Stock Market Live Updates: Sensex down 400 points, Nifty below 14,750; banks, IT stocks drag

Stock Market Live Updates: Indian indices were trading lower on Wednesday dragged mainly by losses in banking, financial and IT stocks. Meanwhile, weakness in global peers as worries over rising inflation in the United States also weighed on investors amid concerns that it could lead to earlier rate hikes and higher bond yields globally.

Gold rate today: Yellow metal falls near Rs 47,500 per 10 grams; experts suggest buy on dips

Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Wednesday as the international spot prices weakened amid a rise in the US treasury yields and a firm dollar, analysts said.

Indian economy may recover in H2, but not robustly: Moody’s

Global ratings and research firm Moody’s has downgraded India’s growth outlook sharply by as much as 440 basis points. Their original number for gross domestic product (GDP) growth for the current year was 13.7 percent and now it has come down to 9.3 percent. The cut follows the lockdowns and restrictions resulting from the second wave of coronavirus. However, it has maintained the rating — Baa3 negative. Speaking in an interview with CNBC-TV18, Gene Fang, associate managing director-sovereign risk group at Moody’s Investors Service said India is not the only country with mobility, but we expect a recovery in the second half of 2021.

The Nifty is keeping above the 14,700 level – we will threaten the current uptrend if we close below 14,700. The situation would need to be reviewed then. Until then the trend continues to remain up and traders can strategically find ways to enter the market on dips. The markets can scale higher to 15,200-15,250.

On Godrej Consumer When the unlocking starts taking place, you should see relatively better results. Hopeful of better times as far as Godrej Consumer is concerned.

On PSUs are great business but they require a very strong management to continue and deliver. On Bajaj Hindustan It continues to show better performance going forward on two counts. We remain confident that this is going to be over-rewarding season for many of the sugar companies.

Only buyers in Godrej Consumer; shares hit 52-week high as Q4 profit jumps 59%

Godrej Consumer Products Ltd (GCPL) shares were locked in at a 20 percent upper price band in early trade on Wednesday after the consumer major reported a sharp 59 percent jump in March quarter net profit. The stock price hit a 52-week high of Rs 859.10 apiece on the BSE after surging 20 percent. The FMCG major posted a consolidated net profit of Rs 365.84 crore for the fourth quarter of fiscal 2021, registering a 59.13 percent growth over Rs 229.90 crore in the year-ago quarter. The company’s consolidated revenue from operation during Q4FY21 rose 26.8 percent to Rs 2,730.74 crore from Rs 2,153.80 crore in the year-ago period.

April AMFI data: Net equity inflows see a dip, SIP collections drop

Mutual Funds (MFs) see a dip in net equity inflows in April. Monthly systematic investment plans (SIPs) also fall versus in March. The assets under management (AUM) this time around has grown a little over Rs 32 lakh crore. The total assets of inflow in the debt schemes have crossed Rs 1 lakh crore mark. Liquid funds have seen almost Rs 41,000 crore of money coming in. Overnight and Money Market funds have also done well, each getting in close to about Rs 20,000 crore.

Indian economy may recover in H2, but not robustly: Moody’s

Global ratings and research firm Moody’s has downgraded India’s growth outlook sharply by as much as 440 basis points. Their original number for gross domestic product (GDP) growth for the current year was 13.7 percent and now it has come down to 9.3 percent. The cut follows the lockdowns and restrictions resulting from the second wave of coronavirus. However, it has maintained the rating — Baa3 negative. Speaking in an interview with CNBC-TV18, Gene Fang, associate managing director-sovereign risk group at Moody’s Investors Service said India is not the only country with mobility, but we expect a recovery in the second half of 2021. He said improving the current account position will support India’s ratings, but the recovery even in the H2 will not be robust enough.

Markets caught between recovery and inflation fears; action likely to be stock specific,

“Globally the markets are now caught between two opposing forces – economic recovery and inflation fears. While the former is positive the latter is negative. Going forward, the market trend will depend on which of the two triumphs over the other. Today’s inflation data from the US is important. The YoY inflation in the US is expected to come around 3.6%, pushed high mainly by the base effect and therefore may not sustain. But if the MoM inflation data shows a surge, the dovish Fed will be forced to take it seriously. The fact that the market is a bit apprehensive of rising inflation is reflected in the US 10-year yield rising above 1.6%. So this space has to be watched. Meanwhile in India Q4 results continue to be good with better than expected performance from mid-small-caps. Market action is likely to be stock specific based on results”

Opening Bell: Sensex opens 200 points lower, Nifty around 14,800; banks, IT stocks drag

Indian indices opened lower on Wednesday dragged mainly by losses in banking, financial and IT stocks. Meanwhile, weakness in global peers as worries over rising inflation in the United States also weighed on investors amid concerns that it could lead to earlier rate hikes and higher bond yields globally. At 9:18 am, the Sensex was down 223 points at 48,938 while the Nifty lost 47 points to 14,803. Broader markets, however, outperformed benchmarks with the midcap and smallcap indices up 0.5-1 percent each. On the Nifty50 index,  NTPC, ONGC, Tata Motors, Coal India and Powergrid were the top gainers while HDFC, M&M, HUL, Shree Cement and HDFC Bank led the losses

 Sugar stocks sweeten investors’ wealth; may sustain performance:

Whether covid or not the basic commodity consumption does not decrease and on the other hand it may increase. In this categor Sugar plays a pivotal role along with rice, wheat, dhall etc., So sugar stocks show a promising trend.

Sugar stocks have witnessed a robust rally led by rising international prices for the commodity, and high demand amid supply constraints.

In April 2021, sugar prices saw a spurt to Rs 33-34 per kg, reflecting higher demand.

The rally in sugar stocks is likely to sustain given the overall strength and optimism in the industry backed by a number of factors including a tight global demand-supply situation, favourable policies, and push for higher ethanol blending in India, an analyst said in a report.

Sugar stocks have witnessed a robust rally led by rising international prices for the commodity, and high demand amid supply constraints.

The shares of sugar companies such as Andhra Sugars, Balrampur Chini Mills, Dalmia Bharat Sugar and Industries, Dhampur Sugar Mills and Dwarikesh Sugar Industries, among others have surged more than 50-130 percent in 2021 so far.

Sugar production in Brazil and Thailand, the two largest sugar exporter in the world, is expected to be lower at around 7-8 MMT each as compared to last year given the challenges faced due to dry weather.

“This would result in higher opportunities for domestic exporters as the surplus inventory for the current season is expected to be around 9.5MMT,” analyst said.

Further, the shortfall in global sugar production has resulted in a sharp increase in global prices of sugar to more than 16.5 cents/lb, which is likely to sustain.

Also, if global sugar prices increase from 16.5-17.5 cents/lb to 19-20/lb, then a higher amount of sugar is expected to be utilised for conversion to ethanol, leading to a further increase in global sugar prices.

In April 2021, sugar prices saw a spurt to Rs 33-34 per kg, reflecting higher demand due to the summer season. Going forward, prices are expected to sustain at higher levels, added the brokerage.

Among sugar stocks, Motilal Oswal has a ‘buy’ call on Dhampur Sugar Mills with a target price (TP) of Rs 350, Balrampur Chini Mills with a TP of Rs 380, Dalmia Bharat Sugar and Industries with a target of Rs 345, Andhra Sugars with a target at Rs 500 and Dwarikesh Sugar Industries with a TP of Rs 65.

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