Closing Bell: Nifty closes around 18,150, Sensex up 240 points; Tech Mahindra, NTPC top gainers

Mitul Shah - Head of Research at Reliance Securities

Indian equity markets ended higher amid mixed trend in the global markets. Nifty was up 0.5%. Broader markets out-performed the main index as Nifty Mid Cap and Nifty Small Cap were up ~1% and 0.7% respectively. All sectoral indices ended in green except Nifty Pharma (-0.2%) and Nifty FMCG (-0.1%) while Nifty Realty was largely flat. Nifty Metal (+1.4%), Nifty Oil & Gas (+1.2%) and Nifty IT (+1.1%) were the major gainers.

The U.S. stocks were muted on a day when most markets in Europe and Asia were closed for a holiday. The S&P 500 closed flat, while the technology-heavy Nasdaq and the Dow Jones ended 0.1% lower. Shares of US regional banks fell on Monday after regulators mobilised a deal for JPMorgan Chase to buy struggling lender First Republic. The benchmark 10-year yield rose 0.13 percentage points to 3.59%. Meanwhile, Fed is expected to deliver a quarter-point rate rise after its meeting on Wednesday, taking its target range to 5-5.25%, as policymakers continue to tackle rapid consumer price rises.

The March 2023 quarter results season began on a cautious note. Large IT companies reported weak results and indicated substantial revenue growth moderation in FY24. The coming week will see more results from large companies. With April coming to an end, markets will closely track the monthly updates such as automobile sales and purchasing managers indices (PMI). Q4 results and data will provide vital cues about the state of the domestic market and demand. On the global front, the US Federal Reserve and the European Central Bank (ECB) will decide on interest rates. PMI, inflation and the US unemployment rate are other key data points to track.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Nifty continued its upside momentum for the sixth consecutive sessions on Tuesday and closed the day higher by 82 points amidst a range movement. After opening with an upside gap of 60 points, the market made an attempt to move up in the early part of the session. It later shifted into a narrow intraday range at the hurdle of 18200 levels and the sideways movement continued for rest of the session.

A small positive candle was formed on the daily chart with minor upper and lower shadows at the swing highs. Technically, this pattern indicates tiredness in the market after a sharp upward movement recently. Such candle patterns some time acts as a reversal or consolidation movement in the market. A decisive move below 18100-18050 levels could alert for short term downward correction in the market.

The positive chart pattern like higher tops and bottoms is on the way. After the formation of new higher bottom at the lows of 17553 on 21st April, the Nifty has been rising consistently towards the new higher top formation. Though, placed at the highs, still there is no confirmation of any higher top reversal forming yet at the highs. Immediate support is at 18080 levels and the next upside resistance to be watched at 18200 levels.

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

India's relatively better macro economic growth has been adding fizz to the ongoing rally, with the robust April GST numbers further providing fillip even as global markets remain sluggish to negative. Rally in IT, metals and power stocks helped benchmark indices sail above the crucial levels. Technically, the Nifty has formed a small candle while on intraday charts it is still holding higher bottom a formation which is broadly positive. In the near future, 18050-18000 would be the key support zone while 18200-18250 would act as an immediate hurdle for the bulls. However, below 18000, the uptrend would be vulnerable.

Dilip Parmar, Research Analyst, HDFC Securities

The rupee weakens throughout the day as traders and hedgers bet on the dollar ahead of the FOMC policy decision tomorrow. Spot USDINR is expected to hold support at 81.50, the 200-day simple moving average and resist at 82.30. We are expecting a short covering rally in the near term before breaking the long-term support line.This week will be a holiday-shortened as the market remains open only for three trade sessions.

Vinod Nair, Head of Research at Geojit Financial Services

Defying the trend in global peers, Indian benchmark indices continued its upward momentum, fuelled by strong Q4 earnings and favourable domestic macroeconomic data. The manufacturing PMI surpassed expectations due to an increase in new business, moderation in price pressures, and improved supply chain conditions. Additionally, the GST collection in April was the highest recorded to date. While western markets traded with mild cuts ahead of the US Fed policy announcement, the domestic market benefited from strong inflows by FIIs.

