Sensex, Nifty Snap 4-Day Winning Streak; JSW Steel and Hindalco Among Top Losers
Closing

Indian share markets witnessed selling pressure throughout the day today and ended lower.

Benchmark indices ended the day nearly 1% lower, tracking weakness in global markets and dragged primarily by finance and banking stocks.

At the closing bell, the BSE Sensex stood lower by 341 points (down 0.7%).

Meanwhile, the NSE Nifty closed lower by 92 points (down 0.6%).

Coal India and NTPC were among the top gainers today.

JSW Steel and Hindalco, on the other hand, were among the top losers today.

The SGX Nifty was trading at 14,865, down by 124 points, at the time of writing.

The BSE Mid Cap index and the BSE Small Cap index ended up by 0.6% and 0.8%, respectively.

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Sectoral indices ended on a mixed note with stocks in the banking sector, finance sector and metal sector witnessing most of the selling pressure.

Oil & gas stocks, on the other hand, witnessed buying interest.

Shares of Grindwell Norton and Dalmia Bharat hit their respective 52-week highs today.

Coforge and InterGlobe Aviation were among the top buzzing stocks today.

Asian stock markets ended on a negative note today as demand resurgence collided with strained supply of basic materials, helping to fuel inflation worries.

The Hang Seng ended the day down by 2%, while the Shanghai Composite ended the day up by 0.4%. The Nikkei ended down by 3.1% in today's session.

US stock futures are trading on a negative note today with the Dow Futures trading down by 173 points.

The rupee is trading at 73.34 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.1% at Rs 47,882 per 10 grams.

Speaking of stock markets, in his latest video for Fast Profits Daily, Brijesh Bhatia talks about the worst sector in the stock market according to the charts.

The stock market seems to be going up almost every day. Every trader is interested in finding out the best stocks and sectors.

In the video below, Brijesh tells you which sector you should avoid in this market. Tune in to find out more:

JMC Projects Q4 Results: Reports Substantial Rise in Net Profit

In news from the engineering sector, JMC Projects was among the top buzzing stocks today.

JMC Projects posted a consolidated net profit of Rs 414.4 million for the January-March quarter driven by higher revenues.

The company had reported a consolidated net loss of Rs 547.6 million in the quarter ended on 31 March 2020.

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Total income of the company rose to Rs 14 billion in the quarter from Rs 9.8 billion in the same period a year ago.

The consolidated net loss of the company is Rs 262 million in 2020-21 against a profit of Rs 12 million in 2019-20. Total income of the company in 2020-21 is Rs 38.7 billion compared to Rs 38.9 billion in 2019-20.

The board also approved a dividend of Rs 0.7 (35%) per equity of with face value of Rs 2 each for 2020-21 subject to approval of members at the ensuing annual general meeting.

The company's board also elevated Shailendra Kumar Tripathi from the position of CEO and Deputy Managing Director to the position of CEO and Managing Director of the company and approved changes in his present terms of appointment with immediate effect for his remaining tenure with the company.

JMC is engaged in civil and structural construction work of industrial power projects, pharmaceutical projects, corporate houses institutional & residential projects and infrastructure projects working across India.

JMC Projects share price ended the day down by 1.7% on the BSE.

Moving on to news from the power sector...

JSW Energy-Led Subsidiary JSW Hydro Energy Approves Issuance of Bonds

JSW Energy announced that its subsidiary, JSW Hydro Energy will be issuing US$ denominated senior secured notes aggregating to US$ 707 million.

The notes will be listed on the Singapore Exchange Securities Trading. The deemed date of allotment is 18 May 2021 and the maturity date is 18 May 2031.

The proceeds of the issue will be used for repayment of existing green project-related rupee-denominated indebtedness.

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Notes will bear interest from (and including) 18 May 2021 to (but excluding) 18 May 2031 at the rate of 4.1% per annum, payable semi-annually in arear on May 18 and November 18 in each year. The first payment will be made on 18 November 2021.

Prashant Jain, Chairman of JSW Hydro, and joint Managing Director and CEO of JSW Energy said, "We are overwhelmed by the strong response from international bond investors in our debut issuance. We are pleased that global investors have understood and appreciated our unique credit story.

This fundraise will enable us to further strengthen and diversify our sources of funding and we look forward to strengthening our partnership with global investors as we continue to build and grow our renewable energy business.

