Sensex gains 307 pts as financials, metals rally; Nifty PSU Bank jumps 7%

NSE's Nifty ended at 10,142.15, up 113 points or 1.13 per cent.
After a one day blip, equity market once again edged higher on Friday, led by buying in financial, metal and auto stocks. PSU bank stocks advanced the most in trade after state-owned lender, State Bank of India, posted a net profit of Rs 3,581 crore for the March quarter of FY20 (Q4FY20). The profit grew 326.93 per cent from Rs 838 crore clocked in the year-ago quarter (Q4FY19). Sequentially, the profit declined by 35.85 per cent. READ MORE

The S&P BSE Sensex gained 307 points or 0.9 per cent to settle at 34,287.24 while NSE's Nifty ended at 10,142.15, up 113 points or 1.13 per cent. Volatility index, India VIX, slipped dropped nearly 4 per cent to 28.51 levels. 

On a weekly basis, Sensex rallied 5.7 per cent and Nifty added 5.86 per cent. 

On the sectoral front, the Nifty PSU Bank index gained around 7 per cent to 1,386.75 levels with all the 13 constituents advancing. Nifty Metal index rallied nearly 4 per cent to 2,049.70 levels. On the other hand, Nifty FMCG was the only index that ended in the red. The index settled 0.27 per cent lower at 29,542 levels. 

In the broader market, both the mid and smallcap indices outperformed the benchmarks. The S&P BSE MidCap index climbed 1.8 per cent to 12,554.16 while the S&P BSE SmallCap index surged 2.51 per cent to 11,855 levels. 

Global markets

World stocks held their ground near three-month highs as the euro hit its highest level since March 10, thanks to Europe’s stimulus boost, fuelling hopes for a global rebound. 

MSCI’s broadest index of Asia-Pacific shares outside of Japan rose 0.7 per cent, reversing early losses to stay near a 12-week top. The index is up about 7.4 per cent this week, on track for its best weekly showing since December 2011.

E-mini futures for the S&P 500 rose 1 per cent.

In Europe, shares resumed their rally as a bumper stimulus from the European Central Bank fuelled hopes of a faster economic recovery. The ECB on Thursday expanded its money-printing scheme to cushion a potential fall in output of up to 12 per cent this year, even as governments spend record amounts to preserve jobs while restrictions keep businesses shuttered.

In commodities, oil prices moved higher as traders await cues from OPEC+ meeting that could take place as soon as this weekend where major oil producers will discuss whether to extend record production cuts.

(With inputs from Reuters)


4:11 PM IST Indian indices, led by financials, came back strongly from yesterday’s indecisiveness, amidst positive global cues. The global positive sentiment was driven by additional stimulus measures from ECB. Investors are banking on a global economic recovery, fuelled by central bank policy measures to support the respective economies. Investors need to be a bit cautious since valuations are running high and the expected recovery is not yet visible in the numbers.

3:44 PM IST

3:43 PM IST

3:36 PM IST The S&P BSE Sensex gained 307 points or 0.9 per cent to end at 34,287.24,while NSE's Nifty ended at 10,142.15, up 113 points or over 1 per cent.

3:27 PM IST Shares of public sector banks (PSBs) rallied up to 10 per cent on Friday on the National Stock Exchange (NSE) after the State Bank of India (SBI) reported improvement in assets quality on year-on-year (YoY) as well as sequential basis. SBI, Jammu & Kashmir Bank, Punjab National Bank (PNB), Bank of Baroda, Canara Bank and Indian Bank among the PSBs were up in the range of 7 per cent to 10 per cent on the NSE. READ MORE

3:19 PM IST >> Stock quotes above face value of Rs 10 per share

3:16 PM IST

3:06 PM IST

2:56 PM IST

2:55 PM IST >> Slippages Ratio for FY20 has declined to 2.16% from 2.42% as at the end of 9MFY20; >> Credit Cost as at the end of FY20 has declined 79 bps YoY to 1.87%.

2:44 PM IST

2:42 PM IST -- Have gained market share in both deposits and loans: SBI Chairman -- Holding almost 78 per cent provision on corporate loan book: SBI Chairman

LIVE UPDATES

MARKET COMMENT:: Vinod Nair- Head of Research- Geojit Financial Services

Indian indices, led by financials, came back strongly from yesterday’s indecisiveness, amidst positive global cues. The global positive sentiment was driven by additional stimulus measures from ECB. Investors are banking on a global economic recovery, fuelled by central bank policy measures to support the respective economies. Investors need to be a bit cautious since valuations are running high and the expected recovery is not yet visible in the numbers.

