NSE's Nifty ended at 9,973, up 71 points or 0.72 per cent.
It was a topsy-turvy session for the domestic equity market on Friday. After tumbling over 3.5 per cent in the early deals, the benchmark indices made a sharp comeback to end 0.7 per cent higher.
The S&P BSE Sensex witnessed 1,508-point swing during the day before settling at 33,781 points, up 243 points or 0.72 per cent. Of 30 constituents, 17 advanced and 13 declined.
NSE's Nifty ended at 9,973, up 71 points or 0.72 per cent.
On a weekly basis, Sensex slipped 1.47 per cent while Nifty shed 1.66 per cent.
Volatility index, India VIX, jumped nearly 4 per cent to 30.82 levels.
Among individual stocks, Mahindra & Mahindra (M&M) ended over 7 per cent higher at Rs 508.70 apiece on the BSE after the company reported a consolidated loss of Rs 3,255 crore for the March quarter of 2019-20 (Q4FY20) , which it attributed to "impairment provision for certain long-term investments". READ MORE
Financial stocks bounced back 13 per cent from the day’s low on the BSE after the Supreme Court gave three days to Finance Ministry, Reserve Bank of India (RBI) to decide on moratorium period interest. READ MORE
Reliance Industries (RIL) ended over 3 per cent higher at Rs 1,588.80. Its partly paid-up rights shares are set to debut on the bourses on Monday, June 15.
On the sectoral front, barring IT and media stocks, all the other sectoral indices on the NSE ended in the green. The Nifty IT index declined nearly 1.5 per cent to 14,403 levels after media reports said the US President Donald Trump is considering suspending a number of employment visas including the H-1B, most sought-after among Indian IT professionals, in view of the massive unemployment in America due to the coronavirus pandemic.
In the broader market, the Nifty SmallCap 100 index ended at 4,393.50, down 0.11 per cent and the Nifty Midcap 100 index rallied over a per cent to 14,339.35 points.
A slump in global shares extended to its fourth day running on Friday and oil tumbled over growing concerns that a resurgence of coronavirus infections could stunt the pace of recovery from lockdowns.
MSCI’s 49-country index of world stocks slipped 0.5 per cent to an 11-day low, while MSCI’s broadest index of Asia-Pacific shares outside Japan sank 1.3 per cent.
In Europe, the STOXX 600 Index swung between gains and losses after opening and was last down 0.6 per cent, extending a run of losses to five days in a row.
US stock futures, the S&P 500 e-minis, rose 1.0 per cent, but that did little to help sentiment.
In commodities, oil futures slumped for a second consecutive trading session due to worries about weak global energy demand.
MARKET COMMENT:: Vinod Nair, Head of Research at Geojit Financial Services
"A volatile day came to an end with the Nifty recovering around 300 pts from the day’s low. The major contributor to this gain was Reliance Industries which was also supported by technical bullishness. Markets tracked the positive opening in the European markets, post the sell-off seen yesterday. Except for IT, which was impacted by H-1B visa news, all the other sectors traded positive. Broader markets also participated in today’s gains. Currently, Markets seem to be driven by global cues and stock-specific action will be the norm."
SECTOR WATCH:: Nifty IT index slips nearly 1.5%
MARKET AT CLOSE:: Top gainers and losers on the S&P BSE Sensex
The S&P BSE Sensex rallied 243 points or 0.72 per cent higher at 33,781 while NSE's Nifty ended at 9,973, up 71 points or 0.72 per cent.
MARKET UPDATE:: Top 5 gainers on the BSE at this hour
BUZZING STOCK:: M&M jumps 7% post Q4 nos
BUZZING STOCK:: Bajaj Finance recovers 10% from day's low
Tata Power sells shipping assets for $212.76 mn as it seeks to pare debt
The company said, sale of these assets, is part of the company’s long-term plan to reduce debt and raise funds for future growth plans. Tata Power’s net debt as of March 2020 was at Rs 43,578 crore.
