Markets ignore geopolitical tension, Sensex ends 376 points higher

Topics Markets | Coronavirus | Tata Motors

Traders monitor BSE index at a brokerage firm in Mumbai | PTI
Benchmark indices ended Tuesday's volatile session with over 1 per cent gain but off the day's top as investors booked profits after the Indian Army said an officer and two soldiers were killed in Galwan Valley in eastern Ladakh on Monday night during a violent face off with the Chinese troops.

However, by the session's end, the Sensex was back in the green and closed 376 points higher at 33,605 while the Nifty50 index ended the session at 9,914. The Sensex hit an intra-day high of 34,022 and a low of 32,953 as volatility shot up 8 per cent before cooling off at the closing hours. The HDFC twins (both up 4%) were the top Sensex gainers while Axis Bank and Tech Mahindra (both down 2%) were the main laggards. In the Sensex pack, 15 stocks advanced while as many declined.

The Nifty sectoral indices ended mixed. Nifty Financial Services index, up 2.7 per cent, was the top gainer whille Nifty PSU Bank index, down 0.9 per cent, bled the most.

The broader markets underperformed the benchmarks. The S&P BSE MidCap closed 0.3 per cent higher while the S&P BSE SmallCap index was flat.

Buzzing stocks

Shares of Ramco Systems were locked in the 10 per cent upper circuit band for the fifth straight day, at Rs 146.70 on the National Stock Exchange (NSE).

Shares of Tata Motors ended the session 5.67 per cent lower at Rs 94.75 on the BSE after posting a consolidated net loss of Rs 9,863.73 crore in the fourth quarter ended March 31 (Q4FY20). READ MORE

Global markets

The global stocks rally was back on track on Tuesday, with more support from the Federal Reserve and the Bank of Japan helping end a bumpy few days for financial markets.

A nearly 5 per cent jump by Japan’s Nikkei ensured the best day for Asian equities since late March and almost 2 per cent rises from London, Paris and Frankfurt got Europe off to a fast start.

Oil prices also steadied in commodity markets as lingering concerns over fuel demand from the resurgence of new coronavirus infections were cushioned by hopes of further cuts in crude supplies. Brent crude rose 1.5 per cent to $40.34 per barrel.


3:46 PM IST

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3:38 PM IST

3:37 PM IST

3:35 PM IST >> The S&P BSE Sensex settled the day at 33,605.22 level, up 376.42 points or 1.13 per cent >> Nifty50 closed around 9,900-mark, at 9,914 level, up100.30 point or 1.02 per cent.  >> In the broader markets, the S&P BSE MidCap index ended at 12,495.37, up 40.42 points or 0.32 per cent, while the S&P BSE SmallCap index was at 11,849.62, up 4.77 points or 0.04 per cent.

3:25 PM IST

3:17 PM IST The gross advance tax collection fell 31 per cent in the first quarter of the current fiscal, with advance corporation tax mop-up declining 79 per cent, an official said on Tuesday. "Gross direct tax collection fell a full 31 per cent to Rs 1,37,825 crore in the first quarter of FY21, down from Rs 1,99,755 crore in the June 2019 quarter," an income tax official told PTI. READ MORE

3:17 PM IST

3:08 PM IST COMPANY DAY'S LOW(RS) DAY'S HIGH(RS) LATEST(RS) RISE(%) HATHWAY CABLE 27.50 32.75 32.30 17.45 ZENSAR TECH. 116.85 136.90 136.90 17.16 SWAN ENERGY 114.50 131.80 131.50 14.85 ALKYL AMINES 1825.00 2150.00 2091.90 14.62 Click here for the full list

2:57 PM IST

2:47 PM IST The study considers point-to-point returns for different periods and total return index for both categories. For PMS, post-fees returns are considered for 133 strategies for one year, 81 strategies for three years, 49 strategies for five years, and 25 strategies for 10-year period. For MFs, 401, 294, 253, and 201 schemes are considered for the respective periods based on the data by Association of Mutual Funds in India. READ MORE

2:38 PM IST

LIVE UPDATES

MARKET STATS


MARKET UPDATE :: Nifty gainers in today's session


Sectoral trends on NSE at Close


Sensex Heatmap at Close


Closing Bell

>> The S&P BSE Sensex settled the day at 33,605.22 level, up 376.42 points or 1.13 per cent

>> Nifty50 closed around 9,900-mark, at 9,914 level, up100.30 point or 1.02 per cent. 

