Nifty50: 14,823 ▲ +98 (+0.6%)
Sensex: 49,206 ▲ +256 (+0.5%)
The markets opened with a gap-up and remained positive throughout the day. The market breadth was also positive, with 33 of the Nifty50 stocks closing in the green. Among the Nifty sectoral indices, Metal (+4.7%) and Media (+0.9%) witnessed the strongest gains, while PSU Bank (-0.1%) and Pharma (-0.0%) closed marginally in the red.
| Top gainers | Today's change |
| Tata Steel | ▲ 7.5% |
| Hindalco | ▲ 3.8% |
| JSW Steel | ▲ 3.3% |
| Top losers | Today's change |
| Tata Consumer | ▼ 3.5% |
| Hero Moto Corp | ▼ 2.0% |
| Bajaj Auto | ▼ 1.8% |
Here are the top stories of the day.
HDFC sees strong profit growth in Q4
- For the latest quarter, the home financier’s net income from interest stood at ₹4,065 crore, up 14% YoY. Standalone profit after tax for the quarter rose 42% to ₹3,180 crore. Both the numbers were above street estimates.
- The company's gross NPA of 1.99% beat street estimates of 2.08%, but were higher than Q3's 1.91%. The stock gained 2.5% today, but is down 2.4% so far this year.
Hero Moto’s profits beat estimates
- The two-wheeler major improved its revenue from operations by 39% to ₹8,686 crore, bettering the forecast of ₹8,416. Its profit after tax rose by an identical 39% YoY to ₹865 crore, beating street estimates of ₹799 crore.
- The company expects the auto industry to witness a recovery from Q2FY22 onward, on the expectation of a healthy monsoon and a rebound in the GDP growth. The stock closed 2% down today and has been consolidating since April.
Raymond rises on strong performance
- Textile major Raymond reported a consolidated net profit of ₹58 crore in Q4FY21, as compared to a net loss of ₹69 crore in Q4FY20. The improvement in performance was driven by a 26% reduction in operating expenses owing to cost-rationalisation measures.
- Meanwhile, revenue from operations grew 6.8% YoY to ₹1,356 crore. The textile segment, which contributed more than 50% of all revenues, witnessed revenue growth of 24% YoY to ₹722 crore. Further, the company pared debt of ₹167 crore in Q4. The stock closed 2.6% higher today, after rising nearly 7% intraday.
Tata Motors announces price hike
- Leading carmaker has announced that it will increase price of its passenger vehicles to partly offset the increase in the price of commodities such as steel and other metals.
- On an average, it will increase prices by 1.8% depending on the variant and model. In mid-April, Maruti had also increased prices of select car models. Meanwhile, the industry has a volatile demand outlook due to the ongoing second wave. Shares of Tata Motors closed flat today.
Closing bell
In line with most global international indices, Indian markets rose for yet another day. However, the Nifty50 closed near its opening, indicating indecisiveness after rising for three days in a row. Markets may get a clearer direction next week after the retail inflation figures are announced on Wednesday. The rise in the inflation figures during February and March show that inflationary pressures are building up.
Good to know
What does “Sell in May and go away” mean?
"Sell in May and go away" is a popular stock market saying based on the historical underperformance of some stocks between May and October. Investors who subscribe to this adage typically sell their equity holdings in May and invest again in November. The idea here is that trading volumes are usually low during the summer months due to lower market participation, as people tend to go on holidays during these months.
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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.