Share Market Highlights: Sensex ends 552 points down, Nifty at 9,813; RIL gains 1.4%, IndusInd Bank dives 7%

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Updated: June 15, 2020 4:54:06 pm

Share Market News Today | Sensex, Nifty, Share Prices highlights: Domestic benchmark indices Sensex and Nifty ended the first trading session of the week down deep in the red. 

Share Market Today, Share Market LiveReliance Industries Ltd shares made a smart recovery in the closing hours of trade to become the top gainer on Sensex.

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic benchmark indices Sensex and Nifty ended the first trading session of the week down deep in the red. Sensex tanked 552 points or 1.63% at 33,228 points. The NSE Nifty 50 was hanging just above the 9,800 mark. Reliance Industries Ltd shares made a smart recovery in the closing hours of trade to become the top gainer followed by Sun Pharma and HCL Tech on the S&P BSE Sensex. On the other side of the table roaming around in the red, the biggest loser was IndusInd Bank, down 7%, followed by ICICI Bank and Axis Bank. Among sectoral Nifty indices, only 2 were in the green while the rest were in the red. Nifty PSU Bank was the biggest gainer despite a gloomy trading session for financials overall.

Partly paid-up rights issue shares of Reliance Industries ended up 8.5% at Rs 700 per share on BSE Sensex after opening the trading session at a premium price of Rs 689 apiece. The shares were expected to list even higher but a weak market on Monday pulled the prices down. The stocks that are partly-paid up as of now, touched a high of Rs 710 per share and a low of Rs 665. The Rs 53,124 crore rights issue of Reliance Industries Ltd (RIL) was the biggest ever to have entered the Indian stock market.

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Highlights

    14:31 (IST)15 Jun 2020
    Buy Eicher Motors company to benefit from product cycle tailwind–one launch per quarter from Q2FY21

    Eicher Motors’ (EIM) Q4FY20 standalone adjusted EBITDA of INR5.0bn (down 28% YoY) came largely in line. We expect the company to benefit from: 1) Product cycle tailwind–one launch per quarter from Q2FY21. 2) Gross profit per vehicle expansion with brunt of BSVI transition already taken (FY20 gross margin down 300bps). With a gradual, staggered price hike (INR3k in April), we expect margin to find some cushion. 3) Bookings now at almost pre-COVID-19 level indicate pent-up demand; sustenance is key though. 4) Its regional mix and customer profile instill confidence that EIM will be beneficiary of rural demand as well tighter financing. With sharp earnings downgrade cycle behind, we raise our target core PE ~10%. Maintain ‘BUY’ with revised TP of INR19,301 (INR17,215 earlier).

    ~ Edelweiss Securities

    14:00 (IST)15 Jun 2020
    Wholesale prices fall in May: Fuel, power get cheaper by 20%; only this group sees surge in WPI

    As industries and businesses slowed down during the nationwide lockdown, the demand for fuel and power took a major hit, deflating prices by around 20 per cent on-year in May 2020. The prices of crude petroleum and natural gas fell 23.18 per cent in May, compared to March 2020, according to the Ministry of Commerce & Industry. However, the prices for coal and electricity remained unchanged during this period. Amid slow economic activity and low demand, the overall wholesale prices in the month of May also saw a steep fall of 3.21 per cent. In the same month last year, WPI rose by 2.79 per cent.  

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    13:34 (IST)15 Jun 2020
    Only four equity share on BSE Sensex in green

    ONGC, Mahindra & Mahindra, Sun Pharma, and HCL tech were the only four stocks that were seen trading in the green among the 30 constituents of the index. Financial were seen suffering as the losers on Sensex were IndusInd Bank, ICICI Bank, Axis Bank, and  State Bank of India.

