MARKET WRAP: Sensex ends 986 pts higher; financials rally post RBI measures

Brokers trade at their computer terminals at a stock brokerage firm in Mumbai
The domestic stock market witnessed a sharp rally on Friday after the Reserve Bank of India (RBI) Governor Shaktikanta Das announced a slew of measures to support the economy in the wake of Coronavirus (Covid-19) outbreak. The central bank slashed reverse repo rate by 25 basis points to 3.75 per cent. It also announced special refinance facility of Rs 15,000 crore to SIDBI; Rs 25,000 crore to NABARD, and Rs 10,000 cr to HFCs to support liquidity. 

Reacting to it, financial stocks made solid gains, thus aiding the benchmark indices settle over 3 per cent higher. The S&P BSE Sensex surged 986 points or 3.22 per cent to end at 31,588.72, with Axis Bank (up nearly 13.5 per cent) being the top gainer. ICICI Bank (up 10 per cent), IndusInd Bank (up 9 per cent), and Maruti (up 7 per cent) were next on the list. 

On the NSE, the Nifty gained 274 points or 3.05 per cent to end at 9,266.75. Volatility index, India VIX, continued to cool-off. It slipped 7.71 per cent to 42.54 levels.  

Among sectoral indices on the NSE, Nifty Bank jumped a whopping 1,343 points or around 7 per cent to 20,743 levels, with all the 12 constituents ending in the green. Nifty Auto advanced around 5.5 per cent to 5,688.60 levels.

On the other hand, Nifty FMCG slipped 1 per cent to 29,201 while Nifty Pharma slipped nearly half a per cent to 9,159 levels. 

In the broader market, the S&P BSE MidCap index gained over 2 per cent to 11,824 and the S&P BSE SmallCap index ended at 10,801, up around 2.5 per cent. 

 
Global markets

World stock markets made a super-charged sprint towards an 11 per cent weekly gain on Friday - their second best of all time - after President Donald Trump laid out plans to gradually reopen the coronavirus-hit US economy following similar moves elsewhere.

Additional reports that patients with severe COVID-19 symptoms had responded positively to a drug made by US company Gilead Sciences had helped Tokyo and Seoul both surge 3 per cent as Asia took a widely-expected slump in Chinese GDP data in its stride.

European markets also traded in the green. 

In oil market, oil prices fell, giving up early gains as China’s worst economic contraction on record outweighed news of US President Donald Trump’s plans to get the American economy moving again. Brent was down by 10 cents, or 0.4 per cent, at $27.72 a barrel while US crude CLc1 for May delivery tumbled by $1.54, or 7.8 per cent, to $18.33.

(With inputs from Reuters)


4:10 PM IST "Markets were buoyant following RBI measures to boost liquidity and reclassify NPA norms for commercial banks. The positive global markets also added to the buoyancy. Rate-sensitive stocks managed to outperform. Focus will continue to be on how far these measures will help in containing the economic fallout of the virus and also on the earnings guidance of companies."

3:51 PM IST

3:45 PM IST

3:41 PM IST The S&P BSE Sensex rallied 986 points or 3.22 per cent to end at 31,589 while NSE's Nifty soared 274 points or 3 per cent to settle at 9,267.

3:27 PM IST

3:18 PM IST RBI announced further policy measures today that are well targeted to address concerns of financial companies like mid/small-sized NBFC, mortgage finance and micro finance companies. Along with host of other measures, the RBI would incentivise bank credit flow, launch targeted repo (for MFI, NBFC, HFCs) and given refinance facility of Rs 50,000 crore to NABARD, SIDBI and NHB. The measures would aid financials but are not significant enough to change the bias and result in material re-rating of NBFC and MFI stocks. In terms of Indian equities, our base case prognosis is the benchmark indices could continue to consolidate in a broad range of 8500-9200 on Nifty for the next few weeks. The situation is still volatile and uncertain in terms of the extent of disruption in economy and businesses. Thus, it is advisable to stick to quality companies with proven track record, healthy balance sheet and stable growth outlook.

