Sensex, Nifty Snap Six-Day Rally; Banking Stocks Underperform

• Benchmark indices snap six-day gaining streak
• Nifty ends 0.3% lower at 10,029
• Sensex ends 0.4% lower at 33,980
• Nifty Bank ends 2.6% lower at 20,390
• Both Nifty Midcap and Nifty Smallcap Index end little changed
• India Volatility Index ends 1.7% lower at 29.51
• Nifty Realty Index was the other sectoral laggard; down 1.7%
• Nifty Media ends as the top sectoral gainer; up 4.1%
• Nifty I.T. (up 1.8%), Nifty Metal (up 1%), Nifty Pharma (up 2.1%) and Nifty PSU Bank (up 1%) were the other sectoral gainers
• Vedanta ends as the top Nifty gainer; up 7.7%
• Asian Paints ends as the top Nifty laggard; down 4.6%
• 953 stocks on the NSE end with gains while 834 decline

Amazon is in early-stage talks to buy a stake worth at least $2 billion in Bharti Airtel, according to a Reuters report quoted by Bloomberg News. Reuters has cited three unidentified people with knowledge of the matter.

Based on the current market value of Bharti, Amazon would buy a 5% stake if the proposed investment takes shape.

Shares spiked to end the session 3.7% higher at Rs 573.15 post the newsbreak.

Indian equity markets ended their best gaining run in seven months after posting modest losses on the weekly options expiry day.

Both benchmark indices had gained 11.5% each during their six-day rally.

European markets continue to trade with losses while futures on the Dow Jones are now down 150 points.

The S&P BSE Sensex ended 0.4% lower at 33,980 while the NSE Nifty 50 managed to close above the 10,000 mark for the second straight day, rebounding from the bear-market level of 9,944. The index closed at 10,029, down 0.3%.

Private banks were the primary laggards in today's trading session. The Nifty Bank index ended as the worst sectoral performer with losses of 2.7%.

I.T., Media, Pharma and PSU Banks were the outperforming sectors with gains ranging between 1.2-4.5%.

Market breadth returned to favour the advances with 953 stocks ending higher on the NSE while 834 posted losses.

• Expect mid-single digit decline in dollar revenue growth in Q1FY21
• Revenue growth likely to recover in H2FY21
• Expect a slight increase in receivables for a temporary period
• Expect near-term margin pressure which cannot be quantified currently
• Not issued margin guidance for FY21
• Manufacturing, Energy & Utilities verticals shall see the highest negative impact
• Expect demand pressure in the short-term
• Deferred salary hikes and annual incentive payouts to staff
• Well positioned to fulfill our obligations.

Shares trade 0.8% higher at Rs 1,862.

India's largest lender has informed the exchanges that its executive committee of the central board will meet on June 11 to consider long-term fund raising.

The lender looks to raise $1.5 billion in long-term funds in single or multiple tranches through a public offer or private placement in senior unsecured notes in U.S. Dollars or any other convertible currency during FY21.

Shares trade 0.5% lower at Rs 173.95, snapping a four-day gaining streak.

• Net profit down 97% to Rs 60 lakh
• Revenue down 4% to Rs 211.2 crore
• Ebitda down 84.1% to Rs 2.1 crore
• Ebitda margin narrows to 1% from 6%
• High employee expenses impact margins
• Revenue of Corporate Learning Group up 10% to Rs 175.4 crore
• Skills and Careers business revenue at Rs 35.8 crore
• Cash balance of Rs 1,208.8 crore at the end of FY20
• Recommended final dividend of Rs 2 per share

Shares fell as much as 5.8% to Rs 86.6, post the announcement.

• Locked in an upper circuit of 5% at Rs 204.55
• Gains for the seventh straight day
• Longest winning streak since November 2018
• Second straight day of upper circuit
• Has gained 22% in the last seven trading sessions
• Today's volumes are double of its 30-day average
• Trading above its 50-Day Moving Average of Rs 180
• 8 out of the 17 analysts tracking the stock have a buy recommendation; 3 sell calls
• Goldman Sachs maintained its sell rating on the stock citing weak fundamentals
• Return potential for the stock as per Bloomberg data is 39.5%

The company has informed the exchanges over concerns of Nippon Life India Asset Management selling 2.89 lakh shares of the company.

