KEY HIGHLIGHTS
Markets At Close
- Benchmark indices end with gains for the second straight day
- Nifty ends 1.4 percent higher at 9,313
- Nifty futures end with discount of 27 points
- Sensex ends 1.5 percent higher at 31,863
- Nifty Bank ends 2.9 percent higher at 20,267
- Nifty Midcap Index ends 1.2 percent higher
- Nifty Smallcap Index ends 1.7 percent higher
- India Volatility Index ends 8.9 percent lower at 39
- Nifty FMCG ends as top sectoral laggard; down 1.4 percent
- Nifty I.T. ends as the top sectoral gainer; up 4.4 percent
- Kotak Mahindra Bank ends as the top Nifty gainer; up 8.3 percent
- Titan ends as the top Nifty laggard; down 3.7 percent
- 1,151 stocks on the NSE end with gains while 638 post losses
Contributors To Nifty's Gains
Closing Bell: Second Day Of Gains
Indian equity markets ended higher for the second day, led by gains in private banking stocks as well as Information Technology heavyweights.
The S&P BSE Sensex ended at 31,863, up by 483 points or 1.54 percent. The NSE Nifty 50 index too ended above the 9,300 mark at 9,313, up by 1.4 percent. Kotak Mahindra Bank emerged as the top index gainer, with gains of over 8 percent. I.T. majors like Infosys and TCS also contributed to gains.
Among sectoral indices, the Nifty Bank and the Nifty I.T. index gained 2.6 and 4 percent respectively. The Media index cooled off in the second half of trade to end 1 percent higher.
1,151 stocks on the National Stock Exchange ended the day with gains while 638 declined.
Stock Update: Mahindra Logistics
- Down for the third straight day
- Among the worst performers on the Nifty 500 index
- Locked in a 5 percent lower circuit
- Lower circuit for the last three days
- Longest losing streak in a month
- Down 14 percent in the last three sessions
- Today's volumes are 0.9 times higher than its 30-day average
- Faced resistance at its 50-day Moving Average of Rs 314.48 and has been correcting since
- 11 out of the 12 analysts tracking the stock have a buy recommendation
- Return potential for the stock as per Bloomberg data is 50.1 percent
Stock Update: Indiabulls Housing Finance
The company has informed the stock exchanges that it has remitted repayments of External Commercial Borrowing (ECB) worth approximately Rs 1,140 crore or $150 million. The said payments were due tomorrow, April 24.
The stock currently trades 1.3 percent higher at Rs 117 after rising as much as 4 percent. The stock may snap a two-day losing streak.
Earnings Estimates: Bharti Infratel Q4FY20
- Revenue seen 1 percent lower at Rs 3,638 crore
- Ebitda seen 2 percent lower at Rs 1,841 crore
- Ebitda Margin seen at 50.6 percent from 51.1 percent
- Net profit seen 1 percent lower at Rs 791 crore
- Tenancy ratio seen flat at 1.85x
- Will continue to get Rs 90 crore as revenue from tenancy cancellations
- All estimates are BloombergQuint estimates, consolidated and compared on a sequential basis
Key Factors To Watch For Bharti Infratel:
- Commentary on trends in gross tenancy additions and exits
- Update on merger with Indus Towers
- Dividend strategy due to implications of AGR case
- Change in Dividend Distribution Tax regime
Marico Shares Further Business Updates
Active Stock Options
- Reliance Industries' 1,400 Call: Premium falls 27.7 percent to Rs 27. The contract has added 1.23 lakh shares in Open Interest.
- ICICI Bank's 350 Call: Premium rises 41.4 percent to Rs 15.2. The contract has added 1.43 lakh shares in Open Interest.
- State Bank Of India's 190 Call: Premium falls 22 percent to Rs 6.35. The contract has added 18.24 lakh shares in Open Interest.
