MARKET WRAP: Sensex surges 1,266 pts, Nifty ends at 9,112; auto stocks jump

Topics Markets | Coronavirus | MARKET WRAP

Brokers trade at their computer terminals at a stock brokerage firm in Mumbai (
The domestic equity market ended with over 4 per cent gains on Thursday, in line with global peers that gained on hopes that the coronavirus pandemic was nearing its peak globally. That apart, hopes of more stimulus measures by the government also kept the investor sentiment upbeat. 

The S&P BSE Sensex jumped 1,266 points or 4.23 per cent to settle at 31,160 amid heavy buying in index heavyweights such as HDFC, HDFC Bank, ICICI Bank, Reliance Industries (RIL), and Maruti. NSE's Nifty reclaimed the crucial 9,000 levels to end at 9,112, up 363 points or 4 per cent. 

On a weekly basis, both Sensex and Nifty added around 13 per cent. 

In the broader market, the S&P BSE MidCap index ended over 3.63 per cent higher at 11,374 and the S&P BSE SmallCap index added over 3 per cent to 10,294. 

On the sectoral front, all the indices on the NSE ended in the green with the Nifty Auto index jumping over 10.5 per cent to 5,569 levels. Volatility index India VIX declined over 5 per cent to 49.56 levels. READ MORE

Buzzing stocks 

Among individual stocks, Sun Pharma regained the market-capitalisation of Rs 1 trillion after a sharp rally in its stock price. The stock ended at Rs 455.20 on the BSE, up over 4 per cent. READ MORE

Shares of Cipla jumped 16 per cent at Rs 595, also its 52-week high on the BSE after the drug firm received United States Food and Drug Administration's (USFDA) nod for the first generic Proventil HFA (albuterol sulfate) metered dose inhaler, used for conditions such as asthma. It ended at Rs 579.50, up 13 per cent. READ MORE  

Markets will remain closed tomorrow on account of Good Friday. 

Global Markets

Global shares rose on Thursday on hopes the Covid-19 pandemic was nearing a peak and that governments would roll out more stimulus to support their economies, while expectations of a deal to cut oil production bolstered crude prices. 

European stock markets gained for a fourth straight day. The pan-European STOXX 600 index was up 1.7 per cent, with battered travel and leisure stocks, autos, and mining companies leading early gains.

MSCI’s All-Country World Index, which tracks shares across 49 countries, was up 0.5 per cent to its highest since March 12.

US stock futures were up 1 per cent after bouncing in and out of positive territory in Asia.

Shares in China, where the novel coronavirus first emerged late last year, rose 0.42 per cent. Australian shares were up 2.54 per cent.

In commodities, oil prices rose on expectations the world’s largest oil producers would agree to cut production at a meeting later in the day as the industry grapples with a coronavirus-driven collapse in global oil demand.

(With inputs from Reuters)

4:06 PM IST Indian markets in sync with Global markets were up again today on expectations of infections peaking out and for more stimulus measures to be announced. This uptrend seems to be a short term bear market rally and may not be sustainable. In India, there is speculation that the package may help worst affected sectors and MSMEs may get some relief in the package to be announced.

4:06 PM IST

4:05 PM IST

3:41 PM IST The S&P BSE Sensex rallied 1,266 points or 4.23 per cent to close at 31,160 while NSE's Nifty50 ended at 9,103, up 354 points or 4 per cent.

3:27 PM IST

3:26 PM IST The Sensex is poised to close this holiday shortened week with a strong uptick as global markets bounced back on initial signs of peaking out of Covid-19 infections in major hotspots like Italy and the US. While the trajectory of Covid-19 infections in India is now getting steeper, it is hoped that the effect of lockdown will start to show positive results in the coming days. With the exception of the FMCG sector, valuations have become reasonable for most sectors. Investors should accumulate stocks with strong balance sheets, market leadership and good management quality. Such stocks can deliver good returns when economic conditions normalise

3:20 PM IST

3:10 PM IST

3:02 PM IST

2:59 PM IST In April 2019, India had consumed 2.4 million tonnes of petrol and 7.3 million tonnes of diesel. As much as 6,45,000 tonnes of ATF was used during the same time last year.   The collapse of demand in the world's third-biggest consumer during April comes on the back of worst fuel sales in more than a decade recorded in March 2020. READ MORE

2:58 PM IST COMPANY LATEST(rs) CHG(%) VODAFONE IDEA 3.28 2.50 BHARTI AIRTEL 482.60 4.55 TEJAS NETWORKS 35.40 4.89 » More

LIVE UPDATES

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

Indian markets in sync with Global markets were up again today on expectations of infections peaking out and for more stimulus measures to be announced. This uptrend seems to be a short term bear market rally and may not be sustainable. In India, there is speculation that the package may help worst affected sectors and MSMEs may get some relief in the package to be announced.

