Sensex, Nifty Post Losses For The Week Despite Final Hour Surge

Indian equity markets rebounded sharply from the lows of the day, to end with gains, near the highest point of the day. However, the surge was not enough to prevent losses on a weekly basis.

The S&P BSE Sensex ended 0.72% higher at 33,780. The index recovered 1,432 points from the day's low of 32,348.

The NSE Nifty 50 index too ended with gains of 0.72% but failed to cross the 10,000 mark. The index ended at 9,972 - with a recovery of 430 points from the day's low of 9,544.

Most sectoral indices managed to recover from the day's low to end with gains, except the Nifty I.T. and Nifty Media index, which ended 1.5% and 0.9% lower respectively.

The Nifty Auto index ended as the outperformer in today's trade, aided by gains in Mahindra & Mahindra, post its fourth quarter earnings. The index ended with gains of 2.9%.

The India Volatility Index ended above the mark of 30, gaining 3.9% to end at 30.82. Market breadth reversed in favour of the advances by the close of trade. 947 stocks on the NSE ended with gains while 852 posted losses.

For the week, the Sensex ended with losses of 1.48% while the Nifty reported losses of 1.67%. Both the benchmarks snapped a two-week gaining streak.

• Top gainer on the Nifty 500 Index
• Gains as much as 14% to Rs 1,375
• Biggest single-day gain since January 2004
• Trades at the highest level in three months
• Snaps three-day losing streak
• Today's volumes are 1.3 times higher than its 30-day average
• Nearing 100-Day Moving Average at 1,378.7
• Has gained 37% from its 52-week low of Rs 982 on March 25, 2020
• Four out of the six analysts tracking the stock have a buy recommendation; one sell call
• Return potential for the stock as per Bloomberg data is 3.8%

• Operations were hampered post resumption.
• Manufacturing locations were able to service market requirements due to lower demand.
• Difficult to assess financial impact on future performance.
• May face challenges with regards to availability of raw material.
• Financial results of Q1FY21 will be adversely impacted
• Have strong net worth, low debt and favourable liquidity position.
• Servicing all debt in a timely manner.
• Do not see any incremental risk to servicing financial arrangements.

Shares of the tyre company are trading 1.3% higher at Rs 63,688, snapping a three-day losing streak.

• Reliance Industries' 1,600 Call: Premium up 55.1% to Rs 37. The contract has shed 1.9 lakh shares in Open Interest.
• IndusInd Bank's 500 Call: Premium up 13.1% to Rs 64.2. The contract has shed 2,400 shares in Open Interest.
• Bajaj Finance's 2,500 Call: Premium up 65% to Rs 123. The contract has shed 11,500 shares in Open Interest.

• NCC: 27.66 lakh shares of the road construction company exchanged hands in a single large trade on the Bombay Stock Exchange.
• Federal Bank: 33.64 lakh shares exchanged hands in a single large trade.
• REC: 10.58 lakh shares exchanged hands in a single large trade.

Buyers and sellers in all the three trades were unknown, according to Bloomberg data.

• Shares of NCC are trading 3.2% higher at Rs 30.40
• Shares of REC trade 3.4% higher at Rs 105.25
• Shares of Federal Bank trade 0.3% lower at Rs 47.85

• Top performer on the Nifty Realty Index
• Gains as much as 3.8% to Rs 197.80
• Trades at the highest level in three months
• Up for the sixth straight day
• Longest winning streak since March 2019
• Gains 20% in the last six trading sessions
• Today's volumes are 5% below its 20-day average
• Has gained 47% from its 52-week low of Rs 133.65 on May 19, 2020
• 17 out of the 19 analysts tracking the stock have a buy recommendation
• Return potential for the stock as per Bloomberg data is 34.5%

• Volatile day of trade for the benchmark indices
• Nifty little changed at 9,908
• Sensex little changed at 33,554
• Nifty recovers nearly 400 points from the day's low
• Sensex recovers over 1,200 points from the day's low
• Nifty Bank down 0.2% at 20,491
• Nifty Bank recovers nearly 1,000 points from day's low
• Nifty Midcap Index up 0.5%
• Nifty Smallcap Index down 0.6%
• India Volatility Index up 6% to 31.45
• Nifty Auto, Nifty FMCG and Nifty Realty indices turn positive after paring losses
• Nifty I.T. index continues to trade 2% lower
• Most other sectoral indices are off the day's low
• Bharti Infratel is the top Nifty gainer; up 5.5%
• Zee Entertainment is the top Nifty laggard; down 4.1%
• 1,091 stocks on the NSE trade with losses while 679 gain

The rupee pared intraday losses to end little changed in today's trading session.

