Second Day Of Gains For Sensex, Nifty; Banks, Cement Stocks Lead
Catch all live updates on share prices, index moves, corporate announcements and more from the Sensex and Nifty, today.
KEY HIGHLIGHTS
Closing Bell: Second Day Of Gains
Indian equity markets outperformed their Asian peers in today's session with the benchmark indices ending at the highest point of the day.
The S&P BSE Sensex ended 1.26% higher at 38,528 while the NSE Nifty 50 index ended with gains of nearly 150 points at 11,385, up 1.23%. Both benchmark indices ended higher for the second day in a row.
Banks were the top performers in today's session. The Nifty Bank ended with gains of over 2%, as did the Nifty Media index.
Nifty Realty was the top sectoral gainer, ending the day's trade with gains of 4%.
Nifty Pharma was the only sectoral laggard, ending little changed but with a negative bias.
Broader markets were in-line with the benchmarks. The midcap index ended with gains of 1.2% while the smallcap index ended 1.5% higher.
The India Volatility Index ended lower for the second straight day, down 4.1% at 20.42.
Market breadth remained in favour of the gainers. 1,294 stocks on the NSE ended with gains while 518 declined.
How Have The Sectoral Indices Fared Today
The 'Lost Year' For VRL Logistics
Buzzing Stock: Cholamandalam Investment & Finance
- Third best performer on the BSE Midcap index
- Gains as much as 9.6% to Rs 232.6
- Biggest single-day gain in two months
- Trades at the highest level in five months
- Snaps two-day losing streak
- Today's volumes are 82% higher than its 20-day average
- Nearing 200-Day Moving Average at 239.4
- Has doubled from its 52-week low of Rs 117.4 on April 7, 2020
- 27 out of the 31 analysts tracking the stock have a buy recommendation; 2 sell calls
- Return potential of the stock as per Bloomberg data is 9%
Populism A Key Risk To Indian Economy, Says JPMorgan
India is likely to see a surge in populist policies as it battles the world's third-highest Covid-19 cases. This will be a key risk for companies who's fortunes are closely tied to the economy, Bloomberg News reports citing a note from JPMorgan Chase & Co.
"Populism is a justifiable concern for investors," analysts led by James Sullivan wrote in a note.
The S&P BSE Sensex's 12-month price-to-earnings ratio hit a record earlier this month after the gauge rebounded nearly 50% from its March lows.
"We advise minimal or reducing exposure to sectors linked to growth and investment cyclicals like financials, material and energy except Reliance Industries," Sullivan said in the note.
The brokerage has advised focusing on consumer services and healthcare-oriented companies instead.
Buzzing Stock: Adani Enterprises
- Gains as much as 8.7% to Rs 215
- Biggest single-day gain since May 2019
- Trades at the highest level in five months
- Up for the second straight day
- Has gained in eight out of the last nine trading sessions
- Up 20% in the last nine trading sessions
- Today's volumes are nearly triple its 20-day average
- Stock in overbought territory with Relative Strength Index (RSI) at 78
- Has gained 85% from its 52-week low of Rs 116 on March 24, 2020
- The stock trades 4.8% higher than its 12-month consensus price target of Rs 204, implying a negative return potential
Nifty Bank Recovers 400 Points From Day's Low
Earnings Reaction: KNR Constructions Q1FY21
- Revenue up 3% to Rs 479.4 crore
- Net profit down 17% to Rs 39.8 crore
- Ebitda up 5% to Rs 94.4 crore
- Ebitda margin at 19.7% from 19.4%
- Net profit declines due to lower other income
- Other income down 64% to Rs 6.1 crore
- All numbers are standalone and compared on a year-on-year basis
Shares ended 5.6% higher at Rs 240 - the highest level in five months.
Markets At 2:10 P.M.
