Sensex, Nifty End 6% Lower Dragged By Private Banks, I.T.

• Benchmarks post biggest one-day drop in over a month
• Nifty ends 5.7 percent lower at 9,293
• Sensex ends 5.9 percent lower at 31,715
• Nifty Bank ends 8.3 percent lower at 19,743
• Nifty Midcap Index ends 4.4 percent lower
• Nifty Smallcap Index ends 3.2 percent lower
• India Volatility Index ends 28.7 percent higher at 43.74, its biggest one-day jump since March 12 this year
• Nifty Auto, Nifty Metal and Nifty Realty end with cuts of over 7 percent
• Nifty I.T., Nifty Media and Nifty FMCG fall 4 percent each
• Cipla ends as the top Nifty gainer; up 3.7 percent
• Only 3 Nifty constituents end with gains
• Hindalco ends as the top Nifty laggard; down 10.7 percent
• 1,399 stocks on the NSE ended with losses while 424 posted gains

Indian equity markets registered their biggest one-day drop in over a month owing to weak global cues and poor macro data domestically.

The S&P BSE Sensex ended 5.9 percent lower at 31,715. Only 2 out of the 30 index constituents managed to register gains at the close of trade.

The NSE Nifty 50 index gave up half of the gains made during the previous week, ending at 9,293, down 5.7 percent. 47 out of the 50 index constituents ended with losses.

Among sectoral indices, the Nifty Bank was the principal underperformer, ending 8 percent Lower. Nifty Auto, Nifty Metal and Nifty Realty ended with cuts of over 7 percent.

• Trades at the lowest level since March 2009
• Falls as much as 7.5 percent to Rs 45.5
• Snaps four-day gaining streak
• Biggest one-day fall in a month
• Fitch Ratings has downgraded the viability rating on the stock to BB-
• Down 68 percent from its 52-week high of Rs 144 on May 23, 2019
• Today's volumes are 0.9 times higher than its 30-day average
• 18 out of the 36 analysts tracking the stock have a buy recommendation; 6 sell calls
• Return potential of the stock as per Bloomberg data is 73.3 percent

• Third worst performer on the Nifty 50 index after Hindalco and ICICI Bank
• Falls as much as 12.5 percent to Rs 2,028
• Biggest one-day fall in a month
• Snaps four-day gaining streak
• Today's volumes are 0.9 times higher than its 30-day average
• Trades below all Daily Moving Averages
• 20 out of the 31 analysts tracking the stock have a buy recommendation; 4 sell calls
• Return potential of the stock as per Bloomberg data is 54.4 percent

• Nifty: Buy 9,200 Put of the May 14 expiry at Rs 235 for target of Rs 450 and stop loss of Rs 120
• Buy Biocon for target of Rs 390 and stop loss of Rs 345
• Sell Ambuja Cement on a bounce to Rs 167 for target of Rs 158 and stop loss of Rs 172

The company reported a 10 percent growth in its revenue from power generation to Rs 601 crore while it reported a net profit of Rs 96.4 crore as compared to a net loss of Rs 94 crore in the previous quarter, as per its exchange filing.

The board of the company has also approved to raise funds up to Rs 2,500 crore via issue of equity shares, convertible bonds or other convertible securities through a QIP and other options.

Shares gained as much as 3.6 percent to Rs 218 and are up for the fifth straight day.

• Nifty: Buy 9,600 Call of the May 28 expiry at Rs 200 for target of Rs 270 and stop loss of Rs 165
• Buy Cadila Healthcare at Rs 332 for target of Rs 342 and stop loss of Rs 327
• Sell M&M at Rs 354 for target of Rs 344 and stop loss of Rs 359

• Benchmark indices fall to the day's low
• Nifty down 5.5 percent to 9,314
• Nifty futures trade at a discount of 29 points
• Sensex down 5.6 percent to 31,826
• Nifty Bank down 8 percent to 19,826
• Nifty Midcap Index down 4 percent
• Nifty Smallcap Index down 3 percent
• India Volatility Index up 28 percent to 43.41
• Nifty Auto, Nifty Metal index fall over 7.5 percent
• Nifty Private Bank Index down 8 percent
• Nifty I.T., Nifty Media and Nifty FMCG Index down 4 percent
• Nifty Pharma is the only sectoral gainer; up 1.1 percent
• Cipla is the top Nifty gainer; up 3.5 percent
• Hindalco is the top Nifty laggard; down 11.1 percent
• 1,415 stocks on the NSE trade with losses while 380 are declining

The currency snapped a four-day gaining streak and has begun the new week on a negative note.

