Indian shares closed on a flat note on Friday as finance minister's economic package failed to impress investors
Sensex climbed around 300 points from its intraday low to close at 31,097.73, while Nifty settled at 9,136.85
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15 May 2020, 03:34:30 PM IST
Indian benchmark indices recouped early losses to end flat in Friday’s trading session. Sensex jumped about 300 points from day’s low to close at 31,097.73, while Nifty settled at 9,136.85.
Bharti Airtel and Asian Paints – surging 2-3% -- were the top Sensex gainers. M&M, Asix Bank, IndusInd Bank were among the top laggards on the 30-share barometer.
While most sectoral indices closed in the red, Nifty Metal ended 1.4% higher.
Of 30 shares in the Sensex, 20 closed in the red.
15 May 2020, 02:58:02 PM IST
Motilal Oswal retains 'neutral' on Escorts with a target price of ₹768
Motilal Oswal has retained 'neutral' rating on Escorts with a target price of ₹768 and 3% downside.
"We are upgrading our EPS estimates by 3%/2% for FY21/22E as we tweak our volumes for tractors and growth for other businesses. Our estimates are yet to factor in the benefits from its partnership with Kubota. Valuations at 15.4x/12.4x FY21/22E consol. EPS largely reflects the expected recovery. Maintain Neutral with TP of INR768 (~12x Mar’22E consol. EPS, in line with 5-year average P/E)," the brokerage said in a note.
15 May 2020, 02:45:58 PM IST
Biocon’s Q4 slips due to logistics, stock under pressure
The disruption in business due to covid-19 has proven to be acute for Biocon Ltd. With its Q4 figures trailing far behind Street estimates, the firm may struggle to show growth in the coming two quarters as well. Needless to say, the stock dipped about 3% on Friday.
The fall in revenues is worrisome. Revenues were about 13% lower than what analysts had factored in, who assumed there was some notable pre-buying among consumers. This can also be seen in the about 12% year-on-year fall in its branded formulations in Q4.
One of the huge concerns has been the bigger dent in the biologics division’s revenues, which fell 21% year-on-year. However, the loss is also because of the logistics and supply chains that were impacted in the latter part of Q4. While the company has maintained this is a one-time covid’19-related impact, the challenges are likely to persist in the first two quarters due to the lockdown.
15 May 2020, 02:43:52 PM IST
Rupee settles 2 lower
The rupee pared initial gains and provisionally settled 2 paise lower at 75.58 against the US dollar on Friday as investors awaited fresh cues from further announcements on the fiscal stimulus package.
On Thursday, the rupee had settled 10 paise lower at 75.56 against the US dollar.
15 May 2020, 02:33:37 PM IST
Yes Securities puts 'buy' rating on Manappuram Finance
The brokerage has put a buy rating on Manappuram Finance with a target price of ₹165 and 34.2% upside.
"Cut FY21/22 earnings by 21%/11% (revision from Q3 estimates)
due to adverse adjustments in loan growth and credit cost. Retain BUY rating with a 12m TP of Rs165. Robust profitability in GL business (RoA of 6.5%+) to mitigate Covid impact on other loan segments. Overall RoA/RoE delivery to be resilient in FY21/22," the brokerage said in a note.
15 May 2020, 02:12:16 PM IST
SC seeks reply of Centre, RBI on plea of CREDAI on loan moratorium
The Supreme Court Friday issued notices to the Centre and the RBI on a plea of CREDAI on whether real estate firms are eligible for loan moratorium policy of the central bank.
15 May 2020, 02:07:05 PM IST
Ramco Cement May Future between ₹564 and ₹567:Yes Securities
The brokerage has put 'buy' rating on Ramco Cement with a target price of ₹612 and a stop loss of ₹544.
"Cement stocks are relatively holding ground; while within cement space, Ramco cement is bouncing off support zone. It consolidated throughout the previous week, and has surpassed immediate hurdle of 560 in today’s trade. From data point of view, after a prolonged downtrend, sustenance above 560 could attract short covering which could lead stock prices higher till 620 zone. Levels of 550-545 should be considered as risk management level for buy positions as any decisive break below these range could void bullish stance on the stock. Meanwhile, minor recovery might be there, however major move on the upside is unlikely in the benchmark Nifty. Hence, focusing on stocks which are relatively holding ground is advisable," Yes Securities said in a note.
15 May 2020, 01:46:25 PM IST
Mahindra LifeSpaces appoints MD & CEO
Mahindra Lifespaces Developers has approved the appointment of Arvind Subramanian as managing director and chief executive officer (MD & CEO), with effect from 1 July, 2020.
15 May 2020, 01:39:38 PM IST
European markets open firm
European stock markets rebounded on Friday, after tanking on a steep rise in jobless claims in the US and deepening concerns over the economic impact of the novel coronavirus.
London's FTSE 100 index jumped 1.3%. In the eurozone, Frankfurt too added 1.3%, Madrid rose by 0.6%, Milan gained 0.8% and Paris advanced 1.1%, despite a subdued session in Asia.
