Nifty50: 15,860 ▲+70 (+0.4%)
Sensex: 52,925 ▲+226 (+0.4%)
After initial volatility, the markets steadily moved upwards throughout the day. Of the Nifty50, 34 stocks closed with gains.
All the Nifty sectoral indices, except FMCG (-0.6%), closed in the green, with PSU Bank (+2.6%) witnessing the strongest gains.
| Top gainers | Today's change |
| Tata Steel | ▲ 4.7% |
| Axis Bank | ▲ 2.9% |
| SBI | ▲ 2.7% |
| Top losers | Today's change |
| Reliance Industries | ▼ 2.2% |
| HUL | ▼ 1.6% |
| NTPC | ▼ 1.6% |
Here are the top stories of the day.
ONGC benefits from rising crude prices
- State-owned oil exploration and production company’s standalone net profit surged to ₹6,734 crore in Q4, aided by an exceptional item and higher realisation (revenue per barrel of oil). In comparison, the company had reported a loss of ₹3,214 crore in March 2020.
- In the wake of rising oil prices, the net realisation rose by 18% year-on-year (YoY) to $58 per barrel. But the company’s revenue declined by 1.2% YoY due to a drop in production and lower gas prices. Nonetheless, the stock fell 0.9% today.
Ashok Leyland back on track
- Shares of commercial vehicle maker Ashok Leyland rose 4.4% as it reported a profit of ₹241 crore in the March quarter of FY21. A 32% sequential jump in volumes helped the company to return to profits after the losses seen in the previous quarter.
- Its revenues also saw a strong uptick of 45% quarter-on-quarter. While the Q4 performance was strong, the second wave has brought back challenges. However, the company has said that it is better prepared this time and believes that a bounce back in GDP growth in FY22 would augur well for the CV industry.
Shilpa Medicare gets nod for Covid drug
- Karnataka-based drug maker Shilpa Medicare has received an in-principle approval from the Defence Research and Development Organisation (DRDO) for the manufacture and sale of 2-Deoxy-D-Glucose (2DG). The drug has been given emergency approval for use in the treatment of Covid patients.
- It is the second pharma company to receive approval for making this drug after Dr Reddy’s. Earlier, Shilpa Medicare had also announced that it has entered into an agreement to manufacture the Sputnik V vaccine. Shares of Shilpa Medicare rose 3.2% today and have gained over 70% so far this fiscal.
Pent-up travel demand strong
- According to an industry study, 69% respondents indicated keenness to resume travel in 2021 after restrictions are eased. The holiday-readiness survey report released by Thomas Cook and its subsidiary SOTC Travel reveals that there is strong pent-up travel demand.
- Interestingly, 3 out 4 people expressed strong preference for interaction with an expert for guidance, which is usually not provided by online tour operators. Shares of Thomas Cook were up 4.1% today, whereas that of online travel company Easy Trip Planners were subdued with a decline of 1.1%.
Closing bell
This week, the markets showed strength and rose over 1%. Shares of index heavyweight Reliance Industries fell 5.5% in this week but the pressure on the index was comfortably absorbed by the rise in banking, IT and metal stocks. On a closing basis, the markets have closed at their highest point and the mood is cheerful. Further, the declining number of daily cases is supportive for the demand recovery and general sentiment. However, one of the key risks that the street perceives, at this point, is the rising inflation. It remains to be seen whether the supply of goods picks up enough pace to calm the inflation or the central bank hikes interest rates to control the rise in prices.
Good to know
What is EBITDA margin?
EBITDA stands for earnings before interest, taxes, depreciation and amortisation. It is a measure of a company’s profit at the operating level. EBITDA tells investors how much profit a company generates after subtracting costs such as raw material, manpower and other operational costs. EBITDA margin refers to the ratio of EBITDA to sales in percentage terms, and is calculated as EBITDA/Sales * 100. It helps in comparing the operating efficiency of companies in the same sector, regardless of their size.
We'd love your thoughts on this market recap.
Haven't tried out Upstox yet? Click here to open your account now!
To catch our latest educational videos, join our Telegram channel here.
Disclosures and Disclaimer
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.