Sensex, Nifty End 1.5% Lower; Record High For RIL

• Benchmark indices end with losses despite brief recovery from day's low
• Nifty ends 1.6% lower at 9,813
• Sensex ends 1.63% lower at 33,228
• Nifty Bank ends 3.6% lower at 19,912
• Nifty Midcap Index ends 1.2% lower
• Nifty Smallcap Index ends 0.4% higher
• India Volatility Index ends 6.1% higher at 32.71
• Nifty PSU Bank (up 1.44%) and Nifty Media (up 0.87%) were the only sectoral gainers
• Nifty Auto, FMCG and Metal index end between 1.5-2% lower
• Nifty Realty index ends 3% lower
• GAIL ends as the top Nifty gainer; up 3.7%
• IndusInd Bank ends as the top Nifty laggard; down 7.2%
• 877 stocks on the NSE end with gains while 948 decline

Indian equity markets mirrored the sell-off across global equities as investors remain concerned over a second wave of Covid-19 infections.

Despite a brief recovery in the final hour of trade, benchmark indices ended with losses of over 1.5%.

The S&P BSE Sensex ended 1.63% lower at 33,228. The index managed to recover 300 points from the day's low of 32,923.

The NSE Nifty 50 index too ended with losses of 1.6% at 9,813, gaining almost 90 points from the day's low of 9,726.

Among the sectoral indices, private banks dragged the Nifty Bank lower and the index ended with losses of 3.5%. Nifty Realty was the other sectoral index which ended with losses of 3%.

Nifty Auto, FMCG and Metals index ended with losses between 1.5-2%.

Market breadth turned adverse towards the close of trade. 877 stocks on the NSE ended with gains while 948 declined.

India's Oil Minister Dharmendra Pradhan said that India's is moving to a market-driven pricing for natural gas and such a transition can be aided by a gas exchange.

The minister also said that the government is working on a new policy on gas pipeline tariff to rationalise rates on gas networks.

India's biggest gas utility - GAIL India is likely to be split into two divisions with one division focusing on gas transportation.

The company's Kochi-Mangaluru re-gasified LNG pipeline will be commissioned in a few days.

Source: Bloomberg

GAIL is the top gainer on the Nifty 50 index, trading with gains of over 3% at Rs 99.35.

• Net loss of Rs 59.68 crore from net profit of Rs 28.14 crore
• Net Interest Income flat at Rs 389 crore
• Provisions rise to Rs 84.32 crore from Rs 27.61 crore
• Gross NPA at 3.54% from 3.22%

Shares gained as much as 6.5% to Rs 143.65, post the announcement.

• Revenue seen 29% lower at Rs 61,353 crore
• Likely to report net loss of Rs 1,466 crore from net profit of Rs 1,117 crore
• Ebitda seen 49% lower at Rs 4,283 crore
• Ebitda margin seen lower at 7% from 9.8%
• All estimates are consolidated and compared on a year-on-year basis

Key Factors At Play For Tata Motors:

• 47% volume decline in the fourth quarter to impact revenue
• JLR retail sales fell 31% in the fourth quarter
• Inventory pile up due to Covid-19 lockdown to impact margins
• Higher expenses to impact net profit

• Top performer on the Nifty Smallcap Index
• Gains as much as 12% to Rs 70.85
• Biggest single-day gain in two months
• Snaps two-day losing streak
• Trades at the highest level in six weeks
• Today's volumes are 2.6 times higher than its 30-day average
• Breaks above its 50-Day Moving Average at 65
• Has gained over 50% from its 52-week low of Rs 45.6 on March 25, 2020
• Nine out of the 14 analysts tracking the stock have a buy recommendation; one sell call
• Return potential for the stock as per Bloomberg data is 66.9%

The company's wholly-owned subsidiary Tata Power Renewable Energy has received a Letter of Award from the Gujarat Urja Vikas Nigam to develop a 120 MW solar project in Gujarat.

The energy will be supplied under a Power Purchase Agreement (PPA) for a period of 25 years from the scheduled commercial operation date.

The project is to be commissioned within 18 months from the date of execution of the PPA, the company said in a statement.

The order win now takes the company's renewable capacity to 3,457 MW, out of which 2,637 MW is operational, according to its MD & CEO Praveer Sinha.

Shares trade 1.8% higher at Rs 42.45 and are up for the second straight day.

