Key equity indices closed over 1% higher on Tuesday led by gains in RIL, L&T and HDFC Bank. Sensex hit a high of 49,009.26 and a low of 48,399.53 intraday. Global markets were mixed as investors eyed the US Fed’s meeting ending Wednesday.
Sensex, Nifty ends higher for the second day in a row
Benchmark indices closed higher for the second consecutive day on Tuesday led by heavyweights Reliance, HDFC Bank and ICICI Bank. The Sensex rose 557 points to end at 48,944. The Nifty gained 1.2% to settle at 14,653. Banks and metal stocks were the best gainers among sectors today. “The Nifty has closed within its resistance zone of 14500-14700. We are at a crucial juncture because if we keep above that patch, we will swiftly move towards 15000-15100. If the market decides to turn at this juncture, we will go down to test the previous lows again,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
Bankex gains 5% in past one week
Since 20 April, the BSE Bankex has climbed nearly 5%, while the Nifty Bank index advanced 4.8%. Benchmark Sensex index gained over 2.3% while Nifty rose 2.2% during this period. On Tuesday, BSE Bankex Index gained 1.3% on Tuesday.
NBFCs seek debt recast for smaller peers, borrowers as infections rise
Non-bank financiers have urged the Reserve Bank of India to allow smaller lenders, with assets less than ₹500 crore to restructure their loans, helping them overcome possible asset-liability mismatch. (Full report)
SC asks Centre to explain rationale behind different pricing of Covid vaccines
The Supreme Court on Tuesday asked the Centre to explain the basis and rationale adopted with respect to the pricing of covid vaccines and other necessary items.
The apex court also said, “The High Courts shall not be restrained in passing any directions,” as they are hearing the cases in their respective states and they know the ground situation better. SC will next hear the matter on Friday.
Hindustan Zinc March quarter profit rises to ₹24.8 billion
Hindustan Zinc March quarter profit rises to ₹24.8 billion vs ₹13.39 billion a year ago. Revenue from operations rose to ₹67.25 billion from ₹43.21 billion a year ago. Mined metal production for the quarter was up 15%.
Gilead to donate at least 450,000 doses of remdesivir to India
US-based Gilead Sciences Inc. will donate at least 450,000 vials of Veklury, the company’s brand of remdesivir, to the Indian government to help address the immediate needs in the country, which is currently struggling with the second wave of the covid-19 pandemic.
“The recent surge of covid-19 cases in India is having a devastating impact on communities and has put unprecedented pressure on health systems. We are committed to doing our part to help tackle this crisis,” said Gilead’s chief commercial officer Johanna Mercier. (Full report)
State Bank of India to consider long term fund raising in single or multiple tranches up to $2 billion
Sensex at day’s high, up 550 points
Maruti Suzuki posts 9.7% drop in Jan-March profit
Maruti Suzuki India Ltd reported a 9.7% drop in fourth-quarter profit to ₹11.66 billion on Tuesday, as weak demand for vehicles during the Covid-19 pandemic and higher commodity costs hurt India’s largest carmaker.
Revenue rose 32% to 240.24 billion rupees and the carmaker recommended a dividend of 45 rupees per shar
Yash Gupta Equity Research Associate, Angel Broking on JSPL disinvestment in Jindal Power
Jindal Steel & Power up by 1.5% on positive development of board approval for disinvestment in Jindal power of ₹3015 crore.
Today board of the company has approved the divestment of its entire equity interest representing 96.42% of the issued and paid up capital in Jindal Power Limited a material subsidiary of the Company, by way of sale of shares, to Worldone Private Limited a Promoter Group Company and a related party to the Company. The equity value is an all-cash offer of ₹3015 crore for 96.42% valuing the company at ₹3127 crore. The Proposed Sale is subject to necessary approvals of shareholders of the Company, regulatory approvals, approvals from lenders of the Companies.
The Board approved the convening of an Extraordinary General Meeting of the shareholders of the Company for seeking their approval for the Proposed Sale, Loan Agreement and other ancillary agreements.
Global markets mixed
European and Asian markets were mixed on Tuesday ahead of a big week of key events including the Federal Reserve’s latest policy meeting, Joe Biden’s State of the Union address and earnings from tech giants.
