Indices gain for 2nd day in a row, Sensex up 429 pts; India VIX drops 6%

All that happened in the markets today

4:00 PM

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

"The Indian indices traded in sync with global cues and ended the day with gains. The gains were supported by IT and Auto indices. Global indices were positive following news of encouraging trials of a vaccine being developed for the virus. Global markets are awaiting US employment figures, due out later today, to see the progress of the US economy and its resultant impact on global economic growth. Indian benchmark indices have sustained their momentum while upsides seem to be limited. Investors are advised to watch out for any signs of trend reversal and keep booking short-term profits."

3:44 PM

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

3:42 PM

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

3:36 PM

CLOSING BELL

The S&P BSE Sensex climbed 429 points or 1.2 per cent to end at 35,844 while NSE's Nifty settled at 10,552, up 122 points or 1.17 per cent.

3:27 PM

MARKET CHECK

3:20 PM

BROKERAGE VIEW:: Centrum Broking on ONGC

Our assumptions factor slightly higher production estimates coupled with IndAS impact on other expenses which drives an increase in EBITDA by +3.5/+1.5% for FY21/22E. However, PAT still sees a sharp decline of 14.2/8.6% because of higher depreciation and interest costs coupled with lower other income than our earlier estimates.  Maintain ADD

3:07 PM

ALERT :: Dow Jones Futures climb nearly 400 pts

3:06 PM

NSE Indices launches Nifty BHARAT Bond Indices - April 2025 & April 2031 series

NSE’s index services subsidiary, NSE Indices Limited has today launched two more indices under the Nifty BHARAT Bond Index series.

 

The BHARAT Bond Index series follows a unique Target Maturity Date structure wherein each index in the series measures the performance of a portfolio of AAA rated bonds issued by government owned entities maturing in a specific year. The following two new indices have been launched today within the Nifty BHARAT Bond Index series:

• Nifty BHARAT Bond Index - April 2025
•  
• Nifty BHARAT Bond Index - April 2031

 

In Dec 2019, NSE Indices had launched the first two indices in the BHARAT Bond Index series with maturities in April 2023 and April 2030.

 

“The BHARAT Bond ETFs, tracking the Nifty BHARAT Bond Index series, have been successful in increasing retail participation in corporate bond market with more than 50000 retail investors participating in the first two ETFs launched in December 2019. NSE is glad to continue working with Department of Investment and Public Asset Management (DIPAM), Government of India, Edelweiss AMC and other stakeholders in launching more indices within the unique BHARAT Bond Index series that will be tracked by the upcoming tranches of BHARAT Bond ETF” said Mr. Vikram Limaye, MD & CEO, NSE.

(Source: NSE press release)

2:58 PM

Stocks that hit 52-week high on BSE today

COMPANY	PRICE(rs)	52 WK HIGH	CHG(%)
BAYER CROP SCI.	6150.00	6166.90	2.93
GUJARAT GAS	320.80	330.00	-1.75
IDBI BANK	48.20	48.20	4.90
JUBILANT LIFE	678.80	697.00	2.18
NAVIN FLUO.INTL.	1677.20	1728.55	-0.88

2:55 PM

Limited gains for ONGC as coronavirus crisis, oil price spat continue

The lower oil and gas realisations, sharp jump in operating expenses, higher than expected DD&A (depletions, depreciation & amortization) expenses and impairments caused by the coronavirus outbreak hurt the company’s earnings.

 

The company’s crude realisations at $49 a barrel during the March quarter were 20.9 per cent lower year-on-year ($61.93 a barrel during year-ago quarter). The gas prices at $3.23 per mmmbtu (metric million British thermal unit) too were lower by about 4 per cent year-on-year. READ MORE

2:48 PM

Commercial vehicle sales lag as coronavirus outbreak pulls down economy

Medium and Heavy Commercial Vehicles (M&HCV) volumes dropped nearly 92 per cent YoY during the first quarter of Financial Year 2020-21 and Light Commercial Vehicles (LCV) volumes plunged 87 per cent YoY.

 

Tata Motors, India’s largest CV maker, said domestic volume in the first quarter of the financial year dropped nearly 90 per cent to 9,274 units from 94,934 units during the same period last year. The company did not share monthly volumes. READ MORE

2:40 PM

IT shares extend gain; Infosys rallies 9%, TCS surges 7% in one week

In the management commentary, Accenture on Friday, June 26 said it expects a decline in IT budgets due to the weak economic growth outlook. However, spends on digital transformation will increase, offset by lesser spend on running operations. Accenture will transform run operations providing cost savings, which will be invested back into digital transformation. READ MORE 

2:32 PM

Prospective investors indicate appetite for YES Bank FPO at discount

During roadshows, investors said they were keen to invest in the FPO. Considering the huge bad debt saddled with the bank, they would be able to invest at a significant discount to the current market price. On Wednesday, the YES Bank stock closed at Rs 26.95 a share. READ MORE

2:19 PM

Hero MotoCorp surges 5%, hits over 7-month high as June sales jump 4x MoM

The two-wheeler bellwether on Wednesday posted a 27 per cent year-on-year decline in wholesale dispatches for June at 4.5 lakh units. The company’s volumes jumped four-fold on a sequential basis from 112,692 units in May. The company said that much of the demand is being supported by rural and semi urban areas. While wholesale dispatches are at around 90 per cent of pre Covid levels, retail volumes are at 60 per cent of pre-Covid levels currently, it said. READ MORE 

2:16 PM

Rupee closing

Rupee ends higher at 75.01/$ vs Wednesday's close of 75.59 against the US dollar

2:08 PM

MARKET UPDATE:: Sensex at day's high

2:05 PM

MARKET CHECK:: Top 6 losers on the BSE at this hour

1:55 PM

Goldman Sachs sees oil demand returning to pre-coronavirus levels by 2022

Goldman Sachs said on Thursday a pick-up in commuting, a shift to private transportation and government efforts to improve economies with higher infrastructure spending should help global oil demand return to pre-coronavirus levels by 2022.

