MARKET: Sensex slips 260 pts; financials dip as RBI extends loan moratorium

NSE's Nifty ended at 9,039, down 67 points or 0.74 per cent.
The domestic equity market ended in the negative territory on Friday after the Reserve Bank of India (RBI) decided to cut the policy rate by 40 basis points from 4.4 per cent to 4 per cent to trim the impact of coronavirus on the economy. That apart, the central bank also extended the moratorium on loan repayments by three more months, resulting in sell-off in financial stocks. READ MORE

Nifty Bank today tumbled over 2.5 per cent to 17,279 levels while Nifty Private Bank declined around 3 per cent to 9,421.55 points, with 8 out of 10 constituents ending in the red.

The benchmark S&P BSE Sensex shed 260 points or 0.84 per cent to settle at 30,672.59. HDFC, HDFC Bank, ICICI Bank, and Axis Bank contributed the most to the Sensex's fall. On the other hand, IT majors, Infosys and TCS, supported the index.

NSE's Nifty ended at 9,039, down 67 points or 0.74 per cent. 

On a weekly basis, Sensex slipped 1.36 per cent and Nifty declined 1 per cent. 

Markets will remain closed on Monday, May 25 on account of Eid al-Fitr. 

Among individual stocks, SBI Cards hit new low of Rs 495 on the BSE after the RBI announced an extension of the moratorium on loan EMIs by three months. The stock ended at Rs 510, down 6 per cent. READ MORE

RIL ended over 0.5 per cent lower at Rs 1,431.60 after the company announced that investment firm KKR will invest Rs 11,367 crore in Jio Platforms. 

In the broader market, the S&P BSE MidCap index fell 0.83 per cent to 11,270  whereas the S&P BSE SmallCap index ended at 10,524.23, down 0.23 per cent.   

Global markets

World stocks took a hit on Friday as China moved to impose a new security law on Hong Kong after last year’s pro-democracy unrest, further straining fast-deteriorating US-China ties. Additionally, news that China has dropped its annual growth target for the first time added to concern about the fallout from the COVID-19 pandemic. 

Among Asian shares, Hong Kong's Hang Seng index slid more than 5 per cent to a seven-week low, MSCI's broadest index of Asia-Pacific shares outside Japan fell 2.7 per cent.

Japan's Nikkei slipped 0.8 per cent, while US stock futures fell almost 1 per cent -- pointing to a weak open for Wall Street.

European shares, too, opened broadly lower. 

In commodities, oil prices fell over 5 per cent towards $34 a barrel as tensions rose between the United States and China, and doubts grew about the pace of demand recovery from the coronavirus crisis.

(With inputs from Reuters)


4:05 PM IST Markets ended in the red ahead of a long weekend as the extension of moratorium on loans by the RBI today weighed heavily on Financials. Select Pivotals like Asian Paints; however, bucked the trend as the street seems to be betting on consumers painting their houses even as it fears that they may not repay their loans.

3:48 PM IST

3:45 PM IST

3:36 PM IST The S&P BSE Sensex shed 260 points or 0.84 per cent to 30,672.59 levels while NSE's Nifty ended at 9,039, down 67 points or 0.74 per cent. 

3:26 PM IST The stock today hit a 2-year high of Rs 134.40, up 6 per cent, on the BSE in an otherwise weak market and was trading at its highest level since May 9, 2018. In the past six trading days, it has rallied 33 per cent, as compared to a 1.4 per cent decline in the S&P BSE Sensex. READ MORE

3:18 PM IST “We welcome the RBI announcement to cut the repo rate by 40 bps which will infuse liquidity into the system in such challenging times. Also, the reduction in reverse repo rates will discourage banks to park idle money with RBI and lend further. We appreciate the decision of extending the moratorium by three months thereby providing the much-needed relief to the borrowers. It will help in reducing the repayment pressure and provide necessary time to analyze the cash flow status. We believe RBI measures will aid in restoring the financial health of the economy.”

