MARKET WRAP: RIL, HUL help Sensex end 199 pts up; Nifty settles at 9,251

Photo: Shutterstock.com
Benchmark indices once again failed to hold on to the day's high levels on Friday and pared most of its gains at the end of the session, amid selling in financial, auto and metal stocks. However, oil-to-telecom behemoth Reliance Industries (RIL) and FMCG giant Hindustan Unilever (HUL) helped indices settle in the positive territory. 

The S&P BSE Sensex ended at 31,642.70, up 199 points or 0.63 per cent, with HUL (up nearly 5 per cent) being the top gainer and NTPC (down nearly 4 per cent) the biggest loser. 

On the NSE, the benchmark Nifty ended at 9,251.50, up 52 points or 0.57 per cent. Volatility index, India VIX, declined nearly 3.5 per cent to 38.53 levels.  

In the broader market, the S&P BSE MidCap index ended flat at 11,423.81 while the  S&P BSE SmallCap index slipped 0.45 per cent to 10,638.70 levels. 

Global Markets

Global shares rallied on Friday as investors cheered signs of improving Sino-American relations and looked towards more governments gradually reopening their economies. Top US and Chinese trade representatives discussed their Phase 1 trade deal on Friday, with China saying they agreed to improve the atmosphere for its implementation and the United States saying both sides expected obligations to be met.

The pan-European STOXX 600 rose 0.6 per cent, boosted by a 5.1 per cent jump in Siemens after the German industrial company announced cost-cut plans to deal with the impact of the pandemic following an 18 per cent drop in industrial profit in the second quarter.

In commodities, oil prices climbed as countries including Australia moved ahead with plans to relax economic and social lockdowns put in place to halt the coronavirus pandemic, kindling market hopes for a boost in demand for crude and its products.

Brent crude was up by 87 cents, or 3 per cent, at $30.33 a barrel at the time of writing of this report, having fallen nearly 1 per cent on Thursday. US oil gained $1.12, or 4.8 per cent, to $24.67 a barrel, after a decline of nearly 2 per cent in the previous session.

(With inputs from Reuters)


4:13 PM IST After showing narrow range movement in the last few sessions, Nifty made an attempt to move up in today's session, but was not able to close at the higher end of the day. A reasonable negative candle was formed today after opening higher, which indicates a formation of counter attack type candle pattern. Today's pattern indicates sell on rise action in the market. This is not a good sign for bulls to make a comeback.   The bearish island reversal pattern of 4th May is still intact. Both the up and down gaps are open after four sessions of its formation. The downside pattern target is at 8,900 levels.   A long negative candle was formed in Nifty on the weekly chart, after a sharp rise of last week. This pattern could signal lower top reversal for the Nifty around 9,900 levels. Hence, follow-through weakness in the next week could trigger further declines in the market ahead.   The short term trend of Nifty is range bound with slight positive bias. The overall chart pattern indicates possibility of weakness in the next week. Any attempt of upside bounce is likely to halt around 9,400 levels. The downside levels to be watched for the next week is 8,900 or lower. Immediate support is placed at 9,150.

4:05 PM IST "Nifty fluctuated around 150 points in another day of volatile trades, tracking uncertainty in the markets. Gains were led by Reliance, which succeeded in another round of fundraising even in this adverse scenario. Global market trends were also positive following attempts to defuse tensions around the US- China trade talks. While the earnings season has been lacklustre, markets seem to be awaiting announcement of a stimulus package from the government".

3:47 PM IST

3:43 PM IST

3:36 PM IST The S&P BSE Sensex ended 199 points or 0.63 per cent higher at 31,642.70 while NSE's Nifty settled at 9,251.50, up 52 points or 0.57 per cent. 

