Sensex Ends At Over Two-Month High; Nifty Shy Of February Record 

Indian equity benchmarks gained amid investors optimism that the economy will rebound strongly from the world's worst Covid-19 outbreak.

The S&P BSE Sensex gained 0.75% to 51,017.52, its highest close since March 10. Fourteen of the 19 sector sub-indexes compiled by BSE Ltd. climbed, led by a gauge of realty companies.

NSE’s Nifty 50 ended 0.61% higher at 15,301.45 and was 12 points away from its February record close. The stock benchmark has risen about 9% so far this year, compared to a 3% rise in the regional benchmark MSCI Asia Pacific Index.

“Indian stocks have showed no reaction to the local Covid-19 situation so far,” UBS Global Wealth Management strategists Adrian Zuercher and Crystal Zhao wrote in a recent note. “This is because the market is already looking to its growth recovery, which has likely been pushed out by a quarter.”

India remains one of UBS’s most preferred markets alongside China, Singapore and Malaysia, the strategists added.

India’s government is preparing a stimulus package for sectors worst affected by the deadly outbreak, people familiar with the matter have told Bloomberg News.

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

• Net income Rs 468 crore, +18% YoY, estimate Rs 476 crore
• Revenue Rs 1620 crore, +0.6% YoY, estimate Rs 1,072 crore
• Total costs Rs 1010 crore, -6.5% YoY
• Other income Rs 7.93 crore, -38% y/y
• Dividend per share Rs 0.75

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

• Net income Rs 210 crore vs. Rs 104 crore YoY, estimate Rs 190 crore
• Revenue Rs 2,030 crore, +50% y/y
• Total costs Rs 1,760 crore, +45% y/y
• Ebitda Rs 336 crore, estimate Rs 297 crore
• Dividend per share Rs 2.80

• Grasim options volume 3x the 20-day average, with 14,680 calls changing hands vs 3,066 puts
  • Stock up 2.4%, volume 2x the 20-day average for this time of day
• Eicher Motors options volume 1.9x the average, with 5,666 calls vs 2,129 puts
  • Stock down 0.2%, volume 1x the average
• Titan Co options volume 1.8x the average, with 26,556 calls vs 10,286 puts
  • Stock up 1.8%, volume 1.6x the average
• India VIX Index down 0.6%

Shares of the Pune-based maker of energy-conservation equipment rose as much as 8.6% in Mumbai, in their biggest single-day gain since April 7, after its fourth-quarter earnings.

Thermax’s order inflows have seen a broad-based recovery across various sectors from cement, steel, food & beverages, with the company witnessing normalcy returning to its operations, ICICI Securities Ltd. said in a note.

• Q4 Ebitda more than doubled to Rs 140 crore on a YoY basis but dropped 5.4% on a QoQ basis; the year-on-year Ebitda rise was aided by cost control measures and better execution in key business segments through higher raw material costs weighed on the numbers
• The company won contracts valued Rs 1500 crore in during the quarter, taking its order book to Rs 5220 crore, flat on YoY basis
• Order inflows and order book continue to remain the key concerns for analysts of the company, given private capex is muted, ICICI Securities said.

Shares of the Indian direct-to-home television services provider rallied as much as 15% before paring gains to 9.1%. This follows their 20% surge on Tuesday.

• Stock trading volume is 379% of 3-month avg
• Stock has surged about 82% so far in May after losing 31% in the first four months of the year

Indian equity benchmarks opened with marginal gains amid steady trade in Asia led by real estate and drugmakers while metal and power companies falter.

The S&P BSE Sensex rose as much as 0.5% to 50,901. The benchmark gauge has entered a bearish death cross pattern, with its 50-day moving average crossing below the 100-day average for the first time since March 2020, when global equities saw the worst impact from the pandemic.

The NSE Nifty 50 Index also advanced by a similar magnitude. The key equities index is about 0.5% away from surpassing its record high touched in February. Fourteen of the 19 sector sub-indexes compiled by BSE Ltd. climbed, led by a gauge of realty companies.

In earnings, 22 of the 38 Nifty 50 companies that have posted quarterly results have missed analysts’ estimates, while 14 have beaten or met them.

Asian stocks were largely steady Wednesday after softer economic data weighed on U.S. equities. Treasuries trimmed a rally spurred by Federal Reserve officials again predicting transitory price pressures.

Shares fluctuated in Japan and climbed in Hong Kong. Chinese equities edged up after surging the most since July on Tuesday. U.S. equity contracts rose and Nasdaq 100 futures outperformed, after the S&P 500 slipped and the tech-heavy gauge made a small gain.

India’s SGX Nifty 50 Index futures for May delivery fell 0.3% to 15,199.50, while MSCI Asia Pacific Index +0.2%. The NSE Nifty 50 Index added 0.1% Tuesday to 15,208.45.

Treasury yields remain below this year’s peaks, with more Fed officials joining a chorus downplaying price pressures. A dollar gauge touched the lowest level since early January.

Oil was steady and gold erased 2021 losses. Bitcoin climbed toward $40,000 in a partial recovery from last week’s crypto rout.

Back home, Thermax, AstraZeneca, Bayer Crop, Godawari Power, VIP may react as the companies reported quarterly results after the market closed Tuesday. BPCL, Berger Paints, Cummins, Manappuram, V-Guard, Pfizer are among the companies scheduled to report earnings Wednesday. Foreign investors bought net Rs 1,120 crore of stocks on Monday, according to NSDL website.