Sensex, Nifty End With Gains Of Nearly 6% This Week

Indian equity markets gained for the second successive week, extending their rebound from the lows made in March this year.

The S&P BSE Sensex ended Friday's trading session with gains of 0.9% at 34,287 while the NSE Nifty 50 ended at 10,142, gains of 1.1%. Both benchmark indices have now advanced in eight out of the nine trading sessions in the previous two weeks.

The Nifty Bank outperformed the benchmarks in today's trading session. The index ended 3.1% higher at 21,034.

The top sectoral gainer on Friday was the Nifty PSU Bank index, ending with gains of 7.54% led by State Bank of India. The Nifty Media Index ended 5.5% higher while the Metals Index gained 4.2%.

Market breadth remained in favour of the advances with 1,543 stocks on the NSE ending with gains while 280 posted losses.

For the week, the Sensex and Nifty ended with gains of 5.75% and 5.85% respectively.

The Reserve Bank of India has pushed back on the Hinduja Brothers' plan to raise stake in IndusInd Bank, Bloomberg News reports citing people familiar with the matter.

The Hinduja Brothers had applied to the central bank for approval to raise stake in the private lender to 26% from the earlier below 15%.

Shares of IndusInd Bank have fallen over 70% this year over concerns of promoter pledges.

Representatives for the Hindujas, IndusInd Bank and the RBI did not respond to Bloomberg News' request for a comment.

Shares of IndusInd Bank trade 2.1% higher at Rs 423.75, after recovering from the day's low.

• Biggest single-day gain since September 2015
• Gains as much as 14.4% to Rs 143
• Trades at the highest level in nearly two months
• Has gained in five out of the last seven trading sessions
• Up 27.6% in the last seven trading sessions
• Today's volumes are double than its 30-day average
• Breaks above its 50-Day Moving Average of Rs 129
• Has gained 47% from its 52-week low of Rs 97 on May 6, 2020
• 22 out of the 23 analysts tracking the stock have a buy recommendation
• Return potential for the stock as per Bloomberg data is 9.3%

The company in its Covid-19 update anticipated sales to substantially recover by the first half of calender year 2020.

It also said that since most of the company's revenue comes from exports, the impact on the business will not be material as it does not see any impact on international demand in the short-term.

The press release said that the company was mulling to start third shift full operations to meet targets.

Shares are up for the fifth straight day, gaining as much as 15.3% before cooling off. This is the best winning streak for the stock since September 2019.

• Trading at the highest level in nearly 11 months
• Up for the fourth straight day
• Gains as much as 17.44% to Rs 10.10
• Has not declined in the last nine trading sessions (Ended unchanged on June 1, 2020)
• Up 80% in the last nine trading sessions
• Set to post fourth weekly gain in five (Ended unchanged for the week ending May 10, 2020)
• Today's volumes are 3.6 times higher than its 30-day average
• Stock in overbought territory with Relative Strength Index (RSI) at 91
• 5 out of the 20 analysts tracking the stock have a buy recommendation; 6 sell calls
• The stock trades 37% higher than its 12-month consensus target of Rs 6.2, implying a negative return potential

• Net profit of Rs 3,580 crore from Rs 838.4 crore
• Net Interest Income at Rs 22,766 crore from Rs 22,954 crore
• Other income component of Rs 13,346 crore
• Exceptional item of Rs 2,731 crore from sale of stake in SBI Cards
• Gross NPA at 6.15% from 7.53% sequentially
• Net NPA at 2.23% from 2.65% in sequentially
• Provisions for NPA at 11,983 crore from Rs 8,193 crore sequentially
• Provision Coverage Ratio of 83.62% as of March 31, 2020
• Fresh slippages in Q4 at Rs 8,105 crore
• Net Interest Margin for the quarter at 2.94%

On Covid-19:

• Situation remains uncertain and evaluation on an ongoing basis.
• Major challenges would arise from extended working capital cycle and waning cash flows.
• Do not see any significant impact on liquidity and profitability.

Shares are off the day's high, trading 2.6% higher at Rs 179 post the announcement. Shares traded as much as 5% higher in early trade.

• Benchmark indices trade at the day's high
• Nifty up 1.4% at 10,167
• Sensex up 1.1% at 34,369
• Nifty Bank up 2.4% at 20,873
• Nifty Midcap Index up 1.5%
• Nifty Smallcap Index up 3.1%
• India Volatility Index down 2.5% to 28.94
• Nifty Media Index now the top sectoral gainer; up 3.8%
• Nifty Metal, Nifty PSU Bank Index gain 3% each
• Nifty Auto and Nifty Realty up over 1.5%
• Tata Motors remains the top Nifty gainer; up 10.3%
• TCS remains the top Nifty laggard; down 1.6%
• 1,506 stocks on the NSE trade with gains while 271 decline

The currency yet again gave up all of its gains made during the session to end little changed on Friday.

