Buy on any dip to enter market, says Prabhudas Lilladher; lists its top picks
The market correction, however, is an opportunity, said brokerage house Prabhudas Lilladher in a recent report advising investors to use any dip as an entry point. “We note that markets are driven by hopes of structural economic recovery and high levels of global liquidity and record FII inflows. Any correction due to the second wave of COVID-19 should be used as an entry point,” it said in the report. It also believes that the emerging corona situation can result in incremental EPS cut for FY22 in the coming months, although it seems too difficult to extrapolate the same to FY23. Lowering the Nifty target, it set a 12-month target for the NSE frontline index at 16,020 in the base case scenario vs 16,075 earlier. Meanwhile, in the bull case scenario, Prabhudas Lilladher sees Nifty touching 18,977 in 15 months, which is lower than its previous target of 19,137. Continue reading.
R Venkataraman, MD, IIFL Securities
We would like to buy dips. We expect INR to weaken vs the USD as have other EM currencies, and we expect that for the next six months, the Indian economy may progress in fits and starts, and the relatively slow progress of vaccination in India means that we will be slower to recover compared to the US. We hence would like to emphasize IT, exporters (Chemicals), global cyclicals (strong beneficiaries not only of high commodity prices but also INR depreciation), and insurance (a steady Eddie). We also like private banks as they should see loan growth acceleration, lower NPAs than currently provisioned for and benefits from higher interest rates as high US yields pull up Indian yields. We would be underweight domestic cyclicals like cement and pricey sectors like FMCG/Paints etc.
Q4 Earnings Preview: Strong performance expected by banks; near-term uncertainty from second wave of Covid-19 prevails
The earnings of banks during the fourth quarter of fiscal 2021 are expected to see a sharp spike on yearly basis on account of low base in the previous year. With events like the Supreme Court ruling out moratorium extension, waiver of interest, standstill norms, analysts believe a realistic reflection of lender’s performance shall be seen this quarter. Banks are likely to see low treasury income or even MTM losses in some cases with yields rising around 40 bps during the quarter ended March 2021. Overall credit cost is expected to remain elevated with some QoQ decline. Global brokerage firm CLSA expects large banks’ Q4FY21 performance to continue to surprise positively in terms of asset quality and PPOP, but management discussion is likely to shift to the possible impact of the second wave of Covid-19. Read here.
Combined entity can file 25 new products every year in US: Solara Active
The merger of three entities into the company will be earnings per share (EPS) accretive from year one, said Bharath Sesha, MD & CEO of Solara Active Pharma Sciences, on Monday. Sesha also said that the combined entity can file 25 new products every year in the US. Solara Active Pharma Sciences is in focus on the news that three privately held companies – Aurore Life Sciences, Empyrean Life and Hydra Active Pharma will merge with it creating a pure-play active pharmaceutical ingredients (API) and contract research and manufacturing services (CRAMS) company which will be earnings per share (EPS) accretive. Read more.
Coforge to acquire 80 percent stake in SLK Global Solutions for Rs 918.3 crore
Coforge has signed definitive agreements to acquire a controlling interest in SLK Global Solutions Pvt Ltd. Coforge shall initially acquire 60 percent stake in SLK Global, with SLK Global’s founders completely exiting. Coforge will acquire an additional 20 percent stake from Fifth Third Bank after the completion of 2 years.
India’s March passenger vehicle sales jump, industry body warns of uncertainty
India’s total domestic passenger vehicle sales increased 115.2 percent in March 2021, Society of Indian Automobile Manufacturers (SIAM) data released on Monday showed. The industry body, however, also warned that the COVID-19 pandemic had set back an already damaged sector by several years. Passenger vehicle sales stood at 290,939 units in March as against 135,196 units in the year-ago period. Two-wheeler sales during the month increased 73 percent to 1,496,806 units, while three-wheelers sales rose 15.7 percent to 31,930 units, as per SIAM data. Read more.
Market Watch: Ruchit Jain of Angel Broking
I have couple of recommendations, one from the short side and one on the long side. On the short side I sell call on Tata Consumer Products, we are seeing that the stock is trading is rising channel and at the higher end of the channel the prices have resistant. We are seen some profit booking in the stock, looking at the volumes were also not very high in recent leg of upmove so one can go short on Tata Consumer with a stop loss at Rs 676 expecting target around Rs 632.
