KEY HIGHLIGHTS
Markets At Close
- Nifty ends 2.3 percent higher at 9,187
- Sensex ends 2.4 percent higher at 31,379
- Nifty Bank ends 1.5 percent higher at 19,701
- Nifty Midcap Index ends 0.75 percent higher
- Nifty Smallcap Index ends 0.5 percent higher
- India Volatility Index ends 4.9 percent lower at 42.8
- Nifty Media Index ends as top sectoral gainer; up 6.6 percent
- Nifty Auto and Nifty FMCG end with gains of over 2.5 percent
- Zee Entertainment ends as the top Nifty gainer; up 20 percent
- ONGC ends as the top Nifty laggard; down 5.6 percent
- 966 stocks end the day with gains while 813 decline
Aiding The Nifty Gains
Closing Bell: Reliance All The Way
Indian Equity markets shrugged off weak global cues to end sharply higher. Reliance Industries was the single biggest contributor to gains, contributing almost half of the upside seen in both benchmarks.
The S&P BSE Sensex ended 2.4 percent higher at 31,379 while the NSE Nifty 50 index ended just a shade below the 9,200 mark at 9,187, higher by 2.3 percent.
Most sectoral indices recovered from their opening lows. The Nifty Media Index was the top gainer, ending with gains of 6.6 percent. Nifty Auto and FMCG also ended with gains of over 2.5 percent.
966 ended the trading with gains while 813 ended with losses.
Stock Update: Spandana Sphoorty
- Trades at an all-time low
- Among the worst performers on the Nifty 500 index
- Fell as much as 6.4 percent to Rs 450
- Down for the third straight day
- Down 16 percent in the last three sessions
- Declined in 8 out of the last 10 sessions
- Falls 24 percent in the last 10 sessions
- Today's volumes are 0.4 times higher than its 30-day average
- Stock in oversold territory with Relative Strength Index (RSI) at 26
- Has declined 68 percent from its 52-week high of Rs 1,397 on November 8, 2019
- All 5 analysts tracking the stock have a buy recommendation
- Return potential for the stock as per Bloomberg data at 175 percent
Outcome Of Board Meeting: Indian Hotels
The company held its board meeting today where the Board of Directors approved raising long-term funds not exceeding Rs 750 crore.
The funds will be raised via External Commercial Borrowings, Foreign Currency Borrowings, Non-Convertible Debentures, Term Loans or through any other instrument in one or more tranches, the company said in a statement to the exchanges.
Shares fell as much as 3.58 percent to Rs 76.75 and are lower for the second day in a row.
Stock Update: Colgate-Palmolive
- Trades at a three-month high
- Top performer on the Nifty FMCG index
- Gains as much as 8.1 percent to Rs 1,518
- Biggest one-day gain since September 2019
- Up for the second straight day
- Gains 10 percent in the last two sessions
- Today's volumes are 4.4 times higher than its 30-day average
- Relative Strength Index (RSI) at 72 indicating stock may be overbought
- 18 out of the 36 analysts tracking the stock have a buy recommendation; 7 sell calls
- The stock trades 7.6 percent above its 12-month consensus price target of Rs 1,387.4
Stock Update: Laurus Labs
- Trades at the highest level since July 2018
- Gained as much as 8.38 percent to Rs 494
- Up for the fourth straight day
- Longest gaining streak in nearly two months
- Up close to 20 percent in the last 4 sessions
- Today's volumes are 7.6 times higher than its 30-day average
- Relative Strength Index (RSI) at 73 indicating that the stock may be overbought
- 8 out of the 9 analysts tracking the stock have a buy recommendation; 0 sell calls
- Return potential of the stock as per Bloomberg data is 9.7 percent
Markets At 2:10 P.M.
- Benchmark indices hold on to gains
- Nifty up 1.9 percent at 9,151
- Sensex up 2 percent at 31,259
- Nifty Bank up 0.5 percent at 19,505
- Nifty Midcap Index flat
- Nifty Smallcap index down 0.2 percent
- India Volatility Index down 3.8 percent to 43.46
- Nifty Realty (Down 1.4 percent) and Nifty PSU Bank (Down 1.3 percent) are the top sectoral laggards
- Nifty Media index remains top sectoral gainer; up 4.7 percent
- Nifty FMCG (Up 1.5 percent), Nifty I.T. (Up 1.1 percent) are some of the other gainers
- Zee Entertainment is the top Nifty gainer; up 13 percent
- ONGC remains the top Nifty laggard; down 7.3 percent
- 852 stocks are advancing while 897 are declining on the NSE
Money Market Update
The rupee recovered after hitting a fresh record low in the opening minutes of today's trading session as the equity markets too gained momentum.
