Closing bell:
The benchmark indices rallied in today's session. The BSE Sensex ended at 519.11 points up to settle at 35,430.43. Whereas, NSE Nifty surged 159.80 points to 10,471.
Bajaj Finance, L&T, IndusInd Bank were the top gainers. Reliance, Bharthi Airtel and HDFC were the top laggards.
Rupee close: Rupee jumped 37 paise to close at 75.66 (provisional) against US dollar.
Company news:
Media house DB Corp reported 55.83 per cent decline in consolidated net profit at Rs 24.05 crore for March quarter 2019-20 due to the impact of COVID-19. The company had posted a profit of Rs 54.45 crore in January-March a year ago, DB Corp said in a regulatory filing.
Revenue from operations was down 17.30 per cent to Rs 486.65 crore during the quarter under review as against Rs 588.52 crore in the year-ago period. - PTI
2.20 pm
NSE Gainers and Losers:
Company news : IT services major Tech Mahindra said it has partnered with Lucideus to offer annual cybersecurity risk assessment to global organisations. The initiative will help global corporations measure and mitigate prevailing cyber risks in real-time through a complimentary online assessment, a statement said.
This will be an ongoing annual assessment aimed at bringing the most advanced cyber risk quantification solutions to customers globally, and transform the way businesses monitor cybersecurity currently, it added. - PTI
Fitch Ratings said it has revised the outlook on ratings of six government-owned firms such as Indian Oil Corp (IOC), NTPC and GAIL to ‘negative’ from ‘stable’, following a change in outlook on sovereign India rating.
The PSUs whose rating outlook has been revised include IOC, Bharat Petroleum Corp Ltd (BPCL), Oil India Ltd (OIL), GAIL India Ltd, Power Grid Corp of India Ltd and NTPC Ltd. - PTI
BSE update:
LIC IPO Update : Three trade unions of Life Insurance Corporation of India (LIC) have requested Finance Minister Nirmala Sitharaman to withdraw the invitation of bids for appointment of pre-Transaction Advisors for the life insurer’s initial public offer (IPO).
They have also sought reconsideration of the government’s decision of disinvestment in India’s largest life insurer.
Company news:
Arka Fincap Ltd , a wholly-owned subsidiary of Kirloskar Oil Engines Ltd (KOEL), has raised ₹105 crore through non-convertible debentures (NCDs) on a private placement basis.
The asset liability committee approved the issuance of 1,050 secured, redeemable, listed, rated NCDs of the face value of ₹10 lakh each, for a maximum tenure of three years. The debentures are listed on BSE.
NSE Sectoral indices update:
Stock update:
Shares of Info Edge (India) on Tuesday surged 7 per cent after the company’s board of directors approved fund raising of up to ₹1,875 crore.
On BSE, the scrip jumped 6.80 per cent to ₹2,959.20 and, it rose by 6.96 per cent to ₹2,962.20 on NSE.
The company’s board of directors has approved fund raising of up to ₹1,875 crore through issue of equity shares via qualified institutions placement (QIP).
Oil market update: Domestic crude oil production stood at 2.6 million tonnes (mt) while gas production was at 2300 million standard cubic metres during May 2020.
Compared with May 2019, crude oil and gas production were 7.06 per cent and 16.02 per cent lower, respectively.
The lowered crude oil and gas production has been attributed to restriction of movement for field operations in onshore fields due to the Covid-19 lockdown, an official statement said.
Broker's call: City Union Bank (Buy)
CMP: ₹126.2
Target: ₹154
City Union Bank’s Q4 NII at ₹420 crore was slightly lower led by muted loan growth at +3.8 per cent y-o-y (our estimate: 9 per cent). NIM (calc.) at 3.85 per cent was a tad lower due to slippages. Higher other income at ₹180 crore (+22.1 per cent y-o-y) was led by treasury & forex of ₹79 crore. Opex was lower due to downward revision of actuarial employee benefit assumptions. PPOP (pre-provision operating profit) came in at ₹335 crore (-0.8 per cent y-o-y). Provisions were ₹450 crore (est. ₹1.2bn) of which Covid-19 related were ₹125 crore. GNPA/NNPA deteriorated q-o-q by 59 bps/34 bps to 4.1 per cent/2.3 per cent. Slippages for the quarter were at ₹480 crore (est. ₹210 crore). CUB reported a loss at ₹95.3 crore (vs. PAT est. of ₹1.45bn). On FY20 basis PAT at ₹480 crore (est. ₹720 crore).
Valuation and risks: For FY21E, we lower our NII/other income and raise provisions which might impact FY21/F22E PAT by 45 per cent/8.0 per cent. CUB has been a consistent performer though FY21E earnings could be dented due to stress in MSME. We like the management quality and valuation at 1.7x FY22ABV is also attractive.
Risks: Higher stress.
