Sensex gains 307 pts as financials, metals rally; Nifty PSU Bank jumps 7%

All that happened in the markets today

4:11 PM

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

Indian indices, led by financials, came back strongly from yesterday’s indecisiveness, amidst positive global cues. The global positive sentiment was driven by additional stimulus measures from ECB. Investors are banking on a global economic recovery, fuelled by central bank policy measures to support the respective economies. Investors need to be a bit cautious since valuations are running high and the expected recovery is not yet visible in the numbers.

3:44 PM

SECTOR WATCH:: Nifty FMCG index ends in the red

3:43 PM

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

3:36 PM

CLOSING BELL

The S&P BSE Sensex gained 307 points or 0.9 per cent to end at 34,287.24,while NSE's Nifty ended at 10,142.15, up 113 points or over 1 per cent.

3:27 PM

PSBs rally post SBI March quarter results; Nifty PSU Bank index up 7%

Shares of public sector banks (PSBs) rallied up to 10 per cent on Friday on the National Stock Exchange (NSE) after the State Bank of India (SBI) reported improvement in assets quality on year-on-year (YoY) as well as sequential basis. SBI, Jammu & Kashmir Bank, Punjab National Bank (PNB), Bank of Baroda, Canara Bank and Indian Bank among the PSBs were up in the range of 7 per cent to 10 per cent on the NSE. READ MORE

3:19 PM

MARKET UPDATE:: Vodafone Idea up 21% at Rs 10.78, first time since July 26, 2019

>> Stock quotes above face value of Rs 10 per share

3:16 PM

INDEX GAINERS:: Tata Steel jumps 6%

3:06 PM

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

2:56 PM

BUZZING STOCK:: Vodafone Idea surges 17%

2:55 PM

SBI Q4 NOS:: Bank's provision coverage ratio stood at 83.6% Vs 81.2% (QoQ)

>> Slippages Ratio for FY20 has declined to 2.16% from 2.42% as at the end of 9MFY20;

>> Credit Cost as at the end of FY20 has declined 79 bps YoY to 1.87%.

2:44 PM

RESULT IMPACT:: SBI extends gain, up 8% now

2:42 PM

NEWS ALERT | Moratorium availed by 21.8 per cent customers, 23 per cent of term loans: SBI Chairman

-- Have gained market share in both deposits and loans: SBI Chairman

-- Holding almost 78 per cent provision on corporate loan book: SBI Chairman

2:39 PM

SBI posts Q4 net profit of Rs 3,581 crore on one-time gain from SBI Cards

State Bank of India (SBI) on Friday reported standalone net profit of Rs 3,581 crore in the March quarter of FY20 (Q4FY20). The profit grew 326.93 per cent from Rs 838 crore clocked in the year-ago quarter (Q4FY19). Sequentially, the profit declined 35.85 per cent. The profit was supported by one-time gain of Rs 2,731.34 crore from the stake sale in SBI Cards done during the quarter. READ MORE

2:27 PM

NEWS ALERT | Holding total provision of Rs 5,767 crore for IBC accounts: SBI

-- Made provision of Rs 405 crore towards wage revision: SBI

-- Q4 includes one-time gain of Rs 2,731.3 crore on stake sale in SBI Cards

2:17 PM

SBI Q4 RESULTS | Net profit comes in at Rs 3,581 crore

-- Net NPA at Rs 51,871 cr

-- Net NPA at 2.23 per cent

-- Fresh slippages at Rs 8,105 cr vs Rs 16,525 cr (QoQ)

-- Net interest income (NII) at Rs 22,766 crore

-- Agri slippages at Rs 5,238 crore

-- Personal loan slippages at Rs 600 crore vs Rs 821 crore (QoQ)

2:11 PM

MARKET CHECK :: Indices hold gains; Sensex up 400 pts now

2:05 PM

Rupee closing

Rupee ends flat at 75.58/$ vs Thursday's close of 75.57 against the US dollar

2:01 PM

Voda Idea, IDBI Bank, Saregama and 7 other stocks rally over 50% in 1 week

IDBI Bank was locked in the upper circuit for the fifth straight day and has zoomed 89 per cent in the current week as the bank turned profitable in March quarter after 13 straight quarters of loss. The lender posted a profit of Rs 135 crore for the March quarter (Q4FY20) on account of recoveries from bad loans. It had posted a net loss of Rs 4,918 crore in the corresponding period of last year. READ MORE

1:53 PM

EXPERT VIEW :: Jyoti Roy, DVP Equity Strategist at Angel Broking on Jio-Mubadala deal

RIL's digital business (JIO Platforms) has attracted investments from marquee investors like Facebook, Silver Lake Partners, General Atlantic, KKR, Vista Equity Partners and Mubadala of INR 87,655 cr, which along with the right issue of INR 53,125 cr. will  help the company bring down it's debt levels by almost 1.4 lakh cr. Investments by such marquee names in Jio platforms also helps increase our confidence in the company's strategy to transform from a brick and mortar company into a digital play. 

 

RIL has built up a dominant position in both the telecom and retail business where it is the marker leader. We believe that the telecom and retail business will be key growth drivers for the company over the next few years while the company’s foray into e-commerce through it’s JioMart platform will be a value creator for the shareholders in the long run. We currently have a BUY rating on the stock with a SOTP based target price of INR 1,748.

