Financials, RIL lift indices; Sensex jumps 700 pts, Nifty ends at 10,092

All the Nifty sectoral indices, barring Nifty Pharma, ended in the green, led by Nifty Bank index, up 3.74 per cent.
Indian markets rallied in the final hour of Thursday's session, boosted by financials, after spending majority of the day in a range-bound manner. The benchmark indices ended over 2 per cent higher after the Supreme Court allowed the Department of Telecommunications (DoT) time till third week of July to consider the telecom companies' proposal. The apex court also directed telcos to submit financial documents of the last 10 years. CLICK HERE TO READ FULL REPORT

The S&P BSE Sensex jumped 700 points or over 2 per cent to settle at 34,208.05 levels while the Nifty50 index reclaimed the psychological level of 10,000 and ended at 10,092, up 210.50 points or over 2 per cent. Volatility index, India VIX, dropped over 5 per cent to 31.58 levels. 

Among individual stocks, Bajaj Finance, Axis Bank, and Power Grid were the top Sensex gainers. Muthoot Finance surged over 16 per cent to Rs 1,162.55 after declaring its March quarter results. Reliance Industries (RIL) hit a fresh high of Rs 1,665 during the day. The stock ended at Rs 1,656, up 2.53 per cent. 

All the sectoral indices on the NSE, barring Nifty Pharma, ended in the green, led by Nifty Bank index, up 3.74 per cent.

In comparison, the broader market underperformed the benchmarks. The S&P BSE MidCap index gained 1 per cent and and the SmallCap index rallied around 1.5 per cent.

Global markets

Global stocks drifted on Thursday as spiking coronavirus cases in some US states and China crushed hopes of a quick global economic comeback from the pandemic. S&P 500 mini futures clawed back losses during Asian trade to end 0.2 per cent lower. China's blue-chip CSI300 shares were a bright spot, adding 0.7 per cent. 

In Europe, too, shares retreated. The pan-European STOXX 600 index fell 0.3 per cent after two straight days of gains, driven by optimism over global stimulus helping economies claw back from the coronavirus-led slide.

In commodities, oil prices ticked up after US oil product stocks shrank. Brent crude futures were up 37 cents at $41.08 a barrel at the time of writing of this report. US West Texas Intermediate (WTI) crude futures rose 25 cents to $38.21 a barrel.

Both benchmarks were down about 2 per cent earlier in the session.

(With inputs from Reuters)


4:27 PM IST Reliance Industries Limited (“Reliance Industries”) and Jio Platforms Limited (“Jio Platforms”), India's leading digital services platform, today announced an investment of Rs 11,367 crore by The Public Investment Fund (“PIF”).  This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.  PIF's investment will translate into a 2.32 per cent equity stake in Jio Platforms on a fully diluted basis.  With this investment, Jio Platforms has raised Rs 115,693.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, and L Catterton, since April 2020.

4:03 PM IST "In spite of negative global cues, Indian indices ended the day positive with steady gains. With the Supreme court AGR ruling providing a respite to the exposed banks, the relief was visible in the banking stocks especially those which had exposure to the telecom companies. The Banking index contributed the most to the positivity and almost all components of the index ended the day on a positive note. The current geopolitical situation and associated comments also gave some support to sectoral movements. Caution is advised."

3:45 PM IST

3:44 PM IST

3:36 PM IST The S&P BSE Sensex gained 700 points or over 2 per cent to end at 34,208.05 while NSE's Nifty ended at 10,092, up 210 points or 2.13 per cent. 

3:26 PM IST

3:11 PM IST >>  The Sub-Committee also discussed about the proposal of setting up of an Inter Regulatory Technical Group on Fintech (IRTG-Fintech) and the National Strategy on Financial Education (NSFE) 2020-2025 >> It also deliberated upon the status and developments under the Insolvency and Bankruptcy Code (IBC), 2016 and the working of credit rating agencies. (Source: RBI statement)

3:07 PM IST

2:56 PM IST

2:50 PM IST >> An agreement with the Future Group, which already has a partnership with Amazon can be announced as early as next month. >> RIL hits record high of Rs 1,653.  

