Benchmark indices ended strong on Monday amid steady fall in covid-19 cases in India. Sensex gained over 850 points and Nifty crossed 14,900. While banks were the best gainers among sectors, Cipla, Bharti Airtel and L&T were the biggest laggards among stocks.
Sensex ends around 850 points higher; Nifty above 14,900
Benchmark indices ended 1.7% higher on Monday amid steady fall in covid-19 cases in India. Sensex gained over 850 points to 49,580and Nifty crossed 14,900. While banks were the best gainers among sectors, Cipla, Bharti Airtel and L&T were the biggest laggards among stocks
Dr Reddy’s to supply Sputnik V to Centre only after domestic production starts in July
The wait for India’s third covid-19 vaccine may get longer as Dr Reddy’s Laboratories plans to supply Sputnik V only when the domestic production begins around July, an official from the Hyderabad-based drugmaker said on Monday.
Meanwhile, Apollo Hospitals and Dr Reddy’s said they are collaborating to initiate a COVID-19 vaccination programme with Sputnik V.
Global stocks steady
Stocks fluctuated and US equity futures slipped on Monday as investors weighed risks to the outlook including inflation and a spike in covid-19 cases in some parts of the world.
The Stoxx Europe 600 Index was little changed.
The MSCI Asia Pacific Index was little changed.
The MSCI Emerging Market Index gained 0.1%.
Oil steady near $65
Oil was steady as a demand recovery in key regions raised optimism about rising fuel consumption, despite a Covid-19 flare-up in parts of Asia.
Futures in New York traded near $65 a barrel while Brent was just under $69 in London.
Sensex zooms 850 points
India’s electricity use falls in May due to COVID-19 lockdowns
India’s electricity use fell 6.2% during the first half of May compared with the second half of April, government data showed, as coronavirus lockdowns imposed by states across the country stifled power demand.
Total daily average electricity supply to states fell to 3,666 billion units during the first sixteen days of May, compared with 3,910 billion units during the second half of April, data from federal grid regulator POSOCO showed.
Industries and offices account for half the country’s annual electricity consumption. Power generation in India generally starts rising from April and peaks in May due to a higher air-conditioning load. (Reuters)
Ten states account for over 75% of India’s total active cases
India’s total COVID-19 active cases have decreased to 35,16,997 with a net decline of 1,01,461 cases in the active caseload in a span of 24 hours, the Union Health Ministry said on Monday.
It said Karnataka, Maharashtra, Kerala, Tamil Nadu, Andhra Pradesh, Rajasthan, Uttar Pradesh, West Bengal, Gujarat and Chhattisgarh cumulatively account for 75.04 per cent of India’s total active cases.
The daily new COVID cases being registered in India was less than 3 lakh after 26 days, the ministry said. (PTI)
Federal Bank Q4 net profit rises 58.6% to ₹478 crore; NII up 17% YoY
Federal Bank on Monday reported a 58.6% rise in net profit at ₹477.8 crore for the quarter ended March as compared to ₹301.2 crore in the same quarter last year. The bank’s net interest income (NII) stood at ₹1,420.4 crore, up 16.8% from ₹1,216 crore on a yearly basis. The bank’s asset quality deteriorated as gross non-performing assets (NPA) came at 3.41% versus 2.71% on a quarterly basis while net NPAs stood at 1.19% against 0.90% quarter-on-quarter (QoQ). Provisions & contingencies stood at ₹242.3 crore, down 42.3% QoQ and 57.3% YoY. (Read here)
AirAsia announces free cancellation, rescheduling for flights to and from West Bengal amid lockdown
Budget carrier AirAsia India on Monday announced free cancellation and rescheduling for flights to and from West Bengal in the wake of a 15-day lockdown in the state.
A 15-day lockdown came into force in Bengal on Sunday, with the government putting in place a host of stringent measures to curb the spread of COVID-19.
Further, the Bangalore-based private carrier said it was extending the similar facility, announced earlier for flights to and from Karnataka, Delhi, Maharashtra and Tamil Nadu as well for the current duration of the respective state lockdowns. (PTI)
SBI top gainer, Cipla down nearly 3%
NEFT to remain unavailable for 14 hrs on Sunday due to technical upgrade
The popular National Electronic Funds Transfer (NEFT) system for online transfer of funds will remain unavailable for 14 hours from Saturday mid-night till Sunday afternoon due technical upgrade, the Reserve Bank of India said on Monday. A technical upgrade of NEFT, targeted to enhance the performance and resilience, is scheduled after the close of business of 22 May 2021, RBI said in a statement. “Accordingly, NEFT service will not be available from 00:01 hrs to 14:00 hrs on Sunday, 23 May 2021. The RTGS system will continue to be operational as usual during this period,” the RBI said. (PTI)
Ryanair posts $1 bn loss, says profits are distant prospect
Ryanair Holdings Plc posted a record annual loss and said it’s unlikely to do much better than break even this year, even if vaccination programs allow a widespread easing of travel curbs.