The rupee ended at 75.72 against the U.S. Dollar as compared to Thursday's close of 75.10. The 0.8 percent drop was the biggest single-day fall seen by the rupee in a month.

Among Emerging Market Peers, the rupee was the fourth worst-performing currency after the South Korean Won, Russian Ruble and the Indonesian Rupiah.

Yield on the 10-year Government bond ended at 6.08 percent after starting at 6.138 percent.

The company has informed the exchanges that it has resumed its Power and Ferro Alloys operations at Paloncha and Dhenkanal in Telangana and Odisha respectively. It has obtained the necessary permissions from the state government.

The release also stated that the operations of the company's subsidiary, Nava Bharat Energy India remain shut as there is no bilateral contract and no alternative viable market on the power exchange.

Shares fell as much as 4.2 percent to Rs 36.20. Shares traded as high as 8.5 percent at one point before cooling off.

• Second worst performer on the Nifty Smallcap Index
• Falls as much as 11.6 percent to Rs 264.
• Snaps four-day gaining streak
• Today's volumes are double than its 30-day average
• Has rebounded 32 percent from its 52-week low of Rs 206 on March 25, 2020
• 10 out of the 14 analysts tracking the stock have a buy recommendation; 1 sell call
• Return potential of the stock has per Bloomberg data is 36 percent

Shares of the hospital services provider rose as much as 12.7 percent to Rs 78.95 after it informed the exchanges that it will consider raising funds by issue of equity shares or other equity linked securities on a preferential basis on May 7.

Today's gains are on volumes that are 11.2 times higher than its 30-day average. It is also the biggest single-day gain for the stock since August 2019.

The stock has rebounded 25 percent from its 52-week low of Rs 62 on April 15, 2020.

The company has informed the exchanges that it will acquire the balance 50 percent stake in its subsidiary Ryker Base from Trafigura.

The transaction is valued at $4 million or Rs 30 crore and is expected to be completed by the end of this month.

Ryker Base has a debt of Rs 197 crore availed earlier for funding the cost of a plant.

Shares fell as much as 4.6 percent to Rs 690.3 and are down for five out of the last six trading sessions.

Benchmarks across Europe resumed trade after what was a long holiday weekend for most of the markets across the continent.

Stocks have opened on a negative note with the Stoxx 600 index opening with losses of over 2 percent. Futures on the Dow Jones are down 150 points.

All sectors on the Stoxx 600 are trading with losses led by the oil and gas stocks. Autos and banks are the other laggards while healthcare stocks are outperforming.

Here's a look at how benchmarks across Europe have opened for trade:

• Euro Stoxx 50 down 2.9 percent to 2,843
• DAX down 3 percent to 10,539
• CAC down 3.2 percent to 4,424
• FTSE 100 down 1 percent to 5,703
• IBEX 35 down 3 percent to 6,716

• Reliance Industries' 1,500 Call: Premium falls 10.7 percent to Rs 62.75. The contract has added 4.44 lakh shares in Open Interest.
• Axis Bank's 400 Put: Premium rises 123.66 percent to Rs 31.2. The contract has added 5.61 lakh shares in Open Interest.
• Hindustan Unilever's 2,200 Call: Premium falls 21.6 percent to Rs 90.3. The contract has added 1.02 lakh shares in Open Interest.

The state-run maker of power plant equipment has floated an Expression of Interest inviting global companies to partner with it and leverage its facilities and capabilities to set up a manufacturing base in India.

The company has a total of 16 manufacturing facilities across the country with a substantial land back.