“Trust Energy Resources (TERPL), a wholly-owned subsidiary of Tata Power has completed signing of definitive agreements on June 11, 2020 with Oldendorff Carriers GmbH & Co KG, Germany,” the company said in its statement to BSE. READ MORE
ALERT :: Markets stage sharp recovery; Sensex up 200 pts
RIL recovers 6% from day's low; rights shares to list on June 15
The company achieved successful closure of India’s largest-ever rights issue of Rs 53,124.20 crore. It was subscribed approximately 1.59 times, cumulating to an overall commitment of over Rs 84,000 crore.
“The rights issue saw a huge investor interest, including from lakhs of small investors and thousands of institutional investors, both Indian and foreign. The public portion of the Rights issue was subscribed 1.22 times,” RIL said in a press release on June 3. READ MORE
NEWS ALERT :: Rumours of p'ship with Moderna Inc for Covid-19 drug false, baseless, clarifies Marksans Pharma
Netflix in talks with RIL; to source Indian content from Viacom18: Report
Under the partnership, Network18 affiliates - which include its joint venture with ViacomCBS, Viacom18 - would create shows for Netflix to help the US firm expand offerings in India, where it competes against the video streaming services of Amazon.com Inc and Walt Disney Co. READ MORE
STOCK ALERT :: M&M erases losses, up 3% post Q4 result
MARKET CHECK :: Nifty tops 9,900-mark after hitting intra-day low of 9,544.35
MARKET CHECK :: Indices turn positive
M&M reports Rs 3,255 crore loss in Q4FY20 on one-time impairment provisions
The company said profit after tax (PAT) was primarily impacted due to write down of investment in Ssangyong and some other international subsidiaries. It said it was re-examining the business outlook of other International subsidiaries, "in view of the current environment, to decide on future capital allocation". READ MORE
ALERT :: Dow Jones Futures up over 450 pts
Sensex Heatmap :: Index now down 50 pts; Bajaj Fin top gainer, ONGC top laggard
Rupee closes weaker at 75.84 per US dollar vs Thursday's close of 75.78/$
MARKET CHECK :: Sensex recovers 1,020 pts from day's low
Foreign portfolio investors to pick up $300-million stake in YES Bank
A group of US-based foreign portfolio investors (FPIs) is looking to pick up a stake worth $300 million in YES Bank by investing in its forthcoming share sale via the structured, unsponsored American Depository Receipts (ADR) route. The FPIs are in advanced talks with an Indian bank to act as a custodian. READ MORE
MARKET CHECK :: Sensex 900 pts off low
Earnings Alert | M&M + MVML Q4
>> Net loss at Rs 3,255 cr
>> One-time loss at Rs 3,578 cr
>> Revenue at Rs 9,005 cr
>> EBITDA at Rs 1,227.4 cr, margin 13.6%
BROKERAGE VIEW:: Edelweiss Securities on Engineering and Capital Goods
How soon the government extend support to revive core infra projects is anybody’s guess. Inputs from larger and diversified players such as L&T, KEC and Kalpataru suggest their prime focus is to: i) attract/retain as many contractual labourers as possible; and ii) maintain higher-than-normal liquidity to survive/face current challenges as payment from PSU clients/states has dried. In our view, while complete and immediate replenishment of liquidity/labour is unlikely, FY21E earnings will have to bear the extra burden of cost/working capital, which may even spur sector consolidation and redirect business flow towards players with stronger balance sheets and execution capabilities.
