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BSE Oil & Gas sector rose 1 percent supported by the GAIL, HPCL, BPCL:
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
This bull market, which has been climbing many walls of worries, is likely to remain resilient supported by positive news on the Covid front. The latest data indicates plateauing of the Covid curve and a steady decline in Covid numbers in 13 states including Maharashtra. Daily numbers after peaking at 4.02 lakhs on May 1st have been steadily declining and now stands at 3.5 lakhs. This can give further support to the ‘hope trade’ that is currently on, despite the grim health crisis.
Q4 results continue to be good across sectors. The FIIs continue to be on the sell side but this is being neutralised by DII buying. IT, pharma, telecom are safe sectors in the context of the lockdowns during the second wave.
Rupee Updates:
Indian rupee is trading flat at 73.95 per dollar, amid volatile trade seen in the domestic equity market. It opened marginally higher at 73.90 per dollar against previous close of 73.93.
Morepen Laboratories Q4 result:
Morepen Laboratories has posted consolidated net profit at Rs 26.7 crore versus Rs 11 crore and revenue was up 38.7% at Rs 286.6 crore versus Rs 206.6 crore, YoY.
Morepen Laboratories touched a 52-week high of Rs 72.05 and quoting at Rs 65.25, down Rs 3.40, or 4.95 percent on the BSE.
Adani Ports to announce Q4 earnings today:
Adani Ports and Special Economic Zone is expected to report robust growth in March 2021 quarter earnings driven by volumes and operating performance. The company will release its quarterly scorecard on May 4.
“We model 29 percent YoY increase in volumes based on monthly updates shared by ADSEZ along with the consolidation of Krishnapatnam port from the second half of FY21,” said Kotak Institutional Equities which sees 280 percent year-on-year growth in profit and 26 percent rise in revenue for the March quarter.
Adani Ports and Special Economic Zone was quoting at Rs 774.40, up Rs 13.15, or 1.73 percent on the BSE.
Rubber Outlook
“Last week, Natural rubber bounced up from the recent fall in the Indian market. Firm demand coupled with upbeat cues from the overseas natural rubber market improved the sentiments. Japan rubber futures posted gains last week, hitting its highest level in three weeks. In the week ahead, natural rubber is expected to trade firm. However, consecutive holidays in the major international natural rubber market and key economic data releases from the US and China will weigh on apart from the lingering COVID-19 issues and movement in crude oil prices,” said Anu V Pai, Commodity Research Analyst at Geojit Financial Services.
It is a holiday for Japan’s Osaka Exchange from May 3 to May 5 on account of Constitution Memorial Day, Greenery Day and Children’s Day and SHFE will be closed from May 1 to May 5 on account of Labour Day.
Technical View
“The markets are still unsure of its direction. We have a strong support at 14,400 which we are not breaking and there is a stiff resistance at 14,700 which we are unable to get past convincingly. Until either level is not taken out, we will not see a meaningful move in the markets. If we can get past 14,700, the Nifty could scale higher to 15,100. If the index breaks 14,400, it could drop to 14,100,” said Manish Hathiramani, Proprietary Index Trader and Technical Analyst at Deen Dayal Investments.
Aviation Recovery in 2021 Hits Pause, says India Ratings
“The first two months of 2021 witnessed a solid improvement in air travel, after a steep decline in EBITDAR losses in 3QFY21 as airline operations normalised. However, late March and April 2021 have seen a sharp rise in active COVID cases all across India which has significantly impacted air travel and dented our confidence in aviation recovery,” said India Ratings.
Overall, India Ratings and Research (Ind-Ra) opines the recovery in domestic and international travel has been delayed by three and six months, respectively. “Additionally, 2021 has brought to the fore three new challenges to contend with: 1) higher fuel expenses as crude prices recover amid a soaring global demand, 2) rising competition intensity amid the possible re-start of operations by Jet Airways (India) Limited and the newer shareholder/owner of Air India Limited (‘IND AAA (CE)’/Stable) possibly becoming more aggressive in acquiring market share, and 3) likely pressure on airline yields as the scramble for market share realignment to pre-COVID period begins,” said the rating agency.
India Ratings believes the domestic air travel recovery should resume in three months, if the fresh COVID wave subsides. “However, a meaningful international travel recovery is around six months away and contingent on the achievement of vaccination coverage for a significant proportion of the population..”
Anupam Rasayan to invest Rs 43 crore to set up a solar power plant:
Anupam Rasayan India has issued a letter of intent to install solar power by investing sum of Rs 43 crore.
The entire capital expenditure of Rs 43 crore will be funded from the company’s recently concluded IPO proceeds. The size of the plant will be 12.50 MW and will cater to the energy requirements of company’s major units, company said in its release.
Anupam Rasayan India was quoting at Rs 638.80, up Rs 10.30, or 1.64 percent on the BSE.
Market Updates: Benchmark indices erased all the early gains and trading flat in the volatile session.The Sensex was up 57.49 points or 0.12% at 48776.01, and the Nifty was up 23.60 points or 0.16% at 14657.80. About 1676 shares have advanced, 787 shares declined, and 121 shares are unchanged.
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