Sensex, Nifty Erase Most Of Tuesday’s Losses; End With Gains

• Benchmark indices recover from day's low; erase most of Tuesday's losses
• Nifty ends 0.7% higher at 10,116
• Sensex ends 0.86% higher at 34,247
• Nifty Bank ends 1.8% higher at 21,100
• Nifty Midcap Index ends 1.2% higher
• Nifty Smallcap Index ends 0.5% higher
• India Volatility Index ends 2.81% lower at 29.35
• Nifty PSU Bank Index ends as top sectoral gainer; up 3.5%
• Nifty Realty Index ends with gains of 2%
• Nifty Auto ends as the top sectoral laggard; down 1.1%
• Nifty Metal (down 0.6%) and Nifty Media (down 0.3%) among other sectoral laggards
• IndusInd Bank ends as the top Nifty gainer; up 10%
• Hero MotoCorp ends as the top Nifty laggard; down 3.5%
• 1,120 stocks on the NSE end with gains while 707 end with losses

Indian equity markets erased most of Tuesday's declines, ending with gains after a sharp surge in the last few minutes of the trading day.

The S&P BSE Sensex ended 0.86% higher at 34,247 but remained 100 points off the day's high. The NSE Nifty 50 however, ended with gains of 0.7% at 10,116, 30 points off the day's high.

The PSU Banking index was the outperformer among the sectoral indices, ending with gains of 3.5%. The Nifty Realty and the Nifty Bank ended with gains of close to 2%.

Among the underperforming sectors were Nifty Auto (down 1.1%), Nifty Media (down 0.3%) and Nifty Metal (down 0.6%).

Market breadth remained in favour of the advances with 1,120 stocks on the NSE ending with gains while 707 ended with losses.

• Second best performer on the BSE Midcap Index
• Gains as much as 16.7% to Rs 25.8
• Trades at the highest level in three months
• Has gained in nine out of the last 12 trading sessions
• Declined only once in the last 12 trading sessions (Unchanged on May 28 and June 4)
• Gains of 45.7% in the last 12 trading sessions
• Today's volumes are 5.7 times higher than its 30-day average
• Prices are trading higher than its 100-Day Moving Average of Rs 23.9
• Stock trades in overbought territory with Relative Strength Index (RSI) of 74
• 2 out of the 8 analysts tracking the stock have a buy recommendation; 1 sell call
• Return potential of the stock as per Bloomberg data is 13.9%

• The company's Bilaspur plant has produced 2,419.7 MT of calcined petroleum coke
• Goa plant has produced 6,464.7 MT of calcined petroleum coke
• Paradeep plant has produced 10,361 MT of calcined petroleum coke

Shares gained as much as 10% to Rs 245.45, post the announcement. The stock has gained in four out of the last five trading sessions.

The state-run lender has cut its Marginal Cost of fund-based Lending Rate (MCLR) by 15 basis points across all tenors.

• Overnight and one-month MCLR has been revised to 7.2% from 7.35%
• Three-month MCLR now at 7.35% from 7.5%
• Six-month MCLR at 7.5% from 7.65%
• One-year MCLR now at 7.65% from 7.8%

Shares are off the day's high, trading with gains of 1.4% after gaining as much as 3.5% in early trade.

• Revenue up 2.2 times to Rs 461.7 crore
• Net profit up 37.2% to Rs 44.3 crore
• Ebitda up 5.3% to Rs 55.9 crore
• Ebitda margin narrows to 12.1% from 25.1%
• All numbers are standalone and compared on a year-on-year basis

Shares were locked in an upper circuit of 10% to Rs 23.95, post the announcement and now trade 8.7% higher at Rs 23.70.

Private Equity investment in Indian real estate fell 93% in the first five months of 2020 and may stay subdued over the year due to Covid-19, Bloomberg News reports quoting a Knight Frank report.

Only five deals worth $238 million were closed, according to the real estate consultancy firm. Investments of funds into Indian real estate has declined from a peak of $8.8 billion in 2018.

