MARKET WRAP: Sensex up 371 pts as financials surge; IndusInd Bank zooms 17%

All that happened in the markets today

Sharp rally in financial stocks due to better-than-expected March quarter results (Q4FY20) of IndusInd Bank and Axis Bank-Max Financial deal, helped benchmark indices end over 1 per cent higher on Tuesday. 

Private-sector lender Axis Bank said it would acquire an additional 29 per cent stake in Max Life Insurance, raising its total stake in the private life insurer to 30 per cent after the completion of the deal. The lender is also slated to release its March quarter numbers later in the day. READ MORE

The S&P BSE Sensex gained over 371 points or 1 per cent to settle at 32,114.52, with IndusInd Bank (up nearly 17 per cent) being the top gainer. HDFC, ICICI Bank, and Axis Bank were among the major contributors to the index's gains. On the flip side, FMCG major Hindustan Unilever (HUL), and Sun Pharma were the top drags. 

On the NSE, the benchmark Nifty ended at 9,380.90, up 99 points or 1 per cent. Volatility index India VIX declined 7.6 per cent to 35.14 levels. 

Buzzing stocks

Among individual stocks, shares of IndusInd Bank surged 18.05 per cent intra-day, to hit a high of Rs 480.9, on the BSE after brokerages maintained 'buy' call on the stock due to its better-than-expected operationally strong March quarter performance. The stock eventually ended at Rs 468.90, up 15 per cent. On the NSE, it ended at Rs 476.95, up 17 per cent. 

Shares of Max Financial Services and Axis Bank traded higher after the private sector lender said it would acquire an additional 29 per cent stake in Max Life Insurance. Max Financial Services, Max Life's parent company, will hold the remaining 70 per cent in the joint venture. At close, Max Financial Services stood at Rs 475.80, up over 5 per cent while Axis Bank ended over 6.6 per cent higher at Rs 455.55 apiece on the BSE. READ MORE

Shares of Just Dial rallied over 11 per cent to Rs 388 on the BSE after the company announced that it will consider share buyback proposal on Thursday. READ MORE   

On the sectoral front, Nifty Private Bank index gained the most - up 3.56 per cent to 11,243.55 levels while Nifty Pharma fell the most - down over 2 per cent to 9,386.20 levels. 

In the broader market, the S&P BSE MidCap index gained 0.8 per cent to 11,723 while the S&P BSE SmallCap index ended at 10,862.54, up 0.77 per cent. 

Global Markets

Oil prices plunged for a second day in a row on Tuesday on concerns about dwindling global capacity to store more crude and fears that demand may be slow to recover even after countries ease restrictions to combat the coronavirus pandemic.

Brent crude fell 83 cents, or 4.1 per cent, to $19.16 a barrel at the time of writing of this report, following a 6.8 per cent slide on Monday.

US West Texas Intermediate (WTI) crude was down $2.57, or 20 per cent, at $10.21 a barrel. The contract plunged 25 per cent on Monday.

In stock markets, European shares hovered near two-week highs as a slate of strong earnings reports from companies, including Novartis and UBS, outweighed a slump in oil prices and shares of Wirecard.

In Asia, China’s blue-chip and start-up shares inched up after fresh regulatory reform cheered the market, but the main Shanghai benchmark slipped as big banks lined up their earnings following a tumultuous first quarter. Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.4 per cent, while Japan’s Nikkei index closed down 0.1 per cent.

(With inputs from Reuters)

4:05 PM

Technical view by Nagaraj Shetti - Technical Analyst, HDFC Securities

After showing range bound movement in the last couple of session, Nifty witnessed a fine upside bounce on Tuesday in the later half and closed the day higher by 1.06%. A small body of positive candle was formed on Tuesday with lower shadow, which indicates a buy on dips opportunity in the market. The sharp lower levels buying has emerged on Tuesday, post sell on rise action in previous few occasions. This is positive indication.

 

The rising wedge pattern is now getting closer with small high low range movement in Nifty. The market is currently placed near the upside breakout of the said wedge around 9500. Hence a sustainable move above 9500 could have a sharp positive impact on the market ahead.

 

The short term trend of Nifty is positive and one may expect further upside of 9480-9500 levels in the coming sessions. Immediate support is placed at 9260.

