KEY HIGHLIGHTS
Prime Minister To Address The Nation Tomorrow
Markets At Close
- Nifty ends 1.3 percent lower at 8,993
- Nifty Bank ends 2.1 percent lower at 19,488
- Sensex ends 1.5 percent lower at 30,690
- Nifty Midcap Index ends 1.4 percent lower
- Nifty Smallcap Index ends 0.5 percent lower
- India Volatility Index ends 3.3 percent higher at 51.41
- Nifty Pharma (Up 2.8 percent) and Nifty Metal (Up 2 percent) are the only sectoral gainers
- Nifty Realty falls 4.9 percent, ends as top sectoral laggard
- Larsen & Toubro ends as the top Nifty gainer; up 6.3 percent
- Bajaj Finance ends as the top Nifty laggard; down 10.3 percent
- 952 stocks ended the day with gains while 854 reported losses
Stocks That Led The Nifty Lower
Closing Bell: Volatile Session Ends On A Weak Note
Indian equity markets ended a volatile trading session with cuts of over 1 percent, led predominantly by Private Banks and Reliance Industries.
The S&P BSE Sensex ended 1.5 percent lower at 36,090 while the Nifty 50 index fell 1.3 percent to end at 8,993. Bajaj Finance was the top loser on the index, ending with losses of 10.3 percent.
Among sectoral indices, Nifty Pharma (Up 2.8 percent) and Nifty Metal (Up 2 percent) ended with gains. Nifty Realty remained the top sectoral loser, ending with losses of 4.9 percent.
952 stocks ended the day with gains while 854 wound up trade with losses to their name.
Indian equity markets will be shut tomorrow on account of a public holiday.
Stock Update: AIA Engineering
The company has informed the stock exchanges that it has resumed manufacturing operations at its plants in Ahmedabad and Trichy on a staggered basis after obtaining permission from local authorities.
The stock gained as much as 18.1 percent to Rs 1,489 and currently trades with gains of 12.4 percent. This is the biggest one-day gain for the stock since November 2006.
The stock is up for the third day in a row today.
F&O Snapshot: Active Options Contracts
- Nifty April futures add 4.55 percent in Open Interest and 4.6 lakh shares
- Nifty Bank April futures add 11 percent in Open Interest and 1.21 lakh shares
Nifty: April 16 Expiry
- 9,500 Call: Premium falls 53.7 percent to Rs 31.15. The contract has added 7.52 lakh shares in open interest.
- 8,500 Put: Premium falls 40 percent to Rs 41.8. The contract has added 3.3 lakh shares in open interest.
- 9,000 Call: Premium falls 33 percent to Rs 177.35. The contract has added 4.4 lakh shares in open interest.
Nifty Bank: April 16 Expiry
- 21,000 Call: Premium falls 57 percent to Rs 104. The contract has added 2.1 lakh shares in open interest.
- 20,500 Call: Premium falls 51 percent to Rs 185.4. The contract has added 1,84 lakh shares in open interest.
- 20,000 Call: Premium falls 44 percent to Rs 327. The contract has added 1.63 lakh shares in open interest.
Active Stock Futures
- Larsen & Toubro's 900 Call: Premium rises 86 percent to Rs 30. The contract has added 1.76 lakh shares in open interest.
- Reliance Industries' 1,300 Call: Premium falls 27 percent to Rs 26.25. The contract has added 76,500 shares in open interest.
- Sun Pharma's 500 Call: Premium rises 24 percent to Rs 21. The contract has added 3.51 lakh shares in open interest.
Trading Ideas From Hemen Kapadia Of KRChoksey
- Buy Bandhan Bank at Rs 187 for target of Rs 197 and stop loss of Rs 182
- Buy Ramco Cement at Rs 508 for target of Rs 520 and stop loss of Rs 502
SBI Cards Falls Most Since Listing
The lock-in period for SBI Cards and Payment Services Ltd. ended today. 36.7 million shares were allotted to 75 anchor investors at Rs 755 per share.
The stock currently trades at a 30 percent discount to its issue price. The volumes on the stock today are the second highest since listing.
