KEY HIGHLIGHTS
Closing Bell: Some Recovery Before Close
Indian equity markets ended the session with losses but off the day's low, led by a recovery in banking and FMCG heavyweights.
The S&P BSE Sensex ended 0.6% lower at 34,961 - 300 points off the day's low of 34,662. The NSE Nifty 50 index ended 0.68% lower at 10,312 - nearly 100 points of the day's low of 10,223.
The recovery in the benchmarks was led by heavyweights like HDFC Bank, Kotak Mahindra Bank, Hindustan Unilever and ITC.
Britannia ended as the top gainer on the Nifty, ending 2.1% higher. 38 out of the 50 Nifty constituents ended with losses. Coal India was the top Nifty laggard, ending with losses of 5% post its fourth quarter earnings.
Among sectoral indices, the Nifty Bank index ended 1.1% lower at 21,359, staging a recovery of over 350 points from the day's low of 21,026.
The Nifty FMCG Index outperformed in today's session, ending with gains of 0.8% and was the only sectoral gainer.
The Nifty Realty index ended lower for the fourth straight day and was the top sectoral laggard, down 3.55%. The PSU Bank index was the other sector ending with losses of over 3%.
The Nifty Media and Metal indices fell over 2.5% each while Nifty I.T. and Nifty Auto fell between 1.3-1.5%.
Broader markets underperformed in today's session. The Midcap and Smallcap index ended with losses of 1.6% and 1.4% respectively.
India Volatility Index cooled off from the day's high, ending little changed at 28.82.
Market breadth ended in favour of the declines. 1,156 stocks on the NSE ended with losses while 695 ended with gains.
Heavyweights Aid The Nifty Recovery
Buzzing Stock: EID Parry
- Trading at the highest level since March 2018
- Gains as much as 8.6% to Rs 295.8
- Up for the third straight day
- Has gained in seven out of the last 10 trading sessions
- Up 29% in the last 10 trading sessions
- Today's volumes are 1.9 times higher than its 30-day average
- Stock in overbought territory with Relative Strength Index (RSI) at 82
- Has nearly tripled from its 52-week low of Rs 100 on March 24, 2020
- The stock trades 2.4% above its 12-month consensus price target of Rs 280, implying a negative return potential
RBI Announces Special OMO
The Reserve Bank of India announced special Open Market Operations (OMO) including buying and selling of bonds worth Rs 10,000 crore on July 2, the central bank said in a statement.
The RBI intends to buy bonds maturing in 2027, 2029, 2031 and 2033 while selling a similar amount of 182 and 364-day treasury bills.
Yields on the new 10-year bond have risen 12 basis points so far this month to 5.90%.
Earnings Reaction: Welspun India
- Revenue up 4% to Rs 1,617.3 crore
- Net profit of Rs 85.1 crore from net loss of Rs 79.2 crore
- Ebitda up 19% to Rs 249.1 crore
- Ebitda margin at 15.4% from 13.4%
- Home Textiles segment revenue up 2% to Rs 1,584.5 crore
- Flooring segment revenue up nearly five times to Rs 42 crore
- All numbers are consolidated and compared on a year-on-year basis
Shares are locked in an upper circuit of 5% at Rs 37.85 and are up for the second straight day.
Active Stock Options
- Hindustan Unilever's 2,200 Call: Premium up 28.6% to Rs 71.6. The contract has added 77,700 shares in Open Interest.
- ITC's 200 Call: Premium up 16.5% to Rs 9.85. The contract has added 3.4 lakh shares in Open Interest.
- HDFC Bank's 1,100 Call: Premium up 23.24% to Rs 35.8. The contract has added 1.85 lakh shares in Open Interest.