>> In the broader markets, the S&P BSE MidCap index ended at 12,495.37, up 40.42 points or 0.32 per cent, while the S&P BSE SmallCap index was at 11,849.62, up 4.77 points or 0.04 per cent.

Index contributors at this hour


Advance tax collection falls 31% in Q1, corporation tax mop-up down 79%

The gross advance tax collection fell 31 per cent in the first quarter of the current fiscal, with advance corporation tax mop-up declining 79 per cent, an official said on Tuesday. "Gross direct tax collection fell a full 31 per cent to Rs 1,37,825 crore in the first quarter of FY21, down from Rs 1,99,755 crore in the June 2019 quarter," an income tax official told PTI. READ MORE

MARKET UPDATE :: Sensex up 400 pts


Recovery from intra-day lows in today's session

COMPANY DAY'S LOW(RS) DAY'S HIGH(RS) LATEST(RS) RISE(%)
HATHWAY CABLE 27.50 32.75 32.30 17.45
ZENSAR TECH. 116.85 136.90 136.90 17.16
SWAN ENERGY 114.50 131.80 131.50 14.85
ALKYL AMINES 1825.00 2150.00 2091.90 14.62
Click here for the full list

Nifty MNC index slips 0.28%


91 of 133 PMS strategies beat benchmarks in one year, shows data

The study considers point-to-point returns for different periods and total return index for both categories. For PMS, post-fees returns are considered for 133 strategies for one year, 81 strategies for three years, 49 strategies for five years, and 25 strategies for 10-year period. For MFs, 401, 294, 253, and 201 schemes are considered for the respective periods based on the data by Association of Mutual Funds in India. READ MORE

MARKET UPDATE:: Sensex reclaims 33,500 after swift up move


Bank of Japan keeps policy steady, to pump $1 trn to combat health crisis

The Bank of Japan kept monetary policy steady on Tuesday and stuck to its view that the economy will gradually recover from the damage caused by the coronavirus pandemic, signalling that it has taken sufficient steps for now. As widely expected, the central bank maintained its pledge to guide short-term interest rates at -0.1% and the 10-year government bond yield around 0% by a 8-1 vote. READ MORE

Pralay Mondal quits Axis Bank; stock falls 11% in intra-day trade

Shares of Axis Bank has dipped 8 per cent to Rs 360 on the BSE in intra-day trade, falling 11 per cent from its opening level on Tuesday after the lender informed exchanges that its executive director Pralay Mondal has cited pursuing other career opportunities and tendered his resignation. Mondal joined Axis Bank in April 2019. READ MORE

Earnings Alert | Ipca Labs Q4

>> Net profit at Rs 83 crore

>> Revenue at Rs 1,074 crore

>> EBITDA at Rs 168.5 crore; margin at 15.7%


Rupee Closing

Rupee ends weaker at 76.21 per US dollar vs Monday's close of 76.03/$

MARKET CHECK :: Indices volatile; Sensex up 140 pts


India VIX surges 8%


NEWS ALERT :: Indo-China border tension trigger sell-off

MARKET CHECK :: Indices in the red


What makes Morgan Stanley, Goldman Sachs, CLSA bullish on RIL

The recent rally has been fuelled by the Mukesh Ambani-controlled firm’s ability to garner 10 back-to-back foreign investments in its subsidiary, Jio Platforms, for a whopping Rs 1.04 trillion. Till June 13, Jio Platforms has raised a total of Rs 104,326.95 crore in 10 deals with leading global investors – Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton.
 