3:28 PM IST

3:26 PM IST The sharp slowdown in growth will deepen with a national lockdown to contain the coronavirus being extended till May 17. “For India, we expect a sharp slowdown in growth, with real Gross Domestic Product (GDP) growth averaging 0.2% in the 2020 calendar year, down from our previous forecast of 2.5%.”, Moody’s said in statement. Its rating of the India government is Baa2 with negative outlook. READ MORE  

3:19 PM IST

3:10 PM IST >> Gross NPA at 2.01% vs 2.44% (YOY)

3:09 PM IST

3:06 PM IST (as reported by CNBC TV-18)

3:04 PM IST After the Facebook (FB) and Silver Lake stake sale in Jio Platforms (JPL), RIL has announced a deal to sell a 2.23 per cent stake in Jio Platforms (JPL) to Vista Partners for US $ 1.5 billion. This takes the total equity flow into JPL to $ 7.95 billion for a total equity sale of 13.45 per cent. "We expect the news flow and expectations of 'similar sized deals' to continue to drive near-term stock outperformance as it allows investors to look through near-term earnings weakness", JP Morgan said in a research. READ MORE   RIL Chairman Mukesh Ambani

LIVE UPDATES

Technical Observation by Nagaraj Shetti - Technical Analyst, HDFC Securities

After showing narrow range movement in the last few sessions, Nifty made an attempt to move up in today's session, but was not able to close at the higher end of the day. A reasonable negative candle was formed today after opening higher, which indicates a formation of counter attack type candle pattern. Today's pattern indicates sell on rise action in the market. This is not a good sign for bulls to make a comeback.
 
The bearish island reversal pattern of 4th May is still intact. Both the up and down gaps are open after four sessions of its formation. The downside pattern target is at 8,900 levels.
 
A long negative candle was formed in Nifty on the weekly chart, after a sharp rise of last week. This pattern could signal lower top reversal for the Nifty around 9,900 levels. Hence, follow-through weakness in the next week could trigger further declines in the market ahead.
 
The short term trend of Nifty is range bound with slight positive bias. The overall chart pattern indicates possibility of weakness in the next week. Any attempt of upside bounce is likely to halt around 9,400 levels. The downside levels to be watched for the next week is 8,900 or lower. Immediate support is placed at 9,150.

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

"Nifty fluctuated around 150 points in another day of volatile trades, tracking uncertainty in the markets. Gains were led by Reliance, which succeeded in another round of fundraising even in this adverse scenario. Global market trends were also positive following attempts to defuse tensions around the US- China trade talks. While the earnings season has been lacklustre, markets seem to be awaiting announcement of a stimulus package from the government".

Sectoral gainers and losers on the NSE


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


CLOSING BELL

The S&P BSE Sensex ended 199 points or 0.63 per cent higher at 31,642.70 while NSE's Nifty settled at 9,251.50, up 52 points or 0.57 per cent. 

MARKET CHECK


India's credit profile to face further pressure due to Covid-19: Moody's

The sharp slowdown in growth will deepen with a national lockdown to contain the coronavirus being extended till May 17. “For India, we expect a sharp slowdown in growth, with real Gross Domestic Product (GDP) growth averaging 0.2% in the 2020 calendar year, down from our previous forecast of 2.5%.”, Moody’s said in statement. Its rating of the India government is Baa2 with negative outlook. READ MORE  


MARKET UPDATE | Axis Bank slips over 4%


NEWS ALERT | SBI Cards slips around 3% as Q4 profit comes in at Rs 83.5 cr Vs 249 cr YoY

>> Gross NPA at 2.01% vs 2.44% (YOY)

SECTOR WATCH:: FMCG stocks largely in the green, led by HUL, up 5%


NEWS ALERT SC agrees to hear plea seeking interest waiver for RBI -prescribed moratorium period owing to lockdown.

