Sensex, Nifty Extend Winning Streak; End Higher For Sixth Day

Indian equity markets maintained its best winning streak in seven months by ending higher for the sixth straight session.

Benchmarks managed to end with gains despite coming off the day's high towards the later part of the session.

The S&P BSE Sensex fell more than 350 points from the day's high to end with gains of 0.84% at 34,109.

The NSE Nifty 50 index managed to hold on to the 10,000 mark, ending 0.83% higher at 10,061, down 115 points from the day's high.

Among sectoral indices, the Nifty Bank gave up half of its intra-day gain to end 2% higher at 20,940, down close to 700 points from its high.

The Nifty I.T. and Nifty Metal index ended with marginal losses. However, the Nifty PSU Bank Index emerged as the top performing sectoral index, ending with gains of 5.1%.

The Nifty Realty index ended with gains of over 3%, ending higher for the seventh straight day - its best winning streak since October 2019.

Market breadth remained in favour of the advances with 1,241 stocks on the NSE ending with gains while 586 ended with losses.

• Worst performer on the Nifty Smallcap Index
• Falls as much as 6.3% to Rs 2,311
• Down for the second straight day
• Has declined in five out of the last seven trading sessions
• Falls 9% in the last two trading sessions
• Today's volumes as 5.6 times higher than its 30-day average
• Approaching 100-Day Moving Average level on the downside at Rs 2,281
• Has more than doubled from its 52-week low of Rs 1,102 on August 8, 2019
• 2 out of the 4 analysts tracking the stock have a buy recommendation; 1 sell call
• The stock trades 6.4% higher than its 12-month consensus price target of Rs 2,181, implying a negative return potential.

• Radico Khaitan: Up for the 9th straight day. Longest winning streak since 2009. Trading at a three-month high.
• Oberoi Realty: Up for the 7th straight day. Longest winning streak since 2015.
• Union Bank of India: Gains most since October 2017. Up for the 7th straight day. Longest winning streak since December 2018.
• Astral Poly: Up for the 6th straight day. Longest winning streak since March 2019. Trading at a two-month high.
• IndusInd Bank: Up for the 7th straight day. Longest winning streak since July 2017.

The company has informed the exchanges of bagging export orders for over 8,000 wheels for Europe and the Truck Trailer Market in the U.S.

The orders, worth 3.35 lakh Euros will be executed in June and July from the company's Chennai Truck Wheels plant.

The company also expects further large orders in the coming weeks from its regular customers.

This order will support gradual production ramp-up of the Truck Wheels plant in Chennai post the Covid-19 shutdown.

Shares gained as much as 10.6% to Rs 390.85 and are up for the fifth straight day. This is the longest winning streak for the stock since November 2018.

• The center of Severe Cyclonic Storm Nisarga moved North-eastwards and crossed the Maharashtra coast to the South of Alibaug.
• The center was 80 kilometers South-Southeast of Mumbai
• However, the rear part of the wall cloud region is still over the sea.
• Landfall process will be completed in the next one hour
• Nisarga will weaken into a cyclonic storm in the next six hours
• Alibaug witnessed wind speed of 93 kmph at 1:30 P.M.

• Gains for the seventh straight day
• Longest winning streak since January 2018
• Trades at the highest level in nearly three months
• Has gained 15% in the last seven trading sessions
• Today's volumes are 15% higher than its 20-day average
• 3 out of the 10 analysts tracking the stock have a buy recommendation; 3 sell calls
• Return potential for the stock as per Bloomberg data is 16.1%

• State Bank of India's 180 Call: Premium rises 55.5% to Rs 10.5. The contract has added 6.1 lakh shares in Open Interest.
• Bajaj Finance's 2,500 Call: Premium up 53.25% to Rs 149.5. The contract has added 66,500 shares in Open Interest.
• ICICI Bank's 400 Call: Premium up 158% to Rs 8.9. The contract has added 9.3 lakh shares in Open Interest.

• Benchmark indices trade near the day's high
• Nifty up 1.55% at 10,135
• Sensex up 1.5% at 34,337
• Nifty Bank up 4.4% at 21,400
• Nifty Midcap Index up 1.45%
• Nifty Smallcap Index up 2.1%
• India Volatility Index down 0.7% to 29.9
• Nifty I.T. remains the only sectoral laggard; down 0.7%
• Nifty PSU Bank index remains the top sectoral gainer; up 5%
• Nifty Realty Index gains 4.1%
• ICICI Bank is the top Nifty gainer; up 6.3%
• 39 out of the 50 Nifty constituents advance
• Wipro is the top Nifty laggard; down 2.3%
• 1,418 stocks on the NSE trade with gains while 366 decline.

