MARKET WRAP: Sensex sheds 470 pts; financials, real estate stocks decline

Topics Markets | Coronavirus | MARKET WRAP

Brokers trade at their computer terminals at a stock brokerage firm in Mumbai. Photo: Reuters
Fall in global markets, rise in crude oil prices in early trade after a landmark deal by OPEC+ group to cut output and worries over likely extension of Covid-19 lockdown caused the domestic equity market to settle in the negative territory on Monday. 

The S&P BSE Sensex shed 470 points or 1.51 per cent to end the day at 30,690, with Bajaj Finance (down 10 per cent) being the biggest loser and L&T (up over 6 per cent) the top gainer. Of 30 constituents, 23 ended in the red and rest 7 in the green.   

On the NSE, Nifty ended at 8,994, down 118 points or 1.3 per cent. The volatility index India VIX rose over 3 per cent ro 51.41 levels. 

On the sectoral front, barring Nifty Pharma and Nifty Metal, all the other sectoral indices on the NSE ended in the negative zone. Nifty Financial Services index dropped over 3 per cent to 9,501 levels while Nifty Realty lost around 5 per cent to settle at 177-mark. 

In the broader market, the S&P BSE MidCap index slipped nearly a per cent to 11,268 levels while the S&P BSE SmallCap index lost around half a per cent or over 47 points to 10,246.  

Markets will remain closed on Tuesday on account of Dr B R Ambedkar Jayanti. 

Stocks that made news

Shares of pharmaceutical companies continued their rally with the S&P BSE Healthcare index hitting fresh 52-week high on the BSE on the back of positive developments in the sector even as most brokerages don't see a meaningful adverse impact of coronavirus (COVID-19) lockdown on the companies' earnings. READ MORE

 

Zee Entertainment Enterprises Ltd (ZEEL) fell 10 per cent to Rs 135 on the BSE during the day after the media major invested Rs 522 crore in tech subsidiary Margo Networks, which offers streaming and advertising services under the ‘SugarBox’ brand name. ZEE owns 80 per cent in Margo. The stock ended at Rs 137, down 8.57 per cent. READ MORE  

Larsen & Toubro (L&T) rose 6.57 per cent to Rs 866 on the BSE after the company announced it has won major contracts for its power transmission & distribution business. READ MORE

Global Markets

Global shares fell on Monday as investors braced for more signs of economic damage from the coronavirus pandemic.

The Nikkei fell 1.4 per cent while MSCI’s broadest index of Asia-Pacific shares outside Japan slipped slightly, with South Korean shares falling 0.9 per cent. US S&P 500 mini futures dropped 1.54 per cent, erasing a brief gain to a one-month high made right after the start of trading.

In commodity market, oil prices turned negative, erasing gains made after major producers agreed record global output cuts, pressured by concerns that the cuts will not be sufficient to head off oversupply as the coronavirus pandemic hammers demand.

(With inputs from Reuters)


4:22 PM IST "In spite of the hope that infections are peaking out in Europe, Indian markets closed negative with virus infections seen to be increasing in some regions of India. The Indian markets are awaiting the decision of the government regarding the current lockdown. Government is expected to announce a plan for a staggered withdrawal from the lockdown. Any continuation of the lockdown in its current form will put further pressure on economic growth and corporate earnings and will have a negative impact on the markets."

4:03 PM IST

4:03 PM IST

3:37 PM IST The S&P BSE Sensex shed 470 points or 1.51 per cent to settle at 30,690 while NSE's Nifty50 ended at 8,994, down 118 points or 1.3 per cent. 