The rupee ended at 75.58 against the U.S. Dollar as compared to Thursday's close of 75.57.

For the day, the rupee was the second worst performing currency among its Emerging Market peers, second only to the Japanese Yen.

For the week, the rupee ended with a positive bias, registering its second straight weekly gain. However, the gains were only 0.05%.

On a weekly basis, the currency was the third worst performing currency behind the Japanese Yen and the Hong Kong Dollar.

In the bond markets, India sold debt worth Rs 34,000 crore, Rs 4,000 crore higher than planned, the central bank said in a statement.

The greenshoe option was exercised in the 2022 and the 2060 bonds that were sold.

Yield on the 10-year government bond ended at 5.768% as compared to the opening level of 5.764%.

• Reliance Industries' 1,600 Call: Premium up 10.8% to Rs 50.95. The contract has added 3.17 lakh shares in Open Interest.
• State Bank of India's 180 Call: Premium up 43.1% to Rs 11.45. The contract has added 30.87 lakh shares in Open Interest.
• Tata Motors' 110 Call: Premium up 141.5% to Rs 7.85. The contract has added 6.32 lakh shares in Open Interest.

• Sale of petroleum products fell 18% in March 2020 due to the lockdown.
• Fall in crude prices impacted FY20 earnings due to inventory loss.
• Demand for petroleum products fell 46% in April.
• Sales have improved in May, but still lower compared to May 2019.
• Refinery operations were curtailed to 39% in April.
• Capacity utilisation of refineries rose to 75-80% in April.
• Substantial increase in borrowings to meet contractual and statutory obligations.
• Borrowings have reduced after rise in sales and lower crude prices.
• Planned crude cargoes were deferred or cancelled with mutual consent to manage inventory.
• On track to spend the approved capex for FY20.

Shares gained as much as 4.8% to Rs 90, post the announcement.

India's largest stainless steel manufacturer dispatched export orders worth over 12,000 tonnes in the month of May, it said in an exchange filing.

The export dispatch comprised more than 40% of its entire share and higher than the normal range of 18-20%. The company said that export volumes are now back to the pre-Covid-19 period.

Shares gained as much as 15.2% - the biggest single day jump since February 2019 to Rs 37.75. The stock is up for the third straight day and is trading at the highest level in three months.

• Second best performer on the Nifty Smallcap Index
• Gains as much as 19.3% to Rs 313.9
• Biggest single-day gain since November 2019
• Up for the seventh straight session
• Longest winning streak since March 2019
• Trades at the highest level in three months
• Gains 43.5% in the last seven trading sessions
• Today's volumes are 11.6 times higher than its 30-day average
• Stock trades in overbought territory with Relative Strength Index (RSI) at 79
• Has gained nearly 50% from its 52-week low of Rs 209.5 on March 30, 2020
• 2 out of the 3 analysts tracking the stock have a buy recommendation; 0 sell calls

European stocks are set to end the week with gains after benchmarks across the continent have opened on a firm footing.

The Stoxx 600 index has opened 0.7% higher and is set for its best weekly gain in nearly two months after the ECB announced a bigger-than-expected bond-buying program on Thursday.

Banks, auto and insurance stocks are leading the gains while healthcare stocks are underperforming. Futures on the Dow Jones are trading higher by 240 points.

Brent Crude for the August contract reversed losses to gain as much as 0.9% to $40.36 per barrel while gold fell 0.4% to $1,707.93/Oz and is headed for a weekly loss.

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

• Euro Stoxx 50 up 1.2% to 3,300
• DAX up 1.15% to 12,574
• CAC up 1.2% to 5,072
• FTSE 100 up 0.64% to 6,382
• IBEX 35 up 1.8% to 7,705

The company's arm Railway Energy Management has secured its largest mandate from the Indian Railways.

The mandate involves handling, tendering, installation, supervision and managing power supply from 3 GW solar power plants that will be set-up on vacant land of the railways.

The company would earn long-term revenue through supply management from these installations, besides bid management fee in the beginning.

The long-term revenue is estimated at around Rs 20 crore per year during the life of the project.

Shares gained as much as 5.1% to Rs 251, snapping a two-day losing streak.