Asian Paints recovers from day's low, top Sensex gainer at this hour
Bharat at India Inc's rescue: Green shoots in villages lead demand recharge
A major indicator of farm mood is manifest in tractor sales for the month of May. Domestic tractor sales saw an increase of around 5 per cent, according to data from the industry. Last year, in the month of May, domestic tractor sales was about 58,000, which stood at 61,000 last month. The primary reason is a good crop production. READ MORE
Tractor sales, often considered a proxy of the rural economy, have been muted since December
Revised Wockhardt deal boosts prospects of Dr Reddy's India business
Dr Reddy’s shares scaled their 52-week high on Wednesday, and continue to trade firm. With the pharma major completing its acquisition of 62 brands run by Wockhardt in India — at a lower-than-expected valuation — investor sentiment received a lift. READ MORE
Europe opens mixed
15-yr period to pay AGR dues important for Voda Idea's survival: Analysts
Telcos can technically argue that 20 years is reasonable as it is the same period as their licenses / spectrum right-of-use. Our working shows the annual payment for Bharti and Vodafone Idea in case of amount pending to be payable in five years is Rs 6,500 crore and Rs 12,900 crore; in case of 10 years, it is Rs 3,900 crore and Rs 7,700 crore; and in case of 15 years, it is Rs 3,000 crore and Rs 6,000 crore, respectively. Anything less than 15 years would significantly curtail the ability of VIL to meet these obligations, said ICICI Securities. READ MORE
NEWS ALERT | Tata Power arm completes sale of 3 capesized ships to German company for $213 million: Exchange filing
-- Sale proceeds will be used for reducing debt
Eicher Motors skids up to 6%, recovers later ahead of March quarter results
The stock, however, recovered later and at 11:45 am, it was trading 1 per cent lower at 16,252.90 levels. In comparison, the benchmark S&P BSE Sensex was trading over 1 per cent lower at 33,113.63 levels. Eicher Motors had a hit a 52-week high of Rs 23,427.75 on November 26, 2019 while it declined to a 52-week low of Rs 12,460, on April 7 this year. READ MORE
GST Council meet: FM Sitharaman to soon hold a press conference on the outcome of the meet
Dhanuka Agritech up for 4th straight day, hits 52-wk high on good Q4 nos
Shares of Dhanuka Agritech were trading higher for the fourth straight day on Friday, hitting a new high of Rs 667, up 4 per cent on the BSE in an otherwise weak market after reporting healthy numbers for the quarter ended March 2020 (Q4FY20). In the past four trading days, the stock of the agrochemical company has rallied 15 per cent, as compared to a 3.9 per cent decline in the S&P BSE Sensex. READ MORE
These two stocks have doubled investor wealth in less than 3 months
Shares of skin and hair care solution company Kaya and real estate firm Prozone Intu Properties have seen their prices more than doubled since April after ace investor Radhakishan Shivkishan Damani acquired more than one percentage stake in these companies during the March quarter (Q4FY20). Damani had nil holdings in these companies at the end of the December quarter. READ MORE
MARKET CHECK :: Sensex recovers from day's low
MARKET UPDATE:: Top 5 losers on the BSE at this hour
Aviation stocks slip as SC observes, airlines can provide a credit shell to customers who can encash it over the next two years
BROKERAGE VIEW:: Prabhudas Lilladher on Mahanagar Gas
Rating: BUY | CMP: Rs 1,036 | TP: Rs 1,263
We tweak our FY21/22 earnings estimate to factor in lower volumes as well as higher margins; (MGL’s five year EBIDTA CAGR at ~20% with margins growing at 14% and volumes at 5% CAGR). MGL remains an enviable business model with high pricing power given rising differences with petrol/diesel. Also, shift to private vehicle ownership post Covid pandemic to drive CNG volumes. We like MGL’s business given their dominating share in the growing markets of Mumbai and suburbs. Reiterate BUY.
BROKERAGE VIEW:: Edelweiss Securities on Mahanagar Gas
The stock has suffered a de-rating due to concerns around open access, with its valuations now at a 15% discount to long-term average, even on FY21E earnings. However, we believe open access, even if implemented in its current form, will have limited impact on CGD earnings. Given MGL’s cheapest valuation in the CGD universe (17x FY21E PER, 46% discount to IGL), we retain ‘BUY’ with a TP of Rs 1,361/share.
BROKERAGE VIEW:: Edelweiss Securities on Indian Hotels
Indian Hotels’ (IHCL) performance was stable upto February (revenue up 2% YoY), but the COVID-19 impact in March (down 48% YoY) led to Q4FY20 revenue contracting 15% YoY. The company is already scouting for new revenue sources to help fill the void and also targeting cost optimisation to mitigate the Corona impact ahead. Unlike peers, IHCL’s liquidity/leverage remains extremely comfortable (net debt down YoY) and it has also managed to declare a dividend amidst the pandemic. That said, as we highlighted (Link), recovery for the sector remains 21-24 months away and we continue to remain cautious on the sector. Maintain ‘HOLD’ with DCF-based TP of Rs 86 (17x FY22E EV/EBITDA).