2:43 PM IST Future developments in the telecom sector remain uncertain after the Supreme Court (SC) hearing on Thursday, where the government asked for allowing a staggered payment of adjusted gross revenue (AGR) outstanding and waived interest charges on telecom PSUs. SC has also asked telecom companies to file financial statements and fixed the next hearing for the AGR-related dues case in July, while the DoT will also consider proposals made by the telecom companies. READ MORE

LIVE UPDATES

NEWS ALERT:: Saudi Arabia's PIF to invest in Jio Platforms

Reliance Industries Limited (“Reliance Industries”) and Jio Platforms Limited (“Jio Platforms”), India's leading digital services platform, today announced an investment of Rs 11,367 crore by The Public Investment Fund (“PIF”).  This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.  PIF's investment will translate into a 2.32 per cent equity stake in Jio Platforms on a fully diluted basis.  With this investment, Jio Platforms has raised Rs 115,693.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, and L Catterton, since April 2020.

MARKET COMMENT:: Vinod Nair, Head of Research, Geojit Financial Services

"In spite of negative global cues, Indian indices ended the day positive with steady gains. With the Supreme court AGR ruling providing a respite to the exposed banks, the relief was visible in the banking stocks especially those which had exposure to the telecom companies. The Banking index contributed the most to the positivity and almost all components of the index ended the day on a positive note. The current geopolitical situation and associated comments also gave some support to sectoral movements. Caution is advised."

SECTOR WATCH:: Nifty Bank gains over 3.7%


MARKET AT CLOSE:: Gainers and losers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex gained 700 points or over 2 per cent to end at 34,208.05 while NSE's Nifty ended at 10,092, up 210 points or 2.13 per cent. 

MARKET CHECK


NEWS ALERT :: RBI Guv chairs meeting of sub-committee of Financial Stability and Development Council

>>  The Sub-Committee also discussed about the proposal of setting up of an Inter Regulatory Technical Group on Fintech (IRTG-Fintech) and the National Strategy on Financial Education (NSFE) 2020-2025

>> It also deliberated upon the status and developments under the Insolvency and Bankruptcy Code (IBC), 2016 and the working of credit rating agencies.

(Source: RBI statement)

Stocks that are supporting Sensex rally


SECTOR WATCH:: Nifty Bank index recovers 900 points from day's low


NEWS ALERT :: Reliance Industries close to acquiring stake in some units of Future Group, reports Bloomberg

>> An agreement with the Future Group, which already has a partnership with Amazon can be announced as early as next month.

>> RIL hits record high of Rs 1,653.
 

5G rollout, bad optics: SC order on AGR dues to have a far reaching impact

Future developments in the telecom sector remain uncertain after the Supreme Court (SC) hearing on Thursday, where the government asked for allowing a staggered payment of adjusted gross revenue (AGR) outstanding and waived interest charges on telecom PSUs. SC has also asked telecom companies to file financial statements and fixed the next hearing for the AGR-related dues case in July, while the DoT will also consider proposals made by the telecom companies. READ MORE

Heatmap: S&P BSE Sensex gainers and losers at this hour


MARKET UPDATE:: RIL hits new high of Rs 1,653, up 2%

>> The stock gains over 18% from recent low of Rs 1,394, touched on May 20, 2020

STOCK ALERT:: 4 stocks from S&P BSE 500 index locked in 20% upper circuit on the BSE

-- The list includes Shankara Building Products, Somany Ceramics, Nava Bharat Ventures, and ITD Cementation India

Recovery from intra-day lows in today's session

COMPANY DAY'S LOW(RS) DAY'S HIGH(RS) LATEST(RS) RISE(%)
SHANKARA BUILD. 315.30 379.60 379.60 20.39
NAVA BHARAT VENT 38.50 45.95 45.95 19.35
SOMANY CERAMICS 115.50 136.90 136.90 18.53
ITD CEM 42.95 50.60 50.60 17.81
Click here for the full list

MARKET CHECK :: Sensex rallies 600 pts


PSU stocks in focus; ITI surges 20%, BHEL gains 15%, Coal India up 8%

Telecom equipment providers ITI hit 20 per cent upper circuit at Rs 108 on the BSE. The stock has rallied 33 per cent in the past two trading days after the Department of Telecommunications (DoT) reportedly asked state-owned Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam (MTNL) to exclude Chinese gearmakers from supplying 4G telecom equipment. Private telecom operators have been asked to consider staying away from such Chinese firms. READ MORE

Rupee closing

Rupee ends flat at 76.14/$ vs Wednesday's close of 76.15 against the US dollar

NEWS ALERT :: FM to address media at 4 pm today

>> Conference on launch of Garib Kalyan Rojgar Abhiyaan by Hon' PM on Saturday, 20th June. 

