Stock Market Highlights: The Indian market recovered from day's low to end higher on Tuesday despite volatility arising from escalation in border tensions between India and China. The gains were led by HDFC twins and ICICI Bank, which surged to end 4 percent today. Tata Motors remained the Nifty50 top loser of the day, down nearly 5 percent. FMCG, pharma, PSU bank and realty indexes closed in the red, meanwhile, financials and private bank sector ended the session on a higher note, up over 2 percent.
Here are the key highlights from today's trading session:
1. Market closes off lows amid volatility, Nifty above 9,900
2. Nifty ends 100 points higher at 9,914 after a trading range of 318 points
3. Sensex gains 376 points to 33,605 after a trading range of 1,069 points
4. Nifty Bank moves 384 points higher at 20,297 and Midcap 62 points to 14,231
5. Financial heavyweights like HDFC twins and ICICI Bank help Nifty close higher
6. IT stocks gain with rupee weakening to 76.21 against US dollar; TCS and Infosys up 1-2%
7. Tata Motors slips 6% after reporting a weak Q4
8. Axis Bank falls over 2% after its retail banking head quits
9. Telecom stocks close with cuts ahead of AGR hearing at SC tomorrow
10. Bharat Dynamics, Kiri industries, TV18, Natco Pharma amongst top Midcap gainers
11. Himatsingka, Praj Industries, Shriram Transport, Apolllo Hospitals top Midcap losers
12. Market breadth favours declines; advance-decline ratio at 1:1
Closing Bell: Market reccovers from day's low to end higher; HDFC twins, ICICI Bank lead gains
The Indian equity benchmark indices witnessed a volatile trade today due to escalating tensions between India and China.
At close, the Sensex ended 376.42 points or 1.13 percent at 33,605.22, and the Nifty ended 100.30 points or 1.02 percent at 9,914. Broader markets ended the session on a mixed note as Nifty Midcap100 index closed 0.44 percent higher while Nifty Smallcap100 index slipped 0.11 percent.
About 1,191 shares have advanced, 1,350 shares declined, and 150 shares are unchanged, reported Moneycontrol.
HDFC twins, ICICI Bank, JSW Steel and Hindalco were the Nifty50 top gainers while Tata Motors, Bharti Infratel, IndusInd Bank, Tech Mahindra and Axis Bank remained the top losers of the index.
Among sectors, financial services and private banks index ended higher, while selling pressure was seen in the pharma, PSU banks, realty and FMCG sectors.
These 2 Nifty50 stocks doubled investor wealth in 3 years. Did you miss the rally?
Two stocks from the Nifty50 index have proven multibaggers despite domestic and global hurdles, and have doubled investor wealth in the last three years.
Nestle and Reliance Industries (RIL) have gained over 100 percent each between June 2017 and June 2020. In comparison, Nifty has risen only 3 percent in the same period.
The benchmark index crossed the 12,000-mark and has fallen below the 10,000-mark in the past three years, but the fortunes of Nestle and RIL have only went up. Click here to read more
Trending Stock: Shilpa Medicare will make an acquisition of two companies, said the company's filing to the exchanges. The first one will involve acquiring a 100% stake in FTF Pharma for a total consideration of Rs 75 crore, as per the company's press release. It will also acquire 40% stake in Auxilla Pharmaceuticals for Rs 6 crore. Despite the announcement, the company's shares fell as much as 8.77 percent to Rs 514.50 per share on the NSE.
Stock Update: Maruti Suzuki India (MSIL) has collaborated with IndusInd Bank to arrange attractive finance schemes to help customers buy their favourite car. MSIL has been arranging consumer finance with finance partners to support progressive restart of business activities in the automobile industry.
Rupee Update: The Indian currency ended with losses on Tuesday after tensions between India and China at the Line of Actual Control (LAC) escalated. The Indian rupee ended at 76.21 as against US dollar as compared to Monday's close of 76.03.
Stock Update: MAS Financial's shares fell as much as nearly 2 percent to Rs 661 after the company approved the borrowing of funds of Rs 500 crore. In its exchange filing, the company said that the fund raising will be done through secured, rated, listed, redeemable, non-convertible debentures (NCDs). The NCDs will be issued in one or more tranches via private placement basis, added the regulatory filing.