3:11 PM IST

3:03 PM IST

2:58 PM IST RBI announced measures to provide further relief to borrowers and enhance credit flow including the extension of moratorium period. We reiterate that further relaxations may be needed for greater flexibility to lenders on one-time restructuring. Hasten to add, while this is the crying need of the hour, we must keep an eye on hard-earned gains on the credit culture across all segments. It’s our collective responsibility.   We have been maintaining a relatively high duration in fixed income funds. While structural view remains unchanged, we will take advantage of tactical opportunities as we expect bond market to be in a consolidation mode for the time being. Credit spreads are highly elevated but they also reflect the economic uncertainty and constraints in the financial system. The equity market in the near term will continue to be driven by cues from global markets and the evolution of health crisis and economic situation. Our focus will continue to be on bottom up stock-picking.

2:54 PM IST COMPANY PRICE(rs) CHG(%) MAHINDRA HOLIDAY 155.30 -7.34 M & M FIN. SERV. 126.65 -7.01 HAWKINS COOKERS 4237.00 -6.76 TCI EXPRESS 530.45 -6.76 SHRIRAM TRANS. 537.05 -6.53 » More on Top Losers

2:47 PM IST

2:40 PM IST COMPANY PRICE(rs) 52 WK LOW CHG(%) BAJAJ FIN. 1896.85 1865.50 -4.63 BAJAJ FINSERV 4308.20 4086.90 -5.06 BRIGADE ENTERPR. 92.60 90.70 0.38 C P C L 50.20 49.50 -2.14 CHALET HOTELS 102.60 99.00 -0.82 » More on 52 Week Low

LIVE UPDATES

MARKET COMMENT | Quote by S Ranganathan, Head of Research at LKP Securities

Markets ended in the red ahead of a long weekend as the extension of moratorium on loans by the RBI today weighed heavily on Financials. Select Pivotals like Asian Paints; however, bucked the trend as the street seems to be betting on consumers painting their houses even as it fears that they may not repay their loans.

SECTOR WATCH | Bank stocks decline


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


CLOSING BELL

The S&P BSE Sensex shed 260 points or 0.84 per cent to 30,672.59 levels while NSE's Nifty ended at 9,039, down 67 points or 0.74 per cent. 

Cement stocks in focus; India Cements hits 2-yr high, soars 33% in 6 days

The stock today hit a 2-year high of Rs 134.40, up 6 per cent, on the BSE in an otherwise weak market and was trading at its highest level since May 9, 2018. In the past six trading days, it has rallied 33 per cent, as compared to a 1.4 per cent decline in the S&P BSE Sensex. READ MORE

COMMENT:: George Alexander Muthoot, MD, Muthoot Finance on RBI announcement

“We welcome the RBI announcement to cut the repo rate by 40 bps which will infuse liquidity into the system in such challenging times. Also, the reduction in reverse repo rates will discourage banks to park idle money with RBI and lend further. We appreciate the decision of extending the moratorium by three months thereby providing the much-needed relief to the borrowers. It will help in reducing the repayment pressure and provide necessary time to analyze the cash flow status. We believe RBI measures will aid in restoring the financial health of the economy.”

MARKET UPDATE | Supreme Ind jumps over 7%


HDFC twins contribute the most to today's fall in Sensex


COMMENT:: Navneet Munot, ED & CIO, SBI Mutual Fund

RBI announced measures to provide further relief to borrowers and enhance credit flow including the extension of moratorium period. We reiterate that further relaxations may be needed for greater flexibility to lenders on one-time restructuring. Hasten to add, while this is the crying need of the hour, we must keep an eye on hard-earned gains on the credit culture across all segments. It’s our collective responsibility.
 
We have been maintaining a relatively high duration in fixed income funds. While structural view remains unchanged, we will take advantage of tactical opportunities as we expect bond market to be in a consolidation mode for the time being. Credit spreads are highly elevated but they also reflect the economic uncertainty and constraints in the financial system. The equity market in the near term will continue to be driven by cues from global markets and the evolution of health crisis and economic situation. Our focus will continue to be on bottom up stock-picking.