SECTOR WATCH:: Nifty FMCG index ends in the red


MARKET AT CLOSE:: Gainers and losers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex gained 307 points or 0.9 per cent to end at 34,287.24,while NSE's Nifty ended at 10,142.15, up 113 points or over 1 per cent.

PSBs rally post SBI March quarter results; Nifty PSU Bank index up 7%

Shares of public sector banks (PSBs) rallied up to 10 per cent on Friday on the National Stock Exchange (NSE) after the State Bank of India (SBI) reported improvement in assets quality on year-on-year (YoY) as well as sequential basis. SBI, Jammu & Kashmir Bank, Punjab National Bank (PNB), Bank of Baroda, Canara Bank and Indian Bank among the PSBs were up in the range of 7 per cent to 10 per cent on the NSE. READ MORE

MARKET UPDATE:: Vodafone Idea up 21% at Rs 10.78, first time since July 26, 2019

>> Stock quotes above face value of Rs 10 per share

INDEX GAINERS:: Tata Steel jumps 6%


MARKET CHECK:: Top 5 gainers on the BSE at this hour


BUZZING STOCK:: Vodafone Idea surges 17%


SBI Q4 NOS:: Bank's provision coverage ratio stood at 83.6% Vs 81.2% (QoQ)

>> Slippages Ratio for FY20 has declined to 2.16% from 2.42% as at the end of 9MFY20;
>> Credit Cost as at the end of FY20 has declined 79 bps YoY to 1.87%.

RESULT IMPACT:: SBI extends gain, up 8% now


NEWS ALERT | Moratorium availed by 21.8 per cent customers, 23 per cent of term loans: SBI Chairman

-- Have gained market share in both deposits and loans: SBI Chairman

-- Holding almost 78 per cent provision on corporate loan book: SBI Chairman

SBI posts Q4 net profit of Rs 3,581 crore on one-time gain from SBI Cards

State Bank of India (SBI) on Friday reported standalone net profit of Rs 3,581 crore in the March quarter of FY20 (Q4FY20). The profit grew 326.93 per cent from Rs 838 crore clocked in the year-ago quarter (Q4FY19). Sequentially, the profit declined 35.85 per cent. The profit was supported by one-time gain of Rs 2,731.34 crore from the stake sale in SBI Cards done during the quarter. READ MORE

NEWS ALERT | Holding total provision of Rs 5,767 crore for IBC accounts: SBI

-- Made provision of Rs 405 crore towards wage revision: SBI

-- Q4 includes one-time gain of Rs 2,731.3 crore on stake sale in SBI Cards

SBI Q4 RESULTS | Net profit comes in at Rs 3,581 crore

-- Net NPA at Rs 51,871 cr

-- Net NPA at 2.23 per cent

-- Fresh slippages at Rs 8,105 cr vs Rs 16,525 cr (QoQ)

-- Net interest income (NII) at Rs 22,766 crore

-- Agri slippages at Rs 5,238 crore

-- Personal loan slippages at Rs 600 crore vs Rs 821 crore (QoQ)

MARKET CHECK :: Indices hold gains; Sensex up 400 pts now


Rupee closing

Rupee ends flat at 75.58/$ vs Thursday's close of 75.57 against the US dollar

Voda Idea, IDBI Bank, Saregama and 7 other stocks rally over 50% in 1 week

IDBI Bank was locked in the upper circuit for the fifth straight day and has zoomed 89 per cent in the current week as the bank turned profitable in March quarter after 13 straight quarters of loss. The lender posted a profit of Rs 135 crore for the March quarter (Q4FY20) on account of recoveries from bad loans. It had posted a net loss of Rs 4,918 crore in the corresponding period of last year. READ MORE

EXPERT VIEW :: Jyoti Roy, DVP Equity Strategist at Angel Broking on Jio-Mubadala deal

RIL's digital business (JIO Platforms) has attracted investments from marquee investors like Facebook, Silver Lake Partners, General Atlantic, KKR, Vista Equity Partners and Mubadala of INR 87,655 cr, which along with the right issue of INR 53,125 cr. will  help the company bring down it's debt levels by almost 1.4 lakh cr. Investments by such marquee names in Jio platforms also helps increase our confidence in the company's strategy to transform from a brick and mortar company into a digital play. 
 