The stock has fallen as much as 15 percent today, the most since listing.
Trading Ideas From Ajit Mishra Of Religare Broking
- Buy Hindustan Unilever for target of Rs 2,550 and stop loss of Rs 2,200
- Sell Tech Mahindra around Rs 535 for target of Rs 515 and stop loss of Rs 545
Markets At 2:15 P.M.
- Benchmark indices remain volatile
- Nifty down 1.8 percent at 8,952
- Nifty Bank down 2.8 percent at 19,354
- Sensex down 1.9 percent at 30,557
- Nifty Midcap Index down 1.7 percent
- Nifty Smallcap Index down 0.8 percent
- India Volatility Index up 4 percent to 51.7
- Barring Pharma and Metal index, all sectoral indices trade with losses
- Nifty Pharma off day's high; now up 2.8 percent
- Nifty Realty remains top sectoral loser, down 5.5 percent
- Bharti Airtel is the top Nifty gainer, up 5.1 percent
- Zee Entertainment remains top Nifty loser, down 10.4 percent
- 868 stocks are advancing while 901 are trading with losses
Money Market Update
The Indian currency ended flat after trading in a narrow band for most parts of the trading day.
The rupee ended at 76.28 as compared to Thursday's close of 76.27 against the U.S. Dollar.
Yield on the benchmark 10-year bond also ended flat at 6.49 compared to Thursday's close of 6.48.
Stock Update: Maruti Suzuki
India's largest carmaker is among the worst performers on the Nifty 50 index, falling as much as 6.1 percent to Rs 4,999.
Kotak Securities maintained its sell rating on the stock citing 'expensive valuations.' It has also cut its price target to Rs 4,900 from Rs 5,800.
The brokerage expects volume trajectory for the PV segment to remain weak for FY21 and as a result, it has cut its EPS estimates for FY21/22 by 11-15 percent.
The stock has snapped a three-day gaining streak, during which it gained over 25 percent.
Stock Update: Phoenix Mills
- Worst performer on the BSE 500 index
- Falls as much as 12.8 percent to Rs 483.30
- Biggest one-day fall in a month
- Trades at the lowest level since November 22, 2017
- Declines on high volumes
- Volumes are 2.1 times its 30-day average
- All 20 analysts tracking the stock have a buy recommendation
- Return potential of the stock as per Bloomberg consensus is 88.6 percent
- Down over 50 percent from 51-week high of Rs 979 on February 25, 2020
Stock Update: Biocon
- Gained as much as 6.5 percent to Rs 355.5
- Trades at a 52-week high
- Trades at the highest level since September 2018
- Up for the sixth straight session
- Longest winning streak since December 2017
- Up 28 percent in the last six sessions
- Best six-day returns since July 2017
- Today's volumes are 3 times higher than its 30-day average
- Up 68 percent from its 52-week low of Rs 211 in August 2019
- 16 out of the 24 analysts tracking the stock have a buy recommendation, 5 have a sell call
- The stock currently trades 9.4 percent higher than its 12-month Bloomberg consensus price target of Rs 314
Stock Update: Indoco Remedies
The company has informed the stock exchanges that the first shipment of 11.70 lakh Paracetamol tablets to the U.K. was airlifted from the Goa airport on April 12.
This is part of the government's effort to combat Covid-19. The permission granted by the government for total air shipment is 4.48 crore tablets, as per the exchange filing.
Shares are up 4.3 percent to Rs 260 after gaining as much as 14.4 percent.
Markets At Noon
- Benchmark indices off day's low
- Nifty down 0.6 percent at 9,056
- Sensex down 0.7 percent at 30,928
- Nifty Bank down 1.1 percent at 19,700
- Nifty Midcap index down 0.8 percent
- Nifty Smallcap index down 0.2 percent
- India Volatility Index up 3.75 percent to 51.61
- All sectoral indices barring Nifty Pharma (Up 4.1 percent) and Nifty Metal (Up 0.8 percent) trade with losses
- Nifty Auto index down 2 percent while Media and Realty index fall 4 percent
- Dr Reddy's remains the top Nifty gainer; up 5.7 percent
- Zee Entertainment remains the top Nifty laggard; down 11.5 percent
- 882 stocks are advancing while 851 trade with losses
Stock Reaction: ITI
The stock is locked in an upper circuit of 20 percent after it informed the exchanges that it will team up with the Defence Research and Development Organisation (DRDO) to manufacture portable ventilators to combat the Covid-19 outbreak.
