Sensex soars 380 pts, ends at 51,017; Nifty at 15,301; metal stocks slide

Volatility index, India VIX, however, surged 11 per cent to 21 levels ahead of the expiry of monthly F&O contracts due tomorrow

8:38 AM

Some margin pressure emerging: MOFSL on Emami

Reco: Buy | TP: Rs 580

HMN’s 4QFY21 sales/volume growth of 37%/39% was broadly in line with our estimate. Albeit, aided by advance summer season sales in 4QFY21, unlike the same quarter last year, two-year average growth has now been in the 7.5-10% range in the past three quarters, far better than the 3.7% CAGR growth in the five years ended FY20.

There was a significant miss of ~30% on the EBITDA front v/s our expectation due to increasing material cost pressures and a sequential increase in ad spends as a proportion of sales. While the company has taken/is in the process of taking an overall price increase of up to 4% by Jun’21, if we take the median of their gross margin guidance of 66.5% to 67%, there is likely to be ~100bp lower gross margin in FY22E.

Whether HMN is able to sustain or surpass the better than usual sales momentum witnessed in the past three quarters, remains to be seen, especially if seasonality and rural momentum turn out to be less favorable than recent quarters. Nevertheless, valuations of 26.7x FY23E EPS still leaves room for an upside. Maintain Buy

8:36 AM

Motilal Oswal Financial Services maintains 'Buy' on Alkem Labs

ALKEM delivered better-than-expected 4QFY21 performance, led by superior execution in the domestic formulations (DF) segment. While the US business faced headwinds in 4QFY21, it expects healthy launches to deliver better YoY growth in FY22. 

On a high base of FY21 (41% YoY growth), we expect 8% earnings CAGR over FY21-23E, led by 11%/14% sales CAGR in the US/DF segment on account of new

launches and better traction in existing products in the US and strong growth in Antibiotic, VMN, and Pain Relief in DF.

Continued efforts toward cost optimization and savings from digital initiatives such as digital conferences is expected to reduce opex structurally in the DF segment, which will help sustain profitability over the next two years.

We maintain our FY22E/FY23E EPS estimate. We continue to value ALKEM at 23x 12-months forward earnings to arrive at our TP of INR3,500. We remain positive on ALKEM on the back of industry outperformance in DF in its focused therapies and better growth outlook in the US as well

8:32 AM

'Nifty remains in an intermediate uptrend'

On the daily chart, the Nifty index continues to hold above a rising trend line that has held the important lows of the last few months. This implies that the index remains in an intermediate uptrend. The Nifty has also recently made higher bottoms at 14,416 and 14,591 and continues to trade above the 20 and 50-day SMA, which gives further evidence of an uptrend. We expect the Nifty to move higher towards the lifetime highs of 15,432 and beyond in the coming sessions. Our bullish bets are off if the Nifty moves below the lows of 14,884. READ MORE

8:28 AM

Top trading calls by Ajit Mishra

Buy Asian Paints Limited

 

Target: Rs 3,020

 

Stop loss: Rs 2,840

 

Rationale: Asian Paints has witnessed a fresh breakout from the pennant pattern (indicates a pause after a sharp surge) and made a new record high as well. The overall chart pattern indicates that the prevailing momentum is likely to continue. Traders shouldn’t miss the opportunity and create fresh longs in the mentioned zone. READ MORE

8:25 AM

Bulk deals on the BSE as on Tuesday

Click here for complete list

8:22 AM

Bulk deals on the NSE as on Tuesday

Click here for complete list

8:19 AM

FII/FPIs remained net buyers on Tuesday

8:16 AM

Rupee check

Source: Bloomberg

8:14 AM

Oil check

In commodities, Brent crude lost 0.28 per cent  to $68.30 a barrel, but was still trading near one-week high. 

8:12 AM

SGX Nifty update

>> At 8:12 AM, the index was at 15,210, down 39 points.

8:10 AM

Asian markets trade higher

The trend was flat to positive among Asian indices early Wednesday. Hong Kong's Hang Seng rose 0.6 per cent, while Japan's Nikkei and South Korea's Kospi were up 0.2 per cent, each. Australia's ASX200, meanwhile, was flat.

8:08 AM

Wall Street ends marginally lower on Tuesday

US stocks closed slightly lower on Tuesday, and each of Wall Street's main indexes failed to stray far from the unchanged mark following a rally in the prior session as investors continue to try and assess the route of inflation. 
 

Overall, the Dow Jones fell 0.24 per cent, the S&P 500 lost 0.21 per cent, and the Nasdaq Composite dropped 0.03 per cent.

 

7:50 AM

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