Sensex, Nifty Snap Two-Day Losing Streak; End 2% Higher

• Benchmarks snap two-day losing streak but end off the day's high
• Nifty ends 2 percent higher at 9,383
• Sensex ends 2 percent higher at 32,008
• Nifty Bank ends 4.1 percent higher at 19,634
• Nifty Midcap index ends 2.3 percent higher
• Nifty Smallcap index ends 2.5 percent higher
• India Volatility Index ends 1.6 percent higher at 38.83
• Nifty PSU Bank ends as top sectoral gainer; up 6.1 percent
• Nifty Auto, Nifty Metal end 2.5 percent higher
• Nifty Pharma (Down 1.1 percent) and Nifty FMCG (Down 0.4 percent) are the only sectoral laggards
• Zee Entertainment ends as the top Nifty gainer; up 7.7 percent
• Nestle India ends as the top Nifty laggard; down 5.2 percent
• 1,324 stocks end with gains while 452 end with losses

Indian equity markets snapped a two-day losing streak after giving up almost half of their opening gains. The focus now shifts to Finance Minister Nirmala Sitharaman's press conference at 4 P.M. where she will divulge details of the Rs 20 lakh crore relief package announced by Prime Minister Narendra Modi on Tuesday.

The S&P BSE Sensex ended 2 percent higher at 32,008 while the NSE Nifty 50 too gained 2 percent but failed to hold the 9,400 mark, ending at 9,383. Both benchmark indices ended substantially off their day's high.

Among sectoral indices, the Nifty PSU Bank ended as the top gainer, up 6.1 percent while the FMCG index joined the Nifty Pharma to be the only sectoral laggards.

1,324 stocks on the NSE ended with gains while 452 posted losses at the end of the day.

• Nifty: Buy 9,400 call of the May 14 expiry for target of Rs 230 and stop loss of Rs 40
• Nifty Bank: Buy 20,300 call of the May 14 expiry at Rs 150-160 for target of Rs 400 and stop loss of Rs 50
• Buy Reliance Industries for target of Rs 1,700 and stop loss of Rs 1,440
• Buy Bharat Electronics for target of Rs 75 and stop loss of Rs 61

• Among the top performers on the Nifty 500 index
• Gains as much a 18.2 percent to Rs 70.75
• Biggest single-day gain since September 2013
• Snaps three-day losing streak
• Has gained only thrice in the last 12 trading sessions
• Today's volumes are 2.8 times higher than its 30-day average
• Breaks above its 50-day Moving Average at Rs 64.1
• Trades nearly 50 percent below its 52-week high of Rs 128.7 on May 27, 2019
• 12 out of the 15 analysts tracking the stock have a buy recommendation; 2 sell calls
• Return potential for the stock as per Bloomberg data is 41.4 percent

• Buy Tech Mahindra for target of Rs 585 and stop loss of Rs 530
• Buy Bata for target of Rs 1,450 and stop loss of Rs 1,345

10.8 lakh shares of the utility company exchanged hands in a single large trade on the National Stock Exchange, as per Bloomberg data.

Buyers and sellers of the trade were not immediately known.

Shares cooled off after gaining as much as 6.55 percent. They now trade 2.2 percent higher at Rs 166.95.

• Net profit down 28 percent year-on-year to Rs 1,291 crore
• Lower sales volumes, higher promotion expenses impact net profit.
• Revenue down 15 percent to Rs 18,198 crore
• Ebitda down 32 percent to Rs 1,546.4 crore
• Ebitda margins narrow to 8.5 percent from 10.5 percent
• Lower capacity utilisation, one-time impact of BS-IV discontinuation impact margins
• Board recommends final dividend of Rs 60 per share of Rs 5 each
• All numbers are standalone and compared on a year-on-year basis.

Shares cooled off from the day's high and now trade 2 percent higher at Rs 5,051 post the earnings.

22 lakh shares of the state-run lender exchanged hands in two large trades on the National Stock Exchange, as per Bloomberg data.

Buyers and sellers in the trade were not immediately known.

The stock gained as much as 10 percent to Rs 45.15, its biggest one-day move in two months. Shares are up for the second straight day.