Tokyo’s Nikkei closed at 0.5% lower at 28,991.89
Hong Kong’s Hang Seng Index ended flat at 28,941.54
Shanghai Composite settled flat at 3,442.61
London’s FTSE 100 was little changed at 6,963.94
NFL to set up 4 oxygen plants at govt hospitals in UP, MP
Fertiliser Minister D V Sadananda Gowda on Tuesday said state-run National Fertilizers Ltd (NFL) will set up four oxygen plants at government hospitals in Uttar Pradesh and Madhya Pradesh.
Each plant will generate oxygen equivalent to 70 cylinders per day at government hospitals in Noida, Lucknow and Gorakhpur in Uttar Pradesh, and at Bhopal, in Madhya Pradesh, he tweeted.
Kotak Mahindra falls as RBI caps CEOs’ term in private banks
Shares of Kotak Mahindra Bank were the most hit among peers after the RBI capped founder’s tenure as chief executive officer of a bank to 15 years.
That gives the world’s wealthiest banker Uday Kotak less than three years to find a successor, according to a note by Suresh Ganapathy, an analyst at Macquarie Capital Securities Ltd. Kotak’s current tenure as CEO of India’s fourth-largest private lender ends on 1 January, 2024.
Ambuja Cement introduces green fuel on captive ships
Ambuja Cement said on Tuesday it has successfully completed sea trials of using soya extract-based biofuel in two of its cement carriers — Ambuja Mukund and Ambuja Vaibhav.
This makes Ambuja Cement not just the first Indian company to move towards decarbonisation of the country’s coastal shipping lines but also advancing its focus on two of its strategic priorities — innovation and sustainability.
Gateway Distriparks’ profit jumps to ₹46 crore in March quarter vs vs ₹11 crore
Revenue rises 17% to ₹350 crore. Ebitda rose 48% to ₹95 crore.
All sectoral indices, barring pharma, in the green
RBI issues guidelines for appointment of statutory auditors of banks, NBFCs
The Reserve Bank of India on Tuesday issued guidelines for appointment of statutory auditors of banks and non-banking finance companies (NBFCs), including housing finance companies.
‘Guidelines for Appointment of Statutory Central Auditors (SCAs)/ Statutory Auditors (SAs) of Commercial Banks (excluding RRBs), UCBs and NBFCs (including HFCs)’ will be applicable for financial year 2021-22 and onwards.
HDFC Life posts 17% individual weighted received premium growth for FY21
HDFC Life Insurance has recorded 17% growth in terms of individual weighted received premium during FY21 on a base of 19% growth in FY20.
Nifty Metal up 2%; Nalco, Hindalco lead pack
1 in 5 workers consider themselves digital tech experts post covid-19: Gartner
About one in five workers consider themselves to be digital technology experts since the covid-19 outbreak, while over a half consider themselves proficient, according to a new survey by research firm Gartner, Inc.
SC allows Vedanta to operate its plant at Tuticorin in Tamil Nadu for producing oxygen
Oil rebounds, but gains limited amid demand concerns as India reels from covid-19
Oil prices rebounded on Tuesday after falling in the previous session, but gains are likely to be capped amid growing concern about fuel demand in India, the world’s third-biggest crude importer now slammed by spiralling new coronavirus cases.
Brent crude was up 40 cents, or 0.6%, at $66.05 a barrel by 0658 GMT, after dropping 0.7% on Monday. U.S. oil gained 40 cents, or 0.7%, to $62.31, having declined by 0.4% in the previous session.
Broad market indices positive, fear index down
Bengaluru saw highest home sales growth in March quarter
The top eight property markets saw a 32% growth in home sales, with 69,697 units sold in the January-March period, compared to the preceding quarter, according to a new report by Liases Foras Real Estate Rating & Research.
Sales witnessed maximum recovery in Bengaluru, where 9997 units were sold, a 72% rise from the December quarter. Delhi-National Capital Region (NCR) followed next with 46% growth in sales and 9130 units sold. Home sales grew 20% in Mumbai Metropolitan Region (MMR), though it sold close to 18,012 units, the highest among all regions.
