MARKET WRAP: Stimulus package disappoints; Sensex plunges 1,069 pts

All that happened in the markets today

3:45 PM

MARKET UPDATE:: Only Alembic Pharma and India Cements hit their respective 52-week highs in an otherwise weak market today

3:44 PM

IndusInd Bank tanks 10%, top Sensex loser today

3:42 PM

Contribution to the S&P BSE Sensex's 1,000-point plunge today

3:38 PM

Nifty sectoral indices at the close of today's session

3:37 PM

MARKET AT CLOSE | Losers and gainers on the S&P BSE Sensex today

3:34 PM

CLOSING BELL

The S&P BSE Sensex tumbles 1,069 points, or 3.44 per cent, to 31,029 levels while NSE's Nifty endd at 8,833, down 304 points or 3.32 per cent. 

3:27 PM

Stocks that hit 52-week low on BSE today

COMPANY	PRICE(rs)	52 WK LOW	CHG(%)
ARVIND FASHIONS.	121.00	119.50	-8.68
BANK OF BARODA	38.55	38.30	-7.22
BRIGADE ENTERPR.	95.95	94.45	-3.95
C P C L	54.15	53.10	-1.99
CHALET HOTELS	109.40	108.45	-13.62

3:15 PM

MARKET UPDATE:: Sensex breaches 30,000

3:11 PM

India Cements rebounds 14% from day's low on heavy volume; hits 20-mth high

Shares of India Cements surged 8 per cent to Rs 123.50, bouncing back 14 per cent from day’s low on the back of heavy volumes, on the BSE on Monday. The stock of the cement and related products company declined 5 per cent to Rs 108 in the intra-day trade but recovered and hit a 20-month high in the intra-day trade -- its highest level since September 4, 2018. READ MORE

3:01 PM

NEWS ALERT | Wabco India up 10% at Rs 6,837 on the BSE in an otherwise weak market

-- Stock gains after Wabco Holdings Inc and ZF Friedrichshafen AG announced that they have received the regulatory clearance from Chinese State Administration for Market Regulation for the merger.

-- Wabco India, which is part of Wabco Holdings and a supplier for commercial vehicle industry, said that all required regulatory approvals have now been received and Wabco and ZF expect to close the merger

2:50 PM

Fiscal stimulus 2.0: Consumption boost for agri, auto and FMCG companies

The slew of measures announced by the finance minister, coupled with a robust rabi crop and lower impact of the Covid-19 pandemic on rural India, is expected to improve rural incomes. The focus on agriculture is evident as 65-70 per cent of the outlay in the second and third tranches of the stimulus package was aimed at the farm sector. READ MORE

2:44 PM

Higher borrowing can see FY21 combined fiscal deficit hit 12%: Economists

The net borrowing ceiling for 2020-21 was earlier pegged at Rs 6.41 trillion (3 per cent of gross state domestic product), and the states have thus far borrowed merely 14 per cent of this authorised limit. Despite this, they have been urging the Centre for a special hike to 5 per cent in order to fight the economic stress triggered by the Covid-19 pandemic. READ MORE

2:36 PM

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

2:27 PM

Earnings Alert | Dr Lal Path Labs Q4

>> Consolidated Profit at Rs 32.5 crore

>> Consolidated revenue Rs 302 crore

>> EBITDA margin at 19%

2:22 PM

BROKERAGE VIEW :: Nomura on fiscal stimulus

The government has aimed for maximum bang for minimum buck, with most of the relief either regulatory in nature or reflecting in its contingent liabilities rather than explicit budgetary support. Meanwhile it has used the cover of the COVID-19 crisis to plough through long pending, politically sensitive structural reforms. As a result, the package may fall short of mitigating the near-term existential crisis for businesses and workers, but is better designed to improve India’s medium-term growth potential and attract long-term risk capital. As a consequence, we maintain our GDP growth projection for 2020 at -5% YoY

2:15 PM

NEWS ALERT | Axis Bank cuts lending rates by 5-15 bps across tenures, reports CNBC-TV18

2:14 PM

BROKERAGE VIEW:: ICICI Securities on Cipla

We continue to focus on the management’s long-drawn strategy of targeting four verticals viz. One-India, South Africa & EMs, US generics & specialty and lung leadership. Recent first generic approval by USFDA for Albuterol sulphate (Proventil HFA) amid rise in demand for Albuterol products in the ongoing Covid-19 pandemic are a vindication for its lung leadership quest. While US focus will be on specialty including hospitals, value accretive generics, India focus will be on branded (Bx), trade generics (Tx). On the Africa front, Cipla continues to rebase its business model towards private business in the backdrop of shrinking tender opportunities. Another key aspect to watch would be R&D recalibration. Across the board transformation from tenderised model to private model in exports market and towards rapid consumerisation of important Tx, Bx in India bode well to change the investors’ perspective. Our revised target price is Rs 670 based on 22x FY22E EPS Rs 30.2. We upgrade the stock from HOLD to BUY.

