Sensex spurts 500 points; Nifty above 14,500

Indian benchmark equity indices opened on a strong footing amid mixed global cues and pick up in Covid-19 vaccination drive. In opening trade, Sensex jumps 690 points or 1.44% at 48,569 and the broader market index Nifty was trading above 14,500 at 14,523 up 182 points or 1.27%. 

28 out of 30 Sensex stocks are opened in the green. ICICI Bank gained over 4% on the back of strong Q4 numbers released on Saturaday, ONGC, Axis Bank, SBI and UltraTech cement was up over 2.2%. On the downside, HCL Tech and Powergrid lost in the range 0.21-2%.

On the sectoral front barring Nifty Pharma, all other indices were trading in the green. Nifty Bank was leading with gains of over 2% followed by Nifty Metal rose 1%. Nifty IT, Nifty Auto surged 0.70% and Nifty FMCG was up 0.24%.

Market breadth very strong as 1,368 shares advanced compared to 385 declining while 529 scrips remained unchanged. However, the broader market underperformed benchmark indices as BSE MidCap & BSE SmallCap indices were up 0.80% and 0.98% respectively.

Earnings today:

Tech Mahindra, HDFC Life Insurance Company, SBI Cards and Payment Services, Castrol India, Delta Corp, Alok Industries, Automotive Stampings & Assemblies, Benares Hotels, Kedia Construction, National Standard (India), Roselabs Finance, Schaeffler India, Snowman Logistics, Suraj, Tata Teleservices (Maharashtra) and Welcure Drugs & Pharmaceuticals will declare quarterly earnings today.

Stocks in spotlight:

ICICI Bank reported net profit of Rs 4,403 crore in Q4-2021, up 260.61% compared with net profit of Rs 1,221 crore in Q4-2020. Total income during the quarter increased by 2.2% year-on-year (YoY) to Rs 23,953.02 crore. Provisions (excluding provision for tax) were Rs 2,883 crore in Q4-2021 compared to Rs 5,967 crore in Q4-2020. Provision coverage ratio was 77.7% at 31 March 2021.

HCL Technologies reported 25.6% drop in consolidated net profit to Rs 2,962 crore on 1.8% rise in revenues to Rs 19,642 crore in Q4 FY21 over Q3 FY21. The IT firm’s consolidated net profit declined 6.1% while revenues jumped 5.7% in Q4 FY21 over Q4 FY20. With respect to FY22 guidance, the company expects revenue to grow in double digits in constant currency for FY’22. It expects EBIT margin to be between 19% and 21% for FY’22. ONGC said the company’s board has appointed Subhash Kumar, director (finance), as chief executive officer (CEO) of the company.

Mahindra & Mahindra Financial Services (M&M Finance) reported 8.4% decline in consolidated net profit to Rs 218.84 crore on 3% fall in total income to Rs 3038.37 crore in Q4 March 2021 over Q4 March 2020. Indiabulls Real Estate posted a consolidated net profit of Rs 94.42 crore in Q4 March 2021 as against net loss of Rs 109.79 crore in Q4 March 2020.Net sales for Q4 March 2021 zoomed 529% year-on-year to Rs 731.73 crore.

On a consolidated basis, GNA Axles’ net profit surged 497% to Rs 27.63 crore in Q4 FY21 as against a net profit of Rs 4.63 crore in Q4 FY20. Net sales during the quarter increased 71.6% year-on-year (YoY) to Rs 310.12 crore.

Ramco Systems announced that it has established a wholly-owned subsidiary in Japan to carry on the business operations in the region.

Shares of Hathway Cable & Datacom will be in focus. Jio Content Distribution Holdings, Jio Internet Distribution Holdings and Jio Cable and Broadband Holdings, part of the promoter & promoter group, propose to sell 11.61% stake in Hathway Cable & Datacom. The floor price for the OFS is Rs 21.50 per equity share. The OFS will open on 26 April 2021 (T day) for non-retail investors and on 27 April 2021 (T+1 day) for retail investors and for non-retail investors who choose to carry forward their un-allocated bids from T day.

Hester Biosciences will produce research-based herbal products for poultry, cattle, sheep, goat and swine.

Wendt (India) reported a net profit of Rs 5.97 crore in Q4 FY21 as against net loss of Rs 1.09 crore in Q4 FY20. Net sales during the quarter surged 83% year-on-year (YoY) to Rs 40.59 crore.

Ramkrishna Forgings announced that it has started commercial production of 7000T press from its Plant-V, situated in Jamshedpur, with effect from 22 April 2021.

Global markets:

Overseas, Asian stocks are trading mixed on Monday as signs the world economic recovery was well on track bolstered risk appetite.

U.S. stocks rebounded on Friday as Wall Street reassessed concerns arising from news that the White House could seek a hike to the capital gains tax. Stocks were supported by data indicating an acceleration in economic activity and even faster growth in new home sales, as investors largely brushed off Thursday’s reports that President Joe Biden would propose a large increase on the capital gains tax for the wealthiest Americans.

In U.S. economic data, the IHS Markit purchasing managers index for the manufacturing sector rose to a record 60.5 in April from 59.1 a month earlier, while the services sector PMI jumped to 63.1 from 60.4. A reading of more than 50 indicates an expansion in activity.

New home sales rose to a seasonally-adjusted annual rate of 1.021 million in March, the U.S. Census Bureau reported — the fastest pace since 2006. Month-over-month, sales rose 20.7%. Also, the Census Bureau revised the sales figure for February up to a rate of 846,000, from the originally reported rate of 775,000.