Sensex, Nifty End Over 3% Lower; Banking Stocks Top Laggards  

On a day when global markets ended with modest to strong gains and futures in the U.S. indicating a positive start, Indian equity markets ended sharply lower as the Rs 20 lakh crore stimulus package, announced over five days left investors unimpressed.

What also dented sentiment was the addition of over 5,000 Covid-19 cases in the country, the biggest ever single-day spike, just a day after the lockdown was extended to May 31.

The S&P BSE Sensex ended 3.44 percent lower at 30,028, while the NSE Nifty 50 ended at 8,823, down 3.32 percent. 44 out of the 50 Nifty constituents ended with losses.

Among sectoral indices, the Nifty Bank and the Nifty Media index ended with losses of over 6.5 percent. On the other hand, Nifty I.T. and Nifty Pharma outperformed, ending with modest gains. Nifty Auto and Nifty PSU Banking index fell 6 percent each.

• Nifty: Buy 8,500 put of the June 25 expiry at Rs 180 for target of Rs 540 and stop loss of 0
• Buy Colgate Palmolive at Rs 1,390 for target of Rs 1,430 and stop loss of Rs 1,370
• Sell Manappuram Finance at Rs 122 for target of Rs 110 and stop loss of Rs 128

• Benchmark indices remain near the lowest point of the day
• Nifty trades 2.65 percent lower at 8,893
• Sensex trades 2.65 percent lower at 30,273
• Nifty Bank trades 5.8 percent lower at 17,733
• Nifty Midcap Index trades 3.7 percent lower
• Nifty Smallcap Index trades 2.8 percent lower
• India Volatility Index trades 7 percent lower at 40.67
• Nifty I.T. Index remains top sectoral gainer; up 1.3 percent
• Nifty Auto, Nifty PSU Bank and Nifty Realty index down 4.5 percent each
• Nifty FMCG and Nifty Pharma trade with modest losses
• Cipla remains the top Nifty gainer; up 3.7 percent
• IndusInd Bank remains the top Nifty loser; down 8.7 percent
• 1,381 stocks on the NSE trade with losses while 397 gain

The currency posted losses for the third straight day in today's trading session, taking cues from the weakness in the equity markets.

The rupee ended at 75.91 against the U.S. Dollar as compared to Friday's close of 75.57. It briefly flirted with the 76 mark, making an intra-day low of 75.97.

The 0.44 percent drop in the rupee made it the worst performer among its Emerging Market Peers for the day.

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

• Biggest one-day fall since January 2008
• Falls as much as 14.9 percent to Rs 2,205
• Trades at the lowest level in a month
• Down for the second day in a row
• Down over 15 percent in the last 2 trading sessions
• Today's volumes are 1.6 times higher than its 30-day average
• Breaks below all 50, 100 and 200-Day Moving Averages
• 14 out of the 27 analysts tracking the stock have a buy recommendation; 8 sell calls
• Return potential of the stock a per Bloomberg data is 6.6 percent

• Reliance Industries' 1,500 Call: Premium falls 11.1 percent to Rs 35. The contract has added 5.05 lakh shares in Open Interest.
• State Bank Of India's 180 Call: Premium falls 51.7 percent to Rs 2.1. The contract has added 14.22 lakh shares in Open Interest.
• HDFC Bank's 900 Call: Premium falls 57.4 percent to Rs 12.8. The contract has added 3.96 lakh shares in Open Interest.

The company informed the exchanges over the weekend that WABCO Holdings along with ZF Friedrichshafen got approval from the Chinese State Administration for their previously announced merger.

With all the regulatory approvals now in place, both the companies expect to close the merger by May 29, 2020, the press statement stated.

Shares gained as much as 10 percent to Rs 6,835.1 on the National Stock Exchange. This is the biggest one-day gain for the stock in two months and it trades at the highest level in three months.

Today's gains are on volumes that are 18.2 times higher than its 30-day average. It is also the top performer on the Nifty 500 index.

With a Relative Strength Index (RSI) of 76, the stock is trading in overbought territory.

European markets are off to a positive start to the week, rising further from their lows this month, benefiting from a rally in crude and metals.