Trading Ideas From Brijesh Singh Of StockAxis
- Buy Nifty on dips around 9,250 for target of 9,350 and stop loss of 9,190
- Buy CESC at Rs 610 for target of Rs 635 and stop loss of Rs 595
- Sell GAIL at Rs 83.50 for target of Rs 80.5 and stop loss of Rs 85
Kotak Mahindra Bank: Top Nifty Gainer
Shares of the private lender gained as much as 8.16 percent to Rs 1,246.20. It is the top gainer on the Nifty 50 index and also the top point contributor, with a contribution of 29 points to the index upside.
The stock is up for the second straight day today on volumes that are 1.3 times higher than its 30-day average.
Brokerage firm Morgan Stanley maintained its overweight rating on the stock with a price target of Rs 1,680. It believes that the bank's capital raising plans will further strengthen its balance sheet, implying a dilution of 3.4 percent on execution.
Markets At 2:10 P.M.
- Benchmark Indices come off day's high; recover later
- Nifty up 1.4 percent to 9,317
- Nifty futures trade at a discount of 28 points
- Sensex up 1.5 percent to 31,844
- Nifty Bank up 2.6 percent to 20,211
- Nifty Midcap and Nifty Smallcap Index up 1.8 percent each
- India Volatility Index down 7.7 percent to 39.52
- Nifty I.T. is the top sectoral gainer; up 3.3 percent
- Nifty Metal and Nifty Realty are off the day's high but are up over 1.5 percent
- Kotak Mahindra Bank is the top Nifty gainer; up 7.6 percent
- Titan remains the top Nifty laggard; down 3.8 percent
- 1,205 stocks on the NSE are advancing while 564 trade with losses
Money Market Update
It was strong day in the currency markets with the rupee seeing appreciation against the U.S. Dollar.
The currency ended at 76.07 against the Greenback, as compared to Wednesday's close of 76.66. The rupee was the second best performing currency among its Emerging Market peers after the Russian Ruble.
Yield on the 10-year bond also fell to the lowest in a month, ending at 6.052 percent compared to Wednesday's close of 6.19 percent.
Yields cooled off after the Reserve Bank of India announced another version of 'Operation Twist.' The central bank will purchase long-term bonds worth Rs 10,000 crore across 5-10 year maturities and simultaneously sell short-term bonds worth Rs 10,000 crore with up to one-year maturity.
Earnings Reaction: Alembic Pharma
The Vadodara-based pharmaceutical company reported a 30.2 percent jump in its topline for the March-ended quarter at Rs 1,206 crore, compared to the same quarter last year.
Net profit rose 64.9 percent to Rs 204 crore, Ebitda Margin expanded to 27.1 percent from 19.2 percent year-on-year.
It was a remarkable year for the company where we recorded our highest revenue and profit ever. This was led by strong growth in the U.S. generics business. During the fourth quarter we saw our India and ROW business also getting back to a robust growth.Pranav Amin, MD, Alembic Pharma
Shares rose as much as 5.1 percent to Rs 670 on the National Stock Exchange and are up for the second day in a row.
Stock Update: Venky's India
- Locked in a lower circuit of 5 percent at Rs 1,076
- Among the worst performers on the BSE Smallcap index
- Down for the third straight day
- Corrects 10.3 percent in the last three sessions
- Falls for three straight days for the first time in a month
- Volumes are 0.2 times higher than its 30-day average
- Return potential for the stock as per Bloomberg data at 110.5 percent
Stock Reaction: Britannia Industries
The board of directors of the company at their board meeting today have announced an interim dividend of Rs 35 for FY20, according to the company's exchange filing.
Record date for the same has been set as May 2, 2020.
Shares are off the highest point of the day and trade 2 percent higher at Rs 3,011 on the National Stock Exchange.
