MARKET WRAP: Sensex recovers 1,574 pts from day's low to end at 28,288

All that happened in markets today

4:08 PM

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

After another volatile session of trade, in which the Nifty fell below the 8,000-mark, the benchmark indices closed down by around 2.4 per cent. Market failed to take early cues from the positive opening in the European markets, after ECB rolled out another stimulus package. With worries about a case of community spread of the virus, Investors fear further impact from Covid-19 and preferred Cash instead of Investments. All asset classes are seeing downward pressure. FIIs have also been net sellers to the tune of Rs.40,000 crores this month, further putting pressure on the markets. However, pockets of value buying in quality stocks were seen during the session

4:04 PM

SECTOR WATCH | Here's how sectoral indices on the NSE performed today

4:03 PM

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

3:39 PM

CLOSING BELL

The S&P BSE Sensex ended at 28,288 levels, down 581 points or 2 per cent while NSE's Nifty slipped 205 points or 2.42 per cent to settle at 8,263 levels.

3:17 PM

BROKERAGE RADAR | ICICI Securities on Ashok Leyland

Given the challenging times at Ashok Leyland (ALL) due to the muted demand scenario in the commercial vehicle (CV) space domestically as well as uncertainty surrounding the economic impact of Covid-19, we view this investment as not a prudent step at this juncture. Moreover, ALL is not loaded with surplus cash on its books. Hence, its plans to fund this share purchase through debt will increase leverage on the B/S, which erodes our margin of safety on ALL. Hence, we downgrade the stock to HOLD with a revised SOTP based target price of Rs 55/share.

3:13 PM

NEWS ALERT | SpiceJet suspends majority of international flights amid Coronavirus pandemic

Spokesperson says --

In view of the unprecedented situation arising due to COVID-19, SpiceJet is forced to temporarily suspend majority of its international operations from 21st March till 30th April, 2020. We will resume the suspended flights as soon as the situation normalises.

 

Our Kolkata-Dhaka flight will continue to operate as per schedule. Our Chennai-Colombo flight will restart from the 25th March, 2020 while our Delhi-Dubai and Mumbai-Dubai flights will resume from 16th April, 2020.

3:12 PM

Covid-19: IndiGo senior staff take salary cuts, 25% pay cut for CEO Dutta

"With the precipitous drop in revenues, the very survival of the airline industry is now at stake," Dutta said in his email to employees. "We have to pay careful attention to our cash flow so that we do not run out of cash." READ MORE 

3:08 PM

ITC re-enters list of top-10 most valued firms after stock rises 6%

Cigarette major and fast moving consumer goods (FMCG) company ITC has re-entered the list of top 10 most valuable companies after the stock rose nearly 6 per cent to Rs 160 on the BSE on Thursday. At 02:22 pm, ITC had a market capitalisation (market-cap) of Rs 1.95-trillion, and thus stood at 10th position in overall rankings, BSE data shows. The company surpassed the government-owned bank, State Bank of India (SBI), which had the market-cap of Rs 1.89 trillion, data shows. READ MORE

3:07 PM

STOCK ALERT :: Indiabulls Housing Finance hits record low

>> Tanks 31% intra-day on the BSE to hit lifetime low of Rs 95

2:58 PM

MARKET CHECK | Bharti Infratel tanks over 15%

2:55 PM

Foreign investors turn net sellers of Asian bonds in Feb on Covid-19 fears

Foreigners sold a net $3.88 billion worth of regional bonds last month, their largest net selling since April 2018, according to data from regional banks and bond market associations in Indonesia, Malaysia, Thailand, South Korea and India. READ MORE

2:53 PM

DBS says Singapore recession inevitable in 2020 due to coronavirus: Reuters

Singapore’s economy will contract by 0.5% in 2020, the city-state’s biggest bank DBS said on Thursday, adding a recession was inevitable due to an expected hit from the coronavirus outbreak. DBS’s prior estimate was for the economy to grow 0.9%. 

2:45 PM

MARKET CHECK | Top gainers on the BSE at this hour

2:38 PM

MARKET UPDATE:: Sensex falls again

2:29 PM

BROKERAGE VIEW :: ICICI Direct on Capital Goods sector

>> The recent fall in crude oil prices of more than 40% to US$30/barrel is expected to impact overall orders/awarding from the MENA region owing to demand destruction fears amid excess supply. Companies like L&T and KEC with exposure to MENA region are expected to be moderately impacted. The Middle East region contributes ~13% to the order book and 14% to consolidated revenues of L&T. KEC International has exposure of ~| 2100 crore order book from MENA region, which is 9.5% of order book and 10% to revenue. However, Engineers India had around 25% overseas revenue in FY19 while 54% of 9MFY20 order inflow came in from overseas market.

>> It is difficult to assess the real magnitude of the Coronavirus outbreak and oil price crash at the moment as it is yet to peak out. Accordingly, we have tried to factor in the additional risk and revised our estimates, target prices and ratings for companies like L&T, KEC, Kalpataru, Elgi Equipments, Thermax, AIA and Engineers India with operational and sales exposure to these geographies.