(as reported by CNBC TV-18)

RIL repositioning as consumer, tech co may push up stock price: J P Morgan

After the Facebook (FB) and Silver Lake stake sale in Jio Platforms (JPL), RIL has announced a deal to sell a 2.23 per cent stake in Jio Platforms (JPL) to Vista Partners for US $ 1.5 billion. This takes the total equity flow into JPL to $ 7.95 billion for a total equity sale of 13.45 per cent. "We expect the news flow and expectations of 'similar sized deals' to continue to drive near-term stock outperformance as it allows investors to look through near-term earnings weakness", JP Morgan said in a research. READ MORE  

RIL Chairman Mukesh Ambani

Goldman Sachs, Nomura lower FY21 GDP estimate for India; see more rate cuts

Global research and broking houses – Goldman Sachs and Nomura – have sharply cut their economic growth projections for India for financial year 2020-21 (FY21) and expect the Reserve Bank of India (RBI) to cut rates sharply to stem the economic rout caused by the lockdown on account of Covid-19 pandemic. READ MORE 


AIIB extends $500 mn loan to India to deal with coronavirus crisis

The project is funded by AIIB’s Covid-19 Crisis Recovery Facility, created to adapt to urgent financing needs of the bank’s members impacted by the pandemic, the bank said in a statement.
 
The bank's board of directors has approved a loan to India to strengthen the preparedness of the country’s national health system. READ MORE

Amid coronavirus lockdown, steel demand pick-up off to a slow start

In the past couple of days, a number of automakers, including Maruti Suzuki, Hero MotoCorp, Mercedes Benz India, Eicher Motors, TVS Motor, and Isuzu Motors India, have announced they have got clearance from the government to resume operations. Construction activities, too, have resumed, albeit in a staggered manner. In some pockets there is also demand for yellow goods. No doubt, between Lockdown 1.0 and 3.0, there has been an improvement in demand, but steel companies view this as too little. READ MORE

Result Tomorrow | ICICI Bank Q4 preview: Profit may jump 3x YoY, loans under moratorium eyed

During tomorrow's board meeting, the bank will also consider fund raising by way of issuance of debt securities including non-convertible debentures or bonds in single or multiple tranches in any currency through public or private placement. In the past one month, the stock price of the Mumbai-headquartered lender has surged 19.16 per cent on the BSE, as against a 14.84 per cent gain in the benchmark S&P BSE Sensex. READ MORE

Stocks that hit 52-week low on BSE in an otherwise firm market

COMPANY PRICE(rs) 52 WK LOW CHG(%)
AU SMALL FINANCE 420.85 420.85 -5.00
BANK OF BARODA 41.75 41.55 -1.76
BRIGADE ENTERPR. 106.05 102.10 -3.68
D B CORP 69.80 68.00 -0.50
GE POWER 407.10 406.45 -0.20
» More on 52 Week Low

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


MARKET UPDATE | Power stocks slip in trade


Rupee Closing

>> Rupee closes 22 paise stronger at 75.54 per US dollar vs Wednesday's close of 75.76/$

Cyient locked in 10% lower circuit on lower-than-expected Q4 results

A combined 2.65 million equity shares have changed hands on the counter till the time of writng of this report, and there were pending sell orders for around 82,000 shares on the NSE and BSE. The stock of the IT consulting and software firm was trading close to its 52-week low of Rs 200 touched on April 28, 2020. READ MORE

US, China trade representatives agree to strengthen ties: China ministry

Chinese Vice Premier Liu He, US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin also agreed during the call that the two countries will work together to create a favourable environment for implementing the Phase 1 trade deal reached early this year, the ministry said.READ MORE

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


April MF data :: Equity inflows declines 47% MoM at Rs 6,108 cr, lowest in 2020

>> Hybrid Fund inflow at Rs 4,205 cr vs outflow of Rs 36,460 cr in March

>> Liquid fund net inflow at Rs 68,848 cr vs net outflow of Rs 1,10,037 cr MoM

>> Corp bond fund net outflow at Rs 19,239 cr vs net outflow of Rs 5,569 cr MoM 

>> Total AUM at Rs 23,93,486 cr vs Rs 22,26,203 cr MoM

(Via CNBC TV18)

European indices trade higher in early deals

(Source: Reuters)


US Joblessness claim :: 22 million jobs likely lost in April, reports Reuters

>> The US economy likely lost a staggering 22 million jobs in April, in what would be the steepest plunge in payrolls since the Great Depression and the starkest sign yet of how the novel coronavirus pandemic is battering the world’s biggest economy.

>> The Labor Department’s monthly employment report to be released later today is also expected to show the jobless rate surging to at least 16% last month. 

