Sensex, Nifty End at Record Closing High; Tata Steel and Coal India Among Top Gainers
Closing

Indian share markets witnessed positive trading activity throughout the day today and ended higher.

Benchmark indices climbed off the record highs logged in the earlier deals in today's session.

At the closing bell, the BSE Sensex stood higher by 174 points (up 0.3%).

Meanwhile, the NSE Nifty closed higher by 62 points (up 0.4%).

Tata Steel and Coal India were among the top gainers today.

Larsen & Toubro and HDFC Life Insurance, on the other hand, were among the top losers today.

The SGX Nifty was trading at 15,820, up by 45 points, at the time of writing.

The BSE MidCap index and the BSE SmallCap index ended up by 0.1% and 0.4%, respectively.

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Sectoral indices ended on a mixed note with stocks in the metal sector, IT sector and energy sector witnessing most of the buying interest.

Realty stocks, on the other hand, witnessed selling pressure.

Shares of Polycab India and Minda Industries hit their respective 52-week highs today.

Asian stock markets ended on a mixed note today.

The Hang Seng ended up by 0.4%, while the Shanghai Composite ended the day down by 0.2%.

The Nikkei ended on a flat note today.

US stock futures are trading on a positive note today with the Dow Futures trading up by 50 points.

The rupee is trading at 73.07 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.1% at Rs 49,165 per 10 grams.

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani shares the best 'unlock' investments you can make in the market, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

In news from the steel sector, SAIL was among the top buzzing stocks today.

Shares of Steel Authority of India (SAIL) surged over 5% on the BSE in intra-day trade today after the company reported robust March quarter numbers.

SAIL reported a rise of 90.5% in profit after tax (PAT) from Rs 20.2 bn in the financial year 2020 to Rs 38.5 bn in 2021.

In the fourth quarter of 2021, the company reported PAT of Rs 34.4 bn against Rs 27.3 bn in the same quarter last year, a growth of 26.4%.

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For the full year 2021, The turnover of the company was at Rs 684.5 bn.

The company's revenue from operations jumped 17% year on year (YoY) to Rs 232.8 bn from Rs 161.7 bn posted in the same quarter year ago.

The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) was up by 22.8% during the year at Rs 137.4 bn against Rs 111.8 bn a year ago.

However, EBITDA for the quarter was at Rs 64.7 bn, down by 6.4%, against Rs 69.2 bn in the same period last year.

The EBITDA margin improved to 26.4% in the March quarter compared to Rs 25.6% posted in the December quarter.

In the case of profit before tax (PBT), in the financial year 2021, it surged by 117%, from Rs 31.7 bn in the last year to Rs 68.8 bn.

Soma Mondal, Chairman, SAIL said, 'The production performance and financial performance of the company have improved hand-in-hand during the year.'

She praised the team for their efforts to withstand and face the challenges posed by Covid-19.

Ms. Mondal added, 'The second half saw buoyancy in steel demand on the back of recovering economic activities.'

In line with its focus on reducing the borrowings, the company has reduced its net debt by Rs 161.3 bn to Rs 153.5 bn during the financial year.

SAIL share price ended the day up by 5.1% on the BSE.

Moving on to news from the realty sector...

Gayatri Projects Slips 18% After NHAI Declares Company as Non-Performer

Shares of Gayatri Projects plunged over 18% to Rs 31 per share on the BSE today after the National Highways Authority of India (NHAI) declared the company a non-performer and prohibited from participating in the ongoing and future bids for the road projects till defects and deficiencies in one of the company's projects were rectified.

On clarification on the recent NHAI announcement, Gayatri Projects informed the stock exchanges that NHAI officials had found some deficiencies in the Varanasi Sultanpur 4-laning project in UP, where Gayatri Projects is one of the contractors.

In a statement, the company said,

The above project was awarded in January 2016, out of the total 138 Km section, 4-laning has been completed for 129 Km, almost 93% of the project, this project has been beset by the continued delay in handing over of the land by NHAI.

In addition, the land handover has been done in bits and pieces, resulting in overall project delay.

Apart from pending land handover, certain works have been halted due to pending approvals and payments to be released by NHAI.