But the rally in the stock price may not be over just yet. According to Morgan Stanley, multiple triggers – asset sales, pickup in energy cash flows, increased traction in omni-channel retail and rise in telecom average revenue per user (ARPUs) – could further drive the stock. READ MORE

Stock of this kitchen and dining ware manufacturer has zoomed 175% in June

The Ministry of Finance had recently proposed to impose basic customs duty (BCD) on solar cell and module imports to encourage domestic manufacturing. “Although the news does not pertain directly to imposition of custom duty on glass, it would have a direct bearing on increased production of Photo Voltaic modules in India, which would lead to a corresponding increase in demand for solar glass in due course,” Borosil Renewables said on June 10.
 
This may be the probable reason for increase in trading volume of the share, the company said on clarification to stock exchange on sudden increase in volume and price of security. READ MORE

Europe opens higher

(Source: Reuters)


Telecom stocks trade lower in an otherwise firm market

COMPANY LATEST(rs) CHG(%)
VODAFONE IDEA 9.68 -4.54
BHARTI AIRTEL 548.55 -0.42
TEJAS NETWORKS 49.00 -2.39
» More

Hindalco: Tiding well over Covid-led disruption with tight cost control

The strong performance of Hindalco's India business, despite lockdown and weak base metal prices, was a positive surprise in the March 2020 quarter (Q4). The performance of Hindalco, a global producer of aluminium and copper, was boosted by better-than-expected volumes and cost efficiencies that supported profitability of domestic operations. READ MORE


BUZZING STOCK:: Sensex erases 400 points from day's top


BUZZING STOCK:: Sensex erases 400 points from day's top


Stocks that hit 52-week high on BSE today

COMPANY PRICE(rs) 52 WK HIGH CHG(%)
ADANI GREEN 363.40 363.40 5.00
ALEMBIC PHARMA 927.45 943.00 4.21
ASTRAZENECA PHAR 3527.00 3562.50 2.83
BAYER CROP SCI. 5704.00 5714.00 4.00
DHANUKA AGRITECH 738.00 741.55 7.02
» More on 52 Week High

HDFC twins top Sensex gainers at this hour


Vaibhav Global, Caplin Point: 5 midcap stocks that can rise 10% from here

Alembic Pharmaceuticals Ltd (APLLTD): The medium-term outlook turned bullish the moment this counter conquered Rs 800 level decisively. The downside remains protected given the strong support at Rs 730 levels. The immediate support comes at Rs 825 on closing basis with trend indicating a rally towards Rs 980 and Rs 1025 levels. READ MORE

IIFL on Aarti Industries

Although the cancellation of Aarti’s 10-year contract for a herbicide intermediate does not impact FY21-22ii EPS (due to contractual guarantees by the customer), we nevertheless consider this development a negative, as it: 1) reduces earnings visibility beyond FY22, and 2) is likely to lead to some erosion of project NPV.

We believe marketing the intermediate to third parties may prove challenging, given their backward integration. The risk of a ban on dicamba is also real. More generally, we consider this development a warning against the rich valuations being assigned to CRAMS companies such as PI.

Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 10.09 -0.49
TATA MOTORS 96.60 -3.83
RELIANCE POWER 2.83 4.81
FORTIS HEALTH. 124.95 4.74
B H E L 29.40 1.03
» More on Most Active Volume

Agri stocks rally; Bayer Crop, Dhanuka Agritech hit all-time highs

Bayer Cropscience, Dhanuka Agritech, PI Industries, and Rallis India hit their respective lifetime highs after rallying up to 5 per cent each. In the past one month, the share prices of Dhanuka Agritech, Sharda Cropchem, Aster Lifesciences, Bayer Cropscience, Insecticides India, Rallis India, and UPL have rallied between 11 per cent and 44 per cent. In comparison, the S&P BSE Sensex was up 9 per cent during the period. READ MORE

Sebi board to discuss Franklin Templeton wind-up move, MF liquidity

The capital markets regulator, Securities and Exchange Board of India (Sebi), is likely to discuss legal issues concerning refunding investors of Franklin Templeton Mutual Fund (MF) and the status of the special audit against the fund house during its board meeting on June 25.
 
