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
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14 May 2020, 03:39:33 PM IST
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.
Shares of Hero MotoCorp, L&T, Maruti Suzuki and Ultratech Cement – surging 1-3% -- were top Sensex gainers. Infosys and Tech Mahindra, each closing over 5% lower, were top laggards on the 30-share barometer.
IT stocks witnessed heavy selling after a Gartner Inc firm predicted 8% contraction in the sector due to covid-induced crisis. NSE IT index closed 3.6% lower. Barring Nifty FMCG and Nifty Pharma, all sectoral indices on the NSE closed in the red.
Of 30 Sensex shares, 23 closed in the red. Finance minister Nirmala Sitharaman will announce details of the second tranche of the ₹20 lakh crore economic package today in a press conference at 4 pm.
14 May 2020, 03:05:43 PM IST
Relief measures more beneficial for government-run banks, says Motilal Oswal
Motilal Oswal Financial Services Ltd believes that the benefit would be more for government-run banks as their non-performing loan (NPL) formation in this segment is materially higher and they would now be able to tide over the current situation by providing adequate liquidity to the borrower. Private banks have displayed better underwriting in this segment and their NPL is less than one-third of PSU banks; however, it would also stand to benefit with gains being relatively more for mid-tier banks given their relatively higher," it said.
“With announcement of the new measures, NBFCs that are most likely to be positively impacted are Shriram City Union Finance, Cholamandalam Investment and Finance Company and Repco Home Finance. We maintain our preference toward large private banking franchises with robust liability mix and diversified asset base," Motilal Oswal said.
14 May 2020, 02:57:13 PM IST
Top gainers and losers on Nifty
14 May 2020, 02:46:39 PM IST
Rupee settles lower
The rupee slipped 10 paise to close at 75.56 (provisional) against the US dollar on Thursday, tracking weak domestic equities.
The local unit opened weak at 75.57, and finally settled at 75.56 against the US dollar, down 10 paise over its previous close.
14 May 2020, 02:45:49 PM IST
Escorts Q4 earnings
Escorts March quarter net profit rises to ₹1.40 billion versus profit of ₹1.21 billion rupees year ago.
Company’s Q4 revenue from operations stood at ₹13.81 billion versus ₹16.32 billion year ago.
14 May 2020, 02:25:30 PM IST
Jefferies maintains 'buy' on Maruti Suzuki with a price target of ₹6,000
“The near-term outlook remains weak amid Covid, but demand shift toward small cars and preference for personal mobility provide silver linings," Jefferies analyst Nitij Mangal wrote in a note.
The brokerage has maintained 'buy' raring on the stock with a price target of ₹6,000.
The auto industry will see a strong rebound in 2022 on a low base after two years of plunging sales. Replacement cycle will kick in given the rising age of vehicles. Estimates earnings per share will grow 35% in 2022.
14 May 2020, 01:58:30 PM IST
Hong Kong stocks end with more losses
Hong Kong shares tumbled Thursday with the rest of Asia's markets after the head of the Federal Reserve warned about the economic impact of shutdowns caused by coronavirus.
The Hang Seng Index sank 1.45%, or 350.56 points, to 23,829.74.
The benchmark Shanghai Composite Index fell 0.96%, or 27.71 points, to 2,870.34, while the Shenzhen Composite Index on China's second exchange shed 0.94 percent, or 17.16 points, to 1,805.70. (AFP report)
14 May 2020, 01:56:39 PM IST
Zinc futures down on muted demand
Zinc prices on Thursday fell 0.59 per cent to ₹151.35 per kg in futures trade as speculators reduced their exposure taking negative cues from the spot market.
On the Multi Commodity Exchange, zinc for delivery in May declined by 90 paise, or 0.59 per cent, to ₹151.35 per kg in a business turnover of 11,196 lots.
Similarly, the metal for delivery in June was trading lower by Re 1, or 0.65 per cent, to ₹153.10 per kg in 248 lots.
14 May 2020, 01:55:29 PM IST
Copper futures rise on fresh bets
Copper prices on Thursday traded 0.06 per cent higher at ₹401.90 per kg in the futures market on the back of pick-up in spot demand.
On the Multi Commodity Exchange, copper contracts for delivery in May traded higher by 25 paise, or 0.06 per cent, at ₹401.90 per kg in a business turnover of 3,582 lots.
