Stock Market Live Updates: Sensex jumps over 300 points, Nifty above 15,500 led by metals, FMCG stocks
Market Watch: Aditya Agarwala of Yes Securities
- Muthoot Finance is a buy with a stop loss of Rs 1,250 and a target price of Rs 1,350.
- Lupin is a buy with a stop loss of Rs 1,165 and a target of Rs 1,300.
Divi's Labs shares jump 4% to hit new high on strong Q4
The share price of Divi's Laboratories jumped 4 percent to hit a new high on Monday after the drug maker reported robust results for the March quarter. The company's net profit rose 24.5 percent in Q4 to Rs 488 crore as compared to Rs 392 crore in the same quarter last year. Revenue from operations was also up nearly 25 percent to Rs 1718 crore against Rs 1,376 crore last year during the same period. EBITDA margins further expanded 807 bps to 40.1 percent YoY. The stock rose 4 percent to its new high of Rs 4,284.05 per share on the BSE. The company benefited from a low base in the year-ago quarter which was hit by the COVID-19-led national lockdown. However, the company's earnings showed strong traction in 2020-21 due to a surge in demand for bulk drugs caused by the pandemic. The board has recommended a dividend of Rs 20 (i.e. 1,000 percent) per equity share of the face value of Rs 2 each for the financial year 2020-21 (FY21). Read here.
PNB Housing Fin shares hit 20% upper circuit after Board approves raising Rs 4,000 crore
Shares of PNB Housing Finance hit a 20 percent upper circuit at Rs 525.65 apiece on the NSE after the company announced that its board approved a capital raise of up to Rs 4,000 crore, led by entities affiliated to Carlyle Group Inc. Pluto Investments S.a.r.l., an affiliated entity of Carlyle Asia Partners IV, L.P. and Carlyle Asia Partners V, L.P. has agreed to invest up to Rs 3,185 crore through a preferential allotment of equity shares and warrants, at a price of Rs 390 per share. Existing shareholders of the company, funds managed by Ares SSG and General Atlantic, are also participating in the capital raise, PNB Housing Finance said in a regulatory filing. As part of this transaction, Salisbury Investments Pvt. Ltd., the family investment vehicle of Aditya Puri, Senior Advisor for Carlyle in Asia and the former CEO & Managing Director of HDFC Bank, will also invest in the capital raise. Aditya Puri is expected to be nominated to the PNB Housing Finance Board as a Carlyle nominee Director in due course, it said.
Nish Bhatt, Founder & CEO, Millwood Kane International
The price for the third tranche of SGB is fixed at Rs 4,889/gm. Investment in Sovereign Gold Bond is picking up pace, as per data the Tranche-1 of SGB saw investment in excess of Rs 2,500 crore. The high interest was also due to lower prices of Gold which reflected in the subscription price for the SGB. The advice and aim of the government, that investment should move from physical to paper gold is picking up pace. The subscription figures for FY21 were impressive and FY22 is likely to mirror it. Investment in SGB is a superior alternative to physical gold. Investment in SGB saves the cost of buying, storing, and selling the physical gold bar or coins.
Gold prices show promise of upside from current levels in the near future, but heavy flows in equities may affect the rally for the yellow metal. As we move forward, the economic data, monetary policy, and stance by RBI & US Fed, any further stimulus package from India, the US, and other advanced nations will guide the gold prices along with the concerns related to the virus.
M&M gives conservative guidance for tractor industry; Phillip Capital downgrades to Sell
Mahindra and Mahindra (M&M) gave conservative guidance for the tractor industry. The management said the tractor industry will grow in the low single digits in FY22. This compares to the 28 percent growth in FY21. The management also raised the capital allocation plan to Rs 17,000 crore from Rs 12,000 crore floated earlier. This could impair the free cash flow generation of the company. Global brokerage firm CLSA raised its target price on M&M to Rs 1,090 per share from Rs 1,060 earlier expecting better margins for the auto and tractor business. However, Phillip Capital has downgraded M&M to a ‘sell’ and lowered the FY22 and FY23 estimates on the back of the conservative tractor guidance as well as the raised capital allocation plans. Watch here.
PNB Housing Finance | PNB Housing Finance announced that its board has approved a capital raise of up to Rs 4,000 crore, led by entities affiliated to The Carlyle Group Inc.