The regulator could also apprise the board of details on the extent of redemption mutual fund houses are facing and the liquidity position of their debt schemes, said two persons in know.  READ MORE

Metal stocks shine amid strong global cues; MOIL, Jindal Steel up 7% each


Lower share of delivery sales leaves Westlife's investors with bitter taste

There is little doubt that the lockdown following the Covid-19 outbreak has changed consumer behaviour, weakening sales of many sectors, including quick-service restaurants (QSRs).
 
Among QSRs, the pressure is higher on players that earn less revenue from delivery-channel sales, as is seen in Westlife Development’s (Westlife’s) March 2020 quarter (Q4) results, announced last Thursday.  READ MORE

NEWS ALERT :: Alembic Pharma receives USFDA final nod for Deferasirox tablets

>>  The Company has received final approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Deferasirox Tablets, 180 mg.

>> The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD), Jadenu Tablets, 180 mg, of Novartis Pharmaceuticals Corporation (Novartis).

Alert: Deferasirox tablets are indicated for treatment of Chronic Iron Overload Due to Blood Transfusions (Transfusional Iron Overload) and for treatment of Chronic Iron Overload in Non-Transfusion-Dependent Thalassemia Syndromes.

(Via BSE filing)

Tata Motors slips 4% after reporting Rs 9,864 cr net loss in March quarter

Shares of Tata Motors dipped 4 per cent to Rs 96.30 on the BSE after posting a consolidated net loss of Rs 9,863.73 crore in the fourth quarter ended March 31 (Q4FY20). The company's revenue from operations stood at Rs 62,492.96 crore in the quarter, compared with Rs 86,422.33 crore in the corresponding quarter last year, with the coronavirus-induced lockdown taking a toll on British arm JLR as well as its domestic business. READ MORE

 

Ramco Systems zooms 91% in 5 days after investor Vijay Kedia picks 1% stake

On June 10, 2020, ace investor Vijay Kishanlal Kedia purchased 339,843 shares, representing 1.1 per cent of the total equity of Ramco Systems, for about Rs 3 crore. He bought these shares at an average price of Rs 87.82 per share through a block deal on the NSE, the exchange data shows. READ MORE

Vaibhav Global, Caplin Point: 5 midcap stocks that can rise 10% from here

Alembic Pharmaceuticals Ltd (APLLTD): The medium-term outlook turned bullish the moment this counter conquered Rs 800 level decisively. The downside remains protected given the strong support at Rs 730 levels. The immediate support comes at Rs 825 on closing basis with trend indicating a rally towards Rs 980 and Rs 1025 levels. The Relative Strength Index (RSI) has fallen below the oversold condition, yet the price is not showing that severe correction. This indicates an inherent strength in the stock. With an inverse head and shoulder on the RSI, the stock may be ready for the next leg of the upside. READ MORE

Rupee Opening

Rupee opens stronger at 75.87 per US dollar vs Monday's close of 76.03/$

Can Fin Homes surges 11% as Q4 net profit grows 36% YoY to Rs 91 crore

Shares of Can Fin Homes surged 11 per cent to Rs 339 on the BSE on Tuesday after the company reported a 35.84 per cent year on year (YoY) rise in its net profit to Rs 90.91 crore for the quarter ended March 2020 (Q4FY20), on the back of higher interest income. The housing finance arm of Canara Bank had posted a net profit of Rs 66.92 crore in the year-ago quarter. READ MORE

Morgan Stanley economists double down on V-shape global recovery

The global economy is in a new expansion cycle and output will return to pre-coronavirus crisis levels by the fourth quarter, according to Morgan Stanley economists.
 