RIL has built up a dominant position in both the telecom and retail business where it is the marker leader. We believe that the telecom and retail business will be key growth drivers for the company over the next few years while the company’s foray into e-commerce through it’s JioMart platform will be a value creator for the shareholders in the long run. We currently have a BUY rating on the stock with a SOTP based target price of INR 1,748.

Saregama Q4 results | Consolidated net profit slips 7.1 per cent to Rs 15.8 crore vs Rs 17 cr YoY

-- Cons revenue down 14.3% YoY at Rs Rs 108.7 cr vs Rs 127 cr

-- Cons Ebitda margin at 19.8% vs 12.9% YoY

BROKERAGE VIEW :: HDFC Institutional Equities on Cholamandalam Investment & Finance

Maintains 'Buy'; Target price: Rs 225

CIFC’s operating performance was a tad below our estimates, while earnings were considerably lower as CIFC made significant proactive provisions (Rs 5.0bn, 83bps of AUMs). We’ve lowered our earnings to factor in (1) higher provisions, given that 76% of the book is under moratorium, and (2) slower growth. Nevertheless, CIFC remains our top NBFC pick, given (1) its strong liquidity and funding profile, (2) superior historical asset quality trends and (3) diversified portfolio.

BROKERAGE VIEW :: Anand Rathi on Heidelberg Cement

Maintains 'Buy' Target price: Rs 207

Management said prices would be firm on low volumes (a `10 price hike, post-lockdown). The company continues to operate at negative working capital. Besides NCDs of `1.25bn repaid in FY20, management spoke of repaying `1.25bn in FY21 and `1.2bn in FY22 from internal accruals. We expect a net D/E of -0.2x in FY21 (vs. -0x in FY20). Issues such as migrant labour, logistics, fly-ash availability, liquidity crunch, etc., would continue in the short run. We retain our Buy rating, at a
higher target of `207 (9.2x FY22e EV/EBITDA). Risks: Higher petcoke and diesel prices, extension of the lockdown.

Europe trades higher in early trends

(Source: Reuters)


BROKERAGE VIEW :: HDFC Institutional Equities on Aurobindo Pharma

Maintaions 'Buy'; Target price: Rs 835

Aurobindo beat our Revenues/EBIDTA/Adj.PAT forecasts by 5%/14%/17%, aided by strong performance across markets, better product mix and currency tailwinds. While Q1FY21 is expected to be muted, the underlying growth prospects for the business remain strong. Steady progress on differentiated pipeline will drive long term earnings sustainability in our view. Improvement in balance sheet is comforting with net reduction of USD365mn in FY20 and stable working capital days. The company intends to be net debt free by FY22. We increase our earnings estimates by 4-6% to incorporate slightly higher gross margin. Our revised TP of Rs835 is based on 14x FY22 EPS.

Premium liquor segment may prove to be a hangover for United Spirits

The stock of United Spirits (UNSP) is up marginally, even as the firm posted a sharp drop in revenue and profit for the March 2020 quarter (Q4) last week. Although positive news flow such as the permission for home delivery/online sale of liquor, re-opening of shops, and expectations of margin gains have supported the stock, which is up 30 per cent from its March lows, there are reasons for investors to be cautious. READ MORE

Liquor, wine, Alcohol, Illustration: Ajay Mohanty

Covid-19 impact: Nifty50 scorecard shows worst profit slump in 6 years

Profits at NSE Nifty 50 Index members fell about 15% last quarter from the same period last year, the worst drop since at least 2014, according to Bloomberg-compiled data. About two thirds of the firms in index have announced results for the March quarter so far. Communications, energy and industrials recorded the steepest declines on an adjusted basis. READ MORE

BUZZING STOCK:: InterGlobe Aviation jumps over 5%


UltraTech, ACC: More steam left in cement stks as follow-up buying resumes

Cement stocks have been on an upswing since the last few sessions in an anticipation of a pickup in construction activity across the country. According to a report by Business Standard, capacity utilisation at cement companies has improved significantly in May after a sharp drop in April.
 
