Sensex, Nifty Post Biggest Weekly Advance In A Month

Indian equity markets ended with gains for the third straight day, shrugging off geopolitical tensions and weak global cues.

Both the S&P BSE Sensex and the NSE Nifty 50 index ended higher courtesy a last hour surge, after fluctuating for most of the trading day.

The Sensex ended 0.7% higher at 31,424 while the Nifty advanced 1% to end at 9,580. 36 out of the 50 Nifty constituents ended with gains.

For the week, the Sensex posted gains of 5.7 percent while the Nifty advanced 5.9%.

The drugmaker has informed the exchanges that it has received approval from the DCGI to initiate clinical trial with Nafamostat in Covid-19 patients.

The company has initiated manufacturing of both the API and the finished product of Nafamostat in India using technology from its Japanese subsidiary Pola Pharma.

The company plans to initiate the trials at the earliest, it said in an exchange filing.

Shares are at the day's high, gaining as much as 4.1% to Rs 477.5, post the announcement.

• Revenue up 6% to Rs 249 crore
• Net profit up 10 times to Rs 40 crore
• Ebitda up 48.3% to Rs 43 crore
• Ebitda margin expands to 17.3% from 12.3%
• Low raw material costs aid margin expansion
• Higher other income and exceptional loss in the base quarter contribute to bottomline
• All numbers are consolidated and compared on a year-on-year basis.

Shares are locked in an upper circuit of 10% at Rs 897.35 post the announcement.

• No such proposal, as reported by the media, being considered by the board as of now
• Constantly evaluate various opportunities to enhance stakeholders' value
• Will comply with disclosure obligations as and when such a proposal is considered by the board.

Source: Exchange Filing

Shares are off the day's high, now trading 11.2% higher at Rs 6.45.

• Gains as much as 9.9% to Rs 386.5
• Biggest single-day gain in nearly two months
• Trades at the highest level in more than two months
• Up for the second straight day
• Gains for three out of the last four trading sessions
• Today's volumes are 2.4 times higher than its 30-day average
• Breaks above its 50-Day Moving Average of Rs 347.8
• 25 out of the 38 analysts tracking the stock have a buy recommendation; 2 sell calls
• Return potential for the stock as per Bloomberg data is 29.4%

The Supreme Court has agreed to hear former Tata Sons Chairman Cyrus Mistry's petition seeking representation on the board of Tata Sons, proportionate to the stake held by him in the company, Bloomberg News reports citing Mistry's counsel Aryama Sundaram.

The court has asked Tata Sons to submit their written reply to Mistry's petition within four weeks.

Mistry, along with his family has 18.4% shareholding in Tata Sons. The appeal will be heard along with the petition of Tata Sons which is already pending.

No date for the hearing has been announced as of now.

• Benchmark indices gain momentum
• Nifty up 0.6% at 9,544
• Sensex up 0.4% at 32,302
• Nifty Bank up 0.4% at 19,241
• Nifty Midcap Index up 2%
• Nifty Smallcap Index up 1.3%
• India Volatility Index down 0.5% to 29.86
• All sectoral indices trade with gains
• Nifty FMCG, Nifty Pharma, Nifty Realty gain between 2-3.3%
• Nifty Metal and Nifty Auto index up over 1%
• Wipro is the top Nifty gainer; up 6%
• Bharti Airtel is the top Nifty laggard; down 2.6%
• 1,195 stocks on the NSE trade with gains while 515 decline

The rupee ended with modest gains in today's trading session, tracking weakness in the U.S. dollar and despite volatility in the equity markets.

The currency ended at 75.62 against the U.S. Dollar as compared to Thursday’s close of 75.76. With today's gains, the rupee snapped a three-week losing streak. The currency gained 0.5% this week.

On a weekly basis, the rupee was the third best performing currency among its Emerging Market peers, following the Singapore Dollar and the Indonesian Rupiah.

Yield on the 10-year bond ended at 5.762% as compared to the opening level of 5.744%.

The government today sold bonds worth Rs 36,000 crore at its weekly auction, as compared to its initial plan of Rs 30,000 crore.