Shares recovered from the day's low after the announcement, gaining as much as 8.3 percent to Rs 24.35 and are up for the fifth straight day.

The pharma company has informed the exchanges that it has received the final approval from the U.S. FDA to manufacture and market Flucytosine Capsules, the 250 mg and 500 mg version.

The approved drug is used in the treatment of serious infections caused by susceptible strains of Candida.

The said drug is the generic version of Bausch Health's Ancobon capsule. The company intends to launch the product in June 2020.

As per IQVIA, the product had an estimated market size of $43 million for twelve months ending March 2020.

Shares gained as much as 5.22 percent to Rs 658.50 and are up for the third straight day.

• Benchmark indices remain near the day's low
• Nifty down 5 percent to 9,372
• Nifty futures trade at a discount of 27 points
• Sensex down 5.1 percent to 32,014
• Nifty Bank down 7.2 percent to 19,989
• Nifty Midcap Index down 4.3 percent
• Nifty Smallcap Index down 3 percent
• India Volatility Index up 27 percent to 43.14
• Nifty Metal Index down 7.4 percent and is the top sectoral laggard
• Nifty Auto and Nifty Realty index fall over 6.5 percent each
• Nifty I.T., Nifty Media fall over 4 percent each
• Nifty Pharma is the only sectoral gainer; up 1.1 percent
• Cipla remains the top Nifty gainer; up 3.75 percent
• Hindalco remains the top Nifty loser; down 10 percent
• 1,428 stocks on the NSE trade with losses while 318 stocks gain

The company shared its production and sales figures for the month of April with the stock exchanges over the weekend.

The company's Iron Ore production fell 38 percent compared to last year to 1.8 million tonnes while sales fell to 1.38 million tonnes from 2.8 million tonnes, down 49 percent compared to last year.

Shares fell as much as 8.4 percent to Rs 73.80 and are among the worst performers on the Nifty Metal Index.

CRISIL has re-affirmed the credit rating on borrowings and NCDs of the company at AA and that of its fixed deposits at AA+. The outlook has been revised to negative from stable.

CRISIL says that the outlook reflects the delay in capital raise, adding that it faces a high risk of slippages in the wholesale book due to the Covid-19 lockdown, weak economic activity and its impact on real estate.

Shares are locked in a lower circuit of 5 percent at Rs 188 and are down for the sixth day in a row.

The company in an exchange filing informed that it has decided to hike the prices of all grades of Ferro, SMGR grades, fines and Chemical grades by 45 percent.

This hike will be done on the prices prevalent in April, 2020.

Shares are off the day's high after gaining as much as 7.34 percent and snapping a two-day losing streak. It is the only gainer on the Nifty Metal index.

The bank has approved raising capital worth Rs 2,000 crore via a preferential issue.

The bank will issue shares to its promoter IDFC, along with ICICI Prudential, HDFC Life, Bajaj Allianz Life and Dayside Investment which belongs to the Warbug Pincus Group.

Post the fund raise, the bank's Capital Adequacy Ratio will rise to 15.5 percent while the CET-1 ratio will rise to 15.3 percent.

Shares fell as much as 7.7 percent to Rs 20.2 and are down for the third straight day.

The two-wheeler maker has informed the exchanges that it gearing up to restarting production operations, commencing operations in a graded manner at its plants in Gurugram, Dharuhera and Haridwar. Operations will also resume at the Global Parts Center at Neemrana in Rajasthan.

The company's other plants have also obtained necessary permissions to reopen and will resume after most supply chain partners get permissions to operate, the release said.

The company said that it did not manufacture or dispatch any vehicle to dealers in the month of April.

Shares fell as much as 8.3 percent to Rs 1,985 on the National Stock Exchange, snapping a five-day gaining streak.

Axis Bank: Fitch Ratings has downgraded the bank's viability rating to BB from BB+. The reason for the downgrade is driven by a rapid deterioration in the operating environment for banks in India following Covid-19 and measures to contain its spread.