SECTOR WATCH | Here's how sectoral indices on NSE performed today


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


CLOSING BELL

The S&P BSE Sensex rallied 1,266 points or 4.23 per cent to close at 31,160 while NSE's Nifty50 ended at 9,103, up 354 points or 4 per cent.

MARKET CHECK


MARKET COMMENT :: Sanjeev Zarbade, VP PCG Research, Kotak Securities

The Sensex is poised to close this holiday shortened week with a strong uptick as global markets bounced back on initial signs of peaking out of Covid-19 infections in major hotspots like Italy and the US. While the trajectory of Covid-19 infections in India is now getting steeper, it is hoped that the effect of lockdown will start to show positive results in the coming days.

With the exception of the FMCG sector, valuations have become reasonable for most sectors. Investors should accumulate stocks with strong balance sheets, market leadership and good management quality. Such stocks can deliver good returns when economic conditions normalise

BUZZING STOCK | Titan Co jumps 10%


MARKET UPDATE | Midcap index gains around 4%


ALERT :: MARKETS TO REMAIN SHUT TOMORROW ON ACCOUNT OF GOOD FRIDAY

Petrol, diesel demand slumps 66%; ATF down 90% as lockdown hurts business

In April 2019, India had consumed 2.4 million tonnes of petrol and 7.3 million tonnes of diesel. As much as 6,45,000 tonnes of ATF was used during the same time last year.
 
The collapse of demand in the world's third-biggest consumer during April comes on the back of worst fuel sales in more than a decade recorded in March 2020. READ MORE

Telecom stocks gain

COMPANY LATEST(rs) CHG(%)
VODAFONE IDEA 3.28 2.50
BHARTI AIRTEL 482.60 4.55
TEJAS NETWORKS 35.40 4.89
» More

IT industry is resilient and will emerge stronger: Infosys COO

These are challenging times for the Indian information technology (IT) industry. However, the industry has time and again proven its resilience. We hope to emerge stronger. The immediate priority is navigating through the Covid-19 situation and ensuring business continuity. After Covid, I hope to continue the growth rate we’ve been doing, of taking forward the industry and making it relevant in the digital era, including expanding our market presence, skilling and reskilling workforce, and contributing to India’s gross domestic product (GDP) growth. READ FULL INTERVIEW HERE
Nasscom's newly appointed chairman and Infosys Chief Operating Officer U B Pravin Rao

BROKERAGE VIEW:: Prabhudas Lilladher on Cement sector

Admittedly, Covid-19 virus has derailed sector’s FY20-FY22e earnings, due to sharp fall in volumes. However, better pricing power would help lessen the impact of depressed volumes unlike other sectors. Downgrade in FY21e earnings and fall in stock prices have broadly been in tandem however, fall have been far significant relative to earnings cut on FY22e nos. To factor earnings cut, we have reduced price targets of our coverage universe by 15- 20%. We upgrade Ambuja cement (ACEM)/ACC to BUY while Ramco cement (TRCL)/Heidelberg cement (HEIM) are upgraded to Accumulate on account of comfortable valuations. Shree cement remains our least preferred name in the space with Hold rating due to expensive valuations. We reiterate BUY on Ultratech cement (UTCEM) and JKLakshmi (JKLC)

Coronavirus lockdown: Rs 1-trn stimulus package for MSMEs on cards

“The second package could be focused largely on MSMEs (micro, small and medium enterprises),” one of the senior government officials, with direct knowledge of the plan told Reuters.
 
The official said a separate package could be announced for bigger companies after assessing the extent of the hit they have faced due to the lockdown imposed to fight the outbreak. READ MORE

Heatmap: S&P BSE Sensex at this hour


Covid-19: India FY21 growth projection down 20 bps to 4.8%, says UN report

India's GDP growth for the fiscal year 2019-2020 was estimated at 5 per cent and is forecast to slow down to 4.8 per cent for the current fiscal 2020-21.
 