While bookings have increased significantly since April 1, pointing to a strong recovery in the second half, forward visibility remains “close to zero,” making it impossible to provide more meaningful financial guidance, the Irish company said in a statement Monday. (Bloomberg)
Balkrishna industries gains nearly 10%
Shares of Balkrishna Industries Ltd increased by nearly 10% on Monday on the National Stock Exchange, touching a new 52-week high. Balkrishna Industries’ March quarter earnings are higher than expectations and that has cheered investors. Earnings before interest, tax, depreciation and amortization (Ebitda) increased by a robust 37% year-on-year to ₹558 crore.
Bitcoin hits 3-month low, then rallies, on Musk tweets
Bitcoin rallied from three-month low on Monday in a volatile session that saw investors initially selling and then buying cryptocurrencies in the wake of Tesla boss Elon Musk’s tweets about the carmaker’s bitcoin holdings.
In his latest tweet, Musk said “Tesla has not sold any bitcoin”. That seeming clarification came after his weekend tweets that hinted Tesla is considering or may have already sold some of its massive holdings. (Reuters)
Sensex rallies 600 points led by HDFC Bank, ICICI Bank, SBI
Kolte-Patil up 2%; signs two new realty projects in Pune
Real estate major Kolte-Patil Developers said on Monday it has signed two new projects with a combined saleable area of 13 lakh square feet under the development management model.
The company will lend its brand and jointly collaborate with land owners to oversee product design, sales and marketing, project quality and cash flow management, leading to time-bound handover to buyers.
Dr Reddy’s Q4 a mixed bag: Covid portfolio and Sputnik to drive forward prospects
Dr Reddy’s Laboratories Ltd’s Q4 revenue growth remained soft with growth in various geographies being a mixed bag. The North American sales contributing 37% to overall earnings fell 3%. This nevertheless was on a large base of last year. Q4 FY20 had seen much higher volumes due to covid-19 related stocking.
The sequential growth of 1% despite new product launches, however, also failed to impress. The company attributed the same to price erosion. And, hence, the street will be watchful on the impact of price erosion moving forward too. (Full report)
Sensex at day’s high, up 550 points
WPI Inflation at 10.49% in April against 7.39% in March
Sanofi, GSK report positive interim results for their covid-19 shot
An experimental covid-19 vaccine developed by Sanofi and GlaxoSmithKline showed a robust immune response in early-stage clinical trial results, enabling them to move to a late-stage study, the French drugmaker said on Monday.
Sanofi and Britain’s GSK said a global phase III trial would start in the coming weeks and involve more than 35,000 adults, with the hope of seeing the vaccine approved by the fourth quarter after having initially targeted the first half of this year before a setback.
Indigo Paints stock down on lackluster Q4 operating performance
Shares of Indigo Paints Ltd, which listed in February, slipped nearly 6% on the NSE in Monday’s opening trade reacting to the company’s March quarter earnings. While it’s volumes growth at 41% year-on-year, was in-line with analysts’ estimates, net profit and Ebitda declined by around 9% and 8% y-o-y, respectively.
Akin to peers, elevated raw material prices are seen as threat to the company’s margins. But the hit on margins for Indigo Paints has been higher than peers. The company’s gross and Ebitda margins declined by 570 basis points (bps) and 890bps, compared to the year ago period, respectively. One basis point is one hundredeth of a percentage point. The consolidated gross margin of Asian Paints declined by 270bps y-o-y in the March quarter, however its Ebitda margin expanded in Q4FY21.
BSE SmallCap up 1%
Cyclone Tauktae : Mumbai airport to shut operations between 11 am and 2 pm
The country’s second busiest airport at Mumbai will close down all flight operations between 11 am and 2 pm on Monday as a precautionary measure due to the approaching cyclone Tauktae.
“With the approach of the impending Cyclone Tauktae, Chhatrapati Shivaji Maharaj International Airport (CSMIA) is closing down all flight operations from 1100-1400 hrs of 17th May 2021 as a precaution. The airport has so far witnessed 1 diversion,” Mumbai International Airport Limited (MIAL), which operates the airport said in a statement.
