After opening the day on a high note, Indian share markets continued the momentum as the session progressed and ended higher.The Indian stock market benchmark snubbed weak cues from global peers and staged a smart recovery in Thursday’s trading sessions.At the closing bell, the BSE Sensex stood higher by 487 points (up 0.7%).Meanwhile, the NSE Nifty closed higher by 156 points (up 0.7%).Axis Bank, SBI, and Nestle were among the top gainers today.HUL, Titan, and Kotak Mahindra on the other hand, were among the top losers today.The GIFT Nifty ended at 22,571 up by 151 points or 0.7% lower.Broader markets ended the day higher. The BSE Mid Cap ended 0.7% higher and the BSE Small Cap index ended 0.5% higher.Sector indices are trading on mixed, with stocks in the metal sector, auto sector, and healthcare sector witnessing buying. Meanwhile, stocks in the consumer durables sector and realty sector witnessed selling pressure.KSB, Trent, and Cummins India hit their respective 52-week highs today.The rupee is trading at 83.3 against the US$.Gold prices for the latest contract on MCX are trading flat at Rs 71,060 per 10 grams.Meanwhile, silver prices are trading 0.2% higher at Rs 82,424 per 1 kg.
Why Nestle Share Price is RisingIn news from the FMCG sector, Nestle India shares jumped 2.6% on 25 April after the FMCG giant reported better-than-expected earnings for the March quarter, cheering investors spooked by a probe against the FMCG major for alleged high sugar content in its baby food.Nestle India’s standalone net profit was up 27% at Rs 9.3 bn from the year-ago quarter. The Maggi maker’s revenue rose 9% to Rs 52.7 bn in the March quarter.The Indian arm of the Swiss food giant Nestle said its board recommended a final dividend of Rs 8.5 per share of Re 1 face value.The stock wiped off the impact from reports stating that the FMCG major adds sugar and honey to its infant milk and cereal products in developing countries like India but not in the European markets.The Food Safety and Standards Authority of India (FSSAI) has reportedly ordered a probe into to alleged violations. All companies selling baby food, including Nestle India, are under the scanner.The counter was trading higher than the closing price on 16 April before the report was released.Nestle India has seen a slew of controversies but has always emerged to come out on top. Nestle would manage the allegations, address the issues, and come out stronger.Nestle India is the 100-year old, second largest FMCG company in India. It dominates the noodle (Maggi) and the hot beverage (Nescafe) categories.After more than a century-old association with the country, Nestle India today has a presence across India with 8 manufacturing facilities and 4 branch offices.
Orient Cement Rallies 11%
Moving on to news from the cement sector, shares of Orient Cement surged over 11% after a media report reported that the Aditya Birla Group is in an advanced stage of negotiation to buy the promoter’s stake in the company.The promoter stake in Orient Cement – held by the Birla family and private investment vehicles – is 37.9%, with a current market value of Rs 19.2 bn. The stock has seen a huge fall of 20% and 14% respectively in February and March in anticipation of a sale.The transition will trigger an open offer for an additional 26% stake by takeover laws, which mandate an incoming promoter or controlling entity to buy the additional shares from an existing minority investor.Orient Cement is set to announce its Q4 earnings on 1 May. In Q3, it saw a 63.5% surge in consolidated net profit to Rs 449.9 m, compared to the previous year. Revenue from operations also increased by 2.6% to Rs 7.5 bn from Rs 7.3 bn.UltraTech Cement aims to achieve a production capacity of 200 MTPA, up from its existing commissioned capacity of 147.3 MTPA, over the next year. The firm will report its earnings on 29 April.
MAS Financial Services Jumps 7%Moving on to news from the finance sector, shares of MAS Financial Services zoomed over 7% on 25 April on account of robust earnings report for the quarter ended March 2024. The company’s consolidated net profit rose 23.3% on-year to Rs 69.4 crore in Q4, and revenue from operations grew by 24.1% YoY to Rs 345.8 crore during the same period.MAS Financial’s disbursements came in strong at Rs 2,866 crore, while assets under management (AUM) rose 25.1 YoY to Rs 107.2 bn. Its provisions stood at Rs 21.4 crore, translating into annualized credit costs of 0.9%.The NBFC’s gross net performing assets (GNPA) and NNPA (based on AUM) were stable sequentially.The company is well positioned to achieve its target AUM CAGR of 20-25%, supported by robust liability management, a strong capital base, and healthy asset quality.More By This Author:Sensex Today Trades Flat; Nifty Below 22,350
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