Buzzing Stock: Tata Communications
- Trades at the highest level since February 2000
- Locked in an upper circuit of 5% at Rs 619
- Has alternated between gains and losses for the last eight trading sessions
- Added Rs 839 crore to its market capitalisation in today's session so far
- Today's volumes are 1.2 times higher than its 30-day average
- Trades in overbought territory with Relative Strength Index (RSI) at 73
- Has more than tripled from its 52-week low of Rs 200 on March 19, 2020
- Two out of the six analysts tracking the stock have a buy recommendation; 0 sell calls
- Return potential for the stock as per Bloomberg data is 0.5%
Earnings Expectations: Tata Steel Q4FY20
- Revenue seen 20.4% lower at Rs 33,774 crore
- Ebitda seen 42.5% lower at Rs 4,321 crore
- Ebitda margin may narrow to 12.8% from 17.7%
- Net loss may widen to Rs 90.8 crore from Rs 48.3 crore
- Overseas subsidiaries, lower realisations may weigh on profit
- Domestic HRC prices fell 8% compared to the previous year.
- All estimates are consolidated and compared on a year-on-year basis
Shares trade 1.8% lower at Rs 318, ahead of its earnings.
Earnings Reaction: Ruchira Papers Q4FY20
- Sales down 16% to Rs 107.45
- Net profit down 94% to Rs 0.6 crore
- Ebitda down 74% to Rs 5.36 crore
- Ebitda margin down to 5% from 16%
- Deferred tax outgo of Rs 0.57 crore this quarter
- All numbers are compared on a year-on-year basis
Shares are locked in a 5% lower circuit at Rs 63, snapping a five-day gaining streak.
Markets At 2:10 P.M.
- Benchmark indices off day's low but trade with losses
- Nifty down 0.9% at 10,290
- Sensex down 0.8% at 34,894
- Nifty Bank down 1.8% at 21,209
- Nifty Midcap Index down 1.7%
- Nifty Smallcap Index down 1.6%
- India Volatility Index up 3% to 29.61
- Nifty FMCG remains the top sectoral gainer; up 1%
- Nifty Metal, Nifty PSU Bank and Nifty Realty down over 3% each
- Nifty Media index down 2.8%
- Nifty Auto and Nifty I.T. decline 1.4%
- ITC is the top Nifty gainer; up 2.1%
- Coal India is the top Nifty laggard; down 5.1%
- 627 stocks on the NSE trade with gains while 1,182 decline
Money Market Update
The rupee ended with gains in today's session, despite weakness in the equity markets and strength in the U.S. Dollar.
The currency ended at 75.58 against the greenback as compared to Friday's close of 75.64.
Six other currencies managed to outperform the rupee in today's session while it outperformed five of its peers.
Yield on the 10-year government bond ended at 5.904% as compared to the opening level of 5.905%.
All Stocks Of The Metal Index Decline
Earnings Reaction: Bharat Forge Q4FY20
- Revenue down 47% to Rs 881.8 crore
- Net loss of Rs 73.3 crore from net profit of Rs 299.5 crore
- Ebitda down 79% to Rs 110.2 crore
- Ebitda margin at 12.5% from 31%
- Exceptional loss of Rs 73.3 crore this quarter
- All numbers are standalone and compared on a year-on-year basis
Management Commentary: Bharat Forge
- FY21 has started on a difficult note with lockdown impacting demand.
- Expect PV business to outperform underlying markets.
- See good demand traction in several industrial segments barring oil & gas.
- Hopeful of things improving sequentially in H2FY21.
- Free cash flow will be utilised to bring down gross debt levels over the next 3-5 years.
- Overseas operations are likely to post a loss of 5 million Euros until June 2020.
- Re-evaluating demand from customers for the Aluminium forging business in North America.
Shares ended 10% lower at Rs 317.3, post the announcement.
Earnings Reaction: MRF Q4FY20
- Revenue down 11% to Rs 3,685.2 crore
- Net profit more than doubles to Rs 679 crore
- Ebitda flat at Rs 583.3 crore
- Ebitda margin at 15.8% from 14.1%
- Deferred tax gain of Rs 451.4 crore this quarter
- Revenue drop of Rs 504.25 crore year-on-year this quarter due to the Covid-19 lockdown
- Revenue drop of Rs 404.55 crore sequentially due to the lockdown
- Approves final dividend of Rs 94 per share
- All numbers are consolidated and compared on a year-on-year basis
Shares ended 2% lower at Rs 65,156, post the announcement.
