Sensex, Nifty Post Best Quarterly Advance Since 2009
Catch all live updates on share prices, index moves, corporate announcements and more from the Sensex and Nifty, today.
Closing Bell: A Rangebound Session
Indian equity markets ended lower for the second day but capped their best quarterly return since 2009.
Both the S&P BSE Sensex and the NSE Nifty 50 index ended little changed after trading in a narrow range throughout the session.
The Sensex ended at 34,915 while the Nifty managed to hold on to the 10,300 mark, ending at 10,302.
Among the sectoral indices, the Nifty Auto index outperformed in today's session, ending with gains of 1.1%.
Among the laggards, the Nifty PSU Bank and the Nifty Media indices fell 1.7% each while the Nifty Pharma index fell 1.5%. The Nifty Realty index fell for the fifth day in a row.
Broader markets too ended flat. The Midcap index fell 0.2% while the smallcap index ended with losses of 0.6%.
The India Volatility Index ended 0.4% higher at 29.03.
Market breadth was in favour of the laggards. 1,020 stocks on the NSE ended with losses while 786 ended with gains.
Strong Traction In Cement Stocks
Buzzing Stocks: Parag Milk Foods
- Among the worst performers on the Nifty 500 index
- Falls as much as 9.8% to Rs 94
- Down for the third straight day
- Longest losing streak in a month
- Down 11% in the last three sessions
- CEO Venkat Shankar resigned on Monday with immediate effect
- Today's volumes are 2.3 times higher than its 30-day average
- Still remains 100% above its 52-week low of Rs 48.5 on March 19, 2020
- Seven out of the 10 analysts tracking the stock have a buy recommendation; 0 sell calls
- Return potential for the stock as per Bloomberg data is 110%
Earnings Reaction: Shalimar Paints Q4FY20
- Sales down 7% to Rs 83.43 crore
- Net loss narrows to Rs 22.3 crore from Rs 43.3 crore
- Ebitda loss flat at Rs 33.74 crore
- Resumed operations in a phased manner
- No significant impact on financials as on March 31, 2020
- Do not see any medium to long-term risks in ability to continue as a going concern
- Numbers are consolidated and compared on a year-on-year basis
Shares trade 3.7% lower at Rs 62.75, post the announcement.
All Constituents Of The Pharma Index Decline
Earnings Reaction: Cera Sanitaryware Q4FY20
- Revenue down 29% to Rs 297.8 crore
- Net profit down 8% to Rs 35.65 crore
- Ebitda down 36% to Rs 42.25 crore
- Ebitda margin at 14.2% from 15.9%
- Deferred tax gain of Rs 13.55 crore this quarter
- No medium to long-term risk in the company's ability to recover carrying amount of assets in the future
- All numbers are consolidated and compared on a year-on-year basis
Stock Update: Godrej Consumer Products
- Gains for the 12th straight day
- Best gaining streak on record
- Trades at the highest level in five months
- Gained as much as 1.5% today to Rs 697.7
- Up 14% in the last 12 trading sessions
- Stock trades in overbought territory with Relative Strength Index (RSI) at 73
- Has gained 63% from its 52-week low of Rs 425.1 on March 23, 2020
- 20 out of the 39 analysts tracking the stock have a buy recommendation
- The stock trades 10.2% above its 12-month consensus price target of Rs 622.56, implying a negative return potential
Markets At 2:10 P.M.
- Benchmark indices remain rangebound
- Nifty up 0.47% at 10,360
- Sensex up 0.5% at 35,147
- Nifty Bank up 0.32% at 21,426
- Nifty Midcap Index up 0.3%
- Nifty Smallcap Index unchanged
- India Volatility Index up 0.3% to 29
- Nifty Pharma (down 1.1%), Nifty PSU Bank (down 0.9%) and Nifty Media (down 0.6%) remain the sectoral laggards
- Nifty Auto is the top sectoral gainer; up 1.4%
- Nifty Metal off the day's high; up 1%
- Shree Cement is the top Nifty gainer; up 4%
- BPCL is the top Nifty laggard; down 1.9%
- 892 stocks on the NSE trade with gains while 874 decline
Money Market Update
The rupee has ended with gains for the fourth straight day, marking its longest winning streak in two months.
The currency ended at 75.50 against the U.S. Dollar as compared to Monday's close of 75.58.
For today's session, the rupee emerged as the second best performing currency in Asia, behind the Chinese Renminbi.
For the April to June period, the currency has ended flat with a positive bias. The rupee has ended the quarter as the third worst performer in Asia behind the Hong Kong Dollar and the Japanese Yen.
Earnings Estimate: ONGC Q4FY20
- Revenue seen 13.3% lower at Rs 20,557 crore
- Net profit seen 37.8% lower at Rs 2,581 crore
- Ebitda seen 24% lower at Rs 9,348 crore
- Ebitda margin seen at 45.5% from 51.9%
- Net realisations seen at $51 per barrel from $58.24 per barrel
- All estimates are standalone and compared on a sequential basis
Factors At Play For ONGC:
- Ebitda likely to be lower due to lower crude realisation and lower value added products.
- Gas prices were steady on a sequential basis
- Overall crude sales volumes may fall 4% to 5.6 MT
- Lower crude prices and gas production to impact topline
S&P Global Ratings Sees A Sharp Jump In Bad Loans
The Covid-19 pandemic may set back the recovery of India's banking sector by years, which can impact credit flows and ultimately the economy, according to S&P Global Ratings.
In our base case, we expect the nonperforming loans to shoot up to 13%-14% of total loans in the fiscal year ending March 31, 2021, compared with an estimated 8.5% in the previous fiscal year.Deepali Seth-Chhabria, S&P Global Ratings
The ratings agency also believes that the impact on NBFCs will be greater than that on banks.
The note also said that while asset quality of Indian banks was improving over the last 18 months, the pandemic has derailed the rehabilitation process.
Active Stock Options
- Tata Steel's 340 Call: Premium up 42.2% to Rs 13.1. The contract has added 93,500 shares in OPen Interest.
- HDFC's 1,800 Call: Premium up 30.6% to Rs 62.55. The contract has added 9,600 shares in Open Interest.
- HDFC Bank's 1,100 Call: Premium down 12.4% to Rs 30. The contract has added 84,700 shares in Open Interest.
Buzzing Stock: Sonata Software
- Among top performers on the Nifty Midcap Index
- Gains as much as 6.6% to Rs 248.7
- Biggest single-day gain in two months
- Trades at the highest level in over three months
- Up for the third straight day
- Longest winning streak in three weeks
- Has gained 12% in the last three trading sessions
- Today's volumes are 5.9 times higher than its 30-day average
- Breaks above its 100-Day Moving Average at 239
- Has gained 69% from its 52-week low of Rs 147 on March 24, 2020
- Five out of the seven analysts tracking the stock have a buy recommendation; 0 sell calls
- The stock is trading around its 12-month consensus price target of Rs 242
Flat Start In Europe
European markets have begun the final trading day of the quarter on a sombre note.
The Stoxx 600 has opened little changed with technology and industrial stocks leading the gains. Media and oil stocks are underperforming.
Most Asian markets have ended with gains while futures on the Dow Jones have reversed gains to trade lower by 70 points.
Brent Crude currently trades 0.8% lower at $41.37 per barrel while gold is unchanged at $1,772.8/Oz.
Let's take a look at how benchmark indices across Europe have opened:
- Euro Stoxx 50 up 0.4% at 3,246
- DAX up 0.4% at 12,283
- CAC up 0.3% at 4,961
- FTSE 100 unchanged at 6,226
- IBEX 35 up 0.2% at 7,286