15 May 2020, 01:30:54 PM IST
Most BSE SmallCap shares up
15 May 2020, 01:24:28 PM IST
BSE MidCap stocks mixed
15 May 2020, 01:12:02 PM IST
Southwest monsoon to hit Kerala on 5 June
The onset of southwest monsoon over Kerala this year is likely to be delayed by four days, the India Meteorological Department (IMD) said on Friday. The monsoon is expected to hit the southern state by June 5, four days after its normal onset date.
15 May 2020, 01:09:47 PM IST
Top Nifty laggards
15 May 2020, 01:02:56 PM IST
Mphasis stock gains over 4%
Shares of IT services provider, Mphasis, firmed up 4.5% to ₹839.75 on the BSE, after the company reported a 32.7% year-on-year (YoY) rise in its consolidated net profit to ₹353.2 crore for the March quarter. The company's net profit was at ₹266.1 crore in the year-ago period.
15 May 2020, 12:20:27 PM IST
World Bank to provide $1 bln to strengthen India's social safety net
The World Bank on Friday announced $1 billion in funding for accelerating India’s covid-19 social protection response programme to support the country’s efforts at providing social assistance to poor and vulnerable, hit the hardest by the coronavirus pandemic.
This is over and above the $1 billion in support provided by the multi-lateral agency last month for strengthening India’s health sector. (Full report)
15 May 2020, 12:16:54 PM IST
InterGlobe Enterprise signs agreement to participate in Virgin Australia sale
IndiGo promoter Rahul Bhatia-owned InterGlobe Enterprises (IGE) has signed an agreement to participate in the sale process of Virgin Australia, a spokesperson of the company said in a statement on Friday.
However, the company said that it is bound by the confidentiality requirements of the agreement and is unable to say anything further at this stage.
"As regards Virgin Australia, InterGlobe Enterprises has signed an agreement to participate in the sale process and is bound by the confidentiality requirements of that agreement," a spokesperson of InterGlobe Enterprises said.
15 May 2020, 12:03:59 PM IST
Top laggards on Nifty Auto
15 May 2020, 11:19:46 AM IST
Sensex dropped over 200 points in opening session on Friday tracking losses in index heavyweights HDFC Bank, ICICI Bank and Reliance Industries as investors decoded the impact of ₹20 trillion economic package.
After touching an intraday low of 30,779.93, the 30-share index was 321 points or 1% lower at 30,788.88.
Similarly, NSE Nifty slipped about 80 points, or nearly 1%, to 9,068.75.
15 May 2020, 11:11:02 AM IST
Rupee rises 6 paise in early trade
The rupee appreciated marginally by 6 paise to 75.50 against the US dollar in early trade on Friday as investors await fresh cues from further announcements on the fiscal stimulus package.
On Thursday, the rupee had settled 10 paise lower at 75.56 against the US dollar.
15 May 2020, 11:08:26 AM IST
Organised dine-in restaurants to see 40-50% dip in revenue: Crisil
India’s lengthy lockdown will hurt the country’s organized dine-in restaurants business that could witness a 40-50% dip in revenue in the current financial year, Crisil Research said in a research note on Thursday.
Moreover, once the lockdown is further eased, Crisil expects recovery to be “gradual" as consumers shy away from crowded places. This, Crisil said, could put thousands jobs at risks, prompt unviable restaurants to shutter down and even impact suppliers and vendors that work with eateries as restaurants look at reducing their fixed costs. (Full report)
15 May 2020, 11:02:27 AM IST
SpiceJet down3%, IndiGo slips 2%
Cash-strapped Indian carriers, which are currently grounded due to government imposed lockdown, will require funding of up to ₹35,000 crore till 2022-2023 as their profitability is expected to be hit by lower revenue and higher fixed costs in the near term, credit rating agency ICRA said in a statement on Thursday.
15 May 2020, 10:52:42 AM IST
Top losers on Nifty Bank, index down nearly 2%
15 May 2020, 10:45:46 AM IST
Nifty Metal index up 1%; top gainers
15 May 2020, 10:34:06 AM IST
Angel Broking puts 'buy' on Bharti Airtel
The brokerage has put 'buy' rating on Bharti Airtel with a target price of ₹629 and 16.6% upside.
"Telecom operators have increased tariffs by ~35% in Nov’19. There is a possibility of another round of tariff hikes by telecom companies in FY21 given that tariffs are still very low . If Vodafone Idea goes out of business, Bharti would benefit significantly from addition of subscribers," Angel Broking said in a note.
15 May 2020, 10:28:36 AM IST
Most sectoral indices on NSE in the red
15 May 2020, 10:22:36 AM IST
Yes Securities retains 'buy' on ABB India
The brokerage has retained buy rating on ABB India Ltd with a target price of ₹961 and sees 15% upside.
"We expect sharp EBITDAM recovery in CY21 led by i) Increasing contribution of high margin ‘electrification products’, ii) Exit from solar inverter business which has wafer thin margins, iii) Higher sales contribution by exports, products and services, iv) Increase in local content & v) Efficiency improvement through cost rationalization," Yes Securities said in a note.
