Here are the key highlights from today's trading session:
1. Market erases Wednesday's gains with Sensex and Nifty slipping over 2 percent each
2. Nifty Bank declines 567 points to 19,069 and midcap index 46 points to 13,018
3. 39 Nifty stocks close in the red with Infosys, HDFC being top losers
4. Reliance Industries, HDFC Twins, Infosys and ICICI Bank top contributors to Nifty's fall
5. 10 of 12 Nifty Bank constituents close lower; HDFC Bank drags index by 292 points
6. IT Index top losing index, closes below 50-DMA of 13,313
7. Godrej Consumer surges 5 percent despite reporting earnings below expectations
8. United Spirits gains 6 percent with most states allowing liquor sales via home delivery
9. Jubilant LifeSciences continue to gain after management with Gilead for COVID-19 drug
10. Lupin advances 3 percent after US FDA clears Vizag API unit
Closing Bell: Indian market erases Wednesday's gains, IT index top laggard; Infosys and Tech Mahindra top losers
Indian equity market fell 2.5 percent lower on Thursday in line with the Asian peers. The Finance Minister will hold another press conference today at 4 PM to further speak on the relief package of Rs 20 lakh crore.
The Sensex ended 2.77 percent lower at 31,122 while the Nifty50 index ended at 9,142, down 2.6 percent. Among sectoral indices, the Nifty IT index remained the top laggard, by slipping 3.5 percent due to Infosys and Tech Mahindra. Except pharma and FMCG index, all sectors ended in red.
RIL, HDFC twins, Infosys and ICICI Bank were the top contributors in dragging the Nifty50 index today.
Just In: Ashok Leyland approves the raising of funds through listed, secured and redeemable non-convertible debentures (NCDs). The aggregate amount will be Rs 300 crore with a green-shoe option of Rs 200 crore. The NCDs will be raised in a private placement basis in one or more tranches, said the company's exchange filing. The stock is up 2 percent to Rs 50 on the NSE.
Stocks Update: Snowman Logistics share price surges 5% after the company said that it falls under the essential services category and all its warehouses are fully functional and operational now. The company's warehouse occupancy has increased to 91.5 percent in March 2020, it said.
EPF contribution cut means higher take-home salary but more tax, say experts
The union government on Wednesday announced reduction of employees’ provident fund (EPF) contribution by both employers and employees to 10 percent of basic wages from the existing 12 percent for the next three months. The government said that the move will place more liquidity in the hands of employees and some relief to the employer as well.
According to experts, the decision will increase the take-home salary, but at the same time it will reduce investments under section 80(C) for the financial year 2020-21. This means taxpayers will end up paying more taxes with the reduced EPF rate of 10 percent. Here's how
Bajaj Finance gains over 4% as brokerages remain optimistic on growth
Shares of Bajaj Finance gained over 4 percent on Thursday after brokerages maintained an optimistic view on the company’s earnings prospects and believed it to recover speedily as economic conditions improve.
The stock rallied 4.48 percent to touch intraday high of Rs 2,258 apiece on the BSE. So far this year, shares of the company have fallen 49.77 percent.
Morgan Stanley expects Bajaj Finance to have above-industry return on equity (RoE) in FY21 and believes it should bounce back the fastest as conditions improve. It had an Overweight rating on the stock, with a target price (TP) at Rs 2,740 apiece.
"Structural asset growth and RoE potential have been expanding, while valuations are also attractive at current levels," Morgan Stanley said.HSBC had a Buy rating on the stock with a TP at Rs 3,700 per share, implying a 71 percent upside from current levels.
“We may see 'in-house' spending being favored against 'out-of-home' spending. Financing needs are set to rise as consumers and companies push for no-cost EMI,” HSBC said.
The global research house feels that the COVID-19 crisis may drive a marked change in spending patterns of consumers. Growth moderation may be less in the medium term than feared by the market, it added.
At 1:55 pm, shares of Baja Finance traded 2.47 percent higher at Rs 2,214.50 on the BSE.
Tata Motors shares slip over 5%
The country's largest car manufacturer Tata Motors informed to the exchanges that it has resumed operations in selected plants and dealerships.
The production has been resumed in Pantnagar and Sanand while those in Lucknow, Dharwad, Jamshedpur and Pune are in the final stages of pre-operational preparation.
According to the company, 200 dealerships, 300 workshops for passenger vehicles, 885 workshop for commercial vehicles and 400 sales outlets have resumed operations.
At 1:55pm, the company's shares traded 3.15 percent lower at Rs 84.45 per share on the NSE while during the day, the shares slipped as much as 5.13 percent to Rs 82.55.
Anil Agarwal set to delist Vedanta from Indian bourses; here's why
In a major initiative, billionaire Anil Agarwal recently announced a proposal to delist his flagship Vedanta Ltd from the Indian stock exchanges.
The company has fixed the indicative price for the same at Rs 87.50 per share and aims to complete the delisting process in two months, sources privy to the developments told CNBC-TV18.
According to multiple people familiar with the development, suggested that this is a step towards the simplification of the group to maximise resources for repayment of group debt worth over $10 billion. Continue Reading!
Airlines and the post-lockdown planning challenge
The corona pandemic and ensuing lockdown have already grounded the airline industry. But as the lockdown is gradually lifted, airline planners are now faced with a new challenge. Specifically, the lack of an internal forecasting capability and the incorporation of behavioral changes that cannot be quantified.
Without these, the anticipated demand is at best a wild guess which then means planning for profitability is akin to flying blind. Yet it is one that planners are being forced to take. Demand patterns at this time are at best a “guesstimate.” And with fragile balance sheets and liquidity positions at airlines that in some cases can’t cover more than two days of expenses, the situation is precarious. Click here to read more