Sensex, Nifty Post Losses For Two Straight Weeks

Indian equity markets had a lacklustre trading session as investors remained in a wait-and-watch mode ahead of Finance Minister Nirmala Sitharaman's third media address in as many days to announce measures to combat Covid-19.

The S&P BSE Sensex as well as the NSE Nifty 50 index ended little changed at 31,101 and 9,138 respectively. However, both the indices pared initial losses.

The Sensex gained over 320 points from the day's low, while the Nifty gained close to 100 points from 9,050 which was the lowest point of the day.

For the week, the Nifty ended 1.32 percent lower with auto stocks being the top performers after Vedanta. The Sensex ended 1.7 percent lower for the week, with the top three gainers being Auto stocks.

Among sectoral indices in today's session, the Nifty Metal index ended as the only sectoral gainer, ending higher by 1.4 percent. Other indices ended with losses between 0.1-1.7 percent.

• Buy United Spirits above Rs 544 for target of Rs 595 and stop loss of Rs 525
• Buy Ramco Cement above Rs 573 for target of Rs 625 and stop loss of Rs 555

• Buy Bharat Electronics for target of Rs 75-90 and stop loss of Rs 60
• Buy Coal India for target of Rs 145-150 and stop loss of Rs 125
• Sell 2,300 Call of Bajaj Finance at Rs 80 for target of the entire premium and stop loss of Rs 130

The onset of India's monsoon season may be delayed as per the Indian Meteorological Departemnt (IMD). As compared to the normal monsoon date of June 1, the rains may hit the coast of Kerala on June 5, according to the IMD.

On the other hand, private weather forecaster Skymet has predicted that rains will hit the southern most tip of the country on May 28. The IMD's forecast has a margin error of four days.

The IMD has predicted in early April that this year's monsoon will be 100 percent of the Long Period Average (LPA). Monsoon in 2019 was 10 percent more than normal, the highest since 1994.

The company has informed the exchanges that it has resumed partial operations at its steel plant in Titilagarh, Odisha with minimum manpower.

Shares gained as much as 2.7 percent to Rs 189.50.

• Benchmark indices set to post weekly losses
• Nifty down 0.35 percent at 9,111
• Sensex down 0.46 percent at 30,983
• Nifty Bank down 1.5 percent at 18,780
• Nifty Midcap Index trades little changed
• Nifty Smallcap Index down 0.2 percent
• India Volatility Index flat at 38.18
• Nifty FMCG index recovers losses, trades flat
• Nifty Metals index extends gains; up 2.3 percent
• Nifty Media remains top sectoral loser; down 1.9 percent
• BPCL remains top Nifty gainer; up 4.3 percent
• Mahindra & Mahindra remains the top Nifty loser; down 4.4 percent
• 803 stocks on the NSE trade with gains while 903 end with losses

The rupee has ended absolutely flat, keeping up with its trend through the week. The currency ended at 75.57 against the U.S. Dollar, nearly the same level of 75.56 at which it ended on Thursday.

The weekly performance of the local currency too was flat. It ended last Friday's trading session at 75.55 against the greenback.

A bunch of Emerging currencies have managed to outperform the rupee, including the Japanese Yen, Thai Baht and the Indonesian Rupiah among others.

For the week, the rupee was among the better performers, with only the Thai Baht, Indonesian Rupiah and the Hong Kong Dollar faring better than the currency.

Yield on the 10-year bond ended at 5.77 percent as compared to Thursday's close of 5.78 percent.

• Larsen & Toubro's 900 Call: Premium falls 27.4 percent to Rs 22.9. The contract has added 59,250 shares in Open Interest.
• Reliance Industries' 1,500 Call: Premium falls 11 percent to Rs 29.8. The contract has added 4.92 lakh shares in Open Interest.
• Bajaj Finance's 2,000 Put: Premium rises 13.5 percent to Rs 119. The contract has added 1.18 lakh shares in Open Interest.

