Cipla, Asian Paints, Divi’s Lab, Adani Ports, and Adani Enterprises were the top gainers in the Nifty 50. While Tata Motors, BPCL, Shriram Finance, ONGC, and NTPC were the major losers in the Nifty 50 on May 13.

Courtesy: BSE

“While the CV (commercial vehicle) business outlook is mixed, model launch plans in the PV (passenger vehicle) business and improving the profitability of the EV business, despite the launch of lower-priced models, is encouraging. The stock, after having doubled over the last year, still trades at an FCF yield of c8% and looks attractive to us,” said Kumar Rakesh, Analyst of IT & Auto, BNP Paribas. The brokerage house has maintained its “outperform” rating on the stock of Tata Motors.

Courtesy: NSE

ABB India Ltd.’s shares surged over 9% to reach an all-time high of Rs 7,884.40 on Monday, amidst a volatile trading session, following the company’s fourth quarter earnings surpassing Street expectations.

The NSE Nifty 50 was down 73.40 points or 0.33% at 21,982, while the BSE Sensex was down 288 points or 0.40% at 72,376.78.

“The Bank Nifty index remained under the control of bears, encountering resistance at elevated levels. Immediate resistance for the Bank Nifty stands at 48,000, coinciding with the highest open interest on the call side. A breakthrough above this level could trigger fresh short-covering moves. On the downside, the index finds support at 47,050, represented by the 100-day exponential moving average (EMA). Sustaining above this level may pave the way for potential pullback moves in the index,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

“VIX’s behaviour now has a lot of similarities to the period shortly before the 2019 electoral results announcement. Then too, markets had come off peaks in March, and VIX shot up to 28.6. The main difference is that prior to this, VIX was in a 20-14 range during the previous 6 months, pointing to volatility expectations being reasonably high for an extended period. In stark contrast, VIX’s rise from record lows to above 20 now, has unfolded in just a fortnight’s time. So, while recent history points to more room for upside in VIX and thereby volatility, the abruptness in the rate of change of VIX, may lead to a cool off, perhaps even before the electoral results,” said Anand James, Chief Market Strategist, Geojit Financial Services.

Shares of Cipla surged by over 6% in early trading on Monday as the pharam compnay reported 79% jump in the net profit in Q4FY24. The stock rallied by 6.44% to reach an intra-day high of Rs 1,425.95 per share on the NSE.

Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said On the daily chart, the index has broken down from the rising channel, indicating a rise in bearish sentiment. The trend is likely to remain weak in the near term, with resistance noted at 22,200. As long as the Nifty remains below this level, a strategy of selling on rallies may be favorable for traders. Support at the lower end is situated at 21,950 on a sustained basis; a decisive drop below this level could trigger panic in the market.

JM Financial maintains a BUY rating on Tata Motors with a March 2025 sum-of-the-parts (SOTP) valuation of Rs 1,200, valuing the standalone business and JLR at 12x and 3.0x EV/EBITDA respectively. However, the report highlights the slowdown in key global markets as a point of monitoring.

According to a report by JM Financials on Tata Motors, in the fourth quarter of FY24, Jaguar Land Rover (JLR) reported an EBITDA of 16.3%, marking a 170 basis points year-on-year improvement driven by higher operating leverage and lower raw material costs.

Meanwhile, the India business, including commercial vehicles (CV) and passenger vehicles (PV), achieved an EBITDA of 10.5%, surpassing JM Financials’ expectations by 50 basis points. Supply normalization aided JLR in reducing its order backlog to approximately 133,000 units.

Although the US market remains robust, the demand environment in the EU has slowed down. Management plans to increase marketing spends to boost JLR’s order book. For FY25, the EBIT margin is anticipated to remain flat.

The company expects strong free cash flow generation to support investments in JLR’s electrification efforts, aiming to achieve a net cash position by FY25 (£0.7bn currently).

In the domestic PV segment, growth is expected to be driven by new launches and capacity ramp-up. Additionally, domestic CV demand is forecasted to pick up from the second quarter. Improving margins in both domestic CV and PV segments are viewed positively, with the net cash position in the Indian auto business providing comfort.

In Wednesday’s trading session, shares of car maker Tata Motors experienced a sharp decline of 7% during the opening trade after the management expects slower growth in FY25. The share price of Tata Motors fell by 8.26% to reach an intraday low of Rs 960.10 on the NSE.

The Volatility Index surged by 11% to reach 20.65, reflecting heightened market uncertainty and increased price fluctuations.

As Phase 4 of election is underway, markets seeing some election jitters.

For the week ending May 12, markets ended lower, Nifty down nearly 3% on a weekly basis.

The NSE Nifty 50 opens down by 0.12% at 22,027.95, while the BSE Sensex drops 0.26% to 72,476.65 in the opening trade.

Aarti Pharmalabs, Aditya Birla Capital, Alembic, Bombay Burmah Trading Corp, BLS E-Services, Cera Sanitaryware, Chalet Hotels, DLF, Ethos, Electrosteel Castings, GIC Housing Finance, INOX India, Jindal Steel and Power, C.E. Info Systems, Sanofi India, Tube Investments of India, UPL, Varun Beverages, Zomato.

The NSE has added Balrampur Chini Mills, Canara Bank, GMR Infra, Hindustan Copper, Vodafone Idea, PNB, Sail, and Zee Entertainment Enterprise in F&O on May 13, 2024.

Foreign institutional investors (FII) offloaded shares worth net Rs 2,117.5 crore, while domestic institutional investors (DII) mopped shares worth net Rs 2,709.8 crore on May 10, 2024, according to the provisional data available on the NSE.

WTI crude prices are currently trading at $78.07, representing a decrease of 0.17%, while Brent crude prices stand at $82.52, indicating a decline of 0.32%, as of Monday morning.

The US Dollar Index (DXY), gauging the dollar’s value against a basket of six foreign currencies, recorded a 0.04% increase, trading at 105.34.

According to Reuters, U.S. stocks saw slight gains on Friday, contributing to another weekly advance across all three indexes. Investors scrutinized statements from Federal Reserve officials and anticipated crucial inflation data for the following week. The tech-focused Nasdaq Composite closed marginally lower, shedding just 5.39 points or 0.03% to reach 16,340.87. Meanwhile, the S&P 500 edged up by 8.60 points or 0.16% to finish at 5,222.68, and the Dow Jones Industrial Average saw a rise of 125.08 points or 0.32% to settle at 39,512.84.