Market Recap for 5 May 2021

Nifty50: 14,617 ▲ +121 (+0.8%)
Sensex: 48,677 ▲ +424 (+0.8%)

After a gap-up, the markets moved in a range-bound manner, but remained in the green throughout the day. The market breadth was positive too, with 44 of the Nifty50 stocks closing in the green.  Except for the Nifty Realty (-1.0%), all sectoral indices posted gains today, with maximum buying seen in the Nifty Pharma (+4.1%) and Nifty Bank (+1.5%) indices.

Here are the top stories of the day.  

Adani Total Gas posts strong quarter

• Adani Total Gas reported a 19% rise in its Q4 net profit to ₹145 crore, while revenue from operations grew 25% to ₹614 crore. The growth was driven by higher PNG sales volumes, up 21% YoY, as the company expanded operations into newer geographies.
• While volumes of CNG sold to automobiles and PNG to households and industries recovered to pre-Covid levels in the second half of 2020-21, the second wave has marginally hurt demand. The stock was up 0.7% today and has risen over 9% in the last three trading sessions.

L&T Infotech posts robust Q4 

• The IT services wing of L&T group reported revenue from operations worth ₹3,269 crore, up 3.6% QoQ. Meanwhile, net profit for the period rose 5% to ₹546 crore.
• During Q4, the company won two deals worth a total of $66 million. Vertical-wise banking & financial services, manufacturing and media & entertainment were key revenue drivers. The stock closed 1.6% higher today, but was down 4% in April.

Hikal bags multi-product deal

• Shares of the Mumbai-based contract manufacturer of pharmaceutical and crop protection products were locked in their 10% upper circuit today. The company has signed a 10-year multi-product deal with a global pharma company. 
• The deal includes the development and supply of active pharmaceutical ingredients for animal healthcare. The supplies are expected to commence from FY24 onwards. The stock closed at a new life high today at ₹313.95.

P&G Hygiene and Health sees slow growth

• For the March quarter, the leading FMCG player reported revenue growth of 16% YoY to ₹760 crore backed by double-digit growth in its feminine care and health care business.
• Its profits grew at a relatively slower pace and were up 8% YoY to ₹98 crore. The profits were impacted by higher advertising and sales promotion expenses which rose nearly 73% YoY during the quarter. Shares of the company fell 1.8% today, however, they have gained 22.3% so far in 2021.

Closing bell

The Indian markets cheered the RBI’s measures to provide support to the economy battling the rising cases. High investor interest was seen in healthcare and banking stocks. While domestic cues were supportive, US markets may hold some cause for concern. Yesterday, the Dow Jones opened in the red as the US Treasury secretary hinted that interest rates could rise to keep the economy from overheating. However, the index later ended in green after the official said that they don’t see an inflation problem developing. In this context, traders will be watchful for cues from the US 10-year Treasury yields, which were up 4.5% last week.

Good to know

What is the difference between Intraday and delivery trades?

Intraday trading is the method of buying and selling shares on the same day. It allows traders to use margins, which lets you buy and sell stocks for a fraction of their actual price. In intraday trades, the shares never get transferred to your demat account.  On the other hand, delivery trading involves the intention to hold on to the purchased stock for longer than one day. In this process, there are no time constraints in the selling of stocks. Unlike in intraday trades, discount brokers do not charge brokerage on delivery trades. To know more, read our blog.  

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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.