Metal Stocks Lead, Banking Stocks Lag; Kotak Bank Q4 Results Miss Estimates

Today’s Action

Nifty, +0.02%; Sensex, -0.1%; Nifty Midcap, +0.3%; Nifty Smallcap, +1.1%; Model Portfolio, +3.9%

Market Pulse: Confirmed Uptrend

Distribution Day Count: One

Nifty gapped lower this morning and breached its 21- and 100-DMA. However, after hitting a low of 14,414 in the opening hour, it staged an upside reversal and gained more than 200 points. It closed above its 21- and 100-DMA. The broader market was in momentum. The advance-decline ratio was in favor of advancers. Of the 2,248 stocks traded, 1,177 advanced, 736 declined, and the rest remained unchanged. On the sectoral front, Nifty Bank (-0.8%) was the top loser. Nifty Metal (+2%) continues to outperform. Nifty FMCG also closed 1% higher. In April, FIIs sold equities worth Rs 2,655 crore, while DIIs bought shares worth Rs 476 crore.

Looking ahead, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. Stocks that are breaking out of consolidation have higher relative strength, and superior fundamentals can do well. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.

Key News

Kotak Mahindra Bank(Nse): reported Q4 FY21 results today. PAT and NII came in below estimates. PAT grew 32.8% y/y to Rs 1,682 crore. NII grew 8% y/y to Rs 3,843 crore. GNPA was 3.25% y/y compared to 3.27% q/q.

VBL’s Q4 FY21 PAT more than doubled y/y to Rs 136.7 crore. Revenue grew 33.6% y/y to Rs 2,270 crore. Margin expanded 80bps y/y to 16.8%.

As companies in India increased production, April Manufacturing PMI came in at 55.5 versus 55.4 in March.

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