1:51 PM

Saregama Q4 results | Consolidated net profit slips 7.1 per cent to Rs 15.8 crore vs Rs 17 cr YoY

-- Cons revenue down 14.3% YoY at Rs Rs 108.7 cr vs Rs 127 cr

-- Cons Ebitda margin at 19.8% vs 12.9% YoY

1:48 PM

BROKERAGE VIEW :: HDFC Institutional Equities on Cholamandalam Investment & Finance

Maintains 'Buy'; Target price: Rs 225

CIFC’s operating performance was a tad below our estimates, while earnings were considerably lower as CIFC made significant proactive provisions (Rs 5.0bn, 83bps of AUMs). We’ve lowered our earnings to factor in (1) higher provisions, given that 76% of the book is under moratorium, and (2) slower growth. Nevertheless, CIFC remains our top NBFC pick, given (1) its strong liquidity and funding profile, (2) superior historical asset quality trends and (3) diversified portfolio.

1:45 PM

BROKERAGE VIEW :: Anand Rathi on Heidelberg Cement

Maintains 'Buy' Target price: Rs 207

Management said prices would be firm on low volumes (a `10 price hike, post-lockdown). The company continues to operate at negative working capital. Besides NCDs of `1.25bn repaid in FY20, management spoke of repaying `1.25bn in FY21 and `1.2bn in FY22 from internal accruals. We expect a net D/E of -0.2x in FY21 (vs. -0x in FY20). Issues such as migrant labour, logistics, fly-ash availability, liquidity crunch, etc., would continue in the short run. We retain our Buy rating, at a

higher target of `207 (9.2x FY22e EV/EBITDA). Risks: Higher petcoke and diesel prices, extension of the lockdown.

1:44 PM

Europe trades higher in early trends

(Source: Reuters)

1:38 PM

BROKERAGE VIEW :: HDFC Institutional Equities on Aurobindo Pharma

Maintaions 'Buy'; Target price: Rs 835

Aurobindo beat our Revenues/EBIDTA/Adj.PAT forecasts by 5%/14%/17%, aided by strong performance across markets, better product mix and currency tailwinds. While Q1FY21 is expected to be muted, the underlying growth prospects for the business remain strong. Steady progress on differentiated pipeline will drive long term earnings sustainability in our view. Improvement in balance sheet is comforting with net reduction of USD365mn in FY20 and stable working capital days. The company intends to be net debt free by FY22. We increase our earnings estimates by 4-6% to incorporate slightly higher gross margin. Our revised TP of Rs835 is based on 14x FY22 EPS.

1:29 PM

Premium liquor segment may prove to be a hangover for United Spirits

The stock of United Spirits (UNSP) is up marginally, even as the firm posted a sharp drop in revenue and profit for the March 2020 quarter (Q4) last week. Although positive news flow such as the permission for home delivery/online sale of liquor, re-opening of shops, and expectations of margin gains have supported the stock, which is up 30 per cent from its March lows, there are reasons for investors to be cautious. READ MORE

Liquor, wine, Alcohol, Illustration: Ajay Mohanty

1:20 PM

Covid-19 impact: Nifty50 scorecard shows worst profit slump in 6 years

Profits at NSE Nifty 50 Index members fell about 15% last quarter from the same period last year, the worst drop since at least 2014, according to Bloomberg-compiled data. About two thirds of the firms in index have announced results for the March quarter so far. Communications, energy and industrials recorded the steepest declines on an adjusted basis. READ MORE

1:09 PM

BUZZING STOCK:: InterGlobe Aviation jumps over 5%

12:57 PM

UltraTech, ACC: More steam left in cement stks as follow-up buying resumes

Cement stocks have been on an upswing since the last few sessions in an anticipation of a pickup in construction activity across the country. According to a report by Business Standard, capacity utilisation at cement companies has improved significantly in May after a sharp drop in April.

 

Individual house builders (IHB) segment, which drives 55 per cent of the annual demand, has been reviving after construction activities were permitted by various state governments. READ MORE

12:46 PM

Result today :: SBI Cards stake sale to aid SBI's Q4 profit; NPA levels eyed

India’s largest public sector bank, State Bank of India (SBI), is scheduled to report its March 2020 quarter result (Q4FY20) on Friday, June 5. While analysts are positive on the bank’s net profit, which they expect to jump on a year-on-year (YoY) basis, loan growth is seen logging a tepid growth. Management’s commentary on anticipated second wave of stress will be watched out for, analysts say. Given SBI's dominant exposure in the area, they expect some provisions to be made this quarter. READ MORE

12:36 PM

Result today :: Analysts see muted nos for L&T amid Covid-19; order inflow eyed

Engineering and construction conglomerate, Larsen & Toubro (L&T), is expected to report muted numbers for the quarter ended March 2020 due to project delays and a slowdown in execution owing to Covid-19 lockdown, analysts say.

 

Usually, Q4 is an execution-heavy quarter for capital goods players, but the lockdown has affected execution and deliveries for most companies. However, being a diversified entity, L&T is expected to fare better than others. READ MORE