The real estate index is among the top performers in today's session, trading with gains of over 1%.

• IndusInd Bank's 500 Call: Premium up 39.2% to Rs 33.75. The contract has shed 14,800 shares in Open Interest.
• TCS' 2,100 Call: Premium up 46.5% to Rs 68.8. The contract has shed 7,750 shares in Open Interest.
• Reliance Industries' 1,600 Call: Premium up 18.2% to Rs 34.45. The contract has shed 1.1 lakh shares in Open Interest.

• Benchmark indices continue to fluctuate
• Nifty up 0.6% at 10,106
• Sensex up 0.7% at 34,194
• Nifty Bank up 0.8% at 20,891
• Nifty Midcap Index up 1%
• Nifty Smallcap Index up 0.35%
• India Volatility Index down 1.3% to 29.81
• Nifty Auto (down 0.5%), Nifty Media (down 0.2%) and Nifty Metal (down 0.3%) are the sectoral laggards
• Nifty Realty and Nifty PSU Bank Index are the top sectoral gainers; up over 2.2% each
• IndusInd Bank remains the top Nifty gainer; up 3.8%
• Hero MotoCorp is the top Nifty laggard; down 3.5%
• 1,097 stocks on the NSE trade with gains while 699 decline

• Revenue up 18.1% to Rs 227.6 crore
• Net profit up 45.5% to Rs 39 crore
• Ebitda up 39.2% to Rs 45.8 crore
• Ebitda margin widens to 20.1% from 17.1%

Shares are trading 4% higher at Rs 617.4. The stock had surged as much as 10% post the announcement of results.

The rupee gave up most of its intraday gains to end little changed yet again in today's trading session.

The currency ended at 75.59 against the U.S. Dollar, as compared to Tuesday's close of 75.61. It had made an intra-day high of 75.41.

Today's performance made rupee the third worst performing Asian currency after the Indonesian Rupiah and the Hong Kong Dollar.

Yield on the 10-year Government bond ended flat at 5.773%, which was also the level at which it commenced trade.

• Trades at an all-time high
• Gains as much as 10% to Rs 199
• Biggest single-day gain in two months
• Snaps a three-day losing streak
• Today's volumes are 5.5 times higher than its 30-day average
• Stock trades in overbought territory with Relative Strength Index (RSI) at 76
• Has more than doubled from its 52-week low of Rs 84 on July 26, 2019
• 12 out of the 13 analysts tracking the stock have a buy recommendation; 1 sell call
• Return potential of the stock as per Bloomberg data is 9.1%

The company reported a 96.1% decline in its net profit as compared to the previous year to Rs 48.6 crore for the March quarter.

Revenue of the company also fell 88.7% compared from the previous year to Rs 313.1 crore.

Revenue from the polyester segment stood at Rs 233.45 crore while that from textiles stood at Rs 34.59 crore.

The board has also recommended a dividend of 20 paisa per share.

Shares fell as much as 8% to Rs 63.1, post the announcement. The stock snapped a nine-day gaining streak on Tuesday - which was its longest since September 2017.

• Crude throughput of refineries cross 80% as consumption of all petroleum products almost doubled in May 2020.
• Growth is yet to catch up by 24-26% for all the products.
• Demand for black oils and specialty products like fuel oil, bitumen, petcoke and sulphur has also shown marked improvement.
• Polypropylene plant at the Paradip refinery has gone online.
• On track to spend the approved capex of Rs 26,143 crore for the financial year.
• Work on almost 250 major projects has restarted on ground.

Refinery projects where work has commenced:

• Capacity expansion at Barauni
• Ethylene glycol project at Paradip
• Expansion of Naptha cracker at Panipat
• IndMax unit at Bongaigaon
• Paradip-Hyderabad products pipeline
• Augmentation of Paradip-Haldia-Durgapur LPG Pipeline

Shares are off the day's low and trade 0.2% lower at Rs 90.45 and are down for the second straight day.

European benchmarks look to register their first day of gains this week, opening higher in mid-week trade.

