Selling Across The Board As Nifty, Sensex End 2% Lower

• Benchmark indices end near the lowest point of the day
• Nifty ends 2.1% lower at 9,902
• Sensex ends 2.07% lower at 33,538
• Nifty Bank ends 2.72% lower at 20,525
• Nifty Midcap Index ends 1.3% lower
• Nifty Smallcap Index ends 0.8% lower
• India Volatility Index ends 1% higher at 29.72
• All sectoral indices end with losses
• Nifty PSU Bank ends as top sectoral laggard; down 3.9%
• IndusInd Bank ends as the top Nifty gainer; up 4.3%
• Bharti Infratel ends as the top Nifty laggard; down 8.9%
• 668 stocks on the NSE end with gains while 1,134 end with losses

Indian equity markets were not insulated from the sell-off in global equities as benchmark indices posted their biggest single-day drop in three weeks.

Both the S&P BSE Sensex and the NSE Nifty 50 index ended 2.1% lower at 33,538 and 9,902 respectively. Benchmark indices have fallen back into the bear market territory after a rally that took them to within 18% of their all-time high levels.

All sectoral indices ended with losses led by the Nifty PSU Bank index that ended with cuts of nearly 4%. The Nifty Bank index finished 2.7% lower.

Among other sectoral indices, Nifty Auto, Nifty Metal, Nifty Pharma and Nifty Realty ended over 2% lower while the Nifty FMCG and the Nifty I.T. ended 1.3-1.5% lower.

Market breadth turned adverse towards the second half of the trading day. 668 stocks on the NSE ended with gains while 1,134 posted losses.

• Second worst performer on the Nifty 50 index
• Falls as much as 7.7% to Rs 175.1
• Down for the fourth straight day
• Longest losing streak in over two months
• Down 14.7% in the last four sessions
• Today's volumes are 0.8 times higher than its 30-day average
• Breaks below its 100-Day Moving Average at 194
• 14 out of the 28 analysts tracking the stock have a buy recommendation; 5 sell calls
• Return potential for the stock as per Bloomberg data is 8.7%

• IndusInd Bank's 600 Call: Premium up 29.2% to Rs 23.45. The contract has added 2.83 lakh shares in Open Interest.
• Bharti Airtel's 600 Call: Premium falls 28% to Rs 8.2. The contract has added 8.1 lakh shares in Open Interest.
• State Bank of India's 200 Call: Premium down 40.6% to Rs 3.15. The contract has added 29.8 lakh shares in Open Interest.

• Benchmark indices fall to the day's low
• Nifty, Sensex back into bear market territory
• Nifty down 2% to 9,913
• Sensex down 2% to 33,566
• Nifty Bank down 2.8% to 20,527
• Nifty Midcap Index down 1.4%
• Nifty Smallcap Index down 1%
• India Volatility Index up 1% to 29.7
• Nifty PSU Bank Index is the top sectoral laggard; down 3.5%
• Nifty I.T., Nifty Media and Nifty Realty fall between 1.5-2%
• Nifty Pharma and Nifty Metal decline over 2% each
• IndusInd Bank remains the top Nifty gainer; up 5.2%
• Bharti Infratel is the top Nifty laggard; down 7%
• 646 stocks on the NSE trade with gains while 1,126 decline

The currency ended with losses in today's trading session after remaining rangebound in the first three days of the week.

The rupee ended at 75.78 against the U.S. Dollar as compared to Wednesday's close of 75.59. It made a marginal recovery from the day's low of of 75.88.

Four Emerging Market currencies underperformed the rupee including the Singapore Dollar, Indonesian Rupiah, South Korean Won and the Philippine Peso.

Yield on the 10-year government bond ended at 5.783% as compared to its opening level of 5.756%.

• Trades at an all-time high
• Gains as much as 8.3% to Rs 424.35
• Biggest single-day gain in a month
• Up for the third straight day
• Gains 10% in the last three trading sessions
• Today's volumes are 2.3 times higher than its 30-day average
• Stock trades in overbought territory with Relative Strength Index (RSI) at 72
• Has more than doubled from its 52-week low of Rs 146.3 on March 25, 2020

The trend in the first 10 days of June is 'extremely weak' in terms of consumer sentiment for automobile purchases, according to the Federation of Automobile Dealers Association (FADA).

Bloomberg News reports that retail car and SUV registrations in May fell 87% compared to last year, while that of trucks and buses fell 97%.

Total sales for the month of June are seen lower by 25%.

The dealers association also said that thousands of jobs and the survival of many dealers would be at stake if demand continues to decline as projected.

The Nifty Auto index trades little changed in today’s session.

Executive Committee of the Central Board of India's largest lender has approved long-term fund raising up to $1.5 billion during FY21.

The fund raising will be done in single or multiple tranches through a public offer or private placement of senior unsecured notes in U.S. Dollar or any other convertible currency.

