MARKET WRAP: Sensex surges 1,266 pts, Nifty ends at 9,112; auto stocks jump

All that happened in the markets today.

11:44 AM

NEWS ALERT :: CPI inflation is tentatively projected to ease from 4.8% in Q1:2020-21 to 4.4% in Q2: RBI

>> Inflation expected to further ease to 2.7 per cent in Q3 and 2.4 per cent in Q4

>> RBI expects the prevailing high uncertainty, aggregate demand may weaken further than currently anticipated and ease core inflation further, while supply bottlenecks could exacerbate pressures more than expected. 

11:42 AM

NEWS ALERT :: CPI inflation to ease from 6.6% in February 2020 to 5.3% in Q1FY21: RBI

11:40 AM

NEWS ALERT :: RBI expects crude oil prices (Indian basket) to average around US$ 35 per barrel during 2020-21

11:39 AM

NEWS ALERT :: The impact of COVID-19 on inflation is ambiguous relative to that on growth: RBI

11:37 AM

NEWS ALERT :: COVID-19 would impact economic activity in India directly through domestic lockdown: RBI

>> Second round effects would operate through a severe slowdown in global trade and growth

>> More immediately, spillovers are being transmitted through finance and confidence channels to domestic financial markets

11:35 AM

NEWS ALERT :: Global output is seen contracting in 2020 due to Covid-19: RBI

11:28 AM

Cipla, Biocon, Divi's Lab: Pharma stocks to bet on in the current market

NIFTY PHARMA: The index witnessed a tremendous rally in the last four sessions - up over 20 per cent. A formation of “Inverse Head and Shoulder” pattern may be seen on the daily chart. Broadly, if the index manages to close strongly above 9,000 levels, which is its resistance level, then it may see further upside towards 9,400 and 9,700 levels. The immediate support comes in at 8,550 and 8,200 levels. READ MORE

11:20 AM

NEWS ALERT :: Zydus receives final approval from US FDA for Imatinib Mesylate tablets: BSE filing

>> Zydus Cadila has received final approval from the USFDA to market Imatinib Mesylate Tablets, 100 mg and 400 mg. (US RLD: Gleevec® Tablets)

>> This medication is used to treat certain types of leukemia (blood cancer), bone marrow disorders, skin cancer and tumors of the stomach and digestive system.
 

11:14 AM

Defying gravity :: Radhakishan Damani beats coronavirus crisis as net worth soars 11%

The net worth of Radhakishan Damani, who controls Avenue Supermarts, has surged almost 11 per cent this year to $10.7 billion, singling him out as the billionaire with most gains among the 12 richest Indians whose wealth is tracked by the Bloomberg Billionaires Index.

 

Shares of Avenue Supermarts, which contribute nearly all of the wealth to Damani’s net worth, have advanced 24 per cent this year. READ MORE

11:07 AM

COVID-19 IMPACT :: Japan's economy faces 'extremely high' uncertainty

Japan recorded 503 new coronavirus infections on Wednesday - its biggest daily increase since the start of the pandemic. Even as a state of emergency took effect, underscoring the difficulty authorities have in trying to contain the outbreak without imposing a sweeping, mandatory lockdown on the population. READ MORE

10:57 AM

MARKET UPDATE:: Sensex climbs off day's high

10:49 AM

Rupee at fresh record low

(Source: Bloomberg)

10:40 AM

Gold-backed ETFs see $23 billion inflow during March 2020 quarter: WGC

“During the past year, gold ETFs added 659 tonnes, the highest on a rolling annual basis since the financial crisis, with assets under management (AUM) growing 57 per cent over the same period,” WGC said.

 

The sharp rise, according to the WGC, was triggered by a flight to safety amid the coronavirus (Covid-19) pandemic that hit world economy hard, plunged most global equity markets into a bear phase and increased the hunt for safe-haven assets, such as Treasuries and gold. READ MORE

10:34 AM

BROKERAGE VIEW:: JM Financial on Cummins India

Rating: BUY | Target Price: 440

 

Cummins India (KKC)’s share price has corrected over 55% from its 1-year peak over several concerns regarding a demand slump owing to a weak capex cycle, its diesel gensets losing edge over batteries and its parent’s 100% owned subsidiary in India. However, we believe these concerns are overblown and ignore KKC’s strong fundamentals. We upgrade to BUY as we expect a) technology leadership to aid market share gains after CPCB4+ norms, b) a change in sales mix to provide a cushion against cyclicality in capex spends, c) stringent cost controls and VRS scheme to protect margins and d) strong cash generation profile and high dividend yield (5.2%). The stock is trading at 14x FY22E EV/EBTIDA multiple, a 35% discount to its LT median. In our view, the implied EVE for the core business stands at 6.5x FY22E if we strip out value of other businesses, non-operating income and cash balance, which significantly understates the product life. Our SOTP-based TP stands at Rs 440, as we value the standalone business at 15x FY22E EVE (30% discount to LT median), other JVs at 12x FY22E PE, investment property at 0.8x fair value estimate and cash+liquid investments at BV.

10:33 AM

Chart Check: Key sell signals you should be aware of while trading

One needs to examine several elements in order to determine a negative reversal, or a 'sell signal', for a stock or index. The most relevant is the price movement, followed by price indicators like candlestick patterns, chart formations, moving averages, trend line, gap up or gap down, etc. Apart from the above-mentioned instruments, technical indicators like Relativem Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Stochastic also assist in identifying the trend reversal. Volume plays a crucial role in acknowledging the change in momentum. READ MORE