Market HIGHLIGHTS: Sensex leaps 520 points, Nifty ends near 10,000; financials, bank stocks lead the rally

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Updated: June 2, 2020 6:09:01 pm

Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: BSE Sensex and Nifty 50 index settled with major gains on Tuesday led by buying in index heavyweights such as HDFC, Kotak Mahindra Bank and HDFC Bank

Share Market Today, Share Market LiveExcept for Nifty FMCG index, all the sectoral indices finished trade in green

Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 index settled with major gains on Tuesday led by buying in index heavyweights such as HDFC, Kotak Mahindra Bank, HDFC Bank, ICICI Bank and Reliance Industries (RIL). Sensex gained 522 points or 1.57 per cent to end the session at 33,825 while the broader Nifty 50 index advanced 156 points or 1.56 per cent to close at 9,979. Out of 30 Sensex stocks, 24 scrips traded in positive territory. Bajaj Finance was up 8.33 per cent and lead the pack of gainers on Sensex. Kotak Mahindra Bank, IndusInd Bank, HDFC and Axis Bank were among other gainers. While Maruti Suzuki was the top Sensex laggard, down 1.74 per cent, followed by ITC, NTPC, Nestle India, Hero MotoCorp and Bharti Airtel. Except for Nifty FMCG index, all the sectoral indices finished trade in green. Nifty Realty index jumped nearly 5 per cent led by gains in Mahindra Lifespace Developers, Brigade Enterprises and Godrej Properties. Similarly, Nifty Financial Service advanced 3.18 per cent with Bajaj Finserv, Bajaj Finance and Kotak Mahindra Bank as top gainers.

In a major setback, Moody’s today downgraded India’s sovereign credit rating by one notch to ‘Baa3’, while maintaining its negative outlook, citing risks from sustained low growth, among other reasons. ‘Baa3’ is the lowest investment-grade rating on Moody’s credit rating scale.

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    15:48 (IST)02 Jun 2020
    Moody’s cuts HDFC Bank, SBI to Baa3; takes rating action on 11 banks a day after India downgrade

    A day after it downgraded India’s sovereign rating to Baa3, rating agency Moody’s today downgraded HDFC Bank and State Bank of India’s (SBI) long-term local and foreign currency deposit ratings to Baa3, as it announced rating action on 11 Indian Banks. The long-term issuer rating of Export-Import Bank of India (EXIM) has also been downgraded by Moody’s. With this, the deposit ratings of these banks are now at the same level as India’s sovereign rating. Interestingly, Moody’s has changed Punjab National Bank’s (PNB) rating to positive from stable, while affirming PNB's long-term local and foreign currency deposit ratings at Ba1 and its BCA at b1.

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    15:21 (IST)02 Jun 2020
    ‘Govt must replace red-tapism with red carpet to attract firms exiting China and for MSMEs to benefit’

    In the post-Covid-19 world order, India can position itself as an alternative to China as a preferred destination for foreign companies to invest and set shop providing the necessary impetus to micro, small and medium enterprises and reinvent itself as a manufacturing hotspot. Recently, Japan announced to set up $2.2 billion stimuli to help out Japanese companies moving out of China followed by the US also expressing a similar sentiment to shift its manufacturing companies out of China. This indicates a retaliatory wave or mindset against the country. There is a strong anti-business sentiment against the Asian giant building across various countries that can unwittingly work in India’s favour.

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    15:09 (IST)02 Jun 2020
    Sensex, Nifty surge in late afternoon deals

    The 30-share Sensex was trading at 33,778.73, up 475.21 points 1.43 per cent while the broader Nifty 50 index was trading near 10,000-mark.

    Check live Sensex, Nifty levels

    14:47 (IST)02 Jun 2020
    Brokerage view on Britannia Industries

    We increase Britannia’s (BRIT) estimates by 12% and raise our TP to Rs3,900 (from Rs3,250), factoring in stronger-than-expected growth trends in its portfolio, acceleration in market share gains and multiple tailwinds for higher growth and margin expansion. BRIT is emerging as the biggest beneficiary from the disruption, as packaged foods consumption is growing strongly, led by higher in home consumption and lesser avenues for out-of-home consumption. The shift from unorganized/street food to packaged foods may sustain even post lockdown given higher preference for hygiene and trusted brands: Emkay Global Financial

    14:43 (IST)02 Jun 2020
    Britannia Industries shares gain ahead of Q4 results

    Britannia Industries share price hit a 52-week high of Rs 3,479.55 apiece on BSE in Tuesday's session ahead of its March quarter results announcement. In just over two months, stock price jumped from Rs 2,100 to Rs 3,479.