3:07 PM IST European car sales tanked last month amid strict lockdown measures to contain the coronavirus that shut down dealerships for at least half of March and dried up consumer spending. The European carmaker's association, ACEA, said Friday that new car registrations ''recorded a dramatic drop'' of 55% to 567,308 units. READ MORE  

2:58 PM IST The @RBI #Governor restricted #dividend payouts by SCBs - However that wud b true for most cos as FY21 wud b a washout - Cash Conservation wud b the mantra. #dividend yield hunters cud get a nasty surprise - Look for capital appreciation opportunities - NOT just dividend yield— Ambareesh Baliga (@ambareeshbaliga) &7

2:58 PM IST Click here for RBI's notification

2:56 PM IST Nirmal Bang Institutional Equities pegs the lender’s profit at Rs 7,616.2 crore, a 29.4 per cent growth from Rs 5,885.1 crore reported in the March quarter of the previous fiscal (Q4FY19). Sequentially, the PAT is seen growing 3 per cent from Rs 7,416.5 crore.   Similarly, analysts at ICICI Securities expect the bank’s profit to rise 28.6 per cent YoY to Rs 7,568.2 crore on the back of robust traction in deposits, and healthy fee-based income. READ MORE

2:53 PM IST COMPANY PRICE(rs) 52 WK HIGH CHG(%) BIOCON 353.50 357.00 1.04 CIPLA 601.00 615.55 0.07 DIVI'S LAB. 2346.25 2449.05 -1.99 DR REDDY'S LABS 3923.40 3993.80 1.59 LAURUS LABS 405.20 470.65 1.49 » More on 52 Week High

2:48 PM IST

LIVE UPDATES

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

"Markets were buoyant following RBI measures to boost liquidity and reclassify NPA norms for commercial banks. The positive global markets also added to the buoyancy. Rate-sensitive stocks managed to outperform. Focus will continue to be on how far these measures will help in containing the economic fallout of the virus and also on the earnings guidance of companies."

Sectoral gainers and losers on the NSE


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


CLOSING BELL

The S&P BSE Sensex rallied 986 points or 3.22 per cent to end at 31,589 while NSE's Nifty soared 274 points or 3 per cent to settle at 9,267.

MARKET CHECK


EXPERT COMMENT | Gaurav Dua, Sr VP, Head Capital Market Strategy & Investments, Sharekhan

RBI announced further policy measures today that are well targeted to address concerns of financial companies like mid/small-sized NBFC, mortgage finance and micro finance companies. Along with host of other measures, the RBI would incentivise bank credit flow, launch targeted repo (for MFI, NBFC, HFCs) and given refinance facility of Rs 50,000 crore to NABARD, SIDBI and NHB. The measures would aid financials but are not significant enough to change the bias and result in material re-rating of NBFC and MFI stocks.

In terms of Indian equities, our base case prognosis is the benchmark indices could continue to consolidate in a broad range of 8500-9200 on Nifty for the next few weeks. The situation is still volatile and uncertain in terms of the extent of disruption in economy and businesses. Thus, it is advisable to stick to quality companies with proven track record, healthy balance sheet and stable growth outlook.

Europe car sales dip 55% in March on virus lockdown, worse than 2008 crisis

European car sales tanked last month amid strict lockdown measures to contain the coronavirus that shut down dealerships for at least half of March and dried up consumer spending. The European carmaker's association, ACEA, said Friday that new car registrations ''recorded a dramatic drop'' of 55% to 567,308 units. READ MORE  

MARKET VOICE :: Ambareesh Baliga on dividend payout rule

NEWS ALERT | RBI to conduct first auction under TLTRO for Rs 25,000 cr on April 23

RESULT TOMORROW | HDFC Bank Q4 preview: Net profit may jump 30% YoY; biz growth guidance eyed

Nirmal Bang Institutional Equities pegs the lender’s profit at Rs 7,616.2 crore, a 29.4 per cent growth from Rs 5,885.1 crore reported in the March quarter of the previous fiscal (Q4FY19). Sequentially, the PAT is seen growing 3 per cent from Rs 7,416.5 crore.
 
