MARKET WRAP: Sensex slips 536 pts, Nifty ends at 9,154; financials decline

All that happened in the markets today.

12:36 PM

MARKET UPDATE:: Sensex off day's low

12:36 PM

BROKERAGE VIEW:: ICICI Securities on Alembic Pharma

Rating | BUY | Target Price: Rs 699

We remain positive on the long-term outlook, considering the expectation of continued recovery in India, increased focus on complex and niche R&D for the US market, and track record of healthy return ratios. However, high base and commercialisation of new facilities would impact earnings growth in near-term. Maintain BUY.

12:32 PM

BROKERAGE VIEW:: Edelweiss Securities on L&T

L&Ts rising focus for cash will prove its mettle yet again in difficult times as peers struggle. A P/BV at a 50% discount to GFC levels convinces us about the rare buying opportunity for long-term stakeholders. That L&T has outperformed benchmark in each recovery cycle is encouraging too. Besides, unlike for many businesses, we expect L&T’s core E&C business to sail steady. Retain ‘BUY/SO’ with an SoTP of Rs 1,180.

12:31 PM

BROKERAGE VIEW:: Centrum Broking on IT sector

The top six Indian IT vendors (TWITCH) together have annual revenues of USD75bn for FY20E and are disproportionally higher than Midcap IT company revenues under our coverage Universe. The 14 midcaps in our coverage combined have annual revenue of USD9bn for FY20E (12% of Tier 1 IT vendor revenues). The EBIT margin differential in sector is also wide with TCS leading with 24.6% EBIT margin while Tech M operates at 12.1% EBIT margin for FY20E.While leaders in sector (TCS, Infosys) might show some reluctance in implementing this model at scale, challengers like Wipro and Tech M can seize this opportunity, Select Midcaps like Mindtree, Hexaware, Mphasis, Zensar can try implementing this model at scale to gain market share. Overall, we believe IT vendors can offer 20-30% lower rates in WFH models .

12:26 PM

NEWS ALERT | Ice cream Manufacturing Association writes to Govt, seeking partial waiver of electricity costs: CNBC TV18

-- Association also seeks new soft term loans with relaxed repayment terms

 

-- Sale of ice-cream at 5% when lockdown started, now at 15%: Amul

 

-- Seeing demand for ice cream in large pack sizes: Amul

 

-- Seeing good traction for take-home category and sale via co-owned kiosks: Mother Dairy

-- Plan to roll out new products by May-end or early June : Mother Dairy

(as reported by CNBC TV18)

12:23 PM

BUZZING STOCK | Strides Pharma jumps 11%

12:19 PM

Reliance Industries gains over 4% in a weak market

12:17 PM

Investors should stick to stocks of firms focused on domestic market

Several factors have contributed to this change in preference. Since pharma and health care are essential services, they are likely to see less disruption than others. “Banking and financial services, automobile, industrial, infrastructure, and information technology are expected to be affected. Pharma and health care, on the other hand, offer valuation comfort and earnings visibility,” says Aditya Khemka, fund manager, DSP Investment Managers. READ MORE

12:07 PM

International passenger capacity for India reduced by 89% in April: UN

International passenger capacity for India reduced by 89 per cent so far this month due to the Covid-19 pandemic as compared to a business-as-usual scenario, according to the latest projections from the United Nations specialised agency for international civil aviation. The International Civil Aviation Organisation (ICAO) said that by September, the world could have 1.2 billion fewer international air travellers, compared to regular originally planned or business-as-usual. READ MORE

12:03 PM

NEWS ALERT | L&T MD, CEO address top mgmt on impact of Covid-19 on operations: CNBC TV18

-- Group to resume work in phased manner

-- Projects in west Asia may face delays, deferments due to slump in oil

-- Some announced projects may defer and affect order inflow this year

11:51 AM

Franklin Templeton crisis | Nilesh Shah, chairman, AMFI

Banking liquidity in excess of Rs 700,000 crore, Long Term Repo Operations ( LTRO ) conducted by the RBI , expectations of further rate cuts and Operation Twist by the RBI is likely to keep bond market liquid and normally  functioning in current challenging times

The Mutual Fund industry remains fully committed to investor interests and there is no need for them to panic and redeem their investments. The industry continues to remain robust like in 2008 sub-prime crisis or 2013 taper tantrum crisis

11:50 AM

Franklin Templeton crisis | Comment by NS Venkatesh, Chief Executive, AMFI

“The Mutual Fund industry has seen many cycles and its professional fixed income fund managers have managed crises efficiently over the years. Investors continue to repose trust in the industry and over the last 5 years the Indian MF Industry AAUMs have doubled from Rs. 11.88 lakh crores as on March 31, 2015 to Rs. 24.70 lakh crores of AAUM as on March 31, 2020.”

Most credit risk funds have pretty good credit quality and sufficient liquidity in today’s challenging times and continue to remain an attractive investment option for investors, Mr Venkatesh said.

11:47 AM

Franklin Templeton crisis | Investors should remain invested in Mutual Funds, advices AMFI

>> Says, majority of Fixed Income Mutual Funds AUM is invested in superior credit quality securities and schemes have appropriate liquidity to ensure normal operations.  

>> The AUMs of the six schemes constitute less than 1.4% of the Indian Mutual Fund Industry’s aggregate AUM as on March 31, 2020

11:40 AM

Web Exclusive | Franklin Templeton crisis: Short-term bond market is in deep trouble

This end of the short-term debt market is now stuck in what could be termed a vicious circle. Debt funds are one major source of funding for Commercial Papers (CP) and Certificates of Deposit (CD) issued by corporates. Debt funds have been hit by very high redemption pressures. So, they are in no position to meet corporate demand for loans. READ MORE

11:25 AM

Financials, AMCs under pressure; Bajaj Finance, HDFC AMC down over 5%

Shares of financials including banks, non-banking financial companies (NBFCs), housing finance companies, micro finance institutions, and assets management companies (AMCs) were under pressure, falling up to 10 per cent on the BSE after Franklin Mutual Fund (MF) shut 6 of its debt schemes over redemption pressure and liquidity crunch. READ MORE