3:23 PM IST

3:13 PM IST

3:07 PM IST

3:05 PM IST Amid the coronavirus (Covid-19) pandemic, which has severely affected the operations of global enterprises, global companies are asking Indian information technology (IT) services companies for their help for scenario planning using simulation to better prepare for the fallout of the crisis.   Scenario planning is the analysis and understanding of the latest trends to develop several plausible future scenarios that may help to identify how to be well-prepared to deal with what might happen. READ MORE

2:56 PM IST -- ICMR argues for discontinuing SC order directing free Covid-19 tests by pvt labs   -- SC in April 8 order directed for free tests for Covid-19 by pvt labs    

2:50 PM IST COMPANY DAY'S HIGH(RS) LATEST(RS) FALL(%) VRL LOGISTICS 189.15 159.60 -15.62 TATA METALIKS 400.00 342.70 -14.33 JINDAL STAIN. 31.90 27.90 -12.54 G M D C 43.80 38.40 -12.33 CHOLAMAN.INV.&FN 171.75 150.70 -12.26 Click here for the full list

LIVE UPDATES

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

"In spite of the hope that infections are peaking out in Europe, Indian markets closed negative with virus infections seen to be increasing in some regions of India. The Indian markets are awaiting the decision of the government regarding the current lockdown. Government is expected to announce a plan for a staggered withdrawal from the lockdown. Any continuation of the lockdown in its current form will put further pressure on economic growth and corporate earnings and will have a negative impact on the markets."

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


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


CLOSING BELL

The S&P BSE Sensex shed 470 points or 1.51 per cent to settle at 30,690 while NSE's Nifty50 ended at 8,994, down 118 points or 1.3 per cent. 

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


BUZZING STOCK:: Interglobe Aviation gains 2%


Nifty sectoral indices at this hour


Coronavirus outbreak pushes up demand for scenario planning by IT firms

Amid the coronavirus (Covid-19) pandemic, which has severely affected the operations of global enterprises, global companies are asking Indian information technology (IT) services companies for their help for scenario planning using simulation to better prepare for the fallout of the crisis.
 
Scenario planning is the analysis and understanding of the latest trends to develop several plausible future scenarios that may help to identify how to be well-prepared to deal with what might happen. READ MORE

NEWS ALERT | ICMR files affidavit before SC, bats for Private Path Labs: CNBC TV18

-- ICMR argues for discontinuing SC order directing free Covid-19 tests by pvt labs
 
-- SC in April 8 order directed for free tests for Covid-19 by pvt labs
 
 

Fall from intra-day high today in BSE500 stocks

COMPANY DAY'S HIGH(RS) LATEST(RS) FALL(%)
VRL LOGISTICS 189.15 159.60 -15.62
TATA METALIKS 400.00 342.70 -14.33
JINDAL STAIN. 31.90 27.90 -12.54
G M D C 43.80 38.40 -12.33
CHOLAMAN.INV.&FN 171.75 150.70 -12.26
Click here for the full list

MARKET UPDATE:: Total 316 stocks locked in upper circuit on the BSE in an otherwise weak market today

-- The list includes BEML, ITI, HEG, Graphite India, Venky's India, and Wockhardt, among others

SECTOR WATCH:: Nifty metal index off day's low


Covid-19 pandemic to keep Indian steel exports subdued in near term: ICRA

A report by rating agency ICRA Ltd forecasts that steel exports from the country are likely to be muted in the near term due to curbs on trade flow and depressed demand in buyer nations especially Italy and Belgium which accounted for 14 per cent of India’s outbound steel shipments during April-February period of FY20.
 
Since 2014-15, India’s steel exports and imports have witnessed a roller coaster run. Both in FY15 and FY16, imports trumped exports significantly. In FY17 and FY18, exports staged a comeback, outstripping imports. Later, in FY19, steel exports again lost ground to imports. READ MORE

NEWS ALERT | PM Modi to address the nation at 10 am tomorrow

NEWS ALERT :: Passenger car sales drop 52.1% YoY in March: SIAM

>> Two-wheeler sales dip by 39.8% YoY at 8,66,849 units
 
>> Commercial Vehicle sales decline by 88.1% at 13,027 units
 
>> Exports decline by 24.5% YoY

Index outlook by ICICI Securities

Covid-19 is a black swan event with far reaching implications for businesses worldwide. The Indian economy is no exception with a stringent 21-day lockdown period underway. With almost nil manufacturing activity in this 21-day period and slow ramp up thereafter amid subdued consumer sentiment, we downgrade our Nifty earnings estimates to the tune of 4% for FY20E, 18% for FY21E and 13% for FY22E. Incorporating the downward revision, we now expect Nifty earnings to grow at a CAGR of 13.2% in FY19-22E vs. expectation of 18.6% CAGR in the past.
 