Similarly, analysts at ICICI Securities expect the bank’s profit to rise 28.6 per cent YoY to Rs 7,568.2 crore on the back of robust traction in deposits, and healthy fee-based income. READ MORE

Stocks that hit 52-week high on BSE today

COMPANY PRICE(rs) 52 WK HIGH CHG(%)
BIOCON 353.50 357.00 1.04
CIPLA 601.00 615.55 0.07
DIVI'S LAB. 2346.25 2449.05 -1.99
DR REDDY'S LABS 3923.40 3993.80 1.59
LAURUS LABS 405.20 470.65 1.49
» More on 52 Week High

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


ICICI Bank jumps 6%, top gainer on Sensex


Nifty Private Bank index top sectoral gainer, up over 4%


MARKET VOICE :: Vijay Kedia on liquidity crisis

SBI, ICICI Bank: Are financial sector stocks a good bet post RBI measures?

NIFTY BANK: From a very short-term viewpoint, the index has formed a symmetrical triangle formation, which has a shortfall in volumes, as per the daily chart. The price is showing breakout, but is unable to hold the upside momentum. If the price moves up, the rally needs to conquer the selling pressure existing in the range of 21,000 to 22,000 levels. READ MORE

BUZZING STOCK | Equitas Holdings jumps 16%


Reserve Bank tries to reduce NPA burden for lenders in coronavirus crisis

The Reserve Bank of India (RBI) on Friday announced additional set of regulatory measures to reduce the burden of debt servicing due to disruptions caused by the coronavirus (Covid-19) pandemic, including an asset classification standstill for accounts that avail a moratorium between March 1 and May 31.
 
Such accounts will, therefore, be classified as non-performing assets from 180 days of overdue, rather than the current norm of 90 days, according to a set of measures announced by RBI Governor Shaktikanta Das on Friday. READ MORE

Coronavirus impact: Bet on top-tier names in banking sector, avoid NBFCs

The banking and financial sector is among the worst hit in the current downturn. While the Nifty50 has declined 27.7 per cent, the Nifty Bank index has nosedived 40.1 per cent over the past three months.
 
In a report issued on April 15, Macquarie Research cut its earnings per share estimates for private banks by 35-40 per cent and reduced its target prices for private banks by 45 per cent and for public-sector banks by 47 per cent. READ MORE

Rupee can depreciate another 4% despite RBI's liquidity support measures

We are still not out of the woods with respect to the pandemic globally and emerging market currencies like Rupee may not find buyers at least in the short term. Another 3-4 per cent depreciation for the rupee may not be ruled out at least in the short-to-medium term, post which, some buyers will find merit to earn carry by selling dollar against the rupee that is around 4 per cent for a year. READ MORE
Abhishek Goenka, IFA Global

EXPERT COMMENT | Motilal Oswal, MD and CEO of Motilal Oswal Financial Services

“Given the unprecedented times we are in, it is heartening that RBI is addressing all these challenges at a war footing. We believe, the key measures announced by RBI will help inject the much needed liquidity in the system, facilitate and incentivise credit flow and provide flexibility on regulatory forbearance. Markets are in buying zone. Keep accumulating and increasing equity allocations gradually.”

NEWS ALERT :: Sebi relaxes rules w.r.t intimation about board meeting

MARKET UPDATE:: India VIX cools off 4%


NEWS ALERT | Govt to soon unveil fund of funds for MSME of Rs 10,000 cr: Nitin Gadkari

-- MSME ministry to seek cabinet approval on the fund

-- Finance Ministry has approved the creation of fund

-- Fund will be used to assist MSMEs with good credit rating

(as reported by CNBC TV18)

Select real estate shares surge after RBI announces liquidity measures

Among individual stocks, Oberoi Realty, Kolte-Patil Developers, Ajmera Realty & Infra India and Puravankara rose 13 per cent to 20 per cent on the BSE intra-day. The stocks later came off the high point of the day, but were still outperforming the market.