ITI is well poised to fast-track the production amid the present Covid-19 situation, and have plans to undertake manufacturing in its Bengaluru facility.Rakesh Mohan Agarwal, Chairman, ITI
Shares are up for the fifth straight day today, rising close to 50 percent during this period.
Stock Reaction: Lupin
Shares are up for the fifth straight day today after the company's Nagpur unit received an Establishment Inspection Report (EIR) from the U.S. FDA.
We are very happy to have received the EIR for our Nagpur facility, our largest and most advanced oral solid dosage facility. We remain committed to enhancing compliance and quality standards across all our manufacturing sites.Nilesh Gupta, Managing Director, Lupin
Shares gained as much as 7.4 percent to Rs 848.80 on the National Stock Exchange but are off the day's high. The stock has gained for 7 out of the last 8 trading sessions.
Stock Reaction: Gulf Oil Lubricants
Shares of the company gained as much as 18 percent, the most on record to Rs 670, after the company on Thursday declared an interim dividend of Rs 7 on face of Rs 2 per share.
The company has set April 23 as the record date for the dividend payout.
Shares are up for the sixth day in a row, its longest streak since January 2020. The stock has surged close to 20 percent in the last six sessions.
Stock Reaction: Larsen & Toubro
The Water & Effluent Treatment business of the company has secured three EPC water management orders from the Karnataka Urban Infrastructure Development and Finance Corporation.
The contracts are to design, build, operate, maintain and transfer of water supply systems Hubbali, Dharwada, Kalaburagi and Belagavi for cost effective and sustainable up-scaling for 24X7 water supply, the company said in the press release. The projects are largely funded by the World Bank.
The contract falls in the ‘Large’ category. As per L&T, a contract between Rs 2,500 - Rs 5,000 crore falls under this segment.
Shares gained as much as 4.8 percent to Rs 851.70 and are the second best performer on the Nifty 50 index.
Stock Reaction: Bandhan Bank
The private sector lender shared its March quarter business update where it saw a 10 percent increase in advances on a sequential basis for the merged entity.
While total deposits grew 4 percent, retail deposits saw a growth of 7 percent compared to the previous quarter.
CASA ratio for the merged entity stood at 36.8 percent. Collection efficiency for the lender stood at 98.7 percent during the quarter.
The bank further stated that microbanking deposits remain strong and stable despite the lockdown in the country. Liquidity Coverage Ratio stood at 161 percent.
Shares currently trade 6.8 percent lower at Rs 179.15, after falling as much as 10 percent and are the worst performer on the Nifty Bank index.
Stock Reaction: Dr Reddy's Laboratories
The stock is the top gainer on the Nifty 50 index today after it informed the exchanges on Thursday evening that its API manufacturing unit in Telangana has received the Establishment Inspection Report (EIR) from the U.S. FDA with a VAI status.
The EIR indicates closure of the audit.
Shares gained as much as 6.5 percent to Rs 3,856 on the National Stock Exchange.
Sanctum Wealth's Ashish Chaturmohta had a buy recommendation on the stock this morning on BloombergQuint. He had a price target of Rs 3,900 with a stop loss of Rs 3,500.
Nifty Pharma: Only Sectoral Gainer
F&O Snapshot: Active Options Contracts
- Nifty April futures add 4.3 percent in open interest and 4.29 lakh shares
- Nifty Bank April futures add 9.2 percent in open interest and 1.03 lakh shares
Nifty: April 16 Expiry
- 9,500 Call: Premium falls 63.6 percent to Rs 24.50. The contract has added 6.63 lakh shares in open interest.
- 8,500 Put: Premium rises 7.4 percent to Rs 74.60. The contract has added 2.4 lakh shares in open interest.