Economic growth for the country could stand at 5.1 per cent for fiscal year 2021-22, the report said. It also noted that these are very preliminary forecasts based on the data and information available up to March 10. READ MORE

SECTOR WATCH:: Auto stocks in focus; Nifty Auto index jumps over 8%


Top BSE500 gainers today

COMPANY PRICE(rs) CHG(%)
ASHOKA BUILDCON 51.30 20.00
REDINGTON INDIA 83.85 15.98
RAIN INDUSTRIES 68.25 14.80
R C F 35.35 14.22
SCHNEIDER ELECT. 78.35 14.21
» More on Top Gainers

Coronavirus outbreak has set back the number of air travellers by decades

The official tally of 97,130 people who passed through TSA checkpoints includes some airline crew members and people who are still working at shops inside airport security perimeters.
 
The last time the nation averaged 97,000 passengers a day was in 1954, according to figures from trade group Airlines for America. It was the dawn of the jet age. The de Havilland Comet, the first commercial jetliner, was just a few years old, and Boeing was running test flights with the jet that would become the iconic 707. READ MORE

BUZZING STOCK | Cholamandalam Investment up around 14%


Rupee closing

Rupee ends higher at 76.28/$ vs Wednesday's close of 76.37 against the US dollar

Sun Pharma regains Rs 1 trillion m-cap after surging 38% in four days

Shares of Sun Pharmaceuticals Industries were trading higher for the fourth straight day, up 8.5 per cent to Rs 474 on the BSE on Thursday on expectation of improvement in the company's outlook. The drug firm's stock was trading close to its 52-week high of Rs 480, touched on April 10, 2019. In the past four days, it has rallied 38 per cent, as compared to 10 per cent rise in the S&P BSE Sensex and 23 per cent up move in S&P BSE Healthcare index. READ MORE

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


Covid-19: Odisha becomes the first state to extend lockdown till April 30

The Odisha government on Thursday decided to extend the ongoing lockdown in the state till April 30 to effectively contain the spread of coronavirus. Schools and other education institutions will remain closed till June 17, Chief Minister Naveen Patnaik announced after a video conference with his ministers. READ MORE

FMCG to remain pricey for a long time despite coronavirus outbreak

However, the sector is still trading at 115 per cent premium to the leading indices such as Nifty50. In fact, over the last month, the Nifty FMCG index, which has been flat, has outperformed the Nifty50's over 20 per cent fall during the same period.. At these levels, the price-to-earnings (PE) valuation of the FMCG index at almost 29x is among the highest within sectoral indices. And, if analysts are to be believed, FMCG’s valuation premium vis-à-vis leading indices would persist in the near term despite muted economic activities. READ MORE

MARCH MUTUAL FUND DATA: Net equity inflow at Rs 11,961 cr vs 10,730 cr inflow (MoM)

-- Balanced fund outflow at Rs 1,515.6 cr vs Rs 1,182 cr outflow (MoM)

Covid-19 hangs over future like spectre: RBI in Monetary Policy Report

The impact of the pandemic came at a time when the economy was just at the turn of a recovery, “but Covid-19 now “hangs over the future, like a spectre,” it said. “While efforts are being mounted on a war footing to arrest its spread, Covid-19 would impact economic activity in India directly through domestic lockdown.” READ MORE

Europe opens higher

(Source: Reuters)

NEWS ALERT :: L&T Board approves Long-term borrowing up to Rs 9,000 crore: BSE filing

>> The Board of Directors, at its meeting held today, has, inter alia, approved Long-term borrowing up to Rs 9,000 crore, either through external commercial borrowings, term loans, non-convertible debentures or any other instrument as may be appropriate.


MARKET UPDATE:: Sensex reclaims 31k


Auto stocks extend gains; Nifty Auto index surges 20% in three days

At 12:17 pm, Nifty Auto index, the top gainer among sectoral indices, was up 7.8 per cent, as compared to a 3.4 per cent rise in the Nifty 50 index. In the past three days, the auto index surged 20 per cent as against a 12 per cent gain in the benchmark index.
 