• Benchmark indices hold on to gains
• Nifty up 2 percent at 9,385
• Nifty futures trade at a premium of 17 points
• Sensex up 2 percent at 31,998
• Nifty Bank up 4 percent at 19,643
• Nifty Midcap Index up 2.6 percent
• Nifty Smallcap Index up 2.7 percent
• India Volatility Index up 0.6 percent to 38.44
• Nifty PSU Bank remains the top sectoral gainer; up 6.5 percent
• Nifty Auto, NIfty Metal up 3.3 percent eah
• Nifty Pharma remains the only sectoral laggard; down 0.8 percent
• Axis Bank is the top Nifty gainer; up 6.4 percent
• Nestle India remains the top Nifty laggard; down 4.6 percent
• 1,332 stocks on the NSE are trading with gains while 387 decline

The rupee gave up most of its early gains to end flat in today's trading session.

The currency ended at 75.45 against the U.S. Dollar as compared to Tuesday's close of 75.50.

At one point, the currency made an intra-day high of 75.26 and was among the top performing currencies among the Emerging Market peers.

Yield on the 10-year bond ended at 5.79 perent after making an intra-day high of 5.81 percent.

• Trades at the lowest level since January 2015
• Down for the fourth straight day
• Longest losing streak in two months
• Down for 7 out of the last 8 trading sessions
• Declines 15 percent in the last 8 trading sessions
• Today's volumes are 2.2 times higher than its 30-day average
• Trades at 19.2 times estimated forward Earnings Per Share as compared to its two-year historical average of 26.8 times
• Has declined 50 percent from its 52-week high of Rs 649 on May 28, 2019
• 18 out of the 29 analysts tracking the stock have a buy recommendation; 1 sell call
• Return potential for the stock as per Bloomberg data is 51 percent

• Vedanta's 100 Call: Premium falls 17.5 percent to Rs 2.35. The contract has added 45.9 lakh shares in Open Interest.
• ICICI Bank's 350 Call: Premium rises 45.7 percent to Rs 13.7. The contract has shed 9.77 lakh shares in Open Interest.
• State Bank Of India's 180 Call: Premium rises 45.2 percent to Rs 8.35. The contract has shed 5.82 lakh shares in Open Interest

The company has informed the exchanges that it has partially resumed operations at all its plants across the country after obtaining necessary permisions from Government authorities.

Shares trade little changed after paring gain of as much a 3 percent during the early part of the session.

The risk-off sentiment in markets across Asia has rubbed off on the European benchmarks which have opened weak on Wednesday.

Asian markets ended mixed while futures on the Dow Jones now trade higher by 100 points.

The Stoxx 600 index has opened 1 percent lower with all sectors trading with losses. Auto, insurance and banking stocks are the major laggards.

Brent crude for the July contract trades 1.3 percent lower at $29.59 per barrel while gold remains little changed around the $1,700/Oz mark.

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

• Euro Stoxx 50 down 1.4 percent to 2,844
• DAX down 1.5 percent to 10,660
• CAC down 1.3 percent to 4,413
• FTSE 100 down 0.9 percent to 5,942
• IBEX 35 down 0.75 percent to 6,711

The company has informed the exchanges that the Formulations Srikakulam Plant Unit I has received the Establishment Inspection Report (EIR) from the U.S. FDA.

The EIR indicates closure of the audit while the inspection classification of this facility is determined as No Action Initiated (NAI).

The drugmaker had informed the exchanges on February 14 this year that the said unit received zero observations from the U.S. FDA audit.

Shares recovered from the day's low to gain as much as 2 percent to Rs 3,850 on the National Stock Exchange.

The company has disclosed that it has settled an income tax case under the 'Direct Tax Vivad Se Vishwas, 2020' dispute resolution scheme, becoming the first private company to do so.

The company has paid Rs 123.78 crore to settle the litigation involving capital gains from the stake sale of its erstwhile telecome JV Hutchison Max Telecom Ltd.

The payment has also cleared a tax dues contingent liability that was on the company's books for the last two decades, the company stated in its press release.

Shares gained as much as 3.3 percent to Rs 461.6 and are up for the second straight day.

The private lender saw its Net Interest Income increase 33.5 percent compared to the previous year while net profit fell 25.8 percent owing to the tripling of its provisions from the previous quarter.

Provisions tripled to Rs 827.4 crore, out of which Rs 690 crore were additional provisions on standard assets due to Covid-19.

Deposits grew 32 percent from last year while asset quality was stable.

Shares gained as much as 10 percent to Rs 257.3 and is the top performing stock on the Nifty Bank index.

