Stock Market Today: Sensex, Nifty End in Green Amid Volatility; Pharma, Metals Shine

The Indian stock market on May 13, 2024, closed positively amidst volatility. The Sensex ended at 72776 points, marking a 0.15 percent increase, rebounding from an intraday plunge of nearly 700 points. Meanwhile, the Nifty finished at 22104 points, showing a 0.22 percent rise, recovering from an intraday dip of approximately 180 points.

Leading the sectoral gains were Nifty Pharma, surging by 1.8 percent, followed by Nifty Metal and Realty, both experiencing a 1.3 percent increase. Nifty Bank saw a rise of 0.7 percent, while Nifty IT witnessed a gain of 0.4 percent. Conversely, Nifty Auto saw a decline of 1.68 percent, trailed by Nifty PSU Bank and Oil & Gas, which dropped by 1.2 percent and 0.8 percent, respectively.

Investors are eagerly anticipating US inflation data and various Federal Reserve speeches scheduled for this week. Key events include the release of one-year inflation expectations, PPI data on Tuesday, and CPI on Wednesday, all of which will serve as crucial tests for the recent bond rally. Fed speeches are dispersed throughout the week.

Top Nifty50 Gainers

• Cipla: 6.08%
• Asian Paints: 3.85%
• HDFC Life Insurance: 3.57%
• Adani Enterprises: 3.27%
• Adani Ports: 3.03%

Top Nifty50 Losers

• Tata Motors: -8.34%
• BPCL: -1.72%
• Shriram Finance: -1.67%
• Coal India: -1.15%
• NTPC: -1.13%

Asian Markets

Asia-Pacific markets were largely lower Monday as investors assessed China’s stronger-than-expected April inflation data. Japan’s Nikkei 225 closed 0.13 percent lower at 38,179.46 and the broad-based Topix fell 0.15 percent to end at 2,724.08. South Korea’s Kospi ended flat at 2,727.21, while the small-cap Kosdaq fell 1.13 percent to close at 854.43. The Australian S&P/ASX 200 closed flat at 7,750. Hong Kong’s Hang Seng index rose 0.76 percent, while mainland China’s CSI 300 index fell marginally to finish at 3,664.69, according to a CNBC.com report.

Also read: What is Intraday Trading?

European Markets

Europe’s STOXX 600 struggled for direction on Monday, as investors geared up for this week’s key US inflation prints and a slew of economic data from the euro zone that could test the benchmark index’s record-breaking run. The pan-European STOXX 600 was unchanged. Automobiles led sectoral gains after recent losses, while construction and materials were the worst hit, according to a Reuters report.

Stocks in News

Cipla

Cipla’s stock soared by over 5 percent and was the top Nifty50 gainer in the midst of challenging market conditions bolstered by the company’s robust growth prospects and optimistic management commentary. Let’s delve into a detailed exploration of Cipla’s strategies, recent developments, and future outlook.

Cipla, a prominent player in the pharmaceutical industry, is strategically focusing on maintaining a seamless pipeline of drug launches to fuel its growth trajectory in the forthcoming fiscal years. The company has outlined ambitious plans to introduce approximately 12 assets in the peptides and complex generics segment between FY25 and FY27. Additionally, Cipla boasts a lineup of five respiratory assets, underscoring its commitment to diversification and innovation. Analysts at brokerage firm JPMorgan anticipate that this formidable pipeline, particularly in the lucrative US market, will significantly enhance Cipla’s growth visibility beyond FY26.

Tata Motors

Tata Motors reported robust Q4 FY24 results, with its net profit more than tripling year-on-year. While this pleased a section of investors, others remained skeptical about the sustainability of the demand momentum. Consequently, Tata Motors stock dropped nearly 10 percent at the opening on May 13, reaching Rs 950.

The company witnessed an impressive 222 percent year-on-year growth in its consolidated net profit, reaching Rs 17,407 crore. This growth was attributed to improved operating leverage, favorable commodity prices, and strong volume growth across various segments. Additionally, its revenue from operations increased by 13 percent to Rs 1.2 lakh crore.

Nomura downgraded the stock to ‘neutral’ from ‘buy’, expressing concerns about potential demand risks faced by JLR. According to a report, Nomura stated, “PVs are expected to grow ahead of the industry, while CV growth may moderate.”

Morgan Stanley also downgraded the stock to ‘equal weight’ from ‘overweight’, suggesting that the ‘banner year’ has limited incremental upside. However, they highlighted that a sharp EV pickup-led turnaround in FY25 could present a key upside risk to monitor.

Zomato

Zomato announced a net profit of Rs 175 crore for the January-March (Q4) period, marking its fourth consecutive quarter of positive earnings. Revenue surged by 73 percent year-on-year to Rs 3,562 crore, amidst the broader e-commerce sector facing challenges due to high inflation and subdued demand. In the same quarter last year, Zomato had incurred a net loss of Rs 188 crore, with revenue standing at Rs 2,056 crore.

The food delivery company’s stock price has been on the rise due to increased profitability in its core business and the rapid expansion of its quick commerce arm, Blinkit. Its stock is currently trading at more than 100 times forward earnings, surpassing multiples of global peers such as Uber, Deliveroo, and Meituan.

Source: moneycontrol

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