A buy call on Britannia Industries, we are witnessing a good outperformance in this stock. As per reciprocal retracement theory the minimum targets are coming around Rs 4,000 which is 127 percent retracement of the previous correction. So keeping a stop below Rs 3,750 one should attempt long, take a contra call over here with a target of Rs 4,000.
FD interest rates: How returns offered by key lenders compare?
Fixed deposit (FD) is a fixed income instrument that provides guaranteed returns over a pre-defined period of lock-in. According to experts, it is one of the best options for people looking for an assured income as they are risk-free. In FDs, a lump sum amount is locked in for a specific period. Investors can choose tenure usually in the range of 7 days to 10 years. FDs are offered by commercial banks, small finance banks as well as non-banking financial companies (NBFCs). Deciding the tenure is very important in the case of FDs because if investors withdraw the amount before maturity, they will have to pay a penalty, which lowers the total interest earned on the deposit. The interest rates offered on FDs are subject to change from time to time, which also varies from lenders to lenders. Read more.
Coronavirus curbs have impacted cement supply side: JK Cement
More than production, the COVID-19 lockdown has impacted the movement of the cement outside the plant, said Rajnish Kapur, COO at JK Cement on Monday. Speaking to CNBC-TV18, he said, “At this point of time lockdowns have not impacted the production per se in any of our operations. However, what we are now witnessing is on the supply side, where we are now finding some of the cities where the cities have entered into partial kind of lockdown, some places it is night curfew and in some cities especially in MP where the day movement is also not allowed so the movement of the cement outside the plant is something which has got affected.” Read more.
Flipkart-Adani Group deal to strengthen supply chain infrastructure and data centre capabilities
Flipkart and Adani Group announced on Monday a strategic partnership focused on strengthening supply chain infrastructure and data centre capabilities. The move is expected to generate 2,500 jobs as well. The partnership will be a two-pronged one. Flipkart will work with Adani Logistics Limited, the end-to-end logistics service provider and a wholly-owned subsidiary of Adani Ports & Special Economic Zone Limited, to strengthen its supply chain infrastructure to serve its customers. Flipkart will set up its third data centre at Adaniconnex Private Limited Chennai based facility. Adaniconnex Private Limited is a new joint venture formed between EdgeConneX and Adani Enterprises Ltd. Read more.
Praj Industries bags order for syrup-based ethanol plant from Godavari Biorefineries
Praj Industries on Monday said it has bagged an order to set up a syrup-based ethanol plant from Godavari Biorefineries in Karnataka. As a part of this project, Praj will expand the existing ethanol manufacturing capacity of Godavari Biorefineries from 400 KLPD (kilo-litre per day) to 600 KLPD, using sugarcane syrup, Praj Industries said in a regulatory filing. Praj Industries said, when commissioned, this will become India’s largest capacity syrup-based ethanol plant. The company, however, did not share financial details of the order received
Hope this market fall is a passing phase, says Invesco MF’s Taher Badshah
Taher Badshah, CIO-Equities at Invesco Mutual Fund, hopes that the fall in the markets is a passing phase. In an interview with CNBC-TV18, Badshah said, “I hope that this market fall is a passing phase and we are able to bring control over the situation. The next few weeks are the ones to watch, we need to see how this situation unfolds. In terms of earnings, he said, “Components of earnings drivers will change a little bit, some will strengthen, some will weaken. I would like to probably think of the markets as divided more from the point of view of global versus local. The domestic stories will probably take a little bit of setback. IT, pharma, some of the global cyclical, the commodity cyclical would hold a reasonably decent favour but domestic stories – the ones centred around the consumer – will probably take a little of a backseat.” Read more.
Buzzing | Shares of Ratnamani Metals and Tubes rallied over 6 percent to hit a 52-week high of Rs 2,141 apiece after the company received a domestic order of Rs 594 crore for coated carbon steel pipes from oil and gas sector, to be executed between September 2021 to July 2022.
Oil prices drop as coronavirus caseloads rise
Oil slipped on Monday in thin trading as rising COVID-19 case numbers in some parts of the world kept a lid on prices, even as the Federal Reserve signalled the U.S. economy may soon rebound as vaccinations accelerate. Brent was up 28 cents, or 0.4 percent, at $62.67 a barrel, having risen to as high as $63.30 earlier. US crude was down 23 cents, or 04 percent, to $59.09 a barrel, after rising as much as 46 cents earlier.