• Among the top performers on the Nifty 500 index
• Gains as much as 7.5 percent to Rs 437.8
• Surges to the highest level in over two months
• Up for the third straight day
• Longest winning streak in two weeks
• Up 10 percent in the last three sessions
• Today's volumes are 5 times higher than its 30-day average
• Trades near its 200-Day Moving Average of Rs 448
• Has gained 75 percent from its 52-week low of Rs 250.5 on March 24, 2020
• All 4 analysts tracking the stock have a buy recommendation
• Return potential of the stock as per Bloomberg data is 41.6 percent

Shares of the multiplex player are trading at their lowest level since October 2018, after falling as much as 4.3 percent to Rs 192.5 in today's trading session.

The company expressed dissatisfaction at the news of a film, starring a leading actor, will be released directly on a streaming platform.

The Producers Guild of India has responded to the comments, citing them as 'abrasive and unconstructive messaging,' adding that releasing the film online was a more viable option in this uncertain times.

Apart from Inox, shares of PVR too were trading at a four-year low, down 5 percent to Rs 844.

European markets have opened on a positive note, aiming to pare their largest weekly drop since mid-March.

The Stoxx 600 index has opened 1.4 percent higher with all sectors gaining. Mining, Oil and travel stocks are rising while healthcare, personal and household goods companies are underperforming.

Futures on the Dow Jones are trading higher by 35 points, Brent Crude is up 2.7 percent to $31.98 per barrel, while Gold is little changed at $1,735.67/Oz.

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

• Euro Stoxx 50 up 1 percent to 2,788
• DAX up 1.3 percent to 10,471
• CAC up 1 percent to 4,315
• FTSE 100 up 1.1 percent to 5,805
• IBEX 35 up 0.9 percent to 6,607

• Worst performer on the Nifty Smallcap index
• Falls as much as 8.5 percent to Rs 39.25
• Biggest single-day fall since March 23, 2020
• Snaps three-day losing streak
• Had gained 15.3 percent in the previous 3 trading sessions
• Three-day gaining streak was the longest in a month
• Today's volumes are 1.6 times higher than its 30-day average
• The stock has broken below its 100-Day Moving Average of Rs 41.43
• Has nearly doubled from its 52-week low of Rs 22 on March 25, 2020
• Fertiliser stocks are under pressure in today’s trading session

Billionaire Rahul Bhatia-operated Interglobe Enterprises, the biggest shareholder of budget carrier IndiGo has signed an agreement to participate in Virgin Australia's sale process, the company said in a statement to Bloomberg News.

The company said that it is bound by the confidentiality requirements of the agreement for not divulging further details.

Shares fell as much as 3.1 percent to Rs 941, post the announcement and are down for the third straight day.

• Benchmark indices trade sideways, set for weekly losses
• Nifty down 0.7 percent at 9,079
• Sensex down 0.8 percent at 30,865
• Nifty Bank down 1.5 percent at 18,780
• Nifty Midcap Index down 0.4 percent
• Nifty Smallcap Index down 0.5 percent
• India Volatility Index down 0.2 percent to 38.07
• Nifty Metal index remains the only sectoral gainer; up 0.9 percent
• Nifty Auto, Nifty I.T., Nifty Metal and NIfty PSU Bank fall over 1.5 percent
• Nifty Realty recovers from the day's low; now down 0.2 percent
• BPCL remains the top Nifty gainer; up 3 percent
• Mahindra & Mahindra remains the top Nifty laggard; down 5.9 percent
• 696 stocks on the NSE trade with gains while 972 trade with losses

19 lakh shares of the power company exchanged hands in a single large trade on the National Stock Exchange, as per Bloomberg data.

Buyers and sellers in the trade were not immediately known.

Shares recovered from as low as 1.6 percent to trade little changed at Rs 161.10.

The Vadodara-based pharma company has informed the exchanges that it has received the U.S. FDA approval for Doxycycline Hyclate Tablets, 100 mg.