The Stoxx 600 has opened 0.5% higher led by banking and insurance stocks.

Asian markets have ended mixed ahead of the Federal Reserve rate decision later tonight while futures on the Dow Jones are trading higher by 130 points.

Brent Crude for the August contract fell 1.3% to $40.66 per barrel while Gold was little changed at $1,718.3/Oz.

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

• Euro Stoxx 50 up 0.7% at 3,343
• DAX up 0.8% at 12,720
• CAC up 0.7% at 5,129
• FTSE 100 up 0.25% at 6,351
• IBEX 35 up 0.65% at 7,806

• Rice milling and processing units running at 70-80% capacity compared to last year.
• Going ahead with expansion plans and have begun work on the same.
• Impact on profitability does not seem to be material.
• Balance sheet and liquidity position is strong.
• Online sales have seen a significant growth.
• Witnessing a sudden increase in requirement from the retail channel.
• Seen a quantum rise in volume dispatches to online channels to the extent of two times the usual.
• Significant loss seen in Hotels, Restaurants and Catering segment.

Shares are recovering from the day's low after falling as much as 7.9% to Rs 233. The stock had a three-day gaining streak until Tuesday and has gained in eight out of the last 10 trading sessions.

The company’s Board of Directors have approved the raising of funds amounting to not more than Rs 150 crore.

The fund raise will be subject to necessary approval from shareholders, statutory and regulatory authorities, the company said in an exchange filing.

The fund raise will be done through an issue of equity shares via a rights issue, QIP or on a preferential allotment basis or through ADRs, GDRs, FCCBs and ECBs or any other combination thereof.

ICICI Securities has been appointed as the sole lead manager for the fund raise.

Shares snapped a three-day gaining streak and are down 1.65% at Rs 89.35.

• Lockdown has had an adverse impact on the revenue
• Impact on gross margin and Ebitda is disproportionate as fixed costs continued.
• Office and warehousing operations have resumed.
• Revenue is expected to be muted for a few months.
• Profitability situation may remain challenging till the situation normalises.
• Made additional provisions in the books to cover incremental risks which may arise.
• Decisions on new stores will be recalibrated.
• Do not have any debt obligations as of March 31, 2020
• Paying all statutory dues and other commitments on a timely basis.

Shares are trading 1% lower at Rs 390 and are off the lowest point of the day.

• Among the top performers on the Nifty 500 Index
• Gains as much as 8.6% to Rs 157.6
• Biggest single-day gain in two months
• Trading at the highest level in nearly four months
• Up for the second straight day
• Has gained in eight out of the last 10 trading sessions
• Gained 23.7% in the last 10 trading sessions
• Today's volumes are 6.7 times higher than its 30-day average
• Crosses both 100 and 200-Day Moving Average at 145 and 147 respectively in today's session
• Trades in overbought territory with Relative Strength Index (RSI) at 72
• Has nearly doubled from its 52-week low of Rs 81 on March 25, 2020

Coal India is persuading consumers to switch to domestic coal, as its shipments dwindle owing to lower demand, Bloomberg news reports.

The state-run miner is looking to replace coal imports by non-power consumers like cement, sponge iron, fertiliser and steel as well as power plants designed to burn mainly domestic coal.

Coal India says that such consumers imported 150 million tonnes of coal in the year ending March.

Many power plants are restricting purchases from Coal India owing to high inventory levels.

Coal India's shipments in May fell 23.3% while output fell 11.3% compared to last year.

• Benchmark indices continue to fluctuate
• Nifty up 0.3% at 10,075
• Sensex up 0.36% at 34,079
• Nifty Bank up 0.3% at 20,789
• Nifty Midcap Index up 0.5%
• Nifty Smallcap Index trades little changed
• India Volatility Index down 0.7% to 29.98
• Nifty Media remains the top sectoral laggard; down 1.75%
• Nifty Auto (down 0.6%) and Nifty Metal (down 0.3%) were the other two sectoral laggards
• Nifty Realty Index is the top sectoral gainer (up 0.9%)
• Vedanta is the top Nifty gainer; up 2.8%
• GAIL remains the top Nifty laggard; down 3%
• 972 stocks on the NSE trade with gains while 768 decline

The Directorate General of Foreign Trade has restricted export of some diagnostic kits including the VTM kits and reagents, Bloomberg News reports citing a statement from India's trade ministry.

