Sensex gains 879 pts as lockdown measures ease, Nifty PSU Bank jumps 7.6%

All that happened in the markets today

12:37 PM

Any crisis throws up undervalued stocks

In mid-April, the website Capitalmind.in ran an exercise that tried to identify value in midcaps. This focussed on the 150 constituents of the Nifty Midcap 150 Index. At that point of time, the index had already plunged from the heights of 6,800-plus to a low of about 4,100 and started a recovery. READ MORE

12:28 PM

NEWS ALERT | Axis Bank cuts savings account deposit rates by 25 bps

12:20 PM

MARKET UPDATE | Top 5 gainers on the BSE at this hour

12:12 PM

MARKET UPDATE:: Nifty reclaims 9,900

12:02 PM

Vodafone Idea, Britannia: Stocks of MNCs zoom up to 100% in two months

Over the past two months, stocks of multinational companies (MNCs) have outrun the broader markets by gaining up to 100 per cent. The Nifty MNC index has gained 29 per cent from its March lows, as against 26 per cent rise in the Nifty 50 index till Friday. Even on a year-to-date (YTD) basis, the fall in the Nifty MNC index at 9.4 per cent is less than the Nifty50 index, which slipped 21.3 per cent during this period. READ MORE

11:54 AM

UPDATE:: ATF prices in metros

11:40 AM

Top gainers on BSE today

COMPANY	PRICE(rs)	CHG(%)
IDBI BANK	24.35	19.95
IFCI	5.67	19.87
SHOPPERS ST.	162.05	18.85
NCC	26.25	14.13
CHALET HOTELS	114.10	13.31

11:39 AM

NEWS ALERT | ICICI Bank cuts lending rates by 5 bps across all tenures: CNCBC TV18

11:27 AM

Modi to chair Cabinet meeting shortly; CCEA meeting at PM's residence

A meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi, will begin shortly. It will be the first Cabinet meeting after the Central government entered into its second year of office. The Cabinet Committee on Economic Affairs (CCEA) meeting will also be held today at the Prime Minister's residence at 7 Lok Kalyan Marg in New Delhi.

11:25 AM

Most active stocks by volume

COMPANY	PRICE(rs)	CHG(%)
VODAFONE IDEA	6.52	-0.61
SUZLON ENERGY	2.97	4.95
RELIANCE POWER	2.04	3.55
DISH TV	4.49	4.91
NCC	26.20	13.91

11:15 AM

BROKERAGE VIEW:: Emkay Global Financial Services on Power Sector

• Power demand subdued in May: Power generation declined 23.6% yoy to 91.0bn units in April’20 as peak demand fell 25% yoy during the lockdown in the country in the wake of Covid-19. Generation is expected to drop 23.5% yoy in May’20 as well.
• Plant load factor: PLF declined significantly across the coal segment in April’20 (-1991bps yoy to 41.8%, lowest ever) and hydro (-446bps yoy to 28.9%) due to a fall in demand. However, PLFs improved across the gas segment (+404bps yoy to 27.5%) so as to maintain grid stability and nuclear plants (+1732bps yoy to 83.7%) due to better fuel availability in April’20. PLFs in May’20 is expected to remain subdued across thermal and hydro segments amid low industrial and commercial activities during lockdowns.
• Spot rates low during peak season: Base and power deficits remained low at 0.4% and 0.5%, respectively, in April’20. Merchant rates were down by 25.0% yoy to Rs2.4/kWh in April’20, but improved marginally to Rs2.6/kWh in May’20 due to a marginal recovery in power demand due to a rise in temperature and some relaxation in the lockdown.
• EAP position: We continue to prefer regulated entities such as NTPC, PGCIL, GIPCL and NHPC due to their attractive valuations. Even after the one-time impact of discounts to be provided to discoms, the business model of these firms remains intact as the government has maintained the tariff structure and RoE will continue to be determined on PAF.

11:12 AM

BROKERAGE VIEW:: YES Securities on Dilip Buildcon

Rating: ADD | Target: Rs 296 | Upside 14%

Operating margin is likely to stay at ~17% levels. The effective tax rate is expected to be at 30‐32% levels during FY21. We expect the working capital to be comfortable with better receivables and inventory management.

Valuation: We believe near term growth would be impacted by significant loss of execution during April and May’20. Also, the Company would need to win some projects in quick time to deliver growth beyond FY21. We assign a ADD rating on the stock for target of Rs.296 (based on SOTP valuation).

11:09 AM

BROKERAGE VIEW:: Prabhudas Lilladher on Jubilant Life Sciences

Rating: HOLD | CMP: Rs 445 | TP: Rs 414

Due to better operating leverage and increase revenue from Drug discovery segment we increase our earnings estimate by 36% for FY21E and 26% for FY22E and derive our new TP of Rs 414 (from Rs 363) based on SOTP-valuation. We maintained 4x (EV/EBITDA) of pharma business and 3x (EV/EBITDA) of commoditized LSI business. However, strong appreciation of USD, JUBILANT’s net debt/ equity ratio of 1.6x continues to be an overhang in its valuation and we maintain "Hold."

11:06 AM

BROKERAGE VIEW:: JM Financial on SBI

We are upgrading SBI to BUY given steep fall in share price which we believe is driven more by overall macro concerns than underlying fundamentals of the stock. Core-bank valuations have corrected sharply and trades at close to possibly its lowest ever valuation range (at 0.29x /0.28x FY21E/FY22E BVPS, considering a 20% holdco discount for listed subs). Our sensitivity analysis reveals that even if overall slippage ratio of the bank jumps to ~4-6% (assuming 10- 20% slippage from moratorium loans), SBI’s CET1 levels would still be at 7.5-9.1% which will potentially require capital raise of Rs 350bn in scenario of 20% slippages from morat book (nil in case of 10% slippages). This can be partially fulfilled by stake sale in listed subs (even 5% sale in SBI Life and 10% sale in SBI Cards each at 10% lower than CMP will raise Rs 72bn). SBI’s liability franchise remains unparalleled and recent deposit rate cuts indicate cushion to margins (though excess liquidity could create near-term pressures). We believe SBI stock performance is considered more of a proxy to the India macro environment (which is currently through going one of its toughest phases) and hence any semblance of normalcy (as lockdowns ease) could see reflecting in greater valuations for SBI. We value banking business at undemanding 0.5x FY22E BVPS and arrive at SOTP-based target price of Rs 220.

11:04 AM

BROKERAGE VIEW:: Anand Rathi Shares on KEC International

Despite the partial lockdown in March (Rs 5bn-6bn revenue loss), KEC witnessed decent performance with strong execution in the Railways and Civil. Other key segments, T&D and Cables, were weak, resulting in revenue down 4.4% y/y. With a Rs 200bn order book and nearly Rs 40bn in L1, management is upbeat about FY21 revenue growth if matters improve. With lower debt and softening interest rates, management talked of lower interest expenses, at 2.3-2.4% of sales for FY21/22. We have raised our estimates mainly due to lower interest rates for FY21/22 and maintain a Buy, with a higher TP of Rs 256 (12x FY22e), earlier Rs 231.