Sensex, Nifty Log Second Week Of Gains Helped By A Rally In Metal Stocks
A person looks up at a screen and an electronic ticker board outside the Bombay Stock Exchange (BSE) building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Sensex, Nifty Log Second Week Of Gains Helped By A Rally In Metal Stocks

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India equity benchmarks capped a second week of gains, boosted by lenders as the central back announced surprise support to tackle the coronavirus situation, while the global metal rally pushed resources stocks to near-record levels.

The S&P BSE Sensex climbed 0.5% to 49,206.47, taking its weekly advance to 0.87%. The NSE Nifty 50 Index gained 0.67% to 14,823.15, ending the week up 1.3%. All but four of the 19 sector sub-indexes compiled by BSE Ltd. climbed, led by a gauge of metal companies.

Stocks climbed this week after the Reserve Bank of India provided additional liquidity to banks for lending to vaccine makers, hospitals and providers of health services, as well as easing rules for small businesses to restructure loans.

Most stocks across Asia rose after positive U.S. economic data and better-than-expected growth in China’s exports. The S&P BSE Metal Index has risen about 70% this year, helped by global prices and the 10-constituent gauge is nearing its highest level since January 2008.

Bajaj Finance Ltd. and ICICI Bank Ltd. contributed most to Sensex’s growth over the past fortnight, while HCL Technologies Ltd. was the worst performer in that period.

India Bonds Fully Sold In Auction On Hope RBI Will Buy The Stock

India’s central bank sold a planned 320 billion rupees ($4.4 billion) of bonds at its weekly sale on Friday, with many traders expecting the monetary authority to buy off the stock later.

The Reserve Bank of India bought 100 billion rupees of the 6.64% 2035 bond at 6.5881% as against 6.58% estimated in a Bloomberg poll and purchased another 110 billion rupees of the 2026 bond at a 5.5442% yield. Earlier, the low underwriting fees had indicated that the auction will be well bid.

Dabur India Q4 Net Profit Misses Estimates

Dabur India reported net income for the fourth quarter that missed the average analyst estimate.

  • Net income Rs 378 crore, +35% YoY, estimate Rs 432 crore
  • Revenue Rs 2,340 crore, +25% YoY, estimate Rs 2454 crore
  • Total costs Rs 1970 crore, +25% YoY
  • Other income Rs 84.98 crore, +12% YoY
  • Sales volume +25.4%
  • Ebitda Rs 527 crore, +23% YoY, estimate Rs 515 crore
  • Ebitda margin 22.6% vs. 22.9% YoY
  • Dividend per share Rs 3

HDFC Q4 Net Profit Beats Estimates

HDFC reported net income for the fourth quarter that beat the average analyst estimate.

  • Net income Rs 3,180 crore, +43% YoY, estimate Rs 2,920 crore (Bloomberg Consensus)
  • NII Rs 4,065 crore vs Rs 3,564 crore (up 14% YoY)
  • GNPA: 1.98% vs 1.91% (QoQ)
  • Net interest margin 3.5%, estimate 3.27%
  • Dividend per share Rs 23

Key Announcements

  • Recommended to Increase borrowing powers to up to Rs 6 lakh crore
  • Approves raising Rs 1.25 lakh crore via bonds for one year period
  • Approves Keki Mistry re-appointment as managing director for three years

Read the full report here.

Vedanta Jumps 7.1%, Most In 10 Weeks

Vedanta Ltd. rose 7.1%. Trading in the company's call options was double the average. Trading volume was triple the average for this time of day.

  • The stock was the best performer among its peers.
  • Trading volume was 29.6 million shares, triple the 20-day average of 11 million shares for this time of day.
  • Trading in the company's put options totalled 9,984 contracts, compared with the average of 3,853 over the past 20 days. Trading in the company's call options totalled 24,207 contracts, compared with the average of 10,004 over the same period.
  • The relative strength index on the stock was above 70, indicating it may be overbought.

Meanwhile, the metal rally continues...

Sensex, Nifty Log Second Week Of Gains Helped By A Rally In Metal Stocks
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