In volatile market conditions, benchmark indices like Nifty 50 can recover from intraday lows through sectoral rotation, where energy and heavyweight stocks (such as Reliance) often lead the rebound while consumer discretionary sectors (like FMCG) may underperform. The recovery is typically supported by positive global data points including crude oil price stabilization, bond yield moderation, and favorable international futures movements. Midcap and smallcap segments often outperform during recovery phases due to their higher elasticity and sensitivity to risk-on sentiment.
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Stock Market Wrap: Nifty Holds 23,650, Reliance and Energy Stocks Shine | Closing Trades | ET NowAdded:
muted trade on the street as the benchmark hovers around the 23,600 mark but has managed to become absolutely flat. Broader indices also move in tandem with all sectors seeing mixed moves. Oil and gas auto stock surge while consumer durable FMCG stocks correct.
Indo gained after subsidiary Novellis reported stronger EITA per ton helped by improving scrap spreads and better operational efficiencies. Management also flagged resilient aluminum demand and faster than expected recovery at the Ospago plant.
Apollo hospitals is expected to post a strong quarterfall led by robust hospital growth, rising occupancies and expansion in pharmacy operations.
Meanwhile, Graphim is likely to see narrowing losses supported by growth in its paint chemical and VSF businesses.
BAT electronics slipped despite posting strong quarterfall in FI26 growth with revenue and EITA beating estimates and order inflow surpassing guidance.
Meanwhile, Prince pipes rallied after robust volume growth, margin expansion and record quarterly sales volumes.
PM Modi met Giorgio Maloney in Rome during the final leg of his five nation tour with the two leaders holding informal discussions over dinner and visiting the iconic coliseum. The visuals from the meeting quickly went viral online highlighting growing warmth in India Italy ties.
Putin arrived in Beijing for high level talks with Xi Jinping as Russia and China deepen strategic ties amid global geopolitical tensions. The visit comes days after Trump met she underscoring intensifying global power realignments.
Hi there. Good afternoon. You're watching closing trades on ET now. I am Senishi Sha and it's been a quite a day of of trade for us because take a look at the nifty we're absolutely flat right now and it's been a stellar recovery of about 120 to 130 points from the day low on the spot basis. So Nifty50 now at 23 628 thereabouts. You have the broader end the midcap has inched over to the green very nominally but the small cap index still continues to reel under pressure by about 3/10en of a percent.
is the nifty bank that's still under pressure by about 210. But yes, we've seen some recovery coming in across the board from the day low. Sectorally, it's Nifty oil and gas that continues to do really well. Nifty energy, auto really and realy and defense are in the green.
On the flip side, there's some pressure on the media index along with some FMCG, metal, IT, banking, finance, PSU names, PSU banking names that is with pharma being absolutely flat. That is what the market is looking like right now. But let's refocus and interact with the management of Mankind Pharma and let's pull up that slug because you do have the Nifty Pharma that's absolutely flat right now. But want to see what Mankind Pharma is doing in trade. It's a 3 and a half% jump on the back of some very good numbers. Just to go through their numbers, the revenue is up about 12%, net profit has come in close to 560 crores. That's also up about 32% and there's been some solid margin expansion at 27% this time around. So looking good. It's a it's an all round beat coming in while the revenues in line with our expectations the ebitita ebitita margin and the net profit have done much better than what the street was estimating to try and understand what has worked out for the company in the quarter gone by and what's the outlook going ahead let's welcome on board Mr. Rajiv Jana the managing director and vice chairman of mankind pharma Mr. Janea, hi good afternoon and thank you so much for your time. You know it's been a stellar quarter for you and you've also reiterated that FI27 will be better than FI26 across businesses and you've given an EITA margin target of 25 12 to 26 12%. Talk to us about what are going to be some key factors that ensure that FI27 continues to grow and outperform the kind of moves that we've seen in FI26.
uh we basically belong to very optimist kind of a uh promoters. We always feel that future will be better and whenever something has ever happened wrong in mankind we have taken very bold steps corrected the things. So last few quarters uh we were basically correcting certain things which were not happening right on the ground level and uh results are basically outcome of good working.
We have done that certain things we have learned that if your chronic segment sales share is better you have better profits better growth consistent growth that we are doing actually I mean if you just look at last few years of chronic share sales of mankind you'll find that in 24 it was 35.2% then 36.6% and this year it is 38.5%. So every year there is a big jump as far as a chronic is concerned uh and hopefully in next few years time we just want to reach to 50% kind of a uh chronic share sales in our mankind that we are doing actually and certain corre corrections we have done so hopefully things will be much much better.
>> Okay that sounds good and the future also looks rather optimistic for your company Mr. So Jane, help us uh understand you've guided a capex of about 6 to 7% of revenue for FY27. Can you help us understand where this is going to be used in terms of is it manufacturing, is it going to be R&D or any M&A integration on the cards?
>> This basically is going for manufacturing. I mean when we acquired BSV uh they had only one factory in Amber. So we don't want to put all the eggs in one basket. So keeping that in mind we are just uh building a new uh from scratch to ground up uh a biological plant in Voda and there this money would be going.
>> Okay. And since you've spoken about BSV Mr. Janea that platform is all set to expand super specialty and complex products can you provide us a timeline on product commercialization and what's going to be the target mix of the complex products in FI27?
When you look at this uh BSV side, every product is complex, every product is difficult, every product is biological.
I mean to develop any product of uh BSV, I mean it will take many years. So it's a very different game uh because mankind never had these uh differentiated products these difficult to make products and that's one reason BSV was required and u going forward we expect from BSP side doubledigit growth high double-digit growth in domestic side and export side we feel that uh this year onwards uh BS will come to its own and we always believe that uh giving a bit conservative uh outlook is always better and surprising the market has always been our forte.
>> Understood. And let's talk about your consumer healthcare segment that has grown grown 20% in quarter 4. Your key brands like Manforce, Preger News, they've been driving growth for you.
What are the next channels or tactics that you're going to be deploying to sustain this high growth that we've seen in OTC?
>> In OTC side, I mean uh we've launched many more products. Guess is one which is growing very fast uh giving huge competition to the competitor actually the one product we acquired from Penatia is Neimolate that two basically we are putting thrust on and apart from this modern trade and e-commerce right now driving tremendous growth in our OTC side the growth right now I mean last quarter was more than 56% from the e-commerce and modern trade last quarter so we hope that uh uh we will have a double digit growth uh from uh OTC side.
>> Okay. And uh double digit growth from OTC is also something that you're targeting. So that sounds good. And you know we were talking about capex earlier. Let's come back to that. You plan to invest up to 500 cr rupees in your arm mankind Medicare to set up a biotech facility in Vodudra in Gujarat.
what strategic rationale and expect um what are some of the expectations that you have from this facility in terms of when this will become operational and how much revenue contribution will this have and any rough timeline if you can help us with >> this basically is for the regulated market actually uh and hopefully uh within 12 to 18 months time this will start giving us uh production as well >> that sounds good and Mr. A GLP1 you know that has been making the buzz in the entire pharma market. It started overseas. You've had players who've been ready for for that deadline to expire and you know you've had a lot of competition in the GLP1 space as well. You've also mentioned GLP1 in the call. You've said that GLP1 adjacent and supporting therapies as uh will be a focus area for you going forward. What is your strategy to grow your presence in this market and how are you looking at existing players within this market?
We've always been uh very contrarian. We don't really I mean follow the crowd and right now there's a mad rush as far as the GLP1 is concerned. Everybody's talking about GLP1 and this is not a OTC kind of a product. Uh this will uh take some time. Had we had the advantage of launching our GP1 one month or two months earlier than rest of the companies, we would have definitely put all our thrust over there. But in gold rush I who wants uh who who becomes a winner those who basically come with adjacent things. So in our case we are just offering our patients our doctors the complete therapy along with vitamins, minerals, protein and GLP1 as well. So uh we are uh taking our own sweet time uh looking how other people will just play their uh game and we are basically thinking very strategically for that not going as everybody's doing.
