Bank of Baroda shares fall more than 5% after lender’s fourth quarter loss
Baroda’s state-owned bank’s share price fell more than 5% on Monday after the lender posted a loss in the March quarter compared to profit expectations due to rising tax charges and the increase in provisions for bad debts. It reported a stand-alone net loss of Rs 1,046.50 crore for the March quarter against a net profit of Rs 506.59 crore in the last year’s quarter. For fiscal year 2020-21, the bank reported net profit of Rs 828.95 crore, up 52% from Rs 546.18 crore. Brokers were mixed up on the stock after the results. While JPMorgan and CLSA were bullish, Credit Suisse and Morgan Stanley remained neutral. More here
M&M Dips Above 6%; Should investors buy, sell or hold?
Mahindra & Mahindra (M&M) shares corrected more than 6% in early trading Monday on profit taking, with the auto major keeping cautious stance for the tractor industry despite a profitable quarter. Meanwhile, brokerages have remained mixed on the outlook and have set modest price targets on M&M stocks amid the lingering woes of the pandemic. Global brokerage firm CLSA increased its baseline EPS estimate for fiscal years 22-23 by 3-5% and raised the target price to Rs 1,090 from Rs 1,060 earlier and maintained its buy rating. UBS maintained a call to buy on the stock due to the improving yield profile and strong outlook. He set a target price of Rs 1,030 per share. M & M’s fourth quarter results were in line with UBS estimates. More here
Little-Known Quant Small Cap Top Mutual Fund Rankings with 206% Returns
A little-known mutual fund, Quant Small Cap Fund, took the top performance spot among all equity mutual funds in India last year with an impressive 206% return. Unknown to many in the past, it changed hands in 2018 and lagged behind its peers even in 2019. The former Escorts Mutual Fund was sold to Quant Capital in 2018 and has a new management led by Sandeep Tandon. Incidentally, Quant Capital was part of Reliance Securities, owned by Anil Ambani. The company has 13 active mutual funds with an impressive asset under management (AUM) of Rs 1,855 crore. At the time of the buyout, AUM was at a dismal Rs 235 crore. Last month alone he managed to add assets of Rs 600-700 crore. According to Mint, the reason behind Quant’s success is that it follows the “VLRT” strategy of valuation, liquidity, risk and timing analysis. More here
Bank of Baroda posts net loss of Rs 1,047 crore for March quarter
The Bank of Baroda on Saturday reported an autonomous net loss of Rs 1,046.50 crore for the March 2020-21 quarter. The bank had posted a net profit of Rs 506.59 crore in the quarter of last year. For fiscal year 2020-2021, the bank reported net profit of Rs 828.95 crore, up 52% from Rs 546.18 crore. “The bank adopted a new tax structure, thus declaring a loss of Rs 1,047 crore due to the deferred tax reversal (deferred tax asset). Without the impact of the change in tax regime, the bank reportedly reported after-tax profit of Rs 2,267 crore in Q4FY21 and Rs 4,143 crore in FY21, ”he said in a statement.
LIC has a low profit reservation level at all times
LIC’s stake in 296 companies where its stake is greater than 1%, fell to an all-time low of 3.66% as of March 31, 2021, down from 3.70% as of December 31, 2020 and from a record high. by 5 percent as of June 30, 2012, according to primeinfobase.com, an initiative of PRIME Database Group. According to Pranav Haldea, Managing Director of Prime Database Group, this is due to the recognition of profits by India’s largest institutional investor. In terms of INR value, however, it hit a record high of Rs 7.24 lakh crore in the quarter ending March 31, 2021, an increase of 6.30% from the previous quarter. More here
Morning Market Quote from Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services
“There are two conflicting news for the market right now. The steady decline in new Covid cases (tentatively 1.53 lakhs over the past 24 hours) continues to be positive. Gradual unlocking has started in many states, opening up the way for an upturn in economic activity. But the negative news is increasing new cases in countries like China and Vietnam. This could impact feelings for Asian markets in general. Usually when the markets are hitting new highs, some consolidation with minor corrections is happening even in bull markets. This can happen since Nifty hit new highs. last Friday. May auto numbers will be very gloomy and some Market reaction can be expected in this segment. The bank appears to be on a solid window in light of the new cuts announced for the segment. MSMEs “
Opening bell: Sensex, Nifty open flat; auto dredge, FMCG shares win
Indian indices started the week on a flat note with gains in the consumer goods, pharmaceuticals and metals sectors capped by losses in the auto and banking indices. At 9:18 am, the Sensex was down 53 points to 51,369 while the Nifty was down 11 points to 15,424. On the Nifty50 index, ITC, ICICI Bank, Bharti Airtel, RIL and TCS were the main winners while M&M, Cipla, Tata Motors, L&T and Eicher Motors led the losses.