• Benchmark indices recover from day's low
• Nifty down 1% at 9,864
• Sensex down 1.1% at 33,383
• Nifty Bank down 2.75% at 20,086
• Nifty Midcap Index down 0.5%
• Nifty Smallcap Index up 0.6%
• India Volatility Index up 5.8% to 32.62
• Nifty I.T and Nifty PSU Bank pare losses to trade with gains
• Nifty PSU Bank gains 1.7%
• Nifty FMCG, Auto and Realty indices continue to trade with losses
• GAIL is the top Nifty gainer; up 3.6%
• IndusInd Bank remains the top Nifty laggard; down 4.8%
• 947 stocks on the NSE trade with gains while 860 decline

The currency ended with losses in today's session tracking weakness in the equity markets and strength in the U.S. dollar.

The rupee ended at 76.03 against the green back, as compared to Friday's close of 75.84. It made an intraday low of 76.15.

The currency ended above the mark of 76 for the first time since April 28 this year.

The rupee was also the fourth worst performing Asian currency in today's trading session, behind the Malaysian Ringgit, Philippine Peso and the South Korean Won.

The lender has informed the exchanges that it has received preliminary, non-binding Letter of Intent (LoI) from Clix Capital and Clix Finance India.

The Board of Directors of the bank has considered this proposal for further processing, according to the bank's exchange filing.

The non-binding LoI is subject to completion of due diligence and that the bank routinely evaluates capital raising options, according to its statement.

Shares are locked in an upper circuit of 5% at Rs 15.3, post the announcement.

• Reliance Industries' 1,600 Call: Premium up 2.24% to Rs 45.6. The contract has added 8.7 lakh shares in Open Interest.
• State Bank of India's 200 Call: Premium down 31.5% to Rs 1.85. The contract has added 11.64 lakh shares in Open Interest.
• IndusInd Bank's 500 Call: Premium down 33.9% to Rs 38.45. The contract has added 2.42 lakh shares in Open Interest.

• Among the top laggards on the Nifty 50 index
• Falls as much as 6% to Rs 383.65
• Biggest single-day fall in a month
• Down for the third straight day
• Longest losing streak in a month
• Declines 9.2% in the last three trading sessions
• Today's volumes are 0.9 times higher than its 30-day average
• Breaks below its 50-Day Moving Average of 399
• 44 out of the 57 analysts tracking the stock have a buy recommendation; 1 sell call
• Return potential for the stock as per Bloomberg data is 40%

• Saw a drop in sales volumes in Q4FY20.
• Drop in sales volumes to be accentuated in FY21.
• Plants are presently operating at around 50% capacity
• Making efforts to establish supply chain impacted due to the pandemic.
• Cannot gauge the impact on future operations with certainty.
• Comfortable liquidity position to meet its commitments.
• Not availed any moratorium for repayment of loans.
• Do not foresee any major challenge or incremental risk in realising / recovering its assets.

Shares gained as much as 12% to Rs 25.70, post the announcement.

European markets continue to decline to erase their gains for the month. Concerns are rife over a second wave of Covid-19 infections in many parts of the world.

The Stoxx 600 has opened over 2% lower, dragged by miners and auto companies. All sectors of the index have opened with losses.

Asian markets have ended with losses while futures on the Dow Jones are down over 830 points.

Brent Crude for the August contract is down 3% to $37.59 per barrel. Gold trades 0.6% lower at $1,721/Oz.

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

• Euro Stoxx 50 down 2.3% at 3,079
• DAX down 2.6% at 11,641
• CAC down 2.4% at 4,717
• FTSE 100 down 2.1% at 5,973
• IBEX 35 down 2.7% at 7,099

Two other large trades have taken place on the state-run oil refiner after one earlier in the session.

The second large trade saw 36.4 lakh shares exchange hands while the 13.7 lakh shares exchanged hands in the third one.

51.1 lakh shares had earlier exchanged hands in a single large trade in today's session.

Shares are 1.5% lower at Rs 86.95 per share, near the lowest point of the day.

One of the drugmaker's wholly-owned subsidiary has announced that it has entered into an exclusive licensing and distribution agreement with Hikma Pharmaceuticals for ILUMYA, for the middle east and north Africa region.

The said drug is used in the treatment of adults with moderate-to-severe plaque psoriasis.

Hikma will be responsible for registration and commercialisation of the product in all middle east and north Africa markets while Sun Pharma will be responsible for the product supply, as per the agreement.

Sun Pharma is eligible for upfront and milestone payments from Hikma. The term for this agreement is 15 years from the first sale, according to the company.

Shares are trading little changed at Rs 478.50 per share.

India's wholesale prices fell more than estimate in the month of May. Prices fell 3.21% in May as compared to an estimate of a decline of 1.2%.

A Bloomberg survey of 16 economists projected a range between -2 to 0.17%.

Prices of primary articles fell 2.92% compared to last year.

Power, fuel and lighting prices fell 19.8% compared to last year.