The currency failed to sustain the sharp gains made on opening to end with marginal losses, finding resistance at the 75 mark from where it reversed.

The rupee ended at 75.47 against the U.S. Dollar, as compared to Tuesday's close of 75.35. It made an intra-day high of 75.02 in the opening minutes of trade. The rupee snapped a three-day gaining streak with today's losses.

Despite marginal losses, the rupee was the worst performing currency among its Emerging Market peers.

• Promoters holding managerial positions voluntarily agree for up to 50% pay cut for FY21.
• 10-25% graded temporary compensation reduction for staff and management team. Amount kept aside as 'Business Performance-linked Pay' which will be rewarded back in the event of a satisfactory recovery in the business.
• No salary reduction for workmen and trainees.
• Group expects demand contraction in specific customer segments, market volatility and uncertainty in the months ahead.
• Aggressively looking at opportunities to manage overall costs with appropriate austerity measures.

Shares snapped a six-day winning streak, falling as much as 2.3% to Rs 650.

• Revenue seen 16.5% lower at Rs 62,345 crore
• May report net loss of Rs 373 crore from net profit of Rs 1,261 crore
• Ebitda seen 93% lower at Rs 183 crore
• Ebitda margin may narrow to 0.3% from 3.6%
• GRMs seen at negative $0.56 per barrel from $3.23 per barrel
• All estimates are Bloomberg estimates, standalone and compared on a quarter-on-quarter basis.

Key Factors At Play For BPCL:

• Likely to be a weak quarter due to weak refining and marketing environment and inventory losses
• Higher marketing margins to offset the negatives
• Singapore GRM averaged around $1.2 per barrel
• Inventory losses may lead to negative GRMs
• Sales volume likely to be lower due to the lockdown
• Crude throughput seen 6.1% lower at 7.9 MMT
• Sales seen 11.6% lower at 10.91 MMT
• Forex losses likely amid adverse movement in exchange rates
• Likely to report forex loss between Rs 900 crore - Rs 1,240 crore

• The center of the Severe Cyclonic Storm Nisarga is very close to the Maharashtra coast.
• Landfall process has started and it will be completed during the next three hours.
• The northeast sector of the eye of Severe Cyclonic Storm Nisarga is entering into land
• Colaba reported wind speed of 72 Kmph at 12:30 P.M.

The company has appointed Vivro Financial Services to conduct due diligence on the delisting process, according to its exchange filing.

Delisting proposal can be approved by the board only after obtaining a due diligence report from a merchant banker appointed by the board.

The board will again take up the delisting proposal once the process of due diligence is complete, the company said.

Shares fell to the day's low, falling as much as 2% to Rs 39.40, snapping a three-day gaining streak.

India's labour market showed a nascent improvement in May, after 12.2 crore people lost their jobs as a result of the Covid-19 lockdown in April.

Bloomberg News reports, quoting Center for Monitoring Indian Economy (CMIE) CEO Mahesh Vyas said that the total number of people employed increased by 2.1 crore in May.

Despite this addition, the jobless rate in the country remained unchanged at 23.5% from a month ago.

European markets carried on the baton of the rally in global equity markets by rising for the third day in a row.

Sentiment remains risk-on with oil, auto and banking stocks leading the gains.

The Stoxx 600 index has opened 0.7% higher tracking positive cues from Asian markets which have ended mostly higher. Futures on the Dow Jones are trading higher by 140 points.

Brent Crude for the August contract continued to rebound, gaining 2.2% to $40.42 per barrel while gold declined 0.3% to $1,722.57/Oz.

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

• Euro Stoxx 50 up 1% to 3,191
• DAX up 1.1% to 12,150
• CAC up 1.1% to 4,910
• FTSE up 0.9% to 6,273
• IBEX 35 up 1% to 7,478

• All plants, project sites are currently operating with reduced manpower.
• Partially resumed production and dispatches.
• Expect enquiries for the engineering segment to rise post easing of lockdown.
• Business picking up in the polymer segment in smaller towns.
• Business slow in larger cities due to higher containment zones.
• Cannot gauge future impact on operations with certainty
• Have applied for Covid-19 related special credit facilities offered by few bankers.
• Witnessing delay in collection of receivables.
• Servicing all debts and financial commitments when due.
• Will finalise capex plan based on the situation evolving.

