Sensex, Nifty Clock Best Weekly Gains In Three Months Led By Banks
India’s equity benchmarks clocked their best week since early February as investors weighed global and domestic economic recoveries from the pandemic.
The S&P BSE Sensex ended 2% higher at 50,540.48 after two days of back-to-back losses and gains during the week. The NSE Nifty 50 Index climbed 1.8%, with both gauges rising the most since March 30. All of the 19 sector sub-indices compiled by BSE Ltd. advanced, led by a gauge of lenders.
JSW Steel Q4 Net Misses Estimate; Approves Raising Up To $2.6 Billion
JSW Steel reported net income for the fourth quarter that missed the average analyst estimate.
- Net income Rs 4,200 crore vs. Rs 2.3 crore YoY, estimate Rs 4,325 crore (Bloomberg Consensus)
- Revenue Rs 26,930 crore, +51% YoY, estimate Rs 26,010 crore
- Total costs Rs 20,750 crore, +22% YoY
- Operating Ebitda Rs 8,440 crore, estimate Rs 7,952 crore
- Dividend per share Rs 6.50
- Approves raising of long-term funds through issue of as much as Rs 7,000 crore of non-convertible debentures with warrants which are convertible into or can be exchanged with shares
- Approves issue of shares or convertible securities of as much as Rs 7,000 crore
- Board also approves rights share issue of as much as Rs 5,000 crore
- Net debt to Ebitda at 2.6x vs. 4.5x YoY; debt has come down by Rs 860 crore
Hindalco Q4 Consolidated Net Beats Estimates
Hindalco reported a consolidated net for the fourth quarter that beat the average analyst estimate.
- Consolidated net Rs 1,928 crore vs. Rs 668 crore YoY, estimate Rs 1,848 crore Bloomberg Consensus)
- Ebitda Rs 5845 crore, estimate Rs 4835 crore
- Sales Rs 40,507 crore, +38% YoY
- Parent net Rs 495 crore, +52% YoY
- Parent sales Rs 14,410 crore, +44% YoY
- Dividend per share Rs 3
- Aleris business continues to positively impact the overall top line and EBITDA
JPMorgan Sees Risk For Indian Stocks As Small Players Pile In
The rise of retail investors in Indian equities poses a risk that any slide in sentiment could trigger a liquidity squeeze and price corrections, as many individual investors would seek to exit the market at the same time, according to a report by JPMorgan Chase & Co.
“We think the increased retail participation adds beta/liquidity risks to the Indian markets,” according to the JPMorgan analysts. “A change in sentiment/decline in the headline index can lead to the quick withdrawal of non-institutional volumes.”
Click here to read the full report.
SBI Profit Beats Estimates As Provisions Ease
State Bank of India’s quarterly net profit rose on higher interest income and lower provisions.
Net profit of India’s largest lender rose 81% year-on-year to Rs 6,451 crore for the three months ended March, according to an exchange filing. That compares with the Rs 6,166-crore consensus estimate of analysts tracked by Bloomberg.
Its net interest income, or core income, increased 19% over the year earlier to Rs 27,067 crore, against a forecast of Rs 28,853 crore. The bank’s other income, too, rose 21.6% to Rs 16,225 crore.
To read the full earnings report, click here
Torrent Power Hits Record After Q4 Beats Estimates
Shares of Torrent Power rose as much as 7.5% to a record high after the Gujarat-based electricity generator and distributor reported quarterly profit ahead of analysts estimates, partly helped by lower interest costs.
On May 20, the company reported net income of Rs 397 crore for the three-months ended March, ahead of the consensus analysts estimate for Rs 351 crore.
- Torrent Power’s Q4 Ebitda of Rs 910 crore was 11% higher on a YoY basis, helped by a 26% decline in interest costs, Motilal Oswal Financial Services Ltd. said in a note
- “While lower interest costs would have contributed to the beat, we await clarity on any one-offs,” the note added
- The brokerage has a buy rating on Torrent Power with a price target of Rs 431