- 9,200 Call: Premium falls 51.3 percent to Rs 80. The contract has added 5.8 lakh shares in open interest.
Nifty Bank: April 16 Expiry
- 18,000 Put: Premium falls 20.2 percent to Rs 175.65. The contract has added 1.37 lakh shares in open interest.
- 20,000 Call: Premium falls 50.4 percent to Rs 293.85. The contract has added 1.77 lakh shares in open interest.
- 21,000 Call: Premium falls 63.5 percent to Rs 88.05. The contract has added 1.47 lakh shares in open interest.
How Are The Sectoral Indices Faring
Markets At 10:10 A.M.
- Benchmark indices extend losses from opening levels
- Nifty down 1.6 percent at 8,963
- Nifty futures trade at a discount of 9 points
- Sensex down 1.6 percent to 30,649
- Nifty Bank down 2.3 percent to 19,452
- Nifty Midcap Index down 2 percent
- Nifty Smallcap Index down 2.3 percent
- India Volatility Index up 4.2 percent to 51.85
- Barring Nifty Pharma, all sectoral indices trade with losses
- Nifty Pharma trades with gains of 3 percent
- Nifty Realty Index down 6 percent while Media and Auto index down 4 percent each
- Dr Reddy's is the top gainer on the Nifty 50 index; up 4 percent
- Zee Entertainment remains the top loser on the Nifty 50 index, down 13 percent
- 626 stocks are advancing while 1,035 trade with losses.
Money Market Update
The Indian currency has opened weaker at 76.30 against the U.S. dollar as compared to Thursday's close of 76.27. It then touched the day’s low of 76.32
The rupee had recovered from a record low of 76.54 on Thursday to end marginally stronger.
Rupee traders will keep an eye on the Retail Inflation numbers for the month of March which are expected today. A Bloomberg survey pegs March CPI to be at 5.9 percent.
Yields on the 10-year bond opened at 6.485 as compared to Thursday's close of 6.49. Yields had surged last week by the most since December as the supply of debt had risen.
Stock Reaction: Kotak Mahindra Bank
Shares of the Mumbai-based private lender fell as much as 3.6 percent to Rs 1,226 after brokerage firm UBS downgraded the stock to sell from neutral. UBS has also cut its price target to Rs 1,050 from the earlier 1,500.
UBS in its note states that the risk-reward for the stock is currently negative post its recent performance. It has added that the bank's asset quality will not be immune to a broad slowdown.
UBS has also cut Kotak Mahindra Bank's loan growth and raised its credit cost estimates for FY21 and FY22.
The stock is among the worst performers on the Nifty 50 index, contributing 14 points to its downside.
Stock Reaction: Godrej Consumer Products
Shares of the company fell as much as 8.75 percent to Rs 543.05 in the early minutes of trade. It is also the top loser on the Nifty FMCG index.
The FMCG player in its March quarter update has said that it expects its topline to contract in high-teens during the fourth quarter of FY20. The press release also stated that there were significant issues with manufacturing, distribution and transportation of essential items towards the later part of March.
The company also expects a single-digit decline in rupee terms for its international business.
Stock Reaction: HDFC
The stock had opened with gains of as much as 3.56 percent to Rs 1,763. Shares then pared gains to trade with losses.
The company in its March quarter shareholding pattern had declared that the People's Bank of China (PBoC) had hiked its stake to more than one percent.
The stock fell as much as 3.2 percent to Rs 1,647.7 and has snapped a three-day gaining streak.
Stock Reaction: Zee Entertainment
The stock is the top loser on the Nifty 50 index, falling as much as 10 percent to Rs 134.90.
The board of the company had approved an investment of Rs 522 crore in SugarBox, over a period of time. The company had acquired 80 percent stake in SugarBox in 2017.
It has also authorised SugarBox to finalise the terms of a 10-year contract with RailTel Corporation of India.
Shares have snapped a four-day gaining streak in today's session.
Stocks Dragging The Nifty Lower
Opening Bell: Choppy Start To Truncated Week
Indian equity markets opened on a volatile note with focus being on stock specific activity at the start of another truncated week.
