Expect Godrej Consumer growth in double digits, says Nisaba Godrej after Sudhir Sitapati’s appointment

Godrej Consumer is the big mover post its fourth-quarter earnings and the appointment of new MD & CEO – Sudhir Sitapati. Shares of the company zoomed nearly 25 percent after the company reported a 59.13 percent increase in its consolidated net profit for the fourth quarter ended March 2021. The stock after starting the trade on a bullish note further rallied 24.86 per cent to Rs 894 its 52-week high on BSE. Nisaba Godrej, Chairperson & MD, Godrej Consumer Products spoke to CNBC-TV18 on the quarterly performance. Watch full interview here.

Kalpataru Power able to maintain double-digit margin despite rise in commodity prices, says management

Kalpataru Power stock is trading higher post its Q4FY21 earnings. Detailing the numbers, Amit Uplenchwar, Director of the company said that they have been able to maintain double-digit margin despite rise in commodity prices and the pandemic. “We have done that primarily by managing our working capital prudently. We have also managed to bring down our costs and we have looked at areas which probably would have gotten overlooked over the good years and that is why we have been able to give a good performance on both standalone and consolidated basis,” he said in an interview to CNBC-TV18. He said that they will also be able to book the same amount of orders as they did in the last financial year. “We might do close to Rs 16,000 crore at KPTL consolidated level order booking for the current year,” he said. Read here.

Bharti Airtel | Airtel Africa has posted 38.9 percent rise in its Q4 net profit at USD 132 million versus USD 95 million, QoQ. The underlying revenue was up 0.4 percent at USD 1,038 million against USD 1,034 million and operating profit was down 2.7 percent at USD 319 million versus USD 328 million, QoQ.

Yash Gupta Equity Research Associate, Angel Broking

As we earlier caution the retail investors that 15,050 will be a very important level for the Nifty to break for the start of a new bull run. But Nifty is again in the profit booking zone and seeing the selling pressure. Yesterday both DII & FII net sold off around Rs 1,000 crore. We expect Nifty to trade in a range of 14,200 on the downside and 15,100 on the upside. If Nifty is able to cross these levels then only our view will be changed. Option sellers can look to sell strangle on Nifty option, as we expect Nifty to trade in rangebound.

Indian equity market to move higher on supportive global backdrop: Mirae’s Rahul Chadha

Mirae Asset Global Investments expects the Indian market to move higher as the global backdrop remains supportive, said Rahul Chadha, chief investment officer of Mirae Asset Global Investments. “It is highly likely that we trend higher from here because the global backdrop is very strong from an economic recovery perspective and key economic regions like the US, Europe bouncing back well and it’s a reflationary trade and with that reflationary trade the Indian market benefits,” Chadha said in an interview with CNBC-TV18. He further observed that markets been fairly resilient in light of the second wave and hopes is that this wave peaks out in the next 3-4 weeks. Once that plays out then we can see interest coming back to domestic cyclical, he added. Read here.

Godrej Consumer change of guard: Here’s what brokerages make of Sudhir Sitapati’s appointment

Godrej Consumer Products Ltd (GCPL) surged 15 percent in trade after the company announced the appointment of Sudhir Sitapati as the new MD and CEO of the company effect from October 18. The joining is six months away but the stock has done more than what it has done in the last twelve months already on one day. Sitapati is a Hindustan Unilever Ltd (HUL) veteran, he was there for 22 years and has been responsible for creating clusters of growth out there including the latest biggest one, the GSK Consumer acquisition. Brokerages are rather upbeat on this appointment. The brokerage firms see this as a potential rerating opportunity for a stock. Watch here.

Market Watch: Pankaj Murarka, Founder, Renaissance Investment Managers

On GCPL | GCPL had a period where they were underperforming the sector and lost market share in some of their businesses in the last few years. But with a credible guy like Sudhir Sitapati coming in, that outlook can change considerably and that is what markets are drawing comfort from.

On markets | We continue to remain positive on markets, but one has to be slightly more selective in terms of investing from hereon because the low hanging fruits have been taken out.

On sectors | While we like consumer discretionary, we are slightly more selective there. We are also positive on lot of segments of the economy – what we call contact economy which has been impacted because of lockdown. So we like retail companies like fashion and apparel retailer, hotel stocks, and travel and tourism stocks. We like autos as well.