SBI: Fitch Ratings has downgraded the viability rating of the bank to BB. Fitch said that the downgrade reflects the heightened risks that weakening asset quality quality will pose to its less-than-satisfactory loss-absorption buffers.

Shares of Axis Bank fell as much as 8.3 percent to Rs 407.65 while those of State Bank of India fell 6.6 percent to Rs 178, snapping a four-day losing streak.

India's manufacturing PMI for the month of April stood at 27.4 as compared to 51.8 for the month of March. This was the lowest ever reading since the series began, as reported by Bloomberg, quoting IHS markit.

• Nifty May futures add 10.3 percent in Open Interest and 9.47 lakh shares
• Nifty Bank May futures add 29 percent in Open Interest and 2.84 lakh shares

Nifty: May 7 Expiry

• 9,500 Call: Premium falls 69 percent to Rs 110.1. The contract has added 11.5 lakh shares in Open Interest.
• 9,000 Put: Premium rises 456.33 percent to Rs 68.15. The contract has added 3.1 lakh shares in Open Interest.
• 9,800 Call: Premium falls 79 percent to Rs 29.7. The contract has added 7.25 lakh shares in Open Interest.

Nifty Bank: May 7 Expiry

• 19,000 Put: Premium up 700 percent to Rs 262.1. The contract has added 2.06 lakh shares in Open Interest.
• 19,500 Put: Premium up 625 percent to Rs 415.45. The contract has added 1.6 lakh shares in Open Interest.
• 21,000 Call: Premium down 72 percent to Rs 202.35. The contract has added 3.2 lakh shares in Open Interest.

The general insurance player saw its Gross Direct premium fall 8.7 percent in the March quarter to Rs 3,181 crore while net profit rose 23.8 percent aided by Motor and retail health segment.

The company also saw its retail indemnity new business growing 69.9 percent in FY20 while private car penetration rose 19 percent.

Motor segment constituents 51 percent of the total product mix for FY20 while health constituted 25 percent.

Shares fell as much as 6.87 percent to Rs 1,202, snapping a four-day gaining streak.

The company reported a 43 percent growth in its Net Interest Income to Rs 555 crore. This is against the Rs 387 crore figure during the same period last year.

Net profit growth however was muted at 3.4 percent due to provisions rising as much as 3 times to Rs 150 crore compared to Rs 40 crore during the previous quarter.

Asset quality remained stable with gross and net NPAs at 1.68 percent and 0.81 percent respectively. The bank's liquidity coverage ratio stood at 133 percent, as per its investor presentation.

Shares are locked in a 5 percent lower circuit at Rs 516.55, snapping a two-day gaining streak.

• Benchmark indices extend losses after opening lower
• Nifty down 5.1 percent to 9,358
• Nifty futures trade at a discount of 12 points
• Sensex down 5.1 to 32,008
• Nifty Bank down 7.6 percent to 19,908
• Nifty Midcap Index down 4.4 percent
• Nifty Smallcap Index down 3.5 percent
• India Volatility Index up 27.5 percent to 43.34
• Nifty Bank, Nifty Auto and Nifty Metal Index fall over 7.5 percent
• Nifty FMCG, Nifty I.T. Index fall over 3.5 percent
• Nifty PSU Bank, Nifty Realty and Nifty Media down over 5.5 percent
• Cipla is the top Nifty gainer; up 1.7 percent
• Only three stocks gain on the Nifty 50 index and all three are pharma stocks
• Tata Motors is the top laggard on the Nifty; down 12 percent
• 1,394 stocks on the NSE are trading with losses while 260 trade with gains

The currency snapped a four-day gaining streak, its longest in a month to open weaker in today's trading session.

The Rupee opened at 75.71 against the U.S. Dollar, as compared to Friday's close of 75.10. Last week saw its best weekly returns since December 2018.

Yield on the 10-year government bond opened at 6.129 percent as compared to Friday's close of 6.122 percent.

The company has informed the exchanges that it has reported a crude steel production of 5.63 lakh tonnes for the month of April at an average capacity utilisation of 38 percent.

The update also stated that it has secured required approvals to resume operations in a 'healthy and safe' environment and is gradually ramping up the same.

