Nifty50: 14,341 ▼ -64 (-0.4%)
Sensex: 47,878 ▼ -202 (-0.4%)
Following a gap-down opening, the markets witnessed a see-saw movement throughout the day. Selling pressure in the last hour pulled down the Nifty50, with 32 of its constituents closing in the red.
Among the sectoral indices, buying was strongest in the Nifty Media (+0.4%) and Nifty PSU Bank (+0.3%), while Nifty Realty (-1.1%) and Nifty FMCG (-0.9%) were the top losers today.
| Top gainers | Today's change |
| NTPC | ▲ 3.9% |
| Power Grid | ▲ 3.6% |
| HDFC | ▲ 1.6% |
| Top losers | Today's change |
| Britannia | ▼ 2.6% |
| M&M | ▼ 2.5% |
| Dr Reddy's | ▼ 2.4% |
Here are the top stories of the day.
Cadila’s Virafin gets nod for Covid treatment
- Zydus Cadila has received a restricted emergency use approval from the DGCA to use its drug Virafin in the treatment of Covid.
- During trials, the antiviral drug reportedly helped reduce the viral load and the need for supplemental oxygen in patients. Further, the company’s vaccine is likely to be launched around May-June. Shares of Cadila Healthcare rose 4.3% today and made a new lifetime high.
Torrent Power bags major solar project
- The Ahmedabad-based electricity transmission and distribution company has bagged a long-term contract for a 300MW solar power project.
- Estimated to cost about ₹1,250 crore, the project is to be commissioned within a span of 18 months. So far, Torrent Power has implemented renewable projects aggregating to about 786MW. The stock rose 2.3% today, but is down 7.2% in April.
Nazara Technologies posts robust FY21
- The recently listed gamified learning and e-sports platform reported consolidated revenue of ₹454 crore in FY21, an 84% YoY growth. Its EBITDA surged 470% YoY and margin rose to 12% from 4% last year.
- The rise in revenue was on account of an 820% growth in the company’s gamified learning business and a 102% growth in its e-sports vertical. The stock has risen 53% from its issue price of ₹1,101.
Hotel stocks witness buying interest
- Shares of top hotels saw renewed buying interest this week as hopes of revival in the hospitality industry got a shot in the arm. The optimism comes after the government announced vaccination for all above the age of 18 from 1 May.
- This week, Indian Hotels, Chalet Hotels and Lemon Tree gained around 5–7% each. Further, the increase in price was supported by a rise in volumes, indicating investor interest. These stocks have corrected nearly 13–20% so far this year.
Closing bell
The last day of the week witnessed a range-bound trading session. The Nifty50 oscillated between the positive and negative zones, and finally closed almost where it opened, indicating indecision. The weekly performance was not much different either.
For nearly two months now, the benchmark indices have been consolidating with a downward bias. On the one hand, banks have been a drag on the indices, while on the other, metals, pharma and IT stocks have lent some support. However, sector rotation happens at regular intervals, and traders should adjust stock selection accordingly.
Good to know
What is sector rotation?
Sector rotation is the strategy of moving money from one sector of the stock market to another, based on various stages of an industry's business cycles. Certain sectors thrive and slump periodically, depending on which stage of the business cycle they are currently in. Sector rotation is used to benefit from the rise and fall in business cycles.
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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.