2:25 PM

Contribution to Sensex's sharp rebound today

2:21 PM

BROKERAGE VIEW :: HDFC Securities on IT sector amid Covid-19 outbreak

>> We have cut EPS est. by ~7% (rev cut 2-7%) and TP by ~17%, factoring delay in pipeline conversion and core business vol./pricing impacting 1Q/2QFY21. Impact on travel & hospitality segment expected to be higher (Mindtree/Hexaware). Tailwinds include increase in outsourcing intensity, USD-INR and G&A (travel cost at 1.6 - 4.2% of rev). Maintain constructive view on the sector.

>> Top picks: Infosys, LTI and Sonata

2:12 PM

European markets open higher

2:03 PM

MARKET ALERT | Sensex gains 200 pts

2:02 PM

NEWS ALERT | IndiGo CEO says senior vice presidents and above taking 20 per cent pay cut: PTI reports

>> vice presidents, cockpit crew taking 15% pay cut

1:56 PM

Airtel, Voda-Idea to pay Rs 7881 crore a year if AGR is staggered

Under a payment scheme staggered over 20 years, Bharti Airtel and Vodafone Idea together have to pay around Rs 7,881 crore annually (the latter around Rs 5,235 crore) towards their AGR dues. Analysts say the figure comes from the Department of Telecommunication’s proposal for a staggered payment scheme with an interest rate of 8 per cent per annum. READ MORE

1:55 PM

BROKERAGE RADAR | Sharekhan on Bajaj Finance

Bajaj Finance (BFL) currently trades at a reasonable 4.7x its FY2021E and 3.9x its FY2022E book value per share (BVPS) and is available at below its five-year average one-year forward PBV multiple of ~5x. We find BFL to be a strong player, performing consistently, buoyed by its ability to boost profitability (along with prudent asset-quality performance) and its strong underwriting and risk measurement standards. We beleive BFL should be able to relatively better manage its asset quality and profitability during challenging times. We opine any further weakness in the stock may be an opportunity for investors to add it to their long-term portfolio. We maintain our Buy rating on the stock with a revised PT of Rs. 4,500.

1:39 PM

NEWS ALERT | Emami Board approves share buyback for 64.7 lakh share at Rs 300/sh: BSE filing

>> Buyback would max fetch up to Rs 194.1 cr

>> Also declares payment of second Interim Dividend of Rs. 2/- per equity share

1:35 PM

India's economic policy response to Covid-19 lags global peers: Edelweiss

With the coronavirus (Covid-19) casting its shadow on the global economy, most governments and central banks have initiated a strong policy response to battle the pandemic. Analysts at Edelweiss Securities, however, suggest that India has not done enough compared to its global peers to combat the situation. The macroeconomic response so far since the outbreak of the Covid-19 pandemic, they feel, pales in comparison to what has happened globally so far, or even compared with the policy steps undertaken by India during the global financial crisis (GFC).  READ MORE

1:33 PM

STOCK ALERT :: Coal India hits all-time low of Rs 125.40

>> Stock trades ex-date for interim dividend of Rs 12 per share

1:24 PM

SECTOR WATCH :: Nifty PSU Bank index turns positive in a weak market

1:11 PM

BROKERAGE RADAR | Motilal Oswal Financial Services on Motherson Sumi

We have lowered our FY21/22 consol. EPS by 15%/8% to factor in the near-term volume weakness in all key businesses due to the impact of coronavirus. We maintain our positive view on MSS (stabilization of greenfield plant + execution of strong order book of SMRPBV + India recovery). However, the near-term stock performance could be influenced by development on coronavirus (China exposure in SMRPBV and PKC) and the ongoing restructuring exercise. We are also lowering our target multiples for both India (from 25x to 20x) and Global business (from 15x to 12x) to factor in for risk of prolonged impact of Coronavirus. Maintain Buy with a target price of around Rs 108 (Mar’22E SOTP).

1:11 PM

Ind-Ra revises rating watch on YES Bak to 'evolving' from 'negative'

The revision of the rating watch follows the systemic support Yes Bank has received recently, in terms of both equity and liquidity, from the new set of investors and the regulator for its reconstruction.

 

It also considers the pressure that could show up on the liabilities once the regulator-imposed moratorium is lifted. READ MORE

1:10 PM

NEWS ALERT | RBI should cut rates and cash reserve ratio: CII President to CNBC-TV18

1:09 PM

BROKERAGE RADAR | Motilal Oswal Financial Services on Telecom sector

We maintain our SOTP-based TP of Rs 650 on Bharti, assigning 12x on FY22E India wireless EBITDA and 6x on Africa. If we assume a duopoly scenario, Bharti can generate incremental EBITDA of Rs 100 billion, assuming it gets 40% revenue share and 50% EBITDA margin (building incremental network cost and higher capex intensity). Thus, it can garner EBITDA of Rs 550 billion in FY22, without factoring any further ARPU increase. At 10x EV/EBITDA, it could derive a blue-sky TP of Rs 825. We maintain our TP of Rs 500/share on RJio which could see additional gains due to ARPU increase or eating into VIL’s market share.