The financial services provider has clarified that its promoters have no debt exposure to Nippon Life and that the same has been done from its Mutual Fund investment.

Post the sale of shares, Nippon India Mutual Fund holds 3.45% of the paid up share capital of the company.

Shares of Max Financial are trading 3.3% higher at Rs 466.5, snapping a three-day losing streak.

The tower company has informed the exchanges that the board will hold a meeting on June 11, to take a final decision on the scheme of arrangement between the company and Indus Towers.

The board on April 23, had decided to extend the long-stop date for the scheme till June 24, 2020, with each party retaining the right to terminate and withdraw the scheme at any point.

The company has also clarified that there can be no certainty on whether the merger will be completed or not, according to its press statement.

Shares fell as much as 2.33% to Rs 213.9 and are down for the fourth straight day.

93 lakh shares of India's largest oil refiner exchanged hands in three large trades during the last 30 minutes, according to Bloomberg data.

The first trade saw 40.27 lakh shares exchange hands, while 22 lakh and 31.3 lakh shares exchanged hands in the second and third large trade respectively.

Buyers and sellers in the trade remain unknown.

Shares are currently trading 2% lower at Rs 85.26, after snapping a nine-day winning streak on Tuesday.

• Benchmark indices off the day's low
• Nifty down 0.5% at 10,007
• Sensex down 0.56% at 33,915
• Nifty Bank down 2.2% at 20,475
• Nifty Midcap and Smallcap index trade little changed
• India Volatility Index down 0.6% to 29.86
• Nifty PSU Bank and Nifty Pharma hold on to gains of 1.8%
• Nifty Realty is the other sectoral laggard; down 1.3%
• Vedanta remains the top Nifty gainer; up 6%
• Asian Paints is the top Nifty laggard; down 4.1%
• 838 stocks on the NSE trade with gains while 922 decline

The currency ended lower for the second straight session following a volatile day of trade in the equity markets and recovery in the U.S. Dollar.

The rupee ended at 75.57 against the U.S. Dollar as compared to Wednesday's close of 75.47.

It ended flat in comparison to its Emerging Market peers. While it managed to outperform five other currencies, six of its peers managed to outperform the currency.

Yield on the 10-year government bond ended at 5.759% as compared to today's opening level of 5.766%.

• Second best performer on the Nifty Smallcap Index
• Gains as much as 20% to Rs 133.90
• Up for the fourth straight day
• Longest winning streak since March 2019
• Trades at the highest level in four months
• Gains nearly 70% in the last four trading sessions
• Today's volumes are 9.7 times higher than its 30-day average
• Breaks above its 100-Day Moving Average at Rs 113.8
• Stock trades in overbought territory with Relative Strength Index (RSI) at 81
• Has more than doubled from its 52-week low of Rs 60.2 on March 23, 2020
• 2 out of the 5 analysts tracking the stock have a buy recommendation; 1 sell call

• Reliance Industries' 1,600 Call: Premium up 48.1% to Rs 41.85. The contract has added 28,280 shares in Open Interest.
• Sun Pharma's 500 Call: Premium up 63.6% to Rs 19.3. The contract has added 8.4 lakh shares in Open Interest.
• TCS' 2,100 Call: Premium up 32.3% to Rs 53.25. The contract has added 5,250 shares in Open Interest.

• Few hotels operated during the lockdown with minimal occupancy.
• Recovery in business to be driven by domestic tourism, staycations, domestic business travel and limited international travel.
• Will have an impact on sales volumes, revenue and profitability for Q1 and Q2 of FY21.
• Confident of adapting to changing business environment.
• Drawn down lines of credit and accessed the RBI's LTRO program to shore up liquidity.
• Not sought any moratoriums.
• Well positioned to fulfill its obligations and existing contracts / agreements.

Shares are off the day's high and are trading 1.3% lower at Rs 81.75.