The U.S. FDA has granted final approval to Zydus Cadila's for marketing the Atazanavir Capsules in strengths of 150, 200 and 300 mg, the drugmaker said in an exchange filing.

The drug is used to treat infections of the Human Immunodeficiency Virus (HIV) and will be manufactured at the group's manufacturing facility at SEZ, Ahmedabad.

With this, the total number of approvals for the company have risen to 291.

Shares recovered from the day's low to trade little changed at Rs 362.1. The stock had a six-day gaining streak until closing on Thursday.

• Noted good demand for its products from customers as construction sites become operational.
• Do not expect any long-term impact of the lockdown.
• Revenue and profitability might be impacted in Q1FY21.
• Expect operations to fully normalise by Q3FY21.
• Not availed any moratorium in its loan repayments
• Focussing on faster receivables collection and reduction in debt.
• Not faced any supply side disruptions since operations resumed.

Shares gained as much as 7.1% to Rs 1,674 and is up for six out of the last seven trading sessions.

• Benchmark indices swing between the day's high and low
• Nifty up 0.6% at 10,090
• Sensex up 0.4% at 34,120
• Nifty Bank up 1.1% at 20,610
• Nifty Midcap Index up 1%
• Nifty Smallcap Index up 2.4%
• India Volatility Index down 2.2% to 29
• Nifty Metal Index remains the top sectoral gainer; up 3.7%
• Nifty Media Index is the other sectoral gainer; up 3%
• Nifty Pharma, Nifty Realty and Nifty PSU Bank gain between 1-2%
• Tata Motors is the top Nifty gainer; up 8.5%
• TCS remains the top Nifty laggard; down 2%
• 1,410 stocks on the NSE trade with gains and 301 decline

• Gains as much as 10% to Rs 108.35
• Trades at the highest level in three months
• Biggest single-day gain in over a month
• Has declined only on four instances in the last five weeks
• Up 32% in the last 13 trading sessions
• Today's volumes are 2.6 times higher than its 30-day average
• Nearing its 100-Day Moving Average at Rs 117.8
• Stock in overbought territory with Relative Strength Index (RSI) at 76.
• Has gained 70% from its 52-week low of Rs 63.5 on March 24, 2020
• 20 out of the 38 analysts tracking the stock have a buy recommendation; 4 sell calls
• The stock is trading 3.9% higher than its 12-month consensus target of Rs 103.6, implying a negative return potential.

The drugmaker has informed the exchanges that it has initiated Phase II clinical trials on AQCH - a phytopharmaceutical drug, as a potential treatment for Covid-19 patients.

The first phytopharmaceutical drug was approved for clinical trial by the DGCI, which will be conducted across 12 centers in India in 210 patients.

Shares are up for the fourth straight day, gaining as much as 3.3% to Rs 511.

• Fund to help push deployment of PoS infrastructure in tier-3 to tier-6 towns and North Eastern states.
• RBI to contribute Rs 250 crore to the fund, accounting for half of the fund.
• Remaining corpus to come from card issuing banks and card networks.
• Fund to get recurring contributions to cover operational expenses fron card issuing banks and card networks.
• Fund will be governed through an Advisory Council and administered by the RBI.

Source: RBI

• Significant disruptions in the equipment business.
• Multimodal Transport Operations (MTO) and Container Freight Station (CFS) business comprising of 90% of the total revenues remained largely unaffected.
• Demand has started to pick up in May 2020.
• No significant impact on capital and financial resources.
• Most operations are returning to normalcy.

Shares gained as much as 7.7% to Rs 80.35. The stock has gained in seven out of the last eight trading sessions.

The company's revenue and net profit were largely flat during the quarter, declining 4% and 2% respectively compared to the previous year.

Lower cost of raw material aided expansion of Ebitda margin to 20.9% from 19.3%.

The company's technical textile segment declined 22% while chemical segment saw a growth of 5%.

The speciality chemical maker has stated that their fluorochemicals business was adversely impacted due to continued stress in the auto sector.

Brokerage firm Ambit has retained its buy rating on the stock with a price target of Rs 4,000.

Shares fell as much as 3.8% to Rs 3,652 on the National Stock Exchange.

The Economic Times has reported that the Wadia Group is considering raising as much as Rs 4,000 crore by selling shares of the company.

The group plans to sell shares through block deals in the open market, the newspaper cited people with knowledge of the matter.

The group is likely to invest the proceeds from this sale in its other ventures like GoAir and Bombay Dyeing.

"We have seen a sharp surge in share prices and this can be capitalised for the growth of other businesses as well," the reported cited one of the people as saying.

