Standout Brokerage Report: Key model portfolio changes by Kotak Institutional Equities
Sanjeev Prasad, Managing Director, Co-Head of Kotak Institutional Equities, has made some minor changes in the model portfolio. The shift is towards cyclicals at the expense of defensive. He is cutting 100 basis points (bps) from Hindustan Unilever Ltd (HUL) and adding 50 bps each to ICICI Bank and Axis Bank. He is also adding 150 bps to DLF. Watch here.
Larsen & Toubro begins constructing the 300MW Solar Plant in Saudi Arabia
The Renewables arm of L&T’s Power Transmission and Distribution Business has secured the go-ahead to begin constructing the 300MW Jeddah Solar PV Power Plant. The turnkey EPC order has been received from the consortium of Masdar, EDF Renewables and Nesma Company.
Market Watch: Ruchit Jain of Angel Broking
“First recommendation is a sell on Escorts, one can go short on Escorts Future at current market price with stop loss above Rs 1,255 expecting targets around Rs 1,192.”
“Jubilant FoodWorks is other stock which we are looking to short. In that last five minutes itself the prices have started correcting so here also we are bearish. The stock has broken a rising trendline yesterday so if you get minor pullback during intraday maybe around Rs 2,730-2,740 range go short on Jubilant FoodWorks Future with a stop loss at Rs 2,790 for target of Rs 2,650.”
IDBI Bank shares jump 8% on report of Cabinet considering divestment proposal in the lender
Shares of IDBI Bank rose 8 percent on Tuesday on a media report that the Union Cabinet will soon consider a proposal to divest the government’s 45.5 percent stake in the lender. The government will also consult LIC, which owns 49.2 percent of IDBI Bank, before beginning the stake sale process, added the report. A Business Standard report stated that the cabinet approval will give the Department of Investment and Public Asset Management (DIPAM) the authority to move ahead with the divestment process. The government’s plan to sell its holding in the lender was delayed due to the COVID-19 pandemic, the report added.
Adani Ports shares fall 5% after S&P removes stock from sustainability index
The share price of Adani Ports and Special Economic Zone (APSEZ) slumped over 5 percent in early trade on Tuesday on reports that S&P Dow Jones Indices removed the stock from its sustainability index. S&P Dow Jones Indices said it has removed the company from its sustainability index due to the firm’s business ties with Myanmar’s military which is accused of human rights abuses after a coup this year, Reuters reported. India’s largest private multi-port operator is building a $290 million port in Yangon on land leased from the military-backed Myanmar Economic Corporation (MEC). It will be removed from the index prior to the opening on Thursday, April 15, it said in a statement on Tuesday. More here
Dr Reddy’s shares fall on profit-booking after DCGI’s nod for use of Sputnik V
The share price of Dr Reddy’s Laboratories gained over 3 percent in early trade on Tuesday after the Drug Controller General of India (DCGI) approved restricted emergency use of Russian COVID-19 vaccine ‘Sputnik V’ in India. The stock, however, succumbed to profit-booking after opening higher. At 11:04 am, the shares were trading 2.71 percent lower at Rs 4,854 apiece on the BSE. Dr Reddy’s Laboratories has been conducting small clinical trials with Sputnik V in India since it entered into a deal with the Russian Direct Investment Fund (RDIF). More here
Second wave of COVID-19 poses credit-negative threat to India’s economic recovery: Moody’s
The second wave of coronavirus infections poses a credit-negative threat to the economic recovery of India, rating agency Moody’s Investors Services said. The countermeasures to combat the second wave of the pandemic risk weakening the economic recovery, the global credit rating agency said. However, the targeted nature of containment measures and rapid progress on vaccination will mitigate the credit-negative impact. Moody’s said that the second wave of infections presents a risk to its growth forecast for India. Retail and recreation activity across India had dropped by 25 percent as of April 7 versus February 24, it noted. The agency expects the impact on economic activity to be less severe than in 2020 due to the micro-containment zone focus and believes the GDP growth is still likely to be in double digits in 2021 given the low level of activity in 2020. Meanwhile, vaccination will be key element in managing the second wave, it said.
Cipla tells CNBC-TV18, the company has scaled up production of Remdesvir by 2x from last wave of pandemic & ramping up further via its network to meet demand pic.twitter.com/AufZNCzRxx
— CNBC-TV18 (@CNBCTV18Live) April 13, 2021
NBCC (India) | The company has been awarded the work order for engagement as Project Management Consultant (PMC) for Construction of FCIL office building at Noida, Sector -1 on April 9, 2021. NBCC is the Project Management Consultant for this project value of Rs 65.10 crore at PMC fee of seven percent.
