Sugar has recorded 21.5 percent fall in its Q4 net profit at Rs 46.8 crore versus Rs 59.6 crore and revenue was up 12 percentat Rs 532.5 crore versus Rs 475.4 crore, YoY.

Som Distilleries Q4 Earnings:

Som Distilleries has posted a net profit of Rs 15.9 crore versus Rs 6.4 crore and revenue was up 73.3 percentat Rs 252.6 crore versus Rs 145.8 crore, YoY.

Morgan Stanley view on Maruti Suzuki

The foreign broking house has kept overweight rating on the stock with a target price of Rs 11,155 per share. The FY24 EBIT margin of 8.1% was the highest in 18 quarters, and expect company to grow ahead of the market in FY24.

The leverage and mix gains could drive margin expansion further.

Maruti Suzuki India was quoting at Rs 8,529.10, up Rs 25.95, or 0.31 percent on the BSE.

Embassy Office Parks REIT Q4:

Embassy Office Parks REIT has recorded 27 percent jump in its Q4 profit at Rs 35.4 crore against Rs 27.9 crore and revenue was up 15.9percentat Rs 867.6 crore against Rs 748.8 crore, YoY.

Embassy Office Parks REIT was quoting at Rs 323.50, up Rs 1.17, or 0.36 percent.

Welspun India approves share buyback of Rs 120 per share

The Board of Directors of Welspun India at its meeting held on April 27, 2023, has approved buyback proposal for purchase of 16,250,000 fully paid equity shares of Re 1 each by the company at a price of Rs 120 per equity share payable in cash for an aggregate amount of Rs 195 crore.

Chennai Petroleum Corp gained 6% post March quarter earnings

Chennai Petroleum Corp reported net profit of Rs 1000 crore in March quarter from Rs 144 crore a quarter ago. Revenue up 12 percent to Rs 18008.70 crore QoQ. EBITDA at Rs 1626 crore vs Rs 434 crore QoQ. EBITDA margin at 9 percent vs 2.7 percent QoQ.

First cut from ICICI Direct post HUL earnings

Over the last six to eight months, there has been a significant decrease in major crude and palm oil commodities, resulting in improved margins for the company. However, the extent of this improvement falls below our expectations. We believe that the company is aggressively passing on the benefits of low commodity prices to customers through price cuts or increased product sizes to stimulate sales volume, although growth remains at the lower end, with only a 5 percent increase projected for FY23 despite a low base. Additionally, sales of discretionary categories in BPC and malt beverage brands in the foods segment are still struggling, leading us to believe that volume growth for HUL will remain in the mid-single digits with minimal pricing growth in FY24. Our outlook on growth and margin expansion remains cautious due to high levels of competitive activity.

Shree Digvijay Cement Q4 Results:

Shree Digvijay Cement has reported 89 percent jump in its Q4 net profit at Rs 24.4 crore against Rs 12.9 crore and revenue was up 15.4percentat Rs 195.2 crore against Rs 169.2 crore, YoY.

Market

Benchmark indices were trading at day's high with Nifty around 17,900.

The Sensex was up 244.06 points or 0.40percentat 60,544.64, and the Nifty was up 71.70 points or 0.40percentat 17,885.30. About 1,885 shares advanced, 12,91declined, and 109were unchanged.

BSE Midcap index added 0.5 percent supported by L&T Technology, Vodafone India, Tata Elxsi

RBI approves re-appointment of N Kamakodi as MD & CEO of City Union Bank

The Reserve Bank of India has given its approval for the re-appointment of N Kamakodi as the Managing Director & CEO of City Union Bank. He will remain MD & CEO of the bank for three years with effect from May 1.

Central Bank of India to consider fund raising for FY24 on April 29

Central Bank of India said that the Board of Directors will meet on April 29 to consider the capital raising plan for FY24 via follow-on public offer, or Rights issue, or qualified institutional placement, or preferential issue, and/or issue of BASEL III compliant AT1/Tier II bonds.

Sharekhan View on Bajaj Finance

The stock has witnessed significant correction from its highs in the past 12 months and at CMP, the company trades at 5.5x/ 4.3x its FY2024E/ FY2025 BV.

Sharekhan believes the company is poised to deliver sector-leading ROA/ ROE of ~4.7 percent/ 22percentover FY23-FY25E. Diverse product offerings through omni-channel presence along with a focus on new customer addition and the ability to cross-sell different products are likely to support AUM growth.

