Shares hold firm at higher levels; India VIX at 34

key barometer indices hovered near the day's high in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, was up 367.21 points or 1.14% at 32,481.73. The Nifty 50 index was up 106.15 points or 1.13% at 9,487.05. Positive cues from other Asian indices boosted sentiment.

The S&P BSE Mid-Cap index was up 1.11% while the S&P BSE Small-Cap index was up 1.07%. Both these indices trailed the Sensex.

The market breadth was strong. On the BSE, 1299 shares rose and 784 shares fell. A total of 143 shares were unchanged. In Nifty 50 index, 42 stocks advanced while 8 stocks declined.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 4.56% to 33.74. The Nifty April 2020 futures were trading at 9,459.95, a discount of 21.85 points compared with the spot at 9,481.80.

On the options front, the Nifty option chain for 30 April 2020 expiry showed maximum call open interest (OI) of 38.72 lakh contracts at the 9,500 strike price. Maximum put OI of 37.61 lakh contracts was seen at 9,000 strike price.

Earnings Impact:

Axis Bank declined 2.97% after the bank reported a net loss of Rs 1387.78 crore in Q4 March 2020 compared with net profit of Rs 1505.06 crore in Q4 March 2019. Total income rose 10.34% to Rs 20,219.57 crore in Q4 March 2020 over Q4 March 2019.

The bank's provisions and contingencies surged 185.09% to Rs 7730.02 crore in Q4 March 2020 over Q4 March 2019. The provision amount includes Rs 3,000 crore related to Covid-19, taking the overall additional provisions held by the bank to Rs 5,983 crore. The bank's gross non-performing assets (NPAs) stood at Rs 30233.82 crore as on 31 March 2020 as against Rs 30073.02 crore as on 31 December 2019 and Rs 29789.44 crore as on 31 March 2019. The ratio of gross NPAs to gross advances stood at 4.86% as on 31 March 2020 as against 5% as on 31 December 2019 and 5.26% as on 31 March 2019.

Atul fell 1.68%. The company's consolidated net profit jumped 26.6% to Rs 141.25 crore in Q4 March 2020 as against Rs 111.56 crore reported in Q4 March 2019. Fourth quarter net sales declined 8.7% to Rs 965.47 crore on year-on-year basis. The result was announced yesterday, 28 April 2020.

Stocks in Spotlight:

Shares of Hexaware Technologies were up 1.83% at Rs 292.40, ahead of its quarterly result today, 29 April 2020.

Strides Pharma Science soared 16.82% to Rs 437.20 after the company announced that it has developed and commercialized Favipiravir antiviral tablets. Favipiravir is an antiviral medication that was initially developed to treat influenza in Japan. The drug is a generic version of Avigan of Toyama Chemical, Japan. In February 2020, post the outbreak of Novel Coronavirus (Covid-19), Favipiravir was studied in China and several other countries as an experimental treatment of Covid-19. The drug has demonstrated positive outcomes, including a reduction in the duration of Covid-19 and improved lung conditions for the patients.

Spandana Sphoorty Financial hit an upper circuit of 5% at Rs 432.40 on bargain hunting after the company said 79% of its 1,006 branches have been operational since 20 April 2020. The rest of its branches are expected to open soon, following the lifting of the national lockdown. Almost none of Spandana's branches are in 'Red' zones, given the company's rural footprint.

Shares of the microfinance lender slumped 26.39% in the past seven sessions to end at Rs 411.85 on 28 April 2020, from its recent closing high of Rs 542.25 recorded on 17 April 2020.

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