MARKET: Sensex surges 1,028 pts, oil & gas stocks rally; India VIX down 10%

Topics Markets | MARKET WRAP

Hindustan Unilever (HUL) hit its fresh 52-week high of Rs 2,311.85 in the intra-day session
A surprise expansion in China's manufacturing activity in March lifted investor sentiment on Tuesday, thus leading to around 4 per cent rally in the benchmark indices. China’s official Purchasing Managers’ Index (PMI) rose to 52 in March from a collapse to a record low of 35.7 in February. 

The S&P BSE Sensex gained 1,028 points or 3.62 per cent to settle at 29,468.49 on the last day of the financial year 2019-20 (FY20). Of 30 constituents, 26 advanced and 4 declined. FMCG major ITC (up around 8 per cent) emerged as the top gainer of the index. RIL (up around 8 per cent),  ONGC (up 7.64 per cent), and Tata Steel (up over 6 per cent) were the other major gainers. 

NSE's Nifty ended at 8,598, up 317 points or 3.82 per cent. 

Oil and gas stocks gained big during the day on sharp decline in the crude oil prices. The S&P BSE Oil & Gas index rallied around 9 per cent to 10,021 levels. BPCL, HPCL, and GAIL were up in the range of 15-8 per cent. READ MORE

FMCG and metal stocks too made decent advances. While the S&P BSE Metal index jumped over 5 per cent to 5,713 levels, the S&P BSE FMCG index added around 6 per cent to 10,255 levels. Among individual stocks, Nestle India rallied 5 per cent to Rs 16,425 in intra-day trade. The stock ended at Rs 16,289, up around 4 per cent. 

Hindustan Unilever (HUL) hit its fresh 52-week high of Rs 2,311.85 in the intra-day session before settling at 2,298, up over 5 per cent. READ MORE

 
On the other hand, IndusInd Bank tanked around 15 per cent to Rs 351 apiece on the BSE. READ MORE

Volatility index India VIX slipped over 10 per cent to 64.49 levels. 

In the broader market, the Nifty MidCap 100 index gained over 2 per cent to 11,704 and the Nifty SmallCap index rose over 3 per cent to 3,595 levels. 

Global Markets

Asian shares were set to close out a calamitous quarter by eking out a small rally on Tuesday as factory data from China held out the hope of a revival in activity, even as much of the rest of the world shut down. China’s official manufacturing purchasing managers’ index (PMI) bounced to 52.0 in March, up from a record-low 35.7 in February and topping forecasts of 45.0.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.94 per cent but that still left it down 22 per cent for the quarter, its worst performance since 2008. Shanghai blue chips rose 0.4% and South Korea 1.87%. Japan’s Nikkei eased 1%, to be down 20% since the start of the year.

E-Mini futures for the S&P 500 were flat, EUROSTOXX 50 futures rose 0.7 per cent while FTSE futures fell 0.25 per cent.

In commodity market, oil recovered ground on Tuesday after US President Donald Trump and Russian President Vladimir Putin agreed to talks to stabilize energy markets, with benchmarks climbing off 18-year lows hit as the coronavirus outbreak cut fuel demand worldwide.

(With inputs from Reuters)


4:07 PM IST "Mirroring positive global market, Indian markets also reacted positively on the last day of the financial year. Almost all sectoral indices were up & volatility index was also down by 10%. Chinese economic data, Industrial production numbers improved and helped the global momentum, especially in Metals, Pharma and FMCG. FII selling also slowed down over the last 2 days, although that may not be sustainable. The performance of global market will be the key driver for Indian market in the near-term".

3:55 PM IST

3:50 PM IST

3:40 PM IST The S&P BSE Sensex rallied 1,028 points or 3.62 per cent to end at 29,468.49 while NSE's Nifty50 ended at 8,598, up 317 points or 3.82 per cent. 29,468.49

3:25 PM IST The VST Tillers & Tractors stock witnessed a sharp re-rating tracking the weak P&L performance and consequent deterioration of return ratios in the recent past. Return ratios for VST have corrected from consistent 20%+ RoCE levels seen till FY18 to 11.5% in FY19. With limited margin improvement guidance, we foresee return ratios remaining below 10%, which is below our comfortable range. VST is a net cash positive company (cash & investments on books at ~ Rs 150 crore) but its incremental spend on new product development catering to the >15 hp crowded tractor space erodes our margin of safety on the stock. We assign a HOLD rating to VST, valuing the company at Rs 660 i.e. 12.5x P/E on FY22E numbers. We will wait for an improvement in financials before any meaningful change in our stance.

