MARKET WRAP: Sensex gains 223 pts as banks rally; Nifty settles at 8,993

All that happened in the markets today

3:53 PM

MARKET COMMENT :: Vinod Nair, head of research at Geojit Financial Services

Markets were more circumspect today, while IT stocks were impacted due to the earnings commentary from Wipro. Wipro did not give any earnings guidance but warned of a hit on margins. The earnings for TCS, expected later today, will give a clearer picture on the impact on the IT sector and demand outlook from developed markets. Economic data across the globe remained grim and global markets also remained weak. Stock specific news and information with regards to normalization of business is expected to drive stock and sector specific action in the markets

3:52 PM

MARKET COMMENT :: Ruchit Jain, Equity Technical Analyst, Angel Broking

For the near term, 8800 is the crucial support to watch, whereas 9260-9320 is the immediate resistance zone. During such consolidation, traders should adopt a strategy to look for potential outperforming counters and take a stock specific approach.

A move beyond the above mentioned range of 8800 - 9320 could then lead to some directional move. Banking index had under-performed in this pullback move so far, which now faces an immediate resistance around 20,325. A breakout above the same is required for some quick recovery to catch up for the recent under-performance

3:48 PM

Sectoral gainers and losers on the NSE

3:45 PM

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

3:41 PM

CLOSING BELL

The S&P BSE Sensex today gained 223 points or 0.73 per cent to settle at 30,603 while Nifty ended at 8,993, down 67.5 points or 0.76 per cent.

3:24 PM

BUZZING STOCK | Jubilant FoodWorks jumps over 6.5%

3:18 PM

China central bank will continue to support smaller firms via targeted RRR cuts: Reuters reports

hina’s central bank said on Thursday it will continue to guide credit to support the real economy, especially smaller firms, via measures including targeted cuts in banks’ reserve requirement ratios (RRR) and re-lending.

 

Since early February, the central bank has unveiled a raft of measures from cutting lending rates and making cheap loans at subsidized rates to providing payment relief to firms that have been hardest hit by the coronavirus outbreak and containment measures.

A man walks past the headquarters of the PBOC in Beijing

3:09 PM

MARKET CHECK

2:59 PM

MARKET VOICE :: Shyam Sekhar on markets and economy

2:57 PM

MARKET VOICE

2:51 PM

India's economy may see first contraction in 40 years on lockdown extension

The lengthening of the mandatory stay-at-home period to 40 days from 21 days will result in a direct output loss of more than 8 per cent over that time, according to Sonal Varma of Nomura Holdings.
 

Varma and Kunal Kundu of Societe Generale GSC now predict a decline in GDP for the year to March 2021 of 0.4 per cent and 0.1 per cent, respectively. The economy had last contracted in 1980, when GDP shrank 5.2 per cent. READ MORE

2:47 PM

Heatmap: S&P BSE Sensex gainers and losers at this hour

2:43 PM

BSE500 stocks that hit 52-week low today

COMPANY	LATEST	52 WK LOW
ADITYA BIR. FAS.	140.10	139.40
GODREJ INDS.	275.60	270.00
QUESS CORP	204.35	200.80

2:38 PM

BROKERAGE VIEW:: Motilal Oswal Financial Services on Grasim

We expect RoE to be weak at ~3% over the next two years due to (a) margin pressure in both VSF and Chemicals, and (b) higher depreciation and interest cost owing to capacity addition. As a result, EPS is expected to decline over the next two years. Given GRASIM’s conglomerate business structure, we value it on SOTP basis. Our target price values (a) the standalone business (fiber, chemicals, etc.) at 6x FY22E EV/EBITDA, (b) UltraTech at 60% holding company discount to target price, and (c) other listed investments (AB Capital, Vodafone Idea, Hindalco and Aditya Birla Fashion) at 60% holding company discount to market prices. Thus, we arrive at a fair value of Rs 575. Maintain Neutral.

2:33 PM

MARKET CHECK

2:27 PM

Dr Reddy's denies reports it is talks with Gilead for Covid-19 antiviral

While media reports suggested that Hyderabad-based Dr Reddy's Laboratories is in the early stages of creating a generic version of anti-viral drug remedesivir, the company on Thursday has denied the same. The drug, patented by Gilead, is reportedly working well for critically ill Covid-19 patients. A multi-country trial is on. READ MORE 

 

2:19 PM

Goldman Sachs downgrades India from 'overweight' to 'marketweight'

The US-based investment firm has also lowered the Nifty target to 9,600 for June 2021, expecting substantial downward revisions to corporate earnings.