Analysts attributed the rise in copper prices to raising of bets by participants driven by pick-up in spot demand.
14 May 2020, 01:47:38 PM IST
Why the Godrej Consumer stock is up despite weak Q4 results
Shares of Godrej Consumer Products Ltd (GCPL) rose over 4% on Thursday, a day when the Nifty 50 index fell close to 2%. The company’s March quarter results, announced on Wednesday after market hours, were far from inspiring, with India business volume declining as much as 15%.
Novartis CEO says covid-19 vaccine may take until end of 2021
Novartis AG Chief Executive Officer Vas Narasimhan said a vaccine for covid-19 may only become available in the second half of next year, echoing the consensus view in much of the pharmaceutical industry.
“The ultimate way to deal with this pandemic is likely to be a vaccine against Covid-19," the CEO wrote in an opinion piece published in Switzerland’s Handelszeitung Thursday. “That will take more time -- my guess is about one and a half to two years."
While some vaccine developers have predicted limited availability of coronavirus vaccines this year, pharmaceutical executives have generally been more cautious. (Bloomberg report)
14 May 2020, 01:12:16 PM IST
Infosys, RIL, HDFC twins drag Sensex
14 May 2020, 01:04:17 PM IST
Global IT spend to shrink 8% in 2020, says Gartner
A boom in demand for specific digital services during the pandemic-induced lockdown notwithstanding, global IT spending is likely to shrink 8% in 2020 at an estimated $3.4 trillion, Gartner Inc has forecast. (Full report)
14 May 2020, 12:59:07 PM IST
CARE Ratings sees bleak demand outlook for steel industry
"We expect steel demand for FY21 to be significantly lower with June and September quarters to be badly impacted due to lower demand from the infrastructure and construction segments. India has been observing nationwide lockdown since 25th March 2020 and although steel was declared an essential industry and was allowed to operate through the lockdown period, steel production fell sharply as demand from user-industries took a significant hit," the ratings agency said in a note.
"Even after easing in lockdown, construction sector may not witness upsurge in activities during the rest of the year. A major challenge will be getting labour back on board and completing ongoing projects. Lower government spending on infrastructure will also impact demand for steel. The consumer sentiments for automobiles purchase are expected to be
unfavourable due to loss of business and income and demand is expected to remain muted during H1 FY21," it added.
14 May 2020, 12:50:21 PM IST
Bandhan Bank expects recovery to start from second quarter of FY21
Private lender Bandhan Bank said on Thursday that recovery of loans extended to micro-credit customers will happen from the second quarter of the 2020-21 fiscal.
The bank's MD and CEO Chandrashekhar Ghosh said customers in that sector are not facing problems in their businesses as they deal with basic goods and the local supply chain.
"Till the time the lockdown prevails, there will be some challenges. We spoke to the micro-credit customers and got the feedback that transactions will resume once the curbs are lifted. In the meantime, they are keeping cash in hand to meet any kind of exigencies," Ghosh added.
Once the lockdown is lifted, they will require four to six weeks time to repay the entire loan instalment, he said. (PTI report)
14 May 2020, 12:44:43 PM IST
Nifty Metal down nearly 2%
14 May 2020, 12:22:52 PM IST
Wholesale food inflation down to 3.6%
Wholesale food inflation declined to 3.6% in April from 5.49% a month ago. However, data released by National Statistical Office last week showed retail food inflation picked up quickening in April to 10.5% from 8.76% a month ago.
14 May 2020, 12:17:49 PM IST
Yes Securities puts 'reduce' on Havells India
The brokerage has maintained 'reduce' rating on Yes Securities with a target price of ₹469 and sees 8.2% downside.
"We cut our FY21/22 earnings estimate by 37.6%/22.9% due to the adverse impact of the lockdown on consumer offtake. We believe recovery in business would be slower compared to peers’ due to higher exposure to real estate/industrial products and higher share of premium products. Valuations appear rich at 39.2x FY22E P/E for earnings CAGR of 5.3% and are even at a premium to its peer set. We value Havells at 36x FY22 P/E and arrive at a revised target price of Rs469, while maintaining our Reduce rating on the stock," Yes Securities said in a note.