3:18 PM IST

3:09 PM IST  Budget carrier SpiceJet has decided to cut 10-30 per cent salary of all its employees in March, with Chairman Ajay Singh opting for highest 30 per cent trimming in compensation, the airline said in an e-mail communication to the staff on Tuesday. "SpiceJet management has decided to implement a pay cut between 10-30 per cent in March across our employee base. Our Chairman and Managing Director (Ajay singh), in fact, has opted for the highest cut of 30 per cent in compensation," the airline said in the communication. READ MORE

3:03 PM IST

3:02 PM IST Amid the nationwide lockdown to check the Covid-19 spread, India will quietly transition to BS-VI, the most stringent emission standard for the automobile industry anywhere in the world. R C Bhargava, chairman of Maurti Suzuki India, speaks to Arindam Majumder about the learning, challenges, and scope of a price hike in a bruised economy. READ INTERVIEW HERE

2:56 PM IST

2:54 PM IST

LIVE UPDATES

MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial Services

"Mirroring positive global market, Indian markets also reacted positively on the last day of the financial year. Almost all sectoral indices were up & volatility index was also down by 10%. Chinese economic data, Industrial production numbers improved and helped the global momentum, especially in Metals, Pharma and FMCG. FII selling also slowed down over the last 2 days, although that may not be sustainable. The performance of global market will be the key driver for Indian market in the near-term".

Sectoral gainers and losers on the NSE


MARKET AT CLOSE | Top gainers and losers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex rallied 1,028 points or 3.62 per cent to end at 29,468.49 while NSE's Nifty50 ended at 8,598, up 317 points or 3.82 per cent. 29,468.49

BROKERAGE VIEW:: ICICI Securities on VST Tillers Tractors

The VST Tillers & Tractors stock witnessed a sharp re-rating tracking the weak P&L performance and consequent deterioration of return ratios in the recent past. Return ratios for VST have corrected from consistent 20%+ RoCE levels seen till FY18 to 11.5% in FY19. With limited margin improvement guidance, we foresee return ratios remaining below 10%, which is below our comfortable range. VST is a net cash positive company (cash & investments on books at ~ Rs 150 crore) but its incremental spend on new product development catering to the >15 hp crowded tractor space erodes our margin of safety on the stock. We assign a HOLD rating to VST, valuing the company at Rs 660 i.e. 12.5x P/E on FY22E numbers. We will wait for an improvement in financials before any meaningful change in our stance.

MARKET CHECK


SpiceJet announces 10-30% cut in March salary for all employees

 Budget carrier SpiceJet has decided to cut 10-30 per cent salary of all its employees in March, with Chairman Ajay Singh opting for highest 30 per cent trimming in compensation, the airline said in an e-mail communication to the staff on Tuesday. "SpiceJet management has decided to implement a pay cut between 10-30 per cent in March across our employee base. Our Chairman and Managing Director (Ajay singh), in fact, has opted for the highest cut of 30 per cent in compensation," the airline said in the communication. READ MORE

MARKET UPPDATE:: Broader indices underpeform benchmarks


Maruti Suzuki India chairman on challenges, price hike after BS-VI shift

Amid the nationwide lockdown to check the Covid-19 spread, India will quietly transition to BS-VI, the most stringent emission standard for the automobile industry anywhere in the world. R C Bhargava, chairman of Maurti Suzuki India, speaks to Arindam Majumder about the learning, challenges, and scope of a price hike in a bruised economy. READ INTERVIEW HERE

Heatmap: S&P BSE Sensex at this hour


BUZZING STOCKS:: SAIL zooms 13%


Stocks that hit 52-week lows today in an otherwise strong market

MARKETS IN FY20

>> S&P BSE Sensex tumbles 24%

>> NSE's Nifty slumps 29% 

>> MidCap index down 37%

>> SmallCap Index falls 48%

>> Nifty Pharma index down 14%

>> Nifty Metal index slides 52%

>> BSE Oil and Gas index tanks 20%

>> Nifty Auto index tanks 44%

NEWS ALERT

MARKET CHECK | Metal stocks rally


European shares inch higher but set for worst quarter since 2002: Reuters

European stocks inched higher on Tuesday with investors buying into defensive sectors as they awaited further signs that the economy could weather the fallout from a near total global shutdown to curtail the spread of the coronavirus pandemic.
 