Overall sales across the top cities saw a 9% year-on-year growth in the fourth quarter of 2020-21.
HCL Technologies and IBM collaborate to modernise security operations
IBM Security has collaborated with HCL Technologies Ltd to help unify and streamline threat management for clients via a modernised security operation centre (SOC) platform.
As part of the collaboration, HCL’s Cybersecurity Fusion Centers will be designed to take advantage of IBM’s Cloud Pak for Security, to help create a unified security platform to connect security teams, tools, and processes across the threat lifecycle, IBM said in a statement. This collaboration builds on HCL and IBM’s recent alliance expansion to help organizations with digital transformation.
Sensex at noon: Up more than 450 points at 48,841
BSE SmallCap up 1%
Hindalco Industries top gainer on Nifty
Election Commission bans victory procession after poll results as cases rise
HDFC Life’s Q4 shows robust profitability; outlook foggy amid second wave
HDFC Life Insurance Company Ltd’s March quarter performance gave enough support to its premium valuation. The private sector life insurer reported improvement in profitability metrics but some pockets of its portfolio showed soft growth.
HDFC Life reported a 29% growth in its new business premium for the March quarter. The growth was broad based with both traditional savings and simple protection products doing well. On an annualised premium equivalent (APE) basis, the insurer reported a 14% growth from the year ago period but a sequential growth of 34%. The insurer has been able to take advantage of the strong March month to get market share too as insurance products tend to sell the most given the motivation to save tax for the financial year. Market linked products too did well although the insurer is aiming to keep the share of these products in the overall book around 20%. That said, growth in simpler protection products remained tepid. (Full report)
Jyoti Roy, DVP, Equity Strategist, Angel Broking on Tech Mahindra Q4 results
Tech Mahindra reported relatively muted revenue growth of 1.6% qoq to $1,330 mn. In rupee terms revenue grew by 0.9% qoq to ₹9,729.9 crore. Gross profit for the quarter was up 3.3% qoq to ₹3280.3 crore while gross margins expanded by ~79bps qoq to 33.7%. EBITDA for the quarter registered a growth of 2.8% qoq to ₹1,948 crore while margins expanded by ~37bps qoq to 20.0%. Net profit for the quarter was down by 17.4% qoq to ₹1,081 crore due to a sharp decline in other income for the quarter. Tech Mahindra reported strong deal wins during the quarter with net new deal wins of USD 1.04bn. While the topline growth was lower as compared to other Tire I IT companies, Tech Mahindra has done well in terms of new deal wins during the quarter. However given the company’s over dependence on the Telecom sector we maintain our preference for Infosys and HCL tech in the large cap space.
JSPL to divest stake in Jindal Power to Worldone for Rs3,015 crore
Jindal Power and Steel (JSPL) on Tuesday said its board has approved divesting its entire equity interest in Jindal Power to Worldone, a promoter group company, for Rs3,015 crore.
“The board of directors of JSPL has approved the divestment of its entire equity interest (representing 96.42%of the issued and paid up capital) in Jindal Power by way of sale of shares, to Worldone Pvt Ltd, a promoter group company and a related party to the company,” JSPL said in a regulatory filing.
BSE MidCap up, Future Retail gains 5%
Alok Industries reports Q4 net loss of ₹500.11 cr
Textile firm Alok Industries on Tuesday reported a consolidated net loss of ₹500.11 crore for the quarter ended March 31, 2021.
The company had reported net profit of ₹1,790.87 crore of the corresponding quarter a year ago.
Total income during the quarter under review stood at ₹1,478.63 crore, up 95.04 per cent, as against ₹758.11 crore reported in the same quarter a year ago, Alok Industries said in a regulatory filing.
India to receive first batch of Russia’s Sputnik V covid vaccine on May 1
India will receive a first batch of Russia’s Sputnik V vaccine against COVID-19 on May 1, the head of the Russia’s sovereign wealth fund, told Reuters. However, he did not specify how many vaccines would be in the first batch or where they would be made. “The first doses will be delivered on May 1,” Kirill Dmitriev, said, adding he hoped Russian supplies would help India navigate its way out of the pandemic in time.
