Sensex, Nifty End 6% Lower For The Week

Indian equity markets fell off the highest point of the day to end with modest gains. As of closing in India, European markets are trading with gains while futures on the Dow Jones are trading higher by 250 points.

The S&P BSE Sensex fell 500 points from the day's high of 32,088 to end 0.7 percent higher at 31,642. For the week, the 30-stock index was down over 6 percent.

The NSE Nifty 50 index too fell 150 points from its day's high of 9,382 to end at 9,251 which was near the day's low of 9,238. The index ended the week with losses of 6.1 percent.

Among sectoral indices, the PSU banking index was the top laggard, ending 1.9 percent lower. The Nifty Auto and Nifty Metal indices too fell over 1 percent each. The Nifty Pharma index was the top sectoral gainer, ending 2.2 percent higher.

Market breadth turned negative in the second half of the session. About 767 stocks ended with gains while 1,004 stocks ended with losses.

The company's fourth quarter net profit fell 66 percent to Rs 84 crore. Revenue however was up 21 percent compared to last year to Rs 2,176 crore.

The company has reported an impairment loss of Rs 489 crore due to the Covid-19 pandemic. It has also declared an interim dividend of Re 1 per share.

Shares fell as much as 3.87 percent to Rs 552.20, post the announcement.

• Buy Lupin for target of Rs 865 and stop loss of Rs 818
• Sell Titan for target of Rs 795 and stop loss of Rs 850

• Trades at the lowest level since March 2016
• Second worst performer on the Nifty PSU Bank Index
• Declines as much as 2.6 percent to Rs 166.30
• Down for four out of the last five days
• Falls 12.2 percent this week
• Today's volumes are 0.8 times higher than its 30-day average
• Down 55 percent from its 52-week high of Rs 373 on July 18, 2019
• 45 out of the 52 analysts tracking the stock have a buy recommendation; 2 sell calls
• Return potential of the stock as per Bloomberg data is 73.9 percent

The company in its fourth quarter has reported a 5.5 percent decline in its revenue to Rs 462.2 crore. Net profit has risen 5.1 percent from the previous quarter to Rs 121.4 crore.

Ebitda has risen 7.6 percent while Ebitda margins expanded to 36.3 percent from 31.9 percent in the previous quarter.

The company has reported a 3 percent growth in volumes this quarter. In its press release, the company has expressed confidence in continuing to generate healthy cash flows and that the current lockdown will impact the CNG and PNG demand going forward.

Shares rose as much as 9.25 percent to Rs 114 post the announcement.

• Benchmark indices off day's high
• Nifty up 1 percent at 9,298
• Nifty futures trade at a discount of 30 points
• Sensex up 1.1 percent at 31,806
• Nifty Bank up 0.5 percent at 19,596
• Nifty Midcap Index trades flat; up 0.1 percent
• Nifty Smallcap Index down 0.2 percent
• India Volatility Index down 4.33 percent to 38.19
• Nifty PSU Bank Index is the top sectoral laggard; down 1.4 perent
• Nifty Auto (Down 1 percent), Nifty Realty (Down 0.4 percent) and Nifty Metal (Down 0.3 percent) are the other sectoral laggards
• Nifty I.T. and Nifty FMCG are holding on to gains of over 1 percent
• Zee Entertainment remains the top Nifty gainer; up 5 percent
• Mahindra & Mahindra is the top Nifty loser; down 4.3 percent
• 876 stocks on the NSE trade with gains while 852 are declining

The rupee ended today's trading session with gains but off the highest point of the day. The pullback led to the currency posting losses for the week.

The rupee ended at 75.55 against the U.S. Dollar, as compared to Wednesday's close of 75.76. The currency made an intra-day high of 75.26 against the greenback and was the best performing currency among its EM peers at one point.

The late session pull back resulted in the rupee ending as the 4th best performer behind the Indonesian Rupiah, South Korean Won and the Thai Baht. For the week, the rupee posted losses of 0.6 percent.

