Sensex, Nifty Post Best Gaining Streak In Seven Months

• Benchmark indices end at their highest level since March 11
• Nifty ends 1.56% higher at 9,979
• Sensex ends 1.57% higher at 33,825
• Nifty Bank ends 2.86% higher at 20,530
• Nifty Midcap Index ends 1.4% higher
• Nifty Smallcap Index ends 2.4% higher
• India Volatility Index down 2.4% to 29.99
• Nifty FMCG Index ends as the only sectoral laggard; down 0.7%
• Nifty Realty Index ends as the top sectoral gainer; up 4.9%
• Nifty Media Index ends with gains of 3.3%; led by Zee Entertainment
• Bajaj Finserv ends as the top Nifty gainer; up 9.5%
• Coal India ends as the top Nifty laggard; down 3.3%
• 1,380 stocks on the NSE end with gains while 428 decline

Indian equity markets shrugged off a ratings downgrade, a volatile first hour and an impending cyclonic storm to end higher for the fifth consecutive day.

European markets have extended opening gains while futures on the Dow Jones too are trading higher by 180 points after reversing initial losses.

The S&P BSE Sensex ended 1.57% higher at 33,825 while the NSE Nifty 50 index ended at 9,979, with gains of 1.56%. Both Sensex and Nifty ended at their highest level in nearly three months.

Both the benchmark indices have also closed above their bear market levels of 33,000 and 9,944 respectively. The indices are now less than 20% away from their all-time high made earlier this year.

Among sectoral indices, the realty index outperformed for the second straight day, ending 5% higher while the Nifty Bank and Nifty Media indices gained 3% each. The Nifty FMCG index was the only sectoral laggard, ending 0.7% lower.

Market breadth remained in favour of the advances. 1,380 stocks on the NSE ended with gains while 428 declined.

• Long-term local and foreign currency deposit rating of HDFC Bank and SBI downgraded to Baa3 from Baa2. Outlook has been maintained as negative.
• Baa3 long-term local and foreign currency deposit ratings of Bank of Baroda, Bank of India, Canara Bank and Union Bank of India under review for downgrade.
• Long-term local and foreign currency deposit rating of IndusInd Bank downgraded to Ba1 from Baa3. Outlook maintaind as negative
• Long-term local and foreign currency deposit rating of Punjab National Bank affirmed at Ba1. Outlook changed to stable from positive.

• Trades close to its lifetime high
• Gains as much as 10% to Rs 151.65
• Up for the eighth straight day
• Best winning streak on record
• Up 34% in the last eight trading sessions
• Has been locked in a 10% upper circuit for the last two trading sessions
• Today's volumes are nearly double than its 30-day average
• 3 out of the 5 analysts tracking the stock have a buy recommendation; 1 sell call
• Return potential for the stock as per Bloomberg data is 72.1%

• Trades at a lifetime high
• Gains as much as 2.9% to Rs 5,200
• Up for the seventh straight day
• Longest winning streak since November 2017
• Gains 20% in the last seven trading sessions
• Today's volumes are 59% higher than its 20-day average
• Stock trades in overbought territory with Relative Strength Index (RSI) at 75
• Has more than tripled from its 52-week low of Rs 1,560 on August 13, 2019
• All 17 analysts tracking the stock have a buy recommendation
• The stock trades 12.8% higher than its 12-month consensus price target of Rs 4,499, implying a negative return potential.

• Impact of Covid-19 would be better understood during Q2FY20
• Cargo handled during April & May was 25% lower than the previous year.
• Reduction seen across all times of cargo.
• Difficult to predict monetary impact of the pandemic.
• All the ports are functional as of now.
• There are restriction on working hours, availability of workmen and continued disruption of supply chain.
• Fully covered in terms of debt servicing for the next 12 months.
• Have invoked Force Majeure clauses of the respective contracts.

Shares gained as much as 3.4% to Rs 340.5 and are up for the second straight day.