The company further said it requested for extension of completion time till October 2021 in anticipation of handing over of balance land and clearing of all pending approvals and payments.

How this pans out remains to be seen. Meanwhile, we will keep you updated on the latest news from this space.

Gayatri Projects share price ended the day down by 11.9% on the BSE.

Speaking of stocks, here is an illustration of the four phases that a stock goes through during its life cycle. The cycle repeats itself after the stock goes through all these for stages.


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This cycle defines everything in markets. If you can master this cycle, then nothing can stop you from making huge profits.

If you're interested to know how a stock's life cycle can offer you the opportunity to make money in every phase, you can read about it in one of the recent editions of Profit Hunter: One Cycle That Defines Everything in the Markets

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


Sensex Rises Over 100 Points, Dow Futures Trade Flat
12:30 pm

Share markets in India are presently trading marginally higher.

The BSE Sensex is trading up by 187 points, up 0.4% at 52,487 levels.

Meanwhile, the NSE Nifty is trading up by 36 points.

Bajaj Finance and Coal India are among the top gainers today. Adani Ports and SBI are among the top losers today.

The BSE Mid Cap index is trading down by 0.3%.

The BSE Small Cap index is trading up by 0.2%.

On the sectoral front, stocks from the software sector, are witnessing most of the buying interest.

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

US stock futures are trading mixed today.

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Nasdaq Futures are trading up by 8 points (up 0.1%) while Dow Futures are trading down by 7 points (flat).

The rupee is trading at 72.97 against the US$.

Gold prices are trading up by 0.3% at Rs 49,357 per 10 grams.

Gold prices in India continued to struggle for the sixth day in a row, moving in a very narrow range. On MCX, gold futures were up 0.2% at Rs 49,275 per 10 grams in early trade,

Note that gold has struggled in a narrow range after hitting a 5-month high of Rs 49,750 last week. In August last year, the precious metal had hit a record high of Rs 56,200.

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?

Moving on to stock specific news...

Among the buzzing stocks today is eClerx.

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Shares of eClerx Services were locked in 20% upper circuit on the BSE today after the company reported healthy March quarter numbers.

The company reported a 78.3% rise in net profit at Rs 987.5 m for the March 2021 quarter, which was largely on the back of an improvement in staff utilization.

Sales of the BPO firm rose 34.7% to Rs 4.7 bn against Rs 3.5 bn in the quarter ended March 2020.

As a result, the company's earnings before interest, taxes, depreciation and amortization (EBITDA) also increased by 55.9% to Rs 1.2 bn from Rs. 789.5 m in the March 2020 quarter.

eClerx is an Indian IT consulting and outsourcing multinational company based in Mumbai and Pune.

The company provides business process management, automation and analytics services to a number of Fortune 2000 enterprises, including some of the world's leading financial services, communications, retail, and technology companies.

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

At the time of writing, eClerx shares were trading up by 20% on the BSE.

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani shares the best 'unlock' investments you can make in the market, in his latest video for Fast Profits Daily.

Tune in here to find out more:

Moving on to news from the indian pharma sector...

Suven Pharma Shares Rally 6% After MoU for Covid-19 Drug

Suven Pharmaceuticals (SPL) rallied over 6% in early trade today after the company entered into a Memorandum of Understanding (MoU) with CSIR-Indian Institute of Chemical Technology, Hyderabad (CSIR-IICT) and CSIR-National Institute of Interdisciplinary Science & Technology, Thiruvananthapuram (NIIST).

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The MoU is for the process technology transfer and manufacture of anti-Covid 19 drugs Molnupiravir and 2-DG.

In a regulatory filing, the company said -

  • It is a related party transaction as one of our Independent Directors Dr. S Chandrasekhar is the Director of CSIR-IICT, Hyderabad. The agreements between the parties involve a total fee of Rs 8 lakh plus taxes for the grant of the licenses on a non-exclusive basis to SPL.

Molnupiravir, an antiviral drug, was initially developed for the treatment of influenza. It is repurposed to completely suppress the transmission of the Covid-19 virus within 24 hours, according to a recent study published in the journal Nature Microbiology.