Top losers on BSE today

COMPANY PRICE(rs) CHG(%)
MAHINDRA HOLIDAY 155.30 -7.34
M & M FIN. SERV. 126.65 -7.01
HAWKINS COOKERS 4237.00 -6.76
TCI EXPRESS 530.45 -6.76
SHRIRAM TRANS. 537.05 -6.53
» More on Top Losers

BUZZING STOCK | Infosys gains 3%


Stocks that hit 52-week low on BSE today

COMPANY PRICE(rs) 52 WK LOW CHG(%)
BAJAJ FIN. 1896.85 1865.50 -4.63
BAJAJ FINSERV 4308.20 4086.90 -5.06
BRIGADE ENTERPR. 92.60 90.70 0.38
C P C L 50.20 49.50 -2.14
CHALET HOTELS 102.60 99.00 -0.82
» More on 52 Week Low

MARCH QUARTER RESULTS | Godrej Industries Q4 revenue up 6.4% YoY at Rs 3,120.7 crore

-- Net profit down 91.3 per cent to Rs 25.9 crore

-- Ebitda down 15.6 per cent to Rs 211.5 crore

-- Ebitda margin narrows to 6.8 per cent from 8.5 per cent

NEWS ALERT | Vistara opens bookings for flights starting May 25: CNBC TV18

-- Company says it will operate reduced network connecting 24 cities over next few weeks

Global Markets check

World stocks took a hit on Friday as China moved to impose a new security law on Hong Kong after last year’s pro-democracy unrest, further straining fast-deteriorating US-China ties.

European shares opened broadly lower , with blue-chip indexes in London, Paris and Frankfurt all down more than 1.5 per cent.
 
That followed a sharp selloff in Asia after China said it would impose new national security legislation on Hong Kong — sparking a warning from U.S. President Donald Trump that Washington would react “very strongly” against an attempt to gain more control over the former British colony.
 
Hong Kong's Hang Seng index .HSI slid more than 5% to a seven-week low, MSCI's broadest index of Asia-Pacific shares outside Japan fell 2.7 per cent. Japan's Nikkei slipped 0.8 per cent, while U.S. stock futures fell almost 1 per cent -- pointing to a weak open for Wall Street.

SBI Cards and Payment Services slips 9%, hits new low since listing

The non-banking finance company's stock was trading at its lowest level since listing on March 16, 2020. It has fallen below its previous low of Rs 501 touched on April 16, 2020. The stock has now fallen 34 per cent against its issue price of Rs 755 per share. READ MORE  


Gloom for savers: How RBI repo rate cut will impact FD investments, savings

— Interest income from FDs is likely to fall further
 
— The rate cut comes as a pain also for senior citizens dependent on interest income from their FD investments
 
After RBI's previous rate cut in March, the country's largest lender State Bank of India had announced a reduction in fixed deposit interest rate by up to 50 bps. The rates were further revised on May 12, 2020.
 
Other major banks have also continued lowering interest rates on fixed deposits. READ MORE  


COMMENT:: Gaurav Dua, Sr VP, Head Capital Market Strategy & Investments, Sharekhan by BNP Paribas

“RBI steps in once again. Post the out of the turn MPC meeting, RBI has cut policy rates by another 40 bps since the macro impact of the prolonged lockdown is much severe than the initial expectations. More importantly, the moratorium period has been extended to by another three months, total six months now, with provision to convert interest during moratorium period into term loan. However, RBI has not announced any relief on the restructuring of loans to address the risk of rising asset quality issues in the banking sector which has come as a disappointment for the equity markets. Along with adverse impact of COVID pandemic the additional concerns related to US-China brinkmanship is creating uncertainties and accordingly, we expect equities to remain volatile with negative bias in the immediate term.”