• Benchmark indices at the day's high
• Nifty up 1.5% at 9,975
• Sensex up 1.5% at 33,810
• Nifty Bank up 2.5% at 20,453
• Nifty Midcap Index up 1.2%
• Nifty Smallcap Index up 2.2%
• India Volatility Index down 1.65% to 30.23
• Nifty FMCG Index is the only sectoral laggard; down 0.4%
• Nifty Media and Nifty Realty up 2.5% each
• Nifty I.T. Index gains 1%
• Tata Motors is the top Nifty gainer; up 7.5%
• Coal India remains the top Nifty laggard; down 3%
• 1,344 stocks on the NSE trade with gains while 406 decline

The currency ended stronger for the second straight day today after opening on a flat note, tracking positive sentiment in the equity markets.

The rupee ended at 75.36 against the U.S. Dollar, as against Monday's close of 75.54.

Four other currencies - the Indonesian Rupiah, the Malaysian Ringgit, the Thai Baht and the Singapore Dollar managed to outperform the rupee in today's session.

Yield on the 10-year government bond ended at 5.764% as compared to the opening level of 5.795%.

• Total closing AUM as of May 29, 2020 stood at Rs 3.63 lakh crore. This is against Rs 3.19 lakh crore on March 31, 2020.
• Equity-oriented closing AUM stood at Rs 1.32 lakh crore as of May 29, 2020 as compared to Rs 1.22 lakh crore on March 31, 2020.
• AUM of the Credit Risk fund moved to Rs 6,584 crore as of May 29, 2020 from Rs 13,812 crore on March 31, 2020.
• Equity oriented assets contribute 70-75% of our fee income.
• Reopened 30% of our branches as of June 1, 2020.

Shares gained as much as 1.64% to Rs 2,698 and are trading higher for the sixth straight day - its longest winning streak since September 2019.

• Bajaj Finance's 2,400 Call: Premium up 50% to Rs 95.65. The contract has shed 56,250 shares in Open Interest.
• Bharti Airtel's 600 Call: Premium up 7.8% to Rs 11.1. The contract has added 1.7 lakh shares in Open Interest.
• Kotak Mahindra Bank's 1,400 Call: Premium up 89% to Rs 26.35. The contract has added 2.27 lakh shares in Open Interest.

• Net sales seen flat at Rs 2,817 crore
• Ebitda seen 2% higher at Rs 446 crore
• Ebitda margin seen at 15.8% from 15.6%
• Net profit seen 9.5% higher at Rs 323 crore
• All estimates are Bloomberg estimates, consolidated and compared on a year-on-year basis

Key Factors At Play For Britannia:

• Volumes in biscuits, dairy may remain flat
• Gross margin may see expansion
• Lockdown across the country may impact revenue
• Likely to see stalling of expansion in distribution network
• Lower taxes may aid profit
• Commentary on demand for essentials and pent-up demand for premium goods to be watched out for
• Also crucial to watch will be commentary on distribution and logistics and expectation of manufacturing facilities coming back fully online

• Business has been severely impacted due to sales loss due to the lockdown and restriction in movement of goods.
• Activity picked up in May but remains significantly below normal.
• Expect June quarter to be significantly lower in terms of activity as compared to last year.
• Uncertain to predict impact on future period due to uncertainty on normalcy returning.
• Over 70% of the vendor partners have resumed operations.
• Sales and distribution operations have begun in green zones and other places with government guidelines.
• Have cash and cash equivalents worth Rs 585 crore as of March 31.
• Raised further Rs 300 crore via NCDs which will be used for redemption of existing Rs 170 crore NCDs due in end-June along with working capital needs.
• Well positioned to fulfill its obligations.

Shares are up for the fourth straight day, trading 2% higher at Rs 234.95.

• Revenue down 12% to Rs 15,159 crore
• Ebitda up 10.5% to Rs 1,292 crore
• Ebitda margin widens to 8.5% from 6.8%
• Net profit down 55% to Rs 183 crore
• Order book of Rs 1,07,122 crore on a group level
• No significant program delays noticed

Shares reversed losses to gain as much as 5.4% to Rs 101.80, post the announcement. The stock is up for the sixth straight day.

