Sensex, Nifty Close Higher After A Volatile Session; Adani Stocks Stage A Comeback
Indian equity benchmarks closed higher after a volatile day of trading.
The S&P BSE Sensex gained 0.4% at 52,574.46, while the NSE Nifty 50 Index also gained by a similar magnitude. This after both the indices fell as much as 1.1% during the session. Maruti Suzuki India Ltd. was the biggest drag on both indices, while State Bank of India Ltd. gave the biggest boost.
Nifty member Adani Ports & Special Economic Zone Ltd. had the largest increase, rising 5.3%.
Of 30 shares in the Sensex index, 21 rose and 9 fell. Sixteen of 19 sector indices compiled by BSE Ltd. gained, led by a gauge of power stocks.
Credit Suisse View
The record rally in Indian equities is susceptible to some booking of profits over the next few weeks, but foreign investors’ likely outflows from the market will be limited by the country’s strengthening underlying fundamentals, Credit Suisse analysts Jitendra Gohil and Premal Kamdar write in a note.
The analysts wrote that they expect the valuation premium to remain at elevated levels as India offers one of the fastest growth in the region.
Credit Suisse continues to remain positive on Indian equities and suggests buying economy-facing stocks in this dip; it also sees some rotation toward defensives like FMCG and IT in the near term.
Valuation premium of midcap stocks still remains below the historical average these stocks have traded against the large-caps, the analysts write; they however see “valuation froth” emerging in smallcap stocks.
Oil India Q4 Net Income Beats Estimates
Oil India reported net income for the fourth quarter that beat the average analyst estimate.
Net income Rs 848 crore, -8.4% YoY, estimate Rs 632 crore (Bloomberg Consensus)
Revenue Rs 2,580 crore, estimate Rs 2,740 crore
Total costs Rs 2,700 crore, -34% YoY
Other income Rs 1,330 crore, +34% YoY
Dividend per share Rs 1.50
Q4 exceptional loss of Rs 70.10 crore
PSU Bank Stocks Star In Trade
Central Bank of India and Indian Overseas Bank climbed as much as 20%, leading gains for state-run lenders, after television channel CNBC Awaaz reported that government has shortlisted the two for divestment.
The two banks may see 51% sale in first phase, the report said
NSE Nifty PSU Bank Index +4.2% with all 13 members trading in green
Adani Stocks Gain As Ports Unit Leads Recovery After Slump
Adani Ports is top gainer among the six Adani Group listed companies as they recover from last week’s plunge that started after a media report raised questions about some offshore investors’ holdings in the conglomerate’s stocks.
Adani Ports climbs as much as 7.3%, extending gains for a second day, top performer on NSE Nifty 50 Index; plunged ~17% last week
Adani Total Gas, Adani Power, Adani Transmission and renewable energy producer Adani Green Energy rise by their daily 5% limit
Adani Enterprises, the group’s flagship company, adds as much as 6.4%
GMR Infra Jumps 9.4% to Highest In About 7 Years
GMR Infrastructure Ltd. surges to a nearly seven-year high after lower interest costs helped its quarterly loss narrow by more than a third, while the company remains on track to spin off its non-airport business this fiscal year.
The stock was the best performer among its peers.
Trading volume was 61.6 million shares, five times the 20-day average of 12.3 million shares for this time of day.
Trading in the company's put options totalled 1,903 contracts, compared with the average of 655 over the past 20 days. Trading in the company's call options totalled 9,566 contracts, compared with the average of 3,697 over the same period.
Analysts have two buy, two hold, and no sell recommendations on the stock.
GMR said India's markets regulator and stock exchanges approved its proposal to spin off its non-airport business into a listed unit; a company law court is expected to meet soon to decide on the matter, according to GMR’s earnings presentation for quarter ended March
The process is at an “advanced stage of completion,” the company said.
On Friday, GMR reported a 36% YoY decline in its Q4 loss to Rs 720 crore as finance costs dropped to Rs 760 crore from Rs 1,050 crore a year earlier.
GMR said its net debt, excluding dollar denominated convertible bonds, fell by Rs 870 crore QoQ to Rs 25,300 crore
GMR also said it plans to continue reducing debt by monetising assets and the remaining debt will be refinanced via new dollar bond issuances.