Sensex, Nifty End Near Day’s High; Post Second Day Of Gains

• Benchmark indices gain for the second straight day; end near day's high
• Nifty ends 2.1 percent higher at 9,066
• Nifty futures trade at a premium of 20 points
• Sensex ends 2.06 percent higher at 30,818
• Nifty Bank ends 2 percent higher at 17,840
• Nifty Midcap Index ends with gains of 1.55 percent
• Nifty Smallcap Index ends 1 percent higher
• India Volatility Index down 9.8 percent to 35.59
• Nifty Pharma ends as the top sectoral gainer; up 4.1 percent
• Nifty Auto, Nifty Media and Nifty Realty index end with gains of over 2 percent
• Nifty Metal and Nifty FMCG index gain over 1 percent each
• Dr Reddy's Laboratories ends as the top Nifty gainer; up 6 percent
• Bharti Infratel ends as the top Nifty laggard; down 7 percent
• 1,074 stocks on the NSE end with gains while 655 end with losses

Indian equity markets gained for second straight day, after a last hour surge took benchmark indices to their highest point of the day.

European markets continue to trade with modest losses while futures on the Dow Jones are at the day's high, up 270 points.

The S&P BSE Sensex ended 2 percent higher at 30,818, nearly 700 points off the day's low. The NSE Nifty 50 index too ended with gains of 2.1 percent at 9,066, rebounding almost 200 points from the lowest point of the day.

42 out of the 50 Nifty constituents, ended with gains. Broader markets underperformed the benchmarks with the midcap and smallcap index gaining 1.7 and 1.1 percent respectively.

Market breadth remained in favour of the advances throughout the trading session. 1,065 stocks on the NSE ended with gains while 669 posted losses.

• Buy Nifty for target of 9,200 and stop loss of 8,980
• Buy Tata Steel for target of Rs 295 and stop loss of Rs 277
• Buy Bajaj Finserv for target of Rs 4,950 and stop loss of Rs 4,600

• Second best performing stock on the Nifty Next 50 index
• Gains as much as 7 percent to Rs 18,730
• Up for six out of the last 8 trading sessions
• Up 10 percent in the last 8 trading sessions
• Today's volumes are 1.3 times higher than its 30-day average
• Breaks above its 50-Day Moving Averge of Rs 17,963
• Has gained 14.1 percent from its 52-week low of Rs 16,254 on March 23, 2020
• 4 out of the 18 analysts tracking the stock have a buy recommendation; 8 sell calls
• The stock trades 8 percent above its 12-month consensus price target of Rs 17,093, implying a negative return potential

Bull Call Spread On Nifty:

• For May 21 Expiry
• Buy 9,000 Call at Rs 48
• Sell 9,100 Call at Rs 20
• Total Spread of Rs 28
• Spread target: Rs 85 and stop loss of Rs 5

• Buy Tata Steel around Rs 282 for target of Rs 295 and stop loss of Rs 277
• Buy L&T around Rs 832 for target of Rs 890 and stop loss of Rs 810

• Revenue down 6.8 percent to Rs 1,793.4 crore
• Net profit at Rs 108.4 crore
• Ebitda up 20.6 percent to Rs 574.8 crore
• Ebitda margin expands to 32.1 percent from 24.8 percent
• All numbers are consolidated and compared on a year-on-year basis
• Management says GMR-Kamalanga deal on hold due to uncertainty
• Management expects power demand to remain muted over the short-term
• The company also reduced its net debt by Rs 585 crore this quarter
• It has also declared a dividend of Re 1 per share

Shares gained as much as 9.8 percent to Rs 43 post the announcement.

