Stock Market Highlights: Sensex surges 557 points, Nifty ends above 14,650 led by metals, financials

Closing Bell | The Indian equity market ended higher Tuesday led by strong gains in metals, banks and auto stocks. The Sensex surged 557.63 points, or 1.15 percent to 48,944.14, while the Nifty closed 168.85 points, or 1.17 percent higher at 14,653.85. Broader markets supported the rally with smallcap and midcap indices rising over 1.5 percent each.

All the sectoral indices ended in the green with Nifty Metal and Nifty PSU rallying over 2 percent each followed by pharma, auto, financial services and IT indices. Hindalco Industries, Tata Steel, Larsen & Toubro, Divi’s Laboratories and Bajaj Finance were the tp Nifty50 gainers, while HDFC Life Insurance, SBI Life Insurance, Maruti Suzuki, NTCP and Nestle India were the top index lsoers.

OPEC+ to meet Tuesday amid concern about rising virus cases

OPEC and its allies led by Russia will meet on Tuesday to discuss production policy amid upbeat forecasts for energy demand despite concerns about new coronavirus spikes in India, Brazil and Japan. The group, known as OPEC+, will hold its joint ministerial monitoring committee (JMMC) meeting on April 27 instead of April 28 as planned earlier, according to three OPEC+ sources and an OPEC+ document seen by Reuters.

Do not subscribe to Shalby OFS: Yash Gupta Equity Research Associate, Angel Broking

Shalby Ltd. one of the promoter groups came up with the Offer for sale at Rs 111 which is 1 percent discount to its current market price of Rs 112.25. The company announced Offer for Sale of shares of the company by one of its Promoter, Shah Family Trust through the Stock Exchange Mechanism. Promoter has set the floor price of Rs 111 for Non-retail as well as retail shareholder. The company has fixed the 27th April 2021 as a time window for retail participants to apply for an offer for sale. Promoter has offered 5.38 percent of the total paid up equity share capital of the company.

We suggest retail investors not to apply for this OFS as there will be very remote chances of getting any gains. After the OFS stock may see some pressure for a couple of weeks.

State Bank of India | SBI to consider fundraising up to $2 billion in FY22 via unsecured notes in its board meeting on April 28.

Sanofi India Q4FY21 | The company’s profit rose 70.8 percent YoY to Rs 145.9 crore. Revenue fell 7.6 percent to Rs 725.1 crore.

Global Markets: Stocks dip from record levels ahead of Fed

Shares dipped from record highs on Tuesday as optimism about the economic recovery was dented by caution ahead of the Federal Reserve’s policy decision and a raft of earning updates. The MSCI world equity index, which tracks shares in 49 countries, fell 0.1 percent, following a muted session in Asia and slight early losses in Europe. The index is up 9 percent year-to-date, underpinned by expectations that rising vaccination rates will allow more economies to recover and give a big boost to company profits.

IT sector outlook: Positive on Mphasis & Wipro, says HDFC Securities

Apurva Prasad of HDFC Securities spoke to CNBC-TV18 to discuss earnings from the IT space. Prasad said, “There were some pockets of misses but I would broadly characterise results to be fairly strong especially in context of the guidance that the companies have given. There is much higher visibility especially the near-term visibility based on the strong sign-ins as well as strong hiring trends.” He added, “In terms of which companies posted numbers slightly better than expected on most parameters I would say Wipro can be characterised within that.” On Wipro he said, “We have an add rating on Wipro, we don’t think that the upside potential is significant, there has been a fair amount of re-rating that has happened and the discount to valuations to larger peers is a lot lower so to that extent I would say lot of positives are getting factored into this.” Read more.

Market Watch: Rahul Sharma of Equity99 Advisors

LT Foods is a buy at current market price with a target of Rs 85, stop loss at Rs 67.

COVID surge: CRISIL maintains India’s FY22 GDP forecast at 11%

India’s daily infections recorded the highest number of cases in a single day among countries worldwide in the last week, and daily deaths have crossed the peak of the first wave. CRISIL has written a report on the impact on key economic indicators and to discuss that CNBC-TV18 spoke to Dipti Deshpande, Senior Economist at CRISIL​. On the second wave, Deshpande said, “The second wave was anticipated, what was not is the extent of spread, the rapid spread and its impact it is causing on healthcare. So lockdown and restrictions have become inevitable in certain parts of the country and therefore an impact on the economy is definitely going to happen to some extent.” Read here.

TVS Motors Q4FY21 preview: Revenue growth seen at 51%; margins to also improve

TVS Motors will be reporting its Q4FY21 earnings today. The company is expected a report a good set of numbers as it has been a very good quarter, especially for the scooter and motorcycle segment. The revenues are expected to grow 51 percent and the EBITDA is expected to grow by 83 percent, while margins could improve to 9.2 percent versus 7.6 percent the same time last year. Overall volumes went up 45 percent year-on-year (YoY) and the net realization could go up by about 5 percent because of the BS-VI product cost that was passed on to the consumer. Gross margins may decline by about 270 basis points because of higher raw material costs, but EBITDA margins overall will rise because of better operating leverage. Read here.

Market Watch: Sunil Subramaniam, MD & CEO, Sundaram Mutual Fund

On Markets | There is a short term blip and there is going to be panic selling in maybe some counters, but as a long term player, it is a good opportunity to buy because all things will pass and a year down the road this will be just like a bad dream.

On Sectors | Manufacturing will give you the opportunity to buy at reasonable prices for a longer period, but services will see a sharper correction and sharper bounce back. So, buying those stocks now makes sense.

