MARKET WRAP: Sensex ends 743 pts higher as RIL jumps 10% on Facebook deal

All that happened in the markets today

4:16 PM

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

The Indian markets, including almost all sectoral indices, ended mostly in the green, with Reliance Industries contributing around 50% of the gains in the benchmark indices. The market also rallied on the expectation of a stimulus package to be announced soon. ACC and CRISIL also announced better quarterly results, which aided sentiment. With European markets expecting an ease in lockdown measures, Indian markets will also be looking forward to news regarding the peaking of infections, so that the economy may be opened for business as soon as possible. Dabur, which announces its results tomorrow, will be the first in the FMCG category for the quarter. Investors will look out for an insight into the FMCG sector’s performance during the lockdown.

3:56 PM

Technical Observation by Nagaraj Shetti - Technical Analyst, HDFC Securities

After showing sharp weakness on Tuesday, Nifty witnessed an excellent bounce on Wednesday and closed the day higher by 2.29%. We observe formation of long bull candle on Wednesday, which signals a buy on dips opportunity.

 

The positive sequence of higher tops and bottom continued and Tuesday's low of 8,909 could now be considered as a new higher bottom of the sequence. Hence, one may expect further upside in the coming sessions.

 

Nifty is currently moving in a rising wedge type formation and is currently moving up from near the lower end of wedge at 8,850 levels. This rising wedge formation, after a sharp down trend of March and April 2020 could hint at negative pattern implication in the near term. But this negative implication could only activate on a move decline 8,800-8,750 levels.

 

The short term trend of Nifty is positive, one may expect further upside in the coming sessions. Upside levels to be watched at 9,350-9,400 levels in the next few sessions and immediate support is placed at 9,050.

3:47 PM

Sectoral gainers and losers on the NSE

3:42 PM

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

3:36 PM

CLOSING BELL

The S&P BSE Sensex surged 743 points or 2.42 per cent to 31,379.55 levels while Nifty gained 206 points or 2.29 per cent to end at 9187.30. 

3:31 PM

NEWS ALERT | Cabinet nod to increase subsidy on phosphatic fertiliser by 5% YoY: Govt

-- No decision on restarting flights as of now: Govt

3:28 PM

How Covid-19 spoilt the oil bonanza

Oil has now dropped by about 65 per cent to $20 a barrel, principally because the outbreak of Covid-19 and the consequent decline in economic activity have destroyed demand in large parts of the world. The proposal for a production cut by members of the Organisation of the Petroleum Exporting Countries (OPEC) by about 10 per cent of global output is now considered too small to make an impact. READ MORE

3:21 PM

Why investors shouldn't try buying troubled consumer durable stocks on dips

The nationwide lockdown will snatch away two good quarters from white goods manufactures. For companies, such as Voltas, Blue Star, Havells, Whirlpool, and Crompton Greaves Consumer Electricals, the March and June quarters are the most critical and active periods, accounting for 50–55 per cent of annual revenues. Air conditioner makers, in particular, draw 42–45 per cent of their revenues during March-June, according to brokerage Nirmal Bang. READ MORE  

3:13 PM

Bajaj Healthcare locked in 10% upper circuit; hits record high on HCQ boost

“The company has received FDA approval for manufacturing Hydroxychloroquine Sulphate Bulk Drug (API) and formulation for its tablets. Hydroxychloroquine Sulphate has been recommended by several countries, including the US, with limited dosage for Covid-19 patients and as a- preventive for high-risk individuals like healthcare workers,” Bajaj Healthcare said in a press release on April 17, 2020. READ MORE

3:12 PM

NEWS ALERT | Ruchi Soya Industries locked in upper circuit for 57th straight trading day

-- The stock hit a new high of Rs 306 today, zooming 1712 per cent or 18 times from Rs 16.10 on January 27, 2020.

-- The stock is trading under trade-to-trade or 'T' segment, where shares can be traded only for compulsory delivery basis

3:08 PM

NEWS ALERT | Govt approves ordinance to protect health workers from violence

-- Those attacking health workers to face imprisonment and fine: Prakash Javadekar

3:08 PM

SECTOR WATCH:: Nifty Media index gain 6%; TV18 Broadcast, Zee Entertainment, Balaji Telefilms up over 14%

3:06 PM

STOCK ALERT | AAVAS Financiers, AU Small Finance Bank locked in 5% lower circuit in an otherwise firm market

2:58 PM

NEWS ALERT | Jio-Facebook deal strong signal of India’s economic importance: Anand Mahindra

2:58 PM

Nifty sectoral indices at this hour

2:54 PM

NEWS ALERT | SAIL's cash collections hit record low amid Covid-19 pandemic: Report

>> Debt level at Rs 52,000 cr; may rise further

>> Co says, situation temporary

>> SAIL mulls postponing delivery

2:43 PM

Firms await stimulus, warn of layoffs: Ficci survey on coronavirus impact

The survey, jointly conducted by industry body Ficci and tax consultancy Dhruva Advisors by seeking responses from about 380 companies across sectors, also said that businesses are grappling with "tremendous uncertainty" about their future.