From a total installed capacity of about 4.6 GW today, where about 30% is from renewable sources, we currently have visibility on a pipeline of about 2.6 GW of renewable projects comprising of wind, solar and hydro which are likely to get commissioned over the next 24 - 30 months. On completion of these projects, the share of renewables in our portfolio will be over 55%."

JSW Hydro Energy is engaged with several investors on a global deal roadshow across Hong Kong, Singapore, London, New York and Los Angeles.

Backed by extremely strong investor feedback, the transaction was launched with initial price guidance of 4.5% area and tightened by 37.5 basis points (bps) to 4.1% as final pricing.

JSW Energy share price ended the day up by 1.4% on the BSE.

Speaking of the power sector, it's interesting to note the power exchanged in India is about 4.5% of the overall power production, as can be seen in the chart below.

As per Tanushree Banerjee, Co-Head of Research at Equitymaster, India's power sector is currently in transition. It's driven by increasing reliance on short-term contracts and electricity spot markets.

This transition to the short-term market is happening due to quickly evolving industry dynamics.

Tanushree believes the Indian power sector will see a surge in spot power volumes due to certain factors.

In August 2020, Tanushree recommended a high-quality stock from this space. Subscribers can read the report here (requires subscription).

And if you are not a StockSelect subscriber, here's where you can sign up.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Trades Over 200 Points Lower, Dow Futures Down by 59 Points
12:30 pm

Share markets in India are presently trading on a negative note.

The BSE Sensex is trading down by 240 points, down 0.5% at 49,262 levels.

Meanwhile, the NSE Nifty is trading down by 52 points.

Coal India and Indian Oil Corporation are among the top gainers today. HDFC and Kotak Bank are among the top losers today.

The BSE Mid Cap index is trading up by 0.7%.

The BSE Small Cap index is trading up by 1.1%.

On the sectoral front, stocks from the oil & gas sector, are witnessing most of the buying interest.

On the other hand, stocks from the software sector, are witnessing most of the selling pressure.

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US stock futures are trading lower today, indicating a negative opening for Wall Street

Nasdaq Futures are trading down by 90 points (down 0.7%) while Dow Futures are trading down by 59 points (down 0.2%)

The rupee is trading at 73.43 against the US$.

Gold prices are trading down by 0.2% at Rs 47,855 per 10 grams.

Gold prices were trading flat in domestic markets in early trade today following a muted trend in international spot prices amid a rise in the dollar index. On the Multi-Commodity Exchange (MCX), June gold contracts were trading flat at Rs 47,946 for 10 grams.

Note that a rise in the dollar index makes gold more expensive for other currency holders. The US currency slipped to a more than two-month low in the previous session after US non-farm payroll data on 7 May showed that jobs growth unexpectedly slowed in April.

Speaking of the precious yellow metal, how lucrative has gold been as a long-term investment in India?

The chart below shows the annual returns on gold over the last 15 years...

As you can see, barring just two years - 2013 and 2015, gold has delivered positive returns in 13 of the last 15 years.

The recent price volatility in the bullion market has rattled many traders. Even with the recent volatility in prices, gold remains among the best performing commodities this year to combat the fallout from the coronavirus pandemic.

To know more about gold, check out our article on how to invest in gold here: How to Invest in Gold?

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Moving on to stock specific news...

Among the buzzing stocks today is HSIL.

Shares of sanitary-ware and packaging products maker HSIL surged over 9% in early trade today after the company reported a multi-fold jump in its net profit for the quarter ended March 2021.

The company's net profit jumped to Rs 330 m in Q4FY21 from Rs 33.8 m in the same period a year ago. Revenue from operations of the company during the quarter also rose 37.4% year-on-year (YoY) to Rs 6.3 bn from Rs 4.6 bn in Q4FY20.

During the quarter, the company delivered an EBITDA (earnings before interest, depreciation and amortisation) of Rs 1 bn, registering a growth of 65.5%YoY. EBITDA margins also improved to 15.9% in Q4FY21 from 13.1% in Q4FY20.

"The Packaging Products Division witnessed increased demand for glass bottles from multiple user segments thereby driving better volumes. The EBIT margins improved significantly from 11.2% in Q4FY20 to 17.9% in Q4FY21. The margins were driven by better product mix and higher operational efficiencies at the plants resulting in lower fuel and power costs per unit," the company said in a regulatory filing.