Stock Update: Muthoot Finance
- Top gainer on the BSE Midcap Index
- Gained as much as 12.8 percent to Rs 856.85
- Trades at almost a two-month high
- Up for 10 out of the last 12 trading sessions
- Gained 38 percent in the last 12 sessions
- Today's volumes are double than its 30-day average
- Breaks above its 50-day Moving average of Rs 748.43
- 11 out of the 12 analysts tracking the stock have a buy recommendation
- Return potential of the stock as per Bloomberg data is 7 percent
Stock Update: Caplin Point Laboratories
- Gains as much as 10 percent to Rs 345
- Snaps four-day losing streak
- Trades at the highest level in two months
- Today's volumes are 3.1 times higher than its 30-day average
- Trades near its 200-day Moving Average of Rs 352.48
- Has gained 95 percent from its 52-week low of Rs 176.2 on March 24, 2020
- Return potential of the stock as per Bloomberg data is 49.6 percent
European Markets Open Positive
Markets across Europe have opened with gains as investors await further corporate earnings and the latest update on the jobless claims in the U.S.
Trading volumes across the Asia-Pacific remains subdued while Oil climbed above the $15 per barrel mark in New York.
Here's a look at how benchmarks across Europe are faring:
- Euro Stoxx 50 up 0.37 percent to 2,846
- DAX up 0.3 percent to 10,440
- CAC up 0.8 percent to 4,446
- FTSE 100 up 0.2 percent to 5,781
- IBEX 35 up 0.7 percent to 6,765
Sundaram Finance On Life Post Covid-19
SBI The Only Laggard On The Nifty Bank Index
Stock Update: Suven Life Sciences
- Has a total market capitalisation of Rs 460 crore
- Locked in a 5 percent upper circuit at Rs 36.15
- Up for the 12th straight session
- Longest gaining streak in two months
- Locked in a 5 percent upper circuit in all 12 sessions
- Up 77 percent in the last 12 sessions
- Today's volumes are 0.1 times higher than its 30-day average
- All 5 analysts covering the stock have a buy recommendation
- Return potential of the stock as per Bloomberg data is 500 percent
Markets At Noon
- Benchmark indices surge to the day's high
- Nifty up 1.4 percent to 9,315
- Nifty futures trade at a discount of 20 points
- Sensex up 1.3 percent to 31,807
- Nifty Bank up 2.3 percent to 20,158
- Nifty Midcap Index up 2.2 percent
- Nifty Smallcap Index up 2 percent
- India Volatility Index down 7.9 percent to 39.44
- All sectoral indices hold on to gains
- Nifty Media index up 3.1 percent
- Nifty I.T., Nifty Metal and Nifty Realty up over 2.5 percent each
- Zee Entertainment remains the top Nifty gainer; up 8.3 percent
- Titan remains the top Nifty laggard; down 3 percent
- 1,286 stocks on the NSE are advancing while 419 are correcting
Unilever Withdraws 2020 Guidance
Unilever Plc, the parent company of Hindustan Unilever has withdrawn its growth and margin outlook for the 2020.
The company said that underlying sales for the first quarter this year were flat as compared to an estimate of 2.14 percent growth.
While volume growth for the quarter was 0.2 percent, pricing saw a de-growth of 0.2 percent during the quarter.
We see upswings in sales of hygine and in-home food products, combined with some household stocking and near cessation of out of home consumption which is particularly affecting our food service and ice-cream business.Statement from Unilever Plc
Shares of Hindustan Unilever are now trading at the lowest point of the day, falling as much as 3.1 percent to Rs 2,311 post the announcement.
All Constituents Of The Nifty I.T. Index Gain
Stock Update: Astral Poly Technik
The company has informed exchanges that it has received permission from government authorities to restart operations at five of its plants.
The company had suspended all operations on March 24, in view of the nationwide lockdown announced to curb the spread of Covid-19.
The five plants that are now operational are:
- Santej and Dholka in Gujarat
- Ghilot in Rajasthan
- Sangli in Maharashtra
- and Sitarganj in Uttarakhand
Shares rose as much as 5.1 percent to Rs 909.9 and are up for the second straight day.
