Share Market Highlights: Sensex ends 453 pts up from day’s low, Nifty settles at 9,391 pts; IndusInd Bank jumps 16%

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Despite a 16% fall in profits, private lender IndusInd Bank was the top gainer on S&P BSE Sensex, ending the day up by 16.85%.

Share Market Highlights: Sensex ends 453 pts up from day’s low, Nifty settles at 9,391 pts; IndusInd Bank jumps 16%

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic benchmark indices ended the day up 453 points in a session that was marred by volatility. S&P BSE Sensex was 371 points or 1.17% higher at 32,114 points, while the broader 50-stock NSE Nifty gained 119 points or 1.29% to sit at 9,401 points. Despite a 16% fall in profits, private lender IndusInd Bank was the top gainer on S&P BSE Sensex, up by 16.85%, followed by Bajaj Finance, up 9.3% and HDFC, up 8%. Sun Pharma was the worst-performing stock, down 3%. Among the sectoral indices on the National Stock Exchange, private banks continued to shine sharp as the Nifty Private Bank index surged 3.15%, followed by Nifty Bank and Nifty Financial Services.

Mukesh Ambani led Reliance Industries Ltd (RIL), in an attempt to become a net-zero debt company, is considering a rights issue of equity shares. Reliance Industries, in a filing to the stock exchanges, said that the board will consider a rights issue when it meets on April 30. RIL is India’s most valuable listed company with a market capitalization of Rs 9.25 lakh crore. Earlier, last year, Mukesh Ambani had disclosed his goal of making the company a zero-net-debt firm. Recently RIL sold a 10% equity stake in its telecom arm, Reliance Jio to Mark Zuckerberg’s Facebook for Rs 43,574 crore.

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16:21 (IST)28 Apr 2020
Sensex, Nifty end with gains, helped by rallying banks, financials; here’s what moved share markets

For the second day-straight domestic benchmark indices ended the day in green, despite a volatile trading session. S&P BSE Sensex jumped 453 points from the day’s low to end the session 371 points or 1.17% higher at 32,114 points. The broader NSE Nifty-50 gained 98.6 points or 1.06% to finish the trading session at 9,380 points. The rally, led by banks and financials, saw private-sector lender IndusInd Bank gain 15.11% despite reporting a 16% fall in profits the previous day. Sun Pharma slipped 3.27%, followed by NTPC, Nestle, and HCL Tech.

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14:49 (IST)28 Apr 2020
Urgent need for measures to prevent economy from falling into slumber, says industrialist Sajjan Jindal

Industrialist Sajjan Jindal on Tuesday said measures are needed to be taken as early as possible to prevent the country’s economy from falling into a slumber. The nationwide lockdown has had a positive effect in containing the coronavirus, but it is imperative to also move focus on economic wellbeing, the JSW Group Chairman said.

14:24 (IST)28 Apr 2020
IndusInd Bank share price surges 11%; here’s why brokerages are bullish despite fall in profits

IndusInd Bank share price jumped up by over 11% during trade on Tuesday despite the private lender reporting a 16% fall in profits on Monday. The fall in profits has, however, not deterred brokerages from recommending investors to buy IndusInd Bank stocks. With 44% on-year growth in net interest income, IndusInd Bank’s profitability is not going unnoticed and neither is its strong growth in retail assets, up by 20%. The scrip has shows recovery its March lows and is now down 69% year to date, with a 10% recovery recorded in the month of April.

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13:53 (IST)28 Apr 2020
Reliance Industries rights issue size: Mukesh Ambani firm may raise up to this much amount to cut debt

Mukesh Ambani’s Reliance Industries Ltd’s capital raising plan could see the oil-to-telecom conglomerate fetch up to Rs 50,000 crore from the proposed rights issue. India’s most valuable listed company, with a market capitalization of Rs 9.25 lakh crore, will consider a rights issue of equity shares in its board meeting scheduled for 30 April 2020. The move could help Reliance Industries Ltd (RIL) march towards realizing Ambani’s goal of making the company a zero-net-debt firm by March next year. Currently, RIL has a gross debt of over Rs 3 lakh crore and a net debt of Rs 1.5 lakh crore.

13:01 (IST)28 Apr 2020
ADD IndusInd Bank; target price: Rs 575: HDFC Institutional Research

IIB may face serious near-term challenges- (1) asset quality risks stemming from its exposure to risky sectors (microfin., telecom, NBFCs, CRE etc.) and (2) scaling its granular deposit base. Higher provisions on anticipated stress will dent RoE. Together with heightened systemic risk, these underpin our measly assigned multiple (1x FY22E ABV)

HDFC Institutional Research

12:21 (IST)28 Apr 2020
Nifty Pharma slips down 1.7%

With all but one constituent of Nifty Pharma trading with gains, the sectoral index slipped 1.7% on Tuesday morning. Glenmark and Lupin are down over 3% while Cipla and Sun Pharma are down over 2%. Piramal Enterprises was up 0.63%.

