Published on 3/06/2020 9:48:38 AM | Source: Religare Broking Ltd

We may see some consolidation or profit-taking ahead, citing critical hurdle around 10,050 zone - Religare Broking

Posted in Market Outlook| #Market Outlook #Religare Broking Ltd

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Nifty Outlook

The bulls continued to maintain their firm grip on the markets as the benchmark indices registered gains for fifth consecutive sessions led by positive global cues. It further gained momentum, encouraged by the PM’s speech at CII session that India’s economy would get back on track as the government is working towards systematic reforms which boosted investors’ sentiments. Consequently, the Nifty index ended higher by 1.6% to close at 9,979 levels. The broader markets too registered healthy gains. On the sector front, except FMCG which ended with minor losses, all the other indices ended in green wherein realty, banking and consumer durables were the top gainers.

The benchmark has gained over nine percent in the last five sessions and trying to be in sync with global peers. We may see some consolidation or profit-taking ahead, citing critical hurdle around 10,050 zone however the buoyancy in banking would help the index maintaining a positive tone. We reiterate our advice focusing on stock selection.

Stock In News

*  Motherson Sumi reported its Q4FY20 numbers wherein revenue was down 11.7% YoY to Rs. 15,159 cr. Its net profit plunged 55.3% YoY to Rs. 183.4 cr as against Rs. 410 cr in the same quarter previous year.

* Eris Life posted its Q4FY20 numbers wherein revenue was up 15.7% YoY to Rs. 249 cr. Its consolidated net profit rose 3.6% YoY to Rs. 56.1 cr.

* JSW Steel ramped up its capacity utilization in May 2020 to 83% as against 38% in the month of April. The steel production stood at 12.48 lakh tonne, a growth of 122% over previous month.


Investment Pick

* Crompton Greaves Consumer Electricals (CGCE) reported weak set of numbers in Q4FY20 due to nationwide lockdown.

* We continue to remain constructive on CGCE’s growth prospects given its strong product portfolio, market leadership and increased focus on premiumization office portfolio. Further, its lean working capital cycle, strong cash flow generation and robust return ratios. Make it one of the preferred picks in the sector.


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