The said drug is used in the treatment and prevention of infections that are proven or strongly suspected to be caused by susceptible bacteria, as per the company's press release.

The approved drug had an estimate market size of $53 million in the U.S. for the 12-months ending December 2019 as per the IQVIA.

Shares gained as much as 5.9 percent to touch an all-time high of Rs 896 in today's trading session.

The company has informed the exchange that it is considering a fund raise via rated, listed, secured, redeemable Non-Convertible Debentures (NCDs) worth Rs 1,000 crore.

The proposal will be considered at the company's board meeting to be held on May 20, 2020. A resolution for the same was passed by the board of directors on March 27 this year.

Shares are trading 0.8 percent lower at Rs 83.15, down for the second day in a row.

The company shared the FY20 update of its small finance bank unit in an exchange filing on Thursday. Equitas Small Finance Bank saw its advances rising 31 percent while deposits grew 25.7 percent year-on-year.

Provisions stood at Rs 247 crore while Gross and Net NPA stood at 2.72 and 1.66 percent respectively, deteriorating from the previous quarter.

Shares of the holding company now trade at the day's low, down 6.4 percent to Rs 48.50 and are down for the second straight day.

• Revenue seen 3 percent lower at Rs 4,336 crore
• Net profit seen flat at Rs 368 crore
• Ebitda seen 20 percent lower at Rs 765 crore
• Ebitda margin seen narrowing to 17.6 percent from 21.8 percent
• All estimates are consolidated and compared on a year-on-year basis

Key Factors At Play For Cipla:

• High base in the previous year due to Sensipar sales
• U.S. sales likely to be at $125 million
• Lack of new approvals to keep revenues muted
• India sales to be impacted due to lockdown
• Commentary on gProventil to be watched for
• Q4 margins typically the lowest due to lower India sales

The drug formulations maker has informed the exchanges that its API facility in Roha has received the Establishment Inspection Report (EIR) from the U.S. FDA.

The regulator had conducted its inspection at the said facility between February 17-21, 2020, the company said in its press statement.

The stock has snapped a 9-day losing streak, gaining as much as 9.3 percent to Rs 139.7. The stock has also gained today on volumes that are 8.6 times higher than its 30-day average.

• Net profit for the company rose 21 percent year-on-year to Rs 46 crore
• Revenue grew 17.3 percent year-on-year to Rs 80 crore
• Electricity volumes rose 40 percent to 13,385 Million UnitS (MU)
• Ebitda rose 11.6 percent from last year to Rs 63 crore
• Ebitda margins flat at 57 percent from 56 percent
• Company will launch its Real Time Market on June 1, 2020 and India's first Gas Exchange soon, as per its press release.

Shares gained as much as 7.6 percent to Rs 166.95 and are up for the third straight day.

The biggest private sector manufacturer of wagons for the Indian Railways has not received a single order since the new fiscal starting April 1, Managing Director Umesh Chowdhary told Bloomberg in a telephone interview.

Chowdhary estimates that it will take at least four months to return to normal production after the lockdown is lifted.

The company has shifted purchases of wheel sets to Europe from China. "Nothing as such which cannot be done minus China," he added.

Shares fell as much as 1.83 percent to Rs 32.2 and are down for the second straight day.

• Nifty May futures add 4.6 percent in Open Interest and 3.44 lakh shares
• Nifty Bank May futures add 24.2 percent in Open Interest and 2.85 lakh shares

Nifty: May 21 Expiry

• 9,000 Put: Premium rises 9.8 percent to Rs 131.65. The contract has added 3.46 lakh shares in Open Interest.
• 9,200 Call: Premium falls 22.4 percent to Rs 122.6. The contract has added 4.27 lakh shares in Open Interest.
• 9,300 Call: Premium falls 26 percent to Rs 89.05. The contract has added 5.04 lakh shares in Open Interest.