Yield on the 10-year bond ended below the 6 percent mark at 5.97 percent, the lowest since 2009. The Reserve Bank of India sold a new 10-year bond with the cut-off yield at 5.79 percent.

• Equity inflows decline 47 percent compared to last month to Rs 6,213 crore
• Total MF industry saw inflows of Rs 45,999.5 crore as compared to an outflow of Rs 2,12,737 crore
• Equity AUM at Rs 6,11,487.2 crore Vs Rs 6,50,146 crore
• Multi-Cap Funds see inflow of Rs 1,240.15 crore
• Largecap funds see inflow of Rs 1,691.31 crore
• Midcap funds see inflow of Rs 497.16 crore
• Smallcap Funds see inflow of Rs 384.33 crore
• Credit Risk Funds see outflow of Rs 19,239 crore

Source: AMFI

• Trades at an all-time low
• Fell as much as 3 percent today to Rs 53.6
• Down for the fifth straight day
• Longest losing streak in over two months
• Down 17 percent in the last 5 sessions
• Today's volumes are 0.8 times higher than its 30-day average
• Stock has entered oversold territory with Relative Strength Index (RSI) at 27
• The stock has fallen 67 percent from its 52-week high of Rs 162 on May 20, 2019
• All 6 analysts tracking the stock have a buy recommendation
• Return potential of the stock as per Bloomberg data is 180 percent

Benchmark indices across Europe have opened with steady gains as major economies continue to announce reopening plans. Futures on the Dow Jones are currently trading higher by 250 points.

The Stoxx 600 has gained 0.5 percent on open and is set to post its best weekly advance in a month. All sectors are trading with gains with auto stocks outperforming. Markets in the U.K. are shut on account of a holiday.

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

• Euro Stoxx 50 up 0.7 percent to 2,901
• DAX up 1.1 percent to 10,882
• CAC up 0.8 percent to 4,537
• IBEX 35 up 1.1 percent to 6,805

The company has issued a clarification to the exchanges over reports of Amazon looking to buy stake in the company. The exchange notice states that there currently is no legally binding agreement nor any understanding in writing.

Shares remain locked in an upper circuit of 5 percent for the second day in a row at Rs 80.50.

The company has informed the exchanges that it has received a demand notice from the Commercial Tax Department of the state of Karnataka worth Rs 85.19 crore by treating the stock transfers of its Mangalore plant as interstate sale to dealers.

The exchange filing further states that similar demand notices have been earlier received for the periods 2006-10, 2010-11 and 2014-15. All three have been stayed by the Karnataka Appellate Tribunal.

The current demand is for the period 2013-14.

Shares cooled off from the day's high to fall as much as 2 percent to Rs 970 and are down for the fourth out of the last five trading sessions.

1.36 crore shares, amounting to 12.7 percent equity of the pharma company changed hands in two large trades on the Bombay Stock Exchange.

The two large trades took place between Rs 441 and Rs 445. Buyers and sellers of the trade were not immediately known as per Bloomberg data.

Shares fell a much as 10 percent to Rs 440 post the trades.

The management committee of the company's Board of Directors has approved the allotment of secured, redeemable NCDs aggregating to Rs 100 crore on a private placement basis.

The tenure of the instruments is for a period of three years and the interest rate offered on the coupons is 9 percent.

Shares are off the day's high after gaining as much as 4 percent to Rs 127.65.

