Stimulus for MSME, NBFCs fails to lift sentiment; Sensex tanks 886 pts

All that happened in the markets today

11:24 AM

NEWS ALERT :: Govt's economic package may have fiscal impact of 0.6% of GDP, says SBI Research

>> The Government has announced a cumulative package of Rs 20 lakh crore (nearly 10% of GDP) to provide relief to various segments of the economy. This includes Rs 1.7 lakh crore of fiscal stimulus announced in the first phase, Rs 5.6 lakh crore stimulus provided through various monetary policy measures and Rs 5.94 lakh crore through the second phase, implying Rs 6.70 lakh crore package still to be announced.

>> The cumulative actual fiscal impact is only around Rs 1.14 lakh crores /0.6% of GDP. 

11:16 AM

Coronavirus impact: Nestle Q1 an outlier as consumers focus on food

Nestlé India recorded a better-than-expected performance during the March 2020 quarter (Q1), thanks to its large food portfolio that falls under essentials. This was despite most firms being hit by the disruption due to Covid-19. The owner of brands such as Maggi, Nescafé and KitKat follows a January-December calendar. READ MORE

11:09 AM

MARKET VOICE :: Jaspal Bindra, Executive Chairman, Centrum Group

The first set of announcements by the FM address both demand and supply side concerns, along with providing a shot in the arm for MSMEs. Measures towards reduction in TDS, additional Provident Fund contributions by the Government, put more money in the hands of the common man, thereby addressing the demand side. However, the larger beneficiary are MSMEs. Re-classifying their capital and turnover thresholds, will ensure that they continue to be eligible for benefits for a longer period. In addition, getting collateral free, credit guaranteed finance, will help restart their growth trajectory and address working capital concerns. This along with the new guidelines to give preference to domestic MSMEs for Government procurement will ensure a steady demand for their products / services. The NBFC, HFC and MFI sectors, which are facing a liquidity crunch, didn’t get most of the intended relief through the TLTRO measures. However, the proposed liquidity infusion through investments in their Debt papers along with the partial credit guarantee scheme is another path to respite

11:03 AM

IOL Chemicals extends rally in a weak market, zooms 124% since April

In past 12 trading days, IOL Chemicals & Pharmaceuticals has rallied 43 per cent after the company said it was recognized as a 'Three Star Export House' by the Ministry of Commerce & Industry, Government of India. This will facilitate the company to expand its product portfolio in the foreign market.

 

IOL is one of the leading APIs/ bulk drugs company and is a significant player in the specialty chemicals space with world-class facilities. IOL has wide presence across major therapeutic categories like, pain management, anti-convulsants, anti-diabetes, anti- cholesterol and anti-platelets. READ MORE

10:57 AM

Godrej Consumer gains 6% despite 75% drop in March quarter net profit

Shares of Godrej Consumer Products (GCPL) gained over 6 per cent on the BSE in an otherwise weak market on Thursday even as its consolidated net profit for the quarter ended March 2020 decined 75.4 per cent year-on-year (YoY) to Rs 229.90 crore. The company had logged a profit of Rs 935.24 crore in the year-ago period. READ MORE

10:53 AM

MARKET CHECK

10:46 AM

Stimulus will keep NBFCs and MFIs afloat, but won't be able to revive them

While these announcements are enough are keep NBFCs, and micro finance institutions (MFIs) afloat in the current environment where working capital is drying up, it won’t revive the sector per se. Those NBFCs, who were unable to make repayments currently or need immediate cash to survive, would benefit from the announcements but we need to see contours of all the announcements before taking the final call. READ MORE

10:40 AM

FM targeted liquidity issues; sustained upturn in market will take time

The biggest concern for the Indian government in providing substantial fiscal stimulus seems to be the fear of a downgrade of sovereign rating to a junk category given our high debt-to-GDP and low tax-to GDP-ratios. On the other hand, not providing any significant or effective stimulus will do more harm than good amid the Covid-19 pandemic. READ MORE

10:35 AM

NEWS ALERT :: FM Nirmala Sitharaman to hold press conference at 4 pm today

10:32 AM

Lockdown impact: Weak volumes to aggravate margin pressures for Maruti

Maruti Suzuki’s March quarter (Q4FY20) show was dented by muted volumes and higher discounts. While the automaker reported average volumes of 150,000 units in January and February, the lockdown and subsequent production cut led to a 44 per cent dip in March volumes, compared to the average. READ MORE

10:25 AM

Syngene International gains 5% on healthy March quarter results

Shares of Syngene International were up 5 per cent at Rs 342 on the BSE on Thursday after the company reported a healthy 24 per cent year on year (YoY) growth in Ebitda (earnings before interest, taxes, depreciation and amortization) at Rs 225 crore in the March quarter of FY20 (Q4FY20). Ebitda margin, too, expanded by 300 basis points to 36 per cent from 33 per cent in year ago quarter. READ MORE

10:20 AM

NEWS ALERT | All tickets booked for regular passenger trains for travel on or before June 30 cancelled: PTI

10:12 AM

SECTOR WATCH:: Nifty FMCG index turns green in an otherwise weak market

10:05 AM

Rupee opening

Rupee opens weaker at 75.58/$ vs Wednesday's close of 75.47 against the US dollar

9:58 AM

Power stocks rally on FM's Rs 90,000 crore liquidity boost for discoms

Shares of electric utilities and power finance companies rallied up to 10 per cent on the BSE on Thursday after Finance Minister Nirmala Sitharaman announced a special liquidity infusion scheme for the ailing power distribution sector, through which it is looking to infuse around Rs 90,000 crore in the distribution companies (discoms). READ MORE