Earnings Reaction: CESC
- Revenue up 5% to Rs 2,433 crore
- Net profit up 7% to Rs 439 crore
- Ebitda up 18% to Rs 625 crore
- Ebitda margin at 25.7% from 23%
- Regulatory income of Rs 312 crore from Rs 399 crore
- Deferred tax gain of Rs 60 crore this quarter
- Current tax expense down to Rs 96 crore from Rs 105 crore
- All numbers are consolidated and compared on a year-on-year basis
Shares ended 0.56% higher at Rs 610.5, post the announcement.
Stock Reaction: Cipla
The drugmaker along with Boehringer Ingelheim have joined hands to co-market three oral anti-diabetic drugs.
The partnership will co-market drugs like Oboravo, Oboravo Met and Tiptengio.
The Indian diabetes market is d at Rs 14,545 crore and is growing at 10.35%, according to the IMS MAT in May 2020.
Diabetes continues to be a focus area for Cipla and with a strategic partnership with Boehringer Ingelheim, we will be at the forefront of providing holistic diabetes care.Nikhil Chopra, EVP & CEO - India Business, Cipla
Shares gained as much as 2.1% to Rs 648 and is the third best performer on the Nifty 50 index.
Muted Start To European Markets
Markets across Europe have opened mixed at the start of trade amidst rising cases of Covid-19 and a looming threat of deflation.
The Stoxx 600 opened 0.3% lower with the declines led by oil and F&B sectors. Construction and technology stocks are outperforming.
Most Asian markets have ended lower while futures on the Dow Jones have pared gains to trade little changed.
Brent Crude trades 1.4% lower at $40.51 per barrel while Gold is little changed at $1,769.5/Oz.
Let's take a look at how benchmarks across Europe have opened:
- Euro Stoxx 50 down 0.2% at 3,198
- DAX unchanged at 12,082
- CAC down 0.4% at 4,890
- FTSE 100 down 0.33% at 6,138
- IBEX 35 down 0.3% at 7,153
RBI Seeks Extension Of MPC Members
The Reserve Bank of India has written a letter to the Finance Ministry, seeking an extension of the external members of the Monetary Policy Committee, Bloomberg News reports citing government officials with knowledge of the matter.
The RBI seeks extension of Chetan Ghate, Pami Dua and Ravindra Dholakia until March 2021, due to the Covid-19 pandemic, according to the source.
Under the current rules, external members of the MPC cannot be re-appointed once their four-year term ends.
The Reserve Bank of India and the Finance Ministry did not respond to Bloomberg News' request for a comment.
Earnings Reaction: Sun TV
On a consolidated basis, the broadcaster reported a 11.7% decline in its net profit to Rs 250 crore while revenue fell 17.3% compared to the previous year.
Ebitda fell 17.2% while margins remained flat at 68.5%.
Subscription revenue saw a rise of 25% during the quarter. While the company did not declare advertising revenues for the quarter, for FY20, advertising revenue declined to Rs 1,336.9 crore, down 6% compared to last year.
Shares fell as much as 5.4% to Rs 398.25 and are among the worst performers on the Nifty Media index.
Stock Reaction: Sun Pharma
The drugmaker's wholly-owned subsidiary got an approval from the Ministry of Health, Labour and Welfare of Japan for Ilumya.
The said drug is used in the treatment of plaque psoriasis in adult patients. According to the company, around 4.3 lakh people in Japan suffer from psoriasis.
This approval adds a biologic product to our existing strong dermatology portfolio in Japan. We will leverage Sun Pharma Japan’s robust marketing network to make Ilumya, a safe and efficacious product.Junichi Nakamichi, Country Head, Sun Pharma Japan
Shares are off the day's high and trade little changed at Rs 481.15 per share.
Stock Reaction: BHEL
CARE Ratings has downgraded the ratings on the company's long-term bank facilities to CARE AA from CARE AA+.
Decline in execution of orders, aggravated by Covid-19 is one of the key reasons listed for the downgrade. The agency expects execution to decline further on account of labour migration and logistics issues.
The deteriorating operating margins and elongated working capital cycle, high concentration of orders in the thermal power segment, declining competitiveness and a weak financial profile are some of the other reasons attributed to the downgrade in ratings.