• Benchmark indices trade near the day's high
• Nifty up 1.5 percent at 9,341
• Nifty futures trade at a discount of 16 points
• Sensex up 1.6 percent at 31,950
• Nifty Bank up 1.7 percent at 19,823
• Nifty Midcap Index trades 0.8 percent higher
• Nifty Smallcap Index trades 0.7 percent higher
• India Volatility Index down 4.5 percent to 38.12
• Nifty Media is the top sectoral gainer; up 3.3 percent
• Nifty Auto Index gives up gains; down 0.2 percent
• NIfty Pharma, Nifty FMCG index up 2 percent each
• Zee Entertainment is the top Nifty gainer; up 5.2 percent
• NTPC is the top Nifty laggard; down 4 percent
• 1,077 stocks on the NSE trade with gains while 585 decline

• Worst performer on the Nifty Realty Index
• Falls as much as 3.9 percent to Rs 106.55
• Trades at the lowest level since October 31, 2018
• Down for the fifth straight day
• Longest losing streak in over a month. The stock had fallen for 15 straight sessions in March 2020
• Down 10 percent in the last 5 trading sessions
• Today's volumes are 0.8 times higher than its 30-day average
• The stock has entered oversold territory with Relative Strength Index (RSI) at 25
• Has corrected 58 percent from its 52-week high of Rs 254.9 on February 20, 2020
• All 11 analysts covering the stock have a buy recommendation
• Return potential of the stock as per Bloomberg data is 97.3 percent

• Reliance Industries' 1,600 Call: Premium rises 42.6 percent to Rs 53.1. The contract has added 2.61 lakh shares in Open Interest.
• Hindustan Unilever's 2,100 Call: Premium rises 14.2 percent to Rs 49.8. The contract has shed 76,500 shares in Open Interest.
• ICICI Bank's 350 Call: Premium up 26.8 percent to Rs 24.1. The contract has added 30,250 shares in Open Interest.

• Among the top performers on the Nifty Smallcap Index
• Gains as much as 6.1 percent to Rs 157.95
• Up for the fourth straight day
• Longest winning streak in a month
• Up 10 percent in the last four sessions
• Breaks above its 50-day Moving Average of Rs 151.51
• Today's volumes are 3.8 times higher than its 30-day average
• The company is set to report its fourth quarter earnings today
• Up 51 percent from its 52-week low of Rs 102.15 on March 24, 2020

• Net sales seen 3.5 percent lower at Rs 3,169.6 crore
• Ebitda seen 18.2 percent higher at Rs 1,002 crore
• Net profit seen 31.1 percent higher at Rs 420.71 crore
• High realisations, lower costs may aid bottomline
• Volumes seen 5.5 percent lower at 6.9 MT
• Ebitda per tonne seen 25 percent higher at Rs 1,452
• Realisations seen 2.1 percent higher at Rs 4,594 per tonne
• Higher prices in East and North India may aid realisations despite lower volumes
• Lower fuel costs, higher realisations may aid operational performance

Shares are currently trading 0.4 percent higher at Rs 18,504 ahead of its earnings.

India may face a rating downgrade if its fiscal metrics weaken materially, Moody's Investors Services wrote in a report.

The ratings agency believes that the government will face "Very significant constraints" in narrowing the general government budget deficit if nominal GDP growth does not return to higher rates.

The note went on to state that the negative outlook reflects the increasing risks that the economic growth will remain significantly lower than in the past.

Prolonged financial stress among rural households, weak job creation and a credit crunch among shadow banks have increased the possibility of a more entrenched weakening, the note said.

Moody's current rating on India is Baa2 - a notch higher than the lowest investment grade with a negative outlook.

The ball and roller bearings manufacturer reported a 18.5 percent decline in its revenue compared to the previous year to Rs 610.2 crore.

The company's net profit fell 8.4 percent while margins contracted to 10.1 percent from 14.8 percent in the previous year. It alo declared a final dividend of Rs 130 per share.

Shares gained as much as 11.57 percent to Rs 1,500 on the National Stock Exchange. It snapped a four-day losing streak in today's session and trades at the highest level in nearly two months.

The stock has had volatile moves in the first hour of today's trading session after it reported its fourth quarter earnings on Thursday.

The private lender's net profit fell 54 percent year-on-year to Rs 114 crore while Net Interest Income saw a growth of 38 percent compared to last year.

Gross NPA stood at 3.62 percent from 3.33 percent in the previous quarter while Provisions stood at Rs 614.1 crore from Rs 638.3 crore last quarter.

