Nifty50: 14,942 ▲ +119 (+0.8%)
Sensex: 49,502 ▲ +295 (+0.6%)
The markets opened with a gap-up and moved within a range. The benchmark indices remained in the green throughout, with 38 of the Nifty50 stocks closing higher. All sectoral indices closed higher, with Nifty Metal (+3.1%) making the strongest gains, followed by Nifty Pharma (+2.8%).
| Top gainers | Today's change |
| Coal India | ▲ 8.2% |
| UPL | ▲ 8.0% |
| Hindalco | ▲ 6.2% |
| Top losers | Today's change |
| Shree Cement | ▼ 1.9% |
| Ultratech Cement | ▼ 1.2% |
| Britannia | ▼ 1.2% |
Here are the top stories of the day.
Retail auto sales drop in April
- As per the Federation of Automobile Dealers Associations (FADA), total vehicle registrations for April 2021 fell by 28% on a month-on-month basis. Sales of two-wheelers, passenger vehicles and commercial vehicles fell in the range of 24–28%.
- The consumer sentiment has remained subdued so far in May due to regional lockdowns. However, the FADA believes that rural markets could recover faster given the expectation of an average monsoon, which could have a positive effect on sales of tractors and two-wheelers.
Grindwell Norton jumps on strong Q4
- The abrasives maker improved its Q4 revenue from operations by 39% YoY to ₹508 crore. The performance was driven by a 44% YoY revenue growth in its ceramics and plastics businesses.
- Consolidated net profit nearly doubled versus the last Q4 to ₹80.5 crore on account of strong operational performance and a rise in other income. The company’s shares hit a new lifetime high of ₹1,143 intraday and closed with gains of 5.9%.
DCB Bank posts mixed quarter
- For Q4FY21, the private lender reported a net profit of ₹78 crore, up 13% YoY but 19% weaker QoQ. However, net interest income declined 4% YoY to ₹311 crore. The profits were supported by a 22% jump in non-interest income.
- Meanwhile, the bank's asset quality worsened as the net NPAs as of 31 March 2021 stood at 2.29% versus 1.16% a year ago. The bank said it has made a contingency provision of ₹124 crore towards further impact of Covid-19 on restructured and stressed assets. The stock rose 1.9% today but is down 22% so far this year.
EIH reports weak quarter
- The luxury hotel chain reported a 47% drop in its Q4 consolidated revenue from operations to ₹216 crore, mainly impacted by the pandemic. It recorded a loss of ₹49 crore versus a profit of ₹33 crore in Q4FY20.
- On the upside, the company managed to pare debt worth ₹138rore during the latest quarter. The stock closed 0.6% weaker today, and has declined about 14.2% since 2021.
Closing bell
The benchmark indices have inched up steadily over the past four trading sessions, and the participation was broad-based on most days. Even today, all the sectoral indices closed in the green. The street expects inflation for April to show signs of cooling off (at 4.2% versus 5.5% in March), while the March IIP figures are expected to show a sharp bounce of 17%. Further, the steady progress of vaccination across the country is directionally positive for the stock markets.
Good to know
What is the IIP?
The Index of Industrial Production, or IIP, tracks the industrial activity in India. It calculates the data of eight core industries, namely coal, crude, natural gas, refinery products, steel, cement, fertilisers and electricity. A rise in the IIP indicates a growth in the manufacturing sector, which augurs well for the markets. The data is released on the 12th of every month by the Central Statistical Organisation (CSO).
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Investment in securities markets is 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.