MARKET UPDATE:: Top 5 losers on the BSE at this hour


NMDC hopes to keep volumes intact in FY21; remains wary about realisations

“We hope to achieve what we did in FY20 and that itself will be great positive for the company. The April month was a complete wash out for us as nearly 50 per cent of production declined. But in May, our production picked up and we have done 4.1million tonne production and sales,” Amitava Mukherjee, director finance at NMDC, told Business Standard.
 
State-owned NMDC was unable to meet its production target last year. The company produced 31.49 mt and sold 31.51 mt of iron ore during 2019-20, as against production of 32.36 million tonne and sales of 32.36 mt during the previous year. READ MORE

India will reduce imports, turn Covid-19 crisis into opportunity: PM Modi

"India will turn this Covid-19 crisis into an opportunity. It has taught India to be self-reliant. India will reduce its dependence on imports. To make India self-reliant in the energy sector, a major step is being taken today," Prime Minister Modi said addressing the event to launch the auction of 41 coal mines for commercial mining on Thursday. READ MORE

MARKET CHECK :: Nifty reclaims 10K


MARKET CHECK :: Nifty hits intra-day high of 10,000


MARKET CHECK :: Sharp rally in indices; Sensex surges 350 pts


Bharti Airtel, Vodafone Idea: How to trade AGR case-related stocks?

Telecom stocks were back in focus on Thursday after the Supreme Court asked telecom companies to file their financial statements before it and fixed adjusted gross revenue (AGR)-related dues case against them for hearing in July.
 
On their part, Bharti Airtel has already paid Rs 18000 crore, 70 per cent of the Rs 25,600 crore received by Department of Telecom (DOT) from all companies. On the other hand, Vodafone Idea (VIL), which has liabilities worth Rs 53,000 crore pleaded saying that it does not have enough money to pay and should be given some time. READ MORE

Nifty Metal Index adds over 2%, top gainer on NSE


Voda Idea, Bharti Airtel recover from day's low as SC defers AGR hearing

Bharti Airtel was trading 0.27 per cent higher at Rs 563.50, after hitting a high of Rs 572.85 during the SC hearing. However, Vodafone Idea was up 5 per cent at Rs 10.31, recovering nearly 14 per cent from the intraday's low of Rs 9.07 on the BSE. In comparison, the S&P BSE Sensex was up 0.69 per cent at 33,738 points. According to analysts, anything less than 15 years would significantly curtail the ability of Vodafone Idea to meet AGR obligations. READ MORE

FPI investments from China at Rs 3,257 cr, still behind other nations

Foreign portfolio investments from China in Indian equities stood at Rs 3,257 crore as on March 31. This is four times the amount of Rs 774 crore invested at the end of the previous quarter, data from PRIME Database shows.
 
This includes investments where shareholding is greater than 1 per cent of the total share capital. The largest share of investment was in HDFC by the People’s Bank of China, to the tune of Rs 2,857 crore. READ MORE

Earnings Alert | Caplin Point Q4

>> Consolidated net profit at Rs 48.9 crore

>> Cons revenue at Rs 215 crore

>> Other income at Rs 19.6 crore


Fitch revises India's rating: A third view which is different yet again?

Credit rating agencies across the world have tended to converge in views, though they may not actually give the same rating. In India’s case, Fitch had retained the rating at BBB- but changed the outlook to negative from stable, while Moody’s had downgraded India and Standard & Poor’s (S&P) retained the rating. However, the commentary of all the rating agencies are similar and this is where one can look at what Fitch has got to say.
 