European markets rise sharply after U.S. rally on Fed’s additional support; Stoxx 600 up 2%
European stocks advanced on Tuesday as investors reacted to the U.S. Federal Reserve’s latest announcement and focus on central bank action around the world, reported CNBC International.
The pan-European Stoxx 600 jumped 2.1 percent in early trade, travel and leisure stocks surging 4.7 percent to lead gains as all sectors and major bourses entered positive territory.
Investors on Tuesday will be focused on central bank announcements, particularly after the Fed announced Monday more measures to support the market.
The Fed said it would buy individual corporate bonds, marking a broader approach to corporate bond buying. Previously indicating it would eventually buy bonds on the primary market, Monday’s announcement by the U.S. central bank marked an expansion of that into the secondary market.
Buzzing Stock: Rakesh Jhunjhunwala increases his stake in Jubilant LifeSciences to 5.2%. Jhunjhunwala's wife bought an additional stake of 0.4 percent on June 15, according to the shareholding pattern. The stock gained as much as 3.26 percent to hit 52-week high of Rs 695.90 per share on the NSE.
Bayer CropScience's shares hit 52-week high after tie-up with ITC
Bayer CropScience's shares hit 52-week high and surged over 4 percent on Tuesday after a tie-up with ITC to market its crop protection products to farmers. The Bayer CropScience stock gained as much as 4.13 percent to Rs 5,717.95 per share on the NSE, while ITC's shares traded as much as 2 percent higher, quoting at Rs 190.95 apiece.
At 11:07 am, Bayer's share price traded 3.29 percent higher to Rs 5,671.45 while ITC traded 0.21 percent to Rs 187.60.
Since March, Bayer's share price has gained 95 percent on increased rural demand, doubling investor wealth during the period.
The partnership with ITC has commenced as a pilot project in Mysore, Karnataka, and will gradually be expanded to other geographies across India, Bayer CropScience said in a statement.
Despite many rounds of relaxations in movement, India's shipping industry is facing a crisis
The large-scale exodus of migrant laborers has left cargo congesting ports and container freight stations, even as volumes of cargo processed at major ports including JNPT outside Mumbai in Maharashtra, and in Gujarat was seen to have dropped by 70 percent-80 percent.
Export-import traders caution the situation is likely to continue even until August if the government does not intervene to mobilise more workers. According to EXIM traders CNBC-TV18 spoke to, there is a severe shortage of labour, and drivers at ports, which has stalled movement of cargo from ports to container freight stations (CFSes), as only about 10 percent of the required strength of drivers is currently available. Read more
Ashoka Buildcon's shares rally 9% post Q4 earnings
Ashoka Buildcon's share price gained as much as 9 percent to Rs 58 on the NSE after the company reported consolidated net profit of Rs 134.55 crore for the quarter ended March. The company had posted a net loss of Rs 10.23 crore in the same period last year.
At 12 pm, the stock traded 6.48 percent higher to Rs 56.70.
The total income in the March quarter fell to Rs 1,609 crore as against Rs 1,624 crore in the corresponding period of the previous year.
The company's total order book as on March 31, 2020 stood at Rs 8,379 crore. In its regulatory filing, the company said, "It expects revenue and profitability to be impacted in Q1FY21 due to the COVID-19 outbreak."
Gold loans doing well; NPA situation better than in previous years: CSB Bank
Almost all the small and medium enterprise (SME) customers of CSB Bank are looking to opt for the moratorium on their loans, the banks Managing Director and CEO, CVR Rajendran said in an interview with CNBC-TV18.
This accounts for roughly a fourth of the bank’s loan book, Rajendran said.
On non-performing assets (NPA), he said the situation at present was much better than what it was during the previous years.