Shares fell as much as 4.2% to Rs 35.35 and are down for the second straight day.
Markets At Noon
- Benchmark indices continue to trade with losses
- Nifty down 1.3% at 10,250
- Sensex down 1.2% at 34,750
- Nifty Bank down 2% at 21,149
- Nifty Midcap Index down 1.8%
- Nifty Smallcap Index down 1.9%
- India Volatility Index up 4.66% to 30.1
- Nifty FMCG (up 1%) and Nifty Pharma (up 0.2%) are the only sectoral gainers
- Nifty Media is the top sectoral laggard; down 4.1%
- Nifty Metal, Nifty PSU bank and Nifty Realty fall over 3.3% each
- Nifty Auto and Nifty I.T. fall over 1.5-2%
- Britannia is the top Nifty gainer; up 2.1%
- Zee Entertainment is the top Nifty laggard; down 4.4%
- 44 out of the 50 Nifty constituents trade with losses
- 1,213 stocks on the NSE trade with losses while 551 gain
Earnings Reaction: NALCO
National Aluminium Company Ltd. reported a 30% decline in its revenue for the quarter ending March.
The company's ebitda fell 60% while net profit fell 56% to Rs 102.7 crore. Margins too saw a contraction to 10.8% from 18.7% during the same period last year.
Chemicals segment of the company saw its revenue declining 15% from the previous year while the Aluminium segment saw its revenue contracting 32% year-on-year.
Shares fell as much as 6% to Rs 31.5 and are down for the second straight day.
Buzzing Stock: AstraZeneca Pharma
- Trades at an all-time high
- Gains as much as 6.94% to Rs 3,579
- Biggest single-day gain in over a month
- Has gained in four out of the last 10 trading sessions
- Today's volumes are 3.3 times higher than its 30-day average
- Has more than doubled from its 52-week low of Rs 1,632 on August 23, 2019
- Has gained 35% this year as compared to a 15% decline for the S&P BSE Sensex index
Earnings Reaction: Rupa & Company
The manufacturer of apparel products reported a net loss of Rs 4.3 crore in the March quarter as compared to a net profit of Rs 27.4 crore during the same period last year.
Ebitda fell 85.7% while margins saw a sharp contraction to 4.1% from 12.9% last year.
The company has also declared a dividend of Rs 3 per share.
Shares are off the day's low, after falling as much as 17.2% - its biggest single-day drop on record.
The stock now trades 6.5% lower at Rs 175.35, at the lowest level in a month.
Large Trades In The Last Hour
- NTPC: 27.84 lakh shares exchanged hands in a single large deal.
- Zee Entertainment: 26.36 lakh shares exchanged hands in a single large deal.
- HDFC Bank: 10.75 lakh shares exchanged hands in a single large deal.
Buyers and sellers in these trades were unknown.
- Shares of NTPC trade near the day's low, down 1.1% at Rs 95.95.
- Shares of HDFC Bank are off the day's low, down 0.5% at Rs 1,051.
- Shares of Zee Entertainment are also near the day's low, down 3.35% at Rs 170.35.
Earnings Reaction: Coal India
The mining major reported a 23% drop in its net profit for the quarter ending March, mainly due to a 23% decline in its e-auction realisations.
E-auction realisations for the company fell 23.6% to Rs 2,105.7.
Operational performance was subdued with Ebitda declining 18.3% while margins falling to 24.4% from 28.8% during the same period last year.
Total volumes for the company remained flat, due to lower demand from the power sector. E-auction volumes however, saw a rise of 25.8% in the fourth quarter.
Shares fell as much as 4.6% to Rs 135.6 per share.
Fourth Day Of Losses For The Realty Index
Stock Reaction: IDBI Bank
The company's board of directors have approved selling the bank's stake in IDBI Federal Life Insurance Company on Friday.
The lender will sell stake to the extent of 23% to Ageas while it will sell another 4% stake to Federal Bank.
The combined of both the stake sales will be Rs 595 crore.
Both the stake sales are subject to regulatory approvals taken by all related parties.