Prior to April 3, in one month, the Nifty Auto index slipped 35 per cent, as compared to a 28 per cent decline in the Nifty 50 index. READ MORE

Amid market weakness, delivery-based trades hit an 11-month high in March

According to the month-wise data compiled by Business Standard Research Bureau, the delivery ratio---the percentage of shares actually changing hands in relation to the total traded quantity — was about 34.1 in January 2020 and 35.8 per cent in February 2020. READ MORE

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


MARKET CHECK | Aurobindo Pharma jumps over 7%


Covid-19 impact: Commercial vehicle sales to contract another 8-10% in FY21

The commercial vehicle (CV) industry, already under pressure due to the economic slowdown, axle load norms, GST and other issues, is now facing another challenge in the coronavirus outbreak. These factors are likely to lead to a further contraction of 8-10% in FY21, with profitability and credit metrics of CV OEMs likely to remain under pressure. READ MORE

NEWS ALERT | Euro value stable; would like to see more inflation, says Christine Lagarde

(as reported by Reuters)

Future Group: Retail king of India faces litmus test as debt soars

Though promoter Kishore Biyani is selling stakes in group companies to pay off debt, a significant share price crash since January this year is making his task difficult.
 
“While it is good news that 80 per cent of the borrowings of holding companies are from PE firms, for which the collateral cover is much lower than funds from banks or mutual funds, the cost of funding can be very high,” said an analyst of Redd Intelligence. READ MORE
 

NEWS ALERT | Aurobindo Pharma gets US FDA nod for Fluoxetine tablets: BSE filing

-- Fluoetie tablet is indicated for treatet of major depressive disorder
 

MARKET VOICE :: Shyam Sekhar on pharma sector's rally

Contribution to the S&P BSE Sensex's 1000-point up move today


NEWS ALERT :: Real GDP growth to recover from 4.6% in Q4FY20 to 6.1% in Q4FY21, says RBI on the basis of Professional Forecasters


NEWS ALERT :: CPI inflation is tentatively projected to ease from 4.8% in Q1:2020-21 to 4.4% in Q2: RBI

>> Inflation expected to further ease to 2.7 per cent in Q3 and 2.4 per cent in Q4

>> RBI expects the prevailing high uncertainty, aggregate demand may weaken further than currently anticipated and ease core inflation further, while supply bottlenecks could exacerbate pressures more than expected. 

NEWS ALERT :: CPI inflation to ease from 6.6% in February 2020 to 5.3% in Q1FY21: RBI


NEWS ALERT :: RBI expects crude oil prices (Indian basket) to average around US$ 35 per barrel during 2020-21


NEWS ALERT :: The impact of COVID-19 on inflation is ambiguous relative to that on growth: RBI

NEWS ALERT :: COVID-19 would impact economic activity in India directly through domestic lockdown: RBI

>> Second round effects would operate through a severe slowdown in global trade and growth

>> More immediately, spillovers are being transmitted through finance and confidence channels to domestic financial markets

NEWS ALERT :: Global output is seen contracting in 2020 due to Covid-19: RBI

Cipla, Biocon, Divi's Lab: Pharma stocks to bet on in the current market

NIFTY PHARMA: The index witnessed a tremendous rally in the last four sessions - up over 20 per cent. A formation of “Inverse Head and Shoulder” pattern may be seen on the daily chart. Broadly, if the index manages to close strongly above 9,000 levels, which is its resistance level, then it may see further upside towards 9,400 and 9,700 levels. The immediate support comes in at 8,550 and 8,200 levels. READ MORE

NEWS ALERT :: Zydus receives final approval from US FDA for Imatinib Mesylate tablets: BSE filing

>> Zydus Cadila has received final approval from the USFDA to market Imatinib Mesylate Tablets, 100 mg and 400 mg. (US RLD: Gleevec® Tablets)

>> This medication is used to treat certain types of leukemia (blood cancer), bone marrow disorders, skin cancer and tumors of the stomach and digestive system.
 

Defying gravity :: Radhakishan Damani beats coronavirus crisis as net worth soars 11%

The net worth of Radhakishan Damani, who controls Avenue Supermarts, has surged almost 11 per cent this year to $10.7 billion, singling him out as the billionaire with most gains among the 12 richest Indians whose wealth is tracked by the Bloomberg Billionaires Index.
 