Production of Flat Rolled Products stood at 3.44 lakh tonnes while that of Long Rolled Products stood at 0.89 lakh tonnes.

Shares are among the top laggards on the Nifty 50 index, falling as much as 9.5 percent to Rs 163.50, snapping a four-day gaining streak.

Bajaj Auto saw zero domestic sales for the month of April, due to the nationwide lockdown to combat the spread of Covid-19.

The company in a press release stated that exports of 2-wheelers fell 80 percent to 32,009 units while exports of commercial vehicles fell 81 percent to 5,869 units.

Shares fell as much as 6.4 percent to Rs 2,455 on the National Stock Exchange and snapped a two-day gaining streak.

The FMCG major reported a 9.4 percent drop in net sales to Rs 9,011 crore for the quarter ending March 31, which was the lowest level in the last 9 quarters.

The company reported an underlying volume decline of 7 percent for the quarter with a sharp decline in sales for the month of March due to the Nationwide lockdown.

The Beauty and Personal Care segment was the most impacted with revenue declining 13.5 percent to Rs 3,834 crore.

The management has said that it cannot anticipate a recovery timeline as long as the lockdown continues. It added that it has not laid-off any employees or cut pays so far but will have to re-think its plans in case of a deep recession.

Brokerages have maintained an upbeat stance on the stock, terming this as a one-off quarter.

Shares fell as much as 4.1 percent to Rs 2,104 on the National Stock Exchange.

India's biggest company by market capitalisation reported a 72 percent drop in net profit for the quarter ending March led by a crash in oil prices, inventory losses and higher tax rates. This was the

The company's telecom subsidiary Reliance Jio reported a jump in profits led by a 42 percent drop in finance costs.

Today's newsflow: Sliver Lake will invest Rs 5,656 crore in Jio Platforms at an equity value of Rs 4.9 lakh crore. The deal represents a 12.5 percent premium to the equity valuation of the investment made by Facebook.

Most brokerages have retained their bullish stance on the stock citing a favourable risk-reward ratio.

Shares fell as much as 3.31 percent to Rs 1,417 on the National Stock Exchange.

Indian equity markets resumed trading after the long weekend on a negative note, tracking weak cues from across Asia. Futures on the Dow Jones trade lower by 200 points.

The S&P BSE Sensex fell 2.8 percent on open to 32,748 while the NSE Nifty 50 index opened at 9,533, down by 3.3 percent. All constituents of the Nifty 50 opened with losses.

All sectoral indices opened with losses, with the Nifty Bank index opening lower by as much as 1,000 points. Nifty Auto, Nifty Metal were some of the other indices that opened 4 percent lower.

1,133 stocks opened trade with losses while only 321 opened with gains.

• Global cases cross 3.5 million
• Death toll tops 2.47 lakh
• Japan to extend state of emergency till May 31
• Russia reports more than 10,000 new cases, the highest number of the outbreak
• U.S. President Donald Trump raised the expected U.S. death toll from Covid-19 to as many as 1 lakh
• Egypt to open hotels at 25 percent of total capacity till June 1 and 50 percent by July
• U.S. Secretary of State Michael Pompeo says that there is 'enormous evidence' to show that Covid-19 began in a laboratory in Wuhan but did not provide any proof for his claims.
• India adds 2,553 cases in the last 24 hours, taking the total number of cases to 42,553. 1,074 people recovered while 72 deaths were reported during this period.

• Buy Dr Reddy's for target of Rs 4,080 and stop loss of Rs 3,800
• Buy Bharti Airtel for target of Rs 545 and stop loss of Rs 500
• Sell Axis Bank for target of Rs 415 and stop loss of Rs 460

• Buy Lupin for target of Rs 882 and stop loss of Rs 788
• Sell Cummins India for target of Rs 350 and stop loss of Rs 386