The statement adds that the export of certain diagnostic instruments, apparatus including swabs as well as probe and primers which are specific for Covid-19 testing will also be restricted.

Other items in the list of 'restricted' items include:

• 15 ml falcon tube or cryovials
• Silicon Columns
• Poly adenylic Acid or Carrier RNA
• Reverse Transcriptase Enzyme
• Deoxy nucleotide triphosphates

The data analytics and solutions company reported an 8% decline in its topline on a sequential basis while margins had a contraction of 600 basis points.

The company expects Q1FY21 to be the bottom in terms of both revenue and margins. Forex gains aided the company's profit while operational performance was below analyst projections.

Supply and demand side hit had an impact on onshore revenues which declined 4.6% on a sequential basis.

Brokerage firm Emkay believes that the Covid-19 pandemic will delay the reversal in the company's constantly deteriorating financials since FY17 with earnings likely to decline in FY21 as well.

Shares fell as much as 5.4% to Rs 406.1 and are trading lower for the second straight day.

The oil refiner reported a net loss of Rs 1,887.4 crore during the quarter ending March. This despite a deferred tax reversal of Rs 832.8 crore in the quarter gone by.

The company reported an Ebitda loss of Rs 2,418.4 crore while Gross Refining Margins stood at a negative $4.52 per barrel.

Lower demand for crude and petroleum products impacted the operating performance of the company.

Higher raw material costs and other expenses also contributed to the loss.

Shares are off the day's low, after falling as much as 6.2% in early trade. Until Tuesday, the stock had a three-day gaining streak.

The FMCG company informed the exchanges that its Managing Director and CEO, Vivek Gambhir will step down from his position on June 30, owing to personal reasons.

The exchange filing stated that Gambhir's resignation has been accepted by the Board of Directors. However, he will remain on the board as a Whole-Time Director till September 30, 2020.

Nisaba Godrej, currently serving as a Whole-Time Director has been appointed as the company's new Managing Director till the completion of her term on September 30, 2022.

Godrej will also be the Chairperson of the company's board till March 31, 2022.

Shares fell as much as 4.4% to Rs 630.2, snapping a two-day winning streak.

The company launched a QIP issue on June 9 in order to raise funds. The floor price for the issue is set at Rs 66.72 per share - a 6% discount to Tuesday's closing price.

The exchange filing stated that the company may offer a discount of not more than 5% on the floor price calculated for the issue.

Bloomberg News had reported earlier that the company plans to launch a QIP issue to raise around $100 million.

Shares gained as much as 5.6% to Rs 75, post the announcement.

The staffing and human resources services company reported a net loss of Rs 29.4 crore in the quarter ending March, as compared to a net profit of Rs 26 crore during the same period last year.

The company also created a provision of Rs 6.2 crore with regards to Covid-19.

It also had a MAT credit of Rs 49.6 crore on account of moving to the new tax regime.

Ebitda margins narrowed further to 1.5% while average realisation per associate in general staffing rose to Rs 748 per month from Rs 714 per month.

Shares fell as much as 6.7% to Rs 1,670 and have declined in four out of the last five trading sessions.

• Nifty June futures add 5.4% and 5.72 lakh shares in Open Interest
• Nifty Bank June futures add 12.9% and 2.16 lakh shares in Open Interest

Nifty: June 11 Expiry

• 10,000 Put: Premium falls 46.4% to Rs 38.3. The contract has added 11.83 lakh shares in Open Interest.
• 10,100 Call: Premium up 55% to Rs 94.75. The contract has added 6.51 lakh shares in Open Interest.
• 10,200 Call: Premium up 50% to Rs 48.35. The contract has added 10.67 lakh shares in Open Interest.

