MARKET WRAP: Sensex slips 536 pts, Nifty ends at 9,154; financials decline

All that happened in the markets today.

4:00 PM

MARKET COMMENT | S Ranganathan, Head of Research at LKP Securities

"Market shaved off today as winding up of a few debt schemes by a large fund house in India added to the selling pressure witnessed in Banks and NBFC stocks. Reliance and a few Pharma names were the only saving grace in today's trade. Investors should have a clear asset allocation strategy to navigate the present volatility created by the Pandemic."

3:53 PM

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

3:46 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 31,327, down 536 points or 1.7 per cent while Nifty lost 160 points or 1.71 per cent to settle at 9,154.40 levels.

31,327.22

3:25 PM

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

3:17 PM

MARKET CHECK

3:08 PM

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

3:04 PM

Franklin Templeton MF | Adani Group completes early redemption of NCD due in October 2020: CNBC TV18

3:00 PM

Weak economic outlook to give small finance banks more time to get listed

“This dispensation may only be a one-time leeway as listing requirements according to licensing norms are unlikely to be modified,” said a source. The banking regulator mandates that SFBs must get listed within three years of their net worth reaching Rs 500 crore. READ MORE

2:54 PM

Varun Beverages: Wait for clarity on lockdown, demand before investing

The 40-day lockdown and the expected delay in normalising business cycle will take a toll on the company’s top line in the June quarter. This crucial quarter contributes around 40 per cent of the company’s annual revenue. While the company will restart its operations after May 3, major concerns are prevail on the demand front. READ MORE

2:43 PM

Bajaj Finance hits lowest level since May 2018; stock tanks 59% in 2 months

Historically, the April-June quarter (Q1) is the largest contributor to assets under management (AUM) growth for Bajaj Finance, with roughly 40 per cent contribution to the total AUM growth, which will be a wash-out quarter during FY21. Also, the Reserve Bank of India (RBI) moratorium poses a greater risk for Bajaj Finance by providing longer disruption in the financial discipline of low-income borrowers of the company. READ MORE

2:40 PM

NEWS ALERT | PM-FM meeting postponed, likely to happen next week: CNBC TV18

2:39 PM

EXPERT VIEW | Wait for gold prices to fall till 38,000 to enter market: Anuj Gupta, DVP–Commodities & Currencies Research, Angel Broking

Last year around 33 to 35 tons of Gold was sold on the Akshaya Tritya. In the last two months, the import of gold in India has plunged more than 73% year on year basis. In the month of March 2020, India has just imported 25 tonnes of gold as against around 94 tonnes last year. This year, we are expecting no physical demand in Gold for many reasons like lockdown and higher prices. There are more options available to buy gold like Gold ETFs from an exchange, sovereign gold bond, and coins from the Banks. In 2019, on Akshaya Tritya, gold prices were trading at 31,500 levels and now it is trading around 46,500 levels. It gave almost 47% returns to Gold lovers. The gold trend is still positive on the back of uncertainty and lower global growth forecast.

We are expecting safe heaven demand always supports the gold prices. This time Gold is trading on higher levels (recently gold touched the lifetime high of 47,327 levels). Technically we recommend waiting for some correction till 38000 to 40000 to buy gold for the target of 50000 to 52000 in gold prices. In the international market, gold may test $1780 to $1800 levels. Closing above $1800 levels may lead this rally towards $1880 to $1950 levels.”

2:34 PM

SECTOR WATCH:: Telecom stocks decline

COMPANY	LATEST(rs)	CHG(%)
VODAFONE IDEA	4.04	-6.70
BHARTI AIRTEL	490.50	-1.04
TEJAS NETWORKS	36.90	-4.90

2:28 PM

Before change in FDI rules, Chinese invested millions in Indian tech firms

Business Standard examined investments made in companies like Byju’s, Paytm, Zomato, Ola, Swiggy and Oyo — some of the so-called unicorns, or start-ups with valuation of over $1 billion — and found that the Chinese put big money for significant stakes in them between January and April 2020. This was a time when Indian and global firms were battling the immediate impact of the coronavirus pandemic. READ MORE

2:17 PM

Is this a good time to invest in gold bonds? Yes, but do it wisely

With the Reserve Bank of India announcing Series-I of the sovereign gold bond (SGB) scheme for 2020-21, investors are wondering if this is a good time to invest in the yellow metal. After all, it has run up nearly 100 per cent in the past one year. Under the scheme, you can buy a minimum of 1 gm of gold at Rs 4,639 per gm, with Rs 50-discount on a purchase made online. READ MORE

2:11 PM

Rupee Closing

Rupee ends 38 paise weaker at 76.45/$ vs Thursday's close of 76.07 per US dollar

2:05 PM

STOCK ALERT :: Bajaj Finance slips below Rs 2000-mark

1:59 PM

MARKET COMMENT | Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services

"Any piece of bad news regarding coronavirus, rattles the risky assets including rupee and we see it breaching fresh record lows. All this while, investors were hoping on flattening coronavirus cases and progress of a vaccine, but now there are doubts in the development of drugs. This uncertainty will continue to fickle the forex market. In USD/INR spot 75.70-75.75 has been acting as a crucial support, and will remain the same, going ahead we may see prices breach 77-77.15 level."