• Reliance Industries: Revenue fell 14.3 percent to Rs 73,596 crore while net profit falls 73.1 percent to Rs 2,580 crore. This was the biggest fall in net profit in at least 13 years. A sharp drop in crude prices led to an inventory loss of Rs 4,245 crore. Gross Refining Margin stood at $8.9 per barrel versus $9.2 per barrel. Reliance Jio reported a 2.3 percent sequential growth in ARPU to Rs 130.6 despite a steep hike in tariffs. A 42 percent drop in finance costs led to Jio's net profit expanding 72.7 percent to Rs 2,331 crore. The company will also raise Rs 53,500 crore through a rights issue.
• Hindustan Unilever: Net sales down 9.4 percent to Rs 9,011 crore which was the lowest in 9 quarters. Ebitda fell 11 percent to Rs 2,065 crore while margins declined to 22.9 percent from 23.3 percent. Beauty and Personal Care revenue fell 13.5 percent to Rs 3,834 crore. Management says it cannot estimate the time of recovery as the lockdown is continuing. It added that while it has not shed any jobs or salary cuts so far, it will have to re-evaluate its options if it goes into a deep recession. It has maintained its positive outlook on the FMCG sector for the medium-long term.
• Tech Mahindra: The company's dollar revenue fell 4.3 percent to $1,295 million. Its revenue in rupee terms fell 1.7 percent to Rs 9,490 crore while Ebit margin declined to 7.7 percent from 12.2 percent in the previous quarter. 100 bps contraction in margins was due to provisions which were made in anticipation of losses and costs arising out of the Covid-19 disruption. The management expects recovery in the medium-term and it does not anticipate any further provisioning.
• IDFC First Bank: Approves capital raise of Rs 2,000 crore via preferential issue. Shares will be issued to IDFC, ICICI Prudential, HDFC Life, Bajaj Allianz Life and Dayside Investment which belongs to the Warbug Pincus group. IDFC Financial Holding has infused Rs 800 crore as part of the issue.
• State Bank of India: Fitch Ratings downgrades the viability rating by one notch to BB, citing the impact of Covid-19 on operating environment. The agency said that the downgrade reflects the heightened risks that weakening asset quality will post to its less-than-satisfactory loss-absorption buffers.
• Coal India: Coal production in April down 10.9 percent to 40.38 million tonnes while offtake falls 25.5 percent to 39.06 million tons.
• MOIL: The prices of all grades of Ferro, SMGR, fines and chemicals have been raised by 45 percent in May as compared to those in April 2020.
• NMDC: Iron Ore sales down 49 percent in April to 1.38 million tonnes while production falls 38 percent to 1.8 million tonnes
• Healthcare Global: To consider fund raising by issue of equity shares or other equity linked securities on a preferential basis on May 7.
• Adani Enterprises: To consider raising funds via issue of equity shares or convertible bonds through QIP and via issuance of NCDs on a private placement basis on May 6.
• Laurus Labs: Board approved share split of one share into five shares and approved merger of two foreign arms with itself.

For all that you need to know going into today’s trade, click here.

• Benchmark indices fell after profit warnings from major companies
• The S&P 500 index fell 2.8 percent, leading to its second successive weekly loss
• The S&P 500 however posted its best month since April 1987
• Exxon Mobil Corp. fell after reporting its first quarterly loss in almost 32 years
• Federal Reserve Bank of Dallas President Robert Kaplan warned of a severe contraction from Covid-19
• The Bloomberg Dollar Spot index rose 0.4 percent
• West Texas Intermediate Crude posted its first weekly advance in almost a month. The commodity trades lower by 6 percent today.

Catch all the action in the Asian markets here.

Good Morning!

Indian equity markets are resuming trade after the long weekend. This will be the first trading day of the month as well as the May series.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.3 percent to 9,341 as of 7:55 a.m. The gauge had fallen 6 percent over the weekend.

Asian markets are retreating along with futures in the U.S. and Europe indicating a persistent risk-off sentiment. Markets in Australia and South Korea have opened lower while those in Hong Kong falling as much as 3.5 percent in early trade.

Markets in China and Japan are shut on account of a holiday. The U.S. dollar is climbing while the euro, pound and Australian dollar are declining. The yuan has extended Friday's losses amid rising tensions with the U.S.

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