• Operations at all the plants has resumed
• 70% of the Showroom, Sales, Service outlets have opened for Commercial Vehicles.
• 80% of dealer workshops and Tata Authorised Service Stations have resumed operations.
• Demand is gradually starting to improve.
• Have issued commercial papers worth Rs 3,500 crore and raised Rs 1,000 crore through NCDs to further shore up liquidity.
• Gradually resuming production at JLR's Solihull and engine plants in the U.K., Slovakia and Austria.
• JLR has a strong liquidity position with cash, deposits and undrawn credit facilities.

Shares are trading near the day's high, trading 3.1% higher at Rs 92.35 per share.

European markets have opened higher for the second straight day with the Stoxx 600 index in sight of a new quarterly high.

The Stoxx 600 index has opened 1% higher led by auto and travel stocks. Telecom stocks and banks are underperforming.

Asian markets have ended with modest gains while futures on the Dow Jones are off the lows of the day but trading with declines of 70 points.

Brent crude for the August contract rose 1% to $38.78 per barrel while Gold was little changed at $1,737/Oz.

Here's a look at how benchmarks across Europe have opened:

• Euro Stoxx 50 up 1.3% at 3,118
• DAX up 2.5% at 11,872
• CAC up 0.9% at 4,805
• FTSE 100 up 0.4% at 6,192
• IBEX 35 up 0.5% at 7,252

• Operations were substantially affected.
• Q4 sales impact due to the lockdown is estimated at Rs 120 crore.
• Negative impact on sales to continue in FY21.
• Estimate FY21 sales to be around 50% of those in FY20.
• No impact on capital and financial resources of the company.
• Raised borrowing by Rs 100 crore to meet future requirements.
• No impacted on ability to service debt.
• Have sufficient cash reserves and unutilised banking lines in case of an emergency.
• Demand will remain low and will improve only once the situation normalises.

Shares are off the day's high after gaining as much as 5.1% to Rs 243. The stock is up for the fourth straight day.

Average yields on the rupee-denominated corporate bonds rose after Moody's Investor Services downgraded India's sovereign rating to Baa3 - one level above junk.

Yields on the top-rated 10-year corporate bond rose as much as 7 basis points, Bloomberg reports quoting traders. This will be the biggest jump in nearly two weeks, according to Bloomberg data.

Yields on the top-rated three-year note also rose 7 basis points, according to traders, snapping a five-session losing streak.

• Overall demand impacted due to lesser power demand and excess domestic cargo available at coal mines.
• Sales volumes will be impacted in Q1FY21 as will the margins due to excess flow of supply in the market.
• Demand for coal expected to return to normal as lockdown begins to ease.
• Lower sales volume and loss of production volumes has impacted solar manufacturing business.
• Structural reforms in coal and mining sectors will positively boost business scenario over the next year.
• Since mining is a contract business, the company does not carry any pricing risk.

Shares are off the day's high, trading little changed at Rs 150.30.

• Revenue up 30.4% to Rs 335.4 crore
• Net profit more than quadruples to Rs 42.7 crore
• Ebitda nearly triples to Rs 69.2 crore
• Ebitda margin widens to 20.6% from 9.9%
• Becomes a debt-free company. Cash of Rs 94 crore on books at the end of FY20
• Europe, U.K. business grows 23.5% in FY20
• Australia & New Zealand business grows 26.6% in FY20
• All numbers are compared on a year-on-year basis

Shares are locked in an upper circuit of 10% at Rs 26.30 and are up for the third straight day. The stock has gained 33% in the last six trading sessions.

• Benchmark indices consolidate but hold on to gains
• Nifty up 0.7% at 9,897
• Sensex up 0.7% at 33,540
• Nifty Bank up 0.6% at 20,083
• Nifty Midcap Index up 1%
• Nifty Smallcap Index up 2.1%
• India Volatility Index down 1.6% to 30.25
• Nifty Realty Index remains top sectoral gainer; up 2.6% but off the day's high
• Nifty Auto, FMCG, Metal and PSU Bank indices trade with minor losses
• Zee Entertainment is the top Nifty gainer; up 5.1%
• Coal India remains the top Nifty laggard; down 3.5%
• 1,246 stocks on the NSE trade with gains while 469 decline

The solar EPC solutions provider informed the exchanges regarding the commissioning of its maiden solar PV project in Oman.

