MARKETS: Sensex erases gains, ends 262 pts lower; banks, metals, FMCG drag

All that happened in the markets today

12:58 PM

BROKERAGE VIEW:: Prabhudas Lilladher on Titan Co

Rating: HOLD | CMP: Rs 892 | TP: Rs 844

We believe discretionary spends reduction might impact all categories like Watches, Eyewear, Fragrances and Sarees in the interim. We estimate 24.8% decline in EPS in FY21 and 57% jump in FY22 which will provide 8.7% PAT CAGR over FY20-22. We believe TTAN will continue to enjoy premium valuations and value the stock at 43xFY22 EPS and arrive at a target price of Rs 844 (Rs 1264 earlier). We retain hold and recommend accumulation on declines for long term gains given possibility of near term PE de-rating. 

12:51 PM

Ashok Leyland reports zero sales in April as lockdown adds to woes

The nationwide lockdown to curb the spread of coronavirus is continuing to hurt the automobile market. Ashok Leyland has reported zero sales of medium & heavy commercial vehicles (M&HCV) in the month of April as against 8,918 units, a year ago. The company's light commercial vehicle (LCVs) segment also witnessed zero sales as against 4,223 units, a year ago. READ MORE

12:49 PM

About time the govt stopped discussing a stimulus package and announced it

The Purchasing Managers’ Index (PMI) for Indian manufacturing, or PMI, has fallen an unprecedented amount in the month of April. On a seasonally adjusted basis, it has gone down from almost 52 in March to 27.4 in April.

 

According to IHS Markit, which compiles the index, correspondingly, there has been a drastic reduction in staff numbers in April, also the steepest on record in the survey. READ MORE

12:38 PM

Bharti Airtel up 4%, nears record high; reclaims Rs 3 trillion m-cap mark

Shares of Bharti Airtel continued their northward journey for the fourth straight day, up 4 per cent at Rs 554, on the BSE on Tuesday. The scrip is less than 3 per cent away from its record high level of Rs 569 touched on February 17, 2020. The stock of the telecom services provider has rallied 14 per cent in the past four trading days after Finnish telecom gear maker Nokia announced signing a deal worth Rs 7,500 crore with it to enhance the mobile operator’s network capacity in nine circles across the country. In comparison, the S&P BSE Sensex was down 0.38 per cent during the period. READ MORE

12:29 PM

BROKERAGE VIEW:: HDFC Securities on HUL

HUL posted weak performance across all fronts in 4QFY20 despite our estimates being lower than consensus. Revenue and volume decline of 9% and 7% was impacted by weak BPC market growth and lockdown led trade destocking in March. Lockdown led supply chain disturbance will be resolved in the coming months. However, underlying demand which was already reeling in FY20 will be further impacted in FY21. Consumer trends are expected to change sharply for many categories in FY21. Discretionary, Out-of-home (OOH) consumption and rural will remain tepid. In our recent thematic report, we have already cut down estimates for our coverage universe. However, we expect there can be more downside risk to our estimates for all. We cut our EPS estimates for HUL by 7-8% for FY21 and FY22. We value HUL at 47x on Mar-22E EPS, our TP is at Rs 1,969 (earlier 2,113). Maintain REDUCE.

12:21 PM

Nifty Bank index slips into the red, down nearly 600 points from day's high

12:11 PM

Berkshire 2020 | Covid-19 makes investment mavens miss annual rite as Buffett goes online

During the 1996 annual meeting of Berkshire Hathaway, a woman asked Chairman Warren Buffett for some investment advice. She said she dabbled in stock with her husband, but they followed different strategies. Her husband bought perhaps 40 different companies for his portfolio. READ MORE

12:00 PM

BROKERAGE VIEW:: CLSA on BHEL

Rating: BUY | Target Price: Rs 40

At a time when the world seeks supply chain diversification, BHEL has invited multinational corporations to set up manufacturing bases in India on a plug-and- play model. BHEL could emerge as an engineering R&D services provider, a contract manufacturer, or a lessor of urban-area industrial land. This could be a test case of a central public sector enterprise monetizing its assets to unlock value vs government divestment. Success should determine the extent of stock rerating to its asset value (4.5x CMP). We reiterate a BUY rating.

11:50 AM

Tech View: Nifty Bank faces selling pressure at 22,000 levels, show charts

NIFTY BANK: This index is highly resistant at 38.20% Fibonacci retracement as per the daily chart. The recent high of 21,967 suggests the retracement level of 22,050 holds a strong hurdle for the coming sessions. The overall momentum indicates “sell on rise” strategy with selling pressure emerging on every possible upside. The downward rally has a support of 19,500 levels; any close below the same may accelerate the selling impulse. READ MORE

11:40 AM

Mahindra & Mahindra at day's high

11:32 AM

Kitchen appliance maker Stove Kraft gets Sebi's go-ahead to launch IPO

The offer for sale comprises up to 6,40,906 shares by promoter Rajendra Gandhi; up to 2,50,000 shares by promoter Sunita Rajendra Gandhi; up to 13,11,205 shares by Sequoia Capital India Growth Investment Holdings and up to 49,61,610 shares by SCI Growth Investments II, the DRHP noted. READ MORE

11:26 AM

ICICI Lombard Q4: There's no insurance cover against slowdown

With the banking sector hit by a fresh wave of possible asset quality issues, the Street had viewed insurance stocks favourably. Whether it be for life or general insurance firms, the view was they would possibly beat the slowdown better than other financial services players. However, as insurance companies publish their March quarter (Q4) results, the view appears to be more of a myth than genuine expectation.

 READ MORE

11:20 AM

April gold imports plunge 99.9% to three-decade low amid lockdown: Report

India's gold imports plunged 99.9 per cent year-on-year in April to their lowest in nearly three decades as air travel was banned and jewellery shops were closed amid a nationwide lockdown to curb the spread of coronavirus, a government source said. The world's second biggest consumer of the precious metal imported around 50 kilograms of gold in April, down from 110.18 tonnes a year ago, the source said on Monday, who is not authorised to speak to the media. READ MORE

11:12 AM

Oil & gas index surges nearly 3% amid rally in oil prices; ONGC climbs 6%

At 10:43 am, the S&P BSE Oil & Gas index was ruling 2.43 per cent higher at 11,873.39 levels. ONGC was the top gainer on the index - up over 6 per cent at Rs 81.40 apiece on the BSE. Other major gainers on the index were Hindustan Petroleum (HPCL), Bharat Petroleum Corporation (BPCL), Reliance Industries (RIL), and Indian Oil Corporation (IOCL) - all were up in the range of 4 to 1.5 per cent. READ MORE

11:00 AM

NEWS ALERT | Bharat Forge plans to partially resume operations at Baramati plant: BSE filing