Rupee closes marginally weaker against US dollar

Rupee ended at 81.89 against US dollar, down 0.07% from its previous close. 10 Year bond yield closed at 7.117% from its Friday's close of 7.119%. Bond yield and prices moves in opposite directions.

IndiaMART InterMESH scales 52-week high on healthy sales and upbeat commentary

IndiaMART InterMESH's shares experienced a five percent increase on May 2, following positive quarterly sales and optimistic remarks. As of 3:14 pm, the company was trading at Rs 5,642, reflecting a 5.18 percent rise and reaching a 52-week high of Rs 5,642. The company's consolidated revenue for Q4 FY23 was Rs 269 crore, indicating a YoY growth of 33 percent, driven by a 20 percent increase in the number of paying subscription suppliers and the addition of Rs 12 crore in revenue from accounting software services. Although net profit for the quarter was Rs 56 crore, which is lower than the previous year's Rs 57 crore and the previous quarter's Rs 113 crore.

India's unemployment rate reaches four-month high as more people join the workforce than jobs available

According to recent data from research firm Centre for Monitoring India Economy, India's unemployment rate has reached a four-month high. This is attributed to an increase in the number of people entering the job market in comparison to the number of available jobs in the third largest economy in Asia. The national joblessness rate rose from 7.8% in March to 8.11% in April, the highest since December. Urban unemployment increased from 8.51% to 9.81% during the same period, while rural unemployment decreased slightly from 7.47% to 7.34% in April.

UCO Bank Q4 earnings

-Net profit at Rs 581 crore, up 86% YoY
-Gross NPA at 4.78% Vs 5.63% QoQ
-Provisions up 36% QoQ to Rs 451 crore
-Other income up 63% YoY to Rs 960 crore

Coal India output rises 7.7% in April; availability comfortable, power plants stocked

Markets at 3 PM

The Sensex was up 292 points or 0.48 percentat 61,419, and the Nifty was up 102 points or 0.57 percent at 18,167.15. About2139 shares advanced, 1477 shares declined, and 166 shares were unchanged.

Adani Total Gas 4Q net profit up 21% YoY

Net income Rs 97.91 crore, +21% y/y
Revenue Rs 1197 crore, +12% y/y
Total costs Rs 1070 crore, +10% y/y
Dividend per share 0.25 rupees

ICRA revises telecom tower industry outlook to negative due to delayed payments and liquidity concerns

ICRA has updated its assessment of the telecom tower industry, changing its outlook from Stable to Negative. The industry is currently facing challenges due to delayed payments by certain telecom service providers, leading to elongated receivables. ICRA predicts that gross receivable days will remain above the threshold of 80 days, as set by ICRA's outlook revision guidelines. This delay in payments has resulted in a longer working capital cycle, which has had a negative impact on the liquidity profile of the industry. To mitigate this, the industry has increasingly relied on external debt and provisions for doubtful receivables, which are expected to impact the industry's return metrics.

IRCON International gained over 43% in the last 10 sessions

Shares of IRCON International were trading higher for 10th straight sessions and gained over 43 percent in this period. On Tuesday, the stock was up 11% on the back of higher volumes.

Control Print reports Q4 earnings

Net profit up 30.2% at Rs 16 cr Vs Rs 12.3 cr (YoY)
Revenue up 15.4% at Rs 88.5 cr Vs Rs 76.7 cr (YoY)
EBITDA up 21.9% at Rs 20.9 cr Vs Rs 17.1 cr (YoY)
Margin at 23.6% Vs 22.4% (YoY)

After a dismal Q4 amid macro challenges, what is in store for IT firms in FY24?

Markets at 2.10 PM

The Sensex was up 282 points or 0.46 percentat 61,394, and the Nifty was up 91.40 points or 0.52 percent at 18,158.40. About 2193 shares advanced, 1366 shares declined, and 180 shares unchanged.

Mold-Tek Technologies gains 5% after March quarter earnings

Mold-Tek Technologies reported a net profit of Rs 10.10 crore versus Rs 4.7 crore a year ago. Net revenue was up 50% YoY to Rs 42.6 crore compared to Rs 28.50 crore.

