Stock Market Highlights: Sensex surges 520 points, Nifty ends above 14,850 led by metals, banks, auto stocks

Ajit Mishra, VP – Research, Religare Broking

Markets started the new financial year on a robust note led by optimism in the global markets. The announcement by US President Joe Biden to invest USD 2.3 trillion in infrastructure boosted sentiments. Initially, the benchmark opened gap up but gains fizzled out gradually as the day progressed. However in the second half healthy buying amongst the sectors such as metals, banks, auto supported markets to steadily inch higher.

Markets are likely to take cues from global peers as stimulus package announcement in the US last night led to renewed buying interest in the global markets. In the near term, positive bias is expected to continue however, rising COVID cases in India would remain a key concern. As Q4 earnings season is approaching, Investors focus will shift to earnings announcements and management commentary.

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

Once again the Index has nudged closer to the important level of 14,950. Due to a trading holiday tomorrow, we would need to evaluate this next week: If we can cross 14,950, we should be able to resume the uptrend and head towards 15,300. If we resist and take a U-turn again, we will be sideways and if we break 14,500, we will revisit the recent lows of 14,200-14,250. Hence, we are at a crucial juncture from where a trading opportunity on the upside or downside may emerge.

Highlights of Market Performance This Week

– Market Snaps 2-week Losing Streak; Sensex & Nifty Up Over 2% Each

– All Sectoral Indices Give Positive Returns; Metal, PSU Bank Gain The Most

– Nifty Bank Rises 1.6% & Midcap Index Nearly 4% For The Week

– Both Nifty Bank & Midcap Index Post Biggest Gains Since Budget Week

– 46 Nifty Stocks Record Gains; JSW, Tata Steel, UPL Up Over 10% Each

Market At Close

– Market Closes At 2-week Highs, Led By Financials

– Benchmark Indices Gain 1%, Nifty Bank & Midcap Index Up 2% Each

– Sensex Rises 512 Points To 50,030 & Nifty 177 Points To 14,867

– Nifty Bank Gains 554 Points To 33,858 & Midcap Index 425 Points To 24,118

– Market Breath Firmly In Favour Of Advances; Advance-Decline ratio At 5:1

– 42 Nifty Stocks Close In The Green; JSW Steel, Hindalco, Tata Steel Top Gainers

– Steel Cos Hit Multi-Yr Highs On Strong Outlook; JSW Up 8%, Tata Steel Up 6%

– Cement Cos Rise On Reports On Price Rise; UltraTech Up Over 2%

– Most Auto Companies move Higher On Higher March Sales; Nifty Auto Up 2%

– Dish TV Surges 11% After Getting Nod From I&B Min For DTH Licence

– Voda Idea, GMR, Info Edge, Dr Lal, Bandhan Bank Top Midcap Gainers

Closing Bell | The Indian benchmark equity indices ended with strong gains Thursday led by a rally in metals, banks and auto stocks amid positive global cues. The Sensex surged 520.68 points, or 1.05 percent to end at 50,029.83, while the Nifty closed 176.65 points, or 1.20 percent higher at 14,867.35. Broader markets outperformed the benchmarks as Nifty Midcap100 jumped 1.79 percent, while Nifty Smallcap100 ended 2.09 percent higher.

Among sectors, the Nifty metal index jumped 5 percent while the auto, banking and fin services indices were up between 1 percent and 2 percent for the day. Meanwhile, Nifty Pharma and Nifty IT rose 0.7 percent and 0.5 percent, respectively. FMCG index ended in the red.

On the Nifty50 index, JSW Steel, Hindalco, Tata Steel, Adani Ports, and IndusInd Bank were the top gainers while HUL, Nestle, HDFC Life, Divi’s Labs and TCS led the losses.

Hemmo Pharma’s acquisition to aid Piramal’s capability to make peptides: Piramal Enterprises

Piramal Enterprises’ arm Piramal Pharma acquired 100 percent stake in Hemmo Pharmaceuticals for Rs 775 crore. This acquisition will give the company the capability to manufacture peptide active pharmaceutical ingredient (API). Nandini Piramal, Executive Director of Piramal Enterprises said that the acquisition will the company expertise to make peptides, which are used in oncology as well as diabetes and obesity drugs. “Majority of these peptides are injectables and this will allow us to integrate with our injectable facility in Lexington, Kentucky,” she told CNBC-TV18. Read more.

Global Markets: US spending boom offsets Europe’s lockdown blues

World stocks ran higher on Thursday following their slowest quarter in a year, as US economic strength offset the return to strict COVID lockdown measures in parts of Europe and elsewhere. US President Joe Biden’s sweeping $2.3 trillion plan to rebuild America’s crumbling infrastructure lifted MSCI’s 50-country world index for a second day running, while oil jumped 1.5 percent before an OPEC meeting. Asian markets had seen a strong finish with a late burst pushing Chinese shares up 1.2 percent, and Europe’s STOXX 600 shrugged off France’s new lockdown order to push back towards its pre-COVID record highs. The euro edged up, too, and euro zone bond yields held their ground, as the European Central Bank’s chief economist reiterated that the ECB had no intention of curbing its support despite rising inflation, a Reuters report said.