BROKERAGE VIEW:: YES Securities on Shriram Transport Finance
Retain BUY rating with a 12m TP of Rs 880. Believe SHTF is better placed than peers on capital position and potential recovery in collection efficiency during June-August (resilient client base). SHTF trades at 0.9x/5.4x FY22 ABV/EPS. Visibility of RoA climbing back above 2% in FY22 will re-rate valuation.
BROKERAGE VIEW:: HDFC Securities on Shriram Transport Finance
RATING: ADD | TARGET PRICE: Rs 825
While AUM (~5% YoY growth) and PPOP (down 3.2%) trends were in line, PAT was much lower than estimates on a/c of higher provisions and SHTF’s lower moratorium % vs. peer asset financiers surprised. We’ve reduced our earnings further to factor in (1) lower NIMs (persistent NIM pressure for the last few qtrs) , (2) potential flows from high GS-II to GS-III (even as GS-III has improved slightly) and (3) higher LLPs (conservatively) due to COVID-19 related uncertainties. We would watch for SHTF’s performance on the liquidity and borrowing fronts as well as comments on the anticipated 3-way inter-group merger. We maintain ADD with a TP of Rs 825 (1.1x FY22E ABV). SHTF’s unique business model and attractive valuations underpin our stance.
BROKERAGE VIEW:: Edelweiss Securities on Telecom sector post SC hearing on AGR case
After a few stern orders directing telcos to deposit the entire AGR-related dues immediately, the Supreme Court (SC) today lent an ear to the government and to telcos’ demand for a deferred payment option. The apex court has told telcos to file a reply on their roadmap for payment, time lines, and the security they could provide. We believe deferred payment over 15–20 years is critical to sustaining a three-private-player market. Considering the SC has made a comment on the possibility of personal guarantees by directors, the nature of security acceptable against dues could become a contentious issue. We believe telco promoters are unlikely to hand out personal guarantees; instead, accepting terms such as licence cancellation, no dividend/buyback till repayment, etc look more feasible. All said and done, Thursday's order is a milestone in the resolution of a longstanding issue, and likely to keep India a three-private player telecom market. We remain positive on Bharti Airtel (Bharti; ‘BUY’) considering its strong network and balance sheet, as well as Bharti Infratel (Infratel; ‘BUY’) due to its good FCF yield.
NEWS ALERT | Hexaware appoints ICICI Securities as merchant banker for delisting proposal's due diligence: Exchange filing
-- Board will take delisting proposal once due diligance report received
Trump considering suspending H1B visa over rising US unemployment: Report
The proposed suspension could extend into the government's new fiscal year beginning October 1, when many new visas are issued, The Wall Street Journal reported on Thursday, quoting unnamed administration officials.
That could bar any new H-1B holder outside the country from coming to work until the suspension is lifted, though visa holders already in the country are unlikely to be affected, the daily reported. READ MORE
MARKET UPDATE:: Sensex off lows, but still down nearly 600 points
Inappropriate to say that markets have bottomed; invest in a staggered way
That said, at its recent peak of over 10,000, NIFTY was discounting a number of these positives. Lower oil Import bill of around $40 billion, lower trade deficit with China due to boycott of Chinese goods, lower gold import bill, smooth implementation of economic package announced by the government, execution of monetary package in terms of improved credit flow and reduced borrowing cost. The market is also discounting an early medical solution to the Covid-19 pandemic in form of drugs or vaccine. READ MORE
According to the monthly sales update provided by the company, Mahindra & Mahindra sold 15.1 lakh units during the quarter, a 36 per cent fall on a YoY basis, led by 47 per cent YoY decline in auto volumes, and partially offset by around 3 per cent decline in tractor volumes. In comparison, the company had sold 23.5 lakh units in Q4FY19. Moreover, it had reported Rs 13,807.9 crore as revenue and net profit of Rs 1,041.2 crore for the quarter. READ MORE
Shree Digvijay Cement rises 7% in an otherwise weak market
Ruchi Soya enters top-100 most-valued companies list, stock hits new high
Edible oils firm Ruchi Soya Industries has entered into the list of top-100 most valued companies in terms of market capitalisation (m-cap) after the stock of the company hit a new high of Rs 926 on the BSE today. Shares of Ruchi Soya were locked in the upper circuit for the 12th straight day, up 5 per cent at Rs 926. At 09:55 am, the company stood at 94th position in the overall m-cap ranking on the BSE, the exchange data shows. READ MORE
Markets retesting March 2020 low is within the realms of possibility
We really don’t know when Covid-19 infections will peak or when the situation will become normal again. Even if we assume that things will start to normalise in the next couple of months, economic revival will take a lot of time. Growth will be visible only in the next fiscal (FY22) and FY21 will be a bad year for the economy and India Inc. The markets will have to come to terms with this and then price risk accordingly. READ MORE
Mid, small-caps follow benchmark indices, dip up to 3% amid global sell-off
In the midcap index, Bajaj Holdings, Tata Consumer Products, Bharat Forge, and Indraprastha Gas (IGL) were the top contributors to the index's fall while Glenmark Pharma, Future Retail, Apollo Hospitals, and Oberoi Realty gave the much needed support. Genmark Pharma was trading over 2 per cent higher while Future Retail was up 3.65 per cent at Rs 113.70. READ MORE
NEWS ALERT :: S&P pegs FY21 real GDP growth at -5%
>> S&P sees the risk of a serious local epidemic, enduring financial, corporate distress in India.