• Had zero cash flow from sale activity during the March-May period.
• Have started manufacturing country liquor at its Virar factory.
• Impact on operations will depend on opening up of red zones, availability of contract labour, restoration of normal supply chain and demand of the product.
• Have no debt currently and enough liquidity to procure raw materials and packaging materials.
• Will consider results in the final week of June due to Covid-19.

Shares gained as much as 5.1% to Rs 407.25 and are up for the second straight day.

• Bajaj Finance's 2,000 Call: Premium up 6% to Rs 107. The contract has added 1.34 lakh shares in Open Interest.
• ITC's 200 Call: Premium up 37% to Rs 5.75. The contract has added 19.63 lakh shares in Open Interest.
• Reliance Industries' 1,500 Call: Premium down 17.2% to Rs 34.7. The contract has added 2.47 lakh shares in Open Interest.

• Not taking a call on monetisation now
• Need to bring down the cost of government borrowing
• Not taken any decision on bad bank yet
• Open to taking more steps on the economy

Source: Bloomberg

• Revenue up 5.1% to Rs 283.1 crore
• Net profit up 4.3% to Rs 31.4 crore
• Ebitda up 16.7% to Rs 42.5 crore
• Product revenue up 4.4% to Rs 118.4 crore
• Profrssional Services Revenue up 1.9% to Rs 158.2 crore
• 12-month order backlog in Constant Currency terms at Rs 783.9 crore
• All numbers are compared on a quarter-on-quarter basis

Shares gained as much as 5% to Rs 313.55 after the result announcement.

• Top performer on the BSE Smallcap Index
• Gains as much as 14.6% to Rs 20.4
• Biggest single-day gain since March 2019
• Up for the fourth straight day
• Trades at the highest level in three months
• Today's volumes are 8.5 times higher than its 30-day average
• Breaks above the 200-Day Moving Average of Rs 19.15
• Trading near the 100-Day Moving Average of Rs 19.8
• 3 out of the 4 analysts tracking the stock have a buy recommendation; 0 sell calls
• Return potential of the stock as per Bloomberg data is 24.4%

Markets across Europe snapped a five-day losing streak as they opened with losses amid rising geopolitical tensions between U.S. and China. Investors are awaiting a press conference from U.S. President Donald Trump later today.

The Stoxx 600 index opened 0.8% lower with all sectors barring healthcare opening with losses. Autos and banks were among the top laggards.

Brent Crude for the August contract falls 0.8% to $35.73 per barrel while gold is little changed at $1,719/Oz.

Most Asian markets have ended with losses while futures on the Dow Jones are trading 125 points lower.

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

• Euro Stoxx 50 down 0.9% to 3,066
• DAX down 1.2% to 11,641
• CAC down 0.9% to 4,728
• FTSE 100 down 0.9% to 6,156
• IBEX 35 down 1.2% to 7,138

The company informed the exchanges on Thursday that its formulations manufacturing facility in Baddi has received the Establishment Inspection Report (EIR) from the U.S. FDA.

The classification of the facility is termed as 'No Action Indicated' (NAI). The audit is now closed with zero observations.

Shares are off the day's high after gaining as much as 4.3% to Rs 352.5, up for the second straight day.

27.14 lakh shares of India's largest lender exchanged hands in a single large deal on the National Stock Exchange. The trade took place at Rs 158.5 per share as per Bloomberg data.

Buyers and sellers of the trade remain unknown.

Shares trade little changed, up 0.35% at Rs 158.75. The stock is up in three out of the last four trading sessions.

India's Directorate General of Civil Aviation (DGCA) has allowed the budget carrier to conduct drone trials, it told Bloomberg in a statement.

The air carrier plans to use the drones for delivery of medical and essential supplies and e-commerce products.

The airline is partnering drone manufacturer Throttle Aerospace, software firm AeoLogic and a U.S.-based Air Traffic Control firm Involia for the same.

Shares are fluctuating between gains and losses, trading little changed at Rs 45.

