Stimulus for MSME, NBFCs fails to lift sentiment; Sensex tanks 886 pts
All that happened in the markets today
 "Britain votes to leave EU, Cameron quits, markets rocked")
Indian markets declined around 3 per cent on Thursday, tracking weakness in global markets after US Federal Reserve Chairman Jerome Powell warned of extended economic weakness due to the coronavirus pandemic in the world's biggest economy.
The sentiment remained weak despite a slew of announcements made by Finance Minister Nirmala Sitharaman yesterday targeting various sectors. The FM doled out measures worth Rs 5.94 trillion, focusing largely on MSMEs, NBFCs, power discoms, and real estate sector, with more such announcements to follow throughout the week.
At the close, the S&P BSE Sensex stood at 31,123, down 886 points or 2.8 per cent while Nifty ended at 9,143, down 241 points or 2.57 per cent. Volatility index, India VIX, ended over 1.50 per cent lower at 38.2350 levels.
In the broader market, the Nifty Midcap 100 index ended flat at 13,018.20, down just 0.35 per cent while the Nifty SmallCap 100 index slipped 1 per cent to settle at 3,936.20 points.
Sectorally, IT stocks took the biggest knock as the Nifty IT index declined 3.5 per cent to 13,293.70 levels. Nifty Bank lost 566 points or nearly 3 per cent to 19,068.50 levels.
Buzzing stocks
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
Godrej Consumer Products (GCPL) gained over 6 per cent on the BSE in an otherwise weak market on Thursday after 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. The result was in line with the analysts estimate. The stock ended at Rs 563.50, down around 5.4 per cent. READ MORE
Global markets
The sentiment remained weak despite a slew of announcements made by Finance Minister Nirmala Sitharaman yesterday targeting various sectors. The FM doled out measures worth Rs 5.94 trillion, focusing largely on MSMEs, NBFCs, power discoms, and real estate sector, with more such announcements to follow throughout the week.
At the close, the S&P BSE Sensex stood at 31,123, down 886 points or 2.8 per cent while Nifty ended at 9,143, down 241 points or 2.57 per cent. Volatility index, India VIX, ended over 1.50 per cent lower at 38.2350 levels.
In the broader market, the Nifty Midcap 100 index ended flat at 13,018.20, down just 0.35 per cent while the Nifty SmallCap 100 index slipped 1 per cent to settle at 3,936.20 points.
Sectorally, IT stocks took the biggest knock as the Nifty IT index declined 3.5 per cent to 13,293.70 levels. Nifty Bank lost 566 points or nearly 3 per cent to 19,068.50 levels.
Buzzing stocks
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
Godrej Consumer Products (GCPL) gained over 6 per cent on the BSE in an otherwise weak market on Thursday after 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. The result was in line with the analysts estimate. The stock ended at Rs 563.50, down around 5.4 per cent. READ MORE
Global markets
World stock markets fell for a third day running on Thursday after a sobering warning from the World Health Organization that the coronavirus may never go away.
The head of the Federal Reserve quashed talk of U.S. interest rates going negative to kickstart investment and new outbreaks of the virus in South Korea and China and some dour assessments of the global economy aroused concern too.
Asian markets had followed Wall Street lower overnight with MSCI's broadest index of Asia-Pacific shares finishing down 1.3% and Japan's heavyweight Nikkei closing 1.75% lower.
(With Reuters inputs)
4:03 PM![]()
MARKET COMMENT | S Ranganathan, Head of Research at LKP Securities
Markets traded weak throughout the day with IT stocks dragging Indices as Gartner predicts IT spend to decline 8 per cent. Automobile stocks led by Maruti staged a smart recovery even as Reliance dragged.
3:47 PM
SECTOR WATCH | Here's how sectoral indices on NSE performed today
3:44 PM
MARKET AT CLOSE | Tech Mahindra ends as the biggest loser on the S&P BSE Sensex
3:38 PM![]()
CLOSING BELL
The S&P BSE Sensex tanked 886 points or 2.77 per cent to settle at 31,123 while NSE's Nifty ended at 9,143, down 241 points or 2.57 per cent.
3:13 PM
NEWS ALERT :: Ashok Leyland board approves to Rs 500 cr via NCDs
>> Board approved the issuance of listed, Secured, Redeemable, Non-convertible Debentures (NCDs), with an aggregate amount upto Rs.300 crore with a green-shoe option of Rs.200 crore on private placement basis, in one or more tranches to certain eligible investors permitted to invest in the NCDs.
