Relatively positive on equities versus bonds for next 6-9 months: Credit Suisse
Jitendra Gohil, Head-India Equity Research at Credit Suisse Wealth Management on Friday said that he is relatively positive on equity compared to bonds and other asset classes from a 6-9 months perspective. “We are going to see inflation rise from here onwards and globally also we have seen that the trend is towards slightly higher inflation going forward. So, we feel that in a rising inflationary environment, equity as an asset class is better positioned,” he said in an interview with CNBC-TV18. According to Gohil, the second wave of COVID will not have a major impact on the earrings as well as the economy. “We feel that this will be a small blip. We think that the way cases have risen substantially over the past few weeks, the cases will also fall sharply going ahead at least in the next 15-30 days. So, we think that from an economic perspective this won’t have a major impact. We think another 100-150 basis point cut on GDP estimates. But from an earnings perspective we don’t see that this is going to be materially impacting as localized lockdown and restrictions may have limited impact on the listed space,” he said. Read more.
Motilal Oswal on Cyient
- Given the COVID-19 situation, ER&D activity in key verticals (e.g., Aerospace and Defense, Transportation, and Semiconductors) witnessed a material slowdown in the past one-year. However, spends in Communications and Energy and Utilities have started picking up, while stressed verticals are on the verge of bottoming out.
- We expect a rebound in ER&D spending. The management’s strategy to leverage these spends, led by a refreshed GTM strategy, and increased focus on large deal wins should dwell well with its growth performance. We expect CYL to deliver 15% revenue CAGR over FY21-23E. This, along with the sustainability of a higher margin in the DLM business, should lead to a 28% EBIT CAGR over FY21-23E.
- Given the inline operating performance, we have kept our estimates largely unchanged. We maintain our Buy rating on attractive valuations. Our target multiple of 16x FY23E EPS takes our TP to Rs 810/share, implying an upside of 18%.
Alembic Pharmaceuticals | Th company has received final approval from the US Food & Drug Administration for its ANDA Doxepin Hydrochloride Capsules USP, 10 mg, 25 mg, 50 mg, 75 mg and 100 mg. The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD), Sinequan Capsules 10 mg, 25 mg, 50 mg, 75 mg, and 100 mg, of Pfizer Inc. (Pfizer).
Dr Lal PathLabs tells CNBC-TV18, social media posts on stopping RT-PCR tests across NCR are false. RT-PCR tests continue as per our capacity pic.twitter.com/oXfdsaA4q8
— CNBC-TV18 (@CNBCTV18Live) April 23, 2021
Venkat Jasti, Chairman & MD, Suven Pharma
There could be an opportunity to manufacture intermediates for vaccine. Our business is completely different from the vaccine type of business. We only supply some intermediates which may be required in vaccine preparation, this is the only opportunity we have which will take time. We are in talks with manufacturers for some intermediates which they will be using in the manufacturing process. The volumes are not great but at the same time technology is a little bit lengthy which we just have the opportunity to look into it based on the requirements they have.
Buzzing | Nazara Technologies shares rally 9% as co sees 84% revenue growth in FY21
The share price of Nazara Technologies rallied over 9 percent on Friday after the company said that its consolidated revenue in the fiscal year 2021 rose sharply by 84 percent to Rs 454.2 crore led by gamified learning and eSports segments. The company had reported a revenue of Rs 247.5 crore in FY20. “Gamified learning and eSports segments have not only demonstrated strong growth momentum in FY21 but have also laid the foundation for predictable growth,” Nazara Technologies said in a regulatory filing. On the operational front, EBITDA including share of non-controlling interest for FY21 witnessed 470 percent growth over FY20. Read more.
Oil, metal price movement will play out in inflation, says Avendus’ Andrew Holland; likes metal space
The rise in oil, as well as metal prices, will play out on inflation, said Andrew Holland, CEO of Avendus Alternate Strategies, on Friday and added that the long-term picture looks bright for the metal space. Speaking in an interview to CNBC-TV18, he said, “Long-term picture looks bright across the whole metal sector because of changes and copper is going to be quite big because of electric vehicles (EVs). So there are a lot of moving parts and changes in the industries which will benefit the metal sector but infrastructure will be the big one which will push commodity prices higher.” Holland believes that upgrades in the short-term are less likely across all sectors including the banks. He prefers economy facing stocks going forward since that’s where the value is. “So rather than being in defensives, which is a short-term play on the market, I would look at those sectors which would benefit from opening of the economy,” Holland explained. Read more.
