EQUITIES

Share Market Highlights: Sensex, Nifty end higher in volatile trade; RIL, HUL, Infosys among top index contributors

Sensex, Nifty

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic equity market benchmarks BSE Sensex and Nifty 50 ended Friday’s volatile session with gains. The 30-share Sensex advanced 200 points or 0.63 per cent to end at 31,642, while the broader Nifty 50 gained 53 points or 0.57 per cent to settle just above its crucial 9,250-mark, at 9,251. Out of 30 Sensex stocks, 16 scrips finished trade in red with NTPC as top laggard, down 4 per cent, followed by M&M, Axis Bank, IndusInd Bank and State Bank of India (SBI). On the flip side, HUL was the top Sensex gainer with a growth of 4.29 per cent. Sun Pharma, Nestle India, Tech Mahindra and Reliance Industries (RIL) were among other gainers on the 30-share Sensex. Sectoral indices traded mixed in today’s session. Nifty Pharma and Nifty FMCG were top sectoral gainers, up 2.13 per cent and 1.92 per cent, respectively. While PSU Bank index ended with losses dragged by Punjab & Sind Bank, Bank of Baroda and State bank of India

Days after mega-deal of Reliance Jio with Facebook and investment by Silver Lake of Rs 5,656 crore in Jio Platforms, Reliance Industries announced another deal today. Private equity firm Vista Equity Partners will make an investment of Rs 11,367 crore in Jio Platforms. The investment by Vista Equity in Reliance Jio values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.

The National Stock Exchange’s subsidiary NSE IFSC on Friday launched trading in the Indian Rupee-US Dollar Futures & Options contact. The move will help the India financial markets tend to the demand for Indian Rupee in the offshore market, and create a vibrant forex market back home in India. Rupee derivative was launched by the Finance Minister Nirmala Sitharaman digitally.

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Following the Investment by Facebook and Silver Lake, Reliance Jio Platforms has announced sale of 2.32% stake in the company to Vista Equity Partners for Rs.11,367 cr bringing the total investments over the past three weeks to ~8 bn for a 13.4% stake in the company. With this, Reliance Jio Platforms has succeeded in bringing in marquee global investors into India buoying the private equity play even in tough times. This will also reinforce the move towards Reliance becoming a zero net debt company soon: Deepak Jasani, Head of Retail Research, HDFC Securities

SBI Cards and Payment Services share price dropped 3.66 per cent to Rs 552.80 apiece on BSE after the company reported a net profit at Rs 83.5 crore for the quarter ended on March 31, as against Rs 249 crore posted in the corresponding period of the previous year.

Check live prices: SBI Cards and Payment Services

Management has indicated that demand for agri-inputs is robust and placement of products in the channel is key in capitalizing the robust demand. Rallis India has successfully placed seeds products in the channel in April despite peak lockdown, which offers hope. Rallis India domestic business revenue increased 29% despite Rs160mn in loss of sales due to Covid-19. Maintain Buy with a revised TP of Rs 260: Emkay Global Financial Services

Following the Investment by Facebook and Silver Lake, Reliance Jio Platforms has announced sale of 2.32% stake in the company to Vista Equity Partners for Rs.11,367 cr bringing the total investments over the past three weeks to ~8 bn for a 13.4% stake in the company. With this, Reliance Jio Platforms has succeeded in bringing in marquee global investors into India buoying the private equity play even in tough times. This will also reinforce the move towards Reliance becoming a zero net debt company soon – Deepak Jasani, Head Retail Research, HDFC Securities

As Prime Minister Narendra Modi urges states to make efforts to attract foreign companies willing to shift base from China, the country can focus on one sector which has a comparative advantage over China. Amid capital, consumer, and intermediate goods and raw materials, the bigger opportunity right now is in the consumer goods sector, SBI research said in the recent Ecowrap report.

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Hindustan Unilever (HUL) share price jumped 4% on Friday to trade at Rs 2,070 per share on the NSE Nifty-50 after a bulk deal that saw French multinational investment bank and financial services company, Societe Generale buy 1,29,00,000 shares at Rs 1,902 per share. Societe Generale was one of the buyers emerging to buy HUL shares as GlaxoSmithKline and Horlicks looked to sell 5.7% equity stake in HUL, valued at Rs 26,000 crore. Under the recent turmoil, some analysts expect HUL to gain market share across segments while others think the upside is limited after the recent run-up.