It has become the first Indian company to commission a solar PV project in the region.

The company had received the order from Amin Renewable Energy Company, which supported by the Japanese-Omani consortium, the exchange filing said.

The project has an installed capacity of 125 MW (DC), according to the press statement.

Shares rose after the announcement and are now locked in an upper circuit of 5% at Rs 152.60.

The company reported a 35.1% decline in its revenue for the quarter, attributing the same to delay in certain regulatory approvals, unseasonal rains and the nationwide lockdown on account of Covid-19.

The net profit tripled compared to last year on account of a gain of Rs 22.2 crore realised from associates and JV companies and an other income component of Rs 30.9 crore.

Ebitda fell 27.5% while margins expanded to 13.9% from 12.4%. The company's board has also approved raising Rs 300 crore through equity.

Shares are locked in an upper circuit of 5% post the results at Rs 62.40 and are up for the third straight day.

The construction company informed the exchanges about the orders it received in the month of May on Monday evening.

The company won four orders worth Rs 1,136 crore during the month, exclusive of GST, the exchange filing said.

Out of these four orders, two orders, totaling to Rs 993 crore pertain to the water division and two worth Rs 143 crore are for the building division.

The orders were received from the state government agencies, the statement said.

Shares gained as much as 7.8% to Rs 27.60 and are up for the second straight day.

The company shared its Covid-19 update with the exchanges where it mentioned that all its solar and wind plants have been operating at full capacity through the lockdown.

The offtake too has been normal, except for a few issues in Tamil Nadu and Andhra Pradesh, the company said in its statement.

While it anticipated an increase in project costs, it mentioned that it has been receiving regular payments from discoms and counterparties and that no major overdues in receivables are pending.

Shares are locked in a 5% upper circuit at Rs 273.75 and are up for the 10th straight day. This is the longest winning streak for the stock since October 2019.

The company's step-down, wholly-owned subsidiary - Strides Pharma Global Pte. Ltd., Singapore, received the U.S. FDA approval for the Triamcinolone Acetonide Ointment from the U.S. FDA.

The said ointment is part of the niche and small volume product portfolio with limited competition in the U.S. Market, as per its exchange filing.

The ointment has a market of $15 million in the U.S., according to IQVIA data and will be manufactured at the company's Bengaluru facility.

Shares trade at the day's high, gaining as much as 5.3% to Rs 421 and are up for the third straight day.

Banking software company Temenos and HCL Technologies signed an exclusive strategic agreement for non-banking services, according to a statement from Temenos.

As per the agreement, HCL Tech will get a license to develop, market and support Temenos' multi-experience development platforms for non-banking services.

The agreement is exclusive for a period of seven years, the statement said.

Shares are recovering from the day's low to trade little changed at Rs 558.20, post the announcement.

• Nifty June futures add 8% and 8 lakh shares in Open Interest.
• Nifty Bank June futures add 21.3% and 3.1 lakh shares in Open Interest.

Nifty: June 4 Expiry

• 10,000 Call: Premium down 21.1% to Rs 34.2. The contract has added 4.1 lakh shares in Open Interest.
• 9,900 Call: Premium down 15.8% to Rs 60.1. The contract has added 6.96 lakh shares in Open Interest.
• 9,800 Put: Premium down 15.2% to Rs 98.1. The contract has added 10.7 lakh shares in Open Interest.

Nifty Bank: June 4 Expiry

• 20,500 Call: Premium down 19.5% to Rs 149.8. The contract has added 1.92 lakh shares in Open Interest.
• 21,000 Call: Premium down 36.2% to Rs 59.5. The contract has added 2.6 lakh shares in Open Interest.
• 19,500 Put: Premium down 10.4% to Rs 212.9. The contract has added 2.75 lakh shares in Open Interest.

The power distribution company acquired 51% equity stake in TP Central Odisha Distribution for a consideration of Rs 178.5 crore.

