Markets may be volatile after assembly election result of four states and one union territory. Trends in the election results so far indicate Trinamool Congress taking the lead while the BJP has crossed the majority mark in Assam and the Left Democratic Front in Kerala.
Nifty sectoral indices at this hour
Franklin Templeton unitholders to get ₹2,489 cr in next tranche: PTI
SBI Funds Management (SBI MF) will distribute the next tranche of ₹2,489 crore to unitholders of Franklin Templeton Mutual Fund’s six shuttered schemes in this week from Monday. SBI MF has already distributed ₹12,084 crore to investors.
This included ₹2,962 crore distributed during the week of April 12. “We are pleased to now inform you that SBI Funds Management Pvt Ltd (SBI MF) would be distributing the next tranche of ₹2,488.75 crore to unitholders across all six schemes.
The payment to all investors whose accounts are KYC compliant with all details available will be made during the week of May 3, 2021,” a Franklin Templeton MF spokesperson said on Sunday.
Fitch downgrades Future Retail’s Long-Term Issuer Default Rating to ‘RD’ from ‘C’
Fitch Ratings has downgraded Future Retail Limited’s (FRL) Long-Term Issuer Default Rating (IDR) to ‘RD’, from ‘C’, following the company’s announcement that it has completed the restructuring of the bulk of its onshore debt, which Fitch views as a distressed debt exchange (DDE). At the same time, Fitch has affirmed the rating on FRL’s $500 million 5.6% senior secured notes, due 2025, at ‘C’, with a Recovery Rating of ‘RR5’.
“We believe the resurgence of the coronavirus in India and FRL’s poor access to credit will make it difficult for the company to meet the interest payments on debt that was not part of the restructuring, particularly the US-dollar notes. The company will also need to rely on alternative sources, such as new equity partners and disposals, to meet its large debt repayments after September 2021, as agreed in the restructuring plan,” the rating agency said.
We believe the risk of another, potentially deeper, debt restructuring will rise significantly if the proposed sale of FRL’s business to an indirect subsidiary of Reliance Industries Ltd (RIL; BBB-/Stable) is not completed.
HS Markit India Manufacturing PMI at 55.5 in April
The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) was at 55.5 in April versus 55.4 in March.
Nifty view: Sameet Chavan, chief analyst-technical and derivatives, Angel Broking
“It is quite clear that the benchmark is trapped in a wider range of 1000 points i.e. 15000 – 14150 and till the time we do not see sustainable breakout on either side, we would like to remain neutral on market and would like to consider each day as a new day. Within this consolidation, the inclination would slightly be on the positive side as we are seeing a strong support zone of 14550 – 14450. Here the banking index holds some significance as long as 32000 remain intact. For Nifty, the immediate resistances are to be seen at 14730 – 14860.”
Godrej Properties reports Q4 net loss of Rs191.6 crore
Godrej Properties today reported a consolidated Q4 net loss of Rs191.6 crore against profit of Rs102.4 crore in the year-ago period. Revenue was at Rs572 crore versus Rs1,288 crore.
India coronavirus update
India reported 368,147 new cases over the past 24 hours, pushing its overall caseload to a tad less than 20 million. Fatalities stood at 3,417.
Daily case additions have remained above 300,000 for the 12th straight day.
India’s total infections stand at 19.93 million, while total fatalities number 218,959, according to health ministry data.
Dalmia Bharat delaying it’s much-awaited expansions is only a short-term dampener
Cement manufacturer Dalmia Bharat Ltd reported decent earnings in the March quarter. Aided by negative tax rate, its net profit exceeded analysts estimates. Other earnings parameters such as revenue growth and it’s operating performance were in-line.
But the company’s management said that it has postponed the announcement of its capital allocation policy due to the pandemic. While the ongoing capital expenditure (capex) plans would continue, the management would decide on any new expansion capex post the formation of the capital allocation policy. Also, it would decide on the IEX divestment accordingly.