The currency ended at 75.84 against the U.S. Dollar as compared to Thursday's close of 75.78. It had made an intraday low of 76.10, which was the level at which it opened for trade.

In today's trade, the rupee managed to outperform five of its peers while six others outperformed the local currency.

However, on a weekly basis, the rupee was the third worst performer in Asia, behind the Philippine Peso and the Indonesian Rupiah.

Yield on the 10-year government bond ended at 5.797% as compared to the opening level of 5.776%.

• Revenue down 30.6% to Rs 370.6 crore
• Ebitda loss of Rs 154.9 crore
• Order book additions lowest in several years due to Covid-19 impact
• Business slowdown due to Covid-19 from mid-February in Europe and early March in other locations
• Trade receivable days rise to 116 from 94
• Debt rises to Rs 553.2 crore in FY20 from Rs 455.3 crore in FY19

Shares are locked in a 5% lower circuit at Rs 59.85.

• Among the worst performers on the BSE 500 index
• Down for the fifth straight session
• Locked in a 5% lower circuit at Rs 176.3
• Three lower circuits in the last five trading sessions
• Set to snap two-week gaining streak
• Down 18% in the last five trading sessions
• Today's volumes are 0.8 times higher than its 30-day average
• Trading around its 50-Day Moving Average of Rs 178
• Seven out of the 13 analysts tracking the stock have a buy recommendation; Three sell calls
• Return potential for the stock as per Bloomberg data is 41.7%

Trust Energy Resources, a wholly-owned subsidiary of the company has completed the signing of definitive agreements with Germany-based Oldendorff Carriers for the sale of three capesize ships.

The deal, which also includes a long-term freight contract with Oldendorff Carriers, has been done for a consideration of $212.76 million.

The transaction is likely to be completed in the next three to four weeks, subject to regulatory approval, the company said in an exchange filing.

Shares gained as much as 2.3% to Rs 42.15. The stock at one point traded lower by as much as 8.2%. The stock has seen a 10% intraday swing.

• Revenue seen 20.6% lower at Rs 9,884.9 crore
• Ebitda seen 11.3% lower at Rs 1,203.8 crore
• Net profit seen 66.5% lower at Rs 224.4 crore
• Copper sales may fall 20% to 80 KT
• Aluminium sales may fall 3% to 315 KT
• All estimates are for Standalone + Utkal and compared on a year-on-year basis

Key Factors At Play For Hindalco:

• Lower alumina prices to weigh on Utkal division and impact Ebitda
• Alumina prices down 26% while Aluminium prices down 9% compared to last year
• Commentary on cost rationalisation for the Aluminium segment a key factor to watch

Shares are off the day's low after falling as much as 5.7% to Rs 136.20 ahead of its earnings.

European markets opened lower again, setting them on track to post their first weekly decline in four.

The Stoxx 600 has opened 0.6% lower after plunging 4% on Thursday. All sectors on the index are trading with losses led by travel, oil & gas along with insurance.

Asian markets pared losses but ended lower while futures on the Dow Jones are trading off the day's high but with gains of over 150 points.

Brent Crude for the August contract is down 3.3% at $37.28 per barrel while gold is little changed at $1,732/Oz.

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

• Euro Stoxx 50 down 0.9% at 3,117
• DAX down 0.9% at 11,861
• CAC down 1% at 4,765
• FTSE 100 down 1.2% at 6,005
• IBEX 35 down 0.7% at 7,225

• Trades at the highest level since May 2019
• Gains as much as 6.2% to Rs 29.95
• Up in four out of the last six trading sessions
• Has gaind 34% in the last six trading sessions
• Set to post second straight weekly advance
• Today's volumes are 2.4 times higher than its 30-day average
• Stock trades in overbought territory with Relative Strength Index (RSI) at 76
• Has nearly tripled from its 52-week low of Rs 11.85 on March 25, 2020
• All three analysts tracking the stock have a buy recommendation

• Among the worst performers on the Nifty 500 index
• Falls as much as 7% to Rs 491.1
• Down for the fifth straight day
• Longest losing streak in a month
• Set to post first weekly loss in four
• Declined 14% in the last five trading sessions
• Today's volumes are 1.7 times higher than its 30-day average
• Nearing its 50-Day Moving Average at Rs 479.7
• Remains 37% above its 52-week low of Rs 365 on March 25, 2020
• Is also 37% below its 52-week high of Rs 804.7 on February 24, 2020
• Nine out of the 14 analysts tracking the stock have a buy recommendation
• Return potential for the stock as per Bloomberg data is 2.3%