• Benchmark indices holding on to gains
• Nifty up 2.4 percent at 9,414
• Nifty Futures trade at a premium of 18 points
• Sensex up 2.5 percent at 32,133
• Nifty Bank up 4.6 percent at 19,725
• Nifty Midcap index up 2.1 percent
• Nifty Smallcap index up 2.4 percent
• India Volatility Index flat at 38.2
• Nifty PSU Banking index is the top sectoral gainer; up 4.8 percent
• Nifty Auto (Up 3.5 percent) and Nifty Metal (Up 3.1 percent) are holding on to gains
• Nifty Pharma remains the only sectoral laggard; down 1 percent
• Larsen & Toubro remains the top Nifty gainer; up 6.6 percent
• Nestle India remains the top Nifty laggard; down 3.2 percent
• 1,332 stocks on the NSE trade with gains while 350 trade with losses

• Among the top performer on the Nifty Midcap index
• Gained as much as 10 percent to Rs 98.35
• Biggest single-day gain since March 25, 2019
• Up for the third straight day
• Has gained for 9 out of the last 11 trading sessions
• Today's volumes are 3.4 times higher than its 30-day average
• Breaks above its 50-Day Moving Average of Rs 95.56
• 4 out of the 6 analysts tracking the stock have a buy recommendation; 1 sell call
• Return potential of the stock as per Bloomberg data is 48.6 percent

The research and manufacturing company reported a 13.7 percent rise in its revenue for the quarter gone by. Ebitda rose 22 percent while margins expanded to 33.5 percent from 31.3 percent.

The company's net profit too grew 20 percent to Rs 120 crore from Rs 100 crore in the same quarter last year.

Shares recovered from the day's low to gain as much as 4.2 percent to Rs 333.

The company has informed the exchanges that it ha received a licence from the Petroleum and Safety Organisation (PESO) for manufacturing RDX and RDX compounded products along with HMX-based explosives.

The products will be manufactured at the company's Katepally plant in Telangana, as per its exchange filing. The licence is valid up to March 31, 2025.

The stock is locked in an upper circuit of 5 percent at Rs 75.60 post the announcement.

• Revenue seen 15 percent lower at Rs 18,335 crore
• Net profit seen 29 percent lower at Rs 1,273 crore
• Ebitda seen 21 percent lower at Rs 1,779 crore
• Ebitda margin may decline to 9.7 percent from 10.5 percent
• All numbers are standalone and compared on a year-on-year basis

Key Factors At Play For Maruti:

• 16 percent year-on-year decline in volumes to impact revenue
• Average selling price may rise due to BS-VI transition
• Higher operating expenses may weigh on margins
• Negative operating leverage to offset benefits of softer commodity prices
• Demand outlook in the current backdrop a key factor to watch

Shares gained as much as 7.47 percent to Rs 5,321 ahead of its earnings.

The capital goods company has seen three large trades taking place in the last one hour.

The first large trade saw 20 lakh shares of the company exchange hands while 11.8 lakh shares exchanged hands in the second large trade. Another 30 lakh shares exchanged hands in the third large trade.

Buyers and sellers in the trades were not immediately known, as per Bloomberg data.

The stock gained as much as 14.88 percent to Rs 24.70. This is the biggest one-day gain for the stock since October 2019. The stock has also gained on volumes that are 4.5 times higher than its 30-day average.

Reaction Of Stocks Added To MSCI India Index:

• Biocon: Gave up gains of as much as 2.7 percent and now trades 1.8 percent lower at Rs 337.25.
• Jubilant Foodworks: Gained as much as 4.5 percent to Rs 1,666 and is up for the fourth straight day.
• Tata Consumer Products: Gave up gains of as much as 4.5 percent and now trades 1.1 percent lower at Rs 354.75.
• Torrent Pharma: Trades 2.3 percent lower at Rs 2,390 after giving up gains of as much as 2.9 percent.
• Indraprastha Gas: Trades little changed after fluctuating between gain and losses.

Reaction Of Stocks To Be Removed From MSCI India Index:

• Ashok Leyland: Gained as much as 7 percent to Rs 52.
• M&M Financial: Gained as much as 8.58 percent to Rs 176.50.
• Shriram Transport Finance: Gained as much as 7.9 percent to Rs 722.95 before cooling off.
• Tata Power: Gained as much as 7.9 percent to Rs 30.65.

The electrical product manufacturer reported a 19.5 percent decline in revenue for the fourth quarter while net profit fell 11.7 percent compared to last year.

Margins remained flat at 11.1 percent from 11.4 percent due to lower employee and advertising expenses.

All segments of the company saw a de-growth in topline with lighting and cable segments declining 31 and 24 percent respectively.

Brokerage firm Jefferies has maintained its buy rating on the stock with a price target of Rs 660.

