SENSEX34868.98 -561.45 (-1.58%)
NIFTY 5010305.30 -165.70 (-1.58%)
SENSEX34868.98 -561.45 (-1.58%)
NIFTY 5010305.30 -165.70 (-1.58%)
NIFTY MIDCAP 10014809.95 -212.50 (-1.41%)
S&P BSE MIDCAP13140.43 -143.04 (-1.08%)
- SENSEX34868.98 -561.45 (-1.58%)
- NIFTY 5010305.30 -165.70 (-1.58%)
- SENSEX34868.98 -561.45 (-1.58%)
- NIFTY 5010305.30 -165.70 (-1.58%)
- NIFTY MIDCAP 10014809.95 -212.50 (-1.41%)
- S&P BSE MIDCAP13140.43 -143.04 (-1.08%)
Mousumi Paul | Published: June 24, 2020 03:41 PM IST
Stock Market Highlights: The Indian market pared all gains from this week to end lower on Wednesday after Nifty Bank plunged nearly 800 points. At close, Sensex ended 561 points lower to 34,869 while the Nifty50 index ended at 10,305, down 166 points. Broader market also underperformed in-line with the equity market. Nifty Midcap100 and Nifty Smallcap100 index slipped 1.41 percent and 1.80 percent respectively. Nifty Private Bank was the worst-performing sector, down 4.01 percent. Except FMCG, all sectors ended in the red. Asian Paints, ITC, Eicher Motors, Hero MotoCorp and GAIL were the Nifty50 top gainers while ICICI Bank, IndusInd Bank, Power Grid, Hindalco and Zee Entertainment were the index top losers.
Here are the key highlights from today’s volatile trading session:
- Market snaps 4-day gaining streak; financials top laggards
- Sensex and Nifty slip 1.6% each; Nifty Bank down 3.7%
- Nifty slips 166 points to 10,305, Sensex down 561 points to 34,869
- Nifty Bank drops 838 points to 21,427 and Midcap 213 points to 14,810
- Except FMCG, all sectoral indices close in the red
- Market breadth favours declines; advance-decline ratio at 2:3
- ICICI Bank, HDFC twins, Kotak Mahindra Bank drag market while ITC and Asian Paints support
- Asian Paints advances 4% after reporting Q4 earnings better than expected
- Auto stocks gain on hopes on demand recovery; Eicher Motors and Hero MotoCorp up 3% each
- Page Industries, Adani Gas, Bank of India, Adani Transmission amongst top Midcap gainers
- Indiabulls Housing, Info Edge, Union Bank, Bandhan Bank top Midcap losers
Closing Bell: Indian market reverses four-day gaining streak; ICICI Bank top loser, down over 7%
The Indian market pared all gains from this week to end lower on Wednesday after Nifty Bank plunged nearly 800 points.
At close, Sensex ended 561 points lower to 34,869 while the Nifty50 index ended at 10,305, down 166 points. Broader market also underperformed in-line with the equity market. Nifty Midcap100 and Nifty Smallcap100 index slipped 1.41 percent and 1.80 percent respectively.
Nifty Private Bank was the worst-performing sector, down 4.01 percent. Except FMCG, all sectors ended in the red.
Asian Paints, ITC, Eicher Motors, Hero MotoCorp and GAIL were the Nifty50 top gainers while ICICI Bank, IndusInd Bank, Power Grid, Hindalco and Zee Entertainment were the index top losers.
Important Update: With immediate effect from date of President’s nod on the ordinance, cooperative banks will come under the RBI supervision now. As a result, Nifty Bank slips 900 points, down over 4 percent.
Hinduja brothers in UK High Court over letter dispute
The UK-based Hinduja brothers are locked in a legal dispute in the High Court in England over their billionaire family assets, it emerged in a ruling in London.
The case has been brought by Srichand Parmanand Hinduja, 84, described as the “patriarch” of the family, against brothers G P Hinduja, 80, P P Hinduja, 75, and A P Hinduja, 69, and revolves around the “validity and effect” of a letter dated July 2, 2014. Read more
Stock Update: ICICI bank’s shares slip 5.32 percent to Rs 356.15 apiece on the NSE as Bloomberg reported that the private lender is considering to raise as much as $3 billion through a share sale. The proposed share sale might take place in September, said the report. It further added that the lender has already begun talks with potential advisors.
Rupee Update: The Indian currency snapped the two-day gains trail to end lower on Wednesday. The Indian rupee ended at 75.72 as against the US dollar as compared to the Tuesday’s close of 75.64.
Berger Paints gains over 5% post Q4 earnings; Paint company expects decent volume growth going ahead
Shares of Berger Paints India surged over 5 percent on Tuesday after the company reported its March quarter earnings in-line with the street estimates as lower material costs aided gross and operating margins. The paint stock gained as much as 5.89 percent to hit an intraday high of Rs 545.90 apiece on the BSE. At 11:24 am, the shares were trading 5.45 percent higher at Rs 543.60.