Nifty Bank: May 21 Expiry

• 18,000 Put: Premium up 11.6 percent to Rs 207.8. The contract has added 1.14 lakh shares in Open Interest.
• 20,000 Call: Premium falls 39.4 percent to Rs 150.55. The contract has added 1.98 lakh shares in Open Interest.
• 19,500 Call: Premium falls 34.5 percent to Rs 260. The contract has added 2.36 lakh shares in Open Interest.

The biopharma company reported a 42.3 percent decline its net profit to Rs 123 crore in the current quarter as compared to the year ago period.

Topline growth was flat at 3.4 percent due to biologics and branded formulations business impacted due to Covid-19.

The company's Ebitda margin fell to 20.2 percent from 26.4 percent due to higher staff and R&D expenses.

Among the company's segments, the small molecules revenue rose 15 percent as did revenue from research services that grew 14 percent. Revenue from Biologics and Branded Formulations business declined 21 and 12 percent respectively.

Shares fell as much as 4.3 percent to Rs 320.70 and are down for the fifth straight day. This is the longest losing streak for the stock in four months.

• Benchmark indices fall to the day's low
• Nifty down 0.7 percent to 9,079
• Sensex down 0.8 percent to 30,877
• Nifty Bank down 1.6 percent to 18,762
• Nifty Midcap Index trades little changed
• Nifty Smallcap Index down 0.5 percent
• India Volatility Index down 0.8 percent to 37.88
• Nifty Auto Index is the top sectoral laggard; down 2 percent
• Nifty I.T., Nifty Media and Nifty PSU Bank fall over 1 percent each
• BPCL is the top Nifty gainer; up 2.2 percent
• Mahindra & Mahindra is the top Nifty laggard; down 4.2 percent
• 734 stocks on the NSE trade with gains while 843 are declining

The rupee has opened flat for yet another session, as has been the trend this week. The currency opened at 75.48 against the U.S. Dollar, as compared to Thursday's close of 75.56.

India will be reporting its trade deficit data later today. Bloomberg estimates that the trade deficit may have narrowed to $6.1 billion in April from $9.76 billion in March.

Yield on the 10-year bond opened at 5.77 percent after closing at 5.78 percent on Thursday. The government will be selling debt worth Rs 30,000 crore today.

The company has informed the exchanges that it has received a Letter of Acceptance from the Mumbai Metro Rail Project for construction of part design and construction of balance works of package 1, line 7, elevated viaduct.

The said contract is for the Andheri (East)-Dahisar (East) corridor and is worth Rs 174.76 crore.

The stock gained as much as 5.36 percent to Rs 84.50, post the announcement.

The company's revenue in dollar terms fell 1.9 percent as compared to the previous quarter while the same in rupee terms was flat.

Ebitda rose 2 times while margins expanded to 13.9 percent from 6.8 percent in the third quarter. Improvement in margins was aided by lower other expenses and sub-contracting costs.

The company's $5 million per annum customers grew 5 percent compared to last year, as per its press release. Digital business saw a growth of 23 percent year-on-year, MD & CEO Sandeep Kishore said.

The stock gained as much as 5.1 percent to Rs 87.30 and is up for the third straight day.

The gold financing company reported a 40 percent rise in its revenue to Rs 1,605.3 crore in the current quarter. Net profit rose 43.7 percent to Rs 395 crore, led by a net gain on fair value changes which stood at Rs 125.9 crore.

Net Interest Income rose 33 percent compared to the previous year. The company's board has also approved increasing the overall borrowing limit of the company to Rs 30,000 crore from Rs 25,000 crore.

Shares gained as much as 5.1 percent to Rs 129.3 and are up for the fourth straight day.

24 lakh shares of the company exchanged hands in pre-market trading at Rs 414 per share, as per Bloomberg data.

Buyers and sellers in the trade were not immediately known.

The stock is locked in an upper circuit of 5 percent at Rs 440.05. This is the third straight upper circuit for the stock, after snapping a seven-day losing streak on Wednesday.

Indian equity markets are off to a subdued start after majority of Asian indices gave up gains as Covid-19 cases continue to rise across the globe. Futures on the Dow Jones are flat, down 23 points.