HDFC near day's low, dips over 5%


MARKET UPDATE | Asian Paints gains nearly 3%


MARKET UPDATE:: Sensex extends losses


Market Holiday on Monday

Stock market will remain closed on Monday, May 25, on account of Id-Ul-Fitr (Ramzan Eid)

COMMENT:: Niranjan Hiranandani, National President- ASSOCHAM on RBI announcement

Measures like the reduction in repo rate by 40 basis points, the extension of term loan moratorium till August 31 is an honest step to support several sectors hit by contraction of economic activity stated ASSOCHAM National president, Dr. Niranjan Hiranandani.
 
“Reserve Banks of India’s (RBI) third presser since the lockdown is a continued effort to increase private consumption and provide liquidity access to all sectors hit by the COVID-19 pandemic. These measures will help revive demand crippled by the lockdown,” he said.
 
According to Dr. Hiranandani, there has been a total collapse in demand in both urban and rural India since March 2020. The continued proactive measures taken by the RBI will help address these issues and revive the economy in the second half of the year, he said.
 
He stated that reducing the repo rate by 40 basis points to 4 per cent will help the banks provide additional liquidity access to all the sectors. “ASSOCHAM welcomes the extension of term loan moratorium till August 31st. The lending institutions are being permitted to restore the margins for working capital to the origin level by March 31, 2021. This is a step in the right direction,” he said.
 
He also stated that the industry body welcomes the announcement by the RBI governor Shaktikanta Das to convert the accumulated interest for the moratorium period into a term loan. “It will also provide some relief as the borrower will not have to immediately repay the accumulated interest on the loan after the moratorium ends,” Dr. Hiranandani said.

COMMENT:: Deepak Jasani's views on KKR's investment in Reliance Jio

The fifth stake sale in Jio Platforms by Reliance Industries will mean a total stake dilution of 17.12% for Rs78,562 cr. This will help Reliance to reach debt-free status soon. A range of diverse marquee investors lining up to take small stakes speaks volumes about the business model and promoters’ capabilities. Ideally,  Reliance may halt after stake sale of upto a max of 24.99% in Jio Platforms over the next few weeks.
 
 

Govt scrutiny on new portfolio investors from China, Hong Kong: Report

India has drafted rules proposing tighter scrutiny of new Foreign Portfolio Investors (FPIs) from China and Hong Kong, three government sources told Reuters. The discussions come weeks after the central government said it will screen all foreign direct investment (FDI) from countries with which it shares a land border, a move it said was aimed at staving off takeovers when asset prices are depressed during the coronavirus pandemic. The Chinese government described the policy as discriminatory. READ MORE 


Europe opens lower


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


COMMENT:: Abhimanyu Sofat, Vice President, Research, IIFL Securities

The commentary of the governor speech underpins the low prospects of a V-shaped recovery. RBI commentary indicates that the stress in the economy on both demand and supply is likely continue. We also believe government should provide subvention on existing loans or bear some cost of the haircut of existing loans. This would ensure more confidence to banks to lend to lower rated entities or individuals.

Markets were expecting a rate cut; onus now on banks to pass on the benefit

As seen earlier as well, the transmission of interest rate cut to the end consumer has been slow. Hence, we need to watch what happens at the ground level. Given the severity of the situation due to Covid-19 pandemic, the timing of rate transmission holds great significance. Companies are facing working capital shortage; hence, there is no point in providing funds after three months. They need money on an immediate basis. The transmission has to be faster than what we have seen earlier. READ MORE  

Ambareesh Baliga, independent market expert (Photo: Kamlesh Pednekar)

NIIT Tech's Rs 337-cr buyback offer to open on May 29; stock surges 9%

Shares of NIIT Technologies surged 9 per cent to Rs 1,573 on the BSE on Friday after the company announced that its Rs 337.4-crore buyback offer will commence from May 29. The IT consulting & software company's stock was trading higher for the fourth straight day. It has rallied 17 per cent during this period. The stock turned ex-date for share buyback on March 11, 2020. READ MORE

