Market spurts in early trade; breadth strong

Key benchmark indices are trading firm in early trade on buying demand in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 373.70 points or 0.78% at 48,323.12. The Nifty 50 index was up 122.40 points or 0.85% at 14,481.85. The Nifty regained the key 14,500 mark in early trade. News of vaccine for all above 18 years of age starting from 1 May 2021 boosted sentiment.

On the coronavirus front, the vaccination drive will be opened up for all citizens above the age of 18 from May 1, the Government of India announced on April 19. The immunisation drive was currently restricted to only citizens aged above 45.

The S&P BSE Mid-Cap index was up 1.62%. The S&P BSE Small-Cap index was up 1.41%.

The market breadth, indicating the overall health of the market, is strong. On the BSE, 1701 shares rose and 401 shares fell. A total of 71 shares were unchanged.

Stocks in news:

ACC rose 2.62%. ACC`s consolidated net profit surged 74.2% to Rs 563 crore on 22.7% increase in net sales to Rs 4,213 crore in Q1 FY21 over Q1 FY20. Cement sales volume jumped 21.49% to 7.97 million tonnes in Q1 FY21 as against 6.56 million tonnes in Q1 FY20. Sale of ready mix concrete dropped 10.75% to 0.83 million cubic metres in Q1 FY21 compared with 0.93 million cubic metres in Q1 FY20.

On a consolidated basis, the cement major`s EBITDA jumped 46.75% to Rs 860 crore in Q1 FY21 as against Rs 586 crore in Q1 FY20. EBITDA margin improved to 20.4% in Q1 FY21 as compared to 17.1% in Q1 FY20. Operating EBIT soared 67.13% to Rs 717 crore in Q1 FY21 as against Rs 429 crore in Q1 FY20.

ICICI Bank gained 1.73%. ICICI Bank on April 24, 2021 will also consider fund raising by way of issuance of debt securities including non-convertible debentures/bonds/notes/offshore certificate of deposits in single/multiple tranches in any currency through public/private placement.

Tech Mahindra fell 0.57%. Tech Mahindra informed that the Investment Committee of the Board of Directors of the Company has approved the proposal to acquire 100% equity shares in DigitalOnUs, Inc. (DigitalOnUs) directly and indirectly through its wholly owned subsidiary viz. Tech Mahindra (Americas) Inc.

ICICI Prudential Life Insurance Company jumped 7.87%. The company reported sharp fall in consolidated profit to Rs 62.51 crore in Q4FY21 against Rs 178.73 crore in Q4FY20.

CRISIL rose 0.86%. CRISIL`s consolidated total income for the quarter ended March 31, 2021, was up 11% to Rs 508.7 crore, compared with Rs 458.2 crore in the corresponding quarter of the previous year. Profit after tax for the quarter ended March 31, 2021, was Rs 83.5 crore, compared with Rs 88.1 crore in the corresponding quarter of the previous year.

Aditya Birla Capital (ABCL) advanced 2.87%. ABCL said that its material subsidiary Aditya Birla Sun Life AMC Limited (ABSLAMC) has filed a draft red herring prospectus (DRHP) with Sebi for an initial public offering (IPO).

Global Markets:

Asian stocks are trading mostly lower on Tuesday as China kept its benchmark lending rate unchanged.

On the economic data front, China kept its benchmark lending rate for corporate and household loans steady for the 12th straight month at its April fixing on Tuesday, matching market expectations. The one-year loan prime rate (LPR) was kept at 3.85%. The five-year LPR remained at 4.65%.

U.S. stocks slipped from record levels to start the week on Monday as weakness in the technology sector weighed on the broader market.

On the coronavirus front, White House chief medical advisor Dr. Anthony Fauci said he expects the U.S. will resume administration of the Johnson & Johnson vaccine. The Food and Drug Administration asked states last week to temporarily halt using the single dose vaccine ?out of an abundance of caution? after six women developed a rare blood-clotting disorder.

Back home, the key equity indices ended with significant losses on Monday. A spike in domestic coronavirus cases and localized lockdown being announced by various state governments dented investors sentiment. The barometer index, the S&P BSE Sensex, dropped 882.61 points or 1.81% to 47,949.42. The Nifty 50 index tumbled 258.40 points or 1.77% to 14,359.45.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,633.70 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,355.56 crore in the Indian equity market on 19 April, provisional data showed.

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