>> Expect speed of India's post-crisis recovery to have long-term implications for sovereign credit rating
>> Such risk scenarios may involve comprehensive review of our assumption of India sovereign
(Source: CNBC TV18)
Rupee opens 32 paise weaker at 76.10 per US dollar vs Thursday's close of 75.78/$
Bharti Airtel turns positive; only Sensex constituent in the green
Financials dip ahead of interest waiver case hearing; IndusInd, Bandhan Bk slip over 5%
At 09:23 am, Nifty Bank, Nifty Private Bank, Nifty PSU Bank, and Nifty Financial Services were down in the range of 3 per cent to 4 per cent, as compared to 2.3 per cent decline in the benchmark Nifty 50 index.
Among individual stocks, IndusInd Bank, RBL Bank, Federal Bank, Bandhan Bank, IDFC First Bank, Indiabulls Housing Finance, Edelweiss Financial Services, Mahindra & Mahindra Financial Services, Cholamandalam Investment and Finance Company, Jammu & Kashmir Bank, Indian Overseas Bank, Uco Bank and Union Bank of India were down more than 4 per cent on the NSE. READ MORE
>> Says, Bank not in favour of interest rate waiver
>> Backing RBI's stance, the country's largest lender cited viability of financial system behind this.
Alert: SC to hear interest rate waiver case today
: The RBI, in its reply to the SC, had estimated that a “forced” waiver of interest would hurt banks by as much as Rs 2 lakh crore.
Lupin trades flat
>> Drug firm Lupin on Thursday said it has received approval from the US health regulator to market its generic anthelmintic Albendazole tablets.
NEWS ALERT :: New securities of Reliance Industries will be listed on Monday, June 15
Ahead of Result | M&M skids 3%
Biocon trades nearly a per cent lower
>> Biocon and Mylan announced that the USFDA has approved the New Drug Application (NDA) for Semglee (insulin glargine injection), in vial and pre-filled pen presentations, to control high blood sugar in adults with type 2 diabetes and adult and pediatric patients with type 1 diabetes.
Result Impact | Indian Hotels Co dips 4%
>> With the COVID-19 pandemic hitting the hospitality industry hard, the Tata group's Indian Hotels Company Ltd (IHCL) is planning to venture into other areas of revenue generation, including home delivery of food and beverages.
YES Bank declines 4%
Lakshmi Vilas Bank hits 5% upper circuit in a weak market
>> As time runs out for capital-starved Lakshmi Vilas Bank (LVB) to infuse money, AION Capital-backed Clix Capital is in talks to buy a majority stake in the private lender.
