MARKET WRAP: Sensex ends 232 pts higher as financials, auto stocks rally
All that happened in the markets today
 "Brokers trade at their computer terminals at a stock brokerage firm in Mumbai (")
NSE's Nifty closed 65 points or 0.71 per cent higher at 9,270.90 levels.
The domestic equity market ended Wednesday's highly volatile session in the positive zone, mainly on account of buying in financial counters in the fag end of the session. Nifty Bank rallied 423 points or over 2 per cent to settle at 19,694.55 levels.
The S&P BSE Sensex ended at 31,686, up 232 points or 0.74 per cent while NSE's Nifty closed 65 points or 0.71 per cent higher at 9,270.90 levels. Volatility index, India VIX, slipped over 5 per cent to 41.28 levels.
Auto major Mahindra & Mahindra (M&M) gained over 5 per cent to Rs 387.40 and ended as the top gainer on the Sensex. Bajaj Finance (up 5 per cent), and HDFC Bank (up nearly 4 per cent) were next on the gainers' list. On the downside, ITC emerged as the top loser on the index - down around 6 per cent.
In the broader market, the S&P BSE MidCap index climbed 0.8 per cent to 11,480.58 while the S&P BSE SmallCap index ended at 10,701.31, up 0.5 per cent.
Buzzing stocks
NIIT Technologies zoomed 20 per cent to Rs 1420.50 on the BSE after the company reported a healthy 24.4 per cent year-on-year growth in earnings before interest, taxes, depreciation, and amortization (Ebitda) at Rs 198.8 crore for the quarter ended March quarter (Q4FY20). Ebitda margins improved by 91 basis points to 17.9 per cent against 17.0 per cent in year ago quarter. READ MORE
Shares of oil marketing companies (OMCs) witnessed steep correction, a day after the Centre announced one of the steepest hikes in duties on petrol and diesel in the recent past, by raising it by Rs 10 and Rs 13 per litre, respectively, in a notification issued late on Tuesday. READ MORE
ITC traded lower for the third straight day, falling 8 per cent to Rs 161 on the BSE in the intra-day deals on heavy volumes. The stock of cigarette manufacturer has slipped 12 per cent in the past three trading days on reports that the Health Ministry has notified new health warnings for tobacco products. At the close, the stock stood at Rs 163.80, down nearly 6 per cent.
Liquor stocks were under pressure for second straight day after some state governments hiked excise duty on liquor. United Breweries, Radico Khaitan, United Spirits, GM Breweries, Associated Alcohols & Breweries and Globus Spirits declined between 3 per cent and 7 per cent on the BSE. READ MORE
Auto major Mahindra & Mahindra (M&M) gained over 5 per cent to Rs 387.40 and ended as the top gainer on the Sensex. Bajaj Finance (up 5 per cent), and HDFC Bank (up nearly 4 per cent) were next on the gainers' list. On the downside, ITC emerged as the top loser on the index - down around 6 per cent.
In the broader market, the S&P BSE MidCap index climbed 0.8 per cent to 11,480.58 while the S&P BSE SmallCap index ended at 10,701.31, up 0.5 per cent.
Buzzing stocks
NIIT Technologies zoomed 20 per cent to Rs 1420.50 on the BSE after the company reported a healthy 24.4 per cent year-on-year growth in earnings before interest, taxes, depreciation, and amortization (Ebitda) at Rs 198.8 crore for the quarter ended March quarter (Q4FY20). Ebitda margins improved by 91 basis points to 17.9 per cent against 17.0 per cent in year ago quarter. READ MORE
Shares of oil marketing companies (OMCs) witnessed steep correction, a day after the Centre announced one of the steepest hikes in duties on petrol and diesel in the recent past, by raising it by Rs 10 and Rs 13 per litre, respectively, in a notification issued late on Tuesday. READ MORE
ITC traded lower for the third straight day, falling 8 per cent to Rs 161 on the BSE in the intra-day deals on heavy volumes. The stock of cigarette manufacturer has slipped 12 per cent in the past three trading days on reports that the Health Ministry has notified new health warnings for tobacco products. At the close, the stock stood at Rs 163.80, down nearly 6 per cent.
Liquor stocks were under pressure for second straight day after some state governments hiked excise duty on liquor. United Breweries, Radico Khaitan, United Spirits, GM Breweries, Associated Alcohols & Breweries and Globus Spirits declined between 3 per cent and 7 per cent on the BSE. READ MORE
Global Markets
Global shares struggled on Wednesday as mixed earnings, doubts about the easing of coronavirus lockdowns and simmering US-China tensions cast a pall over markets.