The stock opened with gains of 3 percent, gained as much as 4 percent, before falling to the day's low of Rs 127.50, down 1 percent. It now trades 0.5 percent higher at Rs 129.45.

• Nifty May futures add 6.8 percent in Open Interest and 5.41 lakh shares
• Nifty Bank May futures add 14 percent in Open Interest and 1.83 lakh shares

Nifty: May 14 Expiry

• 9,500 Call: Premium up 18.3 percent to Rs 83.95. The contract has added 7.66 lakh shares in Open Interest.
• 9,000 Put: Premium falls 49.7 percent to Rs 53.95. The contract has added 3.96 lakh shares in Open Interest.
• 9,400 Call: Premium up 18.3 percent to Rs 119.95. The contract has added 6.3 lakh shares in Open Interest.

Nifty Bank: May 14 Expiry

• 19,000 Put: Premium falls 45.8 percent to Rs 197.1. The contract has added 2.57 lakh shares in Open Interest.
• 20,500 Call: Premium up 14.2 percent to Rs 243.1. The contract has added 1.59 lakh shares in Open Interest.
• 21,000 Call: Premium up 6.6 percent to Rs 131.75. The contract has added 1.16 lakh shares in Open Interest.

• Benchmark indices off opening highs but hold on to gains
• Nifty up 1.34 percent at 9,320
• Nifty futures trade at a discount of 11 points
• Sensex up 1.4 percent at 31,872
• Nifty Bank up 2 percent at 19,884
• Nifty Midcap Index and Smallcap Index up 1 percent each
• India Volatility Index down 3.5 percent to 38.54
• All sectoral Indices trade with gains
• Nifty Pharma is the other sectoral index with gains of 2 percent
• Nifty FMCG, Nifty Media, Nifty Metal and Nifty Realty gain over 1.5 percent each
• Dr Reddy's Laboratories is the top gainer on the Nifty; up 4.7 percent
• Power Grid is the top Nifty laggard; down 2 percent
• 1,134 stocks on the NSE are trading with gains while 446 are declining

The small-cap technology company reported a 3.8 percent decline in its dollar revenue to $149.2 million for the fourth quarter of FY20.

The company's net profit fell 58.3 percent compared to the previous quarter to Rs 45.2 crore, mainly led by an impairment of non-current assets at Rs 40.4 crore.

Ebit fell 57 percent while Ebit Margins too saw a contraction to 4.2 percent from 9.5 percent in the third quarter of FY20.

Shares fell as much as 8.8 percent to Rs 211.2 and are down for the second straight day. It is also the worst performing stock on the Nifty Smallcap Index.

The company reported a strong quarter during the January-March period. Revenue grew 12.5 percent to Rs 481.9 crore while net profit rose 28.3 percent to Rs 155.9 crore.

The retail equity segment outperformed, with its revenue growing 35 percent compared to last year to Rs 292 crore. The broking firm added 1.1 lakh new clients in the current quarter.

The company has also declared a final dividend of Rs 6.75 per share of face value of Rs 5 each.

Shares gained as much as 13.77 percent to Rs 430 before cooling off. This was the biggest one-day jump in the stock since December 2019.

The company has informed the exchanges that its API manufacturing plant at Srikakulam has received the Establishment Inspection Report (EIR) from the U.S. FDA.

The classification of this facility is now determined as Voluntary Action Initiated, as per the company's press release.

The drug-maker added in the note that all facilities under the warning letter are now determined as VAI and the audit now stands closed.

Shares gained as much as 7.7 percent to Rs 4,132 before cooling off. They now trade 3.8 percent higher at Rs 3,983 and are the top performer on the Nifty 50 index.

The company has brought on board a third investors for Jio Platforms. Vista Equity Partners will invest Rs 11,367 crore in the company, valuing Jio Platforms at Rs 4.91 lakh crore. The investment will translate into a stake of 2.32 percent on a fully diluted basis.