SBI Life trades flat with negative bias
SBI slips 3%
Broader market check
Sectoral trends on NSE at open
Sensex Heatmap at Open
FIRST TRADE | Nifty50 tests 9,600
FIRST TRADE | Sensex recovers 200 pts from opening lows
FUEL PRICE UPDATE
Petrol price hiked by 57 paise per litre, diesel by 59 paise; cost of petrol up by Rs 3.31 in six days, diesel by Rs 3.42
NEWS ALERT :: India likely to seek additional funding from agencies like World Bank, AIIB, NDB, ADB
>> Multilateral agency funding for India seen increasing to $8.5 bn from $5 Bn in April-May
>> Of the additional $3.5 bn funding, $3 bn to be used for MSME intervention
>> Resources to flow into budget for credit guarantee, Covid-19 relief
(As reported by CNBC TV18)
Outlook & trading strategies for Silver, crude oil by Tradebulls Sec
Crude oil has retraced from overvalued levels but we have not seen any major price correction. There is short-term fear of oversupply after US API showed a rise in crude oil inventories. Prices are expected to remain at current levels but any further upside will be difficult as Saudi Arabia, Kuwait, and the United Arab Emirates said they would not continue further voluntary reductions of 1.18 million barrels per day. OPEC+ has also decided to keep production cut till July-end instead of August-end, so, they are not looking to extend production cuts as prices have risen from lows which will be near-term ceiling for the crude oil market. READ MORE
Technical calls by Nilesh Jain of Anand Rathi
SELL NIFTY | TARGET: 9,750 | STOP LOSS: 10,040
The NIFTY index breached its major neckline which was placed near 10,040 levels , and also 100-DEMA placed around the same levels. Now, as long as Nifty trades below 10,040 levels, we can expect the downside momentum to continue towards 9,750 levels. The momentum indicator RSI has started making a lower high and lower low formation. Although we may see some pullback as the markets are extremely volatile, the broader structure still looks weak. READ MORE
Here's a derivative strategy on Bata India by HDFC Securities
Sell Bata Future at Rs 1,339
Target Rs 1290
Stop Loss Rs 1367
Lot Size 550.
We have seen Short build in the Bata futures yesterday, where we have seen 23% rise in the Open Interest (Prov) with price falling by 4%. READ MORE
Stocks to watch: SBI, SBI Life, M&M, Lakshmi Vilas Bank, RIL, Biocon, IHCL
SBI, SBI Life: The country’s largest lender State Bank of India (SBI) will pare 2.1 per cent of its stake in the subsidiary SBI Life Insurance via an offer for sale. The offer for sale will open on June 12 with a floor price of Rs 725 apiece, which is at 2.1 per cent discount from the last close. SBI is expected to mop up almost $202 million via the share sale.
Lakshmi Vilas Bank: As time runs out for capital-starved Lakshmi Vilas Bank (LVB) to infuse money, AION Capital-backed Clix Capital is in talks to buy a majority stake in the private lender. READ MORE
Stock tumble gives brutal reminder of pandemic fear
>> A stock market that shook off the coronavirus pandemic, economic devastation and sky-high equity valuations was reminded of all three on Thursday, as Wall Street took its biggest dive in three months.
>> Equities have surged since late March, with the Nasdaq .IXIC reaching record highs and the S&P 500 .SPX climbing over 40% from March lows as the number of coronavirus cases nationwide declined modestly.
>> Even as stocks soared, some signs have illustrated many investors’ doubts about the rally. Investors have moved increasing amounts of money into money market assets in recent months.
>> On Thursday, the S&P 500 slumped 5.9% in its steepest one-session loss since March 16, following renewed fears of a coronavirus resurgence as U.S. states gradually reopen their economies after a nearly countrywide shutdown. Investors also reacted to dour economic forecasts from the U.S. Federal Reserve.
FII/FPI & DII trading activity on NSE, BSE and MSEI
Oil prices extend slump as US coronavirus cases climb
>> Oil prices slid early on Friday, extending heavy overnight losses on a surge in U.S. coronavirus cases this week that has raised the prospect of a second wave of the outbreak slamming demand in the world’s biggest consumer of crude and fuel.
>> West Texas Intermediate was down $1.32, or nearly 4%, at $35.02 a barrel by 5:40 am, after slumping more than 8% on Thursday. Brent crude was down $1.15, or 3%, at $37.40 a barrel, having dropped nearly 8% the previous session.
SGX Nifty indicates negative start for indices
>> At 8:22 am, the index was at 9,635 level, down 217 points or 2.15 per cent.
Asian stocks set to fall sharply as Wall Street tumbles
Wall Street plunges to close with biggest one-day loss since March 16