With the expected increase in retail penetration, it is important to have wealth managers who can prescribe meaningful investment advice aligned to the clients’ risk tolerance, return expectation and financial needs, a Sebi official said on Thursday. Also, given the fiduciary responsibilities of a wealth manager, it becomes equally important for them to be grounded in ethical principles, such as client confidentiality, transparency and objectivity, S K Mohanty, Wholetime Member of Sebi and Director at NISM, said.
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Near-term demand may remain subdued due to pandemic-related restrictions. However, Emkay Global expects a recovery from Q2FY22 onward. The positive view on the Automobile sector is underpinned by expectations of a strong cyclical upturn, which is expected to last at least three years.
Vedanta on Thursday said its Chairman Anil Agarwal has pledged Rs 150 crore to help India in its fight against deadly COVID-19 second wave. The amount is over and above Rs 201 crore that was spent by Vedanta Group in 2020, it said in a statement.
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Gold prices rose after a brief consolidation witnessed in the previous session, bolstered by the U.S. Federal Reserve’s pledge to maintain easy monetary policy to aid economic recovery, while a weaker dollar provided further support. The Federal Reserve held interest rates and its bond-buying program steady on Wednesday after its two-day policy meet despite taking a rosier view of the U.S. economic recovery. Governor Powell did not mention anything regarding the yields although he continued to underplay the rising inflationary expectation. On other hand, U.S. President Joe Biden plans to unveil a sweeping $1.8 trillion package for families and education in his first speech to Congress, supporting the overall sentiment. Market participants will keep an eye on the US Q1 GDP data and weekly jobless claims scheduled later in the day, which could trigger further volatility in the market. Broader range on COMEX could be between $1775- 1798 and on the domestic front prices could hover in the range of Rs 47,000- 47,550. Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services
Some Wall Street investors have switched back to defensive trades after the strong run-up in equity indices saw them surge to record highs. Investors shifted their focus on defensive, chose large-caps over mid-cap and small-caps, and went for growth stocks instead of value. However, this move towards defensives might be pre-mature, according to Lisa Shalett, Chief Investment Office, Morgan Stanley Wealth Management. “We disagree and believe that a defensive shift for investment portfolios is premature. In our view, recent events represent a pause — not a reversal — in the reflation trade,” she added.
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Based on the ground level developments which reflect strong growth tendencies in the global economy, 2021 will be a bull run for all commodities in general, after which there will be tapering down in 2022. Gold will be an exception which will slow down in 2021. The interesting facet here is that the prices for most categories will not just be higher than 2020 when there was a tendency for them to decline but also over 2019 which was the pre-pandemic year. However the risk can be any slowdown in the world economy due to the pandemic as that will upset most calculations. CARE Ratings
FMCG major Hindustan Unilever Ltd (HUL) on Thursday reported a 13 per cent increase in consolidated net profit at Rs 2,190 crore for the fourth quarter ended March 31, riding on strong volume growth. The company had posted a consolidated net profit of Rs 1,938 crore in the same period of the previous fiscal, HUL said in a regulatory filing.
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Superior Return Ratios: PGInViT is having ROE of 25% whereas Indgrid is having ROE of 10%.Dividend yield: InViT will offer dividend yield of around 10-11%, whereas Indgrid is offering yield of around 9%.Strong Sponsor: Power Grid is the sponsor of PGInViT, which is the largest power transmission company in India.Low Debt: The object of the issue is to reduce the debt, and most probably PGInvit will list with net debt free status. Vishnu Kapadia, CIO, MJK Investments
As efforts accelerate nationwide to provide relief from the devastation of the second wave of the coronavirus, Coca-Cola in India has committed Rs 50 crore to augment the nation’s effort in combating the crisis and containing the spread of the pandemic. The Coca-Cola system in India will facilitate COVID vaccination, provide safety kits, create awareness and distribute beverages to our nation’s front line, to positively impact over 10 lakh Indians.
India’s gold demand recovered during the January-March period to witness a growth of 37 per cent at 140 tonne compared to the same quarter of 2020, due to ease of COVID-related restrictions, pent up demand and softening of prices of the yellow metal, according to the World Gold Council (WGC).