14 May 2020, 12:13:03 PM IST
Motilal Oswal 'neutral' on Kotak Mahindra Bank with a target price of ₹1,350
"KMB (Kotak Mahindra Bank) continues to report steady progress in building a strong liability franchise, with the CASA ratio scaling a new peak at ~56%. A strong CASA mix and healthy margins further aided healthy growth in operating earnings. However, loan growth remains muted as KMB remains cautious in a weak macro environment, further aggravated by the COVID-19 crisis. We estimate KMB to maintain a cautious stance on lending, although a reduction in SA/TD rates would aid margins. On the asset quality front, we expect NPL formation to increase due to rising stress in the CV and Unsecured segments; however, we estimate KMB to deliver controlled credit cost v/s peers, even as the moratorium book is quite the same. Maintain Neutral, with a target price of INR1,350 (3.0x FY22E ABV + INR451 for subs)," the brokerage said in a note.
14 May 2020, 12:04:41 PM IST
FMCG firms eye revival as sops put more cash in hands
Consumer product companies are hoping that steps announced on Wednesday by finance minister Nirmala Sitharaman will generate demand by putting more money in the hands of consumers through cuts in the tax deducted at source (TDS) and contribution towards Employees’ Provident Fund (EPF). (Full report)
14 May 2020, 11:48:47 AM IST
Nirmala Sitharaman to hold press conference at 4 pm
Finance Minister Smt.@nsitharaman to address a press conference today, 14th May, at 4PM in New Delhi.
— Ministry of Finance 🇮🇳 #StayHome #StaySafe (@FinMinIndia) May 14, 2020
14 May 2020, 11:47:53 AM IST
Lupin up 1.4%
Pharma major Lupin on Thursday said that its facility in Vizag, Andhra Pradesh, has received the inspection closure report from the US health regulator.
The inspection for the facility was conducted by the United States Food and Drug Administration (USFDA) during January 13-17, the company said.
14 May 2020, 11:45:42 AM IST
Bajaj Finance top Sensex gainer, up 2.5%
Finance minister on Wednesday announced further liquidity support to non-banking financial companies (NBFCs), housing finance companies (HFCs) and microfinance institutions (MFIs) by way of a ₹30,000 crore liquidity scheme and a partial credit guarantee scheme of ₹45,000 crore.
14 May 2020, 11:42:51 AM IST
Rupee falls 13 paise in early trade
The rupee depreciated 13 paise to 75.59 against the US dollar in opening trade on Thursday amid strengthening American currency overseas and negative opening of domestic equities.
The local unit opened at 75.57, then lost further ground and fell to 75.59 against the US dollar, down 13 paise over its previous close.
14 May 2020, 11:35:48 AM IST
Motilal Oswal on MSME, NBFC relief package
"With full collateral-free guarantee on loans worth INR3t (17% of outstanding loans), it would encourage lenders (especially banks with no liability challenge) to lend to the MSME segment, which plays a critical role in GDP contribution/employment," Motilal Oswal said in a note.
"This package would also help banks see some relief on their book under moratorium as MSME borrowers are more exposed to liquidity/cash flow issues and would have seen higher incidences of the moratorium being availed. Within NBFCs under our coverage, SCUF, CIFC and REPCO should emerge as the key beneficiaries. We maintain our preference toward large private banking franchises with robust liability mix and diversified asset base. Top ideas: ICICIBC, HDFCB, HDFC and SBIN," the brokerage added.
14 May 2020, 11:29:58 AM IST
Nifty Pharma up 1%
14 May 2020, 11:23:42 AM IST
Nifty IT Index slips nearly 3%
14 May 2020, 11:04:11 AM IST
Fixed charge uncertainty weighs on NTPC, Power Grid
Shares of NTPC Ltd and Power Grid Corp. of India Ltd fell about 3% each in early deals on Thursday. The decline was the result of the Centre on Wednesday announcing ₹90,000 crore worth of liquidity support to power distribution companies (discoms) through Power Finance Corp. (PFC) and Rural Electrification Corp. (REC). (Full report)
14 May 2020, 10:55:40 AM IST
Godrej Consumer Products up 4.4% despite weak Q4 results
FMCG major Godrej Consumer Products Ltd has reported over 75% drop in its consolidated net profit at ₹229.90 crore in the fourth quarter ended March 2020, hit by disruptions in sales amid the covid-19 outbreak. The company had posted a net profit of ₹935.24 crore in the January-March quarter a year ago.