The synthetic process know-how for Molnupiravir was sourced from CSIR-NIIST and the scale-up process was successfully carried out by CSIR-IICT.

The complete technology know-how will be transferred to Suven Pharmaceuticals, which will in turn manufacture and launch the drug in the domestic market as an effective medication for Covid-19 infected patients.

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

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


Sensex Opens 250 Points Higher; Coal India & Power Grid Top Gainers
09:30 am

Asian stock markets are trading on a mixed note today. The Hang Seng is up 0.5% while the Nikkei is trading on a flat note.

The Shanghai Composite is trading down by 0.3%.

In US stock markets, Wall Street indices closed at record high as inflation figures exceeded expectations.

The Dow Jones Industrial Average gained 19 points or 0.1% while the Nasdaq Composite rose 109 points or 1%.

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

Market participants will track shares of BEML, BHEL, and Cochin Shipyard as these companies are scheduled to announce their quarterly earnings today.

The BSE Sensex is trading up by 248 points. Meanwhile, the NSE Nifty is trading higher by 75 points.

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Power Grid is among the top gainers today. Tech Mahindra, on the other hand, is among the top losers today.

The BSE Mid Cap index and the BSE Small Cap index have opened higher by 0.4% and 0.9%, respectively.

All sectoral indices are trading in green with stocks in the metal sector and energy sector witnessing most of the buying interest.

Shares of Bajaj Finance and SKF India hit their 52-week highs today.

The rupee is trading at 72.93 against the US$.

Gold prices are trading up by 0.2% at Rs 49,280 per 10 grams.

Meanwhile, silver prices are trading up by 0.5% at Rs 72,332 per kg.

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani explains why the stock market fell the way it did on Wednesday, 9 June, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

In news from the infrastructure space, as much as Rs 3.5 tn worth of assets are likely to get monetised through InvITs (Infrastructure investment trust) and REITs (real estate investment trust) as a platform in next one year, rating firm ICRA said on Thursday.

Till date, assets worth Rs 2.1 tn have been floated through these platforms.

In the last two years, Rs 853 bn worth of InvITs have been monetised.

During the same period, all three REITs, valued at Rs 771 bn, were listed.

ICRA said that with InvITs and REITs now recognised as borrowers under the Sarfaesi Act, lenders to these trusts shall have adequate statutory enforcement options.

Earlier, the absence of this act was becoming a constraint for bankers to lend directly at trust level.

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Recently, the Insurance Regulatory and Development Authority of India (IRDAI) had allowed insurers to invest in debt instruments of InvITs and REITs rated AA and above as a part of their approved investments.

This shows growing comfort of lenders as well as investors.

Recently, Power Grid successfully raised Rs 77.4 bn via its InvIT IPO, which comprised a fresh issue of Rs 49.9 bn and an offer for sale (OFS) of Rs 27.4 bn by unit holders.

PowerGrid InvIT debuted at Rs 104 on the BSE as well as National Stock Exchange, a 4% premium over issue price of Rs 100 per unit.

Presently, it is trading at Rs 114.

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

Moving on to news from the power sector, NHPC is among the top buzzing stocks today.

State-owned hydro power giant NHPC on Thursday reported nearly 80% jump in its consolidated net profit to Rs 4.6 bn for the March 2021 quarter.

The company's consolidated net profit stood at Rs 2.6 bn in the same quarter last year.

Total income during January-March 2021 stood at Rs 20.9 bn, compared with Rs 23.8 bn in the year-ago period.

For the full financial year 2020-21, the company's consolidated net profit stood at Rs 35.8 bn as compared with Rs 33.4 bn in 2019-20.

The company's board of directors also recommended a final dividend of Rs 0.35 per equity share.

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This is in addition to the interim dividend of Rs 1.25 per equity share for 2020-21 paid in March 2021.

Moreover, the company's board also approved the proposal to raise debt up to Rs 43 bn during the financial year 2021-22.

NHPC share price has opened the day up by 1.1%.

Speaking of public sector undertakings (PSU), have a look at the chart below which shows the performance of BSE PSU index compared to BSE Sensex over the past few years.