>>The historic dive in April nonfarm payrolls predicted in a Reuters survey anticipates job losses in nearly all sectors of the economy, with larger layoffs in the leisure and hospitality industry - mainly restaurants and bars.

>> Estimates in the survey ranged to as much as a loss of 35 million. Forecasts for April’s unemployment rate, which was at 4.4% in March, were as high as 22%.

It will take years for jewellery sales to reach pre-Covid levels: Experts

“Gold jewellery sales are going to see a dynamic change once the lockdown ends. Sales are going to come back, with gold being the preferred choice of asset handed over at a wedding. But, it will take several years to bring back jewellery sales to pre-Covid levels,” said Somasundaram P R, managing director, World Gold Council (India). READ MORE

NEWS ALERT | Supreme Court refuses to stall the sale of liquor across India, says states can consider 'home-delivery': CNBC TV18

-- SC urges states to find ways to avoid crowding at liquor shops
 
-- A PIL in the SC sought to stall liquor sale, citing rampant flouting of social distancing norms.

STOCK ALERT :: RIL reclaims Rs 10 trillion m-cap mark

>> At 1:15 pm, market capitalsation stood at Rs 10,00,928 crore


Laurus Labs under pressure, plunges 10% after multiple block deals

Shares of Laurus Labs slipped 10 per cent to Rs 440 on the BSE in the noon deals on Friday after a more than 30 million equity shares of the pharmaceutical company changed hands via multiple block deals. At 12:44 pm, the stock was trading 8 per cent lower at Rs 449 on the BSE, as compared to a 1.5 per cent rise in the S&P BSE Sensex. A combined 34.4 million equity shares, representing 32.2 per cent of total equity of Laurus Labs, changed hands on the BSE and NSE. READ MORE 
 

Tech-related firms in focus; PPFAS adds Microsoft to portfolio in April

Covid-19 triggered lockdowns across the globe, it seems, have brought back investor’s focus on technology and internet related firms. While on one hand, companies with global footprint such as Facebook and Vista Equity have invested in Jio Platforms – a company owned by Mukesh Ambani’s Reliance Industries (RIL), Indian investors, too, have been scouting for investment-worthy opportunities overseas. READ MORE

Franklin Templeton issues unconditional apology to market regulator, Sebi

“We deeply regret any unintended slight this may have caused to the esteemed offices of Sebi whom we have always held in the highest regard and unconditionally apologise for the same,” said Sanjay Sapre, President, Franklin Templeton AMC, the domestic arm of the global assert manager. READ MORE  

Franklin Templeton MF


MARCH QUARTER RESULTS | P&G's profit up 1.1% YoY to Rs 91.1 crore

-- Revenue declines 6.2 per cent YoY to Rs 656.1 crore

-- EBITDA falls 13.3 per cent to Rs 124.5 crore

Heavy lifting by SBI, others fail to do the trick for YES Bank

YES Bank will be reckoned as the only bank to get a highly qualified audit report where its solvency and sustenance came under the hammer as its capital adequacy ratio (CAR) again dipped to 6.3 per cent, a few notches below the regulatory requirement of 7.15 per cent. READ MORE

Hindalco gains 5% after unit Novelis' Q4 results; brokerages maintain 'buy'

Shares of Hindalco Industries climbed over 5 per cent to Rs 123.65 apiece in the intra-day deals on the BSE on Friday, a day after its subsidiary Novelis reported better-than-expected results for the quarter ended March 2020 (Q4FY20). At 11:22 am, the stock was trading 2.68 per cent higher at Rs 120.70 apiece on the BSE as compared to 1.66 per cent rise in the benchmark S&P BSE Sensex. READ MORE