• Revenue seen 16% lower at Rs 11,799 crore
• Net profit seen 46% lower at Rs 462 Crore
• Ebitda seen 41% lower at Rs 967 crore
• Ebitda margin may narrow to 8% from 12%
• All estimates are standalone and compared on a year-on-year basis

Factors At Play For Mahindra & Mahindra:

• Volumes fell 36% in Q4FY20
• Weaker operating leverage to impact margins
• Rural demand likely to pick up
• Update on M&M-Ford JV plant and new product launches some key things to watch

Shares are among the few gainers on the Nifty 50 index; up 0.3% at Rs 476, ahead of its earnings.

• Benchmark indices off the day's low but trade with losses
• Nifty down 1.5% at 9,755
• Sensex down 1.5% at 33,037
• Nifty Bank down 2.4% at 20,032
• Nifty Midcap Index down 1%
• Nifty Smallcap Index down 1.6%
• India Volatility Index up 6.8% to 31.66
• Nifty I.T., Nifty Media, Nifty PSU Bank Index remain lower by over 2%
• Nifty Auto, Nifty Metal and Nifty Realty down 1-1.5%
• Bharti Infratel is the top Nifty gainer; up 4.1%
• 40 out of the 50 Nifty stocks trade with losses
• Zee Entertainment is the top Nifty laggard; down 5.5%
• 414 stocks on the NSE trade with gains while 1,318 decline

Gold is in focus today after a rout in U.S. equities, boosting demand for haven assets, Bloomberg reports.

The yellow metal is set for its first weekly advance in the last four.

The bullion has gained close to 14% this year as the pandemic-driven lockdown continues to hurt the global economy.

As of 11:45 a.m. Indian Standard Time, Spot gold trades little changed at $1,730/Oz. The yellow metal is up 2.6% this week.

• Saw interruption in production, supply chain and manpower which impacted sales volumes and consequently revenue and market share.
• Aftermarket division of the company also had an impact on revenue.
• Expect market conditions to remain volatile and challenging.
• Currently have enough liquidity and tying up both working capital lines and long-term credit lines with various banks.
• Net debt of Rs 2,028 crore as of March 31, 2020.
• Sufficiently funded to meet all financial commitments during the year.
• Market is expected to revive and demand pick-up may happen in the short-term.

Shares are off the day's low after falling as much as 8.2% to Rs 46.90. The stock has declined in three out of the five sessions this week.

• Top performer on the Nifty Smallcap Index
• Locked in an upper circuit of 5% at Rs 28.95
• Up for the 10th straight day
• Locked in a 5% upper circuit on all the 10 days
• Longest winning streak on record
• Trades at a three-month high
• Up 60% in the last 10 trading sessions
• 15 out of the last 16 trading sessions have been upper circuits for the stock
• Today's volumes are 11.7 times higher than its 30-day average
• Stock trades in overbought territory with Relative Strength Index (RSI) at 83
• WF Asian Reconnaissance Fund increased its stake to 5.68% from 4.55%
• Has doubled from its 52-week low of Rs 14.05 on May 21, 2020
• Seven out of the 10 analysts tracking the stock have a buy recommendation; 0 sell calls
• Return potential of the stock as per Bloomberg data is 1.5%

The company has informed the exchanges that the Board of Directors have taken on record the delisting proposal of the company's promoters. It has also appointed ICICI Securities to conduct due diligence for the same.

Hexaware, on June 5, had informed the exchanges of the promoter's plan to acquire all fully paid-up equity shares of the company held by public shareholders and consequently delist the shares from the BSE and the NSE.

The board will meet again to take a decision on delisting once ICICI Securities submits its due diligence report.

Shares gained as much as 3.1% to Rs 330. The stock is the only gainer on the Nifty I.T. index.

The sugar and other agri-products manufacturer reported a 16.4% increase in revenue compared to the previous year even though the net profit remained flat due to higher taxes.

Lower raw material costs aided the expansion of Ebitda margin to 14.7% from 12.7% last year.

Operating profit for the sugar division was flat while it increased for the farm inputs and the nutraceuticals business.

The Rs 368 crore obtained through the sale of 2% stake in Coromandel International will be used to pare debt, according to the company.

Shares fell as much as 6.3% to Rs 215.25, snapping a three-day gaining streak.

The drugmaker received the final approval from the U.S. FDA for its Abbreviated New Drug Application (ANDA) Phenylephrine Hydrochloride injection.