The S&P BSE Sensex opened 0.1 percent higher at 31,195 after which it fell as much as 0.8 percent to 30,914.
The NSE Nifty 50 index fell 0.1 percent on open to 9,103, post which it fell 0.7 percent to 9,049. The India Volatility Index has climbed back above the mark of 50, rising 4.5 percent in early trade.
Both benchmark indices snapped a seven-week losing streak during the previous trading week, posting gains of close to 13 percent each although the week gone by had only 3 trading sessions.
All sectoral indices barring the Pharma index (Up 1.5 percent) and metal index (Up 0.6 percent) opened with losses.
Market breadth remains in favour of gainers. 991 stocks have opened with gains while 502 stocks are declining.
Latest Update On The Coronavirus
- Global cases cross 1.84 million; death toll above 1.13 lakh
- Deaths in New York exceeded 700 for the sixth day in a row, taking the total past 9,000
- U.K. became the fifth nation to record over 10,000 deaths
- France sees lowest new cases in a week while death toll in Turkey rises to 1,198
- Total cases in India cross the 9,000 mark with 7,987 active cases and 308 deaths.
- India reported 796 new cases and 35 deaths in the last 24 hours.
Trading Ideas From Ruchit Jain Of Angel Broking
- Buy HPCL for target of Rs 224 and stop loss of Rs 195
- Buy Petronet LNG for target of Rs 240 and stop loss of Rs 215
Trading Ideas From Ashish Chaturmohta Of Sanctum Wealth
- Buy Dr Reddy's for target of Rs 3,900 and stop loss of Rs 3,500
- Buy ICICI Bank for target of Rs 368 and stop loss of Rs 330
- Buy Alembic for target of Rs 730 and stop loss of Rs 620
Companies With Plants Reopening
- GSFC: Various plants are expected to resume production between April 13-30.
- SRF: Few plants belonging to the essential goods chain in Dahej have resumed operations.
- Gujarat Fluorochemicals: Plants at Ranjitnagar and Dahej resumed operations on April 8.
- Camlin Fine Sciences: Resumed trial production at its manufacturing unit in Dahej.
Key Stocks In Focus
- Dr Reddy's: Gets EIR for API manufacturing unit in Telangana from the U.S. FDA with VAI status.
- HDFC: People's Bank of China raises stake in the company to more than 1 percent.
- Godrej Consumer: Will report a revenue decline in high teens during the quarter as per its March quarter update.
- I.T. Stocks: Cognizant expects Q1 revenues growth of 3.4-3.6 percent in constant currency terms (YoY) as against earlier guidance of 2.8-3.8 percent.
- Avenue Supermarts: Almost half the stores remain shut. Selling only FMCG and staple products as per its quarterly update
- Kotak Mahindra Bank: Top leadership to take 15 percent salary cut for FY21. Uday Kotak to forgo his salary. UBS has downgraded the stock to sell from neutral, cutting its price target to Rs 1,050 from Rs 1,500
- ITI: Likely To ink deal shortly with Defence Research and Development Organisation (DRDO) to product portable ventilators.
Find out all that you need to know going into today’s trading session here.
Your Trade Setup For The Day
How Were Fund Flows In Thursday's Trading Session
A Check On Indian ADRs
U.S. Markets On Thursday
- Benchmarks end truncated trading week on a high as investors look past high jobless numbers
- S&P 500 gained for the third time in four sessions, posting a weekly rise of 12 percent, the best since 1974.
- The U.S. Federal Reserve announced another $2.3 trillion in additional aid, reiterating that it was committed to using all its powers to help the economy recover.
- The Dow Jones ended 1.2 percent higher on Thursday at its highest in nearly a month
- The Bloomberg Dollar spot index fell 0.8 percent while yield on the 10-year treasury fell five basis points to 0.72 percent.
Truncated Week May Begin On A Weak Note
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 1.4 percent to 9,033 as of 7:10 a.m.
Asian markets are witnessing losses at the start of trade on Monday with underperformance in Japan, South Korea and China. Hong Kong markets are shut due to the Easter holiday.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
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