F&O expiry: Sensex tanks 1,115 pts on global sell-off; Nifty ends at 10,806

Topics HDFC | Tata Motors | Tata Chemicals

In the broader market, the S&P BSE MidCap index dropped 2.14 per cent to 13,933 levels.
The Indian stock market slumped on Thursday, the last of day of the futures & options (F&O) contracts for September series amid weak global cues. 

The benchmark S&P BSE Sensex tumbled 1,115 points, or 3 per cent to settle at 36,554. Barring HUL (up 0.36 per cent), 29 constituents of the index declined. IndusInd Bank (down 7 per cent) ended as the biggest loser on the index. 

NSE's Nifty settled at 10,806, down 326 points or 2.93 per cent. India VIX zoomed over 12 per cent to 23.57 levels. 

In the broader market, the S&P BSE MidCap index dropped 2.14 per cent to 13,933 levels while the S&P BSE SmallCap index slipped 2.28 per cent to 14,168 levels.

On the sectoral front, all the indices on the NSE ended in the red. Nifty IT and Nifty Metal slipped over 4 per cent each while Nifty Bank fell nearly 3.5 per cent to 20,457 levels. 

Global markets

Asian shares fell on Thursday following a slump on Wall Street overnight, as a series of warnings from US Federal Reserve officials underscored investor worries over the resilience of the economic recovery.

MSCI's broadest index of Asia-Pacific shares outside Japan tumbled 1.35 per cent in the morning session on broad losses across the region.

Chinese blue-chips dropped 1.09 per cent, Hong Kong's Hang Seng fell 1.72 per cent, Seoul's KOSPI sank 1.73 per cent and Australian shares were 1.18 per cent lower. Japan's Nikkei fell 0.74 per cent.

In commodities, oil prices dropped weighed down by concerns that US economic recovery is slowing as the coronavirus outbreak lingers, while a renewed wave of Covid-19 cases in Europe have led to reimposed travel restrictions in several countries.

(With inputs from Reuters)

 


4:10 PM IST "Indian benchmark indices had a gap down opening and kept losing ground as the day wore on, to finally end the day around 2.8% down. Markets tracked weak global cues as the uncertainty witnessed in the last few days gave way to negativity, with broader markets also underperforming. The uncertainty regarding an economic recovery, the unabated rise in virus infections, and today being derivatives expiry day, all contributed to the negativity. With volatility expected to be high, traders are advised to remain cautious."

3:43 PM IST

3:42 PM IST

3:36 PM IST The S&P BSE Sensex plunged 1,115 points, or 2.96 per cent to settle at 36,554 while NSE's Nifty ended at 10,806, down 326 points, or 2.93 per cent.

3:27 PM IST In the past three trading days, shares of HSIL have surged 17 per cent after its board on Monday approved the buyback of shares at Rs 105 per share for an aggregate amount of Rs 70 crore via open market. READ MORE

3:02 PM IST The much-awaited initial public offer (IPO) of UTI Asset Management Company, one of the leading asset management companies (AMCs) in India, is set to open on September 29. The offer is proposed to close on October 1, 2020. The price band of the offer has been fixed at Rs 552 to Rs 554 per equity share. READ MORE  

3:01 PM IST I have always held that a Bear Market is the BEST period for creating major distance between yourself and the rest: if you have the ability to get it right. Bear Markets should be loved & welcomed by all intelligent, capable, all- weather, complete investors. — Shankar Sharma (@1shankarsharma) September 24, 2020

2:56 PM IST

2:43 PM IST

2:39 PM IST

2:32 PM IST The Indian banking sector is considered a late-exiter. Its recovery will be longer. But some ratios may return more quickly to levels as they were weak prior to the onset of Covid-19 (in contrast with many other jurisdictions). READ MORE

LIVE UPDATES

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

"Indian benchmark indices had a gap down opening and kept losing ground as the day wore on, to finally end the day around 2.8% down. Markets tracked weak global cues as the uncertainty witnessed in the last few days gave way to negativity, with broader markets also underperforming. The uncertainty regarding an economic recovery, the unabated rise in virus infections, and today being derivatives expiry day, all contributed to the negativity. With volatility expected to be high, traders are advised to remain cautious."

SECTOR WATCH | All sectoral indices on the NSE decline


MARKET AT CLOSE | Out of 30 constituents, 29 end in the red


CLOSING BELL

The S&P BSE Sensex plunged 1,115 points, or 2.96 per cent to settle at 36,554 while NSE's Nifty ended at 10,806, down 326 points, or 2.93 per cent.