Bank of Baroda shares fall over 5% after lender posts loss in Q4
The share price of state-owned Bank of Baroda fell over 5 percent on Monday after the lender posted a loss in the March quarter against expectations of profit due to higher tax expenses and a rise in bad loan provisions. It reported a standalone net loss of Rs 1,046.50 crore for the March quarter versus a net profit of Rs 506.59 crore in the year-ago quarter. For the fiscal year 2020-21, the bank reported a net profit of Rs 828.95 crore, up 52 percent from Rs 546.18 crore. Brokerages were mixed on the stock after the results. While JPMorgan and CLSA were bullish, Credit Suisse and Morgan Stanley remained neutral. More here
M&M dips over 6%; Should investors buy, sell or hold?
Shares of Mahindra & Mahindra (M&M) corrected over 6 percent in early trade on Monday on profit-booking as the auto major kept conservative guidance for the tractor industry despite reporting a profitable quarter. Meanwhile, brokerages remained mixed on outlook and set modest price targets on the M&M stock amid persisting pandemic woes. Global brokerage firm CLSA increased its core EPS estimates for FY22-23 by 3 percent-5 percent and raised the target price to Rs 1,090 percent from Rs 1,060 earlier and maintained its 'buy' rating. UBS maintained a buy call on the stock on improving return profile and strong outlook. It has set a target price of Rs 1,030 per share. M&M’s Q4 results were in line with UBS estimates. More here
Little known Quant Small Cap tops mutual fund charts with 206% returns
A little-known mutual fund, Quant Small Cap Fund, claimed the top spot in performance among all equity mutual funds in India last year with an impressive 206 percent return. Unknown to many in the past, it changed hands in 2018 and was lagging behind its peers even in the year 2019. The erstwhile Escorts Mutual Fund was sold to Quant Capital in 2018 and has a new management headed by Sandeep Tandon. Incidentally, Quant Capital was part of the Anil Ambani owned Reliance Securities. The company has 13 active mutual funds with an impressive asset under management (AUM) of Rs 1,855 crore. At the time of the buyout, the AUM was at a dismal Rs 235 crore. Only last month, it managed to add assets of Rs 600-700 crore. According to Mint, the rationale behind Quant's success is it follows the ‘VLRT’ strategy of analysing valuation, liquidity, risk, and timing. More here
Bank of Baroda posts net loss of Rs 1,047 crore for March quarter
Bank of Baroda on Saturday reported a standalone net loss of Rs 1,046.50 crore for March quarter 2020-21. The bank had posted a net profit of Rs 506.59 crore in the year-ago quarter. For the fiscal year 2020-21, the bank reported a net profit of Rs 828.95 crore, up 52 percent from Rs 546.18 crore. "Bank moved to a new tax structure thus reporting a loss of Rs 1,047 crore because of DTA (deferred tax asset) reversal. Excluding the impact of the change in the tax regime, the bank would have reported a profit after tax of Rs 2,267 crore in Q4FY21 and Rs 4,143 crore in FY21," it said in a release.
LIC's holding at all time low on profit booking
LIC's holding across 296 companies where its holding is more than 1 per cent, slipped to an all-time low of 3.66 per cent as on March 31, 2021, down from 3.70 per cent as on December 31, 2020 and from all-time high of 5 per cent as on June 30, 2012, as per primeinfobase.com, an initiative of PRIME Database Group. According to Pranav Haldea, Managing Director, Prime Database Group, this was on account of profit booking by India's largest institutional investor. In INR value terms though, it reached an all-time high of Rs 7.24 lakh crore in quarter ending March 31, 2021, an increase of 6.30 per cent over previous quarter. More here
Morning market quote from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
"There are two conflicting news for the market now. The steadily declining Covid fresh cases (provisionally 1.53 lakhs during the last 24 hrs ) continue to be positive. Progressive unlocking has started in many states paving way for pick up in economic activity. But the negative news is rising fresh cases in countries like China & Vietnam. This might impact sentiments for Asian markets in general. Usually, when markets touch new highs, some consolidation with minor corrections happen even in bull markets. This can happen since Nifty touched new highs last Friday. Auto numbers of May will be very dismal and some market reaction can be expected in this segment. Banking appears to be on a strong wicket in the light of new reliefs announced for the MSME segment"
Opening Bell: Sensex, Nifty open flat; auto drags, FMCG stocks gain
Indian indices started the week on a flat note with gains in FMCG, pharma and metal sectors capped by losses in auto and banking indices. At 9:18 am, the Sensex was down 53 points at 51,369 while the Nifty was down 11 points at 15,424. On the Nifty50 index, ITC, ICICI Bank, Bharti Airtel, RIL and TCS were the top gainers while M&M, Cipla, Tata Motors, L&T and Eicher Motors led the losses.