The key risk to our index target is more than anticipated subdued economic activity with our underlying assumption of one month of complete economic standstill, resumption of economic activity in the month, thereafter, and normalised economic activity by the end of the quarter (Q1FY21).

LKP Securities on Cochin Shipyard

Cochin Shipyard (CSL) came out with its IPO in August 2017 at ₹432 and was oversubscribed by a whopping 76 times despite being a PSU. Now in April 2020 despite being the largest player in the public sector at a time when several of its private sector peers are either bankcrupt or on the verge of closing down, the street is less optimistic on CSL at 260 despite acknowledging its vast strength across all metrics which itself to our mind presents an investment opportunity to the
savvy investor At 4.7x the valuations for such a goliath in defence shipbuilding industry seems quite attractive. Hence, we initiate the company with a BUY rating and a target of Rs 356 (valued at 6.5x FY 22E earnings)

Rupee closing

Rupee ends at 76.27/$ vs Thursday's close of 76.29 against the US dollar

MPC members scrambled to protect demand, financial stability amid Covid-19

While the impact of the pandemic is severe, India's macroeconomic fundamentals continue to be sound, especially in comparison with the conditions that prevailed in the aftermath of the global financial crisis, observed Reserve Bank of India (RBI) governor Shaktikanta Das. READ MORE

MARKET CHECK | Sensex trades nearly 1.7% lower


High frequency indicators point toward record-low growth: Emkay Global Financial Services

We believe only 36% of the economy is operational during the one month of lockdown and even that would be operating below efficiency levels. Simple evidence of it is seen in the incremental data when a CMIE survey showed that unemployment hit record high of 24% in mid-March; AIMTC reported that only 15% of trucks are operational; and toll collection is down by one-third in March (for one week of lockdown in March, if it is shut for April it would be a loss of ~Rs20bn).
 
We believe that for the economy to recover from this situation, the asking rate of filling in the hole of one month is Rs10tn and is difficult given the tight fiscal situation. This translates to, 4.9% of GDP, this fiscal stimulus would still be much lower than some of the countries which have announced fiscal stimulus of nearly 20% of GDP. Hence, we believe that growth is likely to be very gradual. We expect negligible GDP growth in FY21.

Coronavirus impact: Slowdown-hit automobile hub stares at dead end

The future of a blue collar worker also depends on the balance sheet of his employer.
 
In this belt, there’s an extensive web of interaction between lead manufacturers and their suppliers. At the top of the tier, there are global auto firms like Maruti, Hero, Honda as well as component suppliers like Denso, Bosch, Rico. READ MORE

OPEC+ deal 'historic yet insufficient', oil prices to fall: Goldman Sachs

The bank saw downside risks to its short-term oil price forecast of around $20 per barrel for Brent but projected the global crude benchmark would outperform U.S. oil because OPEC+ producers' exports would likely fall, freeing up floating storage space. READ MORE

HUL, the superstock? Safe haven demands, better earnings attract investors

HUL is now trading at over 75 times its earnings for trailing 12 months ended December 2019, a 55 per cent premium to its five-year mean and five times higher than the price-to-earnings (PE) valuation of the Nifty50. At these levels, experts say there is a risk to pay such a top-dollar valuation. READ MORE 


MARKET CHECK :: Sensex slides again, down 500 pts


Microfinance Industry most vulnerable to lockdown and moratorium

In a recent call with analysts, Bandhan Bank said it has stopped fresh disbursement/collection but has not seen MFI customers dipping into their savings yet. “As a long-term strategy, the bank has already diversified asset portfolio, with the MFI share down to 61 per cent and to fall further to 40 per cent over the years,” analysts at Emkay Global Financial note. “While all weekly centre meetings, disbursements and collections are temporarily stopped due to lockdown, employees are maintaining regular connection with customers via phone calls,” analysts at ICICI Securities note after a call with CreditAccess Grameen’s management. READ MORE

Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 4.13 25.91
SUZLON ENERGY 2.66 4.72
RELIANCE POWER 1.57 1.95
TATA MOTORS 75.35 1.01
NCC 22.90 13.65
» More on Most Active Volume

BROKERAGE VIEW:: HDFC Securities on Cipla

We expect gradual ramp up as shipments are expected to be staggered. We factor sales contribution of USD60mn/70mn sales in FY21/22 respectively. Incrementally, this adds ~5-6% to our EPS estimates. Strong respiratory franchise (gAdvair filing in Q1FY21, Proventil approval), specialty portfolio targeting Institutional space (IV Tramadol, Zemdri) and complex products (40% of projects under development) will drive US growth in the medium term. We revise our target price to Rs 600 (20x FY22 EPS + Rs 30/share for gAdvair). Reiterate Buy.

Cement stocks gain in a weak market

COMPANY LATEST(rs) CHG(%)
AMBUJA CEM. 171.25 7.81
INDIA CEMENTS 110.00 7.16
ACC 1099.00 9.88
ORIENT CEMENT 51.15 13.29
HEIDELBERG CEM. 157.50 2.47
Click here for the full list

Wipro Q4 preview :: Covid-19 impact on business, update on CEO hunt eyed

The economic dislocation due to the outbreak of coronavirus (Covid-19) is expected to hit the March quarter earnings (Q4FY19-20) of Indian information technology (IT) companies, mainly in the form of revenue loss due to lockdowns, slower client decision and lower discretionary spending. 

Among large-cap IT companies, Wipro is slated to announce its March quarter results (Q4FY20) on Wednesday, April 15. Most brokerages expect the company's revenue growth to come in at the lower end of the guided range of 0-2 per cent in the constant currency (CC) terms. READ MORE

Gold offers credible hedge against current economic uncertainty: ICICI Securities

These are golden days for gold. In 2019, its price surged almost 20% in dollar terms. If 2019 ended well for the metal, then 2020 has started even better. This week, the price of gold hit its highest level in seven years, climbing to around US$1700 ounce.

For Indian investors, gold has been an effective asset class from a diversification perspective as apart from global price movement, rupee depreciation has helped it deliver better returns. Holding some portion of the portfolio in gold provides effective diversification.

Heatmap: S&P BSE Sensex at this hour


STOCK ALERT :: India Ratings revises Tata Steel's outlook to 'Negative' from 'Stable': CNBC TV18


Coronavirus lockdown: Govt may start economic activity in 'green zones'

According to finance ministry sources, the PM might address the nation once the Centre shapes the contours of the plan to revive economic activity in a phased manner. The Centre is keen to restart economic activity in ‘green zones’, or areas with a low incidence of Covid-19 cases. READ MORE

SBI Cards slips 13%, hits new low; stock down 32% from issue price

Shares of SBI Cards and Payment Services slipped 13 per cent to Rs 516 on the BSE on Monday amid the buzz of lockdown being extended beyond April 14.
The non-banking finance company's stock was trading at its lowest level since listing on March 16, 2020. With today’s fall, the stock has now fallen 32 per cent below its issue price of Rs 755 per share. SBI Cards saw a weak debut due to prevailing market condition as the uncertainty regarding the effect of the coronavirus epidemic kept investor sentiment in check. READ MORE

SENSEX HEATMAP AT THIS HOUR


Coronavirus outbreak: Analysts cautious on sectors with high debt

Analysts say investors could steer clear of stocks in the sectors that have high debt and high impact on revenues because of the Covid-19 pandemic. “While strong balance sheets or continuing demand during — and an anticipated sharp pick-up in demand post — the lockdown will support the resilience of some sectors, collapsing discretionary demand or high leverage will likely constrain the others,” says a note by Crisil. READ MORE

