MARKET WRAP: Sensex up 371 pts as financials surge; IndusInd Bank zooms 17%

All that happened in the markets today

4:05 PM

Technical view by Nagaraj Shetti - Technical Analyst, HDFC Securities

After showing range bound movement in the last couple of session, Nifty witnessed a fine upside bounce on Tuesday in the later half and closed the day higher by 1.06%. A small body of positive candle was formed on Tuesday with lower shadow, which indicates a buy on dips opportunity in the market. The sharp lower levels buying has emerged on Tuesday, post sell on rise action in previous few occasions. This is positive indication.

 

The rising wedge pattern is now getting closer with small high low range movement in Nifty. The market is currently placed near the upside breakout of the said wedge around 9500. Hence a sustainable move above 9500 could have a sharp positive impact on the market ahead.

 

The short term trend of Nifty is positive and one may expect further upside of 9480-9500 levels in the coming sessions. Immediate support is placed at 9260.

4:03 PM

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

"Benchmark indices ended positive tracking global markets, led by financials. Hopes of a fiscal stimulus have given support to the markets. Stock specific news reactions are happening based on the results and management commentary. The sustainability of this rally depends on the easing of lockdown measures and the measures to get businesses back on track."

3:51 PM

Sectoral gainers and losers on the NSE

3:48 PM

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

3:36 PM

CLOSING BELL

The S&P BSE Sensex rose over 371 points or 1 per cent to 32,114.52 while NSE's Nifty50 ended at 9,381, up 99 points or 1 per cent. 

3:24 PM

STOCK ALERT :: IndusInd Bank hits 15% upper circuit

3:18 PM

MARKET UPDATE | India VIX declines over 7%

3:09 PM

Banks borrow Rs 2,000 crore from RBI under mutual fund liquidity window

Banks have borrowed Rs 2,000 crore under the liquidity window opened for mutual funds on Monday, data released by the Reserve Bank of India (RBI) on Tuesday showed. The special repo window, under which banks can borrow up to 90 days to give loans or buy debt papers of mutual funds, remains open till May 11. The total amount banks can borrow is Rs 50,000 crore. READ MORE

3:09 PM

BREAKING NEWS :: ADB approves $150 cr loan to India to fight Covid-19

>> ADB is fully committed to supporting the Government of India in its response to this unprecedented challenge, said ADB President Masatsugu Asakawa.

>> The fund includes support for immediate priorities such as disease containment and prevention, as well as social protection for the poor and economically vulnerable sections of the society, especially women and disadvantaged groups.

Alert: ADB is Asian Development Bank

3:00 PM

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

2:48 PM

BROKERAGE VIEW:: Centrum Broking on Adani Ports and SEZ

APSEZ has a strong portfolio of cash generating assets which offer scalability and sustained growth potential. Given its cargo stickiness with 60% contracted cargo, APSEZ is partly safeguarded from near term Covid-19 disruption and is well placed to capitalize when the growth recovers. With sustained realizations and margins and contribution from new assets, we expect the port EBITDA to grow at 15.8% CAGR over FY20-22E.  There is a sustained effort to unwind related party exposures by utilising proceeds from monetisation of investments in Group companies. We value APSEZ on SOTP basis valuing the ports and logistics businesses at 10x FY22E EBITDA. We have a Buy recommendation on the stock with a SOTP-based target price of Rs 390.

2:39 PM

MAX FINANCE CONFERENCE CALL | Will file for merger within 12-18 months from now

-- Have cleared all possible roadblocks for the merger before committing; do not anticipate any challenges with the merger

-- Mitsui will be payng Rs 840 cr for its residual 4.9 per cent stake
 

-- Expect the transaction to be completed in current calendar year

-- Partnership is with the intent to merge the company with Axis Bank

-- Combination of Axis Bank and Max Life will put the JV in a different orbit

-- See no reason for the put option to be exercised

(as reported by CNBC TV18)

2:38 PM

India's rating could come under pressure if fiscal outlook worsens: Fitch

"The assessment of India's rating in such a case would be guided by our judgement of its probable medium-term fiscal path in the post-crisis environment," it said. Further deterioration in the fiscal outlook as a result of lower growth or fiscal easing could pressure the sovereign rating in light of the limited fiscal headroom India had when it entered this crisis, the statement added. READ MORE

2:26 PM

Max Financial, Axis Bank gain up to 6% on Max Life Insurance deal

At 01:53 pm, Max Financial Services was up 6 per cent at Rs 478 on the back of an over two-fold jump in trading volumes. The stock hit an intra-day high of Rs 492 after recovering 14 per cent from its early morning low of Rs 430 on the BSE. Around 11 million shares have changed hands on the counter on the NSE and BSE so far.

 

Shares of Axis Bank were trading 5 per cent higher at Rs 449, after hitting an intra-day high of Rs 451 on the BSE. In comparison, the S&P BSE Sensex was up 0.78 per cent or 246 points at 31,990 at 1:50 PM. READ MORE

2:18 PM

Airtel signs $1 billion deal with Nokia to improve 4G network experience

Bharti Airtel has signed a multi-year deal with Nokia to deploy the Finnish company's network solutions across nine circles in India. According to industry analysts, the deal could be worth $1 billion. READ MORE  

2:10 PM

Retiree investors in wound-up Franklin schemes fret over repayment timeline

According to sources, about 300,000 investors are exposed to the various schemes that Franklin Templeton MF wound up recently.

