Market Recap for 30 April 2021

Nifty50: 14,631 ▼ 263 (-1.7%)
Sensex: 48,782 ▼ 983 (-1.9%)

Today, the markets opened weakly and broke their rising streak that started this week. Selling pressure intensified further in the last hour of trade, with 38 of the Nifty50 constituents closing in the red.

Except for Nifty Pharma (+1.2%), all sectoral indices were down today, with Nifty Financial Services (-3.0%) and Nifty Bank (-2.7%) being the top losers.

Here are the top stories of the day.  

Dalmia Bharat profits surge in Q4

• The country’s fifth-largest cement manufacturer reported revenue from operations in Q4 of ₹3,281 crore, up 32% YoY. The increase in revenue was backed by a 24% increase in sales volume, which stood at 6.42 million tonnes. 
• Meanwhile, profit after tax rose over 25 times year-on-year to ₹640 crore. This growth comes on account of the rise in revenue and input-tax credit worth ₹212 crore. The stock was down nearly 2% today, and has moved sideways in April so far.

Tata Coffee rises on strong operating performance

• The coffee supplier to the Starbucks chain in India improved its revenue from operations by 14.4% to ₹591 crore in Q4. Meanwhile, consolidated net profit for the period stood at ₹57.4 crore, up 139% YoY.  
• The revenue growth was driven by a 44% growth in its plantation business. The performance of its value-added products business (i.e. roasted, ground and instant coffee) suffered due to logistics issues and muted demand. The stock rose 2.1% today. 

AU Small Finance Bank sees spike in NPAs

• Shares of Jaipur-based small finance bank fell 10.8% even as it reported a 38% YoY rise in net profit to ₹169 crore. The net interest income rose 18% to ₹656 crore. 
• Investor sentiments were dampened due to the sharp rise in net NPAs to 2.2% compared to 0.8% as of 31 March 2020. Just last month, the bank had raised ₹625 crore via QIP at ₹1,251 per share. The stock has dropped over 18% this month.

L&T Finance Holding Q4 profit slides

• For Q4FY21, L&T Finance Holdings reported a 31% YoY dip in consolidated net profit at ₹266 crores. Profit was impacted by one-time exceptional items of ₹161 crore relating to tax for earlier years and merger-related stamp duty.
• However, its total income rose by 4.7% YoY to ₹3,587 crore. Further, the company recorded an all-time high quarterly disbursement of ₹6,026 crore in rural finance, up 36% YoY.
• During the same period, gross non-performing assets declined to 4.97% from 5.36%. In a weak market, the stock fell 3.1% today and is down over 9% this month.

Closing bell

After rising for the most part of the week, the markets witnessed profit-booking today. However, not all is lost as the benchmark indices closed with gains of about 2% on a weekly basis. Today, the index bellwether Reliance Industries (RIL) is expected to announce its Q4 results. The markets have been range-bound for weeks, and given RIL’s weightage in the indices, the results may prove to be a trigger that helps the indices break out of the range. 

On Monday, manufacturing PMI data is also expected to be released. It will give an indication of what lies ahead, given that the second wave continues unabated and a strong Q4 is already behind us.

Good to know

What is an after-market order?

An after-market order (AMO) is a type of order that traders can use to place orders when the markets are closed, that is between 3:30 pm and 9:15 am. It helps you plan your trades in advance and place the orders before the markets open. 

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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.