    Check live prices: Britannia Industries

    14:09 (IST)02 Jun 2020
    Brokerage view on Nestle India

    We initiate coverage of Nestle India with a Neutral rating and a TP of INR17,250. We value Nestle at a P/E of 65x on March’22F EPS, at a 20% premium to its past three-year average multiple, as we expect robust long-term growth, high earnings visibility and strong pricing power. However, at 66x CY21F EPS, we think the valuation is factoring in these positives: Nomura

    14:05 (IST)02 Jun 2020
    PM Modi’s Rs 3 lakh crore MSME loan scheme sanctioned this much amount in just one day

    Public sector banks have sanctioned loans worth Rs 3,200 crore in a single day through the Rs 3 lakh crore collateral-free loan scheme for MSMEs, according to Finance Minister Nirmala Sitharaman. “On a single day 1 June ‘20, #PSBs have sanctioned collateral-free loans worth Rs 3,200 crore through the Emergency Credit Line Guarantee Scheme,” the minister’s office tweeted on Monday. The scheme was approved by the cabinet, chaired by PM Modi, last month. “Businesses/MSMEs have been badly hit due to Covid-19 (and) need additional funding to meet operational liabilities built up, buy raw material and restart business,” Sitharaman had said while announcing the Rs 20 lakh crore economic package.

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    13:40 (IST)02 Jun 2020
    Brokerage view on banking sector

    Banking sector is expected to report stable NPA trend in 1HFY21 despite the deteriorating economic scenario. Further, we expect stable operating profit growth in 1HFY21 led by the healthy growth in Net Interest Income. Almost all major banks have reported strong trend in NIM’s in 4QFY20 and we expect this trend to continue at least till 2QFY21 as cost of the fund are coming down sharply as compared to Yield on Funds. Our Top Pick – ICICI Bank followed by Kotak Bank, HDFC Bank and SBI: Asutosh Mishra, Head of Research - Institutional Equity at Ashika Stock Broking.

    13:33 (IST)02 Jun 2020
    Buy V-Mart Retail | Target Price Rs 1,932 ~ Edelweiss Securities

    V-Mart Retail (V-Mart) reported larger-than-expected declines of 3.4% YoY in revenue and 63% YoY in comparable EBITDA. Quarterly performance through 15 March was healthy (revenue/SSSG growth of 29%/8% YoY), but the lockdown dragged overall SSSG to 18% YoY (notional sales loss of about INR750mn). Management expects revenue to pick up gradually (with 70% stores having re-opened and witnessing 40% footfall) and would not shy away from severe cost control (employee and rental costs). We believe V-Mart’s relatively strong balance sheet (about INR55mn in cash and INR1.5bn of open bank funding lines) will hold it in good stead. We reiterate V-Mart is a play on rural recovery and value retailing, and would potentially outshine other value retailers in the ongoing crisis. Maintain ‘BUY’ with a TP of INR1932.

    ~ Edelweiss Securities

    13:17 (IST)02 Jun 2020
    Buy Voltas | Target price Rs 600 ~ Motilal Oswal

    We expect the system level inventory to normalize by Nov-Dec’20, and hence, FY22E should turn out to be a normal year. We cut our FY21/FY22E earnings by 28%/6% as FY21 is likely to be a washout year. We have built in lower revenue and profitability for the EMP business given the weak macro environment for the Projects’ business. However, the cut in our TP is limited as EMP business commands lower valuation multiple. Our FY20-22E revenue/EBITDA/adj. PAT CAGR stands at 7%/8%/8%. The stock has corrected 27% from its peak levels due to higher system level inventory. However, this is an industry level issue and on a relative basis, we expect VOLT to continue outperforming peers in the RAC segment. VOLT remains the best play on the under-penetrated AC market in India. Maintain Buy with revised TP of INR600 (earlier: INR620). 

    ~ Motilal Oswal

    12:56 (IST)02 Jun 2020
    Investors lose $543 billion in Modi 2.0, erase more wealth than any other country except Britain

    The Indian stock market’s honeymoon with Prime Minister Narendra Modi’s government is under strain. In the first year of Modi’s second term, India has erased more shareholder wealth than any other country on the planet, except Brexit-swayed Britain. That contrasts with his first term of five years, when his reputation as an economic reformer fueled an increase of almost 50% in equity market capitalization.