• Affected employees to get 3 months of their fixed salary
• Affected employees can continue using their medical, life and accident insurance cover for themselves and family up to December 31
• Ola says this is a one-time exercise and will be completed this week
• Employees of India mobility business, Ola Foods and Ola Financial Services will be impacted

• Benchmark indices at day's high
• Nifty up 1.5 percent at 9,009
• Nifty futures trade at a premium of 10 points
• Sensex up 1.4 percent at 30,627
• Nifty Bank up 1.3 percent at 17,712
• Nifty Midcap Index up 0.9 percent
• Nifty Smallcap Index up 0.6 percent
• India Volatility Index down 7.7 percent to 36.41
• Nifty Pharma Index is the top sectoral gainer; up 2.3 percent
• Nifty FMCG, Nifty Media and Nifty Realty up over 1.3 percent each
• GAIL is the top Nifty gainer; up 4.9 percent
• Bharti Infratel remains the top Nifty loser; down 9.2 percent
• 944 stocks on the NSE are advancing while 748 trade with losses

The rupee ended with losses in today's trading session after opening with modest gains, failing to add on to the gains made in Tuesday's trading session.

The currency ended at 75.80 against the U.S. Dollar as compared to Tuesday's close of 75.64. The 0.2 percent fall today made rupee the second worst performing currency among its Emerging Market Peers, only behind the South Korean Won.

Yield on the 10-year bond ended little changed at 5.782 percent as compared to Tuesday's close of 5.77 percent.

Borrowings by India's government, states and PSUs are set to cross 13 percent of the country's GDP, HSBC Holdings wrote in a note.

The note, accessed by Bloomberg News states that debt sales by state entities may also widen the fiscal deficit for the year-end to 10.2 percent of GDP instead of the earlier estimated 9 percent.

Borrowing costs for state-run insurers is on the rise. Rural Electrification Corporation on Tuesday priced rupee-bonds maturing in 10 years at 7.79 percent, 24 basis points higher than a similar deal closed last week.

• Bajaj Finance's 2,000 Call: Premium falls 27.4 percent to Rs 87.3. The contract has added 2.33 lakh shares in Open Interest.
• Reliance Industries' 1,400 Put: Premium falls 39.6 percent to Rs 22.5. The contract has added 5.23 lakh shares in Open Interest.
• Bharti Airtel's 600 Call: Premium falls 40 percent to Rs 11.65. The contract has added 85,146 shares in Open Interest.

• Top loser on the Nifty 50 index
• Falls as much as 10.3 percent to Rs 196.1
• Snaps two-day gaining streak
• Has gained in 8 out of the last 10 trading sessions (Including today)
• Up 22 percent in the last 10 sessions, despite today's correction
• Today's volumes are 2.3 times higher than its 30-day average
• Falls from its 100-Day Moving Average resistance of Rs 207.7
• 11 out of the 25 analysts tracking the stock have a buy recommendation; 6 sell calls
• The stock still trades 1 percent above its 12-month consensus price target of Rs 194.67, implying a negative return potential

Markets across Europe are off to a weak start, opening lower for the second straight day. Lack of cues from the Covid-19 progress and the European Rescue Fund is dampening sentiment.

Asian markets have ended mixed while futures on the Dow Jones are higher by 100 points, off the highest point of the day. Brent crude and gold both trade little changed

The stoxx 600 index has opened 0.5 percent lower, led by banks, who have been the worst performers in Europe this year. Healthcare stocks are outperforming.

Lets take a look at how benchmark indices across Europe have opened:

• Euro Stoxx 50 down 0.45 percent to 2,889
• DAX down 0.5 percent to 11,019
• CAC down 0.6 percent to 4,431
• FTSE 100 down 0.6 percent to 5,967
• IBEX 35 down 0.55 percent to 6,972

• Trades at the lowest level since August 2017
• Falls as much as 4.5 percent to Rs 447.05
• Down for the fifth straight day
• Longest losing streak in three months
• Down 10 percent in the last 5 sessions
• Today's volumes are 3.5 times higher than its 30-day average
• Down nearly 50 percent from its 52-week high of Rs 806.9 on June 28, 2019
• 20 out of the 46 analysts tracking the stock have a buy recommendation; 11 sell calls
• Return potential for the stock as per Bloomberg data is 15.6 percent

• Revenue seen flat at Rs 10,818.6 crore
• Ebitda seen 1.6 percent lower at Rs 2,295 crore
• Ebitda margin seen at 21.2 percent from 21.4 percent
• Net profit seen 32 percent lower at Rs 702.3 crore
• Sales volumes seen 15.8 percent lower at 21.48 MT
• Realisations likely to rise 18 percent to Rs 5,036
• Ebitda/Tonne seen 16.9 percent higher at Rs 1,069
• All estimates are Bloomberg estimates, consolidated and compared on a year-on-year basis

Factors At Play For Ultratech Cement:

• Lockdown in the last few days of March to weigh
• High prices despite lower volumes to aid realisations
• Lower freight costs to keep operating costs under control
• Benign fuel prices to aid cost control measures

The stock currently trades 1.4 percent higher at Rs 3,487 ahead of its earnings.