April 2021 looking better YoY; expect more stability hereon, says Indiabulls Housing’s Gagan Banga

April 2021 is looking much better year-on-year (YoY) and we expect more stability hereon, said Gagan Banga, vice chairman & managing director of Indiabulls Housing Finance, on Thursday. CRISIL has upgraded the rating outlook for Indiabulls Housing to stable and this is the first rating upgrade for the company in two years.

Speaking to CNBC-TV18, Banga said, “There is a lot of work to be done as far as collections etc., is concerned and we have to very careful, but businesses are still seeing an upswing. We are certainly in a better place as compared to April 2020. Therefore, overall I imagine that the stability in the situation should only keep getting better from here.” Read more.

CLSA gives ‘buy’ rating for Sunteck Realty after Borivali project deal

CLSA has given a ‘buy’ rating for Sunteck Realty, stating that the company has acquired an accretive land parcel of seven acres in Borivali West in Mumbai on favorable terms and via an asset-light approach. CLSA has a price target of Rs 460 for the stock. The brokerage firm says that revenue share in the project is likely to be 72 percent. Considering the high selling price of Rs 16,000 per square foot in the Borivali micro-market, it is also more favorable than the Naigaon, Vasai, and Vasind acquisitions, it said. Read more.

Ashok Leyland | The company reports total sales of 17,231 units in March against CNBC-TV18 poll estimates of 15,500 units. The company had reported total sales of 2,126 units YoY, and 13,703 units MoM.

Coal India | The company’s production in March fell 3.8 percent at 81.2 mt against 84.4 mt, YoY. March offtake grew 11.9 percent at 59.7 mt against 53.4 mt, YoY.

Alembic Pharmaceuticals | The company said that its joint venture Aleor Dermaceuticals has received final approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Nystatin and Triamcinolone Acetonide Cream USP, 100,000 units/gram and 1 mg/gram.

Market Watch: Himanshu Gupta of Globe Capital

– The first recommendation is a buy on Apollo Tyres, the stock can be bought for a target price of Rs 240 and the stock below Rs 227 can be placed.

– Second is a buy on RBL Bank, we have seen some kind of base formation around the lower levels and the charts pattern is suggesting that the stock is poised to move up from the current levels so RBL Bank can be bought for target price of Rs 220 and then stop loss below Rs 209 can be placed.

– Finally, from a cash segment, there is a base strong formation on the charts as far as Nava Bharat Ventures is concerned and from a one to two day perspective one can initiate longs here for a target price of Rs 90 and keep a stop loss below Rs 72.

Eicher Motors | The company reported total sales at 7,037 units in March 2021 as against 1,499 units in the year-ago period, registering a growth of 369 percen.

Bharat Electronics Ltd | The company has achieved a turnover of about Rs 13,500 crore (Provisional & Unaudited) during Financial Year 2020-21, against the previous year turnover of Rs 12,608 crore in spite of the challenges posed by COVID19 Pandemic & intense competition in business. Its order book as on April 1, 2021, is around Rs 53,000 crore. In the year 2020-21, BEL secured significant orders worth Rs 15,000 crore, the company said.

Steel Strips Wheels | The company said it achieved highest ever wheel rim sales of 16.73 lakh in March 2O2L versus 7.88 lakh in March 2020 representing a growth of 112.44 percent YoY. The company has achieved gross turnover of Rs 307.38 crore in March 2021 versus Rs 102.28 crore in March 2020, there by recording a growth of 200.52 percent YoY and achieved net turnover of Rs 253.29 crore in March 2021 versus Rs 84.73 crore in March 2020, recording a growth of 798.92 percent.

Future Supply Chain Solutions | The company said that Reliance Retail has extended the timeline for the long-stop date to September 30 from March 31, 2021.

APL Apollo Tubes | The company reported a sales volume of 435,348 ton in Q4FY21 compared to 400,616 ton in Q4FY20. The company registered sales volume of 1,640,353 ton in FY21 compared to 1,633,310 ton in FY20, despite Covid-19 disruption in FY21.

Reliance Infra sells Reliance centre at Santacruz in Mumbai to Yes Bank for Rs 1,200 cr

Reliance Infrastructure Limited (RInfra) and Yes Bank Limited (Yes Bank) on Thursday announced a sale transaction of Reliance Centre, Santacruz, Mumbai to Yes Bank. The transaction value is Rs 1,200 crore, Reliance said in a stock exchange release today. The entire proceeds from the sale of Reliance Centre, Santacruz will be utilized only to repay the debt of Yes Bank, it added. As per the company, Reliance Infra has reduced exposure by 50 percent in the last 90 days. It has closed three major transactions in the last 90 days namely sale of road asset – Delhi Agra toll road, transmission asset – Parbat Koldfam Transmission Company Limited and sale of Reliance Centre, Santacruz. More here

PFC pays interim dividend of Rs 1,182.63 cr to govt for 2020-21

State-run Power Finance Corporation (PFC) has paid an interim dividend of Rs 1,182.63 crore to the government for the financial year 2020-21. ”Power Finance Corporation has paid an interim dividend of Rs 1,182.63 crore to government of India for the financial year 2020-21 on March 31st, 2021 on 1,47,82,91,778 number of equity shares (56 percent) held by the government,” a PFC statement said. The interim dividend RTGS (real-time gross settlement) intimation bank advice was presented to Power Minister R K Singh by Ravinder Singh Dhillon, CMD, PFC in the presence of Power Secretary Alok Kumar on Wednesday.