MARKET WRAP: Sensex falls 561 pts ahead of F&O expiry; financials top drag

All that happened in the markets today

12:47 PM

BUZZING STOCK:: RIL gains 2.5%

12:45 PM

Cadila's renewed focus on India biz, Covid-19 opportunities lend confidence

Cadila Healthcare reported a subdued showing for the March 2020 quarter (Q4), partly on account of last year’s high base and the Covid-led supply disruptions. Yet, investor confidence remains firm, reflected in its stock that continues to trade near 52-week highs. The key factor is the drug major’s strong outlook. READ MORE

12:38 PM

NEWS ALERT | Sebi extends last date to announce Q4 & FY20 results to July 31 from June 30: CNBC TV18

12:24 PM

MARKET UPDATE:: Sensex regains momentum

12:16 PM

BROKERAGE VIEW:: ICICI Securities on Greenlam Industries

RATING: HOLD | TARGET PRICE: Rs 792

Greenlam Industries (GRLM) has reported an impressive beat on EBITDA margins in Q4FY20 led by a sharp gross margin improvement in laminate and allied product segment, which in turn was led by superior product mix and lower input costs. This was despite losing revenues to the tune of Rs400mn-500mn in Mar’20 due to lockdown. Veneer and allied product segment however continues to disappoint with losses swelling YoY due to operating deleverage and muted realisation amid higher competitive intensity. With GRLM foreseeing strong market share gain opportunity in both domestic and export laminate markets in the near to medium term, we build-in a steady-state recovery in laminates segment starting Q2FY21. Maintain HOLD.

12:14 PM

BROKERAGE VIEW:: ICICI Securities on Page Industries

RATING: HOLD | TARGET PRICE: Rs 19,000

4Q was disappointing with 19% volume decline. We expect the weakness to continue in the medium-term and see multiple headwinds – (1) prolonged period of weak performance given a highly discretionary product, (2) difficulties in new category launches / scale up and (3) potential delay in premiumisation journey. Profitability is also likely to come under pressure given the high fixed cost structure and limited headroom for price hikes in the current environment. That said, there are long-term benefits from potential weakness in competitive intensity. Essentially, a likely instance of market share gains in a downturn. Retain HOLD.

12:13 PM

BROKERAGE VIEW:: Centrum Broking on Aviation sector

We believe that 1/3rd of scheduled capacity was a reasonable starting point for the sector given the current demand. With current capacity at ~25%, we expect a gradual ramp-up in operations from here on. Experience of other countries which have gone through the Covid-19 lockdown and restart process indicate that after 3-4 months of the peak of virus spread the airlines are operating/likely to operate at ~50% of the capacity. Likewise, in India we expect airlines to operate at ~50-55% levels by end of Q2FY21 and strong improvement there on. Overall, we expect the domestic pax traffic to decline 57% yoy to 61m in FY21 and a sharp revival with 95% yoy growth in FY22 to 119m (16% below FY20). IndiGo given its strong balance sheet (unrestricted cash balance of Rs89.3bn as on Mar-20), liquidity enhancement measures and dominant market position is well placed to capitalise on the recovery. We have a Buy rating on IndiGo with PT of Rs 1,244. We have a Reduce rating on SpiceJet with PT of Rs 33.

12:11 PM

BROKERAGE VIEW:: HDFC Securities on Balaji Amines

TARGET PRICE: Rs 560 | RATING: BUY

Our BUY recommendation on Balaji Amines with a TP of Rs 560 owing to (1) Robust demand from pharma and agrochemical industry that comprise ~70% of its revenue mix, and (2) Faster than anticipated recovery in plant utilisation as demand bounces back post the Covid-19 pandemic.

12:09 PM

BROKERAGE VIEW:: Emkay Global Financial Services on Asian Paints

RATING: HOLD | TARGET PRICE: Rs 1,625

• Asian Paints’ Q4 performance was below expectations. Weak mix and the extended lockdown from mid-March resulted in a 7% decline in sales and 3% fall in EBITDA, both below our expectations by 4% and 7%, respectively.
   
• Lower input prices aided gross margin expansion (280bps QoQ), which should continue as input prices remain soft. However, margin gains may reduce on rising crude prices, weak mix and likely price cuts. Lower sales and additional spends on safety, sanitization and trade incentives may also restrict the operating margins gains.
   
• Management indicated a stronger recovery in smaller towns, with metros and tier 1 (40-50% of sales) seeing slower recovery. Growth for VFM products is likely to remain strong and it will continue to drive higher growth in the low-end segment.
   
• Valuations at 46x FY22E EPS remain unattractive, given possible downside risks to earnings. We maintain Hold/UW in EAP, with a TP of Rs1625, based on 42x Jun-22 EPS.

12:00 PM

FMCG shares gain in an otherwise volatile market

11:52 AM

MF investors brace for lower returns after rise in stamp duty charges

Mutual fund (MF) investors are bracing for lower returns after the introduction of stamp duty charges from July 1. A stamp duty of 0.005 per cent will be levied on issuance of units, and 0.015 per cent on transfer of MF units. READ MORE

11:44 AM

Fortis Malar, Lal Path Labs: Diagnostic and healthcare stocks on the charts

Dr. Lal Path Labs Ltd (LALPATHLAB): The stock is quite stable above the 200-days moving average (DMA) though has not been able to show a strong positive move off-late. The bigger picture illustrates a strong selling pressure above Rs 1,700 levels and is likely to sideways for now, as per the daily chart. The support remains at Rs 1,521, which is its 200-DMA. READ MORE

11:36 AM

Asian Paints rallies 7% post March quarter results; stock top Sensex gainer

Shares of Asian Paints, the leading paint manufacturer, surged over 7 per cent on the BSE on Wednesday, a day after the company reported its March quarter results for the financial year 2020-21 (FY21). The stock was the top gainer on the S&P BSE Sensex. At 11:15 am, the stock was ruling 7 per cent higher at Rs 1,802. The stock had hit a 52-week high of Rs 1,915.90 on March 9, 2020 while its 52-week low stands at Rs 1,291.45, touched on July 7, 2019. READ MORE

11:31 AM

Glenmark Pharmaceuticals declines 13% in two days on profit booking

The approval of Favipiravir (emergency usage approval) is for mild to moderate patients. While this is a positive development for the company with short term benefits from Indian market besides additional opportunity from export markets based approvals, the recent run up is unwarranted and much ahead than fundamentals, analysts believe. READ MORE

11:22 AM

NEWS ALERT | Govt may take up changes to Banking Regulation Act in Cabinet meet today: CNBC TV18