Reliance, HDFC Bank, ICICI Bank fuel rally in Sensex
Aditya Kondawar , COO , JST Investments, on PowerGrid Infrastructure Investment Trust
PowerGrid Infrastructure Investment Trust (“PGInvIT”) is an InvIT set-up to own, construct, operate, maintain and invest as an infrastructure investment trust as permissible in terms of the InvIT Regulations, including in power transmission assets in India. The Initial Portfolio Assets comprise five power transmission projects located across five states of India. The projects comprise 11 transmission lines, including six 765 kV transmission lines and five 400 kV transmission lines, with a total circuit length of approximately 3,698.59 ckm, and three substations with 6,630 MVA of an aggregate transformation capacity and 1,955.66 km of optical ground wire. The optionality of acquiring more of Powergrid assets & others remains.
On successful listing, PowerGrid InvIT could become the first state-owned trust, that too sponsored by a maharatna to explore the InvIT route to monetize its assets. Although this opens up a lot of possibilities for the monetization of lakhs of crores of assets by our PSU companies, given its lack of operating history, we would like to track the deliverables in the years to come before taking a call as even the valuation seems to be punchy.
Indian Oil, BPCL defer maintenance at some plants amid contract worker shortage: Report
Indian oil refiners are being forced to postpone maintenance at some plants as technicians and workers are either fleeing to their hometowns or falling ill amid a rapid resurgence of the Covid-19 pandemic.
Bharat Petroleum Corp. and Indian Oil Corp. have deferred planned shutdowns due a shortage of contract workers, said company officials with knowledge of the matter. The refiners will need to keep operating these units, reassess their feedstock plans and possibly reduce overall run rates, they said.
Rupee opens flat
Indian rupee opened marginally higher on Tuesday at 74.68 per US dollar vs previous close of 74.72.
Axis Bank down 2% ahead of Q4 earnings
The private sector bank will declare its Q4 results on Tuesday. In Q3, the lender had reported a 36% drop in quarterly profit from a year ago to ₹1,117 crore due to higher provisions for bad loans. Provisions in the quarter-ended 31 March rose 33% to ₹4,604 crore from a year earlier.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments on markets
Nifty is within the resistance patch of 14500-14700. If we are successful in crossing this on a closing basis, we should be headed to 15000. If we are unable to, we will be sideways and then head back to the previous lows of 14200.
Covid update: New cases dip in India but still more than 3 lakh, 2771 deaths in 24 hours
India reported 3.23 lakh fresh coronavirus cases in the last 24 hours.
A total of 3,23,144 new covid-19 cases, 2,771 related deaths, and 2,51,827 recoveries were reported in the last 24 hours, taking the total active cases to 28,82,204, as per the health ministry update on Tuesday morning.
The total count of positive cases now stands at 1,76,36,307, including 1,97,894 deaths and 1,45,56,209 recoveries.
Bank Nifty flat
Maruti may see robust growth in profit, revenue on low base, volume recovery
Maruti Suzuki India Ltd, the country’s largest car maker, is expected to post double-digit growth in net profit and revenue for the quarter ended March, aided by the low base in the year-ago period and a gradual recovery in vehicle sales on the back of increasing preference for personal mobility amid the coronavirus pandemic.
Tech Mahindra slips in red after opening 2% higher
Banks under pressure in opening session, metals outperform
Markets open a tad higher
BOJ cuts inflation forecast, warns of soft consumption as pandemic pain lingers
The Bank of Japan on Tuesday cut this fiscal year’s consumer inflation forecast and warned of lingering risks to the economic outlook as the COVID-19 pandemic continues to hurt consumption.
As widely expected, the BOJ maintained its short-term interest rate target at -0.1% and that for 10-year government bond yields around 0%.
Sensex in the green at pre-open
RBI to hold customer satisfaction survey on merger of PSU banks
The Reserve Bank of India (RBI) has decided to conduct a customer satisfaction survey to find out the impact of the recent mergers of state-owned banks on banking services being availed by individuals. Among other things, the respondents will be asked whether the merger was positive from the point of customer services. The choice before the customer will be to tick one of the following options—strongly agree; agree; neutral; disagree; or strongly disagree. The proposed survey will cover a total of 20,000 respondents from 21 states, including Uttar Pradesh, Maharashtra, West Bengal, Tamil Nadu, Bihar, Karnataka, Madhya Pradesh, and Gujarat. In all, there will be 22 questions.