Benign valuations, long-term triggers favour Cummins India stock

The implementation of the Central Pollution Control Board’s CPCB4+ emission norms (requires electronic engine platforms compared to mechanical ones earlier) from July of 2021 will help Cummins India gain market share. The maker of engine, power systems, components and distribution not only has access to its parent’s product pipeline but is also developing products for the local market at its technical centre in Pune. Given the higher cost of creating the new products, Indian peers will have to spend more to make products compliant. READ MORE

Larsen & Toubro gains 5% on winning 'major' contracts, fund raising plan

The board of the construction & engineering major also approved long-term borrowing of up to Rs 9,000 crore, either through external commercial borrowings, term loans, non-convertible debentures or any other instrument as may be appropriate. READ MORE


MARKET VOICE | Diversified global, US and Europe funds saw biggest outflow: Cameron Brandt

Before the coronavirus-triggered sell-off in late February, flows were coming into bond funds, particularly US ones, at a record-setting pace. Flows to equity funds were more subdued, but funds with global mandates were attracting plenty of fresh money —including above average amounts of retail cash. READ FULL INTERVIEW HERE
Cameron Brandt, Director of research, EPFR Global

Nifty outlook by ICICI Securities

Covid-19 is a black swan event with far reaching implications for businesses worldwide. The Indian economy is no exception with a stringent 21-day lockdown period underway. With almost nil manufacturing activity in this 21-day period and slow ramp up thereafter amid subdued consumer sentiment, we downgrade our Nifty earnings estimates to the tune of 4% for FY20E, 18% for FY21E and 13% for FY22E. Incorporating the downward revision, we now expect Nifty earnings to grow at a CAGR of 13.2% in FY19-22E vs. expectation of 18.6% CAGR in the past.
 
The key risk to our index target is more than anticipated subdued economic activity with our underlying assumption of one month of complete economic standstill, resumption of economic activity in the month, thereafter, and normalised economic activity by the end of the quarter (Q1FY21).

RBI MPC minutes | Only the US dollar remains safe haven in a highly uncertain outlook.

 -- Japanese yen and gold – the other two safe havens till the early part of March – have given way to a flight to cash. 

RBI MPC minutes | Members decided to continue with the accommodative stance

-- The MPC decided to continue with the accommodative stance as long as it is necessary to revive growth and mitigate the impact of coronavirus (COVID19) on the economy, while ensuring that inflation remains within the target

RBI MPC minutes | Macroeconomic fundamentals of the Indian economy continue to be sound: RBI Guv Shaktikanta Das

-- There's a rising probability of a global recession, which may be deeper than the one experienced during the global financial crisis

NEWS ALERT | RBI releases minutes of Monetary Policy Committee held from March 24-27

-- 2 MPC members, Chetan Ghate and Pami Dua, had voted for 50 bps cut

-- India's near-term growth outlook has deteriorated sharply

-- Won't hesitate to use any instrument coventional, unconventional to mitigate virus impact

-- Arresting risks to growth outlook, preserving financial stablity should receive priority

Avenue Supermarts tanks 5% after update on Covid-19 lockdown impact

Shares of Avenue Supermarts, which runs the DMart chain of stores, were locked in the lower circuit band of 5 per cent at Rs 2,288 on the BSE on Monday after the company on Friday said nearly 50 per cent of its outlets were closed due to the lockdown and Covid-19 restrictions imposed by local authorities. Till 10:22 am, a combined 145,000 shares changed hands on the NSE and BSE. There were pending sell orders for 170,000 shares on both the exchanges. READ MORE

PBOC ups stake in HDFC. How to trade HDFC twins at the bourses today?