Shares are off the day's high after gaining as much as 16.55% to Rs 33.8. Shares currently trade 8.1% higher at Rs 31.35.

• Top performing stock on the Nifty Midcap Index
• Locked in an upper circuit of 10% at Rs 31.9.
• Trading at the highest level in over three months
• Up for the sixth straight session
• Longest winning streak for the stock since October 2018
• Has not had a single session of decline in the last 11 sessions (Ended Unchanged on May 26, 2020)
• Has gained 62% in the last six trading sessions
• Today's volumes are 3.2 times higher than its 30-day average
• Stock in overbought territory with Relative Strength Index (RSI) at 87
• Trading above all of its key Daily Moving Averages (DMAs)

Two and three-wheeler maker Bajaj Auto has tied-up with HDFC Bank to facilitate retail financing solutions to its customers.

Customers of Bajaj Auto, under this tie-up can now access HDFC Bank's network to avail end-to-end digital processes and services.

Shares of Bajaj Auto are trading 1% higher at Rs 2,825 while those of HDFC Bank are trading 3% higher at Rs 1,030.

Both stocks are gaining for the seventh straight day. For HDFC Bank, this is the longest gaining streak since September 2017 while for Bajaj Auto, it is the longest since April 2019.

• Benchmark indices hold on to gains
• Nifty up 1.6% at 10,136
• Sensex up 1.5% at 34,325
• Nifty Bank up 3.4% at 21,214
• Nifty Midcap Index up 1.4%
• Nifty Smallcap Index up 2.3%
• India Volatility Index down 0.6% to 29.92
• Nifty I.T. remains the only sectoral laggard; down 0.2%
• Nifty PSU Bank is the top sectoral gainer; up 5%
• Nifty Realty, Nifty FMCG and Nifty Metal gain over 1.5%
• Nifty Pharma and Nifty Auto up over 1%
• Britannia remains the top Nifty gainer; up 6%
• Bharti Infratel remains the top Nifty laggard; down 2%
• 1,412 stocks on the NSE trade with gains while 316 decline

Aberdeen Standard Investments has adopted a 'defensive stance' on India over the short-term as government measures to support the economy have fallen short of reviving demand while lacking key reforms, Bloomberg News reports.

The money manager that manages $644 billion of assets globally has the heaviest exposure to software exporters, materials, cement and consumer staples.

Aberdeen believes that divestment of state-run companies can help narrow the fiscal gap.

BNP Paribas Arbitrage acquired 0.55% stake in the company on Tuesday at Rs 407.44 per share in a single large trade.

Shares gained as much as 4.3% to Rs 427.75. The stock is up for the seventh straight day, its longest winning streak since May 2019.

The stock is also trading at a three-month high. It is the top gainer on the Nifty I.T. Index.

The newspaper publisher informed the exchange on Tuesday that advertising revenue due to Covid-19 saw a marked reduction.

The company sounded confident that revenues will recover once lockdown restrictions are eased further, especially in non-metro cities which is the key market for the company.

Shares gained as much as 18.6% to Rs 76.90 - the biggest single day gain since January 2010.

The drugmaker has informed the exchanges that it has entered into a distribution agreement with three companies for its orphan drug NaMuscla, used in the treatment of Myotonia in adults.

Exeltis Healthcare, Cresco Pharma and Macure Pharma will commercialise NaMuscla in certain territories of the European Union.

NaMuscla is the first and the only licensed product for this indication. The said drug will be commercialised in Spain, Portugal, the Netherlands, Nordic countries among others.

Shares gained as much as 1.7% to Rs 885.85, rising for the second straight day.

10 lakh shares of the power generation and distribution company changed hands in a single large trade on the Bombay Stock Exchange, according to Bloomberg data.

Buyers and sellers of the trade are currently unknown.

Shares gained as much as 2.2% to Rs 43.50 and are up for the third straight day.

The music label announced a global deal with Facebook to license its music for video and other social experiences across Facebook and Instagram.

The partnership will enable users to choose music to add to their social experiences like video and stories along with other creative content, the press statement said.

Shares are locked in an upper circuit of 20% at Rs 334.65 and are up for the third straight day.

India's services sector contracted for the third straight month, according to IHS Markit.

The Services PMI for the month of May stood at 12.6, rising from a record low of 5.4 in April. Services PMI figure for May 2019 was 50.6

A reading above 50 indicates expansion while that below 50 indicates contraction.

Employment index too contracted for the third straight month with a reading of 46 as compared to 44.2 in April..

Business expectations fell to the lowest since the series began.