He said that nine out of 10 corporates were servicing their loans on time. Watch Rajendran's exclusive interview to CNBC-TV18 here
Lakshmi Vilas Bank hits 5% upper circuit as lender looks to raise Rs 1,500 crore from Clix Capital
Shares of Lakshmi Vilas Bank (LVB) hit an upper circuit of 5 percent in early trade on Tuesday after CNBC-TV18 reported that the lender may be able to raise Rs 1,200- Rs 1,500 crore of investment from AION Capital-backed NBFC Clix Capital, if the proposed transaction goes through. The shares were locked at Rs 16.06, up 5 percent as against Monday's close of Rs 15.30 on the BSE.
The private sector lender on Monday had informed exchanges that it had received a preliminary, non-binding letter of intent (LoI) from Clix Capital Services Private Limited & Clix Finance India Private Limited. The bank said this proposal is subject to completion of due diligence and will be subject to regulatory and other customary approvals. Click here to read more
Alembic Pharma's shares surge 6%, hit 52- week high
Alembic Pharma's share price surged as much as 6 percent to Rs 943.80 per share on the NSE after it received a US FDA approval for Deferasirox tablet, 180 mg. The said drug is used in the treatment of chronic iron overload due to blood transfusions and for treatment of chronic iron overload due in non-transfusion-dependent Thalassemia syndrome.
The Deferasirox tablets have an estimated market size of US$ 53 million for twelve months ending March 2020 according to IQVIA.
At 10:57 am, the stock traded 3.52 percent higher to Rs 921.30.
Can Fin Homes surges over 10% on strong Q4FY20 earnings
Shares of Can Fin Homes rose over 10 percent in the early trade after it reported Q4FY20 profit at Rs 90.91 crore versus Rs 66.14 crore and revenue at Rs 528.85 crore versus Rs 462.93 crore, YoY. Net Interest Income rose 35.1 percent YoY and 10.3 percent QoQ to Rs 186 crore. Gross non-performing assets fell to 0.76 percent as against 0.8 percent, QoQ.
Rupee opens higher against the US dollar as compared to previous close
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking
We still remain hopeful and expect the Nifty not to fall below 9,500 now. Before this, 9,750 – 9,675 can be seen as intraday supports. On the flipside, 9,925 – 10,000 remains to be a sturdy wall and if the index has to regain any strength, it needs to again enter a five-digit territory soon. At present, traders are advised not to get carried away by this global sell-off and should ideally stick to a stock centric approach. The midcap index is interestingly poised and hence if we see a reversal in major indices, the broader market is likely to outperform.
Nifty Bank traded almost 3 percent higher led by ICICI Bank, HDFC Bank and Federal Bank.
Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments
We have opened above 9,950 which is a positive indication - if we can maintain above the levels of 10,050, we can go up to 10,300. The support for the market continues to remain at the 9,700 levels.
Tata Motors slips nearly 2% after reporting a consolidated loss of Rs 9,894.25 crore in Q4FY20
Shares of Tata Motors fell nearly 2 percent in the early trade after the company reported a consolidated loss of Rs 9,894.25 crore for the quarter ended March 2020. The company had reported a consolidated profit of Rs 1,117.5 crore in the March quarter of FY19 and Rs 1,738.3 crore in Q3FY20.
Tata Sons initiates pay cuts to reduce the impact of COVID-19 pandemic on costs; Sources said the group may take 15-20% pay cuts across top brass at Tata Sons, Tata Group companies.
Lakshmi Vilas Bank hits 5% upper circuit after CNBC-TV18 reported that it may receive Rs 1,500 crore investment from Clix Capital
Shares of Lakshmi Vilas Bank (LVB) hit an upper circuit of 5 percent in the early trade on Tuesday after CNBC-TV18 reported that the bank may be able to get Rs 1,200- Rs 1,500 crore of investment from AION Capital-backed NBFC Clix Capital, if the proposed transaction goes through. The shares were locked at Rs 16.06, up 5 percent as against Monday's close of Rs 15.30 on the BSE. The private sector lender on Monday had informed exchanges that it had received a preliminary, non-binding letter of intent (LoI) from Clix Capital Services Private Limited & Clix Finance India Private Limited. The bank said this proposal is subject to completion of due diligence and will be subject to regulatory and other customary approvals. People aware of the matter said told CNBC-TV18 that the bank may receive Rs 1,200- Rs 1,500 crore of investment.