Fitch has used the pandemic impact to comment on lower growth for India, which can be -5 per cent this year due to the lockdown and its effects. This is different from Moody’s that had taken the view that growth has not been impressive even before the pandemic came. READ MORE

Bank stocks trade in the green post AGR hearing; Nifty Bank index up 0.7%


AGR Case | SC directs telecom companies to submit financial documents of last 10 yrs, reports CNBC TV18


AGR Case | SC defers hearing to third week of July on the issue of furnishing undertaking

>> SC orders, DoT had sought time to consider the telcos proposals, will allow time till third week of July.

AGR Case | Consider it a joint submission from all telcos that bank guarantees would be unfeasible: Tata counsel to SC

>> Furnishing of bank guarantees will have an adverse impact of further investments in the sector

(As reported by CNBC TV18)

AGR Case | Allow us 2 wks to confer with the management, and we will get back: Voda Idea's counsel to SC

(As reported by CNBC TV18)

AGR Case | This is the only industry that has done biz during lockdown, should deposit a reasonable amount: observes SC

>> Must make payment, govt needs money for public welfare.

AGR Case | There has to be provision for down payment to avail of staggered payments, observes SC

>> Need to show bonafide to claim benefits of staggered payment. 
 
>> Voda-Idea must work something out to come with some offer. 
 
>> Reasonable amount needs to be paid upfront.

(As reported by CNBC TV18)
 

AGR Case | Assets worth Rs 42,000 cr have been charged as securities to secure borrowing of over Rs 1 trn: Voda Idea's counsel to SC

(As reported by CNBC TV18)

AGR Case | The only way for us is to earn and make staggered payment over 20 yrs: Voda Idea's counsel to SC

>> We'll deposit all documents to manifest that Voda is not making profits

AGR Case | SC observes, how has Voda Idea made provisions of Rs 52,000 cr of contingent liabilities if not making any money?

>> SC asks, what if Voda Idea goes into insolvency during the 20 year period?

AGR Case | If asked to pay up by tomorrow, company will fold up, says Voda Idea's counsel

>> Can file balance sheets, income tax returns, any document to show that we have no profits.

AGR Case | Have no security or proposal to give: Voda Idea's counsel to SC

>> Only proposal is to work and pay the AGR dues. 
 
>> Have bank guarantees of Rs 15,000 cr that can be considered as security

(As reported by CNBC TV18)

AGR Case | After servicing debt of Rs 1 lakh cr, paying creditors, Co continues to make losses: Voda Idea's counsel

>> Have made no profit for past very many quarters. 
 
>> Most assets are given as securities to bank to secure credit.
 

AGR Case | Extremely precarious position for the Co; not in a position to give any fresh Bank guarantee: Voda Idea's counsel to SC

>> Parent company has written off investment, my losses are over Rs 1 lakh guarantees. 
 
>> Over Rs 10,000 cr of bank guarantees are lying with the DoT, should be considered as security.

(As reported by CNBC TV18)

AGR Case | Bank guarantees of Rs 10,800 cr is pending with DoT, Airtel's counsel to SC

>> Can be encashed if Airtel defaults on AGR payments

MARKET UPDATE:: PSU stocks gain


AGR Case | Our spectrum of 1.12 lakh cr, licenses & bank guarantees are far in excess of the demands made, Airtel's counsel to SC

>> Endorse the suggestion by Solicitor General to allow DOT to consider our proposal

(As reported by CNBC TV18)


AGR Case | Since PSUs not in telecom services' biz, we are withdrawing demands against them: Solicitor General to SC

>> Says, have received affidavits from telcos on securities; Govt can go back and consider the submissions by telcos.

(As reported by CNBC TV18)

NEWS ALERT | Advocates assemble for the hearing in the AGR case, judges awaited: CNBC TV18


STOCK ALERT | Coal India gains as PM Modi addresses the launching of auction of 41 coal mines for commercial mining


BROKERAGE VIEW:: HDFC Securities on Indraprastha Gas

Our ADD recommendation on Indraprastha Gas with a TP of Rs 520 is based on (1) Volume growth of ~4.7% CAGR over FY20-22E, (2) Portfolio of mature, semi-mature and new Geographical Areas (GA) and (3) Pricing power as evident in 3.9% CAGR growth in per unit EBITDA over FY17-20 to INR 6.5/scm.