MARKET VOICE | Ambareesh Baliga on delayed fiscal stimulus

Covid-19 impact: No comfort in hotel stocks as recovery pushed to FY23

The reason for this underperformance is the apprehension that recovery could stretch to two years, one of the longest durations across sectors. The delay is on account of a gradual recovery from zero occupancies currently, the high fixed-cost nature of the business, and the rise in leverage, which was showing signs of easing over the last couple of years. Nihal Mahesh Jham of Edelweiss Securities believes the slowdown is much deeper and the impact may be much worse than the sector has seen before, with occupancies in single digits and the probability FY21 revenue per available room (RevPAR) contracting sharply. HVS Research expects revenues of the sector to decline by Rs 90,000 crore in 2020, down 57 per cent compared to the previous year, and RevPARs to fall by 58 per cent. READ MORE

BROKERAGE VIEW:: Emkay Global Fin Services on RBL Bank

TP: Rs 145 | RATING: HOLD
  • RBL’s core performance was better than expected, led by strong margins; however, higher loan loss provisions led to lower PAT of Rs1.14bn. The headline GNPA ratio slipped further by 30bps qoq to 3.6% due to lower w-offs and a decline in the loan book.
  • RBL sees FY21 loan growth at ~10-15%, with continued de-bulking of the wholesale book, but at a slower pace and BAU expected in retail around Oct’20. Post sharp run-down in Q4 due to Yes Bank saga, deposits have again picked up in Apr’20, which is a slight relief.
  • Overall moratorium rate for the bank stands at ~30% in value: Cards-13% in numbers/24% in value, wholesale-22-23% in numbers/value and retail-46% in numbers. It has made provisions of Rs1.1bn on SMA loans under moratorium. The bank expects FY21 LLP to be similar to FY20 but largely coming from retail/SME/MFI including cards vs. corporate.
  • We believe RBL’s expected business/RoA normalization from FY21 could be pushed back due to Covid-19-led disruption. Retain Hold rating with TP of Rs145 due to lower valuations (0.6x FY22E ABV) and timely shoring up of capital (Tier I >15%), but remain UW in EAP.

BLOCK DEAL ALERT :: 9 lakh shares worth Rs 350 cr trade in 3 blocks on BSE & NSE at Rs 441-461/sh

(Via CNBC TV 18)

SECTOR WATCH:: Pharma stocks trade higher

COMPANY LATEST(rs) CHG(%)
AUROBINDO PHARMA 656.70 1.29
STRIDES PHARMA 427.30 0.39
SUN PHARMA.INDS. 464.00 2.59
CADILA HEALTH. 321.65 0.02
BIOCON 358.00 2.39
» More

Inflows in equity mutual funds plunge 25% to Rs 83,781 cr in FY20

Investors pumped Rs 83,781 crore in equity-oriented mutual fund (MF) schemes in FY20, registering a decline of 25 per cent from the Rs 1.11-trillion inflows in the preceding year.
 
However, this was the sixth successive year of net inflows in equity mutual funds, according to data by the Association of Mutual Funds in India. READ MORE

NEWS ALERT :: BASF India receives tax notice from Karnataka govt


BUZZING STOCK:: Sun TV network rises 6%


Asian Paints extends loss into 8th day on report RIL mulls stake sale

Shares of Asian Paints extended its loss into eighth straight day, down 1.5 per cent at Rs 1,570, on the BSE on Friday on report that Reliance Industries (RIL) is considering selling its 4.9 per cent stake in the country’s largest paint maker to trim its debt. In the past eight trading sessions, the stock of Asian Paints has underperformed the market by falling 15 per cent, as compared to a 0.55 per cent rise in the S&P BSE Sensex. READ MORE

RIL, ICICI Bank top contributors to Sensex's gain today


Gold Outlook | Anuj Gupta , DVP–Commodities & Currencies Research, Angel Broking

On Thursday, gold prices increased almost 1.74% and closed above 46100 levels. In international market, gold is also trading on a positive note. This is due to weakness in dollar due to dovish US economic data and expectation of negative interest rates in the next year in US. Today, Gold may trade on a positive side. Traders can buy gold at 45,900 levels with the stop loss of 45,650, for the target of 46,500 levels. In international market, Gold may test $1730 levels.

