Market Recap for 11 May 2021-BSE/NSE

market recape

Market Recap

Nifty50: 14,850 β–Ό -91 (-0.6%) 
Sensex: 49,161 β–Ό -340 (-0.6%)

market recape

Following a weak start, the markets remained subdued throughout the day. The market breadth was negative, with 28 of the Nifty50 stocks closing in the red.  The Nifty PSU Bank (+1.1%) and Nifty Media (+0.7%) were the strongest among the sectoral indices today, while Nifty Financial Services (-1.2%) and Nifty Metal (-0.9%) were the top losers. 

Top gainersToday’s change
Coal Indiaβ–² 5.8%
NTPCβ–² 4.8%
IOCβ–² 4.3%
Top losersToday’s change
JSW Steelβ–Ό 3.3%
Hindalcoβ–Ό 2.9%
Kotak Bankβ–Ό 2.9%

Market Recap Here are the top stories of the day.  

Sugar stocks continue to rally

  • Tight global supply from exporters like Brazil and Thailand, coupled with the government’s favourable ethanol-blending policy, augurs well for Indian sugar manufacturers. Higher global prices offer domestic producers better export opportunities, while excess production of cane sugar can be used to produce ethanol.  
  • Amid these conditions, the stocks of Bajaj Hindusthan (+9.7%), Sakthi Sugar (+7.9%) and Simbhaoli Sugar (+4.9%) rose today. Meanwhile, Dwarikesh Sugar Industries, Dhampur Sugar Mills and Triveni Engineering have gained over 75% since the beginning of April. 

HFCL surges on multi-fold profit growth

  • Shares of optic-fibre cable maker rose 7.1% as the company reported a 10x YoY jump in net profit to β‚Ή86 crore. Its revenues more than doubled to β‚Ή1,391 crore. 
  • HFCL has a strong order book of β‚Ή6,875 crore and the company is optimistic about its upcoming opportunities in the telecom (5G), railways and defence sectors. The stock has gained nearly 44% so far in 2021.

Chambal Fertilisers posts strong profit growth

  • Chambal Fertilisers and Chemicals reported consolidated net profit for Q4FY21 at β‚Ή542 crore, up 169% YoY. Profit growth was supported mainly by lower material costs and other expenses. However, revenue from operations dropped 17% YoY to β‚Ή1,641 crore, owing to a dip in revenues from urea fertilisers.
  • For the full year, the company reported a 43% jump in net profit to β‚Ή1,747 crore and a 4.2% rise in operating revenue to β‚Ή12,719, due to an increase in sales of non-urea fertilisers. The stock closed 3.3% higher today but has been moving sideways so far this year.

JMC Projects back in the black

  • The construction and engineering subsidiary of the Kalpataru Group reported revenue from operations of β‚Ή1,392 crore in Q4. Along with the 42% YoY rise in revenue, the company reported a profit of β‚Ή40 crore
  • The company had suffered a loss of β‚Ή73 crore in Q4FY20 on account of a β‚Ή80 crore provision for loans given to the joint venture. Even after adjusting this, the performance in Q4FY21 is strong. The stock closed 1.8% down today, but has risen 23% so far in May. 

Market Recap

Closing bell

Despite extremely weak cues from most international indices, the Indian benchmark indices, although negative, showed resilience. Further, investor interest continued to remain strong in the midcap and smallcap stocks as indicated by respective indicesβ€”Nifty Midcap (+0.9%) and Nifty Smallcap (+0.8%) and This is a holiday-shortened week and critical inflation numbers will be announced tomorrow after market hours. Expect volatility to rise as the markets react to the weekly derivative expiry tomorrow and as they try to absorb the inflation data on Friday.

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