HSIL hits fresh 52-wk high, gains 17% in 3 days on board's nod for buyback

In the past three trading days, shares of HSIL have surged 17 per cent after its board on Monday approved the buyback of shares at Rs 105 per share for an aggregate amount of Rs 70 crore via open market. READ MORE

UTI AMC IPO to open on September 29, price band fixed at Rs 552 - Rs 554

The much-awaited initial public offer (IPO) of UTI Asset Management Company, one of the leading asset management companies (AMCs) in India, is set to open on September 29. The offer is proposed to close on October 1, 2020. The price band of the offer has been fixed at Rs 552 to Rs 554 per equity share. READ MORE  


MARKET VOICE:: Shankar Sharma

HEATMAP:: Every S&P BSE Sensex constituent, barring HUL, trading in the red at this hour


ALERT :: Nifty approaching 200-DEMA level of 10,800


ALERT :: Sensex crashes 1,000 pts


Covid-19: Indian banking system to be among the last to recover, says S&P

The Indian banking sector is considered a late-exiter. Its recovery will be longer. But some ratios may return more quickly to levels as they were weak prior to the onset of Covid-19 (in contrast with many other jurisdictions). READ MORE

Covid-19 crisis: Now, FinMin is not so sure about a V-shaped recovery

The finance ministry is reassessing its earlier optimism about a V-shaped economic recovery as people are spending less owing to extreme uncertainty induced by the Covid-19 pandemic. “We keep devising projections based on high-frequency indicators. READ MORE

Rupee Closing

Rupee posts biggest single-session fall against the US dollar since September 3; ends at 73.90 per US dollar vs Wednesday's close of 73.57/$

Angel Broking IPO subscribed 2x so far on Day 3; retail portion at 3.4x

The Rs 600-crore initial public offering of Angel Broking was subscribed nearly 2 times on the National Stock Exchange (NSE) and BSE on Wednesday, the last day for bidding. Till 12:30 pm, the issue was subscribed 1.77 times on the exchanges, data show. The IPO has received bids for 2.43 crore equity shares against an offer size of 1.37 crore equity shares, the data available on exchanges showed. READ MORE

Advanced Enzyme Tech freezes at 20% upper circuit; stock hits 52-week high

Shares of Advanced Enzyme Technologies were frozen at the upper circuit of 20 per cent at Rs 272.80, also its 52-week high on the BSE on Thursday, in an otherwise weak market. The S&P BSE Sensex was down 1.78 per cent at 36,998 points at 01:05 pm. The trading volumes on the counter more-than-tripled with a combined 6.7 million equity shares changing hands. There were pending buy orders for around 740,000 shares on the NSE and BSE. READ MORE

Jio postpaid plans: BofA, CLSA think its not a threat to Airtel; here's why

Bharti Airtel tumbled at the bourses on Wednesday, sinking 10 per cent in the intra-day trade to hit a low of Rs 424, after Reliance Industries’ Jio rolled out new postpaid plans with bundled OTT (over-the-top) subscriptions. The stock eventually settled 8 per cent lower at Rs 434 apiece. On Thursday, however, the stock – even though in the red – was outperforming the market and was down 1 per cent on the BSE, as against a 2 per cent decline in the benchmark S&P BSE Sensex in intraday deals. READ MORE

European indices make a subdued start


Nearly half of BSE 500 stocks underperform market since March low

Nearly half the stocks that comprise the BSE 500 index have underperformed the market in the past six months when Prime Minister (PM) Narendra Modi announced the first 21-day nationwide curfew / lockdown to contain the spread of Covid-19 on March 24. The announcement triggered a sharp fall in the market, which hit their almost four-year low. Six months on, the frontline indices – the S&P BSE Sensex and Nifty 50 – have rebounded 47 per cent and 48 per cent, respectively from their 46-month low touched on March 24 in intra-day trade. READ MORE

MARKET COMMENT:: Abhimanyu Sofat, Head of Research, IIFL Securities

“It is possible that we may see more correction. Scotland and UK have said they are contemplating a lockdown. Fears that more economies may close down is creating more nervousness in the market. The revelations on global bank’s transactions also weighed heavily. All this is collective bothering the market, which is at is on the lookout for reasons to correct. Market had already raced ahead of its valuations."
 
"If we see markets weakening further, it could add more jitters. I see a strong support at 10,800 if the markets were to weaken from here. Cyclicals will be hammered further. People have stocked up on defensive stocks, and that pack which has stayed resilient, may also feel the heat. Stability in the global markets could be the only savior right now.”

