Foreign investors have recently turned net sellers of domestic securities as India battles a severe second wave of coronavirus. As developed markets inch closer to normalcy and India faces fresh lockdowns, global investors may look towards other markets instead of India for a few quarters, said Sumit Jalan, Co-head of India Investment Banking & Capital Markets, Credit Suisse in an interview with Kshitij Bhargava of Financial Express Online. Sumit Jalan also sheds light on how well India Inc is prepared to face the challenges emerging from the second wave and more. Here are the edited excerpts.
BSE Sensex fell 340 points or 0.69 per cent to end at 49,161, while the broader Nifty 50 index settled at 14,850, down 92 points or 0.61 per cent
The market failed to show resilience to stay above the Nifty 50 Index level of 15000. While it is subject to further price action evolution, the technical factors are aligned to support a positive market movement outlook. Any corrective wave down should find support around 14700-14800. The traders to use any rally to book profit while buying on the correction. Volatility to expand in today’s trading session indicating profit booking and distribution of stocks at a higher market level. Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The net inflows into equity funds have continued in April which is very encouraging. Flows slowed down a bit compared to March largely because of the disruption caused by the second wave of the pandemic. However, the SIP numbers have remained robust and the addition of SIP folios also have been very healthy. Given the expensive valuations, we have been recommending asset allocation funds such as Balanced Advantage Funds (BAF) for investors. This category has also seen meaningful inflows. We expect the flows to pick up pace once the pandemic is brought under control through increased levels of vaccination and other measures. G Pradeepkumar CEO Union AMC
Domestic benchmark indices have remained range-bound for the last few months now. Amid such market movement, analysts have been advising investors to go for stock-specific trades. Using their three-factor stock filtration model, domestic brokerage firm ICICI Direct has arrived at two stocks that it believes have the potential to hand investors significant returns in the near term. ICICI Direct has filtered stocks based on a pickup in delivery, historic volatility and historic stock buying patterns.
Triggered by the highest number of private equity (PE) deals in any month, deal statistics set new records in April 2021 by reporting the highest deal volumes in any month since 2011, revealed Grant Thornton Dealtracker. April 2021 reported over 160 transactions, aggregating to deal value of USD 13 billion. Domestic mergers and acquisitions (M&A) transactions led the pack by reporting over 30 transactions aggregating to USD 5 billion, including a couple of transactions in the billion-dollar category. With around 120 transactions for the month aggregating to USD 7.6 billion, PE transactions set the record for highest number and value of transactions since 2011. Consortium funding being the modus operandi of PEs, several investors participated in more than one transaction
We continue to maintain our bullish stance on Gold. Prices have consolidated over the last few months and recently caught up some momentum and back to around $1800 on the COMEX where we are comfortable suggesting buying for a short to medium perspective targeting new lifetime highs towards $2050 followed by $2200. On the domestic front, the post-budget prices correction is a good level to enter once again for and immediate targets towards Rs.50,000 and eventually hitting new highs of Rs.56,500 and above over the next 12-15 months. Motilal Oswal Financial Services
There are factors that the market participants are watching cautiously like falling Dollar, higher US treasury Yields, ETF demand picking up and falling global interest rates. Although Central Banks have continued to maintain a dovish stance, interest rates are near the lows. Now that Central Banks have started to buy again we expect that higher numbers in the future are likely to keep prices elevated. Rising Coronavirus cases, continuous liquidity injections, rising inflationary expectations, economies growing on the back of debt, Middle east tensions, trade war between US and China and few other factors continue to boost the sentiment and build a strong case for higher gold prices. Motilal Oswal Financial Services
Rising inflationary trends should be conducive for gold, implying investment demand for the yellow metal will likely increase in the coming months. Despite the rising inflationary trend, Fed is not keen on normalizing monetary policy for quite some time, citing inflation as a transient phenomenon. As a result, we will likely live with a weak dollar and ringfenced US 10 yr yields, yet another narrative of negative real yields that will work for gold. Moreover, speculative flows on the CME shows money managers raised their net long exposure in April. On physical consumption, Chinese demand has been strong this year, though Indian offtake will take a hit given the pandemic situation. We see a chance of Gold prices getting proximal to US$1,900/oz mark in the next 2-3 months. Hitesh Jain, Lead Analyst – Institutional Equities, YES SECURITIES
“The net inflows into equity funds have continued in April which is very encouraging. Flows slowed down a bit compared to March largely because of the disruption caused by the second wave of the pandemic. However, the SIP numbers have remained robust and the addition of SIP folios also have been very healthy. Given the expensive valuations, we have been recommending asset allocation funds such as Balanced Advantage Funds (BAF) for investors. This category has also seen meaningful inflows. We expect the flows to pick up pace once the pandemic is brought under control through increased levels of vaccination and other measures,” said G Pradeepkumar CEO Union AMC.
Medi Assist Healthcare Services has filed Draft Red Herring Prospectus with capital markets regulator Securities and Exchange Board of India (Sebi) to launch an IPO (initial public offer. The public issue will be entirely an offer of sale of up to 2.8 crore equity shares of Medi Assist by promoters and existing shareholders. Those selling shares in the offer for sale include Dr Vikram Jit Singh Chhatwal, Medimatter Health Management, Bessemer India Capital Holdings II Ltd, Bessemer Health Capital LLC and Investcorp Private Equity Fund I.