Shares of Housing Development Finance Corporation (HDFC) tumbled nearly 3 per cent to Rs 1,655 levels on the BSE on Monday morning before recovering some of the lost ground. The fall was mostly in line with the S&P BSE Sensex that lost over 2 per cent in morning trade. Meanwhile, People’s Bank of China (PBoC) has increased its shareholding in HDFC amid a sharp correction in shares of India’s largest mortgage lender. READ MORE

MARKET UPDATE:: Sensex off day's low


BROKERAGE VIEW:: Edelweiss Securities on Specialty Chemicals

Despite near-term operational uncertainties, we believe the following countervailing factors would come into play: i) currency depreciation; ii) crash in crude prices; and iii) global players cutting down their dependence on China post-COVID-19. We are rolling over our target price to FY22 and cutting the multiple by ~10% to factor in the current uncertain environment. In light of the recent correction juxtaposed with their resilient business models, we are upgrading Galaxy Surfactants and SRF to ‘BUY’ from ‘HOLD’. Maintain ‘BUY’ on Aarti Industries, and ‘HOLD’ on Fine Organics and PI Industries. 

BROKERAGE VIEW:: Prabhudas Lilladher on IT sector as Cognizant withdraws CY20 guidance

CTSH withdrawing guidance is a smart move in our view. COVID-19 has truly created demand & supply challenges across industries. In such environment, to understand the impact of IT spending in business environment is very difficult. CTSH’s comments on near term challenges and muted outlook for 2020 are in line with our expectations. Our base assumption for our coverage universe is of global recession restricted to FY21E with signs of pent up demand in FY22E. We model pricing pressure and margin decline across our coverage universe for FY2021. We see possibility of Indian IT following the suit and withdrawing the guidance. Infosys, HCL Tech, L&T Tech Services, Hexaware and Cyient provide full year guidance, whereas Wipro provides quarterly guidance. We continue to prefer Infosys and TCS in this uncertain environment.

BROKERAGE VIEW:: Motilal Oswal Financial Services on Godrej Consumer Products

CMP: Rs 595 | TP: Rs 620 (+4%) | Neutral

Over the course of the decade (FY10-20E), GCPL has posted healthy growth on all fronts. However, in recent years, the sales slowdown in the domestic business, continued inability to scale-up margins and improve the international business’ weak RoCEs have had an adverse effect on the pace of earnings growth. Apart from the COVID-19 led lockdown challenges, which is more of a short-term phenomenon, the loss of dominance in Hair Color, the advent of unorganized incense stick players in HI and weak execution in the Africa business remain key concerns. Also, based on GCPL’s management commentary, there is no indication that pace of earnings will improve v/s the past five years. Given the weak earnings outlook and inferior RoCE compared to peers, valuations of 34.5x FY22E EPS appears fair.

BROKERAGE VIEW:: Edelweiss Securities on Pharma sector

Pharma is in flavor right now – with supply-side risks mitigated as China key starting materials (KSMs) resume and disruption risks easing amidst improved business continuity, the sector finds itself positioned to grab opportunities in the COVID-19 environment. Near-term recovery indicates that earnings cuts for the sector remain limited at 1%/3% for FY21/22E as a depreciating INR offsets marginally slower domestic growth and possible delays in USFDA approvals. What’s more important is the structural tailwind for India pharma as the sector comes to the world’s rescue and the latter equips itself to become medically sufficient to endure future drug-supply disruptions, thus precipitating a re-rating. We have tweaked our average sector multiple from 19x to 22x with focus on stocks that have: i) a well-diversified portfolio across branded & generic; ii) limited regulatory risk from the USFDA; ii) low leverage; and iii) a strong management with proven cost rationalization credentials. We also modify our pecking order – Cipla is now our top pick with a unique respiratory advantage in a COVID-19 environment, followed by DRRD and AJP. Also, we upgrade NTCPH and GNP to ‘BUY’, downgrade TRP to ‘REDUCE’ and CDH to ‘HOLD’ as we shift target prices to FY22E EPS. In terms of COVID-19 opportunity, CDH and IPCA may also benefit, but we believe the upside is priced in.