Most Asian indices ended with modest gains while futures on the Dow Jones are trading higher by 320 points.

The Stoxx 600 index has opened 2 percent higher led by a rally in mining and oil stocks. Utilities and Telecom are the underperforming sectors.

Brent Crude for the July contract trades 4.1 percent higher to $33.82 per barrel while Gold trades at the highest level since October 2012.

Lets take a look at how benchmarks across Europe have opened:

• Euro Stoxx 50 up 1.8 percent to 2,821
• DAX up 2.1 percent to 10,684
• CAC up 2 percent to 4,362
• FTSE 100 up 2.1 percent to 5,919
• IBEX 35 up 1.5 percent to 6,571

The company has informed the exchanges that it has signed a cooperation agreement with Sweden-based Sekab E-Technology AB to upgrade and commercialise its base technology to produce advanced biofuels and biochemicals.

Shares recovered after falling as much as 7.1 percent to gain as much as 2.4 percent to Rs 57.9, post the announcement

• Trades at the lowest level since December 2016
• Fell as much as 8.4 percent to Rs 381.05
• Down for the third day in a row
• Down in 9 out of the last 11 trading sessions
• Has declined 14 percent in the last 11 sessions
• Has advanced only in 5 out of the last 20 trading sessions
• Declined over 17 percent in the last 20 sessions
• Today's volumes are 2.7 times higher than its 30-day average
• The stock has entered oversold territory with Relative Strength Index (RSI) at 29
• Has declined 53 percent from its 52-week high of Rs 816.9 on February 7, 2020
• All 4 analysts tracking the stock have a buy recommendation
• Return potential for the stock as per Bloomberg data is 110.8 percent

Gold rose to its highest level in more than seven years after the U.S. Federal Reserve Chair Jerome Powell said that stocks and asset prices could suffer a significant hit from the Coronavirus, Bloomberg reports.

The yellow metal has surged 16 percent this year. What is adding to the speculation is that U.S. interest rates can go negative while holdings in the Gold-ETFs are at a record high.

Spot Gold is currently trading 1.1 percent higher at $1,762/Oz.

Among other precious metals, Palladium gained as much as 8.3 percent, the most in nearly two months while Silver gained 4 percent.

• Benchmark indices trade near the day's low
• Nifty down 2.9 percent at 8,871
• Nifty futures trade at a discount of 8 points
• Sensex down 3 percent at 30,176
• Nifty Bank down 6.4 percent at 17,631
• Nifty Midcap Index down 3.6 percent
• Nifty Smallcap Index down 3.1 percent
• India Volatility Index up 7.4 percent to 40.83
• Nifty I.T. emerges as the only sectoral gainer; up 0.7 percent
• Nifty Auto, Nifty Media, Nifty Realty index fall over 4 percent each
• Nifty PSU Banking index down 5.5 percent
• Cipla remains the top Nifty gainer; up 3.1 percent
• 7 out of the 50 Nifty constituents are trading with gains
• IndusInd Bank remains the top Nifty laggard; down 8.2 percent
• 1,409 stocks on the NSE trade with losses while 341 are gaining

13.38 lakh shares of the company exchanged hands in a single large trade on the National Stock Exchange. The deal was carried out at Rs 27.40 per share, as per Bloomberg data.

Buyers and seller of the trade were not immediately known.

Shares traded 6 percent lower at Rs 27.60, after falling as much as 7.5 percent in early trade.

Both InterGlobe Aviation and Spicejet are trading with losses in today's trading session as the Indian government extended the nationwide lockdown up to May 31.

Sentiment was also soured as the Finance Minister announced no form of relief package for the sector during her five press conferences.

Shares of IndiGo fell as much as 13.6 percent to Rs 850. This is the biggest one-day fall for the company since January 2016. Trading volumes are double than its 20-day average.

On the other hand, SpiceJet is locked in a lower circuit of 5 percent at Rs 43.35.