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PowerGrid Infrastructure Investment Trust (InvIT) IPO opened for subscription on Thursday, April 29, 2021, in the price band of Rs 99-100 per unit. The units of PowerGrid InvIT are proposed to be listed on BSE and NSE. Through this IPO, the company plans to raise Rs 7,735 crore comprising a fresh issue of Rs 4,993.48 crore and offer for sale of up to Rs 2,741.51 crore of existing units. Upon successful listing, it will become the third InvIT to be listed on the bourses after IndiaGrid Trust and IRB InvIT.
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HUL posted profit of Rs 2,140 crore, which is above estimates. Revenue came in at Rs 12,433 crore, Ebitda at Rs 3,043 crore, and volume grew 16 per cent on-year.
Biotechnology major Biocon has reported 86.29 per cent jump in consolidated profit to Rs 296.4 crore for the quarter ended March 31, 2021. The company had reported profit of Rs 159.1 crore in the corresponding period a year ago.
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Hindustan Unilever today said that its board has recommended a final dividend of Rs 17 per share for the financial year ended 31st March 2021. In the previous financial year, HUL gave a total dividend of Rs 31 per share.
Competition Commission of India (CCI) today gave the go-ahead for Tata Group’s proposal to acquire a majority stake in Alibaba-backed online grocery store BigBasket. With CCI’s nod Tata Digital, a wholly-owned subsidiary of Tata Sons, will acquire a 64.3% stake in the company, paving the way for a showdown in the online grocery segment. BigBasket competes with Groffers in the segment which is backed by Sequoia Capital, SoftBank, and even Tiger Global.
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The Zomato IPO will be among a handful of startups domiciled in India including Policybazaar, Nykaa, Delhivery, MobiKwik, etc., planning to list in the coming months. A successful listing is also likely to pump up a number of other internet-first or internet-only startups to opt for listing to raise further capital even as successful listings IndiaMart, and Infibeam in the recent past have sent positive signals with respect to India-focused investors’ appetite for internet stocks.
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Tata Communications (TCOM) reported 7.4% YoY degrowth in revenues to ₹4,073 crore for Q4FY21. However the company reported a 16.8% YoY growth in EBIDTA for the quarter stood to ₹1015 crore while EBIDTA margins expanded by 517bps to 24.9%. Profit before tax and exceptional items was up by 3x YoY to ₹385 crore. Due to exceptional items of ₹378 crore in Q4FY20the company had posted a loss of Rs 275 crore in the quarter. Against a loss in Q4FY21 the company registered a PAT of ₹299.2 crore in Q4FY21. Despite the de growth in revenues the company has registered strong growth in operating profits due to sharp increase in margins in the data and managed services business. Tata Communications has been one of the biggest beneficiaries of the data boom due to greater proliferation of work from anywhere post the Covid 19 pandemic. While we expect demand for data services will continue to remain strong we believe that post the rally the stock is expensive at current levels and warrants caution. Jyoti Roy – DVP- Equity Strategist, Angel Broking Ltd
Nifty opens in green and then makes a monthly high of 15042 and then corrects heavily on profit booking. Nifty corrected more than 200 points from the day’s high. We don’t suggest investors buying on dips as nifty has rallied from 14150 within the last 5 trading sessions. We suggest 14700 will be a good opportunity to buy on dips and on upside nifty will face resistance at 15200 levels. Yash Gupta Equity Research Associate, Angel Broking Ltd
Mukesh Ambani’s Reliance Industries Ltd. (RIL) has seen increased interest from foreign portfolio investors in the last one year. Foreign Portfolio Investor’s (FPI) shareholding in RIL has jumped 1.59% in the January-March quarter, from a year-ago period. Meanwhile, mutual funds have trimmed their stake in the oil-to-telecom conglomerate by 1%, during the same period. This is in line with a recent report by global investment bank Jefferies, where it says that overseas investors are more constructive on the stock. Jefferies has maintained a price target of Rs 2,600 per share on RIL stock. Currently, RIL trades at Rs 2,018 per share.