Axis Bank, Bajaj Finance, and HDFC top Sensex losers at this point


COMMENT:: Naveen Kulkarni, Chief Investment Officer, Axis Securities

The rate cut announced today will have limited impact in the short term, but it is helpful to revive growth over the longer term. However, the decision to extend the moratorium period by another 3 months is a significant negative for the private banks both in the medium and long term. The impact on the banking sector will be negative

COMMENT :: RBI buttresses earlier position forcefully; economic forecasts conservative

It will be interesting to see how banks react. These have been challenging times for banks. Lending more to firms which are non-functional has higher credit risk. As a result, banks have been shying away so far despite the continuous nudging from the RBI. Also, given that the expected borrowing by the centre and state governments will be higher, there could still be incentive to wait for these securities to invest. READ MORE

Financials tumble as RBI extends moratorium; SBI, Bajaj Fin hit 52-wk low

In March, the central bank had allowed a three-month moratorium on payment of all term loans due between March 1, 2020, and May 31, 2020. This makes it a total of six months moratorium on loan EMIs (equated monthly installment) starting from March 1, 2020. Accordingly, the repayment schedule and all subsequent due dates, as also the tenor for such loans, will be shifted across the board by three months. READ MORE

COMMENT :: Rajat Rajgarhia, MD & CEO, Institutional Equities, Motilal Oswal

RBI continues to support on the Monetary front by doing out of turn MPC meets to cut rates. Lowering the cost of capital is some relief in these times. Moratorium extension was expected, considering the economic activity levels. India would need more measures on a continous basis on both fiscal and monetary front to revive the economy from the current phase of negative growth

COMMENT :: Abhishek Goenka, Founder & CEO, IFA Global

Rate cut and reverse repo rate cuts are moves in the right direction, but risk aversion by banks is exists. Some restructuring of the loans news would have been a step in the right direction which the market was awaiting. Broadly, it may be better for companies but banks may get hit in the short-term

COMMENT :: Shishir Baijal, CMD, Knight Frank India

It would have been a big respite if the long-standing real estate industry demand for a one - time restructuring of loans was allowed along with the measures announced today. The expected contraction of the GDP is worrisome emanating from a significant drop in private consumption. While the RBI has taken steps to boost liquidity, one of the real challenges remains boosting of demand which we hope that subsequent announcements will address

COMMENT :: Suman Chowdhury, Chief Analytical Officer at Acuité Ratings & Research

The loan moratorium has been extended by another 6 months given the protracted lockdown which is likely to continue in some parts of the country beyond the month of May.

More importantly, the interest accrued on the working capital facilities during the moratorium period is proposed to be converted to a funded interest term loan which is payable by end of FY21. This will provide some relief particularly to the MSME and the corporate borrowers who are likely to witness liquidity challenges for an extended period of time. In our opinion, going forward, there may be a need to provide special dispensation for a more comprehensive restructuring of loans at least in some of the relatively vulnerable sectors

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

The RBI’s decision continues to indicate that they remain proactive. With the indication that the growth will be negative, we continue to see space for some further rate cut though the efficacy of rate cuts will progressively be lower.

The extension of the moratorium bodes well. However, broader markets will focus on liquidity measures such as the path of OMO purchases (preferably a calendar) and regulatory measures to ensure both liquidity and solvency concerns are adequately addressed. Also, given the various dislocations that can emerge in the financial sector, markets will be focused on further steps by the RBI to safeguard the banking system (and broader financial system)

NEWS ALERT | Interest accrued during moratorium will be payable in six instalments, starting September: SBI Chairman

-- Aound 20 per cent of SBI borrowers opted for moratorium so far: SBI Chairman

(as per CNBC TV18)

COMMENT :: Joseph Thomas, Head of Research, Emkay Wealth Management

The further cut in the repo rate by the RBI is more or less in line with expectations by majority of the market participants. The cut has been effected considering the fact that there is growing economic and financial stress on account of the pandemic involving all major sectors of economic activity. This would help in bringing down the market rates as also lending rates mostly at the short end of the curve.