The said drug is used in the treatment of clinically important hypertension, according to the company's exchange filing.

Phenylephrine Hydrochloride injection had total sales of approximately $45 million for the 12-month period ending March 2020, according to IQVIA.

The company also said that it now has 9 ANDA approvals and has filed 17 ANDAs for approval, developed by themselves along with their partners.

Shares gained as much as 9%, post the announcement to Rs 382.70 - the highest level for the stock in seven months.

• Nifty June futures add 12% and 13 lakh shares in Open Interest.
• Nifty Bank June futures add 23.3% and 3.74 lakh shares in Open Interest.

Nifty: June 18 Expiry

• 9,500 Put: Premium up 162.7% to Rs 103.9. The contract has added 6.6 lakh shares in Open Interest.
• 10,000 Call: Premium down 52.4% to Rs 51.6. The contract has added 8.47 lakh shares in Open Interest.
• 9,800 Call: Premium falls 43.8% to Rs 118.2. The contract has added 10.3 lakh shares in Open Interest.

Nifty Bank: June 18 Expiry

• 19,000 Put: Premium up 125.4% to Rs 354. The contract has added 1.6 lakh shares in Open Interest.
• 21,000 Call: Premium falls 47% to Rs 219.25. The contract has added 1.43 lakh shares in Open Interest.
• 18,000 Put: Premium up 193% to Rs 149.45. The contract has added 1.72 lakh shares in Open Interest.

The auto component manufacturer reported a 28% decline in its revenue while its profitability fell 56% to Rs 46.8 crore.

Ebitda was down 33.4% compared to the previous year while margins declined to 16.4% from 17.6%.

Export sales for the company were impacted in March as key customers in the U.S. faced a slowdown due to the cyclical nature of the industry.

Shares fell as much as 5.6% to Rs 300 and are down for the second straight day.

The non-bank lender has informed the exchanges about the reduction in its Retail Prime Lending Rate (RPLR).

According to the exchange filing, HDFC has reduced its Retail Prime Lending Rate by 20 basis points. The Adjustable Rate Home Loans (ARHL) are benchmarked on this rate.

The reduction in lending rates is effective from today and will apply to all retail home loan and non-home loan customers.

Shares fell as much as 4.33% to Rs 1,710 on the National Stock Exchange and are among the top contributors to losses on the Nifty 50 index.

• Benchmark indices continue to trade with losses
• Nifty down 2.2% to 9,682
• Sensex down 2.2% to 32,786
• Nifty Bank down 3.3% to 19,854
• Nifty Midcap Index down 2.3%
• Nifty Smallcap Index down 2.9%
• India Volatility Index up 10% to 32.62
• All sectoral indices trade with losses
• Nifty Media Index is the top sectoral laggard; down 4%
• Nifty PSU Bank index is the other sectoral laggard; down 3.7%
• Nifty Metal, Nifty I.T. and Nifty Realty indices down over 2.5%
• Bharti Infratel is the top Nifty gainer; up 1.5%
• 45 out of the 50 Nifty constituents decline
• Tata Motors is the top Nifty laggard; down 6%
• 1,417 stocks on the NSE decline while 243 are advancing

The currency opened with losses for the second straight day, going past the 76 mark against the U.S. Dollar for the first time since April 28.

The rupee opened at 76.10 as compared to Thursday's close of 75.78.

In focus today will be crucial macro data. India's Consumer Price Inflation data for the Month of May. A Bloomberg survey of economists expect the figure at 5.5% as compared to 5.8% in the previous month.

Industrial production data for the month of April will also be reported today.

Within the bond markets, traders are looking forward to the sale of government bonds worth Rs 30,000 crore.

The integrated biotechnology company announced that the U.S. FDA has granted its approval to Semglee - the insulin glargine injections.

The drug, co-developed by Mylan and Biocon Biologics will now be classified as a biologic after being approved as a drug product.

Shares gave up gains of as much as 2.4% in early trade and now trade 0.4% lower at Rs 385.6, down for the second day in a row.

Ratings agency Standard and Poor now expects India's real GDP growth in FY21 to contract 5%. S&P also mentioned that India's recovery from Covid-19 will be the key to its sovereign rating.

The ratings agency now pegs India's real GDP growth at 8.5% for FY22. Fiscal deficit may rise to 11% of GDP in FY21, owing to weak revenue generation that will account for the bulk of the rise in overall deficit.

India's wide range of structural trends, including halthy demographics and competitive unit labour costs work in its favour, according to S&P.