 

Demand is expected to fall by 8 per cent this year, before rebounding 6 per cent in 2021 and fully recovering to pre-pandemic levels by 2022, the US bank said in a note. READ MORE

1:48 PM

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

1:47 PM

Moody's extends review for downgrade on Hero FinCorp's Baa3 rating

Rating agency Moody's has extended its review for downgrade on Hero FinCorp Ltd’s (HFL) Baa3 local and foreign currency issuer ratings. It did the rating review on April 13, 2020. The expectation was that the company's asset quality will deteriorate on the back of rising loan delinquencies and defaults. Some customers and businesses will struggle with payments as earnings decline due to the economic disruption of the coronavirus outbreak, said the rating agency. READ MORE

1:37 PM

European indices trade higher in early deals

1:22 PM

ICICI Securities on autos

The Jun’20 demand trends are positively impacted by pent-up demand release which has likely been accentuated by demand related to marriages in North India (Apr’20-May’20 marriage dates was lost due to lockdown and as per Hindu calendar Jun’20 marked the end of key auspicious dates for CY20). Thus extrapolation of Jun’20 retail recovery trends into upcoming months might be flawed. The data emerging in July’20/Aug’20 months would provide a clearer retail demand structure.

1:21 PM

Edelweiss on Voda-Idea

The sheer magnitude of the implications of the potential AGR judgment creates a perceived bankruptcy overhang, thereby delaying potential liquidity. We believe that an early resolution of the issue would help IDEA monetise its Indus Towers stake and the fibre business. The matter is sub judice and in the final stages, but one cannot be certain on the timeline of the verdict. A further increase in tariff would help reduce leverage greatly, but the company must ensure 4G subscribers stay on its network.

1:19 PM

Anand Rathi on J Kumar Infraprojects

While the Covid-19 impact is amply visible in J Kumar’s Q4, it is only expected to be more pronounced in FY21. With an urban-focused OB lowering any hopes of a quick revival in operations (labour still wary of urban areas), H1 is likely to be a washout and H2 becomes critical for any respectable performance in FY21. The OB provides ample assurance (insulating it from any immediate awarding lull), and the balance sheet too is in shape. The return of migrant labour holds the key. The issue seems more than priced in; hence, we retain our Buy rating

1:18 PM

Edelweiss on consumer goods sector

We expect demand to accelerate for packaged foods (biscuits, noodles), staples (atta, pulses, coffee, tea), premium edible oil, health & hygiene (mosquito repellants), nutrition (chyawanprash, honey, HFDs) and naturals. On the other hand, personal care (skin care, hair care, hair colour) are likely to disappoint in the near term. COVID-19 has triggered a strong shift away from street/outside food to in-home consumption, which will largely flow to leader brands as they have higher consumer trust and perceived quality. Almost all other categories are reviving and will accelerate from Q2FY21. From a Q1FY21 perspective, best way to play this is through Britannia, Nestle and Godrej Consumer (GCPL). From a six-nine months’ perspective, we add HUL and Dabur to this list

1:00 PM

MARKET CHECK :: Sensex near day's high

12:51 PM

GVK Power declines 5% on report ED probes promoters for money laundering

Shares of GVK Power and Infrastructure were locked in the 5 per cent lower circuit band, at Rs 3.23 apiece, on the BSE on Thursday after reports said the Enforcement Directorate (ED) is set to charge promoters of the GVK Group of companies for alleged money laundering after the Central Bureau of Investigation (CBI) accused them of alleged irregularities to the tune of Rs 705 crore in running the Mumbai airport. READ MORE

12:45 PM

Rising share of arbitrage funds in futures segment weighing on returns

The rising share of arbitrage funds in the futures segment is making it difficult to generate optimum returns. Such funds now account for over half of the futures’ segment open interest (OI).

 

According to data collated by Capitalmind, arbitrage funds accounted for 51 per cent of single-stock futures’ OI at the end of June, when total futures contracts for the near-month had an OI of Rs 93,663 crore. READ MORE

12:38 PM

ITC, Balmer Lawrie, SKF India: Time to bet on high dividend yield plays?

The market recovery since the March 2020 low has mostly been fueled by liquidity and positive news flow in select counters. While Reliance Industries (RIL) gained ground on the stake sale in its telecom venture, Jio Platform, to marquee investors, investors have also rewarded stable corporate performance in the March 2020 quarter amid Covid-19 pandemic. In times such as these, investors also bank upon stocks of companies that pay a higher dividend. READ MORE

12:31 PM

Infosys and HDFC contribute the most to Sensex's rally today