Stock Update: GMM Pfaudler
- Trades at a life-time high
- Among the best performers on the BSE 500 index
- Gained as much as 9.28 percent to Rs 4,090
- Up for the seventh trading session
- Longest winning streak since December 2016
- Gains 48 percent in the last seven trading sessions
- Today's volumes are 2.7 times higher than its 30-day average
- Relative Strength Index of 80 indicates that the stock is overbought
- Made a 52-week low of Rs 1,100 on May 16, 2019; Has gained 271 percent since then
Stock Reaction: Zee Entertainment
The stock remains the top gainer on the Nifty 50 index, adding to Wednesday's 20 percent surge.
Florida Retirement Systems acquired 0.53 percent stake in the company at Rs 141.25 per share in a large trade on Wednesday.
Shares gained as much as 14.1 percent to Rs 173.40 on volumes which are 6.3 times higher than its 30-day average. The stock has now risen 27 percent in the last two sessions.
Active Stock Options
- Reliance Industries' 1,400 Call: Premium falls 19.6 percent to Rs 30. The contract has added 1.33 lakh shares in Open Interest.
- Kotak Mahindra Bank's 1,200 Call: Premium rises 56.7 percent to Rs 46.7. The contract has added 40,800 shares in Open Interest.
- Tata Steel's 280 Call: Premium rises 30 percent to Rs 11.5. The contract has added 4.66 lakh shares in Open Interest.
Stock Reaction: Tanla Solutions
Shares of the computer software manufacturer are locked in a 5 percent upper circuit after the board of the company approved a share buyback.
The company approved a buyback of 1.9 crore shares at Rs 81 per share, aggregating to Rs 154 crore. The buyback price is at a 28 percent premium to Wednesday's closing price.
The company has a market capitalisation of Rs 969.2 crore and is locked in an upper circuit of 5 percent for the fifth day in a row.
How Are The Sectoral Indices Faring
Aiding Gains On The Nifty
F&O Snapshot: Active Options Contracts
- Nifty April futures add 8.4 percent in Open Interest and 7.92 lakh shares
- Nifty Bank April futures add 9.44 percent in Open Interest and 1.22 lakh shares
Nifty: April 23 Expiry
- 9,300 Call: Premium falls 31 percent to Rs 22.5. The contract has added 13.78 lakh shares in Open Interest.
- 9,000 Put: Premium falls 95 percent to Rs 1.3. The contract has added 18.5 lakh shares in Open Interest.
- 9,200 Call: Premium rises 11.4 percent to Rs 76.45. The contract has added 6.81 lakh shares in Open Interest.
Nifty Bank: April 23 Expiry
- 20,000 Call: Premium falls 10 percent to Rs 139. The contract has added 4.98 lakh shares in Open Interest.
- 19,000 Put: Premium falls 96 percent to Rs 3.5. The contract has added 9 lakh shares in Open Interest.
- 19,500 Put: Premium falls 88.46 percent to Rs 27.15. The contract has added 5.24 lakh shares in Open Interest.
Stock Reaction: Deepak Nitrite
The specialty chemicals company has partially commenced operations at its Hyderabad plant. With this, all manufacturing facilities of the company are now operational.
As per the exchange filing on Wednesday evening, the company's arm Deepak Phenolics has also commenced production of Isopropyl Alcohol used in the manufacturing of sanitisers and majorly used by Pharma companies.
Shares rose as much as 7.1 percent to Rs 489.80, snapping a two-day losing streak.
Markets At 10:10 A.M.