• Up for the seventh straight trading session
• Gains as much as 4.1 percent to Rs 578
• Longest gaining streak since July 2019
• Trades at the highest level in over two months
• Up 16 percent in the last seven trading sessions
• Today's volumes are 1.7 times higher than its 30-day average
• The stock is nearing its 100-Day Moving Average of Rs 579.8
• Has gained 29 percent from its 52-week low of Rs 442 on March 25, 2020
• 16 out of the 24 analysts tracking the stock have a buy recommendation; 6 sell calls
• The stock is trading 3.1 percent higher than its 12-month consensus price target of Rs 556.75, implying a negative return potential.

• Benchmark indices consolidate
• Nifty up 0.7 percent at 8,941
• Nifty futures trade at a premium of 7 points
• Sensex up 0.66 percent at 30,393
• Nifty Bank up 0.3 percent at 17,537
• Nifty Midcap index up 0.6 percent
• Nifty Smallcap Index up 0.4 percent
• India Volatility Index down 6 percent to 37.1
• Nifty I.T. remains the only sectoral laggard; down 0.2 percent
• Nifty FMCG, Nifty Pharma and Nifty Realty hold on to gains of over 1.5 percent
• UPL remains the top Nifty gainer; up 4.8 percent
• Bharti Infratel remains the top Nifty laggard; down 7 percent
• 903 stocks on the NSE are advancing while 728 trade with losses

• Snaps four-day losing streak
• Locked in an upper circuit of 5 percent at Rs 17.2
• The four-day losing streak was the longest in nearly 2 months
• Fell over 14 percent in the last 4 trading sessions
• Today's volumes are 1.6 times higher than its 30-day average
• The stock trades above its 50-Day Moving Average of Rs 16.3
• Has nearly doubled from its 52-week low of Rs 10 on March 24, 2020

Shares of the company gained as much as 6.1 percent to Rs 46.4 on the National Stock Exchange and snapped a four-day losing streak.

Morgan Stanley Asia acquired 19.68 lakh shares of the company at Rs 44.39 per share on Tuesday. The acquisition amounts to 0.58 percent stake in the company.

Shares have advanced only twice (including today) in the last 10 trading sessions. Shares trade 11.5 percent lower in the last 10 sessions, despite today's gain.

The small finance division of Ujjivan reported a 45.9 percent growth in its Net Interest Income to Rs 466.6 crore. Net profit rose 14.7 percent while provisions more than tripled compared to the previous quarter to Rs 97 crore.

Gross and Net NPA stood at 0.97 percent and 0.2 percent respectively.

Shares gained as much as 6.4 percent to Rs 28.25 and are up for the second straight day.

23.82 lakh shares of the utility company exchanged hands in a single large trade, according to Bloomberg data.

The trade took place at Rs 157.95, for which the buyers and sellers are not immediately known.

Shares currently trade little changed at Rs 158, after gaining as much as 1.65 percent.

The company announced the submission of an Abbreviated New Drug Application (ANDA) for Fluticasone Propionate and Salmeterol inhalation powder to the U.S. FDA., as reported by Bloomberg News.

The drugmaker had recently announced the successful completion of its Phase-3 clinical end-point study for the product in the first attempt.

The said drug is used to treat asthma in patients aged four and older. It is the generic version of GSK's Advair Diskus.

Advair Diskus and its equivalents had U.S. sales of $2.9 billion for the 12-month period ending March 2020, as per the IQVIA.

