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Market LIVE: Nifty reclaims 9,300, Sensex turns positive, gains 350 points; RIL, HDFC Bank, ICICI Bank up – The Financial Express

Except Nifty FMCG and Nifty PSU Bank, all the sectoral indices were trading with gains.

Share Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic equity market benchmarks BSE Sensex and Nifty 50 turned positive after recovering from opening losses on Wednesday. The 30-share Sensex was trading at 31,706.22, up 252.71 points or 0.80% per cent while the NSE’s Nifty was ruling at 9,261.05, up 55.45 points or 0.60 per cent. Out of 30 Sensex stocks, 25 scrips were trading in positive territory with Bharti Airtel as the top gainer, up 3 per cent, followed by Hero MotoCorp, Tata Steel, HDFC and HDFC Bank. While, ITC, Titan, Asian Paint and Axis Bank were among the top Sensex laggards. Except Nifty FMCG and Nifty PSU Bank, all the sectoral indices were trading with gains. Nifty FMCG slipped 1,54 per cent, while Nifty PSU Bank was half a per cent down.

BoFA Securities downgraded ratings for State Bank of India (SBI), IndusInd Bank, ICICI Bank, Bank of Baroda, with HDFC Bank the only ‘buy’ in the sector. While HDFC Bank remains the only bank with ‘buy’ rating. “We will likely see liability consolidators (led by HDFC Bank, Kotak Mahindra Bank, SBI) emerge stronger over the medium term but until the current NPA cycle peaks, we see downside risks to valuation multiples,” Bank of America Securities in its latest research report. It further added that the banking sector is on the verge of a new (and unique) NPA cycle panning across corporate and retail segments.

We downgrade India AlcoBev sector to Neutral from Positive led by a) increasing tax hikes by state governments to shore up tax in post Covid reopening b) higher risk of receivables cycle stretching working capital for all players, and impacting cash flow generation c) likely delay in consumption recovery and risk of down trading by consumers and focus on essential consumption. Maintain BUY on Radico, downgrade UNSP and UBL to Reduce: Dolat Analysis and Research

The volatility in the market is a reflection of sentiment flipping between hope and fear. The hope that the economy shall revive soon with the development of vaccine and containment of the virus, and the fear that it won’t. During times like these, when the known is yet unknown; how can one protect ourselves from the market vulnerabilities? It’s good to hope not and better to anchor the ship at shores when we know clouds are becoming darker and threatening at the horizon: Amit Pabari, MD, CR Forex Advisors

Oil marketing companies (OMCs) share prices were trading under pressure in Wednesday’s weak market as the Centre hiked excise duty on petrol by Rs 10 a litre and on diesel by Rs 13 per litre. State-controlled oil marketing companies Indian Oil Corp, BPCL, and HPCL will absorb the price hike. Hindustan Petroleum Corporation (HPCL) share price declined 13 per cent to Rs 186.70 apiece on the BSE. Bharat Petroleum Corporation (BPCL) share price fell 10 per cent to Rs 312.15. Shares of Indian Oil Corporation (IOC) were down 7.5 per cent at Rs 72.85 apiece on BSE.

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Share price of pharma major Pfizer jumped 3% on Dalal Street as the news of the firm starting human testing for its coronavirus drug reached investors. The scrip was trading at Rs 4,782 per share. 

Varun Beverages’ 1QCY20 result was better than our expectations driven by higher volume contribution from acquired territories and resilient performance from International geographies. Organic domestic volume performance (declined 13.7%) was a bit disappointing, though, as COVID-19 related lockdown had an adverse impact in the month of March (accounts for disproportionately higher volume share). Despite disruptions, the company maintained its operating margin on benign RM costs and an easy base for the International business (1QLY margin impacted by translation provisions). Management has withdrawn its volume guidance for the year on demand uncertainties amidst Covid 19 pandemic but is fairly confident of maintaining its operating margin; benign RM prices and reduction in trade/marketing spends would help negate the adverse impact from lower throughput. 

JM Financial

Nifty FMCG index plunged 500 points or 1.87 per cent dragged by ITC, Emami, Godrej Industries and Britannia. Nifty PSU Bank index was also trading 1.5 per cent lower.

S&P BSE BANKEX slips 314 points or 1.42 per cent in the morning trade. SBI, Kotak Mahindra Bank, IndusInd Bank, ICICI Bank among top laggards after BoFA Securities downgraded ratings.

SBI Life Insurance continued to gain market share in FY20 (23.2% basis IRP, up 90bps YoY) vis-à-vis its top private competitors. While NBP moderated 12% YoY in Q4FY20 due to the business lost during the lockdown in March, it is up 20% for the full year FY20, led mainly by non-par savings (due to introduction of a guaranteed interest rate product) and group savings. Growth in individual and group pure protection NBP softened to 9% YoY due to logistical challenges, but should trend up once restrictions on mobility are relaxed. VNB margin rose 100bps YoY to 18.7% due to an increasingly optimum product mix with high-margin products such as protection and non-par savings garnering a greater share of the product mix. As we argued earlier a sharp fall in ULIP sales and the operating leverage hit from a spike in surrender rates are the key risks for the industry. Operational challenges such as managing activations across the massive branch network and management continuity given its PSU parentage are the concerns for SBI Life specifically. Maintain ‘BUY’ with a TP of INR860.