Shares gained as much as 3.6 percent to Rs 498 on the National Stock Exchange.

• Nifty May futures add 17.4 percent in Open Interest and 12.85 lakh shares
• Nifty Bank May futures add 9.2 percent in Open Interest and 1.34 lakh shares

Nifty: May 14 Expiry

• 9,500 Call: Premium rises 122.7 percent to Rs 74.05. The contract has added 10.1 lakh shares in Open Interest.
• 9,600 Call: Premium rises 130 percent to Rs 46.9. The contract has added 8.3 lakh shares in Open Interest.
• 9,200 Put: Premium falls 69.2 percent to Rs 35.1. The contract has added 5.34 lakh shares in Open Interest.

Nifty Bank: May 14 Expiry

• 19,000 Put: Premium falls 76 percent to Rs 111.5. The contract has added 3 lakh shares in Open Interest.
• 20,000 Call: Premium rises 218 percent to Rs 265.6. The contract has added 1.67 lakh shares in Open Interest.
• 19,500 Put: Premium falls 69 percent to Rs 256.7. The contract has added 2.52 lakh shares in Open Interest.

The two-wheeler maker has opened three out of its six factories in India and will open all of its eight factories across the globe in the next one month, Chairman and Managing Director Pawan Munjal told Bloomberg Television in an interview.

Munjal said that the company is on the lookout for acquisitions in the higher market segments where it wishes to establish its presence.

On the relief package announced by Prime Minister Narendra Modi, Munjal said that it is trying to cover a vast canvas of the economy, adding that he has asked the government to reduce taxes on motorcycles to spur demand.

Shares gained as much as 7.1 percent to Rs 2,265 before cooling off. The stock is up for the third day in a row.

• Benchmark indices cool off from their opening highs
• Nifty up 2.2 percent to 9,393 - 190 points off the day's high
• Sensex up 2.2 percent to 32,061 - 790 points off the day's high
• Nifty Bank up 4.4 percent to 19,696 - 430 points of the day's high
• Nifty Midcap Index up 1.6 percent
• Nifty Smallcap Index up 1.9 percent
• India Volatility Index up 1.1 percent to 38.61
• Nifty Pharma is the only sectoral laggard; down 0.3 percent
• Nifty Auto, Nifty Metal and Nifty PSU Bank holding on to gains of 3 percent
• Nifty Realty Index up 2.5 percent
• Larsen & Toubro is the top Nifty gainer; up 5.8 percent
• Nestle India is the top Nifty laggard; down 2.8 percent
• 1,260 stocks on the NSE are advancing while 366 are declining

The currency opened stronger in today's trading session after ending Tuesday's trade with gains.

The rupee opened at 75.40 against the U.S. Dollar before strengthening further to 75.26. This is compared to Tuesday's closing of 75.50.

Yield on the 10-year bond opened at 6.22 percent after it ended little changed at 6.17 percent on Tuesday.

Macro data reported on Tuesday presented a grim economic picture due to the Covid-19 lockdown.

While CPI for the month of April was not reported due to data collection issues, the Industrial Production for March contracted 16 percent compared to last year.

Shares of the explorer and miner of non-ferrous metals gained as much as 8.36 percent to Rs 195 on the National Stock Exchange.

At a board meeting held on Tuesday, the company announces an interim dividend of Rs 16.5 per share. The amount implies a dividend yield of 9.2 percent for the company.

This is the biggest one-day gain seen by the stock in the last seven weeks. Trading volumes of the company were 29 times higher the average traded volumes.

Shares are higher in 7 out of the last 10 trading sessions.

The FMCG major surpassed analyst estimates in the first quarter of 2020 with a 10.7 percent growth in net sales compared to last year.

While higher sales and lower tax rates led to a net profit growth of 13.4 percent, higher input costs impacted the company's gross margins which declined 230 basis points. The decline in gross margins was felt in the Ebitda margin which fell to 23.8 percent from 25.1 percent.

Most brokerages have maintained their bullish stance on the stock and have also raised their price targets.

Shares gave up gains of as much as 2.5 percent and now trade 1.8 percent lower at Rs 17,155. It is also the top laggard on the Nifty 50 index.

Both the companies have signed a non-exclusive licensing agreement with Gilead Sciences for manufacturing and distribution of Remdesivir which is touted to be a drug used in the treatment of Covid-19 patients.

Both companies can now manufacture the API and finished product and market it in 127 countries including India.

Shares of Cipla gained as much as 6.1 percent to Rs 605 before cooling off, while those of Jubilant Life Sciences are locked in an upper circuit of 5 percent at Rs 428.55.