Shares were locked in an upper circuit of 5% in early trade at Rs 42. The stock now trades 3% higher at Rs 41.1 and is up for the sixth straight day.
Earnings Reaction: Avanti Feeds
The manufacturer and distributor of shrimp feed reported a 21% rise in its revenue for the fourth quarter, compared to the previous year.
Net profit rose 28% while ebitda margins expanded to 12% from 10.9%
The company's Shrimp Feed business revenue rose 14.7% from the previous year, while the processed Shrimp business revenue grew 38% from the previous year to Rs 270.64 crore.
It has also declared a final dividend of Rs 0.10 per share.
The stock gained as much as 10.2% - the most in over two months to Rs 520. The stock trades at a four-month high and is now the top gainer on the Nifty Smallcap Index.
F&O Snapshot: Active Options Contracts
- Nifty July futures add 8% and 9.32 lakh shares in Open Interest.
- Nifty Bank July futures add 27% and 3.2 lakh shares in Open Interest.
Nifty: July 2 Expiry
- 10,200 Put: Premium up 51.3% to Rs 123.8. The contract has added 2.9 lakh shares in Open Interest.
- 10,500 Call: Premium down 43.4% to Rs 35.1. The contract has added 4.6 lakh shares in Open Interest.
- 10,300 Call: Premium down 35.8% to Rs 97.1. The contract has added 11.6 lakh shares in Open Interest.
Nifty Bank: July 2 Expiry
- 22,000 Call: Premium down 53.1% to Rs 145.8. The contract has added 2.95 lakh shares in Open Interest.
- 20,500 Put: Premium up 51.2% to Rs 275.3. The contract has added 1.7 lakh shares in Open Interest.
- 20,000 Put: Premium up 42% to Rs 140.7. The contract has added 2.05 lakh shares in Open Interest.
Earnings Reaction: West Coast Paper
The paper company's net profit more than doubled to Rs 119.9 crore for the quarter ended March. The rise in profit was due to the tripling of the company's other income to Rs 10.91 crore and a tax credit of Rs 47.8 crore.
Revenue rose 28% from the previous year while Ebitda increased 18%.
Ebitda margins however, declined to 23.6% from 25.7% due to higher finance costs.
The company's paper and paper board business saw a rise of 38% in its revenue compared to the previous year.
Shares gained as much as 10.75% - the biggest single-day jump since March 2019 to Rs 198.9 - its highest level in nearly four months.
Markets At 10:10 A.M.
- Benchmark indices extend losses; trade at the day's low
- Nifty down 1.2% at 10,253
- Sensex down 1.2% at 34,741
- Nifty Bank down 2.5% at 21,085
- Nifty Midcap Index down 1.6%
- Nifty Smallcap Index down 1.8%
- India Volatility Index up 4.6% at 30.1
- Nifty FMCG (up 0.5%) and Nifty Pharma (up 0.1%) are the only sectoral gainers
- Nifty Media, Nifty Metal and Nifty PSU Bank down 3% each
- Nifty Auto, Nifty I.T. index down over 1.2% each
- ITC is the top Nifty gainer; up 1.5%
- Axis Bank is the top Nifty laggard; down 4.5%
- 43 out of the 50 Nifty constituents trade with losses
- 1,163 stocks on the NSE trade with gains while 540 decline
Money Market Update
The rupee opened little changed, despite weakness in the equity markets and strength seen in the U.S. Dollar
The currency opened at 75.61 against the greenback, as compared to Friday's close of 75.64. It was the second best performing currency in Asia last week.
Prospects of a rare current-account surplus, following robust foreign inflows and a collapse in global oil prices will aid the currency, according to Barclays and Scotiabank.
Sajal Gupta of Edelweiss expects the rupee to climb to as high as 72 against the U.S. Dollar by the end of the year.
Earnings Reaction: HUDCO
The housing and urban housing project financier reported a 28% increase in its revenue for the quarter ended March.
Net profit rose 87% to Rs 440.9 crore while Ebitda rose 31% to Rs 1,724.9 crore.
Ebitda margins rose to 91.3% from 89.1% during the same period last year.
The company has also declared a dividend of Rs 2.35 per share.