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Nifty surged in the last three trading sessions and now finds support at 14,700-14,685 levels, according to Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking. The 50-stock index, although down from intra-day highs, is still well above the immediate resistance zone.
Sensex was down 90 points while Nifty was below 14,850 on Thursday morning. ICICI Bank, HDFC Twins, and Kotak Mahindra Bank were the top drags.
Sensex and Nifty were trading flat with a positive bias on Thursday, giving up most of their opening gains after an hour of trading.
Bank Nifty is down 0.19% on Thursday morning. Benchmark indices are up in green.
Today, technically we expect the MCX Gold June price to look positive for intraday. Yesterday, It has taken strong support at a 50-day simple moving average and from there it bounced back. On an hourly chart suggest that MCX June Gold contract price will be going to face strong resistance at the down channel line which comes around 47,350 levels approximately and breaking above which price will march towards 47,750 to 48,000 levels in the coming trading session. On the downside, it will take immediate support at a gap (47,090) after that 46,800 will act as strong support. MCX July SILVER prices are looking positive for intraday. On an hourly chart, the RSI momentum indicator moved up from the oversold area to the positive zone and it will provide further strength to the silver prices. however, we expect, Price will going to face a strong resistance zone at 70,450 levels. Breaking above which price can head towards 71,500 to 72,500 in the coming trading sessions. on the downside, Gap will act as strong support levels (69,000) approximately. NS Ramaswamy, Head of Commodities, Ventura Securities Ltd
Gold prices snapped the 5-day losing streak on Thursday after the US Federal Reserve decided to keep the interest rates unchanged near zero. MCX gold June futures were trading Rs 163 or 0.35 per cent higher at Rs 47,256 per 10 gram, as against the previous close of Rs 47,093. MCX silver June futures too surged Rs 735 or 1.08 per cent to Rs 69,788 per kg. Silver futures closed at Rs 69,043 per kg in the previous session.
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The markets are performing just as expected. Beyond the level of 14700, it is now headed to 15000-15100 which should be the first pit stop. If we can sustain there, the next level should be the previous high of 15300-15350. 14300 is now a strong support for the Nifty and any downward correction can be utilized to enter the index for higher targets. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
On the domestic side, the equity market is likely to extend it gains following the strength in the global market post Fed announcement. Further, it will take cues from the domestic Covid cases and vaccination development. In fresh issuance, the focus will be on just the second IPO for the month- PowerGrid Infrastructure Investment Trust IPO; which will be raising Rs. 7,734 crore from the market. This could attract some flows and could be supportive to the equity market. However, Maharashtra’s lockdown extension and vaccine shortage news could cap the upside and hence rupee could be seen limiting its gains upt o 74.20-30 levels and expected to weaken again upto 74.80-75.00 levels in the near term. The focus shift to US advance GDP data which is expected to be at 6.8%. Amit Pabari, managing director, CR Forex Advisors
Gold gained momentum after the US Fed’s pledge for an accommodative fiscal policy stance in yesterday’s policy meeting. Concerns over the economic impact of the second wave of corona pandemic and a softer US dollar also benefited the yellow metal. Meanwhile, a steady equity market and signs of economic recovery in the US and China may dent major gains in the commodity. Prices will continue with mild positive bias as long as $1760 hold the downside. Anyhow, major rallies are expected only if it breaks the next upside obstacle of $1820. A close below $1720 is a sign of immediate trend reversal. Hareesh V, Research Head Commodities at Geojit Financial Services
Out of 30 Sensex shares, 29 were trading in the positive territory. IndusInd Bank, Axis Bank, Bajaj Finserv were the top leaders. While HCL Tech was the only loser on the index
Index heavyweights such as Reliance Industries Ltd (RIL), HDFC Bank, Housing Development Finance Corporation (HDFC), Axis Bank and ICICI Bank among others contributed the most to the indices’ gain
Sensex surged 567 points or 1.14 per cent to 50,300, while Nifty 50 index surpassed the crucial 15,000 level on Thursday