Oberoi Realty has rallied 20 per cent to Rs 410 on the BSE in intra-day trade. The stock of the Mumbai-based real estate developer has soared 32 per cent in the past two trading days. It touched a multi-year low of Rs 291 on the BSE in intra-day trade on Monday, April 13, 2020. READ MORE


PM Narendra Modi on RBI measures

EXPERT COMMENT | Suvodeep Rakshit, Vice President & Sr. Economist, Kotak Institutional Equities

The RBI’s announcement has correctly focused on the financial sector, specifically the NBFCs. We expect the TLTRO2.0 along with allocations to NHB, SIDBI, NABARD will provide support to the NBFCs/HFCs/MFIs though the extent will depend on the risk appetite of the banks. The lower reverse repo rate should also encourage banks to lend out. However, given the current macro conditions, we need to watch how the banks utilize the various windows and options given by the RBI to assess whether credit growth increases and the extent of support that the NBFC sector gets

Europe opens higher

(Source: Reuters)

EXPERT COMMENT | Dhiraj Relli, MD & CEO, HDFC Securities

The RBI 's efforts are three pronged:
  • Push Banks to do more lending (by cutting reverse repo rate), providing more liquidity to them (higher TLTRO-2 funds, special refinance facility of Rs.15000 cr to SIDBI and prescribing lower liquidity coverage ratio) and prescribing some reliefs and some fresh moves to create provisions against slippages.
  • Provide more credit to NBFCs (especially smaller ones)  by prescribing that atleast 50% of funds under TLTRO-2 must be on lend to such entities. The special refinance facilities of Rs.10000 cr to NHB will help housing finance companies avail more liquidity. Also NBFCs can grant relaxed NPA classification to their borrowers and NBFCs can extend realty loans by 1 year if projects delayed on reasons beyond control.
  • Alleviate the woes faced by State Govts by increasing by 60% the States Ways & Means Advances (WMA) limit to provide greater comfort to states.
NBFCs are clear beneficiaries of these measures. For investors in Banks the provision of higher liquidity and relaxation in provisioning norms are welcome, but the bar on dividend distribution and new provisioning norms are negatives for the time being. While the RBI is doing its part in providing reliefs in the current times, the street could keep expecting more and there could also be some concern about the time it would take for these measures to have an impact at the ground level.

EXPERT COMMENT | Umesh Revankar, MD and CEO, Shriram Transport Finance

“RBI`s announcement to infuse liquidity into the system is extremely welcoming and a big relief to NBFC borrowers. The decision to cut the reverse repo rate by 25bps will encourage banks to look for lending opportunities. We would appreciate if banks reciprocate positively to NBFCs  request on moratorium to manage cash flow smoothly. All in all we think it is a positive step taken by the RBI  to overcome the challenges faced by the economy.”

RBI actions will act as lifelines for NBFCs; await steps on bond buying

The Reserve Bank of India governor Shaktikanta Das’ decision to cut the reverse repo rate by 25 basis points (0.25 per cent) to 3.75 per cent from 4 per cent, while maintaining the repo rate at 4.4 per cent, is a welcome step. In his bid to fight the coronavirus (Covid-19) induced slowdown, the governor has made it clear that he doesn’t want banks to park money with the RBI. READ MORE

RBI measures are good; markets will recover only when Covid-19 cases dip

The market, however, won't recover by these economic measures as these are not the remedies it is looking for. A sustainable rally in the markets will only come if there is a drug that can fight the Covid-19 disease or if the number of confirmed cases flattens and start falling. Until that happens, the market will keep meandering in a range. READ MORE  


EXPERT COMMENT | Jimeet Modi, Founder & CEO, SAMCO Securities

RBI’s big bang stimulus was not a bazooka afterall, given the expectations, rather it was a conservative approach and indicated a piecemeal manner of infusing liquidity. The measures, though significant, were not substantial enough as a mere Rs. 50,000 crore in the form of TLTRO is rather conservative.

However, for the moment, major concerns have been addressed as real estate and NBFC sectors have received massive relief. NBFCs (small and large) have liquidity coming in from TLTRO 2.0, financial institutions like SIDBI, NABARD and NHB have received liquidity directly from the RBI and there is relief on the NPA recognition and stressed asset reclassification for Banks.