As can be seen from the chart above, over the last decade, Rs 100 invested in BSE-PSU index would have eroded to Rs 80, compared to almost 3x gains for the Sensex.

Here's what Richa Agarwal, lead Smallcap Analyst at Equitymaster, wrote about PSU stocks in a recent edition of Profit Hunter:

  • However, it will be folly to paint all PSUs with the same brush. There are some exceptions in this space, which put their private peers to shame.

    In a recent editorial, I shared an opportunity in a PSU stock that is riding and enabling an irreversible megatrend - digitisation.

Richa's latest stock recommendation (subscription required) is a stock from this space. This smallcap PSU is leading the digitisation drive from the frontlines.

Richa believes it could be a perfect bet for these uncertain times. Hidden Treasure subscribers can read the recommendation here.

And if you're not a 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.


SGX Nifty Up 18 Points; Indicates Flat Opening for Indian Stock Markets
SGX Nifty

The SGX Nifty opened on a positive note today.

At 8:20 am, it was trading up by 18 points, or 0.1% higher at 15,790 levels.

Trends on SGX Nifty indicate a flat opening for Indian stock markets.

Asian stock markets are trading on a steady note today after US shares and Treasuries rallied as investors judged that a jump in inflation is likely to be transitory, leaving scope for ongoing central-bank support.

The Hang Seng is up 0.4% while the Nikkei is trading on a flat note today. The Shanghai Composite is trading down by 0.6%.

In US stock markets, Wall Street indices closed at record high as inflation figures exceeded expectations.

Treasury yields extended declines to the lowest since March as investors bet that the Federal Reserve will maintain its ultra-accommodative policies even after data showed consumer prices rose more than forecast last month.

The 10-year Treasury yield fell to as low as 1.44% after initially surge in the wake of the inflation report.

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The Dow Jones Industrial Average gained 19 points or 0.1% while the Nasdaq Composite rose 109 points or 1%.

US stock futures are trading on a flat note today with Dow Futures down by 7 points.

Gold prices hovered near the key US$ 1,900 per ounce level today, helped by a weaker dollar and US bond yields.

Here are the key events due later today:

  • UK - Manufacturing Production & Trade Balance - April
  • India - Industrial Production - April
  • USA - Michigan Consumer Sentiments - June

Back home, Accelya Kale Solutions and Reliance Power will be among the top buzzing stocks today.

In his latest video for Fast Profits Daily, India's #1 trader Vijay Bhambwani explains why the stock market fell the way it did on Wednesday, 9 June 2021.

You can watch the video here: Wednesday's Market Fall Explained

To know the top cues in today's stock market session, check out the pre-open commentary here.

Stay tuned for more updates on Indian stock markets in the upcoming commentary.


India's Retail Inflation, GAIL's March Quarter Performance, and Buzzing Stocks Today
Pre-Open

Indian share markets ended on a positive note yesterday tracking firm Asian peers, ahead of key US inflation data release.

At the closing bell yesterday, the BSE Sensex stood higher by 359 points (up 0.7%).

Meanwhile, the NSE Nifty closed higher by 102 points (up 0.7%).

Bajaj Finance and Bajaj Finserv were among the top gainers.

ITC and Bajaj Auto, on the other hand, were among the top losers.

The BSE MidCap index and the BSE SmallCap index ended up by 1.3% and 1.7%, respectively.

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

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Auto stocks, on the other hand, witnessed selling pressure.

At 8:10 am today, the SGX Nifty was trading up by 20 points, or 0.1% higher at 15,790 levels. Indian share markets are headed for a flat opening today following the positive trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading down by 0.5% at Rs 48,883 per 10 grams at the time of closing stock market hours yesterday.

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani explains why the stock market fell the way it did on Wednesday, 9 June, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

Top Stocks in Focus Today

Among the buzzing stocks today will be Accelya Kale Solutions.

Shares of Accelya Kale Solutions hit a 52-week high yesterday, bouncing back more than 20% from the day's low on the back of receiving a good response from non-retail investors for the offer for sale (OFS).

According to BSE data, the non-retail portion of Accelya OFS was subscribed fully or 102%, with cumulative bids of 2 m shares received against reserved 1.96 m shares.

