AMC Stock – Stock Market Live Updates: Sensex jumps 700 points, Nifty around 15,100; metals, banks lead
Here are key factors behind surge in Adani Enterprises’ share price
Adani Enterprises’ stock price gained around 5 percent in Monday’s trading session. Recently, it had hit a new 52-week high around Rs 1,330 per share and from there it corrected nearly 10 percent in a matter of a couple of days. Yesterday, however, Adani Enterprises’ share price took support around its 20-day moving average (DMA) and from there it bounced a bit and now trades comfortably above the 20 DMA as well as the 50 DMA. The delivery, yesterday, on the National Stock Exchange (NSE) was encouraging and close to 15 lakh shares were delivered in trade compared to the 10-day average of a little below 10 lakh shares, which is close to around 50 percent higher.
Anand Rathi on Federal Bank
Stable margins, lower Treasury income and higher opex led to an ~8% y/y sequential decline in Federal Bank’s Q4 operating profits. However, lower provisions during the quarter led to a strong ~50%+ y/y increase in earnings. With lower formation of stress than earlier envisaged, recoveries in earnings would be better. Given the bank’s strong liability franchise, coverage and capitalisation, it is well placed to withstand Covid-related stress in the near term. We maintain our positive view on the bank with a target of Rs 96, valuing it at 0.9x P/ABV on its FY22e book.
Should you buy, sell or hold Colgate-Palmolive after Q4 earnings?
FMCG major Colgate-Palmolive India posted a 54.1 percent growth in its net profit at Rs 314.6 crore for the quarter ended March 31, 2021, helped by higher sales. The company had posted a net profit of Rs 204.15 crore in the January-March quarter a year ago. The company’s net sales in Q4FY21 rose by 20.2 percent to Rs 1,275.01 crore as against Rs 1,062.35 crore in the year-ago period. “Colgate’s 4Q result was better than expectations, aided by a strong recovery across its portfolio and peak quarterly operating margin delivery. A focused approach to expand category, drive premiumisation, and strengthen go-to-market has been working well and is likely to help accelerate top-line growth,” global brokerage CLSA said. The brokerage maintains an Outperform rating and raised its March 2022 target price to Rs 1,825 per share from Rs 1,800 per share. More here
Market Watch: Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Nifty successfully got past the resistance block of 14850 yesterday and we see a gap up today! We can attempt 15200 on the index. The trend is bullish and dips can be utilized to buy into the index. Good support lies at 14700 and until this does not break on a closing basis, the trend of the market will continue to be strong.
Aditya Birla Capital files DRHP for AMC business IPO
Ajay Srinivasan, CEO of Aditya Birla Capital on Monday said that the company has filed a draft red herring prospectus (DRHP) for the AMC business initial public offering (IPO) and listing via OFS is on the anvil. “We have filed the DRHP for our asset management company. It is an offer for sale (OFS) that will lead to the listing of the asset management company (AMC). So that is the first step in value unlocking that we spoke about last time,” he said in an interview with CNBC-TV18. “The board will constantly look at different opportunities and avenues to be able to unlock value and we have decided that the AMC opportunity is a great place to do that,” he explained. More here
Bitcoin posts record weekly outflows as gains stall: CoinShares data
Bitcoin hit record outflows last week, as investors diversified into cryptocurrency assets with new developments in their specific network such as ethereum, data from digital currency manager CoinShares showed on Monday. Outflows for bitcoin products and funds totaled $98 million, or 0.2 percent of total assets under management. For the year, total bitcoin inflows amounted to USD 4.3 billion. In 2020, investors pumped $15.6 billion into bitcoin products and funds, while ethereum inflows reached nearly USD 2.5 billion, data showed. Since hitting a record just under $65,000 in mid-April, bitcoin’s price has fallen 35 percent. Bitcoin was down 5.2 percent at $44,073, driven by tweets from Tesla Inc. chief Elon Musk. More here
Market Watch: Dipan Mehta, Director of Elixir Equities
On Bharti Airtel
It is a big disappointment from our perspective. Unless the industry goes in for increase in tariffs, this sector will continue to underperform. So I would be a bit cautious in Bharti Airtel and maybe just put it on the watch list for the next few weeks or months or so.
SBI and a lot of other PSU bank numbers which we have seen so far have been exemplary and the trend that we are seeing in the banking industry of significantly lower credit cost and provisioning will be evident in SBI as well. So very positive on SBI and I think a lot of pre-result buying is taking place in SBI. You could have minor disappointment but the long-term momentum is great for SBI.
Here’s why Bharti Airtel shares declined in a strong market
Shares of Airtel fell over 2 percent in an otherwise strong market after the telecom major’s March quarter earnings missed analyst expectations. The telco reported a consolidated net profit of Rs 759 crore in Q4 as against a loss of Rs 5,237 crore in the same period a year ago. A CNBC-TV18 analyst poll had predicted the reading at Rs 1,180 crore. It was the only stock in the red on both frontline indices. It fell as much as 2.2 percent to day’s low of Rs 537.10 per share. The consolidated revenue increased 11.9 percent to Rs 25,747 crore during the reported quarter compared to Rs 23,019 crore in the corresponding quarter of 2019-20.