Caplin Point | The company’s subsidiary Caplin Steriles Ltd has been granted final approval from the United States Food and Drug Administration for its ANDA Prochlorperazine Edisylate Injection USP, 10 mg/2 mL (5 mg/mL) Vials presentations, a generic therapeutic equivalent version of (RLD), COMPAZINE Injection, of SmithKlineBeecham Corporation, USA.
Market Watch: Jay Thakkar of Marwadi Shares and Finance
- State Bank of India (SBI) is a buy with a stop loss of Rs 328 and a target of Rs 352
- TVS Motor Company is a buy with a stop loss of Rs 522 and a target of Rs 565
Power Grid shares rise 4% on plans to launch Rs 7,700 crore InvIT IPO
Power Grid Corporation of India share price jumped over 4 percent in the morning session on April 23. The electricity transmission company is preparing to launch the first ever InvIT (infrastructure investment trust) IPO by a state-owned firm, on April 29, marking a landmark deal for the Indian capital markets.
Good time to accumulate banks, financials; wary of inflation: DSP Investment’s Sambre
Vinit Sambre of DSP Investment Managers is positive on the pharma sector, as the companies are making the right investments to tap opportunities in India and globally, he told CNBC-TV18. He is also looking to accumulate shares of banks and financials despite the near-term challenges for the sector. “One of the segments which we may take as an opportunity will be the banking and financials. However, we believe that the next few months will be challenging and it’s uncertain how long will this last, but these are the segments which we may want to accumulate,” he said. More here
Buzzing | Tata Elxsi shares rally over 9% to hit 52-week high after strong Q4 earnings
The share price of Tata Elxsi jumped more than 9 percent to a fresh 52-week high of Rs 3,340 apiece in early trade on Friday after the company reported strong March quarter earnings with a sharp increase in its net profit. The design-led technology services provider said its net profit in Q4FY21 increased 40.3 percent to Rs 115.16 crore from Rs 82.08 crore in the year-ago period. Its revenue from operations rose 18.1 percent to Rs 518.39 crore from Rs 438.88 crore, YoY. The company’s EBITDA margin was at 32.4 percent, while it reported net margin at 21.9 percent. Read more.
Market Watch: Ruchit Jain, Angel Broking
- Buy SBI Life with a stop loss below Rs 894 and target of Rs 995.
- Buy Motherson Sumi with a stop loss below Rs 208 and target of Rs 220.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The markets are still maintaining above the 14,200 levels. This level is crucial and if we break this on a closing basis, we could slide down to 13,800-13,900. If those levels don’t hold, the next level would be 13,600. Since the upside is capped at 14,550-14,600, any rally up will be utilized to short the market.
No panic buying like last time; labour migration lower: Parle exec
As India reels under a fierce second wave of COVID and lockdown fears loom, Mayank Shah, Senior Category Head of Parle Products said that rural demand scenario is far better than urban. “Rural, while cases are going up, the scenario is still much better compared to urban. The reason being that population density there is much lesser and at any given point in time if you see cases surging in a particular pocket, it can be contained to a certain village which in total scheme of things is not big unit in terms of demand,” he said in an interview to CNBC-TV18. Shah also said that unlike last year, there is no panic buying. However, there is mild pantry loading of biscuits, he said. More here
Market Watch: Chandan Taparia, Derivative & Technical Analyst, Motilal Oswal Financial Services
- Buy Tata Steel on a small dip with a stop loss at Rs 900 for a target of Rs 930-970.
- Buy Deepak Nitrite with a stop loss at Rs 1,560 and the stock can move towards Rs 1,680 levels.
- Sell Godrej Consumer with a stop loss of Rs 723 for downside target of Rs 670 levels.