Accelya announced an OFS of 2.2 m shares (14.6% of paid-up capital), with a floor price set at Rs 910 per share.

A total of 10% of the share sale has been reserved for retail investors.

The OFS opened for non-retail investors today and will open for retail investors on Friday.

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The unsubscribed portion of the sale shares reserved for retail investors shall be available for allocation to the investors in the non-retail category.

The OFS segment earlier allowed only promoter or promoter group entities of listed companies to act as 'sellers' to dilute/offload their holding to achieve a minimum public shareholding of 25%.

As of 31 March 2021, Accelya promoters, Accelya Holding World (74.7%) and Aurora Uk Bidco (14.6%), collectively held an 89.3% stake in the company.

Accelya is a leading global provider of technology platforms, software and services to the travel and transport industry.

Reliance Power share price will also be in focus today.

Anil Ambani-promoted power generating company Reliance Power would seek the board's nod in the upcoming meeting for raising funds through issuance of equity or equity linked instruments.

The meeting is scheduled for 13 June 2021.

The fund raising comes after Reliance Infrastructure's board of directors approved fundraising of Rs 5.5 bn through issuance of equity and related instruments on Sunday.

The company said the funds would be utilised in reducing debt and for future growth.

Reliance Power has operational projects to the tune of 6,000 MW which includes the 3,960 MW Sasan ultra mega power project (UMPP) in Madhya Pradesh.

The company in a public statement while declaring its annual results for said, it has brought down its debt by Rs 31.1 bn during the fiscal.

As on 31 March 2021, the current liabilities of the company including borrowing and financial liabilities stood at Rs 159.3 bn, whereas its total assets amounted to Rs 48.7 bn.

The company reported a net profit of Rs 2.3 bn during 2020-21 against a loss of Rs 40.8 bn in the year before.

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Retail Inflation in India Likely Rebounded to 5.3% in May

India's retail inflation likely rose last month after a three-month low in April, lifted by higher food and energy prices, but stayed within the Reserve Bank of India's (RBI) target range for the sixth consecutive month, a Reuters poll found.

Kunal Kundu, India economist at Societe Generale, said,

  • In April, the retail prices of petroleum products were kept unchanged because of multiple state elections being held, despite rising crude prices.

    But immediately thereafter, the retail prices were increased about seven times in May itself, which led to substantial shooting up of this inflation component.

The June poll of 40 economists showed that consumer price inflation rose to 5.3% in May from a year ago, after dipping to a three-month low of 4.3% in April. If realised, inflation will have held within the RBI's 2-6% comfort range for the sixth month in a row.

While there were fewer supply chain disruptions during the recent pandemic lockdowns compared with last year, a general rise in inflation globally has elevated domestic price pressures.

Inflation was forecast to average 5% this fiscal year, according to a Reuters poll of economists late last month. That was similar to the RBI's estimated average of 5.1%, at its June meeting. Inflation holding within the target range will likely help the RBI to focus its policies more towards the economy, which has taken a hit from a second coronavirus wave.

Even before that wave struck, India's economy expanded just 1.6% in the March quarter from a year ago. For this fiscal year, predictions for growth have been repeatedly downgraded by economists and major institutions in recent weeks.

GAIL Reports 28% Jump in Profit for the March Quarter

GAIL (India) reported a quarterly profit of Rs 19.1 bn, which was down from Rs 30.2 bn reported in the same period last year.

Revenue stood at Rs 155.5 bn, while EBITDA (earnings with interest, taxes, depreciation, and amortisation) was Rs 24.7 bn.

However, on a sequential basis, net profit of the company rose 28%.

For the full financial year 2020-21, GAIL clocked a net profit of Rs 48.9 bn.

Revenues for full fiscal year stood at Rs 567.4 bn compared to Rs 732.9 bn.

GAIL's petrochemical business showed better performance with more than 100% capacity utilisation.

The petrochemicals marketing revenue rose 14.5%, while natural gas revenues rose 0.7%, over the previous quarter.

During the quarter, the company bought back 69.8 m fully paid-up equity shares of Rs 10 each for Rs 10.5 bn (excluding taxes) at Rs 150 per equity share.

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

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