The currency ended the day at 76.68 after hitting a record low of 76.90 against the U.S. Dollar. Tuesday's closing stood at 76.84.
Yield on the 10-year government bond ended at 6.22 percent after starting trade at 6.19 percent.
Bank Of America Corp Raises Target On Gold
BofA Corporation expects gold to reach $3,000 an ounce in the next 18 months, more than 50 percent above the existing price record.
In a report titled "The Fed Can't Print Gold," the bank has raised its target from the previous $2,000 an ounce as policy makers across the globe unleash vast amounts of stimulus to help save the economies hurt by the Covid-19 pandemic.
BofA expects the yellow metal to average $1,695 per ounce this year and $2,063 per ounce in 2021. It had made a record high of $1,921.17 in September 2011.
Reliance Single Handedly Takes The Nifty Higher
Nifty Media Index: Top Sectoral Gainer
Positive Start In Europe
European stocks have opened with gains with the Stoxx 600 advancing as much as 0.9 percent in early trade. The European benchmark is attempting to close higher for the fifth out of the last seven sessions.
Technology, telecom and banking stocks are outperforming, while Brent Crude is down 12 percent to $16.99 per barrel.
Here's a look at how the benchmarks are across Europe are faring:
- Euro Stoxx 50 up 0.8 percent to 2,813
- DAX up 1 percent to 10,351
- CAC up 0.3 percent to 4,370
- FTSE 100 up 0.9 percent to 5,690
- IBEX 35 up 0.6 percent to 6,678
Strong Gains For The Auto Index
Stock Update: Aditya Birla Fashion
- Trades at the lowest level since April 30, 2015
- Fell as much as 4.1 percent to Rs 122.40
- Falls for the third straight session
- Down 13 percent in the last 3 sessions
- Today's volumes are 1.2 times higher than its 30-day average
- Relative Strength Index (RSI) of 21 indicates stock may be oversold
- The stock has fallen 56.4 percent from its 52-week high of Rs 285.5 on February 24, 2020
- 24 out of the 25 analysts tracking the stock have a buy recommendation; 0 sell calls
- Return potential of the stock as per Bloomberg data is 102.5 percent
Stock Update: Kotak Mahindra Bank
The bank at its board meeting held today has given its approval to raise capital by way of issue of up to 6.5 crore equity shares of Rs 5 each.
The fund raise will be done through private placement, follow-on public offer (FPO) or a QIP or a combination thereof, as considered appropriate, as per the bank's statement to the exchange.
Shares gained as much as 3.24 percent to Rs 1,166 on the National Stock Exchange, snapping a two-day losing streak.
Stock Update: Quess Corp
- Trades at an all-time low
- Fell as much as 5 percent to Rs 200
- Declines for the second straight day
- Down almost 10 percent in the last two sessions
- Today's volumes are 1.4 times higher than its 30-day average
- Relative Strength Index (RSI) at 24. Reading below 30 indicates stock oversold
- Down 70 percent in the last 12 months. 52-week high of Rs 722.95 on April 25, 2019
- 9 out of the 11 analysts tracking the stock have a buy recommendation; 1 sell call
- Return potential of the stock as per Bloomberg data at 205.8 percent
Stock Update: Welspun India
The company has informed the exchanges that it has received permissions from the administrative authorities of Valsad and Kutch district of Gujarat to resume partial operations from April 21.
The stock is down for the second day in a row, falling 3.8 percent to Rs 28.35. It snapped a four-day gaining streak on Tuesday.