The company reported 6.5 percent fall in net profit to Rs 103.2 crore in the fourth quarter of fiscal 2020 as against Rs 110.4 crore in the year-ago quarter. Read more here
European markets lower as surge in coronavirus cases spooks investors
European stocks opened lower Wednesday as a surge in coronavirus cases in the U.S. and beyond, and regional outbreaks in Germany, spooked investors.
The pan-European Stoxx 600 was down 0.4 percent after the opening bell, with all major bourses in negative territory. Health care stocks, which were almost 1% lower, led losses in the region, while the banking sector, up 0.2 percent, led gains.
Investor sentiment has been shaken by an uptick in the number of Covid-19 cases all over the world as economies emerge from lockdown. White House health advisor Dr. Anthony Fauci warned Tuesday that parts of the U.S. are beginning to see a “disturbing surge” of Covid-19 cases.
Earnings Update: GAIL India’s shares gain 3 percent to Rs 102.25 apiece on the NSE after the company beats Street’s expectations and posted a net profit at Rs 3,018 crore in the quarter ended March 2020. Revenue came in at Rs 17,753 crore and operating profit (EBITDA) at Rs 2,475 crore.
Easing preferential allotment pricing, open offer relaxation on SEBI board’s agenda
Market regulator Securities and Exchange Board of India (SEBI), in its board meeting to be held on Thursday, is likely to discuss ways in which fundraising through preferential allotment of shares can be made easier for listed companies. SEBI may consider making certain amendments to the Substantial Acquisition of Shares and Takeover Regulations, sources told CNBC-TV18.
The regulator may be looking at easing pricing regulations for preferential allotment, said the sources, adding that it may allow companies to consider two-week average price for pricing preferential share issue. Click here to read more
SEBI extends the last date to announce quarterly results: Capital markets regulator Securities & Exchange Board of India (SEBI) has extended the last date to announce Q4 and FY20 results to July 31 from June 30 due to the continuing impact of the COVID-19 pandemic.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking
The up-move in index supported by the broader market participation is certainly an encouraging sign and hence, we have been optimistic on the market and have been advising to use dips as buying opportunity. The last few days have been traders delight as the mid-cap and small-cap names (along with the banking and NBFC space) have provided good trading opportunities. As of now, there are no signs on reversal and hence, one should keep focusing on stock picking from a momentum perspective. Just one caveat that we would like to highlight is the formation of a ‘Wolfe Wave’ structure on daily chart of Nifty and resistance according to the pattern is seen around 10,550-10,600. We would see how the index behaves around this juncture in the next couple of sessions. Until any reversal signs seen, traders are advised to take a stock-specific approach and trade with a positive bias. The intraday supports for Nifty are placed around 10,390 and 10,300 whereas resistance is seen in the range of 10,550-10,600.
Asian Paints’ shares surge nearly 8% over bullish brokerage calls, improving margins
Asian Paints share price extended its gains to touch day’s high on Wednesday despite poor March quarter earnings. However, bullish brokerage calls and improving margin provides support to the stock’s surge today.
The stock gained as much as 7.7 percent to Rs 1,813.75 apiece on the NSE. At 12:08 pm, the shares traded 5.71 percent higher to Rs 1,780.
The paint maker reported a 1.23 percent decline in its consolidated net profit to Rs 480.25 crore in Q4FY20. Revenue from operations slipped 7.69 percent YoY to Rs 4,635.59 crore while operating profit (EBITDA) fell to Rs 699 crore from Rs 741 crore in Q4FY19.
However, operating margin widened to 18.5 percent compared to 17.8 percent a year ago.
Moreover, brokerages remained bullish on the stock. CLSA maintained ‘outperform’ on Asian Paints with target price at 1,710. It said that the diversified portfolio and strong brands will help the company gain market share. Similarly, Credit Suisse also remained ‘outperform’ on the stock with target price at Rs 1,850, saying that the company has the highest visibility of FY22 earnings within the consumer discretionary space.
Stock Update: Cadila Healthcare’s shares traded half a percent higher on Wednesday after Zydus Cadila received US FDA nod to market Meclizine Hydrochloride Tablets, that is used to prevent and treat nausea, vomiting, and dizziness caused by motion sickness.
Technical Experts’ View: Gaining for the straight fifth session, Nifty surpassed levels of 10,500 mark; it rallied ~10 percent from this month’s low and 40 percent from the March month’s lowest point. However snapping four years winning streak, Nifty is still down by 13 percent for the current year so far, says Amit Trivedi, technical analyst from Yes Securities.