Edelweiss Securities

ITC was the top Sensex laggard, down 5.75 per cent, followed by Axis Bank, HCL Tech, Titan and SBI. While, ONGC, Bharti Airtel, HDFC and Sun Pharma were among the top Sensex gainers

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Oil marketing companies’ shares fell in Wednesday’s trade after the Centre hiked excise duty on petrol by Rs 10 per litre, and on diesel by Rs 13 per litre, and asked the OMCs to absorb the price hike. Hindustan Petroleum share price crashed 10.55 per cent while BPCL tanked 7.30 per cent.

Check live prices: HPCL

The 30-share Sensex was trading 214 points or 0.68 per cent down at 31,239, while the BSE’s Nifty was ruling at 9,141, down 64 points or 0.69 per cent.

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Yesterday MCX Gold in conjunction with Comex gold witnessed a weak session as the U.S. dollar gained for a fourth straight session, making gold costlier for investors using other currencies. More pressure came in as two of the world’s biggest gold refiners, Valcambi and Argor-Heraeus, have restored almost all operations after Switzerland relaxed coronavirus lockdown measures after a gap of almost 6 weeks. The key focus for today would be ADP employment change, hence the evening session is likely to be volatile: Jigar Trivedi, Fundamental Research Analyst – Commodities, Anand Rathi Shares and Stock Brokers.

Prime Minister Narendra Modi’s government late Tuesday evening increased excise duty on petrol by a record Rs 10 per litre, and on diesel by Rs 13 per litre. However, consumers may need not worry, as the retail prices of petrol and diesel at the pump will not rise, despite the massive tax hike. The three state-run oil marketing companies — Indian Oil Corp, BPCL and HPCL — will absorb the entire hike in the excise duty, PTI reported citing unidentified industry officials

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The intense competition in the domestic telecom industry has gradually lessened with reduced number of players. Given the current scenario, Bharti Airtel is likely to enjoy further market share as another key player -Vodafone Idea- struggles to survive in the market. Additionally, the company should benefit from the deferral of spectrum auction instalment payments and moderation in capital expenditure intensity. We initiate our coverage on Bharti Airtel with a BUY rating and a target price Rs 625 per share: Anand Rathi Research

RBI MPC will likely cut the reverse repo rate by 50bp by October with inflation set to slip to 2.5% in 2HFY21. The MoF will likely infuse 30bp of GDP of fiscal stimulus focusing on SMEs, real estate and banks. Along with falling tax collections and divestment shortfalls, this will likely push up the Center’s fiscal deficit 130bp of GDP above the budgeted to 4.8%: BoFA Securities

HDFC Bank remains our only Buy in the sector as we expect the bank to outperform peers on both growth and asset quality in the current environment. The bank’s big capital buffers and improving leadership on the liability side also makes it best positioned to capture the medium term opportunities post the current slowdown: BoFA Securities

Banks with better capital buffers and to some extent better liability franchises (pvt banks especially HDFCB, Kotak) will likely have better downside support, says BoFA Securities.

We feel the muted earnings combined with looming uncertainty over the economic situation due to extended lockdown have started haunting the participants. Besides, global cues are further adding to their worries. In such a scenario, it’s prudent to maintain a “bottom-up” approach and use correction to accumulate quality names in a staggered manner. On the other hand, traders should align their position according to the market trend: Ajit Mishra, VP – Research, Religare Broking Ltd

Early payment of subsidy to fertilizer companies may keep the fertilizer sector buzzing for the day. Going forward, Nifty will find support around 9150 levels, and resistance will be around 9300-9410 levels for the day. Below 9150, it will find support around 9040: Vishal Wagh, Head of Research, Bonanza Portfolio Ltd

Today, Nifty will open flattish as suggested by SGX Nifty and global cues are also a mixed bag. Since the last couple of trading, sessions markets remained in a bear grip. Today, it is expected to remain in the trading range of 9150-9300.  Delay in the expected stimulus package, geopolitical tensions, and extension of lockdown are few reasons due to which markets won’t able to find buying support in the last couple of days: Vishal Wagh, Head of Research, Bonanza Portfolio Ltd

The 30-share index Sensex declined 262 points or 0.83 per cent to settle at 31,453.51 while NSE’s Nifty 50 ended at 9,205.60, down 88 points or 0.95 per cent

In the wake of historic output loss followed by potentially a prolonged (long bottom) economic recovery during FY21-22, we further downgrade our sector view. We now move closer to a stress case scenario in FY21-22 as we expect the current economic situation will drive paradigm changes in the sector (report)in the near to medium term More than just the growth slowdown, we are now on the verge of a new (and unique) NPA cycle panning across corp/retail segments lasting through at least FY21-22: BoFA Securities

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