Cipla has snapped a two-day losing streak while Jubilant Life is up for the fifth consecutive day.

Shares of the mining major are locked in a 10 percent upper circuit at Rs 97.95 after its promoter Vedanta Resources announced plans to de-list the company from the exchanges.

The promoter entity has expressed its intention to acquire all public shareholding of the company which currently stands at 48.94 percent of the paid-up equity share capital.

Promoters will accept equity shares from public shareholders at Rs 87.5 per share, which is a 2 percent discount from Tuesday's closing price of Rs 89.3.

The stock is higher for the third straight day and is the top gainer on the Nifty 50 index.

Indian equity markets opened gap-up, after Prime Minister Narendra Modi announced a Rs 20 lakh crore relief package to boost the economy grappling from the Covid-19 pandemic.

Cues across Asian markets remain negative while Dow Futures have pared losses and now trade 10 points higher.

The S&P BSE Sensex opened 4.69 percent higher at 32,841 while the NSE Nifty 50 opened at 9,584, higher by 4.22 percent. Both benchmark indices registered two days of losses on Monday and Tuesday. All constituents of the Nifty 50 opened with gains.

Among Sectoral indices, the Nifty Bank opened 6 percent higher as did the Nifty PSU Banking index. Nifty Auto, Nifty Metal and Nifty Realty opened with gains between 4.5-5.5 percent.

1,258 stocks on the NSE have opened with gains while 165 opened with losses, keeping the market breadth firmly in favour of the advances.

• Buy Bharti Airtel for target of Rs 600 and stop loss of Rs 545
• Buy HDFC Life for target of Rs 555 and stop loss of Rs 510

• Buy Adani Enterprises for target of Rs 146 and stop loss of Rs 137
• Buy ICICI Bank for target of Rs 338 and stop loss of Rs 320

• Nestle India: Company's net sales rise 10.7 percent in the first quarter of CY20 while net profit rises 13.4 percent year-on-year aided by higher sales and lower taxes. High input costs impact margins.
• Vedanta: To consider de-listing of shares on May 18. Promoters will accept equity shares tendered by the public at a price of Rs 87.5 per share, implying a discount of 2 percent from the closing price of May 12. As on date, public shareholding in the company is 48.94 percent.
• Jubilant Lifesciences: Enters into a non-exclusive licensing agreement with Gilead Sciences, that will grant the company the right to register, manufacture and sell Gilead’s investigational drug, Remdesivir, a potential therapy for Covid-19 in 127 countries including India.
• Havells India: The company's revenue falls 19.5 percent while margins remain flat in the fourth quarter of FY20. Net profit fell 11.7 percent while all segments saw a de-growth in topline, led mainly by cables and lighting segment.
• IndiaMART InterMESH: Revenue rises 23.3 percent while net profit rises 57.1 percent compared to last year. Ebitda margins expanded to 30.7 percent from 14.6 percent.
• Hindustan Zinc: Announces interim dividend of Rs 16.5 per share, implying a dividend yield of 9.2 percent.
• Companies That Resumed Operations: Borosil Renewables, TTK Prestige, DCM Shriram, Tata Metaliks, HPL Electric & Power, Kokuyo Camlin.
• Non-Nifty Earnings Today: ABB India, Godrej Consumer, Mphasis, Schaeffler India, Siemens.

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

• Benchmarks end lower after health, Fed officials present a sombre picture.
• S&P 500 ends 2.1 percent lower while Dow Jones ends lower by 1.9 percent.
• Top U.S. health official Anthony Fauci said that states reopening too quickly can set you back on the road on trying to get economic recovery.
• Some central bank officials said virus outbreaks and partial shutdown would risk massive bankruptcies.
• St. Louis Fed President James Bullard warned of the risks of a great depressio if shutdowns persist.
• The Bloomberg Dollar Spot Index rose 0.1 percent
• West Texas Intermediate Crude rose 6.4 percent to $25.69 per barrel. The commodity trades lower today.

Catch all the live action in the global markets today, here.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 2.9 percent to 9,446 as of 7:55 a.m.

However, the sentiment across the rest of Asia and the Asia Pacific is risk-off. Shares in Japan, China and South Korea fell, although the losses are modest compared to their peers on Wall Street.

Futures on the Dow Jones are currently trading lower by 50 points after the benchmark ended 1.9 percent lower on Tuesday.

The New Zealand Dollar fell after the country’s central bank boosted its asset purchase program, while the Yen retained its overnight gain.

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