Shares of Avenue Supermarts, which contribute nearly all of the wealth to Damani’s net worth, have advanced 24 per cent this year. READ MORE

COVID-19 IMPACT :: Japan's economy faces 'extremely high' uncertainty

Japan recorded 503 new coronavirus infections on Wednesday - its biggest daily increase since the start of the pandemic. Even as a state of emergency took effect, underscoring the difficulty authorities have in trying to contain the outbreak without imposing a sweeping, mandatory lockdown on the population. READ MORE

MARKET UPDATE:: Sensex climbs off day's high


Rupee at fresh record low

(Source: Bloomberg)

Gold-backed ETFs see $23 billion inflow during March 2020 quarter: WGC

“During the past year, gold ETFs added 659 tonnes, the highest on a rolling annual basis since the financial crisis, with assets under management (AUM) growing 57 per cent over the same period,” WGC said.
 
The sharp rise, according to the WGC, was triggered by a flight to safety amid the coronavirus (Covid-19) pandemic that hit world economy hard, plunged most global equity markets into a bear phase and increased the hunt for safe-haven assets, such as Treasuries and gold. READ MORE

BROKERAGE VIEW:: JM Financial on Cummins India

Rating: BUY | Target Price: 440
 
Cummins India (KKC)’s share price has corrected over 55% from its 1-year peak over several concerns regarding a demand slump owing to a weak capex cycle, its diesel gensets losing edge over batteries and its parent’s 100% owned subsidiary in India. However, we believe these concerns are overblown and ignore KKC’s strong fundamentals. We upgrade to BUY as we expect a) technology leadership to aid market share gains after CPCB4+ norms, b) a change in sales mix to provide a cushion against cyclicality in capex spends, c) stringent cost controls and VRS scheme to protect margins and d) strong cash generation profile and high dividend yield (5.2%). The stock is trading at 14x FY22E EV/EBTIDA multiple, a 35% discount to its LT median. In our view, the implied EVE for the core business stands at 6.5x FY22E if we strip out value of other businesses, non-operating income and cash balance, which significantly understates the product life. Our SOTP-based TP stands at Rs 440, as we value the standalone business at 15x FY22E EVE (30% discount to LT median), other JVs at 12x FY22E PE, investment property at 0.8x fair value estimate and cash+liquid investments at BV.

Chart Check: Key sell signals you should be aware of while trading

One needs to examine several elements in order to determine a negative reversal, or a 'sell signal', for a stock or index. The most relevant is the price movement, followed by price indicators like candlestick patterns, chart formations, moving averages, trend line, gap up or gap down, etc. Apart from the above-mentioned instruments, technical indicators like Relativem Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Stochastic also assist in identifying the trend reversal. Volume plays a crucial role in acknowledging the change in momentum. READ MORE

BROKERAGE VIEW:: Motilal Oswal Financial Services on InterGlobe Aviation

CMP: Rs 990 | TP: Rs 1,300 (+31%) | Reco: Neutral

For Indian carriers, typically 1Q is the strongest period while 2Q is a weak quarter. In this fiscal, as the lockdowns/shutdowns are playing out in 1Q, we expect gradual improvement in the dynamics of the Indian aviation industry only from 3QFY21.

Globally, various airline companies have withdrawn their earnings guidance indicating uncertainty in the aviation industry. Likewise, even we remain keen on hearing management guidance and commentary before taking a leap of faith in the industry/stock. We maintain Neutral on the stock.

SECTOR WATCH:: Auto stocks trade higher

COMPANY LATEST(rs) CHG(%)
TATA MOTORS 73.55 8.80
ASHOK LEYLAND 44.85 2.40
TATA MOTORS-DVR 33.95 12.23
M & M 346.95 6.25
TVS MOTOR CO. 292.00 2.17
» More

BROKERAGE VIEW:: ICICI Securities on Repco Home Finance

Current valuations at 0.35x FY21E P/BV appear very attractive, but the muted loan-book growth and the anticipated deterioration in asset quality have led to severe correction in the stock price. We still expect the company to deliver RoE of 14%-16% over FY21E-FY22E. Our target multiple of 0.6x (earlier: 1.1x) Mar’22E P/BV leads to a target price of Rs210 (earlier: Rs390). Maintain BUY. We continue to identify Repco’s past mistakes in the LAP segment and concentration/competition driven growth recovery delays as key risks.