IT stocks: Double-digit growth required to justify high valuation multiples

Steller listing of Happiest Minds Technologies last week once again underlined investors trust in IT stocks mainly led by rising thrust for IT/digital infrastructure amid the coronavirus (Covid-19) pandemic. The story is not different for the already listed players. Over the last 3 months, the Nifty IT index has gained a whopping 35 per cent, almost 6 times the rise in the Nifty50. READ MORE


June Telecom Data :: Reliance Jio adds 4.5 million users

>> Airtel loses 1.13 million users

>> Vodafone Idea loses 4.8 million users

It's raining IPOs: With 8 deals, busiest month for Dalal Street in nine yrs

Asset management firm UTI Mutual Fund and state-owned shipbuilder Mazagon Dock will launch their offerings just before the month ends. Stellar listings for last three IPOs has buoyed prospects for the primary markets, said experts. The two issues that closed this week -CAMS and Chemcon Speciality- continued to witness huge oversubscriptions despite volatility in the secondary market. READ MORE

UPDATE :: Nifty slips below 10,900 for the first time since August 3, 2020


MARKET CHECK :: Indices extend decline; Sensex tanks nearly 800 pts


NEWS ALERT | Looking at 8% loan growth in FY21, says Rajnish Kumar

>> Around 50 firms with loan between Rs 50 cr-Rs 1500 crore may seek debt recast

NEWS ALERT | As of Sept 23, not a single corporate has approached us for restructuring: SBI Chairman

-- Things become more complicated  when there are large number of lenders involved

-- introduction of IBC helped in stress in corporate loans
 
-- Corporate are hesistant in getting 'restructured' tag

-- The smaller the credit size, the easier it becomes to deal with them

(via CNBCTV18)

NEWS ALERT | Corporates with over Rs 1500 cr exposure has approached us for restructuring: SBI Chairman

-- Recovery in India will be linked to recovery in economy

-- Things on ground are not as bad as expected

-- (via CNBC TV18)

BUZZING STOCK:: Route Mobile continues to surge, up 13% in an otherwise weak market


Here's how trendlines can help traders catch that perfect breakout

A trendline indicates a broad trend, especially when considered on a bigger scale and helps in developing a trading strategy. A trendline is drawn considering the “lower lows” in terms of support and “higher highs” as resistance points to identify the next influential levels. This could take a horizontal form as well. The idea is to recognize whether the price is holding the trendline or not. Nowadays, most day-traders use trendlines to get a sense of the trading sentiment. READ MORE

Infosys, TCS, RIL contribute the most to Sensex's 600-point drop today


MARKET UPDATE:: Broader indices underperform benchmarks; India VIX up 5%


Syngene Int'l hits record high in a weak market, rallies 26% in two weeks

Shares of Syngene International hit a record high of Rs 596.85, surging 6.5 per cent on the BSE in the intra-day trade on Thursday in an otherwise weak market. The stock surpassed its previous high Rs 594.75 touched on September 15, 2020. In comparison, the S&P BSE Sensex was down 1.5 per cent at 37,115 points at 10:13 am. In the past two weeks, the stock of the pharmaceutical company has rallied 26 per cent against a 4.4 per cent fall in the benchmark index. READ MORE

MARKET CHECK:: Sensex extends fall


BUZZING STOCK:: Advanced Enzyme surges 12% in an otherwise weak market


BROKERAGE VIEW | ICICI Securities on Bharat Forge

RATING: REDUCE | TARGET PRICE: Rs 412

Aerospace segment outlook remains uncertain due to Covid-19 pandemic; however, recent defence procurement policy shift has raised investor confidence in BHFC’s potential to win artillery guns’ orders. We deep-dived into the artillery segment opportunity, analysed global peers (e.g. Rheinmetall) and our base case incremental DCF value is ~Rs41/share. Key risk: If the Kalyani group chooses to bid for defence orders via Kalyani Strategic Systems BHFC benefits drops by 50%. We roll forward earnings into Sep’20, upgrade our rating to REDUCE from SELL.