• Lockdown posed significant challenges to the business.
• Not in a position to gauge with certainty the future impact on operations.
• Expect normalcy to return only after 1-2 quarters.
• Cash flow availability and costs are key focus areas as of now.
• Evaluating all projects in the pipeline and will pace them in-line with market conditions.
• Have internally revised our business forecasts for the near-term and assessed the cash flow needed.
• Cash on books, sanctioned lines of credit and operating cash flow seem to be reasonably adequate to meet debt servicing obligations.

Shares are off the day's high after gaining as much as 5.7% to Rs 1,890. The stock is still trading with modest gains, up for the fourth straight day.

The company has informed the exchanges that its manufacturing unit in Dahej has been impacted due to an explosion in an adjoining unit belonging to another company.

The plant has been shut down temporarily after the explosion took place on June 3, the company said.

The company went on to say that the losses, if any are not ascertainable at this stage.

Shares are locked in a 5% lower circuit at Rs 41.85, snapping a seven-day gaining streak - its longest in two months.

European markets have opened on a sombre note, putting the breaks on the three-day rally ahead of the crucial ECB policy announcement later today.

The Stoxx 600 index has opened 0.5% lower with banks and auto stocks leading the losses. Healthcare and media stocks are outperforming.

Asian markets have ended mixed while futures on the Dow Jones are trading lower by 80 points.

Brent crude for the August contract fell 1% to $39.41 per barrel while gold was little changed at $1,700.33/Oz.

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

• Euro Stoxx 50 down 0.6% to 3,251
• DAX down 0.8% to 12,392
• CAC down 0.63% to 4,990
• FTSE 100 down 0.4% to 6,357
• IBEX 35 down 1% to 7,551

• Smoothly managed our supply chain operations during the lockdown.
• Operating at 70% of normative manufacturing levels.
• Sufficient inventory at company and channel level to meet patient requirements in the near-term.
• Slowdown in sales across some therapeutic areas during Q1FY21/
• Performance and profitability during Q1FY21 may be impacted.
• Debt-free company and carry cash and cash equivalents of Rs 1,066 crore on March 31, 2020.

• Among best performing stocks on the Nifty 500 index
• Up for the sixth straight session
• Best winning streak since December 2019
• Trades at the highest level in nearly 3 months
• Locked in an upper circuit of 5% in nine out of the last 11 trading sessions
• Has not had a single day of losses in the last 11 sessions. (Ended unchanged on May 27, 2020)
• Up 62% in the last 11 trading sessions (From 52-week low of Rs 165 on May 20, 2020)
• Today's volumes are only 0.4 times higher than its 30-day average
• Stock trades in overbought territory with Relative Strength Index (RSI) at 75
• 10 out of the 11 analysts tracking the stock have a buy recommendation; 1 sell call
• Return potential of the stock as per Bloomberg data is 32%

The utility services company plans to expand its network to 20,000 circuit kilometers by FY22 as compared to the current 11,576 kilometers, Bloomberg reports citing the company's annual report.

The company intends to expand its network in order to meet the rising demand.

It also intends to expand its distribution business by bidding for assets when the industry opens up and also increase renewable energy purchases in the Mumbai distribution business.

It aims to raise the share of renewables to 30% of the total power purchase for its Mumbai distribution business by September 2021, compared to the current 3%.

Shares fell as much as 1.77% to Rs 180.55.

• Benchmark indices extend declines
• Nifty down 0.6% at 10,003
• Sensex down 0.6% at 33,893
• Nifty Bank down 1.6% at 20,608
• Nifty Midcap Index down 0.4%
• Nifty Smallcap Index down 0.5%
• India Volatility Index down 0.65% to 29.84
• Nifty Realty, Nifty Media, Nifty FMCG and Nifty Auto among sectoral laggards
• Nifty PSU Bank and Nifty Pharma are off the day's high but hold on to gains of over 1%
• Vedanta remains the top Nifty gainer; up 5.3%
• IndusInd Bank is the top Nifty laggard; down 4.2%
• Market breadth turns adverse with 901 stocks declining on the NSE as compared to 809 gainers

• Sales in April were extremely low.
• Signs of recovery in May.
• Production ramp-up will be done gradually.
• Able to manage sharp drop in business and low collections in April by accessing the Commercial Paper market at competitive rates.
• International operations in Poland have been impacted.
• Plant in Nepal is yet to resume operations.