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    12:52 (IST)02 Jun 2020
    Sensex, Nifty overlook Moody’s rating downgrade; here’s why share market benchmark jumped 400 points

    Indian stock market indices BSE Sensex and Nifty 50 were trading with excitement on Tuesday, overlooking Moody’s first credit rating downgrade in nearly 22 years- the last cut was in 1998 after India’s nuclear test. Moody’s Investors Service trimmed the rating from Baa2 to Baa3 and maintained its negative outlook on the back of risks from sustained low growth. In the session so far, the 30-share Sensex touched the day’s high of 33,729, an up move of over 1 per cent, while the broader Nifty 50 index reclaimed its crucial 9,990-mark and hit an intraday high of 9,956. So, what led markets to shrug off the downgrade effect? 

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    12:33 (IST)02 Jun 2020
    This mid-cap bank stock saw profits tank 21% in Q4 but brokerages are still bullish, here’s why

    While financials have been on everyone's mind on Dalal Street, the worry is how will the balance sheets of India's lenders look after the moratorium period ends. Despite this, brokerage firms have equivocally reinforced a buy rating on one private sector lender, currently trading just slightly above its 52-week low trading value. The stock is Federal Bank, which reported a 21% fall in profits on-quarter basis but saw a 27% jump in operating profit. Top brokerage firms might have trimmed their target price estimates but see Federal Bank’s retail re-orientation, healthy liability profile, and lower valuations among midsize banks as a positive.

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    12:28 (IST)02 Jun 2020
    Cabinet clears rescue plan to soften Covid-19 blow to MSMEs, street vendors

    The Cabinet on Monday decided to further widen the definition of micro, small and medium enterprises (MSMEs) to enable thousands of more units to take advantage of various official benefits, and cleared a slew of proposals announced as part of the government’s Rs 21-lakh-crore relief package to soften the Covid-19 blow to small businesses.

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    11:51 (IST)02 Jun 2020
    One should wait for some decline to enter near to 9600

    Nifty opened flat on back of negative newsflow with respect to MOODY'S downgrade but recovered sharply to trade near 9900 levels but we beleive upside is capped near 10100 being the 20 week average and one should wait for some decline to enter near to 9600 as it will test the gap levels it left in yesterday trade: Vikas Jain, Senior Research Analyst at Reliance Securities

    11:20 (IST)02 Jun 2020
    Why markets overlooked Moody's downgrade

    With a lack of any economic activity in the 1st half of the lockdown, it is now an established fact that the Apr-June GDP figures might show negative growth like in the other countries. In such a scenario, Moody's downgrade has already been factored in the market. 9955 will act as a major resistance for Nifty. Daily & weekly closing above 9955 should lead to a strong rally up to 10400 in the near term. 9598 should act as immediate & strong support now for Nifty: Abhijeet Ramachandran, Independent Analyst/ Co-Founder and trainer at Tips2trade

    11:07 (IST)02 Jun 2020
    Tata Power share price jumps nearly 7% as company acquires 51% stake in Odisha’s TPCODL

    Tata Power share price jumped nearly 7 per cent to Rs 42.25 per equity on BSE in Tuesday’s trade after the company informed that it has completed the acquisition of 51 per cent stake in TP Central Odisha Distribution Ltd (TPCODL) for Rs 178.5 crore. TPCODL was incorporated in April this year as a wholly-owned subsidiary of Grid Corporation of Odisha (GRIDCO) to carry out the business of Central Electricity Supply Utility of Odisha (CESU). As of Monday’s close, Tata Power shares have bounced over 56 per cent from its May low, while still sitting about 87 per cent below from its 52-week high of Rs 74.05 touched in July last year.

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    10:54 (IST)02 Jun 2020
    Uday Kotak sells 2.83% stake for Rs 6,940 cr, brings down shareholding closer to RBI mandated limit

    Billionaire banker Uday Kotak sold 2.83% of his holding in Kotak Mahindra Bank today, bringing his shareholding to 26.1% from 28.93%, closer to what was agreed with the Reserve Bank of India (RBI) earlier this year. Uday Kotak raised Rs 6,940 crore, by selling close to 5.5 crore shares at the upper price limit of Rs 1,240 per share, according to Bloomberg news. The stake dilution was carried out through a private placement by way of a block deal on June 2. Shares of Kotak Mahindra Bank surged over 7% on BSE Sensex on Tuesday morning to trade at Rs 1,330 per share.