4:03 PM

MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial Services

"Benchmark indices ended positive tracking global markets, led by financials. Hopes of a fiscal stimulus have given support to the markets. Stock specific news reactions are happening based on the results and management commentary. The sustainability of this rally depends on the easing of lockdown measures and the measures to get businesses back on track."

3:51 PM

Sectoral gainers and losers on the NSE

3:48 PM

MARKET AT CLOSE | Top gainers and losers on the S&P BSE Sensex

3:36 PM

CLOSING BELL

The S&P BSE Sensex rose over 371 points or 1 per cent to 32,114.52 while NSE's Nifty50 ended at 9,381, up 99 points or 1 per cent. 

3:24 PM

STOCK ALERT :: IndusInd Bank hits 15% upper circuit

3:18 PM

MARKET UPDATE | India VIX declines over 7%

3:09 PM

Banks borrow Rs 2,000 crore from RBI under mutual fund liquidity window

Banks have borrowed Rs 2,000 crore under the liquidity window opened for mutual funds on Monday, data released by the Reserve Bank of India (RBI) on Tuesday showed. The special repo window, under which banks can borrow up to 90 days to give loans or buy debt papers of mutual funds, remains open till May 11. The total amount banks can borrow is Rs 50,000 crore. READ MORE

3:09 PM

BREAKING NEWS :: ADB approves $150 cr loan to India to fight Covid-19

>> ADB is fully committed to supporting the Government of India in its response to this unprecedented challenge, said ADB President Masatsugu Asakawa.

>> The fund includes support for immediate priorities such as disease containment and prevention, as well as social protection for the poor and economically vulnerable sections of the society, especially women and disadvantaged groups.

Alert: ADB is Asian Development Bank

3:00 PM

MARKET CHECK | Top 5 losers on the BSE at this hour

2:48 PM

BROKERAGE VIEW:: Centrum Broking on Adani Ports and SEZ

APSEZ has a strong portfolio of cash generating assets which offer scalability and sustained growth potential. Given its cargo stickiness with 60% contracted cargo, APSEZ is partly safeguarded from near term Covid-19 disruption and is well placed to capitalize when the growth recovers. With sustained realizations and margins and contribution from new assets, we expect the port EBITDA to grow at 15.8% CAGR over FY20-22E.  There is a sustained effort to unwind related party exposures by utilising proceeds from monetisation of investments in Group companies. We value APSEZ on SOTP basis valuing the ports and logistics businesses at 10x FY22E EBITDA. We have a Buy recommendation on the stock with a SOTP-based target price of Rs 390.

2:39 PM

MAX FINANCE CONFERENCE CALL | Will file for merger within 12-18 months from now

-- Have cleared all possible roadblocks for the merger before committing; do not anticipate any challenges with the merger

-- Mitsui will be payng Rs 840 cr for its residual 4.9 per cent stake
 

-- Expect the transaction to be completed in current calendar year

-- Partnership is with the intent to merge the company with Axis Bank

-- Combination of Axis Bank and Max Life will put the JV in a different orbit

-- See no reason for the put option to be exercised

(as reported by CNBC TV18)

2:38 PM

India's rating could come under pressure if fiscal outlook worsens: Fitch

"The assessment of India's rating in such a case would be guided by our judgement of its probable medium-term fiscal path in the post-crisis environment," it said. Further deterioration in the fiscal outlook as a result of lower growth or fiscal easing could pressure the sovereign rating in light of the limited fiscal headroom India had when it entered this crisis, the statement added. READ MORE

2:26 PM

Max Financial, Axis Bank gain up to 6% on Max Life Insurance deal

At 01:53 pm, Max Financial Services was up 6 per cent at Rs 478 on the back of an over two-fold jump in trading volumes. The stock hit an intra-day high of Rs 492 after recovering 14 per cent from its early morning low of Rs 430 on the BSE. Around 11 million shares have changed hands on the counter on the NSE and BSE so far.

 

Shares of Axis Bank were trading 5 per cent higher at Rs 449, after hitting an intra-day high of Rs 451 on the BSE. In comparison, the S&P BSE Sensex was up 0.78 per cent or 246 points at 31,990 at 1:50 PM. READ MORE

2:18 PM

Airtel signs $1 billion deal with Nokia to improve 4G network experience

Bharti Airtel has signed a multi-year deal with Nokia to deploy the Finnish company's network solutions across nine circles in India. According to industry analysts, the deal could be worth $1 billion. READ MORE