Individual house builders (IHB) segment, which drives 55 per cent of the annual demand, has been reviving after construction activities were permitted by various state governments. READ MORE

Result today :: SBI Cards stake sale to aid SBI's Q4 profit; NPA levels eyed

India’s largest public sector bank, State Bank of India (SBI), is scheduled to report its March 2020 quarter result (Q4FY20) on Friday, June 5. While analysts are positive on the bank’s net profit, which they expect to jump on a year-on-year (YoY) basis, loan growth is seen logging a tepid growth. Management’s commentary on anticipated second wave of stress will be watched out for, analysts say. Given SBI's dominant exposure in the area, they expect some provisions to be made this quarter. READ MORE

Result today :: Analysts see muted nos for L&T amid Covid-19; order inflow eyed

Engineering and construction conglomerate, Larsen & Toubro (L&T), is expected to report muted numbers for the quarter ended March 2020 due to project delays and a slowdown in execution owing to Covid-19 lockdown, analysts say.
 
Usually, Q4 is an execution-heavy quarter for capital goods players, but the lockdown has affected execution and deliveries for most companies. However, being a diversified entity, L&T is expected to fare better than others. READ MORE

NEWS ALERT

MARKET UPDATE:: Broader indices outperform benchmarks


APL Apollo Tubes gains after giving Covid-19 update


NEWS ALERT | Zydus Cadila receives final approval from US FDA for Atazanavir Capsulres: Exchange filing.

-- Atanazavir is an antiretroviral drug, used to treat infection of the Human Immunodeficiency Virus (HIV)

-- It is used in combination with other antiretroviral drugs to treat HIV-1 infection

OPEC+ to discuss output cut on Saturday as oil dips over uncertainty

Brent crude futures were down 8 cents, or 0.2%, at $39.91 a barrel as of 0106 GMT and US West Texas Intermediate (WTI) crude futures fell 15 cents, or 0.4%, to $37.26 a barrel. Still both benchmarks are set for a sixth weekly gain on the back of output cuts and signs of improving fuel demand as countries begin to ease restrictions to prevent the spread of the coronavirus. READ MORE

OPEC+ to discuss output cut on Saturday as oil dips over uncertainty

Oil prices eased slightly on Friday as markets wait to see whether major producers will commit to an extension of record production cuts to support oil prices. Brent crude futures were down 8 cents, or 0.2%, at $39.91 a barrel as of 0106 GMT and US West Texas Intermediate (WTI) crude futures fell 15 cents, or 0.4%, to $37.26 a barrel. Still both benchmarks are set for a sixth weekly gain on the back of output cuts and signs of improving fuel demand as countries begin to ease restrictions to prevent the spread of the coronavirus. READ MORE

Sugar stocks rally; Balarmpur Chini Mills, Dhampur Sugar soar over 15%

Dalmia Bharat Sugar and Industries, Dhampur Sugar Mills and Balrampur Chini Mills surged between 15 per cent and 20 per cent in the intra-day trade, while Avadh Sugar & Energy and Dwarikesh Sugar Industries were locked in the upper circuit of 10 per cent on the BSE. With malls and restaurants being allowed to re-open from June 8, sugar demand is expected to rise. Therefore, along with the summer demand, it is expected that mills may be able to sell the entire June quota, said a Business Standard report. READ MORE 


UTI AMC initial public offering faces a delay over compliance issues

The much-awaited initial public offering (IPO) of UTI Asset Management Company (AMC) is facing a delay in obtaining approval from markets regulator Securities and Exchange Board of India (Sebi), even after six months of filing its offer document. People in the know said Sebi has reservations over certain compliance issues. These include appointment of the permanent chief executive officer (CEO) and alleged violation of overseas investment norms by the fund house involving its Mauritius entity. READ MORE 


Tata Group stocks gain in a volatile market

COMPANY NAME LATEST HIGH CHG
(rs)
CHG(%)
TATA MOTORS 106.50 107.00 8.00 8.12
TATA TELE. MAH. 3.14 3.16 0.26 9.03
TATA POWER CO. 43.30 44.10 0.80 1.88
TATA STEEL 340.00 340.60 19.85 6.20
Click here for the full list

NEWS ALERT :: Sun Pharma initiates Phase II clinical trial on AQCH, a potential treatment for COVID-19 patients

>> Sun Pharma announced that it has commenced Phase II clinical trial on AQCH, a phytopharmaceutical (plant derived) drug for treatment of COVID-19. The Company received approval from the Drugs Controller General of India (DCGI) for conducting Phase II clinical trial in April this year

>> The clinical trial will be conducted across 12 centers in India in 210 patients. The treatment duration for patients will be 10 days. The results of the clinical trial are expected by October 2020. 