The potential reduction in the cost of funds and the extension of moratorium will be supportive of financial stability which is of extreme importance as of today. We expect the rates across the curve to move lower from the current levels ,though on a risk adjusted basis , the short to medium term would hold better value for long term investor portfolios.

In view of the large issues at the primary for the rest of the year from both central and state governments, the likely gains at the long end may come with elevated risks. The fall in the reverse repo rate would serve as a disincentive to banks who hold huge sums of liquidity to look at alternatives including gilts

NEWS ALERT :: RBI's actions will help to revive growth, says SBI chairman Rajnish Kumar

>> RBI has accepted most of the recommendations by IBA

>> Loan moratoriu extension to support cash-flow issue

>> One-time debt restructuring needs deeper analysis; not inclined towards it uncer current situation

State Bank of India hits 52-week low


Promoter pledging spikes in firms belonging to debt-laden groups

The companies of debt-laden business groups saw a spike of 10-20 percentage points in promoter pledging in the March quarter, even as the overall value of shares pledged declined amid the market sell-off. According to an analysis of the data from Capitaline, the value of promoter pledged shares declined 25 per cent from ~2.05 trillion at the end of the December quarter to ~1.54 trillion at March-end. READ MORE

RBI says India GDP will contract in FY21, cuts repo rate by 40 bps to 4%

The Reserve Bank of India (RBI) has decided to reduce the policy repo rate by 40 basis points from 4.4 per cent to 4 per cent. "RBI's Monetary Policy Committee met again from May 20-22. MPC voted to 5:1 majority to reduce the policy repo rate by 40 basis points from 4.4 to 4%," Shaktikanta Das said. Earlier, the RBI governor had announced several measures to ease liquidity pressure in the banking system and to boost the economy from the coronavirus shock, including a sharp 75 basis points rate cut in March. READ MORE

COMMENT :: Deepthi Mathew, Economist, Geojit Financial Services

By cutting the repo rate and reverse repo rate, RBI aims to inject more liquidity into the system. However, more importantly, what is needed is to remove the risk averseness as there is substantial liquidity in the banking sector. The rising food inflation rate could be a challenge to the RBI as it is following the inflation targeting regime. Similarly, the extension of the moratorium would bring in some relief to the borrowers, but it can put pressure on the bank's balance sheet

MARKET UPDATE:: Nifty gives up 9,000; India VIX up 3%


NEWS ALERT :: Maruti Suzuki India partners with Cholamandalam Investment & Fin Company for customised auto retail financing

>>  Maruti Suzuki India Limited today announced a partnership with Cholamandalam Investment & Finance Company Limited (CIFCL), one of the leading Non Banking Financial Companies. The objective of this partnership is to provide customised auto retail financing solutions to retail buyers. The new solution ‘Buy Now Pay Later Offer’’ is aimed to provide customers with easy financing options. 

>> A two-month deferment of EMI will bring advantage to car customers who currently are under resource crunch amidst the COVID-19 pandemic.

>> The ‘Buy Now Pay Later Offer’’ will allow customers to start paying the EMIs after 60 days of loan disbursement.

(Via BSE Filing)

COMMENT :: Sujan Hajra, chief economist and executive director, Anand Rathi

Rate cut of 40 bps is line with expectations as also extension of loan moratorium. The measure to convert the moratorium interest payment into a term loan payable in course of FY21 is the most important announcement. This can reduce NPA, at least in the next 12 month. The additional liquidity measures remain rather muted. The RBI also remains circumspect on growth and inflation outlook

COMMENT :: VK Vijayakumar, chief investment strategist, Geojit Financial Services