Tata Chemicals gains 8% in 2 days as Tata Sons buys additional stake

Shares of Tata Chemicals rose 3 per cent to Rs 301 on the National Stock Exchange (NSE) on Thursday, surging 8 per cent in two days in an otherwise weak market after the promoter, Tata Sons, bought over 2 million shares via open market. In comparison, the Nifty50 index has slipped nearly 3 per cent in the same period. READ MORE

BROKERAGE VIEW | Prabhudas Lilladher on Dr Reddy's

Rating: ACCUMULATE | TP: Rs 5,648

We incorporate benefits from new launches and roll forward our base year of valuation to FY23E (from FY22E) though maintained our assigned PE 24x, given its sustainability of improved earnings visibility led by new host of launches. Our new TP is Rs 5,648 (earlier Rs 4,326) with gRevlimid benefit contributing Rs 262/share (assigning 1x(PE) to discounted cash flow of gRevlimid benefit over FY23E-26E). We also change our rating to Accumulate (earlier Hold).

Rupee opening

Rupee opens weaker at 73.82/$ vs Wednesday's close of 73.57 against the US dollar

MARKET UPDATE :: Nifty tests 11,000


Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 8.92 -3.25
GMR INFRA. 21.10 -1.63
IDFC FIRST BANK 28.00 -1.58
FUTURE CONSUMER 7.97 -4.21
B H E L 30.75 -2.38
» More on Most Active Volume

ONGC shares slide 3% as massive fire breaks out at Surat plant

Shares of Oil and Natural Gas Corporation (ONGC) dipped 3 per cent to Rs 65.45 on the BSE on Thursday after a massive fire broke out at the state-owned exploration & production company‘s plant in Surat, Gujarat. No one has been injured in the accident so far, the company said. “The reason for the massive fire is being attributed to three consecutive blasts that took place at two terminals of the Hazira-based ONGC plant in Surat at around 3:30 am. The sound could be heard at a distance of over 10 km,” ANI reported. READ MORE

MARKET CHECK :: Indices stage mild recovery


Shilpa Medicare trades near day's high


Dr Reddy's turns positive


Here's how trendlines can help traders catch that perfect breakout

A trendline indicates a broad trend, especially when considered on a bigger scale and helps in developing a trading strategy. A trendline is drawn considering the “lower lows” in terms of support and “higher highs” as resistance points to identify the next influential levels. This could take a horizontal form as well. READ MORE   

Bajaj Finance cracks 3%


Top drag :: InterGlobe Aviation tanks over 4%


Vedanta off lows, up 1.5% now


QIP launch :: Zydus Wellness trades flat with positive bias

>> The company has approved raising of funds by way of issue of equity shares, through a QIP. The board approved and authorised the opening of the QIP on Wednesday. The floor price for the QIP is being fixed at Rs 1,775.85 per share.


Defying gravity :: Route Mobile jumps 5%


Sun Pharma dips 2%

>> As per media reports, the pharma major is voluntarily recalling one lot of RIOMET ER (metformin hydrochloride for extended-release oral suspension), 500 mg per 5 mL to the consumer level.


Ircon International gains in a weak market on new order

>> Ircon International on Wednesday said it has won contracts worth over Rs 400 crore from Ministry of Railways. The contracts pertain to works of nine road over bridges.


Tata Chemicals slips over half a per cent

>>  According to bulk deal data on NSE, Tata Sons purchased shares of Tata Chemicals for Rs 63.56 crore


Nifty trades near day's low, hovers around 10,950


Sensex extends decline, now down 600 pts


ONGC slips over 1.5% on first at Surat plant


Sectoral trends at Open


Sensex Heatmap at Open


First Trade :: Nifty breaks below 11,000-mark


First Trade :: Sensex tanks 500 pts at Open


Commodity Heatmap :: Silver extends decline


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


Markets at Pre-Open


Markets at Pre-Open


Stocks to watch today

Tata Chemicals, Tata Motors DVR: According to bulk deal data on NSE, Tata Sons purchased shares of Tata Chemicals for Rs 63.56 crore and Tata Motors DVR shares for Rs 22.51 crore.
 
Ircon International on Wednesday said it has won contracts worth over Rs 400 crore from Ministry of Railways. The contracts pertain to works of nine road over bridges. READ MORE

BROKERAGE VIEW :: Kotak Institutional Equities on Hindalco

CMP: Rs 165 | Fair value: Rs 285 | Reco: Buy

>> Scrap spreads hit a three-year low in 1QFY21 as lockdowns impacted availability, handling and scrap-processing plants in North America. Scrap spreads play a significant role in Novelis’ margins as scrap forms 60% of its raw material. With opening up of economies, scrap spreads have rebounded to Jan 2020 levels and pent-up supply implies further upside. Recovery in auto volumes and scrap spreads should elevate Novelis’ margins back to pre-Covid levels in 2HFY21.

