Sensex up 637 pts on govt's Rs 20-trn stimulus boost; awaits finer details

All that happened in the markets today

4:03 PM

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

After the stimulus package announced yesterday which accounts for around 10% of GDP, markets shot up by around 3% before paring some gains by the end of trade. The details are awaited regarding the math and allocation of the announced package and how much will be the fresh stimulus. If the details match the headline announcements, then this would significantly help allay fears surrounding the economy and businesses and its recovery path. Globally markets were weak fearing resurgence in virus infections and conflicting opinions regarding opening up of economies, while number of new infections continued to be a worry in India

3:48 PM

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

3:45 PM

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

3:36 PM

CLOSING BELL

The S&P BSE Sensex rallied 637 points or 2 per cent to settle at 32,009 while NSE's Nifty50 ended at 9,383.55, up 187 points or 2 per cent.

3:25 PM

BUZZING STOCK | Axis Bank top Sensex gainer; zooms 7%

3:12 PM

Maruti Suzuki posts 28% YoY fall in Q4 profit at Rs 1,322 crore

Auto major Maruti Suzuki on Wednesday reported 27.7 per cent year-on-year fall in consolidated profit at Rs 1,322.3 crore for the March quarter of FY20 (Q4FY20) while revenue dipped 15.2 per cent to Rs 21,473.1 crore. READ MORE  

Maruti Suzuki’s S-Presso

3:06 PM

Lockdown Impact | India Ratings pegs collective revenue loss at Rs 971 billion for 21 major states in April 2020

3:04 PM

BUZZING STOCK | Titan Co gains 2%

2:59 PM

NEWS ALERT | One-time impact of discontinuation of BS-IV impacted margin, says Maruti

2:49 PM

NEWS ALERT | Maruti Suzuki India's Q4 EBITDA margin hits 6-yr low at 8.5%: CNBC TV18

>> EBITDA at Rs 1,546.4 crore

2:47 PM

Earnings Alert | Maruti Suzuki India Q4

>> Revenue at Rs 18,198.7 crore 

>> Net profit at Rs 1,291.7 crore

2:43 PM

NEWS ALERT | Southwest Monsoon seen advancing over Andaman sea around May 16, says MeT Dept: CNBC TV18

2:38 PM

COVID-19 FALLOUT :: UK GDP shrinks by record 5.8% in March, reports Reuters

>> Britain’s economy shrank by a record 5.8% in March as the coronavirus crisis escalated

>> In the first three months of the year, GDP contracted by 2.0% from the last three months of 2019, the biggest drop since the depths of the financial crisis in late 2008, the Office for National Statistics said.

2:36 PM

Nestle India at day's low, down over 5% now in an otherwise strong market

2:35 PM

At $45 bn, India's PE/VC investment in 2019 highest in over 10 yrs: Report

India’s share in the APAC deal market increased to nearly 25 per cent in 2019 and the investment value was about 70 per cent higher than in 2018 and nearly 110 per cent higher than the previous five-year average. The top 15 deals in India, which constituted more than 35 per cent of total investment value in 2019, include five from real estate; three in IT and ITES; and the rest across BFSI, telecommunications, energy, and consumer technology. Notable large investments in 2019 included stakes in Reliance Jio Infratel, Pipeline Infrastructure, Axis Bank, GMR Airports, GVK Airport Holdings, and Paytm. READ MORE

2:25 PM

Vedanta delisting bid 'not serious', says Stakeholders Empowerment Services

“It can be said that offer is not serious, as expecting that investors will lap up the offer at a price which is less than 50 per cent of 52-week high, almost 45 per cent of book value (31st March 2019), a dividend yield of 20 per cent plus when interest rates are historic low with a chance of revival, amounts to questioning the wisdom of investors. Finally, is the price fair? The unequivocal answer is not at all,” SES analysts Varun Krishnan and JN Gupta have said in a note. READ MORE

2:17 PM

CPSE stocks rally; BHEL surges 25%, REC and Engineers India up over 10%

BEML, Bharat Electronics (BEL), Moil, Balmer Lawrie & Company, NMDC, Steel Authority of India (SAIL), Shipping Corporation of India and National Fertilisers were up in the range of 6 per cent to 10 per cent, while Rail Vikas Nigam, MSTC, India Tourism Development Corporation (ITDC) were locked in 5 per cent upper circuit on the BSE. READ MORE

2:16 PM

NEWS ALERT | PM Modi to meet chairpersons of empowered groups later today: ANI

2:14 PM

NEWS ALERT | Tata Motors restarts operations at select plants and dealerships: CNBC TV18

2:09 PM

Rupee closing

Rupee ends higher at 75.47/$ vs Tuesday's close of 75.50 against the US dollar

2:04 PM

New SIP registrations slip to 13-month low of 750,000 in April

The number of new registrations for systematic investment plans or SIPs slipped to a 13-month low of 750,000 in April.