Shares gained as much as 3.2 percent to Rs 613.8 and are among the top performing stocks on the Nifty 50 index.

The Board of Directors of the company at a meeting held today have approved the issue of Secured, Listed, Redeemable, Non-Convertible Debentures (NCDs).

The NCDs, worth Rs 500 crore are proposed to be listed on the Wholesale Debt Market segment of the National Stock Exchange.

The tenure of the instrument is 36 months while the coupon rate will be 8.55 percent per annum, as per the company's exchange filing.

The stock remains the top performer on the Nifty Pharma Index, up 2.62 percent at Rs 902.4.

The I.T. bellwether has announced its partnership with the state of Rhode Island in order to launch a contact tracing solution, to slow the spread of Covid-19 in and around the state.

The company has developed a mobile app that will help citizens of Rhode Island follow health and safety guidelines. It will also be a privacy-first app.

Shares trade lower by as much as 1.34 percent to Rs 659.65 on the National Stock Exchange.

• Nifty May futures add 11.1 percent in Open Interest and 8.8 lakh shares
• Nifty Bank May futures add 5.5 percent in Open Interest and 75,220 shares

Nifty: May 21 Expiry

• 9,000 Call: Premium falls 1.3 percent to Rs 56.3. The contract has added 9.96 lakh shares in Open Interest.
• 8,800 Put: Premium falls 62.3 percent to Rs 28.2. The contract has added 8.9 lakh shares in Open Interest.
• 8,900 Put: Premium falls 47.8 percent to Rs 62.6. The contract has added 11.25 lakh shares in Open Interest.

Nifty Bank: May 21 Expiry

• 17,000 Put: Premium falls 51.3 percent to Rs 87. The contract has added 3.2 lakh shares in Open Interest.
• 18,000 Call: Premium falls 28.5 percent to Rs 104.5. The contract has added 2.72 lakh shares in Open Interest.
• 17,500 Put: Premium falls 32.2 percent to Rs 259.3. The contract has added 1.7 lakh shares in Open Interest.

The company reported a dollar revenue growth of 3.9 percent for the quarter ending March as compared to the previous quarter. Net profit grew 13.1 percent while margins expanded to 19.2 percent from 18.8 percent.

The Board of Directors have also recommended a final dividend of Rs 15.5 per equity share of Re 1 each.

Shares gained as much as 7.7 percent to a two-month high of Rs 1,799. The stock is also the top performer on the Nifty Midcap index.

• Benchmark indices near day's high after a subdued start
• Nifty up 1 percent at 8,969
• Nifty futures trade at a premium of 10 points
• Sensex up 0.96 percent at 30,487
• Nifty Bank up 0.9 percent at 17,641
• Nifty Midcap Index up 0.9 percent
• Nifty Smallcap Index up 0.6 percent
• India Volatility Index down 4.5 percent to 37.66
• Nifty I.T. is the only sectoral laggard; down 0.3 percent
• Nifty Media emerges as the top sectoral gainer; up 1.8 percent
• Nifty FMCG, Nifty Pharma and Nifty Realty gain over 1 percent
• UPL is the top Nifty gainer; up 3.3 percent
• Bharti Infratel is the top Nifty laggard; down 3.3 percent
• 991 stocks on the NSE are trading with gains while 553 are declining

The currency opened stronger for the second straight day, after snapping a three-day losing streak on Tuesday.

The currency opened at 75.56 against the U.S. Dollar, as compared to Tuesday's close of 75.64.

Yield on the 10-year government bond opened at 5.76 percent as compared to Tuesday's close of 5.77 percent.

The pharma company has informed the exchanges that its manufacturing plant-3 in Bachupally has received an Establishment Inspection Report (EIR) from the U.S. FDA.

The EIR implies a closure of the audit. The said unit had received a form 483 with one observation in February.

Shares are trading little changed at Rs 3,713, up 0.4 percent. The company will also be reporting its fourth quarter results today.

The company reported a 3.3 times jump in its net profit, aided by gains of Rs 159 crore owing to DTA adjustments due to the new tax regime.

Ebitda margins expanded to 23.9 percent from 18.6 percent led by lower fuel recovery in Mundra on account of lower HBA prices and better sourcing on coal.