Today's stock pick | Balmer Lawrie & Company (₹112.6): Buy
Investors with a short-term perspective can buy the stock of Balmer Lawrie & Company at current levels. The stock found support at around ₹70 in late March this year, following an intermediate-term downtrend. Subsequently, the stock reversed direction triggered by positive divergence and has been on a medium-term uptrend since late March.
Update: Financial stocks pulled the main indexes higher as investors worried that moves to tighten US visa controls would hurt the country's big IT outsourcers.
The Nifty banking index and finance index rose nearly 1 per cent each, while a more than 1 per cent fall in shares of heavyweights Infosys and Wipro dragged down the information technology index by 0.5 per cent.
Trump suspended the entry into the United States of certain foreign workers on Monday, a move the White House said would help the coronavirus-battered economy.
The move could hit Indian IT outsourcing companies, which depend on H-1B visas to send engineers and developers to work with their clients in the United States, its biggest market.
Foreign institutional investors have been net buyers for the past few sessions, NSE data showed, suggesting more global investors were pushing some of the huge surplus of cash pumped into the banking system by central banks to buy back into Mumbai.
Updates: Riding on a fund-raising spree, Mukesh Ambani has emerged as the eighth richest man in the world, a position he shares with Google co-founder Sergey Brin. The other Indian in the global rich list is ‘Vaccine King’ Cyrus Poonawalla, who has become the 57th richest man in the world.
For the previous two years, Ambani was ranked as the ninth richest. The Chairman and Managing Director Reliance Industries Ltd (RIL), who is already Asia’s richest man, has moved one rank up from the earlier position he held before the Covid-19 outbreak, as on January 31, 2020. Ambani’s net worth stood at ₹4.98-lakh crore as of May 31, 2020, according to a Hurun Research report.
Oil update:
Oil prices were volatile after markets were spooked by surprise comments from White House trade adviser Peter Navarro saying a hard-won U.S-China trade deal was “over”, though he later said his comments had been taken out of context.
Jangled nerves were also soothed to some degree after US President Donald Trump later tweeted that the China trade deal was fully intact, adding he hoped China would continue to live up to the terms of the agreement.
Opening bell:
The benchmark indices today opened on a positive note.
The BSE Sensex opened the session at 35,044.55 , up 133.23 points or 0.38 per cent. The NSE Nifty was at 10,369.00, up 57.80 points or 0.56 per cent.
Bank, Metal and Media are in green zone. Meanwhile, IT in red.
IndusInd Bank, UPL and Bajaj Finance opened over 3 per cent higher.
Asian Market update:
Asian shares see-sawed in a wild ride today following confusing statements from the White House over the United States (US)-China trade deal, with President Donald Trump later clarifying the pact was “fully intact.”
Trump's tweet bolstered market sentiment, helping e-minis for the S&P 500 swing back to positive territory. Asian shares were quick to turn around too, with MSCI's broadest index of Asia Pacific shares outside of Japan up 0.7 per cent.
Risk sentiment had taken a knock early in the Asian day after White House trade adviser Peter Navarro said the trade deal with China was “over”, linking the breakdown in part to Washington's anger over Beijing not sounding the alarm earlier about the coronavirus outbreak.
9.10 am
Day Trading Guide
₹1028 • HDFC Bank
S1 | S2 | R1 | R2 | COMMENT |
1013 | 1000 | 1040 | 1055 | Initiate fresh long positions with a fixed stop-loss only if the stock rallies above ₹1,040 levels |
₹703 • Infosys
S1 | S2 | R1 | R2 | COMMENT |
690 | 680 | 710 | 720 | Fresh short positions can be initiated with a stiff stop-loss if the stock fails to move beyond ₹710 levels |
₹185 • ITC
S1 | S2 | R1 | R2 | COMMENT |
182 | 179 | 188 | 191 | Fresh long positions are recommended with a tight stop-loss only if the stock rallies above ₹188 levels |
₹84 • ONGC
S1 | S2 | R1 | R2 | COMMENT |
82 | 79 | 87 | 90 | Consider initiating fresh long positions with a stiff stop-loss if the stock of ONGC climbs above ₹87 levels |
₹1747 • Reliance Ind.
S1 | S2 | R1 | R2 | COMMENT |
1734 | 1720 | 1765 | 1780 | Make use of intra-day declines to buy the stock of RIL while maintaining a stiff stop-loss at ₹1,734 levels |
₹187 • SBI
S1 | S2 | R1 | R2 | COMMENT |
182 | 175 | 194 | 200 | Fresh long positions can be initiated with a fixed stop-loss if the stock of SBI rebounds up from ₹182 levels |
₹2028 • TCS
S1 | S2 | R1 | R2 | COMMENT |
2005 | 1980 | 2050 | 2070 | Initiate fresh short positions with a tight stop-loss only if the stock slumps below ₹2,005 levels |
10288 • Nifty 50 Futures
S1 | S2 | R1 | R2 | COMMENT |
10230 | 10170 | 10345 | 10400 | Fresh long positions can be initiated with a fixed stop-loss if the contract reverses higher from ₹10,230 levels |
S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2. x