Technically speaking, forming series of higher highs and higher lows, Nifty retraced 61.8 percent of its previous entire decline. Momentum indicators on short term time frame have entered in overbought region in collaboration with Nifty’s up move, added Trivedi.
He further said, “Focusing to recent price structure, post few days consolidation, Nifty regained momentum on the upside as it sustained above levels of 10k. Going ahead, shifting range higher immediate floor for Nifty is seen near 10,300 mark, sector specific rally could continue as long as Nifty sustains above 10,300.”
Sterling and Wilson Solar’s shares hit upper circuit despite weak Q4 earnings
Sterling and Wilson Solar reported a 56 percent decline in consolidated net profit at Rs 128.58 crore for the quarter ended March 31, 2020.
The consolidated net profit of the company stood at Rs 294.80 crore in the quarter ended on March 31, 2019, a regulatory filing said.
The total income of the company in the March quarter stood at Rs 2,120.50 crore, down from Rs 2,368.17 crore in the year-ago period, a company statement said.
The order inflows for FY20 increased by 15 percent year-on-year to Rs 9,048 crore despite the “challenging fourth quarter” of the financial year, it said.
However, the government’s consideration of basic customs duty of 20 percent on solar energy equipment could be the reason why the stock hit an upper circuit today.
The stock gained 5 percent to Rs 180.80 per share on the NSE.
Yellow metal hits all-time high; rally may continue towards Rs 48,600 per 10 grams
Gold prices in India opened at an all-time high of Rs 48,333 levels on the Multi Commodity Exchange (MCX) Wednesday tracking positive momentum in the international spot prices as investors opted for safe-haven buying amid rising coronavirus infection cases globally.
At 10:05 am, gold futures for August delivery gained 0.14 percent to Rs 48,300 per 10 grams as against the previous close of Rs 48,232 and opening price of Rs 48,333 on the MCX. Silver futures traded flat at Rs 48,785 per kg. The prices opened at Rs 48,713 as compared to the previous close of Rs 48,784 per kg.
Spot gold was up 0.2 percent at $1,769.76 per ounce after touching $1,773, its highest level since October 2012 in early Asian trade. US gold futures rose 0.2 percent to $1,785.80.
Expect gold to trade higher further, says Angel Broking
Gold prices again touched the new life time high of 48,333 levels. In international market, it touched the 8 years high of $1,773 per ounce. Safe heaven demand, investment demand due to coronavirus pandemic and weakness in major economies boost the gold demand, said Anuj Gupta fromt Angel Broking.
“We expect gold will trade higher further. It may test $1,800 to $1,830 levels soon. For traders, it is recommended to buy gold at 48,000 to 48,100 levels, with the stop loss of 47,700, for the target of 48,600 to 48,800 levels,” added Gupta.
Technical Experts’ View: The markets have made a smart opening in the green, all set to achieve higher highs! We need to ensure the support of 10,400 is respected on a closing basis. Should we be able to do that, we could see 10,700 levels as early as tomorrow, says Manish Hathiramani, Index Trader and Technical Analyst from Deen Dayal Investments.
Bank of Baroda’s shares rally nearly 9% post Q4FY20 profit, improved asset quality
Bank of Baroda’s share price rallied nearly 9 percent on Wednesday after the public sector lender reported a profit in its March quarter earnings, with improved asset quality.
The stock gained as much as 9 percent to Rs 54.80 per share on the NSE. However, at 9:38 am, the shares traded 6.04 percent to Rs 53.55.
The PSU bank’s net profit for the quarter ended March 2020 stood at Rs 506.6 crore as against the net loss of Rs 8,875 crore in the same period last year.
The profit in Q4FY20 was due to lower provisions, higher operating income and tax write-back.
The net interest income (NII) during Q4FY20 rose 5.02 percent year-on-year (YoY) to Rs 6,798 crore on the back of decline in interest expenses.
Asset quality of the bank improved as its gross non-performing assets (GNPAs) declined 103 basis points sequentially to 9.40 percent while net NPA slipped 92 bps to 3.13 percent quarter-on-quarter.
Stock Update: JMC Projects’ shares rallied nearly 20 percent to Rs 60.50 on the NSE after the company received orders worth Rs 938 crore including water supply project in Uttar Pradesh (Rs 841 crore) and building project in South India (Rs 97 crore).
Opening Bell: Market opens higher for 3rd consecutive day, Bajaj Finance top gainer
The Indian market opened higher on Wednesday in-line with its global peers. The Sensex opened 249 points higher to 35,680 while the Nifty50 index opened at 10,529, 58 points higher.
Bajaj Finance remained the Nifty50 top gainer while HCL Technologies was the top loser. Nifty PSU Bank surged the most for the third consecutive day, up nearly 3 percent.