IT sector to benefit from COVID-19 disruptions: Marcellus’ Saurabh Mukherjea
Saurabh Mukherjea, founder of Marcellus Investment Managers, believes that economic recovery is underway and will reflect in Q4 earnings. He expects IT sector to be the beneficiary of COVID-19 disruptions with respect to digitalisation. “In IT we have had TCS for a long time, we have added L&T Technologies a month or so back. We will carry on with these two. The only other tech stock we have in some of our portfolios is Info Edge, which carries on being a natural play on the digitisation of the country. So IT is a beneficiary of this whole COVID wave and the digitisation not just in India but globally.” Watch video for more.
February IIP slips to -3.6%; March retail inflation rises to 5.5%
Industrial production (IIP) contracted 3.6 percent in February, according to government data. According to the Index of Industrial Production (IIP) data released by the National Statistical Office (NSO), manufacturing sector output declined by 3.7 percent in February 2021. Mining output slipped 5.5 percent, while power generation grew by 0.1 per cent in February. The IIP had grown by 5.2 percent in February 2020. During April-February, IIP contracted by 11.3 percent compared to one per cent growth in the corresponding period of 2019-20. Industrial production has been hit due to the COVID-19 pandemic since March last year when it contracted by 18.7 percent. Meanwhile, Consumer Price Index-based inflation (CPI) rose to 5.52 percent in the month of March, the data said. The retail inflation during the month of February was at 5.03 percent. More here
Cipla and Sun Pharma remain our top picks: Sanford Bernstein
Cipla and Sun Pharma remain our top picks, said Nithya Balasubramanian, director of Sanford Bernstein, on Monday. Speaking in an interview to CNBC-TV18, she said, “Cipla and Sun Pharmaceutical Industries do remain our top picks. Cipla has been gaining over the last couple of days. I am assuming it has a lot to do with the fact that cases are picking up and Cipla is likely to see incremental sales from Remdesivir, Favipiravir, Tocilizumab etc., but beyond that we like Cipla for increasing visibility in the respiratory generic pipeline that they have in the US.”
“Sun Pharma has become increasingly constructive on their specialty portfolio and what they can do in some of their assets like Ilumya, Cequa, Odomzo in the US market and if it so happens that we go back to a situation where again there are a lot of local lockdowns, larger companies like Cipla and Sun Pharma are likely to gain at the domestic pharma market as well because the stronger the brand is the better the availability and during the lockdowns Doctors also prefer larger brands. So I would assume that’s positive for both the companies. Therefore, both remain as our top picks,” she said. More here
Recent correction buying opportunity; IT, pharma good defensives: Geosphere Capital
Arvind Sanger, the managing partner of Geosphere Capital Management, believes that the recent correction in the market is a buying opportunity. According to him, IT and pharmaceuticals are good defensives to have in a portfolio. “As the vaccine rollout accelerates, as we are seeing in places like the UK and the USA, these things do not last very long and therefore, this is a buying opportunity,” Sanger said in an interview with CNBC-TV18. On sectors, Sanger said, “IT and pharma are good defensives in a portfolio to have and they have done well. We like some of the banks like ICICI Bank, Axis Bank, and State Bank of India (SBI), and we like some of the high-quality non-banking financial companies (NBFCs).” More here
TCS share price drops 4% post Q4 results, profit-booking; IT index dips 2%
Tata Consultancy Services (TCS) share price dropped nearly 4 percent on Tuesday after the IT major’s March quarter results came in below analysts’ expectations and as investors took to profit-booking. The company reported a 6.26 percent YoY rise in its consolidated net profit at Rs 9,246 crore in Q4. The profit, however, was slightly lower than CNBC-TV-18’s estimates of Rs 9,317 crore. The stock fell as much as 3.7 percent to its day’s low of Rs 3,210.8 per share on the BSE. The sentiment impacted other IT stocks as well with the sectoral gauge also down 2 percent. Infosys, MindTree, Tech Mahindra, Mphasis and Coforge also lost over 2 percent each following TCS’ results.
Morning market quote from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Service
“While the second wave of the pandemic is a cause of concern, it does not warrant a panic reaction in the market. Lockdowns & restrictions will only be localised and unlikely to severely impact economic recovery. The fact that we have vaccines will pre-empt extreme fear and panic. Also, businesses have learned to adapt to the new normal. TCS’ results confirm that we are in a multi-year upcycle in IT. So it makes sense to remain invested in top quality IT names along with pharma. Bank Nifty is down 18% from the peak on asset quality concerns arising out of the second wave. Weakness in the Financials segment will give opportunities to investors to buy high-quality names in leading banks, mortgage and fintech companies”
Opening Bell: Sensex opens 200 points higher, Nifty above 14,350; pharma stocks gain
Indian indices opened higher on Tuesday rebounding from the 3.5 percent fall in the previous session on the back of surging COVID cases, worries about another lockdown and its economic impact. Gains were mainly led by pharma, FMCG ans banking stocks, however, other sectors were also in the green in early deals. At 9:18 am, the Sensex was up 194 points at 48,078 while the Nifty rose 69 points to 14,380. Broader markets were also up with the midcap and smallcap indices up 1-1.5 percent each. On the Nifty50 index, Cipla, Shree Cement, Tata Steel, Divi’s Labs and Hindalco were the top gainers while Adani Ports, TCS, Tata Motors, Tech Mahindra and Infosys led the losses.