Manufactured product prices fell 0.42% while wholesale food prices rose 1.13% compared to the previous year.

WPI for the month of March has been revised to 0.42% from 1%.

Tyre stocks are trading with gains in today's session after Bloomberg News reported of India restricting imports of certain types of tyres.

Import policy of pneumatic tyres has been amended to 'restricted' category from the 'free' category, according to a statement issued by India's Directorate General of Foreign Trade.

Import rules have been changed for tyres used by cars, buses, lorries, motor cycles and bicycles.

• Shares of JK Tyre gained as much as 10% before cooling off, snapping a four-day losing streak.
• Shares of CEAT gained as much as 5% to Rs 970.
• Shares of Apollo Tyres gained as much as 5.6% to Rs 112.60.
• Shares of MRF are little changed at Rs 63,813.

• Benchmark indices extend losses; near the day's low
• Nifty down 2.2% to 9,750
• Sensex down 2.3% to 33,017
• Nifty Bank down 3.9% to 19,855
• Nifty Midcap Index down 0.8%
• Nifty Smallcap Index up 0.2%
• India Volatility Index up 8% to 33.28
• Nifty Media Index is the only sectoral gainer; up 1%
• Nifty Metal and Nifty Realty Index fall over 2%
• Nifty Auto, Nifty FMCG and Nifty PSU Bank fall over 1.5% each
• Zee Entertainment remains the top Nifty gainer; up 1.5%
• IndusInd Bank is the top Nifty laggard; down 5.6%
• 817 stocks on the NSE trade with gains while 923 decline

• Resumes operations smoothly in most parts of the country across 10 plants, 13 offices and display centers.
• 260 out of the 300 plus showrooms have opened up.
• Aim to achieve optimum level of production very soon.
• Anticipate temporary hiccups due to Covid-19 in the short-term.
• Focus on increasing sales and expediting collections to ensure best use of working capital.
• Revenue target of Rs 2,000 crore and aim to expand exclusive store network to 500.

Shares gained as much as 8.7% to Rs 173 and are up in five out of the last six sessions.

The capital goods company reported a net loss of Rs 1,532 crore for the March quarter as compared to a net profit of Rs 680.7 crore during the same period last year.

Revenue for the company declined 51.3% while it had an Ebitda loss of Rs 559.6 crore for the quarter gone by.

Ebitda margins stood at a negative 11% from a positive 13.4% in the previous year.

Brokerage firm Morgan Stanley has termed the fourth quarter as one of the worst in the company's history. It maintained its underweight rating on the stock with a price target of Rs 18, citing a stretched balance sheet.

12 lakh shares of the company also exchanged hands in a single large trade this morning, according to Bloomberg data. Buyers and sellers of the trade were unknown.

Shares fell as much as 9.4% to Rs 28.45 - its biggest single-day drop in three months. It is also the worst performing stock on the Nifty Midcap Index.

• Revenue up 39.9% to Rs 354.2 crore
• Ebitda up 75.3% to Rs 75.7 crore
• Ebitda margin widens to 11% from 10.3%
• Net profit up 49.7% to Rs 38.9 crore
• All numbers compared on a sequential basis
• Constant currency revenue growth of 36.1% sequentially
• Added 24 new clients during the quarter
• 12-month order backlog up 66.7% on a quarter-on-quarter basis
• Acquisition of Evosys contributes to the earnings
• Cash balance of Rs 414.7 crore

Shares are locked in an upper circuit of 20% at Rs 346.

• Top performer on the Nifty Midcap Index
• Gains as much as 6% to Rs 633
• Trades at the highest level in five months
• Up for the second straight day
• Today's gains are on volumes that are 14.1 times higher than its 30-day average
• Stock trades in overbought territory with Relative Strength Index (RSI) at 76
• Trades near its 52-week high of Rs 640 on January 20, 2020
• 11 out of the 13 analysts tracking the stock have a buy recommendation
• Now trades 1.7% higher than its 12-month consensus price target of Rs 606.6, implying a negative return potential.

In another production resumption update, the wheels manufacturer has informed the exchanges about the continued momentum in segment sales.

The company has revised its production guidance higher for the June to September period, citing contributions coming from the PV and the two and three-wheelers segment.

It is now expecting to reach a gross revenue of Rs 135-140 crore by September 2020.

Shares rose as much as 5.8% to Rs 377.5, post the announcement, snapping a six-day losing streak. The streak was the longest for the stock in three months.

• Nifty June futures add 9.9% and 10.6 lakh shares in Open Interest.
• Nifty Bank June futures add 11.9% and 2.2 lakh shares in Open Interest.