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    10:29 (IST)02 Jun 2020
    US-China tensions, civil unrest in US will keep gold bulls in play

    Gold prices opened moderately higher in MCX with Spot gold finding resistance near $1745-$1750. That area continues to attract lot of selling pressure but we have no interest in shorting gold as there is buying opportunities at lower levels. Gold is getting some tailwinds from weak US Dollar (2.5 month low) but not getting momentum on the upside because of stronger than expected US ISM manufacturing report. China also reported stronger than expected private manufacturing report that showed that the Chinese economy is now expanding which is also taking some shine off the gold but tensions between the US and China and civil unrest in US will keep gold bulls in play. In MCX, Rs 46800 is where one can look for going long with stoploss of 46500 and target of 47100 intraday: Bhavik Patel, Sr. Technical Research Analyst, Tradebulls Securities

    10:14 (IST)02 Jun 2020
    Rupee opens weak against US dollar on Tuesday

    The Indian rupee opened weak at 75.56 per US dollar as compared to Monday's close of 75.54 against the US dollar

    10:12 (IST)02 Jun 2020
    I can't understand the rationale, says Nirmal Jain on Moody's downgrade

    I can’t understand the rationale. Covid is a global problem and relatively India has been conservative fiscally. Unless they are downgrading the whole world? They have also downgraded many good companies in India as well. ~  Nirmal Jain, Chairman, IIFL Group

    10:04 (IST)02 Jun 2020
    Rupee will large trade within its range of 75.00-76.20 levels

    The Indian rupee is likely to open on a flat note a trade in a range of 75.30-75.80 levels. However, bids ahead of Uday Kotak’s stake sale worth Rs. 7000 cr which is starting today could limit any sharp losses in the pair. It seems like markets have become immune to any news that is somewhat anticipated by the investors. Therefore the reaction of the rupee is muted for now. Hence, the pair will large trade within its range of 75.00-76.20 levels: Amit Pabari, MD, CR Forex Advisors

    10:02 (IST)02 Jun 2020
    Lupin rating: ‘Buy’; Performance in the quarter was weak

    After three years of earnings decline, we expect Lupin’s (LPC’s) earnings growth to improve over FY20-22e, based on robust ANDA pipeline (including limited competition products like g-Albuterol/g-Fostair) and sustained outperformance in the domestic formulation (DF) market. Accordingly, we expect return ratios to form a trough in FY20, and thereafter, to be on an uptrend. We are yet to see benefit of the cost rationalisation exercise implemented by LPC. Motilal Oswal

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    09:50 (IST)02 Jun 2020
    Still bullish on the yellow metal in the intraday

    MCX gold fell marginally on Tuesday on signs of economic recovery as many countries eased lockdown curbs, however, protests in the United States, China-U.S. tensions and a weaker dollar limited losses. On the positive side, U.S. manufacturing activity ticked up slightly from a 11-year low. The protests started over the death of 46-year-old African American, who died in police custody; and the closely packed crowds have sparked fears of a resurgence of COVID-19, which has killed more than 104,000 Americans. Looking at overall scenario, we are still bullish on the yellow metal in the intraday: Jigar Trivedi, Fundamental research analyst, Anand Rathi Shares and Stock Brokers

    09:46 (IST)02 Jun 2020
    Brokerage view on Sagar Cement

    Consolidated volumes for the quarter came in at 0.84 MT, declining by 11% y/y due to Coronavirus inflicted lockdown measures. Post relaxation in beginning of May, SGC’s utilization has ramped up to 30% currently vis-à-vis 54% for FY20. Notwithstanding the fact that SGC’s clinker production cost/te for Q4FY20 has declined by 11.6% y/y owing to softening of fuel prices and cost rationalization measures, EBITDA/te declined by 18.8% y/y – at Rs 533 due to weak pricing scenario as compared to last year (NSR was down ~7% y/y). Given the current scenario, company expects normalcy in operations from COVID related disruptions only after September 20. BUY (Target Rs 476, Upside 62%: YES Securities

    09:43 (IST)02 Jun 2020
    IGL shares up 1% after CNG price revised in Delhi

    Indraprastha Gas (IGL) share price was up over 1 per cent to Rs 480.05 apiece on BSE as CNG price in the national capital and adjoining cities on Monday was hiked by Re 1 per kg to make up for the additional cost incurred to keep stations coronavirus ready.

    Check live prices: Indraprastha Gas Ltd

    09:37 (IST)02 Jun 2020
    Kotak Mahindra Bank shares surge as Uday Kotak sells 2.8% stake

    Kotak Mahindra Bank share price surged 5.73 per cent to Rs 1,320.80 after Uday Kotak sold 2.8 per cent stake via block deal.

