Share Market News Today | Sensex, Nifty, Share Prices Hgihlights: Domestic benchmark indices opened flat on Wednesday, but staged a massive recovery from the day’s low to finish in the green. S&P BSE Sensex started the day down by 37 points but later gained 742 points or 2.32% at 31,379 points, while the broader NSE Nifty-50 settled just below the 9,200 mark gaining 205 points or 2.29% at 9,187 points. Out of the 30 constituents that make up the S&P BSE Sensex 27 were in the green, led by Reliance Industries with a 9.9% jump, followed by Asian Paints, up by 5.3%. On the other hand, ONGC was the biggest loser down by 5.56% followed by L&Twhich fell 1.68%. Among sectoral indices, only Nifty Realty ended the day in the red. Nifty Media was the biggest gainer, up 7% and Nifty FMCG, up 2.7%.
It was the largest deal that we have seen this year, Mark Zuckerberg’s Facebook joined hands with India’s richest man Mukesh Ambani. The deal will see Facebook pick up a 9.99% equity stake in Reliance Jio for Rs 43,574 crore. This is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India. The deal values Reliance Jio as one of the five largest companies in India by market capitalisation.”Jio’s digital new commerce platform — and WhatsApp will empower nearly 3 crore small Indian kirana shops to digitally transact with every customer in their neighbourhood. This means all of you can order and get faster delivery of day-to-day items from nearby local shops,” Mukesh Ambani said in a video message announcing the deal.
Domestic benchmark S&P BSE Sensex staged a massive 800 point recovery from the day’s low to finish at 31,379 points. The 50-stock NSE Nifty ended the session 205 points or 2.29% higher at 9,187 points.
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The impact of COVID-19 would not be restricted to just 4QFY20/1QFY21; it would have implications for the major part of FY21. We have adjusted our models factoring in the impact of COVID-19 into our numbers. Accordingly, we have cut our revenue estimates by 47%/22% and EBITDA estimates by 95%/40% for FY21/22E for IHIN. We have a Buy rating on IHIN with SOTP-based TP of INR106. We have cut our revenue estimates for LEMONTRE by 50%/32% and EBITDA estimates by 73%/39% for FY21/22E. In our view, high debt remains a key overhang for the stock. However, note that capex for all LEMONTRE’s own hotels has already been completed, barring the Mumbai Airport hotel. We have a Buy rating on the stock with TP of INR23: Motilal Oswal
The deal between Facebook and Reliance is a positive for Reliance Industries coming under the current trying times. The two can combine their unique strengths using their network of users, share their data, develop apps for social, digital payments, gaming, shopping, flight and hotel bookings, etc. The combination of whatsapp expertise and user base, R Jio’s vast subscriber base and Facebook’s deeply entrenched userbase and technology is theoretically a win-win for all. Reliance could use the proceeds of this transaction to cut its debt and overcome doubts about debt reduction process following the oil price crash and doubts over its deal with Saudi Aramco. Clearance from the Govt for the deal will be crucial. Reliance’s stock price has risen post the announcement by 13%+, compared to 12.2% rise in Aug 2019 post the announcement of a bigger deal with Saudi Aramco. The reaction of its stock price to this development could be over in a couple of days and the stock could then fall in line with the overall market: Deepak Jasani, Head of Research, HDFC Securities
Dr. Reddy's Laboratories jumped over 1.3% to touch a fresh 52-week high of Rs 4,094 per share. Ruchi Soya gained 5% to trade at Rs 308.7 per share, a new high for the stock. Both, Dr. Reddy's and Ruchi Soya had hit new highs yesterday as well.
ACC reported Q1CY20 EBITDA growth of 10% YoY (12% ahead of estimate) even as the impact of COVID-19 dragged volumes 12% YoY (4% below expectation). While realisation too disappointed (rising just ~1% QoQ versus 3.5% estimate), cost control drove a decent showing. Total cost/t dipped 2% YoY—3% lower than expected. Variable cost/t dipped >4% YoY (5% QoQ), but ACC kept a tight leash on fixed cost too, bringing it down by 8% YoY. Factoring in the COVID-19 impact, we had recently slashed ACC’s EBITDA 36% for CY20E and 6% for CY21E: Edelweiss Securities
Reliance Industries Ltd., helped by mega Facebook-Jio deal saw its share price jump 10% to touch the upper circuit at Rs 1,359 per share. The scrip has maintained its position as the top gainer on S&P BSE Sensex since the opening bell on Wednesday.
The mega Rs 44,000-crore deal involving Mark Zuckerberg’s Facebook buying 10% equity stake in Mukesh Ambani’s Jio has made Reliance Industries’ telecom arm one of the top five, behind only the four largest listed companies in India by market capitalisation. The deal values Reliance Jio at a whopping Rs 4.62 lakh crore. With such a massive valuation of Reliance Jio, only four listed companies can claim to be more valuable, namely, Reliance Industries Ltd (Jio’s parent firm); Tata group’s TCS; India’s largest private bank HDFC Bank; and FMCG giant Hindustan Unilever.
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As Nifty Media maintains its position as the best performing sectoral index on NSE Nifty today, TV18 Broadcast Limited surges 14% to top the index. The scrip is trading at Rs 19.55 after having opened at Rs 18.80 today.