Add to it, a 25 bps reduction in the fixed reverse repo rate will enable banks to lend further and improve liquidity in the system. This has definitely boosted investor confidence as the quarterly numbers to be published by corporates will no longer be a horror story. Additionally, RBI’s openness of providing further relief if the situation worsens further is a big relief in these distressed times.  
 
 

NEWS ALERT :: S&P cut's India's FY21 GDP growth forecast to 1.8% from 3.5%

>> Says, India slowdown is cyclical; structural growth story is still intact.

>> India's growth should return to 7% levels in the medium-term. S&P sees India FY22 #GDP growth at 7.5%.

(As reported by CNBC TV18)

EXPERT COMMENT | Sundar Sanmukhani, Head of Fundamental Research at Choice Broking

RBI’s latest announcements to infuse liquidity and expand bank credit are expected to provide big relief to the Non-Banking Financial Sector (NFBCs) as 50% of the proposed TLTRO worth Rs 50,000 crore will be invested in small and mid-sized NBFCs and MFIs. The Central Bank has also relaxed NPA recognition norms for NBFCs. Banks would also get relaxation on Special mentioned a/c, which are unpaid with 60-90 days as on March, but have to make 10% provisioning against such standstill a/c. The 25 bps cut in reverse repo rate to 3.75% would further provide liquidity into the system as it would make banks reluctant to invest money at lower rate with RBI.

EXPERT COMMENT | Jaspal Bindra - Executive Chairman, Centrum Group

The RBI has shown pragmatism while announcing the second round of measures, aimed at maintaining liquidity and incentivising credit flows. Banks are required to invest a significant portion of the TLTRO with NBFCs & MFIs, is positive as they have been hit significantly. Relief packages of Rs 50,000 crore allotted to NABARD, SIDBI and NHB combined with the reduction in reverse REPO rate will incentivise banks and NBFCs to step up their lending activities. Additionally, the 90-day NPA norm won’t be applicable to loans where the moratorium is granted. This along with 1-year extension on loans given to the real estate sector will help preserve asset quality.

RBI's additional measures provide major relief to developers: Anuj Puri, Anarock

In a major move to boost liquidity in the market, the RBI today announced several additional measures to accelerate the economy and facilitate bank credit flows in Lockdown 2.0. Among the various measures announced, commendably its allotment of Rs10,000 crore to National Housing Bank is a big move for the real estate sector reeling under the liquidity crisis. It will help provide capital to HFCs and eventually provide major relief to developers battling liquidity issues in COVID-19 times.
 
Further, RBI has reduced the reverse repo rates by 25 bps – it now stands at 3.75%. This is another big step as the rate cut will definitely send out positive signals in the current times, and will enable banks to lend even more.
 
Also, in another major relief to developers, the RBI has further extended the date of commencement of commercial operations (DCCO) of project loans for commercial real estate projects which are delayed for reasons beyond the control of promoters. This is indeed a big move and will bring much-needed relief to cash-starved developers. It will help in easing out time for maintaining and managing cash flows for these developers.

EXPERT COMMENT | Joseph Thomas, Head of Research - Emkay Wealth Management

"RBI has reaffirmed its commitment to support the economy and the markets, and have announced an additional Rs 50,000 crore TLTRO. This would be targeted at supporting corporates and smaller private entities. But the issue is that there no lending by banks nor any investment into sectors that require more support. Banks are parking with RBI on a daily basis an amt close to Rs. 6 Lakh crores. So, whatever money they have with them and whatever they are getting from RBI, the banks are giving back to RBI instead of investing it or lending it.
 
The reverse repo rate cut is to discourage thus reverse flow to RBI. But is doubtful whether this flow can be stemmed easily. Banks are not lending or investing because they fear that under the current conditions they may be adversely impacted if they employ the money for investments or lending. Even three months back the approach of the banks was one of extreme caution.
 
RBI has now specified where the money should go to encourage sectoral lending. Once a clear channelization of credit to segments or sectors that require the support is achieved, the economy will get the much-needed stimulus."