Blinken meets US business leaders to help India in its covid battle
US Secretary of State Antony Blinken met leaders of the US business community, US Chamber of Commerce and the US India Business Council overnight Tuesday to leverage private sector support to help India battle its covid-19 infection surge.
According to State Department spokesman Ned Price, “Secretary Blinken, Coordinator for Global COVID Response and Health Security Gayle Smith, and National Security Council Coordinator for Indo-Pacific Affairs Kurt Campbell provided an update on U.S. assistance and welcomed coordination with U.S. industry.”
Cash in circulation at two-decade high
The total currency in circulation, adjusting for the size of the Indian economy, reached a two-decade high in March 2021.
The total currency in circulation or the cash in the system was at ₹28.6 trillion as of March end, an increase of 16.8% from the year earlier. (Read more)
States wary of vaccine shortage
Shortages of covid-19 jabs may disrupt plans to immunize all adults from 1 May and prolong India’s severe health crisis, states and experts warned on Monday, amid mounting complaints over the vaccination drive.
Punjab, Rajasthan and Chhattisgarh said they may not be able to meet the increased demand for vaccines amid lack of adequate manufacturing capacity at Serum Institute of India and Bharat Biotech International to meet even the current demand from people above 45 years of age and healthcare and frontline workers. (Read more)
Stocks to Watch: Tech Mahindra, Maruti, Tata Motors
Besides Tech Mahindra, Maruti Suzuki, and Tata Motors, shares of banks and financials will be in focus today as RBI has capped the tenure of managing directors and chief executive officers and whole-time directors of private banks at 15 years.
Key companies that will announce March quarter results today are Axis Bank, Maruti Suzuki, Bajaj Finance, Britannia Industries, HDFC Asset Management Company, Nippon Life India Asset Management, PNB Housing Finance, Hindustan Zinc and TVS Motor Company.
Indian markets seen in range
Indian equity markets are likely to trade in a range on Tuesday. On Monday, the BSE Sensex ended at 48,386.51, up 508.06 points or 1.06%. The Nifty closed at 14,485, up 143.65 points or 1%. Globally, investors stuck to the sidelines ahead of a Fed meeting ending Wednesday, where the US central bank is expected to confirm that it will maintain its easy monetary policy to bolster the economy.
Regulator caps terms for MDs, CEOs at private banks
The Reserve Bank of India (RBI) has capped the tenure of managing directors (MDs) and chief executive officers (CEOs) and whole-time directors (WTDs) of private banks at 15 years from the date of appointment. For CEOs who are part of the promoter group or large shareholder, the tenure is capped at 12 years. The age cap for chairman and independent directors has been set at 75 years.
The norms have been made tougher as part of RBI’s attempts to strengthen the governance structure in private sector banks against the backdrop of a series of failures in financial institutions. (Full report)
Crude oil gains
Oil prices bounced back early on Tuesday from drops in the previous session, but gains were seen likely capped by growing concern about fuel demand in India, the world’s third-biggest crude importer now slammed by spiralling new coronavirus cases.
Brent crude was up 26 cents, or 0.4%, at $65.91 a barrel by 0141 GMT, after dropping 0.7% on Monday. U.S. oil gained 23 cents, or 0.4%, to $62.14, having declined by the same amount the previous session.
Asian shares fall
Asian markets wobbled on Tuesday on caution ahead of US Federal Reserve’s meeting and a slew of corporate earnings.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.14%. Australian stocks dropped 0.51%, while shares in China were little changed. Stocks in Tokyo edged 0.11% lower.
Wall Street ends mixed
The Dow Jones Industrial Average fell 61.52 points, or 0.18%, to 33,981.97, the S&P 500 gained 7.52 points, or 0.18%, to 4,187.69 and the Nasdaq Composite added 121.97 points, or 0.87%, to 14,138.78.