>> Okay noted and lastly Mr. Let's talk about your international business. As has been the case with most companies and you know most sectors this earning season, a lot of companies, international businesses have been um weighed upon heavy by the Middle East disturbance. Talk to us about what is your outlook on exports and how is that shaped up so far?
>> See mankind we have always maintained one thing that we will not be exporting any vanilla products, any generic products. Our philosophy has always been exporting difficult products, complex products where we can command uh consistent growth, good profits. So right now only 14% export in the total kitty of mankind happens and we expect double digit growth in in export side as well.
>> Okay. And are you looking to grow this 14% ahead or are you comfortable with this kind of mix between domestic and exports?
uh it's always be I mean uh depending upon opportunity depending upon if we have right products uh but uh don't forget that we have always been a domestic focused company uh so our focus our major time would always go for the domestic side >> on that note Mr. Janea, thank you so much. It's been such a wonderful conversation. It's been a stellar quarter for you and good luck for the quarters to come. Thanks so much.
>> Thank you very much.
>> Thank you. Okay, viewers. So, that was the management of Mankind Pharma talking about their growth plans ahead and they expect good growth to sustain in FI27.
We've spoken about the capex plans and the stock is also doing really well on the back of some very good set of numbers coming uh from the company 3% higher slightly more than that on that stock right now. But shifting focus, that was one stock that's in focus.
Let's take it across to AI who's joined us on the show to take us through a list of all the other stocks that are in the spotlight right now. Either on the back of earnings, you've got some brokerage reactions as well as some individual news and updates. So AI, take it away.
>> Let's discuss some stocks that are trending in news. Starting from BLS International Services, they've posted a very strong set of numbers with revenue up 17% and Evida also up 17%. The management has said that major contracts are up for renewable presenting an opportunity of 1 to2 US billion dollars.
They've also partnered with Simfi to automate the visa application process and launched voice bots for Spain and Ireland customers in 15 different languages. Let's move on to Godavari powers which has also posted a very good set of numbers with revenue up 10% and Aida up 40%. So what led to the strong revenue growth? It is because of the products being sold at a premium pricing. The company has also received approval to expand its ion mining capacity up to 6 million tons and the company has also stepped up its extraction process. The raw material prices talking on the co side has also uh reduced since the global cooking supply has been in over supply due to which the prices have corrected sharply.
Moving on to dredging corporation has posted a very good set of results with the revenue up 70% and the Aida margins have increased by 2.5 times. The company has guided that the top line target for FI27 would be 1,500 crores which is an increase of 24% yearonear. The management says that the investment opportunities in uh infrastructure in shipping and the supplementary segments will be very beneficial for the company.
Talking about Prince pipes has also pushed a very good set of results with the revenue up 18% and the profit up at 56 crores. The volume has grown 23% in Q4. This is on account of channel restocking due to an increase in PVC prices. The FI27 guidance as previously given by management is that there will be a double-digit growth in the volumes with the margin of in the range of 10 to 12%. Moving on, let's talk about Apollo micros systemystems which has posted a very good set of results with the revenue AIDA and PAT at record high. The company has received approval to manufacture ammunition and this license is a valid for a lifetime. They are also expecting some direct orders from the Ministry of Defense.
>> Okay, AI, thanks so much for taking us through that. And in fact, very interestingly, AI mentioned Apollo Micro as the last stock in that list of all the stocks he was talking about and we're seeing some good moves on that stock as well. And in fact, we also spoke with the management earlier in the day to decode their quarterfall numbers and the outlook going ahead. Listen into a slice of that chat.
>> Yeah. So we have been quite vocal that you know uh there are um lot of production orders that are kicking in yearon-year basis actually. So most of our revenue gets recorded with the development and uh combination of development come production projects and as the pure production projects kicks in you know there is a little improvement and spread in the you know margin levels at the habitat level. So that's that's how you know you're u you know witnessing all this you know increase in the margin uh rates and uh o over the entire spread both on the level as well as on the pat levels you know this is something which would be sustainable uh going forward we are expecting much more you know large cap production orders you know this is definitely sustainable >> okay that's the word coming in from the management of Apollo micro on that note it's time to slip into very short break On the other side, we'll begin talking with experts, try and decode the technical construct of the market, and also take you through some fundamentals that you should be watching out for. So stay tuned, and we'll be right back.
back with closing trades. Just taking a look at the market move right now. We continue to be absolutely flat. In fact, we've picked up on some steam right now.
23650 is a level that we have managed to hold on to for now. Let's see what happens. We've got about 1 hour and 10 minutes of trade left. So, we'll see what the road looks like ahead. Before we take it across to Canal and get a view on the technicals, let's uh bring on board Meeril who's joining us with yet another basket of stocks to watch out for and keep on your radar in today's trade. Merrill?
>> Yes, these are a few stocks that we've seen buzzing in today's trade. Starting first with PI Industries. The company reported a weak set of fourth quarter numbers and performance in turn has missed the street estimates across the all the metrics. Exports and domestic business both for the company have seen a degrowth on a year-on-year basis.
Revenues have come down 12 and a half% and profitability has fallen down 40% on a year-on-year basis for PI industries.
Moving on, Zidus Life Sciences in the pharma space is seeing a lot of positive traction in the markets. This is on the back of positive commentary coming in from the management side after the company reported its quarterly results yesterday. Uh in the management con call the management highlighted that h that the revenue growth for the full year FI27 is expected in the high teens with India business uh expected to outperform market growth by another 200 to 400 basis points. Brokerages as well have uh put out a positive view on the company.
Noama has upgraded its hold rating its uh its reduce rating up to a hold with a target price increase uh seen as well.
They have outlined that the strong underperformance has come in uh strong performance that the company has seen is likely from the margin surprise which was not expected in the company's fourth quarter results. Moving on, Shelly Engineering is also in focus. Revenues for the company have grown by 8.7% but profitability has taken the cake this time around. It's up almost 40% on a year-on-year basis. Now, this is because of an improved product mix with the company clearly specifying that they've shifted away from low margin consumer plastic products and towards more high precision engineering as well as healthcare devices. This high uh margin profile is expected to improve profitability for the company even going forward. So, Shell Engineering is seeing a good day in trade today. Moving on, the last name on our list today is Balaji Amin after the company's commenced commercial production of Dimethile ether at its unit 4 Solapur plant. Another positive uh signal for Balaji A means and yes these were a few companies that we've seen buzzing in trade today.
>> Okay. So these are some of the stocks in focus most of them in focus on the back of earnings reactions. We've got Kunal Bhotra who's joined us in the studio.
Kunal, hi good afternoon. um give us your reading on the kind of recovery that we've seen in the market now. In fact, 2 minutes ago we were at 23650.
We're now at 23675. So seems to be picking up steam and holding on to that about 1 hour left. Do you think we can manage to close in the green?
>> Yeah, it looks like uh Sne because I think it's a fabulous recovery and specifically I think today because the handover for the index was almost like a 200 point down tick for the gift nifty.
We opened uh almost 500 points down on the bank nifty. But to you know see this kind of a recovery tells you that the market uh is uh still into a a fine zone for itself uh you know there are couple of data points of course on the back of which we've seen this kind of a recovery one is that crude oil prices have ebed off from $1011 to $108 the last I had seen there has been a very mild cool off in the US 10 year of course it's very mild in the context of the kind of rise which you've seen for the uh uh you know the bond yields and specifically on Dow futures also which has turned into the positive side I think the last I had seen was 90 points 100 points up for the Dow future. So I think on the couple of on the back of all of these data points is where you're seeing uh the index coming back into a reprieve but we will still call this as a more of a short-term bounce. Uh you know the breakout for the index could happen once we cross back about 23,750 mark on the spot levels. uh uh I think that's going to be a very very important litmus test for the index for us to try and call that maybe the near-term trend has changed for the index from being maybe sluggish consolidative to maybe on the upside.