Nifty: June 18 Expiry

• 10,000 Call: Premium falls 55.2% to Rs 58.65. The contract has added 8.83 lakh shares in Open Interest.
• 10,100 Call: Premium falls 61.1% to Rs 34.55. The contract has added 7 lakh shares in Open Interest.
• 9,900 Call: Premium falls 48.5% to Rs 94.5. The contract has added 8.16 lakh shares in Open Interest.

Nifty Bank: June 18 Expiry

• 21,000 Call: Premium falls 62.6% to Rs 150.9. The contract has added 2.25 lakh shares in Open Interest.
• 19,500 Put: Premium up 54.8% to Rs 312.9. The contract has added 1.3 lakh shares in Open Interest.
• 19,000 Put: Premium up 40% to Rs 170.9. The contract has added 1.2 lakh shares in Open Interest.

• Net Interest Income rose 30% from the previous year to Rs 91.87 crore
• Gross NPA at 6.77% from 7.22% in the previous quarter
• Net NPA at 3.62% from 3.84% in the previous quarter
• Accounts worth Rs 144 crore resolved during the quarter
• Fresh loans worth Rs 884 crore sanctioned during the quarter
• Capital Adequacy Ratio at 23.72%
• Net Interest Margin at 3.38% from 2.46% in the previous year
• Debt-Equity ratio improves to 4.43 from 4.67 in Q3FY20
• 50% of the loan book given moratorium
• Have sufficient liquidity to meet future obligations

Shares are off the day's low after having fallen as much as 12.1% to Rs 9.80.

The specialty chemicals company reported an 18.7% decline in its revenue for the March quarter as compared to the previous year.

Net profit declined 9.6% while margins remained flat at 41.4% year-on-year.

The board has also recommended a final dividend of Rs 0.5 per share for FY20.

Shares fell as much as 5.7% to Rs 968.7 and are down for the second straight day.

• Benchmark indices trade near the day's low
• Nifty down 1% at 9,878
• Sensex down 1% at 33,415
• Nifty Bank down 2.3% at 20,154
• Nifty Midcap Index up 0.3%
• Nifty Smallcap Index up 0.9%
• India Volatility Index up 4.2% to 32.11
• Nifty Metal, Nifty PSU Bank Index decline 0.7% each
• Nifty Media Index is the top sectoral gainer; up 2.2%
• Nifty Pharma is the other sectoral gainer; up 1.2%
• Zee Entertainment is the top Nifty gainer; up 3.8%
• IndusInd Bank is the top Nifty laggard; down 3.9%
• 34 out of the 50 Nifty constituents decline
• 1,036 stocks on the NSE trade with gains while 623 trade with losses

The currency has opened with losses, in-line with the equity markets across the globe and tracking a stronger U.S. Dollar.

The rupee opened at 75.92 against the greenback, as compared to Friday's close of 75.84. The currency was the third worst performer in Asia last week.

Wholesale price data for the month of May will be in focus today.

Within the bond markets, the government plans to switch bonds worth Rs 27,000 crore maturing in 2021 and 2022 into notes maturing in 2026, 2050 and 2060.

51.1 lakh shares of India's largest oil refiner exchanged hands in a single large deal on the Bombay Stock Exchange.

Buyers and sellers of the trade were not immediately known as per Bloomberg data.

Shares are down for the fifth straight day, falling as much as 1.8% to Rs 86.75. This is the longest losing streak for the stock in over a month.

The maker of the Royal Enfield motorcycle reported a 44.1% decline in its net profit in the March quarter. Higher depreciation and other expenses was attributed to the fall in profitability.

Realisations rose 10% from last year to Rs 1,26,544 per unit due to the BS-VI transition.

The 20% decline in volumes during the quarter led to an 11.7% fall in the company's topline.

Brokerage firm Jefferies has raised its price target on the stock to Rs 20,000 from Rs 17,500 as it expects the company to capitalise on the potential demand recovery.

Shares gained as much as 3% to Rs 17,367 and are among the few gainers on the Nifty 50 index.

The company has informed the exchanges that it received a termination notice from a customer with which it had entered into a long-term contract.

The 10-year contract was to supply a high-value agrochemical intermediary with application to Herbicides

The contract was expected to generate a revenue of approximately Rs 4,000 crore over the 10-year period, the company said in its exchange filing.

It has attributed the termination of the contract to a change in the customer's strategy.

Shares fell as much as 7.1% to Rs 852 and are down for the third straight day.

Indian equity markets opened with a negative bias at the start of the new trading week, tracking weak cues from Asia and the U.S.

The S&P BSE Sensex opened 0.33% lower at 33,670 while the NSE Nifty 50 index opened at 9,919, down 0.54%.