"The Stock is currently trading at 58x TTM earnings vs 15‐yr average trailing P/E of ~64x, implying ~10% discount. We retain ‘BUY’ rating with TP of Rs961 at 45x on Mar’22 earnings," it added.
15 May 2020, 10:17:19 AM IST
Manappuram Finance up 4%
The non-banking financial company on Thursday reported nearly 44% increase in net profit at ₹398.20 crore for the quarter ended March 2020, on robust interest income. Manappuram Finance had posted a net profit of ₹277.39 crore during the corresponding period of the preceding fiscal.
15 May 2020, 10:11:46 AM IST
HDFC Ltd up 0.5%
The mortgage lender plans to raise up to ₹5,000 crore via secured redeemable non-convertible debentures.
15 May 2020, 10:08:31 AM IST
Ashok Leyland down 3.7%
Hinduja Group's flagship firm Ashok Leyland on Thursday said a board panel has approved raising up to ₹500 crore through issuance of non-convertible debentures (NCDs) on private placement basis.
15 May 2020, 10:01:37 AM IST
Aurobindo Pharma down 0.5%
The pharma company has paid settlement amount of ₹22 million to SEBI for allegedly violating the market regulator’s insider trading norms.
15 May 2020, 09:55:23 AM IST
Indiabulls Real Estate down 0.6%
The realty firm on Thursday reported a consolidated net loss of ₹109.78 crore for the quarter ended March due to lower income. Indiabulls Real Estate Ltd had posted a net profit of ₹108.56 crore in the year-ago period.
15 May 2020, 09:47:37 AM IST
Unichem climbs 6%
The company has received establishment inspection report from the US FDA for its active pharmaceutical ingredients (APIs) facility at Roha.
15 May 2020, 09:43:12 AM IST
Biocon falls nearly 4%
Biocon Ltd posted a 42% slump in its consolidated net profit to ₹123 crore for January-March (Q4) as its flagship operations were hit by the disruption caused by the covid-19 pandemic. Revenue of its subsidiary Biocon Biologics was down by a fifth at ₹357 crore due to operational challenges related to coronavirus and less than expected contribution from its partners, the company said in an exchange filing.
15 May 2020, 09:39:39 AM IST
Cipla up 0.3%
After initially rejecting the government’s offer, Cipla has approached the Indian Council of Medical Research (ICMR) for non-exclusive licenses to produce the antibody testing kit developed by the National Institute of Virology in Pune, ICMR said on Thursday.
15 May 2020, 09:26:38 AM IST
Indian benchmark indices opened on a tepid note in Friday's trading session. At 9:25 am, Sensex dropped 148 points or 0.5% at 30,974.64. Nifty retreated about 44 points or 0.5% to 9,098.90.
15 May 2020, 09:07:40 AM IST
Indian stocks were in the green zone in the pre-opening session on Friday. At 9:04 am, Sensex climbed 230 points or 0.7% to 31,353, While Nifty advanced about 40 points or 0.4% to 9,181.
15 May 2020, 08:53:27 AM IST
Second tranche of economic package
Finance Minister Nirmala Sitharaman on Thursday unveiled the details of the second tranche of the ₹20 trillion economic package with a focus on migrant workers, street vendors and small farmers. (Full report)
15 May 2020, 08:49:12 AM IST
Markets at close on Thursday
India stocks fell, retreating from yesterday’s biggest gain in almost two weeks, as government's ₹20 trillion bailout package failed to cheer investors.
Sensex tumbled 886 points or 2.8% to close at 31,122.89 while Nifty retreated 240 points or 2.6% to end at 9,142.75.
15 May 2020, 08:47:38 AM IST
Brent crude was up 1 cent at $31.13 a barrel by 0115 GMT, after rising nearly 7% on Thursday. The global benchmark is roughly flat on the week after rising for the previous two weeks.
Giving up earlier gains, West Texas Intermediate (WTI) oil was down 13 cents, or 0.5%, at $27.43 a barrel, having jumped 9% in the previous session. WTI is still heading for a third weekly gain, up more than 10%.
15 May 2020, 08:44:26 AM IST
Asian stocks mixed
Asian stocks traded mixed Friday as investors awaited data that may show China’s post-lockdown economic recovery is picking up steam.
Japan’s Topix index fell 0.35%.
Hong Kong’s Hang Seng declined 0.1%.
South Korea’s Kospi index was uchanged.
Australia’s S&P/ASX 200 Index gained 0.5%.
The Shanghai Composite rose and Singapore's SGX Nifty were unchanged too.
15 May 2020, 08:44:26 AM IST
Wall Street closes with strong gains
Wall Street surged on Thursday as investors weighed the prospect of economic recovery against bellicose remarks from President Donald Trump regarding US-China trade and a whistleblower's dire warnings about the US response to the coronavirus pandemic.
The Dow Jones Industrial Average rose 377.37 points, or 1.62%, to 23,625.34, the S&P 500 gained 32.5 points, or 1.15%, to 2,852.5 and the Nasdaq Composite added 80.55 points, or 0.91%, to 8,943.72.
Of the 11 major sectors in the S&P 500, all but consumer staples closed higher, with financials and energy companies enjoying the biggest percentage gains. (Reuters)