Shares are locked in an upper circuit of 20% - the biggest single-day gain since May 2017 to Rs 33.45.
The stock trades at the highest level in four months has nearly doubled from its 52-week low of Rs 18 on March 24, 2020.
Large Trade Alert: Laurus Labs
1.23 crore shares of the pharma company exchanged hands in a single large trade on the Bombay Stock Exchange.
The total number of shares exchanged amount to 11.5% of the company's total equity, according to data compiled by Bloomberg.
The large trade has resulted in the stock becoming the most traded Indian stock by and the second most by volume, Bloomberg reports.
Buyers and sellers of the trade were not immediately known.
Shares snapped a two-day losing streak, falling as much as 7% to Rs 504.
Stock Reaction: Axis Bank
Shares of the private lender fell after S&P Global Ratings lowered its credit rating to below investment grade, citing a looming recession in India.
S&P Global Ratings lowered the bank's rating to BB+ from BBB- while the outlook was retained as stable.
In a note released on Friday, S&P Global Ratings anticipates a deterioration in asset quality, rise in credit costs and decline in profitability of Indian banks over the next 12 months.
The Bank had reported a quarterly loss for the quarter ended March, post which, CEO Amitabh Chaudhry stated that FY21 will be a challenging year, courtesy Covid-19.
The stock fell as much as 4% to Rs 408 and is the top laggard on the Nifty 50 index.
Covid-19 India Updates
- India reports 19,459 cases in the last 24 hours
- Total number of cases rise to 5,48,318
- Active cases at 2,10,120
- Total number of patients cured / discharged / migrated at 3,21,723
- 12,010 patients recovered in the last 24 hours
- Death toll rises to 16,475
- 380 deaths reported in the last 24 hours
Earnings Reaction: ITC
The FMCG major's net profit rose 9.1% compared to the previous year,aided by low corporate taxes.
Operating margins remained flat due to higher excise while gross margins received a boost due to inventory gains. Gross margins rose 220 basis points to 64.4%.
Cigarette business revenue fell 6.5% while that of the agri business declined 10.2%.
The company has also declared a dividend of Rs 10.5 per share.
Brokerage firm Jefferies has maintained its buy rating on the stock with a price target of Rs 240, stating that while the Cigarette business is on course to hit pre-Covid-19 levels, Q1FY21 may be a washout.
Shares are trading 1.6% higher at Rs 198.3, after gaining as much as 4% in early trade.
Contributing To Nifty's Losses
Opening Bell: A Weak Beginning
Indian equity markets opened lower, tracking mixed cues from the Asia Pacific and a weak session on Friday in the U.S.
The S&P BSE Sensex and the NSE Nifty 50 index opened 0.7% lower at 34,926 and 10,311 respectively. Both benchmarks posted their fourth weekly gain in five on Friday.
Among the sectoral indices, the Nifty Bank opened 300 points or 1.4% lower at 21,291.
The FMCG index was the only sectoral gainer, opening 1% higher, led by gains in ITC.
The Nifty Media index opened 1.6% lower while other indices were flat or opened with a negative bias.
Market breadth was even at the start of trade. 753 stocks on the National Stock Exchange opened with losses while 702 advanced.
Latest On The Coronavirus
- Total cases across the globe cross the 10 million mark
- Death toll crosses 5 lakh
- WHO reported the most infections for a single day
- Texas emerging as the new center of the pandemic
- 75 new infections reported in the Australian state of Victoria
- 60 new cases reported in Tokyo, NHK says
- Seven new cases reported in Beijing
- South Korea rules out further extra budgets
- Most Americans in a poll say the Trump administration is not prepared to deal with the pandemic
- 30,476 cases reported in Brazil over the last 24 hours
Top Reads On BloombergQuint.com
Also Read: The U.S.-China Feud Gets Nasty
How Did The Fund Flows Fare On Friday
Key Stocks In Focus
- ITC: Net profit up 9.1% while sales fell 6.4% compared to last year. Higher excise weighs on operating margins while gross margins are boosted due to inventory gains. The company has declared a dividend of Rs 10.5 per share.