>> HNDL, post the recent correction, is trading at 4.6X EV/EBITDA FY2022E, 23% discount to long-term average of 6X. Current price implies Novelis business available at 4.2X EV/EBITDA FY2022E (refer to Exhibit 10) assuming India business at spot spreads and 5X EV/EBITDA. We maintain BUY rating with Fair Value of Rs285/share. HNDL offers the most attractive risk-reward within our metals coverage.

BROKERAGE VIEW :: Sharekhan on Alicon Castalloy

Target price: 28-30% upside | Stance: positive

>> Domestic Automotive OEM volumes contributing 75% of revenues of Alicon Castalloy (Alicon) is witnessing an improvement on month on month basis. Opening up of the economy under Government unlock measures, increased preference for personal transportation is driving improvement in volumes.

>> 2W and PV reported growth in August 2020 and outlook for festive seasonis positive given channel filling by automotive companies on account of lower inventory.

>> We expect a strong recovery in automotive demand from FY22 driven by normalization of economic activities and pent up demand. Also, Alicon would commence execution of recent incremental order wins (both domestic and exports) from FY22. With robust topline growth and margin improvement on account of operating leverage and better product mix, we expect strong 43% earnings CAGR over FY20-23 period.

>> At CMP, stock is trading at 8.7x FY23 earnings which is lower than its long-term historical average. We rollover to FY23 earnings and expect 28-30% upside from current levels. We retain positive view on the stock.

BROKERAGE VIEW :: Sharekhan on Tech Mahindra

Target price: Rs 910 | Reco: Buy

>> We maintain our Buy rating on Tech Mahindra (TechM) with a revised PT of Rs 910, given it is trading at a sharp discount to its large peers.  Revenue growth in Q2 would be driven by strong recovery in BPO business, stability around network services revenue and growth in BFSI, healthcare, and technology verticals.

>> We expect margin improvement going ahead, led by higher offshoring, reduction in subcontractor expenses, improvement in margin profile of two large deals, and better profitability of acquired entities.
 
>> Tech M is well placed to benefit from the expansion of 5G value chain across networks and IT services, when there is pick up in investments by CSPs and higher 5G adoption by enterprise would happen.

Nifty Outlook :: ICICI Securities

Nifty Future
>> The Nifty is expected to trade between 11,000 and 11,300 amid high volatility. Sell Nifty 11300 Call (October 1 expiry) in the range of Rs 50-52 Target: Rs 36-26 Stop loss : Rs 66

Bank Nifty Future
>> The Bank Nifty managed to hold the Put base of 21,000 and reversed during the day. Axis Bank, Kotak Mahindra Bank and HDFC Bank witnessed short covering, which helped the Bank Nifty to end near 21,300 with a gain of 0.5%. In the options space, additions were seen in 21,500 Call and 21,000 Put, suggesting a trading range for the coming days. Sell Bank Nifty in the range of 21,150-21,250; Target: 21,000-20,800, Stop loss: 21,325

Stock Analysis
Long build-up/short covering: Tata Chemical, Tata Power, Muthoot Finance, Axis Bank, Ramco Cement and Escorts
Short build-up/profit booking: Bharti Airtel, Sun TV, Tata Steel, IndusInd Bank, Lupin, TVS Motor, JSW Steel and Cipla
 
 

BROKERAGE VIEW :: Prabhudas Lilladher on Coromandel International

Target Price: Rs 676 | Rating: REDUCE

>> We initiate coverage on Coromandel International (CRIN) with REDUCE rating with a target price of Rs676 based on 15x Sept’22E EPS of Rs45. CRIN has reaped benefits from 1) benign input costs (~17%/21% decline in price of Phosphoric Acid/Rock Phosphate) 2) supportive NBS regime (mere 3% cumulative decline in subsidy rates for FY20 & FY21) and 3) 8% volume CAGR in NPK between FY19-21E. However, we believe CRIN’s margins to peak out in FY21E and APAT to decline by 9% in FY22E driven by 1) increasing raw material prices of Phosphoric Acid, Rock Phosphate, Ammonia, Sulphur, etc (2) Expected lower NBS subsidy in FY22E and 3) limited volume growth due to capacity constraints (operating at +86%). While CRIN’s fundamentals remain rock solid and Crop Protection division (13% of revenue/ EBIT) is on a steady growth trajectory but headwinds emerging from the fertilizer segment (87% of revenue & EBIT) leave little room for a negative surprise given that the stock trades at near-to-peak multiples (18x Sep’22E EPS) as well as margins. Reduce

BROKERAGE VIEW :: Edelweiss Securities on Avenue Supermarts

Target Price: Rs 2,157 | Reco: Hold

>> Avenue SuperMarts (DMart) has aced the offline retail segment via its execution prowess, a rarity in food & grocery (F&G) retailing. Organized F&G has clocked stupendous growth and remains the biggest migration play in retail. In fact, Reliance Retail’s takeover of Future Retail has further consolidated the industry, entrenching these two strong players deeper. Our bottom-up analysis reveals DMart has potential to open ~400 stores more (FY20: 214; FY20–22E target: 60).