Market Watch: Shubham Agarwal, CEO & Head of Research at Quantsapp Advisory
– Buy Nestle with a stop loss of Rs 17,000 and a target of Rs 18,200.
– 400 strike Put option can be bought on Bharat Petroleum Corporation Ltd (BPCL) with a stop loss of Rs 6 and a target of Rs 17.
– 120 strike Put option can be bought on REC with a stop loss of Re 1 and a target of Rs 4.
Petrol, diesel prices remain stable for 14th consecutive day
The retail fuel prices remain steady for the 14th consecutive day on Tuesday, with the price of petrol at Rs 90.56 per litre in the national capital. The price of diesel stood at Rs 80.87 per litre, according to Indian Oil Corporation, the country’s largest fuel retailer. In Mumbai, the petrol price remained unchanged at Rs 96.98 per litre on Monday. The cost of diesel also was the same at Rs 87.96 a litre. The prices of petrol and diesel are reviewed by oil marketing companies such as state-run Indian Oil on a daily basis and any revision is implemented from 6 am in the morning. More here
Sebi imposes Rs 25 crore penalty on YES Bank in AT1 bonds case
Market regulator, Securities and Exchange Board of India (Sebi), on April 12 imposed a monetary penalty of Rs 25 crore on private sector lender, YES Bank in the additional tier 1 bonds (AT1) misselling case. Sebi has asked the bank to pay the penalty amount within 45 days of receipt of the notice. Besides YES Bank, Sebi has also imposed penalties on Vivek Kanwar (Rs one crore), Ashish Nasa (Rs 50 lakhs) and Jasjit Singh Banga (Rs 50 lakhs). Kanwar was the Head of YES Bank’s private wealth management team. Other two were also former executives of YES Bank. More here
DCGI gives nod for emergency use of Sputnik V vaccine for COVID-19
The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, announced that the Drug Controller General of India (DCGI) has approved the use of the Russian Sputnik V vaccine against coronavirus in the country. With this, India has become the 60th country to approve Sputnik V. “India is the most populated country to register the Russian vaccine. Total population of 60 countries where Sputnik V is approved for use is 3 billion people or about 40 percent of the global population,” said RDIF. Sputnik V is the third vaccine to get approval for rollout against the coronavirus infections in India after Covishield, the Oxford-Astrazeneca vaccine manufactured by the Serum Institute of India, and home-grown Covaxin. More here
Asia shares cautious ahead of US earnings and inflation data
Asia share markets were cautious on Tuesday after US markets weakened as investors anticipated the start of corporate earnings seasons and the release of key inflation data to indicate how the global recovery from the pandemic will emerge. MSCI’s broadest index of Asia-Pacific shares outside Japan was trading less than 0.1 percent higher early Tuesday. In Australia, the S&P/ASX200 gained 10 points to 6983.90 early in the session while Japan’s Nikkei rose 0.9 percent. Tech stocks drove the gain in Australian stocks while the country’s major miners showed signs of weakness. Hong Kong’s Hang Seng Index added 0.6 percent in early trade while the mainland blue-chip index CSI300 edged up 0.3 percent ahead of March trade figures due to be published Tuesday. More here
S&P Dow Jones Indices removes Adani Ports from sustainability index
S&P Dow Jones Indices said it has removed India’s Adani Ports and Special Economic Zone Ltd from its sustainability index due to the firm’s business ties with Myanmar’s military which is accused of human rights abuses after a coup this year. India’s largest private multi-port operator is building a USD 290 million port in Yangon on land leased from the military-backed Myanmar Economic Corporation (MEC). It will be removed from the index prior to the open on Thursday, April 15, it said in a statement on Tuesday. More than 700 people have been killed since a Feb.1 military coup that ousted an elected government led by Aung San Suu Kyi. More here
TCS Q4 net profit rises 6.2% QoQ to Rs 9,246 crore; Revenue up 4% at Rs 43,705 crore
Tata Consultancy Services (TCS), the country’s largest software services exporter, reported a 6.26 percent rise in consolidated net profit at Rs 9,246 crore in the fourth quarter of fiscal 2021 as compared to Rs 8,701 crore in the previous quarter. The company’s consolidated revenue in Q4FY21 increased 4 percent to Rs 43,705 crore from Rs 42,015 crore in the December quarter. CNBC-TV18 poll had an estimated revenue of Rs 43,660 crore. In dollar terms, TCS earned revenue of USD 5,989 million during the quarter ended March 2021 as against estimates of $5,975 million. It registered revenue growth of 5 percent versus 5.1 percent, QoQ. More here