Market Recap for 31 May 2021

Nifty50: 15,582 ▲ +147 (+0.9%)
Sensex: 51,937 ▲ +514 (+1.0%)

After briefly witnessing selling in the opening hour, the benchmark indices climbed steadily throughout the day. With 39 of the Nifty50 stocks closing in the green, the market breadth was strongly positive. 

Among the sectoral indices, the Nifty Metal (+2.1%) and Nifty Realty (+1.3%) were the strongest gainers, while stocks in Nifty Media (-1.3%) and Nifty PSU Bank (-0.6%) witnessed selling pressure.

Here are the top stories of the day.

Divi’s Labs hits lifetime-high on robust Q4

• Shares of the Hyderabad-based drugmaker hit their lifetime high of ₹4,284 after the announcement of a strong Q4. It reported a consolidated net profit of ₹502 crore in Q4, beating estimates of about ₹470 crore.
• Meanwhile, revenue grew by 28%. In the current fiscal, it has lined up a capex of ₹400 crore to fast track a custom synthesis project. The stock has gained about 3% in May.

Heidelberg’s Q4 profit doubles

• The cement maker’s scrip surged over 12% intraday and hit its lifetime high of ₹284.9 on account of a strong Q4. Compared to last year, the company more than doubled its net profit to ₹140 crore. Meanwhile, revenue rose 14%. 
• Apart from a 15% YoY increase in volumes and a 4% rise in EBITDA per ton of cement, the profits were pushed higher by a reduction in taxes. The stock closed 0.7% lower today, but has risen about 11% so far this year.

Dollar Industries posts strong growth

• Hosiery maker Dollar Industries recorded a 58% YoY jump in net profit to ₹19.5 crore in the March quarter. Meanwhile, revenue from operations grew 30% YoY to ₹308 crore. 
• As per reports, the company said that raw material prices have been uncertain in the current quarter. The stock witnessed profit booking today and was down 9.4% today but has gained over 30% in May.

J Kumar Infra bags metro contract

• Engineering and construction company J Kumar has received an order worth ₹1,307 crore from the Mumbai Metropolitan Region Development Authority. The work involves design and construction of certain portions of Mumbai Metro, including ten elevated stations. 
• Its stock rose 3.2% today and has gained nearly 37% so far in 2021.

Closing bell

Today, the benchmark indices made a decisive upward move and registered strong gains. They ignored the movement in the international indices, most of which are trading in the red today. In all, the Nifty50 has gained 6.5% this month. 

Today, the GDP data was released. On a yearly basis, the economy contracted by 7.3%. However, for the March quarter, the number stood at 1.6%, higher than street estimates of around 1.2%. Further, it is a marked improvement over the December quarter’s 0.4%. Directionally, the markets have also echoed the improvement in the economy. There are more data releases lined up this week, and traders should remain nimble-footed in case volatility rises.

Good to know

What are current debt and non-current debt?

Current debt typically refers to debt instruments that need to be repaid within one year, such as short-term loans and overnight loans. On the other hand, non-current debt comprises debt that needs to be repaid after more than one year. Long-term bonds and bank loans are examples of non-current debt.

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