For the year FY21, the company's net profit was up 81.8% at Rs 880 m from Rs 484.2 m in the previous year.

"During the year, we focused on our costs and efficiencies to deliver a robust performance on a quarter-on-quarter basis. The improvement in margins over the last year clearly demonstrates our abilities to work and deliver under uncertain times," said Sandip Somany, Vice-Chairman and Managing Director, HSIL.

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We will keep you posted on updates from this space. Stay tuned.

At the time of writing, shares of HSIL were trading up by 13.7% on the BSE.

Speaking of stock markets, Brijesh Bhatia, Research Analyst at Fast Profits Report, shares his secret to find breakthrough stocks, in one of his latest videos for Fast Profits Daily.

Tune in here to find out more:

In news from the airline sector...

Interglobe Aviation to Raise Rs 30 bn via QIP

InterGlobe Aviation, parent of the country's largest airline IndiGo, on 11 May 2021, said its board has approved raising up to Rs 30 bn through sale of shares to institutional investors.

The fund raising plan of the company comes at a time when the airline industry is facing significant headwinds due to the coronavirus pandemic that has resulted in falling passenger demand and low occupancy in flights.

This will be done through issuance of equity shares by way of a Qualified Institutional Placement (QIP).

The Gurugram-based airline had reported a net loss of Rs 6.2 bn, its fourth consecutive quarterly loss, in the three months ended December 2020. The company is yet to announce its earnings for the March 2021 quarter as well as for the fiscal year 2021.

While the airline industry was slowly on the recovery path, the second wave of the coronavirus pandemic has hit the sector hard.

How this fundraising pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Falls 400 Points on Weak Global Cues; Kotak Mahindra Bank & HDFC Top Losers
09:30 am

Asian share markets dropped in early trade today as demand resurgence collided with strained supply of basic materials, helping to fuel inflation worries.

The Hang Seng plunged 2.3% while the Nikkei is trading down by 2.9%. The Shanghai Composite is down 0.3%.

In overnight trade, US stock markets fell from a record high as worries about accelerating inflation dragged on shares and hobbled the dollar that struggled at a 10-week low.

The S&P 500 index plunged 44 points, or 1% to 4,188.43. The Dow Jones Industrial Average retreated 35 points or 0.1% to 34,743, while the tech-heavy Nasdaq dived 350 points or 2.6% to 13,402.

Back home, Indian share markets have opened on a negative note, following the trend on SGX Nifty.

Market participants will track shares of Godrej Consumer, Neuland Labs, BASF India, Siemens, Aarti Industries, Linde India, and Granules India as these are among companies that will announce their March quarter results today.

Investors will also keep an eye on the results of the MSCI May 2021 semi-annual index review, which is set to be released later in the day.

The BSE Sensex is trading down by 412 points. Meanwhile, the NSE Nifty is trading lower by 124 points.

Sun Pharma is among the top gainers today. Kotak Mahindra Bank, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened down by 0.1%. The BSE Small Cap index is trading up by 0.2%.

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Sectoral indices are trading on a mixed note with stocks in the metal sector and finance sector witnessing most of the selling pressure.

Healthcare stocks, on the other hand, are trading in green.

Shares of Trident and Reliance Power hit their 52-week high today.

The rupee is trading at 73.50 against the US$.

Gold prices are trading up by 0.1% at Rs 47,970 per 10 grams.

Speaking of stock markets, in his latest video for Fast Profits Daily, Brijesh Bhatia talks about the worst sector in the stock market according to the charts.

The stock market seems to be going up almost every day. Every trader is interested in finding out the best stocks and sectors.

In the video below, Brijesh tells you which sector you should avoid in this market. Tune in to find out more:

In news from the insurance sector, the gross direct premium written by non-life insurance companies rose by over 22% in April this year to Rs 173.1 billion, as per regulatory data.

All the 33 insurance companies in the non-life segment had generated gross written premium of Rs 141.7 billion in the same month of 2020.

Of these, the 25 players which are categorised as general insurers registered nearly 20% increase in their collective gross premium at Rs 159.5 billion in April 2021, as against Rs 133.3 billion in year-ago same period, data from Insurance Regulatory and Development Authority (IRDAI) showed.

The five standalone health insurance providers witnessed more than 43% jump in gross premium at Rs 12.6 billion as against Rs 8.1 billion.