India's credit profile to face further pressure due to Covid-19: Moody's

India's credit profile will face further pressures amid the coronavirus outbreak, according to rating agency Moody’s. The shock will exacerbate an already material slowdown in economic growth, which has significantly reduced prospects for durable fiscal consolidation, Moody’s said in credit opinion. Moody’s rating on the government of India is Baa2 with negative outlook. READ MORE

MARKET CHECK | Hindalco Ind gains nearly 3%


NEWS ALERT | Franklin Templeton India issues an apology to Sebi: CNBC TV18

-- says President and CEO of Franklin Templeton, Jenny Johnson, was 'quoted out of context' on a question regarding the winding up of six schemes offered in India

BROKERAGE VIEW:: Edelweiss Securities on Automobiles

As OEMs brace for second consecutive year of (sharp) volume deceleration, we find these businesses resilient. This is reflected in higher or similar cash per share (as % of price) compared to GFC, despite a shallower price drop. Our bedrock analysis also indicates that even after 30-65% volume fall (from FY19 peak) and profit dip of 50-100%, OEMs can be FCF neutral. Since our note, Discount season, more clarity has emerged on the extent of COVID-19 impact. Hence we are in process of re-evaluating our forecasts. We believe FY21 will remain volatile, with any normalcy only in FY22. The recent sharp run-up in stock prices reflects part of the business resiliency. In such an environment, we favour businesses that address utility over aspiration, have a product cycle and availability of finance tailwind & valuation support. Our top picks remain Eicher Motors (EIM), Hero MotoCorp (HMCL) and Tata Motors (TTMT). Since the aforementioned note, they have returned ~-3%, ~25%, and ~22%, respectively, compared with ~12% for S&P BSE Auto.

BROKERAGE VIEW:: HDFC Securities on HCL Tech

Maintain BUY on HCL Tech (HCLT) based on relative outperformance, in-line 4Q rev, operational improvement and business durability (large deals, infra services, software business). HCLT’s software portfolio and strong presence in infra services (cloud migration, virtual workplace, endpoint management) will mitigate the near-term headwinds of volume/price compression & deferrals. Our TP of Rs 565, values HCLT at a modest 12x FY22E EPS (3-6% EPS increase).

BUZZING STOCK:: ICICI Bank at day's high


BROKERAGE VIEW:: ICICI Securities on Cyient

The company is taking significant steps on the cost side to right size the cost structure for lower revenues (involuntary attrition was 9.8% in Q4FY20) and expects EBIT margin to recover to Q4FY20 levels of 8.4% by Q2FY21. Margins should further improve to around Q3FY20 level of 9.6% in H2FY21. Our revised estimates remain conservative relative to such expectations. Since majority of the revenue decline is expected to come through volumes and not pricing, that makes it easier for the company to manage profitability. We now expect USD revenues to decline by 18% in FY21 (from 13.4% decline earlier) with EBIT margins left unchanged from earlier at ~7.5%. Maintain BUY rating as valuation of 7.2x FY22E EPS is already adequately capturing the severeness of near-term implosion in fundamentals.

RBL Bank gains 4% on strong Q4 operating performance; analysts maintain buy

Shares of RBL Bank advanced 3.9 per cent to Rs 134 per share on the BSE on Friday after the bank clocked string operating performance in the March quarter of FY20 (Q4FY20) despite the Covid-19 related concerns. The lender logged a healthy 37 per cent year-on-year (YoY) growth in its operating profit at Rs 765 crore compared to Rs 560 crore a year ago. READ MORE

BROKERAGE VIEW:: Nomura on SBI Life

RATING: BUY | TARGET PRICE: 870

We expect a 5% decline in APE in FY21F, but an improving protection mix supporting VNB (largely flat in FY21F). Despite our muted expectations for the near term, we remain bullish on the longer term compounding story and believe SBI Life’s distribution strength will continue to aid market share gains, while lower cost ratios and improving persistency/business mix will aid VNB margins. Our TP of INR870 implies 2.4x/23x FY22F EV/VNB (1.95x FY22F EV currently). We expect the valuation gap to widen vs IPRU (IPRU IN, Neutral) given lower cyclicality expected in the savings business. A higher-than-expected decline in volumes remains a key downside risk.