Morning market quote from V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
“The positive trigger for the market now is the steadily declining fresh Covid cases and the steadily rising recovery rates. The latest numbers (2.62 lakh fresh cases & 4.22 lakh recoveries) indicate a continuation of this positive trend. The market is discounting progressive lifting of the widespread lockdowns starting in early June. Even though growth & earnings will be impacted in Q1, smart recovery can be expected in the subsequent quarters. Sectoral rotation & value buying is pushing up financials particularly banking stocks. The latest trends indicate that the stress in the banking system is not as bad as feared earlier. With progressive unlocking of the economy, credit growth is likely to pick up starting June improving the prospects for frontline financials. Market action is likely to be stock specific in the coming days with the market responding to Q4 numbers & likely trends”
Opening Bell: Sensex opens over 550 points higher, Nifty reclaims 15,000; metals, banks lead
Indian indices opened higher on Tuesday, tracking gains in Asian peers and US Futures. Broad-based buying was seen across sectors with metals, banks and auto indices boosting the most. At 9:18 am, the Sensex was up 567 points at 50,148 while the Nifty rose 152 points to 15,075. Broader markets were also inline benchmark indices with the midcap and smallcap indices up over a percent each. On the Nifty50 index, Bharti Airtel was the only stock in the red post its March quarter earnings while Hindalco, Tata Steel, JSW Steel, Tata Motors and Axis Bank were the top gainers.
Bharti Airtel Q4FY21: Net profit at Rs 759 crore misses street estimates
Telecom operator Bharti Airtel on Monday reported a consolidated net profit of Rs 759 crore for the January-March quarter of 2020-21 financial year. The company had posted a loss of Rs 5,237 crore in the same period a year ago and Rs 856 crore in the third quarter. A CNBC-TV18 analyst poll had predicted the reading at Rs 1,180 crore. The consolidated revenue of Bharti Airtel increased by 11.9 percent to Rs 25,747 crore during the reported quarter compared to Rs 23,019 crore in the corresponding quarter of 2019-20 and Rs 26,517.8 crore in the previous quarter. The CNBC-TV18 analyst poll had predicted the reading at Rs 26,200 crore. For the year ended March 31, 2021, Bharti Airtel narrowed the loss to Rs 15,084 crore from Rs 32,183 crore in 2019-20. More here
Adar Poonawalla exits Panacea Biotec; sells entire stake for Rs 118 cr
Serum Institute of India CEO Adar Poonawalla on Monday offloaded his entire stake in Panacea Biotec amounting to 5.15 percent shareholding of the firm for Rs 118 crore, through an open market transaction. The shares were picked by the Serum Institute of India (SII). As per BSE block deal data, Poonawalla sold 31,57,034 scrips he held in the firm at a price of Rs 373.85 per share, taking the total deal value to Rs 118.02 crore. The shares were picked by SII at the same price, through a separate transaction.
Petrol prices cross Rs 99-mark in Mumbai, diesel stands at Rs 90.71 per litre
Petrol and diesel prices on Tuesday touched a record high across the country after oil marketing companies (OMCs) hiked rates for 10th time this month. Petrol price was raised by 23-27 paise a litre and diesel by 27-31 per litre across the major cities of the country. Accordingly, the price of petrol and diesel increased to Rs 92.85 and Rs 83.51 per litre in the national capital, as per Indian Oil Corporation, the country’s largest fuel retailer. In Mumbai, the petrol price changed to Rs 99.14 per litre on Tuesday. The cost of diesel advanced to Rs 90.71 a litre.
Gold prices at 3-1/2-month high on weaker dollar, inflation anxiety
Gold prices on Tuesday rose to their highest in more than three months as a weaker US dollar and growing inflationary pressure lifted bullion’s appeal as an inflation hedge.
* Spot gold was up 0.2 percent at $1,868.89 per ounce by 0101 GMT, after hitting its highest since Feb. 1 in early Asian trade.
* US gold futures rose 0.1 percent to $1,869.40 per ounce.
* The dollar teetered near multi-month lows against European currencies. A weaker greenback makes gold more appealing for other currency holders.
* Recent economic readings out of the United States have sparked concerns over rising inflation and raised bets over an earlier-than-expected Federal Reserve rate hike.
Asian indices trade with gains early on. Taiwan bounces back following a 3% loss on Monday amid COVID fears
— CNBC-TV18 (@CNBCTV18Live) May 18, 2021
First up, here is quick catchup of what happened in the markets on Monday
Indian indices surged over 1.5 percent on Monday boosted by banking and financial stocks, as they rebounded from a sharp drop in the previous session. The Nifty Bank and Nifty Fin Services indices soared 3-4 percent during the day lifting the benchmarks. The Sensex ended 848 points higher at 49,581 while the Nifty rose 245 points to settle at 14,923. The market sentiment further improved after domestic coronavirus cases fell below the 300,000-mark for the first time since April 21. On the Nifty50 index, IndusInd Bank, SBI, ICICI Bank, HDFC Bank, and Axis Bank were the top gainers while Cipla, L&T, Bharti Airtel, SBI Life and Nestle led the losses.
Welcome to CNBC-TV18’s Market Live Blog
Good morning, readers! I am Pranati Deva from the market’s desk of CNBC-TV18. Welcome to our market blog, where we provide rolling live news coverage of the latest events in the stock market, business and economy. We will also get you instant reactions and guests from our stellar lineup of TV guests and in-house editors, researchers, and reporters. If you are an investor, here is wishing you a great trading day. Good luck!