JUST IN: Powergrid Infrastructure Investment Trust files for IPO, comprised of fresh issue of up to Rs 4,993 cr
RBI approves appointment of Atanu Chakraborty as Part-Time Chairman of HDFC Bank
HDFC Bank, the country’s largest private sector bank said that the banking regulator Reserve Bank of India (RBI) has approved the appointment of former Economic Affairs Secretary Atanu Chakraborty as its Part-Time Chairman. In a regulatory filing on Friday, HDFC Bank said, “The Reserve Bank of India (RBI) has approved the appointment of Atanu Chakraborty as the Part-Time Chairman of the HDFC Bank for a period of three years w.e.f. May 5, 2021, or the date of his taking charge, whichever is later.” CNBC-TV18 was the first to report in December 2020 that the Former Economic Affairs Secretary Atanu Chakraborty could be the next Chairperson of HDFC Bank. More here
Global Markets: Asian shares shake off US tax worries, cryptocurrencies plunge
Akey gauge of Asian shares rose on Friday, supported by gains in China and a decision by the European Central Bank to maintain stimulus, while investors largely shrugged off the impact of a possible US capital gains tax hike. In Asia on Friday MSCI’s broadest index of Asia-Pacific shares outside Japan shook off early small losses to rise 0.3 percent. Chinese blue-chip shares rose 0.93 percent, supported by consumer staples, health care and financial firms. Hong Kong’s Hang Seng rose 0.93 percent and Seoul’s Kospi added 0.1 percent. Japan’s Nikkei stock index slid 0.7 percent. Modestly firmer equity markets contrasted with ructions in cryptocurrencies as investors fretted over the impact of tax changes. Bitcoin’s rout deepened, dropping below the USD 50,000 level to a low of USD 48,338.37, its lowest level in nearly seven-week. More here
Market Watch: Nischal Maheshwari, CEO Institutional Equities & Advisory, Centrum Broking
On Pharma
Aurobindo Pharma remains our top pick followed by Dr Reddy’s Laboratories (DRL) and Sun Pharmaceuticals.
On Nazara Technologies
If you are a long-term investor, you should hold on to this stock. Maybe wait for one quarter, where some disappointment comes in and the stock corrects, you should be a buyer. My view about all gaming companies, eCommerce companies is they should be a part of your portfolio but wait for a quarter where they show you a weaker earnings basically or the market shows you some amount of correction and then you should be willing to buy.
Morning market quote from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
“The resilience of the market (Nifty down only 1.9% in April, so far) in spite of the health crisis and worrisome news relating to bed & oxygen shortages and travel bans announced by many countries, would appear surprising. But it is important to appreciate the fact this bad news will not impact the earnings of companies in sectors that are doing well like IT, metals & pharma. FIIs continuing in the sell mode is a worry for markets in the short run. The underperformance of the bank index (down 4.5% in April, so far) emanates from the potential hit to GDP from the second wave, which the market had not factored in last month. Also, there is portfolio churn away from banks in favour of IT, metals & pharma. If this persists, it will present buying opportunities in the leading private sector banks.
Since equity investors are sitting on big profits, partial profit booking and moving money to fixed income may be considered even though fixed income returns are low. Heightened uncertainty warrants partial switching to fixed income”
Opening Bell: Sensex opens over 200 points lower, Nifty below 14,350; banks, IT stocks drag
Indian indices opened lower on Friday following losses in global peers and as a continuous spike in coronavirus cases and stricter restrictions fuelled worries of more economic pain. Losses were mainly led by banking and IT stocks. At 9:18 am, the Sensex was down 217 points at 47,864 while the Nifty fell 75 points to 14,331. Broader markets, however, outperformed benchamrks with the midcap and smallcap index up 0.4 percent each. On the Nifty50 index, Powergrid, Tata Steel, JSW Steel, Grasim and SBI Life were the top gainers while Tech Mahindra, Infossy, Bajaj Finance, HDFC and HDFC Bank led the losses.
Fitch affirms BBB- rating, says COVID surge may delay India’s economic recovery
Fitch Ratings on Thursday said the resurgence of COVID-19 infections may delay India’s economic recovery, but won’t derail it, as it kept the sovereign rating unchanged at ’BBB-’ with a negative outlook. It projected a 12.8 percent recovery in GDP in the fiscal year ending March 2022 (FY22), moderating to 5.8 percent in FY23, from an estimated contraction of 7.5 percent in 2020-21. Fitch had in June last year revised outlook for India to ’negative’ from ’stable’ on grounds that the coronavirus pandemic had significantly weakened the country’s growth outlook and exposed the challenges associated with a high public debt burden. India enjoyed ’BBB-’ rating since the upgrade in August 2006, but the outlook has oscillated between stable and negative. More here
IPO market likely to stay bullish in April-June 2021 as 20 cos file DRHP
Initial public offerings (IPO) activity in India jumped massively in the January-March period of 2021, fuelled by ample liquidity, robust demand and investor appetite. On the BSE and NSE, there were 17 IPOs in Q1CY2021 as compared to 1 IPO in the same period last year and 10 IPOs in Q4CY2020. As regards SME markets, there were 5 IPOs in Q1 2021 versus 11 and 9 IPOs in Q1 2020 and Q4 2020, respectively, representing a decrease of 55 percent and 44 percent as compared to Q1 2020 and Q4 2020 respectively. India ranks ninth globally in terms of the number of IPOs year-to-date (YTD), according to EY India IPO Trends Report: Q1 2021. More here
