Profit Booking amid Stabilizing Cases

Our Analysis

The vaccination drive is expected to pick up momentum and the launch of the DRDO drug ignited the street as pivotals led by Banks saw support from Autos & Metals. In the broader market we did witness profit taking in Pharma stocks. Profit booking has been seen during the second half of the week mostly led by Metal, Banking & Oil & Gas were the top losers wherein Consumer Durables and Capital Goods ended with gains. The broader market indices outperformed the benchmark and ended almost on the flat note.

On the global front, The US will share up to 60 million doses of its AstraZeneca vaccine with other countries as they become available, the White House has said. The doses will be able to be exported in the coming months after a federal safety review. The US has a stockpile of the vaccine even though its regulators have not yet authorised it for public use. Critics have accused the government of hoarding the vaccine, while other countries are in desperate need. The Biden administration has been weighing changes to sweeping travel restrictions that bar much of the world's population from coming to the United States, but has reached no decisions.

This Weeks Market Highlights:

Benchmark Indices:

1) On Monday, Sensex zoomed 848 points to settle the day at 49,581 levels, lifted largely by financial counters. Nifty50 reclaimed the 14,900-mark and ended at 14,923 levels, up 245 points.

2) On Tuesday, Sensex soared 613 points, or 1.24 per cent, to end the day at 50,193 levels. Nifty index reclaimed the 15,000-mark for the first time since March 12 on a closing basis, and shut shop at 15,108 levels, up 185 points or 1.24 per cent.

3) On Wednesday, Sensex settled the day at 49,903 levels, down 291 points or 0.58 per cent. On the NSE, the Nifty index defended the crucial 15,000-mark and closed at 15,030 levels, down 78 points or 0.52 per cent. Earlier today, it hit a low of 15,008.

4) On Thursday, Sensex was down 338 points, or 0.68 per cent, at 49,565 levels while the Nifty50 index quoted at 14,906 levels, down 124 points or 0.83 per cent.

5) On Friday, Sensex ended at 50,540 levels, up 976 points or 1.9 per cent. On NSE, the Nifty index advanced 269 points to settle above the crucial level of 15,150-level at 15,175.

Broader Index & Global Market:

- Weak global cues are weighing on the sentiments for the last couple of sessions and we may see further choppiness in global markets on inflation fear. However, reduction is COVID cases in India is certainly comforting the participants. We believe the Indian markets could outperform in the near term given it has underperformed when the global markets were rallying. We suggest keeping a check on leveraged positions and focusing more on managing the overnight risk.

- World stocks traded with gains across most regions. In Europe, the pan-European STOXX 600 index added 0.5 per cent while Germany's DAX was up 0.24 per cent. France's CAC 40 index, too, climbed 0.15 per cent in early deals. In Asia, barring South Korea's Kospi, which slipped 0.34 per cent, all other major indices ended with gains. Japan's Nikkei was last up 0.2 per cent, Australia's S&P/ASX200 advanced 1.3 per cent, and China's CSI300 index rallied 0.3 per cent.

Movers & Shakers

Shares of Gland Pharma hit a new high of Rs 3,266, up 7 per cent on the BSE, in intra-day trade on Wednesday. In the last two days, the scrip has surged 17 per cent after the company reported a healthy 34 per cent year-on-year (YoY) rise in its consolidated net profit to Rs 260.4 crore in the March 2021 quarter (Q4FY21) on robust sales.

Shares of Tata Motors dipped 6 per cent to Rs 312.95 on the BSE in intra-day trade on Wednesday on account of profit booking in the counter even as the firm reported a strong operational performance for the quarter ended March 2021 (Q4FY21), led by its UK subsidiary Jaguar Land Rover (JLR) and its India business. It also narrowed consolidated loss, which was mainly on account of exceptional items.

Key Market Drivers

• Coronavirus vaccine
• Lockdown
• Q4FY21

Event Watch

International:

• Coronavirus vaccine
• USA PMI, GDP growth rate
• Japan inflation rate
• UK retail sales

Domestic:

• Coronavirus- vaccine
• Q4FY21
• India bank loan growth

Stocks To Watch

Cipla Ltd On Upside while, Gland Pharma Ltd on Downside.