Sensex jumps 128 points, Nifty at 15,238

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Benchmark Indian equity indices opened in the green terrain tracking global cues on Wednesday, however, markets may remain volatile ahead of the expiry of derivatives contract for the May series. In opening trade, Sensex rose 128 points or 0.25% at 50,765 while the Nifty 50 index was trading at 15,238 jumping 30 points or 0.20%.

“A significant feature of the ongoing global stock market rally is that it has demonstrated great resilience even in the midst of the second wave of the pandemic. The factors driving the rally like the huge liquidity, historically low-interest rates, widespread retail participation and hope of a vaccine-triggered recovery are still favourable. Even the fear of inflation is subsiding as indicated by the decline in US 10-year yield to 1.56 % and the weakness in the US dollar index. So the broad market construct is favourable,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Weakness and volatility in banking stocks are likely to be a short-term phenomenon that will provide buying opportunities for long-term investors, added Vijayakumar.

Titan, M&M, Bajaj Finserv, Sun Pharma & HUL were the top gainers on the Sensex rallying 0.60-1.88%. On the downside, PowerGrid, ICICI Bank, HCL Tech, Kotak Mahindra Bank and Nestle India lost up to 0.90%.

On the sectoral front, the Nifty Metal index tanked 1.7% followed by the Nifty Bank slipping 0.53%. On the upside, the Nifty Realty index rallied 0.94%, Nifty Pharma jumps 0.71% while Nifty Auto index rose 0.38% and the Nifty IT, as well as Nifty FMCG indices, were up around 0.20%.

In the broader market, the BSE Midcap index was flat up 0.02% whereas the BSE Smallcap index outperformed the benchmark indices and was up 0.69%. Market breadth favoured the bulls as 1,238 stocks advanced compared to 530 shares declining and 483 scrips remained unchanged.

Earnings today

Berger Paints India, Bharat Petroleum Corporation, Burger King India, Arvind, Astra Microwave Products, Cummins India, LT Foods, Datamatics Global Services, Hindustan Composites, J Kumar Infraprojects, Manappuram Finance, Mold-Tek Packaging, Pfizer, Pricol, Sharda Cropchem, Shreyas Shipping & Logistics, Sicagen India and others will be declaring their quarterly earnings today.

Stocks in spotlight

PNB Housing Finance informed that the meeting of the board of directors of the company is scheduled on 31 May 2021 to consider and approve fundraising.

Hinduja Global Solutions announced that it is looking to hire up to 250 remote customer service representatives in Quebec to support the ongoing growth of its Canadian entity.

Zuari Agro Chemicals informed that the damages caused by Cyclone – Tauktae to the fertilizer plant at Goa including loss due to material loss is approx. Rs. 2.5 crore.

Bodal Chemicals informed that PT BODAL CHEMICALS INDONESIA has been incorporated in Jakarta, Indonesia as a Wholly Owned Subsidiary Company of Bodal the company. The main objective is trading (including wholesale trade) of dyes and other related chemicals and basic chemicals ingredients.

PG Electroplast has enabled resolutions to raise Rs 76.6 crore from investors. Baring Private Equity India AIF, Ananta Capital (promoted by the Taparia Family) and the Patni family office are participating through preferential allotment of equity shares of Rs 40.30 crore and Compulsorily Convertible Debentures (CCD) of Rs 36.30 crore in the company.

Hercules Hoists said the company’s board of directors approved the proposal received from Hindustan Unilever, Nashik regarding the purchase of three windmills, 1.25 MW capacity each situated at Khori, Dhule, Maharashtra

Bayer Crop Science reported doubling its profit to Rs 61.9 crore for the March 2021 quarter. The company’s profit had stood at Rs 31.5 crore during the corresponding quarter of 2019-20, Bayer Crop Science said in a BSE filing.

CAMS on Tuesday reported a 39.6% increase in profit after tax to Rs 60.13 crore for the fourth quarter ended March 2021. In comparison, it had a profit after tax (PAT) of Rs 43.07 crore in the same quarter preceding fiscal, according to a statement.

AstraZeneca Pharma India on Tuesday reported a nearly three-fold jump in its net profit to Rs 27.27 crore for the quarter ended March 31, 2021. The company had posted a net profit of Rs 9.57 crore for the corresponding period of the previous fiscal, AstraZeneca Pharma India said in a regulatory filing.

Godawari Power and Ispat posted a multifold jump in consolidated net profit at Rs 304.01 crore for March quarter 2020-21, mainly on the back of higher revenues. The company’s net profit in the year-ago period was Rs 34.22 crore, a BSE filing said.

Newgen Software Technologies on Tuesday said it has clocked a 27.2% rise in consolidated net profit at Rs 52.7 crore for the March 2021 quarter. The company had registered a net profit of Rs 41.5 crore in the year-ago period, Newgen said in a regulatory filing.

Global markets

Overseas, most Asian stocks are trading higher on Wednesday, with multiple markets in Southeast Asia closed for a holiday. In Southeast Asia, markets in Indonesia, Singapore and Thailand are closed for a holiday on Wednesday.

U.S. stocks closed slightly lower on Tuesday following a rally in the prior session as investors continue to try and assess the route of inflation.