Market Watch: Prakash Diwan, Market Expert
On Bank of Baroda (BoB)
You cannot keep on avoiding the PSU banks in the portfolio anymore because the kind of alpha they could generate will be probably much more superior than the historic past especially in the recent times. So you do add about 12-20 percent of your allocation on the BFSI side to some of these PSU banks. BoB numbers look quite positive to me. You will have to start allocating to the PSU banks, Punjab National Bank (PNB) maybe if you are a little bit of a risk taker. I would definitely look at allocating some more money to PSU banks now.
On IndiGo
IndiGo is certainly a good bet. Last week we have seen a little bit of a build up there which has begun but I think you will probably see it soar as much as the aircrafts do, you will see the prices also soar in the next six months.
Glenmark Q4 net profit up 6% at Rs 233.87 crore
Drug firm Glenmark Pharmaceuticals has reported a 6.15 percent rise in its consolidated net profit to Rs 233.87 crore for the quarter ended March 2021 on account of higher sales. The company had posted a net profit of Rs 220.30 crore in the corresponding period of the previous fiscal, Glenmark said in a late regulatory filing on Friday. Its consolidated revenue from operations stood at Rs 2,859.9 crore for the quarter under consideration. It was Rs 2,767.5 crore for the same period a year ago, it added. For the fiscal ended March this year, the company posted a net profit of Rs 970.1 crore as against Rs 776 crore in the previous fiscal, Glenmark said. More here
Eight of top-10 most valued firms add over Rs 1.39 lakh crore in m-cap
Eight of the top-10 most valued companies together added Rs 1,39,566.52 crore in market valuation last week, with Reliance Industries, TCS and Infosys emerging as top performers. On a weekly basis, the BSE benchmark Sensex gained 882.40 points or 1.74 percent. Only Hindustan Unilever and Bajaj Finance saw losses in their market capitalisation for the trading week closed on Friday. Among the gainers, Reliance Industries saw its market valuation jump by Rs 59,590.77 crore to Rs 13,28,049.94 crore. Tata Consultancy Services added Rs 23,562.96 crore to take its valuation to Rs 11,63,018.74 crore and Infosys gained Rs 21,395.27 crore to Rs 5,98,604.10 crore. The market capitalisation of State Bank of India rallied Rs 18,697.06 crore to Rs 3,76,663.23 crore and that of Kotak Mahindra Bank gained Rs 8,435.06 crore to Rs 3,56,849.67 crore. More here
Petrol price increased by Rs 3.83 & diesel by Rs 4.42/litre since May 3
Fuel Price Hiked | Oil marketing companies ( IOC, BPCL & HPCL) hike #petrol price by 28-29 paise & #diesel by 26-28 paise today.
Petrol price increased by Rs 3.83 & diesel by Rs 4.42/litre since May 3 pic.twitter.com/wHy5IhRsEX
— CNBC-TV18 (@CNBCTV18Live) May 31, 2021First up, here is quick catchup of what happened in the markets on Friday
Benchmark index Nifty50 hit a record high on Friday tracking gains in Asian peers as falling COVID-19 infection rates boosted sentiment. India posted its lowest daily rise in COVID-19 cases in over a month. The Sensex ended 307 points higher at 51,423 while the Nifty rose 98 points to end at a new closing high of 15,435. Both indices rose over 1.5 percent for the week. Nifty50 rose as much as 132 points to hit a new intra-day high of 15,469.65, crossed the earlier level of 15,431.75. Back home, on the Nifty50 index, RIL, Grasim, Adani Ports, M&M and Coal India were the top gainers while Sun Pharma, Shree Cement, Bajaj Finserv, Dr Reddy's, and Bajaj Finance led the losses.
Welcome to CNBC-TV18's Market Live Blog
Good morning, readers! I am Pranati Deva from the market's desk of CNBC-TV18. Welcome to our market blog, where we provide rolling live news coverage of the latest events in the stock market, business and economy. We will also get you instant reactions and guests from our stellar lineup of TV guests and in-house editors, researchers, and reporters. If you are an investor, here is wishing you a great trading day. Good luck!
Comments
Post a Comment