“We have greater confidence in our call for a V-shaped recovery, given recent upside surprises in growth data and policy action,” economists led by Chetan Ahya wrote in a mid-year outlook research note. READ MORE

 

Bayer CropScience up 3%

>> Bayer CropScience has partnered with agri business division of ITC to extend the reach of its crop protection products through ITC's e-Choupal 4.0 platform


Panacea Biotec advances 2%

>> Co hopes to launch first phase of human trial of Covid-19 drug by October


InterGlobe Aviation gains 2% as co plans to fly at 70% capacity by year-end


Result Impact | Can Fin Homes leaps 11%

>> Can Fin Homes, on Monday, reported a 35.84 per cent YoY rise in its net profit to Rs 90.91 crore for the March 2020 quarter, on the back of higher interest income.
 

Tata Motors recovers from day's low, up 1.5%


On a high | Reliance Industries hits fresh peak


ICICI Bank surges 4.5%


Sectoral trends on NSE at open


Sensex Heatmap at Open


Opening Bell | Nifty reclaims 10K


Opening Bell | Sensex surges 700 pts


Aviation stocks in focus; ATF price hiked

FUEL PRICE UPDATE

Nifty outlook & stock calls by Anand Rathi

SELL SIEMENS | TARGET: Rs 995 | STOP LOSS: Rs 1,080
 
The stock is making a lower high and lower low formation on the daily chart and it has breached its short term 21 DMA which is currently placed near 1,075 levels. The momentum oscillator MACD has also provided fresh sell crossover on the daily chart. Based on the above rationale, we may see some selling pressure. READ MORE

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


Market at Pre-open


Market at Pre-open


Nomura on Affle India

We reiterate our Buy rating with a lower target price of Rs 1,785 (Rs 1,900 previously), still based on 35x average of FY22-23F EPS (now INR51). Our revenue estimates are up 1-4%, and our EBIDTA margin estimates are lower by ~250bp, led by acquisition and the impact from COVID-19, and our EPS is lower by ~20% over FY21-22F. Downside risks include: 1) technological disruptions and 2) inability to turn around acquisitions.

Motilal Oswal Securities on Tata Motors

We lower our FY21/FY22 EBITDA by 18%/0% to factor near-term volume weakness, Fx movement, and the impact of COVID-19 on cost structures in both JLR and the India business. As a result, both FY21/FY22 would witness PAT loss. The stock trades at 2.9x FY22 EV/EBITDA and 0.8x P/BV. Maintain Buy, with target price of Rs 122 (Jun’22-based SOTP).

COMMENT :: Samir Arora of Helios Capital

Covid-19 impact: Dividend payout by IT firms likely to dip further in FY21

Dividend payout by information technology (IT) services firms in the ongoing financial year is likely to witness a dip as compared to previous years, as companies are aggressively looking at conserving cash to tide over Covid-induced slowdown. Possible decline in free cash flow because of fall in net profit, additional expenses due to the Covid-19 pandemic, and cash conservation for prospective acquisitions are seen as key factors for this likely scenario. READ MORE

dividend, income, money

Edelweiss on Havells India

Demand weakness—particularly in real estate-heavy segments such as switchgears and wires—impacted growth in FY20 as the lockdown led to a loss of typically lumpy revenue stream in the last few days of March . Despite gross margin benefits (low input price), RoCE/RoEs fell sharply by 270/600bps led by a drop in overall revenue, negative operating leverage and recent capacity addition (Lloyd business).
 
While Havells’s dominant channel-based business model would help it sustain the ‘largest FMEG brand’ tag, in our view, subdued demand particularly in real estate-driven segments and challenges in scaling up Lloyd will pose risk to growth, potentially capping its valuation (already rich at 44x FY22E EPS).