On the other hand, Bloomberg News reported on Thursday that the company is in talks with bankers to sell its stake in Asian Paints. The company holds 4.9 percent stake in the paint major, which roughly translates into $989 million.

Shares of Reliance Industries are up for the fourth straight day, gaining as much as 2.86 percent at Rs 1,550. It is also the top point contributor to the Nifty upside.

Shares of Asian Paints however, gave up gains after opening as high as 2.74 percent. They now trade 0.3 percent lower at Rs 1,589.

Indian equity markets began trade on a positive note, in-line with peers in Asia and those on Wall Street. Futures on the Dow Jones are currently trading higher by 280 points.

The S&P BSE Sensex opened 2 percent higher at 32,083 while the NSE Nifty 50 index opened 1.93 percent higher at 9,376. All constituents of the 50-stock index opened with gains.

Among sectoral indices, the Nifty Bank opened 1.8 percent higher while the Media, FMCG and Metal indices opened with gains of over 2 percent. All other indices opened with gains between 1-2 percent as well.

1,076 stocks on the NSE are trading with gains while 317 trade with losses.

• Buy Nifty around 9,230-9,250 for target of 9,400 and stop loss of 9,150
• Buy JSW Steel for target of Rs 183 and stop loss of Rs 169
• Buy Hindustan Unilever for target of Rs 2,090 and stop loss of Rs 1,950

• Buy 1,540 Call of Reliance Industries for target of Rs 90 and stop loss of Rs 40
• Buy 540 Call of Tech Mahindra for target of Rs 22 and stop loss of Rs 9

• Reliance Industries: Vista Equity Partners will invest Rs 11,367 crore in Jio platforms for a 2.32 percent stake at an equity value of Rs 4.91 lakh crore. In another news, Bloomberg News reports that the company is also considering selling stake in Asian Paints valued at about $989 million in order to pare debt.
• Tata Motors: The company has withdrawn its NCD issue of Rs 1,000 crore in view of the higher cost expectations from the market participants due to the tight money market conditions.
• Zydus Cadila: Gets final approval from the U.S. FDA for Deferasirox Tablets for oral suspension. It is used to treat iron overload caused by blood transfusions.
• Eicher Motors: VE Commercial Vehicles segment has received the required government permissions to restart manufacturing operations in six of its plants located in Pithampur, Dewas, Thane and Baggad.
• NLC India: 8 workmen are injured an explosion in the company’s thermal plant at Neyveli. Post the incident, the company has also shut two other power generating units for safety measures.
• PNB Gilts: Seeks shareholder nod increase borrowing powers of the company from to Rs 20,000 crore from Rs 12,000 crore.
• CG Consumer Electricals: Board approved issuing NCDs worth Rs 300 crore on a private placement basis.
• Wockhardt: To consider raising capital on May 11.
• Cyient: Board approves increasing investment limit of Foreign Portfolio Investors to 74 percent from 49 percent.

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

• Benchmark indices rise despite poor labour data.
• The S&P 500 ended 1.1 percent higher while the Nasdaq Composite erased losses for the week.
• News of top U.S. and Chinese negotiators speaking as early as next week aided sentiment.
• Filings for unemployment continued at historically high levels but were lower than last week.
• Yield on the two-year treasury fell to a record low before stabilising.
• The Bloomberg Dollar spot Index fell 0.4 percent.
• West Texas Intermediate crude fell 3 percent to $23.25 per barrel. The commodity is trading with gains in early Asian trade.

Catch all the global markets action live, here.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.83 percent to 9,272 as of 7:45 a.m.

Asian markets are rising on Friday morning with markets in Japan, Hong Kong, China, South Korea and Australia seeing gains of close to 1 percent. Futures on the Dow Jones are currently trading higher by 220 points.

The U.S. Dollar is declining as compared to other currencies while the Aussie is higher after the Reserve Bank of Australia reiterated its projection for an economic contraction this year and a rebound in 2021.

West Texas Intermediate crude is up 2.4 percent to $24.13 per barrel while gold was little changed.

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