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COMEX gold trades about 0.8% higher near $1788/oz after a 0.3% decline yesterday. Gold has edged up as the US dollar index slumped to 1-month low on back of Fed’s decision to maintain its accommodative stance despite improving outlook for the US economy. Also supporting gold is hopes of additional stimulus measures by the Biden administration. However, weighing on price is weaker investor buying and concerns about Indian demand. Gold may remain choppy reflecting trend in US dollar as market players counter Fed’s dovish stance against improving economic outlook. Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
Bajaj Auto, Maruti Suzuki, RIL and Power Grid Corporation of India were among top BSE Sensex gainers in the pre-open
“Markets are poised to open yet another day with stronger gains on the back of the stimulus from the US president. US president Joe Biden has laid out a $1.8 trillion social support plan, in his address to Congress. The markets saw a strong run in the crude prices by Brent rallying over $67 per barrel close to a six week high prices. The AMC’s stocks will be in focus in today’s trading after the SEBI rule that top executives of asset management companies will now be paid 20% of their compensation in units of the schemes that they have a role in or oversight of with a lock-in period of 3 years. This way the goals of the Mutual fund Investors and the Investment managers will be aligned and help India to further deepen the Mutual fund Investor base,” said Mohit Nigam, Head, PMS, Hem Securities.
Sensex surged to a 12-day high and reclaimed 50,000, while the broader Nifty 50 index was ruling above 14,900 in the pre-open on Thursday.
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The AMCs’ stocks will be in focus in today’s trading after the SEBI rule that top executives of asset management companies will now be paid 20% of their compensation in units of the schemes that they have a role in or oversight of with a lock-in period of 3 years. This way the goals of the Mutual fund Investors and the Investment managers will be aligned and help India to further deepen the Mutual fund Investor base. Mohit Nigam, Head, PMS, Hem Securities
Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: Prices of Petrol and Diesel have remained unchanged for fourteen consecutive days now. Fuel prices were last cut on April 15 after having remained unchanged for fifteen days straight. Today, the Petrol price in Delhi is Rs 90.40 per litre, while Diesel prices were at Rs 80.73 per litre. Fuel prices remain the highest in Mumbai at Rs 96.83 per litre for Petrol. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices on a daily basis in line with benchmark international price and foreign exchange rates.
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As per management projections, Powergrid InvIT is likely to generate cash flow from operations at an average of Rs.11.7 bn over the next three years, which implies a 10% cash flow yield. We recommend to “Subscribe” this IPO as the sponsor is the mega player with many ongoing projects along with strong financial performance and stable cashflows. Marwadi Shares and Finance Ltd
Domestic equities look to be good at the moment. Benchmark indices shrugged off continued rise in COVID-19 cases in this week. We note that absence of nationwide lockdown and high chances of reversal in cases by the end of May or mid of June’21 offered comfort. However, sharp rise in number of deaths and active cases crossing 3mn is a matter of concern for central and state governments and therefore any possibility of further economic restrictions cannot be ruled out by the state governments. Market is expected to remain volatile until we see a clear reversal in COVID-19 cases. In our view, central government will continue to handle this disaster by maintaining a fair balance between lives and livelihoods. Notably, enhanced economic restrictions imposed by states and government’s continued focus to increase supply of vaccines and allowing vaccines at private hospitals should be able to check spread of coronavirus in coming weeks. Binod Modi, Head Strategy at Reliance Securities
US equites finished lower after FOMC meeting outcome, which appeared to be a non-event. Federal Reserve kept policy rates unchanged and reiterated accommodative policy despite rising inflation. Federal Reserve’s Chairman Powell stressed that vaccination ramp up in the USA has strengthened the economy, but Federal Reserve is still committed to maintain loose policy until 8mn job lost in pandemic is recouped and inflation continues to track above 2% marks for sometimes. President Joe Biden proposed US$1.8 trillion on childcare, education and paid leave and increased top income tax rates from 37% to 39.6% for high income individuals. Capital gain tax was also proposed to raise from 20% to 39.6% for households earning more than US$1mn, which was mostly on expected lines. Binod Modi, Head Strategy at Reliance Securities