- Coal India: Net profit down 23% due to a decline in e-auction realisations. E-auction realisations fell 23.6% compared to the previous year. Volumes remained flat due to lower demand from the power sector.
- NTPC: Net profit down 71.2% due to settlement of income tax disputes under the Vivad se Vishwas scheme, resulting in additional provisions worth Rs 2,660 crore. Core generation revenue grew 26% compared to the previous year to Rs 27,079 crore.
- Piramal Enterprises: Approves divesting 20% stake in Piramal Pharma to the Carlyle Group for an equity investment of $490 million. The proposed transaction s the pharma business at an Enterprise Value of $2,775 million. The Enterprise Value will have an upside component of $360 million based on its FY21 performance. The final amount of the equity investment will depend upon net debt, exchange rate and performance. Separately, one of the company's affiliates has acquired 100% stake in G&W PA lab for a consideration of $17.5 million, in an all cash deal.
- IDBI Bank: Board approves selling stake in IDBI Federal Life Insurance. Bank to sell 23% stake to Ageas and 4% to Federal Bank for a total sum of Rs 595 crore. Deal subject to regulatory approvals to be taken by all related parties.
- Axis Bank: S&P Global Ratings lowered the lender's credit rating to below investment grade, on expectations of a looming recession in India due to Covid-19. Rating cut to BB+ from BBB- while the outlook has been retained as stable. The ratings agency expects the asset quality of Indian banks to deteriorate, credit costs to rise and profitability to decline over the next 12 months.
- Mahindra Logistics: The Board of Directors have approved further investment in Lords Freight (India). The company will purchase 3.8 lakh shares of Lords from the existing promoter shareholders. Post the acquisition, Mahindra Logistics will now hold 99% shares of the company. The consideration worth Rs 4 crore will be done in cash. The company expects the acquisition to be completed by September 2020.
- Adani Transmission: To acquire 100% stake in Kharghar Vikhroli Transmission. Project comprises of nearly 34 km of 400 kV and 220 kV transmission lines along with 1,500 MVA 400 kV GIS substation in Vikhroli. The company shall build, own, operate and maintain the transmission project in the state of Maharashtra for 35 years.
- ITI: Signs accord with Tech Mahindra for wireles technology in the areas of 4G and 5G smart networks, smart cities and healthcare services.
- Nifty Earnings Today: Tata Steel
- Non-Nifty Earnings Today: Phoenix Mills, Raymond, MRF, CESC, Petronet LNG, MIDHANI, Lux Industries, Central Bank of India, Bharat Forge, Hindustan Copper, Minda Industries, Parag Milk Foods, Rail Vikas Nigam, Spencer's Retail, Venky's, Welspun India.
To know more about the earnings reported after market hours, companies sharing Covid-19 updates and more, click here.
Your Trade Setup For The Day
A Check On Indian ADRs
U.S. Markets On Friday
- Benchmark indices fell to their lowest in over two weeks
- S&P 500 fell 2.4%, posts losses for the week
- Banking stocks declined after the Federal Reserve capped dividends and banned buybacks through September
- Copper posted sixth straight weekly gain
- U.S. Dollar rose for the third straight day
- Consumer spending surged by a record in May
- Yield on the 10-year treasury fell five basis points to 0.64%
- West Texas Intermediate Crude fell 1.4% to $38.17 per barrel
Get your daily fix of the global markets here.
SGX Nifty Off Opening Low
Good Morning!
Indian equity markets are set to track reversal in cues in Asia and the U.S. after posting their fourth weekly advance in five on Friday.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.5% to 10,286 as of 7:40 a.m.
Asian markets have pared early declines as investors weigh China's economic recovery against the rising cases of Covid-19 across the U.S.
Markets in Japan and Australia are off the day's low, while they are fluctuating in Hong Kong. Chinese markets are lower on resuming after a two-day holiday.
Futures on the Dow Jones have pared losses and are trading higher by over 110 points as of 8:00 a.m.
"The markets are priced for a much sharper V-shaped recovery which we don't think is likely," David Hunt, CEO of PGIM told Bloomberg TV in an interview.
West Texas Intermediate Crude is down 1.1% at $38.06 per barrel.
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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