Shares fell as much as 2.5% to Rs 183, post the announcement.

Markets in Europe have opened gap down after comments from the U.S. Federal Reserve dampened spirits of a V-shaped economic recovery from Covid-19.

The Stoxx 600 has opened 2.4% lower with all sectors opening with losses. Banks, autos and travel are the leading underperformers.

Most Asian markets have ended lower while futures on the Dow Jones are at the lowest point of the day, down 550 points.

Brent crude for the August contract is down 3.5% to $40.25 per barrel while gold is little changed at $1,734.99/Oz.

Let's take a look at how benchmark indices across Europe have opened:

• Euro Stoxx 50 down 2.4% at 3,214
• DAX down 2.6% at 12,209
• FTSE 100 down 2.3% at 6,180
• IBEX 35 down 2.8% at 7,444

Bloomberg News reported on Wednesday that Apollo Global Management is looking to start its own credit investment business in India, thereby planning to end its joint venture with ICICI Bank.

The JV, Aion Capital Partners currently has assets under management worth $660 million. Apollo has informed the lender of its intention to stop putting new money into Aion and exit the existing investments gradually over the next few years.

Aion was founded as a strategic partnership between Apollo Global and ICICI in 2011.

Shares fell as much as 3% to Rs 342.6 and is among the top laggards on the Nifty 50 index.

• Trades at the highest level since October 2018
• Gains as much as 2.5% to Rs 378.25
• Up for the third straight day
• Has gained in 9 out of the last 11 trading sessions
• Up close to 10% in the last 11 trading sessions
• Today's volumes are 34% above the 20-day average
• Has nearly doubled from its 52-week low of Rs 202 on March 13, 2020
• 19 out of the 40 analysts tracking the stock have a buy recommendation; 8 sell calls
• The stock trades 12.1% above its 12-month consensus price target of Rs 326, implying a negative return potential

The Board of Directors of the lender at its board meeting held today has approved raising of funds up to Rs 500 crore.

The funds will be raised by issue of equity shares or other securities convertible into equity shares through a QIP as needed from time to time.

The fund raising will subject to necessary shareholder and regulatory approvals.

The stock trades 3.6% higher at Rs 76.05 and is up for the fifth straight day. The stock is up for the ninth out of the last 10 trading sessions.

• Benchmark indices trade near the day's low
• Nifty down 0.85% at 10,030
• Sensex down 0.87% at 33,947
• Nifty Bank down 0.9% at 20,911
• Nifty Midcap Index up 0.4%
• Nifty Smallcap Index up 0.6%
• India Volatility Index up 0.9% to 29.69
• Nifty Media Index remains the top sectoral gainer; up 1.7%
• Nifty Pharma is the top sectoral laggard; down 1%
• IndusInd Bank remains the top Nifty gainer; up 9%
• Sun Pharma is the top Nifty laggard; down 3.6%
• 970 stocks on the NSE trade with gains while 749 decline

Fidelity International pared its overweight position on Indian equities, offloading what it called 'low quality companies.'

The asset manager as defined 'low quality' companies as those with regulatory risk, capped profit margins and corporate governance issues like the treatment of minority shareholders, according to the firms investment director, Medha Samant.

Managing $480 billion in assets, Fidelity boosted its North Asia portfolio, buying shares of sportswear companies in China and firms in Macau.

The company reported a 16.3% decline in its revenue for the quarter ending March while net profit fell 32.1%.

Higher raw material costs, employee and other expenses dragged margins down to 9.5% from 23.6% in the same period last year.

The fall in net profit was cushioned by a deferred tax reversal of Rs 73.7 crore.

While revenue for the textile segment grew 5%, that for Pulp and Paper segment fell 13% year-on-year.

The company reported a 4.4% decline in its sales volume for the quarter.

Shares fell as much as 5.2% to Rs 298.3.

• Top gainer on the Nifty I.T. index which is the top sectoral laggard
• Gains as much as 6.6% to Rs 943
• Up for the third straight day
• Trades at the highest level in three months
• Has gained in nine out of the last 11 trading sessions
• Up 23% in the last 11 trading sessions
• Today's volumes are 8.8 times higher than its 30-day average
• Stock trades in overbought territory with Relative Strength Index (RSI) at 76
• Has gained 84% from its 52-week low of Rs 499 on March 25, 2020
• Four out of the Seven analysts tracking the stock have a buy recommendation; two sell calls
• The stock trades 14.1% above its 12-month consensus price target of Rs 788, implying a negative return potential

The building products company reported a 7.1 times increase in its net profit as compared to the same period last year.

A 14% volume growth aided the company's 11.6% growth in revenue as well as the expansion in margins to 4.1% from 2.6% last year. Margins were also aided by lower raw material costs.