(Via BSE filing)

MARKET CHECK


Despite weak outlook, open offer to support Wabco India's stock price

Wabco India is one of the few auto component companies which have posted positive returns over the last one year. While its core market of commercial vehicles (CV) has been the worst impacted in the auto segment, the stock price gains are largely because of the open offer.
 
After the global acquisition of Wabco by ZF Friedrichshafen AG of Germany (ZF), the acquirer is buying out minority shareholders at a revised open offer price of Rs 7,067.51 a share.  READ MORE

NEWS ALERT:: RBI announces creation of Payments Infrastructure Development Fund


Street impressed by Polycab's margin expansion in fourth quarter of FY20

Polycab India, the wire and cable major, did see its March quarter (Q4) revenues getting impacted by lockdown. However, its revenue decline was lower than peers which, along with a good operating performance, meant that its net profit continued to grow.
 
This has helped the stock, which had halved from February highs and was languishing since, rebound 13 per cent in three trading sessions post results. READ MORE

MARKET COMMENT :: Chris Wood of Jefferies

Just how out-of-whack oil prices become is shown by the gold/oil price ratio which reached an unprecedented extreme in late April. The gold/oil price ratio surged to a record 168x on 21 April based on the WTI crude oil price. If that was another signal to buy oil, the extreme divergence has now clearly unwound. Still GREED & fear continues to view oil stocks as an obvious play on the re-opening theme while facing the same obvious risk as other cyclical stocks, namely a renewed spike in infections.

The dramatic decline in oil production comes on top of the trend GREED & fear had identified previously as the reason to be structurally bullish on oil in the next several years despite the alternative energy story. That is that US shale production has peaked because of geological factors, namely the best areas of shale have already been exploited, a process known as “high grading”.
 
All this means that there is the potential for the oil price to explode should global demand return in 2021 to the pre Covid-19 100m barrels/day level. Still all this is subject to the renewed “spike” in infections risk. But that risk can only be stress tested by re-opening economies which, thankfully, is now happening, albeit incrementally.

(Source: Wood's weekly note to investors, GREED & fear)

Chris Wood

Strong Q4 performance, debt reduction show Aurobindo Pharma in good health

Aurobindo's strong performance for the quarter ending March 2020 (Q4FY20) was driven by good execution across geographies and business segments. Revenues at Rs 6,158 crore grew 16.4 per cent year-on-year beating the consensus estimate of Rs 5,938 crore. READ MORE 


Hexaware Technologies hits 20% upper circuit on voluntary delisting plan

“HT Global IT Solutions Holdings, the promoter of the company has expressed its intention to acquire all fully paid up equity shares of the company that are held by the public shareholders of the Company,” Hexaware Technologies said in a exchange filing. The company’s shares are presently listed on the BSE and the National Stock Exchange of India (NSE). READ MORE

Bharti Airtel up 3% on Amazon interest buzz, pares gain post clarification

The talks between Bharti and Amazon are at an early stage and the deal terms could change, or an agreement may not be reached, the report said quoting unnamed sources. If talks to buy a stake fail, the companies could also look at a commercial transaction that could give Bharti's customers cheap access to Amazon products, the report said. READ MORE

Credit funds could see unlisted exposure rise over high redemptions

High redemptions in credit-risk funds could further increase exposure levels of such funds to unlisted debt papers. The schemes in this category have seen their asset size shrink and this is likely to lead to a rise in the proportion of unlisted debt papers. READ MORE

Vodafone Idea re-enters top-100 most-valued firms list, zooms 129% in 1 mth

With market capitalisation (m-cap) of Rs 26,522 crore, Vodafone Idea stood at number 96th position in the overall m-cap ranking at 09:27 am, the BSE data shows. The company has seen Rs 14,625 crore m-cap addition in the past one month and notched up 75 positions from 171th position as on May 5, 2020. The company fell out from the top 200 positions and was at 243rd ranking with an all-time low m-cap of Rs 8,477 crore on November 11, 2019. READ MORE

BROKERAGE VIEW:: Edelweiss Securities on Aurobindo Pharma

Aurobindo Pharma (ARBP) posted a strong Q4FY20. The key highlight is continued debt reduction, which has been a cause for concern. While the termination of Sandoz transaction had abated concerns over ARBP’s ballooning debt, management commentary—on advancing debt retirement from end-FY23 to end-FY22—has further allayed them. On strategy, management indicated a marked shift from inorganic growth to a more sustainable R&D-led expansion; we support it and are raising the target multiple for ARBP by 50%, from 10x to 15x, while maintaining a ~30% discount to sector multiple of 22x considering ARBP’s lack of branded business and regulatory risk (four OAIs, one warning letter). The FY20 outperformance also prompts a 10% increase in FY22E EPS. Retain ‘HOLD’ with a revised TP of Rs 825 (earlier Rs 500).

