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Barometers trade with decent gains; breadth negative

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Capital Market
Last Updated : Apr 22 2020 | 11:04 AM IST
Benchmarks traded with decent gains in morning trade, supported by firmness in Reliance Industries (RIL). At 10:28 IST, the barometer index, the S&P BSE Sensex, was up 140.44 points or 0.46% at 30,777.15. The Nifty 50 index was up 17 points or 0.19% at 8,998.45.

In the broader market, the S&P BSE Mid-Cap index and S&P BSE Small-Cap index were down 0.56%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 716 shares rose and 1056 shares fell. A total of 106 shares were unchanged. In Nifty 50 index, 22 stocks advanced while 28 stocks declined.

Buzzing Index:

The Nifty Pharma index gained 1.09% to 9,483.90. The index has gained 3.66% in two sessions.

Aurobindo Pharma (up 4.38%), Glenmark Pharmaceuticals (up 3.68%), Granules (up 2.29%) Lupin (up 1.7%), Sun Pharmaceutical Inds (up 1.45%), Dr. Reddy's Laboratories (up 1.33%), Cipla (up 0.94%) and Biocon (up 0.71%) were top gainers in pharmaceutical space.

Earnings Impact:

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GTPL Hathway was locked in a lower circuit of 10% at Rs 52.65 after the company reported a consolidated net loss of Rs 13.63 crore in Q4 March 2020 as against a consolidated net loss of Rs 27.68 crore in Q4 March 2019. Net sales soared 103.3% year on year to Rs 655.65 crore in Q4 March 2020.

Den Networks jumped 4.23% to Rs 40.7 after the company announced a consolidated net profit of Rs 24.66 crore in Q4 March 2020 as against a consolidated loss of Rs 186.39 crore in Q4 March 2019. Net sales surged 20% to Rs 327.80 crore in Q4 March 2020 as compared to Rs 273.11 crore posted in the same period last year.

Cement major ACC fell 0.67% to Rs 1128.75. The company's consolidated net profit declined 6.6% to Rs 323 crore on 10.8% decline in net sales to Rs 3,433.02 crore in Q1 March 2020 over Q1 March 2019. Consolidated EBITDA rose 10% to Rs 586 crore in Q1 March 2020 as compared to Rs 532 crore reported in Q1 March 2019. EBITDA margin stood at 17.1% in Q1 March 2020, higher than 13.8% in Q1 March 2019, despite the impact of COVID-19 lock down in March 2020. The result was announced after market hours on Tuesday, 21 April 2020.

Stocks in Spotlight:

Reliance Industries (RIL) jumped 6.21% after the company announced the signing of binding agreements with Facebook for an investment of Rs 43,574 crore into Jio Platforms. This investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of ₹ 70 to a US Dollar). Facebook's investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis

HDFC was down 0.19%. The company reduced its Retail Prime Lending Rate (RPLR) on housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 15 basis points, with effect from 22 April 2020. The change will benefit all existing HDFC retail home loan customers. The announcement was made after market hours yesterday, 21 April 2020.

Larsen & Toubro (L&T) added 0.72% to Rs 876.95 after the construction major has secured a 'significant' contract to construct a Technology Park in Trivandrum and a resort complex in Goa. As per the L&T's classification, the valuation of the 'significant' order stands between Rs 1,000 crore and 2,500 crore

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First Published: Apr 22 2020 | 10:29 AM IST

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