- Benchmark indices surge to the day's high
- Nifty up 0.8 percent at 9,258
- Nifty futures trade at a discount of 20 points
- Sensex up 0.6 percent at 31,575
- Nifty Bank up 1.1 percent at 19,913
- Nifty Midcap Index up 2.2 percent
- Nifty Smallcap Index up 1.9 percent
- India Volatility Index down 5.6 percent to 40.39
- All sectoral indices trade with gains
- Nifty Media (Up 2.7 percent), Nifty Metal (Up 2.3 percent) and Nifty Realty (Up 2.4 percent) are among the top sectoral gainers
- Britannia is the top Nifty gainer; up 8.4 percent
- Titan is the top Nifty laggard; down 2.1 percent
- 1,241 stocks on the NSE are advancing while 369 trade with losses
Money Market Update
The currency opened stronger for the second day after a positive close on Wednesday.
The rupee opened at 76.30 as compared to Wednesday's close of 76.66 against the U.S. Dollar. The currency recovered after making a fresh record low of 76.90 in the early minutes of Wednesday's trade.
Yield on the 10-year bond opened at 6.198 percent after ending Wednesday's trade at 6.223 percent.
Also Read: India’s Yield Curve Is All Bent Out Of Shape
Stock Reaction: Glenmark Pharma
The pharmaceutical company tells BloombergQuint that it has filed for a marketing authorisation with the Drug Controller General of India (DGCI) for a Coronavirus drug. The news was first reported in the Times of India.
Glenmark also told BloombergQuint that the ARV drug Favipiravir has shown promise and it is hopeful of getting good results in clinical trials.
Shares rose as much as 9 percent to Rs 346.95 and are up for the third straight day. It is also the top performer on the Nifty Pharma index.
Stock Update: Parag Milk Foods
The dairy company has informed the exchanges that promoters of the company have released 75 lakh pledged equity shares of the company from Kotak Mahindra Investments.
Promoters have repaid Rs 54 crore out of the original loan amount of Rs 64 crore. The balance 10 crore, as per the company's exchange filing will be repaid on schedule.
1.11 crore shares still remain pledged with Kotak Mahindra Investments for the balance loan amount.
Shares are locked in a 10 percent upper circuit at Rs 100 and are up for the second straight day.
Stock Reaction: Vodafone Idea
Shares of the telecom service provider gained as much as 15 percent to Rs 4.55 before cooling off.
Vodafone Group accelerated a payment of $200 million to the company, providing it with liquidity to manage its operations, the company said in a statement to the exchanges.
Payment was due in September 2020 under the terms of the contingent liability mechanism, under which the potential exposure of the Vodafone Group stands at Rs 8,400 crore.
Shares are rising for the second straight session today.
Stock Update: HEG
The company has informed the exchanges that it has partially resumed manufacturing operations at its Mandideep facility in Madhya Pradesh.
Operations have resumed after obtaining prior permission from local authorities, the company said in its statement to the exchanges.
The Company has been taking all precautions, adopting social distancing and other safety measures as per the government / local administration guidelines across its operations in the above plant for prevention and containment of Covid-19.Statement From HEG
Shares are locked in a 5 percent upper circuit at Rs 952.45. The stock is up for the 11th straight day, the longest winning streak since May 2005.
Stock Reaction: Titan
Shares of the Tata Group company were the top laggards on the Nifty 50 index, after brokerage firm Goldman Sachs downgraded the stock to sell from neutral. It also cut its price target to Rs 738 from the previous target of Rs 803.
Goldman Sachs believes that the company's demand outlook is losing its shine and that its earnings will be significantly impacted as the GDP growth slows down.
The slowdown in GDP will resultantly impact discretionary categories, according to the Goldman note.
Shares fell as much as 4.1 percent to Rs 911.8 on the National Stock Exchange.
Opening Bell: Steady Start To Trade
Indian equity markets fluctuated after opening with gains for the second straight day. Cues from the Asia-Pacific are mixed while futures on the Dow Jones trade lower by 80 points.
The S&P BSE Sensex opened 0.85 percent higher at 31,646 while the NSE Nifty 50 index opened at 9,232, adding 45 points or 0.5 percent to Wednesday's close. Both the indices gave up their opening gains within the first minutes of trade.