BROKERAGE VIEW:: Prabhudas Lilladher on Ipca Labs

Rating: BUY | CMP: Rs 1,563 | TP: Rs 1,839

IPCA held its strong guidance for FY21E with 1) Revenue growth of 14-17% 2) EBITDA margin expansion of 100-150bps and 3) domestic formulation growth of 10-12% in tough environment. We believe IPCA’s Q4FY20 performance and growth visibility was far better as compared to its peers. Also, future prospects are not depended on exogenous factors (like resolution from FDA, new approval and tender win). We believe FDA’s resolution in FY21E for its three plants would lead to an earnings surprise. Accordingly, we value IPCA at Rs 1,839(earlier Rs 1,728) on 26x PE of FY22E and upgrade to Buy (earlier Accumulate) due to marginal change in earnings estimate.  

BROKERAGE VIEW:: ICICI Securities on Ipca Labs

Ipca has maintained growth tempo in FY20, as was the case for FY19. Besides strong domestic formulations franchise, it continues to thrive on exports front, both in formulations, APIs. Though there are fluctuations in the institutional business, the management remains upbeat on prospects. Going ahead, with firm growth tempo in domestic formulations and good prospects both for API exports and formulation exports, we expect further improvement in financial parameters. The company will continue to remain a compelling bet on the back of well-rounded growth prospects for FY20–22E- sales, EBITDA and PAT CAGR of 13%, 22% and 29%, respectively. We arrive at our target price of Rs1,900 (24x FY22E EPS of Rs 79.2).

BROKERAGE VIEW:: Edelweiss Securities on Automobiles

  • We downgrade our recommendations on Bajaj Auto (BJAUT) to ‘HOLD’ from ‘BUY’. Recently, we downgraded Hero MotoCorp and Mahindra & Mahindra (M&M; read here) to ‘HOLD’. We maintain our ‘HOLD’ on Maruti Suzuki (MSIL). Our only ‘BUY’ recommendations are on Eicher Motors (EIM) & Tata Motors (TML). We prefer stocks that can: 1) Gain market share. 2) Have a strong product cycle tailwind. 3) Have government support– direct or indirect.
  • Earnings–where do we stand: Our current FY22 EPS estimates are ~2% to 9% below consensus, except for TML. For TML our FY22E EBITDA is 6% above consensus.
  • Valuations – Little margin of safety: Given the limited support from government, weak income profile and higher costs, demand recovery will be protracted and delayed. Post the run up in prices, we believe that valuations do not provide the required margin of safety as they have mean reverted to five years’ average (versus a deep discount earlier). With the exception of EIM (on PE) and TML (on EV/EBITDA), all the stocks are trading at above their 5 year average valuation.
  • Key risks to our call – 1) Strong government actions such as tax cut, or direct income support, which could meaningfully revive demand. and 2) Better-than-expected pricing discipline, thereby providing margin and FCF support.

BROKERAGE VIEW:: Edelweiss Securities on Muthoot Finance

Asset quality remains strong with gross-stage 3 assets declining to sub-2.2% (2.5% in Q3FY20). Other businesses—home finance, Belstar and insurance broking—have been understandably held back by adverse circumstances. We believe the current environment offers a unique growth and asset tailwind to gold financing, forcing our hand to raise FY21/FY22E EPS by 16%/26%—a rarity in these times. We are also the raising target to 2.5x consolidated FY22E BVPS (from 2x), thereby leading to a revised TP of Rs 1,160 (earlier Rs 883). Frankly, our FY22E RoE of 28% and the low asset quality risk could have justified an even higher multiple, but we recognise that gold financing is after all a mature credit category. Supernormal profitability at low risk would shine through on account of i) a paucity of credit substitutes, ii) gold price tailwind and iii) thinning out of NBFC gold loan competition over the last few years, but a cyclical mean reversion is inevitable. Maintain ‘BUY’.