BROKERAGE VIEW:: ICICI Securities on Titan Co

Titan has been our preferred top pick as it has consistently exhibited its ability to gain market share amid a tough industry scenario. Robust balance sheet and asset light distribution model have enabled it to outpace peers in terms of store addition. Over the longer term, we expect Titan to be a key beneficiary as India’s gold market continues to strive towards regulation and standardisation. We reiterate BUY rating with a revised target price of Rs 1,220.

Gold outlook by Hareesh V, Head Commodity reseach at Geojit Financial Services

Large scale quantitative easing measures taken by various central banks have lifted gold higher. Investors’ demand for safe havens due to fears of a global recession amid the negative economic impact of COVID-19 will also support the yellow metal. At the same time, moderate physical activities and a strong dollar may limit major gains.
 
Technical Outlook (London spot):Bullish momentum may continue as long as prices stay above $1642. Intraday resistance is seen at $1695, a direct break above the same would lift prices higher to $1705 or even more towards $1740 levels. Immediate downside turnaround point is seen at $1620.

NEWS ALERT | Tata Communications to mull raising up to Rs 650 cr via NCDs on April 15: CNBC TV18


BSE Healthcare index hits 52-week high, zooms 36% from March low

Shares of pharmaceutical companies continued their rally with the S&P BSE Healthcare index hitting fresh 52-week high on the BSE on the back of positive developments in the sector even as most brokerages don't see a meaningful adverse impact of coronavirus (COVID-19) lockdown on the companies' earnings. The S&P BSE Healthcare index hit 52-week high of 14,854 points on Monday, surging 36 per cent in the last three weeks. READ MORE

OMCs, aviation, paint stocks drop as crude oil prices rise post OPEC+ deal

The S&P BSE Oil & Gas index slipped nearly 3 per cent in the early trade on Monday after OPEC and allies led by Russia agreed on Sunday to a record cut in output to prop up oil prices. The deal, which comes amid the coronavirus pandemic, could curb global oil supply by 20 per cent. Reacting to the development, crude oil prices were trading firm at the time of writing of this report. While US West Texas Intermediate (WTI) crude futures were up 4.8 per cent at $23.87 per barrel, international benchmark Brent futures rose 4.19 per cent to $32.80 per barrel, READ MORE

Nifty Pharma index up 2% in an otherwise weak market


Zee Entertainment slides 10% on Rs 522 crore investment in tech arm

Shares of Zee Entertainment Enterprises Ltd (ZEEL) fell 10 per cent to Rs 135 on the BSE on Monday after the media major invested Rs 522 crore in tech subsidiary Margo Networks, which offers streaming and advertising services under the ‘SugarBox’ brand name. ZEE owns 80 per cent in Margo. Till 09:34 am, a combined 1.8 million equity shares had changed hands and there were pending sell orders for 330,000 shares on the BSE and NSE. READ MORE
 

Technical outlook :: Gold

Large scale quantitative easing measures taken by various central banks have lifted gold higher. Investors’ demand for safe havens due to fears of a global recession amid the negative economic impact of COVID 19 will also support the yellow metal. At the same time, moderate physical activities and a strong dollar may limit major gains.
 
Technical Outlook: Bullish momentum may continue as long as prices stay above $1642. Intraday resistance is seen at $1695, a direct break above the same would lift prices higher to $1705 or even more towards $1740 levels. Immediate downside turnaround point is seen at $1620.

-- Hareesh V, Head Commodity Research at Geojit Financial Services

MARKET UPDATE:: Sensex extends fall, slips over 500 pts


Nomura on pharma sector

Our analysis of interactions within the industry lead us to believe that supplies from China, which were affected significantly in the first half of 4QFY20, have now largely normalized. Companies had higher raw material inventory going into the Chinese new year; therefore, have not faced any significant supply issues, in our view. However, spot prices of certain raw materials like anti-infectives rose substantially due to supply uncertainties. The prices have since come down, but remain at elevated levels. Procurement of high-cost inventory could impact gross margins of companies in 1QFY21F.