Centrum on Dhanuka Agritech

The stock currently trades at 15.3x FY22E EPS, 11.6x EV/EBITDA and 3.3x P/BV. The stock has reflected the improved performance over FY20, with a 87% increase seen in the last 3 months alone. However, looking at the multiples in the context of higher EPS growth (revised up by 27.1/29.3% for FY21/22E), we believe that there is more momentum in store. The stock has traded at an average PEG multiple of 2.3x (last 6-year average excluding FY19 which was negative) and our target price of Rs850/sh is based off a 20x FY22E EPS, implying a PEG of only 1x – this is 31% upside from CMP. BUY

Anand Rathi on Wim Plast

The lockdown hurt Wim Plast’s Q4 results. However, a strong 20% EBITDA margin, its net-cash status and FCFs were positives. While furniture will take longer to recover, air coolers (FY20 sales up 12% y/y) may see good growth owing to the distribution-network expansion and greater brand visibility, which will keep Cello a meaningful player in the next 3-5 years (key to a re-rating).

At ~8.3x FY22e P/E, we see good potential in the stock from a long-term perspective, given the company’s strong balance sheet and credible management. We maintain our Buy recommendation, with a lower target of Rs 491. Recovery in furniture and profitable growth in air-coolers are key monitorables.

STOCKS TO WATCH

Earnings today: Hindustan Petroleum, Ipca Labs, and NMDC are among the 25 companies slated to report their March quarter results today.

Panacea Biotec's managing director Rajesh Jain has claimed that the firm expects its Covid-19 vaccine to enter phase-1 of human trial by October.  
 
The retail portion of SBI Life Insurance Company’s offer for sale garnered just 16 per cent subscription. However, the OFS witnessed twice demand as against the shares on offer from institutional investors. 
 
Axis Bank will also be in focus as the bank's executive director and retail banking head, Pralay Mondal, has quit within 14 months of joining.
 
Tata Motors may cut about 1,100 temporary jobs at Jaguar Land Rover. Further, the company is cutting capital expenditure at JLR by 40 per cent to £2.5 billion in FY21. It reported a pre-tax loss of Rs 9,313 crore, as compared to profit before tax of Rs 1,265 crore in the year-ago quarter. It's consolidated net loss was Rs 9,894 crore.

JK Tyre: K Tyre and Industries on Monday reported a consolidated net loss of Rs 52.78 crore for the fourth quarter ended March 31, 2020. The company had posted a net profit of Rs 33.66 crore for January-March period of 2018-19. Revenue from operations declined to Rs 1,794.76 crore for the fourth quarter as against Rs 2,703.71 crore in the same period of 2018-19, JK Tyre and Industries said in a regulatory filing.
 
 

COMMENT :: Jefferies on markets & economy

With nearly all COVID ICU beds full in Mumbai and 2/3rds in Delhi and TN, the medical infrastructure is stressed in these locations. The TN govt. has re-imposed a lockdown in Chennai and 3 other districts from 19-30 June. Delhi has resisted a new lockdown. Karnataka has, meanwhile, made a 14-day quarantine compulsory for travelers from the states of Delhi and TN. Re-lockdowns are a significant risk for a smooth economic recovery with India still not fully opened up

Bulk deals on NSE as on Monday

Bulk deals on BSE as on Monday

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


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

>> The Bank of Japan kept monetary policy steady on Tuesday and stuck to its view that the economy will gradually recover from the damage caused by the coronavirus pandemic, signalling that it has taken sufficient steps for now.
 
>> As widely expected, the central bank maintained its pledge to guide short-term interest rates at -0.1% and the 10-year government bond yield around 0% by a 8-1 vote.

>> The BOJ said it expects to pump around 110 trillion yen ($1 trillion) to the economy via its market operations and lending facilities aimed at combating the hit from the health crisis.

(Source: Reuters)

Rupee check

Source: Bloomberg


Oil check

>> Crude oil futures erased gains and fell amid persistent doubts over whether supply cuts would be enough to reduce an oil glut.
 
>> US crude fell 1.2% to $36.68 a barrel. Brent crude declined by 1.2% to $39.23 per barrel

(Source: Reuters)

SGX Nifty indicates positive start for indices

>> At 8:21 am, the index was at 10,040 level, up 244 points or 2.44 per cent.

Asian shares jump, yields rise as Fed readies corp bond buying

Source: Reuters


US stocks recover on Fed debt program

Source: Reuters


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