HUL surges 4% after Societe Generale buys 129 million shares via bulk deal

Hindustan Unilever (HUL) shares rose 4 per cent to Rs 2,075 apiece on the National Stock Exchange (NSE) on Friday after institutional investors bought stake in the fast moving consumer goods (FMCG) company via open market on Thursday. The stock recovered 9 per cent from its Thursday’s low of Rs 1,902 touched in early morning deal. READ MORE

BROKERAGE VIEW:: Prabhudas Lilladher on HCL Tech

Rating: HOLD | CMP: Rs 512 | TP: Rs 548

HCLT has executed best in FY20 as compared to peers, revenue growth of 16.7% above initial guidance of 14-16% enabled by execution on strong set of deal wins in 2HFY19. Inorganic growth of 10.7%. We marginally fine tune our estimates & now value HCLT on 12X (earlier 11x) to arrive at a changed target price of Rs.548. Stock currently trades at attractive multiple of 11.3x on FY22E. Maintain HOLD. 

BROKERAGE VIEW:: Prabhudas Lilladher on Hindalco Ind

Rating: BUY | CMP: Rs 118 | TP: Rs 170
 
Novelis consistently delivered across the parameters with consistent earnings growth (10% EBITDA CAGR over FY15-FY20), balanced product basket and strong B/S (Net debt/EBITDA at 2.1x). Admittedly, Aleris would face significant headwinds in FY21e due to its exposure to Aerospace and building & construction segments. However, niche product basket and higher infra spending in US would revive earnings in FY22e. In wake of attractive valuations, comfortable B/S and better earnings outlook, we reiterate BUY with TP of Rs 170, EV/EBITDA of 5.7x FY21e.

Dr Reddy's hits 52-week high after USFDA issues EIR for Srikakulam facility

Shares of Dr Reddy’s Laboratories rallied 8 per cent and hit a 52-week high of Rs 4,132 on the National Stock Exchange (NSE) on Friday after the company received the Establishment Inspection Report (EIR) from US health regulator for its manufacturing plant at Srikakulam. The drug maker's stock surpassed its previous high of Rs 4,095, touched on April 22, 2020. READ MORE

Rupee opening

Rupee opens higher at 75.42/$ vs Wednesday's close of 75.76 against the US dollar

MARKET UPDATE:: Sensex pares some gains


Cyient Limited dips 5% as Q4 net profit slips 74%


Most active stocks by volume

OMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 4.19 0.72
RELIANCE POWER 1.87 -4.59
FUTURE CONSUMER 9.37 4.81
RBL BANK 128.75 -0.12
FUTURE RETAIL 80.60 4.95
» More on Most Active Volume

Nifty Private Bank index up 2%, top sectoral gainer


BUZZING STOCK:: IndusInd Bank up 4%


RIL trades 3% higher on Vista Equity deal; rallies 30% in one month

Vista’s investment will translate into a 2.32 per cent equity stake in Jio Platforms on a fully diluted basis, making Vista the largest investor in Jio Platforms, only behind Reliance Industries and Facebook. Jio Platforms has now raised Rs 60,596.37 crore from leading technology investors in less than three weeks. READ MORE

Asian Paints dips 1% amid reports of stake sale by RIL


YES Bank trade weak in a firm market

>> The auditor of YES Bank has pointed out multiple breaches of the Reserve Bank of India’s (RBI’s) norms and loan covenants by the private bank in the financial year ended March 2020, warning that these may impact the bank’s ability to continue as a going concern.


SKF India jumps over 7.5% on dividend bounty

>> The company announced that the board of directors of the company has recommended a special dividend of Rs 130 per share for the financial year ended 31 March 2020.


Result Impact | RBL Bank trades in the red


Tata Motors gains 2%

The gain is despite the company saying it has decided to withdraw the issue for private placement of unsecured NCDs aggregating up to Rs 1000 crore in view of the higher cost expectations from the market participants due to the tight money market conditions.


