Market Recap From last day (8-4-2021)

By Prarit

Nifty50: 14,819 ▲ 135 (+0.9%)
Sensex: 49,661 ▲ 460 (+0.9%)
Nifty Bank: 32,991 ▲ 489 (+1.5%)

In the news

Godrej Consumer sees stable growth in Q4

  • For Q4, Godrej Consumer estimates a 30% YoY growth in its India business. The company cited price hikes along with strong volume growth across its household insecticides, soaps, and hair color segments for its performance. 
  • According to the company, Covid has changed consumer behavior toward personal and home hygiene and it expects this to be a strong focus area going forward. The stock closed 1.4% higher yesterday and has traded nearly flat so far this year. 

Government sanctions PLI for white goods

  • The government has approved a production-linked incentive (PLI) scheme of ₹6,238 crore bags for the white-goods segment.  
  • The scheme will focus on component manufacturing and will be applicable to manufacturers of air conditioners and LED lights for five years. Although the news came after market hours, shares of companies like Dixon, Crompton, and Voltas rose between 2 and 4% yesterday.

Graphite electrode makers see demand surge

  • Pick-up in steel production in India and globally augurs well for graphite electrode (GE) makers viz. Graphite India (+9.7%) and HEG (+18.3%). Graphite electrodes are the main heating element used in the steel-making process. 
  • Recently, major steelmakers in India have announced strong sales growth in Q4. This would not only help to normalize electrode inventory but also create fresh demand leading to better plant utilization for the GE makers. Shares of Graphite India and HEG have gained 115% and 132% so far in 2021. 

IMF raises India GDP growth forecast

  • In its World Economic Outlook, the International Monetary Fund (IMF) said it expects India’s GDP to grow at 12.5% in FY22. It has raised its forecast from 11.5%, which it had predicted in January 2021. 
  • At this rate, India would not only be the fastest growing country among emerging economies but also the only country to register double-digit growth. For FY23, GDP growth is pegged at 6.9%. 
Top gainersTop losers
Nifty PSU Bank
▲ 1.8%
Nifty Bank
Nifty Auto
▲ 1.6%
Nifty Media
IndicesToday’s movement
Nikkei 225 (Japan)▼ 0.4%
Hang Seng (Hong Kong)▲ 0.8%
SSE Composite (China)▲ 0.1%
Dow Jones (US)
(6 April)
▲ 0.2%

After a gap-up opening, the markets saw strong buying interest for much of the day. Despite some selling pressure in the last hour, the Nifty50 remained in the green, with 31 of its constituents closing higher.

Among the sectoral indices, buying was strongest in Nifty Metal (+3.9%), followed by Nifty IT (+1.1%). Meanwhile, the Nifty PSU Bank (-0.8%) and the Nifty Bank (-0.6%) were the top losers today.

Top gainersToday’s change
JSW Steel▲ 9.5%
Tata Steel▲ 5.3%
Shree Cement▲ 4.7%
Top losersToday’s change
Sun Pharma▼ 1.1%
IndusInd Bank▼ 1.1%
SBI Life▼ 1.0%

Buying spree continues in JSW Steel

  • Shares of the steelmaker rose for 9 days in a row and gained over 40% in that period. In Q4, its crude steel production grew 6% YoY. Interestingly, the company’s plant capacity utilization increased to 93% in Q4 from the low of 66% in Q1 of FY21.
  • Reports suggest that the company has taken a hike in steel prices to the tune of ₹4,000-4,500 per ton for April deliveries. The stock closed 9.5% higher today. 

Cement stocks surge on demand forecast

  • Thursday witnessed a rally in cement stocks, with strong gains seen in Ambuja Cements (+5.8%), Shree Cement (+4.7%), Ultratech Cement (+4.1%), and JK Cement (+3.3%).
  • The buying interest comes on account of a double-digit growth forecast in the cement sector during Q4FY21. As per reports, growth is a result of the relatively weak Q4FY20, along with demand in semi-urban and rural housing and the government’s thrust on infrastructure activities. The latter two factors could also rub off on demand in FY22.    

Fertilizer stocks rally on strong outlook

  • Shares of fertilizers makers such as Deepak Fertilizers (+12.1%) and Rashtriya Chemicals & Fertilizers (7.6%) and National Fertilizers (11.7%) surged today on the expectation of higher demand. 
  • A bumper Rabi harvest and good monsoon during the Kharif season have boosted demand for fertilizers. With a forecast of normal monsoons, rural demand is expected to remain strong, which augurs well for the fertilizer industry.

Cadila gets USFDA nod for multiple drugs 

  • Cadila Healthcare has received USFDA approval to sell its Ibrutinib capsules, a drug used to treat cancers. The company will sell two versions of the drug—70mg and 140mg—which have a combined market of $778 million (approx ₹5,800 crore)  
  • Further, the company has also gotten the regulatory nod for its Macitentan tablets, used to treat high blood pressure. The stock gained 2.0% today.