All sectoral indices opened with a flat to positive bias. The Nifty Media index remains the top sectoral gainer, opening with gains of 2.45 percent.
976 stocks have opened with gains while 361 have opened with losses.
Latest Update On The Coronavirus
- Global cases top 2.6 million
- Death toll exceeds 1.83 lakh
- U.S. President Donald Trump signs executive order to curb immigration
- China reports no deaths for eight days in a row
- New York reports fewest daily deaths since early April
- South Korea's economy suffers worst contraction since the global financial crisis
- New cases in Mexico rise by more than 1,000 in a single day for the first time
- Total cases in India rise to 21,393; an addition of 1,409 cases. Death toll rises to 681 while 388 recoveries in last 24 hours.
Trading Ideas From Sameet Chavan Of Angel Broking
- Buy Nifty at 9,130 for target of 9,250 and 9,280 with a stop loss of 9,074
- Buy Muthoot Finance for target of Rs 792 and stop loss of Rs 738
- Buy Ramco Cement for target of Rs 594 and stop loss of Rs 538
Trading Ideas From Abhijit Phatak Of Definedge Solutions
- Can long Nifty as long as it remains above 8,900 for target of 9,200 and 9,275 with a stop loss of 9,020
- Buy BEL near Rs 76 for target of Rs 79 and Rs 84 with a stop loss of Rs 73
- Sell Hindustan Unilever near Rs 2,400 for target of Rs 2,300 and stop loss of Rs 2,430
Key Stocks In Focus
- Yes Bank: Seeks shareholder approval to raise an additional Rs 5,000 crore via issuance of equity or other convertible securities.
- Vodafone Idea: Vodafone Group says that it has accelerated payment of $200 million to the company, providing liquidity to manage its operations. Payment was due in September 2020 under terms of the contingent liability mechanism.
- MCX: The April 22 pay-in and payout, including the settlement of April 20 Crude Oil contract, has been completed and a payout of Rs 242.32 crore has been made to clearing members of MCXCLL.
- HDFC Life Insurance: To consider raising funds via NCDs on April 27.
- TVS Motor: To consider issuance of NCDs on April 28.
- Tanla Soutions: Board approved buyback of 1.9 crore shares (12.49 percent) at Rs 81 per share aggregating to Rs 154 crore. Buyback price is at a premium of 28 percent to closing price as on April 22.
- Non-Nifty Earnings Today: Alembic Pharma, Hathway Cable & Datacom, Mahindra CIE, Network18 Media, TV18 Broadcast.
- Titan: Goldman Sachs downgrades to sell from neutral. Price target cut to Rs 738 from Rs 803
- Maruti Suzuki: CLSA downgrades to sell from buy. Price target cut to Rs 4,235 from Rs 9,000
For all that you need to know going into today’s trade, click here.
Your Trade Setup For The Day
How Did The Fund Flows Fare On Wednesday
A Check On Indian ADRs
U.S. Markets On Wednesday
- Benchmark indices halt two-day declines; rebound from biggest one-day drop in three weeks
- The S&P 500 ended 2.3 percent higher while the Dow Jones surged 2 percent
- MSCI All-Country World Index gained 1.8 percent
- S&P 500 up 28 percent from its March lows
- Yield on the 10-year treasury rose to 0.61 percent
- West Texas Intermediate crude jumped 18.6 percent to $13.7 per barrel
- Gold rose 1.8 percent to $1,718.3 an ounce
Catch all the action from the global markets today by clicking here.
SGX Nifty Cools Off
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, was flat at 9,175 as of 8:00 a.m.
Markets in Hong Kong, Japan and South Korea are edging higher with modest gains while those in China are fluctuating. Futures on the S&P 500 are flat after the benchmark rebounded from its worst one-day drop in three weeks.
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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