Shares are trading at the day’s low, falling as much as 1.9% to Rs 506.

In its monthly business update for May, the company reported 1,750 units of power tiller sales, a 24% increase compared to the previous year.

Tractor sales too saw a rise of 20% compared to the previous year to 633 units.

The stock gained as much as 8.65% to Rs 1,200 and is up for the eighth straight day - its longest winning streak since June 2014.

The company reported a 85% decline in its net profit to Rs 42.7 crore during the March quarter. This was mainly due to a one-time provision of Rs 504 crore due to the impact of Covid-19.

It has mentioned in its press release that 76% of its customers have availed the moratorium in repayment of loans and that they are likely to leverage it during the June-August period as well.

Disbursements fell 36% compared to the previous year while Assets Under Management rose 16%.

The board has also approved raising funds to the tune of Rs 30,000 crore through NCDs.

Shares fell as much as 6.6% to Rs 145.5. The stock is the worst performer on the Nifty Midcap index.

Here are some of the key takeaways from BloombergQuint's interaction with the management of BPCL:

• The inventory loss of Rs 1,081 crore was reported as an exceptional loss due to the sharp fall in crude prices.
• Not happy with the debt level. Borrowed an additional Rs 5,900 crore during the end of the quarter for higher inventories.
• Cutting capex to Rs 8,000 crore from Rs 12,000 crore for FY21.
• Took advantage of lower crude prices and procured more than normal.
• Discounts were in the range of $5-7 per barrel from Saudi Arabia.
• Capacity Utilisation in June at 83%

Shares recovered from the day's low to gain as much as 2.7% to Rs 358.4. BPCL reported a net loss of Rs 1,361 crore for the quarter ending March with the GRMs falling to their lowest since at least Q1FY12.

• Nil to very minimal Commercial Vehicle production has had an impact on the company's revenue.
• Gradually restarting factories and operations within prescribed guidelines.
• Most plants operating between 35-40% capacity.
• Economy and industry will witness gradual increase in activity levels over the next 2-3 quarters.
• Cost of operations are likely to be impacted due to the need for re-designing factories to address social distancing norms.
• Do not foresee a need to borrow or raise capital as cash reserves are enough.
• Receiving all major dues from customers albeit with some delays.

Shares are trading little changed at Rs 6,889. The stock has had a three-day losing streak until closing on Wednesday.

The steel maker reported a 26% rise in consolidated steel sales for the month of may, it said in an exchange filing.

The company sold 7.97 lakh tonnes of steel as compared to 6.31 lakh tonnes sold during the same period last year. The company had consolidated steel production of 6.2 lakh tonnes in the month of May.

JSPL also registered a 28% growth in standalone sales for the month of May. Out of the total 6.4 lakh tonnes sold on a standalone basis, 4.01 lakh tonnes were export sales, according to the company.

Shares gained as much as 6% to Rs 135 and is the top performer on the Nifty Metal index.

• Nifty June futures add 3.8% and 4 lakh shares in Open Interest.
• Nifty Bank June futures add 11.9% and 1.75 lakh shares in Open Interest.

Nifty: Today's Weekly Expiry

• 10,000 Put: Premium down 49.5% to Rs 18. The contract has added 24.85 lakh shares in Open Interest.
• 10,100 Call: Premium down 42.8% to Rs 25.35. The contract has added 22 lakh shares in Open Interest.
• 10,200 Call: Premium falls 77.4% to Rs 3.9. The contract has added 29 lakh shares in Open Interest.

Nifty Bank: Today's Weekly Expiry

• 20,500 Put: Premium down 45.6% to Rs 52.7. The contract has added 3.83 lakh shares in Open Interest.
• 20,000 Put: Premium down 87.6% to Rs 4.8. The contract has added 5.34 lakh shares in Open Interest.
• 21,500 Call: Premium down 77.1% to Rs 18. The contract has added 3.5 lakh shares in Open Interest.

The company shared its Covid-19 update with the exchanges on Wednesday where it mentioned that it has been sourcing fly ash from other power plants has the availability of the said product has been impacted.

It also expects constraints in the future due to the reduced availability of truck drivers. Shortage of labour in urban areas may keep cement demand subdued in the near future, according to the company.

"However, areas where government spending will be good are likely to see better demand," the company's press release said.

Shares fell as much as 3.8% to Rs 165.3, Snapping a five-day gaining streak.

• Benchmark indices fluctuate between gains and losses
• Nifty unchanged at 10,063
• Sensex unchanged at 34,101
• Nifty Bank down 0.2% at 20,906
• Nifty Midcap and Smallcap index up 0.3%
• India Volatility Index down 0.1% to 29.99
• Nifty Pharma is the top sectoral gainer; up 2%
• Nifty PSU Bank and Nifty Media index gain 1.5% each
• Nifty Realty index is the to sectoral laggard; down 0.7%
• Vedanta is the top Nifty gainer; up 4%
• Titan is the top Nifty laggard; down 3%
• 956 stocks on the NSE trade with gains while 691 decline

The rupee opened weaker for the second straight day after giving up all its gains to end lower on Wednesday.

The currency opened at 75.63 against the U.S. Dollar as compared to Wednesday's close of 75.47. Wednesday's losses meant the currency snapped a three-day losing streak.

Kotak securities believes that RBI intervention has been seen around levels of 75 and that may stall the appreciation in the rupee.

In the bond markets Bank of America believes that the Reserve Bank of India would make bond purchases worth $88.5 billion, while several other economists believe that the central bank could end up buying government debt directly.

4 crore shares of the life insurance company exchanged hands in a single large trade on the National Stock Exchange, according to Bloomberg data. The deal took place in the pre-market block window.

Bloomberg News had reported on Wednesday that Standard Life Insurance was offering 4 crore shares for sale in a block trade between Rs 490 - Rs 501 per share. The price range implied a discount of 0-2.3% from Wednesday's closing price

Shares are off the highest point of the day, after gaining as much as 6.85% to Rs 535.70.

Aceso Company along with Aceso Investment Holdings, CVC Capital Partners Asia along with their associates have announced an open offer for the company.

The open offer involves acquisition of 32.61 crore fully paid-up equity shares of face value of Rs 10 from the public shareholders of the company. The acquisition will be done at a price of Rs 130 per share for a total consideration of Rs 423.97 crore.

JM Financial has been appointed as the manager for the open offer, the company said.

Shares are off the day's high after gaining as much as 6.75% to Rs 121.70.

12 lakh shares of the wheel manufacturer and distributor, amounting to 4.98% of its total equity, exchanged hands in a single large trade on the National Stock Exchange.

Sundaram Finance has acquired the stake from Titan U.K. Europe through an inter-se transfer.

Post this acquisition, Sundaram Finance's stake in Wheels India rises to 18.57% from 13.58% earlier.

Shares of Wheels India gained as much as 12.7% to Rs 485.4, while those of Sundaram Finance traded little changed at Rs 1,215.3.

The company informed the exchanges that the oral solid manufacturing facility of AuroLife Pharma in New Jersey was inspected by the U.S. FDA from January 13 to February 12, 2020.

The regulator has issued a form 483 with 9 observations with the inspection being classified as 'Official Action Initiated' (OAI).

Exclusive sales from this facility is around 2% of the group turnover, the company said.

The company also reported its fourth quarter earnings on Wednesday where a deferred tax reversal of Rs 101 crore aided the 45% growth in net profit.

API sales for the company fell 17.6% while formulations sale rose 23.5% compared to last year.

Shares gained as much as 3.94% to Rs 780 and are up for the third straight day.

Indian equity markets opened flat at the start of trade on the weekly options expiry day, tracking the decline in its Asian peers which are trading off their day's high.

Both the S&P BSE Sensex and the NSE Nifty 50 index opened little changed at 34,072 and 10,054 respectively. Both benchmarks have been advancing for six straight sessions. Futures on the Dow Jones are trading lower by 55 points.

Most sectoral indices have opened flat. The Nifty Realty index opened 0.6% lower while the PSU Bank index opened 0.6% higher.

• Global cases cross the 6.4 million mark
• Death toll rises to 3.83 lakh
• South Korea reports 39 new cases
• Singapore, China agree to ease quarantine requirements for business and official travellers
• Reports suggest Japan mulls scaling back the olympic games
• Brazil reports 1,349 fatalities on Wednesday
• Indonesia reopening tourism sector from next month for locals
• CHina reports one new case, says it is an imported one

• JSW Steel: Seeks to sell September 2021 bonds worth Rs 1,000 crore. The company seeks bids today for a coupon rate of 8.5%.
• REC: To sell 10-year seven-day bonds worth Rs 2,000 crore. The company will seek bids for the same on June 5.
• Indian Hotels: To sell three-year bonds worth Rs 300 crore. The company will seek bids for the same today.
• Tata Power: To sell August 2023 bonds worth Rs 300 crore. The company will seek bids for the same today at a coupon rate of 8.21%.

• BPCL: Reports net loss of Rs 1,361 crore led by an exceptional loss of Rs 1,080 crore and an inventory loss of Rs 4,902 crore. GRMs were the lowest since at least Q1FY12 at $0.75 per barrel. Sales volume fell 8.9% from the previous quarter while debt rose 58.7% to Rs 47,819 crore - the highest ever on the books.
• Reliance Industries: Rights issue subscribed 1.59 times, amounting to an overall commitment of Rs 84,000 crore for the Rs 53,124.2 crore issue. Public portion subscribed 1.22 times. Allotment of equity shares will take place on or about June 10. Rights shares expected to be listed on BSE & NSE on or around June 12.
• HDFC Life: Standard Life Insurance is offering 4 crore shares of the company in a block trade. Price is set between Rs 490-501.35 per share, which is a 0-2.3% discount to Wednesday's closing price. The total sale may fetch $266 million, as per data accessed by Bloomberg News.
• VST Tillers and Tractors: Power Tillers sales up 24% in May to 1,750 units while Tractors sales rise 20% to 633 units.
• Jindal Steel and Power: May steel sales up 26% to 7.97 lakh tons, on a consolidated basis, driven by exports.
• Chennai Petrochem: Board has recommended a proposal to Indian Oil Corporation for implementing the 9 MMTPA refinery project at Cauvery basin refinery through a joint venture at an estimated cost of Rs 28,983 crore.
• Shree Renuka Sugars: Board approved proposal of raising funds via external commercial borrowings from its holding company Wilmar Sugar Holdings to refinance company’s existing debt. Board also increased borrowing limit from Rs 6,000 crore to Rs 10,000 crore.
• Non-Nifty Earnings Today: DLF, NIIT, PI Industries, SRF.

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

• Benchmark indices extend gains; end over 2% higher
• Nasdaq briefly surpassed its February closing record
• S&P 500 closes at a three-month high led by banks
• Four stocks gained for every one that declined
• U.S. Dollar drops to its weakest since early-March
• Euro gains for the seventh session against the dollar
• The Bloomberg Dollar Spot Index fell 0.4%
• Yield on the 10-year treasury rose seven basis points to 0.76%
• West Texas Intermediate crude was little changed at $36.84 per barrel. The commodity trades with losses today.

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

Good Morning!

Indian equity markets maintained their best gaining streak in seven months on Wednesday, ending higher for the sixth straight day.

Both S&P BSE Sensex and the NSE Nifty 50 Index closed at their highest level in nearly three months. The Nifty also re-claimed the 10,000-mark.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was flat at 10,098 as of 7:50 a.m.

Sentiment in the Asian markets remains firmly risk on with markets in South Korea, Hong Kong and Australia powering the gains. Futures on the Dow Jones are flat after the index ended over 2% higher on Wednesday.

Treasuries maintained losses as investors turned away from havens after U.S. private payrolls showed fewer job losses than forecast in May.

West Texas Intermediate crude fell 1.3% to $36.81 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.