The pan-European STOXX 600 index was up 1.1% at 0706 GMT, with real estate stocks .SX86P, utilities .SX6P and telecoms .SXKP — usually considered stable during heightened volatility — adding between 0.9% and 1.5%.
 
Still, the benchmark index was set to end its worst quarter since 2002, with investor confidence far from stable amid a rout that erased more than $3 trillion from the value of European firms in just over a month.

Venky's trades near 2-week high


MARKET ALERT :: Indices near day's high


NEWS ALERT :: KPIT Tech promoter releases pledge on 35.25 lakh shares (1.29% equity) on March 27


European markets open higher


FMCG shares in focus; Hindustan Unilever, Nestle India near record highs

Shares of fast moving consumer goods (FMCG) companies gained on Tuesday with Nestle India and Hindustan Unilever (HUL) ralliying up to 5 per cent in intra-day trade as analysts see limited impact on the sector due to the COVID-19 outbreak. Both these stocks are trading close to their respective record high levels on the National Stock Exchange (NSE). READ MORE

BROKERAGE VIEW :: CITI ON NBFCs

>> We lower our loan growth estimate to 11% YoY for FY21E and raise our credit-cost forecast to 140bps for our NBFC coverage, factoring in significantly reduced business activity in 1H FY21 and some normalization in 2H. Our earnings fall 7-35% across our NBFC coverage, leading to aggregate ROEs of 13% / 16% in FY21E / 22E.

>> We cut our earnings by 7-35% for companies across our coverage, leading to an aggregate ROEs of 13% / 16% in FY21E / 22E. We assume a constrained
economic activity for a couple of months, followed by gradual normalization. The cuts are smaller for housing financiers given the relatively less churn in the book
and low credit costs, and higher for vehicle / real estate financiers as growth and asset quality are likely to be adversely impacted.

>> Upgrade Bajaj Finance, Aavas and Piramal to Buys. Our top picks in India’s NBFC sector are HDFC Ltd and Bajaj Finance.

NEWS ALERT :: Cyient’s Mysore facility to support manufacturing of Covid-19 diagnosis units and X-ray system assemblies

>> Company has received clearance for its Mysore facility to run its MedTech manufacturing lines to support the production of medical equipment that is critical in the fight against COVID-19.

>> Cyient is producing assemblies that are used in X-ray generators from GE Healthcare and diagnosis units from Molbio Diagnostics to enable rapid disease testing in India. 
 

BROKERAGE VIEW :: CLSA ON PHARMA SECTOR

>> Indian pharma companies outperformed the Nifty by 16%-40% in March. With concern of a slowdown emerging, pharma offers stable revenue/profit streams from a secure domestic market along with a gradually improving outlook for exports. Pertinently, it provides secure and visible earnings growth in uncertain times.

>> We upgrade Cipla from SELL to BUY with a target of Rs480 (from Rs410). We also upgrade Lupin from SELL to O-PF with a revised target of Rs660 (from Rs 600) as its valuation is pricing in an absolute bear case scenario—only the value of its domestic business.

>> Our top four BUY ideas are Sun, Cipla, Cadila and Abbott India.
 
>> Headwinds from weak EM demand and currencies (building spot currency for FY21-22) should be partly negated by a stronger US$ (bake in US$:Rs at 72 for FY21-22CL from 70). We tweak our FY20-22CL earnings estimates for the sector by 2%-3% and revise our target prices accordingly. Pharma sector demand is unlikely to be affected, and production by companies should continue unabated as being classified as an essential commodity isolates 

Currency watch :: Option strategy for exporters

Buy Put 75.50 strike @0.60 paise
Sell Call 77.0 strike @0.44 paise
Net premium to be paid: 16 paise
 
Below are the different scenarios for the April 2020 expiry.
 
Case I: IF the USDINR pair expires below 75.50 on maturity, then the hedged rate for exporters will be 75.34.
 
Case II: IF the USDINR pair expires between 75.50 - 77.00 on maturity, then the net realization rate will be at the spot rate minus premium paid. I.e. If the pair expires at 76.50 on maturity, the net realization rate would 76.50 – 0.16 (premium paid) = 76.34.
 
Case III: IF the USDINR pair expires above 77.00 on maturity, then the upside rate for the exporters will be locked at 76.84 which is far better than current forward rate (75.65).