 

Franklin Templeton MF’s management has assured investors that the funds will be paid in a staggered manner, but the latter remain concerned over the timelines. READ MORE

2:07 PM

Rupee closing

Rupee ends higher at 76.19/$ vs Monday's close of 76.24 against the US dollar

2:00 PM

Contribution to the S&P BSE Sensex's gain today

1:47 PM

MARKET CHECK

1:36 PM

NEWS ALERT | 'BOLT Plus' trading system modified to execute commodity trades at negative rates: says BSE

>> other existing versions of trading systems to now support trading at negative rates: BSE

(as reported by CNBC-TV18)

1:27 PM

BROKERAGE VIEW:: HDFC Securities on Sadbhav Engineering

Sadbhav Engineering Ltd (SEL) has announced a management rejig with Mr Vasistha Patel (VP) being appointed as CEO and Mr Shashin Patel stepping down as Chairman and MD to Vice Chairman in non executive capacity. We perceive this as a positive step with VP getting iron hand on execution and promoter SP dissociating himself from day to day run. SEL BS has deleveraged post the SIPL deal and now VP has immediate challenge of ramping up execution against the COVID-19 headwinds. We maintain BUY with SOTP of Rs 56/sh.

1:20 PM

Franklin fiasco: The logjam of risk aversion

Given the quality of assets and their current illiquidity, it is unlikely that people will recover the fund’s stated net asset value (NAV). After having successfully created a huge market for non-AAA corporate debt, Franklin Templeton has now marked the death knell for credit risk funds in India. We must brace ourselves for a slew of redemptions at credit funds, as investors are spooked and fear other fund houses may also close shop. Many of these funds are down 15-25 per cent in value terms currently. READ MORE

1:08 PM

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

12:58 PM

NEWS ALERT | TVS Motor approves issuing NCDs of up to Rs 500 cr on private placement basis: BSE filing

12:54 PM

IEX plans to acquire 15% stake in Reliance ADAG platform ICEX

The sources said talks between the two are in an advanced stage but the closing of the deal could take some time because of regulatory hurdles. The IEX is not yet recognised as a stock exchange and, hence under the current law, it can only pick a 5 per cent stake in the ICEX. READ MORE

12:47 PM

BROKERAGE VIEW:: Edelweiss Securities on HDFC Life

HDFC Life reported mere 1% YoY growth in NBP in Q4FY20. Market share, however, improved 170bps to 14.2% in FY20 (individual WRP basis) as it outperformed the broader industry; under growing pressure on ULIP segment due to national lockdown and fairly weak equity sentiments. Apart from marginal shift from non-par to par and annuity products, business mix remained fairly stable QoQ. The company reported VNB margin of 25.9%, up 130bps YoY, but down 70bps QoQ. Persistency ratios remained stable with slight improvement in a few buckets QoQ. However, maintaining these ratios will pose a significant challenge, especially in the ULIP segment, with expected heightening capital market apathy amongst customers. The company’s disclosure of the Milliman report on non-par savings products builds incremental confidence on interest rate risks. Our target multiple of 3.5x FY22E P/EV continues to include a 10% premium for the inherent value creation opportunities not captured by HDFC Life’s current core. Maintain ‘HOLD’ with TP of Rs 470.

12:44 PM

BROKERAGE VIEW:: Edelweiss Securities on CRISIL

While ratings growth is strong and research turned around, we await visibility of new issuances in the domestic bond market and trend in the global research pool. Valuations at 29.4x CY21E remain rich. Maintain ‘REDUCE’ with revised TP of Rs 1,102 based on DCF (6% risk free rate and risk premium rate each) (Rs 1,138 earlier)

12:43 PM

EXPERT COMMENT | Kunal Shah, Analyst, YES Securities on Ambuja Cements

Although volumes were in-line with expectations, sturdy pricing in North and Gujarat markets combined with lower than expected variable costs led to a beat on EBITDA.

 

For future outlook: Concentrated exposure in price favorable North and Gujarat markets coupled with cash pile on balance sheet (~Rs 46 bn) and reasonable valuations will garner investor interest in current scenario.

12:33 PM

Chemical shares in focus; Aarti Industries, Vinati Organics surge over 9%

Shares of chemicals companies, mainly specialty and commodity, were in focus in an otherwise range-bound market on Tuesday on hopes of strong earnings for March quarter (Q4FY20) as brokerages expect the disruptions caused by Covid-19 to have been limited to the last few days of the quarter. After securing the supply chain, logistics and mandatory compliance requirements, the chemicals companies have resumed operations at their manufacturing units since the first half of April. READ MORE

12:26 PM

Franklin fiasco: Gilt funds emerge as star in troubled debt MF pack

Amid the turmoil in the debt mutual fund space, the 10-year government bonds (gilt) segment has emerged as the ace in the pack. Sharper-than-expected rate cuts and liquidity measures by the RBI have helped the category deliver best returns in over a decade. READ MORE