Source: Bloomberg

• Nifty June futures add 4.8% and 5.12 lakh shares in Open Interest.
• Nifty Bank June futures add 8.1% and 1.27 lakh shares in Open Interest.

Nifty: June 4 Expiry

• 10,200 Call: Premium up 97.55% to Rs 36.35. The contract has added 11.47 lakh shares in Open Interest.
• 10,000 Put: Premium falls 58.33% to Rs 44. The contract has added 17.36 lakh shares in Open Interest.
• 10,100 Call: Premium up 92.7% to Rs 72.25. The contract has added 10.65 lakh shares in Open Interest.

Nifty Bank: June 4 Expiry

• 21,500 Call: Premium up 156% to Rs 97.35. The contract has added 4.1 lakh shares in Open Interest.
• 22,000 Call: Premium up 98.1% to Rs 32.3. The contract has added 3 lakh shares in Open Interest.
• 21,000 Call: Premium up 152.6% to Rs 270.3. The contract has added 1.5 lakh shares in Open Interest.

The microfinance lender reported a 28.4% growth in its calculated interest income to Rs 208.5 crore in the quarter ending March.

Impairment on financial instruments however, rose 9 times compared to last year to Rs 188 crore.

Disbursements rose 67% from the previous year while Net Interest Margins expanded to 16.6% from 15.9% last year.

Asset quality remained stable with gross and net NPA figures of 0.36% and 0.07% respectively.

Shares are locked in an upper circuit of 5% at Rs 537.75. The stock is up for the sixth straight day - its longest winning streak since November 2019.

• Benchmark indices gain for sixth straight day
• Nifty up 1.1%, above the 10,000 mark at 10,088
• Sensex up 1% at 34,171
• Nifty Bank up 2.5% at 21,035
• Nifty Midcap Index up 0.9%
• Nifty Smallcap Index up 1.4%
• India Volatility Index down 1.8% to 29.56
• Nifty I.T. is the only sectoral laggard; down 0.43%
• Nifty PSU Bank index is the other sectoral Index with gains of over 2%
• Nifty Pharma and Nifty Auto Index gain 1% each
• Bajaj Finserv is the top Nifty gainer; up 5.3%
• 40 out of the 50 Nifty constituents trade with gains
• Bharti Infratel is the top Nifty laggard; down 2%
• 1,308 stocks on the NSE trade with gains while 334 decline

The rupee opened stronger for the fourth straight day, tracking positive cues in the equity markets and weakness in the U.S. Dollar

The currency opened at 75.20 against the U.S. Dollar as compared to Tuesday's close of 75.35. It briefly tested the mark of 75, before giving up some gains.

The four-day winning streak is the best for the currency in over a month.

2.61 crore shares of the private life insurer exchanged hands in a single large deal on the National Stock Exchange.

The shares exchanged amount to 1.3% of the total equity, according to Bloomberg data. Buyers and sellers in the trade remain unknown.

Shares recovered from the day's low to gain as much as 3.2% to Rs 515.85, snapping a two-day losing streak.

India's largest airline by market share reported a net loss of Rs 873 crore for the quarter ending March, mainly due to a forex loss of Rs 1,014 crore.

The net loss would have been higher but for a deferred tax credit of Rs 420 crore in the quarter gone by.

Earnings were impacted by lower passenger growth, higher maintenance costs and a weak currency. The company has not given any guidance due to the prevailing uncertainties.

Brokerages are divided over the stock post its results. While Morgan Stanley and Credit Suisse have maintained their overweight and outperform rating respectively, JM Financial continues to maintain a sell rating on the stock with a price target of Rs 700.

The stock snapped a three-day losing streak to gain as much as 7.3% to Rs 1,014.

• Estimated quantum of loss due to lockdown for March 2020 is around 23,400 vehicles and 14,700 tractors.
• Estimated quantum of loss due to lockdown in Q1FY21 is around 87,000 vehicles and around 30,000 tractors.
• Revenue and profitability will be impacted in-line with the fall in volumes.
• 75% of dealerships are currently operating.
• Difficult to estimate total impact of Covid-19 beyond Q1FY21.
• Cash position is good for the short-term and liquidity is assured with enough unused credit lines.
• Do not foresee any issues relating to servicing debts or financing arrangements.

Shares gained as much as 2.6% to Rs 475 and are up for the third straight day.

The company reported a 26% growth in its net profit for the quarter ending March, aided by lower tax expenses.

The company estimates a 7-10% impact on its revenue and net profit due to Covid-19, according to its press release.

