RIL, pvt banks take Sensex 558 pts up; Nifty tops 14,650; Nifty Metal up 3%

Hindalco, L&T, Tata Steel, Divis Labs, Reliance Industries, Bajaj Finance, and SBI were the top gainers on the 50-share pack

10:59 AM

Valuations in the pharma sector are not as attractive as last year: HDFC AMC

Rising cases and lockdowns could result into small earnings downgrades across domestic cyclical sectors. Markets, says AMIT B GANATRA, senior fund manager, HDFC AMC in an interview with Chirinjibi Thapa, are in the process of crystalising and discounting FY22 earnings expectation. READ MORE HERE

10:58 AM

Volume toppers :: BSE 500

COMPANY	LATEST	CHG(%)	VOLUME	AVG VOLUME (FOR PAST FIVE DAYS)	VOL CHG(%)
Sudarshan Chem.	603.80	8.91	63384	11539	449.30
Castrol India	129.05	3.03	330643	114690	188.29
Schaeffler India	5291.25	2.10	1355	489	177.10
Alkyl Amines	7640.00	12.57	25824	10406	148.16
GHCL	247.35	3.49	34010	14751	130.56

10:54 AM

Top performing MF schemes

Scheme Name	NAV (RS)	3 MONTH	1 YEAR	3 YEAR	5 YEAR
Quant Small Cap Fund - Direct (G)	94.41	27.04	177.36	22.49	15.59
Quant Small Cap Fund - (G)	91.74	26.39	174.08	21.74	15.12
ICICI Pru Commodities Fund - Direct (G)	19.21	29.89	155.79	-	-
ICICI Pru Commodities Fund (G)	18.76	29.38	151.47	-	-
Kotak Small Cap Fund - Direct (G)	132.70	17.22	115.31	15.13	18.90

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10:43 AM

Result today :: Maruti Q4 PAT seen up 32% YoY; commodity prices to dent margins

The full impact of commodity price rise, analysts say, will be felt as we head deeper into 2021. To offset the impact, Maruti Suzuki has already hiked the prices of select models in April 2021 by up to Rs 22,500. This is the second hike in calendar year 2021. Earlier in January, Maruti Suzuki had hiked prices of select models by up to Rs 34,000 due to rising input costs. At the bourses, however, the stock has been an underperformer in the January - March 2021 quarter, ACE Equity data show. READ MORE

10:30 AM

Copper climbs to highest in 10 years as global recovery powers metals

Copper climbed to the highest in almost a decade as the global recovery from the pandemic extended a rally in metals markets. Aluminum is surging and iron ore jumped to a fresh high as commodities advance toward the highs of the last supercycle. Metals are benefiting as the world’s largest economies announce stimulus programs and climate pledges as they rebuild from the coronavirus shock. READ MORE

10:18 AM

Nomura on HCL Tech

We fine-tune our revenue estimates, however we cut our EBIT margin estimates by 40-100bps for FY22/23F led by miss in 4Q and increased investments. 

 

As a result, EPS is lower by 5-8% for FY22F/23F. We now look for USD revenue/EPS CAGR of ~11% and 9%, respectively, over FY21-23F. We continue to value HCLT on 19x (25%+ discount to target multiple for INFO/TC) 1-year forward EPS. 

 

Downside risks: Inability to add capabilities in digital, acquisitions in legacy areas and weaker-than-expected margins.

10:18 AM

Edelweiss on Cyient

We firmly believe that the ER&D story will remain intact over the long term. Having said that, Cyient could face headwinds due to lockdowns in a few states. The stock trades at 11.9x FY22E. We maintain ‘BUY/SO’ with an unchanged target price of Rs 801.

10:17 AM

IIFL on HCL Tech

We cut FY22ii-23ii EPS by 4-7%, largely due to higher tax rates and tad lower margins, and 12mth TP to Rs1,170 valued at 19x 2YF EPS. At 16x FY23ii P/E, the stock trades at 20%/40% discount to peers/TCS. We maintain Buy.

10:17 AM

Nomura on Tech Mahindra

For FY22/23F we fine-tune revenues and raise EBIT margins by ~40-50bp led by strong exit in 4Q at 16.5%. However, our FY22/23F EPS are lower by 3-5% on higher tax rate guidance of 25-26%. 

 

We now forecast a USD revenue/EPS CAGR of ~9/11% over FY21-23F and EBIT margins of 15%/14.6% for FY22/23F. We continue to value TechM on 17x 1-year forward EPS of INR65 to arrive at our TP. Downside risks: inability to participate aggressively in 5G opportunity or sustain EBIT margin levels.

 

10:17 AM

Antique on Bajaj Consumer Care

On profitability, the company will continue to witness pressure in 1QFY22 due to alleviated raw material prices. The weighted average price hike of about 2.5% in Feb and March 2021, will partly RM inflation. Over the longer term, Bajaj Consumer Care will limit the margin erosion through cost rationalization and calibrated price hikes. 

 

We maintain our estimates and expect Bajaj Consumer Care to deliver sales/earnings CAGR of 10%/11% over FY21-23E. We maintain our Buy recommendation given its undemanding current valuations with target price to INR 375, valuing at PER of 20x FY23e earnings.

10:16 AM

Nirmal Bang on Polycab India

With robust growth prospects, improving margin profile of FMEG and significant strengthening of balance sheet and cash position, we expect the P/E re-rating of Polycab to continue and its discount to electrical peers to narrow. 

 

Expect Polycab to report revenue/PBT/earnings CAGR of 16%/19%/12% over FY21E-FY23E. We initiate coverage on Polycab with an Accumulate rating and a target price of Rs1,620 based on P/E of 23x FY23E earnings.

10:16 AM

Motilal Oswal Securities on auto sector

Like 4Ws over 2Ws as PVs are the least impacted segment currently and offers a stable competitive environment. We expect the CV cycle recovery to sustain and gain momentum.

 

Prefer companies with: a) higher visibility in terms of demand recovery, b) a strong competitive positioning, c) margin drivers, and d) balance sheet strength. Our top picks in Autos are MSIL and MM among largecaps, and ENDU in midcaps. TTMT is our preferred bet on the global PVs.

10:11 AM

HDFC Life slips in a firm market amid profit booking post Q4 results

Private sector life insurer HDFC Life, on Monday, reported a 2 per cent jump in net profit (on a standalone level) to Rs 317.94 crore in Q4FY21, from Rs 311.71 crore posted in the same period last year. Furthermore, the insurer saw a 23 per cent rise in net premium in Q4FY21 to Rs 12,868.01 crore from Rs 10,464.46 crore a year ago. Its investment income of Rs 6,051.42 crore in the fourth quarter was down almost 50 per cent sequentially. READ MORE

10:04 AM

Rupee opening

Rupee opens marginally higher at 74.68 per US dollar vs Monday's close of 74.72/$

9:44 AM

Federal-Mogul Goetze (India) rises 3% on strong response to OFS on Day 1

The OFS got subscribed 395 per cent by non-retail investors on the first day. Promoter IEH FMGI Holdings LLC plans to sell up to 55.4 lakh equity shares, or a 9.95 per cent stake, a floor price of Rs 250 per share. The issue opens for non-retail investors today.