Digital transformation and omnichannel strategy are likely to bode well for its growth objectives along with operational efficiencies going ahead and its full impact is yet to be visible.

The company has exhibited its strong ability to navigate through an economic downcycle, led by a prudent and agile management team and robust risk management framework. The stock offers reasonable risk rewardfor long-term investors.

Reiterate a buy on Bajaj Finance with an unchanged price target of Rs 7,500.

Bajaj Finance was quoting at Rs 6,220.40, up Rs 165.60, or 2.74 percent on the BSE.

Bajaj Finserv Q4:

Consolidated net profit rose 31.4% at Rs 1,769 crore against Rs 1,346 crore and revenue was up 25.2% at Rs 23,625 crore versus Rs 18,862 crore, YoY.

Goldman Sachs View On Voltas 

-Sell rating, target at Rs 840 per share
-Q4 missed EBITDA/net income estimates by 9 percent/28percent
-AC franchise continues to lose ground, with market share now at 21.9percent
-RAC topline & margin came almost in-line
-Seasonally strongest quarter may inspire future margin improvement
-Trajectory for margin will be key to look out for in management commentary

LKP Research View on Maruti Suzuki

Maruti Suzuki reported a strong margin performance in the quarter (consecutive fourth quarter of growth) on better product mix, lower discounts and higher ASPs.

The demand is going quite strong driven by personal mobility theme, first time buyers, new variant launches and hybrid & CNG variants.

Going forward, with supply issues getting resolved sooner or later, LKP believes that the strong order book, newer SUV launches (“eVX”, Jimny and Fraunx), digitization of sales, expanding dealer network (now 3,500 sales outlets across India), higher capacity utilization rates, favourable currency movement and product mix should trigger a superior volume and margin profile in the ensuing years.

With multiple positive drivers in place, brokerage house remains sanguine on the stock with FY 25E target of Rs 10,034. Maintain buy.

Swaraj Engines Q4:

Swaraj Engines has reported 59 percent jump in its Q4 net profit at Rs 35 crore versus Rs 22 crore and revenue was up 48.4percentat Rs 359.8 crore versus Rs 242.3 crore, YoY.

Mankind Pharma IPO Day 3 Subscription

The initial public offering of Mankind Pharma had been subscribed 2.96 times, largely on the back of qualified institutional buyers (QIBs), with bids coming in for 8.29 crore equity shares against an offer size 2.8 crore by noon on April 27, the final day of bidding.

The issue size has been reduced to 2.8 crore shares from over 4 crore after the company mobilised Rs 1,298 crore through the anchor book on April 24.

QIB investors had bid 8.14 times their allotted quota. The part set aside for high networth individuals was subscribed 1.89 times. The IPO has, so far, failed to enthuse retail investors who have only bid for 45 percent of the shares set aside for them.

Sharekhan View on Maruti Suzuki:

After registering in-line performance, management is looking to outperform the PV industry’s growth in FY2024, as it anticipates healthy performance in the SUV segment in FY2024.

With a strong order book of 412,000 units, management is optimistic about its performance; however, management indicated about the production challenges in Q1FY2024 due to the shortage of semiconductor chips.

Given a strong order book in hand, below-normal dealer inventory, healthy response to new products, and recovery in its EBITDA margin profile, the broking house continues to maintain its positive view of the company.

With the expectation of a 9.4percentvolume CAGR and a 200 bps expansion in EBITDA margin to 11.4 percent over FY2023-FY2025E, it expects a 21.3percentearnings CAGR.

Sharekhan reiterates its buy rating on the stock with an unchanged price target (PT) of Rs 10,965, factoring in gains in market shares through refreshed and new launches.

Market at 1 PM

Benchmark indices were trading higher with Nifty around 17850.

The Sensex was up 123.94 points or 0.21percentat 60,424.52, and the Nifty was up 36.40 points or 0.20percentat 17,850. About 1,856 shares advanced, 1,280 shares declined, and 116 shares were unchanged.

Nifty Information Technology index up 1 percent led by L&T Technology, LTIMindtree, Mphasis

BSE Power index down 0.5 percent dragged by Power Grid Corporation, CG Power, Adani Green Energy