The company's gross margins fell 150 basis points to 39.7% while raw material costs fell 1.2% to Rs 1,363 crore.

It has also declared an interim dividend of Rs 35.

The stock gained as much as 7.45% post its earnings to trade at a life-time high of Rs 3,708. The stock is up for the sixth straight day, its longest losing streak since August 2018.

Indian equity markets extended their best winning streak in seven months by opening higher for the sixth straight session. Markets in November 2019 had registered back-to-back gains for seven trading sessions.

A rally in global equity markets which are surging for the third day in a row, is adding to sentiment.

The S&P BSE Sensex opened 1.1% higher at 34,185 while the NSE Nifty 50 index opened 1.3% higher, above the 10,000 mark at 10,108. Both benchmarks are trading at their highest level in nearly three months.

All sectoral indices opened with gains led by the Nifty Bank which opened 2.1% higher. The Nifty Media and the Nifty PSU Bank index opened with gains of close to 2% while Nifty Auto and Nifty Metal gained 1.5% each in opening trade.

• Total cases cross 6.3 million globally
• Death toll rises to 3,80,200
• China reports one new case, says it was imported
• South Korea reports 49 new cases
• U.S. to ship 100 donated ventilators to India
• Brazil reports record day of deaths
• Indonesia's most populous province to ease curbs in 15 cities
• U.K. plans to impose a 14-day quarantine on all overseas arrivals

• Indian Hotels: Plans to sell 3-year bonds worth up to Rs 300 crore
• Arvind: Plans to sell 3-year bonds worth Rs 75 crore at a coupon rate of 8.5%
• Indian Railway Finance Corporation: Seeks bids for 15-year bonds worth up to Rs 3,000 crore, boosting the supply of local-currency bonds.
• Tata Power: Seeks orders for notes worth Rs 300 crore maturing in August 2023.

Source: Bloomberg

• Reliance Industries: Bloomberg News reports that Abu Dhabi’s Mubadala Investment is nearing a deal to invest about $1 billion into Jio Platforms. An announcement could come as soon as this week. The company is also in discussions with Abu Dhabi Investment Authority & Saudi Arabia’s The Public Investment Fund.
• Hindustan Unilever: Witnessed fractured supply lines and lower demand from Mid-March. Out of home business comprising of ice cream, food solutions and consumer durables business of water have been severely impacted. Pandemic has imposed incremental operating costs on the business.
• Colgate-Palmolive: Do not foresee any specific challenges in terms of profitability, capital or financial resources, due to Covid-19.
• Jubilant Foodworks: Will launch contactless dine-in as soon as dine-in is permitted. Some stores in smaller towns now back to Pre-Covid-19 delivery sales.
• Lupin: Gets U.S. FDA approval for its Meloxicam capsules. The company will market the generic equivalent of Vivlodex capsules of U.S. based Zyla Life Sciences, which are used for treatment of osteoarthritis pain.
• Polycab India: The company's CFO in an interaction with BloombergQuint said that Covid-19 impacted top-line numbers by Rs 600 crore and that they are cautious on domestic growth for the next two quarters.
• Syngene International: Enters into a collaboration with HiMedia Laboratories to manufacture and distribute its ELISA kits.
• Non-Nifty Earnings Today: Aurobindo Pharma, Cholamandalam Investment.

For companies sharing their Covid-19 updates, earnings reported after market hours and all that you need to know going into today’s trade, click here.

• Benchmark indices end higher for the third day
• S&P 500 ends at the highest level in three months
• Gunmakers extended rally after President Donald Trump vowed to send troops if violence over police brutality was not contained.
• The MSCI Emerging Markets index gained 1.7%
• The U.S. Dollar fell for the fourth straight day
• Bloomberg Dollar Spot Index fell 0.3%
• Yield on the 10-year treasury rose to 0.68%
• West Texas Intermediate crude rose 4% to $36.84 per barrel

Catch all the action in the global equity markets here.

Good Morning!

India’s equities posted their longest winning streak in seven months as they ended higher for the fifth straight day on Tuesday. They are now set for another day of gains.

The benchmark indices — S&P BSE Sensex and the NSE Nifty 50 — ended Tuesday’s session at their highest level in nearly three months.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 1% to 10,081 as of 8:00 a.m.

Asian markets extended the rally in global equities for the third straight day as investors continue to bet on a quick recovery from the Covid-19 pandemic. Futures on the Dow Jones are trading 80 points higher.

Crude oil continued to rebound with the West Texas Intermediate rising 2.7%, while Brent surged above the $40-per-barrel mark.

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