    Check live prices: Kotak Mahindra Bank

    09:32 (IST)02 Jun 2020
    Kotak Mahindra Bank gains over 4%; top Sensex gainer

    Kotak Mahindra Bank was the top Sensex gainer with 4.76 per cent gain, followed by M&M, Bajaj Finance, Hero MotoCorp, Tata Steel and Sun Pharma.

    check live prices: Kotak Mahindra Bank

    09:30 (IST)02 Jun 2020
    Sensex, Nifty trade with modest gains

    The 30-share Sensex was trading at 33,363, up 59.25 points or 0.18 per cent. While Nifty 50 index was ruling 23 points or 0.23 per cent higher at 9,849.

    check live Sensex, Nifty levels

    09:12 (IST)02 Jun 2020
    Rupee is likely to open around 75.57

    Rupee is likely to open around 75.57 and trade 75.30-75.75 range. SGX is indicating a flat open for Nifty. Asian currencies are stronger against the US Dollar. Asian stocks are trading flat. The bond markets are likely to react to the Moody's downgrade and we may see a sell off of around 10-15bps in the benchmark 10y bond. However, we could see the RBI come in and buy bonds in the secondary market to manage the sentiment and prevent a run away move: Abhishek Goenka, Founder and CEO, IFA Global

    09:05 (IST)02 Jun 2020
    Stocks in focus: RIL, Kotak Mahindra Bank, Britannia Industries, IndiGo, IGL stocks to remain in news

    Motherson Sumi Systems, Dhampur Sugar Mills, Dolat Investments, Britannia Industries, IndiGo, Granules India, Tata Teleservices and Zydus Wellness are among 18 companies which are scheduled to announce their March quarter earnings today.

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    09:03 (IST)02 Jun 2020
    Nifty set to open flattish

    Nifty set to open flattish. The US market's future is trading with cuts of 0.50% and Asian markets are trading with average gains of 0.50. The bad news like Moody downgrade, the impacts of Covid-19, geopolitical tension between the US and China seems already factored in. Any big news on the geopolitical situation may impact the market. For the day, Nifty can see resistance around 9930 and support at 9720. Banknifty can see resistance around 20200 and support around 19500. The strategy should be a buy-in dip for intraday. Options trader can short OTM call and puts for intraday as option decay is expected: Vishal Wagh, Head of Research, Bonanza Portfolio

    08:49 (IST)02 Jun 2020
    IDBI AMC, trustee firm settle case with Sebi, pay over Rs 90 lakh

    IDBI Asset Management and IDBI MF Trustee Company on Monday settled a case related to alleged violations of mutual funds norms with markets regulator Sebi. Both the entities have paid `90.47 lakh towards settlement charges. The matter was regarding the downgrading of Ballarpur Industries (BILT) by India Ratings and Research on February 23, 2017.

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    08:18 (IST)02 Jun 2020
    Wipro: Maintain ‘buy’; new CEO has strong credentials

    Wipro announced the appointment of Thierry Delaporte as its new CEO effective July 6. Delaporte’s experience has an eclectic mix of horizontal expertise and vertical depth. Europe is a key bastion of growth for the industry where Wipro has struggled in the recent past and where Delaporte’s experience will be of immense use as well. Wipro made significant strides under Abid in the areas of automation and localisation with large account mining having improved recently as well: ICICI Securities

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    08:17 (IST)02 Jun 2020
    KEC: Maintain ‘buy’ with revised target price of Rs 275

    The flat Q4FY20 EPS growth reported by KEC International (KEC) meets consensus forecast and is encouraging against the backdrop of Covid-19 related challenges. Also consider strong revenue visibility of 1.7x with Rs 50,000 crore worth of tenders in the pipeline. Order book exposure of 80% to sectors/geographies least impacted by Covid-19: Edelweiss

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    08:15 (IST)02 Jun 2020
    Moody’s cuts India’s rating to lowest investment grade, three key factors that knocked India’s position

    In a major setback, Moody’s today downgraded India’s sovereign credit rating by one notch to ‘Baa3’, while maintaining its negative outlook, citing risks from sustained low growth, among other reasons. ‘Baa3’ is the lowest investment-grade rating on Moody’s credit rating scale. “The decision to downgrade India’s ratings reflects Moody’s view that the country’s policymaking institutions will be challenged in enacting and implementing policies which effectively mitigate the risks of a sustained period of relatively low growth, significant further deterioration in the general government fiscal position and stress in the financial sector,” Moody’s said in a statement on Monday.

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    08:13 (IST)02 Jun 2020
    Sensex, Nifty on Monday

    The 30-share Sensex closed the session 880 points or 2.71 per cent higher at 33,303, while the broader Nifty 50 index settled at 9,826 gaining 245 points or 2.57 per cent on Monday.

    08:13 (IST)02 Jun 2020
    SGX Nifty suggests flat o positive start for Sensex, Nifty

    Trends on SGX Nifty suggest a mildly positive start for the indices with 40 points or 0.41 per cent gain. The Nifty futures were trading at 9,816 on the Singaporean Exchange.

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