The S&P BSE Sensex opened 0.56 percent higher at 31,296 while the NSE Nifty 50 opened at 9,182, up 0.43 percent. Both the benchmarks gave up their modest gains soon after.

As of close on Thursday, both Sensex and Nifty were down over 1 percent for the week.

Most sectoral indices too opened on a flat note. The Nifty Realty index opened 1.2 percent higher while the Nifty Metal index opened 0.8 percent higher.

• Total cases rise to 4.4 million
• Death toll rises to 3.2 lakh
• Cases continue to rise in South Korea and China's North East
• China has imposed movement restrictions in two cities near North Korean border
• Total cost of the pandemic can reach as much as $8.8 trillion, as per the Asian Development bank
• U.S. FDA warns of potential negative results from Abbott's point-of-care test
• Tokyo to remain under emergency even as situation eases
• Total cases in the U.S. rise to 1.4 million
• India reports 3,967 new cases, 100 deaths and 1,685 recoveries in the last 24 hours. Total number of cases now at 81,970

• Bull Call Spread On Bajaj Finserv: Buy 5,000 call and sell 5,500 call where total spread will be Rs 118 for target of Rs 185 and stop loss of Rs 80
• Buy Cadila Healthcare's 350 Call for target of Rs 22 and stop loss of Rs 8

• Sell Nifty between 9,200-9,250 for target of 8,950 and stop loss of 9,350
• Sell Nifty Bank at 19,200-19,300 for target of 18,500 and stop loss of 19,550
• Sell Bharat Forge for target of Rs 240 and stop loss of Rs 291
• Buy Ajanta Pharma for target of Rs 1,600 and stop loss of Rs 1,440

• Biocon: Net profit falls 42.3 percent in the fourth quarter due to higher employee costs and other expenses. Margins narrow to 20.2 percent from 26.4 percent last year.
• Manappuram Finance: Revenue up 40 percent while Net Interest Income rises 33.3 percent. The company's board has also approved increasing the overall borrowing limit to Rs 30,000 crore from Rs 25,000 crore.
• Defence PSUs: Bloomberg News reports that India seeks warplanes as $15 billion global order stalls.
• Aurobindo Pharma: Promoter PV Ramprasad Reddy, his wife P Suneela Rani, and three other entities have settled an alleged insider trading case with markets regulator SEBI after paying over Rs 22 crore towards settlement charges.
• IRCON International: Signs a Memorandum of Understanding with state-owned Russian Railways Company to explore opportunities for joint development of railways and other infrastructure projects in Asia, Africa and Latin America.
• Equitas Holdings: In its FY20 update, Equitas Small Finance Bank has reported a 31 percent growth in advances and a 25.7 percent rise in deposits compared to the previous year. Net Interest Income grew 13 percent while net profit rose 16 percent. Gross NPA stood at 2.72 percent from 2.53 percent while Net NPA was at 1.66 percent as compared to 1.44 percent last year.
• Aavas Financiers: Net interest income rose 3.8 percent while Net profit grew 9.9 percent compared to last year. The board has approved raising Rs 3,500 crore via debt.

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

• Benchmark indices end with gains in a volatile session
• S&P 500 ended 1.2 percent higher led by a rebound in banking stocks
• Jobless claims in the U.S. rose to 2.8 million last week
• U.S. President Donald Trump said that he does not wish to speak to Xi Jinping as of now
• The Bloomberg Dollar spot index was flat
• Yield on the 10-year treasury fell 3 basis points to 0.63 percent
• West Texas Intermediate Crude rose 9.3 percent to $27.64 per barrel

Catch all the live action in the global markets here.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 index's performance in India, gave up gains to trade flat at 9,104.

Asian markets have drifted after starting off on a positive note. Japanese markets gave up gains, while those in China were fluctuating. Industrial production improved in April in China but retail sales figures were poor.

Treasuries were steady, while oil prices held gains after the International Energy Agency said the oil market was improving.

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