- Benchmark indices extend gains to trade at the day's high
- Nifty up 1.1% at 11,372
- Sensex up 1.1% at 38,474
- Nifty Bank up 1.7% at 22,063
- Nifty Midcap index up 1.2%
- Nifty Smallcap index up 1.5%
- India Volatility Index down 3% to Rs 20.7
- Nifty Realty remains the top sectoral gainer; up 4.5%
- Nifty Media is the other major sectoral gainer; up 2.2%
- Nifty Auto and Nifty Metal gain over 1% each
- Nifty Pharma remains the only sectoral laggard; down 0.2%
- Grasim remains the top Nifty gainer; up 7.5%
- BPCL is the top Nifty laggard; down 1.3%
- 1,265 stocks on the NSE trade with gains while 521 decline
Money Market Update
The rupee managed to post gains in today's session after staging a recovery from the lowest point of the day.
The currency ended at 74.76 against the U.S. Dollar as compared to Monday's close of 74.88, which was also the intra-day low in today's trading session.
Most other Emerging Market currencies managed to outperform the U.S. Dollar in today's session. The rupee ended as the third-best performer in Asia today.
Yield on the 10-year government bond ended at 5.955% as compared to Monday's close of 5.951%.
Active Stock Options
- TCS' 2,300 Call: Premium up 4.1% to Rs 39.45. The contract has added 1,404 shares in Open Interest.
- Maruti's 7,000 Call: Premium up 33.1% to Rs 97.5. The contract has added 116 shares in Open Interest.
- IndiGo's 1,200 Call: Premium up 91.6% to Rs 53.45. The contract has added 255 shares in Open Interest.
Sixth Day Of Gains In The Last Seven Sessions For The Media Index
Earnings Reaction: Fertilisers & Chemicals Travancore Q1FY21
- Revenue up 57% to Rs 551.8 crore
- Net loss narrows to Rs 17.5 crore from Rs 80.1 crore
- Ebitda gain of Rs 34.5 crore from Ebitda loss of Rs 11.2 crore
- Net worth of the company has been fully eroded
- Cash & cash equivalents and other bank balances at Rs 873.8 crore
- No material uncertainty which may cast significant doubt on the company's ability to continue as a going concern.
- All numbers are consolidated and compared on a year-on-year basis
Shares gained as much as 6.6% to Rs 52.45, post the announcement. The stock trades higher for the second straight day.
Buzzing Stock: Ashok Leyland
- Top gainer on the Nifty Auto Index
- Gains as much as 9.7% to Rs 68.8
- Trades at the highest level in five months
- Up for the ninth straight day
- Longest winning streak since March 2019
- Has gained in 11 out of the last 12 trading sessions
- Up 40% in the last 12 trading sessions
- Today's volumes are more than double its 20-day average
- Stock trades in overbought territory with Relative Strength Index (RSI) at 83
- Breaks above its 200-Day Moving Average of 63.4
- Has doubled from its 52-week low of Rs 33.7 on March 25, 2020
- 28 out of the 45 analysts tracking the stock have a buy recommendation; 5 sell calls
- The stock trades 2.3% higher than its 12-month consensus price target of Rs 65.95, implying a negative return potential
European Markets Open Weak
Markets in Europe have opened lower in response to concerns over virus-related economic threats, including rising cases in Germany.
The Stoxx 600 has opened with declines of 0.6% with all the sectors trading with losses. Banks, Auto, Healthcare are the top laggards.
Asian markets have ended mixed while futures on the Dow Jones are trading lower by 100 points.
Brent crude trades 0.4% lower at $45.2 per barrel while Gold is back at the $2,000/Oz mark, gaining 0.7% to $2,000/Oz.
Let's take a look at how benchmarks across Europe have opened:
- Euro Stoxx 50 down 0.7% at 3,283
- DAX down 0.7% at 12,835
- CAC down 0.7% at 4,939
- FTSE 100 down 0.65% at 6,086
- IBEX 35 down 0.75% at 7,037