MSCI’s index of global shares was trading flat. The pan-European STOXX 600 was 0.3 per cent higher, with losses in oil and gas shares weighing on the index.
Wall Street futures were positive, with E-minis for the S&P500 up 0.6 per cent.
MSCI’s broadest index of Asia Pacific shares outside of Japan climbed 0.7 per cent. Japanese markets were closed for a holiday while China markets reversed early losses, sending the blue-chip index up 0.6 per cent.
In currencies, the euro resumed its fall, declining to a six-day low of $1.0816. The currency was still under pressure after Germany’s top court on Tuesday ruled that the European Central Bank’s quantitative-easing programme “partially violated” the German constitution.
In commodities, Oil prices rose above $31 a barrel as hopes for a recovery in demand as some countries ease coronavirus lockdowns offset a report showing a higher-than-expected rise in US inventories.
(With inputs from Reuters)
4:02 PM
MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial Services
"Markets were volatile as 9,100 levels held out as a key support for the Nifty in a day of mixed gains for its constituents. Financials led the gains, in anticipation of stimulus measures while FMCG, bluechip IT stocks and OMCs disappointed. The volatility in the indices is expected to continue as investors look out for trading cues in the form of stimulus measures by the government and global market trends".
3:39 PM
Sectoral trends on NSE at Close | FMCG stocks dip
3:38 PM
Sensex Heatmap at Close | 20 of 30 constituents end in the green
3:37 PM
CLOSING BELL | Indices snap 2-day losing streak
>> The benchmark S&P BSE Sensex closed at 31,685.75 levels, up 232.24 points or 0.74%
>> NSE's Nifty50, meanwhile, closed at 9,270.90 mark, up 65.30 points or 0.71%.
>> NSE's Nifty50, meanwhile, closed at 9,270.90 mark, up 65.30 points or 0.71%.
3:29 PM
MARKET CHECK | Top 5 gainers on the BSE at this hour
3:25 PM
Virus-hit German industrial orders fall at record rate, outlook grim, reports Reuters
Orders for German industrial goods fell in March at their steepest rate since records began in 1991 as demand collapsed due to the coronavirus epidemic, and prospects of a swift recovery in Europe’s biggest economy look bleak.
3:18 PM
NEWS ALERT :: Govt puts SUUTI stake sale on the back burner for now, reports CNBC TV18 quoting sources
3:17 PM
NEWS ALERT | Issues of airlines under discussion: Aviation Minister
(as reported by CNBC-TV18)
3:14 PM
MARKET UPDATE | M&M surges 5%
3:05 PM
Revenue bites: IT firms go aggressive on cost-cutting amid Covid-19 crisis
With growth slowing and demand environment uncertainty compounded by the Covid-19 pandemic, Indian information technology (IT) services majors are leaving no stone unturned to ensure their bottom lines remain least affected — at least in the short to medium term. READ MORE
3:01 PM
NEWS ALERT | April has been a complete washout, says Kansai Nerolac
>> May not see revival in decorative category in May
2:54 PM
NEWS ALERT | Kansai Nerolac reports 23.5% drop in net profit at Rs 65.4 cr vs 85.4 cr YoY
2:54 PM
NEWS ALERT | Kansai Nerolac announces dividend worth Rs 3.15/sh
2:50 PM
NEWS ALERT | SBI allows moratorium to NBFCs on case-to-case basis: sources to CNBC TV18
>> NBFCs seeking moratorium will be asked to present cash budget
>> SBI will consider credit support and moratorium on case-to-case basis
>> At least 25 NBFCs have reached out to SBI for additional loans
>> SBI will consider credit support and moratorium on case-to-case basis
>> At least 25 NBFCs have reached out to SBI for additional loans
2:39 PM
Axis Securities on Consumer Durables & Electricals
Covid-19 will have significant near and medium term implications on growth and earnings of consumer durables and hence our estimates bake in ~50% EPS compression in FY21 only to be recouped in FY22 –implying forgoing of 2 years of compounding. While the sector has corrected 15-18% over the last 2 months, the extent is not enough – it still underappreciates the severity of the earnings cut and demonstrates no multiple compression.
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First Published: May 06 2020 | 7:33 AM IST