>> Okay. So that's the reading on the index canal certain sectors that are in focus right now and it's it's largely a very mixed bag. You've got FMKG and IT that are under pressure. IT that flip-flop continues but FMCG about 7/10 of a percent lower. Your view on the index?
So I think uh this is a good time to try and look at uh selective FMCG stocks because I would believe that after a decent rise from the March lows for the FMCG index when we were sub 46,000 on the nifty FMCG index uh very recently I think we clocked 51500 52,000 on the FMCG index. So it's almost like a 10% plus kind of a gain. We are going to a patch of consolidation. This is the third consecutive week uh for consolidation for the FMCG index. And ideally in this scenario I think one should start looking at or nibbling uh few names you know from this pack. I think Colgate for example is something which looks attractive. Nestle has been one of the spectacular charts over the last uh you know 3 4 weeks post results.
The stock has changed its texture quite dramatically from 1250 1270 levels to 1400 plus mark. The last I had seen you seeing good stability coming back into HUL. DA has shown very good recovery from those earlier levels of 440 450 mark. So I think on the back of this the entire FMCD pack is going through a revival phase and I think at the current juncture I would look at uh selective buying for the uh FMC pack.
>> Okay. So selective stock picking is uh the word of advice coming in from Kunal and FMCG. We've also got Deepan Meta of Alexir Equities joining us on the show.
Deepan, hi good afternoon. Good to be speaking with you. Um give us a sense of how you're reading the market. You know, yesterday at this time the move was completely opposite. We held on to the gains for most part of the day and then you had the expiry pressure that brought the market lower. Today we've been in the red for most part of the day and now we're seeing a little bit of a recovery.
How does one navigate a market like this?
>> Yeah, good afternoon and thank you for having your show. That's a tough one to answer. Yeah, >> because there's just too much of news flow at least on the earning season side and then there's stalemate when it comes to the Iran war. So I guess you to look at stock specific um situations and companies come with good results we are working on them seeing if the earnings were sustainable and companies where the results have been poor. If you're holding those shares then we are considering exiting out of those positions or sometimes if a good company is there and it has gone into bit of a problem situation for the short term then you know you could look at longerterm prospects and because of the correction look at adding that to your portfolio. So right now I think at least what we are looking at is more a stock specific action and the whole market move will only happen once there is a resolution of the Iran war >> right and Deepan amid uh fluctuating um crude prices now we've just heard from Donald Trump a few hours ago in fact late last evening where on one hand he said that you know he's planning to ramp down the war in Iran very soon right now he said he's held back his attack at the request of his Gulf counterparts and this uh consequent effect that we've had on crude prices. How would you be looking at the OMC basket back home in light of all of this playing out?
>> I think it's very uncertain times for the oil marketing companies uh and already there's a bit of a backlash about increasing the petrol and diesel prices and I think more will have to be done over there. Uh they're also in a wait and watch mode to see how this war plays out. There's hope that if in the next one week or so if a resolution is found and a deal is signed between Iran and US then the oil price will come down maybe $15$20 or so and then the increases may be much less rupee also may rally but lot of ifs and buts over here so from an investor's perspective most oil marketing companies are kind of avoid till there is more certainty but I would say that the entire oil and gas sector uh needs a great deal of attention and invest investment from the government and private sector and I'm certain that the next few months we'll see a lot of government push towards exploration and towards also you know kind of a volume of production and companies which are engaged in upstream oil like oil Indiac they may be given additional you know support um you know fiscal support as well or even otherwise by way of lowering of royalty which they have done so that they take up more exploration activity and that may open up a whole new set of companies which benefit from oil exploration.
>> Okay. And uh so that's on the entire oil and gas pack and it's the nifty oil and gas index that's the top sectoral gainer as we speak. Within that you've got names like HPCL that's doing well 3% higher but Kunal yet again there's about a 2.7% uptick on Reliance as we speak.
We've been talking about this stock for a few days now, but talk to us about what are the further upside levels from here because this stock has been a consistent gainer over the last couple of trading days.
>> Yeah, conser but you know staying over the last I think two weeks 3 weeks Reliance has uh you know behaved in a very different manner uncanny to its earlier behavior of being a little bit more sideways and a very slow gra slow and a gradual mover. In the last two or three weeks the stock has been uh showing almost like a V-shaped correction. So you know prior to that say mid of April somewhere the stock formed a low around 1300 1350 mark and from there there was almost like a 10% jump on Industries in a matter of I think five or seven trading sessions at that point of time and post that the moment the stock reached those 1450 levels we saw almost like a V-shaped reversal for the stock downside where it retested you know this range of 1300 1330 for Alliance Industries. So it's a very different kind of a trend for the stock price where it's behaving a little bit more volatile. I would probably sense that this is because of the kind of geopolitical as well as the market scenarios we are seeing and various asset classes moving in a uh you know in similar kind of a fashion. But I believe 1300 broadly is a very good support for Reliance Industries over the short to medium term and I think till the time the stock is holding on to that 1300 mark dips towards 1300 mark like what we saw in the last couple of days 1330 levels should be taken as good buying opportunities.
Right. Okay. So that's the take on Reliance Deepan. Talking about uh some more sectors that are in focus. We've spoken about oil and gas and we've spoken about FMCG on the losing side.
How are you looking at auto? That sector is also trying to pick up some steam in trade today. It's tube investments, TVS Motors, Bajage Auto that have been doing well. But over the last couple of days, every time auto is gaining, it's the auto ancillary names that are doing well. Would that be your favorite basket within the entire auto pack or is there something else that you're liking at the moment?
>> Yeah, I think that auto is still right in the way of GST cuts. But uh if this war continues for longer and we see higher petrol diesel prices, maybe higher interest rates and overall dampening of the consumer sentiment, then certainly auto sales will get affected. They are in a way discretionary in nature. So and also the base effect is unfavorable for the auto industry. So I would be a bit cautious there and uh basically just look at lowering the expectations from auto companies for the next four to six months or so. So that's as far as auto is concerned. But yes, I think opportunities opening up for auto answer companies especially companies which are focused on e- vehicles and you know we uh with usual disclosure that we and our clients are interested invested companies like Sona Comtar where almost half the revenues come from very critical components which go into electric vehicles they may have better prospects and I was just seeing on your screen that Sam Vardana also has come with a very good set of numbers and that stock also can certainly be looked looked at because we are seeing that their focus also is not on engine parts and is more and more on the uh they're kind of neutral to EVs and all the acquisitions are also playing out well for them and a cyclical upswing in global auto market cannot be ruled out.
So like that I think there are nice selective plays within the auto ancillary. Another small cap company which comes to mind usual disclosure is SGS Enterprises. It is into auto decoratives and that's also a very interesting company and very good set of numbers coming through over there. Great dynamics in terms of getting a higher content per vehicle be it two wheelers or four wheelers.
>> Right. That's on Samaradana Madas and we've got the earnings fine print. The revenue has come in at 34,000 cr 34,300 crores. That's up about 9 and a quarter%. The revenue is in line with our estimates. What's exceeded our estimates is the PAT and the EITA number. You've got the net profit at close to 1500 crores. That's up 46%. The EITA is also higher by 25%. And margins have expanded to 10 a.5% from 9.2% this time last year. So looking good for that one. A a spike seen on the stock when the earnings came. A little bit of a cool off from there. But nonetheless, it's still a 2% uptick on Samarana Madas. Kunal a chart check on this one.