Both the benchmark indices reported losses of over 1.5% last week.

Among sectoral indices, the Nifty Bank index opened 1% lower while the PSU Bank and realty indices opened with a negative bias.

The Nifty Media Index was the top sectoral gainer, up 1.2% at open.

Market breadth was in favour of the gainers at the start of trade. 950 stocks on the NSE opened with gains while 606 declined.

• Global cases cross 7.8 million
• Death toll rises to 4.32 lakh
• South Africa reports record new cases for the second straight day
• Beijing locks down more parts of the city on Monday. Chinese vice premier says risks are high for the outbreak to spread.
• Infectious disease expert Anthony Fauci suggested that bans on travel to the U.S. may remain till a vaccine arrives.
• French President Emanuel Macron says pace of emerging from the nationwide lockdown will accelerate.
• Hong Kong Disneyland plans to reopen on June 18.
• Morgan Stanley Economists see a V-Shaped recovery
• Hong Kong mulls easing gathering limit to 12: Reports

• Reliance Industries: TPG to invest Rs 4,546.8 crore in Jio Platforms for a 0.93% stake. Catterton will invest Rs 1,894.5 crore for a 0.39% stake in Jio Platforms. This was the ninth and the tenth investment in the company. Jio platforms has now raised Rs 1,04,326.95 crore so far. Both the investments value the company at an equity valuation of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.
• Eicher Motors: Revenue declined 11.7% in the fourth quarter while net profit fell 44.1%. Royal Enfield sold during the quarter fell 17% while higher depreciation impacted net profit. Realisations rose 10% to Rs 1,26,544 units. Ebitda margin fell to 19.6% from 27.4%.Board approves sub-division of equity shares from one share of face value of Rs 10 into 10 shares of face value of Re 1 each. Expected date of completion is likely to be 2-3 months after shareholder approval.
• Tyre Stocks: Bloomberg News reports that India has restricted the import of certain types of tyres. Import policy of new pneumatic tyres amended to 'restricted' from 'free' category, according to a statement issued by India's Directorate General of Foreign Trade. Import rules for tyres used by cars, buses, lorries, motor cycles and bicycles have been changed.
• JM Financial: Board approves allotment of 11 crore shares at an issue price of Rs 70 per share. The company has raised Rs 770 crore in the QIP issue which is now closed. Some of the key allottees include Valiant Mauritius Partners, Fidelity Group, ICICI Prudential Mutual Fund, Wells Fargo and Baron Emerging Markets Fund. The issue price is a 6% discount to Friday's closing price.
• Dr Reddy's Laboratories: Announces the launch of Colchicine tablets, approved by the U.S. FDA. The product will be launched in the U.S. market.
• Shriram Transport Finance: To consider raising funds on June 15.
• Aavas Financiers: To consider raising funds via NCDs on June 17.
• Lemon Tree Hotels: Executed the necessary documents with APG Strategic Real Estate Pool for issue of compulsory convertible preference shares worth Rs 300 crore.
• Non-Nifty Earnings Today: Shopper Stop, Pfizer, JK Tyres, IGL, Narayana Hrudayalaya, Ashoka Buildcon, Can Fin Homes, Cholamandalam Financial Holdings, CSB Bank, Meghmani Organics, Intellect Design Arena, Satin Creditcare, Shilpa Medicare

To know more about companies sharing their Covid-19 updates, other earnings reported after market hours and brokerage views, click here.

• Benchmark indices rebound from biggest drop in three months
• Real estate, financial and energy companies lead gains on the S&P 500
• S&P 500 ended 1.3% higher but posted losses for the week
• White House Economic Advisor Larry Kudlow said a new wave of cases has not appeared
• Bloomberg Dollar Spot Index advanced 0.1%
• Yield on the 10-year treasury gained four basis points to 0.71%
• West Texas Intermediate crude was little changed. It now trades over 3% lower below the $35 per barrel mark

Get all the live action from the global equity markets here.

Good Morning!

After snapping the two-week gaining streak, Indian market gears up for fresh challenges as it reopens Monday.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, is recovering from the day’s low, down 0.25% to 9,873 as of 7:45 a.m. The S&P BSE Sensex and the NSE Nifty 50 posted losses of more than 1.5% last week.

Asian markets witnessed a muted start this morning, with Hong Kong leading the selloff. Benchmarks in Japan, South Korea and Australia are seeing declines as well. Investors are concerned over a potential second wave of Covid-19 infections.

The U.S. dollar is rising along with treasuries, while the West Texas Intermediate crude extended losses to fall below the $35-per-barrel mark.

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