Edelweiss on pharma sector


Zee Entertainment tumbles 10%


COMMENT :: Edelweiss on IIP data

The uptick in the industrial activity in February would not sustain. India’s exports have taken a hit because of weak global demand in the wake of the COVID-19 outbreak while domestic lockdowns too would weigh on industrial activity. The magnitude of damage will depend on the length of the lockdown and the policy response that may come along.

MARKET COMMENT :: Chris Wood of Jefferies on US Fed stimulus

Further expansion of the scope of Fed purchases is wholly unwarranted and doubtless due to the pleading of special interests. It marks a further expansion of the socialisation of the credit system in America’s supposedly “free market” economy.

The Fed has already done its job by buying investment-grade bonds, which has allowed credit investors to “front run” the Fed with such profitable effect. The “fallen angel” issue is no justification to expand the purchases into high-yield, so far as GREED & fear is concerned, and the Fed should not be buying CLOs and commercial mortgage backed securities period – just as it never should buy equities.

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

Chris Wood

Bharti Airtel gains 5% in a weak market


S&P BSE Oil & Gas index trades over 1% lower post OPEC deal


TCS down over 0.5%


Avenue Supermarts slips over 5%


HDFC Ltd trades over 1% higher


SECTOR WATCH | Top losers and gainers on the NSE


FIRST TRADE | Top losers and gainers on the S&P BSE Sensex


OPENING BELL

At 09:16 am, the S&P BSE Sensex was trading 193 points or 0.62 per cent lower at 30,967 and the Nifty was trading at 9,077, down 35 points or 0.39 per cent. 

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


Market at Pre-Open


Market at Pre-Open


Bull spread strategy on Escorts by Nandish Shah of HDFC Securities

Rationale:
 
-- Long build-up is seen in the Escorts Futures’ where we have seen 14 per cent (Prov) rise in the Open Interest with price moving up by 7 per cent.
 
-- The stock price has given breakout on the daily chart by closing above the resistance level of 676. READ MORE

Nifty needs to hold 9,000 for further up move: Gaurav Garg of CapitalVia

Market bounced sharply due to strong global cues, Nifty needs to hold 9,000 for further move
 
Market traded with positive sentiments throughout Thursday's trading session due to strong global cues. India VIX lowered by 4.78 per cent and closed at 49.7, suggesting that volatility is likely to decrease in the near term and bulls might take control on the Street. Nifty managed to close at 9,111.90, adding 363 points. Pharma, automobile, private banks, and metal sectors traded with positive sentiments whereas none of the sector closed in the red. Nifty bank closed at 19,913.60, adding 1,266 points from the previous day’s closing. READ MORE

Stocks to watch: HDFC, IT stocks, oil-linked stocks, SRF, Dr Reddy's

HDFC Ltd: The central bank of China has acquired nearly 17.5 million shares in HDFC during the quarter ended March, according to data submitted by the company at the BSE. 
 
Oil-linked stocks: OPEC and allies led by Russia agreed on Sunday to a record cut in output to prop up oil prices amid the coronavirus pandemic in an unprecedented deal with fellow oil nations, including the United States. However, the move failed to cheer investors as US crude futures CLc1 dropped to $22.67 per barrel, down 0.4 per cent as they quickly erased earlier gains to hit the lowest level since April 2, Reuters reported. 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 climbs more than $1/barrel as OPEC, allied producers agree record output cut

>> Oil prices jumped more than $1 a barrel on Monday after major producers finally agreed their biggest-ever output cut, but gains were capped amid concern that it won’t be enough to head off oversupply with the coronavirus pandemic hammering demand.

>> Brent crude futures rose $1.23, or 3.9%, to $32.71 a barrel after opening at a session high of $33.99. U.S. West Texas Intermediate (WTI) crude futures were up $1.39, or 6.1%, to $24.15 a barrel, after hitting a high of $24.74.

(Via Reuters)

SGX Nifty indicates at weak start for markets

>> At 8:30 am, the index was at 9,056.25, down 0.17 per cent.

Asia trades lower

Source: Reuters


Wall Street rises on latest Fed rescue program

Source: Reuters


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