JMC bags new orders worth Rs 1,262 crore
Kalpataru Power Transmission arm JMC Projects has won new orders worth Rs 1,262 crore. ”Kalpataru Power Transmission Projects arm JMC Projects, a civil engineering and EPC company has secured new orders of Rs 1,262 crore (received orders of Rs 431 crore in March 2021 and Rs 831 crore in month of April 2021 till date),” a BSE filing said. The orders include building projects in India of Rs 1,059 crores and water project in Maldives of about Rs 203 crore. Read more.
Biocon’s arm gets GMP compliance certificate from UK’s health regulator MHRA for Bengaluru facility
Biotechnology firm Biocon said its subsidiary Biocon Pharma has received Good Manufacturing Practice (GMP) compliance certificate from UK’s health regulator MHRA for its Bengaluru facility. The certificate, which includes manufacturing and packaging of tablets and capsules in the non-potent and potent blocks of the facility, was issued based on a remote inspection in the week of March 22, 2021, in the wake of travel restrictions amidst COVID-19.
India VIX jumps 15% as markets turn jittery over coronavirus lockdown worries
India VIX (Volatility Index) surged over 15 percent to 23 on Monday, indicating nervousness among investors, following a nearly 3 percent fall in benchmark indices amid broad-based sell-off. This is the second-highest level of India VIX in 2021 after it rose over 21 percent on February 26, 2021. VIX is meant to indicate investors’ perception of the annual market volatility over the next 30 calendar days. The higher the value, the higher is the expected volatility and vice versa. The indices witnessed heavy sell-off following concerns surrounding lockdowns as the COVID-19 cases rose in India to record high levels and various states imposed further restrictions to tackle the spread of the second wave of the coronavirus pandemic. Read more.
Market Watch: Aditya Agarwala of Yes Securities
“I have a sell on Bandhan Bank, it is one of the weakest banks at the moment. The stock is already down 7.50-8 percent but still I see more room on the downside. IT has broken down from a trendline support on very good volumes so there is more weakness on the downside. One can go ahead and short at current levels for targets of Rs 320 and keep a stop loss at Rs 340-341 on the upside.”
“The second recommendation is a buy on Divi’s Laboratories, pharma and FMCG space are the only two sectors which are holding down. Divi’s has broken out from a downwards slopping channel and at current levels one can go and accumulate the stock, but for a targets of Rs 4,050 keeping a stop loss at Rs 3,750 on the downside.”
Banks, NBFCs fall as rising COVID-19 cases dampen sentiment; SBI, HDFC Bank among worst hit
Shares of banks and NBCFs plunged in the early trade on Monday as the sharp rise in the country’s coronavirus cases dampened investor sentiment and raised concerns over economic recovery. The Nifty Bank index declined over 4 percent, while the benchmark Nifty was trading more than 2.5 percent lower. Private lenders such as HDFC Bank, IndusInd Bank, Axis Bank, ICIC Bank, RBL Bank, among others plunged between 4-8 percent, while PSU banks including SBI, IOB, Bank of Baroda, PNB and Canara Bank declined between 6-8 percent. More here
Buzzing | Shares of Solara Active Pharma Sciences jumped over 11 percent in an otherwise weak market after the company’s board of directors approved the amalgamation with Aurore Life Science, Empyrean Lifesciences and Hydra Active Pharma Sciences.
Market Watch: Ashish Kyal of Waves Strategy
Pharma had been the flavour not only today but if you look at the last few days pharma has been outperforming and even today when everything is falling the top 3-4 gainers are the pharma stocks. The first stock pick is Torrent Pharmaceuticals, one can initiate long positions here over short-term, keeping a stop loss of Rs 2,520 for the target of Rs 2,800 where the resistance is lying.
The next stock is on the short side is from auto space, Hero MotoCorp, the stock had been in a downtrend for quite some time for almost a month, there is absolutely no buying emerging, it has now broken below the previous pivot low so sell Hero MotoCorp with a stop loss of Rs 2,920 and target of Rs 2,600.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The resistance of 14,950-15,000 has worked once again, this time fiercely! The markets have taken a severe U-turn and have tested the 14,300-14,400 support. For the markets to move up, we need to respect this support range and bounce up. 14,264 was the recent low recorded and if we break that, the next expected level is 13,900.