• Among the worst performers on the Nifty Smallcap index
• Falls as much as 8.8 percent to Rs 21.8
• Down for the second straight day
• Trades at the lowest level in over a month
• Today's volume is 1 times higher than its 30-day average
• The stock has broken below its 50-Day Moving Average of Rs 23.98
• Aditya Birla Sun Life MF reduced stake in the company to 3.96 percent from 7.24 percent
• Has fallen 81 percent from its 52-week high of Rs 119 on May 27, 2019
• 16 out of the 19 analysts tracking the stock have a buy recommendation
• Return potential of the stock as per Bloomberg data is 138.8 percent

The I.T. services company saw its revenue rising 7.7 percent from last year while net profit grew 6.9 percent to Rs 204.8 crore. Ebitda was up 8.1 percent while margins remained flat at 18.5 percent.

The company won 9 multi-million dollar deals across major industry segments in the quarter gone by, it said in a press release. It managed to add 3 new clients to the $20 million plus bracket and 5 new clients in the $10 million plus bracket in FY20.

Brokerage firm Investec has maintained its buy rating on the stock. However, it has cut its price target to Rs 1,375 from Rs 1,510 citing Q1FY21 as where the maximum impact of the Covid-19 crisis can be seen.

Shares are the top performer and one among the five gainers on the Nifty Midcap index, gaining as much as 6.7 percent to Rs 1,140

The asset management company saw its net profit declining 97.6 percent in the quarter ending March to Rs 3.7 crore. This was due to Mark-to-Market losses in treasury operations due to the market volatility in the month of March.

The company's revenue also saw a decline of 20 percent year-on-year to Rs 274.5 crore.

Brokerage firm Emkay has maintained its 'hold' rating on the stock but has raised its price target to Rs 271 from the earlier Rs 232. Limited credit risk is what prompts the brokerage to like the AMC business, it wrote in its note on the stock.

The stock fell as much as 9.6 percent, the most in a month to Rs 220.40 and is down for the third straight day.

India should refrain from setting a fiscal deficit target for FY21 as the Covid-19 pandemic is causing the government to undertake unscheduled spending, NITI Aayog Vice Chairman Rajiv Kumar told Bloomberg News in an interview.

Kumar however added that a downgrade of India's sovereign ratings was unlikely as the situation was unprecedented and that no country has been spared.

India's economy is set for its first contraction in four decades. Goldman Sachs wrote in a note that it expects the economy to shrink by 5 percent in FY21, deeper than any other recession experienced since 1947.

The stock trades at the lowest level in a month in today's trading session.

Shares fell as much as 10.23 percent to Rs 44.75, after Julius Baer sold 27.5 lakh shares or 0.8 percent stake in the company at Rs 49.17 per share.

Shares are down for the third straight day today, on volumes that are 1.4 times higher than its 30-day average.

Larsen & Toubro's NBFC arm reported a 5.5 percent rise in its Net Interest Income compared to the previous year to Rs 1,670.4 crore. Net profit too fell nearly 30 percent to Rs 386.2 crore.

The company took an impairment of Rs 502 crore on financial instruments in the current quarter, out of which Rs 314 crore were for the Covid-19 impact.

Cost of funds for the company remained relatively steady at 8.43 percent from 8.54 percent.

Shares fell as much as 8.4 percent to Rs 52.5 and are down for the third day in a row. Today's decline is on volumes that are double than its 30-day average.

• Nifty May futures add 14.2 percent in Open Interest and 10.9 lakh shares
• Nifty Bank May futures add 33.25 percent in Open Interest and 4.32 lakh shares

Nifty: May 21 Expiry

• 9,200 Call: Premium falls 60.6 percent to Rs 56. The contract has added 9.46 lakh shares in Open Interest.
• 9,000 Put: Premium rises 76.8 percent to Rs 195.9. The contract has added 91,800 shares in Open Interest.
• 9,300 Call: Premium falls 64.25 percent to Rs 37.2. The contact has added 4.98 lakh shares in Open Interest.

Nifty Bank: May 21 Expiry

• 17,500 Put: Premium up 215 percent to Rs 292.1. The contract has added 98,720 shares in Open Interest.
• 18,000 Put: Premium up 169 percent to Rs 516.25. The contract has added 1.22 lakh shares in Open Interest.
• 19,000 Call: Premium falls 68.7 percent to Rs 143.65. The contract has added 3.08 lakh shares in Open Interest.