Reliance Industries trades over 2% higher


NEWS ALERT | No option but to implement pay-cuts from May: IndiGo CEO

(as reported by CNBC TV-18)

Sectoral trends on NSE at open


Sensex Heatmap at Open


Opening Bell


Opening Bell


RIL's valuation premium hits all-time high of 830 bps; stock rises over 3%

Reliance Industries has become one of the most expensive stocks on price-to-earnings (P/E) multiple basis in the large-cap space, with the exception of highly-valued fast moving consumer goods (FMCG) companies such as Hindustan Unilever, Britannia, Nestlé and Asian Paints.
 
At its current stock price, RIL is trading at nearly 28 times its trailing earnings per share (EPS) against the benchmark BSE Sensex’s multiple of 19.4x. READ MORE

Covid-19 Update


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


Market at Pre-open


Market at Pre-open


NEWS ALERT :: Biocon receives EIR from US FDA for Bengaluru unit


Stocks to watch: RIL, Tata Motors, RBL Bk, Adani Gas, SBI Cards, SKF India

RIL: Reliance Jio Platforms, part of Mukesh Ambani-controlled Reliance Industries group, has sold a 2.32 per cent stake to US-based private equity firm Vista Equity on a fully diluted basis for Rs 11,637 crore. That apart, the company is considering selling its stake in India’s largest paint maker Asian Paints, valued at about $989 million as the conglomerate steps up efforts to trim its debt.
 
Tata Motors: Tata Motors announced that the Company has decided to withdraw the issue for private placement of unsecured NCDs aggregating up to Rs 1000 crore in view of the higher cost expectations from the market participants due to the tight money market conditions. READ MORE

Bull Spread strategy on Tata Consumer by Nandish Shah of HDFC Securities

Bull Spread strategy on Tata Consumer Products
 
Buy TATA CONSUMER PRODUCTS 350 Call at Rs 13.3 & simultaneously sell 370 call at Rs 6.3
 
Lot Size: 2,700
 
Cost of the strategy: Rs 7 (Rs 18,900 per strategy)
 
Maximum profit: Rs 35,100 If Tata consumer closes at or above 357 on May expiry)
 
Break-even point: Rs 357 READ MORE

Outlook & trading strategies for Nickel, Natural Gas by Tradebulls Sec

Sell Natural Gas | TGT: 138 | Stoploss 160
 
Natural Gas has made an ‘inverted hammer’ candlestick pattern at the top end of the range which is a sign of reversal. The following candle was ‘Bearish Belt hold’ line which was confirmation of the bearish trend. The fast stochastic indicator has given sell cross over so we would recommend going short in Natural Gas with the target of 138 and stoploss of 160. READ MORE

Pullback on the higher side likely if Nifty holds 9,100: Anand Rathi

BUY NIFTY | TARGET: 9,400 | STOP LOSS: 9,100
 
Nifty is oscillating in the broader range of 9,100 to 9,500, and, currently, it has reached near its lower end of the range. So, as long as Nifty holds above 9,100 levels, we can expect some pullback on the higher side. The volatility India, VIX, has fallen below 40 levels, which is also giving comforts to the bulls. Although, the broader structure still looks weak and we are taking contra bet only to play for a pullback. 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

Alert: Rupee as on Wednesday


Oil check

>> At 8:30 am, Brent crude future was at $29.82 per barrel-mark, up 1.22 per cent

>> US WTI was at $23.93/bbl, up 1.6 per cent.

RIL sells another 2.32% in Jio, this time to Vista Equity for Rs 11,367 cr

Reliance Jio Platforms, part of Mukesh Ambani-controlled Reliance Industries group, has sold a 2.32 per cent stake to US-based private equity firm Vista Equity on a fully diluted basis for Rs 11,637 crore. This is a third major equity deal for Jio Platforms in three weeks — it previously sold a 9.9 per cent stake to Facebook for Rs 43,534 crore, and then 1.5 per cent to Silver Lake for Rs 5,655 crore. READ MORE

SGX Nifty indicates positive start for indices

>> At 8:27 am, the index was at 9,297 level, up 92.75 points or 1.01 per cent.

Asian market check

Source: Reuters


Wall Street gets PayPal lift as Nasdaq wipes out 2020 declines

Source: Reuters


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