2:07 PM

Rupee closing

Rupee ends lower at 75.91/$ vs Friday's close of 75.56 against the US dollar

2:04 PM

Bharat Forge, HAL, Coal India: Bet on these 5 stocks on stimulus package

Coal India Ltd (COALINDIA): The stock has always been seen as a “risky trade” and continues to trade with the same sentiment. As this counter has breached the significant support of Rs 150, the momentum has turned bearish. One can witness the negative reversal of Moving Average Convergence Divergence (MACD) from the zero line, when the counter made an effort to cross Rs 150 mark recently. All this shows weakness if the stock tries to move up. There is clear selling pressure evident on the charts at higher levels. It is better to wait for Rs 150 to get conquered and then take a trading position. READ MORE

1:53 PM

Nifty Realty index hits lowest level since December 2016; DLF dips 5%

DLF, Prestige Estates Projects, Indiabulls Real Estate, Oberoi Realty, Mahindra Lifespace Developers, Brigade Enterprises and Sobha from the Nifty Realty index slipped in the range of 5 per cent to 10 per cent in intra-day trade on the National Stock Exchange (NSE). Of these, Mahindra Lifespace Developers, Brigade Enterprises and Prestige Estates Projects touched their respective 52-week lows. READ MORE  

1:45 PM

The stimulus and beyond: is a stronger demand support called for?

Structural reforms: features of the new normal

 

A number of major structural reforms were also introduced. These include repositioning of the public sector, decriminalization of certain corporate lapses, privatization of coal and other mineral mining, increased FDI limit in defence, ban on imports on specified defence weapons/platforms, and privatization of discoms in union territories. Direct listing of Indian companies abroad will enable them to raise capital overseas. In the case of agriculture, a genuine barrier-free all-India market for agricultural produce is a key feature of India’s new normal. These are far-reaching efficiency augmenting supply side reforms. READ MORE

1:41 PM

BROKERAGE VIEW:: Centrum Broking on Nippon Life India

Nippon Life India Asset Management (NAM-India) reported Q4FY20 revenue from operations of Rs2.75bn, lower to estimates, led by a fall in equity in the overall AUM. Opex saw a decline during the quarter led by lower employee cost/ other opex. Core operating profit grew 11.0% QoQ. Opex rationalisation in terms of variable pay (25% of EBE is variable) might protect profitability in FY21E. We like NAM-India given its pan-India distribution network and focus on sourcing granular retail AUM from B-30 cities. Also, it has added 290 corporate/HNI clients in H2FY20 (170 in Q3FY20) and it has partly regained lost market share lost in debt and liquid funds in the past year. We maintain our P/E multiple at 30.6x to arrive at a target price of Rs 284. BUY.

1:35 PM

NEWS ALERT | United Spirits to be delisted soon, reports CNBC-TV18

1:28 PM

NEWS ALERT :: Gold jumps to highest since October 2012

>> Gold rose over 1% on Monday to its highest in more than seven years as dismal US data underscored how badly the COVID-19 pandemic has damaged the world’s top economy, while palladium soared over 9% on better-than-expected demand outlook.

>> Spot gold was up 1.1% at $1,760.85 per ounce by 9:32 am, after rising to its highest since Oct. 12, 2012 at $1,763.51. U.S. gold futures gained 0.8% to $1,770.50.

1:24 PM

India VIX jumps 7%, crosses 40-mark

1:18 PM

FM's economic vaccine: Final tranche is high on reforms, low on stimulus

State-owned units will remain only in strategic areas, which, however, are yet to be defined, while those in other areas will be privatised, according to public sector enterprise policy, which the government will detail later.

 

Union Finance Minister (FM) Nirmala Sitharaman also gave leeway to states in terms of market borrowing, but much of it is conditional on reforms, such as the one-nation-one-ration card. READ MORE

1:11 PM

BROKERAGE VIEW:: Edelweiss Securities on L&T Technology Services

L&T Technology Services (LTTS) reported USD revenue decline of 2% QoQ in Q4FY20. EBITDA margin came in at ~ 19.8% (ex-one-off), in line with our estimate. Revenue contraction is attributable to a 9% QoQ dip in Plant Engineering (PE), overwhelming the robust 7% QoQ growth in the medical devices business. Industrial products and Telecom & Hi-Tech were marginally down QoQ. Management refrained from guiding for FY21, but mentioned they expect revenue to slide in Q1FY21 and the recovery to take place thereafter. While we remain bullish on the long-term prospects of the fast-growing ER&D and believe LTTS is in a pole position to benefit thereof, the near-term pain from COVID-19 forces our hand to cut LTTS’s EPS by 15% each for FY21E and FY22E. We are also slashing its target multiple from 20x to 17x in line with our sectoral adjustment. Maintain ‘BUY’ with a revised TP of Rs1,394 (Rs1,885 earlier) at 17x Q2FY22E EPS.

1:01 PM

Stimulus package to boost growth, but need sector-wise bailout: CEO poll

In a nationwide poll of 25 industry leaders on Sunday, 64 per cent said the package announced by Finance Minister Nirmala Sitharaman over the past five days will boost a sluggish economy, but 88 per cent of CEOs said they had been expecting sector-specific packages.

 

Some sectors like aviation, hospitality, travel and tourism, and automobile have witnessed zero cash flow since the lockdown began. Several companies from these sectors are either laying off people or have announced steep salary cuts. READ MORE

12:51 PM

BROKERAGE VIEW:: YES Securities on M&M Fin Services

Rating: ADD | Target Price: Rs 200

VIEW: Our FY21/22 earnings undergo severe cuts due to adverse adjustments to loan growth, NIM and credit cost. Retain ADD rating with a 12m TP of Rs200. While there is high uncertainty and a substantial near-term pain, the pro-cyclicality of franchise could drive a significant RoA/RoE bounce in FY22.

 

VALUATION: On a stand-alone basis, MMFS trades at 1.2x/5x FY22 ABV/EPS. Valuation is most sensitive to emerging asset quality picture.

Risk to our call: Prolonged Covid episode causing deeper impact on growth and AQ

12:49 PM

NEWS ALERT :: Zen Technologies looks to commercially manufacture ventilators

(Via BSE filing)