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Cyient share price hit 10 per cent lower circuit at Rs 208.55 apiece on BSE in Friday’s trade. The company’s consolidated net profit fell 30.4 per cent to Rs 75.4 crore in the quarter ended on March 31. It had posted a profit of Rs 108.3 crore in the previous quarter.

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The Indian rupee settled 22 paise stronger at 75.54 per US dollar as compared to Wednesday’s close of 75.76 per US dollar.

This week, the market was very range-bound. The rhetoric around the possible resumption of the US-China trade war kept risk sentiments muted. But the risk of collateral damage amid COVID-19 is too high for both the countries as well as the world economy. So, USDINR spot will continue to be news-driven. We expect 75, to act as strong support and USDINR spot may appreciate towards 76: Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services

Indian Pharma companies rallied as hydroxychloroquine was seen as one of the drugs effective in treating coronavirus. The Nifty Pharma index gained 23 per cent since April 2020, while broader Nifty 50 index advanced 11.45 per cent. Owing to recent broad-based rally in the pharma sector, CLSA advises a stock-specific approach. Among pharma stocks, the top stock picks of CLSA are Sun Pharma, CiplaAurobindo Pharma and Cadila Healthcare, recommending a ‘buy’ rating on them.

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We prefer stocks that offer higher visibility of demand recovery, better competitive positioning, scope of higher operating leverage and strong balance sheet. EIM (Eicher Motors) and MSIL (Maruti Suzuki) are our top large-cap picks. Among mid-caps, we prefer ENDU (Endurance Tech): Motilal Oswal

“There is a good reason to believe that people who were availing shared mobility because of affordability will now avoid public transport and therefore look to buy a car. But it is important to keep in mind that affordability will play a big factor.” Vikas Jain, AVP, Head Unit Sales, Hyundai India

RBL Bank’s 4Q earnings were higher vs. estimates on a/c of sharper than expected margin expansion (not sustainable) and lower than expected LLPs (elevated nevertheless, to persist). Despite the sharp correction over a period, we maintain our REDUCE rating (TP of Rs 136, (0.6x Mar-22E ABV)), given elevated risks and sub-par expected return ratios: HDFC Securities

RIL was the top Sensex gainer with a growth of over 4.5 per cent to Rs 1,575.05 apiece on BSE. ICICI Bank, Tech Mahindra, HUL and Nestle India were among other gainers on the 30-share Sensex pack.

Check live prices: Reliance Industries

Reliance Industries (RIL) reclaimed Rs 10 lakh crore market capitalisation mark in Friday’s trade. Around 1.15 PM, RIL’s m-cap stood ar Rs 10,00928 crore. RIL share price was up 4.5 per cent to Rs 1,575.05 apiece on BSE. RIL touched a day’s high of Rs 1,579.70 per share.

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We believe RBL’s expected business/RoA normalization from FY21 could be pushed back due to Covid-19-led disruption. Retain Hold rating with TP of Rs145 due to lower valuations (0.6x FY22E ABV) and timely shoring up of capital (Tier I >15%), but remain UW in EAP. Overall moratorium rate for the bank stands at ~30% in value: Cards-13% in numbers/24% in value, wholesale-22-23% in numbers/value and retail-46% in numbers. It has made provisions of Rs1.1bn on SMA loans under moratorium. The bank expects FY21 LLP to be similar to FY20 but largely coming from retail/SME/MFI including cards vs. corporate. – Emkay Global

Maintain BUY; P/B suggests worst-case discounting making FY21E earnings less relevant. With a US$1bn base case EBITDA and a net debt of US$5.6bn- 5.7bn, FY21E ‘Net Debt/EBITDA’ may look elevated. This embodies an opportunity as systemic stress allows Hindalco P/B to be at 0.35x FY22E. While consensus downgrades will be seen for the rest of the year, the CMP more than adequately discounts the same. We maintain BUY with an unchanged target price of Rs199/share.

– ICICI Securities

Information Technology major HCL Technologies posted strong March quarter numbers with revenue increasing by 16% on-year basis and profit after tax (PAT) jumping 22.7% in the same time period. The stock has surged 27% from recent lows and is now down just 10% year-to-date. Brokerage firms are bullish on the stock, expecting it to continue marching upwards. Although the IT firm has followed some peers and refrained from formal guidance for the fiscal, growth for HCL Technologies is likely to pick up in the second half of the fiscal after registering a weak first half. What imp