EXPERT COMMENT | Deepthi Mary Mathews at Geojit Financial Services

"In a span of 20 days, RBI announced the second round of liquidity boosting measures to address the economic crisis due to COVID-19, with special focus on NBFCs and MFIs. TLTRO and reduction of reverse repo rate to 3.75 per cent is expected to improve liquidity in the NBFC sector. Similarly, the loans given by the NBFCs to real estate to get similar benefits as given by commercial banks is a support to both the NBFC and real estate sector."

NEWS ALERT | Steps announced by RBI very important, will help bring stability: Chief Economic Adviser

-- We will have to keep watching and recalibrating assessment

-- There is significant uncertainity, wouldn't latch on to base line GDP estimate

-- Spanish flu of 1918 is the best proxy to use to gauge economic impact

(as told to CNBC TV18)

EXPERT COMMENT | Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares

“RBI's move today addressed some of the liquidity problems particularly for NBFCs, MFIs and state governments. MSME sector should also get some liquidity boost. The picture for banks is mixed. Temporary elongation of NPA recognition period and lowering of liquidity coverage ratios are positive. Cut in reverse-repo rate and continued need for provisioning on overdue credit. Increased TLTRO and WMA limit for state governments should keep bond yield range bound. This should benefit PSU banks with sizable excess reserve. Reverse-repo rate cut should marginally nudge banks to lend. If credit growth does not accelerate, would expect the cut in reverse-repo to continue.”

MARKET CHECK: Sensex up 400 pts


Titan declines 5% off day's high


RBI has made life a bit easier for NBFCs, MFIs amid Covid-19 pandemic

The Reserve Bank of India (RBI) has proactively made two sets of relevant announcements as a follow-up of what were made in the credit policy recently. The first is to focus on provision of liquidity and the second to sharpen the solvency issue related to companies. The TLTRO is now being increased by Rs 50,000 crore with the caveat that 50 per cent has to go to the small and medium size non-bank finance companies (NBFCs), which in a way, is sectoral targeting starting with this segment. READ MORE

Nifty Pharma index snaps winning streak, falls 1% in an otherwise strong market


Financials in focus post RBI meet; Axis Bank, RBI Bank, Bajaj Finserv rally

Shares of financials, including banks, non-banking finance companies (NBFCs), housing loans companies and microfinance institutions, were in focus on Friday after the Reserve Bank of India Governor Shaktikanta Das announced various measures, including a reduction in reverse repo rate. The apex bank also announced special refinance package for National Bank for Agriculture and Rural Development (Nabard), Small industrial Development Bank of India (Sidbi) and National Housing Bank (NHB). Reverse repo rate was also cut by 25 basis points (bps) to 3.75 per cent in order to tackle the coronavirus pandemic. READ MORE

NEWS ALERT | S&P cuts Bajaj Finance's rating outlook to 'negative' from 'stable': CNBC TV18

-- S&P cuts Shriram Transport Finance's rating to BB from BB+, outlook negative

-- S&P cuts Axis Bank, Icici Bank's rating outlook to 'negative' from 'stable'

FPIs, MFs book profit in IRCTC; cut stake during March 2020 quarter

Institutional investors, led by foreign portfolio investors (FPIs) and mutual funds (MFs), have booked profit in shares of state-owned travel support services company Indian Railway Catering and Tourism Corporation (IRCTC) by trimming their stake by over three percentage points in the March quarter.
According to latest shareholding pattern data, total institutional holdings in IRCTC declined to 3.86 per cent as on March 31, 2020. READ MORE

Covid-19: RBI slashes reverse repo rate by 25 bps, no change in repo rate

Addressing the media for the second time since the Narendra Modi government imposed a national lockdown on March 25, RBI Governor Shaktikanta Das announced a reduction in reverse repo rate by 25 basis points from 4 per cent earlier to 3.75 per cent now. The reduction in reverse repo rate is one of a slew of announcements made by the RBI governor today. This was his first address since the lockdown was extended till May 3 by the Prime Minister. READ MORE