Laurus Labs gains 1.2%

Laurus Labs shares gain after the company said in a notice to exchanges that it has received tentative US FDA nod for Oral Dispersible Film (ODF) Dolutegravir, which is used to treat HIV in adults.

NTPC gains 2.24% on higher volume

NTPC shares was up 2.24% on higher volume. NTPC said coal production from captive mines in April was at 2.75 million, up 148% from a year ago. The firm earlier said that it has signed a supplementary joint venture (JV) agreement with Nuclear Power Corporation of India Ltd. (NPCIL) on May 1 for the development of nuclear power projects in the country.

Ashoka Buildcon | NHAI withdraws the order awarded to company for a project in Danapur, Bihar

The stock has touched an intraday high of Rs 88.85 and an intraday low of Rs 84.94.It is trading with volumes of 149,009 shares, compared to its thirty day average of 101,992 shares, an increase of 46.10 percent.

Coforge Large Trade | 21.55 lakh shares (3.5 percent equity) worth Rs 891.8 crore change hands at Rs 4,125/sh

Currently, the stock is trading 8.22 percent below its 52-week high and 29.03 percent above its 52-week low.

RVNL Large Trade | 19.4 crore shares (0.94 percent equity) worth Rs 229.7 crore change hands at an average of Rs 117/sh

Datamatics Global Services hits 52-week high on healthy Q4 earnings show

Shares of Datamatics Global Services soared 17 percent on May 2 and hit their 52-week high of Rs 404, reacting to healthy earnings show for the quarter ended March.

Revenue of the global digital operations, technology and experiences company came in at Rs 416.3 crore, up 33 percent YoY and 12 percent QoQ, during the March quarter.

Profit after tax rose 31 percent YoY and 30 percent QoQ to Rs 59.7 crore during the quarter.

HDFC kick-starts $1 billion Credila sale by picking Jefferies as adviser, sources say

Newgen Software Q4 (QoQ)

-Net profit up 63 percentat Rs 78.6 crore vs Rs 48 crore
-Revenue up 19.7 percentat Rs 305 crore vs Rs 255 crore
-EBITDA up 63.4 percentat Rs 96.4 crore vs Rs 59 crore
-Margin at 31.6 percentvs 23.1 percent

Aarti Drugs trades 5% higher on steady March quarter earnings

Varun Beverages Q1 (YoY)

-Net profit up 68.8 percent at Rs 429 crore vs Rs 254 crore
-Revenue up 37.7 percent at Rs 3,893 crore vs Rs 2,827.5 crore
-EBITDA up 50.3 percentat Rs 798.1 crore vs Rs 531 crore
-Margin at 20.5 percentvs 18.8 percent
-Board approves stock split in the ratio of 1:2

Markets at 12 PM

The Sensex was up 303.73 points or 0.50 percentat 61,416.17, and the Nifty was up 91.40 points or 0.51 percent at 18,156.40. About 2026 shares advanced, 1219 shares declined, and 150 shares unchanged.

NMDC April Business Update

-Production up 11.4 percentat 3.51 MT vs 3.15 MT YoY
-Sales up 9.9 percentat 3.43 MT vs 3.12 MT YoY

At 11:46 hrs NMDC was quoting at Rs 109.60, up Rs 1.00, or 0.92 percent.Currently, it is trading 33.45 percent below its 52-week high and 17.09 percent above its 52-week low.

Satin Creditcare rallies 12 percent on Q4 net profit jumping 59 percent

Satin Creditcare Network shares gained almost 12 percent after reporting Rs 94 crore net profit in Q4, a jump of 59 percentthan what it was in a year-ago period. The rise in net profit was buoyed by improvement in asset quality and business expansion. Net interest income rose 39 percent at Rs 251 crore.

Sirca Paints in focus

The company has entered into an exclusive manufacturing license agreement with Sirca S.p.A (Italy) to manufacture 10 different polyurethane wood coating products in India, which were earlier imported from Sirca S.p.A (Italy) by the company.

