Nifty  16130.75  245.60  (1.55%)

Sensex  53823.36  872.73  (1.65%)

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USDINR  74.44  -0.12  (-0.15%)

Mid Session

Market turns north bound; Europe opens higher
(13:14, 05 Jun 2020)

Benchmark indices firmed up further and traded near the day's high in afternoon trade. The Nifty crossed 10,100 level. Gradual lifting of lockdown measures and expectations of further government stimulus boosted investor confidence.

At 13:20 IST, the barometer index, the S&P BSE Sensex jumped 263.90 points or 0.78% at 34,244.60. The Nifty 50 index soared 99.20 points or 0.99% at 10,128.30.

The broader market rallied. The S&P BSE Mid-Cap index rose 1.48%. The S&P BSE Small-Cap index gained 2.32%.

The market breadth was quite strong. On the BSE, shares 1,907 rose and 502 shares fell. A total of 127 shares were unchanged. In Nifty 50 index, 41 stocks advanced while 8 stocks declined.

Overseas investors have been strong buyers of domestic equities in the past one week. Foreign portfolio investors (FPIs) bought shares worth Rs 2,905.04 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 847.31 crore in the Indian equity market on 4 June 2020, provisional data showed.

Unlock 1:

Union Ministry of Home Affairs (MHA) issued guidelines for a phased-wise reopening of the economy from 1 June 2020. The new rules allow religious places, shopping malls, hotels and restaurants to open from 8 June. The government has decided to allow all activities prohibited earlier in areas outside containment zones in a phased manner. The lockdown was first enforced in March to contain the spread of COVID-19.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 66,40,960 far with 3,91,261 deaths. India reported 1,10,960 active cases of COVID-19 infection and 6,348 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Gainers & Losers:

Tata Motors (up 8.98%), Bharti Infratel (up 7.74%), Tata Steel (up 6.30%), Hindalco Industries (up 4.91%) and UPL (up 4.74%) were top gainers in Nifty 50 index.

TCS (down 1.94%), Bajaj Auto (down 1.51%), Hindustan Unilever (down 1.36%), Vedanta (down 0.86%) and Cipla (down 0.64%) were top losers in Nifty 50 index.

SBI was up 2.99% ahead of Q4 results.

Aditya Birla Capital (up 4.26%), Alkem Laboratories (up 1.24%), Exide Industries (down 0.09%), Greaves Cotton (up 2.51%), Gujarat Gas (up 0.56%), Infibeam Avenues (up 3%), Jyothy Labs (up 4.37%), RPG Life Sciences (up 1.94%), SMS Pharmaceuticals (up 0.34%), Sumitomo Chemical India (up 3.19%) and Timken India (up 0.81%) are some of the companies that will announce their quarterly earnings today.

Earnings Impact:

SRF skid 3.25% after consolidated net profit slipped 2.7% to Rs 185.75 crore on a 4.2% fall in net sales to Rs 1,820.28 crore in Q4 March 2020 over Q4 March 2019. On the segmental revenue front, SRF's chemicals business earnings came in at Rs 840 crore (up 5% Y-o-Y), packaging films business' revenue was at Rs 623 crore (down 3% Y-o-Y), technical textiles business income stood at Rs 317 crore (down 22% Y-o-Y) and other businesses earnings were recorded at Rs 58 crore (down 19% Y-o-Y).

Realty major DLF fell 0.13% after the company reported a consolidated net loss of Rs 1,857.76 crore in Q4 March 2020 as compared to a consolidated net profit of Rs 436.56 crore reported in Q4 FY19. Net sales fell 32.2% to Rs 1,694.20 crore in Q4 March 2020 over Q4 March 2019. “There was a one-time DTA (Deferred Tax Asset) reversal of Rs 1,916 crore, on adoption of lower-tax rate”, the company said in a statement. In view of COVID-19, after a thorough analysis and following a prudent approach, the company has undertaken certain provisions to reflect changes in the carrying value of some of its assets and investments. This has led to a one-time, exceptional provision (net of taxes) of Rs 272 crore in Q4 FY20.

PI Industries rose 1.77% to Rs 1,585 on BSE. The company's consolidated net profit dropped 11.9% to Rs 110.70 crore on a 6.3% rise in net sales to Rs 855.20 crore in Q4 March 2020 over Q4 March 2019. EBITDA rose 7% Y-o-Y to Rs 187 crore in Q4 FY20. EBITDA margin was flat at 22% during the quarter despite upsurge in raw material prices on Chinese imports amid initial COVID-19 impact.

Stocks in Spotlight:

Index heavyweight Reliance Industries (RIL) rose 1.08% after the company on Friday announced that Abu Dhabi-based Mubadala Investment Company, is said to invest Rs 9,093.60 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. Mubadala's investment will translate into a 1.85% equity stake in Jio Platforms on a fully diluted basis. With this investment, Jio Platforms has raised Rs 87,655.35 crore from growth investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR and Mubadala in less than six weeks.

Larsen & Toubro (L&T) gained 1.24% after L&T Construction secured a 'large' contract for its heavy civil infrastructure business from the civic body of Telangana. As per the L&T's classification, the valuation of the 'large' order stands between Rs 2,500 crore and 5,000 crore. L&T will announce Q4 results today, 5 June.

Global Markets:

European markets opened higher while Asian stocks traded higher on Friday as investors await the U.S. nonfarm payrolls report expected later in the day. The investors remained cautious as they watched developments arising out of US-China tensions and the possibility of second waves of coronavirus infections.

The European Central Bank (ECB) has boosted its pandemic emergency support program by an unexpectedly large 600 billion euros ($672 billion) to a total of 1.35 trillion euros ($1.5 trillion) through a bond buying program called Pandemic Emergency Purchase Programme (PEPP), in an effort to keep affordable credit flowing to the economy during the steep downturn caused by the virus outbreak.

The Central Bank also said it would extend the program until June 2021, and reinvest maturing PEPP securities until at least the end of 2022. ECB President Christine Lagarde has called it an unprecedented contraction in the euro zone economy.

The US equity market finished session lower on Thursday, 04 June 2020, as investors hit the pause button on caution as Wall Street grappled with disappointing jobs data and a late-day sell-off in tech shares.

The Labor Department released a report on Thursday showed initial jobless claims tumbled to 1.877 million in the week ended 30 May 2020, a decrease of 2,49,000 from the previous week's revised level of 2.126 million. Further, report also showed continuing claims - which reflect the aggregate number of Americans receiving unemployment benefits- jumped by 6,49,000 from the previous week to 21.487 million.

The US trade deficit widened to $49.4 billion in April 2020 from a revised $42.3 billion in March 2020 after a nosedive in the value of exports outpaced a slump in the value of imports.

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