Revenue from the retail segment rose 4% to Rs 365.1 crore while that from the Channel and Enterprise segment rose 23% to Rs 302.2 crore.

Shares are locked in an upper circuit of 20% at Rs 364.35. This is the biggest one-day jump seen by the stock since April 2017. It is also trading at a three-month high.

36.9 lakh shares of the private lender exchanged hands in two large deals on the Bombay Stock Exchange, according to Bloomberg data.

The first trade saw 24.94 lakh shares being exchanged while 12 lakh shares were exchanged in the second large trade.

Buyers and sellers in the trade remain unknown, according to Bloomberg data.

Shares fluctuate between gains and losses, currently trading little changed at Rs 49.75 per share. Until Wednesday, the stock had a four-day gaining streak.

• Nifty June futures add 7.7% and 8.1 lakh shares in Open Interest.
• Nifty Bank June futures add 9.5% and 1.61 lakh shares in Open Interest.

Nifty: Today's Expiry

• 10,100 Call: Premium down 56.5% to Rs 31.7. The contract has added 26.53 lakh shares in Open Interest.
• 10,000 Put: Premium down 42% to Rs 16.3. The contract has added 18.47 lakh shares in Open Interest.
• 10,200 Call: Premium down 80.1% to Rs 6.45. The contract has added 23.81 lakh shares in Open Interest.

Nifty Bank: Today's Expiry

• 21,500 Call: Premium down 56.4% to Rs 51.6. The contract has added 7.8 lakh shares in Open Interest.
• 20,500 Put: Premium down 67.3% to Rs 28.8. The contract has added 7.52 lakh shares in Open Interest.
• 22,000 Call: Premium falls 86.3% to Rs 4.4. The contract has added 12 lakh shares in Open Interest.

The city-gas distributor reported a 25% increase in its profitability for the quarter ending March while revenue saw a decline of 5% compared to the previous year.

Adopting to the new taxation regime aided the company's operating performance with Ebitda rising 14% while margins expanded to 32.4% from 27% during the same period last year.

Overall volume growth for the company declined 9.7% as compared to the previous quarter.

The company has recommended a final dividend of Rs 10.5 per share and a special dividend of Rs 15 per equity share having a face value of Rs 10.

Shares are trading near the day's high, gaining as much as 4.7% to Rs 1,039.7.

• Benchmark indices recover from the day's low
• Nifty down 0.3% at 10,088
• Sensex down 0.34% at 34,121
• Nifty Bank up 0.22% at 21,144
• Nifty Midcap Index up 0.9%
• Nifty Smallcap Index up 1.1%
• India Volatility Index is little changed at 29.43
• Nifty I.T. Index is the top sectoral laggard; down 0.65%
• Nifty Pharma is the other sectoral laggard; down 0.3%
• Nifty Media Index is top sectoral gainer; up 2.33%
• Nifty PSU Bank Index is the other sectoral gainer; up 1.6%
• IndusInd Bank is the top Nifty gainer; up 7.1%
• Bharti Infratel is the top Nifty laggard; down 2.1%
• 1,114 stocks on the NSE trade with gains while 541 stocks decline

• All manufacturing units are functional.
• Challenges like low attendence of staff, supply chain disruption, significantly high raw material and freight costs are impacting business.
• Unable to assess the exact impact on the business but continue to assess the situation on an ongoing basis.
• Debt-free and carry cash and cash equivalents which can meet requirements for the next few quarters.

Shares are recovering from the day's low after falling as much as 1.5% in early trade. As of close on Wednesday, the stock had a five-day gaining streak.

The currency opened with losses in today's trading session, after being rangebound through the first three days of the week.

The rupee opened at 75.80 against the U.S. Dollar as compared to Wednesday's close of 75.59.

The currency has traded in a narrow range until Wednesday, with a weekly high of 75.41 and a low of 75.64 on Monday.

The rupee had given up most of its intraday gain on Wednesday to end little changed. It was also the third worst performer among the Asian peers after the Indonesian Rupiah and the Thai Baht.

Yield on the 10-year government bond opened at 5.756% as compared to Wednesday's close of 5.776%.

The tower company informed the exchanges that the board meeting that was supposed to be held today, has been rescheduled.

The meeting was supposed to consider the scheme of arrangement between the company and Indus Towers.

The exchange statement said that certain inputs which were necessary to delibrate and take a final decision have been delayed due to the current environment.

It has also stated that the rescheduled board will now take place on or before the current long stop date of June 24, 2020.

Shares fell as much as 3.1% to Rs 225.45. The stock has declined in seven out of the last 10 trading sessions.