RBI, which has been proactive in recent times, has risen to the occasion by advancing the policy meet to cut policy rates by 40bp. Also, the unequivocal statement that monetary policy will continue to be accommodative till growth revives sends positive signals. The fact that the central bank has refrained from giving a GDP growth figure is a reflection of the complexity in giving projections with the present growth models. Extension of the moratorium announced earlier by another 3 months is a relief. A takeaway from the policy announcement is that the stress in the banking sector will continue

MARKET CHECK :: Sensex extends slide; down over 400 pts


Private banks see profit booking


Banking stocks among the worst hit on Friday


MARKET CHECK :: Rate sensitive indices decline


MARKET CHECK :: Sensex tanks 300 pts


Bank stocks hit :: Nifty Bank snapshot


Markets slip

Sensex Heatmap



MARKET CHECK :: Indices slip again as RBI expects GDP growth to contract in FY21


Bandhan Bank slips 6% after business update post Cyclone Amphan

Shares of Bandhan Bank slipped 6.5 per cent to Rs 197 on the BSE on Friday after the private sector lender said its services have been impacted in some areas of West Bengal and Odisha due to Amphan and the cyclone is likely to impact business worth Rs 260 crore. The stock has fallen 11 per cent in the past two trading days, as compared to a 0.4 per cent rise in the S&P BSE Sensex. READ MORE

BUZZING STOCK:: ZEEL jumps over 4%


Public sector banks gain ahead of RBI's press meet


US will not shut down in case of second Covid-19 wave, says Trump

"People say that's a very distinct possibility. It's standard. And we're going to put out the fires. We're not going to close the country. We're going to put out the fires," Trump told reporters when asked if he was concerned about a second wave of Covid-19 during a tour of a Ford manufacturing plant in the state of Michigan, news agency IANS reported. READ MORE

NIIT Tech surges over 3% on buyback proposal

>> Co said its Rs 337.4-crore buyback offer will commence from May 29.


Aviation stocks in focus; govt caps air fares for three months

>> Domestic flights to resume from Monday, May 25


SECTOR ALERT :: Nifty PSU Bank index trades as top gainer on NSE


MARKET CHECK


MARKET CHECK :: Indices pare losses


RIL gains 1% as KKR picks up 2.32% stake for Rs 11,367 cr in Jio Platforms

Again, this deal showcases interest of global investors in Jio Platforms. Further, along with the previous four deals this deal could help RJio in realisation of its digital plans. Over the last month, leading technology investors, such as, Facebook, Silver Lake, Vista, General Atlantic and KKR have announced aggregate investments of Rs 78,562 crore into Jio Platforms. READ MORE

Financials trade mixed ahead of RBI Guv media address

>> PFC, HDFC Bank, Axis Bank, down 1-2 per cent, are top losers on the index

>> Edelweiss, Cholamandalam Finance, SBI, and M&M Fin, up 1-3 per cent, are top gainers
 

Strides Pharma advances 1%

>> Strides Pharma Science has got approval from the Drug Controller General of India (DCGI) to conduct trials of antiviral drug Favipiravir in India, which is considered a potential treatment for Covid-19.
 
>> “We have the approval to conduct human study and we will be starting the trials soon in India,” the Bengaluru-based company said on Thursday.
 

SBI off lows, up nearly 1%


Result Impact | VST Industries jumps over 3%

>> Net profit of VST Industries rose 33.15 per cent to Rs 70.61 crore in the quarter ended March 2020 as against Rs 53.03 crore in the previous year quarter.


RIL holds gains, up 1%


Infosys gains 2% as class suit against co dismissed


Sectoral trends on NSE at open


Sensex Heatmap at Open


Opening Bell | Nifty tests 9,000 level


Opening Bell | Sensex off over 150 pts in early deals


Covid-19 Update


NEWS ALERT :: Infosys says, class action lawsuit filed in US Court against the company has been dismissed


Stocks to watch: RIL, IDFC First Bank, VST Ind, Bajaj Holdings, NIIT Tech

RIL: Reliance Industries Limited (RIL) on Friday announced that KKR will invest Rs 11,367 crore in Jio Platforms. This transaction values Jio Platforms at an equity value of Rs 4.91 trillion and an enterprise value of Rs 5.16 trillion. 
 