>> In online retail, DMart has been conservative hitherto and has a lot of catch-up to do with peers. In light of the hastened online migration and JioMart’s aggression, a compelling/aggressive strategy is imperative for DMart’s future growth. Maintain ‘HOLD’.

BROKERAGE VIEW :: HDFC Securities on Cement sector

>> We believe the north and central cement markets in India are in a sweet spot. Despite muted demand, cement prices in these regions have been buoyant, driven by troika of considerable regional consolidation, high clinker utilisation, and a limited influx of new entrants.


BROKERAGE VIEW :: MOFSL on Oil & Gas sector

Gujarat Gas (Buy at Rs 360)
>> With ~400 CNG outlets, GUJGA sells only 1.5mmscmd of CNG v/s 4.5mmscmd that IGL sells in NCR alone. GUJGA is expected to establish ~100 CNG stations over the next 2 years, increasing its penetration in the CNG segment. 

>> We believe the company should see a major volume boost at ~10% CAGR over the medium term on the highest volume base among peers.

>> Capex plans for FY21 stand at INR6–7b v/s INR5.8b in FY20 (GUJGA plans to fund capex through internal accruals only)

IGL (Neutral at Rs 470)
>> Management remains confident of achieving double-digit growth from next year. For FY22, we build-in volume growth of 14% over FY20 levels to 7.6mmscmd (v/s 6.4/4.6mmscmd in FY20/FY21). 

MGL (Buy at Rs 1,200)
>> MAHGL has gas pipeline connectivity in three of the four GAs classified by NGT under polluted areas (and is prepared to supply gas in the fourth GA via a virtual
pipeline). 

BROKERAGE VIEW :: MOFSL on Gold Financiers

>> We believe gold financiers are currently in a sweet spot. This is because customers whose cash flows were disrupted during the pandemic are looking to leverage their gold holdings. With more than 80% of the business coming from repeat customers and LTV declining below ~55%, there is significant headroom for growth. We do not see any major impact of the RBI’s allowance of higher LTV cap of 90% to banks on growth of gold financing NBFCs. 

>> Gold financiers, led by their strong performance, have outperformed their NBFC peers over the past 1-2 years. This is expected to continue in the near-to-medium term with low asset quality risk, high return ratios and tailwinds to growth. We expect MUTH/MGFL to generate 6.8%/5.4% RoA and 25%/24% RoE over the medium term. We have upgraded MUTH to ‘Buy’ with TP of INR1,300 (3.0x FY22E BVPS). Our target multiple is based on consistent performance on profitability over the past decade (lowest RoE of 15% and average RoE of 27% over the past decade). We are also initiating coverage on MGFL with a ‘Buy’ rating and TP of INR185 (1.8x FY22E BVPS). Our lower multiple for MGFL is on account of lower average RoA of 5.4% (v/s 6.8% for MUTH), and higher share of its business coming from non-gold lending at 33% (v/s 11% for MUTH in FY20), which is facing headwinds due to the pandemic.

Bulk deals on BSE as on Wednesday

Bulk deals on NSE as on Wednesday

FIIs/FPIs see net outflow of Rs 3,900 cr on Wednesday


Rupee check

Source: Bloomberg


Oil falls on fuel demand growth concerns as coronavirus lingers

>> Oil futures fell on Thursday on concerns the economic recovery in the United States, the world’s biggest oil consumer, is slowing as the coronavirus outbreak lingers and a resurgence in European cases led to new travel restrictions there.

>> US West Texas Intermediate (WTI) crude CLc1 futures fell 36 cents, or 0.9%, to $39.57 a barrel, while Brent crude LCOc1 futures fell 28 cents, or 0.7%, to $41.49 a barrel.

(Source: Reuters)

SGX Nifty update

>> At 7:57 am, the index was at 11,009 level, down 125 points or 1.12 per cent

Asian stocks open lower

Source: Reuters


Wall Street closes lower on fears of a slowing economy

Source: Reuters


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