In other news, former Chairman on IRDAI Subhash Chandra Khuntia said that insurers need to focus not only on insuring risks, but also on prevention of risks so that the policyholders derive benefits from not just settlement of claims, but also from prevention of loss.

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Khuntia's term as IRDAI chairman ended on May 6. He held the office for three years, from May 2018 to May 2021.

In his final letter to the heads of the insurance companies, uploaded on the website of IRDAI, Khuntia said that despite challenges faced by the economy due to the coronavirus pandemic, the Indian insurance industry had been able to grow at a healthy pace of 9.2% in 2020-21 with the life insurance industry growing at 11.2%.

"Insurance inclusiveness is another area that all of us need to concentrate on so as to cater to the rural population, farmers, women, MSME, the poor, and the marginalised. We need to develop cost-effective microinsurance models for the same," Khuntia said.

In the letter, he also said that Indian insurance sector is presently on the cusp of a transformation.

We will keep you updated on the latest developments from this space. Stay tuned.

Speaking of the insurance sector, have a look at the chart below which shows the investment assets of non-life insurers and life insurers over the past 10 years:

Investment Assets of Non-Life Insurers 11x That of Life Insurers

As per Tanushree Banerjee, Co-Head of Research at Equitymaster, the above chart is enough proof of how big an earning opportunity is the zero-cost float to the non-life insurers. Their investment assets under management is nearly 11 times that of life insurers.

Tanushree recently recommended a high-quality stock from this space. Subscribers can read the report here (requires subscription).

And if you are not a StockSelect subscriber, here's where you can sign up.

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Moving on to news banking sector, Punjab National Bank (PNB) is among the top buzzing stocks today.

State-owned PNB on Monday launched a so-called qualified institutional placement (QIP) offer to raise as much as Rs 18 billion from institutional investors.

The bank said that its board has approved issuance of shares to investors at a floor price of Rs 35.51 per share in the QIP offering.

As per reports, the base size of the share sale is Rs 12 billion with the option to upsize to Rs 18 billion, depending on the demand.

At the base size the fundraise will result in a dilution of 3.4%, while at the upper end it will be a dilution of 5.1%.

Note that this is the second time the state-owned bank has hit the market to raise funds from institutional investors in the last six months, having raised Rs 37.9 billion in December through a QIP.

The funds raised will be used to grow the bank's loan book.

Investment banks ICICI Securities, Axis Capital, Edelweiss Financial Services, among others, are advising the lender on the share sale.

PNB share price has opened the day down by 5%.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


SGX Nifty Down 219 Points, Maruti Extends Production Shutdown, Avenue Supermarts Q4 Results, and Buzzing Stocks Today
Pre-Open

Indian share markets ended higher yesterday.

At the closing bell yesterday, the BSE Sensex stood higher by 296 points (up 0.6%).

Meanwhile, the NSE Nifty closed higher by 119 points (up 0.8%).

Coal India and UPL were among the top gainers.

Shree Cements and Britannia, on the other hand, were among the top losers.

Both, the BSE Mid Cap index and the BSE Small Cap index ended up by 0.9%.

Sectoral indices ended on a positive note with stocks in the metal sector, healthcare sector and capital goods sector witnessing most of the buying interest.

Glenmark Pharma and Tata Steel hit their respective 52-week highs.

At 8:00 am today, the SGX Nifty was trading down by 219 points, or 1.5% lower at 14,770 levels. Indian share markets are headed for a negative opening today following the negative trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading up by 0.4% at Rs 47,930 per 10 grams at the time of closing stock market hours yesterday.

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Speaking of gold, in one of his videos for Fast Profits Daily, Brijesh Bhatia talks about gold and silver. He talks about which asset would be the better choice from a short-term trader's point of view.

At Equitymaster, we have been bullish on gold and silver as investments for a long time now. But what about trading?

Brijesh answers this question by analyzing both assets separately and together, in three charts.

Tune in to the video below to find out more:

Top Stocks in Focus Today

Among the buzzing stocks today will be Ajanta Pharma.

Drugmaker Ajanta Pharma has lined up a capex plan of Rs 2.5 bn for the current fiscal as it looks to expand its corporate office and production facilities.

The Mumbai-based drug maker operates eight manufacturing facilities in India and Mauritius, including two plants that have been approved by the US Food and Drug Administration (USFDA).