• Benchmark indices pare losses, trade flat
• Nifty little changed at 9,485
• Sensex down 0.3% at 32,103
• Nifty Bank down 0.8% at 19,038
• Nifty Midcap Index up 1.1%
• Nifty Smallcap Index up 1%
• India Volatility Index down 0.6% to 29.82
• Nifty I.T. and Nifty PSU Bank are the other sectoral laggards
• Nifty Realty and Nifty Pharma index gain over 2% each
• Bharti Infratel remains the top Nifty gainer; up 5.6%
• Axis Bank remains the top Nifty laggard; down 2.5%
• 1,116 stocks on the NSE trade with gains while 563 are declining

• Trades at an all-time high
• Gains as much as 4% to Rs 1,650
• Up for the second straight day
• Has gained in seven out of the last eight trading sessions
• Up 12.5% in the last eight trading sessions
• Today's volumes are 2.3 times higher than its 30-day average
• Trades at 34.5 times estimated forward earnings per share as compared to its 2-year historical average of 27.5 times
• Has nearly doubled from its 52-week low of Rs 970 on March 25, 2020
• 17 out of the 26 analysts tracking the stock have a buy recommendation; 2 sell calls
• The stock trades 1.8% higher than its 12-month consensus price target of Rs 1,605, implying a negative return potential.

• 9.4 lakh shares of GAIL India exchanged hands in a single large trade on the National Stock Exchange. The deal took place at Rs 90.95 per share.
• 9.83 lakh shares of Hindustan Unilever exchanged hands in a single large trade at Rs 2,001.25 per share
• 5.1 lakh shares of Tata Motors exchanged hansd in a single large trade at Rs 85.2.
• Three large trades took place for Power Grid Corporation where 7.5 lakh, 20 lakh and 9.78 lakh shares exchanged hands respectively.

• Among the top performers on the Nifty Smallcap index
• Up for the sixth straight day
• Locked in an upper circuit of 5% for all six days
• Longest winning streak since February 2019
• Up 33% in the last six trading sessions
• Today's volumes are 1.1 times higher than its 30-day average
• The stock will be reporting its fourth-quarter earnings today
• Trading near its 50-Day Moving Average of Rs 20.2
• Made a 52-week low of Rs 14 on May 21, 2020. Has been gaining since then
• Remains 73% below its 52-week high of Rs 76 on May 31, 2019
• 7 out of the 9 analysts tracking the stock have a buy recommendation; 0 sell calls
• Return potential for the stock as per Bloomberg data is 61.9%

20 lakh shares of the Mumbai-based private lender exchanged hands in a single large trade on the National Stock Exchange.

The deal took place at Rs 324.45 per share, as per Bloomberg data. Buyers and sellers in the trade remain unknown.

Shares are off the day's low, trading 0.2% lower at Rs 326.05.

The company's net profit more than doubled in the quarter ending March to Rs 58 crore as per its press release.

The company's revenue grew 20% while Ebitda rose 54% compared to the previous year to Rs 154 crore. Margins expanded to 12.3% from 9.6%.

The international branded business grew 32% while organic business saw a growth of 15% compared to last year.

Shares gained as much as 9.9% to Rs 26.75 and are up for the sixth straight day. This is the longest winning streak for the stock in two months.

The company reported a net profit growth of 54.8% for the quarter ending March, aided by tax reversals. It also saw an inventory write-down of Rs 900 crore for FY20.

Lower raw material costs and a weak rupee led to margins expanding to 14.9% from 11% in the previous year.

Carbon sales volume rose 11.1% in the quarter while Advanced Materials sales volume fell 6.7%. Cement revenue too saw a decline of 12.5% compared to the first quarter of 2019.

The Group’s plants in Europe and North America continued to operate, without any break during the second quarter of calendar year 2020.

Shares gained as much as 17.1%, the biggest single day jump since September 2019 to Rs 81.4, the highest level in nearly three months. The stock is up for the fifth straight day, its longest winning streak in a month.

REC: 30.1 lakh shares of the power company exchanged hands in a single large trade on the National Stock Exchange. The trade took place at Rs 88.5 per share.

Bharti Airtel: 25 lakh shares of the telecom company exchanged hands in a single large trade at Rs 552.7, on the National Stock Exchange, according to Bloomberg data.