RIL up 2%, hits new high as Abu Dhabi's Mubadala to buy 1.85% stake in Jio

Shares of Reliance Industries (RIL) hit a new high of Rs 1,618, up 2.4 per cent on the BSE on Friday after the company said that Abu Dhabi state fund Mubadala Investment Co will buy a 1.85 per cent stake in its digital unit, Jio Platforms, for Rs 9,093.6 crore. The stock surpassed its previous high of Rs 1,603 touched on December 20, 2019. CLICK TO READ FULL REPORT

Venky's rallies 16% as circuit revised from 5% to 20%


NEWS ALERT :: L&T Construction bags order in the range of Rs 2,500-5000 cr

>> The Heavy Civil Infrastructure Business of LOT Construction has secured an order from the Irrigation and Command Area Development Department (lEtCAD), Government of Telangana, which is undertaking the Sita Rama Lift Irrigation scheme to irrigate a command area of about 9.36 lakh acres in the districts of Khammam, Kothagudem and Mahabubabad.



Balrampur Chini Mills jumps 9%


IRCTC's circuit filter has been revised from 5% to 20%


Result impact | DLF slips 3%

>> Realty major DLF on Thursday reported a consolidated net loss of Rs 1,857.76 crore in the fourth quarter of last fiscal year, mainly due to reversal of deferred tax assets (DTA) as it adopted a lower tax rate. It had posted a net profit of Rs 436.56 crore in the year-ago period, the company said in a regulatory filing.


RITES advances 3%

>> RITES Ltd on Thursday said its subsidiary REMCL has secured its largest mandate from Indian Railways for tendering, installation, supervision and managing power supply from three GW solar energy plants, which will be set up on vacant Indian Railways' land. The project will be divided into three phases of one gigawatt (GW) each and the entire installation is expected to be completed by 2022-23.


Ahead of Q4 nos | L&T up over 1%


Ahead of results | SBI gains 2%


Bharti Airtel up 1%


Reliance Industries gains 1.5% on Mubadala investment


Sectoral trends on NSE at open


Sensex Heatmap at Open


FIRST TRADE | Nifty nears 10,100-mark


FIRST TRADE | Sensex opens 250 pts higher


Top gainers and losers on S&P BSE Sensex at Pre-open


Market at Pre-open


Market at Pre-open


Stocks to watch: RIL, SBI, L&T, DLF, Bharti Airtel, RITES, Exide Industries

RIL: Reliance Industries Ltd has said that Abu Dhabi state fund Mubadala Investment Co will buy a 1.85 per cent stake in its digital unit, Jio Platforms, for Rs 9,093.6 crore. 
 
Bharti Airtel: Amazon.com is in early-stage talks to buy a stake worth at least $2 billion in mobile operator Bharti Airtel, three people with knowledge of the discussions told Reuters, in a move that could turbocharge India's digital economy. READ MORE

NEWS ALERT :: Bharti Airtel clarifies on Amazon investment report

>>  It is clarified the Company routinely works with all digital and OTT players and has deep engagement with them to bring their products, content and services for our wide customer base. Beyond that, there is, at this stage, no such proposal in consideration.

Gold price today: Rs 46767 per 10 gm; silver at Rs 47,930 per kg

Domestic gold futures jumped to as high as Rs 46,600 per 10 grams on Thursday amid gains in global rates. MCX gold futures rose by Rs 501 per 10 grams - or 1.09 per cent - to Rs 46,600 per 10 grams mark at the strongest level during the session, compared to their previous close of Rs 46,099 per 10 grams. The gold futures contract (delivery on June 5) was last seen trading at the strongest level of the day at Rs 46,600 per 10 grams. READ MORE

BROKERAGE VIEW :: Motilal Oswal Financial Services on Ashok Leyland

CMP: Rs 46 | TP: Rs 61 | Reco: Buy 

>>  Unlike PV, modular strategy is not common in M&HCV globally due to the segment having a very high number of SKUs as well as deeper changes required in the normal way of doing business. This could be an important driver of market share gains for AL (as it improves its response time) as well as a better application fit for the customer. This, coupled with upcoming LCV launches, would expand AL’s addressable market in India (in LCV by 2x) and globally (by offering a very wide range of products, from LCV to M&HCV). While near-term challenges are deep, AL seems to be better positioned to come out stronger and grow faster than the industry in two to three years. The stock trades at 16.7x FY22E EPS and 8x EV/EBITDA. 

