MARKET WRAP: Sensex gains 223 pts as banks rally; Nifty settles at 8,993

All that happened in the markets today

The benchmark indices pared gains but still managed to settle in the positive territory on Thursday amid buying in financial stocks such as ICICI Bank, HDFC Bank, HDFC, and SBI.

The S&P BSE Sensex gained 223 points or 0.73 per cent to end at 30,602.61 while NSE's benchmark index Nifty settled just shy of 9,000 level - at 8,992.80, up 67.5 points or 0.76 per cent. During the day, however, the index reclaimed the crucial level.  Volatility index, India VIX, declined 7.65 per cent to 45.9275 levels. 

In the broader market, the S&P BSE MidCap gained 1.42 per cent to end at 11,578.31, thus outperforming the benchmark indices. The S&P BSE SmallCap index rose 1.71 per cent to 10,543.65 levels. 

Sectorally, barring Nifty IT and Nifty FMCG, all the sectoral indices on the NSE ended in the green. IT stocks tumbled after Wipro posted muted numbers for the quarter ended March 31, 2020. The Nifty IT index settled around 2 per cent lower at 12,463.60 levels. 

BUZZING STOCKS

Shares of Nestle India surged 3.5 per cent and hit a new high of Rs 17,925 on the BSE with its market capitalisation crossing Rs 1.7 trillion-mark on the BSE. The fast moving consumer goods (FMCG) company surpassed its previous high of Rs 17,521 hit on April 8, 2020. The stock settled at Rs 17,873.45, up over 3 per cent. READ MORE

Shares of Biocon jumped 5 per cent to Rs 353 on the BSE after the company’s biologics manufacturing facilities in Bengaluru received the Establishment Inspection Report (EIR) from the US health regulator. It ended the day at Rs 349.85, up nearly 4 per cent. READ MORE

Shares of Larsen & Toubro (L&T) continued their northward march for the seventh straight day, up 4.5 per cent at Rs 920 on the BSE after the company said its heavy engineering arm has won ‘significant’ contracts in the January-March quarter (Q4FY20). READ MORE

Global Markets 

Europe led world stock markets back to higher ground on Thursday as tentative moves to reopen parts of the some of its larger coronavirus-hit economies offset some truly stinking global economic numbers. 

The International Monetary Fund is predicting zero growth in Asia this year for the first time in 60 years, as exporters are pounded by slumping demand and anti-virus measures force consumers to stay home and shops to shut down. Benchmark indexes in Australia, Hong Kong and Shanghai also posted falls between 0.4% and 1.3% and some emerging markets fell harder.

In the commodity market, oil prices were broadly stable on Thursday after sharp losses in the previous session, with investors hoping that a big build-up in US inventories may mean producers have little option but to deepen output cuts as the coronavirus pandemic ravages demand.

Brent crude was down 19 cents, or 0.7 per cent, at $27.50 a barrel while WTI was up 7 cents, or 0.4 per cent, at $19.94.

(With inputs from Reuters)

3:53 PM

MARKET COMMENT :: Vinod Nair, head of research at Geojit Financial Services

Markets were more circumspect today, while IT stocks were impacted due to the earnings commentary from Wipro. Wipro did not give any earnings guidance but warned of a hit on margins. The earnings for TCS, expected later today, will give a clearer picture on the impact on the IT sector and demand outlook from developed markets. Economic data across the globe remained grim and global markets also remained weak. Stock specific news and information with regards to normalization of business is expected to drive stock and sector specific action in the markets

3:52 PM

MARKET COMMENT :: Ruchit Jain, Equity Technical Analyst, Angel Broking

For the near term, 8800 is the crucial support to watch, whereas 9260-9320 is the immediate resistance zone. During such consolidation, traders should adopt a strategy to look for potential outperforming counters and take a stock specific approach.

A move beyond the above mentioned range of 8800 - 9320 could then lead to some directional move. Banking index had under-performed in this pullback move so far, which now faces an immediate resistance around 20,325. A breakout above the same is required for some quick recovery to catch up for the recent under-performance

3:48 PM

Sectoral gainers and losers on the NSE

3:45 PM

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

3:41 PM

CLOSING BELL

The S&P BSE Sensex today gained 223 points or 0.73 per cent to settle at 30,603 while Nifty ended at 8,993, down 67.5 points or 0.76 per cent.

3:24 PM

BUZZING STOCK | Jubilant FoodWorks jumps over 6.5%

3:18 PM

China central bank will continue to support smaller firms via targeted RRR cuts: Reuters reports

hina’s central bank said on Thursday it will continue to guide credit to support the real economy, especially smaller firms, via measures including targeted cuts in banks’ reserve requirement ratios (RRR) and re-lending.

 

Since early February, the central bank has unveiled a raft of measures from cutting lending rates and making cheap loans at subsidized rates to providing payment relief to firms that have been hardest hit by the coronavirus outbreak and containment measures.

A man walks past the headquarters of the PBOC in Beijing

3:09 PM

MARKET CHECK

2:59 PM

MARKET VOICE :: Shyam Sekhar on markets and economy

2:57 PM

MARKET VOICE

2:51 PM

India's economy may see first contraction in 40 years on lockdown extension

The lengthening of the mandatory stay-at-home period to 40 days from 21 days will result in a direct output loss of more than 8 per cent over that time, according to Sonal Varma of Nomura Holdings.
 

Varma and Kunal Kundu of Societe Generale GSC now predict a decline in GDP for the year to March 2021 of 0.4 per cent and 0.1 per cent, respectively. The economy had last contracted in 1980, when GDP shrank 5.2 per cent. READ MORE

2:47 PM

Heatmap: S&P BSE Sensex gainers and losers at this hour

2:43 PM

BSE500 stocks that hit 52-week low today

COMPANY	LATEST	52 WK LOW
ADITYA BIR. FAS.	140.10	139.40
GODREJ INDS.	275.60	270.00
QUESS CORP	204.35	200.80

2:38 PM

BROKERAGE VIEW:: Motilal Oswal Financial Services on Grasim

We expect RoE to be weak at ~3% over the next two years due to (a) margin pressure in both VSF and Chemicals, and (b) higher depreciation and interest cost owing to capacity addition. As a result, EPS is expected to decline over the next two years. Given GRASIM’s conglomerate business structure, we value it on SOTP basis. Our target price values (a) the standalone business (fiber, chemicals, etc.) at 6x FY22E EV/EBITDA, (b) UltraTech at 60% holding company discount to target price, and (c) other listed investments (AB Capital, Vodafone Idea, Hindalco and Aditya Birla Fashion) at 60% holding company discount to market prices. Thus, we arrive at a fair value of Rs 575. Maintain Neutral.

2:33 PM

MARKET CHECK