Source: Bloomberg

India's largest lender approved divesting 2.1% stake in SBI Life Insurance in order to comply with the minimum shareholding norms.

The company will sell 2.1 crore shares of SBI Life Insurance through an Offer For Sale (OFS) process.

The floor price of the OFS, which is Rs 725 per share is a 2.1% discount to Thursday's closing price.

The OFS opens today for non-retail investors while for retail investors, it will open on June 15.

Shares of SBI fell as much as 4.15% to Rs 169.80, while those of SBI Life fell 2.1% to Rs 725.1.

Indian equity markets mirrored the overnight rout on Wall Street and weak Asian cues to open gap down in today's trade.

The S&P BSE Sensex opened 3.3% or 1,100 points lower at 32,436 while the NSE Nifty 50 index opened at 9,544, down 3.6% or 357 points. All the constituents of the Nifty 50 index opened with losses.

This was the biggest single-day drop for the Sensex in four weeks, while for the Nifty, it was the biggest drop in six weeks.

All sectoral indices opened with losses. The Nifty Bank, Nifty Auto, Nifty Media, Nifty Metal and Nifty Realty indices opened with cuts of over 4%.

The Nifty PSU Bank index was the top sectoral laggard, opening 5.5% lower.

• Total cases cross the 7.5 million mark
• Death toll crosses 4.2 lakh
• Houston may impose stay-home orders as cases in the city surge again
• IMF Chief Economist Gita Gopinath said the global economy will suffer 'significant scarring' from the virus.
• Singapore to issue contact-tracing device.
• Japan may extend entry ban even as Tokyo lifts its virus alert.
• China reports 7 new cases
• Supreme Court in Australia’s New South Wales ruled against a weekend rally to support refugee rights

• State Bank Of India: Approves divestment of 2.1 crore shares, totalling to 2.1% stake in SBI Life Insurance. Divestment in order to achieve minimum public shareholding of 25%. The divestment will be done through an Offer for Sale (OFS) process as per SEBI guidelines. Offer opens on June 12 for non-retail investors and June 15 for retail investors. The floor price of Rs 725 per share is a 2.1% discount to Thursday's closing price.
• Oil India: Fire at the company's well in Assam has been contained from spreading to nearby villages.
• Redington India's Covid-19 Impact: Vendors believe that business should be as usual from the second quarter of FY21. All the warehouses are currently operational while 70% of them operated through May.
• Hikal's Covid-19 Impact: Current capacity utilisation of 80-85% across manufacturing sites. No cancellation of orders. Not opted for any moratorium and continue to meet all debt obligations.
• Kirloskar Ferrous Industries: Commissions 20 MW power generation plant attached to the coke oven plant in Karnataka. The power will be generated by using waste gas generated from the coke oven plant.It will be utilized primarily for captive consumption resulting in reduction of power cost.
• Lemon Tree Hotels: WF Asian Reconnaissance Fund increased its stake from to 5.68% from 4.55% on June 9.
• Non-Nifty Earnings Today: Castrol India, Indo Count Industries, IOL Chemicals, Suprajit Engineering, Goodyear India, Vascon Engineers.

To know more about companies reporting earnings after market hours, F&O updates and more, click here.

• Benchmark indices fall most in three months
• The Dow Jones ended 7% lower while the S&P 500 declined 6%
• The KBW Bank index of heavyweight financials fell 9%
• U.S. Jobless claims continued to remain high with another 1.5 million opting for benefits
• Treasury Secretary Steven Mnuchin said the economy should not shut down even if there is a rise in cases
• Bloomberg Dollar Spot Index rose 1.2%
• Yield on the 10-year treasury fell six basis points to 0.67%
• West Texas Intermediate crude fell 8.7% to $36.17 per barrel. The commodity trades another 3.6% lower today.

Get your daily fix of the global markets here.

Good Morning!

Indian equity markets may continue witnessing a selloff after an overnight rout on Wall Street and weak cues from early Asian trading.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 2.2% to 9,625 as of 7:55 a.m. The Sensex and the Nifty 50 have declined more than 2% so far during the week.

Asian markets are declining on the final trading day of the week as investors remain concerned about a second wave of Covid-19 infections. Benchmark indices in Japan and Australia are down over 2%, while South Korea is down 3%. Markets in China and Hong Kong, too, have opened lower.

Futures on the Dow Jones are trading 330 points higher after the benchmark gauge fell 7% on Thursday.

Treasuries and the U.S. dollar held gains, while West Texas Intermediate crude fell 3.6% to $35 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.