Sensex rallies 1041 pts, rises for 3rd day; Nifty ends at 16,661.40; NSE VIX below 20 mark

The benchmark indices ended with robust gains on Monday, extending gains for the third day. Positive global cues boosted sentiment. The Nifty opened at 16,527.90 mark and marched higher as the session progressed to settle above the 16,650 mark. All the sectoral indices on the NSE ended higher. Shares of consumer durables and realty companies rallied.

The barometer index, the S&P BSE Sensex, soared 1041.08 points or 1.90% to 55,925.74. The Nifty 50 index added 308.95 points or 1.89% to 16,661.40. The 50-unit index has climbed 3.97% in three days.

Titan Company (up 4.94%), Infosys (up 4.57%) and Reliance Industries (up 3.44%) were major index movers today.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index gained 2.28% while the S&P BSE Small-Cap index added 2.23%.

The market breadth was strong. On the BSE, 2,368 shares rose while 1,091 shares fell. A total of 156 shares were unchanged.

The NSE`s VIX index, a gauge of market`s expectation of volatility over the near term, declined 6.98% to 19.98.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper rose to 7.410% as compared with 7.350% at close in the previous trading session.

In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 77.5450, compared with its close of 77.58 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement rose 0.03% to Rs 50,930.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, decreased 0.19% to 101.48.

In the commodities market, Brent crude for July 2022 settlement rose 87 cents or 0.73% at $ 120.30 a barrel. The contract rose $2.03 or 1.73% to settle at $ 119.43 a barrel during the previous trading session.

Foreign Markets:

The Dow Jones futures were up 130 points, indicating a positive opening in the US stock market today.

Markets in Europe and Asia rallied on Monday as investors look ahead to major economic data releases later in the week.

Markets in the U.S. are closed on Monday for a holiday. Wall Street closed sharply higher on Friday as signs of peaking inflation and consumer resilience boosted sentiment.

The core personal consumption expenditures price index rose 4.9% in April, down from the 5.2% pace seen the previous month. This particular report is watched closely by the Federal Reserve when setting policy.

US consumer spending rose more than expected in April as households boosted purchases of goods and services. Consumer spending increased 0.9% last month. Data for March was revised higher to show outlays racing 1.4% instead of 1.1% as previously reported.

New Listing:

Shares of ETHOS closed at Rs 802.05 at a discount of 8.59% compared with the initial public offer (IPO) price of Rs 878.

The scrip was listed at Rs 830, representing a discount of 5.47% to IPO price.

The scrip hit a high of Rs 839.65 and a low of Rs 774 during the day. About 2 lakh shares of the company changed hands in the counter today.

The IPO of ETHOS was subscribed 1.04 times. The issue opened for bidding on Wednesday (18 May 2022) and it closed on Friday (20 May 2022). Ethos is India`s largest luxury and premium watch retailer. It retails 50+ premium & luxury watch brands in India.

The company declared its Q4 results post market hours today. On a consolidated, ETHOS` net profit surged 74% to Rs 7.8 crore on 29% increase in revenue from operations to Rs 158.70 crore in Q4 March 2022 over Q4 March 2021. EBITDA including other income jumped 29% to Rs 22.9 crore during the period under review.

Stocks in Spotlight:

Sun Pharmaceutical Industries fell 1.75%. The drug maker reported a consolidated net loss of Rs 2,277.25 crore in Q4 FY22 as against a net profit of Rs 894.15 crore in Q4 FY21.

Adjusted net profit for the quarter was at Rs 1582.10 crore, up by 18% YoY, after excluding the exceptional items of Rs 3935.70 crore and exceptional tax gain of Rs 76.40 crore.

Further, Dilip Shanghvi has been re-appointed as the managing director for a further term of 5 years with effect from 1 April 2023 up to 31 March 2028.

Mahindra & Mahindra (M&M) rose 4.69% to Rs 997.90, rising about 8% in three trading sessions. It hit a record high of Rs 1011.45 today.

The tractor major reported a 427% jump in standalone net profit before exceptional items to Rs 1,292 crore in Q4 FY22 as compared with Rs 245 crore in Q4 FY21. Revenue rose by 28% year on year to Rs 17,124 crore during the quarter ended 31 March 2022. Profit before tax surged 147.8% to Rs 1,572 crore during the period under review.