11:57 (IST)28 Apr 2020
All is NOT well with India’s economy: GDP growth may fall to lowest in nearly 30 years

Coronavirus may show India a phase of an economic downturn that the country has not seen in decades. After various agencies cut India’s growth forecast for the current fiscal, India Ratings and Research has further cut FY21 GDP growth forecast to 1.9 per cent, which will be the lowest GDP growth in the last 29 years, that is, after FY92. Ind-Ra had earlier estimated a forecast of 3.6 per cent by the end of March, however, after considering the effect of lockdown, it revisited its growth estimates. Even as the concerns of the sagging economy has widespread by now, addressing the Chief Ministers of various states yesterday, Prime Minister Narendra Modi reportedly said that there is no need to worry about the economy as the fundamentals are strong.

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11:00 (IST)28 Apr 2020
Reliance Industries rights issue could be around Rs 50,000 crore: Sanjiv Bhasin, Director IIFL Securities

Reliance Industries has a net debt of Rs 1.5 lakh crore and Rs 3 lakh crore is on the book. Maybe something in the range of Rs 50,000 crore could be in the offing through the rights issue, said Sanjeev Bhasin, Director IIFL Securities. ‘In the long run, RIL will no longer have the tag of an energy play it will be a technology play on the lines of Amazon,’ he added.

10:51 (IST)28 Apr 2020
Buy IndusInd Bank; Target price: Rs 530 : ICICI Securities

IndusInd Bank’s Q4FY20 earnings were characterised by abnormally higher credit cost (>450bps), elevated slippages (~4% run-rate dominated by corporate accounts) and run-down in deposits (of ~7%), depressing earnings momentum equivalent to mere 0.4% RoAs. Positively, core operating performance was strong, with NIMs improving 10bps (skewed towards build-up in retail), holding on its forte in MFI, provision coverage being shored up to 63% (up ~20% points in the last four quarters) and Covid-19 related risks partially provided (albeit mere 11bps). The management articulated segment-wise nuances as to how it is appropriately equipped to defy the challenges in MFI, CV, business banking, gems & jewellery, real estate, telecom etc. However, on our base case assumption of the cost of economic dislocation being higher, we anticipate its loan growth to moderate to sub-10%, NIMs to contract by ~15bps (focus on quality) and credit cost to be still elevated at 2.4% in FY21. This leads us to cut earnings by 4% and prune target multiple to 1.1x (valuation reset leading to revised TP of Rs530). The stock has eroded its 2/3rd value in the last three months due to perceived risk in near-term earnings. Valuations at 0.8x P/ABV FY21E render risk-reward favourable. Maintain ‘BUY’.

09:59 (IST)28 Apr 2020
Buy Tata Consumer Products in range Rs 330-340; Target price: 405; Stop loss Rs 297: ICICI Securities

Despite broader weakness, select consumption stocks have been witnessing continued buying interest and are outperforming the market significantly. Tata Consumer Product (erstwhile Tata Global) had witnessed significant buying interest in the last six months of 2019. After recent market declines, it has resumed its upward journey. From an open interest point of view, the OI in the stock is relatively low compared to the last couple of months as visible across the market. However, with the ongoing price performance, we believe open interest will be gradually added in the stock for the May series, which should be positive for further momentum in coming sessions.
ICICI Securities

09:57 (IST)28 Apr 2020
Nifty 50 set for biggest shuffle in recent history? These shares could enter index this year

The Nifty 50 index could soon see Bharti Infratel, Vedanta Ltd, Zee Entertainment, Tata Motors, and GAIL India exit from the index owing to the low average free-float market capitalization, and replaced with other heavyweights, according to a research report. Top contenders to replace these shares in the Nifty 50 index include Radhakishan Damani’s Avenue Supermarts, API manufacturer Divi’s Laboratories, private insurer HDFC Life, FMCG player Dabur, and PSU stock SBI Life, brokerage and research firm ICICI Direct said in the report. Nifty has already seen the exit of troubled private sector lender Yes Bank and the inclusion of Shree Cements earlier this year.

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09:53 (IST)28 Apr 2020
Reliance Industries share price falls as company considers rights issue

Mukesh Ambani’s Reliance Industries saw its share price tank over 2% in the initial minutes of trade on Tuesday as the company announced it is considering a rights issue. Any further action in this context will be taken in the board meeting of the company on April 30,

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09:50 (IST)28 Apr 2020
Reliance Industries rights issue soon, as Mukesh Ambani moves closer to zero debt target

Reliance Industries Ltd, on a quest to become a net-zero-debt company, has said that it will consider a rights issue of equity shares in its board meeting on 30 April 2020. Mukesh Ambani’s RIL is India’s most valuable listed firm, with a market capitalization of Rs 9.25 lakh crore. It is also one of the highest indebted companies in India, with a gross debt of over Rs 3 lakh crore, and net debt of over Rs 1.5 lakh crore. It is also one of the most cash rich companies with over Rs 1.3 lakh crore cash in hand. Earlier, in August last year, RIL Chairman Mukesh Ambani said he has pledged to make the company a ‘zero-net-debt’ firm.

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First published on: 28-04-2020 at 09:46 IST