The broader market continued trading with losses. The S&P BSE Mid-Cap index was down 0.69% while the S&P BSE Small-Cap index was down 0.65%.
The market breadth was negative. On the BSE, 727 shares rose and 1326 shares fell. A total of 130 shares were unchanged. In Nifty 50 index, 17 stocks advanced while 33 stocks declined.
The trading sentiment continued to be negative after Franklin Templeton Mutual Fund decided to close six debt schemes citing lack of liquidity in the debt market and unprecedented redemptions in these yield-oriented schemes.
SEBI Relaxation:
The market regulator, the Securities and Exchange Board of India (Sebi), on 23 April 2020, eased the 12-month cooling-off period that companies have to observe between buybacks and equity fundraising. The current one-year cooling-off period has been reduced to six months to enable quicker access to capital. This relaxation will be applicable till 31 December 2020, Sebi said in a circular. Currently, buyback regulation restrict companies from raising further capital for a period of one year from the expiry of buyback period, except in discharge of their subsisting obligations.
On 21 April 2020, Sebi notified further changes to rights issues guidelines in order to make such share sales easier for listed companies. Based on the new norms, a company that has been listed on the stock exchanges for 18 months can raise funds via a rights issue, as opposed to the earlier norms that allowed firms that were listed for at least three years to undertake a rights offer. Further, the eligibility criteria of average market capitalization of public shareholding of the issuer has been relaxed to Rs 100 crore from the earlier Rs 250 crore. The minimum subscription required for a rights issue to be considered successful has also been relaxed to 75% from the previous 90%, if out of the total funds raised at least 75% of the issue size is utilized for the objects of the issue other than general corporate purposes.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 0.5% to 39.0325. The Nifty April 2020 futures were trading at 9,187, a discount of 35.9 points compared with the spot at 9,222.90.
On the options front, the Nifty option chain for 30 April 2020 expiry showed maximum call open interest (OI) of 22.69 lakh contracts at the 9,500 strike price. Maximum put OI of 37.28 lakh contracts was seen at 9,000 strike price.
Earnings Impact:
Bharti Infratel fell 7.19% to Rs 153.20 after consolidated net profit rose 7% to Rs 649.50 crore on a 1% increase in revenue to Rs 3624.40 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax fell 14% to 866.20 crore during the period under review. EBITDA rose 12% to Rs 1,721 crore in Q4 March 2020 over Q4 March 2019.
The company said there is no significant impact of COVID-19 pandemic on the financial position and performance of the Group. Further, the Group is not expecting any significant changes in estimates as of now as the company is running its business and operations as usual without any major disruptions.
Mahindra CIE Automotive fell 3.92% after consolidated net profit slumped 86.4% to Rs 20.70 crore on 23.5% decline in net sales to Rs 1662.71 crore in Q1 March 2020 over Q1 March 2019. EBITDA declined 37% to Rs 187.10 crore in Q1 March 2020 as against Rs 297.40 crore reported in the same period last year. EBITDA margin fell to 11.7% in Q1 March 2020 from 14.4% posted in Q1 March 2019. Business margins affected by sales drop mainly due to COVID-19. The result was announced after market hours yesterday, 23 April 2020.
Stocks in Spotlight:
MindTree was up 1.12% ahead of its Q4 results today, 24 April 2020.
Shilpa Medicare rose 0.87% after the company said it has launched its generic version of cancer drug Dasatinib at a monthly therapy cost of Rs 6,440. It is first branded generic anticancer drug with all dosage strength 20/50/70/100 mg tablets, which is used for the treatment of Chronic Myeloid Leukaemia (CML).
Granules India gained 2.83% after the company said it that the US Food & Drug Administration (USFDA) has approved the Abbreviated New Drug Application (ANDA) filed by Granules Pharmaceuticals, Inc (GPI)., a wholly-owned foreign subsidiary of Granules India for Trospium Chloride extended-release capsules, 60 mg. Trospium Chloride extended-release capsules are a muscarinic antagonist indicated for the treatment of overactive bladder (CAB) with symptoms of urge urinary incontinence, urgency, and urinary frequency.
Axis Bank traded 3.65% lower. The bank said its board will consider borrowing/raising funds in Indian Currency/Foreign Currency by issue of debt instruments including but not limited to Bonds and Non-Convertible Debentures on 28 April 2020.
Ashok Leyland dropped 2.57%. The auto major said that the company has in tranches, acquired 157,96,406 shares of Hinduja Leyland Finance (HLFL) constituting 3.36% of the paid-up equity share capital of a subsidiary of the company. Consequent to the aforesaid acquisition, the company's shareholding in HLFL stands increased from 65.45% to 68.81%.
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