(Source: IFA Global report)

NEWS ALERT :: Indian Oil Corp to dig 21 oil wells in Assam: TV reports


BSE Oil & Gas index zooms over 7%; HPCL jumps 14%, BPCL surges over 11%

Shares of oil and gas companies surged up to 14 per cent in the intra-day trade on Tuesday as crude oil prices remained near 18-year lows amid demand destruction fears due to coronavirus (Covid-19) pandemic. At 12:40 am, the S&P BSE Oil & Gas index was trading around 7.5 per cent higher at 9,907 levels with all the constituents trading in the green. READ MORE

March Auto Sales Expectations :: Emkay Global Financial Services


Covid-19: Sensex set for biggest quarterly fall, Nifty's worst in 28 years

The S&P BSE Sensex is set to report its biggest quarterly fall in history of the stock market, with the benchmark index slipping 31 per cent during January-March 2020 quarter till Monday. The markets have entered a ‘bear phase’ on the back of panic triggered by the rampant spread of coronavirus (COVID-19). Typically, a fall of 20 per cent or more from the peak level for a stock or an index is considered as a bear market territory for that traded unit. READ MORE

BROKERAGE RADAR :: CREDIT SUISSE ON INDUSIND BANK

Valuations inexpensive, however, headwinds remain

The management has stated that they haven’t seen any deterioration in asset quality, however, with their relatively larger exposure in some of the vulnerable
segments (45% of book to SME, Business Banking, Auto, CV & MFI) as well as large BBB book, which could see accelerated downgrades given the market tightening and current macro environment, we would need to continue to monitor asset quality trends. While mgmt. hasn't seen any deterioration yet, they mentioned that NPAs in 4Q could be 30-40bps higher on the unsecured loan segment. Mgmt. also indicated plans to improve coverage ratio to > 60% this quarter and increase it to 70% by the end of Planning Cycle 5.
 
While valuations are now inexpensive at 0.7x FY22E P/B, we expect stock to under-perform until balance sheet growth resumes.

NEWS ALERT | IRDA may relax minimum solvency norms for insurances companies on case to case basis: CNBC TV18

-- Insurers need not market down commercial papers in portfolio on case-to-case basis
 
-- Insures need to show dip in solvency is due to slowdown for interim resolution

NEWS ALERT :: Future group companies looking to raise Rs 1,500-2,000 cr: sources to CNBC TV18

>> Group is also exploring promoter stake dilution in Future Retail & Future Ent

>> Group in talks with PE, bankers to raise funds to meet debt obligations

>> Promoters looking to raise fresh capital at promoter level via equity, debt

>> Promoter exploring stake sale in Future Generali Insurance 

Alert: Total debt of listed companies at Rs 12,778 cr

MARKET UPDATE:: Sensex at day's high, up 1,000 points


NEWS ALERT :: RBI receives no bid for Rs 25,000 cr 3-day variable rate repo auction


Bharti Airtel gains over 3% as brokerages see limited COVID-19 impact

Shares of Bharti Airtel rose as much as 3.57 per cent to Rs 444.60 on the BSE on Tuesday after brokerage firms Morgan Stanley and Motilal Oswal remained bullish on the stock despite the disruption caused by coronavirus (Covid-19) pandemic. At 11:08, the stock was up 0.36 per cent as compared to 2.03 per cent gain in the S&P BSE Sensex. Around 66 lakh shares have changed hands on the NSE and BSE so far. READ MORE

Gems and jewellery exports expected to witness a sharp decline in Q1FY21

The gems and jewellery industry continued to face hurdles in the form of high custom duty on key commodities, continuous fall in exports and restrictions on the availability of bank credit and to add to this, recent outbreak of Covid-19 in top consuming markets including USA, Europe, China, Hong Kong and other south-east Asian nations has worsened the situation further for players operating in this industry, the report said. READ MORE

IT sector outlook by Kotak Securities

The Covid-19 outbreak has caused supply disruptions and will also likely result in material deterioration in the demand environment. Annual guidance issued by IT companies is inherently unreliable during such highly uncertain periods. The gap between initial guidance and actual performance during GFC is a case in point. We believe that investment decisions predicated on guidance have a higher risk during these uncertain times and recommend focus on long-term business strengths of companies. Infosys is attractive in our view, while TCS’ valuations are punchy.

