MARKETS: Sensex slips 552 pts on weak global cues, rise in Covid-19 cases

All that happened in the markets today

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NSE's nifty ended at 9,813.70, down 159 points or 1.6 per cent. India VIX surged over 6 per cent to 32.71 levels.

12:39 PM

NEWS ALERT :: Sun Pharma, Hikma enter into an exclusive licensing agreement for Ilumya

>> Sun Pharma and Hikma Pharmaceuticals PLC have entered into an exclusive licensing and distribution agreement for ILUMY, an innovative biologic product, for the Middle East & North Africa (MENA) region

>> Under the terms of the licensing agreement, Hikma will be responsible for the registration and commercialization of the product in all MENA markets and Sun Pharma will be responsible for product supply. Sun Pharma is eligible for upfront and milestone payments from Hikma. The term of this agreement is 15 years from first sale, with two years’ automatic renewal periods.

Alert: ILUMYA is an USFDA approved innovative IL-23p19 monoclonal antibody used for the treatment of adults with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy.

(Via BSE filing)

12:31 PM

Mastek freezes at 20% upper circuit post March quarter earnings

The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) margins improved 350 basis points to 17.3 per cent from 13.8 per cent in December 2019 quarter (Q3FY20). Consolidated net profit increased by 50 per cent to Rs 38.90 crore, while total income grew 39.9 per cent at Rs 354.20 crore over the previous quarter. READ MORE

12:19 PM

MARKET CHECK :: Sensex crashes 800 pts

12:11 PM

Gold steady as second Covid-19 wave fears in Beijing weigh on risky assets

Gold prices were little changed on Monday after posting their best week since early April as fears of a second wave of coronavirus infections in Beijing cut investors' appetite for riskier assets. Spot gold was steady at $1,729.40 per ounce as of 0316 GMT. U.S. gold futures eased 0.1 per cent to $1,734.90. The metal climbed 2.6 per cent last week, posting its biggest weekly gain since April 10. READ MORE

12:06 PM

NEWS ALERT :: May WPI inflation comes in at -3.21%

>> Primary articles WPI at -2.92%

>> Food Inflation at 2.31%

>> Manufactured products inflation at -0.42%

>> Fuel and Power inflation at -19.83%

(Source: CNBC TV18)

12:02 PM

IIFL on Hexaware

Hexaware’s promoter Baring PE (HT Global IT Solutions) has announced its intention to delist HEXW shares from stock exchanges, by acquiring 112.06m publically-owned shares (37.6%) in accordance with delisting regulations. With a 20% rally in the stock price last Friday, it is now trading close to our 12-mth target price.

12:02 PM

IIFL on telecom sector

With respect to the AGR case, the Supreme Court (SC) has directed telcos to submit a roadmap for payment, the timeline of payment and the security they can provide to guarantee the payment. We expect the SC to relent in the face of the harsh economic reality that will confront the country if VIL shuts down. We expect the government to work on a solution, including lower interest rate, licence fee/spectrum fee cut, etc. We have BUYs on all four names, with the pecking order being Bharti, Infratel, RIL and VIL.

12:01 PM

Edelweiss on Hindalco

11:59 AM

Phillip Capital on Asian Paints

11:56 AM

Elara Capital on Eicher Motors

We are monitoring the recent spurt in bookings and whether it would be sustainable or is just some of the pent-up demand coming back, given the limited period offers RE was offering customers. We cut our FY21-22E EPS by ~10-15% to factor in volume and margin cuts. We downgrade to Sell from Accumulate with a new SOTP-based target price of Rs 14,770 from Rs 14,019 on 20x FY22E P/E for the RE business and 10x FY22E EV/EBITDA for VECV. We expect a weak EPS CAGR of ~4% for RE over FY20-22E, and, hence we believe premium valuation is not justified.

11:56 AM

Elara Capital on Shriram Transport Finance

We believe valuations of 0.9x FY22E P/ABV capture our concerns on growth, asset quality and change in hands once Piramal looks to exit its stake and stiff liability. Even post expectations of flat AUM and credit cost at 3.0% in FY21E, the entity is still well placed to deliver an average ROA of 2%+ over FY20-22E with ROE at 12%+, which demands P/ABV of 1.0x, which is still below the historical one-year forward P/B average of 1.8x. Given the valuation comfort, we revise to Buy from Accumulate with a new target price of Rs 887 from Rs 1,197 as we revise our earnings by 36% for FY21E and 30% for FY22E

11:54 AM

MOSL on M&M

Mahindra & Mahindra (MM)’s 4QFY20 performance beat was led by a better mix and lower RM cost. While MM’s core business would recover faster, the focus on tightening capital allocation could act as a rerating catalyst.

We upgrade FY21/FY22E EPS by 8%/2% to reflect an improving mix. An improving core business and possible course correction on capital allocation would drive stock performance as valuations are still cheap. Buy, with target price of Rs 585.

11:53 AM

Nomura on economy

We expect inflation to moderate, despite cross-currents on food price inflation in the short term, aided by easing food pressures as supply chains are gradually restored and due to lower core inflation. Meanwhile, the exit from the lockdown should see some tepid recovery in industrial production, although IP growth is likely to remain negative in May as well.

Overall, we estimate GDP growth at -5% y-o-y in 2020 and expect the RBI to deliver an additional 50bp of policy easing cumulatively, while prioritising on unconventional measures as the primary tool of policy delivery.

11:47 AM

Why second wave of Covid-19 is a worry for equity markets

Many believe that the surge in the markets defy economic reality and is being fuelled by aggressive monetary easing by central banks across the world. The yield on the 10-year US government bonds, for instance, has dropped sharply, which is stroking carry trade. Easy money is entering the stock market in search of high returns. After a record sell-off in March, India has seen a sharp improvement in foreign flows since May. Stocks across sectors have seen double-digit gains. However, within that, interest-rate sensitive sectors such as realty, automobile, and banking have clocked the best returns. READ MORE