Shares of Britannia have risen 13% this year, outperforming the benchmark Nifty 50 index, which has declined 17.2%.

Shares are down for the second straight day, trading 0.9% lower at Rs 3,418.

Shares of Bombay Dyeing have reacted positively to the news, gaining as much as 15.3% to Rs 66.45. The stock is now up for the eighth straight day - its longest winning streak since February 2018.

• Nifty June futures add 4.5% and 4.55 lakh shares in Open Interest.
• Nifty Bank June futures add 13.2% and 1.78 lakh shares in Open Interest.

Nifty: June 11 Expiry

• 10,200 Call: Premium up 17.8% to Rs 93.85. The contract has added 5.41 lakh shares in Open Interest.
• 10,000 Put: Premium falls 21.6% to Rs 115.25. The contract has added 6.73 lakh shares in Open Interest.
• 10,100 Call: Premium up 17.8% to Rs 137. The contract has added 4.82 lakh shares in Open Interest.

Nifty Bank: June 11 Expiry

• 22,000 Call: Premium up 32.3% to Rs 139.5. The contract has added 2.65 lakh shares in Open Interest.
• 21,500 Call: Premium up 30.2% to Rs 244. The contract has added 2.4 lakh shares in Open Interest.
• 21,000 Call: Premium up 14.5% to Rs 361.9. The contract has added 2.13 lakh shares in Open Interest.

• Benchmark indices off the day's high
• Nifty up 0.4% at 10,070
• Sensex up 0.25% at 34,066
• Nifty Bank up 1% at 20,591
• Nifty Midcap Index up 0.8%
• Nifty Smallcap Index up 1.9%
• India Volatility Index down 1.4% to 29.27
• Nifty FMCG Index is the only sectoral laggard; down 0.4%
• Nifty Metal Index is the top sectoral gainer; up 2.8%
• Nifty Media and Nifty PSU Bank Index gain over 2% each
• Hindalco is the top Nifty gainer; up 5.2%
• TCS is the top Nifty laggard; down 2.1%
• 1,373 stocks on the NSE trade with gains while 281 decline

The company has informed the exchanges that promoters have offered to acquire all fully paid up equity shares of the company, held by public shareholders and de-list the stock from the exchanges.

Promoters of the company held 62.4% stake in the company as of March 31, 2020, the exchange filing said. Public shareholding stood at 37.6%.

The promoter / promoter group is considering a delisting price of Rs 285 per share, a 9.8% premium to Thursday's closing price.

The company will now convene a board meeting on June 12 to consider and approve the delisting proposal.

Shares are locked in an upper circuit of 20% at Rs 311.40, snapping a three-day losing streak.

The rupee opened with gains on Friday after declining for two consecutive sessions this week.

The currency opened at 75.35 against the U.S. Dollar as compared to Thursday's close of 75.58.

Scotiabank believes that the rupee will trade in a range of 75-76 against the U.S. Dollar in the near-term. It also said that foreign reserves will keep rising as equity inflows remain strong.

In the bond market, traders will look forward to the release of the minutes of RBI's monetary policy meeting where it cut repo rates by 40 basis points.

India's central bank will also sell government bonds worth Rs 30,000 crore, including 2030 bonds worth Rs 18,000 crore.

The company has informed the exchanges that the Heavy Civil Infrastructure business has secured an order from the Government of Telangana.

The order involves undertaking the Sita Rama Lift Irrigation scheme to irriate a command area of 9.36 lakh acres in Khamman, Kothagudem and Mahbubabad districts of Telangana, the company said in a statement to the exchanges.

The concerned order falls under the 'large' category, implying a total value between Rs 2,500 crore - Rs 5,000 crore, according to L&T's order classification methodology.

Shares gained as much as 2.84% to Rs 957.15. The stock is also set to report its fourth quarter earnings today.

The real estate player reported a net loss of Rs 1,858 crore in the quarter ending March. An exceptional item of Rs 330.7 crore also contributed to the loss.

Ebitda fell 40.6% while margins narrowed to 18.7% from 21.3%.

It also made an exceptional provision of Rs 272 crore to account for the Covid-19 impact.

Brokerage firm UBS has maintained its buy rating on the stock with a price target of Rs 195. UBS believes that despite a loss in Q4, the company's performance was largely on expected lines.

Shares fell as much as 4.8% - the most in a month to Rs 148.8.

The telecom service provider reacted to a Reuters report of Amazon looking to buy stake in the company worth $2 billion.

In its response to the exchanges, the company said that no such proposal is currently under consideration and that it routinely works with all digital and OTT players.