Pidilite Industries falls 3% on disappointing Q4 results

The company’s profit before tax and exceptional items (PBT) declined 12 per cent year-on-year (YoY) to Rs 255 crore. Net sales declined 6 per cent at Rs 1,535 crore over the previous year quarter, largely impacted by lockdown and disruption in supply chain. EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin improved to 19.5 per cent from 17 per cent, primarily due to softer input costs. READ MORE

NEWS ALERT | DoT has asked companies to consider reviewing future partnership with Chinese cos like Huawei & ZTE

(as reported by CNBC TV18, quoting sources)

MARKET UPDATE:: Broader indices outperform benchmarks


Covid-19 crisis: Move to turn hotels into hospitals raises temperature

Well-intentioned moves don’t always mean good business, and hoteliers have been forced to learn this the hard way. The Delhi government’s recent order to attach hotels to serve as extensions of hospitals to provide for the shortfall of beds and medical facilities for Covid-19 patients has baffled many hoteliers, who say though the move is for a good cause, it will be a blow to the sector already reeling from the impact of the pandemic. READ MORE 


ITI hits 52-wk high as govt bars BSNL, MTNL from using Chinese 4G equipment

The stock has rallied 32 per cent in the past two trading days after the Department of Telecommunications (DoT) asked state-owned Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam (MTNL) to exclude Chinese gearmakers from supplying 4G telecom equipment. Private telecom operators have been asked to consider staying away from such Chinese firms. READ MORE

MARKET UPDATE:: Sensex gains momentum


Gravestone, Dragonfly: Use Doji Candlestick patterns to maximise profits

A Doji candlestick is formed when the open and close prices of a stock or index are nearly the same, which represents indecision among traders. The different forms of a doji candlestick are: long-legged doji, Gravestone doji, and Dragonfly doji. In simple terms, such a candle indicates that the bulls and bears are uncertain about the trend. The strength and momentum for both seems to be at par, resulting in the price settling at the equal level. One can use this candle to make a buy or sell decision. READ MORE

Rupee opening

Rupee opens flat vs Wednesday's close of 76.15 against the US dollar

Muthoot Finance surges 9%, hits new high on robust March quarter results

During the quarter, the company’s gold loan portfolio increased by Rs 3,113 crore to Rs 41,611 crore. "Disbursements and collections have normalized and the management are expecting increase in disbursement once movement of people increases and economic activity level picks up. The company is looking to grow gold loan business by about 15 per cent for the whole year," the company said. READ MORE

NEWS ALERT :: Medium-term GDP growth outlook may be negatively affected by renewed asset-quality challenges in banks, liquidity issues in NBFC

>> The financial sector was already facing weak business and consumer confidence before the crisis and authorities had to deal with some high-profile cases over lapses in governance. 
 
>> A renewed rise in NPLs and the need for further financial government support now seem inevitable despite regulatory measures announced by the Reserve Bank of India (RBI). These measures include an extension of the 90-day moratorium on recognition of impaired loans to 180 days and several relaxations in bank lending limits such as allowing banks to fund interest on working-capital loans.

>> These moves will put a heavy onus particularly on public-sector banks to bail out the affected sectors and extend impaired-loan recognition, heightening solvency risks if not met by adequate and timely capital support

NEWS ALERT :: Fitch expects govt debt to jump to 84.5% of GDP in FY21 vs 71.0% of GDP in FY20

>> This is significantly higher than the median of 42.2% of GDP for the 'BBB' category in 2019, to which FY20 corresponds, and 52.6% for 2020.

>> The medium-term fiscal outlook is of particular importance from a rating perspective, but is subject to great uncertainty and will depend on the level of GDP growth and the government's policy intentions.

NEWS ALERT :: Govt has shown fiscal restraint so far in addressing pandemic, says Fitch Ratings

>> The humanitarian and health needs have been pressing, but the government has shown expenditure restraint so far, due to the already high public-debt burden going into the crisis

>> Most elements of an announced package totalling 10% of GDP are non-fiscal in nature. Some further fiscal spending of up to 1 percentage point of GDP may still be announced in the next few months, which was indicated by a recent announcement of additional borrowing for FY21 of 2% of GDP, although we do not expect a steep rise in spending.

