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

All that happened in the markets today

12:14 PM

RIL to consider rights issue, announce Q4 nos on April 30. What to expect?

"RIL may be worried about the time of the completion of the two mega-deals that it has announced in the last 7-8 months (Saudi Aramco deal and Facebook deal), and their debt-reduction plan could be delayed; hence, rights issue could be an ideal option for them to fund their capex and cut debt given that the hitherto cash cow of Oil & Gas and Petrochem businesses may face tough times for a few months," opines Deepak Jasani, Head of Research at HDFC securities. READ MORE

12:07 PM

NEWS ALERT | FMCG cos in talks with JioMart for 3-4 mths for distribution tie-up: sources to CNBC TV18

>> Smaller FMCG cos with weaker distribution may benefit by JioMart Model while larger FMCG cos with strong distribution may be selective w.r.t brand & sku listing on JioMart

>> FMCG cos loking at innovative cost structure, select portfilio to list via JioMart

>> FMCG cos to take decision on product scope depending on demand

>> FMCG cos want to keep all distribution channels engaged

>> FMCG cos expect decline in revenue from modern trade if there is large scale digitisation of Kiranas

11:58 AM

BROKERAGE VIEW:: Emkay Global Fin Services on IndusInd Bank

TP: Rs 550 | Rating: BUY | Upside: 37.5 %

• Despite higher PPoP led by strong NIMs, IIB reported lower PAT at Rs3bn due to higher Covid-19-related provisions (Rs2.8bn) and NPA provisions in the quest to improve PCR >60%. It also made initial telecom provision of Rs0.75bn (8% on FB Voda-Idea exposure)
• After a sharp 7% qoq run-down in Q4, the bank has accelerated deposit mobilization (Rs60bn till date). IIB will unveil PC5 (2020-25) business strategy in Q1 with the focus on retailization of credit/deposits and earnings sustainability by building a higher PCR buffer.
• As per the stress testing, the bank guides for 80bps jump in GNPA ratio and LLP to 175bps (50bps over BAU LLP of 125bps in FY20) due to Covid-19. We prefer to build higher LLP at 250bps/160bps in FY21/22E as the extended lockdown may lead to higher impairments in retail/corporate book and thus, we expect lower RoAs at 1.4-1.6% over FY21/22E.
• The bank’s near-term performance will track its ability to manage Covid-19-led disruptions on its growth/asset quality. Maintain Buy, with a revised TP of Rs550 (implying 0.9x FY22 ABV) mainly due to its lower valuations and healthy capital position.

11:52 AM

BROKERAGE VIEW:: HDFC Securities on Ambuja Cements

Ambuja reported a healthy 1QCY20 standalone result. While Rev declined 3% YoY to Rs 28.3bn (on sales loss in late Mar, led by nationwide lockdown to curb Covid-19 impact), robust realisation and flat opex drove EBITDA/APAT up by 30/6% YoY to Rs 6.0/4.0bn resp. We expect continued lockdown post 1Q, and slower ramp-up 3QCY20 onwards to pull down CY20E volumes by 15% YoY. However, robust realisation base and falling energy costs should bolster margin expansion. We maintain BUY with unchanged TP of Rs 210/sh.

11:47 AM

Indices near resistance levels. Will the markets see profit booking?

NIFTY 50: The index is resisting to go past 9,390 levels, which is the 38.20% retracement as per the daily chart. This is one of the key Fibonacci retracement levels widely tracked by technical analysts that helps forecast the likely trend. The index did try to conquer this level four times earlier after the sharp fall from the peak level seen in March. However, selling selling pressure at higher levels has kept the momentum in check. READ MORE

11:36 AM

Panacea Biotec hits 52-week high; stock rallies 64% in 4 days

Shares of Panacea Biotec advanced for the fourth straight day and were locked in 20 per cent upper circuit at Rs 211 on the BSE on Tuesday on the back of heavy volumes. The biotechnology company's stock hit a 52-week high and surpassed its previous high of Rs 210, touched on April 24, 2019. It has rallied 64 per cent in the past four trading days, against 1.3 per cent rise in the S&P BSE Sensex. READ MORE

11:33 AM

NEWS ALERT | Natco Pharma's Vizag formulation facility receives US FDA approval

11:30 AM

NEWS ALERT | Escorts in process of applying to CCI for Kubota deal: CNBC TV18

-- In March, the company announced selling 10 per cent stake to Kubota at Rs 850/share
 

-- Escorts got shareholer nod for Kubota to buy stake in company last week

 

11:21 AM

Sebi slashes fees on trading, filing documents to boost market activity

“In its continuing efforts to help market participants tide over challenges due to Covid-19, Sebi has decided to reduce the broker turnover and filing fees on offer documents for public issue, rights issue, and buyback of shares,” it said in a release.

 

The broker turnover fee has been slashed 50 per cent of the existing fee structure. The reduced fee, however, will only be applicable between June and March 2021. The move will result in reduction in trading costs for investors. READ MORE

11:13 AM

NEWS ALERT | Maruti Suzuki considers resuming work at Gurugram, Manesar plants: sources to ET Now

>> Production may resume by next week

>> Maruti looking to produce less than 1,000 cars per day across plants

>> Maintainence work at Gurugram plant complete; Manesar at final stage

11:05 AM

Target zero net debt? RIL board to consider rights issue on April 30

In a statement to the BSE, RIL said the firm’s board will meet on Thursday to consider and approve its March 2020 quarter and FY20 results, recommend dividend on equity shares, and consider a proposal to issue equity shares to existing shareholders on a rights basis, as may be permitted under applicable law, subject to such regulatory/statutory approvals, as may be required. READ MORE

10:52 AM

SECTOR WATCH: Nifty Pharma index declines 1%; top sector loser

10:51 AM

Axis Bank to report Q4 earnings today; here's what analysts expect

According to the analysts at Edelwiss Securities, earnings will be impacted to some extent as Q4FY20 is the strongest quarter. While they see steady growth in retail deposits, traction in corporate deposits would have to be monitored.

 

“On asset quality, incremental stress pool addition would be key monitorable. The bank may shore up provisioning owing to stress on asset quality emanating from Covid-19 outbreak,” they say. READ MORE

10:36 AM

NEWS ALERT | Axis Bank signs agreement with Max Financial Services for 29% stake in Max Life Insurance

10:29 AM

We have not had any panic redemption in recent weeks: Mirae Asset

For us, net inflows into equity have continued in March and April within the range of inflows seen in the trailing 12 months. At the portfolio level, we do not take cash calls and typically have up to 2 – 3 per cent cash levels in any portfolio. We have not had any panic redemptions/outflows across both equity and debt funds in recent weeks as well.: GAURAV MISRA, senior fund manager at Mirae Asset Investment Managers. READ MORE