Markets At Noon
- Benchmarks gain momentum; recover from day's low
- Nifty up 1.25 percent at 9,093
- Nifty futures trade at a discount of 13 points
- Sensex up 1.5 percent at 31,089
- Nifty Bank up 0.2 percent at 19,437
- Nifty Midcap Index down 0.1 percent
- Nifty Smallcap Index down 0.3 percent
- India Volatility Index down 2.3 percent to 44.15
- Nifty Media (Up 2.5 percent) and Nifty Auto (Up 2.1 percent) are the top sectoral gainers
- Nifty Metal (Down 1.5 percent) is the top sectoral laggard
- Zee Entertainment is the top gainer on the Nifty; up 8 percent
- ONGC remains the top laggard on the Nifty; down 8.3 percent
- 800 stocks are advancing while 913 stocks trade with losses
Stock Reaction: ONGC & Oil India
- Both stocks decline for the third straight day
- ONGC is the worst performer on the Nifty 50 index
- Oil India is the worst performer on the Nifty Midcap Index
- ONGC and Oil India have fallen 17 and 15.5 percent respectively in the last three sessions
- Oil India's volumes were double than its 20-day average
- ONGC's volumes were triple its 20-day average
- Brent Crude has fallen to a 21-year low as selling pressure has intensified
- 26 out of the 36 analysts tracking ONGC have a buy recommendation; 4 sell calls
- 18 out of the 26 analysts tracking Oil India have a buy recommendation; 4 sell calls
What India's Top Investors Did During The Market Correction
Earnings Reaction: ACC
The cement company's revenue and net profit fell 10.6 and 5.5 percent respectively for the first quarter of CY20. However, both numbers were above consensus estimates.
Ebitda Margins expanded to 16.7 percent from 13.5 percent in the same quarter last year, aided by low raw material costs and lower other expenses.
Despite uncertainty surrounding the COVID-19 pandemic and lockdown restrictions, the Company believes that, post lockdown, supportive measures and stimuli from the Government & Reserve Bank of India will help spur demand growth notably in the infrastructure segment. We expect cement demand to increase in the medium-term once the pandemic subsides and business operations commence.Statement From ACC
Shares gained as much as 3.66 percent to Rs 1,178.40 and are up for the seventh time in eight sessions.
Tata Steel's Business Update
Tata Steel Ltd. released their business update for the fourth quarter where production volumes grew 6 percent compared to last year to 4.74 million tonnes. For the full year of FY20, production volumes grew 8 percent compared to last year.
The company also reported its highest ever annual sales in Branded products and Retail, showing a growth of 8 percent year-on-year, as per the press release.
Demand in Europe has declined, as many customers including European carmakers have paused production. Utilisation levels in Europe are currently around 70 percent, as per the company.
While the company is focused on conserving cash and ensuring adequate liquidity, it continues to monitor the situation closely and has taken several initiatives to ensure that the operations are in a state of readiness to ramp back as the situation improves and normalcy is restored.Statement From Tata Steel
Shares have recovered from the day's low, after having fallen as much as 2.56 percent to Rs 259.25.
Reliance Industries: Active Options
- 1,400 Call: Premium up 133.33 percent to Rs 23.8. The contract has added 3.25 lakh shares in Open Interest.
- 1,300 Call: Premium up 101.7 percent to Rs 63.15. The contract has shed 1.9 lakh shares in Open Interest.
- 1,300 Put: Premium falls 49.1 percent to Rs 45.15. The contract has added 6.54 lakh shares in Open Interest.
Sensex Off Day's Low; Gains Over 1%
Stock Reaction: NIIT
The company has informed the exchanges that its wholly-owned subsidiary in the U.S., NIIT (USA) Inc. has entered into a Managed Serviecs agreement with a U.S.-based EdTech company.
The deal is to provide virtual services to education providers. The term of this agreement is five years.
Both companies see this as a significant partnership where two market leaders go-to-market jointly to provide innovative solutions in the testing and certification marketplace.Statement From NIIT
Shares gained as much as 11.35 percent to Rs 89.75, post the announcement.
F&O Snapshot: Active Options Contracts
- Nifty April futures add 6.4 percent in Open Interest and 6.1 lakh shares
- Nifty Bank April futures add 12.1 percent in Open Interest and 1.61 lakh shares
Nifty: April 23 Expiry
- 9,000 Call: Premium falls 21.4 percent to Rs 85.4. The contract has added 7.33 lakh shares in Open Interest.
- 8,900 Put: Premium falls 18.4 percent to Rs 87.45. The contract has added 6.5 lakh shares in Open Interest.
- 9,200 Call: Premium falls 35.6 percent to Rs 26.7. The contract has added 4.94 lakh shares in Open Interest.
Nifty Bank: April 23 Expiry
- 18,500 Put: Premium falls 4.3 percent to Rs 154.85. The contract has added 1.95 lakh shares in Open Interest.