Covid-19 impact: Missing disinvestment targets will have consequences

For disinvestment to take place, there need to be a good number of buyers as well as valuation. Else, like in the past, divestment becomes an exercise of one public sector undertaking (PSU) buying into another. The challenge today is that the conditions do not look congenial and the market is just too volatile. The stock market has touched a new low post the announcement of a shutdown. There seems to be no sign of the shutdown ending or even a plan as to what should be done once this ends. Realistically speaking, FY21 will be a washout. The market is unlikely to reach the January levels anytime soon and unless it is moving in the upward direction continuously for three months, can one be assured that the valuation will be fair? READ MORE

Rupee opening

Rupee opens higher at 76.10/$ vs Wednesday's close of 76.37 against the US dollar

MARKET UPDATE:: Sensex holds opening gains


Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
FUTURE CONSUMER 6.00 4.90
VODAFONE IDEA 3.28 2.50
TATA MOTORS 73.80 9.17
FUTURE RETAIL 67.45 4.98
RAIL VIKAS 18.50 4.40
» More on Most Active Volume

IDBI Bank surges 10% on fund raise plan, proposal to sell stake in IFLI

Shares of IDBI Bank advanced up to 10.5 per cent to Rs 21.95 on the BSE on Thursday after the private lender said it has targeted to raise up to Rs 7,500 crore through rupee bond in the current fiscal. At 9:34 am, the stock pared its gains partially to trade 5 per cent higher at Rs 20.8 apiece. In comparison, the headline S&P BSE Sensex index was trading 3 per cent higher at 30,773.60 levels. READ MORE

HUL dips in an otherwise strong market


Cipla surges 15% on USFDA nod for first generic Proventil HFA inhaler

Shares of Cipla were locked in the upper circuit of 15 per cent at Rs 590, also its 52-week high on the BSE on Thursday after the drug firm received United States Food and Drug Administration's (USFDA) nod for the first generic Proventil HFA (albuterol sulfate) metered dose inhaler, used for conditions such as asthma. Till 09:29 am, a combined 1.79 million shares traded and there were pending buy orders for 744,000 shares on the NSE and BSE, the exchange data shows. READ MORE

BUZZING STOCK:: Sharp surge in Maruti Suzuki India


NEWS ALERT | L&T Construction bags orders in range of Rs 5,000 cr-Rs 7,000 cr


MARKET UPDATE

Abbott India, Ajanta Pharma, Alkem Lab, Cadila Healthcare, Cipla, Divis Labs, Dr Reddy's and Torrent Pharma from healthcare sector hit 52-week high

MARKET UPDATE:: Nifty reclaims 9,000


BROKERAGE VIEW | Manufacturing, construction, and trade likely to get badly hit by the lockdown: ICICI Securities

We expect manufacturing and construction activity to get badly affected by the lockdown. After the restrictions on movement are gradually lifted, these two sectors could see U-shaped recovery. This is because, restarting manufacturing plants and bringing them to pre-shutdown levels could take some time. Also, monsoon season in Q2 could keep construction activity muted. Trade segment is also likely to be badly affected although panic buying/hoarding and exclusion of essential
items from the lockdown could keep some of the activity alive.

Marico trades marginally higher post Q4 biz update

In its March quarter update, the company said early signs of improvement across categories seen until early March were more than offset by disruptions in the last 12 days, due to lockdowns in some states. With COVID-19 assuming the nature of a pandemic, the International businesses were also affected. Revenue decline (both in India and International business), coupled with an unfavourable mix in the India business, will translate into a modest decline in EBITDA in this quarter vs the corresponding quarter last year, the statement added.


BROKERAGE VIEW:: Prabhudas Lilladher on PVR, Inox

We cut our FY21E Ind-AS adjusted EBITDA estimates by ~30% each, for both PVR and Inox as we expect ~10% YoY decline in footfalls led by COVID-19 induced nationwide lockdown. We expect ZERO revenues for ~2 months (impact will be beyond the lockdown timeline) as entertainment is discretionary in nature and safety/health will take precedence in the initial days (footfall stabilization will be a gradual process). During lockdown, PVR/Inoxs’ fixed monthly opex outgo is expected to be in the region of Rs400- 450mn/Rs250-Rs300mn respectively resulting in significant downgrade in earnings. While there are near term headwinds due to COVID-19 we expect bounce back to be equally sharp due to pent up demand (movies delayed in 4QFY20 & 1QFY21 will get released in 2HFY21) and strong movie pipeline. We continue to maintain our POSITIVE stance on the sector as valuations have turned attractive amid ~40-50% correction in stock prices over the last few months. PVR/Inox trade at EV/EBITDA multiple of 6.7x/6.1x our revised FY22E EBITDA estimates. We upgrade PVR to BUY with a TP of Rs1,518 and retain BUY on Inox with a TP of Rs344. Prefer Inox over PVR given low leverage and attractive valuations.