NEWS ALERT :: Bidders likely to miss April 16 deadline to submit bids for DHFL: sources to CNBC TV18

>> Likely to seek extension

>> Committee of Creditors may push deadline to May 7

>> Lenders likely to seek 90-day extension from NCLT over and above 180-day time allowed to reach resolution

>> 22 suitors have been shortlisted from 24 applicants that submitted EoI

Promoter pledging hit a six-month high on sustained decline in markets

"Promoters are forced to top up collateral as market caps of their companies have eroded amid the market sell-off. We have also seen lenders invoke pledge shares. In an environment where promoters are finding it difficult to repay loans given the tight liquidity, they are forced to top up their collateral value with more shares," said Pranav Haldea, managing director at Prime Database. READ MORE  

BROKERAGE VIEW:: Edelweiss Securities on Metals sector

Despite a 40–45% fall-off in ferrous stocks in 65 days and the crack in their valuations to a five-year low amid the novel Coronavirus, we are shifting our preference towards mining stocks. Our rationale: i) Robust balance sheets would likely better withstand earnings uncertainty; and ii) valuations are at lifetime lows and widest-ever discounts to global peers. In ferrous stocks, we see deep value at current prices, but the risk of protracted demand woes would keep them caged in a range. Hence, we are changing the top pick to Coal India. Besides, in the wake of the demand downturn and plunging prices, we are slashing, on average, FY21/FY22E EBITDA by 35%/25% for ferrous and 21%/27% for mining stocks. We are upgrading SAIL to ‘HOLD’ with a TP of Rs 23 (earlier Rs 40) on valuation grounds as it is trading at an all-time low P/BV of 0.28x.

Why are the markets punishing Bajaj Finance, Bajaj Finserv?

“Bajaj Finance is a company that is involved in consumer financing... With the 21-day lockdown, consumption has slowed down considerably, and discretionary buying is out of sight. In my view, the strong growth that the company was clocking over the past few years is not coming back for at least six months now,” says A.K Prabhakar, head of research at IDBI Capital. READ MORE

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


MARKET CHECK | ONGC jumps around 5%


Covid-19: Recession for world economy; India, China likely exceptions: UN

The world economy will go into recession this year with a predicted loss of trillions of dollars of global income due to the coronavirus pandemic, spelling serious trouble for developing countries with the likely exception of India and China, according to a latest UN trade report. With two-thirds of the world's population living in developing countries facing unprecedented economic damage from the COVID-19 crisis, the UN is calling for a $2.5 trillion rescue package for these nations. READ MORE

IT stocks trade higher

COMPANY LATEST(rs) CHG(%)
INFOSYS 658.85 5.05
WIPRO 192.50 4.56
TCS 1823.50 2.67
HEXAWARE TECH. 229.85 10.03
TECH MAHINDRA 536.10 1.44
» More

It is a great time to invest in stocks: Sampath Reddy, Bajaj Allianz Life

 It is possible that markets may fall another 10 per cent, even 20 per cent. At the same time, it is equally possible that the correction is over and we have reached the bottom. But whatever be the situation, it is a very good opportunity to invest in equities. I am sure that three months, six months or one year down the line, markets will be far higher than the current levels. READ MORE  

Sampath Reddy, CIO, Bajaj Allianz

Top gainers on BSE

COMPANY PRICE(rs) CHG(%)
PC JEWELLER 11.55 10.00
MAHINDRA LOGIS. 227.80 10.00
KRBL 136.30 9.96
GATEWAY DISTR. 96.15 9.95
VRL LOGISTICS 154.00 9.45
» More on Top Gainers

BROKERAGE VIEW:: ICICI Securities on IndusInd Bank

We attended the conference call hosted by IndusInd Bank (IIB) wherein the management indicated slowdown in loan growth, comfortable liquidity position despite deposit outflows and possibility of deterioration in asset quality. We believe the impact on asset quality may be for a short term and that it will be important to track borrower behaviour after completion of moratorium period. Working capital loans and unsecured loans like PL and credit card are at higher risk of default. Despite some concerns on stressed telecom account, higher vehicle book and uncertainty around COVID-19, we believe IndusInd Bank is a good value proposition given it is trading at 0.9x P/ABV FY21E.