- 19,000 Put: Premium rises 7.6 percent to Rs 341.8. The contract has added 1.74 lakh shares in Open Interest.
- 20,000 Put: Premium falls 60.3 percent to Rs 79.7. The contract has added 2.8 lakh shares in Open Interest.
Stock Reaction: Federal Bank
The private sector lender shared its March quarter update on Tuesday where it reported a 11 percent growth in advances and a 13 percent deposits on a year-on-year basis.
The lender's liquidity coverage ratio stood at 195 percent while CASA deposits saw a rise of 7 percent compared to last year.
The bank has also approved the purchase of an additional 4 percent stake in IDBI Federal Life Insurance from IDBI Bank subject to various approvals.
Shares fell as much as 3.1 percent to Rs 42 and is among the worst performers on the Nifty Bank index.
Markets At 10:10 A.M.
- Benchmark indices swing between gains and losses
- Nifty down 0.1 percent at 8,975
- Nifty futures trade at a discount of 21 points
- Sensex up 0.1 percent to 30,650
- Nifty Bank down 1.7 percent at 19,070
- Nifty Midcap Index down 1 percent
- Nifty Smallcap Index down 1.3 percent
- India Volatility Index flat at 45.17
- Nifty Metal Index is the top sectoral loser; down 2.6 percent
- Nifty PSU Bank (Down 2.3 percent) and Nifty Realty (Down 1.4 percent) are among the other sectoral laggards
- Reliance Industries remains the top Nifty gainer; up 5.7 percent
- ONGC is the top Nifty laggard; down 10 percent
- 576 stocks trade with gains while 1,053 are declining
Money Market Update
The currency opened at a record low after the U.S. Dollar continued to strengthen against major currencies across the globe.
The rupee opened at 76.89 as compared to Tuesday's close of 76.83 against the U.S. Dollar. It surpassed its previous record low of 76.86 against the greenback.
Yield on the 10-year bond opened at 6.19 percent as compared to Tuesday's flat close of 6.20 percent.
Earnings Reaction: Tejas Networks
The Bangalore-based optical and data networking products manufacturer reported an 80 percent decline in its topline for the quarter ending March 31.
Operational challenges and inability to ship confirmed customer orders due to the nation-wide lockdown imposed due to the Covid-19 outbreak were the key factors behind the decline in revenue.
The company also reported a net loss of Rs 126.5 crore as compared to a net profit of Rs 35.9 crore in the same quarter last year.
Our medium-term goal is to get 50 percent of our revenues from international customers. Due to the ever-changing Covid-19 situation, it is likely that we will have fluctuations in the company’s operations. There may be delays to execute customer orders as well.Sanjay Nayak, MD & CEO, Tejas Networks
The stock is locked in a lower circuit of 5 percent at Rs 40.55. It is down for the second day in a row after snapping a nine-day gaining streak on Tuesday.
Stock Update: Larsen & Toubro
The company has informed the exchanges that its Buildings and Factories business has secured an order to design and construct an integrated resort complex project in Goa.
The business has also won an order to construct a technology park in Thiruvananthapuram over a total built-up area of 2.3 million square feet.
The order falls under the 'significant' category, valuing it between Rs 1,000 crore to Rs 2,500 crore.
The stock recovered from the opening lows to gain as much as 1.45 percent to Rs 882.95 on the National Stock Exchange. It has declined over the last two trading sessions.
Earnings Reaction: Den Networks
Shares of the company are locked in an upper circuit of 5 percent after its fourth quarter results.
The analog and digital cable TV services provider reported a net profit of Rs 24.7 crore in the March quarter. This is compared to a net loss of Rs 186.4 crore that it reported last year, courtesy an exceptional loss of Rs 211 crore.
Lower placement fees and low finance costs led to Ebitda margins rise to 19.5 percent from 13.6 percent.
The stock is up for the third day in a row and has gained for 9 out of the last 10 trading sessions. The stock has jumped 60 percent from its 52-week low of Rs 25.5 on March 25, 2020.
Stock Reaction: Reliance Industries
Shares of the petrochemical conglomerate gained as much as 7.6 percent to Rs 1,331 after it announced this morning that social networking major Facebook will buy 9.99 percent stake in the company for Rs 43,574 crore.