MARKET UPDATE:: Sensex climbs off day's high


SECTOR WATCH:: Housing Finance cos gain as RBI announces refinance facilities for NABARD, NHB

COMPANY NAME LATEST HIGH CHG(%)
INDIABULLS HOUS. 114.80 122.45 7.79
RELIANCE HOME 0.76 0.77 2.70
LIC HOUSING FIN. 271.65 280.50 5.58
H D F C 1678.05 1737.80 3.10
DEWAN HSG. FIN. 12.53 12.53 4.94
Click here for the full list

NEWS ALERT | Money raised via TLTRO-2 must be invested in investment grade bonds of NBFCs: RBI GUV

>> 50% of TLTRO money to midsized and small NBFCs, MFIs

RBI says

Injected liquidity to the tune of 3.2% of GDP between February 6, - March 27, 2020

NEWS ALERT | RBI says

Mission is to do whatever it takes from curve to steepening

NEWS ALERT | Economic and financial situation has deteriorated further since last rate cut: RBI Guv

Alert: RBI cut repo rate on March 27, 2020.

NEWS ALERT :: Thinking about extending moratorium to NBFCs: IBC chief Sunil Mehta

(Via CNBC TV18)

RUPEE OPENING

-- Rupee opens higher at at 76.56/$ vs Thursday's close of 76.86 against the US dollar

Ministry of Home Affairs issues an update on revised guiidelines on lockdown

Gold outlook :: Hareesh V, Head-Commodity Research at Geojit Financial Services

>> Fears of a steep global recession and hopes of more quantitative easing programs from central banks continue to support gold’s positive outlook. Meanwhile, a steady US dollar and moderate physical market activities are likely to limit major gains in the commodity.
 
>> Technical Outlook (London spot): Ongoing positive momentum may continue as long as prices stay above $1,690. Immediate and minor resistance is seen at $1,738, a direct break is required to take prices higher to $1,758 followed by $1,800 levels. Immediate downside turnaround point is seen at $1,672.
 

TCS extends gains post Q4 results


Nifty Bank index gains 800 points ahead of RBI Governor's address


STOCK INSIGHTS :: MOFSL on Motherson Sumi

NEWS ALERT :: L&T Constructions bags order worth Rs 1,000-2,500 cr: BSE filing

>> The Factories arm of BEtF business has secured a design and build order from a leading cement manufacturer to execute and commission a 9,500 TPD cement plant at Ametha, Katni, Madhya Pradesh.

>> The Residential arm has won an order from a reputed developer in Bengaluru to construct a residential complex with a total built up area of 5 million Sq.ft


STOCK ALERT :: Emami promoters create pledge on 1 cr shares on April 15


Tata Motors trades higher in a strong market despite rating downgrade

>> Fitch downgrades Tata Motors to 'B', cites cash flow issues; outlook 'negative'



Expectations from the RBI press meet today

The RBI governor is to address the media at 10am today. Announcements of further measures to help the economy tide over the crisis is likely. The measures are primarily likely to be targeted towards the bond market and ensuring that liquidity issues for NBFCs and SMEs do not turn into solvency issues. While a rate cut is unlikely, Further TLTROs, restriction on banks parking funds in reverse repo, easing of MTM norms for banks on their Gsec portfolio, Gsec and SDL OMOs, including Commercial Papers in repo with haircuts could be announced

-- Abhishek Goenka, Founder &CEO, IFA Global

Sudarshan Chemical Ind zooms 5%

>> Company received permissions to restart production at manufacturing facility in Mahad.