Nifty Bank: June 11 Expiry

• 21,500 Call: Premium up 28.4% to Rs 134.05. The contract has added 2.63 lakh shares in Open Interest.
• 21,000 Call: Premium up 38.2% to Rs 324. The contract has added 2.06 lakh shares in Open Interest.
• 20,500 Put: Premium down 46.3% to Rs 150.35. The contract has added 3.05 lakh shares in Open Interest.

The pharma company informed the exchanges that it has entered into a collaboration with Refana Inc. for a Covid-19 vaccine.

Under the agreement, Panacea will make the vaccine accessible around the world through a Joint Venture company that will be based in Ireland.

Both the companies will undertake sales and distribution of the vaccine in its respective territories.

Shares gained as much as 18.4% to Rs 201, post the announcement.

• Top performer on the Nifty Midcap index
• Gains as much as 12.2% to Rs 625
• Biggest single-day gain since January 2018
• Snaps two-day losing streak
• Trades at the highest level in over four months
• Has gained in eight out of the last 10 trading sessions
• Up 43% in the last 10 trading sessions
• Today's volumes are 4.6 times higher than its 30-day average
• Stock in overbought territory with Relative Strength Index (RSI) at 77
• Trades near its 52-week high of Rs 639 on January 23, 2020
• Has gained over 150% from its 52-week low of Rs 234.35 on March 30, 2020
• 11 out of the 13 analysts tracking the stock have a buy recommendation; 1 sell call
• The stock has crossed its 12-month consensus price target of Rs 606 in today's session

• Benchmark indices fluctuate between the day's high and day's low
• Nifty little changed at 10,052
• Sensex up 0.1% at 33,995
• Nifty Bank up 0.34% at 20,794
• Nifty Midcap Index trades little changed
• Nifty Smallcap Index down 0.5%
• India Volatility Index down 0.3% to 30.11
• Nifty Media Index is the top sectoral laggard; down 1.6%
• Nifty Auto (down 0.6%), Nifty Metal (down 0.9%) and Nifty PSU Bank (down 0.3%) are the other sectoral laggards
• IndusInd Bank is the top Nifty gainer; up 3.4%
• GAIL is the top Nifty laggard; down 4.1%
• 872 stocks on the NSE are trading with gains while 773 decline

The rupee has opened with gains in today's trading session after ending with a negative bias on Tuesday.

The currency opened at 75.50 against the U.S. Dollar as compared to Tuesday's close of 75.61.

In the bond markets today, the traders will look forward to the sale of treasury bills worth Rs 45,000 crore.

The gold financing company has informed the exchanges that the committee of its Board of Directors has approved the issuance of Non-Convertible Debentures worth Rs 250 crore.

The NCD's will be rated, secured, redeemable and will be issued on a private placement basis, the company said.

Shares gained as much as 3.1% to Rs 143.4. The stock is trading at a three-month high and is higher for the fourth straight day. It has gained in 10 out of the last 11 trading sessions.

The drugmaker informed the exchanges that it will be acquiring 21.85% stake in digital solutions company GoApptive.

The acquisition will be done in two stages for a cash consideration of Rs 9 crore, according to its exchange filing.

GoApptive offers digital solutions for customer relationship management, patient support & healthcare data analytics, the statement said.

The first stage of the acquisition will be done for Rs 5.8 crore while the second stage will have a cash consideration of Rs 3.2 crore. The company expects both stages to be completed by October 31, 2020.

Shares gained as much as 1.4% to Rs 649 and are up for the second straight day.

• Trading at an all-time high
• Gains as much as 3.1% to Rs 1,215
• Up for the fourth straight day
• Longest winning streak in two weeks
• Gained 12% in the last four trading sessions
• Trading in overbought territory with Relative Strength Index (RSI) at 77
• Has more than doubled from its 52-week low of Rs 476.1 on March 24, 2020

Indian equity markets opened with gains after pausing a strong surge over the last 10 sessions on Tuesday.