Buyers and sellers of both the trades remain unknown.

Shares of REC are up for the third straight day, gaining 1.7% to Rs 89.4.

Shares of Bharti Airtel are down for the third time in the last four sessions, trading 1.4% lower at Rs 554.8.

• Nifty June futures add 2.3% and 2.2 lakh shares in Open Interest.
• Nifty Bank June futures add 6.9% and 95,680 shares in Open Interest.

Nifty: June 4 Expiry

• 9,500 Call: Premium down 7% to Rs 87. The contract as added 6.9 lakh shares in Open Interest.
• 9,400 Call: Premium falls 5.5% to Rs 135.3. The contract has added 5.4 lakh shares in Open Interest.
• 9,400 Put: Premium up 0.4% to Rs 131.5. The contract has added 5.61 lakh shares in Open Interest.

Nifty Bank: June 4 Expiry

• 18,000 Put: Premium up 14% to Rs 173.7. The contract has added 2.1 lakh shares in Open Interest.
• 18,500 Put: Premium up 11.6% to Rs 303. The contract has added 1.2 lakh shares in Open Interest.
• 19,500 Call: Premium down 23.3% to Rs 198.5. The contract has added 1.75 lakh shares in Open Interest.

The tyre-maker's profitability was impacted due to an exceptional item of Rs 28 crore relating to VRS for employees and the impact of Covid-19. The base quarter (Q4FY19) too had other income of Rs 30.6 crore that aided profits back then.

Ebitda rose 23.4% while margins expanded to 12.7% from 9.2% last year.

Shares gained as much as 6.3% to Rs 820 and are up for the seventh straight day. This is the longest winning streak for the stock since December 2017.

• Benchmark indices open with losses
• Nifty down 0.3% at 9,465
• Sensex down 0.5% at 32,045
• Nifty Bank down 1.3% at 18,915
• Nifty Midcap Index up 1%
• Nifty Smallcap Index up 0.7%
• India Volatility Index down 1.2% to 29.64
• Nifty I.T., Nifty Metal and Nifty PSU Bank index are the sectoral laggards
• Nifty Auto, Nifty FMCG and Nifty Media gain close to 1%
• Nifty Pharma index is the top sectoral gainer; up 2%
• Bharti Infratel is the top gainer on the Nifty; up 6.3%
• Axis Bank is the top Nifty laggard; down 2.8%
• 937 stocks on the NSE trade with gains while 617 are declining

The rupee has opened flat in today's trade, continuing with the trend of the last two trading sessions.

The currency opened at 75.71 against the U.S. Dollar as compared to Thursday's close of 75.76.

A Bloomberg survey of economists expects the fourth quarter GDP growth at 1.5% as compared to 4.7% in the previous quarter.

In the bond markets today, traders will look forward to the sale of bonds worth Rs 30,000 crore.

The 34.5% jump in the drugmaker's net profit was aided by a 185% rise in other income and an exceptional gain of Rs 83 crore.

The exceptional gain was due to profit on sale of its stake in Kyowa Pharmaceutical Industry.

Ebitda fell 32.5% while margins narrowed to 13.7% from 20% in the previous year.

Sales in its U.S. business declined 9% while that in Asia Pacific and RoW markets fell 15.5% and 36.8% respectively.

The board has recommended a dividend of Rs 6 per share for FY20.

Shares fell as much as 4.6% to Rs 840.5 and are down for the third straight day. It is also the worst performing stock on the Nifty Pharma index.

Thierry Delaporte, formerly the Chief Operating Officer of Capgemini Group has been appointed as the new MD & CEO of the Bengaluru-based I.T. company.

Outgoing MD & CEO Abidali Neemuchwala, who stepped down due to personal reasons, will relinquish office on June 1.

Chairman Rishad Premji will oversee the day-to-day operations until the new MD & CEO takes charge on July 5.

Shares gained as much as 1.4% to Rs 202.15, post the announcement.

Indian equity markets opened lower, in-line with its peers in Asia and tracking negative cues from Wall Street amid rising U.S.-China tensions. Today is also the first trading day of the June F&O series.