Market Watch: Prakash Diwan, Market Expert
On Bank of Baroda (BoB)
You can no longer continue to avoid PSU banks in the portfolio as the kind of alpha they could generate is likely to be much greater than the historical past, especially in recent times. So you add around 12-20% of your allocation on the BFSI side to some of these PSU banks. BoB’s numbers seem pretty positive to me. You will need to start allocating to PSU banks, Punjab National Bank (PNB) maybe if you are a bit of a risk taker. I would definitely consider allocating more money to PSU banks now.
IndiGo is definitely a good bet. Last week we saw a little build up there that started but I think you will probably see it skyrocket as much as airplanes, you will also see prices skyrocket in the next six months.
Glenmark fourth quarter net profit up 6% to Rs 233.87 crore
Pharmaceutical company Glenmark Pharmaceuticals announced a 6.15% increase in its consolidated net profit to Rs 233.87 crore for the quarter ended March 2021 due to higher sales. The company had posted a net profit of 220.30 crore rupees in the corresponding period of the previous fiscal year, Glenmark said on Friday in a late regulatory filing. Its consolidated operating income was Rs 2,859.9 crore for the current quarter. It was Rs 2,767.5 crore for the same period a year ago, he added. For the fiscal year ended March of this year, the company posted net profit of Rs 970.1 crore compared to Rs 776 crore in the previous fiscal year, Glenmark said. More here
Eight of top 10 valued companies add over Rs 1.39 lakh crore in m-cap
Eight of the 10 most valued companies together added Rs 1,39,566.52 crore to the market valuation last week, with Reliance Industries, TCS and Infosys emerging as the top performers. On a weekly basis, the benchmark BSE Sensex gained 882.40 points or 1.74%. Only Hindustan Unilever and Bajaj Finance recorded losses in market capitalization for the trading week closed on Friday. Among the winners, Reliance Industries saw its market valuation jump from Rs 59,590.77 crore to Rs 13.28,049.94 crore. Tata Consultancy Services added Rs 23,562.96 crore to bring its valuation to Rs 11,632,018.74 crore and Infosys earned Rs 21,395.27 crore to Rs 5,980,604.10 crore. State Bank of India’s market cap increased from Rs 18,697.06 crore to Rs 3,766,663.23 crore and that of Kotak Mahindra Bank gained Rs 8,435.06 crore to Rs 3,56,849.67 of Rs. More here
Gasoline price increased by Rs 3.83 and diesel by Rs 4.42 / liter since May 3
The price of gasoline has increased by Rs 3.83 and diesel by Rs 4.42 / liter since May 3 pic.twitter.com/wHy5IhRsEX
– CNBC-TV18 (@ CNBCTV18Live) May 31, 2021
First up, here’s a quick catch up on what happened in the markets on Friday.
The benchmark Nifty50 hit a record high on Friday, following gains by its Asian peers as falling COVID-19 infection rates boosted sentiment. India recorded its lowest daily increase in COVID-19 cases in more than a month. The Sensex finished up 307 points to 51,423 while the Nifty rose 98 points to end at a new closing high of 15,435. Both indexes were up over 1.5% for the week. Nifty50 rose 132 points to a new intra-day high of 15,469.65, breaking above the previous level of 15,431.75. Back home on the Nifty50 index, RIL, Grasim, Adani Ports, M&M and Coal India were the main winners while Sun Pharma, Shree Cement, Bajaj Finserv, Dr Reddy’s and Bajaj Finance led the losses.
Welcome to CNBC-TV18 Marketplace Live Blog
Hello, readers! I’m Pranati Deva from the CNBC-TV18 market office. Welcome to our Market Blog, where we provide live and streaming news coverage of the latest developments in the stock market, business and economy. We’ll also bring you instant feedback and guests from our stellar lineup of TV guests and editors, researchers and journalists. If you are an investor, we wish you a great trading day. Good luck!