"During the current year (FY22), we are estimating the capex to be in the vicinity of Rs 2.5 bn. It will largely go towards maintenance and some new expansions for the corporate office and some key expansions in the facility," Ajanta Pharma Managing Director Yogesh Agrawal said in an analyst call.

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The company had earmarked a capex plan of Rs 1.5 bn for FY20.

Consumer goods giant Hindustan Unilever (HUL) share price will be in focus as the company said it will provide 4,000 oxygen concentrators to India to help meet the medical oxygen requirement of home-bound patients and hospitals amid the devastating second wave of Covid-19.

The company, which will be putting in Rs 300 million in this initiative, has partnered with KVN Foundation and home healthcare company Portea Medical to put them to use.

Portea will have access to 3,000 concentrators, which will be provided free of charge to patients.

The remaining will be donated by HUL to hospitals at some 20 locations across the country, the company said in a statement.

Note that India is facing severe shortage of oxygen cylinders and concentrators in the grip of a deadly second wave of Covid-19. Most hospitals are working over capacity and are having to turn back patients due to shortage of beds and oxygen.

Avenue Supermarts Q4 Profit Jumps 53%

Avenue Supermarts, which owns the hyper-retail chain DMart, reported a 53% year-on-year (YoY) jump in its consolidated net profit at Rs 4.1 bn for the March quarter (Q4FY21).

The chain of hypermarkets had reported a net profit of Rs 2.7 bn in the corresponding quarter of last year.

Total revenue for the quarter stood at Rs 74.1 bn, as compared to Rs 62.6 bn in the same period last year.

Earnings before interest, tax, depreciation and amortization (EBITDA) in Q4FY21 stood at Rs 6.1 bn, as compared to Rs 4.2 bn in the corresponding quarter of last year.

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Total expenses were reported at Rs 69.2 bn, up 16.1% YoY.

For the financial year ended 31 March 2021, the company reported a 13.7% YoY decline in net profit at Rs 11.7 bn, hit by the coronavirus pandemic.

While total revenue declined 3.6% to Rs 237.9 bn, EBITDA also fell 17.9% to Rs 17.4 bn in FY21.

After losing significant revenue in the first half of FY21, the company ended the fiscal with a 3.6% revenue de-growth.

Capital work in progress stood at Rs 10.2 bn against Rs 3.6 bn which means a stronger store addition pipeline.

The company had a healthy balance sheet with cash and equivalents of around Rs 26 bn.

To know more, you can check our in-depth coverage on the Avenue Supermarts Q4 performance here.

Maruti Suzuki Extends Production Shutdown

India's largest car manufacturer Maruti Suzuki has decided to keep its production facilities suspended for another week. The shutdown, which was announced as the country battled against the rising number of cases during the second wave of Covid-19, was to end on Monday (9 May), according to Maruti's original plan.

Maruti Suzuki has not given any reason behind the decision to extend the shutdown at its facilities. However, given that Haryana remains one of the worst-affected states due to the virus, Maruti would put the safety of its own workers as a priority before resuming operations.

Maruti has termed this shutdown as 'planned maintenance' like some of the other carmakers in the last few days.

The company had earlier announced that it will stop producing cars in the company's plants in Haryana for the first nine days of the month to make oxygen available for the healthcare and medical sector. The carmaker said that it uses a small amount of oxygen in its factories which can be channelized to address the oxygen crisis in the Delhi-NCR region.

Besides, it also said that the manufacturers of components use a much larger quantity of oxygen at their plants.

Maruti Suzuki also fears that demand for its cars may go down due to the ongoing Covid-19 restrictions across the country. Earlier this month, the company had reported that its production had shrunk by at least 7% in April, compared to March 2021. It manufactured 159,955 units against 172,433 units it produced a year ago.

RC Bhargava, Chairman of Maruti Suzuki India, recently said in an interview that the carmaker may think about reducing production capacity under the current circumstances. He had said that the problem is on the "sales side because in several states there is a partial lockdown and there's a curfew in some states and the dealers who sell the cars are having to close down."

The ongoing Covid-19 crisis seems to be pushing the auto industry back after it began recovering from the slowdown last year due to strict lockdown for months.

And the Indian auto sector is now bracing for further fallout from the recent surge in cases.

We will keep you posted on updates from this space. Stay tuned.

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.