The other 49% stake in the company will be held by the government of Odisha. The company will now manage power distribution in Central Odisha.

With this acquisition, Tata Power now takes over the management of Central Electricity Supply Utility of Odisha (CESU). It has mentioned in its press release that all the employees of CESU will be retained and governed under the current structure.

Shares gained as much as 7.1% to Rs 42.25 before cooling off. The stock currently trades 3.4% higher at Rs 40.8.

• Benchmark indices near day's high after initial volatility
• Nifty up 0.7% at 9,893
• Sensex up 0.7% at 33,527
• Nifty Bank up 1% at 20,148
• Nifty Midcap Index up 0.9%
• Nifty Smallcap Index up 1.8%
• India Volatility Index down 0.8% at 30.50
• Nifty Realty index is the top sectoral gainer; up 3.4%
• Nifty Pharma and Nifty Media gain over 2%
• Other indices trade with marginal gains
• Kotak Mahindra Bank is the top Nifty gainer; up 6.4%
• Coal India is the top Nifty laggard; down 2.7%

The rupee opened flat in today's session despite positive cues from the equity markets. A downgrade of India’s sovereign rating by Moody’s Investor Services may keep sentiment in check.

The currency opened at 75.55 against the U.S. Dollar as compared to Monday's close of 75.54.

Yield on the 10-year government bond fell on Monday amid concerns of heavy government supply.

The RBI has continued to buy foreign currency assets in recent weeks absorbing an increase in the foreign direct investment inflows and countering upward pressure on the rupee, according to Bloomberg Economics.

Hero MotoCorp

• Total sales at 1,12,682 units
• Domestic sales at 1,08,848 units
• Exports at 3,834 units

Ashok Leyland

• Total sales at 1,420 units
• M&HCV Truck sales at 266 units
• M&HCV Bus sales at 0
• LCV sales at 1,154 units

Eicher Motors

• Total Royal Enfield sales at 19,113 units
• Total VECV sales at 686 units
• Models up to 350 cc sale at 17,543 units
• Models above 350 cc sale at 1,570 units

• Shares of Eicher Motors up for the sixth straight day, gaining as much as 2.7% to Rs 17,450. This is the longest winning streak for the stock since October 2019.
• Shares of Hero MotoCorp gained as much as 2.8% to Rs 2,391.
• Shares of Ashok Leyland Gained as much as 2% to Rs 47.3 and are up for the second straight day.

The state-run miner reported its production and offtake figures for the month of May on Monday.

Production for the company declined 11.3% compared to last year to 41.43 Million Tonnes.

Offtake on the other hand declined 23.3% to 39.95 million tonnes as compared to 52.1 million tonnes during the same period last year.

Shares fell as much as 2.6% to Rs 144.75. The stock is the top laggard on the Nifty 50 index.

Shares of the Murugappa Group company, manufacturing fertilisers and pesticides fell after 58.6 lakh shares, exchanged hands in a large trade, according to Bloomberg data.

Buyers and sellers of the trade remain unknown.

Shares fell as much as 5.3% to Rs 616 before a marginal recovery. The stock remains 3% lower.

• Overall sales for the month stood at 1,27,128 units
• Domestic two-wheeler sales at 39,286 units
• Two-wheeler exports at 73,512 units
• Domestic CV sales at 788 units
• CV Exports at 13,542 units
• Overall domestic sales at 40,074 units
• Overall exports at 87,054 units

Shares are trading at the lowest point of the day, down 1% at Rs 2,759. The stock has snapped a five-day gaining streak.

5.6 crore shares of the Mumbai-based private lender exchanged hands in a single large deal on the Bombay Stock Exchange. The deal took place at Rs 1,240 per share, as per the term sheet accessed by Bloomberg.

Founder & CEO Uday Kotak had planned to sell 2.9% of his stake in order to comply with RBI's norms of bringing his shareholding down to 26% by August 2020.

The share sale was planned between Rs 1,215 - Rs 1,240 per share, implying a 0.7-2.7% discount to Monday's closing price.

Shares gained as much as 10.1% to Rs 1,374 before cooling off. The stock is the top performer on the Nifty 50 index.