The non-banking financial service provider saw its Net Intererst Income grow 3.7 percent from last year to Rs 1,670.4 crore. Net profit fell 65.8 percent to Rs 234.8 crore.

The company had an impairment of Rs 822 crore on financial instruments in the current quarter out of which Rs 681 crore was related to the Covid-19 impact.

The company's stage 3 gross non-performing assets stood at 8.44 percent from 6.45 percent during the same period last year. Net NPAs also rose to 5.98 percent from 5.28 percent year-on-year.

Shares fell as much as 11.7 percent to Rs 148.75. Today's volumes are 3 times higher than its 30-day average.

It is also the worst performing stock on the Nifty Midcap index.

• Benchmark indices fall towards the day's low
• Nifty down 2.2 percent at 8,937
• Sensex down 2.22 percent at 30,405
• Nifty Bank down 4.74 percent at 17,942
• Nifty Midcap Index down 2.4 percent
• Nifty Smallcap Index down 2.5 percent
• India Volatility Index up 4.6 percent to 39.77
• All sectoral indices trade with losses
• Nifty Media, Nifty Metal and Nifty Auto fall over 3 percent each
• Nifty PSU Bank and Nifty Realty Index down over 4 percent
• Nifty Pharma gives up gains and trades negative
• Cipla is the top Nifty gainer; up 3.1 percent
• 5 out of the 50 Nifty constituents trade with gains
• IndusInd Bank is the top Nifty laggard; down 6.2 percent
• 1,247 stocks on the NSE are declining while 403 trade with gains

The rupee has opened weak in today's trading session after a lackluster week and an equally lackluster session on Friday.

The currency opened at 75.93 against the U.S. Dollar as compared to Friday's close of 75.58. The rupee ended absolutely flat last week.

Goldman Sachs believes that India will experience its deepest recession due to the economic damage inflicted by Covid-19.

Bond traders will focus on the Reserve Bank of India's plan to convert short-term bonds worth Rs 30,000 crore into long-maturity debt.

Debendra Dash of AU Small Finance Bank believes that bonds are supported by the excess liquidity in the banking system and expectations of more measures from the country's central bank.

The company's MD & CEO Sanjay Agarwal has informed the exchanges that the promoters and promoter group sold a total of 27.19 lakh and 25 lakh equity shares of the company respectively for deleveraging and other purposes.

Friday's deal saw Sunil Bharti Mittal-backed SBM Holdings acquired 0.8 percent stake or 24.12 lakh shares in the company at Rs 414.6 per share.

25 lakh shares of the company exchanged hands today in a pre-market block window at Rs 414.6 per share, as per Bloomberg data. Buyers and sellers of the trade were not immediately known.

Shares now trade 1.2 percent lower atRs 412.70, after gaining as much as 2.51 percent in early trade.

The pharma company reported a 1 percent decline in revenue for the fourth quarter while Ebitda margin narrowed to 14.5 percent from 21.8 percent. 200 basis point impact was felt on margins due to Covid-19 related cut-offs.

The company's India business saw double-digit growth for the third straight quarter while the African business remained robust.

The company has also approved raising funds worth up to Rs 3,000 crore through various instruments, subject to regulatory approvals.

Most brokerages have maintained their bullish stance on the stock.

Shares are up for the second straight day, gaining as much as 2.88 percent to Rs 586.75. It is also the top gainer on the Nifty 50 index.

Indian equity markets began the new trading week on a subdued note after posting their second straight weekly loss on Friday. Asian markets are mixed while futures on the Dow Jones are trading higher by 300 points.

The S&P BSE Sensex opened 0.48 percent higher at 31,248 while the NSE Nifty 50 opened at 9,158, up 0.23 percent. Both the indices gave up their opening gains soon after.

The Sensex and Nifty fell 1.3 and 1.7 percent respectively last week.

Most sectoral indices are trading with losses. The Nifty Bank is underperforming, down 1.7 percent while the Nifty PSU Bank and the Nifty Realty Index are down 1.2 percent each.

759 stocks on the NSE have opened with gains while 734 trade with losses.