Retain BUY with a target price of Rs1,268 (earlier: Rs1,796)

BROKERAGE VIEW:: ICICI Securities on Dr Lal Pathlabs

The company has initiated conducting COVID-19 test at its national lab in Delhi at a price of Rs4,500. Due to lock-down across the country, the company is witnessing slowdown in both the B2B and B2C businesses since past few days. The supply chain is also disrupted but it is expected to improve in the near term. There doesn’t seem to be a structural impact in the business and expect speedy recover in volumes post normalisation. The management has started working on cost rationalisation to mitigate the impact to a certain extent. The company has been able to consistently report strong growth with incremental free cashflows in normal course of business. 

Maintain BUY with a DCF-based target price of Rs1,724/share implying 40.0xFY22E EPS and 26.6xFY22E EV/EBITDA.

Key downside risks: Higher-thanexpected competition, pricing pressures and prolonged COVID-19.

 

BUZZING STOCK:: Amara Raja Batteries up 6%


BROKERAGE VIEW:: Centrum Wealth on Aviation sector

Domestic air traffic growth has been muted at 3.6% yoy to 133.9m pax over Apr’19-Feb’20 due to weak demand. For March 2020, this should further weaken first due to travel advisories and then complete suspension of flights. All international and domestic flights have been suspended till 14th April 2020 amid a lockdown in India.

With traffic likely to be impacted for at least over next 1-2 quarters, airlines would look to defer their fleet addition plans and/or terminate existing leases. While airlines are still discussing with OEMs/lessors to re-align their fleet inductions, we have reduced the net fleet additions for Indigo from 25/35 to 10/20 and for SpiceJet from 18/19 to 0/9 in FY21E/22E, respectively. Also, we have not considered any cost that may be associated with changing the fleet addition or retirement schedule given the lack of clarity on the same.

STOCK RECO

IndiGo best placed to withstand pressure; Maintain Buy
 
IndiGo’s with robust balance sheet (gross debt of Rs 23.5bn, free cash of Rs 94.1bn as on Dec-19 (excluding restricted cash of Rs 107 bn) and competitive cost structure (set to improve further) is best placed amongst Indian carriers to withstand the current disruption and also be in a position to capitalise on growth recovery. We maintain our Buy rating on IndiGo with a price target of Rs 1,340.
 
SpiceJet’s finances getting stretched and in need of support; Maintain Reduce
 
SpiceJet’s balance sheet has been fragile and the on-going disruption has only added to stress levels. Higher maintenance costs on 30 aircrafts taken over from Jet Airways had been a drag on earnings and costs associated with the grounded 13 Max aircrafts have been a drag on cash flows. SpiceJet had gross debt of ~Rs10 bn in Dec-19 with free cash levels being insignificant. Additional funding support from banks is unlikely in our view. Release of at least part of SpiceJet’s claim (Rs 5 - 6 bn) against Boeing for Max groundings and any relief package from the government can alleviate stress levels. We maintain our Reduce rating on SpiceJet with a price target of Rs 33. 

Defensives versus high beta. What should your stock strategy be?

With the frontline indices – the S&P BSE Sensex and the Nifty 50 – crashing over 35 per cent from their peak levels given the rampant spread of coronavirus (Covid-19) pandemic across the globe, most analysts remain cautious on the road ahead for the markets. Going ahead, they believe the markets will track developments related to the progress of the health scare and how effectively can the governments combat it. READ MORE

IndusInd Bank slumps 20% as bad loans may rise amid Covid-19 outbreak

Shares of IndusInd Bank were locked in the 20 per cent lower circuit in an otherwise firm market, at Rs 329.25, on the BSE on Tuesday after the bank said the outbreak of coronavirus (Covid-19) could push up its credit costs to around 200 to 210 basis point in March 2020 quarter, indicating a rise in bad loans. At 9:45 am, the S&P BSE Sensex was at 28,996.35, up 556 points or nearly 2 per cent. READ MORE

MARKET CHECK:: Sensex holds gains


Current financial year is not being extended: PIB

IndusInd Bank extends fall, down 20% now


Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
I D F C 14.90 -2.93
RELIANCE POWER 1.22 4.27
VODAFONE IDEA 3.12 -1.27
RELIANCE INDS. 1053.90 2.09
SUZLON ENERGY 2.00 4.71
» More on Most Active Volume

Contribution to the S&P BSE Sensex's gain today


BROKERAGE VIEW:: Motilal Oswal Financial Services on L&T

We cut our core FY21/FY22E E&C earnings by 10.6%/8.3% factoring in lower execution, order inflow delays and worsening working capital over the next 12 months or so. While FY21E looks challenging from growth perspective, we do expect a bounce-back in FY22E, helped by a lower base and stabilization of working capital. 
 