• Among the top performers on the Nifty 500 Index
• Gains as much as 8.4% to Rs 72.50
• Biggest single-day jump in two months
• Trades at the highest level in three months
• Has gained in 10 out of the last 11 trading sessions
• Up 33% in the last 11 trading session
• Today's volumes are 60.8 times higher than its 30-day average
• Enters overbought territory with Relative Strength Index (RSI) at 72
• Has gained 69% from its 52-week low of Rs 43 on March 25, 2020
• Four out of the six analysts tracking the stock have a buy recommendation; 0 sell calls
• The stock trades 2.8% higher than its 12-month consensus target, implying a negative return potential

Bloomberg News reported on Wednesday, citing report from the Dow Jones that Attorney General Josh Stein has filed a lawsuit against 26 generic drug manufacturers and 10 individuals in the U.S.

The multistate lawsuit alleges a conspiracy by generic manufacturers to fix the prices for 80 drugs.

The lawsuit names companies like Sandoz, Mallinckdrodt, Mylan, Pfizer, Taro among others.

Shares fell as much as 3.64% to Rs 481 and are down for the second straight day. The stock is also the worst performer on the Nifty 50 index.

Indian equity markets opened with a negative bias on the weekly options expiry day as global markets are witnessing a pullback post a strong rally.

The S&P BSE Sensex opened 0.1% lower at 34,214 while the NSE Nifty 50 opened below the 10,100 mark at 10,094, down 0.22%.

Both benchmark indices nearly recouped all of Tuesday's 1.2% decline, before ending marginally off the highest point of the day.

Most sectoral indices have opened flat with the Nifty Metal and Nifty Pharma indices opening with cuts of half-a-percent each.

Market breadth was even on open. 746 stocks on the NSE opened with gains while 753 declined as trading began.

• Total global cases cross 7.3 million
• Death toll rises to 4.13 lakh
• Second wave emerges in the U.S. as states reopen
• Protestor in Australia tests positive after attending rally
• China reports 11 new imported Covid-19 cases
• Tokyo mulls easing restrictions
• Texas reports biggest ever one-day jump with 2,504 new cases
• Tokyo Olympics Organising Committee to scale back 2021 games

• ICICI Bank: Bloomberg News reports that Apollo global management is seeking to start its own credit investment business in India. The U.S.-based Alternative Asset Manager plans to end a joint venture with the bank. It plans to stop putting new money into Aion Capital Partners and exit the investment over the next few years. Apollo Global has informed the bank of its intentions. Aion has assets under management of $660 million of March 31 and offered a net internal rate of return of 5%.
• Pharma Stocks: Bloomberg News reports that a coalition of 51 attorney generals in the U.S. filed an antitrust complaint in the federal court alleging that key individual executives and manufacturers of dermatological, generic drugs engaged in a widespread conspiracy to artificially inflate and manipulate prices, reduce competition for generic drugs sold across the country. The complain mentions Taro, Myla, Teva, Glenmark etc.
• UPL: The company’s Mauritius arm has raised $500 million via unsecured notes. The issuance does not result in any increase of in net debt of the company.
• Oil India: Two employees died due to a blowout well catching fire on June 9. Currently fire tenders are trying to reduce the fire outbreak.
• Telecom Stocks: Bloomberg News reports that Supreme Court to heat telecom dues case on June 11.
• Max India: WF Asian Reconnaissance Fund increased stake from 7.46% to 9.71% on June 8.
• Welspun Enterprises: Received endorsement agreement from NHAI for Haryana road project. Process of takeover of 8 laning in NH-1 has been completed.
• Satin Creditcare Network: To consider raising Rs 5,000 crore via NCDs on June 15.
• Non-Nifty Earnings Today: Westlife Development, Dixon Technologies, Sundram Fasteners, EID Parry, IIFL Wealth, Redington India, KNR Constructions, Take Solutions.

To know more about earnings reported after market hours, companies with Covid-19 updates and other trading cues, click here.

• Benchmark indices end mixed post Fed policy
• Dow Jones, S&P 500 ended with losses
• Nasdaq ended at a record high
• Fed chair Jerome Powell says the pandemic can inflict a longer-lasting damage on the economy.
• The Fed said it will maintain its current rate of bond purchases.
• Bloomberg Dollar Spot Index fell 0.6%
• Yield on the 10-year treasury fell nine basis points to 0.72%
• West Texas Intermediate crude ended little changed at $38.99 per barrel. The commodity trades lower in today's session.

Catch all the live action from the global markets here.

Good Morning!

Indian equity markets pared most of Tuesday’s losses on Wednesday. Global cues at the start of trade, however, are weak, after the U.S. Federal Reserve projected a long road ahead to recover from the economic damage caused due to the Covid-19.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 10,101 as of 8:05 a.m.

Asian markets declined with benchmarks in Japan and Australia falling over 1%. Markets in China and Hong Kong, too, have declined, while those in South Korea are flat.

Futures on the Dow Jones are trading lower by 150 points after the benchmark gauge ended 1% lower on Wednesday.

Treasuries are holding on to gains, while oil prices are declining.

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