• Global cases cross 4.7 million
• Death toll rises to 3.15 lakh
• Top U.S. official say China sent airline passengers to spread the Coronavirus worldwide
• Japan's economy falls into recession; contracts 3.1 percent in the first quarter
• Thiland's economy contracts for the first time since 2014
• Federal Reserve Chair Jerome Powell said that a recovery in the U.S. economy can stretch to the end of next year depending on the delivery of a vaccine
• U.K. and Italy report the fewest deaths since March
• France sees the most fatalities in three weeks
• India extends lockdown to May 31 while easing some curbs

• Buy Marico for target of Rs 338 and stop loss of Rs 303
• Buy Alembic for target of Rs 61 and stop loss of Rs 49.5

• Buy Bharti Airtel for target of Rs 540 and stop loss of Rs 590
• Buy Coromandel International for target of Rs 700 and stop loss of Rs 600

• Reliance Industries: General Atlantic to buy 1.34 percent stake in Jio Platforms amounting to Rs 6,598 crore. General Atlantic values Jio Platforms at an equity value of Rs 4.91 lakh crore and an Enterprise Value of Rs 5.16 lakh crore. General Atlantic becomes the fourth investor in Jio Platforms in less than a month.
• Persistent Systems: Awarded a multi-year contract by a leading U.S.-based multi-cloud enterprise software company. The engagement is for a period of five years with an estimated revenue of $50 million.
• Cipla: Revenue down 1 percent to Rs 4,376 crore. Net profit falls 33 percent from last year while Ebitda margin narrows to 14.5 percent from 21.8 percent. India business sees double-digit growth for the third straight quarter. The company has also approved raising funds of up to Rs 3,000 crore by issue of equity shares or ADRs, GDRs or Foreign Currency Convertible Bonds or other financial instruments through a public issue or private placement subject to necessary approvals.
• Piramal Enterprises: Board to consider NCD issue worth Rs 500 crore on May 20.
• L&T Technology Services: Revenue up 7.7 percent to Rs 1,446 crore while net profit rises 6.9 percent from last year to Rs 204.8 crore. Ebitda margin remains flat at 18.5 percent.
• L&T Finance Holdings: Net interest income rises 5.5 percent to Rs 1,552.1 crore while net profit fell 30 percent from last year to Rs 386.2 crore. Impairment of Rs 502 crore on financial instruments in the current quarter of which Rs 314 crore is for the Covid-19 impact.
• M&M Financial Services: Net Interest Income up 3.7 percent to Rs 1,670.4 crore while net profit fell 65.8 percent to Rs 234.8 crore. Impairment of Rs 822 crore on financial instruments in the current quarter of which Rs 681 crore is for the Covid-19 impact.
• AU Small Finance Bank: Bharti SBM Holdings, a entity promoted by Sunil Bharti Mittal, acquired 24.12 lakh shares or 0.79 percent stake in the company at Rs 414.6 per share from promoter Chirinjee Lal Agarwal who sold the stake.
• Equitas Holdings: Julius Baer sold 27.5 lakh shares or 0.8 percent stake in the company at Rs 49.17 per share.
• Non-Nifty Earnings Today: AstraZeneca Pharma, Delta Corp, Dr Lal Pathlabs, GSK Pharma, Torrent Power, Maharashtra Scooters.

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

• Benchmark indices end with gains as traders look past trade jitters and weak economic data.
• The S&P 500 posted modest gains but reported its worst week since March 20
• Retail sales fell while factory output contracted 11.2 percent in April - the worst on record
• Semiconductor companies underperformed as U.S. moved to curtain Huawei's chip supply
• The Bloomberg Dollar Spot Index rose 0.3 percent
• West Texas Intermediate Crude rose 7.4 percent to $29.61 per barrel. The commodity is up another 4 percent today.

Catch all the live action in the global equity markets here.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 index’s performance in India fell 0.4 percent to 9,072, as of 7:40 a.m.

Markets in Japan and South Korea gave up some early gains, while those in Australia are edging higher. Markets in Hong Kong are flat.

The U.S. Federal Reserve has warned of potential asset-price declines if the pandemic worsens.

Futures on the Dow Jones are trading higher by 220 points after the benchmark ended with modest gains on Friday, trimming a weekly loss.

West Texas Intermediate Crude is up 4.3 percent to $30.68 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.