Market Recap for 29 April 2021

Nifty50: 14,894 ▲ 30 (+0.2%)
Sensex: 49,765 ▲ 32 (+0.0%)

The markets managed to rise for the fourth consecutive day, led mainly by metals stocks. Although the benchmarks managed to close in the green, the market breadth was weak with 29 of the Nifty50 stocks closing in the red.

Among the sectoral indices, Nifty Metal (+4.5%) witnessed the strongest gains, whereas the Nifty PSU Bank (-1.1%) and Nifty Auto (-0.9%) were the top losers.

Here are the top stories of the day.  

HUL Q4 results beat street estimates

• The FMCG major’s revenue rose 35% YoY to ₹12,132 crore versus the estimated ₹11,733 crore. Meanwhile, net profit at ₹2,143 crore was 41% higher than Q4FY20, and also better than the street’s estimate of ₹1,968 crore.
• Business was driven by the food & refreshment and other (including exports, infant & feminine care) segments, which grew 96% and 222%, respectively. The stock closed 0.6% higher but has been moving sideways this month.

Biocon’s net profit nearly doubles

• The Bengaluru-based biopharmaceutical company recorded consolidated revenue of ₹2,044 crore in Q4, 26% up YoY. Net profit grew by 95% to ₹257 crore.
• The healthy quarter comes on account of strong growth in the company’s biosimilars business, where revenue grew 53% to ₹664 crore. Further, the company reported a gain of ₹160 crore arising on the fair valuation of its erstwhile subsidiary Bicara Therapeutics. The stock closed 0.8% higher today but has declined 3.6% so far in April. 

UTI AMC hits lifetime high on strong Q4 

• For Q4FY21, the asset management company reported revenue from operations of ₹289 crore, up 112% YoY. For FY21, total assets under management grew 19% YoY to ₹11.6 lakh crore.
• Crucially, the AMC posted profit after tax of nearly ₹134 crore versus a loss of ₹25 crore last Q4, owing to a sharp drop of 33% in employee expenses. After gaining over 5% intraday and hitting its lifetime high, the stock closed 2.7% higher today.

Mastek rises on robust Q4

• The Mumbai-based IT services company reported operating revenue of ₹483 crore, which grew 9.1% QoQ. Meanwhile, its net profit was up 7.7% to ₹75.7 crore. 
• The company said that cloud and digital transformation services were the chief drivers of its business during the quarter. It has a 12-month order backlog worth ₹1,130 crore, up 19% YoY. The stock rose nearly 6% today and has jumped 32.5% this month.

Closing bell

The markets were able to extend the rally that started this week. However, it seems that after a solid start, the markets hit a roadblock and witnessed profit-booking at higher levels. Meanwhile, the US Fed held the interest rates near zero and maintained its easy-money policy despite expectations of higher inflation. As India Inc. continues to battle the Covid crisis, delays in the vaccination drive and lockdown extensions could spoil investor sentiments.

Good to know

What is FIRE?

An acronym for Financial Independence, Retire Early, FIRE is a financial movement that originated in the early ’90s in the US. Its followers dedicate up to 70% of their income to savings until their corpus reaches about 30 times their annual expenses. They then retire from their day jobs and make small withdrawals from accumulated funds to sustain living expenses.

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Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.