Yeah, this looks attractive because uh you know the stock over the last short-term wise I was looking at uh you know the near-term charts 1332 is a triple top kind of a pattern for the stock price but it also looks like that the stock is approaching this 132 mark with a pattern of making higher lows. So when the stock usually forms this kind of a pattern we generally expect the stock to break out on the upside. My uh uh you know sense is that the stock should break out towards at least a 140 to 145 range which means potentially another 6 to9 rupees on the upside is what one could look at uh from a short-term trading perspective. Just looking at the market texture right now and let's pull up banks, the Nifty Bank and what it's up to in trade today because ever since SBI's numbers, we've seen that trend of uh at least the favoritism towards PSBs actually break out or rather break down I should say private banks in any case weren't quite participative ever since the March lows.
But Deepan, what is your own sense?
Afternoon. Firstly, ever since SBI's numbers, the market seems to be quite off. Banks, even though they're still cheap, if the market has to move up, banks have to do well. But that doesn't seem to be translating at all on the screen.
>> That's right. I think with 30% above a weightage in the Sensex, Nifty, banks are a very important component and our view on the banks is slightly different and I would say a bit cautious. The reason for that is that banking industry becoming like a red ocean and we are seeing that large cap banks the larger banks the top four five banks their growth rates have stagnated last few quarters or so and they benefited from lower provisioning but that may not continue in the future and also a lot of competition is coming in from uh NBFC's new generation lenders and on the savings side they're facing pressure from investors going into mutual fund industry so I I think it's going to get very tough for the banks and they may get volume growth but the net interest margins will be under pressure. I would be extremely uh careful when it comes to banks and for that matter you know if the Sensex nifty are going to get impacted then so be it I think we are interested in individual portfolios and the better way to play the lenders would be through the NBFCs especially multi-product NBFCs.
Kunal, is that the tilt on the charts as well? Are NBFCs looking better poised as as opposed to banks? And by banks, I mean both PSBs as well as the private lot.
>> Not really. In fact, Aisha, over the last uh you know, one week or so, we did a relative strength study where we looked at the you know, the sectors and which are the sectors which are kind starting to show signs of strength or underperformance and apparently you know the private sector banking stocks or rather the financial services uh as an index uh you know underperforms uh you know the private sector banking names and I think in that sense you look at the charts for Shiram Finance, Chola Finance, Pach Finance, Vincer etc. Many of these stocks have uh either gone through a mild correction or they've underperformed in the last uh few days and uh I think looking at the charts so far it looks like that both the ends of the financials uh are struggling. So you know it's neither that the private sector banking stocks are stronger or very very strong than the financial services name and uh you know neither it's on the up on on the reverse side where you're seeing financial services the pocket being extremely underperforming. It's just that I think both these sectors broadly are into their own uh you know inertia trend on the downside. You don't see too many stocks participating on the days when the markets are showing signs of big upside and especially on the days when the markets are showing signs of correction. You generally see many of these stocks participate for themselves on the downside. So that itself tells you that both these sectors banks as well private sector banks as well as financials I think are into an underperforming spree.
>> Okay. And that's your take on financials. with kunal from the overall market share your picks with our viewers what's looking good at this point >> so uh you know in fact balas is something which I would highlight at the current levels the stock breaking past above that 132 barrier which is the important uh resistance or the triple top which I was mentioning earlier so we would look at a target of 138 on the stock stop loss to be kept at 128 the second would be Raymond now that's a very interesting chart because after weeks of rather months of underperformance the stock in the last you know a couple of weeks has shown a very good price recovery. It's confirmed a swing breakout breaking past about 540 levels. So, we look at 575 as a swing target. Stop loss to be kept at 525.
>> Just looking at the market mood right now while we're uh looking fine as we speak right now. 23671 is where we're currently at. BEL under pressure. Taste is down. ITC is down.
Eternal is down about 244 thereabouts is where the stock is. Some of the Adani names are seeing a little bit of a cool off today. ICS bank, HDFC bank and forces TCS not participating in the move at all today. But on the flip side, look at the strength and reliance. I think that itself is providing a good cushion to the index. Uh some of the technology names today you're seeing Vipro play a catch up for instance. Hindo of course is very strong after Novelis's uh earnings. Eminem, Interglovation, Bajage Auto that entire stack is holding out very well in trade. We'll take a break.
On that note, we'll come right back and continue our market discussion with Canal Botra and Deepan.
back for closing trades right here on 18 now. Just looking at the broader market texture and it's quite interesting that you know even in the sp of volatility that the markets have seen in the last two weeks. It's the broader market which is looking much better or more resilient one can say uh than what the uh large caps have been up to. Look at the power India right now. It's holding up 6%, Zemens is higher by 4 and a.5%, CG power, mankind of course you just heard out from the management. ABB higher by 3 and a half%. So much livelier when it comes to the broader markets and this irrespective of the fact that you're seeing very concentrated selling patterns across the EMS sectors. I mean look what's happened with a with a canes with an SGS uh with a Dixon etc in concentrated chunks. So yes, that part of the market definitely looking well.
Look at a BHL. It's shot up to 406 levels, one and a half% higher for that stock and of course you know I can go on with the list of movers from within the broader markets but these are largely the top performing ones. Nagra Chetty as well joins in on the show right now.
Nagra hi afternoon how would you compare the uh you know the broader market moves the mid and the small cap index viz the nifty and does it seem like uh mid and small caps are where there's better resilience?
Yeah, obviously rightly said uh a midcap broader markets are outperforming the benchmark right now. To tell about the Nifty, Nifty has been stuck in a range around 23800 at the higher levels uh 23 300 250 at the lower levels and it is typical range mode action symmetrical pattern has been forming over the last three four sessions and having bounced back from the lower levels there is a higher possibility that Nifty could advance some more uh towards 238 and 900 levels before tumbling down again from the higher levels. But on the midcap and small cap segments they are yes uh they seems to have completed its uh their downward corrections bounced back very well. More upside is likely and uh in mid and small cap segments I'm expecting this out outperformance is likely to continue for at least uh for the short term.
>> Okay so that's on the broader end of the market. Uh Deepan talk to us about within the broader end is there anything that you're liking in terms of a divers diversified play within a sector for example consumption. What I mean is if not staples then maybe some discretionary categories. Is there any subpocket within a larger basket that's looking more attractive right now?
Yeah, I think that's a good way to approach the markets that in a large industry if there are certain players doing something different providing exceptional service then certainly they may be considered for example in the auto industry with usual disclosure we and our clients are interested something like a car trade which you know is into a portal for handling pre-owned vehicles within the auto industry that's much better play within insurance there's a company called Medi Assist which does insurance processing and that's a great play on health insurance and like that.
I think down the line if you go from sector to sector there will be certain interesting plays companies which are in the same sector doing something different and therefore you know uh because of their innovative business model they may sustain and they may get higher growth rates like you know the banking industry although our view on banks is generally a bit cautious but then there is PTM there's PV fintech which is into loan kind of arranging for loans and they get commissions for new loans which they've generated there's this BLSE also which is another interesting company. So like that I think within the sector if you find companies which are in fact uh you know providing services which are different on which the industry you can get a complete play those can certainly be considered >> right okay Deepan great to have you on the show and thanks as always for giving us insight on uh you know lot many stocks so a lot of food for thought but um dredging cop that uh particular share has risen about 13% backed by a strong Q4 earnings head. In fact, the company is quite confident of sustaining growth momentum. Avi joins in with the highlights of how their earnings have been.
Drinking Corporation of India, which is a key player in the ports and many time infra, has posted a stellar set of numbers with the revenue growing 70% and the AIDA margins growing by two and a half times. They've posted a profit in this quarter versus a loss in Q4 FI25.