3:10 PM
MARKET UPDATE | RIL down around 4%
3:07 PM
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FM Sitharaman set to list second set of stimulus measures to boost economy
Finance Minister Nirmala Sitharaman will on Thursday announce the second set of measures that are part of a Rs 20 trillion fiscal and monetary package announced by Prime Minister Narendra Modi to support India’s economy, which has been battered by a 51-day lockdown to curb the coronavirus outbreak. Sitharaman on Wednesday announced measures of nearly Rs 5.94 trillion to provide relief to small businesses, taxpayers, shadow banks, power distribution companies, real estate, organised sector employees, and contractors working with the government. READ MORE
3:02 PM
Trend among Nifty sectoral indices remains largely negative
3:01 PM
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BROKERAGE VIEW:: Anand Rathi Shares on Blue Star
We have not revised our estimates after the FY20 results but upgrade the stock to a Buy, with a TP of Rs 626 (25x FY22e EPS of Rs 25) after the fall in the stock price. For FY20-22, we model revenue/PAT registering 12%/28% CAGRs with limited working-capital required. This can result in the RoCE expanding from 20% in FY20 to 24% in FY22. At the CMP of Rs 475, the stock trades at 25x/19x the FY21e/FY22e EPS of Rs 19.4/Rs 25.
Risks: Unseasonal rainfall and an extended winter, slowdown in pace of order inflows and in project execution.
2:57 PM
Sensex gainers and losers at this hour
2:48 PM![]()
BROKERAGE VIEW:: Morgan Stanley on Bajaj Finance
RATING: Overweight | Target Price: Rs 2,740
The near term could be volatile, but we think our implied target F22e P/B of 4.0x is justifiable: We cite its 20%+ structural ROE, high structural growth, and the quality and sustainability of its franchise. BAF has demonstrated ability to create new markets over a long period of time with above-industry profitability, great execution, and high-quality, agile, and transparent management.
The near term could be volatile, but we think our implied target F22e P/B of 4.0x is justifiable: We cite its 20%+ structural ROE, high structural growth, and the quality and sustainability of its franchise. BAF has demonstrated ability to create new markets over a long period of time with above-industry profitability, great execution, and high-quality, agile, and transparent management.
Key risk: continued constraints on economic transactions even in 2HF21 (we assume a weak 1HF21).
2:39 PM
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Bharti Infratel extends rally on heavy volumes, surges 30% in 6 days
Shares of Bharti Infratel were trading higher for the sixth straight day, up 7 per cent to Rs 209 on the BSE on Thursday on the back of heavy volumes. The stock of telecom services provider soared 30 per cent in the past six trading days, as compared to a 1.5 per cent decline in the S&P BSE Sensex. The trading volumes on the counter nearly doubled today with a combined 15.9 million shares changing hands on the NSE and BSE till 02:07 pm. READ MORE
2:29 PM
Sectoral trends on NSE at this hour
2:22 PM
Earnings Alert | Escorts Q4 net profit at Rs 127.9 crore vs Rs 116.7 cr YoY
>> Consolidated revenue at Rs 1,385.7 crore vs Rs 1,649.1 cr YoY
>> Declares dividend of Rs 2.5/share
>> Ebitda at Rs 182.1 cr vs Rs 185 YoY
>> Ebitda margin at 13.1% vs 11.2% YoY
>> Declares dividend of Rs 2.5/share
>> Ebitda at Rs 182.1 cr vs Rs 185 YoY
>> Ebitda margin at 13.1% vs 11.2% YoY
2:19 PM![]()
BROKERAGE VIEW:: ICICI Securities on MSIL
MSIL has retained its market leadership with 51% market share in passenger vehicle category (FY20). It also possesses healthy B/S with net cash on books > ~| 35,000 crore with core average RoIC placed at healthy ~22%. Prevailing valuations, however, provide little comfort with MSIL currently trading at ~26x P/E on FY22E numbers. Hence, we downgrade the stock to REDUCE valuing MSIL at Rs 4,650 i.e. 24x P/E on FY22E EPS of Rs194.4.
Topics : Coronavirus Markets Nirmal Sitharaman MARKET WRAP
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First Published: May 14 2020 | 7:39 AM IST