From valuation perspective, we reduce our TP to INR1,320 on account of (a) cut in core earnings as well as reduction of core business P/E multiple to 18x from 20x earlier, and (b) lower contribution from listed subsidiaries due to market cap erosion (we continue to value L&T’s stake in 4 listed subsidiaries after applying 30% holding company discount). Maintain Buy.

Mid-cap index up over 0.5%


Nifty Metal index gains over 3% as China's manufacturing expands in March


MARKET CHECK | Bharti Airtel slips over 0.5%


Federal Bank trades nearly 2% higher


SECTOR ALERT :: Logistic stocks trade higher amid reports govt may tag it as 'essential service'


IndusInd Bank locked in 10% lower circuit


Bajaj Finance snaps 2-day losing streak


TCI trades near 2-week high


Sectoral trends at NSE during Opening Trade


Sensex Heatmap at Open :: Broad-based buying lifts indices


FIRST TRADE


FIRST TRADE


Sebi defers key market reforms due to disruption caused by pandemic

Sebi also provided relaxations in the know-your-client (KYC) formalities for foreign portfolio investors (FPI). The so-called stewardship code, an institutional investor’s guide to vote on resolutions floated by listed companies, will now come into effect from July 1 instead of April 1. Under this, MFs and AIFs are required to formalise a comprehensive policy on discharge of their stewardship responsibilities, which have to be disclosed publicly and reviewed periodically. READ MORE

Top gainers and losers at S&P BSE Sensex during Pre-Open


Rupee opening

Rupee opens higher at 75.52/$ vs Monday's close of 75.65 against the US dollar

Market at Pre-Open


Market at Pre-Open


JPMorgan says the market rout is probably past its worst now

Conditions that JPMorgan had set for market stabilisation and revival have largely been met, with recession-like pricing, a reversal in investor positioning and extraordinary fiscal stimulus, strategists led by John Normand wrote in a note on Friday. Coronavirus infection rates remain a “wild card,” as they remain high even if they’re “slowing” in the US and Europe. READ MORE

Set-up favourable for long-term investors, says Vetri Subramaniam

The reverberations from the pandemic and its economic fallout are not fully calculable as yet. Fiscal policy will first be used to tackle the humanitarian crisis, health costs and loss of income. Then, further interventions may be required to address demand and supply-side issues and provide a stimulus to economic activity.  READ COMPLETE INTERVIEW HERE

NEWS ALERT :: Japan's factory output rises 0.4% in February

>> The pace was slower than the 1.0% gain in January

>> Japan’s factory output rose in February at a slower pace than the previous month, adding to growing signs that the rapidly spreading coronavirus pandemic is taking a toll on an economy already on the cusp of recession.

>> Manufacturers surveyed by the government expect output to fall 5.3% in March and increase 7.5% in April, the data showed

(As reported by Reuters)

NEWS ALERT :: China’s Purchasing Managers’ Index rebounds to 52 in March

>> Factory activity in China unexpectedly expanded in March after contracting sharply to a record low of 35.7 in February, but the rapid global spread of the coronavirus is expected to keep businesses and the overall economy under heavy pressure as foreign demand slumps.

>> The National Bureau of Statistics attributed the surprise rebound in PMI, a month-on-month indicator, to its record low base in February and cautioned that the readings do not signal a stabilization in economic activity.

(As reported by Reuters)

Bulk deals on NSE as on Monday

Bulk deals on BSE as on Monday

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


Rupee check

Source: Bloomberg


Crude rises after US, Russia agree to oil market talks

>> Oil recovered some ground on Tuesday as US President Donald Trump and Russian President Vladimir Putin agreed to discuss stabilising energy markets, but prices remain near 18-year lows as the coronavirus shutdown destroys demand.
 
>> Brent crude was up by 19 cents, or 0.8 per cent, at $22.95 a barrel, after closing at $22.76 in the previous session, the lowest close since November 2002.

SGX Nifty

>> At 8:29 am, the Singaporean Exchange for Nifty Futures was at 8,467 level, up 177 points or over 2 per cent.

Asia shares edge up, China factories show flicker of life

Source: Reuters


Wall Street rallies, led by healthcare jump

Source: Reuters


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