The company aims for a top line of 1500 crores in FI27 and is confident of sustaining this growth momentum. The plan to solidify the position in India's dredging segment. The company also maintained their project delivery timelines despite operational challenges. The company sees opportunities from the investments being made in the ports, shipping and coastal infrastructure. Management is also confident of overcoming all the operational and economic challenges through rise in their efficiency.
Okay, Avi, thanks so much for taking us through that. So, that's Regging Corp.
That stock is doing really well in today's trading session. Up about 10% as we speak on the back of some really solid quarter for earnings. But shifting focus to grassim, we've got the earnings fine print from that company and the revenue has come in at 11,774 cr rupees. Of course, this is on a standalone basis. It's an uptick of about 32% and slightly ahead of our estimates of about 10 and a half,000 cr rupees. So looking good on the revenue front. The EITA has also come in at 540 cr rupees versus our estimate of 461 cr.
So again a beat over here too. EITA margins have come in at 4.6%. We were expecting 4.3. So largely in line slightly better and they've also seen an exceptional loss of about 82 crores this time due to which they have a net loss number of 163 crores. We were expecting this loss to be uh slightly lesser but because of this exceptional number this is also not looking all that bad. And on the back of that, you've seen that sharp spike come in in Grassim stocks a few minutes ago when the earnings were declared. It's cooled off slightly from that high, but nonetheless holding on to gains of about half a percent as we speak. So that's the earnings fine print on Grassim. Uh Nagrat, what's your take on the cement space and how dosa stack up versus a grassim?
>> Yes, cement space are looking positive.
Uh recently we have seen consolidation movement. If you look at grassim what we can observe is a rangebound action till now that spurt after the result it has witnessed technically the chart setup are looking looking positive for the most of the cement stocks even grassim as well and uh this consolidation pattern eventually uh could break up on the higher side around 2970 2980 level once it breaks out of the consolation or the choppy band then I'm expecting this to move towards the next resistance of around 3,100 levels Okay, that's that on ultr techch and you know how the entire cement pack of course is looking. PI industries that's your big laga today. You're also seeing some weakness on a beel. Canes continues to see some pressure 2 and a quarter% lower today and got Phillips is down about almost 3% as we speak. I think it came out with its earnings yesterday and that stock is seeing pressure of about almost 3 odd% or so. Kunal, how are these uh tobacco related stocks doing?
You track you know Gro uh Gotfrey quite closely right? Yeah, Godfrey, ITC, I think these stocks somehow over the last uh four five days has been a little uh cor into a corrective mode. But then I think you know when we talk of this uh in terms of the March lows many of these stocks have shown very good recovery.
For example, Godfrey was at know sub 1900 mark moved up towards 2400 2500 levels very recently. So that was a decent 20% 25% jump uh in the stock price in the last one month and now you're seeing slight bit of profit booking mean reversion or you know mean retracement kind of a scenario over here. So I think this could be a good opportunity for someone who missed out on the previous leg to try and accumulate further for Godfrey Phillips uh even for ITC of course ITC is a very low beta stock so one has to be a lot more patient over here but then I think for Godfrey this is a good zone where traders could look to accumulate. M >> okay that's that on ITC as well as Godfrey but what else is happening in the market as we begin the last lap of today's trade joins in for 360 >> thank you Aisha uh the market's holding off 23600 levels with a lot of putr writing happening at 25 23500 and 23600 level uh the nifty up nearly a quarter of a percent or but you know you're seeing a discount at at this point in time on the on the nifty futures and that's primarily because of of the some some of the uh you know the rollover which is happening from the current month to the next month which has already begun there. Open interest up nearly half a percent for the nifty spot uh as we speak. Uh Nifty Bank is another stock index where we have seen some rebound coming in uh up nearly 2%. There we have seen some unwinding of the positions especially some of the long positions are getting unwound 1.62% 62% down in open interest which is which is there and the premium of nearly 15 143 uh uh uh at this point. uh if you look at the entire composition you have private sector banks like SGFC and ICC and index end uh you know which are dragging the index down as well but at the same time you have the PSU banks which are up today where where we are seeing some long buildup happening in SBI bank uh bank of Barola uh and there's a short covering happening in PNB and bank of India as we speak look at what's happening in call and put writing at this point in time three strikes which are most important at this point in time 23400 23500 and 23600. Uh a lot of put writing happening in these three strikes and that gives you a good indication in the distribution chart where the uh 23600 is holding firm and supporting the index uh on the from uh from falling below that level. We tested the 23500 in the morning hours and we are back above 23600 in the afternoon. Uh look at look at what's happening in the futures market. We have you know Hitachi which is seeing a long build up. Semens is seeing a long build up and CG par uh interestingly all the capital goods companies are active in today's trade five four to 6% jump across the board in the capital goods space which is which we are seeing in the futures market as well among the futures losers you have uh PI industries Godfrey Phillips and IC approve where we have seen some long positions getting unbound uh you know stock PI is down six nearly 7 and a half% Godfrey and IC approve is down over uh 2 2 and a half% there. Open interest gainers includes stocks which is PI where we have seen a open interest build up of nearly 20% on the back of shorts which is getting added. BHL is seeing a long build up and man farmer after the earnings is seeing a nearly 17% jump in open interest in today's trade. Open interest losers include open uh you know BAC where where we are seeing a short covering. Nama is seeing a short covering and cold India uh is seeing a short covering at this point in time. The most active uh stock option is Reliance 1360 may call. Uh there's an unmount of of nearly 5.5 lakh contracts happening. The stock uh hovering just above the 1360 level up 36.7 in today's trade in futures. Uh if you look at the put side as well, there is the 1300 May put which has added nearly 6.4 lakh contracts in today's uh uh today's trade. uh as I said the premium is down nearly 7.4 to 2.6. So Reliance is the most active holding up the index in today's trade and most uh you know biggest contributor to the index gain as well in today's trade there. So uh Nifty holding up 23600 level. Uh back to you Aisha.
>> Right. Okay. That's the Nifty just uh holding on to some of those key levels.
U maintaining 23,650 currently in trade. uh just taking a look at what's happening within broader markets u you know we were just talking about the entire energy space look at a CG power power India zemens even Hitachi energy which did uh come off quite a fair bit um I think post its earnings but now today at least you're seeing a very solid 5 and a half% move in this particular stock holding up very well and then of course there's ABB which is going very strong another 4% of a dash coming in here as well Nagrash on the charts power India uh zemens CG Power, ABB, Hitachi Energy, anything looking good or looking like it has further headroom to go?
>> Yes, CG Power is the one stock that has been continuously moving up over the last few months. The higher top high bottom formation on the chart itself is indicating the strength of the upside momentum. What we can observe last couple of weeks is the completion uh sustained downward correction healthy downward correction has formed a higher bottom somewhere around 8005 80010 level and the stock has bounced back very well from the lower levels. The volume has started to break uh expand during the breakout in the stock price and RSI shows positive indication. I think this is the candidate for more upside and 920 930 is going to be the next hurdles to be watched for this stock price in the next two weeks.
Okay, that's the take coming in on CG power. On that note, we'll step into a very short break. Be right back with more on the other side. We're going to be getting into a conversation with Mr. Dvas Shwatil of HFC Security. So stay tuned and we'll be right back.
Back with the market right here on 18 now or closing trades rather. Winding down on trade right now as we speak.