Nish Bhatt, CEO & Founder, Millwood Kane International

The love for the yellow metal among Indians is no secret, and buying gold on Akshaya Tritiya is considered auspicious. But this time around gold buying may get affected due to the outbreak of the second wave of COVID in cities in India. It is advisable for investors and gold buyers to not venture out during these times and opt for digital/paper gold instead of physical gold. Gold prices are on an up move, helped by the weak jobs data, softness in the USD, a broader view that the interest rates will be low in the US for a long time. Gold prices are trading near a 3-month high in international markets, domestically gold prices are hovering near the Rs 48,000/10 gm level. The vaccination drive, control over the number of cases, and lockdowns internationally coupled with the movement of the USD will drive prices of gold moving forward.

Kalpataru Power able to maintain double-digit margin despite rise in commodity prices, says management

Kalpataru Power stock is trading higher post its Q4FY21 earnings. Detailing the numbers, Amit Uplenchwar, Director of the company said that they have been able to maintain double-digit margin despite rise in commodity prices and the pandemic. “We have done that primarily by managing our working capital prudently. We have also managed to bring down our costs and we have looked at areas which probably would have gotten overlooked over the good years and that is why we have been able to give a good performance on both standalone and consolidated basis,” he said in an interview to CNBC-TV18. He said that they will also be able to book the same amount of orders as they did in the last financial year. “We might do close to Rs 16,000 crore at KPTL consolidated level order booking for the current year,” he said. More here

Perspective on Gold on account of Akshaya Tritiya by Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services

“Akshaya Tritiya is considered an auspicious day to buy gold and usually we see buying some demand ahead of it and also on that particular day. Overall, the MCX gold price continue to exhibit a strong solid show after a big blowout of the US Nonfarm payrolls data. After hitting a more than two weeks low of 46462 MCX Gold made a reversal thereafter to currently trade around 47900. The Immediate resistance is at 48250 and then at 48360. So consistent trading above 48400 will open doors for 49000-49700. However, support is located at 47330-47000-46500.”

Dishman Carbogen Amcis shares fell over 15% after company reports loss in March quarter

Shares of Dishman Carbogen Amcis fell over 15 percent on Wednesday after the firm reported a loss of Rs 135.02 crore for the March quarter. The firm posted a profit of Rs 50.19 crore in the previous quarter year ago.Sales for the firm, however, rose 3.36 percent to Rs 529.32 crore in the quarter ended March 2021 as against Rs 512.11 crore during the previous quarter ended March 2020. For the full year, the firm reported a net loss of Rs 165.13 crore in FY21 versus a net profit of Rs 158.51 crore in FY20. Sales also declined 6.44 percent to Rs 1912.03 crore in the year under review as against Rs 2043.60 crore during the previous year ended March 2020.

Oil climbs on drop in US oil stockpiles, solid demand outlook

Oil prices rose on Wednesday, extending overnight gains, after industry data showed a drop in U.S. crude inventories, which reinforced OPEC’s robust demand outlook, and as the shutdown of the biggest U.S. fuel pipeline headed into the sixth day. U.S. West Texas Intermediate (WTI) crude futures rose 21 cents, or 0.3%, to $65.49 a barrel at 0013 GMT, adding to a 36 cent rise on Tuesday. Brent crude futures climbed 15 cents, or 0.2 percent, to $68.70 a barrel, adding to a 23 cent gain on Tuesday. “Crude oil gained as investors continue to bet on a bright outlook for demand. A weak U.S. dollar also lent support,” ANZ Research said in a note. More here

Mahindra & Mahindra shares dip; estimates Q1FY22 sales volume lower by 15-20%

Automobile major Mahindra & Mahindra Ltd said its sales volume for the quarter ended June 2021 is estimated to be lower by 15-20 percent as compared to the year-ago period due to the second wave of the coronavirus pandemic. The revenue and profitability will also be impacted in line with the fall in volumes. However, the company is taking various cost optimisation measures to limit the adverse impact, M&M said. “The rampant spread of the second wave of COVID-19 and lockdowns enforced in various states/parts of the country coupled with disruption in the supply of oxygen for industrial use, demand and supply for vehicles and tractors is expected to be impacted temporarily,” M&M said in a regulatory filing on Tuesday. At 10:10 am, the shares of Mahindra & Mahindra were trading 1.42 percent lower at Rs 764.60 apiece on the BSE. More here

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. Read more.

Market Watch: Ruchit Jain, Equity Technical Analyst of Angel Broking

– Buy Federal Bank with a stop loss below Rs 78 and a target price of Rs 89.

– Buy Hindustan Aeronautics with a stop loss below Rs 974 and a target price of Rs 1,100.

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

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.

Market Watch: Deven Choksey of KRChoksey

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

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. More here

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. More here

Markets caught between recovery and inflation fears; action likely to be stock specific, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services

“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.