The stake will be bought on a fully diluted basis and will make Facebook the largest minority shareholder of the company.
The deal s the Jio Platforms Ltd. at 4.6 lakh crore. Shares are up for the fourth time in the last five sessions. It is also the top point contributor to the Nifty gains, with 78 points, ensuring that the index trades with gains.
Opening Bell: Modest Gains
Indian equity markets opened higher courtesy heavyweight Reliance Industries but gave up the gains in the early seconds of trade. Cues from Asia remain weak while U.S. Futures are largely flat.
The S&P BSE Sensex opened 0.72 percent higher at 30,856 while the NSE Nifty 50 opened at 9,026, higher by 0.5 percent.
Reliance Industries was the top gainer as well as point contributor, opening 6.6 percent higher. It is currently contributing 55 points to the Nifty upside.
All sectoral indices barring the Nifty Media index (Up 1.3 percent) and Nifty Realty index (Up 0.3 percent) opened with losses.
703 stocks opened trade with gains while 684 stocks were declining.
Latest On The Coronavirus
- Global cases top 2.5 million while death toll exceeds 1.75 lakh
- U.S. sees biggest daily tally of new infections in almost two weeks
- Recoveries in Italy almost surpassed new cases for the first time
- Germany reports the smallest rise in infections this month
- Oktoberfest canceled for the first time since World War II
- U.S. Senate passes third relief package worth $484 billion
- Total cases in India near the 20,000 mark. 50 new deaths reported in the last 24 hours with 618 recoveries.
Trading Ideas From Chandan Taparia Of Motilal Oswal
- Buy Divi's Labs for target of Rs 2,550 and stop loss of Rs 2,320
- Sell Tata Steel for target of Rs 250 and stop loss of Rs 272
Trading Ideas From Gaurav Bissa Of LKP Securities
- Buy TVS Motor for target of Rs 325 and stop loss of Rs 301
- Sell Bajaj Finance for target of Rs 2,000 and stop loss of Rs 2,140
Key Stocks To Watch
- Reliance Industries: Facebook will buy 9.99 percent stake in Jio's platforms for Rs 43,574 crore. Stake will be purchased on a fully diluted basis.
- ACC: Net profit fell 5.5 percent in the first quarter of CY20. Revenue fell 10 percent compared to last year. Both numbers were above consensus projections
- HDFC: Reduces retail prime lending rate on housing loans on which its adjustable rate home loans are benchmarked by 15 basis points.
- Federal Bank: Advances grow 11 percent while deposits grow 13 percent year-on-year as per its March quarter update.
- Nestle India: All manufacturing locations get permission to operate and are now operating at scaled-down levels.
- SBI Life: To be included in F&O segment from May 4
- Adani Power: To be excluded from F&O from June 26
- Indian Oil Corporation: LPG sale between April 1-20 was 696.6 thousand metric tonnes, a growth of 19.6 percent over the same period last year.
- Tejas Networks: Revenue falls 80 percent while the company reports a net loss of Rs 126.53 crore as compared to a profit of Rs 35.9 crore in the previous year.
For all that you need to know going into today’s session, click here.
Your Trade Setup For The Day
How Did The Fund Flows Fare On Tuesday
A Check On Indian ADRs
U.S. Markets On Tuesday
- Benchmark indices fall the most in three weeks while treasuries rally
- S&P 500 ends 3.1 percent lower after investors shrugg off a deal reached by the White House with Congressional leaders on fresh spending to combat the impact of Covid-19
- The Dow Jones fell to a two-week low after Tuesday's 2.7 percent drop
- President Donald Trump said his administration is working on a plan to make money available to the oil industry to prevent losses of jobs
- The U.S. Dollar climbed against most major currencies
- Yield on the 10-year treasury fell to the lowest in six weeks at 0.57 percent
Catch all the updates from the Asian markets this morning here.
SGX Nifty Declines As Weakness Persists In Asian Stocks
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.75 percent to 8,895 as of 7:40 a.m.
Asian markets have declined in morning trade after another risk-off session on Wall Street. Investors continue to monitor volatility in energy markets and grapple with the fact that companies are struggling to provide an outlook for the rest of the year.
Markets in Australia, Hong Kong and Japan are declining, although the losses are shallower than their Wall Street counterparts. Oil markets too are rebounding after tumbling over 50 percent in the last two sessions.
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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