Dixon Technologies (India) surged 10.96% after the company`s consolidated net profit jumped 43% to Rs 63.13 crore on a 40% rise in revenues from operations to Rs 2,952.75 crore in Q4 FY22 over Q4 FY21.

Gujarat Ambuja Exports soared 12.30% after the company`s consolidated net profit rose 29.46% to Rs 153.31 crore on 25.11% decline in net sales to Rs 1255.49 crore in Q4 March 2022 over Q4 March 2021.

Sun TV Network rose 1.98% after the media company`s standalone net profit declined 10.1% to Rs 404.35 crore despite of a 6.5% rise in net sales to Rs 833 crore in Q4 FY22 over Q4 FY21. Sun TV Network`s advertisement revenue rose 7% to Rs 337.13 crore for the quarter ended 31 March 2022. The subscription revenue for the quarter declined 2.8% to Rs 416.03 crore in Q4 FY22 from Rs 428.12 crore reported in Q4 FY21.

United Spirits (USL) advanced 5.72%. USL reported 18.6% fall in standalone net profit to Rs 136.20 crore in Q4 FY22 from Rs 167.30 crore posted in Q4 FY21. Net sales rose 9.5% to Rs 2,435.10 crore for the quarter ended 31 March 2022 from Rs 2,224.40 crore recorded in the corresponding period last year. The growth in net sales was driven by resilient consumer demand in off trade and gradual on trade recovery. Profit before exceptional items and tax surged 15.24% to Rs 372.7 crore in Q4 FY22 from Rs 323.4 crore in Q4 FY21.

ONGC rose 0.10% after the company reported 31.6% year-on-year (YoY) growth in standalone net profit to Rs 8,860 crore in Q4 FY22. Net sales in the January-March 2022 quarter jumped 62.8% to Rs 34,497.24 crore from Rs 21,188.91 crore recorded in the same period last year. Profit before tax in Q4 FY22 stood at Rs 11,714 crore, up by 31.2% from Rs 8,928 crore reported in Q4 FY21.

FSN E-Commerce Ventures (Nykaa) rallied 3.67%. The company`s consolidated net profit fell 49.29% to Rs 8.56 crore in Q4 March 2022 as against net profit of Rs 16.88 crore in Q4 March 2021. Revenue from operations declined 11.38% sequentially ("QoQ") and 31.44% Year on Year ("YoY") to Rs 973.32 crore in Q4 FY22. Gross profit grew 40% YoY to Rs 425.30 crore in Q4 FY22 at a margin of 43.7%, up 254 bps YoY. EBITDA fell 14% to Rs 38.50 crore in Q4 FY22 at a margin of 4% (vs 6.3% in Q3 FY22 and 6% in Q4 FY21).

3M India jumped 10.48% after the compnay reported a 57.4% jump in consolidated net profit to Rs 110.92 crore in Q4 FY22 from Rs 70.47 crore posted in Q4FY21. Revenue from operations rose 11.9% to Rs 925.59 crore in Q4 FY22 from Rs 827.21 crore posted in Q4 FY21. Profit before tax in Q4 FY22 stood at Rs 151.41 crore, rising 59.6% from Rs 94.88 crore in Q4 FY21.

Jubilant Foodworks spurted 9.64% after the QSR chain operator reported an 11.3% growth in net profit to Rs 116.1 crore as revenue from operations rose by 12.9% to Rs 1,157.9 crore in Q4 FY22 over Q4 FY21. The company said that the increase in revenue in Domino`s was driven by robust growth in delivery channel. Meanwhile, dine-in and takeaway channel also registered a moderate growth. Domino`s Like-for-Like (LFL) sales growth stood at 5.8% in Q4 FY22 as against 13.7% in Q4 FY21. LFL sales growth refers to the year-over-year growth in sales for non-split restaurants opened before previous financial year. During the quarter, the company registered system sales growth of 80.6% and opened 3 new stores taking the network strength to 35 stores in Sri Lanka. In Bangladesh, system sales grew by 44.5%.

JSW Steel slipped 1.82% after the company reported 23% fall in consolidated net profit to Rs 3,234 crore on a 74% increase in net sales to Rs 46,026 crore in Q4 FY22 over Q4 FY21. Total expenditure during the quarter surged 107.2% YoY to Rs 38,483 crore, due to a sharp spike in cost of raw materials, power & fuel, other expenses and inventory costs.

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