 

Compared to March’s tally, it was 11 per cent less. As a result, the SIP closure ratio (the share of closure requests as a percentage of new SIPs) spiked to 72 per cent in April, from 70 per cent. At the same time, the number of closures saw some easing after crossing the 600,000-mark in March. READ MORE

1:55 PM

Escorts hits over 2-month high ahead of Q4 results; stock up 18% in 6 days

Shares of Escorts hit an over two-month high of Rs 819, surging 7 per cent, on the BSE on Wednesday ahead of the company's January-March quarter results (Q4FY20) results scheduled for tomorrow. The stock was trading at its highest level since March 6, 2020. The board of directors of the company is scheduled to meet on Thursday, May 14, 2020, to consider audited financial results for the quarter and year ended March 31, 2020. The board will also consider the payment of dividend for the fiscal, if any. READ MORE

1:53 PM

NEWS ALERT | JP Morgan likely to fund Vedanta promoter for delisting: CNBC TV18

-- Vedanta promoters also in talks with other banks, like Citi, for funding

1:45 PM

Europe trades lower in early trends

(Source: Reuters)

1:38 PM

STOCK ALERT :: BHEL sees sharp rally, jumps 22%

1:32 PM

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

1:25 PM

Rupee at day's low

(Source: Bloomberg)

1:19 PM

EXPERT VIEW | Aamar Deo Singh, Head-Advisory, Angel Broking on Vedanta delisting

Vedanta Ltd is likely to be taken private by Anil Agarwal, who is offering minority shareholders, Rs.87.5 for a share. Currently, Vedanta Resources along with group companies hold 50.14% stake and balance 49.86% is held by public shareholders. It would be a significant erosion of wealth for the existing shareholders as the stock has corrected by almost 50% since the start of the year, reducing the market capitalization of the company to around Rs 30,000 crores.

Covid-19 has had a serious impact on the metals industry, and Anil Agarwal is taking this opportunity to take the company private, that will provide his company, more operational and financial flexibility in a capital-intensive business. And as per India’s delisting rules, if the promoter’s holding exceeds 75% in the company, then the stock can be taken off from trading on the exchanges. In a nutshell, all the investors of the company, who have held shares of the company with high hopes, will have to be satisfied with what’s being offered as it does not leave much of an option for them.

1:13 PM

BROKERAGE VIEW :: HDFC Institutional Equities on MOFSL

Maintains BUY; Revised target price: Rs 633

>> For 4QFY20, broking segment PAT was hit by expansion costs and declined 7.8% QoQ, while steep MTM hit on AUMs hit the AMC as PAT declined 12.9% QoQ. Management sold bad loans to reduce NPLs, while slippages remained low resulting in the housing finance business delivering a PAT growth of 117.3/9.3% YoY/QoQ. Large MTM loss of Rs 3.5bn on the firm’s treasury, however resulted in a consolidated (ex. MOHL) net loss of Rs 2.7bn.

>> The AMC business is showing traction despite a difficult environment. While MOFS is expanding its broking business, we remain wary of lower ADTVs over FY21E and increased competition. We maintain a BUY with a TP of 633 i.e. P/E of 12/25x Broking/AMC business Mar-22E EPS. Stock is trading at MOFS (ex. MOHL) FY21/22E P/E of 11.4/13.0. Key Risks: prolonged lackluster markets, and any sharp decline in fund raising.

1:06 PM

BROKERAGE VIEW:: Axis Securities on stimulus package announced by PM Modi

PM Modi in his address to the nation yesterday made the major announcement of economic stimulus package of Rs 20 trillion, equivalent to ~10% of India's GDP. While the details of the package are still awaited, but prima facie, the size of the package is significantly higher than market expectations. Axis Securities’ believe that the stimulus is unlikely to be significantly front loaded but it clearly indicates that the government's is willing to take all the necessary measures to revive the economy. The stimulus package will be a big positive for the financial sector as it will significantly cushion the impact of NPAs with sovereign guarantees.

 

Apart from the financial sector, beaten down sectors across the board will see a short term rally. Based on the announcements, our near term buy recommendations are large and mid-cap banks, NBFCs, quality PSUs and other value picks. Thus, in the short term value buying is more likely to be dominant strategy.