Company's Commentary On Divestment:

• Realised gains worth Rs 842 crore in April post sale of Cennergi in April
• In advanced discussion to exceute sale of an overseas asset
• Good progress on closing sale of defence business in current quarter
• Divestment of Zambia Hydro Project to be completed by December

The company's board has also approved raising Rs 1,500 crore via NCDs.

Shares gained as much as 6.6 percent to Rs 34.6 and are up for the second straight day.

Indian equity markets opened little changed in mid-week trading, tracking mixed to negative cues from Asia and the U.S. Asian markets remain mixed while futures on the Dow Jones are trading 150 points higher.

The S&P BSE Sensex opened 0.1 percent lower at 30,159 while the NSE Nifty 50 index opened 0.1 percent higher at 8,889.

All sectoral indices opened flat. The FMCG index opened 0.4 percent higher while the Auto index opened lower by a similar quantum.

Market breadth on the NSE was in favour of the advances. 797 stocks opened with gains while 537 opened with losses.

• Buy Escorts for target of Rs 875 and stop loss of Rs 810
• Sell Bandhan Bank for target of Rs 206 and stop loss of Rs 227

• Buy LIC Housing Finance for target of Rs 240 and stop loss of Rs 224
• Sell Bharti Infratel at Rs 222 for target of Rs 212 and stop loss of Rs 226

• Bajaj Finance: Management says 27 percent of consolidated AUM under moratorium. The company's net profit fell 20 percent from last year while impairment expenses rose 2.3 times to Rs 1,865 crore.
• Piramal Enterprises: Bloomberg News reports that Boston-based private equity firm TA Associates is in discussions to buy about 20 percent stake in Piramal Pharma, for as much as $500 million.
• Tata Power: Exceptional gains aid 3.3 times net profit jump to Rs 402.6 crore. Ebitda margin expands to 23.9 percent from 18.6 percent. Management says divestment plans remains on track. Board approves raising Rs 1,500 crore via NCDs.
• Embassy Office Parks REIT: Net profit falls 77 percent from last year. Declares dividend of Rs 6.89 per unit for which a record date has been set for May 28. Management says demand likely to moderate considerably in FY21.
• Future Retail: Board approved allotment of Rs 1.48 crore shares at Rs 505 per share aggregating to Rs 750 crore to promoter entity Future Coupons, upon exercise of option for conversion of remaining equity warrant.
• Finolex Industries: Has increased the turnover discount scheme across its dealer network. The additional dealer incentive scheme will be paid to the dealers who have achieved their target and for those who could not, they will be paid a token amount as gratitude.
• Non-Nifty Earnings Today: Ajanta Pharma, Birlasoft, GHCL, JSW Energy, Jubilant Foodworks, Kalpataru Power, JK Lakshmi Cement, Mahindra Logistics, Matrimony.com, Strides Pharma.

For all that you need to know going into trade, click here.

• Benchmark indices snap four-day gaining streak
• S&P 500 and Nasdaq turn negative in the last hour of trade
• Optimism over Moderna's Covid-19 vaccine study questioned
• Nasdaq is set to unveil new rules for initial public offerings including tougher accounting standards that will make it more difficult for some Chinese companies to list on the exchange.
• The Bloomberg Dollar Spot Index ended little changed
• Yield on the 10-year treasury fell the most in a week to 0.69 percent
• West Texas Intermediate crude gained 2.1 percent to $32.50 per barrel. The commodity trades flat in today's session.

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

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 1.1 percent to 8,919, as of 7:55 a.m.

Asian markets are mixed at the start of mid-week trade. Benchmarks in Japan and Hong Kong are edging higher, while those in China and Australia are retreating.

Futures on the Dow Jones are trading higher by 150 points after the benchmark ended 1.6 percent lower on Tuesday.

Federal Reserve Chair Jerome Powell reiterated during a senate hearing that the central bank is ready to use all the weapons in its arsenal to help the U.S. economy endure the Covid-19 pandemic.

Treasuries are holding on to overnight gains, while oil prices are flat.

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