    13:08 (IST)15 Jun 2020
    70% fall in profits but analysts are still bullish on Shriram Transport Finance shares; here’s why

    For a non-banking finance company that has 68% of its customers, in value terms, under the moratorium, and has reported a 70% fall in profits on-year, a bear market such as the present one would not have been an ideal place. However, Shriram Transport Finance, despite a weak March quarter performance is currently a favourite of analysts on Dalal Street. Expectations are so high that the stock is being pegged to even have an upside of 50% from current levels. Shriram Transport Finance is considered as one of the better placed firms among non-bank lenders and the partial-recoveries it made during March through May might as well help it survive.

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    12:52 (IST)15 Jun 2020
    Angel Broking on SBI Life Insurance OFS

    We believe the Indian Life Insurance industry is in a phase of high growth and lower penetration will ensure that the growth remains higher for next couple of years. SBI Life, with its strong brand name and wide distribution network, is one of the best plays for Indian Life Insurance industry. Further, historically, insurance products have seen growth post-pandemic scenario. At the cut off rate Rs 742.6, the offer for sale is offered at 2.7x its Embedded Value of Rs 27,640cr. We believe SBI Life will continue to gain market share considering its bancassurance strength and operational efficiency. Hence, we recommended investors to “SUBSCRIBE” to the issue with long term perspective. ~ Angel Broking

    12:22 (IST)15 Jun 2020
    Hold Havells | Target price: Rs 480 ~ Emkay global

    Havells reported weak revenues in FY20, impacted by 1) a high base of FY19, 2) weak macro environment, and 3) slower growth in ECD. Despite a fall in EBITDA and PAT, OCF increased 61% on better working capital management. A recent rally in the stock price in anticipation of sustained pent-up demand and channel refilling seems to be discounting the optimism. We would look for a better entry price and maintain a Hold rating, with a TP of Rs480 and UW in EAP.

    11:47 (IST)15 Jun 2020
    Buy Hindalco | Target price: Rs 190 ~ Motilal Oswal

    Hindalco’s (HNDL) 4QFY20 results highlight the potential for cost reduction in its India business as India EBITDA rose 18% QoQ despite weak LME. Aluminum costs declined 5% QoQ in 4QFY20 and should decline another 4- 5% QoQ in 1QFY21, partly off-setting the impact of lower LME. We maintain our FY21/FY22E EBITDA estimates and reiterate our Buy rating on expected deleveraging in FY22E supported by lower capex, cost control and resilient volumes (exports and strong beverage can demand).

    ~ Motilal Oswal

    11:19 (IST)15 Jun 2020
    Two large transactions could be in offing in the near term

    As disclosed earlier, RIL is working on two other large transactions—(1) sale of 20% stake in oilto-chemicals (O2C) business to Saudi Aramco and (2) monetization of fiber InvIT. RIL approved a scheme of arrangement to carve out the O2C business in a separate undertaking, subject to statutory approvals, presumably to facilitate the transaction. Investors’ concerns on delays or valuation renegotiation are not unwarranted given cyclical headwinds; however, (1) strategic significance for downstream access for Aramco has only gone up, in our view, amid recent developments in oil market and (2) tax cuts in India post announcement of this deal and Rupee depreciation (for costs) may help in partly bridging the gap, if any. The monetization of fiber InvIT has been long delayed perhaps due to size and nature of asset; however, we would watch out for progress on this front now, given enhanced attractiveness of infrastructure for FTTH as well as enterprise businesses in a post-Covid world and its quasi-backing by Facebook and other large PE investors who are investing in JPL, whose subsidiary will be servicing lease liabilities. ~ Kotak Securities 

    11:08 (IST)15 Jun 2020
    Reliance Industries Ltd share jump 1.5% from day's low

    Reliance Industries Ltd saw its shares jump 1.58% from the day's low to trade at Rs 1,583 per share. The stock was down 0.61% in the initial hours of trade. The Mukesh Ambani-led firm has now managed to attract investors from across the globe, selling over 22% equity stake in Jio Platforms for Rs 1 lakh crore. 

