Sensex Gains Over 200 Points Today, Nifty Above 15,150

On Thursday afternoon Indian indices were trading higher with the Nifty above 15,150 level supported by gains mainly in FMCG and metal stocks. However, PSU banks remained under pressure. Broader markets supported the upmove with smallcaps outperforming.

Passenger vehicle wholesales in India increased by 11.14 percent to 2,76,554 units in the month of January, auto industry body Society of Indian Automobile Manufacturers (SIAM) said on Thursday.

Passenger vehicle sales in January 2020 stood at 2,48,840 units. As per the latest data by SIAM, vehicle sales across categories rose by 4.97 percent to 17,32,817 units in January 2021 as against 16,50,812 units in the year-ago period.

Total two-wheeler dispatches to dealers also 6.63 percent to 14,29,928 units as compared to 13,41,005 units, YoY. Motorcycle sales increased 5.1 percent to 9,16,365 units as against 8,71,886, while scooter sales rose 9.06 percent to 4,54,315 units from 4,16,567 units, YoY. SIAM said that the total sales of PVs was still below 2014-15 levels and that of two-wheelers was still below 2013-14 levels.

Eicher’s consolidated 3QFY21 PAT at Rs 5.3 billion (+7% YoY) was led by a sharp revival in the VECV segment. On Royal Enfield, while demand for the Meteor remains encouraging, the waiting periods on other models has fallen. The company is resolving production bottlenecks at RE.

We set a revised Mar-22 TP of Rs 2,600 (we are raising our FY22/23E by ~13% to factor in the improving production and enhanced VECV profitability). The stock trades at elevated valuations of 51x / 33x on FY21/22E earnings.

Oil prices fell on Thursday, giving up some of the recent strong gains on expectations of slower economic recovery and speculation that the market’s strength could tempt producers like Saudi Arabia to reduce output by less, Reuters reported. Brent crude fell 35 cents, or 0.6%, to $61.12 a barrel, after touching its highest since January 2020 on Wednesday.

The market has been driven higher as the Organisation of Petroleum Exporting Countries and its allies, known as OPEC+, reduced output and coronavirus vaccine rollouts fired up hopes of a recovery in demand. US West Texas Intermediate crude futures slid 34 cents, or 0.6%, to $58.34 a barrel.

Sensex Gains Over 200 Points Today, Nifty Above 15,150 via @marketinvestor
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