Sensex, Nifty Log Best Single-Day Gains In Over A Month Led By Lenders
The National Stock Exchange (NSE) in Bandra Kurla Complex (BKC) in Mumbai, India. The Nifty 50 uses free float market capitalisation to decide weightage of its 50 stocks. (Photographer: Dhiraj Singh/Bloomberg)

Sensex, Nifty Log Best Single-Day Gains In Over A Month Led By Lenders

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India equity benchmarks logged their best single-day gains in more than a month boosted by the country’s largest lenders.

The S&P BSE Sensex added 1.74% to 49,580.73, its best gains since March 30, while the NSE Nifty 50 Index advanced by a similar magnitude. Seventeen of the 19 sector sub-indexes compiled by BSE Ltd. climbed, led by a gauge of banks.

Sensex, Nifty Log Best Single-Day Gains In Over A Month Led By Lenders

Both the Sensex and the Nifty ended last week lower amid concerns that coronavirus cases may trigger a national lockdown. The world’s worst outbreak saw the daily infection tally moderate to around 300,000 for the last few days from a peak of 410,000 a week ago.

“Markets are rejoicing the early signs of virus peak and stability in the global markets. But we feel participants shouldn’t read much into a single-day rise and wait for a decisive break above 15,000 in Nifty,” Ajit Mishra, vice president-research at Religare Broking Ltd., said in an emailed statement. “Needless to say, the performance of the banking and financial pack holds importance. Meanwhile, participants should continue with a positive yet cautious approach and maintain their focus on risk management.”

Bharti Airtel Q4 Net Income, Revenue Miss Estimates

Bharti Airtel reported net income for the fourth quarter that missed the average analyst estimate.

  • Net income Rs 759 crore vs. loss Rs 5,240 crore YoY, estimate Rs 959 crore
  • Revenue Rs 25,750 crore, +12% YoY estimate Rs 26,165 crore
  • Total costs Rs 13,420 crore
  • Other income Rs 83.9 lakh
  • India mobile ARPU Rs 145
  • Ebitda margin 48.9%, estimate 47.6%
  • Capital expenditure Rs 6,850 crore
  • Ebitda Rs 12,580 crore, estimate Rs 12,626 crore

COMMENTARY AND CONTEXT

  • Q4 exceptional gain Rs 440 crore vs Rs 6,860 crore expense
  • See no material impact from pandemic as of now; management will continue to closely monitor and evaluate the impact of any material changes in the macro-economic situation, other factors
  • India business quarterly revenues up 17.5% YoY
  • Q4 capex spend Rs 6,846 crore
  • India EBITDA Rs 8,970 crore; EBITDA margin 48.9%
  • Company continues to see strong traction in post-paid business; added ~630,000 post-paid customers Q4 and ~1.9 million over last four quarters
  • Net Debt-EBITDA ratio annualized and including the impact of leases as on March 31, 2021 is at 2.95 times vs 3.19 times as on March 31, 2020
  • Mobile India 4G customers at 179.3 million, up by 13.7 million QoQ

Second Covid Wave to Delay India Earnings Recovery: Moody’s

Sharp rise in new coronavirus infections will disrupt earnings recovery of companies recorded over the past six months; prolonged and wider lockdown will have a severe effect, Moody’s Investors Service write in a note.

  • Restrictions on movement, weaker consumer sentiment to temporarily hit housing, vehicle sales and demand for transportation fuel
    • Still, rising preference for remote working and personal mobility to drive long-term demand for bigger homes, entry-level cars
  • Demand for technology, telecom to remain strong despite the expectation of a slowdown in economic activity over the next few months
  • Steelmakers could see an export boost led by strong global demand; exports are attractive as local steel prices are lower than international, note said
    • Tata Steel Ltd., JSW Steel Ltd to have limited impact on production from diverting part of oxygen production toward medical use
  • Slowdown in the construction activity to cut cement demand; government’s high spending on infrastructure and a pickup in housing demand will support sector fundamentals and earnings for UltraTech Cement Ltd.
  • Weaker entities could face liquidity pressure; companies with weak balance sheets may face problems in refinancing

SBI Shares Up 6.8%, Most In 14 Weeks

State Bank of India rose 6.8%. Trading in the company's call options was quadruple the average. Trading volume was double the average for this time of day.

  • Trading volume was 111.9 million shares, double the 20-day average of 49.5 million shares for this time of day.
  • Trading in the company's call options totalled 162,756 contracts, compared with the average of 44,909 over the past 20 days. Trading in the company's put options totalled 65,690 contracts, compared with the average of 27,080 over the same period.
  • Analysts have 47 buy, two hold, and no sell recommendations on the stock.
  • The price target of Rs 475.09 represents a 23% increase from the last price

Adani Green At One-Month High

Shares in Adani Green climbed as much as 5%, touching their highest level in more than a month. They have risen nearly 400% in the past year, giving the company a market value of about $24 billion.

Also read: Adani Green Said in Advanced Talks for SoftBank’s SB Energy

United Spirits Rises For Tenth Session

United Spirits Ltd. is higher for the 10th straight day, on track for the longest winning streak since the period ended Dec. 29, 2017.

United Spirits has gained a total of 9.2% during the streak while the Sensex Index increased 1.3%..

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