 

“Valuations look optimistic even accounting for a recovery. With uncertainty about near-term earnings, P/E multiples using perfect EPS foresight and on CY21 EPS remain well above previous crisis levels,” Goldman Sachs said in a note. READ MORE

2:08 PM

Sentiment in real estate sector at all-time low: Knight Frank-Ficci survey

Shishir Baijal, chairman and managing director of Knight Frank India said, “The pandemic has created an unprecedented condition which is impacting global markets and societies. There is already a severe shortage of liquidity due to the complete standstill that most economies have come to. Even while the government and the Reserve Bank of India have provided some stimulus measures, further support may be required to help the real estate sector and for the economy to stay afloat during the crisis. Managing liquidity and sustaining through the length of this pandemic will be critical for economic survival in the post-pandemic era.” READ MORE

1:55 PM

Nestle India scales fresh record high; stock rallies 38% in 4 weeks

Shares of Nestle India surged 3.5 per cent and hit a new high of Rs 17,925 on the BSE on Thursday with its market capitalisation crossing Rs 1.7 trillion-mark on the BSE. The fast moving consumer goods (FMCG) company surpassed its previous high of Rs 17,521 hit on April 8, 2020. Nestle India, the manufacture of food and beverage products, has seen its market price soaring 38 per cent in the past four weeks after Prime Minister Narendra Modi, on March 24, declared a nationwide lockdown in the wake of the Covid-19 pandemic. READ MORE

1:48 PM

Sectoral gainers and losers on the NSE

1:45 PM

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

1:43 PM

European indices trade higher in early deals

1:27 PM

BROKERAGE VIEW:: Anand Rathi Shares on Siemens India

We cut our FY20e/21e earnings for Siemens by 28%/18%. We believe, however, that companies with a resilient business model and supported by structural soundness will revive faster than peers. Hence, we upgrade our rating to a Buy with a revised TP of `1,336, at 40x FY21e EPS.

Risk: Prolonged industrial recovery.

1:24 PM

BROKERAGE VIEW:: ICICI Securities on VST Industries

With a wide presence at the lower price points and strong distribution of 1 million retail outlets, VST’s brand has been especially popular in West Bengal, Bihar, Uttar Pradesh, Andhra Pradesh and Telangana contributing ~60% of volumes. The company’s fundamentals are driven by a strong capital structure, steady cash flow and consistent dividend payment. VST has a robust margin profile with its operating margin at 32.2% for FY19. With robust volume growth in 9MFY20 change in product mix towards high priced cigarettes, we maintain our BUY rating on the stock. We value the stock at 19x FY22E earnings to arrive at a target price of Rs  4,000/share.

1:22 PM

BROKERAGE VIEW:: HDFC Securities on Wipro post Q4 nos

Target Price: Rs 185 | Rating: Reduce

Wipro’s growth will continue to lag within the Tier-1 IT pack based on soft outlook for ~51% of rev comprising BFSI, Retail, Travel, Manufacturing & Energy. This will be offset by relatively better outlook in Consumer (e-commerce & new age Media), Healthcare (Hospitals) and Communication. New opportunity will emerge with increased cloud adoption, Automation and workplace modernisation. Clients are looking for higher efficiencies (RTB) and vendor consolidation (benefit for incumbents). While growth concerns remain (Covid led disruption), there is limited scope for margin expansion. We expect USD rev growth of -4.4/+4.7% and IT services EBIT% at 17.0/17.3% for FY21/22E. The stock is down ~25% in 3M and valuations are at ~11.9x FY21E (vs. 12.8x Tier-1 IT median).

1:20 PM

EXPERT COMMENT | Anindya Banerjee, DVP, Currency Derivatives, Kotak Securities

"Indian Rupee continues to weaken due to rising cases of COVID-19 in India. Extension of lockdown is going to prolong the economic pain. However, as lockdown will be lifted across various parts of the nations, which are not COVID hotspots, is a positive development. This will help the agricultural sector ahead of the monsoon season and also bring back employment in non-urban centers. Global situation remains fluid as number of cases continue to risk in Europe and North America but in several nations, the rate of increase continues to slow, which is a positive development. All in all, Rupee may continue to weaken, but some of these positive development in home and abroad may limit the pace of the decline. A range of 76.00-77.50 may unfold over the medium term."

 

 

1:19 PM

BROKERAGE VIEW:: Prabhudas Lilladher on Capital Goods

In our view, post Covid-19 the government would regain its focus back on fine-tuning various reforms, spur private investments, boost consumption, create jobs and undertake agricultural reforms. Further, we believe governments thrust on infrastructure spending (target of ~Rs102trn over 5 years) would continue and expect strong growth for Roads, Railways, Buildings, Urban Infra, Power T&D and Water. We believe most of the negative have been factored in the stock price (-40-50% down in 1month) and expect companies with strong B/S, cash flow generation, good corporate governance and management quality to be beneficiaries in the long run. On the back of steep correction, we are upgrading our rating of ABB and GE TD to be HOLD from REDUCE. Our top picks in the sector are L&T, KEC, Siemens and Voltamp.

1:01 PM

Nifty unlikely to go past 10,000 anytime soon, keep buying at low levels

The Indian equity market might have shown a solid rebound last week, but it is not completely out of the woods yet. The rally last week was mainly driven by positive global markets. In other words, the ripple effect of an international rally was seen on domestic equities, too. Therefore, there is a high possibility that this market rally will halt. I don't see Nifty going beyond the 10,000 level at this point. READ MORE

12:56 PM

NEWS ALERT :: FM Sitharaman meets PM Modi to finalise relief package: Agencies

>> Announcement expected soon

12:49 PM

NEWS ALERT | Aviation Ministry working towards formulating guidelines on refund, advance booking during lockdown period: CNBC TV18, quoting sources