Asian markets continue to decline while futures on the Dow Jones pared some losses to trade 100 points lower

The S&P BSE Sensex opened 0.5% lower at 32,041 while the NSE Nifty 50 index opened at 9,422, down 0.7%. Both benchmarks had gained 5% each in the last two trading sessions.

All sectoral indices have opened lower with the Nifty Bank, Nifty Auto, Nifty I.T., Nifty Media and Nifty Metal indices opening more than 1% lower.

• Total cases top 5.8 million across the globe
• Death toll climbs to 3.6 lakh
• Latin America now accounts for 40% of the daily virus cases
• South Korea reports 58 new cases
• Japan's factory output falls the most since 2011
• Vietnam may allow visit from nations with no outbreak
• Sao Paulo begins to open despite record Covid-19 cases reported on Thursday
• India adds 7,466 new cases, 3,414 recoveries and 175 deaths in the last 24 hours. Total number of cases in India now at 1,65,799.

• Manappuram Finance: Plans to sell three-year bonds up to Rs 500 crore. To seek bids today. Coupon rate is 9.1%
• Future Retail (Onshore Issuance): Plans to sell three-year bonds up to Rs 200 crore. Coupon rate of 9.95%. To seek bids today.
• Hudco: To seek bids today for 10-year bonds up to Rs 1,040 crore. Coupon rate is 6.75%
• Welspun Enterprises: Plans to sell three-year bonds worth Rs 200 crore. Coupon rate is 8.85%. To seek bids today.

• Vodafone Idea: Financial Times has reported that Google is considering buying a 5% stake in the telecom company. Talks are in a very early stage.
• Rain Industries' Covid-19 Update: Group’s plants in Europe and North America continued to operate, without any break during the second quarter of calendar year 2020. Commercial operations of hydrogenated hydrocarbon resins plant in Germany resumed on May 18.
• Bajaj Electricals’ Covid-19 Update: Supply chains have been put under stress, resulting in loss of business. There is temporary pressure on cash flow, liquidity and resultant pressure on profitability and margins due to lower collection of receivables.
• Cadila Healthcare: Formulation manufacturing facility in Baddi has received an Establishment Inspection Report (EIR) with classification as No Action Initiated (NAI) from U.S. FDA. Inspection has been closed with zero observations.
• Pharma Stocks: Bloomberg News reports that the Government of India has freed export curbs on Paracetamol API with immediate effect.
• Sandur Manganese’s Covid-19 Update: The company has requested term lenders to defer interest payable for March-May 2020. The repayment of monthly installments for the Rs 400 crore term-loan starts from March 31, 2021.
• Narayana Hrudayalaya’s Covid-19 Update: The present situation has impacted the financials of the company with consolidated operational revenue for the month of April 2020 registering around 35% of pre-Covid period. This has resulted in negative profitability and consequently negative cash flows during this period.
• Bank of India & Karnataka Bank: Reserve Bank of India imposes a penalty of Rs 5 crore and Rs 1.2 crore respectively for not following asset classification norms.

For all that you need to know going into trade today and the earnings reported after market hours on Thursday, click here.

• Benchmark indices end lower after giving up gains
• S&P 500 gave up gains of as much as 1% post Trump's China comments
• Markets snapped a four-day gaining streak
• Jobless rolls shrank for the first time during the outbreak
• Fed Chair Jerome Powell to participate in a virtual discussion today
• Bloomberg Dollar spot index fell 0.3%
• Yield on the 10-year treasury stood at 0.69%
• West Texas Intermediate crude fell 2.6% to $33.65 per barrel. The commodity trades lower today as well.

Catch all the live action from the global markets here.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, is off the day’s low, down 0.6% to 9,403 as of 7:45 a.m.

Asian markets are declining this morning as tension persists between the U.S. and China. President Donald Trump may announce further measures on China later on Friday.

The Hang Seng opened 1.5% lower, while losses are modest in Japan and South Korea.

The U.S. markets gave up gains of over 1% on Thursday to end in the red. Futures on the Dow Jones are trading lower by 140 points.

Treasuries are flat, while West Texas Intermediate crude is down 1.8% to $33.11 per barrel.

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