JSW Steel on Tuesday said its crude steel output jumped over two-fold to 13.71 lakh tonne (LT) during April 2021. The company had produced 5.63 LT in April 2020, JSW Steel said in a statement. On a month-on-month (m-o-m) basis, the crude steel output fell 5 per cent. The company had produced 14.46 LT crude steel in March 2021.
Biocon Executive Chairman Kiran Mazumdar-Shaw has expressed concern over shortage of COVID-19 vaccines and sought better transparency from the government regarding their availability so that citizens could patiently wait for their turn. India has announced expansion of its COVID-19 vaccination drive by allowing its large population aged over 18 to get inoculated from May 1.
Moody’s Investors Service has revised its outlook for the global airlines industry to positive from negative. The positive outlook reflects the rating agency’s view that industry fundamentals will materially improve over the next 12-18 months, notwithstanding the current record high daily infection rate in India; travel restrictions in countries with large amounts of traffic to and from India; and ongoing lockdowns in other countries.
The share price of HFCL surged more than 10% on Tuesday as investors reacted to the company’s quarterly results. Consolidated Net Profti grew 893% on-year to Rs 86.47 crore, PAT margin improved from 1.31% to 6.21% from the previous year. The Board of Directors has also recommended a Dividend of Re.0.15/ per share for the financial year 2020-21.
Auto component maker Sona BLW Precision Forgings (Sona Comstar) has received capital market regulator SEBI’s (Securities and Exchange Board of India ) nod for its initial public offering (IPO). The company plans to raise Rs 6,000 crore through the initial share sale which will consist of a fresh issue of equity shares worth Rs 300 crore and an offer for sale (OFS) by existing shareholders. Singapore VII TOPCO III PTE — an affiliate of The Blackstone Group — is one of the promoters of the company. Sona Comstar had filed draft papers for its initial share sale with SEBI in February this year.
HDFC and Kotak Mahindra Bank are the worst-performing Sensex constituents at this hour, both falling 2% each. These are followed by Tech Mahindra, Bajaj Finance, and Hindustan Unilever.
The markets have opened with a gap down but is still maintaining the 14700 support level. We could work our way through this fall by strategically buying into the index. The risk reward is favorable – if we move up from here, the target should be 15200 and a close below 14700 is the stop loss. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Rakesh Jhunjhunwala has moved 25 lakh shares of Tata Steel from Rare Enterprises to his own personal holdings at Rs 1,181 per share through a block deal on NSE.
Barring Nifty Pharma index, all the sectoral indices were trading in the red. Nifty Metal index fell the most, down over 2 per cent, followed by Nifty PSU Bank index.
Sun Pharma, Nestle India, Dr. Reddy’s Laboratories were trading up to 1.15 per cent higher
IndusInd Bank, ONGC, Housing Development Finance Corporation (HDFC), Kotak Mahindra Bank, M&M, ICICI Bank, Maruti Suzuki were among top Sensex losers
BSE Sensex tanked 464 points or 0.94 per cent to 49,060, while Nifty 50 index gave up 14,800 on Tuesday, following negative global cues.
BSE Sensex fell over 200 points while the Nifty 50 index was seen trading around 14,850 in the pre-opening session on Tuesday.
Benchmark Indices are expected to open on a negative note as trends on SGX Nifty indicate a gap down opening. Asian markets are trading lower following a sell-off in tech stocks that weighted down major US Indexes overnight. CRISIL said that 2nd wave of covid could bring down India GDP growth to 8.2% if cases peak by June end. Key companies announcing their quarterly results today include Granules India Ltd, Godrej Consumer Products, Siemens Ltd, Linde India Ltd, Aarti Industries Ltd, etc. 14500 acts as important support. We suggest buy on dips. Mohit Nigam, President, PMS, Hem Securities
Nifty futures were trading 210 points or 1.40 per cent down at 14,782.20 on Singaporean Exchange, indicating a heavy sell-off in BSE Sensex and Nifty 50 on Tuesday. World Health Organisation on Monday has classified COVID-19 variant from India as a global concern. according to the health ministry, India reported 3.66 lakh new infections and 3,754 deaths in last 24 hours. Analysts said that domestic equities do not look to be good as of now on weak global cues.
Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: Prices of Petrol and Diesel was hiked for the second consecutive day today. Petrol in Delhi today costs Rs 91.80 per litre, up 27 paise since yesterday. Diesel in Delhi costs Rs 82.36 litre, an increase of 30 paise. Prices were hiked for four consecutive days last week. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices on a daily basis in line with benchmark international price and foreign exchange rates.
US indices especially S&P 500 and Nasdaq fell sharply mainly led by heavy selling pressure in high profile technology and growth stocks. While US equities have been gaining momentum consistently well supported by robust March quarter corporate earnings and loose monetary policy stance of Federal Reserve, bond market has been broadly muted in last one month. This started weighing on investors sentiments as any surge in bond yield hereon will make valuations of technology or growth stocks quite expensive. In our view, inflation data for March, to be published tomorrow, will be crucial for market. Binod Modi, Head Strategy at Reliance Securities
Godrej Consumer Products, Siemens, Aarti Industries, Linde India, BASF India, KEC Internation, Firstsource Solutions, Granules India, Neuland Labs, Alembic, Dishman Carbogen, and Matrimony.com are some of the companies that will report their quarterly results today.
Domestic markets continued gaining on Monday, extending the rally to four days now. S&P BSE Sensex now sits at 49,502 while Nifty 50 is at 14,942. Indices have continued to move in a broad range for weeks now. Technical analysts believe that only a move above 15,000 – 15,100 would force Dalal Street to claim fresh highs.