Just half an hour or so left to go. 63 points up in the green is where we're currently at. Just want to revisit what's happening with the global markets because I think you know keeping a close eye on uh the elevated bond yields is extremely critical. Uh while even for the European markets, it's a bit of a mixed start. It's not as bad as how Asia was when we came into trade. And mind you, while Asia definitely uh picked up a tad bit from where it was when we came into trade, but still you've seen Shanghai of course recover quite a fair bit. It eventually closed in just marginally soft. Half a percent was the uh dip that you had for Hong Kong. But m markets like Japan where you've seen that spike in uh the bond yields that's where you've seen maximum pain. Say 750 points lower is where the Japanese nicke closed in for the day. Europe like I said much better but again you're seeing a bit of a mixed bag there. Marginally higher for the stock 600. The DAX footsie is a little bit in the red. The CAC is higher by 210 off a percent and the footsy MIB as well. Important to keep a close eye on what's happening with the S&P futures as well because after that huge amount of volatility and weakness last night this morning again uh there were indicative trends of some more follow-through weakness but fortunately um as traders now awaiting Nvidia numbers you are seeing the S&P futures now tick higher. In fact they're up in the green now. So recovered all of that lost ground 210 of a percent higher for S&P. NASDAQ is higher by about half a percent and it's now breaking into the green even for the Dow futures. So little bit of uh you know relief definitely at work when it comes to that. Even Brent uh it's dipped about almost 2% actually. So some amount of relief is also coming in from the oil markets. It's now sub 110 and uh NX is currently floating around that 102 mark and there also you're seeing a dip of about almost 1 and a.5% play out but we've got Dvash Vakir from HTFC securities too joining in on the show right now Dvash hi afternoon what is it that you're making of the market construct amidst all this uncertainty what is the right strategy for investors >> so uh investors need three things Aisha right Now uh first of obviously the cash in the portfolio the uh money to deploy second is the conviction conviction in the ideas conviction in the long-term story and the confidence that the uh all these disruptions which are there are temporary eventually the long-term India story will sustain so cash ideas convictions and courage is required to deploy and I think those investors who will deploy capital in such uncertain time eventually we'll reap benefits of uh investing now >> right okay hi Dwash good afternoon how are you looking at the valuations in the market right now do you believe the softness that we've seen makes it attractive or uh does it make for a good case to buy into certain uh baskets of equities right now or do you believe there is still some more valuation correction that's needed after which perhaps equities will start looking more attractive >> well I think we have gone past that point in the March knows we have already uh fallen to a level where which will which were quite attractive. So um if you look at just at the valuation I think uh um we were trading at about 23 times uh last year hardly any growth 56% growth was there while valuations were high from those uh levels we have uh fallen uh we expect on aggregate around 1250 rupees per uh earnings in nifty shares. So we are trading around uh 20% 20 times or so which is quite reasonable and lower than the long-term average and top of it we are expecting 12 to 13% growth in the nifty aggregate earnings.
So I think valuations have uh come to a level where we see that the uh opportunities are there obviously it is not across the board a raging bull market. You'll have to be stock specific and sector specific to identify those opportunities which will give you returns. But uh I think it is time to gradually deploy capital and it has been since uh March end the April was one of the best years in many years many uh years April month and I think that uh bullishness will come back once we have little bit of correction which we are passing through. So I think this is a as good as any time to deploy capital.
>> Okay that's interesting as good as a as good a time as any to deploy capital right now. Now Dash, on that note, if you were to be a fresh buyer in the market right now, where would you be parking your cash?
>> So um obviously we want to look at growth and growth at a reasonable price where there is valuations which are in favor. Um during the show you've talked about uh power, renewable space especially cables and wires those are the ones which are showing strong earning momentum. uh banks, NBFCs, capital market plays are there where we see a lot of opportunities and where numbers are either in line with the estimates or higher than the street estimates. Um it has been legard and their primary disappointment has come in. But tactically for next 3 months I think uh from underweight level it is time to also come to a equal weight level for IT stocks. I think there also tactically we see opportunities. So u I think uh u power pharmaceuticals uh banks and NBFCs a little bit of it these are the areas where we are looking to deploy capital where we are finding good opportunities >> interesting within pharma again is it CDMO GLP1 where's the opportunity >> right so as you hit the nail on the head GLP1 is going to be a big opportunity and also the erosion in the generic prices in US has also come down. So earlier we were worried about exporters out of India. I think that segment is also uh now stabilized. So those um MNC companies operating in India are also their valuation has come down. So these are across various segments in pharma we are finding opportunities and as you said GLP1 is also a big opportunity where we should look for ideas >> right. uh they were just coming back to the point that you were making on it.
Can you help me understand why are you now looking at it from an equal weight lens? Uh is it only because of the valuation correction that we've already seen given that some of these IT stocks are trading at massive discounts to their 5year averages or do you believe that now we're at a point where it can only go one way upwards in terms of AI adoption and deployment? help us understand what's helping you or what's uh leading to this rerating uh in the IT basket uh in your view.
>> So u it's more of a tactical call where we think that the valuation has become so attractive that there is possibility that these stocks will give us 15% 20% kind of bounce in next 3 to 6 months.
Longer term as you mentioned the business model of many IT companies are going through a major change a disruption earlier from a effort based uh time based uh valuation uh the contracts now obviously it is outcome based contract and many companies which are larger companies will take time to restructure their uh business models but that's where also opportunities are there for the smaller IT companies who can actually are nimble in business they will grab the opportunities of uh implementing such uh AI projects uh configuring these AI for enterprises uh as per their requirement. So uh longerterm midcap and small cap IT companies uh for a 2 to three years perspective we must look at it at such lower valuation for larger companies for institutional investors who are willing to deploy capital I think uh it is time for them to come to um equal weight in the index for IT companies I think they have come to a level where they have bottomed out >> okay that's quite an interesting take hold on to that thought lots more to talk about with your view on it. But the US Treasury yields, they've surged uh quite sharply with the 30-year bond yield now crossing 5 and a quarter% for the first time since 2007 as escalating West Asian tensions and soaring crude prices reignite inflation fears across global markets. Rising oil prices, ballooning US fiscal deficits and heavy uh government borrowing are driving a global bond sell-off. Mitali is here from our research desk uh with more insights on how this uh pattern is building up.
>> Right. So if you see the global bond markets are actually seeing pressure following the rising tensions that we are seeing in terms of the Middle East conflicts and for perspective the US 30-year Treasury bond yield have actually now climbed to 5.27 27 which is the highest levels if you see since 2007 which was the pre- global financial crisis periods and since the wars have begun we have saw a sharp rise of around five 58 basis points in these 30-year bond yields uh that was in less than a 3 months uh that we have seen these price uh these yields rise also the 10-year yields have actually sharply surged to now 4.67%.
So what is driving the sell off in the US one market? So markets are actually reacting to a powerful combination both geopolitically and also the macro headwinds that are causing this.
Firstly, the escalating Iran related tensions are actually pushing the oil prices higher. Secondly, investors now fear that higher crude prices will reignite the inflation pressures globally and also the concerns around massive US fiscal deficits and heavy treasury borrowing are further adding pressure on the bond markets. At the same time, the expectations around the federal reserves have also slipped uh dramatically. Just a few months ago, markets were increasingly looking ahead for three price uh three rate cuts by the Fed this year, which is now sharply uh turned around while traders are now increasingly watching for a price uh for a Fed rate cut hike this year. Uh if you see the crude oil impact, the brand crude has actually rallied nearly 16% in just one month. While since the war began, the crude prices have surged nearly 51%. And while year to date if you see there has been a sharp spike of around 81% in the crude prices that spike is actually becoming a major inflation risk for the global markets but this uh pressure in the US bond markets is not only limited to American markets. UK 30-year guild yields if you see they are approaching to now 6% while the German long duration bond yields are at their highest levels since 2011. So across the markets investors are seen to be aggressively selling the sovereign debt. The concerns it remains very clear that the higher bond yields which will raise borrowing cost will compress valuations and also will challenge the risk assets going forward. Back to you.