Shares rose as much as 3.1% to Rs 590 before cooling off. The stock is up for three out of the five trading sessions this week.

Indian equity markets opened the final trading day of the week on a positive note. Cues from Asian markets remain mixed while futures on the Dow Jones are trading higher by 100 points.

The S&P BSE Sensex opened 0.64% higher at 34,198 while the NSE Nifty 50 opened at 10,093, gaining 0.65%.

For the week, the Sensex was up 5.5% while the Nifty gained 5.7% as of closing on Thursday.

Among sectoral indices, PSU Banks and Media index were the outperformers, opening with gains of over 1.5%. The realty index opened lower for the second day in a row, down 0.5%.

• Total global cases cross the 6.6 million mark
• Death toll rises to 3.89 lakh
• A study that said Hydroxychloroquine raised the risk of heart side-effects and death has been retracted by the authors
• Brazil surpasses Italy with the third most fatalities in the world
• New York city reported no confirmed fatalities for the first time since March
• South Korea adds 39 new cases
• Five imported cases reported from China

• Mahindra & Mahindra: To sell five-year bonds up to Rs 500 crore. To seek bids for the same today at a coupon rate of 6.19%.
• Indian Hotels: To sell 3-year bonds up to Rs 300 crore at a coupon rate of 7.95%. To seek bids for the same today.
• Glenmark: To sell U.S. Dollar bonds up to four years.

Source: Bloomberg

• Reliance Industries: Abu Dhabi-based sovereign investor Mubadala Investment Company to invest Rs 9,094 crore in Jio Platforms. Investment to translate into 1.85% stake in Jio platforms. Deal values the company at Rs 4.9 lakh crore and an Enterprise Value of Rs 5.16 lakh crore. This is the 6th major investment in Jio Platforms in six weeks.
• Bharti Airtel: Says concerned with media reports of Amazon looking to buy stake in the company. The company said that no such proposal is in consideration at this stage.
• Power Grid: The Department of Telecommunications in a revised assessment order has asked the company to pay Rs 13,613.66 crore as a license fee. The order is related to NLD license fees for FY07 and FY10 and includes interest, penalty along with interest on penalty.
• Lupin: The European Commission has granted marketing authorisation to the company and Mylan for Nepexto - a biosimilar to etanercept.
• UPL: S&P Global Ratings revises its outlook to negative from stable. Long-term issuer credit rating affirmed at BBB-.
• NIIT: The company's board has approved divesting its schools learning business to a strategic or financial partner through sale of its holding in its wholly-owned arm MindChampion Learning Systems or in any appropriate manner.
• RITES: The company’s arm, Railway Energy Management has secured its largest mandate from the Indian Railways for handling, tendering, installation, supervision and managing power supply from 3 GW solar power plants to be set-up on vacant Indian Railways land.
• HCL Tech: To transfer its software offerings to Google Cloud as part of expanding its strategic partnership with Google.
• Safari Industries: Board approved raising shareholding limit for foreign investors from 24% to 49%.
• Non-Nifty Earnings Today: Alkem Laboratories, Gujarat Gas, Aditya Birla Capital, Exide Industries, Jyothy Labs and Saregama.

To know about companies sharing their Covid-19 update, F&O cues, earnings reported after market hours and brokerage reports, click here.

• Benchmark indices ended mixed
• S&P 500 snapped a four-day winning streak
• Dow Jones ended little changed but in the positive
• Valuations surge to the highest since 2000
• Technical levels on the S&P 500 pushed into overbought territory
• U.S. Labour market report to be out later today. Report may show American unemployment soared to 19.5% in May. The highest since 1930.
• Yield on the 10-year treasury rose seven basis points to 0.81%.
• West Texas Intermediate crude fell 0.4% to $37.13. The commodity is set for its sixth straight weekly gain

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

Good Morning!

Indian equity markets snapped a six-day winning run on Thursday, tracking mixed cues in the global markets and after reporting the biggest single-day spike in Covid-19 cases.

Yet, the six-day surge puts markets firmly on course to post gains on a weekly basis. So far during the week, the S&P BSE Sensex and the NSE Nifty 50 index have gained 5.5% and 5.7%, respectively.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.33% to 10,047 as of 8:00 a.m.

Asian markets continue to trade mixed over investor concerns that the recent rally in global equities was too swift and too soon. Benchmarks in Japan were underperforming, while those in China, South Korea and Australia were flat.

Oil prices are lower but are set to post their sixth straight weekly advance, while treasuries were steady.

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