At 11:31 hrs Sirca Paints India was quoting at Rs 609.30, up Rs 1.40, or 0.23 percent.Currently, it is trading 23.84 percent below its 52-week high and 5993 percent above its 52-week low.

April Auto Sales | M&M

-Total tractor sales down 11% at 36,405 units vs 40,939 units YoY
-Total sales up 36.5% at 62,294units vs 45,640 units YoY
-Total domestic passenger vehicle sales up 54% at 34,698 units vs 22,526 units YoY
-3-wheeler sales up 85% at 5,552 units vs 3,009 units YoY
-Exports down 33% at 1,813 units vs 2,702 units YoY

At 11:23 hrs Mahindra and Mahindra was quoting at Rs 1,229.45, up Rs 2.85, or 0.23 percent.Currently, it is trading 11.93 percent below its 52-week high and 43.89 percent above its 52-week low.

Steel Strips | April net turnover down 3.65 percent at Rs 317.1 crore vs Rs 329.1 crore

The share touched its 52-week high Rs 189.39 and 52-week low Rs 126.20 on 29 April, 2022 and 30 January, 2023, respectively. Currently, it is trading 16.71 percent below its 52-week high and 25 percent above its 52-week low.

April Auto Sales | Bajaj Auto

-Total sales up 7 percent at 3.31 lakh units versus 3.10 lakh units YoY
-Domestic sales at 2.13 lakh units versus 1.02 lakh units YoY
-Exports down 43 percentAt 1.18 lakh units versus 2.08 lakh units YoY
-2-wheeler sales up 2 percentat 2.87 lakh units versus 2.81 lakh units YoY

Markets at 11 AM

The Sensex was up 333.35 points or 0.55% at 61,445.79, and the Nifty was up 97.80 points or 0.54% at 18,162.80. About 2035 shares advanced, 1130 shares declined, and 159 shares were unchanged.

Gallant Ispat shares fall 16 percent after Income Tax raids

-lncome Tax Department conducted search operations at the plant office & factory premises of company
-I-T Dept searched the business offices and residential houses of promoters and officers
-I-T Dept has seized few documents and records of the company for further processing
-Any impact with respect to search will be intimated in due course

MOIL in focus

-Decreases price of most grades of Manganese Ferro by 5 percent
-Increases EMD price by 4.2 percent to 2.14 lakh PMTfrom 2.05 lakh PMT
-Reduces basic price of DBF487 15 percent

The stock touched an intraday high of Rs 158.25 and an intraday low of Rs 157.00.

Sun Pharma in focus

-US FDAplaces study of 12 mg dose of Deuruxolitinib on hold for Thrombotic events
-Deuruxolitinib is an investigational oral selective inhibitor
-12 mg dose of Deuruxolitinib being studied for treatment of Alopecia Areata

The share touched its 52-week high Rs 1,071.90 and 52-week low Rs 789.75 on 30 January, 2023 and 17 June, 2022, respectively. Currently, it is trading 8.53 percent below its 52-week high and 24.15 percent above its 52-week low.

April Auto Sales

VST Tillers | Power tiller and tractor sales down 23 percentat 2,202 units vs 2,862 units YoY.It is trading with volumes of 4,457 shares, compared to its five day average of 5,812 shares, a decrease of -23.31 percent.

Nifty unlikely to hit life time high in May but Bank Nifty can do, says Ashish Kyal of Waves Strategy Advisors

Tata Steel gains ahead of Q4 results. Here's what brokerages expect

Tata Steel shares opened higher on May 2, ahead of the steel major's Q4 earnings report later in the day. The company's net profit is expected to drop over 91 percent year-on-year to Rs 955 crore due to weak performance in the Europe business, as per brokerages. However, India business performance is expected to be strong.

Tata Steel's revenue from operations is expected to fall 13 percent YoY to Rs 60,458 crore in the quarter gone by. "We estimate Europe to report EBITDA loss of US $111/ton led by weak demand resulting in adverse product mix partly offset sequentially moderating costs," said Kotak Institutional Equities in a report. (Tap to read more)