BROKERAGE VIEW :: Motilal Oswal Financial Services on Aurobindo Pharma

CMP: Rs 759 | TP: Rs 880 | Reco: Buy

>> We raise ARBP’s EPS estimate for FY20/FY21 by 4.4%/9%, and expect a 9% earnings CAGR over FY20–22, led by new launches and increased market share in key markets (US/EU). We continue to value ARBP at 13x 12M forward earnings and arrive at a price target of INR880. We remain positive on ARBP on account of a robust ANDA pipeline, pending approval, as well as a niche product pipeline build-up for the developed markets.

BROKERAGE VIEW :: Motilal Oswal Financial Services on BPCL

CMP: Rs 357 | TP: Rs 425 | Reco: Neutral

>> Refining margins are expected to remain weak for a few more months in light of poor global demand growth. Also, the huge discounts enjoyed by the company
in the Mar-May’20 (~USD5-7/bbl) have been eroded; Jun’20 crude prices are now at a premium (~USD2/bbl).

>> OMCs have not taken any price hikes in retail selling prices and gross margins now hover at just ~INR2/liter. However, the company has reiterated that in the
long term, marketing margins usually normalize. In FY20, diesel marketing margin was similar to that in FY19, while petrol marketing margin was marginally lower.

>> In lieu of the poor refining margin environment, we value BPCL at 1.8x FY22E PBV, at a 15% discount to the average over FY15-18 when there was true
deregulation of auto fuels without pricing intervention from the government. 

Vodafone Idea stock doubles in just one month, CLSA sees more upside

The stock on Thursday ended at Rs 8.9, up 2.15 since May 6. While the Street has been largely bullish on the telecom sector, high debt and uncertainty over payment of adjusted gross revenue (AGR) dues had kept a leash on Vodafone Idea’s stock price even as rival Bharti Airtel continued to charge ahead. READ MORE

Abu Dhabi's Mubadala to buy 1.85% stake in Jio Platforms for 9093.6 crore

Reliance has now sold a combined 19% interest in Jio Platforms, which houses movie, music apps and telecoms venture Jio Infocomm, in six fundraising deals including a 9.99% stake sale to Facebook Inc for $5.7 billion. READ MORE

Buy Sun Pharma June Futures at Rs 496: Nandish Shah of HDFC Securities

Buy Sun Pharma June Futures at Rs 496
 
Target: Rs 515
 
Stop Loss: Rs 487
 
Lot Size: 1,250
 
Rationale:
 
-- We have seen Long build-up in the Sun Pharma futures, where we have seen 5 per cent rise in the Open Interest (Prov) with price rising by 4 per cent. READ MORE

Sell Nifty for the target of 9,800: Nilesh Jain of Anand Rathi

SELL NIFTY | TARGET: 9,800 | STOP LOSS: 10,180
 
The NIFTY index broke its winning streak of six consecutive sessions and formed a doji candlestick pattern on the daily chart which indicates indecisiveness amongst participants. Now, we would like to reiterate our cautious stance on the markets and one should refrain from creating any aggressive long position at higher levels. We advise aggressive traders to initiate a short position with a strict stop loss of 10,180. READ MORE

Bulk deals on NSE as on Thursday

Bulk deals on BSE as on Thursday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg


Oil check

>> At 8:06 am, Brent Crude futures were at $39.84 per barrel, down 0.38 per cent.

>> US WTI, meanwhile, was at $37.17 per barrel, down 0.64 per cent.
 

SGX Nifty indicates positive start for indices

>> At 8:03 am, the index was at 10,050 level, up 35 points or 0.35 per cent. 

Asia's stock rally set to pause for breath

Source: Reuters


S&P 500 closes down, snapping four-day rally

Source: Reuters


Good morning!

Welcome to the Business Standard live blog.

Catch all the live market updates here.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel