Sensex, Nifty End 2% Higher Led By Banks, Reliance Industries

• Benchmark indices end near the day's high
• Nifty ends 2.1% higher at 10,091
• Sensex ends 2.1% higher at 34,208
• Nifty Bank ends 3.74% higher at 20,956
• Nifty Midcap Index ends 1.3% higher
• Nifty Smallcap Index ends 1.5% higher
• India Volatility Index ends 5.3% lower at 31.58
• Nifty Metal ends with gains of 3%. Second best performer after Nifty Bank
• Nifty PSU Bank ends with gains of 2.55% while Media Index ends 1.7% higher
• Bajaj Finserv ends as the top Nifty gainer; up 8.2%
• TCS ends as the top Nifty laggard; down 0.6%
• 1,358 stocks on the NSE ended with gains while 447 ended with losses

Indian equity markets shrugged off mixed cues from the rest of the Asian markets to end near the highest point of the day.

Fitch Ratings downgrading the outlook on the long-term foreign currency Issuer Default Rating had no impact on sentiment.

The S&P BSE Sensex ended 2.1% higher at 34,208 while the NSE Nifty 50 reclaimed the mark of 10,000 to end 2.13% higher at 10,091.

Both benchmarks are now alternating between gains and losses for the 11th day in a row.

Banks were the outperformers in today's trading session with the Nifty Bank and Nifty PSU Bank ending with gains of 3.7% and 2.6% respectively.

The Nifty Metals index was the other major sectoral gainer, ending 3% higher.

All other sectoral indices ended with a positive bias, except the Nifty Pharma index which ended flat.

Market breadth remained in favour of the advances. 1,358 stocks on the NSE ended with gains while 447 ended with losses.

• Among the top performers on the Nifty Midcap Index
• Gains as much as 8.1% to Rs 715.1
• Biggest single-day gain in over four months
• Up for the second straight day
• Has gained in four out of the last five trading sessions
• Trades at the highest level in three months
• Up 15% in the last five trading sessions
• Today's volumes are 1.7 times higher than its 30-day average
• Breaks above its 100-Day Moving Average of 684.2
• Has gained over 40% from its 52-week low of Rs 482.2 on March 23, 2020
• 12 out of the 15 analysts tracking the stock have a buy recommendation; 0 sell calls
• Return potential of the stock as per Bloomberg data is 10.9%

• Gains as much as 20% to Rs 136.95
• Biggest single-day gain since October 2012
• To consider raising capital via debt on June 25
• Trades at the highest level in over three months
• Up for the second straight day
• Has gained in 10 out of the last 14 trading sessions
• Up 31% in the last 14 trading sessions
• Today's volumes are 13.2 times higher than its 30-day average
• Trading near its 100-Day Moving Average of 138.7
• Stock in overbought territory with Relative Strength Index (RSI) at 75
• Has gained 80% from its 52-week low of Rs 76.8 on March 25, 2020
• Still remains 70% below its 52-week high of Rs 453 on July 1, 2019
• 16 out of the 20 analysts tracking the stock have a buy recommendation; 2 sell calls
• Return potential of the stock as per Bloomberg data is 35.3%

• Snaps four-day losing streak
• Gains as much as 9.2% to Rs 101.6
• Trades at the highest level in nearly two months
• Biggest single-day gain in nearly two months
• Today's volumes are 1.4 times higher than its 30-day average
• Trading near its 100-Day Moving Average of 101
• Gained 61% from its 52-week low of Rs 62 on March 24, 2020
• All three analysts tracking the stock have a buy recommendation
• Return potential of the stock as per Bloomberg data is 49.5%

• Among the top performers on the BSE 500 index
• Gains as much as 17.6% to Rs 62.65
• Biggest single-day gain since July 2015
• Trades at the highest level in three months
• Today's volumes are 7.2 times higher than its 30-day average
• Trading near its 100-Day Moving Average of 64
• Has gained over 50% from its 52-week low of Rs 40 on March 30, 2020
• Two out of the three analysts tracking the stock have a buy recommendation; 1 sell call
• Stock trades 35.3% above its 12-month consensus price target of Rs 40, implying a negative return potential.

Reliance Industries is close to acquiring a stake in some units of Future Group, Bloomberg News reports citing people familiar with the matter.

An agreement with the Future Group, which already has a partnership with Amazon can be announced as early as next month.

A Reliance Industries representative said that the company evaluates various opportunities on an ongoing basis and offered no further comment. A spokesperson for the Future Group declined to comment.

Stock Reaction:

• Shares of Reliance Industries are up 1.9% to a record high of Rs 1,646. It is also the top point contributor to the gains on the Nifty 50 index.
• Future group companies like Future Retail, Future Consumer and Future Lifestyle Fashions were locked in an upper circuit of 5% post the newsbreak.

• Trades at the highest level in over three months
• Gains as much as 3.6% to Rs 225
• Up for the eighth straight day
• Longest winning streak since January 2018
• Gains 23% in the last 8 trading sessions
• Today's volumes are 1.7 times higher than its 30-day average
• Stock trades in overbought territory with Relative Strength Index (RSI) at 73
• Promoter SB Adani Family Trust revoked pledge on 72 lakh shares on June 16
• Stock has gained 50% from its 52-week low of Rs 147.5 on March 13, 2020
• One out of the three analysts tracking the stock has a buy recommendation; two sell calls
• The stock trades 25.9% higher than its 12-month consensus target of Rs 165.5, implying a negative return potential

• Benchmark indices rise to the day's high
• Nifty up 1.64% at 10,042
• Sensex up 1.55% at 34,028
• Nifty Bank up 2.2% at 20,650
• Nifty Midcap Index up 1%
• Nifty Smallcap Index up 1.3%
• India Volatility Index down 5.8% to 31.42
• Nifty Metal remains the top sectoral gainer; up 2.5%
• Nifty Media, Nifty PSU Bank gain over 1.5% each
• Coal India remains the top Nifty gainer; up 6%
• 40 out of the 50 Nifty constituents advance
• ONGC remains the top Nifty laggard; down 0.8%
• 1,343 stocks on the NSE trade with gains while 429 decline

The rupee ended little changed in today's trading session, shrugging off Fitch Ratings' downgrade of the outlook on India's long-term Issuer Default Rating.

The rupee ended at 76.14 against the U.S. Dollar, as compared to Wednesday's close of 76.16.

This was the second straight day of gains for the currency, though modest.

The currency managed to outperform only three of its peers today, ending as the fourth worst performer in Asia behind the Japanese Yen, Hong Kong Dollar and the Philippine Peso.

Yield on the 10-year government bond ended at 5.82% as compared to the opening level of 5.846%.

• Trades at an all-time high
• Gains as much as 4.7% to Rs 5,587
• Up for the fourth straight day
• Gains 11% in the last four trading sessions
• Today's volumes are 0.9 times higher than its 30-day average
• Stock in overbought territory with Relative Strength Index (RSI) at 74
• Has more than tripled from its 52-week low of Rs 1,560 on August 13, 2019
• 17 out of the 18 analysts tracking the stock have a buy recommendation; 0 sell calls
• The stock now trades 2.1% above its 12-month consensus price target of Rs 5,406, implying a negative return potential.

• Reliance Industries' 1,640 Call: Premium up 13.1% to Rs 35.4. The contract has added 4.5 lakh shares in Open Interest.
• Muthoot Finance's 1,100 Call: Premium up 270.2% to Rs 44.8. The contract has added 1.7 lakh shares in Open Interest.
• Bajaj Finance's 2,500 Call: Premium up 38.3% to Rs 88.75. The contract has added 41,750 shares in Open Interest.

41 coal blocks will be up for auction in the first round of the commercial coal mining process.

Bloomberg News reports that the 41 mines are expected to generate capital investment of Rs 33,000 crore over 5-7 years in the country.

The mines are supposed to have a peak annual capacity of 225 million tonnes.

The reform will be a win-win for all stake holders, Prime Minister Narendra Modi said at a ceremony to kickstart the process.

The Prime Minister also said that winning bidders will be allowed to gasify coal.

Benchmarks across Europe have opened with a negative bias, snapping a two-day gaining streak owing to lack of directional cues.

The Stoxx 600 has opened 0.3% lower with travel, oil and mining stocks leading the losses. Retail companies are the outperformers in early trade.

Most Asian markets are mixed while futures on the Dow Jones are off the lowest point of the day, down 80 points.

Brent Crude for the August contract is little changed at $40.7 per barrel, as is Gold, trading at $1,726/Oz.

Let's take a look at how benchmarks across Europe have opened:

• Euro Stoxx 50 down 0.34% at 3,257
• DAX down 0.3% at 12,348
• CAC down 0.42% at 4,974
• FTSE 100 down 0.5% at 6,223
• IBEX 35 down 0.72% at 7,423

The south-based cement company's revenue growth was flat during the March quarter while net profit was nearly wiped out - down 99.9% to Rs 20 lakh.

Operational performance improved due to lower power, fuel and freight costs. Ebitda rose 23.9% while margins improved to 23.4% from 18.7%.

The company had an exceptional loss of Rs 178.2 crore due to provision for loss at its Fujairah unit.

Ebitda per tonne for the company rose 34% to Rs 1,298.

Shares gained as much as 3.1% to Rs 1,256 and are up in three out of the last four trading sessions.

• Snaps seven-day losing streak
• Seven-day losing streak was the longest in a month
• Gains as much as 7.9% to Rs 139.7
• Biggest single-day gain since May 19, 2014
• Today's volumes are five times higher than its 30-day average
• Trading at a 53% discount to its peers on a blended forward EV/Ebitda basis.
• Trading at its 50-Day Moving Average of 136.6
• 25 out of the 27 analysts tracking the stock have a buy recommendation; 0 sell calls
• Return potential for the stock as per Bloomberg data is 46.7%

• Some plants resumed operations from mid-April.
• Lockdown in different phases impacting demand and supply.
• Lockdown to have adverse impact on Q1FY21 earnings.
• Not in a position to quantify the full impact of the pandemic on the business.
• Conditions which will impact the company's performance are highly uncertain and unpredictable.
• Do not foresee any material impact on capital and financial resources.
• Debt-free company and providing necessary liquidity to meet financial obligations. Demand for products should revive once the end user industries pick up.

Shares trade with little gains at Rs 242 after rising as much as 1.3%.

• Benchmark indices trade at the day's high
• Nifty up 0.6% at 9,940
• Sensex up 0.45% at 33,657
• Nifty Bank up 0.3% at 20,264
• Nifty Midcap Index up 0.8%
• Nifty Smallcap Index up 1.2%
• India Volatility Index down 4.2% to 31.96
• Nifty Auto, Nifty Pharma the only sectoral laggards
• Nifty Metal Index is the top sectoral gainer; up 2.2%
• Nifty Media (up 1.3%), Nifty Realty (up 0.7%) and Nifty PSU Bank (up 0.8%) are the other gainers
• Coal India is the top Nifty gainer; up 6%
• Maruti Suzuki is the top Nifty laggard; down 1.5%
• 1,247 stocks on the NSE gain while 478 decline

• Among top performers on the Nifty Smallcap Index
• Gains as much as 6.8% to Rs 30.7
• Snaps five-day losing streak
• Five-day losing streak was the longest since December 2019
• Has declined in six out of the last 10 trading sessions
• Today's volumes are 1.6 times higher than its 30-day average
• Trading around its 100-Day Moving Average of 29.7
• Has gained over 60% from its 52-week low of Rs 18 on March 24, 2020

The company reported a 21.5% decline in its revenue for the March quarter. Ebitda margin halved to 6.3% from 12.8% due to higher raw material costs and employee expenses.

Net profit fell 16% despite deferred tax reversal of Rs 24.4 crore this quarter.

Domestic sales of the company declined 22% while exports fell 20% compared to last year.

It has not provided a guidance for FY21 due to the Covid-19 pandemic. It has warned that the results of Q1FY21 will be significantly impacted due to the nationwide lockdown.

Shares fell as much as 3.5% to Rs 372.3 - their lowest level in nearly three weeks.

• Top performer on the Nifty Smallcap Index
• Trades at the highest level since January 2019
• Gains as much as 19.2% to Rs 107.9
• Biggest single-day gain in two months
• Up for the second straight day
• Gains 27% in the last two trading sessions
• Best two-day returns for the stock since September 2017
• Today's volumes are 30 times higher than its 30-day average
• Stock trades in overbought territory with Relative Strength Index (RSI) at 74.
• Has more than doubled from its 52-week low of Rs 44.8 on March 13, 2020

The consumer products manufacturer reported a 6% decline in its revenue for the March quarter while net profit fell 33% owing to an exceptional item.

The exceptional loss of Rs 33 crore was an impairment loss on plant and machinery at the Dahej Elastomer Project.

What also impacted the net profit was the lower other income which stood at Rs 14 crore this quarter as against Rs 56 crore during the same period last year.

However, the company's operational performance was aided by lower raw material costs.

Raw material cost as a percentage of sales fell to 42.1% from 48.5%.

Shares fell as much as 2.9% to Rs 1,390 per share.

• Nifty June futures add 9.3% and 8.84 lakh shares in Open Interest.
• Nifty Bank June futures add 13.91% and 2.5 lakh shares in Open Interest.

Nifty: Today's Expiry

• 9,900 Call: Premium down 37.6% to Rs 29.4. The contract has added 18.5 lakh shares in Open Interest.
• 10,000 Call: Premium down 71.6% to Rs 5.1. The contract has added 30.6 lakh shares in Open Interest.
• 9,800 Put: Premium down 67.7% to Rs 15.2. The contract has added 30 lakh shares in Open Interest.

Nifty Bank: Today's Expiry

• 20,500 Call: Premium falls 72.66% to Rs 29.85. The contract has added 7.1 lakh shares in Open Interest.
• 21,500 Call: Premium down 89% to Re 1. The contract has added 3.3 lakh shares in Open Interest.
• 20,000 Put: Premium down 52.6% to Rs 92. The contract has added 6.72 lakh shares in Open Interest.

The I.T. major has collaborated with IBM to power digital and cognitive enterprise transformations with IBM cloud.

Under the partnership, TCS will establish an IBM Enterprise Cloud Architecture Unit, which will involve professionals from both companies.

Shares fell as much as 1.1% to Rs 2,051, snapping a two-day gaining streak.

The private lender informed the exchanges on Wednesday that the amount in SMA/overdue categories, in which the bank had extended moratorium / deferment of payment stood at Rs 1,908.08 crore as on March 31, 2020.

The lender said that as on May 31, 2020, the same amount has been reduced to less than Rs 710 crore.

Shares gained as much as 8.8%, the most in two months to Rs 77.45. It also snapped a two-day losing streak.

It is also the second best performer on the Nifty Smallcap Index.

The city gas distributor's revenue growth remained flat during the March quarter while net profit rose 12.4% compared to the previous year.

Ebitda increased by 13.8% while Ebitda margin expanded to 24.3% from 21.5%.

The company reported a 1% volume growth during the quarter at 564 million scm.

The board has also recommended a dividend of Rs 2.8 per share.

Brokerage firm Nomura has maintained a buy rating on the stock with a price target of Rs 575. The note says that the company has a strong long-term outlook and it can re-rate further as well.

Shares fell as much as 4.6% to Rs 452.3 and are down for the second straight day.

Watch the company’s interaction with BloombergQuint, today at 1:45 p.m.

• Benchmark indices fluctuate between gains and losses
• Nifty up 0.2% at 9,902
• Sensex up 0.14% at 33,556
• Nifty Bank down 0.2% at 20,167
• Nifty Midcap Index up 0.6%
• Nifty Smallcap Index up 1.1%
• India Volatility Index down 2.5% to 32.51
• Nifty Media Index remains the top sectoral gainer; up 1.3%
• Nifty FMCG, Realty and Pharma indices gain 0.5% each
• Zee Entertainment is the top gainer on the Nifty; up 3%
• ONGC is the top laggard on the Nifty; down 2.1%
• 1,197 stocks on the NSE trade with gains while 451 decline

The currency opened flat today's trading session after Fitch Ratings revised India's long-term, foreign currency Issuer Default Rating to negative from stable.

The rupee opened at 76.17 against the U.S. Dollar as compared to Wednesday's close of 76.16.

The currency had snapped a four-day losing streak on Wednesday, ending as the third best performer in Asia.

Within the bond market, sovereign bonds with maturities of five to seven years are emerging as favourites for investors due to lucrative spreads.

Government bonds at the five-year point are offering close to 200 basis points over the effective overnight rate, according to IDFC AMC.

Fitch Ratings has revised the outlook on India's long-term foreign-currency Issuer Default Rating to negative from stable. The rating has been affirmed at BBB-.'

Key highlights from the Fitch Report:

• The pandemic has significantly weakened India's growth outlook for the year and exposed the challenges associated with a high public debt burden.
• Do not expect a steep rise in spending from the government due to the high debt burden.
• Fiscal metrics have deteriorated significantly. General government debt is likely to jump to 84.5% of the GDP in FY21.
• Medium-term GDP growth outlook may be negatively affected by renewed asset-quality challenges in banks and liquidity issues in the NBFCs.

52.2 lakh shares of the heavy engineering company exchanged hands in two large trades on the National Stock Exchange, as per Bloomberg data.

The first large trade had 31.68 lakh shares exchange hands while 20.53 lakh shares were transacted in the second large trade.

Buyers and sellers of the trade were not immediately known.

Shares of the company gained as much as 10% to Rs 30.15, snapping a three-day losing streak.

• India reports biggest single-day spike in total cases
• 12,881 new cases added in the last 24 hours
• Total cases in the country now rise to 3,66,946
• Total active cases at 1,60,384
• Recoveries remain higher than the active cases at 1,94,325
• Death toll rises to 12,237 with 334 deaths reported in the last 24 hours
• 7,390 patients recovered and were discharged during the last 24 hour period

The gold financing company reported a 29.5% growth in its net interest income as compared to the same period last year. Net profit saw a growth of 59.2% while loan assets rose 22% from the previous year to Rs 41,611 crore.

Gold loan assets for the company rose by Rs 3,113 crore during the quarter gone by.

Capital Adequacy Ratio for the company stood at 25.47 in FY20 as compared to 26.05 in FY19.

Average loan ticket size too grew 22% to Rs 50,824.

Shares gained as much as 7.9% to trade at a record high of Rs 1,078. The stock is up for the third straight day.

Indian equity markets opened lower, in-line with its peers in Asia, owing to lack of directional cues towards the upside.

The S&P BSE Sensex opened 0.41% lower at 33,371 while the NSE Nifty 50 index opened 0.2% lower at 9,863.

Both benchmark indices are alternating between gains and losses over the last 10 trading sessions.

Among the sectoral indices, the Media index continues to surge, opening with gains of 1.25%. Other sectoral indices opened mostly flat.

Market breadth remained in favour of the advances. 829 stocks on the NSE opened with gains while 549 stocks declined.

• Global cases cross 8.3 million
• Death toll rises to 4.47 lakh
• Beijing's total cases surged past 150
• Japan set to lift travel curbs on Friday
• Honduran President tests positive for Covid-19
• Australian unemployment surges in May
• South Korea reports 59 new cases
• One new case reported in New Zealand
• Third person attending a protest in Melbourne tests positive
• HP CEO tests positive while Mexico reports 770 new deaths

• HDFC AMC: Offer for Sale to non-retail investors gets 2.7 times demand. Issue for retail investors opens today.
• India Cements: Calls reports of Radhakishan Damani considering buying controlling stake in the company has 'factually incorrect.'
• Infosys: Telangana High Court sets aside the sales tax commissioner's assessment notice against the company. The court set aside the notice saying the tax department failed to follow principles of natural justice as the time of hearing was fixed during the lockdown.
• DCB Bank: The amount in overdue categories where the moratorium was extended as on March 31, 2020, has reduced to Rs 710 crore as on May 31, 2020 from the initial Rs 1,908.08 crore.
• Cummins India: Does not provide revenue guidance for FY21. Customers resume operations partially. Expects significant impact on Q1FY21 results due to lockdown.
• Hexaware: Board to consider due diligence report for de-listing proposal on June 20.
• Union Bank of India: First two quarters of FY21 may see impact on revenue due to Covid-19. However, normalcy is expected in the second half.
• Somany Ceramics: To consider raising capital via debt on June 25.
• HT Media: To consider raising funds via NCDs on June 26.
• Non-Nifty Earnings Today: Whirlpool, Bajaj Consumer, Brigade Enterprises, Thermax, IRB Infra, MOIL, GSFC, City Union Bank.

To know more about companies that reported earnings after market hours on Wednesday along with other trading cues, click here.

• Benchmark indices snap four-day gaining streak.
• S&P 500 ended lower after fluctuating for most part of the day.
• Energy, Real Estate and Financials were the top laggards
• Apple, Microsoft ensure Nasdaq ends with gains.
• Volumes were 20% below the 30-day average
• Fed Chair Jerome Powell urged the Congress to not pull back too quickly on federal relief to households and small businesses.
• Bloomberg Dollar Spot Index was little changed.
• Yield on the 10-year treasury fell three basis points to 0.73%
• West Texas Intermediate crude fell 1.8% to $37.67 per barrel.

Get all the live action on the global equity markets here.

Good Morning!

Indian equity markets ended the mid-week session with a negative bias after trading in a range through most part of the day.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.8% to 9,786 as of 7:40 a.m.

Asian markets are retreating at the start of trade on Thursday. Markets in Japan, Australia and Hong Kong have edged lower as the rally in global equities is showing signs of fatigue.

Futures on the Dow Jones are now trading lower by 350 points after the benchmark index ended 0.65% lower.

Treasuries and haven assets like the Yen are advancing, while West Texas Intermediate crude trades 1.5% lower at $37.39 per barrel.

The Australian stocks have declined after the country reported a bigger-than-expected decline in employment.

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