>> Okay, Matali, thanks so much for taking us through that. So yes, that's the kind of spike that we've seen in bond yields both across the 10-year and the 30-year yield. And like Matali was mentioning, this is not only a phenomena we're seeing in the US. The Japanese bonds have also seen an uptick. On the back of that, we've had reactions coming in from the US market last evening. Although, as Aisha was just talking about a few minutes ago, the futures are looking quite steady on the US front right now.
Um um let's shift focus right now just taking a look at what the market is doing. We seem to have settled around that 23,670 mark. And I say settled because before that we were stuck at 23600. Then we've managed to hold on to 650 and now we're at 670. So that level is looking slightly sticky as we speak.
Two ten of a percent higher on the nifty. The Sensex has also once again come back to the green. The broader end of the market, the midcap index is looking very attractive as we speak.
4/10 of a percent higher. But the small cap index is absolutely flat and it's a further cool off of about a percent and a half on the India VIX. The banking index that was under pressure about 30 minutes or so ago has now come to the green with an uptick of about 4/10en of a percent. So very strong move coming in over there as well. But Kunal the midcap 150 a very sharp rebound coming over there from the day's lowest point any constituents any stocks within that basket looking good. Yeah, I think uh you know many of the stocks in fact auto names, the auto stocks are making a good comeback. you're seeing you know the PS banking names in the pack I think making a very good comeback for themselves and I think it's a clear wave of short covering which you're seeing across many of the you know spaces because many of these stocks have been huge underperformers uh over the last many many weeks you're seeing uh you know even the power names I think uh CG power etc uh TD power to power they they had made a very good comeback from their lows even the larger cap names to you know put it I think the likes of ABB zmans etc these stocks have made very good comeback so I think it's a day where you've seen the market sort of coming back into a short covering mode and that's why the midcaps and small caps it tend to outperform in this kind of a scenario because when there is a risk on uh you know kind of a profile for the markets on that on a particular day uh those are the days where we usually see midcaps and small caps behaving a lot more better as compared to the traditional uh large cap stocks.
>> Okay, that's uh you know the way uh large caps as well as midcaps are poised right now. But um that's of course the view on the market uh as we speak.
Hindalco, Reliance, Bajage Auto, that's where you're seeing some strength and of course Eminem is the other one which is also of course holding out uh as we speak right now uh in trade. Other than that you know just looking at some of the other constituents uh geo financials interglobe aviation access kak SBI is where you're seeing some strength but I can't say the same about HDFC bank about Bharti uh TCS or for that matter even ICA bank which is languishing a little bit in trade as we speak right now but that said u there are of course you know that very uh strong moves when you come to the broader markets and you know like we've flagging off. Many stocks are seeing some significant amount of strength as well over there. Nagash curious to know what is your opinion on the midcap moves within it? I mean everything from a co-forge to an emphasis Oracle finance that's where you're seeing meaningful moves come by the last few days worth a buy even after the recent runup you think >> I think it's rightly because we have seen some significant declines recently and afterwards the strong bounce back over the last few sessions and still though if you look at the co though it has placed at the higher level still there's no indication of any reversal pattern building up so I'm expecting some more upsides in IT, frontline IT and midcap IT stocks at least for the short term.
>> So that's on it and uh Dash is still with us. Dash, give us your sense on some of the sectors that we haven't spoken about. Energy and power for example. How are you reading into the sector given that this summer has been harsher than expected. We're heading into an El Nino year and power demand has been unprecedented. How would you play this theme?
>> So we are positive on the theme. Uh incidentally, India's peak electricity demand we are seeing because of the blistering heat. Uh the conservation hit all-time high yesterday 260.4 gawatt which is a fresh all-time high according to the data we got from grid controller of India. That means uh demand is there especially because of the appliances cooling appliances like air conditioner which is leading to incremental demand and that's why we have been uh quite positive. In fact uh many of the uh utilities power utilities and capital goods companies which we have under coverage are underminating.
So we continue to like it and this is uh going to be a sector which needs to be there in the portfolio of all investors.
Okay, Nagraj, great to have you on the show. Thank you so much uh for your time today. Good to be speaking with you. Um we'll uh move on and let's uh talk about what else has been happening in the market as we speak right now. Just a you know a couple of other movers that one is seeing in trade and while of course uh you know there were many stocks which were in focus when we came into trade the picture from there of course has changed. you know, while you were uh sensing that perhaps we're going to be swept in into the weakness um from the rest of the globe, but the European markets have recovered u so has been the case for the US futures and that clearly is rubbing off on us. But canal how convincing is both yesterday and today's rebound looking to you? See I think uh in fact yesterday was one of the days where Aisha I think you know we saw good rebound for the index because of the options uh you know data point and the expiry which was there the weekly expiry that was one of the reasons why we uh broadly managed to hold on to that 23 600 700 mark but today I think it's completely different because today it's a slew of different data points you're seeing a very good recovery from large cap teams like Reliance right from the start the put call ratio you know even at a point when the nifty was down some 200 points at the But approximately the put call ratio was still at 1 1.05 05 mark for the monthly expiry which tells you that there are more writers of put options uh rather than you know the sellers of call options that's generally considered to be a positive sign and then the slew of short covering which you've seen across various sectors you know banking financials auto sectors making a good comeback the OMC names making a very good short covering move so I think it's a mix of all of those factors which have caused the markets to show signs of recovery my sense is that I think uh if the global data points don't deteriorate significantly. So you know because what happens is generally we've seen that in the second half of the uh you know day if you see the you know major data points like crude oil prices spiking up or bond deals prices you know if they start to you know spike up that causes a reverse effect on the gift nifty and puts a pressure on the next day. So broadly 23600 700 is a good pivot support for the index but it's too volatile to really call in a trend.
>> Okay so that's a reading right now. I'm just taking a look at some of the earnings that we're looking at tomorrow from the nifty pack. You've got ITC as well as a max healthcare. Both of them will be coming out with their earnings.
Let's start by talking about what the expectation for ITC is. It's no surprise this time that we're looking at a soft quarter for ITC. Given the sharp tax hike that we have seen coming in from the government in the form of excise duty on sin goods and tobacco products.
So that's the reason why ITC could be under pressure. But it could it it might not be such a bad quarter also because remember that this transition has only come from 1st of February. So whole of January in anticipation of this t tax hike there has been advanced talking and buying on the back of that January has been good half of Feb has been good and the remaining half has been under pressure. What we're watching out for is how much the price impact has been how much has already been passed on and any management commentary on whether or not they're going to be passing on the remaining in the form of price hikes. So in light of all of this on the standalone basis the revenue is expected to grow by 4 and a.5% at around 18,000 cr rupees. EITA is expected to come at 6,000 cr rupees absolutely flat on a year-on-year basis. The net profit is also expected to be flat at 4900s but it's the margin front where we're expecting to see some pressure of about 150 bips due to inflation in uh tobacco leaf prices. Now on the back of that the cigarette business volume could be absolutely flat or in fact we might even see a decline of 1 to 2% on that note abit growth could be about 3% FMCG business for ITC could be the real uh driver of growth this time around if at all because the GST rate cut has benefited 75% of its portfolio so that would also look really good for the FMCG business. Agri could be under pressure due to the war but paperboards could do well on the back of it being one year of the acquisition of Adityabella real estate's paper and paperboards business.
So that could be positive for ITC. So yes, price hike, cigarette volume, competition, raw material trends and how the paper business is shaping up is going to be on our radar and that's why ITC will be in focus. Kunal, how is ITC looking on the charts compared to some of the staples heavyweights? See I think ITC broadly has underperformed with respect to the staple stocks because you know at a point where many of these stocks recovered more than 15% to 20%.