Cipla down as March quarter earnings disappointment
Drug manufacturer Cipla Ltd disappointed with its weaker-than-expected March quarter performance. The biggest dampener was the tepid 4% year-on-year growth in domestic business. The domestic market contributes 40% to the overall earnings and is a key driver for Cipla’s growth. Analysts at ICICI Securities Ltd said that Cipla’s “Q4 results were below I-direct estimates on all fronts amid lower-than-expected formulations sales across geographies (ex-South Africa) and operational performance.”
Larsen & Toubro down 1.3%
Engineering and construction giant Larsen & Toubro reported 11.3 % rise in consolidated net profit at ₹3,820.16 crore for March quarter 2020-21. Income during the quarter under review increased to ₹49,116.16 crore, over ₹44,905.76 crore in the year-ago period.
Gold bond opens for subscription, issue price at discount to market rates
The Sovereign Gold Bond Scheme 2021-22 Series-I or first tranche of gold bonds of this fiscal opened for subscription today. The issue will close on May 21. The government has fixed the issue price at ₹4,777 per gram of gold while investors who apply online and make the payment online will get a discount of ₹50 per gram
Bharti Airtel down 1%
The telecom company will report its March quarter earnings on Monday. Meanwhile, Airtel has announced to offer a recharge pack of ₹49 for free to as many as 5.5 crore low-income customers to help them stay connected during the pandemic.
Indian rupee rises 5 paise to 73.24 against US dollar in early trade
Shilpa Medicare jumps 10%; ties up with Dr Reddy’s for production of Sputnik V vaccine
Covid update: India reports daily cases below 3 lakh for first time in weeks
India reported 2,81,386 new covid-19 cases and 3,78,741 recoveries in the last 24 hours, the Union Health Ministry informed on Monday.
While new cases continued to decrease, 4,106 covid-related deaths were reported across the country. The death toll stands at 2,74,390.
The total positive cases in the country stands at 2,49,65,463, including 2,11,74,076 recoveries and 35,16,997 active cases.
Nifty Financial Services up 1.5%
Among sectors, banks & financials shine; IT in red
Nifty above 14,750 at open; UPL top gainer, while Cipla, L&T, Airtel lag
Sensex at open: Up 250 points at around 49,000
Sensex, Nifty open higher
Sensex nearly 250 points higher at pre-open
Markets in the green at pre-open
Govt issues guidelines to set up health infra in rural areas
The Union health ministry on Sunday recommended building health infrastructure in peri-urban and rural areas to tackle rising cases of coronavirus infections in villages.
The health infrastructure planned for peri-urban, rural and tribal areas shall be aligned to the already mentioned 3-tier structure—Covid Care Centre to manage mild or asymptomatic cases, Dedicated Covid Health Centre to manage moderate cases and Dedicated Covid Hospital to manage severe cases.
Why CEO changes are such a big deal in the FMCG sector
Shares of Godrej Consumer Products Ltd rose 21% in a single trading session last week. The company’s market capitalization increased by more than ₹15,000 crore. The reason for the steep rise in the stock was an announcement of a change in leadership.
But should a mere announcement of leadership change usher in so much euphoria? Is it another case of investors putting the cart before the horse? (Read here)
Stocks to Watch: Adani Green, Bharti Airtel, Cipla, Hero Moto
Besides, Adani Green, Bharti Airtel, Cipla, and Hero Moto, stocks that will be in focus today are L&T, Wipro, PNB. Besides, Bharti Airtel, companies like Federal Bank, Gland Pharma, Mangalore Refinery and Sun Pharma Advanced will announced their March quarter earnings today.
Indian shares may consolidate on Monday
Markets are likely to be consolidate on Monday while trends in SGX Nifty suggest a flat-to-green opening for Indian benchmark indices. On Friday, the BSE Sensex closed at 48,732.55, up 41.75 points and the Nifty settled at 14,677.80, down 18.70 points.
Asian equities mixed
Asian share markets turned mixed on Monday as data on Chinese retail sales missed expectations though industrial output stayed solid, while more evidence of global inflation pressures helped gold to a three-month peak.
MSCI’s broadest index of Asia-Pacific shares outside Japan eked out a rise of 0.2%. Japan’s Nikkei lost 0.7%.
Wall Street ends higher on Friday
US stocks rallied in a sharp rebound on Friday as investors set aside inflation worries and bought shares hammered by the week’s volatility.
The Dow Jones Industrial Average climbed 1%, the S&P 500 jumped 1.5%, the most on any day since March 26, and the Nasdaq Composite leaped 2.3%, its biggest one-day rise in about two months.
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