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The COVID-19 pandemic has thrown a spanner in the works for bearings players given the largely OEM nature (two-thirds) of their automotive sales. Furthermore, supressed industrial activity (low utilisation and infra spend) would impact their industrial sales. That said, strong balance sheets (net cash) would help organised bearings players sustain market shares in our view. All in all, we are forecasting a contraction in their FY21E sales, on top of a plunge in volume in FY20. We are not building in a release of pent-up demand in FY22; hence, absolute volumes in auto OE would remain below the FY18/19 peak. We are slashing FY21/22E EPS by ~30% each to factor in lower auto OE and industrial sales.
We had a muted session on Monday but overnight there was unprecedented fall seen in Crude oil prices which spooked traders’ fraternity across the globe. As a result, our markets opened with more than 200 points downside gap and then kept sinking to test the 8900 mark. Due to some mild recovery towards the fag end, the Nifty eventually closed tad below 9000 by shedding three percent as compared to the previous close. If things had not worsened with respect to Crude, 9100 would have acted as a support. But yesterday we opened well below it and then continued the selloff. Going ahead, 8900 - 8820 would be seen as a crucial support zone; whereas on the upside, 9044 followed by 9100 is likely to act as immediate hurdles. Only a sustainable move outside the range of 8820-9100 would trigger the directional move. At present, traders are advised to stay light and should continue focusing on individual themes. Yesterday, once again after a brief pause, Pharma stocks kept buzzing and hence, one can look to accumulate marquee names within this space: Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking
We upgrade Aurobindo to Buy from Hold as the regulatory risk recedes. Over the last two months, USFDA has classified two key plants – Unit VIII and Unit IV – as VAI, a change in trajectory over CY19, which saw adverse classifications in four plants: Emkay Global
Facebook investment of Rs 436bn for 9.9% stake in Jio Platforms Limited (JPL) implies an Equity value of Rs 4.4tn. Enterprise Value stands at Rs 4.62tn pre-money as per company release. Therefore, JPL net debt is ~Rs 220bn pre-transaction; net cash post transaction of ~Rs 216bn. Thus post-transaction Enterprise value of JPL is ~Rs 4.2tn. This is marginally (3%) above our estimate of Jio’s EV of Rs 4.1tn @ 10x FY22E.
Domestic benchmark indices, S&P BSE Sensex and NSE Nifty-50, danced between gains and losses on Wednesday. After opening slightly higher than yesterday’s closing levels, S&P BSE Sensex swung into the red, down 270 points only to recover later.
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L&T Construction awarded contracts (ranging from | 1000- 2500 crore) for its various businesses including an order from Bhel to manufacture and supply heavy material handling equipment, EPC order from a unit of Hindalco to revamp its copper smelter complex at Dahej and a Smart City project for Jhansi city in Uttar Pradesh: ICICI Direct Research
While the recent chain of setbacks on the cGMP front will continue to weigh, a positive outcome like this is likely to provide a silver lining to a stock that is available at ~11x FY22E (~30-40% discount to its historical band and ~50% discount to Nifty Pharma). We ascribe a target price of | 770 valuing it 13x FY22E EPS of | 59.4. We upgrade the stock from HOLD to BUY to incorporate the significant booster.
Share price of domestic oil producer ONGC fell 7.58% on Wednesday owing to weak crude oil prices. ONGC, which produces about 65% of domestic crude oil, is likely face under-recoveries to the tune of $1.8 billion in FY21, if the Indian basket of crude averages in the year at $25/barrel. This assumes that ONGC produces and sells 24 million tonnes (MT) of crude oil in the current fiscal, roughly the same as last year.
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RBL Bank was down 4.44%, IndusInd Bank slipped 2.2% while ICICI Bank was down 1.5%. Nifty Bank, Nifty PSU Bank and Nifty Private Bank were all down below 1% during the initial few minutes of trade.
Share price of Reliance Industries opened with massive gains of over 7% only to witness some profit booking at the levels. The stock price has jumped owing to a Rs 43,574 crore deal that Reliance Jio has signed with Facebook. The deal will see Facebook pick 9.99% stake in the company.
Mukesh Ambani’s Reliance Industries Ltd and Mark Zuckerberg-founded Facebook have signed a mega deal of Rs 43,574 crore, giving the US-based social media firm a 9.99% equity stake in homegrown mobile network Jio. The two companies now plan to leverage their joint reach with RIL’s pet project JioMart and Facebook-owned Whatsapp to help connect kirana stores with consumers. “In the very near future, JioMart — Jio’s digital new commerce platform — and WhatsApp will empower nearly 3 crore small Indian kirana shops to digitally transact with every customer in their neighbourhood,” RIL chairman Mukesh Ambani said in a video statement in the morning. For customers, it means that they can order and get faster delivery of day-to-day items from nearby local shops, Mukesh Ambani added. Facebook and RIL now together look to empower India’s digital economy.
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The government is considering a proposal to create a Rs 10,000-crore fund to buy up to 15% equity in crisis-hit, but otherwise well-rated, MSMEs that will list on bourses, an official source told FE. The MSME ministry has submitted this plan with the finance ministry.
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Facebook-Reliance Jio USD 5.7 billion (Rs 43,574 crore) deal: Facebook has agreed to buy a 9.99% equity stake in Mukesh Ambani’s Reliance Jio, with an eye on a innumerous small businesses and potentially the largest digital customer base of 1.3 billion users.
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