Heena Naik, Research Analyst – Currency, Angel Broking

In its two day meeting ending tomorrow i.e 28th April 2021, the US Federal Reserve is expected to continue with its dovish tone. They are expected to leave monetary policy rates and quantitative easing monthly asset purchases unchanged. However, given the improvement in some key macro data points, the odds of an earlier-than-anticipated rate increase are rising. As the US economy continues to reopen and the pace of vaccination rise, markets expect Q1 GDP data to be decent, led by consumer spending backed by stimulus. With outlook on the jobs market improving, expectations are that the US GDP will grow in double-digits in the second quarter. The committee is expected to acknowledge improvement in economic activity and reiterate that it is in no hurry to scale back asset purchases or increase interest rates.

Coforge | The company has raised Rs 340 crore through issuance of non-convertible bonds on private placement basis.

Oil rebounds, but gains limited amid demand concerns as India reels from COVID-19

Oil prices rebounded on Tuesday after falling in the previous session, but gains are likely to be capped amid growing concern about fuel demand in India, the world’s third-biggest crude importer now slammed by spiralling new coronavirus cases. Brent crude was up 40 cents, or 0.6 percent, at $66.05 a barrel, after dropping 0.7 percent on Monday. US oil gained 40 cents, or 0.7 percent, to $62.31, having declined by 0.4 percent in the previous session.

Positive on banks and financials; IT looks expensive: Ashmore’s Ashwini Agarwal

Ashwini Agarwal, co-founder & partner of Ashmore Investment Management remains positive on banks and financial stocks. Speaking in an interview with CNBC-TV18, he said, “On financial services and banks, across the board, we remain fairly positive and our sense is that balance sheets are clean now, heavy provisioning behind us, loan growth is picking up. So yes, the framework for sustainable, superior growth and earnings growth, beating topline growth is there for financial services and bank and therefore, positively inclined towards the sector. As of now, I am worried about the earnings momentum and slowing growth because of the restrictions that have been imposed. However, broadly I do not have a significant upside or a downside view on the market but we continue to look for opportunities.” Watch here. 

Positive on PLI beneficiary stocks; like Vinati Organics, Tata Steel, Laurus Labs: O’Neil Global

“We are positive on production linked incentive (PLI) beneficiary stocks,” said Randy Watts, CIO of O’Neil Global Advisors, on Tuesday. Watts said that they like Dr Lal PathLabs, Laurus Labs, and Apollo Hospitals Enterprises in the midcap pharma space. Speaking in an interview with CNBC-TV18, he said, “I do like PLI beneficiary stocks and India is going to be a big beneficiary as offshoring moves from China into India. One thing that has happened due to pandemic is a lot of the global companies are trying to diversify their supply chain. They found that they have been too dependent on certain countries like China, I think that’s going to go to India’s benefit.” “We like a lot of the generic manufacturers in India. We also like lab companies like Dr Lal PathLabs, Laurus Labs and obviously, the hospital companies are doing well like Apollo Hospitals. So we do like healthcare in India. The other one I like is Vinati Organics in the specialty chemicals space,” said Watts. Watch here.

Goldiam International bags export order worth Rs 70 crore

Shares of Goldiam International rallied over 6 percent after the company received additional export orders worth Rs 70 crore from its International clients for manufacturing of diamond-studded designed gold jewellery. The aforesaid order will be delivered within coming 100 days, with this additional order, Goldiam Group’s order book crosses aggregate of Rs 150 crore as on date.

Emkay Global Financial Services on Tech Mahindra

We largely retain our FY22/23E EPS (<1% change), factoring in Q4 performance, strong deal intake/pipeline and healthy cash conversion. We maintain Buy with a target price of Rs 1,190 at 18x FY23E EPS, considering anticipated acceleration in revenue growth, margin resilience, healthy cash conversion, improving capital allocation and reasonable valuations.

SBI Cards Q4: Management says stress on balance sheet slowly coming down

SBI Card’s Q4 earnings looked weak across parameters. The total income has declined for the company and asset quality has also deteriorated. Rama Mohan Rao Amara, MD & CEO, SBI Card said, “Asset quality is the main consideration, but the better way to compare the GNPA of 4.99 percent is to compare it vis-a-vis with the December quarter where the pro forma GNPA was around 4.51 percent so that way there is a marginal increase.” He added, “After lifting of the standstill, after the Supreme Court judgement that portfolio slipped into, we recognised it and absorbed it and we have written it off.” Watch here.

Tech Mahindra shares fall after Q4 net profit dips: Should you buy, sell or hold?

The share price of Tech Mahindra fell on Tuesday after the IT services major reported a 17.4 percent sequential fall in consolidated net profit at Rs 1,081.4 crore for the quarter ended March 2021. The company’s net profit in the previous quarter was Rs 1,309.81 crore.

Tech Mahindra’s results are similar to its peers’ with underwhelming revenue growth, steady cost control and strong deal wins, said CLSA. The management indicated its deal pipeline remains robust and it is hopeful of conversion staying strong, at least in 1Q22, which is positive for its FY22 and FY23 revenue growth outlook, it said. Read more.

Buzzing | Jindal Power and Steel shares at 52-week high

The share price of Jindal Power and Steel (JSPL) rallied over 3 percent to hit a fresh 52-week high after the company’s board approved divesting its entire equity interest in Jindal Power to Worldone, a promoter group company, for Rs 3,015 crore. The board of directors of JSPL has approved the divestment of its entire equity interest (representing 96.42 percent of the issued and paid-up capital) in Jindal Power by way of sale of shares, to Worldone Pvt Ltd, a promoter group company and a related party to the company, JSPL said in a regulatory filing.