Barometers near day's low; breadth negative

Key benchmarks traded near the day's low in morning trade. Barring pharma stocks, selling was witnessed across all counters. At 10:31 IST, the barometer index, the S&P BSE Sensex, was down 483.22 points or 1.52% at 31,379.86. The Nifty 50 index was down 126.30 points or 1.36% at 9,187.60.

Sentiment was affected by Franklin Templeton Mutual Fund deciding to close six debt schemes citing lack of liquidity in the debt market and unprecedented redemptions in these yield-oriented schemes. The six yield-oriented schemes in which investments have been stopped from Thursday (23 April) include Franklin India Low Duration Fund, Dynamic Accrual Fund, Credit Risk Fund, Short Term Income Plan, Ultra Short Bond Fund and Income Opportunities Fund.

In the broader market, the S&P BSE Mid-Cap index was down 0.89% while the S&P BSE Small-Cap index was down 0.7%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 632 shares rose and 1091 shares fell. A total of 107 shares were unchanged.

Buzzing Index:

The Nifty Pharma index was up 0.83% to 9,467.05, bucking weak market trend.

Lupin (up 4.25%), Glenmark Pharmaceuticals (up 3.98%), Aurobindo Pharma (up 2.13%), Cipla (up 1.43%), Sun Pharmaceutical Industries (up 1.35%), Cadila Healthcare (up 0.6%) and Divi's Laboratories (up 0.49%) were top gainers in pharmaceutical space.

Granules India gained 3.24% after the company said it that the US Food & Drug Administration (USFDA) has approved the Abbreviated New Drug Application (ANDA) filed by Granules Pharmaceuticals, Inc (GPI)., a wholly-owned foreign subsidiary of Granules India for Trospium Chloride extended-release capsules, 60 mg. Trospium Chloride extended-release capsules are a muscarinic antagonist indicated for the treatment of overactive bladder (CAB) with symptoms of urge urinary incontinence, urgency, and urinary frequency.

Earnings Impact:

MindTree was up 0.67% ahead of its Q4 results today, 24 April 2020.

Bharti Infratel fell 3.73% to Rs 159.95 after consolidated net profit rose 7% to Rs 649.50 crore on a 1% increase in revenue to Rs 3624.40 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax fell 14% to 866.20 crore during the period under review. EBITDA rose 12% to Rs 1,721 crore in Q4 March 2020 over Q4 March 2019.

The company said there is no significant impact of COVID-19 pandemic on the financial position and performance of the Group. Further, the Group is not expecting any significant changes in estimates as of now as the company is running its business and operations as usual without any major disruptions.

Mahindra CIE Automotive hit a lower circuit of 5% at Rs 77.65 after consolidated net profit slumped 86.4% to Rs 20.70 crore on 23.5% decline in net sales to Rs 1662.71 crore in Q1 March 2020 over Q1 March 2019. EBITDA declined 37% to Rs 187.10 crore in Q1 March 2020 as against Rs 297.40 crore reported in the same period last year. EBITDA margin fell to 11.7% in Q1 March 2020 from 14.4% posted in Q1 March 2019. Business margins affected by sales drop mainly due to COVID-19. The result was announced after market hours yesterday, 23 April 2020.

Stocks in Spotlight:

Axis Bank traded 2.98% lower at Rs 416.90. The bank said its board will consider borrowing/raising funds in Indian Currency/Foreign Currency by issue of debt instruments including but not limited to Bonds and Non-Convertible Debentures on 28 April 2020.

Ashok Leyland dropped 1.93%. The auto major said that the company has in tranches, acquired 157,96,406 shares of Hinduja Leyland Finance (HLFL) constituting 3.36% of the paid-up equity share capital of a subsidiary of the company. Consequent to the aforesaid acquisition, the company's shareholding in HLFL stands increased from 65.45% to 68.81%.

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