1:51 PM

MARKET VOICE | Shyam Sekhar

1:43 PM

Indian economy can be rebooted and Covid-19 virus contained concurrently

The national lockdown due to the spread of the deadly Covid-19 virus — now a month has passed since March 25 — has crushed what was an already faltering Indian economy. The lockdown relaxations since April 20 are related to “movement of cargo, farming, fisheries, plantations, animal husbandry, manufacturing in special economic zones, coal, mineral and oil production and self-employed plumbers, carpenters, motor mechanics and electricians”. READ MORE

1:28 PM

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

1:27 PM

Ticket size hurdle for PMS investors looking for top-ups in falling market

"Expecting someone who had invested Rs 25 lakh in the earlier regime to up the investment amount to Rs 50 lakh in the current market environment is impractical," said Kamal Manocha, chief executive officer at PMS AIF World. "Sebi’s intent was that only those with a large corpus should invest in PMS schemes. Be that as it may, existing investors who are sitting on losses and want to take advantage of attractive valuations, should be given the leeway to do a top-up of smaller amounts for the next six months." READ MORE

1:16 PM

Pharma shares rally; Alembic, Sun Pharma, Laurus Labs hit 52-wk highs

Alembic Pharma's consolidated profit before tax (PBT) more than doubled to Rs 298 crore in the January-March quarter (Q4FY20), on the back of healthy revenue. The drug maker had a PBT of Rs 139 crore during the same quarter in the previous fiscal. The company's total revenue during the quarter under review grew 30 per cent year-on-year at Rs 1,207 crore against Rs 927 crore in the corresponding quarter of previous year. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expanded 900 basis points to 28 per cent from 19 per cent in the previous fiscal. READ MORE

1:10 PM

EXPERT VIEW | Buy Gold ETF on Akshay Trithiya, says Pankaj Bobade, Head - Fundamental research, Axis Securities

"Gold is a hedge against uncertainty and a good investment vehicle, especially in the current scenario. With the COVID-19 pandemic bringing the world economy to a standstill and a possible contraction ahead, gold seems an attractive option. Moreover, as the Central Banks of developed nations have been on easing spree to fight the economic contraction, the fiat currencies are expected to face pressure in the near future. In such a scenario, gold is likely to emerge as a safe-haven asset. One should have a part of the portfolio invested in Gold ETF as an insurance against the possible volatilities expected in the global financial market. So, if this Akshay Trithia you are looking to buy gold, Gold ETF would be a good option from a long-term perspective"

1:04 PM

World economy faces steepest contraction; recovery U-shaped: Economists

Many countries are under lockdowns to curb the spread of an outbreak in which more than 2.6 million people worldwide have been infected and over 180,000 have died, bringing global economic activity to a halt, particularly in the services industry.

 

Reuters polls of more than 500 economists who were surveyed over the past few weeks showed most major economies were in the midst of a severe economic downturn and their recoveries were predicted to be U-shaped. READ MORE

12:52 PM

Personal finance tips to guide you through these unprecedented times

We all are witnessing difficult times. Fighting a faceless enemy in the form of a pandemic, working from home, practising social distancing, braving equity market volatility, facing bad debts and mismanagement across many finance companies and ultimately suffering job contraction, pay cuts, muted (if at all) increases and incentives. Amid all this, the good news is that ‘this too shall pass’. READ MORE

12:47 PM

BROKERAGE VIEW:: Motilal Oswal Financial Services on Alembic Pharma

Given the high base of the US business in FY20, we expect compounded earnings to decline 5% over FY20–22. Moreover, we are yet to see consistency in the DF business’ performance following the implementation of this renewed strategy. Accordingly, we continue to value ALPM at 17x 12M forward earnings to arrive at a price target of Rs 705 (prior: Rs 642). Maintain Neutral on limited upside from current levels.

12:41 PM

BROKERAGE VIEW:: JM Financial on asset management companies

HDFC AMC and NAM have declined sharply by 19% and 26% respectively CYTD on account of the sharp correction in equity markets arising from the rising spread of COVID-19. Both the NIFTY 50 and the broader NIFTY 500 have corrected by similar amounts - c.23% CYTD, and c.17% since the end of Feb-2020. While SIP inflows and overall net inflows into equity schemes have held up reasonably well (based on data as of Mar-end), equity MF AUMs for AMCs declined 23% MoM in March, as a result of the broad market correction. Equity MFs are the highest yielding products for AMCs, and any persistent weakness in equity markets will have a negative impact on both the profitability, and the equity AUM growth outlook for AMCs. We had downgraded HDFC AMC to SELL and NAM to HOLD in Nov-19, citing elevated valuations that do not acknowledge the inherent cyclicality of these businesses. We now revise our earnings estimates downwards by 19% / 22% for HDFC AMC and 32% / 33% for NAM for FY21E /22E. We now value HDFC AMC and NAM at 30 x and 28 x FY22E EPS, to arrive at our new TPs of Rs 1,980 and Rs 225 respectively, for HDFC AMC and NAM.

 

 

12:38 PM

BROKERAGE VIEW:: ICICI Securities on Prestige Estates Projects

Rating | BUY | Target Price: Rs 176

We remain bullish on the company’s long-term prospects and believe that PEPL can clock rental income of over Rs9bn in FY22E (estimated EV of Rs 99bn) which acts as a cushion to consolidated net debt levels of Rs80bn. The company’s focus on affordable/mid-income housing projects in South India and expected recovery in hotel business in FY22E will enable the company to get its growth story back on track. We reiterate our BUY rating with a revised target price of Rs 250/share (earlier Rs363) as we factor in COVID impact across segments.