A substantial majority of the respondents do not foresee a positive demand outlook for their business in this fiscal, with 70 per cent of the surveyed firms expecting a degrowth in sales in the fiscal year 2020-21. READ MORE

2:30 PM

EXPERT COMMENT | Quote on Reliance-Facebook Deal by Deepak Jasani- HoR, HDFC Securities

The deal between Facebook and Reliance is a positive for Reliance Industries coming under the current trying times. The two can combine their unique strengths using their network of users, share their data, develop apps for social, digital payments, gaming, shopping, flight and hotel bookings, etc. The combination of whatsapp expertise and user base, R Jio’s vast subscriber base and Facebook’s deeply entrenched userbase and technology is theoretically a win-win for all.

 

Reliance could use the proceeds of this transaction to cut its debt and overcome doubts about debt reduction process following the oil price crash and doubts over its deal with Saudi Aramco. Clearance from the Govt for the deal will be crucial. Reliance’s stock price has risen post the announcement by 13%+, compared to 12.2% rise in Aug 2019 post the announcement of a bigger deal with Saudi Aramco. The reaction of its stock price to this development could be over in a couple of days and the stock could then fall in line with the overall market.

2:23 PM

Top gainers on BSE today

COMPANY	PRICE(rs)	CHG(%)
HATHWAY CABLE	18.97	19.99
TV18 BROADCAST	19.65	14.91
ZEE ENTERTAINMEN	144.90	12.06
GE SHIPPING CO	227.35	10.53
RELIANCE CAPITAL	6.42	9.93

2:13 PM

Realty fund managers cautious about investments after coronavirus lockdown

Motilal Oswal Real Estate, part of Motilal Oswal Private Equity, is one such fund manager which does not want to make any new commitments. It recently raised Rs 1,150 crore domestic real estate fund. “As we have recently raised a fund, we will not be looking at new commitments at least over the next 12 months,” said Sharad Mittal, Director and CEO at Motilal Oswal Real Estate. “At this point in time, our priority would be to focus on managing our existing portfolio,” he added. READ MORE 

2:06 PM

Coronavirus lockdown measures drag Tata Steel's fourth quarter sales

The steel major recorded sales of 4.03 million tonnes, a 17 per cent drop from the previous quarter and 14.61 per cent in the same time last year. Tata Steel said that the lockdown led to logistic issues and lower demand driven by the shutdown of customer operations in automotive, construction and other segments since last few days of March 2020. Production volume was however up by six per cent to 4.74 million tonnes in the fourth quarter. READ MORE

1:56 PM

Covid-19 :: A bumpy ride ahead for the Indian stock market

The stock market’s gyrations over the past few weeks have reflected wild mood swings across the investor community. First, the benchmark Nifty dropped by about 40 per cent from its all-time high of 12,430 recorded on January 20, to a low of 7,511 on March 24. It has subsequently bounced by about 20 per cent to near 9,000 levels. READ MORE

1:43 PM

OMCs, RIL better placed; oil producers stare at losses as crude plunges

The sharp fall of 25 per cent in the Brent crude oil price to below $19 a barrel over two days is not a good news for domestic oil producers, such as ONGC, Oil India and even Vedanta, whose subsidiary Cairn India is involved in oil production and exploration, as well as Reliance Industries (RIL). Oil marketing companies (OMCs), too, will be hit in the short run, but they stand to gain if oil prices sustain at lower levels. Globally, the demand-supply mismatch, with oil supplies exceeding demand, has led to storage issues. This was the key reason for WTI crude oil May futures tumbling into negative territory, and Brent crude prices slipping to $25 levels on Monday, even as major oil-producing countries have announced deep output cuts. On Tuesday (11.28 pm IST), Brent prices fell another 27 per cent. READ MORE

1:42 PM

MARKET UPDATE:: Broader indices underperform benchmarks

1:35 PM

Asian Paints gains 5% amid a historic drop in oil prices, nears record high

Shares of Asian Paints hit an over one-month high of Rs 1,817, up 5 per cent on the BSE on Wednesday on the back of historic drop in crude oil prices. The stock of the decorative paints leader was trading at its highest level since March 13 and rallied 21 per cent in the past one month. In comparison, the S&P BSE Sensex was up 4 per cent during the period. It hit an all-time high of Rs 1,916 on March 9, 2020. READ MORE

1:27 PM

Contribution to the S&P BSE Sensex's 700-point up move today

1:19 PM

Europe opens higher

1:11 PM

STOCK ALERT :: RIL hits 10% upper circuit

>> However, the stock is trading on future & option (F&O) segment, which doesn't have any circuit limits

1:04 PM

NEWS ALERT | Cabinet minister Prakash Javadekar to address media at 3 pm today

12:56 PM

What makes IRCTC click in the travel sector amid the Covid-19 pandemic?

So far in calendar year 2020, stock prices of BLS International Services and Thomas Cook (India) have crashed 50.3 per cent and 49 per cent, respectively till Tuesday, while that of Cox & Kings, International Travel House and Crown Tours have decline in the range of 5 to 44 per cent. On the contrary, stock price of IRCTC and VMV Holidays have zoomed 56.55 per cent and 22 per cent, respectively on the BSE. In comparison, the S&P BSE Sensex has skid 26 per cent. READ MORE