MARKET WRAP: Sensex up 371 pts as financials surge; IndusInd Bank zooms 17%

All that happened in the markets today

2:10 PM

Retiree investors in wound-up Franklin schemes fret over repayment timeline

According to sources, about 300,000 investors are exposed to the various schemes that Franklin Templeton MF wound up recently.

 

Franklin Templeton MF’s management has assured investors that the funds will be paid in a staggered manner, but the latter remain concerned over the timelines. READ MORE

2:07 PM

Rupee closing

Rupee ends higher at 76.19/$ vs Monday's close of 76.24 against the US dollar

2:00 PM

Contribution to the S&P BSE Sensex's gain today

1:47 PM

MARKET CHECK

1:36 PM

NEWS ALERT | 'BOLT Plus' trading system modified to execute commodity trades at negative rates: says BSE

>> other existing versions of trading systems to now support trading at negative rates: BSE

(as reported by CNBC-TV18)

1:27 PM

BROKERAGE VIEW:: HDFC Securities on Sadbhav Engineering

Sadbhav Engineering Ltd (SEL) has announced a management rejig with Mr Vasistha Patel (VP) being appointed as CEO and Mr Shashin Patel stepping down as Chairman and MD to Vice Chairman in non executive capacity. We perceive this as a positive step with VP getting iron hand on execution and promoter SP dissociating himself from day to day run. SEL BS has deleveraged post the SIPL deal and now VP has immediate challenge of ramping up execution against the COVID-19 headwinds. We maintain BUY with SOTP of Rs 56/sh.

1:20 PM

Franklin fiasco: The logjam of risk aversion

Given the quality of assets and their current illiquidity, it is unlikely that people will recover the fund’s stated net asset value (NAV). After having successfully created a huge market for non-AAA corporate debt, Franklin Templeton has now marked the death knell for credit risk funds in India. We must brace ourselves for a slew of redemptions at credit funds, as investors are spooked and fear other fund houses may also close shop. Many of these funds are down 15-25 per cent in value terms currently. READ MORE

1:08 PM

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

12:58 PM

NEWS ALERT | TVS Motor approves issuing NCDs of up to Rs 500 cr on private placement basis: BSE filing

12:54 PM

IEX plans to acquire 15% stake in Reliance ADAG platform ICEX

The sources said talks between the two are in an advanced stage but the closing of the deal could take some time because of regulatory hurdles. The IEX is not yet recognised as a stock exchange and, hence under the current law, it can only pick a 5 per cent stake in the ICEX. READ MORE

12:47 PM

BROKERAGE VIEW:: Edelweiss Securities on HDFC Life

HDFC Life reported mere 1% YoY growth in NBP in Q4FY20. Market share, however, improved 170bps to 14.2% in FY20 (individual WRP basis) as it outperformed the broader industry; under growing pressure on ULIP segment due to national lockdown and fairly weak equity sentiments. Apart from marginal shift from non-par to par and annuity products, business mix remained fairly stable QoQ. The company reported VNB margin of 25.9%, up 130bps YoY, but down 70bps QoQ. Persistency ratios remained stable with slight improvement in a few buckets QoQ. However, maintaining these ratios will pose a significant challenge, especially in the ULIP segment, with expected heightening capital market apathy amongst customers. The company’s disclosure of the Milliman report on non-par savings products builds incremental confidence on interest rate risks. Our target multiple of 3.5x FY22E P/EV continues to include a 10% premium for the inherent value creation opportunities not captured by HDFC Life’s current core. Maintain ‘HOLD’ with TP of Rs 470.

12:44 PM

BROKERAGE VIEW:: Edelweiss Securities on CRISIL

While ratings growth is strong and research turned around, we await visibility of new issuances in the domestic bond market and trend in the global research pool. Valuations at 29.4x CY21E remain rich. Maintain ‘REDUCE’ with revised TP of Rs 1,102 based on DCF (6% risk free rate and risk premium rate each) (Rs 1,138 earlier)

12:43 PM

EXPERT COMMENT | Kunal Shah, Analyst, YES Securities on Ambuja Cements

Although volumes were in-line with expectations, sturdy pricing in North and Gujarat markets combined with lower than expected variable costs led to a beat on EBITDA.

 

For future outlook: Concentrated exposure in price favorable North and Gujarat markets coupled with cash pile on balance sheet (~Rs 46 bn) and reasonable valuations will garner investor interest in current scenario.

12:33 PM

Chemical shares in focus; Aarti Industries, Vinati Organics surge over 9%

Shares of chemicals companies, mainly specialty and commodity, were in focus in an otherwise range-bound market on Tuesday on hopes of strong earnings for March quarter (Q4FY20) as brokerages expect the disruptions caused by Covid-19 to have been limited to the last few days of the quarter. After securing the supply chain, logistics and mandatory compliance requirements, the chemicals companies have resumed operations at their manufacturing units since the first half of April. READ MORE

12:26 PM

Franklin fiasco: Gilt funds emerge as star in troubled debt MF pack

Amid the turmoil in the debt mutual fund space, the 10-year government bonds (gilt) segment has emerged as the ace in the pack. Sharper-than-expected rate cuts and liquidity measures by the RBI have helped the category deliver best returns in over a decade. READ MORE