14 May 2020, 10:52:55 AM IST
Nifty FMCG up 1%
Top gainers on Nifty FMCG Index
14 May 2020, 10:50:38 AM IST
CARE Ratings on liquidity booster for discoms
The timing of liquidity booster for discoms is apt considering the record demand decline, lower collections given the lockdown related restrictions which has led to significant cash flow issues for discoms, CARE Ratings said in a note.
“It will be however important to see as to what extent the discoms are able to avail the scheme given the ‘tied’ nature of this support and requirement of state government guarantee. In CARE Ratings’ opinion, with this measure essentially the power sector problem is being shifted to the state government, the achievement of reform intent will be a challenge as has been proven time and again," the ratings agency said.
14 May 2020, 10:44:27 AM IST
Yes Securities 'reduce' on Blue Star
Yes Securities has maintained 'reduce' rating on Blue Star with a target price of ₹443 and sees 6.6% downside.
"We trim our estimates by 52.9%/38% in FY21E/FY22E respectively, considering severe impact from COVID-19 and lower consumer discretionary spending in FY21. We believe RAC pricing would remain under pressure as competition continues to heat up with rising players. Margins would be under pressure from depreciating rupee. We believe current valuations of 24.8x FY22E P/E largely factor in a sharp bounce back in FY22 earnings. Maintain Reduce rating with a revised SOTP of ₹443," the brokerage said.
14 May 2020, 10:36:33 AM IST
Covid-19, lockdown hit ABB India's Q4
ABB India Ltd’s dismal March quarter (Q1CY20) results, which missed analysts’ forecasts by a wide margin, mirrors challenges across domestic industrial sectors. The stock, which already fell 33% since 1 January, traded 2% lower in Thursday’s morning deals.
The Indian arm of Swiss-Swedish capital goods maker recorded wafer-thin profit margins as it faced hurdles of the covid-19 pandemic and the consequent lockdown. (Full report)
14 May 2020, 10:25:26 AM IST
Yes Securities retains 'add' rating on Kotak Mahindra Bank
Yes Securities has retained 'add' rating on Kotak Bank with a target price of ₹1,350 and 13.7% upside. The given rating suggests a potential return of +5% to +15% over 12 months.
"We cut FY21/22 earnings by 34%/19% (revision from Q3 estimates) due to adverse adjustments in loan growth, NIM, fees and credit cost. Retain ADD rating with a 12m TP of Rs1,350. Have built-in announced capital raise (issuance of 65mn shares). Expect RoA/RoE to bounce back in FY22. Stand-alone bank trades at 2.6x/23x FY22 ABV/EPS," the brokerage said.
14 May 2020, 10:18:14 AM IST
India’s coronavirus tally likely to surpass China’s count by Friday
The number of reported coronavirus cases in India rose nearly 10% over the past two days to 78,003, data from the morning update of the ministry of health and family welfare (MoHFW) showed. This is lower than the rate of increase in the previous 48 hours, when the reported case count rose 12% to 70,756.
Mumbai Chennai, Ahmedabad, Thane and Pune, have accounted for half of all new cases in the country over the past two days. Mumbai’s tally has surpassed the 15,000 mark now.
14 May 2020, 10:11:21 AM IST
Finolex Industries up 2%
The company has partially resumed operations in a phased manner at its Ratnagiri (Maharashtra) and Masar (Gujarat) plants.
14 May 2020, 10:03:11 AM IST
Angle brooking puts 'buy' on Ipca Labs
Angle brooking has put 'buy' rating on Ipca Labs with a target price of ₹1,900 and 23.8% upside.
"54% of revenue comes from domestic generic and API business. Generics and API continues to provide revenue growth for Ipca. Expected to outperform the Indian Pharmaceutical market(IPM) by 8%-10% p.a in FY 22," the brokerage said in a note.
14 May 2020, 10:00:32 AM IST
ABB India falls 1.4%
Engineering services firm ABB India has reported about 26% decline in net profit to ₹66 crore in the January-March quarter of 2020 compared to that of ₹89 crore in the year-ago quarter. Total income of the company dropped to ₹1,568.02 crore in the March quarter from ₹1,869.37 crore in the same quarter of last year.
14 May 2020, 09:54:48 AM IST
Power generation companies gain on ₹90,000 lifeline
Shares of power companies surged in the early deals on Thursday after the government announced ₹90,000 crore liquidity lifeline.