The S&P BSE Sensex opened 0.2% higher at 34,029 while the NSE Nifty 50 index opened at 10,072, up 0.26%. Both benchmark indices fell 1.2% to end near the day's low on Tuesday.

Most sectoral indices have opened flat with no noticeable moves. The Nifty Auto and Nifty Pharma index have opened with a negative bias.

Market breadth was in favour of the advances. 1,077 stocks on the NSE opened with gains while 401 declined in the early minutes of trade.

Within the global markets, Asian markets remain mixed while futures on the Dow Jones are off the day's high, trading higher by 130 points.

• Global cases cross 7.2 million
• Death toll rises to 4.11 lakh
• Eiffel Tower to reopen after the longest shutdown since World War II
• Singapore conditionally approves Remdesivir to treat Covid-19
• South Korea confirms 50 new cases
• Mexico reports 4,199 additional cases
• China reports three new cases where all were imported
• Brazil continues to have second highest cases in the world

• Wockhardt & Dr Reddy's: Payment terms of the deal announced in February have been revised. Rs 1,483 crore will be paid on the closing date of transfer, while Rs 67 crore will be kept in an escrow account and will be paid subject to some closing adjustments. Rs 300 crore will be held back to assess the Covid-19 impact. If sales cross Rs 480 crore in the next 12 months, then Dr Reddy's will have to pay twice of sales over Rs 480 crore. For 9MFY20, the said products earned a revenue of Rs 377 crore. The business contributed Rs 594 crore in FY19. The transfer of the Baddi facility is pending due to Covid-19. Wockhardt has hence, for the interim period, entered into an arrangement for Dr Reddy’s to manage the Baddi facility.
• JM Financial: Launches QIP issue to raise funds. Issue price of Rs 66.72 is a 6% discount to the closing price on June 9. Bloomberg News reports that the sum raised through the QIP issue will be around $100 million.
• Minda Corp: German arm has filed for insolvency due to liquidity crisis. The move is expected to enhance company’s Ebidta by 2% and RoCE by 5%.
• Genral Insurance, Auto Stocks: The Insurance Regulatory and Development Authority of India (IRDAI) has withdrawn the long-term package cover of three to five years for Motor Own Damage for new cars and new two-wheelers from August 1.
• Godrej Consumer Products: Vivek Gambhir to resign as MD and CEO from June 30. Nisaba Godrej appointed as the new MD and Chairperson till September 2022.
• Oil India: Clearing operations were on at the well site in Assam after the well caught fire. There is no casualty reported. The situation demands arrangement of large quantities of water, installation of high discharge pumps and removal of debris. The entire operation will take about 4 weeks.

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

• Benchmark indices end lower for the day.
• S&P 500 ends 0.8% lower.
• Nasdaq briefly scaled the 10,000 mark, led by Apple.
• Small-cap shares underperformed after gaining 10% in six June sessions.
• U.S. Dollar declined for the ninth straight day - longest since 2006.
• Sentiment towards U.S. equities swings towards extreme confidence from extreme fear in less than three months.
• Federal Reserve poilcy meet begins. Decision to be announced tonight.
• Bloomberg Dollar Spot index fell 0.1%.
• Yield on the 10-year treasury fell five basis points to 0.82%.
• West Texas Intermediate crude fell 1.6% to $38.8 per barrel.

Get all the live action from the global markets here.

Good Morning!

Indian equity markets took a pause on Tuesday, falling only for the third time in last 11 trading sessions, as cues from across the globe turned adverse.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.9% to 10,106 as of 7:55 a.m.

Asian equities are mixed in mid-week trade as investors take a pause after a rally that has added $21 trillion to global equity markets. Benchmark indices in China and Japan have retreated, while those in Hong Kong, Australia and South Korea have reversed losses.

Futures on the Dow Jones are trading higher by 210 points.

Treasuries were steady ahead of the FOMC decision later Wednesday, while West Texas Intermediate crude fell 1% to $38.55 a barrel.

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