Indian equity markets opened higher for the fifth straight day despite a sovereign ratings downgrade by Moody's Investors Services and mixed cues from across the globe.

The S&P BSE Sensex opened 0.44% higher at 33,450 while the NSE Nifty 50 opened with gains of 0.6% at 9,880. The five-day winning streak was the longest for both benchmarks since November 2019.

All sectoral indices opened with gains which are modest. The Nifty Bank, Media and Metal indices opened 0.8% higher while the others saw marginal gains.

• Global cases now cross 6.26 million
• Death toll rises to 3.75 lakh
• New cluster of cases emerging in Hong Kong
• Singapore's new cases outside of migrant-worker dormitories dropped to zero
• Gilead's Remdesivir showed only limited benefit in a large trial
• South Korea reports 38 new virus cases and one death
• Mexico reports 2,771 new cases, taking the total cases near the 1 lakh mark
• India adds 8,171 new cases, 3,708 recoveries and 204 deaths in the last 24 hours. The total number of cases in India now stand at 1,98,706.

• Kotak Mahindra Bank: Founder and CEO Uday Kotak plans to sell 5.6 crore shares or 2.83% equity through a 100% secondary placement. The price range is between Rs 1,215 - 1,240 per share, implying a 0.7-2.7% discount to Monday's closing price. Objective for the share sale is to bring Kotak's stake in the lender down to 26% by August, 2020 - in-line with the Reserve Bank's regulation.
• MOIL: Prices of different grades of Manganese Ore and other products reduced by 10% from June 1 as compared to the previous month.
• NMDC: Sale of iron ore in May fell 24% to 2.55 million tons, while production declined 25% to 2.29 million tons.
• Coal India: Production in May fell 11.3% to 41.43 million tons, while offtake declined 23.3% to 39.35 million tons.
• Tata Power: Acquired 51% stake in TP Central Odisha Distribution for Rs 178.5 crore. Government of Odisha will hold the remaining stake in the venture. Company will manage power distribution in central Odisha from June 1.
• SBI Cards: 11.8% customers are in moratorium as of May 22. Corporate card spends have seen a moderate recovery with partial resumption of domestic air travel.
• NCC: Gets four new orders worth Rs 1,136 crore in May.
• Welspun Enterprises: Board approved raising Rs 300 crore via equity and increasing share capital from Rs 180.05 crore to Rs 275 crore. Balkrishna Goenka re-appointed as Executive Chairman till June 2025. Post April 14, work has resumed on all projects. Company has written to authorities invoking Force Majeure which ensures interest of the company is protected under concession agreement.
• Non-Nifty Earnings Today: Granules India, InterGlobe Aviation, Motherson Sumi, Spandana Sphoorty Financial, Sun Pharma Advanced Research Company.

To know more about companies sharing their Covid-19 updates and for earnings reported after market hours on Monday, click here.

• Benchmark indices post modest gains as investors shrugged off violence against police brutality over economic recovery.
• S&P 500 ended 0.4% higher while the Nasdaq outperformed.
• A gauge of U.S. manufacturing rose in May for the first time in four months.
• Over 40 million Americans have filed for unemployment benefits.
• Goldman Sachs in a note said the U.S. labour market is showing the earliest signs of rebounding.
• The Bloomberg Dollar Spot index fell 0.7%. It now trades flat.
• West Texas Intermediate crude ended little changed at $35.59 per barrel.

Catch all the live action from the global markets here.

Good Morning!

Indian equity market posted its longest winning streak in a month after gaining for the fourth straight day on Monday. A ratings downgrade by Moody’s, coupled with a host of mid-cap earnings, will be in focus for Tuesday’s session.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.3% at 9,808 as of 8:00 a.m.

Asian markets continue to trade mixed this morning. Markets in Japan are outperforming, while those in South Korea and Australia are muted.

Futures on the Dow Jones trade lower by 150 points after President Donald Trump promised to deploy large number of troops if cities and states don’t act to contain violence over police brutality.

The U.S. dollar, treasuries and oil prices remained flat in early trade.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.