Adani Power Ltd surged 10%, Tata Power Co Ltd was up 8%, Bharat Heavy Electricals Ltd advanced 8%, Torent Power climbed 4% and Adani Transmission gained 3%.
14 May 2020, 09:50:24 AM IST
Nifty Realty down over 1%
Offering some relief to real estate developers, finance minister Nirmala Sitharaman on Wednesday asked states and Union territories to extend the registration and completion date by six months of all projects registered under the Real Estate Regulatory Authority (RERA). This would apply to all real estate project registrations expiring on or after 25 March and individual applications are not needed.
14 May 2020, 09:45:11 AM IST
Siemens down 2.6%
Engineering and technology solutions provider Siemens Ltd on Wednesday reported a 38% drop in consolidated net profit at ₹175.7 crore for the March quarter due to lower revenues. The company's consolidated net profit stood at ₹284.2 crore in the quarter ended 31 March 2019.
14 May 2020, 09:42:28 AM IST
Dabur India up 2.2%
India’s largest ayurvedic consumer goods firm Dabur India has launched clinical trials to assess whether its flagship product Chyawanprash can boost immunity against the covid-19.
14 May 2020, 09:39:50 AM IST
BSE MidCap up 0.5%
14 May 2020, 09:36:06 AM IST
Most sectoral indices on NSE in the red
14 May 2020, 09:25:49 AM IST
Indian benchmark indices fell as much as 2% at open on Thursday as the as Union government's ₹20 trillion bailout package failed to cheer the investors.
Sensex opened 542 points lower at 31,466.33 while Nifty opened 170 points lower at 9,213.95.
Bajaj Finance, Nestle India and ITC were among the top gainers on the Sensex. Infosys, Tech Mahindra and HDFC Bank were top laggards on the 30-share barometer.
14 May 2020, 09:07:00 AM IST
Indian stocks were in the red in the pre-opening session on Thursday. At 9:04 am, Sensex tanked 640 points or 2% to 31,346, Nifty retreated 157 points or 1.7% to 9,226.
14 May 2020, 08:48:09 AM IST
Sitharaman’s liquidity measures a positive for market but worries remain
Finance minister Nirmala Sitharaman’s slew of measures to inject liquidity and improve credit flow is likely to cheer markets on Thursday but analysts feel that the real impact of the policies will depend on their implementation. Equity markets are expected to rise on the measures but uncertainties around mechanisms to fund the relief package stay which may keep investors on tenterhooks. (Full report)
14 May 2020, 08:46:10 AM IST
India Inc hails govt’s ₹9.5 trillion relief package
India Inc. on Wednesday heaved a sigh of relief as finance minister Nirmala Sitharaman announced 16 relief measures totalling ₹9.5 trillion.
The measures, which include relief for micro, small, and medium enterprises (MSMEs) and tax relief for individuals and corporates, will not just address the supply chain constraints but also boost demand, according to India Inc. (Full report)
14 May 2020, 08:42:03 AM IST
Markets at close on Wednesday
Indian shares soared on Wednesday, led by banking stocks, but failed to hold the opening gains as investors took government's ₹20 trillion stimulus package aimed at supporting the beleaguered economy with a pinch of salt.
Sensex dropped over 800 points from the day's high to close 2% higher at 32,008.61. Nifty advanced 187 points or 2% to end at 9,383.6.
14 May 2020, 08:36:53 AM IST
Asian stocks drop
Asian stocks retreated after Federal Reserve Chair Jerome Powell warned about economic risks and big-name investors fuelled doubts about valuations.
Japan’s Topix index declined 0.7%.
Hong Kong’s Hang Seng Index slid 1.3%.
The Shanghai Composite fell 0.5%.
South Korea’s Kospi index retreated 1.2%.
Australia’s S&P/ASX 200 Index lost 1.1%.
Singapore's SGX Nifty was down 1.5%, suggesting a weak start for Indian equities.
14 May 2020, 08:36:53 AM IST
US stocks fall
Wall Street's three major indexes closed lower for the second day in a row after Federal Reserve Chairman Jerome Powell warned on Wednesday of extended economic weakness due to the coronavirus pandemic and called for Congress to agree on additional fiscal support.
The Dow Jones Industrial Average fell 516.81 points, or 2.17%, to 23,247.97, the S&P 500 lost 50.12 points, or 1.75%, to 2,820 and the Nasdaq Composite dropped 139.38 points, or 1.55%, to 8,863.17.