NEWS ALERT :: Fitch revises India's outlook to negative

>> Fitch Ratings has revised the Outlook on India's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Negative from Stable and affirmed the rating at 'BBB-'.

>> Fitch expects economic activity to contract by 5% in the fiscal year ending March 2021 (FY21) from the strict lockdown measures imposed since 25 March 2020, before rebounding by 9.5% in FY22.

>>  It remains to be seen whether India can return to sustained growth rates of 6% to 7% as we previously estimated, depending on the lasting impact of the pandemic, particularly in the financial sector.

FDC gains in trade post Q4 nos


Broader market check


YES Bank trades flat with positive bias


Sterlite Technologies gains as govt mulls exclusion of Chinese gearmakers from supplying 4G telecom equipment


Muthoot Finance climbs over 7%

>> Muthoot Finance Ltd (MFIN) on Wednesday reported a 52.4 percent jump in consolidated net profit at Rs 835.78 crore in the last quarter of the fiscal ended March 2020 due to higher demand for gold loans.

Result Impact | IGL dips over 2%


MTNL surges 7%

>> The Department of Telecommunications is learnt to have directed state-owned Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) to exclude Chinese gearmakers from supplying 4G telecom equipment.


Sectoral trends on NSE at Open


Sensex Heatmap at Open


Opening Bell


Opening Bell


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


Markets at Pre-open


Markets at Pre-open


Stocks to watch: Telcos, banks, IGL, Pidilite Ind, Muthoot Finance, Thermax

Bharti Airtel, Vodafone Idea, banks: Telecom players, Bharti Airtel and Vodafone Idea, are expected to trade actively today as the Supreme Court is scheduled to hear the adjusted gross revenue (AGR) case later in the day. Banking counters may also remain in focus.
 
MTNL: The Department of Telecommunications is learnt to have directed state-owned Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) to exclude Chinese gearmakers from supplying 4G telecom equipment. Private telecom operators have been asked to consider staying away from such Chinese firms. READ MORE

BROKERAGE VIEW :: Jefferies on HEG

Maintains 'Buy', Target price: Rs 1,200

>> Buy call based on inexpensive valuation

>>Q4 was subdued due to low demand, EBITDA impacted due to inventory write-down

>> Balance sheet remains robust with sizeable cash pile 

BROKERAGE VIEW :: Jefferies on IGL

Maintains 'Hold', Target price: Rs 450

>> Q4 volumes beat estimates by 11%

>> Expects normal volume by Q3 and sees CAGR of 8% over FY20-22

>> Says, recovery in volume and margin expansion are already priced-in

BROKERAGE VIEW :: CLSA on IGL

Maintains 'Outperform', Target price: Rs 525 from Rs 570

>> Q4 EBITDA beats by 4% as margin offset lower volume

>> Expects volume normalisation by 2020 end

>> Sees cut is domestic gas prices and GST inclusion as near-term tailwinds

>> Cuts FY21/22 EPS estimates by 35%/8%

>> Says, Co is the best in the volume growth story


FUEL PRICE UPDATE

Nifty outlook and stock recommendations by CapitalVia Global Research

As per weekly option data, handful of put writing on higher strikes ranging from 9,700 to 9,900 is seen, which shows Nifty might witness support in subzone of 9,800, which might also act as support as maximum put OI is placed here after 9,700. But Nifty likely to face stiff resistance at 10,000 as maximum call OI is placed here. We might witness strength only if Nifty breaks level of 10,000. Therefore, traders should try to create short position keeping close eye on 10,000, as it might act as a resistance for this weekly expiry. READ MORE

Bulk deals on NSE as on Wednesday

Bulk deals on BSE as on Wednesday

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


Rupee check

Source: Bloomberg


Oil check

>> Oil prices dropped on Thursday with US crude futures falling 1.9% to $37.49 per barrel, while international benchmark Brent lost 1.4% to $40.14 a barrel.

SGX Nifty hints at another weak start

>> At 8:24 am, the index was at 9,776.5 level, down 88 points or 0.89 per cent

Global stocks retreat on rising second wave fears

Source: Reuters


S&P closes lower as new COVID-19 cases surge

Source: Reuters


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