Earnings today: A total of 25 companies including Alembic Pharmaceuticals, IDFC First Bank, and UPL, are scheduled to announce their March quarter earnings later in the day. READ MORE

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


Market at Pre-open


Market at Pre-open


NEWS ALERT :: Bank of Japan keeps short-term interest rate unchanged at -0.1%

>> The Bank of Japan decided on Friday to launch a new lending facility that aims to channel more funds to small and midsize businesses suffering from the economic blow of the coronavirus pandemic.
 
>> In an emergency policy meeting, the central bank also extended the deadline for a series of measures it has deployed to combat the virus fallout, including accelerated corporate debt buying, by six months to March 2021.
 
>> As widely expected, the BOJ kept monetary settings unchanged including its short-term interest rate target of -0.1% and a pledge to guide the 10-year government bond yield around 0%.

(Via Reuters)

NEWS ALERT :: China drops 2020 GDP target amid Covid-19 uncertainty

>> China omitted a 2020 economic growth target for the first time and pledged government support for the economy in Premier Li Keqiang’s work report on Friday, launching the country’s annual parliament meeting.

>> China is targeting a 2020 budget deficit of at least 3.6% of GDP, above last year’s 2.8%, and fixed the quota on local-government special bond issuance at 3.75 trillion yuan ($527 billion), up from 2.15 trillion yuan, according to Li’s report.

>> China will also issue 1 trillion yuan in special treasury bonds for the first time this year.

(Via Reuters)

AIF investments in Mauritius, Singapore and Honk Kong under Sebi lens

The Securities and Exchange Board of India (Sebi) is scrutinising overseas investments made by alternative investment funds (AIFs), especially in regions such as Mauritius, Singapore, and Hong Kong. The capital market regulator has even turned down applications proposing to make substantial investments outside of India, said two persons in the know. READ MORE

Here's a derivative strategy on Glenmark Pharma by HDFC Securities

Buy Glenmark Future at Rs 349
 
Target: Rs 360
 
Stop loss: Rs 343
 
Lot Size: 1,400
 
Rationale:
 
-- Long build-up was seen in the Glenmark Futures yesterday where we have seen 3 per cent(Prov) rise in the Open Interest with price moving up by 1 per cent. READ MORE

Major resistance for Nifty is placed at around 9,300 levels: Nilesh Jain

SELL NIFTY | TARGET: 8,800 | STOP LOSS: 9,300
 
The Nifty index has formed a shooting star candlestick pattern on the daily chart which is considered as a bearish reversal candle. Earlier, Nifty provided breakdown from its head and shoulders pattern and now it has retested its neckline again. The major resistance is placed at around 9300 levels. Now, as long as Nifty trades below these levels, every bounce should be utilized as a selling opportunity. The momentum indicator RSI is making a lower top and lower bottom formation which shows that Nifty is losing the strength and we may see further selling pressure going forward. 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


NEWS ALERT :: RBI Guv Shaktikanta Das to address media at 10 am today

In Jio's 5th big deal in a month, KKR picks up 2.32% stake for Rs 11,367 cr

This is KKR’s largest investment in Asia and will translate into a 2.32 per cent equity stake in Jio Platforms on a fully diluted basis.
 
Over the last month, leading technology investors, such as, Facebook, Silver Lake, Vista, General Atlantic and KKR have announced aggregate investments of Rs 78,562 crore into Jio Platforms. READ MORE

SGX Nifty update

>> At 8:16 am, the index was at 9,036 level, down 30.20 points or 0.33 per cent.

Hong Kong leads Asian shares lower as Beijing readies new security law

Source: Reuters


Wall Street finishes down as U.S.-China tensions heighten trade deal worries

Source: Reuters


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