Cipla freezes in 15% upper circuit

>> Cipla has received US Food and Drug Administration (USFDA) approval for the first generic Proventil HFA (albuterol sulfate) Metered Dose Inhaler, 90 mcg/Inhalation.


HDFC Bank surges 3%


Titan Company trades over 2% higher

>> Titan's jewellery revenue for the division declined by 5 per cent in the January-March period due to lost sales in March in spite of 16.5 per cent sales growth in the preceding months of January and February.

>> Titan's jewellery revenue for the division declined by 5 per cent in the January-March period due to lost sales in March in spite of 16.5 per cent sales growth in the preceding months of January and February, 


Key Sectoral Indices on NSE at Open


Sensex Heatmap at Open


OPENING BELL


OPENING BELL


WEB EXCLUSIVE :: Brent can jump to $40 by 2020-end; India should stockpile crude oil now

The timing is close to perfect. There is a consensus among analysts that oil prices will remain under pressure. S&P Global Platts Analytics sees Brent crude trading below $20/barrel (bbl) over the next couple of months before rebounding to $40/barrel by the year-end. Even the recovery price is low by recent standards and depends on the shape and timing of the recovery from coronavirus as people return to their cars. READ MORE

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


Market at Pre-Open


Market at Pre-Open


Stocks to watch: Titan, Marico, IDBI Bank, HDFC Bank, Cipla, Future Group

Here's a look at the top stocks that may remain in focus today -
 
Titan Co: With shopping malls shut and weddings postponed, Titan's jewellery revenue for the division declined by 5 per cent in the January-March period due to lost sales in March in spite of 16.5 per cent sales growth in the preceding months of January and February, according to a quarterly update by the company.
 
HDFC Bank: The private lender informed that the Reserve Bank of India (RBI) has asked the bank to wait until a new CEO is in place before promoting them to board level. On November 28, 2019, HDFC Bank had intimated the appointment of Mr Sashidhar Jagdishan and Mr Bhavesh Zaveri by the Board of Directors each as an Additional Director and Executive Director (Whole-Time Director) of the Bank. READ MORE

BROKERAGE RADAR :: JPMorgan on Metals

>> Expects base metal prices to bottom in June quarter

>> From current levels, prices are epxected to rise 20-35% in H1CY21

>> Investors need to track FY22 earnings forecast

>> Near-term earnings likely to be very weak

BROKERAGE VIEW :: JPMorgan on Hindalco

Maintains overweight | TP: Rs 170

>> Divestment value at 310 Euros implies 7x trailing EV/EBITDA is a positive suprise

>> Aleris acquisition in the current environment may be earnings dilutive in the short term

>> Ascribe a negative equity value of Rs 30/sh for the Aleris transaction

CORONAVIRUS UPDATE :: Total cases in India rise to 5,734: Govt


Nifty outlook & top trading ideas by CapitalVia Global Research

Markets witnessed profit booking at higher level; Nifty facing stiff resistance at 9,000
 
Market traded with negative sentiments in the second half of Wednesday's session due to weaker global cues, which triggered selling pressure in broader indices. Nifty managed to close at 8,748.75, slashing 43.45 points. Pharma, Automobile and media sectors traded with positive sentiments whereas reality, technology sector closed in the red. Nifty bank closed at 18,946.50, down 173.25 points from the previous day’s closing. READ MORE

Bulk deals on NSE as on Wednesday

Bulk deals on BSE as on Wednesday

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


Rupee check

Source: Bloomberg


Crude futures climb ahead of OPEC+ meeting

>> Crude futures rose on Thursday on expectations the world’s largest oil producers would agree to cut production at a meeting later in the day as the industry grapples with the coronavirus-driven collapse in global oil demand.

>> Brent crude futures rose 2.5%, or 81 cents, to $33.65 after touching a high of $33.90, adding to gains in the previous session.
 
>> U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 4.3%, or $1.08, at $26.17, having climbed as much as 6%.

SGX Nifty indicates positive start for Indian markets

>> At 8:09 am, the index was at 8,890.80 level, up 140 points or 1.6 per cent.

Asian shares trade cautiously

Source: Reuters


Wall Street rallies on hopeful coronavirus signs

Source: Reuters


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