India rupee opens at 74.25 per dollar on Monday vs previous close of 74.07 to a dollar
Bajaj Auto’s April sales rise 5% month-on-month: BSE filing
Bajaj Auto’s total sales rose 5.1% sequentially to 3.88 lakh units in April, while domestic sales fell 32.3% to 1.34 lakh units. Exports were up 49% at 2.5 lakh units.
Nifty Bank among worst hit sectoral indices
Nifty view: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Upon opening, the markets have taken support at 14400. What needs to be seen is how we fare during the day and if we are successful in closing above the 14400 level as that is a key support for the current trend. If we breach that, there might be a cause of concern. On the upside, we still have reasons to target 15000-15100 as a potential target for the Nifty.
Natco Pharma gets emergency use approval for Baricitinib tablets for Covid-19 treatment
HDFC Bank down post internal reshuffle
Private sector lender HDFC Bank on Friday announced an internal reorganisation that would see it form three distinct focus areas namely, business verticals, delivery channels, and technology.
This, the bank said, will further build its execution muscle in all the three areas and be ready for the future. It has named this exercise, Project Future – Ready. The creation of focused business verticals and delivery channels will enable it to capitalise on the opportunities across customer segments in the time to come, it said in a statement.
RIL slips post Q4 results likely on profit booking
The Mukesh Ambani-owned company reported more than doubling of its March quarter net profit to ₹14,995 crore as consumer businesses of retail and telecom as well as petrochemicals saw sequential recovery on improved spreads offsetting continued weakness in refining business. Revenue rose a more sedate 14% to ₹1.72 trillion. Reliance Jio’s revenue fell 6% as the removal of IUC charges dragged down ARPU by 9%.
Gainers/losers on Sensex in opening deals
Nifty falls below 14,500 at open
Sensex at open
Sensex in pre-open
Stocks to Watch: Reliance, Yes Bank, Kotak Bank, Indusind Bank
Among the top 10 stocks that could be in news today are RIL, Indusind Bank, SBI, Dr Reddy’s and auto companies that report their monthly sales numbers.
Among Nifty companies that will announce March quarter results today are SBI Life Insurance and Kotak Mahindra Bank, Godrej Properties, L&T Technology Services, IDBI Bank, Tata Chemicals, and Varun Beverages.
Didi derails BJP’s Bengal dreams
While Mamata Banerjee weathered anti-incumbency to win a third term in West Bengal, even as BJP expanded footprint, Pinarayi Vijayan bucked the 40-year trend to return to power in Kerala. MK Stalin led DMK alliance to victory in Tamil Nadu and Sarbananda Sonowal looked set to form government for a second term in Assam. (Full report)
Markets seen volatile post election results
Indian stock markets are likely to be volatile on Monday, while trends in SGX Nifty indicate a weak opening for domestic benchmark indices. State election results released on Sunday are likely to add to the choppy trade.
On Friday, the Sensex ended 2% lower at 48,782 and Nifty closed at 14,631 down 1.8%.
Asian markets lower
Asian share markets got off to a slow start on Monday as holidays in China and Japan crimped volumes and investors awaited a raft of data this week which should show the U.S. leading a global economic recovery.
MSCI’s broadest index of Asia-Pacific shares outside Japan was all but flat after taking a bit of a spill on Friday. Japan’s Nikkei was shut for a holiday, but Nikkei futures edged up 0.2%.
US markets end weak on Friday
Wall Street ended lower on Friday, with Amazon, Apple, Alphabet and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports.
A day after the S&P 500 closed at a record high, Apple , Google-parent Alphabet and Facebook each gave back gains following upbeat quarterly reports this week.
The Dow Jones Industrial Average fell 0.54% to end at 33,875.31 points, while the S&P 500 lost 0.72% to 4,181.21.
The Nasdaq Composite dropped 0.85%, to 13,962.68.