    10:52 (IST)15 Jun 2020
    Nifty rally may not continue if this doesn’t happen; IIFL Securities MD tells where to invest | INTERVIEW

    Benchmark equity indices BSE Sensex and NSE Nifty 50 have surged up to 32% from the lows of March, but may not gain much from here, unless supported by strong economic growth, said R Venkataraman, MD, IIFL Securities in an interview with Kshitij Bhargava of Financial Express Online. India needs the growth momentum to recover to pre-coronavirus levels for the share market rally to sustain. Venkataraman doesn’t expect a V-shaped recovery, and hence expects stock indices to face resistance at current levels. With growth options likely limited in the stock market, for now, Venkataraman reveals the sectors that can outshine; he further tells what needs to be done to bring foreign investors back into Indian equities in bulk.

    Here are the edited excerpts from the interview:

    10:22 (IST)15 Jun 2020
    Sensex, Nifty start the week down in red; here's what keeping share markets on the edge today

    Domestic benchmark indices started the week down in the red following their global peers who were seen slipping on Monday morning. S&P BSE Sensex started down 307 points or nearly 1% 33,564 points while the NSE Nifty 50 was hanging around the 9,919 mark. “The market has opened with a gap down this morning. 9700 is the support for the week - we need to keep above it to avoid further breakdown! If we do trigger this level, we can slide down to Friday's low which was around 9550. On the upside, we need to trade above 10050 to start an upward journey. If we can cross 10050, we could go up to 10250 and then 10400,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

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    10:11 (IST)15 Jun 2020
    Volatility returns returning to haunt stock markets?

    The fear gauge of Indian stock markets has been hovering around the same levels Since May 21, and today jumped up 3 levels. Analysts have warned this might not be a good sign as India VIX has failed to drop any further in the last 20 trading sessions. “India VIX saw mild uptick but remained below 32 mark, however, we believe volatility to continue as gaps for market opening likely to keep participants on edge,” Yes Securities said. 

    09:52 (IST)15 Jun 2020
    Buy Mahindra & Mahindra | Target Price: Rs 585 ~ Motilal Oswal

    Mahindra & Mahindra (MM)’s 4QFY20 performance beat was led by a better mix and lower RM cost. While MM’s core business would recover faster, the focus on tightening capital allocation could act as a rerating catalyst.  We upgrade FY21/FY22E EPS by 8%/2% to reflect an improving mix. Improving core business and possible course correction on capital allocation would drive stock performance as valuations are still cheap. Buy, with TP of ~INR585.

    ~ Motilal Oswal

    09:30 (IST)15 Jun 2020
    Nifty Media top gainer among sectoral indices

    Nifty Media was up 2.60% on Monday morning. TV18 Broadcast Limited was up  4.4% followed by Network18 and Dish TV. All the 14 constituents of the index were up in the green helping the index shoot up. 

    09:26 (IST)15 Jun 2020
    India gets its first natural gas exchange; trading to begin at these hubs initially

    In an effort towards enabling gas market and fostering gas trading in the country, the government will be launching India’s own natural gas trading platform. Indian Gas Exchange (IGX) will be launched by Oil Minister Dharmendra Pradhan on Monday to begin with natural gas trading, PTI reported citing official sources. The exchange will be first such platform in the country for local market price discovery through demand-supply matching in a transparent way. Multiple buyers and sellers will trade in spot and forward contracts at designated physical hubs. The contracts traded will be for compulsory specific physical delivery while settlement of the trade will be subject to the condition that these contracts are non-transferable in nature and without any netting-off thereby.

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    09:25 (IST)15 Jun 2020
    bank Nifty outlook by ICICI Securities

    The Bank Nifty reversed its trend sharply from the support line of 19500 and extended its recovery up to 20500. Most leaders from private banks witnessed a recovery. On the option front, 19500 Put and 21000 Call hold significant OI. This suggest the Bank Nifty may largely trade between the range of 19500 and 21000 in coming days. ~ ICICI Securities

    09:24 (IST)15 Jun 2020
    Sensex down 307 points on Monday morning

    Sensex started the week down 307 points on Monday morning with private sector lender IndusInd bank being the biggest loser, down 2.75% followed by Tata Steel and Larsen and Toubro.

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