Uh you know ITC has just broadly gone into a range uh swinging around the 300 mark plus - 10 odd rupees for the stock price. So broadly 310 uh uh has been a resistance for the stock in the very near term and closer to 290 285 has been a huge support for the stock. So it's just been uh trying to consolidate in this band. But it's no different to the nature for ITC because for uh you know the last many many years we've seen that the stock has this tendency or a habit of going into a range around a psychological mark. There was a point where IC was stuck at the 200 range. I think uh 3 four years back before which the stock start to uh you know move up higher and then start to move up into those 400 500 range. But after the recent news slope for the stock uh you've seen the stock just about swinging around the 300 mark. So this is the new normal for ITC the 300 range for the stock price and that's what I think if there is uh uh you know uh uh investors looking at this as a long-term play should start to accumulate.
>> Okay, that's an ITC right now as we speak. But it that's been the one space uh in focus and the sector is clearly rapidly positioning itself or repositioning I should say for the next big AIE growth cycle. In fact, a new Gartner report estimates India's AI market opportunity could cross about 330 lakh cr rupees by 2027 with spending growth accelerating uh across platforms, software models and of course infrastructure as well. So the question for investors is which companies are building the country's AI stack? Dasha is here with that analysis.
>> Well, yes. According to Gartner, the global AI market could cross 3.3 lakh cr rupees by 2027. Now, that's a growth of nearly 35% annually. But this opportunity is spreaded across the multiple segments and let's see how India can be benefited. Starting with AI services. Now, AI services remain one of the biggest opportunities for Indian IT firms. TCS already has over 200 Gen AI programs with Infosys has trained over more than two lakh employees in AI while HCL Tech has crossed $100 million in quarterly AI revenue. But the biggest spending across is lying the opportunity actually lies in the backbone of the powering artificial intelligence. Now let's look into it. The biggest AI opportunity in the infrastructure includes the data centers, GPUs and cloud systems. India has attracted more than $50 billion of data center investment in 2025 alone with Tata Communications and Cifi Technologies among the key listed beneficiaries.
Now beyond infrastructure, we have companies which are also embedding AI directly into their products. Now the segment includes software products with AI built directly into them. Oracle Financial Services, Aphil India and Tata Alexi are integrating AI into banking, advertising and automotive solutions.
But as AI adoption rises, so do the cyber security risks as well. So as AI adoption rises, the demand for the cyber security is also accelerating sharply.
HCL Techch and Vipro are building AIE security platforms while startups like Cloud SEC and cycle focus on AI powered threat intelligence.
But perhaps the most strategic opportunities lies in building the AI brain itself. This is actual AI brain which is the large language models powering systems like chat GPT tech. So your tech mahinda project indust along with startups like servi and crutium are focusing heavily on India languages and AI models and behind every AI model lies one critical ingredient which is data.
Now AI systems also require massive amount of clean training data and machine learning platforms. Persistent system Infosys and TCS are building capabilities in AI data engineering while firms like IMEIT A14 Bharat are developing multilingual data sets. So taken together the AI opportunity goes far beyond just the traditional IT services. While IT services firm may benefit the long-term AI opportunity extends into the infrastructure, software, cyber security, AI models and data. And now according to this, the growth story is only getting bigger.
Okay, Dasha, thanks so much for taking us through that. So that's the AI play and the insights on how that is shaping up for it. We've got two numbers, two companies come out with the numbers.
You've got Ola Electric on the bottom of your screen. Loss of 500 crores this time versus a loss of 870 crores. So the loss has narrowed on a year-on-year basis. And that's the reason why the stock has seen a little bit of a U-turn.
It's come back to the green 8/10 of a percent higher. The revenue has seen a drop of 56% and maybe that is what is keeping the stock under pressure. We'll compare that with estimates and bring you that. But we've also got numbers from Lenskart and it looks like an all round beat for that one because the revenue was coming in at 2515 crores while the revenue was while uh the estimate was just 2,430 crores. So beat over there. The Abitar number also looking good. The net profit has come in at 200 crores. We were estimating 130 crores. So very healthy move over there.
And similar is the story for margins at 21.4%. We were expecting only 20%. So looks very good off for Lenskart as well. They're also going to be acquiring additional shareholding in ARM and only.
So that's on Lenskart's numbers. But yes, the sharp was on the stock 2% lower after the earnings have come out despite it looking like a very healthy set of numbers. So we'd love to dig deeper on that one. But Kunal Ola Electric, the revenue has fallen by about 57% at 265 crores, but the net loss has narrowed while the stock plays out that earnings reaction. How are you reading the move on the charts? See so far in the last you know one two months solar has done very well for itself because a stock which was almost at 2022 rupees moving back to the 4044 mark in the last one one and a half odd month and then trying to consolidate. So you know largely the trend is still very positive for Ola when we look at this in the context of the last two months of price recovery but of course I think in terms of a swing breakout it's always better that the stock shows signs of a confirmation of a breakout and then is where traders should try and participate. So I think as a as a broad medium-term call I think one should wait out for the previous highs to be taken out which is about the 42 mark for Ola. Once the stock closes or gives a confirmation of a close on weekly basis, that's where I would believe that there could be a bigger aspect of a turnaround for the stock even if it's a medium-term time frame.
So, so far no trade initiated on the stock, but I think above 42 levels is where one could look at buying the stock.
>> Okay, Nagar Kunan, both of you will let you go on that note. Thanks as always for your time. Let's begin winding up for the day. And u it's definitely turned out to be a little bit of a relief if you will from where we came into trade and the kind of global market weakness that we were uh you know staring at. From there of course it's been a good rebound that we have seen.
In fact what's more heartening is the breadth of the market. 128 stocks finally closing into the greens within the FNO uh segment uh and 85 to the reds. And from from where we started off, of course, it's a much better and stronger recovery for the broader end of the market. Power India, CG Power, Zeons, Mankind, ABB, it's these names which have actually led the indexes higher and then of course due credit to Reliance Industry Industries 3% higher over there. And then of course others like Interglovation, Eminem, those oil sensitive names are the ones which have managed to hold out. On the flip side, BEL, Uni Lever, Eternal, DRL, U, ICA Bank, LNT, HTFC bank, couple of the technology names like Inforces, they didn't participate today. PI Industries was ranked underperformer fell about two 8 and a4%. ICs GI, BEAL, ICSA true life and LTM were some of your rank underperformers as well in trade this afternoon. Okay, that's a list of all the stocks to watch out for. Some of the earnings reaction still playing out for a name like Lenskart, you've got Ola Electric and some of the top gainers in trade in terms of earnings reaction.
You've got something like a Gavari Power that has been in focus on the back of some very strong earnings. So that stock should be up for you on your screen as well and continues to hold on to gains of about 4 and a/4%. Other than that from the broader end of the market, there has been strength in an AIS life sciences on the back of an of their earnings 11% higher. Seaman's energy on the back of volume, Tata, PCBL, Hitachi Energy, IGI, Data Patterns, Aptis Housing, all of them seeing gains north of 4 and a half%. What's under pressure is PI Industries on the back of its earnings 7 and a half% lower followed by MACMI India that's CE Infosystems. We've interacted with the management as well 6% cut on that one. Bal Rampurini from the sugar pack is under pressure and pressure continues for AFCON's infra on the back of its weaker than expected earnings three and a quarter% lower over there too. Shipping corporation can PTC India you have doms um a lot of the stocks from the broader end in fact are under pressure and the advanced decline ratio from the broader end is absolutely even as we shut shop. So, we'll give those rates some time to settle, but it looks like for now we've closed with a gain of about 210 of a percent on the Nifty. 23,665 thereabouts is where we're at. Oil and gas is the big winner today. And FMCG is your most losing sector along with some of the media names. But with that, we're completely timed out on this edition of Closing Trades. From everyone who put this show together, thanks so much for tuning in.
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