TCS trades higher post Q4 nos


NBFCS gain as govt allows operation with min staff, ahead of RBI presser

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%) VALUE
(rs CR)
VOLUME
CENTRUM CAPITAL 13.90 13.90 13.90 0.60 4.51 0.14 100000
L&T FIN.HOLDINGS 66.90 67.25 66.05 5.65 9.22 0.32 47426
DEWAN HSG. FIN. 12.53 12.53 12.40 0.59 4.94 0.06 46025
EQUITAS HOLDINGS 45.00 46.00 44.70 3.15 7.53 0.10 23047

NSE Snapshot | Key sectoral indices trade in the green


Sensex Heatmap at Open | Banks, NBFCs top gainers


FIRST TRADE :: Nifty50 opens over 9,300-mark


FIRST TRADE :: Sensex surges over 1,000 pts ahead of RBI presser


Foxed by market volatility, MFs hold cash to invest when the market dips

According to industry participants, certain fund managers are betting on markets to correct further, and deploying funds at lower price points. At an aggregate level, of the Rs 1.15-trillion asset base of large-cap funds as on March 31, 2020, about 5.7 per cent was held in cash and cash equivalents. Cash levels rose 160 basis points (bps), from 4.1 per cent in February. READ MORE

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


Market at Pre-Open


Market at Pre-Open


COMMENT :: Kishore Narne, Associate Director & Head Commodities and Currencies, Motilal Oswal

Gold has seen phenomenal returns in the last calendar year on the back of slowing growth and falling interest rates, but with the Covid-19 coming in to picture followed by shutting down of economies lead to collapse of broader economy. The coming years will see enormous push of liquidity from central banks through printing of money and massive expansion of fiscal deficits leading to depreciating paper currencies provide perfect backdrop for continuation of gold rally.

We continue to see gold repeating returns of 30-35% for the next two years as well. Indian gold prices reached an all-time high, but a large part of this has been driven by depreciating rupee and increased import duty, but international gold prices still are much lower than all-time high and has much room to grow from here

CORONAVIRUS UPDATE :: Total cases in India rise to 13,387: Govt


BROKERAGE RADAR :: PHILLIP CAPITAL on TCS

>> Recovery in IT sector to be led by large-caps

>> TCS may emerge stronger out of the crisis

>> FY21 remains a washout year for the entire sector

>> Maintains 'Buy', TP: Rs 1,875

BROKERAGE RADAR :: AXIS CAPITAL on TCS

>> Reduces FY21/22 revenue estimates (in dollar terms) by 4.5%

>> Cuts EPS estimates by 5.2%/4.3% in FY231/22

>> See 0.8% revenue CAGR in dollar terms over FY19-22

>> Maintains 'Add', TP: Rs 1,820 

BROKERAGE RADAR :: MOFSL on TCS

>> The COVID-19 pandemic is expected to pose continued near-term challenges on demand, supply, pricing and working capital fronts.

>> Nevertheless, we expect the company to be relatively better positioned (v/s the sector) to navigate these challenges.

>> The stock is currently trading at 21x FY21E EPS on our revised estimates.

>> While we continue to be positive on the company, we remain Neutral given the current volatile environment, weak outlook and rich multiples.

Outlook & trading strategies for Gold, Natural Gas by Tradebulls Securities

Spot Gold has retraced from $1,750 after trading at 7.5 years high from COMEX and from an all-time high in the domestic market which is a normal pullback in a strong uptrend rally. Economic shutdowns are leading to dollar weakness and gold price strength. Above $1,750, there is no technical resistance till $1,800. If we were to break down below the $1,670 level, then I would be a bit concerned with the overall uptrend. READ MORE

NEWS ALERT | China's Q1 GDP falls 6.8% YoY: Reuters

>> Q1 GDP slips 9.8% QoQ

>> China’s economy shrank for the first time in more than 40 years

Bulk deals on NSE as on Thursday

Bulk deals on BSE as on Thursday

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


Rupee check

Source: Bloomberg


Oil check

Oil prices steadied a touch after hovering at an 18-year low overnight on fears that energy demand will collapse on the back of a global recession. At 8:33 AM, Brent crude was up 1.65 per cent at $28.28 per barrell.
 

SGX Nifty indicates a gap-up open for Indian markets

-- At 8:30 am, the index was at 9,294 level, up 234 points, or 2.6 per cent.

Asian indices gain following Wall Street's lead

(Source: Reuters)

US Markets check

(Source: Reuters)
Good morning!

Welcome to the Business Standard live blog.

Catch all the live market updates here.

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